World Bank warns of real-estate bubble in Singapore

[dysentry]

http://finance.yahoo.com/banking-bu...set=f21f64d970ea48743f61d68ec90e45e1&ccode=mp

Fears of a New Bubble as Cash Pours In
by Alex Frangos and Bob Davis
Wednesday, November 4, 2009

Real-Estate, Stock and Currency Markets, Especially in Asia and Pacific, Are Seen at Risk

Concerns are mounting that efforts by governments and central banks to stoke a recovery will create a nasty side effect: asset bubbles in real-estate, stock and currency markets, especially in Asia.

The World Bank warned Tuesday that the sudden reappearance of billions of dollars in investment capital in East Asia is "raising concerns about asset price bubbles" in equity markets across Asia and in real estate in China, Hong Kong, Singapore and Vietnam. Also Tuesday, the International Monetary Fund cited "a risk" that surging Hong Kong asset prices are being driven by a flood of capital "divorced from fundamental forces of supply and demand."

 

[TeeKee]

Bubbles exist if people have no cash

If cold hard cash exists how could bubbles exist?

Unless you buy 10 properties with money for one only?

Then you deserved the sleepless nights after the bubbles burst!

Relax it's just paper money! At most foreclosures!

Don't take it too hard one big quake comes everything wipe clean

remember when you first appeared on earth u are naked and carries nothing

after you mati you will be slowly moved to the furnance and burnt into ashes and bones

no way you could bring those mega tonnes objects with you

if you leave it to your children they ended up fighting to their death

or they ended up as dependents to your estates and cannot survive on their own once they splurged everything on Bmws or Benz

the gabramen still ended up as winners with the Coes and other miscellanous charges!

Isn't life so troublesome?

You pick the road mah!

 

[zuoom]

maybe not so much in the residential. as it's held up with the increase in population. last time only 5% foreign buyers, now it's 40% buyers. (though it's a little on the high side if compared to the ratio of foreigners n locals.)

there's something about the commercial/industrial sector though. have a look at the amount of that coming online in the next 2 years versus the demand.

anyway, if it's mentioned, it's already happening.

 

[Seee3]

It depends on the "quality" of the foreign buyers. If they are the oil rich Arab, its ok. They can afford to lose. If it is big time PRC it is also ok, they are into money lau... However if it is not too rich new PRs and citizens, we must be careful.

 

[SotongMee]

Teekee, you speak good sense here, will :oIo: your points if I could.

Bubbles exist if people have no cash

If cold hard cash exists how could bubbles exist?

Unless you buy 10 properties with money for one only?

Then you deserved the sleepless nights after the bubbles burst!

Relax it's just paper money! At most foreclosures!

Don't take it too hard one big quake comes everything wipe clean

remember when you first appeared on earth u are naked and carries nothing

after you mati you will be slowly moved to the furnance and burnt into ashes and bones

no way you could bring those mega tonnes objects with you

if you leave it to your children they ended up fighting to their death

or they ended up as dependents to your estates and cannot survive on their own once they splurged everything on Bmws or Benz

the gabramen still ended up as winners with the Coes and other miscellanous charges!

Isn't life so troublesome?

You pick the road mah!

 

[SotongMee]

Duplicate posting- Sorry

Bubbles exist if people have no cash

If cold hard cash exists how could bubbles exist?

Unless you buy 10 properties with money for one only?

Then you deserved the sleepless nights after the bubbles burst!

Relax it's just paper money! At most foreclosures!

Don't take it too hard one big quake comes everything wipe clean

remember when you first appeared on earth u are naked and carries nothing

after you mati you will be slowly moved to the furnance and burnt into ashes and bones

no way you could bring those mega tonnes objects with you

if you leave it to your children they ended up fighting to their death

or they ended up as dependents to your estates and cannot survive on their own once they splurged everything on Bmws or Benz

the gabramen still ended up as winners with the Coes and other miscellanous charges!


Isn't life so troublesome?

You pick the road mah![/QUOTE]

 

[ahleebabasingaporethief]

S'pore property mkt would have CRASHED if not for stupid FTs KEILENGS from India, Pinoys, and others from Indo China, buying property at highest prices.

Which S'porean would buy HDB flats in Jurong West and Senkang?
​

 

[Stage 5]

S'pore property mkt would have CRASHED if not for stupid FTs KEILENGS from India, Pinoys, and others from Indo China, buying property at highest prices.

