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Thread: Sharpest rise in private home prices in 7 years

  1. #1
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    Default Sharpest rise in private home prices in 7 years

    Published April 3, 2007

    Sharpest rise in private home prices in 7 years

    URA flash estimates for Q1 show 4.6% gain

    By ARTHUR SIM


    (SINGAPORE) Housing prices have made their steepest climb in seven years - and there is no let-up in sight.

    According to flash estimates for the first three months of this year from the Urban Redevelopment Authority (URA), private home prices rose from 130.2 points in the fourth quarter of 2006 to 136.2 points in the first quarter of this year, an increase of 4.6 per cent.

    This represents the highest quarter-on-quarter increase since the 5.3 per cent seen in the final quarter of 1999.

    In line with URA's decision to release more detailed data on the residential market, it also published estimates for price indices for non-landed private residential property in the Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR).

    Its estimates show that the price index in the CCR increased by 5.6 per cent compared to 4.9 per cent in Q4 2006. The index rose 2.9 per cent for the RCR and 2.6 per cent for the OCR, compared with 2.2 per cent and 1.5 per cent in the previous quarter.

    CBRE Research executive director Li Hiaw Ho attributed the 'unprecedented high levels' of prices largely to sales of more luxury projects in the first quarter of the year.

    Based on CBRE Research's data, sales at new launches will likely exceed 3,500 units in the first quarter. Of these, Mr Li says that between 30-40 per cent could be in the CCR.

    Mr Li also highlights several hot spots outside the luxury market that are doing well including Farrer/Holland Road, Meyer/Amber Road and Buona Vista, where he believes new projects are being priced at 50 per cent more than what they would have fetched a year ago.

    Colliers International director for research and consultancy Tay Huey Ying reckons that the government's announcement of a potential population increase to 6.5 million has 'boosted market confidence in the RCR and OCR segments'. She concludes that: 'Such a sizeable population target would immediately put the brakes on any concerns over the current excess supply in the market.'

    The RCR and OCR segments are still likely to be driven largely by owner-occupiers rather than investors. 'The prospects of the leasing market in the CCR will continue to be brighter than those in the OCR for reasons of proximity to the CBD, shopping and entertainment facilities in Orchard Road and the upcoming integrated resorts,' she said.

    As such, the continued high level of collective sales will be an important factor in balancing supply and demand, and property prices.

    Savills Singapore director for marketing and business development Ku Swee Yong says that, by his calculations, there will be a net negative supply of some 500 homes this year, based on the 3,500 homes he believes will be lost to collective sales. The figure for net negative supply for 2008 is expected to be higher, he said.

    Although foreigners and investors are credited for supporting the luxury market, those 'displaced' by en bloc sales in the CCR could be stimulating other property segments. 'There are people who are panic buying because they have sold their existing homes through en bloc deals,' Mr Ku said, adding: 'If they are willing to downgrade, they should be OK.'

    The Housing and Development Board (HDB) resale price index has also increased by 1.2 per cent since the previous quarter from 103.6 to 104.8 points.

    Noting that it is the highest increase since the last peak in Q1 2005, PropNex CEO Mohamed Ismail said that choice flats are now being transacted at $5,000-$10,000 above valuation, unheard of just a year ago.

    PropNex's data show that demand was for bigger flats - five-room and executive flats. Mr Mohamed says the number of these larger units available is dwindling, and he expects the overall increase in the resale price index to hit 5 per cent for 2007.

    ERA Singapore assistant vice-president Eugene Lim also agrees that the 'momentum' in the HDB resale market is driven by larger flats, especially those in mature estates.

    In 2006, although overall volume of resale flats fell below 30,000 for the first time in a decade, ERA's data shows that executive flat resale volume of 2,229 units was 9.5 per cent higher than 2005. For five-room flats, the 6,421 units sold was 9.3 per cent higher than 2005.

    Mr Lim says that the relaxing of restrictions on subletting HDB flats has not yet had much impact on the public housing market, although he believes the current market is already 'tight'. 'Foreigners living here on a lower budget are finding it difficult to find HDB flats to rent,' he said.





