Don't panic. It's all about demand, supply and government interference. Right now, the government still thinks the property values are high, so they want to see the prices drop a little more. Furthermore, there's a lot of cash in the system. That's why the SSB is created to soak up the excess cash sloshing around.
Had the government removed the cooling measures now, the property prices would shoot up again because the cash in the system.
For those who have already got their investment homes, it is actually a good thing that not many of the new homes were not sold. If they were sold, they would eventually contribute to the supply of rental units bringing down rental returns. As it is, as long as the new homes were not sold, the growth of the supply of rental units will be gradual.
So just wait. In the meantime, keep your extra cash in the SSB to earn gauranteed interest. Once the prices dropped to a level acceptable to the government, they will remove the cooling measures and buyers will return - in large numbers. A lot of buyers are currently waiting on the sidelines.
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Originally Posted by Unregistered
Those thinking of buying property for investments to earn rental can forget about it as the risk of an empty condo is very high. We have a BIG supply of condos coming and new FTs coming is not many. There will be many empty condos. Be warned.
It is better for you to keep your money in the CPF Life scheme as you earn at least 4% pa in your CPF SA, RISK FREE. The days of investment properties are over. Sell away your investment property before it is too late.
The only way to solve our big property problem is to stop all land sales for the next 5 years and to increase immigration and inflow of FTs. This will allow the massive oversupply to be absorbed. Those overnight small developers should just give up and sell their properties and business away and focus back on their core business.
We have over investment in investment properties due to massive speculation. Supply of rental properties exceeds demand by a big margin. Stop investment property activities totally. Those who buy private property must be made to sell their HDB flats as this group of property speculators are the most vulnerable in a downturn. |