Property price is coming down fast

[phantom_opera]

Prof Gordon notes further obstacles to rising standards of living for ordinary Americans. These include: the reversal of the demographic dividend that came from the baby boomers and movement of women into the labour force; the levelling-off of educational attainment; and obstacles to the living standards of the bottom 99 per cent. These hurdles include globalisation, rising resource costs and high fiscal deficits and private debts. In brief, he expects the rise in the real disposable incomes of those outside the elite to slow to a crawl. Indeed, it appears to have already done so. Similar developments are occurring in other high-income countries.

=> I think the same thing is happening to Singapore already, unless u are elites, your real income growth after inflation is either negative or flat, what US did will increase the gap between the rich/poor even further

[kane]

Been missing the bearish news for the past one week. Good to see this thread come back.

[carbuncle]

bottom 99%... sounds oddly oxymoronic

[kane]

It gives a new meaning to the expression of the rich poor divide.

[Rysk]

Been missing the bearish news for the past one week. Good to see this thread come back.

Missing the bearish news?
No worry.. SELETAR airbase (aka MR B) is back to continue with his cut & paste of bad news.. while waiting & waiting & waiting in his rental flat.. after missed the boat in early 2009..

[kane]

Missing the bearish news?
No worry.. SELETAR airbase (aka MR B) is back to continue with his cut & paste of bad news.. while waiting & waiting & waiting in his rental flat.. after missed the boat in early 2009..

his one a bit subtle, must have the big red font then shiok.

[Rysk]

his one a bit subtle, must have the big red font then shiok.

Last time, YOUNG KOK cum INEXPERIENCE SELETAR airbase posted BIG BIG font... but all CANNOT MAKE IT..

Not only home demand so strong.. moreover resale price keep hitting record.. so now lan lan act blur just do cut & paste only... and not even dare to make anymore predictions lor..

http://www.todayonline.com/Business/...,-say-analysts

Home demand set to slow, say analysts

Prices have been dropping in the resale market.

[kane]

everytime say resale getting lower, guess it's just me, end up bio-ing projects where the resale getting higher. i seek some enlightenment, which resale project prices are going lower.

[dtrax]

everytime say resale getting lower, guess it's just me, end up bio-ing projects where the resale getting higher. i seek some enlightenment, which resale project prices are going lower.

Find CCR selling at loss if got ammo:

[kane]

CCR had to be sold at a loss because the rental demand could not support the sky high prices the developers were asking in the first place. so come TOP, the buyer realised they've hit an air pocket.

[Eh]

Eh I think it's good there are members who bother to cut and paste news and info irregardless whether is good or bad news. Sharing is good

[Amber Woods]

The PMI for Singapore has been down again and that of major economies including China also suffer the same fate. Singapore is technically in recession to be confirmed by the coming GDP numbers.

Two members of my friend family - one being retrenched recently and one been forced to take no-pay leave due to plant operating 4-day week. Both are from the manufacturing.

COE for bog cars plumbed 20k yesterday. The rich are more sensitive to negative news.

All these are tell tale signs that things are not looking good.

[kane]

Cat B drop 8k ah. Where you get the 20k figure?

[Rysk]

Cat B drop 8k ah. Where you get the 20k figure?

He is not familiar with the COE lah.. so just anyhow hamtam lor..

[Lovelle]

3 room hdb launch at kallang maximum price $795k

[phantom_opera]

Fundamental not looking good but technical tells a different story .... something is fishy

I have revised the peak of this cycle for OCR near MRT to 19xxpsf, a 300% gain from 2003-2005 bottom

[Rysk]

3 room hdb launch at kallang maximum price $795k

5-rm $1-m.. HUDC $1.28-m..
All these are tell tale signs that things are looking UP & UP & UP..

[Laguna]

Fundamental not looking good but technical tells a different story .... something is fishy

I have revised the peak of this cycle for OCR near MRT to 19xxpsf, a 300% gain from 2003-2005 bottom

when it reaches there, I buy u hairy crab, shark fin, bird nest, etc
but don't let me wait too long

[Rysk]

Fundamental not looking good but technical tells a different story .... something is fishy

I have revised the peak of this cycle for OCR near MRT to 19xxpsf, a 300% gain from 2003-2005 bottom

Fundamental is looking at the past & now..
Technical is looking ahead..