  2. #2
    mr funny is offline Any complaints please PM me
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    Default Private home prices up; rise is biggest in 7 years

    April 3, 2007

    Private home prices up; rise is biggest in 7 years

    High-end condos lead charge, but others also grew at accelerated pace

    By Fiona Chan


    PRIVATE home prices have posted their biggest jump in seven years, bringing them close to their last peak in 2000.

    The good news is that the price growth is now more widespread, with homes outside the prime districts also seeing solid gains.

    Prices of all private homes rose 4.6 per cent between January and March this year, according to the latest official estimates from the Urban Redevelopment Authority. This is up from 3.8 per cent in the previous quarter.

    Prices have now been rising for three straight years, and are just 3 per cent shy of the 2000 peak.

    High-end condominiums in areas like Orchard Road and Sentosa still led the price rise, jumping 5.6 per cent.

    But the values of cheaper homes also grew at an accelerated pace.

    In city-fringe areas, prices of non-landed homes went up 2.9 per cent, while in suburban districts, they rose 2.6 per cent.

    As for public housing, HDB resale prices inched up 1.2 per cent, the most in 2 1/2 years.

    Property consultants expect home prices to keep strengthening throughout the year, but they are divided over how much prices will rise and why.

    Consultants such as Ms Tay Huey Ying, director of research and consultancy at Colliers International, believe the recovery has become more broad-based.

    Price gains in the booming high-end segment are now 'firmly filtering down to the lower tiers, including the mass market', she said.

    Ms Tay added that home buyers in all sectors have also become more confident after the Government indicated that Singapore's population may grow to 6.5 million.

    She expects broad-based growth to boost private home prices by 15 to 18 per cent for the whole year. They rose 10.2 per cent last year.

    However, other experts believe the price recovery remains confined mainly to the high-end sector.

    While homes outside the prime areas are doing better, it is mainly because of a few popular projects rather than a widespread spillover from the luxury segment, said Mr Li Hiaw Ho, executive director of CB Richard Ellis Research.

    Mr Li said only projects with good attributes in some locations like Meyer Road, Holland Road and Buona Vista are seeing 'significant' price rises.

    He is predicting a 10 to 15 per cent rise in prices for the whole year, led by high-end projects.

    In general, private home prices are expected to rise enough this year to surpass the 2000 high.

    The gap may be closed as soon as the middle of the year, said Mr Nicholas Mak, director of research and consultancy at Knight Frank.

    'The whole market still has some way to go,' he noted, adding that prices are still 'roughly 25 per cent below the mother of all property peaks in 1996'.

    But while the outlook is strong for private homes, HDB resale flats are expected to lag.

    Mr Mohamed Ismail, chief executive of property agency PropNex, is predicting a 5 per cent rise in HDB resale prices for the year, while Mr Mak thinks it will be between 4 and 8 per cent.

    The slower growth in HDB resale prices means that HDB dwellers may not be able to sell their homes for enough money to make the jump to private property, said Mr Mak.

    [email protected]

  3. #3
    Madness Guest

    Smile Re: Sharpest rise in private home prices in 7 years

    Hopefully the sharpest fall does not come next year . My unit still needs some time to appriciate

  4. #4
    Unregistered Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Madness
    Hopefully the sharpest fall does not come next year . My unit still needs some time to appriciate

    Property cycle lasts 5 to 10 years.
    It will not be next year.
    You are going to have capital gain. Congrats!

  5. #5
    Unregistered Guest

    Thumbs up Re: Sharpest rise in private home prices in 7 years

    I wouldn't be so hopeful , there was never a deferred payment on properties in SG during the last few booms , plus during those days many people where flushed with cash , now those within the buying age group are not so rich , with no permenent job status and a shaky economy .... I wouldn't look at 5-10 yrs , 2 years i will be very happy already .

  6. #6
    Teacher Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Unregistered
    I wouldn't be so hopeful , there was never a deferred payment on properties in SG during the last few booms , plus during those days many people where flushed with cash , now those within the buying age group are not so rich , with no permenent job status and a shaky economy .... I wouldn't look at 5-10 yrs , 2 years i will be very happy already .

