tag:blogger.com,1999:blog-33699136737063143652024-03-13T21:51:14.293+08:00For Prudent Investors & Home BuyersUnknownnoreply@blogger.comBlogger384125tag:blogger.com,1999:blog-3369913673706314365.post-64835619045228825792009-02-20T17:33:00.001+08:002009-02-20T17:36:47.922+08:00Alexis at Alexandra sold out?Property agents said Alexis@Alexandra was sold out within 3 days. The following are responses from forumers.<br /><br />SmallTimer said:<br />"isit? can quote any report? i just got sms from agent that it is 80% sold so what is the latest? at first i laugh at the email from agent that markets this project saying that the value will appreciate by 2011 (TOP time) and rental can yield 5% .... i was wondering who the hell will believe all this bullshit. but i was wrong ... there are apparently a lot of people that take thing pretty much as the email says and dive into buying. good luck for them. me, i would rather miss the boat keep my cash then buying such over-priced property. "<br /><br />Commentor#2 said:<br />"c'mon, common sense tells me that if the take up rate is so good, the paper will splash out immediately or at most the next day like the Caspian. I read the paper every day and till now did not see anything at all. Action speaks louder than Words, ALWAYS. <br /><br />You are not sensibly talking but blatantly lying. <br /><br />Actually I hope you are telling the truth because it is more of a Good News than Bad. Those Bullshitter, you think yourself, I am not going to explain why. "<br /><br />Extracted from the <a href="http://property.utalkitalk.com/viewtopic.php?t=726&postdays=0&postorder=asc&start=20" target="_blank">Singapore Property Forum</a>.<br /><br /><br />May also want to read:<br /><small><a href="http://smartpropertybuyer.blogspot.com/2008/09/99-leasehold-property-calculation-of.html">99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/02/major-events-that-impact-singapore.html">Spore Property History 1960-2008</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/10/property-investment-tip-dont-put-all.html">Property Investment Tip: Don't put all your eggs in one basket</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/07/hdb-resales-price-may-surpass-1996-peak.html">HDB Resale Price Index 1990-2008: Graph & Chart</a></small><div class="blogger-post-footer"><script type="text/javascript"><!--
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HDB flat price also more than half million..how to live" <br /><br /><strong>Anonymous wrote:</strong> <br />"my guess is this going to be like Livia, only hot during initial launch and then sale die again..80 units out of 712 units is only about 10%.. nothing to hoohah about!" <br /><br />Above comments on Caspan sale are extracted from the <a href="http://property.utalkitalk.com/viewtopic.php?t=5&postdays=0&postorder=asc&start=12600" target="_blank">Singapore Property Forum</a>. <br /><br /><strong>News report: Business Times - 7 Feb 2009</strong><br /><h2>Frasers Centrepoint brings cheer to market with sale of 80 units at Caspian’s preview at $580psf </h2><br /><br />THE year’s first major release of a private housing project has shown that there’s still demand for projects priced attractively. Frasers Centrepoint had sold close to 80 units at its Caspian condo near Jurong Lake by late last night, the company’s CEO, Lim Ee Seng, told BT. <br /><br />About 70 per cent of buyers are estimated to be HDB upgraders; the rest had private addresses. Singaporeans accounted for more than 85 per cent of buyers. Only a fifth of the buyers so far have opted for the interest absorption scheme offered by the developer. This means that they pay 3 per cent higher for their units. <br /><br />The project is priced at $580 per square foot (psf) on average for buyers who opt for normal progress payment. <br /><br />Property market watchers expect sales in the 99-year-leasehold condo next to Lakeside MRT Station to pick up steadily over the weekend. <br /><br />Frasers Centrepoint had meant to open its showflat for sales to staff on Thursday, but decided to start selling in the evening to other buyers who had started gathering outside. The average price of $580 psf - or $598 psf for those who opt for interest absorption - is for the 250 units being marketed in the first phase. <br /><br />Knight Frank executive director Peter Ow, whose firm is not involved with marketing the project, said: ‘The response is very encouraging in today’s market. It goes to show that there’s still demand in the market, as long as the project is priced attractively. Those who want the location will buy. I believe buyers would be buying predominantly for owner occupation.’ <br /><br />The 712-unit Caspian is being built next to LakeHolmz, an earlier condo by Frasers Centrepoint that was completed about four years ago. Units in LakeHolmz are going for about $600 psf on average in the resale market, while further away, units at The Lakeshore, which was completed more recently, are fetching an average price of around $750 psf. <br /><br />Frasers Centrepoint indicated that 80 per cent of the Caspian units sold are two and three-bedders. <br /><br />A strong draw of the project is its location in the Jurong Lakeside District, for which the government has big growth plans as a unique destination for business and leisure, and a vibrant regional centre serving the west region of Singapore. The project’s location next to Lakeside MRT Station will also receive a boost from the extension of the East-West MRT Line with the opening of new stations this month. <br /><br />Frasers Centrepoint’s Mr Lim said: ‘We’re happy with the positive response generated by Caspian, which will hopefully create some impetus to the otherwise sluggish market. <br /><br />‘We did a thorough market research and survey, which resulted in a substantial number of potential buyers indicating firm interest within a certain price range. We then launched below this price range to further boost the demand.’ <br /><br />He did not indicate what the surveyed average price range was, but BT understands that it was in the low to mid-$600 psf range. <br /><br /> <br /><br />May also want to read:<br /><small><a href="http://smartpropertybuyer.blogspot.com/2008/09/99-leasehold-property-calculation-of.html">99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/02/major-events-that-impact-singapore.html">Spore Property History 1960-2008</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/10/property-investment-tip-dont-put-all.html">Property Investment Tip: Don't put all your eggs in one basket</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/07/hdb-resales-price-may-surpass-1996-peak.html">HDB Resale Price Index 1990-2008: Graph & Chart</a></small><div class="blogger-post-footer"><script type="text/javascript"><!--
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No land plots have changed hands for months, new launches have slowed to a trickle - and yet buyers are still not biting. Property ads have dried up and showflats are starting to resemble ghost towns. <br /><br /><h2>Property hunters' one reason for not buying: Home prices are still too high</h2><br />When sales came to a standstill this year, developers blamed the financial crisis and government policy actions, such as the removal of the deferred payment scheme. But house hunters pointed to just one reason: Home prices are still too high. <br /><br /><h2>Private property sales 18-yr low but price drop still small</h2><br />The economy has shrunk for the first time since 2001, mass retrenchments are on the cards, and monthly sales of new homes have plummeted so much that experts warn total sales this year could reach an 18-year low. Yet private home prices - at least according to the Urban Redevelopment Authority’s (URA) price index - have not dropped by much. <br /><br />In the third quarter, the URA’s price data registered a fall of 2.3% from the second quarter, after rising about 4% in the first half of the year. This means prices in September were still higher than in January. <br /><br />Anecdotally, analysts estimate that prices in the fourth quarter fell by up to 20% in some developments. But prices jumped so much in the recent upturn - 31% last year alone - that even if the URA’s index does log an unlikely 20% drop this quarter, prices at year-end would still be higher than at the start of last year, and far above the pre-boom levels in 2005. <br /><br />Not all developers can cut prices for their projects without incurring big losses, especially those who bought plots at the peak of the boom last year. But developers who were canny enough to pick up land at the trough of the market have plenty of room to manoeuvre. <br /><br />One example is CapitaLand’s Latitude condominium at Jalan Mutiara. The developer bought the site for about $500 per sq ft (psf) in 2005 and sold units up to last month at $2,400 to $2,500 psf. <br /><br />But down the road, Mutiara View is going for under $1,200 psf, while across the street, the new boutique condo RV Suites has been sold for $1,300 to $1,400 psf. According to agents, CapitaLand has quietly lowered prices recently to $2,000 to $2,100 psf. <br /><br />Hong Leong’s Aalto along Meyer Road is another example. The site was bought for about $410 psf in 2005, but units were sold for well over $2,000 psf last year and this year. No new units have been sold since May, according to URA data. <br /><br />To be sure, there are valid reasons for developers not to cut prices. <br /><br />For one thing, selling homes at lower prices could result in a fall in the valuations of their properties, which could in turn hurt their balance sheets and make it more difficult for them to raise funds in an already tight credit market. And some argue that slashing prices could also set off a price war. <br /><br /><h2>see-who-blinks-first game is in favour of buyers</h2><br />But there are also compelling reasons to start lowering prices. Key among them is that the see-who-blinks-first game is clearly turning in favour of buyers. Prices are already falling, pushed down by smaller developers squeezed for cash and individual home sellers anxious to offload their units. <br /><br />A boutique condominium in the Novena area reportedly gave significant discounts - from over $1,300 psf down to just under $1,000 psf - after the financial crisis hit hard in October. At