Is the fap prepared to deal with potential housing crisis it created?

makapaaa · Oct 15, 2014

[h=1]IS THE GOVERNMENT PREPARED TO DEAL WITH POTENTIAL HOUSING CRISIS?[/h]
 <style>.node-article .field-name-link-line-above-tags{float: right;}.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;}</style> Post date:
14 Oct 2014 - 10:31am

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SingaporePropertyCycle
Recent global events may trigger a correction in global stock markets and property markets.

Back home, the increase in housing prices has never been due to an improvement in the economy but artificially low interest rates.
Likewise for the stock market.(US DJIA)

How long will the circus continue is anyone’s guess but a sharp fall is only a matter of time.

During the 1997 Asian financial crisis, the property market experienced a severe correction of about 45%. Property prices tanked and buyers literally disappeared overnight. Banks were forced to allow buyers to hold on to their ‘underwater’ property because there were just too many homes with negative equity.

Although the government had implemented property cooling measures, they were insufficient as it had also opened the floodgates to foreigners.

(This is similar to the current situation where foreigners have been snapping up properties and even 6-figure COVs were not an issue. What’s worse, the current high property prices is also due to the government allowing foreign property developers to bid up land prices. This was not evident more than a decade ago.)

The government controls both the demand and supply of housing but had made the ‘mistake’ of allowing property prices to increase by more than 200% within 7 years. To cover up the colossal mistake, CPF rules were bent backwards to allow the use of Special Account for mortgage payments in 1999.

<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>

The current situation mirrors the situation before the 1997 collapse where cooling measures have also been implemented since 2009 and have not really worked.

The relentless rise of global stock markets is also a cause for concern. The US DJIA has more than doubled from 2009 solely due to historically low rates. Will a collapse in housing prices be precipitated by a stock market crash?

Where CPF and bank rules had been bent backwards to support housing prices in 1997, is the government prepared to deal with the impending crisis?

Phillip Ang
*The author blogs at http://likedatosocanmeh.wordpress.com

LEGEND · Oct 15, 2014

Huh? What? You die your problem! :oIo:

numero uno · Oct 16, 2014

LEGEND said:
Huh? What? You die your problem! :oIo:

hahha. tell it to all those crap people and prop agents trying to talk up the market. literally smelly hot air they are spouting.
the market is a replay of 1997 financial crises and maybe worse than that.
All the years of low interests rates are making the crash more severe.
Even US, China, Europe nearing 'Minsky moment': syas Economist
http://www.moneynews.com/Outbrain/Trump-Aftershock-American-Economy/2012/11/06/id/462985/
US, China, Europe nearing 'Minsky moment': Economist
http://www.cnbc.com/id/102035634

all these from conservative websites like CNBC and you know shit is going to hit the ceiling fan soon. even optimistic Dionald trump painted a very ugly picture of the state of world economy and yet alot of stupid idiots and shitty times publishing crap propaganda about people buying. even ghosts are avoding these toxic properties. now neeed ebola to arrive locally to spark a 50% crash which is not unrealistic. FYI ebola is 90% fatality!!!!

CloneHunter · Oct 16, 2014

PAP cronies are greedy...they make their monies and leave...

Yingge · Oct 16, 2014

Ha..ha..ha... House price up... You fuck... not moving also fuck... now moving down you fuck too... What the fuck you want??? :rolleyes:

I just wish the house price will go up!!!

Fuck the PAP... Please bring in those rich FT to come buy houses... :biggrin:

cocobobo · Oct 16, 2014

makapaaa said:
[h=1]IS THE GOVERNMENT PREPARED TO DEAL WITH POTENTIAL HOUSING CRISIS?[/h]
 <style>.node-article .field-name-link-line-above-tags{float: right;}.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;}</style> Post date:
14 Oct 2014 - 10:31am

<ins id="aswift_0_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_0_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_0" width="336" height="280" id="aswift_0" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>

SingaporePropertyCycle
Recent global events may trigger a correction in global stock markets and property markets.