    Aiyoh! Then just make a return within 2 years lah.

  7. #7
    good time to get rich Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Property, economy, stock market will be good all the way to 2010 when IR open. Why? becuz 2010 is election year mah.

  8. #8
    Snapper Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by good time to get rich
    Property, economy, stock market will be good all the way to 2010 when IR open. Why? becuz 2010 is election year mah.
    Thanks!
    On!

  9. #9
    Join Date
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    Default Re: Sharpest rise in private home prices in 7 years

    Hopefully things are as simple as what you say. My neck is also on the line.

  10. #10
    Joyce Teo (Ms) Guest

    Default Huge Jump In Homes Sold For Above S$5M

    Joyce Teo
    The Straits Time
    25 April 2007

    The number of home buyers paying more than S$5 million for a residential property in Singapore is skyrocketing, a new report has found.

    Property consultancy Savills Singapore said last year, 503 sales were done for homes costing more than S$5 million - an "astounding" 229.9% jump over 2005. About 60% of these high-end homes were bought by Singaporeans.

    And already in the first quarter of this year, the 157 deals made have surpassed the 153 total for all of 2005. Foreigners accounted for a growing proportion - 55% - of the buyers. In 2005, Singaporeans accounted for about 85% of these deals.

    The jump in buyers paying big prices corresponds, not surprisely, with a surge in the prices of high-end homes, particularly in the past 2 years.

    In the first quarter of this year, the average price of super luxury homes has shot up to S$2,747 psf, from less than S$2,400 psf in the fourth quarter.

    However, luxury homes in Singapore are still considered a bargain compared with other major gateway cities around the world, said Savills.

    In London, the world's most expensive city in the high-end market, the average price of high-end homes hovers around S$8,900 psf, it said.

    In New York, such homes cost about S$4,500 psf on average. And apartments in Roppongi Hills in Tokyo cost about S$3,400 psf on average.

  11. #11
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    Default Re: Sharpest rise in private home prices in 7 years

    My view is that Singapore is benefitting from the lag effect of prices here vs other parts of the world which have shot thru the roof in recent years. I think there is still more upside but I am just afraid that sentiment in Singapore, being almost the "last" to join the party after booms in the US and Europe, will be hit as property markets decline in these already overpriced markets. We all know the U.S. sub-prime story and eventhough the official thinking is that it is under control, sentiment and investor psychology is very fragile and can u-turn dramatically. Let's not forget that the all-so-mightly US consumer has all these years, kept spending as they felt wealthy thanks to huge property gains. As the US slows and property prices slip - I wonder how the same consumers will feel a few months down the road? The latest news of Spain's crumbling property market, which had almost tripled in the past decade, leaves me to wonder if we are seeing a slow but clear deflation of the various property bubbles that have emerged throughout the years. I just hope Singapore is somehow insulated from a global re-adjustment after a decade long property boom fuelled by cheap credit and liquidity. Otherwise, we may very well be in entering an upswing amid a global downswing - and we all know which will dictate.

  12. #12
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    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Boon
    My view is that Singapore is benefitting from the lag effect of prices here vs other parts of the world which have shot thru the roof in recent years. I think there is still more upside but I am just afraid that sentiment in Singapore, being almost the "last" to join the party after booms in the US and Europe, will be hit as property markets decline in these already overpriced markets. We all know the U.S. sub-prime story and eventhough the official thinking is that it is under control, sentiment and investor psychology is very fragile and can u-turn dramatically. Let's not forget that the all-so-mightly US consumer has all these years, kept spending as they felt wealthy thanks to huge property gains. As the US slows and property prices slip - I wonder how the same consumers will feel a few months down the road? The latest news of Spain's crumbling property market, which had almost tripled in the past decade, leaves me to wonder if we are seeing a slow but clear deflation of the various property bubbles that have emerged throughout the years. I just hope Singapore is somehow insulated from a global re-adjustment after a decade long property boom fuelled by cheap credit and liquidity. Otherwise, we may very well be in entering an upswing amid a global downswing - and we all know which will dictate.
    Yup, quite dangerous times to be a investor in SG, now there is hardly any GOOD BUYS in the market. Everything is based on positive sentiment and media hype. My biggest worry is when thailand has stablised, the investments will go there, because it will be very cheap with high returns compared with SG. Then our investments will dive like nobodys tommorow. Even as so right now, my money tied up in property and shares. I will stop buying and just wait for the right time to sell. Buying now is like juggling with sharp knifes. If you are very skilled you may survive, but for average players, you will either be hurt or die financially in the process.
    Last edited by hayata1972; 27-04-07 at 11:17.

