Property Market Boom Bubble?

[lovenest 0]

Even with the new supplies, there is these backlog demand from unsuccessful balloting applicants.

u mean from hdb??

yeah....why dont they increase supply for hdb instead of the private.

not everyone can afford the newly launched private apartments.

or did they mean there will be more supply of hdb flats??? im kinda confused

[raincole 0]

HDB got launch the fernvale but response poor. So is it HDB dun want to build or people fussy?

[lovenest 0]

HDB got launch the fernvale but response poor. So is it HDB dun want to build or people fussy?

isnt fernvale BTO???

plus only 3 rm and 4rm right???

what abt those who need 5rm flat??

btw out of curiosity, does hdb launch all its existing flat stock in a particular area at once or in stages???

i mean for example sector B is now launched...is it all of it is out or they might keep some for later???

[icer 0]

I don't think it's appropriate to say everytime the prices will have to rise by 40% before it is called the bubble. Now the prices are already at its peak at all times right?

actually only those newly launch private condos at prime district are 'so high' now. The rest like HDB, landed property are still way off the pre 1997 levels. During the last propert bust, the price crash 40%! Now it is only up 20%. So is it a bubble? i say what bubble??? The property price still have a long way to go.

Those record prices are set for district 9,10 penthouses, the rest are not that expensive yet. Nobody can tell the future but by looking at the current situation, with 2x IR, marina finance centre, F1, circle line and even sportshub coming up, those nearby housing will appreciate even more. MM Lee even say Singapore is in a golden period. Property cool down will have to wait

[Relacker 1]

I don't think it's appropriate to say everytime the prices will have to rise by 40% before it is called the bubble. Now the prices are already at its peak at all times right?

if u study the property cycle over several decades, the price trend is up.

Each property boom and bust if followed by higher prices on the next boom and bust cycle. Hence it is no surprise actually that our current property upswing is produces prices higher than the last boom. In fact Kwek Leng Beng (chairman of City developmets) predicts the property is only in the early stages of the upswing and there's a good 5 years more to run as each property cycle is ~ 7years.

Comparing with Hong Kong and Shanghai, Singapore's property price is considered undervalued prime property is these place cost $8000/psf compared to our current highest record which is around $5100/psf (i think achieved by The Marq developed by SC Global recently) or $4000/psf achieved by Capitaland's Orchard Turn apartment(should be the penthouses). If Singapore achieve the status of regional financial hub on par with Shanghai and HongKong, the property prices will have no choice but be chased by demand (both foreign and local) due to high quality and high paying jobs avail here. Property market is nothing more than demand and supply and there is a reason why certain country/area cost more. Malaysia is offering spacious landed property on the cheap($150k u can get a terrace house/semi D ) but no demand, why?

In fact we should worry when our property prices dip because then lack of demand also implies Singapore is no longer seen as worthy investment in the eye of foreigners and it also maybe there is less jobs avail so no one want to come here.

[Homeowner 1]

Hi Relacker. Agree with you 100%! Here's to rising property prices, good jobs and prosperity to all!

[icer 0]

Homeowner and Relacker, both of you owned properties I supposed?

What about those young people who don't? How are they going to afford housing if this goes on?

Read the Business Times today.

[Homeowner 1]

No Business Times leh ...what's the gist? Maybe Yenfong can post a summary.

[Homeowner 1]

Actually, I really don't see what's wrong with rising property prices.

I think the real issue with rising property prices is when the prices rise much faster than the wages, such that the real purchasing power decrease.

Can you imagine the poor young people who just came out to work, get married and need a place. Plonk 35% of their monthly income on a flat and ten years down the road, the flat is worth only 70% to 80% of what they paid because their property price went down. Doesn't make sense that people want this sort of scenerio, doesn't it?

Would you want investors to bypass Singapore, go to China and India...property price will go down because no more foreigners/P.Rs. need property in Singapore anymore, rental is bad because no foreign companies lcoate here. Property prices plumment like mad because there is greater supply than demand. Wah...then property prices will be so cheap, you can get landed for a song...would you want to be in Singpore anyway 'cos there are no jobs? Doesn't make sense to want this sort of scenerio, isn't it?

I think it is Deng Xiao Ping who said that when you open the windows, some flies will fly in. You can't have the best of both worlds, something has to give.

Maybe the real issue is that there are some speculators/ optimists pushing up prices higher than what people are willing to stomach and not with rising property prices.

