When home prices move up too fast, the government needs to do something about it. Else, the people would soon not be able to afford to buy a roof over their head. Or the property market crashes and that’s an even bigger problem.
It’s an advantage to have lots of information from all the advanced property markets and then to think about what may happen here in Malaysia too. Sometimes, being a follower is a good thing too.
Article in channelnewsasia.com Private home prices in Singapore rose by 2.9 per cent in the first quarter of 2021, according to official flash estimates released by the Urban Redevelopment Authority (URA) on Thursday (Apr 1). In the previous quarter, it was a 2.1 percent increase and in 2020, despite the COVID-19 pandemic, the private home prices went up 2.2 percent.
According to OrangeTee & Tie senior vice president of research and analytics Christine Sun, this rising home home prices in Singapore are in tandem with the uptrend observed globally. She said, “Pent-up demand bolstered by massive fiscal stimulus and still-low mortgage rates is propping up home prices worldwide.”
Mr Lee of Huttons Asia reminded that the chances of the Government introducing cooling measures to keep prices in check have been raised “a notch” The full article Article in channelnewsasia.com
The world is on a positive trend (not all countries of course)
Remember yeah, a rising tide when it happens will bring up all boats and Malaysia is definitely not a sampan no matter how we look at the market. The vaccinations are now in full swing in many countries and words such as travel bubble and even increasing flights are becoming common. Malaysia received over 26 million international tourists in 2019. Think about it very seriously.
The government has to step in once things start to go out of hand
When the home prices increase every quarter, this is definitely not sustainable. The reason is a simple one. Salary increments happen only ONCE every year. People need to afford homes. Imagine what happens if home prices move up 4 times a year and salary only moves once a year? I think you get the picture. So, all those terms such as cooling measures, RPGT would also be on the way back too.
Happy Learning and Understanding that whatever happens outside Malaysia would also affect what’s happening inside Malaysia too.
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