View Full Version : QE2 coming! SG private property explode upwards soon!
it is inevitable. it will happen and it must happen.
there are precious few places in the world to park big hot cash now, especially now since china and hk are hit by speculation curbs.
watch this space.
stalingrad
02-11-10, 17:55
it is inevitable. it will happen and it must happen.
there are precious few places in the world to park big hot cash now, especially now since china and hk are hit by speculation curbs.
watch this space.
but we have also been hit by speculation curbs, with more to come.
Condo Collector
02-11-10, 18:03
Too late liaw.... How can Singapore stop the reaching Tsunami? Dig holes?
Super Inflation! Hurrah!
With markets flush with liquidity and low yields everywhere and high risk with equities ppty is the right place to park your money, but as the govmnt curbs the purchase of ppties for investment you know what happens? The gap between the rich (who are not affected by the curbs) and the poor gets wider.
Properties is not the only way to park your money.
I try to follow what the top analysts from US are saying. Investors in different parts of the world are running away from properties, equities, bonds, etc. and going to "safe havens" like commodities.
These days, it is not the "rich" are buying properties, but the "high-risk takers" are buying.
Geylang OKT
02-11-10, 22:34
Share markets all over the world will cheong skyhigh. :D :D :D
if u read PM's interview with reuterl, seems that he is expecting a lot of hot money flowing into this part of the world
Govt can cool property market, but how to cool equity markets...?????
if u read PM's interview with reuterl, seems that he is expecting a lot of hot money flowing into this part of the world
Govt can cool property market, but how to cool equity markets...?????
capital gains tax :scared-3:
capital gains tax :scared-3:
this will be the final solution, but damage done will be irreparable.....
capital gains tax coming....:doh:
Seems like the whole Asia/Emerging Market have a stronger reaction to QE2 than the first QE. India raised rate, China raised rate ahead of QE2 announcement and Korea suspected to hike rate too. Was just wondering is Asia bracing for a tightening cycle to combat the inflows?
Most governments are alert to the potential asset inflation driven by QE2 and PM Lee also mentioned that govt is watching. So we are essentially betting on how strong the govt measures are going to be?
Condo Collector
06-11-10, 22:53
Seems like the whole Asia/Emerging Market have a stronger reaction to QE2 than the first QE. India raised rate, China raised rate ahead of QE2 announcement and Korea suspected to hike rate too. Was just wondering is Asia bracing for a tightening cycle to combat the inflows?
Most governments are alert to the potential asset inflation driven by QE2 and PM Lee also mentioned that govt is watching. So we are essentially betting on how strong the govt measures are going to be?
Increase interest rate to flight QE2? Please don't joke!
If you increase your interest rate, you become a magnet! Dude!
devilplate
06-11-10, 23:05
yeah...gd point...
on the other hand, they nid to increase interest rate to combat inflationary pressures....:beats-me-man:
yeah...gd point...
on the other hand, they nid to increase interest rate to combat inflationary pressures....:beats-me-man:
that's why we use currency to combat inflation rather than interest rates.
but alas, how do you combat a second tsunami of 600bln.
if it's just property sector in singapore... i think just another round of what we saw in 30 Aug measures (or something slightly more drastic) would be able to do the job?
let's say Government ban all foreigners for buying properties in Singapore, that would surely do it. however cost of such measure would be too high. so it's the balancing thing i guess....
that's why we use currency to combat inflation rather than interest rates.
but alas, how do you combat a second tsunami of 600bln.