  13. #13
    doomsayer Guest

    Default Re: Sharpest rise in private home prices in 7 years

    As Spain falters, is the world's property boom coming to an end?
    By Jane Padgham
    Published: 26 April 2007
    The Independant
    http://news.independent.co.uk/busine...cle2486662.ece

    Panic selling of Spanish real estate stocks this week sent shudders through property markets worldwide. As investors bet that Spain's 10-year construction boom is finally over, we take a look at global property hotspots to see who will be the next casualty.

    Spain
    For Brits fantasising about sipping sangria while watching the value of their Spanish holiday-home soar, the dream is over. After five years of double-digit growth, house prices rose by a relatively modest 9 per cent in 2006 and are expected to slow dramatically this year.

    A constant stream of bad news has shaken foreign buyer confidence in Spanish property, while relatively high prices and competition from cheaper destinations such as Morocco and Bulgaria has drained demand. Corruption scandals linked to property deals have been rife - in Marbella, several municipal councillors are in jail awaiting trial for allegedly taking kick-backs.

    Mark Stucklin, who runs the Spanish Property Insight consultancy, believes house prices in many parts of Spain will stagnate this year, and stagnate or fall next year. "I think attractive properties in good areas and on the best developments will hold their value in the short-term, and deliver solid returns in the long-term. But when it comes to mediocre property in over-developed areas, all I can say is there is far too much of it around, and I am not optimistic about it," he said.

    UK
    Britain's seemingly unstoppable housing market has so far defied predictions of a sharp slowdown, but there are tentative signs that higher interest rates and stretched affordability are starting to take their toll. Most of the recent reports suggest that prices are still rising, but at a slower pace than at the end of last year. The average price of a home rose by 2.8 per cent in the first three months of this year compared to 4.2 per cent in the previous quarter, according to Halifax, the country's biggest mortgage lender.

    Some areas of the country are still doing well, while others are struggling. The traditional north-south divide is getting wider - over the past year house prices in the South of England have risen more than twice as much as those in the North. Northern Ireland, meanwhile, is enjoying exponential growth.

    The consensus view is that the market will slow, but not crash. There are still a few doom-mongers out there, but most experts are sanguine.

    London
    The capital's housing market continues to power ahead, boosted by foreign billionaires and City bankers eager to spend their bumper bonus cheques on bricks and mortar. Million pound-plus properties in London's swankiest areas, such as Belgravia and Mayfair, have surged by a staggering 32 per cent in the past year, according to estate agent Knight Frank.

    The mainstream market is also booming. Asking prices rocketted by 3.7 per cent during March alone, the equivalent of 13,000 on a typical property, according to property website Rightmove. That took the average to 379,846, up 25 per cent on a year earlier. Homeowners in London are benefiting from the buoyant financial and business services sectors, but also a chronic shortage of properties on the market. Most homes in the capital are snapped up just 65 days after the For Sale sign is hoisted. Tales of gazumping and sealed bids, not seen since the late-Eighties boom, are commonplace.

    US
    America's housing slowdown has been dramatic. Just 12 months ago, house price inflation was running at more than 13 per cent. By the end of 2006, it had decelerated to 4 per cent. Today, prices are barely rising.

    The writing was on the wall once first-time buyers, ultimately the lifeblood of the market, could no longer afford to buy using traditional financing options. Instead, they were forced to take out interest-only mortgages and expensive loans that did not require a deposit. Prices continued to rise for a while thanks to property speculators and the easing of lending criteria to help first-time buyers stretch their finances just that little bit further.

