Property developers in China had gone through a difficult time. They had high inventory of unsold houses and are now offering big discounts to sell their new properties. Will property developers in Singapore face the same pressure over the next few years?
http://www.bloomberg.com/news/articles/2015-06-17/buy-a-flat-get-a-free-porsche-as-china-developers-rush-to-sell
http://www.bloomberg.com/news/articles/2015-06-17/buy-a-flat-get-a-free-porsche-as-china-developers-rush-to-sell
3 comments:
Mr Tan
I remember you have provided very constructive advice in the past on property in Spore. What is your view on the current market, given the huge supply (both private and public) to come in the next few years and potential interest rate hike?
With so many countries printing money and delaying the next economic downturn/ recession, will the next downturn come with more serious impact to everyone?
You have already identified the challenges facing the property market in Singapore. The property prices will stop rising. They are already too high.
There will come a time, maybe within the next three years, where the property developers have to drop prices to sell their inventory. This is similar to what is happening in China.
Be patient. Wait for a better time. Meanwhile, rent or stay in your current place.
Historically property cycle works on a 10 year range in Singapore.
The bust of the Asian Financial Crisis of 1997/1998 till the previous bust of Lehman Brothers 2008, so the next real bust would be 2018.
Mr. Tan may have it right, the next 3 years may be a better time to consider purchasing property if no hurry.
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