(In RED) - Is that ever possible when they even allow foreigners to buy the landed in Sentosa without requiring any approval? To do what you mentioned means that must be turning around 180 degrees and further slapping the foreigners several times in their faces! You think our Govt so stupid? :doh: They will forever welcome the foreigners with open arms (to the extend of even approving PR to be able to buy landed) but if need be only tighten policies that affect the masses (i.e. HDB flats & OCR private properties). The rich can take care of themselves (that is why they are rich)! (So, make sense to earn from the rich and let them do what they want).
if it's just property sector in singapore... i think just another round of what we saw in 30 Aug measures (or something slightly more drastic) would be able to do the job?
let's say Government ban all foreigners for buying properties in Singapore, that would surely do it. however cost of such measure would be too high. so it's the balancing thing i guess....
devilplate
07-11-10, 11:17
i am really against PRs from getting Landed ppty so easily....govt shd 'force' PRs to convert b4 they r allowed to buy mah...so sian:doh:
'to ban foreigners from buying air space' is a BIG NO....its jus like banning foreigners from entering our casinoes...:p
i wud guess sg govt may try to 'follow' HK, China measures.....60 or 50% ltv for 3rd mortgage loan onwards....got $$ den play, no $ pls dun stretch....fair and square:D
rattydrama
07-11-10, 11:36
(In RED) - Is that ever possible when they even allow foreigners to buy the landed in Sentosa without requiring any approval? To do what you mentioned means that must be turning around 180 degrees and further slapping the foreigners several times in their faces! You think our Govt so stupid? :doh: They will forever welcome the foreigners with open arms (to the extend of even approving PR to be able to buy landed) but if need be only tighten policies that affect the masses (i.e. HDB flats & OCR private properties). The rich can take care of themselves (that is why they are rich)! (So, make sense to earn from the rich and let them do what they want).
I heard of a story which goes like this. One Ah Nei became PR and bought a re-sale HDB. His kids enjoyed all the subsidized school fees as PRs. He worked for 1 year and "din work" for the rest of 4 years. I am not sure how he survive.
Then the property price went upl. He liquidated all his assets and decided to return home with all the monies he got. Guess what, IRAS interviewed him and he was asked to "return" all the subsidies he had enjoyed over the past years.
As he has already sold his property and there is no renewal of his PRs, he has to pay and leave.
I am not sure if this is true but I think it is a good thing that government stop non-Singaporeans for taking us for a ride.
devilplate
07-11-10, 11:39
I heard of a story which goes like this. One Ah Nei became PR and bought a re-sale HDB. His kids enjoyed all the subsidized school fees as PRs. He worked for 1 year and "din work" for the rest of 4 years. I am not sure how he survive.
Then the property price went upl. He liquidated all his assets and decided to return home with all the monies he got. Guess what, IRAS interviewed him and he was asked to "return" all the subsidies he had enjoyed over the past years.
As he has already sold his property and there is no renewal of his PRs, he has to pay and leave.
I am not sure if this is true but I think it is a good thing that government stop non-Singaporeans for taking us for a ride.
'return of subsidies' include profits from sale of HDB?
rattydrama
07-11-10, 11:42
'return of subsidies' include profits from sale of HDB?
I am not sure cos its a story heard from friends. Maybe someone who has this part of the info could comment.
Singapore government will step in to cool down the market more. Major difference between HK and Sg is that government here has more say and control over the market. Don't take risk and pump in hard earned $$$ into the market right now. Anyway, that's my 2 cents :)
devilplate
07-11-10, 11:56
Singapore government will step in to cool down the market more. Major difference between HK and Sg is that government here has more say and control over the market. Don't take risk and pump in hard earned $$$ into the market right now. Anyway, that's my 2 cents :)
care to elaborate y HK govt has less control? i tot they r much more agressive recently?
Don't think there are provisions in law to take back the subsidies. Treat it as a stories to please the singaporeans (ops, citizens rather, since singaporeans sometimes can also mean to include PRs conveniently when the statistics will look nicer).
I heard of a story which goes like this. One Ah Nei became PR and bought a re-sale HDB. His kids enjoyed all the subsidized school fees as PRs. He worked for 1 year and "din work" for the rest of 4 years. I am not sure how he survive.
Then the property price went upl. He liquidated all his assets and decided to return home with all the monies he got. Guess what, IRAS interviewed him and he was asked to "return" all the subsidies he had enjoyed over the past years.
