I suspect the coming CM8 may have capital gains tax.

[sgbuyer]

Since China implemented it, Singapore might follow.

For example, they may tell you from 1st August 2013, there will be a 20% capital gains tax. This will cause many people to rush to sell their units before the deadline.

[phantom_opera]

ppl busy divorce loh

all these are symptoms only root cause is money printing

[indomie]

Since China implemented it, Singapore might follow.

For example, they may tell you from 1st August 2013, there will be a 20% capital gains tax. This will cause many people to rush to sell their units before the deadline.

With long term low interest rate and reasonable rental, people are unlikely to rush to sell their units even with 20% cap gain tax. They would rather pass it on to the next generation.

[sgbuyer]

With long term low interest rate and reasonable rental, people are unlikely to rush to sell their units even with 20% cap gain tax. They would rather pass it on to the next generation.

Inflation or not, the PAP will have to face re-election in 2016. Three years, many things can happen to blow the bubble. Middle East can have another war. Oil may stop flowing.

If this happens in 2015 or 2016 with property at this level, judging from the Ponggol East results, PAP will lose at least 30-40 seats come 2016.

No one doubts that the PAP has the power to launch a CM every month until the end of this year if need to be to make prices fall.

After all, the govt has nothing to lose if prices fall - the government already sold a lot of land over the last couple of years. Falling cost of housing will make Singapore more competitive and help increase the population to the targeted 6.9 million.

[heehee]

Don't you think that if properties prices crash before 2016 GE, because of cooling measures, PAP may become opposition after GE 2016?
After all, >90% citizens own 1 or even more properties & every one know the crash is cause by Their CMs rather than recession?

Inflation or not, the PAP will have to face re-election in 2016. Three years, many things can happen to blow the bubble. Middle East can have another war. Oil may stop flowing.

If this happens in 2015 or 2016 with property at this level, judging from the Ponggol East results, PAP will lose at least 30-40 seats come 2016.

No one doubts that the PAP has the power to launch a CM every month until the end of this year if need to be to make prices fall.

After all, the govt has nothing to lose if prices fall - the government already sold a lot of land over the last couple of years. Falling cost of housing will make Singapore more competitive and help increase the population to the targeted 6.9 million.

[may2012]

Inflation or not, the PAP will have to face re-election in 2016. Three years, many things can happen to blow the bubble. Middle East can have another war. Oil may stop flowing.

If this happens in 2015 or 2016 with property at this level, judging from the Ponggol East results, PAP will lose at least 30-40 seats come 2016.

No one doubts that the PAP has the power to launch a CM every month until the end of this year if need to be to make prices fall.

After all, the govt has nothing to lose if prices fall - the government already sold a lot of land over the last couple of years. Falling cost of housing will make Singapore more competitive and help increase the population to the targeted 6.9 million.

u are suggesting the gov to crash the market? they will lost more votes.

[sgbuyer]

Don't you think that if properties prices crash before 2016 GE, because of cooling measures, PAP may become opposition after GE 2016?
After all, >90% citizens own 1 or even more properties & every one know the crash is cause by Their CMs rather than recession?

Yes, but if it crashes in 2013-2014. But come 2015, PAP withdraws all cooling measures (maybe CM1-CM15 by then, god knows )?

The market will boom again by 2016.

1 stone hit 3 birds.

1. The PAP will be praised for being decisive and able to make hard decisions.
2. Existing holders will be glad that the property market is saved once again.
3. Young Singaporeans will be happy to be able to buy cheap condos during the downturn.

Everyone is happy.

On the other hand, if prices continue to rise, putting pressure on inflation and additional risks to the banks, only the 5% speculators will be happy. To win an election well, you need to win the 95%.

[sgbuyer]

u are suggesting the gov to crash the market? they will lost more votes.

Of course the govt will not openly say they want to crash the market. The cooling measures are meant to "slow down" the market to protect the financial center.

[heehee]

I am hoping their CMs will crash the property market before 2016 though! Heehee!
You never know, it is easy to introduce all these cooling measures to deter buying but after all these CMs & crash then they remove, will be very difficult to get people to buy again! Look at what happened after 1997! It took 9 years & many heating measures (opposite of cooling) before buying interest come back!

Yes, but if it crashes in 2013-2014. But come 2015, PAP withdraws all cooling measures? The market will boom again by 2016.

[onglai]

which is a better business?

take money when u buy a unit? or take money when u sell?
already got absd, i dont tink they will go into capital gain tax.

[sgbuyer]

I am hoping their CMs will crash the property market before 2016 though! Heehee!
You never know, it is easy to introduce all these cooling measures to deter buying but after all these CMs & crash then they remove, will be very difficult to get people to buy again! Look at what happened after 1997! It took 9 years & many heating measures (opposite of cooling) before buying interest come back!

Not really, this time round because of liquidity as Indomie has mentioned, a recovery can happen within 1-2 years.

Dubai property prices crashed 70% in 2010-2011 but recovered the following year and is doing very well now - http://www.bloomberg.com/news/2013-0...or-growth.html

Dubai is a real life example that a property bust is not only not the end of the world, but can lead to a stronger economy.

Since the Singapore model is similar to Dubai, I'm sure the govt has sent people to study what happened there.

Of course, when prices fall, everyone will be complaining, so what the govt will try to avoid is the dropping market in the midst of election. 2013-2014 is the best time for a market correction in time for a 2015-2016 recovery.

