Wednesday, September 12, 2007
About this Blog
93% of HDB households own their flats and 88% of private residential households own their properties.
So why are Singaporeans still paying sky-high price for property?
The simple answer is that: They don't have to.
Then why are they doing it? Namely, kiasu.
(Have something to say about this? Click here.)
In a nutshell, the property market in Singapore is strong fuelled by sentiment, rather than fundamental. Hence, any down turn in sentiment is enough to send prices plunging.
(Have something to say about this? Click here.)
Take for instance the resale market between 2004 and 2006, despite continuous economic growth ( a positive fundamental), the negative sentiment continues to drag prices down in the suburbs even though prices at the high end market has already soared (another positive fundamental). The sales volume remained the miserable few hundreds during this period. Sellers got really pessimistic and were selling their properties practically at half price.
(Have something to say about this? Click here.)
Yet, there were so few buyers. When this market segment finally caught up with the property boom in early 2007, buyers suddenly swam in to chase the price to an insane level. By middle of 2007, prices have gone up as much as 50%. Surely the need for home couldn't have changed so drastically in a year.
(Have something to say about this? Click here.)
Perhaps, it all started with the media reports about the millions that enbloc sellers are pocketing. Then friends and relatives are boasting about the good money they've made from their properties. Can one help being envious? Envy soon turns into impatience, and impatience into bad judgment, and bad judgement can cost one's life earnings and more...
(Have something to say about this? Click here.)
Why are Singaporeans paying sky-high prices for property?
According to the Household Expenditure Survey 2003 (www.singstat.gov.sg/pubn/papers/people/op-s9.pdf):93% of HDB households own their flats and 88% of private residential households own their properties.
So why are Singaporeans still paying sky-high price for property?
The simple answer is that: They don't have to.
Then why are they doing it? Namely, kiasu.
(Have something to say about this? Click here.)
In a nutshell, the property market in Singapore is strong fuelled by sentiment, rather than fundamental. Hence, any down turn in sentiment is enough to send prices plunging.
(Have something to say about this? Click here.)
Take for instance the resale market between 2004 and 2006, despite continuous economic growth ( a positive fundamental), the negative sentiment continues to drag prices down in the suburbs even though prices at the high end market has already soared (another positive fundamental). The sales volume remained the miserable few hundreds during this period. Sellers got really pessimistic and were selling their properties practically at half price.
(Have something to say about this? Click here.)
Yet, there were so few buyers. When this market segment finally caught up with the property boom in early 2007, buyers suddenly swam in to chase the price to an insane level. By middle of 2007, prices have gone up as much as 50%. Surely the need for home couldn't have changed so drastically in a year.
(Have something to say about this? Click here.)
Perhaps, it all started with the media reports about the millions that enbloc sellers are pocketing. Then friends and relatives are boasting about the good money they've made from their properties. Can one help being envious? Envy soon turns into impatience, and impatience into bad judgment, and bad judgement can cost one's life earnings and more...
(Have something to say about this? Click here.)
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Dear visitors:
Your comments are most welcome!
The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.
Smart Buyer :)