soon-to-be-completed developments such as City Square Residences in Kitchener Road, prices have fallen from a high of over $1,000 psf last year to less than $800 psf for some units in recent months. <br /><br /><h2>Lowering prices will bring buyers back into the market</h2><br />Developers have said for months that they will maintain prices and ride out the storm. But the situation is set to worsen sharply for sellers as the economy contracts sharply. Even developers who can hold out are likely to find their property valuations hit anyway as prices come down throughout the market. <br /><br />Lowering prices will bring buyers back into the market. Many have been waiting on the sidelines since early last year, when prices starting shooting up beyond their means. <br /><br />Evania, a 35-unit condo in Upper Paya Lebar, moved 15 units last month after dropping prices from nearly $900 psf in March to just above $600 psf. <br /><br />More positive news like this is exactly what is needed to restore sentiment in the market. <br /><br /><h2>‘Realistic’ prices that will tempt buyers back into the market</h2><br />As for the threat of price wars, there is little basis in the argument. Prices are going to fall in any case, with or without a price war. The suggestion here is not for steep price cuts, just ‘realistic’ prices that will tempt buyers back into the market. <br /><br />City Developments took some flak from its rivals after it priced its mass market condo Livia in Pasir Ris at an attractive $650 psf on average. But the launch was a huge success - and it has not caused a downward spiral. <br /><br />Industry players have suggested that the Government step in with demand-boosting measures such as waiving, discounting or deferring stamp duty; resurrecting a fine-tuned version of the deferred payment scheme; and tweaking CPF rules to allow buyers more financing leeway. <br /><br />Developers themselves have already started absorbing stamp duty and interest for selected projects, and rolled out gimmicks such as renovation allowances and vouchers for electrical appliances. <br /><br />These measures might help make the buying environment more conducive, but nothing would speak more persuasively to potential buyers than a discount. <br /><br />In a year when everything is going to go on sale, property developers should consider joining the crowd. <br /><br />ST 31 Dec 2008<br />May also want to read:<br /><small><a href="http://smartpropertybuyer.blogspot.com/2008/09/99-leasehold-property-calculation-of.html">99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/02/major-events-that-impact-singapore.html">Spore Property History 1960-2008</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/10/property-investment-tip-dont-put-all.html">Property Investment Tip: Don't put all your eggs in one basket</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/07/hdb-resales-price-may-surpass-1996-peak.html">HDB Resale Price Index 1990-2008: Graph & Chart</a></small><div class="blogger-post-footer"><script type="text/javascript"><!--
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A CDL spokesman said that the entire development of 91 units has been leased to a master tenant that intends to sub-let the units.<br /><br />According to data complied by Savills Singapore, Lucky Tower was expected to be redeveloped into a 178-unit condominium. However, with redevelopment pushed back, these units are not expected to come on to the market anytime soon.<br /><br /><h2>192-unit The Grangeford at Leonie Hill on the rental market</h2><br />Another development, the 192-unit The Grangeford at Leonie Hill, acquired by OUE in 2007, has also been put back on the rental market.<br /><br />OUE is controlled by the Lippo Group and Malaysian tycoon Ananda Krishnan. Lippo Realty executive director Thio Gim Hock said that approximately 70 per cent of the units have already been leased, mainly to expatriates.<br /><br />On why it decided to defer redevelopment, Mr Thio said: 'The market does not look good for this year or the next.'<br /><br />It is understood that asking rents for The Grangeford start at about $3,500 for 1,110 square foot two-bedroom units and about $4,500 for a 1,700 sq ft three-bedroom unit.<br /><br /><h2>Pontiac Land Group started to lease out Pin Tjoe Court</h2><br />The Pontiac Land Group has also started to lease out Pin Tjoe Court, which it acquired in September 2006. Senior vice-president (residential leasing) William Teh said that it expects to redevelop the site next year. 'Till then, we are offering very short-term leases, and this is not representative of typical rental in the market,' he added.<br /><br /><h2>Frasers Centrepoint: Flamingo Valley 60% leased out</h2><br />Frasers Centrepoint said that Flamingo Valley, which it acquired in early 2007, has been put on the rental market with close to 60 per cent of the 185 units leased out.<br /><br />Other en bloc developments back on the rental market include Furama Towers, Fairways Condominium, Sophia Court, and Lincoln Lodge.