Which Direction Will Property Prices Go ?

Broadwalk

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no thats last time, now is 20K+ liao including unsold and all uncompleted.

Analyst have been warning on the dwindling land bank of developers and inventory stock at all time low, they predicting the next wave of enbloc fever seen in 2017-2018 to happen soon.

i know some people have been waiting at sidelines since last year predicting a major correction in real estate but surprisingly it didnt happen, so they have been talking the market down.

Same for me i been waiting since last year, but when prices didnt correct after dec 2020 upon ending of loan repayment relief, i know cant wait anymore, visited 10+ projects and issued cheque all in 2 weeks. Sometimes we just have to accept the market reality.
Where you buy in the end?:o
 

holasingapura

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if i remember correctly, news reported government is looking at emergency legislation by 10th May so that the pain is shared more equitably across developer, main con, subcon, and buyers.

I am guessing they may offer 6mth extension to developer beyond date as stated in S&P, otherwise the pressure will go to main and sub con. This provides more breathing room and absolve them from liability of claims.

i guess government is sending the message - everyone is in it together, and everyone must share the pain
This will cause our fellow sinkie to be more upset... need to request more relief from government. :(
 

arctician

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This will cause our fellow sinkie to be more upset... need to request more relief from government. :(
I can only say, as long as one fall under middle upper class and can afford $1-2m+ pte property, leave the reliefs to marginalized segment of society who needs it more.

Govt already say mah - share the pain
 

Braun8

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resale prices all time high with some COV 80k-100k, buy resale now sell next time lose big how?

New launch condo prices all time high, buy new launch now sell next time lose big how? People buying new launch condo at the current insane prices can easily lose money when they sell the next time.

New launch condo prices are more expensive than resale HDB and many resale condos, and what's worse many buyers have to waste money renting a few years while waiting for the new condo to be built/TOP, raising their cost/loss even higher.

Back in 2018 when the poster bought his new launch condo, HDB resale prices were lower and the people buying resale HDB are for self-stay anyways.
 

Braun8

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Perhaps government can offer subsidised rental flats to help him. I believe he should be willing to accept this "relief", in the absence of "greed".

The govt didn't force him to buy an expensive new launch condo. For middle-income citizens, there are cheaper and quicker alternatives for a home like resale HDB or even some resale condos, but yet he chose to buy an expensive new launch condo. So how to sympathize his call for the govt to help due to his own private purchasing decision?

I think the best way for the govt to help is to increase the cooling measures like lowering the TDSR etc, save these middle-income citizens from blowing away their income/savings/CPF on expensive condo homes.
 

Rxgn

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psf will only go higher and higher..

maybe next time outskirts of yishun $1400psf npr $1800 / clementi $1900 psf / one north $2300 psf / bugis $2600 psf

up is the only direction.
 

TeamUSA

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psf will only go higher and higher..

maybe next time outskirts of yishun $1400psf npr $1800 / clementi $1900 psf / one north $2300 psf / bugis $2600 psf

up is the only direction.
If up and up is the only direction, this also applies to all asset classes and its better to put your money in stocks as the property markets always lags the stock market.. even the humble STI has outperformed private property index most of the past decade, let alone US stocks. There is a huge opportunity cost as property investment means you lose large amounts of liquidity - you would have lost chance to make 50%- 80% returns on capital in less than a year from the recent COVID recovery if all your cash is tied up in invstment properties .
 

Entity

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If up and up is the only direction, this also applies to all asset classes and its better to put your money in stocks as the property markets always lags the stock market.. even the humble STI has outperformed private property index most of the past decade, let alone US stocks. There is a huge opportunity cost as property investment means you lose large amounts of liquidity - you would have lost chance to make 50%- 80% returns on capital in less than a year from the recent COVID recovery if all your cash is tied up in invstment properties .
yay, found another favouring stocks asset over property, hehe. however, really no denying that those who were able to flip their new launch condo in 3 years and earn >100%, their returns would be as good as buying stocks from the Covid-19 lows. the key here however is consistency - is one able to reliably purchase a property/stocks and make consistent profits given any period..

for this i really prefer stocks over investment properties, as over the long term stocks will outperform properties
 

holasingapura

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Most sinkies are risk-adverse and have little knowledge on how to analyse stocks. So properties for them is the easiest and safest option.
 

TeamUSA

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Do you have any recent cases where investors can flip and sell witin 3 years- TOP for that kind of profit - is it still possible now with SSD and assuming you have to take a bank loan ? I know it was possible in the early 2010s but how do you do that now?

Quote:

"yay, found another favouring stocks asset over property, hehe. however, really no denying that those who were able to flip their new launch condo in 3 years and earn >100%, their returns would be as good as buying stocks from the Covid-19 lows. the key here however is consistency - is one able to reliably purchase a property/stocks and make consistent profits given any period.."
 

arctician

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If up and up is the only direction, this also applies to all asset classes and its better to put your money in stocks as the property markets always lags the stock market.. even the humble STI has outperformed private property index most of the past decade, let alone US stocks. There is a huge opportunity cost as property investment means you lose large amounts of liquidity - you would have lost chance to make 50%- 80% returns on capital in less than a year from the recent COVID recovery if all your cash is tied up in invstment properties .
for alot ppl they use real estate to balance overall investment portfolio. Do remember though stock may have outperform ppty index, there is leverage which increase your ROE on latter - unless you are using also CFD or margin financing for equities.

I calculated for a property investment with 3% gross yield and 2% annual capital gain, the return on equity is around 20-25% annualized due to leverage, which outperform the average 5-10% for stocks and 3-5% for bonds.

Neither is good or bad, diversification and balancing is key.
 

Passerboy

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yay, found another favouring stocks asset over property, hehe. however, really no denying that those who were able to flip their new launch condo in 3 years and earn >100%, their returns would be as good as buying stocks from the Covid-19 lows. the key here however is consistency - is one able to reliably purchase a property/stocks and make consistent profits given any period..

for this i really prefer stocks over investment properties, as over the long term stocks will outperform properties
I think the key is diversification. Personally, have stocks too, but liquidated a portion to divert into property investment back in 2018.
 

arctician

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I think the key is diversification. Personally, have stocks too, but liquidated a portion to divert into property investment back in 2018.
same i liquidated 70% early this year to divert into property, of course STI has went up higher since

For me its less of an investment, when one has enough, quality of life takes over financial metrics like yield and ROE
 

Rxgn

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If up and up is the only direction, this also applies to all asset classes and its better to put your money in stocks as the property markets always lags the stock market.. even the humble STI has outperformed private property index most of the past decade, let alone US stocks. There is a huge opportunity cost as property investment means you lose large amounts of liquidity - you would have lost chance to make 50%- 80% returns on capital in less than a year from the recent COVID recovery if all your cash is tied up in invstment properties .
my 50% money is in doge le, haha
 

zzzzzzz

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Notice now agents have additional line in their sales talk. Regardless whether it applies to the project or not.

"Construction costs are going up, developer cannot price any lower'.
for HDB resale listings they will say "Unit in high demand! Please have your HLE or IPA ready."
:frown:
 
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