ipropertyguru
Many like to compare the current situation to the 1997 property high price. But if you were to adjust current price to 1997 $ value (due to inflation), are we really at record high? We all know that $1m in 1997 is so much more valuable than $1m in 2012.
GDP in 1997 vs GDP now.
Average household income in 1997 vs now.
Some food for thoughts and topic for discussion over the weekend!
Hence, more room for growth or are we really that high?
Junior
Originally Posted by leesg123
Many like to compare the current situation to the 1997 property high price. But if you were to adjust current price to 1997 $ value (due to inflation), are we really at record high? We all know that $1m in 1997 is so much more valuable than $1m in 2012.
GDP in 1997 vs GDP now.
Average household income in 1997 vs now.
Some food for thoughts and topic for discussion over the weekend!
Hence, more room for growth or are we really that high?
I think property has not peak.
ipropertyguru
From http://www.sgpolitics.net/?p=3693:
According to the Singapore Department of Statistics website, the average household monthly income rose from $5,322 in 1997/98 to $7,440 in 2007/2008 at an average annual rate of only 3.4%.
Newbie
according to this, inflation adjusted prices have yet break previous high... question is whether previous high will be strong resistance or can be easily break through
http://www.h88.com.sg/images/content...EY8_155031.pdf
Senior
In 1988, I can buy 4 room HDB for SGD 83,000.
In 1997, I can only buy 5 room HDB for SGD 250,000 and 3 room HDB for SGD 65,000.
In 2006, I can buy 2 Bedroom for SGD 535,000.
In 2011, I can buy 3 Bedroom PH for SGD 1350600.
Whereas my monthly salary now reduce by half since 2006 and my wife lost her monthly income and become a housewife.
What is salary adjusted and inflation adjusted?
Last edited by Arcachon; 15-09-12 at 15:53.
Senior
Fortunately you have southbank.
ipropertyguru
Thank you! This sums it all up! Basically, after inflation adjustment, we are stillnot at the previous peak, not only that, our economy gdp is significantly higher than in 97 period.
ipropertyguru
http://www.h88.com.sg/article/Busine...operty+bubble/
That is the link to the article.
Senior
You are right, I miss the waterbank otherwise I would have two Bank.
ipropertyguru
Stats is looking at the overall situation, your story or experience could jolly well be an outlier and does not reflect the general situation.In 1988, I can buy 4 room HDB for SGD 83,000.
In 1997, I can only buy 5 room HDB for SGD 250,000 and 3 room HDB for SGD 65,000.
In 2006, I can buy 2 Bedroom for SGD 535,000.
In 2011, I can buy 3 Bedroom PH for SGD 1350600.
Whereas my monthly salary now reduce by half since 2006 and my wife lost her monthly income and become a housewife.
What is salary adjusted and inflation adjusted?
In 1997, i can only afford to rent a common room while study uni for $350.
In early 2000 got my 5 rm hdb for 380k
In late 2000s sold hdb and upgrade to penthouse in east coast for about $1m
Last year bought two luxury condo at klcc area. This year, looking at d9, 10, 11.
Salary grew from $0 in 1997 to $150k last year. Pretty much match the chart. Nowadays, so many people earning more than 100k per annum. Combine household could be 200-300 k.
Senior
Conclusion - If you are in the government service your salary will only lag and the Top 1 % can only match. Southbank must be God gift can't be due to luck.
ipropertyguru
And i belong to just the middle income nia. Top 1% are buying those that are tens of millions.Conclusion - If you are in the government service your salary will only lag and the Top 1 % can only match. Southbank must be God gift can't be due to luck.
Senior
$300k household income is not just middle class. Its upper class, just not the top 1% which you used to compare! Middle class is about $100k (going at $7xxx/mth).
Newbie
Even with 150k salary, how did you manage to buy/own 3-4 condos and looking to buy more with current 60% LTV and ABSD.
Senior
Waterbank is a smaller bank. Even city square would be better.
mutant powerpuff
Got a friend with 3 kids ranging from teenager to undergraduate, all staying with her.
Husband is self employed.
They stay in 3 BR unit about 1200 sq ft.
Recently they bought a porsche cayenne and 7 series BMW.
I wonder why they can buy 2 luxury cars but they squeeze into such a small unit?
They have been looking for a landed for the past 2 years but none has met up to their expectation.
Newbie
Same theory as those who stay in HDB and drive 5 series maybe? Prices out of reach so pamper onself in another way.
Senior
Too much money in bank. Itchy must spend. That will settle their craving to spend in the meantime.
ipropertyguru
they have waited and waited and prices have climbed higher and higher.
ipropertyguru
1st, sold off hdb. got profit to roll.
2nd, no car. car is an arsehole. my theory is car = 1 property.
3rd, being a saver. didnt anyhow hantam branded goods, or dine at fine dining or restaurant. i noticed many like to dine at rest, each meal easily $80-$100 for a family. imagine do this 2 times a week, 8 times a month. that money can service a condo interest liao.
Iron Man
Same thought. In the office, my colleague call me mountain turtle b'cos I dun really go clubbing, nite life, dine at restaurant, tour yearly...like them. But I m richer than them for sure as their income is left hand in and right hand out to enjoy life even they are now in early 40!
ipropertyguru
Same thought. In the office, my colleague call me mountain turtle b'cos I dun really go clubbing, nite life, dine at restaurant, tour yearly...like them. But I m richer than them for sure as their income is left hand in and right hand out to enjoy life even they are now in early 40
tweet @condoexchange
I think have to strike a balance between scourge and spendthrift. Moderation is key....
We can save as much as we want but are we certain we have the fortune to live long enough to enjoy it?
Newbie
Agree! What for you earn so much but never enjoy. Only money you spent is yours
mutant powerpuff
Yup.... wife carries designer bags.
Each time I see her, she carry a different bag.
Every quarterly (sch hol) they will go on hoilday.
Now they also bought car for the undergrad child.
Yup....looks like they have to stay put in their place for the time being.
Senior
It is rather subjective on what is the worth of an item. Some willing to spend a few hundred thousand on a car which is equivalent to a 3 room hdb flat. Some like status while some does not think it is important.
mutant powerpuff
I guess so......It is rather subjective on what is the worth of an item. Some willing to spend a few hundred thousand on a car which is equivalent to a 3 room hdb flat. Some like status while some does not think it is important.
But some need luxury cars to impress their clients.
Senior
Wanted to buy a Beemer but spouse said car is a mean of transport to bring family from point A to point B. Just drive a small toyota.
Newbie
Woodlands COV SGD130k. What's next?
mutant powerpuff
Your spouse is wise.
If your job does not need you to impress anyone, then it is wiser not to get a flashy car.
The property fever is making people delirious.
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