Don't sell your flat?

I was amused when MM Lee said so.

The government, as we all know, has been extremely worried over the property market recently, and have taken many measures to protect young citizens who simply want and need a roof over their heads.

Cooling measures such as compulsory time levy before public property can be sold, construction of more government HDB flats etc. have all but proven to be effective in really cooling down the market and its increasing transactions that pushes prices of public property up.

MM and PM Lee have over the past few months, not only come up with policies, but also seized opportunities and occasions as platforms to subtly influence the public to treat property as "homes", instead of "assets" through talks and speeches.

As such, when MM Lee pointed out so explicitly an "advice" that Singaporeans living in HDB flats should not sell their flats away, it was surprising.

If residents do not sell their flats away, it would easily translate into less supply, and increasing demand, as more and more foreign workers and young couples seek public property for cheap housing. And this would mean that property prices would further appreciate, as foreigners generously fork out more and more money to get property.

If we look at this matter from a personal view, it would equally be as stupid to keep property. MM Lee mentioned that "With economy growth, your property value would keep appreciating, so it would be stupid to sell it away now".

30 years ago, property prices were 10 times cheaper than what they are today, due to globalization and increasing wealth of Singaporeans. Faced with a bought-low, can sell high situation, why wouldn't Singaporeans be tempted to earn a handsome profit from transactions, and use the profit to buy a landed property? Besides, will things really turn out like what MM Lee said? Analyst have predicted that the property bubble would most likely break in 2 years time.

The government's policies of constructing new property and upgrading old property isn't fast or effective enough. The root of the problem is over-surge in foreigners and PRs, because they are the ones who continuously push property prices up, with their wealth.

The government needs to regulate the number of foreigners entering Singapore, if not, young couples who need homes, really cannot compare to their wealth limit and purchasing power.