Which S'porean would buy HDB flats in Jurong West and Senkang?
​

Seriously, do you actually buy that bullcrap explanation? Think about it. How does a FT foreigner come to sinkieland to work at reduced wages afford to buy property at the highest prices? When the locals themselves earning a higher pay finds it hard to cope. You think it's plausible?

 

[chewed]

Seriously, do you actually buy that bullcrap explanation? Think about it. How does a FT foreigner come to sinkieland to work at reduced wages afford to buy property at the highest prices? When the locals themselves earning a higher pay finds it hard to cope. You think it's plausible?

SG property bubble will not burst all thanks to HDB's "heavily subsidised" pricing. All private properties is based upon that.

 

[borom]

How does a FT .....work at reduced wages afford to buy property at the highest prices?

Good point.
Other "evidence"
1. market sales in 2009 so far – at about $11.2 billion – is only about half the
$23 billion worth of new homes sold in the peak year of 2007.
......reflects the fact that mass-market homes have hogged the limelight
.....unlike 2007, when the spotlight was on the luxury market.

2. Another difference .....is a drop in the number of foreign buyers.
‘In 2007, 1,736 foreigners bought private homes.....in 2009 to date, only
651 foreign purchasers have bought new homes,’ CBRE said.

http://sharonanngoh.com/2009/10/30/in-dollar-terms-‘09-


Why are the people who are in the know, "the luxury segment" buyers
not taking the bite while the mass market buyers are paying record prices during the country's worst recession, H1N1 pandemic and continuing collapse of financial institutions in the US?

Is it the same as when the housewives and amahs start buying...its time to get out.?

 

[Stage 5]

SG property bubble will not burst all thanks to HDB's "heavily subsidised" pricing. All private properties is based upon that.

Lets hope so.

 

[Stage 5]

Good point.

2. Another difference .....is a drop in the number of foreign buyers.
‘In 2007, 1,736 foreigners bought private homes.....in 2009 to date, only
651 foreign purchasers have bought new homes,’ CBRE said.

Right, most foreigners can only invest directly in the private homes so there a real reason for peak prices there, and not for the public housing.

 

[TeeKee]

Isn't life so troublesome?

You pick the road mah!

try to guess more of what can give you alot of troubles?

 

[borom]

* November 5, 2009, 11:28 AM ET

QE and Cheap Money. This Has to Stop.

The Bank of England has extended its quantitative easing program by another £25 billion, taking the total involved to an incredible £200 billion. It also kept interest rates on hold at 0.5%. In America, the Fed has indicated that it plans to keep interest rates close to zero for an “extended period.” At some point, and the sooner the better, this is all going to have to stop.

For, as Allister Heath at CityAM points out in his column, “Bubblenomics is back with a vengeance.” He notes that U.K. property prices are surging; there is a bubble in the Australian dollar and a return to overvalued property markets in Asia (house prices in Singapore jumped over 15% in the most recent quarter).

Cheap money is the drug created by desperate central banks that is principally enabling this global speculation. And just as the last bubble burst so this one will too.

But it is said to be too dangerous to stop with this cheap-money policy now. This is what addicts fearing cold turkey usually say. One more bout of low interest rates and that’ll be it. A last hit of QE, just another £25 billion in Britain’s case… until next time.

At some point, most likely as a result of a shock event as yet unseen by the geniuses behind QE, the music will stop, and this bubble - like the one before it - will burst. Surely, it is better to stop now before it gets any bigger? Shouldn’t interest rates start to rise to deal with it?

Ah… but you can’t do that, it is said. If you do then the bond market will explode because its behavior is predicated on interest rates staying very low. Why? Because “everybody” - governments and markets - needs rates to be low so that countries such as the U.S. and U.K. can service those massive piles of debt they have run up and thus keep their respective shows on the road. At the root of the problem then is debt, and the stupidly high government spending that has caused it. The British government is spending way too much, which it is paying for by borrowing and printing money. America’s deficit, too, is horrendous.

There is a solution, of course. But it’s unfashionable and involves pain now rather than later. It is that governments such as the U.S. and the U.K. should accept reality and make massive cuts in their spending - starting now. That way they’ll start to need to borrow less and have room to manoeuvre on interest rates.

For now there is no sign of it - we are still in the fantasyland of endless cheap money. But the longer we all wait for politicians and central bankers to take action, then the more painful it will be in the end.

http://blogs.wsj.com/iainmartin/2009/11/05/qe-and-cheap-money-this-has-to-stop/tab/print/

Waiting for interest rates to rise and burst the bubble