If you refer to the HDB resale price index, which new HDB
valuations are based on, the prices of housing in Singapore has
been increasing a few percentage points each quarter. The
soaring price index doesn't look like it's gonna come down anytime
soon. In fact, it's almost guaranteed not to come down, since
MM Lee had predicted so. And we know that somehow, the old MM
Lee is right more often than not.
Furthermore, MND came out with figures to justify the current
prices as affordable, so no government intervention is
necessary. Anyway, they have also produced figures to show
that the Singaporean household income has increased FASTER THAN the
the increase in HDB prices over the past 10 years, so HDB prices
could in fact rightfully be even higher.
Plus, at least according to our PM, the government cannot do
anything even if the prices keep rising, since price movements are
due to market forces (supply and demand). That is to say, the
government cannot fix HDB prices just because there are not enough
HDB flats (supply) and too many people looking for flats (demand),
both of which are implied to be beyond control.
What the government is saying is that they won't do much, if
anything at all, to prevent a bubble. In fact, they are
saying there is no bubble. Prices will continue to rise, and
justifiably so, as the market moves towards its price
equilibrium. And anyway, Singaporeans are still well able to
afford HDB flats, with their income increase outpacing HDB price
increase!
we understand very well how our Government justifies itself to
be correct
