I had an interesting experience yesterday at the preview of Marina Gardens Residences. 
“As soon as you enter the showflat you see a giant screen of how Marina South will look like in the future🥱. It is a projection into the future of life in an exciting, vibrant and beautiful neighbourhood that is well planned and functional. It has a central spine, a pedestrian thoroughfare with beautiful landscaping. Vehicular traffic moves below in a car lite district that is a good balance between residential, retail and commercial. But I have seen a similar video more than ten years ago 🤔(I think it was a national day rally speech). We were told in five to ten years time Marina Bay will be an attractive and bustling neighbourhood of the future showcasing an attractive lifestyle. After more than ten years it is mostly brown fields with a few scattered and disconnected developments 😩

But I have also seen recently the vision of the video in real life. It is Fort Bonifacio in Manila. It is a vibrant and attractive neighbourhood. Everyone wants to be here because it has all the conveniences and attractions neatly arranged in an accessible neighbourhood. It was everything I saw in the video and better 🤗

Here is the problem for the PAP. Their track record is in reality a legacy from the past. The principle of accountability which was so important to the 1G leaders now appears to be irrelevant. The competition is not just within Singapore but regional and global. Even the Philippines can execute far better comparing Marina Bay with Fort Bonifacio.

Now back to the crowded show flat. I asked my host property agent whether she was excited with the turnout. She replied that the turnout was very good for a CCR launch but not comparable with the OCR launches. She explained that the OCR benefits from a ready pool of upgraders who have made a lot of money in the property market recently. Those who bought an executive condo for $800k can sell it for $1.6m now. But she added of course the government did not expect that Singaporeans could make so much money from their executive condos. Even a four room HDB flat at the Pinnacle in Duxton can fetch $1.5m she further added.

The showflat ID units were everything I expect from a China developer with a questionable track record. HDB standard finishes like porcelain tiles, inexpensive appliances, no ducted air conditioning or private lifts but trying to pass off as a high end condominium. But the smart young lady pointed out that a massive change is taking place in Singapore now. I was curious. She said that we are in the midst of a huge inter generational wealth transfer and many buyers are supported by their parents. Much to her disappointment I revealed that I do not subscribe to that philosophy and my children have to make it on their own. Which they appeared to have done so, perhaps because they know they cannot rely on their parents to fund their lifestyle 😭

It is reckless for the government to allow such market distortions to continue and not hold accountable those responsible for the ineffective or misdirected cooling measures. Apparently the government suffers from a deficit of fiscal marksmanship in multiple areas. It might be wishful thinking for Lawrence Wong to think that a few vouchers and subsidies will keep Singaporeans contented and we will continue to support the PAP. Perhaps for the coming general election. But what happens when prices of over valued HDB flats and mass market condominiums correct to reflect their true value versus prime area luxury condominiums. It will be rather rich of the PAP to blame it on the stupidity of Singaporeans when they were just taking advantage of regulatory measures. 

The Singapore property market has been distorted to such an extent by regulatory measures that it bears no resemblance to market fundamentals. There are examples of freehold luxury developments in the most choice areas like Scotts Square which have gone down in prices in the last fifteen years. Investors will be far better off buying resale apartments in the CCR at One Shenton or The Scotts Square which are going at prices below the OCR in well connected developments with excellent finishes. Meanwhile the prices of properties in outlying areas and without any distinctive features have skyrocketed. Buyers are paying more for new apartments of lower quality in less desirable locations. Real estate agents tell them that they will be able to get capital appreciation and an attractive rental yield as property prices in Singapore alway goes up and prices will be higher in future. Eventually there will be a correction and the pain will be borne by many for years to come. Once the euphoria disappears the reality will set in and recovering to current price levels for public and mass market housing might take a generation. There will be a political price to pay in future if the government does not take a hard nosed approach to fixing this problem now!