Housing prices- would it correct at all?

[SirRichard]

Guys,

Anyone here that's well versed with property market care to share your views. With so many rounds of measure, our markets seems to defy gravity and it keeps getting up and up! Not even the stamp duty on foreigners could dampen their appetite for properties here. Is this going to be the trend moving forward?

My questions:

1) are we in a similar juncture as the period of year 2000 to year 2005 ( can't remember the exact year ) where property prices came down and remain stagnant for many years?

2) with economy looking unimpressive last year and this year, is there a high chance of those over stretching defaulting on their house?

3) with many deferred payment houses due for completion in 2013/2014- what could the impact be?

4) do you think hdb prices will correct ?

5) have we pass the days where suburban 2rm condos can be purchased at 600-700k and cbd fringed 2rm condo such as newton can be bought at 1 million ?

I'm hoping there's a chance of it correcting in the near future so that I can buy a unit. At this price, it's too crazy.

 

[Travellor]

with so much hot money stuck n this place, nothing will happen to the property prices. you wan to see sme corrction, it will happen when the PRC governments openly asks Singapore to cough up details of all the illegal wealth stashed by its nationals here. first to go will be the multi million properties n Sentosa.

if the govt is sincere about controlling property prices how about his measure? All foreigners who gave bought properties in Sg can ONLY sell it to a Singaporean!! then you will truly see the reality and extent of tf money laundering in this country......

 

[Travellor]

btw is it just me or are there a dsconcerting number of Russians and other Eastern Europeans here over the last couple of years....

 

[aerobwala]

yes, you are right, more golden hairs boys/girls walking on street in slipper

btw is it just me or are there a dsconcerting number of Russians and other Eastern Europeans here over the last couple of years....

 

[shctaw]

Even though I want Singapore property market to correct; but with all the money printing activity....... it price level may stay stagnant for years.

 

[shctaw]

To a foreigner; Singapore property is now more expensive then ever. Additional tax will hurt developers; buyers whom stay sideline can avoid those curb by investing in Retail or Office units to avoid Industrial Property Tax.

There are more than 180 countries people can buy properties in; Singapore is only 1 of them.

Singaporeans should consider Malaysia properties now, do not act like a frog in a water well. The world is so big; why just buy in Singapore?

You can still get landed properties in JB for SGD$200,000. How much risk can this be? Comparing to buying a $500,000 public housing which I find it to be 10 time riskier.

 

[po2wq]

Housing prices- would it correct at all? ...

if it corrects n it affects ah loon's gdp. u tink ah loon want it 2 correct? ...

a lot of ah loong n his jin-gang members n cronies haf invested in props ... u tink dey want their moni 2 b stuck inside 4 donkey ears? ...

 

[ragout]

Personally I dont see that these new measures will have much bite because the buying momentum is very strong. The reasons for purchasing Singapore properties also make good investment sense to some foreigners. There may be a slight dip in prices in the next few weeks but the buying interest and the holding power of the developers should keep the market buoyant still.

 

[orbin]

if it corrects n it affects ah loon's gdp. u tink ah loon want it 2 correct? ...

a lot of ah loong n his jin-gang members n cronies haf invested in props ... u tink dey want their moni 2 b stuck inside 4 donkey ears? ...

Many rich Chinese here and continue to come here to be PRs, you think PAP are solving the problem? Ask any Chinese what they think of property prices in Singapore, only one answer, "it will only go up because Singapore is so tiny".

 

[Brightkid]

Read the new policies in-between the lines!

Some of these, such as the ABSD and loan quantum, are just temporary.

If you have $, buy when price goes down beyond 5% (just my off-the-air figure ok.), wait for govt to remove the said policies, you will be sitting on a big bundle after that. Remember many years ago when Loan-to-Value was capped around 60% and when it went back up to 80%?

Same history will repeat.

With the continued influx of foreigners( who can't get jobs in their home country) and rental remained strong due to the new policies, property investments, due to to cash rich residents (you cannot imagine how rich a lot of people here are!), and beside being a legally-secured property investment environment, properties here will not stay low for long.

Above my 2-cents plus GST opinion only.

 

[ragout]

Brightkid,

I have the same thinking as what you posted and I believe the market will continue to remain strong as long as the interest rates continue to be as rock bottom as this. One concern is that the base is rather high now although not overly so if compared to Hong Kong.
Buying on a dip is quite the correct thing to do.

 

[TuaGow]

unlikely for the short term.

 

[Boliao]

To a foreigner; Singapore property is now more expensive then ever. Additional tax will hurt developers; buyers whom stay sideline can avoid those curb by investing in Retail or Office units to avoid Industrial Property Tax.

There are more than 180 countries people can buy properties in; Singapore is only 1 of them.

Singaporeans should consider Malaysia properties now, do not act like a frog in a water well. The world is so big; why just buy in Singapore?

You can still get landed properties in JB for SGD$200,000. How much risk can this be? Comparing to buying a $500,000 public housing which I find it to be 10 time riskier.

