ok, I finally finish reading what I think should call the 'CM To Kill'
here is my opinion:
1. There will be near 100% chance of a correction (unless of course suddenly US economy very good, Dow chiong through the roof with inflation scare which is nearly impossible short term)
2. Big quantum unit will suffer more than smaller quantum units simply because of lower LTV and higher ABSD in absolute amount. CCR again will bear the brunt ... SC Global Simon Leung must be cursing
3. Imagine a SPRING, MM/EC/HDB are below, CCR is on top, this CM is like dropping a heavy iron bar on the spring to press it down
4. CCR will correct 10% ... that means back below 2007 pricing level, RCR probably 8%, OCR 5% and so on
5. Since price corrects, rental yield will increase ... spread over interest rate will increase and a new equilibrium price is established after 6 months
6. This will be the last CM as it badly affects the property developers, banks
7. This is the first time PAP deviates from its policy of allowing SC to hold HDB + 1 PC .... but this won't be for long as money will then flow to Malaysia or other countries that PAP will not like to see
8. If I read correctly, for 2nd property and beyond, cash payment of 25% is required thus CPF OA cannot be used for that 25% payment ....this is the ULTIMATE KILLER to developers
9. Money will need to find other investment to hedge inflation ... high yield corp bond and REITs will be super hot but super-risky
10. Those holding multiple PCs hoping for fantastic capital appreciation now will be cursing ... rent out and wait liao ... OCR rental still ok ... CCR will be risky if SIBOR moves up