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Old 27-07-2019, 08:12 AM   #1367
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PostCountWarrior[+1]'s Avatar
Join Date: Jul 2008
Posts: 21,943
My Guess:
1) Getting used to it:
When new CMs was initially imposed, it just a matter of time for buyers to get used to it. So initially, u will see a period of tug of war between the buyers and sellers/Developers. (Also known as Knee jerk effect). But that does not mean all quit buying. Mindset takes time to change and adjust. In our Long chain of CMs imposed, did we see any major price correction so far?

2) human are forgetful and kiasu animals:
Didnít we all learn from 2013 CM when TDSR and 7%ABSD was imposed? I always thought thatís the Mother of all CMs and would put the last nail into the property coffin. Never did I expect people are still buying with 7%ABSD, queuing up overnight at PC, RF and Stirling, thinking that they will get a good deal before 12%ABSD kicks in.

3) Genuine young home buyers:
Of course we canít dispute there are such group buying for self stay.
Many singles I knew enjoys privacy and move out from parents. Instead of splurging money on depreciating items such as buying luxury cars or other luxury items, wouldnít it be more practical to invest on something that has possibility of appreciating?

4) HDB upgraders:
Just like the American dreams, buying property is singaporeanís Dream. Itís already in our DNA. Many Singaporean aspired to upgrade from HDB to condos. Many felt that since they are already Working so hard, donít they deserve some changes in life? Anyway, we only live once. Of course, this point is rather subjective. Different folks, different strokes. Some wants to be loan free as early as possible.

5) leveraging
Besides buying property, no other forms of investment mechanisms can get you a loan as high as you can get from bank. Many believes itís the best way to hedge inflation rather than letting money rot in bank.

Trying to understand from the psychological angle rather than just looking at the logical aspects probably will help u understand better why people are still buying. Recently, 3 of my ex colleagues just called me up to ask me details on decoupling as they all have fully paid off their property. All intend to buy their second.

People like me or those who are Long enough in property are not buying now has our own reason and rationale. But I know one person cannot talk up or talk down the property market. It is driven by public sentiments.
nice post but i think sentiment is fluid. if you wrote this between 2000 to 2004 people will laugh at you.
Bill Gates: "If youíre born poor, itís not your mistake. But if you die poor, itís your mistake."
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