Saturday, June 7, 2008

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IRs Impact on Property Price

Bulls' and bears' views on the IRs Impact on Property Price from the Singapore Property Forum:

Bull wrote:
"Wages are rising ... With inflation rents are rising ... Economic growth still strong ... Employment levels are very high ... IR opening will attract more investors and contribute to more jobs and economic growth ... All these means demand for property will be strong ... Property prices will move higher ..."

Bear wrote:
"Going forward, the scenario may change to: Oil price soar further Food price soar further Business profits fall wages and jobs fall world economy declines singapore economic growth declines further No. of tourists drop IRs no business property price ... "

Bear refuted bull:
"On: Wages are rising ...
Wages are rising for the young, old ones are retrenched or fired.

On: With inflation rents are rising ...
More and more bad living condition, lastest example is more then hundred of people in a condo unit.

On: Economic growth still strong ...
All the exports figures are dropping and they dropped more then what the analysts had expected. Where did you learn that it's strong?

On: Employment levels are very high ...
It's high for lower earning, higher earning are loosing more jobs just like US. Those newly employed won't be able to get private properties. That's the reason that hundred of people rent one condo unit

On: IR opening will attract more investors and contribute to more jobs and economic growth ... Just like Olympic and F1, signs are showing that less people are travelling due to fuel hikes. IR is targeting at foreigners and when people start to travel less, IR will be in big trouble. Luckily we didn't have the 3rd one. The travelling decline has just started so when IR is ready, the actual decline will happen.

On: All these means demand for property will be strong ...
In fact, demand has weaken, developers have started to cut price now to create demand. Price will continue to drop to continue to increase the demand.

On: Property prices will move higher ...
Private property prices are now dropping, they will only move higher when it's at the bottom again."


Bull wrote:
"went to a few property launches, the queues are long.
when IR is complete, property market will be in high demand. not surprise, there are many cash rich and asset rich individuals around."

Bear wrote:
"don't bet your last dollar on the IRs... for one thing, it can fail .. and even it does well, it'll create a lot of poor-man housing demand .. so if you really want to bet on IRs, buy HDB."

Bear wrote:
"Singapore living condition is getting worst. Travelling from point A to point B is becoming a problem to many. Higher living standard group are not going to change to public transport. Look at all the ERPs, they can only solve the problem temporary. All the rich will start to think about moving out of Singapore where land and space are sufficient and investment of properties will be getting better return. HDB will be king and private properties demands will continue to weaken. Private condo can only be rented out to hundred of foreign workers as more higher income foriegners are moving out."

Another Bear wrote:
"Agree with you. Quality of life in Singapore is diminishing quickly. Very soon we'll all be forced to travel in sardine-packed MRT and public buses. I agree with MM Lee that 6.5 million population is too dense and it'll be choked with ppl everywhere. The rich, the talented, the young and able will just go elsewhere to seek a better quality of life. The poor, the old and sick will be left here eventually. "


May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase

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