Residents say it’s harder to find taxis, book restaurants or golf courses and get school places for their children, with Dubai’s economy posting the fastest growth since 2007. Home rents climbed about 17 percent last year, while air traffic and non-oil trade hit record highs.
The drivers of growth are different this time, with surging demand for services, legal and otherwise, as well as exports. That suggests any new Dubai boom won’t emulate the one that peaked in 2007, when the economy soared 18 percent and then crashed to a near-default after the global crisis of 2008.
“Hotel occupancy is up quite significantly and the airport is crazy,” said Abdul Kadir Hussain, chief executive officer at Mashreq Capital DIFC Ltd., who runs the region’s best-performing fixed-income funds as of December 2012. “If you go to Jebel Ali Free Zone, rents are up and it’s fully occupied. That part of the model is working very well and has recovered very well.”

[Allthepies]

Property no longer for playing. Once buy you are stuck for a number of years. The anti government sentiments make a rising property market even more unlikely. With uncertain policies due to unstable political environment, you can no longer predict what will happen to property prices. Currently play the stock market, no CM yet.

[chiaberry]

So far, the market has not managed to crash yet. I had a look at resale prices of condos in Jan, Feb on URA website and they were generally up. Trilinq and Sennett also managed to sell a decent number of units.

How about if the Govt introduce CGT for non-citizens but not citizens? Another way to get more to convert to SC.

[Rosy]

I am not sure why a government induced drop in private property price will gain more votes for PAP? It may actually lose more votes.

Most noises coming from people looking to buy a bto or resale hdb flats. It will be very wrong to demand an affordable private property from the government.

I agree more measures need to be enforce to soften the hdb resale prices to gain more votes.

The reason why so many CM on private property is to deflate the bubble.

[Rosy]

So far, the market has not managed to crash yet. I had a look at resale prices of condos in Jan, Feb on URA website and they were generally up. Trilinq and Sennett also managed to sell a decent number of units.

How about if the Govt introduce CGT for non-citizens but not citizens? Another way to get more to convert to SC.

If CGT really introduced, it will be progressive as well and making foreigners pay the most.

[sgbuyer]

So far, the market has not managed to crash yet. I had a look at resale prices of condos in Jan, Feb on URA website and they were generally up. Trilinq and Sennett also managed to sell a decent number of units.

How about if the Govt introduce CGT for non-citizens but not citizens? Another way to get more to convert to SC.

The earlier measures were half hearted. There appears to be a conflict between younger and older ministers.

While the older ministers want property prices to keep rising because they own many themselves, the younger ministers want prices to fall so they afford to buy their GCB. Even an entry level GCB at S$25 million is out of reach of an average minister's pay.

[Rosy]

The earlier measures were half hearted. There appears to be a conflict between younger and older ministers.

While the older ministers want property prices to keep rising because they own many themselves, the younger ministers want prices to fall so they afford to buy their GCB. Even an entry level GCB at S$25 million is out of reach of an average minister's pay.

This is totally nonsense and purely your own opinion.

[Allthepies]

WP like any good opposition party, they will use any topic to stir the emotion of the people. Rising private prices is one such issue, 85% of citizen stay in hdb, WP definitely want to target this large upgrader market to their advantages.

[Rosy]

It just shows how desperate one can be.

There are other investment opportunities out there. Property is only one of them.

[Rosy]

Property no longer for playing. Once buy you are stuck for a number of years. The anti government sentiments make a rising property market even more unlikely. With uncertain policies due to unstable political environment, you can no longer predict what will happen to property prices. Currently play the stock market, no CM yet.

I do not see any problem. Imo, property should held for long term. It is good to weed out all speculators.

If you are thinking of selling due to cooling measures, you could be a speculator in disguise or you are overleveraged and getting panicky.

[Allthepies]

I do not see any problem. Imo, property should held for long term. It is good to weed out all speculators.

I have no problem too, just that currently stock gives a higher returns.

[minority]

WP like any good opposition party, they will use any topic to stir the emotion of the people. Rising private prices is one such issue, 85% of citizen stay in hdb, WP definitely want to target this large upgrader market to their advantages.

when market crash they will say mis mgmt. coz many hard ship. etc. its so easy job be critic.

[minority]

I have no problem too, just that currently stock gives a higher returns.

actually crash good can buy more. but those who are screaming for a crash. when it happens they might not be able to buy either. so... all depends who hav a stronger hand.

[phantom_opera]

poperty actually underperforming gold, oil, gasoline, m3

any artificial move to depress fair price of hard assets wont be successful as long as u are an open economy and currency debasement raging nonstop

is propery in CCR really expensive relative to other cities?? think

[chiaberry]

I have no problem too, just that currently stock gives a higher returns.

hehe.....good.....divert more money away from property into stocks

Huat argh! (me vested in SGX shares for a very long time, am not a trader by nature whether in property or stocks).

[Rosy]

I have no problem too, just that currently stock gives a higher returns.

Fyi, i speculate on equities. I constantly rebalance my equity portfolio and at times exit totally.

[leesg123]

Since China implemented it, Singapore might follow.

For example, they may tell you from 1st August 2013, there will be a 20% capital gains tax. This will cause many people to rush to sell their units before the deadline.

Even if capital gain tax is implemented, it will only apply to those purchased from the date it is is implemented. So, no panic selling that you are hoping for. In fact, it will further motivate current owner not to sell and price will go up.

[smellyfish]

why capital tax when you already have SSD? SSD even more blunt than CGT, gain or loss, you also have to pay...

[henryhk]

Any measures also no use.....is a dead-lock now...seller not motivated to sell, buyer not motivated to buy....I like this situation, because I know many homeless speculators are renting, boost up the rental market

[minority]

ABSD is a capital gain tax.. in a limited form