Three months ago, people like you were saying the same thing.Originally Posted by Unregistered
Three months have come and gone. And the fact still remains:
Nobody IS buying.
Three months ago, people like you were saying the same thing.
Three months have come and gone. And the fact still remains:
Nobody IS buying.
Not only that nobody is buying. Fact is the everybody is running away.
I only heard 8 months ago, people said property will down 20%, but up 20% instead.
This kind of market hard to drop as rental yield so good, loan rate so low, inflation so high, what else to invest can be better than property to hedge against inflation.
Time will come for another round of big wave up again.
You will soon discover that property was the worst hedge if you didnt sell yet.
Agree. Depend on what price level you buy.
no chance, not by a long mile for Singapore.
Replacement construction cost for mass condo given current inflation rate for steel and other construction material will continue to go up another 10-15% in the coming year. In other words, construction cost without factoring land cost alone could be pushing $400psf.
My brother who works in the property industry told me that construction cost has risen to around $450 psf.
This is primarily due to the contnuous increase in steel price and labour costs, plus one off cement price hike due to Indonesia's sand ban.
China's voracious appetite for raw materials and minerals caused asset inflation throughout the world and a relentless rise in the Australian dollar due to its huge mineral resources.
At the same time, our construction of the two Integrated Resorts and MRT lines sucked away a lot of construction resources. Nowdays contractors are very busy and even crane operators are earning $8000 per month with overtime.
Can you imagine just the construction cost alone today is equal to the price of entire mass market condo a few years' back. That's not including land costs and developers' margins.
That's why developers are now being squeezed and their share price has fallen a lot.
But if you are holding the end product, i.e. a completed condo unit, then that means you are hedged against further raw material cost inflation.
And if the developers hold back or cancel launches, that means the supply will be even less.
Add to that the 80,000 new citizens and PRs coming in every year, I forsee a potentially explosive situation in the rental market.
The property market has been holding back recently due to the sub-prime issue, like an arrow on bow with a stretched string. Once the sub-prime blows over, the price is going to shoot through the sky.
Recession would bring a slump in prices. No demand would add to the slump. Credit crunch would further bring down the exhorbitant prices by about 40%. Prices would come down for sure.
Re: Kuwait fund pulls out of bulk purchase of high-end homes
then you better sell your HDB now
or condo if you ever have the money to own one!!!
hahahah
If I guess correctly, he probably doesn't even own an HDB.
Most likely some fresh grad with a few years' working experience earning $3 k to $5 k a month, still staying with parents.
But if you are not holding the end product, you should not be buying a hot potato because you will be paying the inflated construction costs and also someone's profit.
So the moral is: If you own something, hold on. If you don't own something, don't buy a hot potato.
How many of the 80,000 newcomers can afford $5,000 rent per month?
You are probably a house agent trying to spread rumour on the construction cost getting high and the influx of migrants in the coming months. I doubt readers in this forum will believe you.
US sub-prime problem is now spiraling like mad. Credit card default will show up very soon. With inflation higher all over the world, do you still believe property market will be better? There will be more borderline private home owner giving up the mortgage to switch to cheaper housing. Your bow and arrow will all be broken by then.
Why not? I believe him with all of my heart. My family, uncle, aunt, neighbour, buddies, all agree with him.
Hot potato? ha ha ha .......
You should better check out the headline in "Business Times" today. It reported that HK had surged by more than 25% for the last 3 months. This is due to the panic buyers who saw by the high inflation coupled with the constant upward rental pressure. Ppl rushed in to buy their own home to hedge against the inflation.
I believe the situation mirror very closely here in Singapore. Ppl should not be distracted too much by the credit crunch in US and missed the big picture. Singapore ppty are going to surge up by at least 30% very soon.
Btw, in addition to the comment, HK ppty prices hv exceeded far from the peak in the 90's.
I can't imagine how much further our ppty prices will go looking at all the transformation and improvement that hv been put in place by our govt compared to what we had in the 90's. It's really ......... unimaginable!!!
You can believe what you want about HK.
The fact is: Nobody is buying at this time. Somehow, people here don't panic about prices.
So properties are hot potatoes. Nobody wants to buy them now.
Whether you want to panic or not is none of my business!
What I know is that Singapore is always following suit what is happening in HK. Being budget surplus, tax rate reduction, GDP growth, inflation rate and last but not least ..... ppty prices.
Of course it's unimaginable ... because it won't happen. Not enough people here earn that kind of money to pay for that kind of price.
A good gauge of affordability for salaried people is the following:
New property purchase = 5 x annual salary.
These are the folks who have to stay in the condos.
So while the selling prices are looking good, the truth is very few can sell. So your sales queue is very long.
Like I said, Singapore doesn't follow HK because we don't panic. Anyway who wants to follow HK?
Don't project yourself on other ppl. Your unaffordability is not other ppl problem ... Wake up, bro!
Who want to follow HK? Already told you what?! Budget, tax, GDP, inflation and ppty price, they all want to follow HK.
Get it?
This is not projection - it's real economics. That's how cities like London and New York have been running. You should wake up from your dream.
Get what? Nothing is following HK, except your dreams.
Don't follow HK to be the wealth management centre of Asia. Overtake them.
Is that true? How come I don't hv such problem? I and most of my colleage agree that we are more than afford to buy a house in Singapore. In fact, we see the current ppty prices are still too cheap compared to our earning power. It's peanut, man.
That is why I wonder how much further our ppty prices should overtake them too?
I heard that HK ppty prices hv exceeded their own peak in the 90's. Can you imagine how much further our ppty prices should increase from here? Unthinkable!
Follow HK? Their budget is so much better than us without the GST. I don't even dare to mention their infrastructure.
Why not? We should be even better moving ahead. We are going to hv two IRs, F1, YOG, environment and many more. We are talking about transformation and competition edge.
You are wrong. I am not a property agent.
I don't think you deal much with property agents, that's why you have this misconception.
A property agent does not care whether the market goes up or comes down. The agent is only interested in closing deals.
When the market goes up, they will go around scaring the buyers "if you don't buy today, tomorrow the price will be even higher". When the market goes down, they will go around scaring the sellers "if you don't sell today, tomorrow the price will be even lower".
Their job is to 见人说人话，见鬼说鬼话. (Translated: see a human speak like a human, see a ghost speak like a ghost).
To the agent, the most important thing is market activity. Doesn't matter whether price up or price down. Hence this period when buyers and sellers are deadlocked and the market is very quiet, I suppose, is a difficult time for agents.
In fact, if the market starts crashing down and sellers panic, with many many deals closed per month, agency commissions will in fact be very high.
This is yet another example of the ignorance of sour grapes.
The first is one who confused "The Bayshore" with "Bayshore Park".
The second is one who does not realise that bulk property purchases are usually discounted.
The third is one who does not know that a bank's job is to lend money and not to speculate in properties.
Now this is a fourth one.
I wonder if they are all the same person. Or are all sour grapes so ignorant?
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