Speaking to reporters after his first official visit to the HDB Hub, MND Minister Khaw Boon Wan noted that 'pricing a flat is quite tricky as there are many factors at play', citing variables like the floor the unit is on, location and proximity to amenities like MRT stations.
But nothing can be more important than what the GOVT wants to charge for the LAND ?
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Hello
ReplyDeleteFirst of all, thanks for sharing your thoughts on this site. I've been waiting for the last few years to buy a property for my own stay in Singapore at a reasonable price. However, property prices seem to have become irrationally high. While it seems illogical to expect the market to not correct, I dont see any signs of the market correcting (perhaps due to excess liquidity in the market). I believe only policy action or an economic shock could do this now. What do you think is likely to happen in 2011 to the property market? I know the US is on a knife-edge with the likelihood of a credit rating downgrade (if not a default) and that could be the Black Swan event.
Thanks for your interest in this blog.
ReplyDeleteI had mentioned probably somewhere in this Blog or in separate email replies to those who emailed me that the overall direction of the market would be :-
(a) For private properties - to watch external economic drivers. What you just said about the US economy and US$ is very true, and I am also watching. Today's ST article [Singapore 'likely to be hit'if US defaults] which I re-posted a link in this Blog best described it.
The second driver I am keenly watching is the "China economy". I visited last year end and also last month again to have a better feel. Both property markets seem to be in the same "stupor". H/E there are unique and distinct differences in the mechanics of both markets, which I will not elaborate here.
What is causing causing this "stupor" is probably similar to after the Great Depression...it could drag sidewards for say two years starting with the LB crisis in 2009; but even lengthen due to crisis this year like the Japan Earthquake and Nuclear Leak crisis and probably the Eurozone too.
Imminently watch for the US Meeting next Thursday.QE3 etc?
Local factors will only bring about a small correction in price. Also to watch the MRT EAST and Thomson lines (station locations) for a boost in price.
(b) For HDB related properties, the prices is policy-centric after GE 2011. I expect the fate of DBSS to have impact on the lower end of the mass market condo price spectrum.
You may email for specific discussion.