Sunday, August 17, 2008

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Impact of Inflation: Is increase buiding costs a good reason that private property price will continue to rise ?

Bull wrote:
all property owners dont worry if you are keeping your property for the long term ... any price fall will rise ... with rising construction costs property prices will eventually rise ... anyway the good news is dont expect prices to fall much as spore's growth is good ... prices will in fact start to rise gradually ... the bears who now have lots of cash will eventually pay current or higher prices ... i know cos i'm a seasoned investor ...

Bear wrote:
Bulls are like typical gamblers. They always tell themselves "Sure Win!" but they'll lose. Because the odds are against them. They're betting their last dollar on the IRs. Why should IRs cause property price to shoot? They don't know. They just listen to the developers, the property agents singing the song, and they jump in... That's the way the bulls are... Buyers, prices don't drop, then don't buy! Don't ever become a slave to your condo. Buyers don't buy, price must drop! Buyers you're very close to a market crash. Read the signs!!!! The whole world is going to go into a recession and this little red dot cannot be spared. Listen to the govt. Prepare yourself for a downturn. Let the bulls eat their own bullshits. Those who need a home, buy with subsidy from HDB at just $1xx psf to $2xx psf. Bears who have lot of cash can put it in many other places. Even leaving it in CPF will get you 2.5%. Rental yield is now 2% at developers' current price and sure to go down as expat go home and more supply come on stream. Think of the risk that come with your mortgage. Learn from those ppl who bought properties in the 90s who also thought they sure win but till today, still bleeding.

Bull wrote:
Cloth, food, accomodation and travel. These are what needed by any people. There are some pressure right now for private properties due to the sentiment and confidence of the people. Mass market is still healthy and Liva and Clover by the Park are good examples that people are still buying. Price won't fall that fast also and it will be a long wait. For those who are wating. Enjoy your long wait. 2-3 years are not that long.

Bear wrote:
People need cloth but Gucci and Prada are not necessities. People need food but eating in restaurant is not a necessity. People need accomodation but condo is not a necessity .... Private property price have surged suddenly last year, partly because of sudden influx of foreign workers, partly because of speculation. We'll be seeing a reversal now. The reversal will cause a drop in demand (maybe back to 2006). Supply is definitely increasing. This is not sentiment. It has real impact on the property market. When news report said good response for Livia, Clover etc ... verfty with URA data: Livia 21/1822. transacted,Clove 122/616... Good response? Ya .. developers will say not launch but why not launch, because no takers... don't ever pay attention to all the "talk big" from the developers .. see through all their bluffs .. Price will fall fast or not, it's not for you or me to say, but how fast the economy declines which looks really fast if you're paying attention to what have happened quickly all over the world. Which is worse, dont buy now and wait or buy now and start worrying about your mortgage? Anyway, even a bull like you admitted that price will fall, sure it makes sense to wait if you can wait. I can wait. 2 or 3 years no problem at all. But looking at the global economy is deteriorting, I don't think one will even have to for 1 year.

Bull wrote:
Singapore is so Stable, why worry about the mortgage? Unless you don't do your job well. Singapore is still growing except that it's slower, the economy is not crashed. You are one of ancient guy who worries that the sky will fall.

Bear wrote:
You are not paying attention to what your leaders are saying: expect job loss lah..retrenchment is because of poor business not whether you work hard or not ... aiya ... you just want to brush away all the bad news because you've no choice lah .. but if you're not in it yet, you'd also wait given the current condition ... pity you lah...

Extracted from the Singapore Property Forum

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


Anonymous said...

Visited LIVIA showflat last week. Was told by agent tht abt 200+ out of 700+ unit has been sold. All 2-bedroom unit sold out (which make up the majority of tht 200+). Now only left with 3-bedroom onwards, which is selling at very slow rate. 3-bedroom starting at $800k. 4-bedroom min $1 million.

Smart Buyer said...

Dear Anonymous,
Thanks for your comment.

If the agent is accurate, then Livia would be about 1/3 sold. To the best of my knowledge, projects need to be about 2/3 sold to breakeven.

According to URA data for Livia: caveats lodged=21, median price=$671 psf, total units =724. There's probably delay in the data.

Personally, I'm not at looking Livia and have not visited the showflat.

Best wishes to you.

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