As he has already sold his property and there is no renewal of his PRs, he has to pay and leave.
I am not sure if this is true but I think it is a good thing that government stop non-Singaporeans for taking us for a ride.
Rather, I would think a better advice is: Better don't take risk by putting your money in FDs and savings accounts because inflation will eat them up with near to 0% interest!
Singapore government will step in to cool down the market more. Major difference between HK and Sg is that government here has more say and control over the market. Don't take risk and pump in hard earned $$$ into the market right now. Anyway, that's my 2 cents :)
Condo Collector
07-11-10, 14:08
Rather, I would think a better advice is: Better don't take risk by putting your money in FDs and savings accounts because inflation will eat them up with near to 0% interest!
What is interest if the value of money degraded.
The threat of inflation doesn't get any more real with another 600bln of QE.
What is interest if the value of money degraded.
real interest = nominal interest - inflation. And yes, it's possible for real interest to be negative.
Wild Falcon
07-11-10, 16:15
The resale and subsale market has quieten down quite a bit. Only developer sales are doing exceptionally well. So developers are laughing all the way to the bank but not necessary the property owners. So the government needs to take a targeted approach to curb SPECULATION and hot money flowing into the primary market while not hurting genuine home owners. If you have friends buying high-end property from developers during the end 2007 boom/peak/frenzy, you will realise that after holding their investment for 3 years and now coming to TOP, they could hardly sell and make a decent profit after taking in transaction costs.
So we have a 2 tier market - the primary market of speculators which is still booming due to hot money, and a lacklustre secondary market. If I were the government, new cooling measure will need to be highly-tailored to cool the primary market (i.e. developer sales) and 2nd-3rd property.
Singapore government will step in to cool down the market more. Major difference between HK and Sg is that government here has more say and control over the market. Don't take risk and pump in hard earned $$$ into the market right now. Anyway, that's my 2 cents :)
Increase interest rates to 3 percents or more
Increase Singapore dollar values against usd
Increase interest rates to 3 percents or more
Increase Singapore dollar values against usd
Geez..
That's not very pro-business... Too drastic fiscal measures will be like saying Happy Halloween to all would-be investors (not juz those hot money punters):2cents:
Increase interest rates to 3 percents or more
Increase Singapore dollar values against usd
you don't even need to raise it to 3%. when it goes to 2%, SGD can reach parity against USD and invite more hot money into the country, and in the process, creating an even bigger bubble.
You sure you want to wish for that?
If it is hot money, I am more concerned about its exit. I guess the Gov should think in that direttion to control as well.
A few ways to stop the hot money to exit suddenly:
1) Introduce holding period of 5 years for private property;
2) Introduce captial gain tax for those sold within 10 years;
3) Introduce rental control - that will lower the cost for business and living;
I am watching very closely for the following chain reactions:
a) US empolyment rate to drop (by mid next year?);
b) Infaltion rate in US to hike, and US starts to raise interest rate (by later next year?);
c) USD carry trade to unwide (maybe 2012?)
d) Asia asset bubble will then be in trouble.
So do we really want a property boom for 2-3 years (30% - 50% jump) and face a big crash (50% down)?
I expect some very tight measure to come immediately after the Electioin (this year or March 2010?)
Again, just coming from risk mangement angle.
Thanks,
Richard
you need to coordinate the controls with HK, otherwise, we'll look really silly.
HK is pegging its currency with US, and pegging its econmomy with China - splitted character.
They don't have HDB policy, so too many people are exposed to hot money from US, and hot money from China.
Their ups and downs for property market are MUCH bigger than Singapore's. (My brother in HK was one of those sitting on negative property equity in 1998. And half of his colleages in the bank were having the same problem. )
I think HK should learn from Singapore. We don't need to co-ordinate with HK. We might seem "silly" while the bubble is growing, but let's see who is smarter after the bubble disappears.
Thanks,
Richard
If it is hot money, I am more concerned about its exit. I guess the Gov should think in that direttion to control as well.
