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Thread: Keep cool in hot property market

  1. #1
    Join Date
    Oct 2011

    Default Keep cool in hot property market

    Keep cool in hot property market

    Yasmine Yahya
    Assistant Business Editor

    Dec 4, 2017

    Collective sale fever may be going strong, property prices are rising again and sales volumes are picking up, but regulators have given a clear warning that these signs may be more cause for caution than celebration.

    The Monetary Authority of Singapore (MAS) said in its 2017 Financial Stability Review published last Thursday that there is "excessive exuberance" in the property market as well as risks from rising land prices and a possible oversupply of housing stock.

    It also urged developers, lenders and prospective home buyers to act with caution.

    The mood dampener is not without good reason.

    The development of collective sale plots and Government Land Sales sites could add another 20,000 new units in the next one or two years. This will more than double the current supply in the pipeline, assuming the inventory of about 17,000 units with planning approvals remains unsold.

    The MAS noted that there is "considerable uncertainty" whether existing vacancies of over 30,000 homes and the new supply can be fully absorbed by the market, especially when slower population growth is factored in. If demand is insufficient, there could be pressure on prices and rentals in the medium term. The MAS warning comes soon after National Development Minister Lawrence Wong urged developers and prospective home buyers to be prudent.

    Private home prices rose 0.7 per cent in the third quarter after 15 quarters of decline. Transactions in the first 10 months of this year have already exceeded those for the whole of last year. The current collective sale fervour is expected to remove some 3,400 units from the market in the near term, while adding over 11,600 units in the medium term.

    The Government has stopped short of implementing more cooling measures - for now. Developers' current exuberance, fuelled by a recovering property market, is understandable, but it might just be cut short if the market gets too fired up.

  2. #2
    Join Date
    Nov 2008


    That guy (Minister Wong) is green. Don't understand how property market works. I think only MBT knows although I really hated him. Launching 30k units - yes. But launching doesn't mean it is available. Those 30k units take at least 4 years to reach the market. Those are not vacant units. Those are BUC units which is essentially useless because no one can rent or stay. This one is no brainer but this guy is inexperienced so mumbling nonsense.

    And what is wrong with property going up? It has gone down for 15 quarters and it just went up by a tiny 0.7% for ONE quarter. And they have been talking about home ownership, home value and hedges against inflation. The current leaders have really lost it.

  3. #3
    Join Date
    May 2012


    The scare is property moves up too fast like 30% in one year. That attracts speculators and flippers.

    Sub 10% is not excessive exuberance.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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