“We cannot be building new flats to cater to every last person who wants a new flat…because if you do that, then obviously you are over-building.”
National Development Minister Mah Bow Tan
So this means we should undersupply flat to keep prices sky-high?
Simple demand and supply that anyone who went through a introductory economics 101 class also can figure out. Demand is INELASTIC because HDB flat is the cheapest form of housing available to Singaporeans and everyone needs a roof over their head. If you trim the supply, prices naturally go up.
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