Bro,
I would share my reading of the property market with you. Currently, most people is in agreement that property prices have sky-rocketed way beyond fundamentals and logic (save for the greedy property developers and agents who would advise the contrary for obvious reasons).
Basic Economics 101 tells you prices are a function of demand and supply.
If you look at the supply side of property market, yes there are tons of houses in the supply pipelines going to be completed in the next 2-3 years. But if you look at the demand side, it is still going strong. Singapore is a relatively small market due to the small resident population size, but demand is holding up strongly for the past couple of years due to the influx of foreigners, and by this, I dont just mean those living and working here, but includes the cash rich ones living overseas who are snapping up houses here as investment vehicles, holiday homes, houses for children and simply money laundering. There is no restiction on foreigners' purchase of property properties, and greedy developers love to sell houses to this segment, as they could achieve much higher psf prices. In the latest reports, foreign buyers make up one third of all private property purchases. The figure is even higher if you just look at mass market condominiums sales.
So the bottom line: as long as the
PAP government refuses to rein in demand by cash rich foreigners through implementing purchase restrictions, prices are unlikely to come down by much, even if it do so. Judging by the government record of always welcoming foreigners with red carpet, it is almost impossible for it to impose restrictions, even though this is coming at the expense of local Singaporean buyers.
If you are really hard up for condominiums like the majority of ignorant Singaporeans, then I would advise that you bite the bullet now as prices are unlikely to crash, I repeat, unlikely.
Now turning to your financing means, it really appears to be a stretch for you to purchase a ridiculously priced $1.1M mass market condominium. Based on your monthly household income of 9k, just assuming you take up 80% mortage financing at 2% interest rate over 30 years would mean a debt servicing ratio of 37%, which is really high and financially imprudent. Basically out of every $1 of your income, 40 cents go towards paying for the housing loan. (And this is assuming both you and your wife must be working all the time, without making provisions for illness, retrenchments or simply, your wife needs to stop working to look after the kids, if you have)
Alot of Singaporean buyers now simply throw caution to the wind when purchasing properties, much to the delight of property developers. A recent
MAS report reveals that most Singaporean households have mortage debt servicing ratios of 38%, which are really highly leveraged levels. Even without any property market downturn, if anyone in this group loses his job, he is in serious trouble as debt servicing ratio of this level would not allow him to be out of job and go without income for even 1 month
I would imagine you do not want to join the party.....so my advice is go for the relatively cheaper
HDB flat and get to sleep well at night.....