Back home, the increase in housing prices has never been due to an improvement in the economy but artificially low interest rates.
Likewise for the stock market.(US DJIA)

How long will the circus continue is anyone’s guess but a sharp fall is only a matter of time.

During the 1997 Asian financial crisis, the property market experienced a severe correction of about 45%. Property prices tanked and buyers literally disappeared overnight. Banks were forced to allow buyers to hold on to their ‘underwater’ property because there were just too many homes with negative equity.

Although the government had implemented property cooling measures, they were insufficient as it had also opened the floodgates to foreigners.

(This is similar to the current situation where foreigners have been snapping up properties and even 6-figure COVs were not an issue. What’s worse, the current high property prices is also due to the government allowing foreign property developers to bid up land prices. This was not evident more than a decade ago.)

The government controls both the demand and supply of housing but had made the ‘mistake’ of allowing property prices to increase by more than 200% within 7 years. To cover up the colossal mistake, CPF rules were bent backwards to allow the use of Special Account for mortgage payments in 1999.

<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>

The current situation mirrors the situation before the 1997 collapse where cooling measures have also been implemented since 2009 and have not really worked.

The relentless rise of global stock markets is also a cause for concern. The US DJIA has more than doubled from 2009 solely due to historically low rates. Will a collapse in housing prices be precipitated by a stock market crash?

Where CPF and bank rules had been bent backwards to support housing prices in 1997, is the government prepared to deal with the impending crisis?

Phillip Ang
*The author blogs at http://likedatosocanmeh.wordpress.com

No sharp drop.
1997 no 6.9m.
Now have, precisely for this reason.

Narong Wongwan · Oct 16, 2014

numero uno said:
hahha. tell it to all those crap people and prop agents trying to talk up the market. literally smelly hot air they are spouting.
the market is a replay of 1997 financial crises and maybe worse than that.
All the years of low interests rates are making the crash more severe.
Even US, China, Europe nearing 'Minsky moment': syas Economist
http://www.moneynews.com/Outbrain/Trump-Aftershock-American-Economy/2012/11/06/id/462985/
US, China, Europe nearing 'Minsky moment': Economist
http://www.cnbc.com/id/102035634

all these from conservative websites like CNBC and you know shit is going to hit the ceiling fan soon. even optimistic Dionald trump painted a very ugly picture of the state of world economy and yet alot of stupid idiots and shitty times publishing crap propaganda about people buying. even ghosts are avoding these toxic properties. now neeed ebola to arrive locally to spark a 50% crash which is not unrealistic. FYI ebola is 90% fatality!!!!

If a crash can be so easily predicted by laymen and so obvious then won't call a crash liao.
I never talk up market.....I'm also expecting a correction soon....what t goes up must come down....
Prices have bed going up and up.....its time to come down.....even a 20% dip in sentosa as claimed by one bro so what? You know how much its gone up from those who bought in early? Also high end sentosa prices and property aren't representative of the general market.

Prices will correct but those shouting crash is simply dreaming.
Bottomline again pap will manipulate and do everything and anything to prop up prices as it will ensure their political survival and in their own selfish interests.

numero uno · Oct 16, 2014

Narong Wongwan said:
If a crash can be so easily predicted by laymen and so obvious then won't call a crash liao.
I never talk up market.....I'm also expecting a correction soon....what t goes up must come down....
Prices have bed going up and up.....its time to come down.....even a 20% dip in sentosa as claimed by one bro so what? You know how much its gone up from those who bought in early? Also high end sentosa prices and property aren't representative of the general market.

Prices will correct but those shouting crash is simply dreaming.
Bottomline again pap will manipulate and do everything and anything to prop up prices as it will ensure their political survival and in their own selfish interests.

look at the chart. in 1997 prices crashed 45% and every idiot did not predict it. I presonally know of 3-4 developers who went bankrupt and alot of professionals like agents, investors and even bankers, who became taxidrivers overnight. suicde was very common. just that all these was not reported in the press. in fact alot of people were saying 1 million dollar flat is the norm then and talking up the market like past few years. in 1997 it affcted only asia ie singapore malaysia and thailand. come 2015 it would hit the world!!!! even now compared to 2010, sentosa property prices have drop 25-30%. go to sentosa at night and you see alot of empty units. In fact drive along east coasts developments at night and you see more than 90% of units dark and emppty. did you see the shitty times report it????? do your own caveat searches and you know. The papzis know it can only do so much. in fact it is in their interests for property to crash as it has risen so much that alot of people here want o kick them out. They have already sold out alot of land in 2008-2012.
the big fat cats from China is not coming as all banks in china are tightening loans and monitoring funds after Xi crackdown on corruption which would last till 2017 at least. like I sadi talk is cheap and those who talk c@ck please put ypur money where your mouth is and pay the downpayment for a property now if you are so cocksure. no counrtry in the world can manipulate the price esp singapore when it is an open economy. even china property prices have drop 20% in 1 year. price drop of 50-80 % are very common in spain, ireland, portugal, and even USA. wonderful news today that Dows and Tokyo exchanges all over world have crash 2-3 % in just 1 day. says alot about the world economy. if I were you I would start panicking and sell all at a loss now than suffer a bigger loss later.

po2wq · Oct 16, 2014

makapaaa said:
[h=1]IS THE GOVERNMENT PREPARED TO DEAL WITH POTENTIAL HOUSING CRISIS?[/h] ...

wat potential hausing crisis? ...

ah loon oredi got say b4 he no got 4site ...

wen crisis sexplode in front of him den oni he got i's 2 c ... bu den again, dat burger wil tel u again day he no got 4site 2 c ... n he drags u in2 his dip sh*t n wants u 2 clear it wif him ...

Narong Wongwan · Oct 16, 2014

numero uno said:
look at the chart. in 1997 prices crashed 45% and every idiot did not predict it. I presonally know of 3-4 developers who went bankrupt and alot of professionals like agents, investors and even bankers, who became taxidrivers overnight. suicde was very common. just that all these was not reported in the press. in fact alot of people were saying 1 million dollar flat is the norm then and talking up the market like past few years. in 1997 it affcted only asia ie singapore malaysia and thailand. come 2015 it would hit the world!!!! even now compared to 2010, sentosa property prices have drop 25-30%. go to sentosa at night and you see alot of empty units. In fact drive along east coasts developments at night and you see more than 90% of units dark and emppty. did you see the shitty times report it????? do your own caveat searches and you know. The papzis know it can only do so much. in fact it is in their interests for property to crash as it has risen so much that alot of people here want o kick them out. They have already sold out alot of land in 2008-2012.
the big fat cats from China is not coming as all banks in china are tightening loans and monitoring funds after Xi crackdown on corruption which would last till 2017 at least. like I sadi talk is cheap and those who talk c@ck please put ypur money where your mouth is and pay the downpayment for a property now if you are so cocksure. no counrtry in the world can manipulate the price esp singapore when it is an open economy. even china property prices have drop 20% in 1 year. price drop of 50-80 % are very common in spain, ireland, portugal, and even USA. wonderful news today that Dows and Tokyo exchanges all over world have crash 2-3 % in just 1 day. says alot about the world economy. if I were you I would start panicking and sell all at a loss now than suffer a bigger loss later.

You can carry on dreaming....
Sg is small and easy to manipulate.
Sg is uniquely Sg with pap in control of Everything. And I mean everything from supply and demand to bank loans, repossession, valuations etc etc and anything you can think of.
Best of all They can suka suka change the law to benefit themselves.....
But dun be dishearten.....pray for world war 3.....or Ebola mutant virus until machiam walking dead proportions.
These are but the 2 external factors that vile pap cannot control affecting Sg property prices.

numero uno · Oct 16, 2014

Narong Wongwan said:
You can carry on dreaming....
Sg is small and easy to manipulate.
Sg is uniquely Sg with pap in control of Everything. And I mean everything from supply and demand to bank loans, repossession, valuations etc etc and anything you can think of.
Best of all They can suka suka change the law to benefit themselves.....
But dun be dishearten.....pray for world war 3.....or Ebola mutant virus until machiam walking dead proportions.
These are but the 2 external factors that vile pap cannot control affecting Sg property prices.

no need to dream as your nightmare has begun. reality is here already. cut your bull shit. next you would also be telling others that the STI and interest rates can be manipulated. interest rates here is dependent on SIBOR which is dependent of world bank IBOR. what crap you talking about??? how come interest rates here follow closely US and Europe and rise and fall with them. same as stock markets. you mean the housing market here is independent of bank loan rates and how teh stiock market is doing??? reits and porperty shares are plunging and the reiits have to seettled $29 billions outstanding loan by 2015!!!!! so stop your bullshitting as you just spout crap without any economic or financial sense. you expect temasek to loan them $29 billion dollars in 6 months?? they can't even refund you the CPF on time!!!!!!
you should stop dreaming and get your economics right. I work in the bank and I know far more horror stories than what is written here and the news is bad. very bad. your nightmare is about to begin. LMFAO. if the housing market can be manipulated so easily, then no need to work lah. everybody just buy and hold. no need to demand your CPF money back from garmen. garmen manipulate market like COE and can get few billions and refund CPF in time. you must be one of tose who bought into those property agents crap about market easy to manipulate. they only spin thiese type of crap to psycho idiots to buy.
you sure live in a fantasy shitty times world where only you hear the "good " news till your last drop(suicide drop). hahahaha
your nightmare is streaming in by the minute. latest is
Tokyo stocks down 2.35% after US, Europe sell-offs
http://www.channelnewsasia.com/news/business/tokyo-stocks-down-2-35/1417440.html

laksaboy · Oct 16, 2014

No worries, I'm flush in cash now. :cool:

SgGoneWrong · Oct 16, 2014

laksaboy said:
No worries, I'm flush in cash now.

When many are flushed in cash waiting to catch, you think prices can drop much?

After risen 100% in few yrs, if drop 20-30% (from 200%) considered a crash?

For those who bought yrs ago, they will still be in profit after drop. Only those bought high may have to hang on to a 20-30% drop but if rental can cover loan, they will still be fine. Only those holding multiple units and depending very heavily on rental income to cover loan can get into trouble. Sg govt won't want the local banks to get into trouble.

Ebola is bullshit. It's a scare used to push the market down further while the rich scoop up things with value. For those who keep saying there'll be Ebola in sg one day, why not you fly to visit those who contact the disease and then fly back to sg to spread? Ebola's been around few months, when the stock market is down, suddenly all bad news is manifested to push prices down further.

I think those who say that a very severe crash is coming are the ones who have sold houses and after that get red eye when prices keep going up and not coming down yet. Wait until neck very long and therefore so much furiosity.

Narong Wongwan · Oct 16, 2014

numero uno said:
no need to dream as your nightmare has begun. reality is here already. cut your bull shit. next you would also be telling others that the STI and interest rates can be manipulated. interest rates here is dependent on SIBOR which is dependent of world bank IBOR. what crap you talking about??? how come interest rates here follow closely US and Europe and rise and fall with them. same as stock markets. you mean the housing market here is independent of bank loan rates and how teh stiock market is doing??? reits and porperty shares are plunging and the reiits have to seettled $29 billions outstanding loan by 2015!!!!! so stop your bullshitting as you just spout crap without any economic or financial sense. you expect temasek to loan them $29 billion dollars in 6 months?? they can't even refund you the CPF on time!!!!!!
you should stop dreaming and get your economics right. I work in the bank and I know far more horror stories than what is written here and the news is bad. very bad. your nightmare is about to begin. LMFAO. if the housing market can be manipulated so easily, then no need to work lah. everybody just buy and hold. no need to demand your CPF money back from garmen. garmen manipulate market like COE and can get few billions and refund CPF in time. you must be one of tose who bought into those property agents crap about market easy to manipulate. they only spin thiese type of crap to psycho idiots to buy.
you sure live in a fantasy shitty times world where only you hear the "good " news till your last drop(suicide drop). hahahaha
your nightmare is streaming in by the minute. latest is
Tokyo stocks down 2.35% after US, Europe sell-offs
http://www.channelnewsasia.com/news/business/tokyo-stocks-down-2-35/1417440.html

You can talk and talk.....
Prices dip a bit (also due to pappy intervention) and you saying crash.
At current prices do a calculation how much prices have risen in less than a decade.
STI cannot manipulate? You are so naive....see how many GLCs and Temasek linked listed companies in SGX. Haven count the crony companies yet.
Likewise local banks take instructions from pappies.....remember pan elect stock market crash? What were banks ordered to do?
Who is MAS chairman? Wake up if you still think pap dun control everything

SgGoneWrong · Oct 16, 2014

numero uno said:
look at the chart. in 1997 prices crashed 45% and every idiot did not predict it. I presonally know of 3-4 developers who went bankrupt and alot of professionals like agents, investors and even bankers, who became taxidrivers overnight. suicde was very common. just that all these was not reported in the press. in fact alot of people were saying 1 million dollar flat is the norm then and talking up the market like past few years. in 1997 it affcted only asia ie singapore malaysia and thailand. come 2015 it would hit the world!!!! even now compared to 2010, sentosa property prices have drop 25-30%. go to sentosa at night and you see alot of empty units. In fact drive along east coasts developments at night and you see more than 90% of units dark and emppty. did you see the shitty times report it????? do your own caveat searches and you know. The papzis know it can only do so much. in fact it is in their interests for property to crash as it has risen so much that alot of people here want o kick them out. They have already sold out alot of land in 2008-2012.
the big fat cats from China is not coming as all banks in china are tightening loans and monitoring funds after Xi crackdown on corruption which would last till 2017 at least. like I sadi talk is cheap and those who talk c@ck please put ypur money where your mouth is and pay the downpayment for a property now if you are so cocksure. no counrtry in the world can manipulate the price esp singapore when it is an open economy. even china property prices have drop 20% in 1 year. price drop of 50-80 % are very common in spain, ireland, portugal, and even USA. wonderful news today that Dows and Tokyo exchanges all over world have crash 2-3 % in just 1 day. says alot about the world economy. if I were you I would start panicking and sell all at a loss now than suffer a bigger loss later.

Just a few points:

- empty units belonged to those with lots of money. They rather keep in empty then to rent out cheap. How their money come about could be through money laundering or for tax evasion, hence they are not in a rush to sell. Anyway, not a lot of demand for sentosa units from peasants. Living there is like living in a zoo with admission fees to pay.

- I do not see Bo Xi Lai's crack down that much as anti corruption. I see it as minor efforts to placate the masses and most importantly, consolidation of power to rid his potential threats. Chinese are creative in smuggling money out from the country, you don't have to worry for them. It may take a little bit more time but they are determined to do it and they can.

- in PAP's interest to crash the property market? U must be kidding. Crash the market to reduce their own net worth and upset the peasants (masses) who own just an apartment (public or private) just to please few people like you holding lots of cash waiting to buy? Moderate drop is in plan to placate the masses but you are indeed dreaming that MIW want to crash it.

- no doubt sg economy is open, but you forgot that it's different from the past with the high density now. It's a place for those super rich to hide money in properties, etc. as it's a tax evasion and money laundering hub and has no estate duty.

- when you talk about china, it's a huge country with each province bigger than tiny red dot. How is shanghai and Beijing properties doing?

- thanks for your advice to sell at a loss, I will seriously consider it for my shares.

frenchbriefs · Oct 16, 2014

sinkies are balless.....if they follow the indonesia's example in 1998 and go around massacring chinese and raping and looting them,i can guarantee there will be a mass exodus and property crash.