A few ways to stop the hot money to exit suddenly:
1) Introduce holding period of 5 years for private property;
2) Introduce captial gain tax for those sold within 10 years;
3) Introduce rental control - that will lower the cost for business and living;
I am watching very closely for the following chain reactions:
a) US empolyment rate to drop (by mid next year?);
b) Infaltion rate in US to hike, and US starts to raise interest rate (by later next year?);
c) USD carry trade to unwide (maybe 2012?)
d) Asia asset bubble will then be in trouble.
So do we really want a property boom for 2-3 years (30% - 50% jump) and face a big crash (50% down)?
I expect some very tight measure to come immediately after the Electioin (this year or March 2010?)
Again, just coming from risk mangement angle.
Thanks,
Richard
I think that rent control will be terrible idea. We had that and seen what can happen. We'll have free loaders waiting for hand out for squatting on somebody else's property.
The cash to loan ratio can increase to 40% if the prices continues to rise too quickly. In a way it's good because only those who can afford it can buy the property and even if prices (touch wood) fall by 40%, the banks wouldn't get into trouble.
From the risk management point of view, make sure you have enough cash to ride you out the "crisis" when it strikes, but to stay away from the market to play safe is not a solution either. Negative real interest will eat away your saving.
Geylang OKT
07-11-10, 20:26
if u read PM's interview with reuterl, seems that he is expecting a lot of hot money flowing into this part of the world
Govt can cool property market, but how to cool equity markets...?????
No need to cool equity markets just yet lah :cool: :D :D
To absorb the hot money, Singapore will need more gaint IPOs and Rights Issue.
GLP, MIT are good examples.
SGX buying ASX is something new. (The market capital of listed companies on SGX is indeed 1/3 of the market capital of the listed companies in ASX) . We just use those hot money and throw it back to other countries.
Maybe SIA should start to buy the airlines in the rest of Asia, start from Quntas.
SMRT to buy HK MTR.
Creative to buy Apple (just borrow American money to buy American companies. )
Expand STI index components to 100 stocks, rather than 20-30.
In the same way to control propery market price, we need huge supply for equities, so STI will not move over 4000 easily (before it dropps back to 2000).
Thanks,
Richard
By Andy Xie
The world seems full of smoke ahead of a world currency war. The weapon of choice is quantitative easing (QE). If you print a trillion, I'll print a trillion. No change in exchange rate after a trillion? Let's do it again, QE2. If you listen to people like Geithner, the end of the world is quite near. Rich people everywhere, not just the Chinese, are buying gold for peace of mind. When the currency values vanish in a QE melee, the rich at least have the gold to stay rich.
If you listen to American pundits, politicians or government officials, it's all China's fault. China is far from perfect - its currency policy certainly isn't - but it is not the cause for the world's ills. The US is by far the biggest source of uncertainty and the initiator of the QE war. Its elite created the biggest financial bubble since 1929, even removing regulations designed to prevent it, and left the US economy in a shambles after it burst. The same people want to find a quick cure to hold onto their power. Unfortunately, there isn't one.
The US has cut interest rates to zero and run up budget deficits to 10% of GDP. It's shock-and-awe Kenyesian policy. But, after a few quarters of strong growth, the economy is turning down again. Unemployment remains close to 10% (and would be much higher, close to Spain's 20%, if the data included the underemployed and those who have stopped looking for work). The stimulus has failed.
How should one interpret the result? If you were Paul Krugman, you would say it wasn't enough. Of course, if 20% of GDP in budget deficit and another round of QE still doesn't work, he would say again it's not enough. You can never prove Krugman wrong.
The second interpretation is that it takes time for the economy to heal. No economy has recovered quickly after so big a bubble - during such a prolonged and massive bubble, resources become so misallocated that it takes a long time for reallocation, particularly in the labor market.
