According to this
article, housing prices in the future will at best keep up with inflation and will not produce the spectacular return in the past. In the near time, it has to correct downwards, i.e. fall by 20% in the USA. I agree with this analysis and believe that this will also apply to Singapore.
Well, I think so too. The real question is - when and to what extent? If anyone can tell me that - then this person is a real genius!
ReplyDeleteI agree too.
ReplyDeleteRead my blog posting :-
The Property Bubble & Investment Trap
http://de-leviathan.blogspot.com/2010/08/property-bubble-investment-trap.html
The Property Bubble & Investment Trap Part II
http://de-leviathan.blogspot.com/2010/08/property-bubble-investment-trap-part-ii.html
Housing markets historically speaking in all countries that were studied by economists (i.e. Europe and US) have always kept in pace with inflation and at best provide +1% real returns. It's amazing how Singaporeans treat housing like an "investment" when in reality it is a consumption item.
ReplyDeletejust dont know how my kids can afford anything. have told them i am prepare to expand the house we live in to accomodate their families when they get married instead of a 30 years burden.
ReplyDeleteI agree too. There are way too many signs of a bubble.
ReplyDeleteI think the article refers to the housing market in the USA where the bubble has burst. The housing situation in s'pore is diffirent. The gover has in place policies that would create a property investment market climate, such as allowing high net work non citizens from India , China etc to invest in S'pore property
ReplyDelete