Private Property Purchase

[BBCWatcher]

Mkt is finally moving up after a 4-year period.

I don't think sellers and landlords should be popping champagne corks after a whole month (wow!) with a modest price increase in one segment of the market.

For perspective, do you know what else rose in May, 2017? The U.S. S&P 500 stock index. It rose at nearly 3 times the rate (1.16%, in U.S. dollar terms, closing price on last trading day in May v. closing price on last trading day in April, excluding dividends) than the Singapore condo resale prices did during the same month (0.4% May v. April, in Singapore dollar terms).

Even when a real estate investor is "winning," he/she could be losing.

 

[kael1n83]

I don't think sellers and landlords should be popping champagne corks after a whole month (wow!) with a modest price increase in one segment of the market.

For perspective, do you know what else rose in May, 2017? The U.S. S&P 500 stock index. It rose at nearly 3 times the rate (1.16%, in U.S. dollar terms, closing price on last trading day in May v. closing price on last trading day in April, excluding dividends) than the Singapore condo resale prices did during the same month (0.4% May v. April, in Singapore dollar terms).

Even when a real estate investor is "winning," he/she could be losing.

yes.. except in your example, I think the real estate investor is winning after accounting for fx..

 

[SBC]

Kovan area is next to benefit from the recent high price.

 

[OngHuatHuat]

Do you all notice Sg interest rate went down?

 

[SBC]

Yes, in the process of re-financing my loan.

 

[henrylbh]

Just received letter to say that my loan interest has been revised from 1.73186% to 1.65506% or less by $14 per month

 

[sg_investor]

What is the reason to predict that?

Kovan area is next to benefit from the recent high price.

 

[BBCWatcher]

yes.. except in your example, I think the real estate investor is winning after accounting for fx..

Those rises are on par in Singapore dollar terms over that period.

Want another one? The Straits Times Index closed at 3175.44 on the last trading day in April. On the last trading day in May it closed at 3210.82. That's a 1.11% increase, more than double the increase of resale condos.

Property owners and landlords ought not be popping the champagne corks. Maybe they can drink a Tiger. Half a can. Once.

 

[OngHuatHuat]

I remember sti hovering around 3300 few years back.

Those rises are on par in Singapore dollar terms over that period.

Want another one? The Straits Times Index closed at 3175.44 on the last trading day in April. On the last trading day in May it closed at 3210.82. That's a 1.11% increase, more than double the increase of resale condos.

Property owners and landlords ought not be popping the champagne corks. Maybe they can drink a Tiger. Half a can. Once.

 

[OngHuatHuat]

1 usd : 1.3744 sgd.
Rising interest rate push sgd even higher.

I think they gonna drop interest rate again.

 

[BBCWatcher]

I think they gonna drop interest rate again.

The U.S. Federal Reserve just hiked interest rates hours ago (as I write this).

I remember sti hovering around 3300 few years back.

And I remember when real estate valuations in Singapore hit their all-time peak in 2013. The STI has held up better over the same interval. And compared to global stock markets, such as the U.S. stock market? No contest.

 

[OngHuatHuat]

Nope.... sgd is going too strong. I am referring to local sgd interest rate.
Initially I don't believe interest rate going down, but it indeed went down, but no newspaper publishing this even though this is quite an important news.

You are taking usd interest rate = sgd interest rate.
If sgd going too strong, interest rate goes the opposite way to bring it down. Too strong currency bad for export, best is to maintain roughly constant exchange rate of 1.35 to 1.4 sgd to 1 usd.

You do know that that index they published is skewed by central region properties right? last year they suddenly changing methodology to factor in additional discount offered by developers, so how representative of that property price index is a big question mark.

The U.S. Federal Reserve just hiked interest rates hours ago (as I write this).


And I remember when real estate valuations in Singapore hit their all-time peak in 2013. The STI has held up better over the same interval. And compared to global stock markets, such as the U.S. stock market? No contest.

 

[BBCWatcher]

Nope.... sgd is going too strong.

It's not that strong. There was about a 5 year period, recently (early 2000s), when the Singapore dollar was stronger against the U.S. dollar for the entire half decade.

 

[OngHuatHuat]

Ern, I don't look at it this way, what I meant was, USA raised interest rate since last year, but sgd has slowly creeping up... hope you get what I meant.

It's not that strong. There was about a 5 year period, recently (early 2000s), when the Singapore dollar was stronger against the U.S. dollar for the entire half decade.

 

[kael1n83]

Those rises are on par in Singapore dollar terms over that period.

Want another one? The Straits Times Index closed at 3175.44 on the last trading day in April. On the last trading day in May it closed at 3210.82. That's a 1.11% increase, more than double the increase of resale condos.

Property owners and landlords ought not be popping the champagne corks. Maybe they can drink a Tiger. Half a can. Once.

my bad, so they are on par which is not three times

good that you are now comparing assets in different currencies properly

 

[NewInvestor]

Singapore real estate prices are probably going to do better in the next few years. That's what I think anyway.

 

[OngHuatHuat]

Hello long time no see.

Singapore real estate prices are probably going to do better in the next few years. That's what I think anyway.

 

[BBCWatcher]

good that you are now comparing assets in different currencies properly

Always was/am. Please go back and look at exactly what I wrote.

 

[kael1n83]

Always was/am. Please go back and look at exactly what I wrote.

you were comparing assets in different currencies in their local terms to come to a conclusion that a real estate investor was "losing" (by 3 times) even while they are "winning"

why are you comparing in different currencies?

 

[Wood41]

Many developers with previously unsold units
are not giving discount as their leftovers got snapped up.
These will be steal buys when recently won lands / projects launched.