Originally Posted by
Squall8888
I don't see it this way. Not everyone is limited by the 70% rule. Coupled with the strong (and growing rental), worst scenario is prices remain the same. If you are seller, will you sell? I assume most sellers are investors. Not many sellers are home owners - sell already move where? Of course, there are some who need to sell urgently like those who buy HDB and need to dispose off their private but then again, how many people will buy HDB taking the new rules into consideration?
And lastly, sell already do what with the money? Buy another property, you will need to come up with 30% DP. Might as well hold and collect the high rental. No difference anyway. 3 years already collect how much rental? And low interest + strong economy, the worst is 5% IMO.
I can see your point. Your point is that people got not enough money to buy private but yet, die die want to buy. In other words, sellers and developers lower their price to allow "unworthy" buyers to buy. Don't think it works this way. Those without enough money will get filtered off. Another market segment will fit them. Very small MM units. Also, based on the current situation, it is not as if there are no buyers. Although it is slower, units are still getting sold. Unless 6 months without a single transaction, I don't think prices will drop 20%. As I mentioned, maybe a few weak owners selling below market price but won't have that much transactions to make an impact. Don't forget, the last few downturns are caused by economic meltdown (absent for now) and rental dropped 50% during 2008/2009. Based on these 2 factors, I seriously doubt of any major price correction.