Today, as of 2019, our population is at 5.8 million.
Back in 2013, Singapore’s policymakers caused a huge uproar when they announced their aim to achieve a population of 6.9 million by 2030.
There are many reasons why Singaporeans were upset with the policy, and I can understand why. However, if there were zero population growth, what do you think will happen to our property prices?
Well, the obvious answer is the price will go down.
On hindsight, should we have been upset about it? Isn’t it our dream to have property prices go up so we can retire with our new-found wealth?
Some of us felt that Singapore was inept to sustain a high influx of foreigners due to concerns of existing infrastructures (think MRT breakdowns).
However, a few years since 2013, we can see a lot of developments to public transportation, especially the MRT.
5 new MRT tracks are on the way to make places more accessible.
There are also a lot of advertisements about improvements to the public transport system and transport operators promising better service quality.
Lack of Job Opportunities
Some of us were upset as they felt foreigners were stealing jobs and there were not many quality jobs to go around for the rest of us. However, the unemployment rate in Singapore is currently at 2.1%, which is still at its healthy rate.
I personally believe that in Singapore, we all have to work hard and not expect anyone to owe us a living.
Given that our economy is transitioning towards a gig economy, people are looking for more jobs with flexible timing. There are app-based work like Grab, FoodPanda and NinjaVan, that anyone can do on the side, even while looking for a full-time job.
Nevertheless, while we work hard, we too have to balance our time with our loved ones.
This is why implementing the 5 Basic Checks is very important.
Should Singapore increase its population size?
We neither want our small country to be overcrowded nor do we want our property prices to go down, and we all want our property price to go up perpetually, or at least, outpace the rate of inflation.
Thus, I would rather not treat a home as an investment as there are many variables that we are unable to control.
Our policy makers are famously (or notoriously) known for being super effective in executing a plan.
The White Paper has been set for 6.9 million people by 2030. While it was said that the population will not reach that number by 2030, I believe it is just a matter of time.
So what are we, as home buyers and homeowners going to do about it?
My advice is to implement the 5 basic checks before you buy a property.
Have an emergency fund to tide on uncertain times and do not place a high percentage of your income tied into paying the monthly mortgage loan.
Feel free to contact me to discuss more.