The Real Estate Developers’ Association of Singapore (REDAS) warned about a housing market collapse due to the the worsening economy, increasing housing supply and falling property sales recently. According to the REDAS president, Augustine Tan, he warned that the current direction would result in a collapse:
“The property market is clearly heading for a different phase, and there is an urgent need to think about how we can manage the exit so that there is a soft landing for the market. As Minister Khaw Boon Wan said, ‘Collapse of the housing market benefits no one’. This is the chief worry of developers and the many diverse stakeholders of the real estate ecosystem. The property cooling measures, in the current tone and intensity, could actually increase the risk to the real estate market and economy”
As Augustine Tan is also the executive director for property sales at Far East Organisation, his words are accentuated with a good dose of selfish interest. Same goes to City Developments Limited (CDL)’s executive chairman Kwek Leng Beng, who echos Augustine Tan’s sentiments and called for the Singapore Government to remove all property cooling measures.
Currently, Singapore’s property prices are still unaffordable and pricing out many Singaporean first time home owners. Singaporeans’ retirement are in jeopardy as they spent too much of their CPF retirement fund on housing in Singapore.
It is unlikely Singapore’s housing prices will collapse as the Singapore government is increasing the population further to 6.9 million.