QE2 coming! SG private property explode upwards soon!

[Lord Anus]

it is inevitable. it will happen and it must happen.

there are precious few places in the world to park big hot cash now, especially now since china and hk are hit by speculation curbs.

watch this space.

[stalingrad]

it is inevitable. it will happen and it must happen.

there are precious few places in the world to park big hot cash now, especially now since china and hk are hit by speculation curbs.

watch this space.

but we have also been hit by speculation curbs, with more to come.

[Condo Collector]

Too late liaw.... How can Singapore stop the reaching Tsunami? Dig holes?

Super Inflation! Hurrah!

[mcmlxxvi]

Yay. .

[Localite]

With markets flush with liquidity and low yields everywhere and high risk with equities ppty is the right place to park your money, but as the govmnt curbs the purchase of ppties for investment you know what happens? The gap between the rich (who are not affected by the curbs) and the poor gets wider.

[vip]

Properties is not the only way to park your money.

I try to follow what the top analysts from US are saying. Investors in different parts of the world are running away from properties, equities, bonds, etc. and going to "safe havens" like commodities.

These days, it is not the "rich" are buying properties, but the "high-risk takers" are buying.

[Geylang OKT]

Share markets all over the world will cheong skyhigh.

[Laguna]

if u read PM's interview with reuterl, seems that he is expecting a lot of hot money flowing into this part of the world
Govt can cool property market, but how to cool equity markets...?????

[hopeful]

if u read PM's interview with reuterl, seems that he is expecting a lot of hot money flowing into this part of the world
Govt can cool property market, but how to cool equity markets...?????

capital gains tax

[Lord Anus]

capital gains tax

this will be the final solution, but damage done will be irreparable.....

[terence]

capital gains tax coming....

[art10626]

Seems like the whole Asia/Emerging Market have a stronger reaction to QE2 than the first QE. India raised rate, China raised rate ahead of QE2 announcement and Korea suspected to hike rate too. Was just wondering is Asia bracing for a tightening cycle to combat the inflows?

Most governments are alert to the potential asset inflation driven by QE2 and PM Lee also mentioned that govt is watching. So we are essentially betting on how strong the govt measures are going to be?

[Condo Collector]

Seems like the whole Asia/Emerging Market have a stronger reaction to QE2 than the first QE. India raised rate, China raised rate ahead of QE2 announcement and Korea suspected to hike rate too. Was just wondering is Asia bracing for a tightening cycle to combat the inflows?

Most governments are alert to the potential asset inflation driven by QE2 and PM Lee also mentioned that govt is watching. So we are essentially betting on how strong the govt measures are going to be?

Increase interest rate to flight QE2? Please don't joke!
If you increase your interest rate, you become a magnet! Dude!

[devilplate]

yeah...gd point...

on the other hand, they nid to increase interest rate to combat inflationary pressures....

[kane]

yeah...gd point...

on the other hand, they nid to increase interest rate to combat inflationary pressures....

that's why we use currency to combat inflation rather than interest rates.

but alas, how do you combat a second tsunami of 600bln.

[art10626]

if it's just property sector in singapore... i think just another round of what we saw in 30 Aug measures (or something slightly more drastic) would be able to do the job?

let's say Government ban all foreigners for buying properties in Singapore, that would surely do it. however cost of such measure would be too high. so it's the balancing thing i guess....

that's why we use currency to combat inflation rather than interest rates.

but alas, how do you combat a second tsunami of 600bln.

[teddybear]

(In RED) - Is that ever possible when they even allow foreigners to buy the landed in Sentosa without requiring any approval? To do what you mentioned means that must be turning around 180 degrees and further slapping the foreigners several times in their faces! You think our Govt so stupid? They will forever welcome the foreigners with open arms (to the extend of even approving PR to be able to buy landed) but if need be only tighten policies that affect the masses (i.e. HDB flats & OCR private properties). The rich can take care of themselves (that is why they are rich)! (So, make sense to earn from the rich and let them do what they want).

if it's just property sector in singapore... i think just another round of what we saw in 30 Aug measures (or something slightly more drastic) would be able to do the job?

let's say Government ban all foreigners for buying properties in Singapore, that would surely do it. however cost of such measure would be too high. so it's the balancing thing i guess....

[devilplate]

i am really against PRs from getting Landed ppty so easily....govt shd 'force' PRs to convert b4 they r allowed to buy mah...so sian

'to ban foreigners from buying air space' is a BIG NO....its jus like banning foreigners from entering our casinoes...

i wud guess sg govt may try to 'follow' HK, China measures.....60 or 50% ltv for 3rd mortgage loan onwards....got $$ den play, no $ pls dun stretch....fair and square

[rattydrama]

(In RED) - Is that ever possible when they even allow foreigners to buy the landed in Sentosa without requiring any approval? To do what you mentioned means that must be turning around 180 degrees and further slapping the foreigners several times in their faces! You think our Govt so stupid? They will forever welcome the foreigners with open arms (to the extend of even approving PR to be able to buy landed) but if need be only tighten policies that affect the masses (i.e. HDB flats & OCR private properties). The rich can take care of themselves (that is why they are rich)! (So, make sense to earn from the rich and let them do what they want).

