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Singapore’s Property Glut Could Take Years to Clear

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Old 09-12-2019, 12:05 PM   #1
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Singapore’s Property Glut Could Take Years to Clear

https://www.bloomberg.com/news/artic...d=premium-asia

What goes up must come down. And it is about time.... economy is sluggish and prices are at levels that stretches the limit of affordability.
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Old 09-12-2019, 12:33 PM   #2
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Look at holland village residences
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Old 09-12-2019, 01:38 PM   #3
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The sudden 10 fold spike in en-bloc sales is scary. Property going to be dead money for the next few years again, I think those who bought at the 2013 peak no chance to breakeven any time soon.
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Old 09-12-2019, 01:53 PM   #4
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The article says it may take 4 years for the glut to clear. 4 years will be over like a flash.

Many stock markets are also at an all time high.

If u don't invest invest in stocks or properties, then what do you do with your money? Invest in all time high bonds? Lol.
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Old 09-12-2019, 01:57 PM   #5
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The article says it may take 4 years for the glut to clear. 4 years will be over like a flash.

Many stock markets are also at an all time high.

If u don't invest invest in stocks or properties, then what do you do with your money? Invest in all time high bonds? Lol.
Invested in diversified global stock funds and will continue to do so.
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Old 09-12-2019, 02:11 PM   #6
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Invested in diversified global stock funds and will continue to do so.

Well done!
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Old 09-12-2019, 02:45 PM   #7
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The article says it may take 4 years for the glut to clear. 4 years will be over like a flash.

Many stock markets are also at an all time high.

If u don't invest invest in stocks or properties, then what do you do with your money? Invest in all time high bonds? Lol.
Not the same... many of these buyers would need to borrow to buy a property. The consideration cannot be the same for stock market where one, save a few who speculates on margin, would only invest with surplus funds.

Singapore has seen such glut before and it has depressed the housing market - once prices start trending down, it would take a much longer time to clear any surpluses.... eg half of the existing surplus gets cleared but when prices start heading down, the other half would take a much longer time to clear - it would not be prorated 2 years and 2 years. And many of the late entrants would be sitting on negative equity.

A hike in interest rates would be all it needs to burst the asset bubble across bonds, equity and property.... right now we just have too much liquidity in the system.
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Old 09-12-2019, 03:31 PM   #8
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In the Long run property will only head upwards especially in a stable and progressing Singapore.
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Old 09-12-2019, 04:21 PM   #9
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In the Long run property will only head upwards especially in a stable and progressing Singapore.
There are always two sides to a coin.... Tell that to the one who is suffering from negative equity... especially those who bought prior to 97 crisis at high prices... during a crisis, and when one loses his job, he would not be able to hold on to his expensive property long enough to outlast the cycle. Conversely, I have also seen those who bought during the 97 crisis and SARs and have been laughing their way to the bank.
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Old 10-12-2019, 06:26 PM   #10
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they keep saying glut but newspaper everytime showing showrooms that are packed like sardines and selling like hot cake. which one fake news?
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Old 10-12-2019, 09:23 PM   #11
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they keep saying glut but newspaper everytime showing showrooms that are packed like sardines and selling like hot cake. which one fake news?
You don't have to go looking for meaningless anecdotes. Reasonably reliable national statistics are available. I pay particular attention to the rental index which remains soft at present (i.e. it's an attractive market for tenants).
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Old 10-12-2019, 09:53 PM   #12
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they keep saying glut but newspaper everytime showing showrooms that are packed like sardines and selling like hot cake. which one fake news?
Selectively reporting, some projects are very popular while others are not. Overall too many units in the market so likely will drag down the price of those less popular one.
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Old 10-12-2019, 10:14 PM   #13
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Stock price actions also very weak now and dividend yield at historical lows, people should consider to sell stocks and buy back later?

You don't have to go looking for meaningless anecdotes. Reasonably reliable national statistics are available. I pay particular attention to the rental index which remains soft at present (i.e. it's an attractive market for tenants).
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Old 10-12-2019, 10:37 PM   #14
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Stock price actions also very weak now and dividend yield at historical lows, people should consider to sell stocks and buy back later?
What does "stock price actions also very weak now" mean?

Nominal dividend yields are not quite at historic lows. To the extent dividend yields are indicative of anything, they're more meaningful expressed as real yields. Real dividend yields are rather farther away from historic lows. And who cares about dividend yields per se? Total net real returns are what matter to investors. Lots of companies seem to prioritize share buybacks over dividend distributions these days. Both are valid ways to distribute earnings to shareholders, assuming distribution makes sense. (Often it's better for the company to reinvest earnings to grow the business if there are worthy investments to make.)
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Old 10-12-2019, 10:55 PM   #15
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Anyone waiting at the sideline for years to buy on the low?
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