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Monday, 23 August 2010

The Property Bubble & Investment Trap Part II

Further to my posting and comments in this Blog on 16 August 2010, these few "good" pieces were published in TODAY on 20 Aug 2010. Read them all and my previous blog posting, you will understand and see the whole "helicopter" perspective that I am coming from and taking you there.

Despite the limited traffic to this blog, 2 persons had thanked me for my posting and comments.

It all depends on "who they are and what 'message' they want to send" in this maze ! The caption of the first piece caution what you have to do most aptly : Watch what they do, not what they say.

Where are you in the PROPERTY MAZE? Understand THEIR strategy, and see the RISKS and TRAPS before you pursue YOUR OWN strategy.

Read these pieces taken from TODAY.

(a) Watch what they do, not what they say
Link : http://www.todayonline.com/Commentary/EDC100820-0000039/Watch-what-they-do,-not-what-they-say

(b) Pushing price boundaries in private residential market
Link  :  http://www.todayonline.com/Commentary/EDC100820-0000034/Pushing-price-boundaries-in-private-residential-market

(c) New kid on the block is good news
Link   :   http://www.todayonline.com/Commentary/EDC100820-0000032/New-kid-on-the-block-is-good-news

(d) Twin Peaks of luxury
Link   :  http://www.todayonline.com/Business/Property/EDC100820-0000069/Twin-Peaks-of-luxury

(e) Sibor or SOR ? Now you can have them both
Link  :   http://www.todayonline.com/Business/EDC100820-0000062/Sibor-or-SOR?-Now-you-can-have-them-both
 

Who are those who want you to "bite" this cherry? - Developers, Banks, Real Estate Agents, Lawyers and also our Government.

Does regulating supply through the land sale programme as announced by MBT helps to stabilise price and helps to cool down the property market ? - Not when the price of EC is going to be priced at $650 to $750 psf. Not when DBSS flats are going to be priced at $550 ~ 580 psf.

Why would MBT not say this is unhealthy? He needs all these statistics to prove his HDB BTO flats are still "affordable" and not to make it any cheaper for all . If not, he needs to give more real subsidy to those who could not afford HDB BTO flats. Where will the Govt find the money? From those who buy EC or DBSS flats? But the same piece of enslaving policy is "killing" those who buys from the resale market with ever rising COV.

For now, MBT recognised that the concern is over the Cash-Over-Valuation (COV) quantum. The latest median figure is $30,000. But he stressed this had to be decided by the market and the GOVT will stay on the sidelines.

"It's in the interest of buyers to have low COVs, but it's in the interest of sellers who own the flats to have high COVs."

"So, between these two groups, we must let them fight it out. The Government is not able to settle or fix COVs to say that it should be this or this figure," he said.

"The Government prefers not to interfere. But we can interfere in the supply. This is something we can control."

But at what rippling impact on the new BTO and HDB resale markets? Chasing and propping up near to $200 psf through DBSS & EC pricing?

Read also :- The Property Bubble & Investment Trap

Reference :-
TODAY
Aug 18, 2010
An assurance to private home buyers

SINGAPORE - The Government will inject an even larger supply of private housing in its land sales programme for the first half of next year "if demand continues to be strong" - surpassing the record supply pushed out in the second half of this year.

National Development Minister Mah Bow Tan gave this assurance to prospective private home buyers in a written reply to a parliamentary question by Nominated MP Calvin Cheng.

Mr Mah's reply was released on Monday evening as the latest data from the Urban Redevelopment Authority showed a surge last month in sales of new private homes, with 1,544 units sold - almost twice the 847 units transacted in June.

For the second half of this year, the Government is making available sites that can yield about 13,900 private housing units, of which about 8,100 units will be from sites on the Confirmed List. Mr Mah pointed out that this was the largest supply the Government has offered since the land sales programme started in 1991.

As at the second quarter of this year, there were about 61,800 uncompleted private residential units in the pipeline. Of these, 32,600 units have not been sold yet.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that the oncoming supply "will slow down the rate of growth of private home prices". "But that will only also happen in some time next year. Based on recent statistics, demand for mass market homes is still very high," said Mr Mak.

4 comments:

  1. Hi there,

    Thanks for the very nice articles you wrote about the housing issues. I am bookmarking your site for future visits! Kudos to you!

    By the way, the links to the articles above seems to be broken. Any way to fix that?

    Thanks!

    ReplyDelete
  2. Hi Anon 10:43

    Sorry, I am new to using Google Documents for blogs - It works using Google account for me.

    Anyway, click "Link" or cut and paste the URL.

    ReplyDelete
  3. hi there, thank you for your advice, which is very enlightening.

    Would you have any suggestion for a genuine first tme property buyer then? Assuming that I have about 1 year time frame to look for a place?

    ReplyDelete
  4. Hi Anon 15:37

    I have no info on what property you are after. You may contact me by the email link in my profile if you like, be assured I am not an agent...if there is anything I can share, I will.

    ReplyDelete