MR B already said 100x.. don't look at the past & now.. look ahead..

[cnud]

The PMI for Singapore has been down again and that of major economies including China also suffer the same fate. Singapore is technically in recession to be confirmed by the coming GDP numbers.

Two members of my friend family - one being retrenched recently and one been forced to take no-pay leave due to plant operating 4-day week. Both are from the manufacturing.

COE for bog cars plumbed 20k yesterday. The rich are more sensitive to negative news.

All these are tell tale signs that things are not looking good.

So would this recession be prolonged? Otherwise when things get clearer, prices will shoot through the roof again. When others are fearful, Singaporeans get greedy.

[phantom_opera]

when it reaches there, I buy u hairy crab, shark fin, bird nest, etc
but don't let me wait too long

that will depend on when Kenobi-wan will act

[Laguna]

that will depend on when Kenobi-wan will act

anyway, it is on disregard of everything
for simple reason that I respect u

[phantom_opera]

anyway, it is on disregard of everything
for simple reason that I respect u

不敢不敢，小弟应多向各位前辈请教

[Amber Woods]

So would this recession be prolonged? Otherwise when things get clearer, prices will shoot through the roof again. When others are fearful, Singaporeans get greedy.

The global economy is going to be difficult over the next decade given the amount of damages done by US and Europe. The current slow down appears to be the start of the beginning. QE3 is not having the effect and market is looking towards earnings and numbers. Numbers are not looking good with all the PMI showing negative growth especially the major economies.

The govt is putting its best effort to look good to give the economy a boost. If there is no cooling measure forthcoming, we can safely say that the govt is expecting the slow down of the economy to cushion the property market. If more cooling measures coming, the recession should be a short one.

[seletar]

http://www.businesstimes.com.sg/spec...0-psf-20121004

Business Times
Published October 04, 2012

Freehold penthouses at Amber sold for $1,100 psf

Transacted price pales in comparison to the $1,600 psf quoted in May

By Kalpana Rashiwala


ALL six penthouses at the freehold Amber Residences, which was completed early last year, are said to have been sold recently by its developer in separate transactions for $1,100 per square foot (psf).

As recently as May this year, potential buyers were being quoted a price of around $1,600 psf for the penthouses, with the qualification that the developer, Voda Land, was open to negotiations.

When the 21-storey project was previewed in November 2007 during the heyday of the high-end residential market, market indications were that the penthouses will be priced at around $1,900 psf.

Amber Residences was released amid much fanfare, with 74 of the total 114 units snapped up within hours during its private preview at an average price of $1,650 psf - setting a new benchmark for the area. Choice high-floor units (excluding penthouses) were sold for more than $1,800 psf.

Caveats data show that the project's developer achieved a price of $2,029 psf in December 2007 for a four-bedroom apartment of 2,217 sq ft on the 19th floor and $1,951 psf for a same-sized unit on the 18th floor in February 2008.

Amber Residences' six penthouses range from around 4,100 sq ft to 6,700 sq ft with each unit spanning three levels - levels 20 and 21 and a roof terrace with a swimming pool.

A caveat for only one of the six penthouses in Amber Residences sold recently has been lodged so far. This is for the biggest unit of 6,717 sq ft, which has five bedrooms. Options on the other five penthouses have probably not been exercised yet by their respective buyers.

The six penthouses add up to around 30,000 sq ft, which means Voda Land would have fetched around $33 million from selling them.

Market watchers say it made sense for Voda Land to clear the unsold units, given that this is its only residential project. The company's key shareholder is Expand Construction.

Earlier this year, Bukit Sembawang cleared 14 units at its Paterson Suites condo - completed in 2010 - at $2,500 psf. According to a report by Savills in August, 19 units in the development changed hands at an average price of $2,619 psf this year - 10 per cent below last year's $2,915 psf and 15 per cent off the peak price in 2007. Twelve units at Orchard View along Angullia Park, which was completed in Q2 2010, were sold at an average price of $2,604 psf this year, down 21 per cent from 2010's peak price.

[seletar]

http://www.businesstimes.com.sg/spec...ubble-20121004

Business Times
Published October 04, 2012

China property sector: bubbling or bubble?

People buy houses because they have few options to safely stash savings

The nightmare scenario though, is a bubble that bursts. A major drop in prices would ripple through the Chinese economy and potentially the rest of the world.


