Just met up with this businessman friend of mine who recently sold his condo. He said even himself is shocked with the private property market and worried about Sporeans future.
He told me he is convinced of the following:
1) The demand for private property is fueled by 2 things:
a) 6 million population target
b) The Rich riding on this target
He told me one of his agent's client owned 8 private properties!
Some are so rich to pay full cash with no downpayment, and many owned more than one properties.
Thus u can see recent measures have almost zero effect on these rich.
2) Govt has No intention to help Sporeans in general, judging from their lack of committed actions recently and last few years. Cos Govt itself wants to profit from this property boom and is profiting all the while.
He added that if Govt really want to control the market, there are many things they can do such as Higher tax/interest for 2nd and more properties, restricting foreign buyers etc.
Moreover, the fear for property market to drop if there is control is totally unwarranted, as they can have rebate or lower tax, charges etc for those bought at high last 3 years. (HDB owners ie)
3) He said if Govt dont control this property cost with enough commitment Fast enough, Spore future is doomed.
His prediction for Spore future: The rich owns all the properties to be rented out, and most sporeans can only afford 2- to 3-room flats.
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