Property Prices Have Crashed (see graph)

As long as interest rates are low, property will be safe.

Times have changed. Low interest is the new norm.

Originally Posted by Unregistered

As long as interest rates are low, property will be safe.

Times have changed. Low interest is the new norm.

That's what they all say. "This time is different" and "[ ] is the new norm" are famous last words.

i.e.

In the dot-com crash: People believed that this was the new economy, the right metric is no longer price to earnings but price to revenues, then price to eyeballs ... then the dot com era crashed.

US Housing crash: From 1970s to 2005, US housing prices have increased by 9% p.a., on average, and there has never been a sustained downturn in housing prices. This is a more sustained scenario than we have seen in Singapore. In fact, the rating agencies' rating model prior to 2006 did not even contemplate a worst scenario where housing prices go down. That didn't stop housing prices from falling over 50% in many parts of the US in 2007-2009.

+++

Saying "this is the new norm" is a senseless statement, and the author is simply begging to be proven wrong. And the baffling thing is that people still have the gall to write stuff like that when it is a position that has repeatedly been disproven over many many cycles, many many asset classes, in many many countries.

Did you just say US housing boomed continuously from 1970 to 2005? That's 35 years! I can say it was the new norm and the crash was just a blip, depending on how you look at it.

As with all investments, one must know when to exit. Just don't be the greatest fool holding the baby when the music stops.

With US maintaining low interests for the forseeable future, asset inflation will continue in the new economies. A smple strategy to exploit this situation is to buy now and sell in 2 years, but caveat emptor.

Originally Posted by Unregistered

As long as interest rates are low, property will be safe.

Times have changed. Low interest is the new norm.

SIBOR has been creeping up. The tide is changing ... more people are switching to fixed rates. i think the property prices will be affected...

With additional buyer stamp duty of 10% for foreign buyers, could it be the start of the property crash?

Originally Posted by Unregistered

With additional buyer stamp duty of 10% for foreign buyers, could it be the start of the property crash?

The 1998 crash was partly triggered by government cooling measures.

Either you crash it now and have a hard landing, or crash it later with an even harder landing.

Stuck between a rock and a hard place, the choice is to take bitter medicine now.

Additional Buyer’s Stamp Duty Calculator | Salary.sg - Your Salary in Singapore

Cooling Measure 5
December 2011: Additional Buyer's Stamp Duty of 10% for foreigners; 3% for PRs purchasing 2nd and subsequent residential property and 3% for Singaporeans purchasing 3rd and subsequent residential property.

With additional buyer stamp duty of 10% for foreign buyers, could it be the start of the property crash?

Cooling Measure 4
January 2011: Loan to Valuation limit reduced to 60%. Seller's stamp duty rates and period raised dramatically to 16% if you sell it within the first year of purchase, 12% within 2 years, 8% within 3 years and 4% within 4 years.

With loan limit reduced to 60% and seller's stamp duty raised to 16/12/8/4%, could it be the start of the property crash?

Cooling Measure 3
August 2010: Increase in the holding period for the imposition of seller's stamp duty from the current one year to three years. Property buyers who have more than one outstanding loan can only take a 70% loan on their new purchase.

With increase in holding period and loan limits reduced to 70%, could it be the start of the property crash?

Cooling Measure 2
February 2010: Seller's stamp duty introduced and loan limits reduced to 80%.

With introduction of seller's stamp duty and loan limits reduced to 80%, could it be the start of the property crash?

Cooling Measure 1
September 2009: Govt restarting the confirmed list for the government land sales, not extending the Jan 2009 budget assistance measures for the property market and removing the Interest Absorption Scheme.

With the restarting of the confirmed list and removal of interest absorption scheme, could it be the start of the property crash?

A lot of Singaporeans are not happy with sky-high properties prices as they are priced out from the market.
If property prices still go higher, government will keep implement cooling measure 6,7,8,9,10. We will cheer for more such measures, hurray!

Originally Posted by Unregistered

Cooling Measure 5
December 2011: Additional Buyer's Stamp Duty of 10% for foreigners; 3% for PRs purchasing 2nd and subsequent residential property and 3% for Singaporeans purchasing 3rd and subsequent residential property.



Cooling Measure 4
January 2011: Loan to Valuation limit reduced to 60%. Seller's stamp duty rates and period raised dramatically to 16% if you sell it within the first year of purchase, 12% within 2 years, 8% within 3 years and 4% within 4 years.



Cooling Measure 3
August 2010: Increase in the holding period for the imposition of seller's stamp duty from the current one year to three years. Property buyers who have more than one outstanding loan can only take a 70% loan on their new purchase.



Cooling Measure 2
February 2010: Seller's stamp duty introduced and loan limits reduced to 80%.



Cooling Measure 1
September 2009: Govt restarting the confirmed list for the government land sales, not extending the Jan 2009 budget assistance measures for the property market and removing the Interest Absorption Scheme.

Originally Posted by Unregistered

A lot of Singaporeans are not happy with sky-high properties prices as they are priced out from the market.
If property prices still go higher, government will keep implement cooling measure 6,7,8,9,10. We will cheer for more such measures, hurray!

Cars and properties are beyond the reach of most Singaporeans. They will just be a rat and slog their whole lives to live in pigeon holes and take crowded public transport.

Vote wisely in the next election. WP has 20-30 years to build better lives before they become another PAP.

Originally Posted by Unregistered

Cars and properties are beyond the reach of most Singaporeans. They will just be a rat and slog their whole lives to live in pigeon holes and take crowded public transport.

Vote wisely in the next election. WP has 20-30 years to build better lives before they become another PAP.

What makes you think WP can do a better job than PAP?