[BEIJING] Sitting on the floor of his apartment surrounded by the toys of his one-year-old son, Guo Hui tallied the homes that he and his wife had acquired over the years.

There was this place, in a compound a half-hour from downtown Beijing. There was a second apartment to the north, a third place near the site of the 2008 Olympics, and a fourth home, close to the Forbidden City, that was given to him by his parents.

Mr Guo gestured to the wall behind his couch. His neighbour? He owns six apartments in this compound alone. Mr Guo's friends, too, all own at least two homes each.

"There is definitely a bubble," said Mr Guo, whose homes have tripled in value in roughly a decade.

As home prices have skyrocketed, many Chinese households have gone all in on real estate by pouring years of savings into buying as many homes as they can.

But as the country's economy slows to its worst pace in years, China's dependence on real estate for growth - it's a bigger driver than even exports now - has put the government in a tough position.

Allow prices to continue rising and help the economy in the near term, and the real estate bubble gets worse, Cool things off, and the entire economy slacjens too much.

The nightmare scenario though, is a bubble that bursts. A major drop in prices would ripple through the Chinese economy and potentially the rest of the world. Real estate investment constituted 13 per cent of the country's gross domestic product last year.

The sector feeds steel, concrete and dozens of othe industries. A downturn would also be devastating to the wealth of Chinese households.

Urban housing stock made up 41 per cent of Chinese household wealth in 2011, compared with 26 per cent in the United States, according to Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics.

Lower home values could drive Chinese consumers to rein in their spending, making it tougher for US and foreign firms to sell their products here.

The Chinese government has acknowledged that real estate prices have gotten too high, adding some rules in the past few years to limit how many homes people can buy and requiring people to put more money down. This helped bring prices down starting last year, although they edged back up this summer.

These policies, though, have had a limited effect. Chinese home buyers have been accumulating houses for years, mainly because they have few options for safely stashing their savings. The stock market has lost money in recent years. People are wary of putting money into savings accounts, because low interset rates are not even keeping up with inflation.

The obsession with real estate is also embedded in the culture. People are expected to own homes before they get married, and there is a deep faith that real estate is a foolproof investment.

Since private homeownership has existed here only since the 1990s, no one has ever seen first-hand what happens when housing prices start dropping.

"Just like in the US, that's what the speculators thought in Vegas and Florida, that there's only one way to go but up," said Mr Lardy. Expectations could change very dramatically."

Unlike US home buyers, who took advantage of zero-downpayment loans in the mid-2000s, Chinese home buyers usually put down at least 20 per cent or 30 per cent, if they aren't buying their homes outright with cash. This means that it would take a far bigger drop in real estate prices to cause people to default on their loans and therefore destabilise the banking sector.

Still, the amount of household debt as a proportion of disposable income has risen sharply in recent years, from 31.3 per cent in 2008 to 53.6 per cent last year, said Mr Lardy. He added that the current figure is high next to countries with comparable per-capita GDP.

[phantom_opera]

Go and read how much profit the biggest 4 banks in US made last quarter

Then tell me whether QEs got effect or not

Got effect, only for Wall Street

[Amber Woods]

For QE3 to work, there is a need for the transfer of buying activities right down to the ultimate consumers (particularly in the US and Europe) and not just the stock markets.

If people are still not spending despite the low interest rates, it will result in over-capacity if companie continue to produce. Companies are cutting back on production now as evidence in China and other major economies. The stock markets cannot go on to ignore the reality even if it is flushed with liquidity. The bubble will burst even harder if the market continue to ignore fundamentals.

[cnud]

For QE3 to work, there is a need for the transfer of buying activities right down to the ultimate consumers (particularly in the US and Europe) and not just the stock markets.

If people are still not spending despite the low interest rates, it will result in over-capacity if companie continue to produce. Companies are cutting back on production now as evidence in China and other major economies. The stock markets cannot go on to ignore the reality even if it is flushed with liquidity. The bubble will burst even harder if the market continue to ignore fundamentals.

Precisely when things are not bright and cheery that you need to 'get in the market'. When it's clear that recession is over, US has recovered, Asia is super booming again, then you get in??

[cnud]

Both NUS and NTU now the top 100 universities in the world.

The spotlight has started to shine more on this tiny red dot. Don't miss out again.