    But a surge in arrears and defaults and meltdown in the sub-prime mortgage market - which specialises in lending to borrowers with patchy credit records - was the final straw. Paul Ashworth, senior US economist at Capital Economics warns that excess supply caused by a flood of repossessed properties could translate into double-digit annual declines in house prices.

    Mumbai
    US tycoon Samuel Zell told a gathering of Indian property executives this week it was "mental masturbation" to believe there were endless riches for investors in India's runaway housing market. Coming from a man nicknamed "the grave dancer", the warning was perhaps not that unexpected. For the developers and fund managers who were listening, however, the only question remaining was how far property prices will fall.

    As the hub of India's technology boom, Mumbai has become the country's property hotspot. Prime residential prices have doubled in just two years. More Indians are buying homes and real estate is also attracting speculative investors, many of them from abroad. But in a city where half the population still lives in a slum, there is a growing feeling that the market is on the brink of a collapse.

    The last time a property bubble burst in India - between 1995 and 2001 - prices slumped by up to 70 per cent. This time, a fall of 30 to 40 per cent is on the cards.

    Dubai
    The sun always shines, salaries are tax-free and the shopping and leisure facilities rival any other major global city - welcome to Dubai, the largest of the United Arab Emirates, which has begun weaning itself off oil and proving its credentials as a property paradise.

    An estimated 15 to 25 per cent of the world's cranes are in Dubai, symbolic of a market in such a hurry to build (75,000 new units by 2008; 260,000 units by 2015) that experts warn oversupply could become a real issue.

    For now, the appeal is obvious: developments are being built at a fraction of the price a similar property would fetch in Europe, and investors who purchased off-plan a couple of years ago have already seen their capital grow. In the longer-term, however, it is hard to know if this is sustainable popularity or merely a boom-time feeding frenzy.

    Latvia
    The surprise star-performer in estate agent Knight Frank's latest global house price index is the tiny Baltic nation of Latvia. House prices in the country's capital, Riga, have leapt by a staggering 66 per cent in the past year thanks to a red-hot economy fuelled by booming consumption and easy credit.

    Liam Bailey, Knight Frank's head of residential research, says that since joining the European Union in 2004, Latvia's property market has been a magnet for investors from Germany, Russia and Scandinavia. Soviet-era buildings have been comprehensively spruced up and new properties built to much higher specifications, also boosting prices.

    But there is a growing feeling that the market is an accident waiting to happen. In an attempt to prevent the bubble bursting, Latvia's government last month pushed through plans to cool the economy. Measures include taxing profits from the sale of real estate in the first three years of ownership, an extension from the current one-year rule.

    Australia
    For anxious homeowners wondering whether Britain's housing boom will inevitably turn to bust, Australia's experience of the past three years provides some comfort. If anything, Australia's boom was even bigger than ours, with prices doubling between 1996 and 2003. A flurry of interest rate rises took the wind of the market's sails, but the slowdown was remarkably modest by historical standards. The much-vaunted soft landing was achieved.

    Since then, the market has shown clear signs of strengthening again, clocking up 8.3 per cent growth last year against 2.3 per cent in 2005. Indeed, the recovery has been such that affordability is now considered the worst on record. Low unemployment, a strong equities market and the commodities boom all point to another year of solid growth.

  14. #14
    Happy Feet Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by doomsayer
    As Spain falters, is the world's property boom coming to an end?
    By Jane Padgham
    Published: 26 April 2007
    The Independant
    http://news.independent.co.uk/busine...cle2486662.ece

    ..........

    Australia
    For anxious homeowners wondering whether Britain's housing boom will inevitably turn to bust, Australia's experience of the past three years provides some comfort. If anything, Australia's boom was even bigger than ours, with prices doubling between 1996 and 2003. A flurry of interest rate rises took the wind of the market's sails, but the slowdown was remarkably modest by historical standards. The much-vaunted soft landing was achieved.

    Since then, the market has shown clear signs of strengthening again, clocking up 8.3% growth last year against 2.3% in 2005. Indeed, the recovery has been such that affordability is now considered the worst on record. Low unemployment, a strong equities market and the commodities boom all point to another year of solid growth.