<br /><br /><h2>Rental yield helps cover developers' holding costs</h2><br />Referring to this 'hidden leasing supply', Japanese investment house Nomura said: 'The move by developers to return en bloc units back to the leasing market to cover to a degree of the holding costs is not unanticipated.'<br /><br />Regardless of 'hidden leasing supply', rentals are already expected to fall. Still, Knight Frank director (research and consultancy) Nicholas Mak believes that the 'hidden supply' of leasing units will not make much of a dent on the rental market. For starters, he notes, many of these en bloc developments have already reached a state of disrepair.<br /><br />Pointing out that the 108-unit Fairways is about 10 per cent leased, he says that many of the units have been 'stripped bare'. <br /><br />He also noted that these units have short leases and tenants may be given only one-month's notice to vacate<br /><br /><h2>Rental Yield of 2.3%</h2><br />In the case of Grangeford, assuming a gross rent of $3.40 psf for the 396,483 sq ft apartment block, Nomura estimates that it could secure net income of $14.6 million, equating to a 2.3 per cent yield over its $625 million acquisition price, 'providing some relief to covering the site's holding costs'.<br /><br />Continue with <a href="http://smartpropertybuyer.blogspot.com/2008/12/deferred-enbloc-redevelopment-cuts.html">Deferred Enbloc Redevelopment cuts supply of 1000 new units</a><br /><br /><br />Extract:BT 22 Dec 2008<br />May also want to read:<br /><small><a href="http://smartpropertybuyer.blogspot.com/2008/09/99-leasehold-property-calculation-of.html">99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/02/major-events-that-impact-singapore.html">Spore Property History 1960-2008</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/10/property-investment-tip-dont-put-all.html">Property Investment Tip: Don't put all your eggs in one basket</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/07/hdb-resales-price-may-surpass-1996-peak.html">HDB Resale Price Index 1990-2008: Graph & Chart</a></small><div class="blogger-post-footer"><script type="text/javascript"><!--
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Over the past several months, many market watchers and analysts have been estimating how big an impact the DPS will have on developers' cashflow and earnings if buyers default on their homes as TOP approaches. <br /><br />'I think it provides a clearer picture as to the extent of the problem,' said Citigroup's head of Singapore equity research, Chua Hak Bin. 'And it is good that the government acted to stop the system when it did. If not, things would have got a lot worse.'<br /><br />Said Redas: 'URA data, together with data compiled by Redas, helps to allay concerns that speculators may repudiate their DPS purchases at below-market prices as the completion date nears.' In its statement, Redas highlighted 10 projects - including City Developments' The Sail and Keppel Land's Park Infinia - where the DPS was offered but full payment was still made to the developers once TOP was obtained.<br /><br /> <br />For now, the real area of concern is thought to be the 2,540 units under the DPS that will obtain TOP in 2010. <br /> <br />Redas also said that while units may be affected by market sentiments, sales contracts cannot be repudiated easily.<br /><br />URA's data proves that the DPS scheme was 'very popular', Citigroup's Dr Chua said. To arrive at its numbers, URA did a survey among property developers of uncompleted DPS-approved projects. In total, developers of 605 projects, comprising 72,384 units, were granted approval to offer the DPS. Of this amount, there were 18,208 sold but uncompleted units as at end-November this year. And of this figure, 10,450 (57 per cent) were still under the DPS.<br /><br />The fact that the bulk of DPS units will be completed in 2009 is cause for some concern, analysts said. '2009 is going to be a tough year for the economy, and there are 4,650 units under the DPS that will be completed,' said Ku Swee Yong, director of marketing and business development at Savills Singapore. <br /><br />But assuming a three-year construction period, a large proportion of the units that will obtain TOP in 2009 were probably launched and sold in 2006 and early 2007, at prices that are relatively lower than today's level or the expected level in 2009. So even if the property market continues to weaken in 2009, the owners of these 4,560 units could still lease out the homes or sell them, analysts said. However, if developers had offered the DPS to many sub-purchasers when the original purchasers sub-sell the units, then defaults could be expected.<br /><br />But for now, the real area of concern is thought to be the 2,540 units under the DPS that will obtain TOP in 2010. Of this number, 1,270 of the units are located in the core central region (CCR), which includes Sentosa and Marina Bay.<br /><br />'Generally, I'm more concerned over the units which will receive TOP in 2010-2011, which could have been purchased in 2007 at the peak of the property market,' said DMG & Partners Securities analyst Brandon Lee. <br /><br />And while developers have the legal right to pursue buyers who walk away from their deals, it could be harder to do this when it comes to foreigners, said Knight Frank managing director Tan Tiong Cheng.