That is why I am sceptical about government intervention at least for quick fixes.
Developers make about 10% net profit. So for affordable housing to breakeven (no profit), they can provide at most 10% discount on current pricing. Other wise they make a lost while building "affordable housing" - or be subsidised by government and tax payers. With the complain about the rising government debt - how can they.

Housing like drugs are rising in prices because demand had outstrip supply. Divert demand and build up supply by building the economy and transport infrastructure elsewhere. I think the Singapore government is being smart, they know excessive rising property prices in Singapore will impact their effort to attract talent. If you build a high speed train through major towns in south of Malaysia, they have access to "cheaper high skill labour". People can stay in these cheap towns and go to work in Singapore by high speed train. Good for Malaysians who want to work in Singapore (and property investors) but bad for a lot of people who continue to work in Malaysia.

This post has been edited by tigana: Aug 17 2013, 02:38 PM