Originally Posted by
equalizer
This a just a follow-on thought from another thread.
The govt benchmarks our prices based on the PPI at a certain year (4Q 1998 = 100)
They are saying that prices are 'high' now because we are reaching the peak of the curve (May '96) but is it really correct to term it as such?
Around '96, population was about 3mil and per capita GNI was S$36k.
In 2011, our population was 5.2m and per capita GNI is $62K
I do not have the statistics for the amount of land available for development but it would definitely be a lot more in '96 then it was in 2011.
Based on the above, is it right to say that our current property prices are 'high' just because it is nearing the peak in may '96?
The demographics then was a lot different. I am no economist but think that we adjusted prices for the population size and GDP/GNI, we are probably quite far from the peak in a REAL sense.
M3
Dec 1996 148,494.7
Apr 2012 458,500.3
Almost 3X money is circulating now, you salary up 3X from 1996, if yes congrats, if no u lose
Ride at your own risk !!!