    Thanks for the posting. This one is good.

    Now at least I know that if and when other markets (e.g. US, UK, Spain, etc.) collapse, the Asian markets (e.g. Australia, Singapore, etc.) will continue to boom.

    Let's see how much returns we can accumulate during the next few years of boom. Hopefully, it is sufficient for early retirement.

  15. #15
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    Default Re: Sharpest rise in private home prices in 7 years

    A good overview article. But I think it's hard to say whether Singapore or Australia will be immune to any global property market correction. Viewed in isolation, yes one can probably conclude so. But it will be hard to imagine sentiment not being hit once people start reading of tumbling property markets overseas. We have to admit, a lot of us expect Singapore properties to do very well also because of what we have seen happening in other property markets over the years. If NY and London can increase 2-3 folds over the years, why not us esp since prices here have anything but run-up relative to those overseas, esp since fundamentals here look really good over the next few years...

    If the Singapore property buyer can say he/she will not be rattled by a global correction and has conviction that Singapore's fundamentals/supply-demand dynamics point to a solid property market - yes, then a global correction will not matter very much. But if people here start bailing out as the property correction in other countries starts to make headlines, then it might turn messy....those who speculate via deferred financing, hoping to make a big kill in 2-3 years time, are probably at risk if they are not prepared to hold. But at this point, I think I am in the minority as judging from what I read in this forum, many see higher prices in the next few years. I don't mind being wrong on this count - we are all property owners after all but its just a view to share.

  16. #16
    Goldman Sachs Guest

    Default Re: Sharpest rise in private home prices in 7 years

    "The prospects for organic and inorganic growth in Singapore property market are good. Such a favorable environment should last at least until the end of 2008."

    - a Goldman Sachs report

  17. #17
    Goman Sex Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Goldman Sachs
    "The prospects for organic and inorganic growth in Singapore property market are good. Such a favorable environment should last at least until the end of 2008."

    - a Goldman Sachs report
    Hi dude, can provide a link to the report or at least post the report here? Thanks in advance

  18. #18
    Bull Run Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Cheong ah!
    COE at 2-year high!
    Up, up, all the way!

  19. #19
    Forum Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Bull Run
    Cheong ah!
    COE at 2-year high!
    Up, up, all the way!

    Hello!
    Cheong is correct but this forum is for private condos - not private cars.
    Up up all the way!

  20. #20
    LB Kwek Guest

    Default Re: Sharpest rise in private home prices in 7 years

    "The issue in today's hot property market is that the selling price of your current project becomes the break-even cost for your next project because of the ever-increasing cost of buying replacement land. You might as well not sell your residential development."

    - 10 May 2007

  21. #21
    Clemen Guest

    Talking Re: Sharpest rise in private home prices in 7 years

    2009 will be the sharpest fall in private homes in 10 years. Your properties will go below SARS level and you will all shit in your pants.

  22. #22
    Registered Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Clemen
    2009 will be the sharpest fall in private homes in 10 years. Your properties will go below SARS level and you will all shit in your pants.

    What if it do not fall in 2009?
    You go eat shit?

  23. #23
    clemen Guest

    Default Re: Sharpest rise in private home prices in 7 years

    If don't fall then, come and burn down my company lah. Freely is my game, free yourself from all your money by investing in me.

  24. #24
    Registered Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by clemen
    If don't fall then, come and burn down my company lah. Freely is my game, free yourself from all your money by investing in me.

    Burn your house? Not worth our effort.
    Rubbish!
    If you say 2012 instead of 2009, people will believe you.

  25. #25
    Unregistered Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Registered
    What if it do not fall in 2009?
    You go eat shit?
    If soemwhere in asia is going to experiencing a sharp spike in human cases of bird flu in the coming months, shits sure will hit the fan and it is definitely going to be worst than SARS. Whether this will happen in 2009, nobody knows. But, the recent sharp spike in property prices are really great time to consider taking some profits. I certainly seriously consider selling rather than buying at this point in time.

