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http://forum.channelnewsasia.com/viewtopic.php?t=289445&start=0
<TABLE class=forumline border=0 cellSpacing=1 cellPadding=3 width="100%"><TBODY><TR><TD class=row1 vAlign=top width=150 align=left>colby
Joined: 13 Jul 2007
Posts: 1286
</TD><TD class=row1 height=28 vAlign=top width="100%"><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD width="100%">
Posted: Wed Oct 21, 2009 12:27 pm Post subject: Pvt property price collapse to follow rental collapse</TD><TD vAlign=top noWrap>
</TD></TR><TR><TD colSpan=2><HR></TD></TR><TR><TD colSpan=2>There is no doubt too many condos newly released are not finding buyers. These are condos TOPed from 2007 to today, and with the downward pressure on rentals, just TOPed condos could not be left emptied earning nothing while the owners continue paying the hefty monthly installments.
If a typically bought condo with $5k monthly installment is losing hefty $60k a year left unrented. A $2k rent will reduce losses by $24k only. But there are too many $2k rental units on offer now and unless the new condos are rented as soon as TOPed, the outright losses in returns alone will mean anything like $100k-$200k for 2-3yrs.
In 2-3yrs given enough time, China and India properties will grow in quality to become the dominant pull factor to draining values from property markets here and in this region. Even with the 2 IRs, foreign investors will find little reason to remain here in Singapore. To foreign investors in the not distant future, Singapore has become a 2nd-hand China with over-paid China and India talents resulting from a twisted FT import policy overturned by the global change of economic powers.
The stark future -> property owners may be lucky if they get off with 200k-300k losses. The 300k-600k losses remain a possiblity given many condos have been speculated to 1kpsf. Anything is possible now in global property markets. In US, there are even foreclosed homes auctioned at US$7000 with no bidders.</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
<TABLE class=forumline border=0 cellSpacing=1 cellPadding=3 width="100%"><TBODY><TR><TD class=row1 vAlign=top width=150 align=left>colby
Joined: 13 Jul 2007
Posts: 1286
</TD><TD class=row1 height=28 vAlign=top width="100%"><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD width="100%">
Posted: Wed Oct 21, 2009 12:27 pm Post subject: Pvt property price collapse to follow rental collapse</TD><TD vAlign=top noWrap> </TD></TR><TR><TD colSpan=2><HR></TD></TR><TR><TD colSpan=2>There is no doubt too many condos newly released are not finding buyers. These are condos TOPed from 2007 to today, and with the downward pressure on rentals, just TOPed condos could not be left emptied earning nothing while the owners continue paying the hefty monthly installments. If a typically bought condo with $5k monthly installment is losing hefty $60k a year left unrented. A $2k rent will reduce losses by $24k only. But there are too many $2k rental units on offer now and unless the new condos are rented as soon as TOPed, the outright losses in returns alone will mean anything like $100k-$200k for 2-3yrs.
In 2-3yrs given enough time, China and India properties will grow in quality to become the dominant pull factor to draining values from property markets here and in this region. Even with the 2 IRs, foreign investors will find little reason to remain here in Singapore. To foreign investors in the not distant future, Singapore has become a 2nd-hand China with over-paid China and India talents resulting from a twisted FT import policy overturned by the global change of economic powers.
The stark future -> property owners may be lucky if they get off with 200k-300k losses. The 300k-600k losses remain a possiblity given many condos have been speculated to 1kpsf. Anything is possible now in global property markets. In US, there are even foreclosed homes auctioned at US$7000 with no bidders.</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
:oIo:
