.... most property stocks are down 4-6%
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First impact of new property cooling measure
- Thread starter giggity_shit
- Start date
Cut your losses and take your profits.
Your happiness will be short lived as these mesasures will have little or no effect. Dont forget that Capitaland and HPL needs to sell thousands of condos they are building at Farrer Road for which they paid a record sum for the enbloc purchase. Plus all the kaki nang like Far East, CDL etc. Also don't forget how many PAP mps and relatives and friends are directors in property companies. All wayang my fren. These bastrads will want to keep making hay while the sun shi:oIo:nes...
Meaning? They will reverse the rules in a couple of years?
Just spoke to my agent. He says only those with no holding power will suffer and he says the only thing that will drastically affect the market is interest rates increases. Which in his opinion is no likely.
The most effective and simple tool is to raise interest rates-as seen recently in China, India, S Korea, Australia, N Zealand ect2.
Until interest rates are raised, I don't think they are making a serious effort to control property prices.
Another way is to lower HDB/EC prices, which is always the base for property prices.Start by allowing only citizens to buy HDB/HDB resale and EC.
Once HDB/EC prices goes down, reslale prices will follow and then low/mid end condos.
Most of us are not into high end condos/landed properties,so they can go anyway they want.
More like wayang for election as MBT himself admitted-its all about elections.
Until interest rates are raised, I don't think they are making a serious effort to control property prices.
Another way is to lower HDB/EC prices, which is always the base for property prices.Start by allowing only citizens to buy HDB/HDB resale and EC.
Once HDB/EC prices goes down, reslale prices will follow and then low/mid end condos.
Most of us are not into high end condos/landed properties,so they can go anyway they want.
More like wayang for election as MBT himself admitted-its all about elections.
Not really holding power. It's those who are taking a bank loan where they already have an existing bank loan that will suffer.
2million property borrow 80% prev is 1.6mill loan
reduce to 70% is 1.4mill loan.
now reduce to 60% is 1.2mill loan.
So buyers will have to fork out extra 800K cash instead of 400K cash previously.
If the buyer has 800K cash lying around, he would have reduced his mortgage for his 1st property by redeeming it and reduce his interest being paid.
So all in all, those who are paying via cash will still continue to buy as the market has been "eradicated" of people who speculate in it.
With all these measures, banks will have to reduce interests to entice people to borrow from them :o
No one can reduce prices like that. It will create a very unhappy scenario for existing owners who are looking to see their property appreciate.
The only way they can do is to implement rules and regulations to "affect the property prices" Like this will mean market forces at work.
Property price will drop ? Maybe in immediately short term.
What happens in Aug when Seller Stamp Duty (SSD) was imposed ?
It merely :
1. reduce the private property stocks in market for the next 4 years (as most buyers will not sell within the next 4 years);
2. Those that sell within the SSD period, they just add the cost into the price, hence making the price shot up further.
3. Those who bought years ago will also sell at the new high price.
This latest meaures seemed a knee-jerk panic measure by the 1 person who did not saw it coming.
Comments and alternative views welcome.
What happens in Aug when Seller Stamp Duty (SSD) was imposed ?
It merely :
1. reduce the private property stocks in market for the next 4 years (as most buyers will not sell within the next 4 years);
2. Those that sell within the SSD period, they just add the cost into the price, hence making the price shot up further.
3. Those who bought years ago will also sell at the new high price.
This latest meaures seemed a knee-jerk panic measure by the 1 person who did not saw it coming.
Comments and alternative views welcome.
Enbloc rules were too lax then making many cash rich suddenly, spiking the buying of properties after they get paid millions for selling off their old properties.
The in effectiveness of these measures have nothing to do with wheter they will rescind these later. Starting point, these measure are too little too late. All half cock measures. If they really want to cool the market they need to take a lot more action. i wil not go into the details as a lot of brothers in this and other forums have already mentioned all the other possible measures that the govt can take if they really mean it in wanting to cool the overheated property sector esp the HDB sector. However it will hit the pockets of these fat cat PAP Mps and minsters and all their cronies so you have all these wate time half hearted methods. I am just disgusted beyond words. It's worse than corruption!
The only meaningful measure is the 16%, 12% and 8% Seller's Stamp Duty.
This does drive away speculators' in for quick gains.
Obviously once the cooling effect is achieved in a year or two, they will remove the measures gradually, like in 1996.
Higher interest rates, lower LTV, etc. impacts the typical HDB upgraders, but not the droves of foreign investors who came to SG with bags of cash.
The slight drop of property stocks also indicate even the market is unsure what the impact will be.
Nobody knows until 6 months later.
This does drive away speculators' in for quick gains.
Obviously once the cooling effect is achieved in a year or two, they will remove the measures gradually, like in 1996.
Higher interest rates, lower LTV, etc. impacts the typical HDB upgraders, but not the droves of foreign investors who came to SG with bags of cash.
The slight drop of property stocks also indicate even the market is unsure what the impact will be.
Nobody knows until 6 months later.
all these measures will only have a short term effect. there are plenty of people with plenty of spare cash in this age where multi millionaires are a dim a dozen. once prices come down to an acceptable level for them, or rather an atttractive level, the buying spree will start again. singapore is really just too attractive.
the simplest solution to cooling the market is glaringly obvious but i shan't comment on that as its against my interest. voting the ruling party out also works but that's not possible.
the simplest solution to cooling the market is glaringly obvious but i shan't comment on that as its against my interest. voting the ruling party out also works but that's not possible.
Obviously majority of the 'many PAP mps and relatives and friends' have unloaded most of their properties on foreigners and bluff-fxxk Sinkies.
Property market is one of the few markets where there is no law against insider trading.
When the property mkt falls, and all those with no holding powder liquidate and go into bankruptcy, these 'inside people' will buy again and then push market up in the next cycle.
The rich have been doing this to the common folks since time immemorial.
Interest rates in Singapore cannot go up ? You kidding me ?
The real insider is before launch, already certain units on certain floors booked up. :o
High property price does not benefit single property owners which the majority are. It only benefit those with multi properties and the impact with any measure is on this group.
What happiness is there when you have only one property to live in and when your children potentially have to work for 30 years to buy their own property?
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