Who are affected by the new property cooling measures?

[RCT]

I think not many people are selling since economy is expected to be better this year. What we can expect is no capital appreciation in H1 this year.

Two of our key trading partners are improving:

China: China economy to rebound in 2013: survey
http://www.channelnewsasia.com/stori...247624/1/.html

US: US economy to grow 2.5% in 2013
http://www.globaltimes.cn/content/755800.shtml

I think we should not look at economy growth... This is nothing to do with property pricing... It is how much is the real income of the people that really matters... GDP can be going like 100% but your salary still the same, you think property price will grow 100% also?

Also now the property is so hot due to the fact they is no other place to invest. Economy uncertainty have make people scare of taking risk. If now, really economy is booming, China GDP go back to double figure, USA and Europe debt issue is being resolve and is also growing... Stock Market is going up and up everyday... Who will still remember about property... And also when economy is booming, FED will increase interest rate to fight inflation for sure.. Interest rate goes up is the killer to Singapore Property as people are buying using loans. Like phantom_opera say, China Property also went down due to cooling measuring despite the fact they are buying property with 100% CASH... What are the chances that our property price remain robust in the event of a 20% drop in price and buy bank start asking for top-up to loans...

[phantom_opera]

ANNOUNCEMENTS
Daily Special: Enjoy additional 4% discount! Limited to first 4 buyers

Guess which developer??

[RCT]

ANNOUNCEMENTS
Daily Special: Enjoy additional 4% discount! Limited to first 4 buyers

Guess which developer??

Which one?

[gn108]

The target for CMs has always been on the speculators/marginal players.

It's a balancing game, as more CMs come in and still more marginal players pile in the game. But at some point, a CM will break the backs of these players usually after >70% of these marginal players are already in and there are too few new players to buy off these weak holders/speculators.

Is CM7 the one? Maybe not...coz of interest rates and high employment.

[cnud]

Those who jumped in on 11th January 2013 and signed on the dotted line now sweating.

On 11th January, it seemed like a deal not to be missed because of MTB syndrome. Go home take bath, fell asleep... suddenly wake up on 12th January in cold sweat because prices may drop >10%.

If ABSD 7%, prices drop 10%, I make 3% minimum.

[DC33_2008]

Does not affect those who are not selling.

CM7 does take away profit from last 3y ... for those who still holding properties will see their capital appreciation potential vastly reduced

PAP has demonstrated that they are willing to sacrifice growth to control housing inflation ... next will be Hong Kong ... Leung will be under attack since Singapore is now way ahead in terms of cooling measures

[DC33_2008]

Why Sell? Holding cost is still low?

just checked out another unit in my development. buyer still holding firm to asking price, no room for negotiations in spite of the latest CM

prices drop ? sales withdrawn ? maybe not?

[eng81157]

Why Sell? Holding cost is still low?

yup, as usual. i was just trying my luck to see if can fish some fire sales

[hyenergix]

yup, as usual. i was just trying my luck to see if can fish some fire sales

It will be useful if you can create a poll to see how many people here intend to sell below 10% of current market value in the next 3 months. This could be indicative of any price correction going forward.

[jeaprp]

Hope the govt has calculated correctly not to crash the market. The alternative (market overheating) is also not healthy for us economically. The prices will soar beyond our reach and that of our chewren.

Eventually one of this CM will slow or crash the mkt.
Price can go up indefinately, hopefully not caught with big baby by then

[eng81157]

The target for CMs has always been on the speculators/marginal players.

It's a balancing game, as more CMs come in and still more marginal players pile in the game. But at some point, a CM will break the backs of these players usually after >70% of these marginal players are already in and there are too few new players to buy off these weak holders/speculators.

Is CM7 the one? Maybe not...coz of interest rates and high employment.

the SSD has already killed off most speculators, don't need CM7.

[eng81157]

The target for CMs has always been on the speculators/marginal players.

It's a balancing game, as more CMs come in and still more marginal players pile in the game. But at some point, a CM will break the backs of these players usually after >70% of these marginal players are already in and there are too few new players to buy off these weak holders/speculators.

