Population growth shouldn’t outpace housing stock | cooling measure

Straits Times: Mon, Sep 19
THE assessment of the housing situation, by Jones Lang LaSalle’s head of research for real estate services Chua Yang Liang, worries a first-time buyer like me. (‘Housing glut ‘won’t cause dip in prices”; last Wednesday). He calculated that dema…

THE assessment of the housing situation, by Jones Lang LaSalle’s head of research for real estate services Chua Yang Liang, worries a first-time buyer like me. (‘Housing glut ‘won’t cause dip in prices”; last Wednesday).

He calculated that demand is likely to stay high, given the way population growth has outpaced the increase in housing stock over the past 10 years, at the average rate of 2.8 per cent population growth and 2.1 per cent increase in completed homes per year. This resulted in a housing stock shortfall of about 87,000 homes last year.

These statistics worry me especially when developers are urging the Government to lift property cooling measures which have been introduced only recently.

What it means for a first-time home buyer looking for a basic roof over my head to start a family is that prices will continue to climb.

For most young families, a home is the costliest purchase they are likely to make, and servicing heavy loans can affect their financial stability in the long-term.

The Government must ensure that population growth does not outpace housing stock as it has – and yes, please introduce more cooling measures.

Nicholas Loh
Source: The Straits Times © Singapore Press Holdings Ltd

About Propertyguru Expert

Website contend is hand picked and high demand. Marketing Manager at Huttons Asia Pte Ltd. Indonesian Focusing in Private Residential Singapore. *Service Quality Assured. *Top 300 producer in 2011.