How can there be a big hole in gahmen coffers when the price of Gahmen property transactions gives it huge profits??? For example, brand new HDB flats,,selling for about 500K,,,how much is the profit margin for gahmen coffers? what about BTOs and land sales..? how much gahmen earn?
Ok lets say gahmen cut price for brand new flats,,,500k to 400k, how much is gahmen profit? The guesstimate for construction cost is 50k per flat. When we say gahmen prop up the price is like, capping demand.
For example (and these are tools used by gahmen before)
1) Restrict land sales hence capping supply.
2) Keep interest rates low
3) Let in more PMETs
4)maybe even come up with foreign investment visa like buy a 4million property get PR...
5) Do u think foreign crap dont want to come to spore? Indons, pinoys, viet etc are still queuing up to enter singapore,,,
And for those that keep harping on SARS, 2008 GFC etc,,those shit lasted less than 1 year and after that all normal again. And I said this many times, those that bought in SARs and 2008 have already benefitted from housing appreciation today. And do not forget..PAP has huge self interest in property..they will just cap supply and it will still remain high. They have done it before,,,that is why we have this BTO fiasco,,they build flats in fuck up location like Sengkang and many did not want it,,,that is why MBT came up with the BTO shit in the 1st place,,,than after that say caught off guard,,,
The bottom line is PAP manipulation for such a small market can dampen any external factor...
There is a limit to the extent that PAP can manipulate the prices. If foreigners don't want to come or those who come are the cheap kinds, demand for properties is reduced, thus lowering the prices. The PAP can't prop the market up indefinitely without showing a big hole in government coffers.