Dec 31, 2011 - ST Forum
THE comments by the Real Estate Developers' Association of
Singapore president on the recent property cooling measures are
uncalled for ('Property curbs could hurt economy: Redas';
Wednesday).
Spiking property prices have led to home buyers taking up
increasingly larger mortgage loans to finance their purchases, and
if this is not nipped in the bud, the fallout from falling equity
home values would be even harder to contain when the bubble finally
bursts. It is a question of when, not if.
Having real estate activity constituting a significant portion
of the gross domestic product (GDP) - the figure quoted was 5.2 per
cent - is not a desirable state for the economy at all.
Real estate activity should not be a key driver of economic
growth. I do not think we want to go the way of economies like Hong
Kong, where real estate forms a significant chunk of the GDP and
has been responsible for driving property prices beyond the reach
of many home buyers.
It is not the responsibility of the Government to ensure that
the developers continue to reap fat profit margins from selling
homes at inflated prices to cash-rich foreigners, but it is
certainly the Government's duty to make sure property prices,
public or private, remain affordable to the majority of
Singaporeans.
Andrew Hong
For the nation
'Amid a fragile economy, Redas should encourage its members to
do their part in helping Singapore maintain a sustainable property
market.'
MR ANG CHIN GUAN: 'The Real Estate Developers'
Association of Singapore (Redas) said the sharply raised stamp
duties could hurt the real estate market and the wider economy and
added that land costs might increase and home values could fall.
('Property curbs could hurt economy: Redas'; Wednesday). It should
explain this phenomenon to help consumers understand it better.
Amid a fragile economy, Redas should encourage its members to do
their part in helping Singapore maintain a sustainable property
market. During the 2009 slump, landlords passed on up to 40 per
cent of the property tax rebates of commercial and industrial
properties to tenants.
