Property Prices Have Crashed (see graph)

http://www.propertylaunch.org/PropertyNews.php

Prices are starting to cool down after very strong growth in the first Quarter.

[Hermit]

I am not a property guru but I can see that sellers are trying harder to sell now. Factory prices might come down once the cracking down on non-industrial use gets going. Will be interesting to see what kind of prices the end of the year brings.

[RealShooter]

Originally Posted by Unregistered

A layman's observations.

Arguments for a bullish property market
1) Singapore is tiny, no where to expand
2) High liquidity, due to ultra low interest rates. Likely to remain low as long as Fed keeps interest rates low (Fed pledged to keep it low until 2013)
3) Strong Singapore Dollar vs weakening USD, GBP, Euro. Rich foreign investors, may park their money in Singapore assets e.g. property. Appreciation of SGD assets vs their home currencies defends their wealth. Moreover SG property has +carry.
4) Immigration. The government is likely to continue the FT policy, or at most, moderate it a bit to appease unhappy Singaporeans. Population to continue increasing.
5) SG has a relatively stable government. Safety may be attractive to investors


Arguments for a bearish property market
1) Large bubble in recent years. Property prices increased 30% in two years, this is madness. Historically, when the market goes parabolic, its time for a correction.
2) Overpriced properties relative to income. People taking on too much debt. Unsustainable situation. Already discussed by other forumers.
3) Stock market correction and volatility. Property market lags stock market by 3-6 months. Should the stock market continue to fall, this will affect the property market. Fall in property values, will result in margin call and forced selling, driving down property prices
4) Increased supply of private properties and HDB in upcoming years 2013-2015.
5) Risk of recession. Singapore will certainly be affected by worldwide recession, if and when it occurs. FTs will return to their home countries (population drop, decreased rental yield, less renters), people will lose jobs and their ability to service housing loans + margin call will decrease property prices (forced sell).

Personally, I'm bearish. Its only a matter of When it will occur.

Best answer i have come across, makes it easy for ppl to understand from both side.Thanx.