I heard of a story which goes like this. One Ah Nei became PR and bought a re-sale HDB. His kids enjoyed all the subsidized school fees as PRs. He worked for 1 year and "din work" for the rest of 4 years. I am not sure how he survive.

Then the property price went upl. He liquidated all his assets and decided to return home with all the monies he got. Guess what, IRAS interviewed him and he was asked to "return" all the subsidies he had enjoyed over the past years.

As he has already sold his property and there is no renewal of his PRs, he has to pay and leave.

I am not sure if this is true but I think it is a good thing that government stop non-Singaporeans for taking us for a ride.

[devilplate]

I heard of a story which goes like this. One Ah Nei became PR and bought a re-sale HDB. His kids enjoyed all the subsidized school fees as PRs. He worked for 1 year and "din work" for the rest of 4 years. I am not sure how he survive.

Then the property price went upl. He liquidated all his assets and decided to return home with all the monies he got. Guess what, IRAS interviewed him and he was asked to "return" all the subsidies he had enjoyed over the past years.

As he has already sold his property and there is no renewal of his PRs, he has to pay and leave.

I am not sure if this is true but I think it is a good thing that government stop non-Singaporeans for taking us for a ride.

'return of subsidies' include profits from sale of HDB?

[rattydrama]

'return of subsidies' include profits from sale of HDB?

I am not sure cos its a story heard from friends. Maybe someone who has this part of the info could comment.

[JuzMe]

Singapore government will step in to cool down the market more. Major difference between HK and Sg is that government here has more say and control over the market. Don't take risk and pump in hard earned $$$ into the market right now. Anyway, that's my 2 cents

[devilplate]

Singapore government will step in to cool down the market more. Major difference between HK and Sg is that government here has more say and control over the market. Don't take risk and pump in hard earned $$$ into the market right now. Anyway, that's my 2 cents

care to elaborate y HK govt has less control? i tot they r much more agressive recently?

[teddybear]

Don't think there are provisions in law to take back the subsidies. Treat it as a stories to please the singaporeans (ops, citizens rather, since singaporeans sometimes can also mean to include PRs conveniently when the statistics will look nicer).

I heard of a story which goes like this. One Ah Nei became PR and bought a re-sale HDB. His kids enjoyed all the subsidized school fees as PRs. He worked for 1 year and "din work" for the rest of 4 years. I am not sure how he survive.

Then the property price went upl. He liquidated all his assets and decided to return home with all the monies he got. Guess what, IRAS interviewed him and he was asked to "return" all the subsidies he had enjoyed over the past years.

As he has already sold his property and there is no renewal of his PRs, he has to pay and leave.

I am not sure if this is true but I think it is a good thing that government stop non-Singaporeans for taking us for a ride.

[teddybear]

Rather, I would think a better advice is: Better don't take risk by putting your money in FDs and savings accounts because inflation will eat them up with near to 0% interest!

Singapore government will step in to cool down the market more. Major difference between HK and Sg is that government here has more say and control over the market. Don't take risk and pump in hard earned $$$ into the market right now. Anyway, that's my 2 cents

[Condo Collector]

Rather, I would think a better advice is: Better don't take risk by putting your money in FDs and savings accounts because inflation will eat them up with near to 0% interest!

What is interest if the value of money degraded.

[kane]

The threat of inflation doesn't get any more real with another 600bln of QE.

[kane]

What is interest if the value of money degraded.

real interest = nominal interest - inflation. And yes, it's possible for real interest to be negative.

[Wild Falcon]

The resale and subsale market has quieten down quite a bit. Only developer sales are doing exceptionally well. So developers are laughing all the way to the bank but not necessary the property owners. So the government needs to take a targeted approach to curb SPECULATION and hot money flowing into the primary market while not hurting genuine home owners. If you have friends buying high-end property from developers during the end 2007 boom/peak/frenzy, you will realise that after holding their investment for 3 years and now coming to TOP, they could hardly sell and make a decent profit after taking in transaction costs.

So we have a 2 tier market - the primary market of speculators which is still booming due to hot money, and a lacklustre secondary market. If I were the government, new cooling measure will need to be highly-tailored to cool the primary market (i.e. developer sales) and 2nd-3rd property.

Singapore government will step in to cool down the market more. Major difference between HK and Sg is that government here has more say and control over the market. Don't take risk and pump in hard earned $$$ into the market right now. Anyway, that's my 2 cents

[kellogs]

Increase interest rates to 3 percents or more
Increase Singapore dollar values against usd