Housing prices- would it correct at all?

[LeMans2011]

Only external factors (eg prolonged economic depression) can result in a genuine correction. For sure the measure will put a lid to runaway prices but no govt is stupid enough to cause a market crash through policies, unless intended (in which case those buggers can go in and scoop properties)

 

[mojito]

Recent policies seem to be crafted to keep property prices high (artificially some may say), by reducing housing transactions. It is also politically motivated to be seen as taking punitive actions against PR speculators in the HDB housing market. My take is that housing prices will remain high or ease slightly. A crash scenario is very unlikely as speculators may prefer to wait out the cooling measures to prevent economic loss. Now if the US were to raise interest rates... things will get very interesting!

Wrong.. it makes it even more attractive for Singaporeans to run. If I sell my properties now, I can retire immediately in any city I want (looking at New Zealand, Perth, Thailand and Northern Malaysia). In fact, this is the best time for anyone to cash out and 'run-road'.

You forgot about additional buyer's stamp duty? People will wait it out or let the PAP have a windfall at their expense. mojito is pleased. I hope more people can view it the same way.

 

[Manager]

very unhappy with cow's announcement.

Dear cow, we private property owners do not need you to cow peh cow bu and meddle in our affair. settle your pigeon hole problem and leave us alone.
7 % stamp fee? :oIo: where will the extra money go to?:oIo:

 

[laksaboy]

7 % stamp fee? :oIo: where will the extra money go to?:oIo:

It'll help to finance more of his $8 bypass surgeries in future.

 

[Fook Seng]

Guys,
I'm hoping there's a chance of it correcting in the near future so that I can buy a unit. At this price, it's too crazy.

Anything that they are doing now has only short term effects, say one to two years. It would revert to long term trends. Going back to levels five, ten years ago, forget it. So the moment the correction is about fully done, move in and buy. Otherwise, you would have missed the boat.

Same with cars COE. Those so-called experts who predict the COE will collapse in 2014 because of quotas from scrapped cars are not really experts because they fail to consider the increase in demand from those who sell their cars. So move in, when there is a freak result because of the economy or other combination of factors.

HDB prices wouldn't take a dive unless Dr Chee takes over as Govt. Drastic drop in HDB prices will affect the govt budget. Even a change from purchase to rental will also affect the budget. So don't expect a drastic drop.

You have to wait several years to see any drop and coupled with the upward trend of inflation, you may not actually see a drop at all but just a stagnation in price and I am talking about either a reversal of the FT policy or the Govt dismantling the land pricing formula not to earn on the land, but to avoid revenue issues and impact on the loan service of existing home owners, spread it over several number of years.

On the other hand if they continue as it is now, expect a continuous upward trend with minor corrections now and then due to "cooling" measures. Except for speculation and foreign investments, "cooling" measures only delay demand.

 

[Bigfuck]

Only external factors (eg prolonged economic depression) can result in a genuine correction. For sure the measure will put a lid to runaway prices but no govt is stupid enough to cause a market crash through policies, unless intended (in which case those buggers can go in and scoop properties)

Wrong. CPF 1985. Leegime cause a national recession by making CPF tax 50% when everyone else in the world was out of recession. It can and will happen. There are more cashless Singaporeans than you think. For Leegime, even if the the property devalues downwards now, they already made money with the value they sold to you - they made anywhere from 100-1000% (includes SLA crazy land price profit) So if the property prices crash to us, it is only a haircut. If a 500K property drops to 150K, that is a haircut to Leegime, but they make.
At that price, there will be Singaporeans able to buy it and it will get pushed up towards 500K. For the sucker buying it and becoming bankrupt and living on a rented room, Leegime attitude
is you never plan your pasar. Lemans, you made one fundamental critical error. Leegime is not a govt. It is family and cronyism constructed business landlord running Singapore. In countries where election votes and revolutions could see dead or imprisoned government officials and cronies, what you say as stupid is true. SGP is not. It is run like a crooked investment bank who is the landlord as well. Raising prices high and then cutting borrowing quantum is the best way to maximum what you can cheat people. It is no different from you suddenly committing to a 10K
credit purchase with rollover for other loans finding your credit limit slashed to S$500. As far as the bank is concerned, you owe them 10K which you definitely can pay more than that in your lifetime. As for you, you may need to declare yourself bankrupt and work out a lower payment installment which could make you pay 2-10 times more than the 10K borrow on the credit card. This has been done before.

 

[Boliao]

You forgot about additional buyer's stamp duty? People will wait it out or let the PAP have a windfall at their expense. mojito is pleased. I hope more people can view it the same way.

Not my problem.. I'm the seller, remember? The 7% affects those who buys 2nd property and higher for 3rd property onwards. I'll just state the price and if they buyer is willing and does all his calculations, then it is a non issue.

 

[SirRichard]

Anything that they are doing now has only short term effects, say one to two years. It would revert to long term trends. Going back to levels five, ten years ago, forget it. So the moment the correction is about fully done, move in and buy. Otherwise, you would have missed the boat.

Same with cars COE. Those so-called experts who predict the COE will collapse in 2014 because of quotas from scrapped cars are not really experts because they fail to consider the increase in demand from those who sell their cars. So move in, when there is a freak result because of the economy or other combination of factors.

