When a country registers a 15 percent growth rate, as Singapore did last year, there is bound to be a lot of the feel good factor going around. And Singapore's housing market is cashing in on this big time -- prices have rebounded 50 percent in just two years, according to the Urban Redevelopment Authority, and cooling measures by the government have done little to calm them.
At a recent real estate conference organized by National University of Singapore, which explored the theme "Will the boom never end," Chua Chor Hoon, Head of South East Asia Research at property consultancy DTZ, said the Singapore residential market is not likely to decline much because of strong economic growth, but she also outlined a worst-case scenario, which could unfold as early as 2013-2014. "If all the ingredients come together it will make a perfect storm."
These ingredients include falling demand, more supply and higher interest rates all kicking in together.....
This article first appeared on CNBC.com on 29 May 2011.
Posts
We do not even need all three together to create a multi years correction. Falling demand, more supply and worsening unemployment and just the recognition that housing is not an investment will lead to it. The much higher interest rate which might not occur so fast as the US interest rate will likely increase much faster only after 2015 will be the missile that sink any possible recovery. The last two great property bubbles in Australia and Canada are starting to deflate.
ReplyDeleteAustralia: http://macrobusiness.com.au/2011/05/sqms-bear-maul/
Canada : http://www.greaterfool.ca/2011/05/page/2/
Now only left China, HK, Taiwan and Singapore.