The third interpretation is that it's China's fault. Yes, China's exports to the US rose sharply during its stimulus-inspired pickup, i.e., the stimulus partly went to China. But, whose fault is that? Apple makes all its iPhones in China because it costs them under USD 20 each, even after recent massive wage increases for Chinese workers. Apple's gross margin is 30 times the processing cost that goes to China. Maybe Apple is an extreme example but the fact is that China's exports to the US are American goods that retail for 3-4 times of the factory-gate prices. American companies want to make their goods in China to satisfy the stimulus inspired demand.
People like Geithner would argue that China should raise its currency to force American companies to move production back to the US. I suppose that that is how the whole RMB appreciation idea may work. But, at what exchange rate would the American companies want to do it? American wages are ten times China's. Should China increase its currency value ten times?
Of course, the American pundits wouldn't put it that way. They would talk about China's trade or current account surplus and the rising Forex reserves, the prima facie evidence of currency manipulation. I do not want to deny that the rising forex reserves are a problem that China must tackle, but it is a separate issue from the US economy. The solution isn't RMB appreciation either.
Everybody knows China has a massive savings rate of around half of GDP. It's a simple equation that the current account surplus is equal to savings minus investment. If current account surplus is a problem, it is either insufficient investment or excessive frugality. China's investment is over 40% of GDP. Even casual observers would find China's investment too much. Are Chinese people too frugal? The household income is probably under 40% of GDP, so how could they be the source of the gigantic savings?
The problem is China's political economy. The government sector raises money through taxes, fees, monopoly franchises, and high property prices. Property sales were 14% of GDP. If the price is normalized, i.e., halved, the household sector would have 7% more of GDP. The household savings rate is roughly one third. This would boost domestic demand by nearly 5%, wiping away the whole current account surplus.
The current account surplus is half of the forex reserve story. The other half is hot money and overseas Chinese are the main source of this. Chinese property and the dollar are their most important foreign assets. As the dollar weakens, they have poured money into China, especially into the property market. Hedge funds and other speculators have also poured money in through buying offshore Chinese assets.
I think China's currency is overvalued. China's money supply has exploded in the past decade, rising from RMB 12 to 70 trillion. Every currency has experienced depreciation after a pronged bout of money growth. China's industry has risen tremendously to justify part of the growth. However, a massive amount is in the overvalued property market. When it normalizes, the money flows out and the currency depreciation pressure happens. We should see this within two years.
What is right isn't important for now. What is politically expedient is. Americans want a quick cure for their country's economic difficulties and want to devalue the dollar to achieve it. If it could force China to increase its currency value, then the Yen, Euro, and all the others would go up in tandem. The US, one fourth of the global economy, could export its way out of its problem.
But the others won't follow this program. China cannot move up its currency value too much or it would trigger hot money outflow, collapsing its property market and the banking system along with it. China is between a rock and a hard place. It is trying to achieve a soft landing of its property market by incremental tightening steps while the currency appreciation expectation keeps the hot money from leaving. This combination may support a multiyear gradual adjustment, giving the banking system time to raise capital.
Japan isn't in a position to appreciate the yen much. Its industries have lost competitiveness to Germany and even the US. Its industries haven't had a global hit product for years. Germany and the US auto industries are gaining over Japan's. It's hard to see how the yen could rise significantly. The Bank of Japan is vulnerable to political pressure. It doesn't have a good track record. If it allows the yen to destroy Toyota, Honda, etc., it's hard to see how it could remain independent. Hence, it will resort to QE to hold down the yen.
The euro is surging by default. The European Central Bank seems to still be talking like Budensbank. But, it can't sustain its position through the next sovereign debt crisis. When the euro is high, some euro-zone economy, though not Germany or France, will get into a crisis mode. It may join the QE crowd too.
The UK doesn't need to be persuaded to embrace QE. It is like a big Hong Kong, all about stir-frying stocks and properties. When the bubble bursts, it doesn't have much else to do - devaluing the currency seems the only way out.
Korea is small but always tries to join the big leagues. It is big in the automobile, electronics, and petrochemical sectors. Its government does not need convincing to watch over the exchange rate. Recently, it has been 'investigating' financial institutions for undesirable practices in the currency market.
