Property frenzy may be caused by baseless sentiment

[ahlahdin]

Tuesday, May 8, 2007

Just a lot of bull?

Property frenzy may be caused by baseless sentiment

Letter from Steve Ngo

I refer to the letter, "A lesson worth remembering" (May 7) by Mr Lim Boon Hee, and I absolutely agree with his views. In particular, I fully support his belief that "with the kind of salaries that average Singaporeans earn, such prices are not sustainable".

The economy may be doing well, but that is not filtered down to all sectors, and does not translate to every Singaporean being prosperous.

All the bullishness is just sentiment. If we are shopping according to our sentiments, then why are people risking hundreds of thousands — beyond what they can afford — to "invest" in properties? It's somewhat of a dream if anyone thinks that they can depend on rental yield to pay for their mortgage.

It appears that the property market's bull run is artificial but this is not surprising.

A few years ago, I viewed a suburban condominium and the sales person told me that there were only few units left. Recently, it was advertised that they still have quite a number of choice units left.

I don't know exactly how the property business works but I certainly would not be surprised if the developers themselves "buy" the properties — hence creating the impression that there are no more units left — and put the units up for sale again later.

We cannot expect the Government to extend its control over everything, which is why I would like to reiterate Mr Lim's view asking Singaporeans to practice self-restraint and not be ruled by greed.

Each of us has a role to play in preventing the property market from spiralling out of control, to the extent that prices become unaffordable.

[ahlahdin]

Monday, May 7, 2007

A lesson worth remembering

The last property bubble burst got many hurt

Letter from Lim Boon Hee

I refer to remarks made by Wall Street legendary investor Jeremy Grantham, who has warned in his latest quarterly letter to clients that it's "bubble time".

He said, after a six-week trip around the world, that we are in the midst of the first truly global bubble.

The last property bull run, followed by many years of depressed property prices when the bubble burst and badly burned many property owners, should be a lesson for buyers and sellers.

The self-reinforcing delusion of the stock and property markets going higher and higher creates a bubble where investors throw caution to the wind and the fear of missing the boat lures many to ask for and pay ridiculous prices, even for HDB flats.

These truths must prevail: What comes up must come down; the higher the climb, the steeper the fall; and all bubbles burst.

HDB owners are greedily asking for $40,000 to $50,000 above valuation, driving valuations higher every quarter.

I believe that with the kind of salaries that average Singaporean earn, such prices are not sustainable and have already peaked.

The supplies of permanent residents as a result of Singapore's open talent policy and en bloc residents are also not infinite.

Therefore, buyers should reject the unrealistic prices demanded by sellers and the latter would do well to rue the day when prices of houses start to plummet rapidly if they do not contain their avarice.

The stock market is already too heavy for its fundamentals.

[Unregistered]

Monday, May 7, 2007

A lesson worth remembering

The last property bubble burst got many hurt

Letter from Lim Boon Hee

I refer to remarks made by Wall Street legendary investor Jeremy Grantham, who has warned in his latest quarterly letter to clients that it's "bubble time".

He said, after a six-week trip around the world, that we are in the midst of the first truly global bubble.

The last property bull run, followed by many years of depressed property prices when the bubble burst and badly burned many property owners, should be a lesson for buyers and sellers.

The self-reinforcing delusion of the stock and property markets going higher and higher creates a bubble where investors throw caution to the wind and the fear of missing the boat lures many to ask for and pay ridiculous prices, even for HDB flats.

These truths must prevail: What comes up must come down; the higher the climb, the steeper the fall; and all bubbles burst.

HDB owners are greedily asking for $40,000 to $50,000 above valuation, driving valuations higher every quarter.

I believe that with the kind of salaries that average Singaporean earn, such prices are not sustainable and have already peaked.

The supplies of permanent residents as a result of Singapore's open talent policy and en bloc residents are also not infinite.

Therefore, buyers should reject the unrealistic prices demanded by sellers and the latter would do well to rue the day when prices of houses start to plummet rapidly if they do not contain their avarice.

The stock market is already too heavy for its fundamentals.

These people know the real truth, all you idiots are n denial.

[LB Kwek]

"Residential rentals are set to appreciate further on the back of leasing demand created by the influx of foreign talent into Singapore."

- 10 May 2007

[Happy Man]

These people know the real truth, all you idiots are n denial.

I am an idiot?
If that makes you happy, OK lor.

Let me make you more happy by saying this:
"The idiot is accumulating more wealth.
The genius is scolding the idiot."

Can? Happy?
I am. Ha ha ha!

[Unregistered]

Monday, May 7, 2007

A lesson worth remembering

The last property bubble burst got many hurt

Letter from Lim Boon Hee

I refer to remarks made by Wall Street legendary investor Jeremy Grantham, who has warned in his latest quarterly letter to clients that it's "bubble time".

He said, after a six-week trip around the world, that we are in the midst of the first truly global bubble.

The last property bull run, followed by many years of depressed property prices when the bubble burst and badly burned many property owners, should be a lesson for buyers and sellers.

The self-reinforcing delusion of the stock and property markets going higher and higher creates a bubble where investors throw caution to the wind and the fear of missing the boat lures many to ask for and pay ridiculous prices, even for HDB flats.

These truths must prevail: What comes up must come down; the higher the climb, the steeper the fall; and all bubbles burst.

HDB owners are greedily asking for $40,000 to $50,000 above valuation, driving valuations higher every quarter.

I believe that with the kind of salaries that average Singaporean earn, such prices are not sustainable and have already peaked.

The supplies of permanent residents as a result of Singapore's open talent policy and en bloc residents are also not infinite.

Therefore, buyers should reject the unrealistic prices demanded by sellers and the latter would do well to rue the day when prices of houses start to plummet rapidly if they do not contain their avarice.

The stock market is already too heavy for its fundamentals.

Get ready to go bankrupt all you idiots , muah hahahahaha!

[Happy Feet]

Get ready to go bankrupt all you idiots, muah hahahahaha!

OK lah, just assume we go bankrupt lor.
You happy now?
Huat ah!
You happy, we happy, everybody happy!
Huat ah!
$6,000 psf ah!

[MGM Grand]

I think the real idiots are the ones who can't read and appreciate simple advice and opinions. But choose to mock to reinforce confidence. sigh!

[K Lam]

Singapore's property boom has been led by high-end homes, fuelled by overseas buyers.

- 16 May 2007

[Unregistered]

People like DAREDEVIL pretend to be a owner when he is a property agent.
This website really has a lot of play acting.
Really makes me sick in the stomach

[Registered]

People like DAREDEVIL pretend to be a owner when he is a property agent.
This website really has a lot of play acting.
Really makes me sick in the stomach

Hello! Wake up!
DAREDEVIL is not in this thread lah.

[Question]

Singapore's property boom has been led by high-end homes, fuelled by overseas buyers.

- 16 May 2007

Should I buy high-end or middle-level condo?