Tuesday, September 2, 2008

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Property Buying Advice: Singapore Getting Crowded, so Property Price Unlikely to drop

I just came back from Tampines Mall and the mall was so bloody crowded and people are buying things like there's no tomorrow. The last time I came to this mall was last year. And this year's crowd is worst. I was shocked to see such a huge crowd and people buying and shopping and eating around. Just open your eyes to see. Singapore is getting more and more crowded. Its extremely unlikely property prices will drop with a growing population.

It's one thing for Singapore to get more and more crowded. It's another thing to take note of the affordability of the crowd. A wise friend once told me, "In Singapore, good food and even shopping sprees won't get you poor, but buying a property is a totally different question." Indeed, my friends who bought properties in the 90s peak are still struggling with their mortgages today.

Frankly, I also notice the crowds in shopping malls and eating places, but do you see the same crowd in property launches ? I suspect that it's because fewer people are trapped in the property bubble this time round (having learnt from the 90s boom and bust) that we still have many people with enough money (not so much though) to enjoy the little luxuries of life. I also suspect that these people know very well that these luxuries will go if they ever get themselves trapped in the property bubble. So we observe the caution prevailing in the property market.

We also see most of the crowd now settling for HDB flats as far as a chosong a roof over the head is concerned. Well, for private property price to go up, first of all, we must HDB flats prices going up at an accelerated rate first. I'm very skeptical that our economic growth now can even sustain HDB resale price increase, much more price increase for private property.

Posted at 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


danny said...

The 6.5M long term goal will not materialize before 2020. Some gahmen analyst say 2050. Population by 2011 will increase by about 6% (based on projected growths) while number of private properties units will while about 20% increased (my own estimation based on URA reports). Popn is increasing, but how much house can a PR making $2000/mth afford?

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