NiShiZhu
Banned
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- Jan 27, 2005
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You mention inflation, but it is a serious problem for the government when our private property inflation rates exceeds growth in real wages by multiples. My view back then was that the initial rounds of cooling measures in 2010-2013 did not go far enough. The latest round of cooling measures is closer to the level of measures needed to rein-in a runaway property market. You can be sure if prices head for another 5% plus increase in less than a year, the government will definitely step in yet again and you don't want to be stuck with a property investment you cannot liquidate at a good price. In this regulatory environment, you need a lot of holding power if you are buying for capital appreciation and cannot depend on rental yield to cover your mortgage buying at today's prices.
Thanks for sharing your thoughts. Perhaps I wld like to share mine as well.
When govt first introduce CMs betw 2010-2013, they have to do it gradually and cannot straight away go too hard, too fast or go overboard becos it will have a lot of negative impact on property price. If go too hard, property price may crash overnight and those who buy during peak will immediately dio marginal call from bank. This is not what govt wants. They want to curb, not to exterminate.
I always like to think TDSR is the Mother of all CMs, the rest are just side kicks, even ABSD.
While you may think property price inflation rate exceed real wage by multiple, then may I pose a question back to u? Has our TDSR lost its effectiveness? How come so many pple’s loan still get approved when they bought at high price? Does that mean these pple have over leveraged and TDSR has failed as a good scrutiny tool?
Share with u something interesting.
Back in 2017, My Property Agent showed me 5 cheques he collected from his prospective buyers in a very hot project launched in 2017. Out of these 5 Cheques, 4 of them are 2nd property buyers. I’m perplexed and was wondering why so many pple so stupid and dun mind paying 7% ABSD.
Until when I Look at July 2018 CM, over 1k unit sold over one night just becos most buyers want to avoid 12% ABSD. To Them, paying 7% ABSD seems like a steal. Haha.
Look at the article reports on treasure now, some buyers are even prepared to pay 12% ABSD for the treasure. Very scary and crazy right? Lol.
One of the edwmers aphel14 had already summarized and pointed out the favourable conditions (in Singapore) explaining why property investment still remains as one of the popular investment proposition in Singapore.
Yes, nothing is sure win, but As Long as there’s enough liquidity/cash circulating in the market, the buying sentiments will still continues, though not as rampant as it used to be in the past. Thanks to our CMs.
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