Singapore Private Property prices still up or down? Part III

[Showster]

Right now we probably won't quite see it, because we tend to compare the strengths of our currency to USD, Ringgit, and maybe RMB. As of now, these three are likely depreciating like crazy.

But try to compare against AUD, JPY, NZD, Euro, pound Sterling etc, and you will know how much our currency is losing strength.

The greatest impact of this depreciation will only be felt from 2021, when the current existing governmental stockpiles are depleted. The government did promise to keep the price of essentials stable till the end of this year. That may be all they can do for us.

[Wind30]

11 hours ago, ToyotaShuttle said:

I am one of them. I deferred principal payments but am paying interest since can deduct that from taxes when doing rental.

Not sure why certain full cash folks here are so worried for those of us who have taken loans. Interest on a 1 mil loan is less than 1k per month - still very comfortable even with no tenant. Not to mention it is still easy to get tenants for certain market segment.

Almost like they are trying to convince themselves that they did the right thing by going full cash when actually their money is being lost to inflation.

my bank just send me a letter, my housing loan interest rate is 0.6%..... if this rate stays for long periods of time, I think property price will go up. That is why the government is not relaxing property cooling measures even though the economy is so bad. 

I wonder what is the new housing loan rates now. can you get 1%?

[ToyotaShuttle]

1 hour ago, Wind30 said:

my bank just send me a letter, my housing loan interest rate is 0.6%..... if this rate stays for long periods of time, I think property price will go up. That is why the government is not relaxing property cooling measures even though the economy is so bad. 

I wonder what is the new housing loan rates now. can you get 1%?

yes. mine is around 0.6% as well! At such low rates, how many people will really be unable to pay their loans even if they lose their jobs?

[Showster]

4 minutes ago, ToyotaShuttle said:

yes. mine is around 0.6% as well! At such low rates, how many people will really be unable to pay their loans even if they lose their jobs?

My major loan is 0.5%.

[Victor68]

Was hoping to get some tips to see the direction the prices are going in the next few months. Indeed developers are 'throwing' some incentives to push sales. Higher commission, some discounts, etc. Both new and resale units are not moving that fast prior to COVID19. But, I didn't see big drop or changes yet. It will be very interesting for the next half year for property. I think Government will extend the 5 years ABSD deadline. 

[Throttle2]

23 hours ago, Victor68 said:

Was hoping to get some tips to see the direction the prices are going in the next few months. Indeed developers are 'throwing' some incentives to push sales. Higher commission, some discounts, etc. Both new and resale units are not moving that fast prior to COVID19. But, I didn't see big drop or changes yet. It will be very interesting for the next half year for property. I think Government will extend the 5 years ABSD deadline. 

Got money , feel good, willing to, just buy. 

No such thing as tips lah, as you know.

buy to invest? Just make sure you get a good deal , this category is smacked into  tight corner currently

huat ah!

Edited July 31, 2020 by Throttle2

[Dafansu]

On 7/30/2020 at 4:22 PM, Victor68 said:

Was hoping to get some tips to see the direction the prices are going in the next few months. Indeed developers are 'throwing' some incentives to push sales. Higher commission, some discounts, etc. Both new and resale units are not moving that fast prior to COVID19. But, I didn't see big drop or changes yet. It will be very interesting for the next half year for property. I think Government will extend the 5 years ABSD deadline. 

Developers will come in telling the govt sales are bad request them to ease certain cooling measures 🤣

[Ginyu]

On 7/29/2020 at 11:58 AM, Icedbs said:

There is this thing called Karma.

Even if I can benefit from an economic downturn, I will not wish and hope that the downturn will happen and everybody will crash and burn. My benefit is insignificant compare to the losses and misery of all others out there.

So for those who wish misery upon others,  becareful of what you wish for.

there is something call self inflicted misery. they  wore a hat bigger than their head can fit, they can easily afford a hdb comfortably  but they go for condo instead so can show off to friends etc overstretching themselves and got burn🤣if they choose to remain in their fully paid hdb instead of upgrading and start another 20yrs fresh loan, they wont be crying now if income suddenly disrupted🤣

Edited August 1, 2020 by Ginyu

[Throttle2]

24 minutes ago, Ginyu said:

there is something call self inflicted misery. they  wore a hat bigger than their head can fit, they can easily afford a hdb comfortably  but they go for condo instead so can show off to friends etc overstretching themselves and got burn🤣if they choose to remain in their fully paid hdb instead of upgrading and start another 20yrs fresh loan, they wont be crying now if income suddenly disrupted🤣

To be really honest, i know quite a handful of these.  

I still say to each his own, but when they f**k up, i wont be sympathetic about it for sure.  

Everyone chooses his or her own risks in life to take.