[Homeowner 1]

Here's another true life example. 30 years ago, a couple bought a landed property in Country X for $40,000. 30 years later, this same couple sold the property for $100,000. Small price increase, but do you think the purchasing power of that country's $ remained the same over 30 years? I shudder to think what Singapore would be like in such scenerio...probably reverted back to ulu fishing village.

[Relacker 1]

Homeowner and Relacker, both of you owned properties I supposed?

What about those young people who don't? How are they going to afford housing if this goes on?

Read the Business Times today.

Icer,

dun scold me leh, I am not a property tycoon, I am just a relacker (one who relacks in a corner)

icer:"What about those young people who don't? How are they going to afford housing if this goes on? "

The HDB properties are still very affordable in the range of 150k for 3room to 300k for 5rooms. I think this is very reasonable to most Singaporeans. More so when u buy 1st hand direct from HDB.

The property prices are going up mostly in the private properties(mostly prime districts private condos) not in public housing. Unless u r talking about young ppl who wants to buy a private condos. but i think if u r talking about young couples, they will go for HDB so no issue at all.

p.s: i think u got part of ur wish, garhmen increase the property tax for value of land redeveloped yesterday. That should cool the en bloc scene a bit

Edited July 19, 2007 by Relacker

[icer 0]

No lah, not scolding u.

I am a single but not 35 years old yet so cannot buy HDB. I was thinking of buying a place of my own last year but can only buy pte. Was thinking of my budget and what I can afford but was swarmed suddenly by the boom and caught by surprise.

Now I cannot buy anything cos it's super ex and probably have to wait till the prices fall or when I am 35 years old then I buy a flat. But then, now resale flats also need a lot of cash which is not very worth it in my opinion.

So I am caught neither here nor there.

Icer,

dun scold me leh, I am not a property tycoon, I am just a relacker (one who relacks in a corner)

icer:"What about those young people who don't? How are they going to afford housing if this goes on? "

The HDB properties are still very affordable in the range of 150k for 3room to 300k for 5rooms. I think this is very reasonable to most Singaporeans. More so when u buy 1st hand direct from HDB.

The property prices are going up mostly in the private properties(mostly prime districts private condos) not in public housing. Unless u r talking about young ppl who wants to buy a private condos. but i think if u r talking about young couples, they will go for HDB so no issue at all.

p.s: i think u got part of ur wish, garhmen increase the property tax for value of land redeveloped yesterday. That should cool the en bloc scene a bit

[waileong 0]

Homeowner and Relacker, both of you owned properties I supposed?

What about those young people who don't? How are they going to afford housing if this goes on?

Read the Business Times today.

Well, we can end up like Tokyo. People live 100 miles outside and take 2 hours on the bullet train into work because property is just so expensive in the city. Same has happened in New York, San Francisco, London, etc. Anything central is unaffordable, only the very rich or those who got in early can afford to live in the city, everyone else lives in the suburbs.

You can imagine Singaporeans living in Jurong West Extension, Ulu Sembawang, Admiralty, etc. all taking 2-hour MRT rides each day simply because that's the only property they can afford.

[Homeowner 1]

My sympathy, icer.

A friend of mine is looking for a hdb flat at CCK/BP/BB area and said that a homeowner at BB was asking for a $150k COV while homeowners at CCK/BP are asking for $45-55k COV. Very ridiculous, right? It's not even central, TP or Bishan. I told her immediately not to give in to such ridiculous asking prices and that these people may not be genuine sellers, just trying their luck for an easy cash rich buyer.

But, when I went home and calculated the cost of an EM say, at Yew Tee, valuation $330k-$340k+ $50k COV = $380k=$390k, it's still a good 30% cheaper than the peak at $530k in 1998. But, it has climbed up 15% from 2005/6 when people bought at valuation at about $330k. At $380k, an EM is still $200k cheaper than say, an EC in the same area which is now at about $530k-550k. So, was I wrong to advise her not to buy? Perhaps it is the speed the property prices rose that upset people....

Edited July 26, 2007 by Homeowner

[vampree 0]

Agree that the speed of property prices rising has upset many ... but also I guess the number of instant 'millionaires' created by en-bloc fever also has a part to play ...

I think there's still genuine sellers out there if one is patient and can expand the search boundary ... but of course the public tpt system, although efficient, sometimes leaves much to be desired.

by driving, i take about 25min to reach my office after 9am ... 40min if between 8am-9am (because of jams) .. if by MRT/Bus, min 1.5hour