It's the returns. You can't get the same returns over the same period when investing between Singapore and JB. With $200,000 I rather invest in dividends paying funds than the crime city.

 

[ChaoPappyPoodle]

The rich will always be able to overcome these frivolous barriers. Coupled with an ever increasing supply of new immigrants and the failure to build sufficient homes, demand will always be able to take up whatever homes are placed onto the market.

If the garment really wants to halt price increases then they have to limit home owners to one or two properties for singles and for spouses. Managing inflow of foreigners and escalating home building. HDB prices as a floor price should be lowered to the cost of building them. However with the PAPzis in power these things will never happen. The PAPzis are the country's biggest developers and land owners. Their minions include many property developers and they all happily gouge on the lower and middle income Singaporeans to feed their greed.

 

[zhihau]

btw is it just me or are there a dsconcerting number of Russians and other Eastern Europeans here over the last couple of years....

last couple of years? they started streaming in since mid 90s! privet comrade :p:p:p

 

[Boliao]

The rich will always be able to overcome these frivolous barriers. Coupled with an ever increasing supply of new immigrants and the failure to build sufficient homes, demand will always be able to take up whatever homes are placed onto the market.

They can but the question is, will they? It is simple Math and the calculation of opportunity cost. The root cause of this property market at its fundamental, is the interest rates. At such a low interest rates, almost any investment will top it. However, the increased in cash component this time round, is not insignificant. When it passes a certain threshold, one would be better off investing in more liquid-able assets than properties versus deciding between investment rates and loan rates. The trick is finding that threshold.

Personally, I think this may work but I'm not 100% sure as the rich has gone from just being rich to wildly rich. Putting an additional $500k aside doesn't seem to raise an eyebrow these days. Where this proposal will definitely work, is on those who are trying to breakthrough the poverty barrier and stretching themselves through loans. I expect some fire sales coming for those on floating rates - they will not be able to reduce their loan tenure given the new LVR imposed and neither will they be able to fork out the extra cash in such a short moment. It does not really solve the problem of escalating cost but it will at least, prevent the bubble from getting bigger.

Will property price goes down? No unless there is a severe economic crisis. Simply ask yourself.. will you let go a property at 80% of what you paid for unless you are desperate?

Take the 26 year old lady who has 29 other properties (interviewed a couple years back for the CBD property). I seriously doubt she can hold on to her properties.

 

[laksaboy]

Nothing is going to happen. Interest rates are deliberately kept low for a reason.

Good for borrowing money from the banks... but for what specific purpose are those low interest rates targeted towards?

And please don't tell me it's good for doing business. Lots of business were also done in Singapore back in the 1980s and 1990s, despite the higher interest rates back then.

The SG govt encourages speculation, because its cronies at HDB and various property development companies stand to gain. 'Asset appreciation' also has the political side benefit of keeping the status quo, thus keeping a certain political party in power.

 

[Prometheus888]

Nothing is going to happen. Interest rates are deliberately kept low for a reason.

Good for borrowing money from the banks... but for what specific purpose are those low interest rates targeted towards?

And please don't tell me it's good for doing business. Lots of business were also done in Singapore back in the 1980s and 1990s, despite the higher interest rates back then.

The SG govt encourages speculation, because its cronies at HDB and various property development companies stand to gain. 'Asset appreciation' also has the political side benefit of keeping the status quo, thus keeping a certain political party in power.

It makes perfect sense. if they cannot control or avoid a black swan event like a catastrophic financial crisis, the least they can do is make sure that nobody runs away from this little island. When you have a lot of your personal worth tied up with properties here, surely you wont be going anywhere soon. this is probably the case for most sinkies because they have no where to run, but this speculative environment seeks to entrench the dumbass middle class pinoys and (indian and chinese) mainlanders into putting all their eggs into the PAP basket.

 

[Boliao]

It makes perfect sense. if they cannot control or avoid a black swan event like a catastrophic financial crisis, the least they can do is make sure that nobody runs away from this little island. When you have a lot of your personal worth tied up with properties here, surely you wont be going anywhere soon. this is probably the case for most sinkies because they have no where to run, but this speculative environment seeks to entrench the dumbass middle class pinoys and (indian and chinese) mainlanders into putting all their eggs into the PAP basket.

Wrong.. it makes it even more attractive for Singaporeans to run. If I sell my properties now, I can retire immediately in any city I want (looking at New Zealand, Perth, Thailand and Northern Malaysia). In fact, this is the best time for anyone to cash out and 'run-road'.

 

[Prometheus888]

Wrong.. it makes it even more attractive for Singaporeans to run. If I sell my properties now, I can retire immediately in any city I want (looking at New Zealand, Perth, Thailand and Northern Malaysia). In fact, this is the best time for anyone to cash out and 'run-road'.

That's what any rational singaporean would do....like the sinkies who have shifted to their huge properties in Horizon Hills in JB (a couple of years ago)....

but you are dealing with these perennial human conditions called greed and hope.....