https://blog.seedly.sg/covid-19-impa...tate-property/
How AssUme tell a story about property in Singapore.
iv. Residential Real Estate: Buying the Mortgage Market, Not Necessarily New Builds
I’ve talked about the mortgage market before when I discussed what the recession is like for the 1990s working adult. (AssUme then and now the same without understanding QE unlimited.)
You can find homes (within the S$1 million to S$1.5 million price range) on the market that were bought 2 to 3 years ago. (AssUme what happens then will happen now.)
Their owners are unable to meet mortgage payments and their properties have now been collateralised by the banks. (AssUme then and now even when MAS guidelines to help property owner.)
However, new builds face an issue.
Singapore private property prices have turned negative, dropping 1.2 per cent in Q1 2020 amidst COVID-19. (AssUme negative means price drop without knowing every project each unit is priced different)
Some have attributed this drop in demand due to a lack of Chinese buyers. (AssUme without knowing how many oversea buyers)
With that said, the dip in prices could also be due to an increase in supply too. (Assume without knowing en bloc reduce to a stop and GLS land sale reduce)
But overall, it is clear that a drop in demand is the main reason for this drop in prices. (AssUme drop in demand without knowing why.)
Residential properties in Singapore aren’t cheap either.
With a 20% downpayment required, and the need to commit the bulk of your income to service mortgage payments, most would rather hoard cash now than an upgrade in a period of uncertainty. (AssUme without knowing ABSD, LTV, TDSR was since 2013)
Much less purchase an investment property for a paltry 3 percent rental yield. (AssUme people still buying for rental return)
Verdict on Residential Real Estate Investments
Not good now.
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