IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORTARSE

[ahleebabasingaporethief]

Published April 22, 2010

IMF flags 'bubble trouble' in Asia
Many property markets overheating and correction fears loom; S'pore sees big share of new bank lending going into real estate

By VIKRAM KHANNA

(SINGAPORE) The International Monetary Fund warns that residential real estate markets in East Asia are overheating and that by some measures, valuations are stretched.

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</td></tr></tbody></table>In its just-released Global Financial Stability report (April 2010), the IMF notes that since the second half of 2009, housing prices - especially at the high-end of the market - have rebounded quickly in China, Hong Kong, South Korea, and Singapore as well as Australia and New Zealand. In many markets, prices now exceed their 2008 peaks.
The rebound has been mainly driven by 'unprecedented policy measures to mitigate the impact of the global financial crisis and the ensuing return of risk appetite'.
Mortgage rates are at historical lows as central banks around the globe have cut policy rates.

Real estate loan growth has been revived. So has the proportion of real estate loans to total bank lending, which in Singapore was close to 80 per cent in Q4 2009. This is the highest among the markets highlighted in the report. In percentage terms, year-on- year, the real estate loan growth has picked up most sharply in China.
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</td></tr> <tr> <td bgcolor="#fffff1"> <table width="124" align="center" border="0" cellpadding="0" cellspacing="0"> <tbody> <tr> <td valign="top">IMF says that many purchasers have been buying 'in the expectation of price appreciation, rather than simply for dwelling purposes'.
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Governments in China and Korea introduced housing-related tax breaks in late 2008 to help boost their property markets.

Capital inflows have further fuelled property price increases, particularly in Hong Kong and Singapore.
In Singapore, foreigners and companies accounted for 12.5 per cent of the third-quarter home purchases in 2009, compared with 8 per cent in the previous quarter.
The Fund cautions that by some measures, housing valuations are stretched. Although the average price-to-income ratio has risen modestly, in some markets - notably, China, Hong Kong, Singapore and Korea - price-to-rent ratios are 'elevated'. It adds that many purchasers have been buying 'in the expectation of price appreciation, rather than simply for dwelling purposes'.
The region's booming real estate markets may pose risks to financial stability in the future, according to the IMF. Banks are 'increasingly vulnerable' to a price correction. Moreover, as most mortgage loans in Asian economies carry floating rates, 'the widely anticipated rate hikes in the region will increase the burden on household balance sheets'.
The Fund acknowledges that governments in the region have taken measures to cool real estate markets, including tighter requirements on mortgage lending, increased land supply, and the reimposition of higher transaction taxes, such as stamp duties.
In Hong Kong, the average loan-to-value ratio of new mortgage loans has dropped significantly from its peak in June 2009, and banks in mainland China have started to tighten their mortgage criteria. In response to such measures, the growth rates of transaction values have declined, including in Singapore.
However, the full effects of the cooling measures 'are still to be seen in the coming quarters', says the Fund. It also suggests that governments may need to fine-tune their policies 'to maintain a delicate balance between leaning against housing bubbles and ensuring a solid economic recovery'.[/FONT]
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[ahleebabasingaporethief]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

".....Real estate loan growth has been revived. So has the proportion of real estate loans to total bank lending, which in Singapore was close to 80 per cent in Q4 2009. This is the highest among the markets highlighted in the report."


Highest among the markets reported? Wah say, if property prices collapse, our banks will collapse.....and so forth?
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[gbomega]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

For people who have paid all his HDB and have no plan in the forseeable future to shift, does property bubble burst affect them? Anyone?

 

[ahleebabasingaporethief]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

For people who have paid all his HDB and have no plan in the forseeable future to shift, does property bubble burst affect them? Anyone?

Probably not.

By the same token, if cannot sell? What is the point of property prices rising sky high and ONLY able to help the SCUMS boast but cannot enjoy even 1 cent?

I liken it to putting food in a glass container, smear the outside of the glass container with the food juices, and let a pack of hungry dogs get at it. Can see, smell but cannot enjoy the food. Any meaning in life like this?

Well, welcome to Singapore. UNIQUELY SINGAPORE. YOUR SINGAPORE.

These slogans were put out to laugh at poor Singaporeans. Being taken advantage of by the SCUMS and not able to do a thing about it. Now you understand?.
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[zuoom]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

should those people that borrowed to buy property be worried?

 

[ahleebabasingaporethief]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

should those people that borrowed to buy property be worried?

If property prices correct the way it is supposed to, worrying is the last thing on the borrowers' minds.

I have always maintained that investing based on data put out by 154th will be detrimental to your health. Since when they share good things with you? They help you make 1-2 rounds then you in turn help them to ram the prices up. Then they always turn around and take every cent of your profits plus plus plus.

It's a ZERO SUM game. GREEDY Citizens mostly lose.
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[LonewolfAlfa]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

there are many rich people here whom have been waiting for the bubble to burst, if it ever will. It will be a repeat of what happened at the last supposedly crash which lasted for only a couple of months.

at the first sign of a crash or a dip in the prices, the cash rich will start shopping.

Prices will then start to hold and climb up slowly.

Those who have been anticipating a further dip in the prices will start to panic and jump in grabbing whatever they can.

Then the prices will shoot up higher then before, and those who cant afford to buy will start claiming that a bubble is forming...

 

[Watchman]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

Is those people who are allowed credit that cause the property balloon .

 

[Papsmearer]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

PAP will come out and say that these are angmo stats and don't apply to S'pore, only their unique stats put together by their unique running dog economists are correct and that flats here are affordable and not overpriced.

 

[borom]

Re: IMF Says Singapore Property Prices GROSSSLY INFLATED. Everyone Knows Except SHORT

The aussie govt has already tightens rules for foreign property buyers -


[*]temporary residents need permission to buy homes and must sell when they leave the country

[*]foreigners investing from abroad can buy only new properties

" We want to make sure that Australian working families are not being priced out of their own family homes"said PM Kevin Rudd.
(ST 25/4/10 pg 6)

What a difference from another place where the govt keep on harping on integration of foreigners and making sure there are more foreigners to act as spurs on the hide of the locals.

Even in a communist country like the PRC,an adviser to the central bank said that
"the government must rein in speculation" and
the unhappiness among the Chinese people over rising property prices is at an unprecedented level "

The PRC has already

[*]increase down payment requirements

[*]raise interest rates on second homes

[*]bar bank lending for third dwellings (ST April 25 pg 24).


However the highest paid ministers in the world still claim that property prices are affordable (any statistics to say its now still 30% of income over 30 years mortgage?) and have only raise down payment and stop deferred payment which many can see are half hearted measures.