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Coffeeshop Chit Chat - Economist: SG props are 19.6% overvalued</TD><TD id=msgunetc noWrap align=right> </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead vAlign=top><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>kojakbt_89 <NOBR></NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>1:57 am </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 7) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>31972.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Economist: Singapore properties are 19.6 percent overvalued
April 20th, 2010 |
Author: Our Correspondent
http://www.temasekreview.com/2010/04/20/economist-singapore-properties-are-19-6-percent-overvalued/
According to an article published in The Economist last week, Singapore properties are 19.6 percent overvalued. The result is hardly surprising given the sky-rocketing prices of both public housing and private properties. (read article here)
“Singapore has gone from being one of the most depressed housing markets in the third quarter of 2009 to being the second-frothiest in the three months to March. This effervescence clearly worries its government, which has made it more difficult for buyers to delay mortgage payments and taken steps to deter speculative purchases,” it reported.
Since the gradual recovery of the economy last year, the Singapore property market has rebounded strongly led by the public housing sector.
The prices of resale flats grew by 8.2 percent last year with median Cash-Over-Valuation doubling from $12,000 to $24,000 in the last quarter alone.
The return of foreigners into the Singapore has helped jump-start a moribund market paralyzed by the global financial crisis. They form about 70 percent of buyers in the private property sector and 20 percent in the public housing market.
The escalating prices led to fears of the emergence of a property bubble which prompted the government to introduce a series of measures to curb speculation in the market.
Despite the initiatives taken, the prices continue to grow albeit at a lower rate.
Of late, government leaders have called on Singaporeans not to sell their HDB flats for a quick buck and there were talks about locking the profits from the sale of flats in the sellers’ CPF to discourage them from selling their flats.
It remains to be seen if the red-hot Singapore property market will cool down in the months ahead as the economy is set to grow by more than 5 percent this year.
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http://www.temasekreview.com/2010/04/20/economist-singapore-properties-are-19-6-percent-overvalued/
According to an article published in The Economist last week, Singapore properties are 19.6 percent overvalued. The result is hardly surprising given the sky-rocketing prices of both public housing and private properties. (read article here)
“Singapore has gone from being one of the most depressed housing markets in the third quarter of 2009 to being the second-frothiest in the three months to March. This effervescence clearly worries its government, which has made it more difficult for buyers to delay mortgage payments and taken steps to deter speculative purchases,” it reported.
Since the gradual recovery of the economy last year, the Singapore property market has rebounded strongly led by the public housing sector.
The prices of resale flats grew by 8.2 percent last year with median Cash-Over-Valuation doubling from $12,000 to $24,000 in the last quarter alone.
The return of foreigners into the Singapore has helped jump-start a moribund market paralyzed by the global financial crisis. They form about 70 percent of buyers in the private property sector and 20 percent in the public housing market.
The escalating prices led to fears of the emergence of a property bubble which prompted the government to introduce a series of measures to curb speculation in the market.
Despite the initiatives taken, the prices continue to grow albeit at a lower rate.
Of late, government leaders have called on Singaporeans not to sell their HDB flats for a quick buck and there were talks about locking the profits from the sale of flats in the sellers’ CPF to discourage them from selling their flats.
It remains to be seen if the red-hot Singapore property market will cool down in the months ahead as the economy is set to grow by more than 5 percent this year.
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