I REFER to the report, 'Even pricey flats in great demand' (The Straits Times, Sept 30).
It made me wonder what the rationale is behind buying such expensive flats. I attribute it to the following:
A limited amount of land is reserved for housing. Hence, people feel that investing in a house is a safe, long-term investment.
An influx of foreigners and permanent residents has placed pressure on the demand for housing.
Singapore's economic growth has created wealth for many, and this group of people is inclined to invest in residential property.
Despite all these factors, we have to be aware of the volatility of the global economy and tighter financial regulations, such as credit controls for borrowing.
Hence, I advise all potential buyers to do their homework and assess their financial capabilities before jumping into the property market.
