The prices are sure to drop the next 12 months because, of macro-economic conditions. "The global economy is set to decline by 1.3% in 2009, in the first global recession since World War II, the International Monetary Fund (IMF) says."
Read this:
bbc article
Singapore cannot escape macro-economic realities. Real GDP is expected to decline by -10% in 2009. (page 82,
IMF report)
So lets recap.
- 10% Real GDP decrease
- More lay-offs of high income jobs by multinationals
- higher unemployement
- Thousands of units on market currently fighting for rental!
- Thousands of units coming to market in next 2 years
- DPS financed units, yet to TOP.
- As an investment current property prices are too high, because the "real" ROI is only around 2%. Way too low, for any value investor!
- Property (condo) in Singapore since 2004 on bull run, outrunning GDP growth, which means people have overpaid.
- before property recovers, economy recovers. Well wait the next 6 months until you hear the horror stories (banking may be through theirs, but other industries are yet to follow)
- lets wait a year or two for interest rate to reach normal levels 3-4%. Than we will see how people will handle their morgage payments.
So tell me why should property not come down? On average property is still too expensive. There might be a few exceptions to the rule. How ever there is a serious oversupply of condo´s in Singapore. Nothing will change that for the next 2 years.