Quote:
Originally Posted by Unregistered
I read this post with some amusement. It's hard to discern if the poster is deceptive because he is long property or just unbelievably naive.
By every objective measure (price to rental, price to salary, % of salary to mortgage etc), the Singapore property market is not just overpriced but way overpriced. Prices have shot up over 100% in 4 years, fueled by easy money (enbloc plus stock market), overseas liquidity, and low loan rates.
We are at a point where funding a property purchase by salary is not feasible if u use conservative Lian assumptions of 4% interest and 20 year loan period.
The smart money (property developers) know this and are trying to get rid of their inventory as fast as they possibly can, and are bidding very very very conservatively for new land plots. They are also slamming khaw boon wan every opportunity they get, cos they are very nervous indeed.
And bank analysts are coming out of the woodwork to say that 2012 and 2013 will be down years.
Prices have to come down. It's just a matter of when.
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You are so wrong. With Singapore population hitting 6.5 million soon, demand will shoot through the roof. Mr Khaw is not building fast enough to meet the expected demand.
These are my calculations:
Graduate couple, husband and wife each making 10k.
35% of combined salary = $7k for servicing mortgage.
At 1% interest and 30 years loan tenor, they can borrow more than $2 million for their house.
TWO MILLION DOLLARS!
So, property is still super affordable at current levels. Mah Bow Tan was right all along.
My prediction: property prices will double in no time.
The current stock market crash has no effect on Singapore property market. In fact, hot money from China, India and all the rich people around the world will flow here given our excellent AAA rating and US credit rating downgrade.