<br /><br />Normally, about 75-90 per cent of uncompleted private residential units will be bought by Singaporeans, said DMG's Mr Lee. But in 2007, the proportion fell to 63-68 per cent, with the remaining purchases made by PRs, foreigners and companies. 'We see this segment as the most likely to return their units,' he said. His back-of-the-envelope figure puts the amount expected to be returned as possibly somewhere between 20-30 per cent. <br /><br />URA said that it provided the data to enable the public to make a better assessment of the private housing market. 'This information was provided by developers in confidence and with the understanding that data for individual projects would not be released to the public. Hence URA is only releasing aggregated data and not data for individual projects,' the government agency said.<br /><br />'Conducting a survey of developers of all uncompleted DPS-approved projects requires a lot of time and resources from the developers as well as the government. Given that the number of uncompleted units sold under DPS is likely to decline as projects are completed over time, we will monitor the situation and consider whether there is a need to conduct further surveys in future,' URA said in response to a query from BT. <br /><br />BT 20 Dec 2008<br />May also want to read:<br /><small><a href="http://smartpropertybuyer.blogspot.com/2008/09/99-leasehold-property-calculation-of.html">99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/02/major-events-that-impact-singapore.html">Spore Property History 1960-2008</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/10/property-investment-tip-dont-put-all.html">Property Investment Tip: Don't put all your eggs in one basket</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/07/hdb-resales-price-may-surpass-1996-peak.html">HDB Resale Price Index 1990-2008: Graph & Chart</a></small><div class="blogger-post-footer"><script type="text/javascript"><!--
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If the purchase falls through, units will return to the market, possibly depressing prices. <br />. <br />To Chesteron Suntec International research director Colin Tan, the statistics paint a grim picture. <br />. <br />“If we assume all the people buying under DPS meant to flip, the 4,560 units represent one year of supply for a bad year. It’s bad,” Mr Tan told Today. <br />. <br />Only 4,000 to 5,000 new private homes are expected to be sold this year, he said, way below last year’s 14,800. <br />. <br />Under the DPS, the downpayment is :only 10 to 20 per cent of the unit’s price and the customer makes no other payments during the construction period — typically two to three years — until completion. The arrangement appeals to speculators who, during boom time, made just a small payment upfront and managed to “flip” the unit for a quick buck before the TOP date. <br />. <br />:Some feel the DPS may create a local version of a sub-prime meltdown. Will the market soon be flooded with desperados cancelling purchases or defaulting? Developers are putting up a brave front. <br />. <br />:“We note that DPS cases will peak in 2009. These units would have been purchased in 2005/6 before property prices peaked in late 2007. As the purchase prices of these units are likely to be below current market price, we are confident that such property purchasers will want to proceed with completion of ====:their sale, upon their unit’s grant of the TOP,” the Real Estate Developers’ :Association of Singapore (Redas) said in a statement. <br />. <br />:Redas also stressed that buyers have no right to cancel sale-and-purchase agreements; only the developer does. So if the buyer fails to adhere to the contract, the developer could not only keep the downpayment but also demand claims and resell the property. <br />. <br />:Redas did not say if their members were witnessing an increase in customers asking to repudiate contracts. <br />. <br />:According to Knight Frank director of consultancy and research Nicholas Mak, people who bought units outside the Core Central Region – plum areas including Orchard and Sentosa – are “less at risk of default because a relatively higher proportion of these homes were bought for owners’ occupation”. <br />. <br />:Two-thirds of the unfinished homes bought on DPS are outside the Core Central Region. <br />. <br />:In the first place, said Savills Singapore director of marketing and business development Ku Swee Yong, DPS customers do include genuine home buyers, not just speculators. <br />. <br />:Mr Mak said even if the property market weakened further next year, homebuyers collecting their keys “could either lease out the homes at relatively good returns or sell the homes at their breakeven level or with a profit”. <br />. <br />:As for those taking delivery in 2010, they are unlikely to be pressured to sell at distress prices as “we expect the property market to stabilise in 2010 and may show some signs of recovery”:. <br /><br />CNA 20 Dec 2008<br />May also want to read:<br /><small><a href="http://smartpropertybuyer.blogspot.com/2008/09/99-leasehold-property-calculation-of.html">99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/02/major-events-that-impact-singapore.html">Spore Property History 1960-2008</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/10/property-investment-tip-dont-put-all.html">Property Investment Tip: Don't put all your eggs in one basket</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/07/hdb-resales-price-may-surpass-1996-peak.html">HDB Resale Price Index 1990-2008: Graph & Chart</a></small><div class="blogger-post-footer"><script type="text/javascript"><!--
