2008 may be a flat year for property. Means not much increase or decrease in prices. I believe there may be a bit more upside for landed houses though. They are considered cheap when compared to luxury condos. Generally prices may soften and start to taper off from 2009 onwards, since many projects TOP at about that time. Last year because rental is good, most landlord renewed a 2 year lease. 2007 + 2 = 2009.
However, last year was a record breaking year for en-blocs. Record number of instant millionaires in the history of Singapore. Most of last years property buyers are them. With the windfall, they bought a replacement home and used their spare cash to buy several new units with the intention to rent out. Therefore they have holding power. They are cash rich. They can don't sell. They can hold for 10-20 years they are fine. Their intention is to collect rental income from the property that they have bought fully paid for with their sales proceeds so they can retire. Even if rental drops to half of today's level, it's alright. Most already fully pay for the unit. No installment.
Remember most of them bought a
HDB to stay, full cash. With an average of say $2 mil sales proceed, after buying
HDB still left with about $1.5 mil. They have holding power. They don't have the need to sell cheap. No matter what happens they already secured a roof over their heads. They won't be too bothered whether price go up or down, as long every month collect rental can already. More rental spend more, less rental spend less. No big deal.
I just have this gut feeling prices will not go down to the 2002-2005 low levels. Not for a long long time. Yes, what goes up must come down. But doesn't mean will go down to previous low levels. Go down by only 5% is also go down.
Property Prices Continue To Rise
