Property Prices Must Plunge (graph included)

so now its not a good time to buy a house rite? i know im defint being stupid to buy it now, heard many people sayin prices will go down soon.

Appreciate if any Property Gurus to share some thoughts on property outcome in next 6 mths to one year?

I just met an agent and was told within next 6mths will be the best time to get a FH landed property. Despite all the noises, landed property in Singapore still command a premium price and will continue to increase !!!

Any views on that ? Thanks.

I'm no guru, but I think ppty prices will fall further (if they have been falling already). And don't trust agents. It's always in their interest to transact. They'll say anything to make you buy / sell. Don't believe me? Randomly call up 10 agents- all will tell you it's a good time to buy NOW.

Thanks for the headsup info. No hurry...can afford to wait for further Lao Sai price if property continue to slip downwards.

Cheers

Those that are in need for a residential property, buy now. Those looking for investment property can adopt the wait and see attitude. It's highly unlikely for prices to crash for the next 2-3 years. Prices may not climb but will at least hold. One reason is there is a constant influx of foreigners coming to our country to work. Rental is easy and good money. Sellers who cannot sell at high price can rent out a 2 year lease today and forget about selling for the next 2 years. And with the new rulings for HDB being able to rent out after just only 3-5 years, sellers can simply also rent out the HDB and stay with parents/friends/relative during down time and wait for the boom the sell.

You see it is a 2 sided affair. Both buyers and sellers can hold. This time round, i think sellers have the upper hand. And i agree that the past is different from today. Last time HDB can only rent out after 10-15 years, now it's faster. Rental is a big decisive factor. As long as it can cover the monthly loan mortagage, sellers can hold for 10 years they don't care.

Maybe one indicator when prices will start to fall is when companies start retrenching people. Foreigners go back to their countries, locals hang on dearly to their jobs with fear, demand starts to drop, prices will follow.

With the casino opening up in 2-3 years time, big scale retrenchment is highly unlikely. No retrenchment means people still have to work here. Have to work here means must have a house to stay. Therefore either must rent or buy. Conclusion, prices will NOT drop significantly. If you can wait > 5 years then wait, else buy.

One more point to note is that the many advertisements for sub sale units are advertised by agents at the agent's cost. The agents try to pursuade the sellers to let them try to sell. But at the sellers end it's like, "I will only sell at this price. You want to try, go ahead. Anything below this price I will not sell. When my installment kicks in I will just rent it out".

Low transaction numbers means sellers are not willing to sell, not because they cannot sell.

Final note. Hotel rates and occupancy rates are a good indicator. Right now they are having a super boom time. If hotels are always fully booked and charging record rates, what makes you think property prices and rental will drop? Very unlikely.

When hotels are struggling to fill its rooms and slashing prices drastically, it's time to go in and buy.

wait and wait, you made some excellent points. I think it all depends on the economy. If US enters a prolonged downturn, which is getting more likely as we speak, all the worst case scenarios you described will become a reality.
So, for investor-sellers sitting on profits, my advice is not to be too greedy and sell now - even at a lower price than the peak - and keep your comfortable profits in your pocket first.
You never know what's gonna come. Things are getting more and more unpredictable.

I am one who sold amid the uncertainty to book in my profit. Yes, it s grid lock between sellers and buyers now with the latter being able to hold out because they are sitting on profits and have good rental yields. But to me what's 100% certain is that supply (both for purchase and for rental) are increasing and will continue to increase. That you cannot stop from coming on the market. What I am uncertain about is demand. Yes I know the IR, population increase etc will created demand for housing - but i dont think anyone can say for certain to what degree as it depends also on a confluence of external factors at that point. If I am wrong, prices will consolidate with supply & demand off setting over the next 24 months. Plenty of time to jump back in again. If I am right, prices here are set for a move back to Q1 2007 levels - which in some cases is 50% from their peak in Q3/Q4 2007 ie to give up the run up during this period.