[Alfc]

21 minutes ago, Ginyu said:

there is something call self inflicted misery. they  wore a hat bigger than their head can fit, they can easily afford a hdb comfortably  but they go for condo instead so can show off to friends etc overstretching themselves and got burn🤣if they choose to remain in their fully paid hdb instead of upgrading and start another 20yrs fresh loan, they wont be crying now if income suddenly disrupted🤣

I agree to a large extend. Not that I wish for catastrophe to happen.

But if there is a choice and one chooses to ride on potential upside, do not conveniently cry foul while the opposite happens. Dun cherry pick rewards and downplay risk and expect to self-conso and get out of jail or guilt. Whether you gain or loss out of it, it is due to personal choice. Such choices can bring so-call better quality of life for family but it can also bring misery for the whole clan. 

  

[Wt_know]

11 minutes ago, Alfc said:

I agree to a large extend. Not that I wish for catastrophe to happen.

But if there is a choice and one chooses to ride on potential upside, do not conveniently cry foul while the opposite happens. Dun cherry pick rewards and downplay risk and expect to self-conso and get out of jail or guilt. Whether you gain or loss out of it, it is due to personal choice. Such choices can bring so-call better quality of life for family but it can also bring misery for the whole clan. 

yes ... cannot have the cake and eat it ... 

Edited August 1, 2020 by Wt_know

[Ginyu]

1 hour ago, Throttle2 said:

To be really honest, i know quite a handful of these.  

I still say to each his own, but when they f**k up, i wont be sympathetic about it for sure.  

Everyone chooses his or her own risks in life to take.

yup they choose their own path of destruction so won’t be sympathetic. Affordability  cannot be measured by 20-30 years of projected income, it should be the amount of cash you have at hand so even when source of income stop suddenly, u won’t be affected🤣

Edited August 1, 2020 by Ginyu

[Icedbs]

1 hour ago, Ginyu said:

there is something call self inflicted misery. they  wore a hat bigger than their head can fit, they can easily afford a hdb comfortably  but they go for condo instead so can show off to friends etc overstretching themselves and got burn🤣if they choose to remain in their fully paid hdb instead of upgrading and start another 20yrs fresh loan, they wont be crying now if income suddenly disrupted🤣

Still, I do not hope or wish of anyone going through a bad phase in their life.

However, coming back to the property market, the resale private market has been very resilient so far. Prices dipped only about 0.7% in H1 2020.  In the 2008 Financial crisis, prices actually dipped 8.3%. The massive stimulus package given by the government, the deferment of loans, and the prudent TDSR eligibility that is based on 3.5% interest and high ABSD rates which they implemented years ago, has somehow adverted mass fire sales that pushes down price drastically.  Resale volume however will remain low because some potential sellers or tenants are holding back to allow viewings. 

Resale private prices will remain soft going forward, but  I will not be expecting mass fire sales everywhere. 

[Throttle2]

3 hours ago, Icedbs said:

Still, I do not hope or wish of anyone going through a bad phase in their life.

However, coming back to the property market, the resale private market has been very resilient so far. Prices dipped only about 0.7% in H1 2020.  In the 2008 Financial crisis, prices actually dipped 8.3%. The massive stimulus package given by the government, the deferment of loans, and the prudent TDSR eligibility that is based on 3.5% interest and high ABSD rates which they implemented years ago, has somehow adverted mass fire sales that pushes down price drastically.  Resale volume however will remain low because some potential sellers or tenants are holding back to allow viewings. 

Resale private prices will remain soft going forward, but  I will not be expecting mass fire sales everywhere. 

Yup thats a whole lot of shit to prop up the market. the straw that breaks the camel's back is the loss of income. 
so if that doesnt happen, things will just be soft and the cracks may just hold up. 
if that happens on a bigger scale than nobody wants to be the last man standing

good luck Singapore

huat ah

Edited August 1, 2020 by Throttle2

[Wt_know]

simi down? hk and spore ... same same but different

when economy is up, all cheong

when economy is down, it's safe haven

Edited August 2, 2020 by Wt_know

[Volvobrick]

On 7/29/2020 at 9:38 PM, Wind30 said:

my bank just send me a letter, my housing loan interest rate is 0.6%..... if this rate stays for long periods of time, I think property price will go up. That is why the government is not relaxing property cooling measures even though the economy is so bad. 

I wonder what is the new housing loan rates now. can you get 1%?

Wah what bank is this? Old package right? This month I can reprice mine (DBS), but probably at about 1.5%.  Anyone know what's the best package at DBS now? 

[Wind30]

54 minutes ago, Volvobrick said:

Wah what bank is this? Old package right? This month I can reprice mine (DBS), but probably at about 1.5%.  Anyone know what's the best package at DBS now? 

OCBC. old package. 

[ToyotaShuttle]

29 minutes ago, Arcachon said:

 

Is this really part of the formula? Don't sound right.

increasing monthly gross income by $2083 for a 100k pledge means you expect a 25% return? MAS must be crazy

Edited August 4, 2020 by ToyotaShuttle