Property Must Crash (see graph)

property being relatively illiquid is lagged - it reacts slower to market conditions.

and being a big ticket item, u would be mortified to find your house worth 50% within a few months. hence its not a fair comparison to gauge property with property stocks. however, there is a good correlation between the prices of the two.

property market is going to be hit. the question is by how much and if.

you are a property agent or have vested interest please do not mislead those looking for advice.

just look at it logically. how many singaporeans can own more than 1 property? almost 70% owns a HDB. 30% might be owning private. how many have spare cash to buy a second property? let alone 2,3,4 or 5? and judgin by the black October that have passed..how many and how much wealth at least in paper terms have been wiped out? looking at the real economy, how are the businesses doing?

im not pouring cold water neither am i postulating a massive selloff scenario. everyone has their right to their own beliefs but being stubbornly entrenched in ones dream and desperate hopes is dangerous let alone sprouting it as worthless advice.

to #9, yes, thanks to your logic, property prices must drop by 50% in a year's time, since blue chips are now at 50% levels.
See good arguments at:
http://www.expatsingapore.com/forum/index.php/topic,47785.0.html

yeap, property prices shld drop like a stone under gravity.
Look at the sail condo apartments (next to one raffles quay) just out in market, rental is around sgd3300/mth for studio. Even at current depressed price of $1800psfx600=1080000, the yield is around 3.6%.
psf used to be around $2200-2500 just earlier this yr.
there are many sail condo apartments waiting to be rented out, but not many are biting... as expats are not coming to singapore anymore ...

Basically there is no reason to buy at current prices because when you weigh the pros and cons, you will realise that there is zero chance of prices appreicating and 100% chance of prices falling. Fall by how much is the question? With the extent of the global crisis, STI having fallen by 60%, supply from DPS buyers, pullback of expats, I would say at least 20%, realistically 40%

In any case, why buy now when ther is no upside and lots of downside.

However, it will take a bit of lag time on a combination of the below

1) When banks start to pressure those marginal cases

2) When current tenancies expire and renewed at much lower rates

3) When job retrenchment gathers steam and wages get cut for those still having jobs

Well said, realist.
Fully agree with you.

The extrapolation from 98'(100) shows a trendline adhering to annualised increase of 1.038%, the URA aggregated property index needs an adjustment of a 29% decline to bring it back to this long term trendline. Since this is the biggest pile-up of * since 1930s, I am betting a fall beyond that.

i believe property will still go down.But it will not be as bad as what all of you said.it will not go down as much as 50%.it will recover before sept 2009.All of us must look at the good sight , and everything will go well.ya,look at all the positive sight.

Of course,property prices MUST come down so that it can be readjusted to its real and correct ,honest pricing !!! Last year,manipulated false hyper inflation property prices sent tsunami waves to every property owner to jack up his property to super high unrealistic price tag on his property !!!!Ridiculously high,making Singapore one of the most expensive city in the world !!!WHO LOSE OUT IN THE END ?? Borrowing hugh sum of money from banks to invest and to speculate is a sign of great irresponsibility unto oneself !! CUT ACCORDING TO THE CLOTH YOU HAVE !!!Now with global meltdown and sudden recession looming over our heads,it is a lesson well learnt !!!DONT TAKE TO OFFENSE !!! IT IS A LESSON TO ALL OF US-- BUY ONLY WHAT WE CAN AFFORD !!!

I like those words Betty used...

Cut according to the cloth u have~~

Buy only what we can afford~~

But in these days, who will ever spare a thought to think before they commit???