  26. #26
    Curious Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Unregistered
    If soemwhere in asia is going to experiencing a sharp spike in human cases of bird flu in the coming months, shits sure will hit the fan and it is definitely going to be worst than SARS. Whether this will happen in 2009, nobody knows. But, the recent sharp spike in property prices are really great time to consider taking some profits. I certainly seriously consider selling rather than buying at this point in time.

    Who says there will be sharp spike in human cases of bird flu? The doctors? The experts? Or you?

  27. #27
    Unregistered Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Curious
    Who says there will be sharp spike in human cases of bird flu? The doctors? The experts? Or you?
    Can you read?
    He said, If......
    If and when it happens, it will be too late to run for exit,
    unlike stocks, you can cut loss if you don't mind to loss a chunk overnite. For property investments, there isn't even an exit you can run to...
    It takes time to liquidate property even in boom time.....

  28. #28
    MGM Grand Guest

    Default Re: Sharpest rise in private home prices in 7 years

    There seems to be 2 schools of thoughts here! The hard-core optimist and the doomsayers...... I can't help but sense the doomsayers are the older lot who have seen booms in the past and optimists.... maybe the younger lot ... no offence.


    me....I'm neutral....I was burnt in 1995 boom market.

    I remember then....no different from now. Buying frenzy....I also remember when Goh Chok Tong implemented speculation controls to cool the market ... It was of course the currency crisis that ended it all.... Double whammy. The price I paid was holding on to 3 luxury apts for 12 years... I don't even dare to imagine the equivalent cost at today's prices.....


    I agree with a comment made....property is not liquid!!! You guys must remember that. No one can tell how long the up trend lasts. The down can be a 1 way ticket to bankruptcy if you're not liquid enough to hold.

    I only advice that you play with what u can comfortably afford. Interest rates are not the nice 3.25% the bank advertises, installments can double with little notice.

    Interesting note: Banks only up interest rates. They never ever lower it for you voluntarily. You'll have to pay them fees and legal cost each time you want them to lower it......


    If you have done your numbers....by all means take the plunge. If not...please exercise caution.


    I was burnt and some of you can say I'm dumb. Maybe just my luck. I don't wish the same for anyone out there. I recently sold the last of my luxury apt in Tg Rhu at record high price..... My friends adviced me to hang-on for 2 more years... I told him I'm servicing a loan of close to 10k a month. In 2 years time I would have paid an adiitional 240k. Would the increase be more than 240k? Maybe? who knows. I just won't gamble another 12 years of my hard earned money..... 10k a month is a nice Europe holiday every month.... I'm free of all loans now and looking forward to my fully paid condo.

    Back in 1995, we had to pay 20% down, maybe that's why the up-trend was more muted. I paid close to 300k down for my $1.25million property incl stamp duty. Now, with deferred payment 5% down seems a paltry amount. And many are taking risks far greater. Even scarier is every property in 9, 10,11,21,15.....are all above a million, way above. wow!


    Just a little advice from me... for the seasoned players, I wish u good luck.

    For the young, executive, pmeb, employee type.... doin your numbers and cutting it fine... think carefully.

  29. #29
    Unregistered Guest

    Default Re: Sharpest rise in private home prices in 7 years

    mgm grand,
    thanks for sharing your views and experiences and also for the sound advice. i was not involved in the last boom/bust, but read about the many sad cases where pple lost their roofs over their heads, etc. in the papers. so, yes, very timely advice.

    i am vested currently, but both are completed projects, so no deferred payment for me. have done my sums and looked at ways to limit the risks as much as possible.

    enjoy your new condo!

  30. #30
    If Guest

    Default Re: Sharpest rise in private home prices in 7 years

    Quote Originally Posted by Unregistered
    Can you read?
    He said, If......
    If and when it happens, it will be too late to run for exit,
    unlike stocks, you can cut loss if you don't mind to loss a chunk overnite. For property investments, there isn't even an exit you can run to...
    It takes time to liquidate property even in boom time.....

    If. OK, got it.

    If it go up, I will find it harder to buy.
    Wow! Better buy now.

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