It is not only the first time buyers that lose out when property prices increase. High property prices generally do not benefit the majority of Singaporeans because if you live in the property, to unlock the value, you will need to sell the property and buy another one. So when you sell high, you also buy high and hence there is little advantage. It is no difference from sell low, buy low. In fact, sell low, buy low is actually more beneficial because you need a smaller mortgage loan which will leave you more money for spending, retirement or savings for other purposes.
The only people that benefit from high property prices are:
1. Singaporeans who own more than one property
They can cash out those rental properties when the price is high and wait for prices to drop before buying. There is no need for them to buy immediately when they sell their property as they still have a roof over their head.
These are the elites and the high earners (you know who they are).
2. When you die
If you leave the property to your love ones, they can sell and do not need to replace it.
3. Permanent Residents
They sell high, take the money and return home.
4. Foreigners who speculate in our property market
5. The government
They get more income from higher stamp duty, property taxes, income taxes ( developers and property sales persons earn more, pay more), higher land sales, higher rental etc.
So who wants higher property prices? Definitely not the man on the street. So now you know why the MIW wants to keep supporting high property prices. They say that it is for your benefit but now you know better.
Ace