12 May '11, 9pm

Too much advance buying distorts true demand

I have always advised potential new home owners or genuine upgraders that their main motivation to buy a property should be based on need and not greed. Buying in advance slightly ahead or delaying a purchase for a short period of time is alright but not when it is too far from the period of need. Buying ahead may mean getting married earlier than planned - when there are still issues to be resolved. At the other end, in delaying a purchase, there may be opportunity costs that are not quantifiable, such as having children, privacy and shorter commuting times. It was therefore quite worrying that, despite a significant ramping up of Build-To-Order (BTO) launches over the past several quarters to reach new highs in recent years, the demand for new HDB flats has remained as strong as ever. We continue to read news reports of this or that BTO project being oversubscribed sever...

Full article: http://www.todayonline.com/Business/Property/EDC110513-00...

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