Our GDP per capita is now 50,714 USD. Its already one of the highest in the world. And current property prices are at above 1000 psf for OCR. Even HDB also not that cheap any more. Questions is, is this sustainable in the long term?
Buying a property is a function of your income. The more you earn, the bigger the housing instalment payment you can afford. (Most people don't have the kind of cash to pay for property in full). So, if we are already one of the highest GDP per capita in the world, how much higher can we go? The competition is global nowadays. If Singaporeans refuse to work unless starting pay is at least $3000 or more, companies can start looking overseas for much cheaper workers who will do so for a fraction of our cost.
We used to say compared to westerners, we are cheap. But Sing dollar so super strong while their currency keep on dropping. Its no longer true. Now, their salaries quite comparable to ours already. We are now longer cheap.
Those of you banking on property chiong up another 100% in 10 years. The big question is, does that mean our income will chiong up 100% also? If it doesn't where is all that buying power going to come from? Foreigners? They don't make up the majority of our property buyers, and I doubt if government wants them to come in and distort the market.
Nowadays loan already extend until cannot extend already. 35 years max. Extend till next generation to pay off? Interest rate already rock bottom, cannot fall further, only way is up.
So, where are we going to get all the money to afford 2000 psf for a property? Starting pay next time 6000 S$ per month? If western country keep going backwards and SGD keep on going up. 6000 per month there can hire manager or higher level already.
So, how? Someone tell me. Otherwise, I just cannot see property going up like that over the next 10 years. 40 years ago, we are far far behind other countries, but today, we are on par, if not more expensive than most other places already. So, how to go up another 100%?
We don't live in a bubble.
Unless we say, only the rich foreigners and higher mortals can buy up all our peroperty, while the rest of us lower mortals no house to stay? I don't think Government will let that happen, not if it doesn't want to lose more seats...