Ensure adequate land supply; leave prices to market forces
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Nov 7, 2011 - ST Forum
THE Government should review its current land sale policy ('Govt rejects lone bid for Paya Lebar site'; last Saturday).
Property prices are primarily determined by the forces of demand and supply, but the reality is that land cost, being the single largest cost component, drives the price floor on which developers peg their selling price.
If the current policy artificially props up land value, then the real estate market could become dysfunctional since there would be an upward bias in the end product price.
Primary metals and other natural resources, such as oil and gas, are also subject to the forces of demand and supply, and their traded prices reflect the underlying derived demand for the final end products from which they are made.
The Government should ensure adequate and continual supply of land as and when there is demand at a price that attracts competitive bidding.
By rejecting bids based on price alone or withholding supply of land, the Government could be sending a signal that it is trying to sustain land price, and this would feed property speculation frenzy, which distorts the healthy development of our property market.
The Government should release land constantly based on demographic profile and economic development, but should leave prices to market forces.
To ensure a sustainable development of the property market and fulfil its social role, the Government could tighten the development period and implement targeted measures to weed out speculative property developers accumulating land bank and non-owner-occupied property buyers crowding out genuine buyers.
Ee Teck Siew
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they have the answers to everything
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Originally posted by SevenEleven:
they have the answers to everything
they are the answers.
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they = answers
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The solution is the problem.
The problem is the solution.
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*ahem*
*ahem*
I've better not state openly what I'm thinking about actually...
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Originally posted by sbst275:
*ahem*
*ahem*
I've better not state openly what I'm thinking about actually...
Then you post this for what?
Add to post count?
Just put +1 gives you the same effect right?
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Originally posted by charlize:
The solution is the problem.
The problem is the solution.
Have you been reading Tao Te Ching recently?
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Originally posted by βÎτά:
Have you been reading Tao Te Ching recently?
No.
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Originally posted by charlize:
No.
Your words are very philosophical.
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Originally posted by βÎτά:
Your words are very philosophical.
It's very easy actually.
To say something when you mean nothing.
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Originally posted by charlize:
It's very easy actually.
To say something when you mean nothing.
Ever consider writing a book on philosophy?
The world according to charlize.
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like antivirus software
no problem, no biz
want biz, create the problem
more problem, more biz
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Originally posted by lce:
like antivirus software
no problem, no biz
want biz, create the problem
more problem, more biz
You are the master.