Here comes part two of the new cooling measures show with the government raising five percent Additional Buyer Stamp Duty and lowering five percent for Loan-to-Value on July 5.
In the midst of frantic last-minute buyers and discontented industry stakeholders, let me show you the true picture in this video:
1. How analysts prove to be the worst predictors again?
2. Where is the euphoria in the market?
3. What will happen to the buyers now?
4. Are developers done with building land banks?
5. How safe are our banks and their loans?
6. What is going to happen next?
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Hi, your views are very insightful and well thought through. Unfortunately, our property market is still very much driven by sentiments and government policies. These imperfection and intervention lead to much uncertainty not best reflected by economics fundamental. My hope for the future is for SG not to go down the path of HK where developers exploit the market by supplying unlivable sized units at ridiculous price. Japan nearly went down that path but good for them, decades of deflation has its unintended positive effects for their quality of living. However, it is a different proposition altogether as SG still have a buffer (HDB). How many will actually buy for value as oppose to imagined profits.
The difference between Hong Kong and Singapore is that, for the former, the government only care about the interests of the prominent businessmen, especially in the past.
Growing up in a free economy, I strongly support positive non-interference of the government. But there are pros and cons. We can let market forces drive the property industry and let the market craze continue until the bubble bursts, But many have to suffer the consequences, just like the two lost decades in Japan.
Very insightful and factual . These thoughts and market data are ready available either through thorough analysis or just thinking logically. But unfortunately most people tend to choose not believe and just following blindly. Reminds me of the pipe piper story. Again I believe that not many realised that the housing spike between 2009-2012 when we are in a Low interest rate environment and of course “free monies” circulating within the financial environment. This resulted many able to hold during the 2013-2016 period. But now taking into account of rising interest rates and reducing or maybe ending the era of free money alone not mentioning about Singapore Aging population and slow job growth, I somehow rather be prudent then believing that there’s any upside in the property market at least for the next 5-10 years. In my own humble opinion of course.
Thanks your your comments. You have nicely summed up the reasons for overpriced assets (especially real estate) in recent years and the reasons why we have to be cautious about buying properties in Singapore now. I agree with you totally.
Thank you & It’s a comfort seeing people on the same page! However it seems like when people are only starting to feel the strain on their monthly payment obligation when higher interest rates starts taking into effect ( many have been already feeling the pinch due to the recent escalating on the Sibor). In addition, whats worrying is the Bank loan exposure on property including construction and building makes up a total of between 40%-50% (stand to be corrected) on their total loan portfolio which to me does not seems to be quite in line for a good diversification rule. This list goes on and on and it never ends….there’s always a saying “a sucker is born everyday”.
Anyway enough on my ranting and i’ll just sit back and watch how the property situation pans out.
Hello Vina, like your podcast! Do you have them on Anchor so that we can listen on the move?
Hahaha this is the FOMO effect in play!
I agree with you that the govt is at least doing something to regulate the market.
Based on your insights and the facts, I would think that it would be prudent to wait until the market situation changes before we invest in any properties in Singapore.
I’m really new to investing, so please forgive my curious question of what do you think about tinyassets? Those kind of ‘lower’ investment houses in Australia?
Thanks!
I know some followers are listening to my youtube videos when the are driving or traveling to or from work. For the time being, the videos will only be posted on youtube.
Australia property market has started going downhill. Have you read the article “Australian home investors in full retreat as prices fall”?
https://www.businesstimes.com.sg/real-estate/australian-home-investors-in-full-retreat-as-prices-fall