I find the report to be quite accurate such as gains from stock market and foreign funds flowing into Asia which result in an inflated property market (Singapore's case). However, I don't agree that prices will be correcting by as much as 50%, which is not going to be the case even in extreme conditions.
Currently, the excess liquidity condition is still supporting property price so govt measures only make a dent. However, if that liquidity is taken away, coupled with increase interest rates which further restricts the amount of $$$ an individual can borrow, price will plunge. Forget the luxury segment, which won't do well in the mist of a low cash environment; it only benefits in a flush market; it goes beyond the limits in a flush market but retreats beyond the limits during a lull; you can associate it as the extreme ends of the market.
http://forums.condosingapore.com/sho...postcount=2435
With regards to my two-month old post above, it would be surprising if we don't see a 20% plunge in property price. Note that my post was before the govt measures but I already took that into consideration.
Price movement estimates:
-40% to -50% is impossible
-31% to -40% is likely
-21% to -30% is very likely
-11% to -20% is very likely
-0% to -10% is likely
1% to 10% is impossible
@Rysk - In SG context, property market is not supported by rental yield but the opposite is true. What jwong71 and proud_owner said are true. D10/D11 yield may be low but if price hold up, it will increase in the long term (12mths or longer due to the nature of such contracts). The opposite if price falls.