First of all, property price hike is a stimulation to churn the
economy, imagine a recession without any stimulationat all in a
downturn market, i think would had been much much worst, they
need stimulate something, and properties was choosen to
be the catalyst for churning the economy mechanism. And to do
that, they, the govt, reduced interest rate, leading to peoples
thinking twice about parking their money in fix deposit, and will
be more willing to buy property with borrowing at lower
interest rate. Secondly, rise the cost of daily essential living
needs also lead to people diverting their money into property,
which is said to be a growing asset, rather than cars, fashions,
gadgets or others. Thirdly, by giving PR and
citizenship status to more foreigners that enable them to
purchase houses, will further enhance the property market
prices.
And fourthly, as saying goes, if you want to con people, do it
big, you need bite a big piece out of it, otherwise, dun waste your
effort, and property is the only market that they, the govt can
bite you deep without even you knowing it, that is the glee of
it, so people end up happily paying $500,000 + 7%Gst and other
taxes for a 4 to 5 rooms HDB flat, which only took $20,000 to built
it. A net profit of $480,000 + 7%. Can you imagine that???
Well, if peoples are willing to pay and hope for the best, why
bother. If you dun want to buy or got no money to buy....just shut
up and as usual, go for your morning toilet with a peaceful mind
ya.