SgGoneWrong · Oct 16, 2014

frenchbriefs said:
sinkies are balless.....if they follow the indonesia's example in 1998 and go around massacring chinese and raping and looting them,i can guarantee there will be a mass exodus and property crash.

Good point. Many rich indos moved to sg too for the safety it provides and invest in properties in sg.
Sinkies are balless, they are only good in bending down and ass up waiting to be screwed.

zeebjii · Oct 16, 2014

QE 3 has ended. Don't fight the fed. Nothing to artificially prop up the market now. Geroge Soros has placed his big bets .Dont fight the Fed, and don't fight George Soros.

George Soros loads up on bearish market bet
Kate Kelly | @katekellycnbc
Friday, 15 Aug 2014 | 12:33 PM ETCNBC.com
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Soros Fund Management, the large family office that manages assets for billionaire George Soros, raised its protection against a U.S. stock market drop dramatically, sparking concerns that the powerful investment firm is expecting a big fall in equities.

palden · Oct 16, 2014

It's wayang party fault. Always KPKB about housing prices. See cannot trust co driver. Wind blow where they also complain. Not constructive at all.

makapaaa said:
[h=1]IS THE GOVERNMENT PREPARED TO DEAL WITH POTENTIAL HOUSING CRISIS?[/h]
 <style>.node-article .field-name-link-line-above-tags{float: right;}.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;}</style> Post date:
14 Oct 2014 - 10:31am

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SingaporePropertyCycle
Recent global events may trigger a correction in global stock markets and property markets.

Back home, the increase in housing prices has never been due to an improvement in the economy but artificially low interest rates.
Likewise for the stock market.(US DJIA)

How long will the circus continue is anyone’s guess but a sharp fall is only a matter of time.

During the 1997 Asian financial crisis, the property market experienced a severe correction of about 45%. Property prices tanked and buyers literally disappeared overnight. Banks were forced to allow buyers to hold on to their ‘underwater’ property because there were just too many homes with negative equity.

Although the government had implemented property cooling measures, they were insufficient as it had also opened the floodgates to foreigners.

(This is similar to the current situation where foreigners have been snapping up properties and even 6-figure COVs were not an issue. What’s worse, the current high property prices is also due to the government allowing foreign property developers to bid up land prices. This was not evident more than a decade ago.)

The government controls both the demand and supply of housing but had made the ‘mistake’ of allowing property prices to increase by more than 200% within 7 years. To cover up the colossal mistake, CPF rules were bent backwards to allow the use of Special Account for mortgage payments in 1999.

<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>

The current situation mirrors the situation before the 1997 collapse where cooling measures have also been implemented since 2009 and have not really worked.

The relentless rise of global stock markets is also a cause for concern. The US DJIA has more than doubled from 2009 solely due to historically low rates. Will a collapse in housing prices be precipitated by a stock market crash?

Where CPF and bank rules had been bent backwards to support housing prices in 1997, is the government prepared to deal with the impending crisis?

Phillip Ang
*The author blogs at http://likedatosocanmeh.wordpress.com

Seee3 · Oct 16, 2014

Property has no real contribution to value-added. However, it is a great instrument to attract foreign funds and locked them in when the level is right. The important thing is, the locals must not join in the mad rush towards the end of the music. When the music stopped, those who had just bought a property were the suckers.

In 1997, most of the locals were the suckers. The hongkees came, bought and sold before the 97 crash. Many made big money. I presume that the govt did not see the 97 crash happening so suddenly. However, this time it is slightly different. The loan limit prevented the locals from becoming suckers. So the foreigners cannot offload to locals.

Only another economic downturn (due to external factor) that causes massive unemployment can lead to another property crash. Otherwise, the price will correct gradually - soft landing.

I still think that the time is not up yet. The external factor would not be Ebola, Isis, ... It should be something no one felt that can fall - china. The belief that it is too big to fail may be an illusion just like the american's sub-prime loan. Before the crisis, everybody knows it is toxic but nobody thinks that it will fail.

Is the fap prepared to deal with potential housing crisis it created?

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