Daily Lessons from Life 18 January 2013 - Almost 200,000 homes will be ready in the next four years: Khaw

"Almost 200,000 homes will be ready in the next four years: Khaw - ST, AsiaOne Jan 18, 2013

SINGAPORE - Expect almost 200,000 homes to hit the market by 2016. National Development Minister Khaw Boon Wan wrote this in a blog post on Friday to assuage buyers' concerns in the wake of property cooling measures announced last week.

Last week's package of property cooling measures is necessary to soften the market. The alternative of doing nothing, allowing the prices to run beyond economic fundamentals, will only invite a large and serious price correction in the future. That will not do anyone any good."

Minister Khaw has asked for and got one of the most unpopular portfolio in the government. The other being Transportation, bar none.

Lessons for me are:

1. he has NOT address the fundamental of splitting housing into 'Pure Public' and 'Pure Private'. 'Pure Public' is for Singaporean couples starting out in life wanting a roof over their heads to start a family of, hopefully 3 kids or more. It is NOT for them to 'upgarde' after the 'pure public' 1st time houses go up in prices to 'pure private'. Because, if they can do that, the 'pure public' resales price MUST have gone up quite a bit to allow the 'upgarders' to buy a 'pure private' housing!;

2. what does this almost 200k housing in the next 4 years meant for Singapore? Is it the 'balanced demand and supply'? If so, where do the 'demands' come from given that we don't, or do we, have new 200k Singaporean couples buying property to live in? Will there be, alas, another way to piss off some people who are having 'appreciated' housing - public or private - ready to reap a huge profit if the SUPPLY far exceed DEMAND? Another proof that this 'tweaking' the number without addressing the NATURE of public and private housing is just another futile exercise to keep public housing affordable to young Singaporean couples!;

3. given that the 200ku of housing cannot be just for Singaporean couples, a breakdown of the anticipated DEMAND from Singaporeans, old and new, old and younger ones, foreigners, and PRs will be helpful to gauge IF the 200ku is going to create another 'we need to fix the over-supply situation as property prices are DROPPING and some voters are NOT happy as their assets are DEPRECIATING in value'!!