Hi Mr Tan,
Here is an interesting article about the housing crash continuing in US even after all the stimulus.. I suspect that China(Shangai and HK) and eventually Singapore will suffer the same fate. http://patrick.net/housing/crash.html
Here is another interesting article on possible crash of china propery bubble for you to read.
http://www.dailymarkets.com/economy/2010/04/09/jim-chanos-on-the-coming-collapse-of-chinas-property-market/
We should hope that price to stabilize, not crash.
ReplyDeleteIf the price crashed, everybody will be suffered.
In Singapore govt is totally in charge of public housing (80%) and land sales for private property development. Hence they have great control over property prices in a small dot.
ReplyDeleteSo I think the govt can prevent any property price crash. As long as the population is sustained or even increase to 6 or 7 million.
Unless many do not want to live or come here anymore which is most unlikely.
agree with Anonymous@April 16 2010 1:33PM
ReplyDeleteSingapore's scenario is very different. The housing market is not as free as other countries. Especially there's BTO which further limits the HDB supply and thus prices rocketed to the sky. There will always be many people who want to buy HDB instead, especially the new citizens or PR.
A property is like a blue chip share (eg SIA).
ReplyDeleteIt's a good investment until it drops 30% in value. At that point, it becomes a speculation.
When asset prices goes up, everybody becomes an investor. Buy and hold. "It's different this time".
I just cannot believe how quickly people forget.
Anyhow, you've been warned. I'm not going to be feeling guilty when I once again become a vulture investor in the next down cycle.
If everybody think property prices will go up so are we expecting private 99 years condo to cost $1300, $1500, $1700, $2000/sq ft while our wages are depressed by market forces due to influx of foreigner ? For those who missed out the opportunities it is too late to catch the cycles. Stay put and enjoy what you already have. Clear your loan,be happy and healthy and live life to the fullest and watch the show.As the saying goes.....what goes up must come down. The higher it goes up the heavier it will come down. Cheer !
ReplyDeleteWhile the property market is not likely to crash, it is however very likely to plateau and stagnate for a long long time. Which may not be a bad thing as it takes speculators and flippers out of the market. Already we are seeing subsales slowing down due to the new cooling measures.
ReplyDeletewhat goes up, must come down. Does Singapore Properties defies this law? Aren't we all living in a bubble? If we can have some chart to compare the 1980s, 1990s, 2000s and 2010, probably we'll realize, the housing price is climbing faster than your pay.
ReplyDelete