HDB prices wouldn't take a dive unless Dr Chee takes over as Govt. Drastic drop in HDB prices will affect the govt budget. Even a change from purchase to rental will also affect the budget. So don't expect a drastic drop.

You have to wait several years to see any drop and coupled with the upward trend of inflation, you may not actually see a drop at all but just a stagnation in price and I am talking about either a reversal of the FT policy or the Govt dismantling the land pricing formula not to earn on the land, but to avoid revenue issues and impact on the loan service of existing home owners, spread it over several number of years.

On the other hand if they continue as it is now, expect a continuous upward trend with minor corrections now and then due to "cooling" measures. Except for speculation and foreign investments, "cooling" measures only delay demand.

I guess I'll just have to wait for the day it corrects.. But only if it corrects massively such as 10-15%

 

[McAfee]

Many rich Chinese here and continue to come here to be PRs, you think PAP are solving the problem? Ask any Chinese what they think of property prices in Singapore, only one answer, "it will only go up because Singapore is so tiny".

I knew the fts will spoil the market eventually. Not just that, COE prices and SMRT too.

 

[Fook Seng]

I guess I'll just have to wait for the day it corrects.. But only if it corrects massively such as 10-15%

Some experts are predicting 5 to 7%, with luck maybe 10%. If you are very rich, there might be sectors where only the foreign rich can afford, thereby attracting the most stamp duties, the correction could be stiffer.

 

[Bigfuck]

Some experts are predicting 5 to 7%, with luck maybe 10%. If you are very rich, there might be sectors where only the foreign rich can afford, thereby attracting the most stamp duties, the correction could be stiffer.

Stamp duties will hit the poor. For the rich stamp duties is used to gauge whether to money launder or do transactions in Singapore. The maths is simple are the tax rates of transaction higher than our country or other countries. Next is the secrecy secure for our transactions.? Pirate port maths is very simple to understand and formulate. It is meant to cheat rather than to benefit the people. >

 

[SadPlumpGal]

Housing market will collapse 25% or more this year and those who live off rental income to feed small threes will find their small penises get even smaller

 

[SadPlumpGirl]

Housing market will collapse 25% or more this year and those who live off rental income to feed small threes will find their small penises get even smaller

its good that those who blindly invest should suffer lah...good for them...

 

[jw5]

Housing market will collapse 25% or more this year and those who live off rental income to feed small threes will find their small penises get even smaller

the small penises will get bigger, because the small threes will refuse to have sex with them....................

 

[melissamarietan]

I hope that soon there's a decline in the housing prices of Singapore as I wish to own a property for myself soon. Currently, I'm residing in a room for rent which I got with the help of Property Guru. Must say they have a variety of options available incase you want a room for rent in Singapore.

 

[PooBorKia]

its good that those who blindly invest should suffer lah...good for them...

A lot of young people are borrowing from banks just to sustain their flashy lifestyle.

 

[BlueBrother]

The gov't should make HDB more affordable if they want ppl to get married and make kids. HBD should be for ppl in need and not property speculation. Some HDB prices today are really crazy. We should also have some restriction on renting otherwise people will buy to rent which create artificial demand and inflate prices. One good reason to allow rental may be a family have to take an overseas posting for a few years but will eventually come back to Singapore. Gov't should develop surplus rather than have shortage to keep the price in check and not have the price raise too high that cause a huge burden on the ppl. Some surplus flats may be rented out by the gov't for foreign workers. More affordable low budget singles' apartments should also be developed that are strictly for ppl in need, not for renting or speculating.

Property speculation in Hk has driven prices beyond most average ppl. Rent for a 900 sq feet apartment can be about S$4K a month. That's why most ppl can't afford to buy their own apartments if housing is open for speculation. HDB should not be for generating personal or public wealth, it's sole purpose is to ensure affordable housing for all levels of Singaporeans. HDB should operate without showing substantial income and making sure that everyone can own their own home. The gov't hv plenty of other areas to generate revenue.

 

[SixthColumn]

prices will continue to go up as long as PAP allows foreignors in singapore

 

[borom]

They can but the question is, will they?........The root cause of this property market at its fundamental, is the interest rates. .......

.....Interest rates are deliberately kept low for a reason..... Lots of business were also done in Singapore back in the 1980s and 1990s, despite the higher interest rates back then....The SG govt encourages speculation, because its cronies at HDB and various property development companies stand to gain. 'Asset appreciation' also has the political side benefit of keeping the status quo, thus keeping a certain political party in power.

www.chicagotribune.com/business/sns-rt-us-usa-economy-mortgagesbre91j0k4-20130220,0,5023188.story

Mortgage applications fell last week as rates rose: MBA

February 20, 2013


NEW YORK (Reuters) - Applications for U.S. home mortgages fell for a second straight week ......The refinance share of total mortgage activity fell to 77 percent of applications, the lowest level since May 2012.....Fixed 30-year mortgage rates averaged 3.78 percent in the week, up 3 basis points from 3.75 percent the week before.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

Until they are prepared to increase interest rates, I do not think they are serious about reducing housing prices.
Mortgage rates on foreigners/PR's should be higher than locals for a start(to reflect the higher credit risks)-if they are allowed to borrow at all.
In many countries, foreigners cannot borrow in local currency or from local banks to buy residential properties.