SIX reasons why property will crash big time

[downgrader]

Recession means job cuts and wage cuts and in the uncertainty, no one will commit to buying unless prices are very cheap

Global outlook very uncertain. Major economies sliding downwards with knock on effects far beyond

Banks have tightened lending to between 60% and 70% in most cases and often the bank valuation is way way below the seller's asking price, so buyer either must have ready cash on hand or prices must drop another 30% to 50%

Speculators who bought on DPS panicking as TOP closes in and they may have to default if they can't secure loan

More supply coming onstream as projects completed and developers look to recover cash. Take the cue from the likes of Novelty

IR project is comatose now that Sands in financial trouble. The resort will still open but will be scaled down. The IR hype is just that - hype. Already prices of the Sail has gone from $3,000psf to maybe about $1,200psf now, will drop further

 

[lifeafter41]

Recession means job cuts and wage cuts and in the uncertainty, no one will commit to buying unless prices are very cheap

Global outlook very uncertain. Major economies sliding downwards with knock on effects far beyond

Banks have tightened lending to between 60% and 70% in most cases and often the bank valuation is way way below the seller's asking price, so buyer either must have ready cash on hand or prices must drop another 30% to 50%

Speculators who bought on DPS panicking as TOP closes in and they may have to default if they can't secure loan

More supply coming onstream as projects completed and developers look to recover cash. Take the cue from the likes of Novelty

IR project is comatose now that Sands in financial trouble. The resort will still open but will be scaled down. The IR hype is just that - hype. Already prices of the Sail has gone from $3,000psf to maybe about $1,200psf now, will drop further

The Sail at Marina going for S$1200psf, how is that possible?.

 

[zhihau]

The Sail at Marina going for S$1200psf, how is that possible?.

would it go lower?

 

[downgrader]

are you alice in wonderland

this is recorded in sisv...deal is transacted...$1266 psf

The Sail at Marina going for S$1200psf, how is that possible?.

 

[downgrader]

is the pope catholic?

would it go lower?

 

[zhihau]

is the pope catholic?

oh dear... then those folks who bought the property at a higher price earlier must be squeezing their balls very hard now

 

[lifeafter41]

are you alice in wonderland

this is recorded in sisv...deal is transacted...$1266 psf

No, I am not in wonderland, and no, I do not have sisv data.

Nevertheless, is that a recent transaction as in Oct 08, if it is, will it go even lower in Nov 08.

Understand that the Sail was previous launched at 950psf by the developers.

 

[scroobal]

oh dear... then those folks who bought the property at a higher price earlier must be squeezing their balls very hard now

The barometer to watch is housing foreclosures in the US. As long as its heads north, mortgaged backed securities will continue to be hit as they come up for revisals. More pinnacles, more high notes will surface.

When Simon Cheond and Reda held the briefing this week on addressing "correct" sentiments, the writing was already on the wall.

The loan rollovers for many projects will not happen. For once the Govt hold on HDB is helping the private property market from crashing. Even a known propety wunderkid David Lawrence had to apologise for SC global stock disaster.

 

[downgrader]

it will go below $1,000 within the next 12 months

A lot of new properties TOP and once tenancies expire or are cut short, there will be major fallout

Property market will comatose

Don't just take my word for it, go to developer's on-site office, go to the bank and see the situation for yourself. If you are lucky you may even meet some really forward agent, but i suggest you don't do it cos nothing is free

No, I am not in wonderland, and no, I do not have sisv data.

Nevertheless, is that a recent transaction as in Oct 08, if it is, will it go even lower in Nov 08.

Understand that the Sail was previous launched at 950psf by the developers.

 

[zhihau]

The loan rollovers for many projects will not happen. For once the Govt hold on HDB is helping the private property market from crashing. Even a known propety wunderkid David Lawrence had to apologise for SC global stock disaster.

but how much are those pigeon holes actually worth? the prices of the new HDB pigeon holes seem ridiculously high now :(

 

[scroobal]

but how much are those pigeon holes actually worth? the prices of the new HDB pigeon holes seem ridiculously high now :(

Govt is holding on to HDB prices to provide support to the private sector. Usually except for the high end, the rest of the market tends to slide together.

 

[ah_phah]

landed & pte property price go up, condo also go up. znghu use BTO to slow down supply, to increase demand for HDB. so in the end, everything start to be overprice. at the end also no use, the ppl who own any of the properties can be happy, cos the prices went up. but since the mkt so bad, not many ppl dare to buy, so in the end is just a self made dream.

 

[KopiJoe]

I believe we will see transactions for The Sail at 1000psf by year end...Merry Christmas Friends!!

 

[JHolmesJr]

Any forecast on the rental market, is that going to nosedive too.. its criminal the prices that are being asked now.

Landlords are still doubling rents...nothing to do with economic factors just the human greed factor. History has taught us that when a thing is priced waaaaay above its true value, thats when trouble begins...when will these landlords learn?

 

[silverfox@]

are you alice in wonderland

this is recorded in sisv...deal is transacted...$1266 psf

It has already touched below $1000psf. Your sisv data so not updated ah:o

Anyway, its for a low floor unit with probably a lousy facing. The rest are hovering around $1300+- to $1600psf

 

[lifeafter41]

This crisis is once in a centry..all things are possible, $600 psf also cannot rule out

Frankly, S$600 seems a little far away, though many would hope for it.

Don't forget the high end HDB , those at Boon Keng, Bishan, AMK and Duxton are going for S$500psf or more..

 

[silverfox@]

landed & pte property price go up, condo also go up. znghu use BTO to slow down supply, to increase demand for HDB. so in the end, everything start to be overprice. at the end also no use, the ppl who own any of the properties can be happy, cos the prices went up. but since the mkt so bad, not many ppl dare to buy, so in the end is just a self made dream.

Your market economy analysis is warped.
It's a world economy issue which has affected the stock market greatly which in turn affected the property market. People invest in properties only when they make money from stocks.

The financial market had its first signs when oil was speculated by the US ang mohs. Escalating prices stopped the stock market from going for a bull run. That was the first sign for the financial meltdown. Many of those who bought properties made their money from stocks, that is why people speculate in them.
If those few who bought properties without being first earning it from stock market, they would have lost that bit of edge as the property crunch is the next that follows. Those that made money from shares would have some cushion. That is provided that they did not get burned in this financial meltdown.

If you always think every single property is expensive, you will forever not own any property, because you cannot bring yourself to buy one. :o

 

[silverfox@]

This crisis is once in a centry..all things are possible, $600 psf also cannot rule out

If it hits $600psf, the value of your own property would be shit too.

And by then, if you have daughters, wife at home, please tell them not to go out at night. Because there would be looting, rapes and robberies happening everywhere.

 

[lifeafter41]

If you always think every single property is expensive, you will forever not own any property, because you cannot bring yourself to buy one.

Even on your regular HDB.

 

[zhihau]

If you always think every single property is expensive, you will forever not own any property, because you cannot bring yourself to buy one.

Even on your regular HDB.

bro,

the regular HDB is on 99 year lease.