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Affected economies will look after their domestic problems and investment before looking outside. Look around and do some serious research in other countries, there are far more safer, cheaper and attractive options than investing in Singapore overpriced properties. Even our Temasek and GIC if you see are investing overseas and they haven proven correctly that their return is still better so far. Think about it carefully what so attractive and competitive of overpriced properties in Singapore. It has not even fallen to meaningful level and probably not because the budget next month should again likely to aim at propping up properties prices and improve sentiment and some unwary speculators and investors can be trapped or does it really matter. Better to stay away from such BIG financial commitment. No big deal to miss the boat except for the wealthy and rich speculators who always want more. Ordinary citizens and small invesors :Be safe than sorry, no need so much or show off or envious about. Humble opinion. <br /><br /><strong>Anonymous wrote:</strong><br />US$ crash is for sure, funds of US$Trillin will flow to Asia for sure, this is the reverse of 1997 Asia financial crisis. China will push demand till 2-4x of current US demand, want to do biz, want infrastructure projects....80% is in Asia. RMB$4Trillion development is just the beginning, another 5 round of bigger size stimulus packegae is on the way in coming months to years. <br />Why US property drive to big bubble in 2007? The bubble started to build up in 1998, influx of Millions of Asian flew to US afetr Asia crisis, that is the beginnig of Silicon Valley...wall st.....every corner of US, you will immigrants & foreign talents. US property up all the way from 1998 to 2007. When Asia crisis started for 1 yr, US property escalate. So later next year, we will start to see influx of ang mo. <br />Quesstion now is US drop in demand can be pick up by Asia? US drop in dmand is the most 1-2%, is not drop by 10-20%, with China + India= 10x US population, can't the govt stimulate the economy to achieve a small drop in US demand? <br />Cheap US$ with 0% rate is everywhere in the world next year, they are printing it unlimitedly, Obama will have to print more, when the effect of these money surface, tyhe begin of another big bubble, especially in Asia which have US$Trillion of reserved & is going to cash out when times come, plus all the rush of coneversion of US$ to asian currency to flock here.....worse than tsunami when it triggers....<br /><br /><strong>Guest wrote;</strong><br />Money needs to be constantly circulated as efficiently as possible to maintain economic productivity. Right now, too much money is idle in banks and reserves, and not being put to productive use. <br /><br />As Americans spend less, China knows already that it needs to start spending more to hasten economic recovery, else if this trend continues, it will lead to ever slowing growth and eventually social instability as more people go out of work and can't afford basic necessities. <br /><br />The US can only do so much as reduce their interest rates to near-zero so it needs China to do it's part as well as all the economies are interconnected. I expect in the next one year we will start seeing increased spending from the Asian powers, better flow of liquidity and recovery in the health of the global economy. <br /><br />So what does this mean for Singapore property 2009? Prices will probably remain above 2006 levels, but not as exuberant as 2007. A good time to upgrade or purchase for own-stay, especially if there are urgent sales from owners of multiple properties (and there are plenty of such these days). I see a great future for Singapore as a global city for the wealthy, but private property is still too expensive an investment option for most people, and unlikely to be able to "flip" for quick profits. <br /><br />May also want to read:<br /><small><a href="http://smartpropertybuyer.blogspot.com/2008/09/99-leasehold-property-calculation-of.html">99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/02/major-events-that-impact-singapore.html">Spore Property History 1960-2008</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/10/property-investment-tip-dont-put-all.html">Property Investment Tip: Don't put all your eggs in one basket</a><br /><a href="http://smartpropertybuyer.blogspot.com/2008/07/hdb-resales-price-may-surpass-1996-peak.html">HDB Resale Price Index 1990-2008: Graph & Chart</a></small><div class="blogger-post-footer"><script type="text/javascript"><!--
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