It seems that nobody wants to appreciate. Most major economies will do something to keep their currencies down. That is checkmate for the US. Without the devaluation benefit on rising exports, QE just leads to inflation, first through rising oil prices. The American people are suffering from declining housing prices and high unemployment. If the gasoline price doubles, the country may not be stable. How would the elite react? Probably more of the same.
The world is heading towards high inflation and political instability. It's only a matter of time before there is another global crisis. The first sign would be a collapsing treasury market. The Fed is controlling the yield curve through its QE program. But, it is irrational for other investors to play this game. The only reason to stay in is that the Fed won't let the market fall. But, the underlying value is evaporating with rising money supply and the inflationary consequences. When all the investors realize this, they will run for the exits and the Fed won't be able to stop the stampede. If it prints enough money to take over the whole market, the people with freshly minted dollars would surely want to convert their money into other assets. The dollar would collapse too.
The world seems on course for another crisis in 2012. The same people who caused the last crisis are still in charge. They'll get us into another. Iceland is sending its former prime minister to court for causing the banking crisis. A worse fate awaits the people who are causing the next crisis.
http://www.cibmagazine.com.cn/Columnists/Andy_Xie.asp?id=1442&to_hell_through_qe.html
Condo Collector
07-11-10, 22:17
Nobody know if there is a Crisis... But one thing for sure is this coming round is definite not the same as 1997. No asset to flight inflation = Eat shit!
To me it is simple. You buy my bonds and refuse to appreciate your currency. Then I depeciate mine lol. Isn't it the same?
devilplate
07-11-10, 22:25
nid a gd balance amt of asset+cash....tis is the new ERA of unknown:hell-hath-no-fury:
Although prepared for some upside, but it is still a shock for STI to go up 60 points. Some property shares are incrasing as well.
My wife, housewife, is asking me to buy some more shares now - not a very good sign for me!
Thanks,
Richard
devilplate
08-11-10, 21:34
break 3500pts first den tok more lor...now 3300pts nia:D :p
bargain hunter
08-11-10, 21:47
actually end at such a nice round number like 3300 looks like a pretty concerted effort by funds buying. not really a surprise. retail participation is still not strong. agree with devilplate, still early days.
Although prepared for some upside, but it is still a shock for STI to go up 60 points. Some property shares are incrasing as well.
My wife, housewife, is asking me to buy some more shares now - not a very good sign for me!
Thanks,
Richard
devilplate
08-11-10, 21:51
actually end at such a nice round number like 3300 looks like a pretty concerted effort by funds buying. not really a surprise. retail participation is still not strong. agree with devilplate, still early days.
yes, retail not there yet....wait till the mood is back like 2006-07....stocks can only go uppppp....every nite lots of counter breaking resistance....lol:D
bargain hunter
08-11-10, 21:58
yah. a simple statistic:
as sgx is loaded with junks, half of the counters actually returned less than 4% or were even negative year to date as at end sep. :doh:
yes, retail not there yet....wait till the mood is back like 2006-07....stocks can only go uppppp....every nite lots of counter breaking resistance....lol:D
Still have the same question in mind... with Qe2, expect more liquidiy and government ... see Beijing imposing more property curbs, see HK SAR warning of more of more property measures ... how likely is our government giving another round of control?
Still have the same question in mind... with Qe2, expect more liquidiy and government ... see Beijing imposing more property curbs, see HK SAR warning of more of more property measures ... how likely is our government giving another round of control?
i think another round is almost a certainty. i think 60% loan to value on the second property can be expected. if places like Glydeborne, Spottiswoode and Lakefront can still fly off the shelves at 60% loan to value, i will really take my hat off to Singaporeans. 2 possibilities, lots of single property owners, or lots of cash rich folks.
Looking at the recent prices in all the out of the central region areas, I wonder if it is justified.... understand low interest and huge liquidity favour property prices but it's really quite high... or maybe that's a new norm we have to get used to? but is there some fundamental to justify it?
