Govt can try to keep housing bubbles "less bubbly": Khaw Boon Wan

[princess_morbucks]

http://www.channelnewsasia.com/news/singapore/govt-can-try-to-keep/932100.html?utm_source=dlvr.it&utm_medium=twitter


SINGAPORE: National Development Minister Khaw Boon Wan has said that while the government cannot eliminate the property cycle, it can try to keep the housing bubbles "less bubbly".

Writing in his Facebook page on Monday, Mr Khaw made reference to an article that talked about a case in Ireland where housing prices have dropped by 50 per cent since its peak in 2007.

He noted that the housing bubble in Ireland and its inevitable bust has brought huge misery to many.

Mr Khaw said the right thing to do in Singapore is for the government to intervene before the property market becomes too “hot”.

He said this is similar to “taking away the punch bowl when the party is getting hot”.

Mr Khaw noted however that this is done much to the unhappiness of sellers and developers.

[Wunderkind]

http://www.channelnewsasia.com/news/singapore/govt-can-try-to-keep/932100.html?utm_source=dlvr.it&utm_medium=twitter


SINGAPORE: National Development Minister Khaw Boon Wan has said that while the government cannot eliminate the property cycle, it can try to keep the housing bubbles "less bubbly".

Writing in his Facebook page on Monday, Mr Khaw made reference to an article that talked about a case in Ireland where housing prices have dropped by 50 per cent since its peak in 2007.

He noted that the housing bubble in Ireland and its inevitable bust has brought huge misery to many.

Mr Khaw said the right thing to do in Singapore is for the government to intervene before the property market becomes too “hot”.

He said this is similar to “taking away the punch bowl when the party is getting hot”.

Mr Khaw noted however that this is done much to the unhappiness of sellers and developers.

That is a responsible thing to do. But Ireland and Singapore are different in terms of governmental approach to the economy. One focuses on artificial growth through spending and asset inflation and the other focuses on real economic outputs.

So we are in a better shape than Ireland. And we are more able to withstand financial shocks and ride out the storm.

[oops]

Good news to buyer purchasing for own stay.

[oops]

less bubbly = - 25%? Mr Khaw noted however that this is done much to the unhappiness of sellers and developers.

[Ringo33]

this only serve to further validate Singapore credential as the capital of the world for long term real estate investment. Only a strong business minded country like Singapore is capable for doing things like this.


Now we all can sleep well and stop worrying about QE tapering, unless you are running on empty.

[oops]

Sg definitely has the financial to sustain and reduce investments if govt is looking at 2015..

[lajia]

Responsible thing?? To a certain extents.....:)

To divert investors from a safer market to untested market like Iskandar or oversea....this is responsible? Or are we saying that our market is more risky to burst than elsewhere, that's why we don't want them to invest here, go somewhere else...this is responsible? I'm not too sure...:2cents:

To stop speculators, there are other ways...but to artificially suppress the prices of properties, is like asking fellow owners of the properties, don't earn too much...now I am going to cut your assets to 1.5 folds...instead of 2 folds or 3 folds....this is wrong in my opinion.

Aiyo, some they did it right, but some, not really....the worst is that they think they are doing it right.....:scared-3:

Just like COE, will the 20k coe or 80k Coe make a difference to the traffic congestion?? Improve the pollution? Are they using the revenue from Coe to provide free cash card for students and elderly?? Are they giving this amount back to the society directly encouraging ppl to take public transport? Whether is it 20k or 80k Coe, the Coe qty is already fixed. But why ppl have to pay so high a Coe? Only the rich can buy.....does it implying this way? Whoever bid 80k should pay 80k, bid as u pay....see who will bid so high if the Coe is at 20k...look at japan, car cheap but they only drive during weekend with family. During week day they take train because the system is so good. So, a high Coe cannot solve problem. The revenue generate from Coe should put it back quickly to improve the public transport. That's the way it should be! Maybe it is now, but very slowly...:o

Just my opinion.



That is a responsible thing to do. But Ireland and Singapore are different in terms of governmental approach to the economy. One focuses on artificial growth through spending and asset inflation and the other focuses on real economic outputs.

So we are in a better shape than Ireland. And we are more able to withstand financial shocks and ride out the storm.

[oops]

I believe govt had gave enough hints and their commitment to cool the market. Those took the hints had already cash out and exit the market early.