Is CM7 the one? Maybe not...coz of interest rates and high employment.

the SSD has already killed off most speculators, don't need CM7. reiterating for the millionth time, land cost/pricing is the culprit.

[RCT]

the SSD has already killed off most speculators, don't need CM7. reiterating for the millionth time, land cost/pricing is the culprit.

You have already one shot in the heart side with SSD.. CM7 is just another shot at the opp side of the heart just in case someone heart is not in the normal position... If have CM8+, it will be using GPMG to create beehive...

[Lovelle]

there are those landed owners who have sold their landed will be benefited now.

they will go bargain hunting at HDB or PC...with their ammo.

50% LTV or not is not a problem

[DKSG]

Office Boy felt compelled to post this (from Office!) ...

Property prices drop because there are MANY people wanting to sell at prices before the average last done prices.

Look around you ... do you see MANY people like that ?

Currently at least in my office, most, if not all, who owns more than 1 property are holding to it tightly (until the property dont know can breath of not).

As long as interest rates stay low, employment rate is high, no one would want to see their property at prices before the previous persons.

And now worse still, totally no reason to cash out.

Cash out, sit on cash, and wait for inflation to erode your retirement funds ? Watch the $40B from US crashing our shores every month?

Wait for Wanton Noodled to become $10 per plate in hawker centres ?

Trust your instinct, if you wont want to sell, others also wont want to sell.

Another thing ... Money is easy to print, difficult to unprint ... got it ?

Same as Nasi Lemak once move from $1.50 to $2.50, when did it ever move back to $1.50 ?

Think, my friends, Think!
DKSG

[indomie]

Office Boy felt compelled to post this (from Office!) ...

Property prices drop because there are MANY people wanting to sell at prices before the average last done prices.

Look around you ... do you see MANY people like that ?

Currently at least in my office, most, if not all, who owns more than 1 property are holding to it tightly (until the property dont know can breath of not).

As long as interest rates stay low, employment rate is high, no one would want to see their property at prices before the previous persons.

And now worse still, totally no reason to cash out.

Cash out, sit on cash, and wait for inflation to erode your retirement funds ? Watch the $40B from US crashing our shores every month?

Wait for Wanton Noodled to become $10 per plate in hawker centres ?

Trust your instinct, if you wont want to sell, others also wont want to sell.

Another thing ... Money is easy to print, difficult to unprint ... got it ?

Same as Nasi Lemak once move from $1.50 to $2.50, when did it ever move back to $1.50 ?

Think, my friends, Think!
DKSG

Office boy deserve a black belt in property karate. He might be an office boy, but he got brain like a CEO.

[zeamybro]

Office Boy felt compelled to post this (from Office!) ...

Property prices drop because there are MANY people wanting to sell at prices before the average last done prices.

Look around you ... do you see MANY people like that ?

Currently at least in my office, most, if not all, who owns more than 1 property are holding to it tightly (until the property dont know can breath of not).

As long as interest rates stay low, employment rate is high, no one would want to see their property at prices before the previous persons.

And now worse still, totally no reason to cash out.

Cash out, sit on cash, and wait for inflation to erode your retirement funds ? Watch the $40B from US crashing our shores every month?

Wait for Wanton Noodled to become $10 per plate in hawker centres ?

Trust your instinct, if you wont want to sell, others also wont want to sell.

Another thing ... Money is easy to print, difficult to unprint ... got it ?

Same as Nasi Lemak once move from $1.50 to $2.50, when did it ever move back to $1.50 ?

Think, my friends, Think!
DKSG

*clap clap clap*

[Kanarazu]

Agree the price not that easy to drop, remember Lehman's crisis price only dropped 20%.

[Leeds]

Office Boy felt compelled to post this (from Office!) ...

Property prices drop because there are MANY people wanting to sell at prices before the average last done prices.

Look around you ... do you see MANY people like that ?

Currently at least in my office, most, if not all, who owns more than 1 property are holding to it tightly (until the property dont know can breath of not).

As long as interest rates stay low, employment rate is high, no one would want to see their property at prices before the previous persons.

And now worse still, totally no reason to cash out.

