Quote:
Originally Posted by hedgie
When the US market crashed, average property price/income was 4 times. In Singapore today, median resale HDB price to median household income is 8 times. Like I said, not sustainable.
You want numbers? Check every fundamental measure or ratio, and you will find that property is not just overpriced, its way, way, way overpriced.
Only compensating factor is liquidity, and that has proven to be a fickle bedmate in every asset class, in every country around the world thru out history.
Believe it or, I leave it up to you. But mark my words, at least 30% within 5-yrs.
I've never been more sure about anything. |
Actually, we do not even have to look into other asset classes, or other countries.
If you simply study the history of the Singapore property market, you will be aware that a 30% drop is not unprecedented.
From late 1990s to 2003, residential property prices fell 50%+ across broad sectors i.e. prime condos, suburban condos, landed etc. Many many young couples went into negative equity then.
Remember the old saying - those who do not learn from history are doomed to repeat it.
But no point for me to preach - I do not gain from convincing anyone here.
Just wanted to plant a warning - take it or not, its up to you. Its your money, and its your life.