[Ringo33]

I believe govt had gave enough hints and their commitment to cool the market. Those took the hints had already cash out and exit the market early.

'The supreme art of war is to subdue the enemy without fighting.'

And thats what the government is targeting. To cool the market without blood..

[teddybear]

And they will start to bang their head against the walls if they know what they will see by 2017 (for selling too too early)... :ashamed1:


I believe govt had gave enough hints and their commitment to cool the market. Those took the hints had already cash out and exit the market early.

[Wunderkind]

And they will start to bang their head against the walls if they know what they will see by 2017 (for selling too too early)... :ashamed1:
There is really no right time to sell. It was right to sell based on the information available then.

Now that the government has made clear that they are not crashing the market, but keep the going momentum at a acceptable pace, it is the time to re-enter the market.

Bro BJ had already provided the target zones of opportunity , although I feel all the regional town centers will follow the buy momentum when the Chinese follows the Hongkies into the market.

[newbie11]

No one is forced to buy Iskandar. The gov is simply assuming the role of Nanny which is what we r used to

[thomaspaine]

http://www.channelnewsasia.com/news/singapore/govt-can-try-to-keep/932100.html?utm_source=dlvr.it&utm_medium=twitter


SINGAPORE: National Development Minister Khaw Boon Wan has said that while the government cannot eliminate the property cycle, it can try to keep the housing bubbles "less bubbly".

Writing in his Facebook page on Monday, Mr Khaw made reference to an article that talked about a case in Ireland where housing prices have dropped by 50 per cent since its peak in 2007.

He noted that the housing bubble in Ireland and its inevitable bust has brought huge misery to many.

Mr Khaw said the right thing to do in Singapore is for the government to intervene before the property market becomes too “hot”.

He said this is similar to “taking away the punch bowl when the party is getting hot”.

Mr Khaw noted however that this is done much to the unhappiness of sellers and developers.


Mr Khaw's comments come on the back of URAs announcement few days ago that they will cutback on some of the land releases for 2014. This is another reassuring sign that government does not want to see a major correction downwards in prices which many bears are expecting.

Hence, >20pct correction? Make your own call.

[Ringo33]

Mr Khaw's comments come on the back of URAs announcement few days ago that they will cutback on some of the land releases for 2014. This is another reassuring sign that government does not want to see a major correction downwards in prices which many bears are expecting.

Hence, >20pct correction? Make your own call.


When interest rate goes up, 20% correction is still possible some segment of the market which doesnt concern the government. e.g. landed property.

[oops]

Compared to ireland 50% correction. 20 to 25% is not unreasonable.

[wt_know]

2014 can whack property liao if ABSD is lifted
invisible hand gets in to hold the market from crash
huat ah!!!

[CCR]

Compared to ireland 50% correction. 20 to 25% is not unreasonable.

Global financial crisis = 25% drop in SG property prices, so without a global crisis will prices drop 25% in SG?

A quick vote, how many Percent drop before fellow forum members will enter the market to load up Again?

[Allthepies]

Global financial crisis = 25% drop in SG property prices, so without a global crisis will prices drop 25% in SG?

A quick vote, how many Percent drop before fellow forum members will enter the market to load up Again?

3.5% drop...

[JuzMe]

I believe govt had gave enough hints and their commitment to cool the market. Those took the hints had already cash out and exit the market early.
Fully agree. It's difficult for a regular investor to know where peak or bottom is, so rather be cautious and cash out to recognise profit, rather than seeing profits erode away with future cooling measures. Don't be too greedy :D and you'll sleep very well at night. My 2cents

[Arcachon]

And they will start to bang their head against the walls if they know what they will see by 2017 (for selling too too early)... :ashamed1:

Can share why 2017 and not 2015.

[p3nboy]

When interest rate goes up, 20% correction is still possible some segment of the market which doesnt concern the government. e.g. landed property.

will interest rate go up?

http://www.dbs.com.sg/personal/homeloans/5yearfixedrate/default.page?cid=DBS-Fixed-Rate-Fixed-Rate_GSR_%2Bfixed%20%2Brate%20%2Bhome%20%2Bloans_Fixed-Loans

[teddybear]

Uh Hmm.......... Why not wait and see? :D


Can share why 2017 and not 2015.

[Shanhz]

Can share why 2017 and not 2015.

floodgate open after 2016 election?