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Singapore Private Property prices still up or down? Part III


pChou
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ok. did you buy? good for you

at current price point

even correction is âskyâ price vs âdown to earthâ price

then sky will continue to cheong to outer space ...

yishun sembawang punggol $1200/psf ai mai? [sly]

Bought a few before various cooling measures. No point buying now as rental cannot support the price.
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Bought a few before various cooling measures. No point buying now as rental cannot support the price.

awesome ... now huat ah [thumbsup]
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awesome ... now huat ah [thumbsup]

 

It is actually worrying for Singapore to have property prices that is no longer supported by rental.  It means a few things to me as follows:

 

1. There is a mistake in urban planning that allocates too much land to housing instead of to manufacturing and commerce.  This raises the cost of business in Singapore while creating surplus of housing that depresses rental.

 

2. The economy is growing too slowly while living costs are increasing too fast.  The tenants cannot afford the rental that covers the installment (for a loan that is pegged to 60% of price) and other miscellaneous costs of a landlord.

 

Overall, Singapore is creating high-value jobs too slowly.  It ends up the old rich hogging the properties and the young mired in big property debt for the rest of their life.  I won't be surprised that the society wealth gap and discontent are increasing rapidly.

 

My take is the developers of the 99 years lease properties probably miscalculated in their enbloc offers.  2019 onward could be a very slow market.

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Turbocharged

Bought a few before various cooling measures. No point buying now as rental cannot support the price.

Really? Your posts sounds like u are not heavily vested in properties....

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Really? Your posts sounds like u are not heavily vested in properties....

Just a few. Limited Vit M. Happy with what I have. No point extending risk for me.
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Twincharged

"It ends up the old rich hogging the properties and the young mired in big property debt for the rest of their life."

 

Interesting comment

To some extend this is true as the so called "old money" are linked with the big landed of yesteryears and out of reach for many.

"new money" are tied to lifelong debts for many

Some may say prices in HK are higher, but private property prices here are at or near the peak for many sectors and tough for next generation with aspirations but without the "old money" to service. Lucky we still have HDBs.  [:)]    

 

 

  

It is actually worrying for Singapore to have property prices that is no longer supported by rental.  It means a few things to me as follows:

 

1. There is a mistake in urban planning that allocates too much land to housing instead of to manufacturing and commerce.  This raises the cost of business in Singapore while creating surplus of housing that depresses rental.

 

2. The economy is growing too slowly while living costs are increasing too fast.  The tenants cannot afford the rental that covers the installment (for a loan that is pegged to 60% of price) and other miscellaneous costs of a landlord.

 

Overall, Singapore is creating high-value jobs too slowly.  It ends up the old rich hogging the properties and the young mired in big property debt for the rest of their life.  I won't be surprised that the society wealth gap and discontent are increasing rapidly.

 

My take is the developers of the 99 years lease properties probably miscalculated in their enbloc offers.  2019 onward could be a very slow market.

 

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It is actually worrying for Singapore to have property prices that is no longer supported by rental. It means a few things to me as follows:

 

1. There is a mistake in urban planning that allocates too much land to housing instead of to manufacturing and commerce. This raises the cost of business in Singapore while creating surplus of housing that depresses rental.

 

2. The economy is growing too slowly while living costs are increasing too fast. The tenants cannot afford the rental that covers the installment (for a loan that is pegged to 60% of price) and other miscellaneous costs of a landlord.

 

Overall, Singapore is creating high-value jobs too slowly. It ends up the old rich hogging the properties and the young mired in big property debt for the rest of their life. I won't be surprised that the society wealth gap and discontent are increasing rapidly.

 

My take is the developers of the 99 years lease properties probably miscalculated in their enbloc offers. 2019 onward could be a very slow market.

I feel the enbloc is not really their call, it's the market's call. Every developer is competing, if they don't offer the correct figure, they will lose the enbloc project completely. This will result in less sales inventory which the market are still able to pay for the exorbitant selling price.
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Turbocharged

I feel the enbloc is not really their call, it's the market's call. Every developer is competing, if they don't offer the correct figure, they will lose the enbloc project completely. This will result in less sales inventory which the market are still able to pay for the exorbitant selling price.

I think the government priced the enbloc fees wrongly for many years. Make it too lucrative for the Developers and thus they are willing to bid so high for them. I think the last July measures is great.

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It is actually worrying for Singapore to have property prices that is no longer supported by rental. It means a few things to me as follows:

 

1. There is a mistake in urban planning that allocates too much land to housing instead of to manufacturing and commerce. This raises the cost of business in Singapore while creating surplus of housing that depresses rental.

 

2. The economy is growing too slowly while living costs are increasing too fast. The tenants cannot afford the rental that covers the installment (for a loan that is pegged to 60% of price) and other miscellaneous costs of a landlord.

 

Overall, Singapore is creating high-value jobs too slowly. It ends up the old rich hogging the properties and the young mired in big property debt for the rest of their life. I won't be surprised that the society wealth gap and discontent are increasing rapidly.

 

My take is the developers of the 99 years lease properties probably miscalculated in their enbloc offers. 2019 onward could be a very slow market.

Creating high value jobs without importing of expertise is hard.

 

Grooming via the universities is slow, and by the times the graduates enter the workforce, some sector might become saturated or even obsolete.

 

Manufacturing and commerce is incredibly complex nowadays with internet market as a direct and cheaper alternative, other than the cheaper alternatives overseas and a more globalised population. Then there is the trade war that complicates matters further.

 

The gap is as it is (neither really widening nor narrowing), but with more expenses for the rich upcoming and more subsidies for the less fortunate, we are at an equilibrium.

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