Originally Posted by
condoinvestor
Interesting article, I wonder which company is behind this, maybe credit suisse,anyway its all nice and easy to say this now when the property market is in a period of consolidation,the 15% drop has not been realised yet, URA data showed prices were up on the whole for the first quarter and as for furher 25% drop by next month, I am in the market and I know prices are no where close to that, because there are buyers out there that would have grabbed it otherwise, lots of buyers around testing the market, so far very few are succesful as sellers are holding esp if the unit is a good one,
Property and stocks are two different investments altogether, within a condo or housing dev. there are so many types of units and it suits people differently, unlike stocks that are uniform,For example in Seaview Condo, you could get a low, mid or high floor unit and can be further divided into those that get morning or afternoon sun and further divided into what views it has, then there is the layout etc etc.
My point is that these statistics work well for stocks and similar investments, not for real estate,
Just because a unit in the development is sold for 600 psf does not mean the whole condo will be priced as such, that unit could be on a low floor and facing a busy road with afternoon sun, so does that mean your unit which is on the high floor with unblocked sea view and no afternoon sun has depreciated, I beg to differ, prices of real estate in Singapore is reflective of the quality and surrounding environment, and that is what we are paying for,
With construction prices heading up new developments will only cost more making existing ones more affordable and room to appreciate further...
My humble two cents...