My impression is that government wants a goldilock economy. Don't rise, don't drop, price stablise, esp with election in the horizon better dun have anyone not too unhappy. guess government will be holding fire if prices don't rise significantly? or would be they be more preemptive or agreesive?
Looking at the recent prices in all the out of the central region areas, I wonder if it is justified.... understand low interest and huge liquidity favour property prices but it's really quite high... or maybe that's a new norm we have to get used to? but is there some fundamental to justify it?
My impression is that government wants a goldilock economy. Don't rise, don't drop, price stablise, esp with election in the horizon better dun have anyone not too unhappy. guess government will be holding fire if prices don't rise significantly? or would be they be more preemptive or agreesive?
the recent prices have all largely been for new developments, resale is still slow, when that picks up, you'd probably see another round of tightening.
Wild Falcon
14-11-10, 22:50
Actually, only the developer sales are achieving record-breaking prices in OCR. I believe resale prices have stabilised. The spread between resale and new sales have widened significantly. So if you're looking to purchase a unit for own stay, you can still look to the resale market which has remain fairly affordable.
resale will look just as good when you throw in a 60k reno. 100k and you get the full showroom works.
rattydrama
15-11-10, 00:41
i think another round is almost a certainty. i think 60% loan to value on the second property can be expected. if places like Glydeborne, Spottiswoode and Lakefront can still fly off the shelves at 60% loan to value, i will really take my hat off to Singaporeans. 2 possibilities, lots of single property owners, or lots of cash rich folks.
If that happens, what will be the impact? reduce in buying and selling activities? Rental rate remains strong and continue to move up? or developer priced to sell?
I understand lakefront planned to launch next year but decided to bring forward to Nov 2010.
rattydrama
15-11-10, 00:42
resale will look just as good when you throw in a 60k reno. 100k and you get the full showroom works.
some buyers just want it new at all costs. :)
15% stamp duty in Hk, another rate hike in korea and China raised RRR again... looks like government will have to act one way or another... really 60% LTV? or more stamp duty?
rattydrama
19-11-10, 23:15
15% stamp duty in Hk, another rate hike in korea and China raised RRR again... looks like government will have to act one way or another... really 60% LTV? or more stamp duty?
more like 60% LTV to me - for high end unit?
Not sure if my info correct or not. heard HK stamp duty mainly on mass market i.e. below certain value would have 15% stamp duty but above certain threshold will have less than that.
guess this is to maintain affordibility and protect mass market speculators (these speculators less loaded than high end ones?). Imagine something similar here?
more like 60% LTV to me - for high end unit?
Not sure if my info correct or not. heard HK stamp duty mainly on mass market i.e. below certain value would have 15% stamp duty but above certain threshold will have less than that.
guess this is to maintain affordibility and protect mass market speculators (these speculators less loaded than high end ones?). Imagine something similar here?
Watch the news just now and tot It will affect unit worth above 1.3m SGD and not lower....
Although prepared for some upside, but it is still a shock for STI to go up 60 points. Some property shares are incrasing as well.
My wife, housewife, is asking me to buy some more shares now - not a very good sign for me!
Thanks,
Richard
very true....i remembered late 90's stock blood shed in sg
that was in one of the sat night' commentary mentioned a story in China...when the stock had been running rally/madness, even the farmers are selling their lands to play stock...this is the time the market will start to clash...by the time farmers entered the market, the fund manager start to pull out...
rattydrama
20-11-10, 15:02
What will happen to our property market if SG government charge stamp duty and up the LTV of 60%?
Not sure if my info correct or not. heard HK stamp duty mainly on mass market i.e. below certain value would have 15% stamp duty but above certain threshold will have less than that.
guess this is to maintain affordibility and protect mass market speculators (these speculators less loaded than high end ones?). Imagine something similar here?
kingkong1984
20-11-10, 15:13
Not as feared as floodind the market with cheaper ec condo though may not be near mrt
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