Cash out, sit on cash, and wait for inflation to erode your retirement funds ? Watch the $40B from US crashing our shores every month?

Wait for Wanton Noodled to become $10 per plate in hawker centres ?

Trust your instinct, if you wont want to sell, others also wont want to sell.

Another thing ... Money is easy to print, difficult to unprint ... got it ?

Same as Nasi Lemak once move from $1.50 to $2.50, when did it ever move back to $1.50 ?

Think, my friends, Think!
DKSG

Have to agree with you that multiple property owners are not likely to sell since they are capble of buying multiple properties. These owners form the minority or just a small number.

The one to move the market is the mass market upgraders. They are the one who may need to sell off their existing flats or apartments to finance their new purchases. Not all of them could afford to rent out their existing flats and continue with their bridging loans.

The other party who can influence the market is developers. No matter how strong their balance sheets are, they need to account to their shareholders and hence cannot continue to add on to their inventories. All that is needed is some smaller developers to start cutting prices to survive and the market will move likewise.

Of course, the longer the stand-still between buyers and developers will determie the magnitude of price cut bearing unforeseen external factors.

CM7 is really about preventing the masses from buying investment property which was the main force sustaining the market then. If this sector of the market is not moving, it will lead to market readjusting itself.

[cnud]

Agree the price not that easy to drop, remember Lehman's crisis price only dropped 20%.

Wait.. till interest rates kill us all.

Few will resurrect.

[myfirstpc]

Office Boy felt compelled to post this (from Office!) ...

Property prices drop because there are MANY people wanting to sell at prices before the average last done prices.

Look around you ... do you see MANY people like that ?

Currently at least in my office, most, if not all, who owns more than 1 property are holding to it tightly (until the property dont know can breath of not).

As long as interest rates stay low, employment rate is high, no one would want to see their property at prices before the previous persons.

And now worse still, totally no reason to cash out.

Cash out, sit on cash, and wait for inflation to erode your retirement funds ? Watch the $40B from US crashing our shores every month?

Wait for Wanton Noodled to become $10 per plate in hawker centres ?

Trust your instinct, if you wont want to sell, others also wont want to sell.

Another thing ... Money is easy to print, difficult to unprint ... got it ?

Same as Nasi Lemak once move from $1.50 to $2.50, when did it ever move back to $1.50 ?

Think, my friends, Think!
DKSG

Right on, well said. I have been constipating on some S&P 500 ETFs since 2007/2008. Had a small holding before the fateful free fall. Everyone was selling, fire sales all over. I decided to hold (i bought at all time high). In the last few months, after so many years (5yrs), I see my holdings performing above the highest before the market crashed in 2007/2008. I am in the Green !. Unbelievable and we are today talking about the "Fiscal Cliff". To me, the market is performing better now in the "cliff" than it was back in 2007/2008. I am not selling out my holdings. Just my 2 cents LT view for those with a strong heart.

Days of $2.5 cinema tickets, now hovering about $9, $0.5 kopi now at $1.40 to $1.80 (toastBox?). Salary has not increased at this rate for the last 10-20yrs. HDB prices from below 50K for a 5 roomer in the 80s now easily $500K to $1+m. And we do have $10+ ramen noodles in Bugis+, though not Wanton Mee (akan datang). Thinking aloud, Fastfood joints will eventually be cheaper and value for $$ (recent promo on $5 meals) than the kopitiams, food republic, banquet chains etc. LT, once up, will never move back. Corrections are temporary noise. Keep to your instincts, hedge your $$. Do not be influenced by the herd mentality.

[DC33_2008]

IT does not deter those with with a couple of fully-paid up properties enjoying the passive income.

Wait.. till interest rates kill us all.

Few will resurrect.

[jeaprp]

Wait.. till interest rates kill us all.

Few will resurrect.

Interest rate won't kill us, an epidemic might.
life still goes on even if interest rate moves up.
New opportunity will arise

[cnud]

Right on, well said. I have been constipating on some S&P 500 ETFs since 2007/2008. Had a small holding before the fateful free fall. Everyone was selling, fire sales all over. I decided to hold (i bought at all time high). In the last few months, after so many years (5yrs), I see my holdings performing above the highest before the market crashed in 2007/2008. I am in the Green !. Unbelievable and we are today talking about the "Fiscal Cliff". To me, the market is performing better now in the "cliff" than it was back in 2007/2008. I am not selling out my holdings. Just my 2 cents LT view for those with a strong heart.

