Singapore private property: S$1000/sqfeet bar? S$1M bar?

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Singapore private property: S$1000/sqfeet bar? S$1M bar?

Postby Cheval » Mon Mar 01, 2010 1:45 pm

Singapore private property market has just gone crazy.

I read in the newspaper that home income in Singapore has dropped last year, for families of all income levels. But other costs are rising. One example is the fees of the kindergarten that my kids went to increase from S$400 to near S$1000. To me, for a family of with a monthly income around S$10k -- the majority of professionals fall in this case, S$800k is the highest price they can afford for a condo apartment.

On the other hand, Many newly introduced projects, even not in central area, just go up to S$1000/sqfeet or even above. In far areas, I think of Chinese Garden and around, the price is not lower than S$700. As a consequence, one has to fork out at least S$1M(!) to buy a mid-range condo apartment. Some are expecting the price going higher.

Now comes the question: is the S$1000/sqfeet or S$1M/apt bar definitely crossed? If yes, how can the current market sustain?

(I myself am foreseeing a drop of 20% this year.)

Cheval
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Postby tankee » Mon Mar 01, 2010 1:54 pm

I do not understand your comment :?

There are quite many private projects that are priced at or above $1000 psft.

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Postby osakachan » Mon Mar 01, 2010 2:02 pm

Agree with you. The current property price has gone too high for average or even for some professionals.

The market is either cooked by investors and speculators. Even if there are rich PR buying, it should not take up big percentage of the market share in purchase.

Frankly, an 800K house with 80% loan of 640K is too much to finance for average Singaporean. Everyone are betting on IR news. Finally IRs are in mist of completion. Time will tell whether IR will create new demands on houses in Singapore.

Next time when you read newspaper article about properties direction, look at who they interview. If its the developer, you should know how much you should truth the story.

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Postby KSP » Mon Mar 01, 2010 2:04 pm

Those are speculators and flippers. Don't forget this year is the year of the Tiger. If you look back what happened during the last two Tiger year you will know. Gov already stepped in to curb property speculation and more will come. Don't jump into the Titanic!!!

KSP
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Postby LKVM » Mon Mar 01, 2010 2:05 pm

KSP wrote:Those are speculators and flippers. Don't forget this year is the year of the Tiger. If you look back what happened during the last two Tiger year you will know. Gov already stepped in to curb property speculation and more will come. Don't jump into the Titanic!!!


You mean should stay away from buying or dont buy?

LKVM
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Postby KSP » Mon Mar 01, 2010 2:08 pm

lovekidsverymuch wrote:
KSP wrote:Those are speculators and flippers. Don't forget this year is the year of the Tiger. If you look back what happened during the last two Tiger year you will know. Gov already stepped in to curb property speculation and more will come. Don't jump into the Titanic!!!


You mean should stay away from buying or dont buy?


If buy to stay is ok. If buy to flip then depend on the timing. There will be risk involved.

KSP
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Postby Cheval » Mon Mar 01, 2010 2:12 pm

tankee wrote:I do not understand your comment :?

There are quite many private projects that are priced at or above $1000 psft.


Sorry for my English (?). I just wanted to say: the market is crazy and it's not sustainable. (So I expect a drop of at least 20% this year)

osakachan wrote:Frankly, an 800K house with 80% loan of 640K is too much to finance for average Singaporean. Everyone are betting on IR news. Finally IRs are in mist of completion. Time will tell whether IR will create new demands on houses in Singapore.

Next time when you read newspaper article about properties direction, look at who they interview. If its the developer, you should know how much you should truth the story.


At this trend, in a short time the private property price will be doubled. But will people's pay be also double, supposed the IRs are successful?

When developers and agents talk, I try to see if their points are founded or just fancy.

Cheval
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Postby Cheval » Mon Mar 01, 2010 2:15 pm

lovekidsverymuch wrote:You mean should stay away from buying or dont buy?


the same thing, isn't it? :?

Cheval
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Postby KSP » Mon Mar 01, 2010 2:40 pm

The important things are.

Live within your mean; can't affort a condo stay in HDB.

Invest within your mean; can't speculate in property, speculate in stock - the risk is not as high. If got burnt in stock market, it takes a few years to recover. If got burnt in property market, hehe, it will take a whole live to pay back. Of course high risk high gain, it depends on your risk appetite.

KSP
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Postby tree nymph » Mon Mar 01, 2010 4:04 pm

KSP wrote:Those are speculators and flippers. Don't forget this year is the year of the Tiger. If you look back what happened during the last two Tiger year you will know. Gov already stepped in to curb property speculation and more will come. Don't jump into the Titanic!!!


Hi KSP,

What happened to the last two Tiger year?

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