Days of $2.5 cinema tickets, now hovering about $9, $0.5 kopi now at $1.40 to $1.80 (toastBox?). Salary has not increased at this rate for the last 10-20yrs. HDB prices from below 50K for a 5 roomer in the 80s now easily $500K to $1+m. And we do have $10+ ramen noodles in Bugis+, though not Wanton Mee (akan datang). Thinking aloud, Fastfood joints will eventually be cheaper and value for $$ (recent promo on $5 meals) than the kopitiams, food republic, banquet chains etc. LT, once up, will never move back. Corrections are temporary noise. Keep to your instincts, hedge your $$. Do not be influenced by the herd mentality.

Sometimes we like to console ourselves by comparing properties to necessities. 2nd properties onwards is not necessity but investment. Overinvestment can cause upset and reset the price to balance out the profit. Those who have, will learn to share with those who have not. Price correction is not a bad thing. As long as you become the evergreen by virtue of your next generation or somehow.

[nav14]

Prices are not going to decline more than 5% until the economy takes a sharp dive or interest rates start rising aggressively. I am expecting 0 % to -5% movement in prices.
The govt is not trying to reduce prices but will be more than happy if prices stablise for a few years or at least until the next elections. They are hoping for a perfect equilibrium.

[Molotov]

Right on, well said. I have been constipating on some S&P 500 ETFs since 2007/2008. Had a small holding before the fateful free fall. Everyone was selling, fire sales all over. I decided to hold (i bought at all time high). In the last few months, after so many years (5yrs), I see my holdings performing above the highest before the market crashed in 2007/2008. I am in the Green !. Unbelievable and we are today talking about the "Fiscal Cliff". To me, the market is performing better now in the "cliff" than it was back in 2007/2008. I am not selling out my holdings. Just my 2 cents LT view for those with a strong heart.

Days of $2.5 cinema tickets, now hovering about $9, $0.5 kopi now at $1.40 to $1.80 (toastBox?). Salary has not increased at this rate for the last 10-20yrs. HDB prices from below 50K for a 5 roomer in the 80s now easily $500K to $1+m. And we do have $10+ ramen noodles in Bugis+, though not Wanton Mee (akan datang). Thinking aloud, Fastfood joints will eventually be cheaper and value for $$ (recent promo on $5 meals) than the kopitiams, food republic, banquet chains etc. LT, once up, will never move back. Corrections are temporary noise. Keep to your instincts, hedge your $$. Do not be influenced by the herd mentality.

As a parallel, the population can't reduce to 3mil (ever) over the next months or years...Think! Think!

[Leeds]

Prices are not going to decline more than 5% until the economy takes a sharp dive or interest rates start rising aggressively. I am expecting 0 % to -5% movement in prices.
The govt is not trying to reduce prices but will be more than happy if prices stablise for a few years or at least until the next elections. They are hoping for a perfect equilibrium.

The government is trying to bring down prices. See my quote below from another thread.

DPM Therman said in no uncertain term that unless prices soften, none of the temporary measures would be withdrawn. I could not imagine prices start to move up again within a year. If this is so, we can expect more cooling measures. The government is so determine to tame the property prices even to the extend of reducing economic growth. I think we can trust the government this time round.

[Rosy]

From what i understand, measures are here to stay unless prices soften which means slight correction. But that does not mean government's intention is to cause a correction.

[Sam88]

Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam described the package as the "most significant to date" and stronger than those introduced in previous rounds. Some measures will be temporary and will be reviewed later, once prices soften, while others are likely to stay for the long term.

"We're not intending to engineer a market crash," he added.

[Leeds]

From what i understand, measures are here to stay unless prices soften which means slight correction. But that does not mean government's intention is to cause a correction.

DPM refused to get into a number (percent) when asked and that was understandable. This way, the government can manage the market as she see fits.