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Thread: En bloc effects

  1. #1
    Join Date
    Nov 2008
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    2,438

    Default En bloc effects

    Saw this online. Well, it could move either way but the writer make some good points. Especially the delay effect of enbloc. Just sharing.


    There are only 8k private condos that will TOP in 2018 and 2019. Well below the 12-13k yearly demand based on past data. And we know how enbloc will affect the market drastically. There are a lot of people who will have 3-5 million dollars on hand. And they are forced to move out in 6 months after enbloc. Where will they go? Remember they have tons of money. Yes, the supply will come but it will take a min of 4 years (ie: 2021/2022). But those wanting to get a place in 2018 and 2019 will still buy and will be competing with many of those who have 3 - 5 million at hand. And those en bloc owners NEED to buy. Or they rent. But why would anyone rent if they know the market will go up and don't forget they have tons of money. No amount of cooling measures will stop these cash rich buyers who have to buy because they do not have a place to stay. And they won't be affected by any TDSR because these people do not need a loan. No doubt some people will buy resale HDB but this will just make matter worse because those who sell their HDB will have money to enter private property. So the 6.7 billion dollars en bloc this year will find their way to the market in one way or another. Don't forget in 2006, the 8 billion dollars enbloc caused the market to go up 40% in 2007. And enbloc has a delay effect of 1 year. We are at 6.7 billion now and still counting. I am not saying prices will go up. I am saying look at history and make a judgement for yourself.

  2. #2
    Join Date
    Apr 2015
    Posts
    45

    Default

    Quote Originally Posted by thomastansb View Post
    Saw this online. Well, it could move either way but the writer make some good points. Especially the delay effect of enbloc. Just sharing.


    There are only 8k private condos that will TOP in 2018 and 2019. Well below the 12-13k yearly demand based on past data. And we know how enbloc will affect the market drastically. There are a lot of people who will have 3-5 million dollars on hand. And they are forced to move out in 6 months after enbloc. Where will they go? Remember they have tons of money. Yes, the supply will come but it will take a min of 4 years (ie: 2021/2022). But those wanting to get a place in 2018 and 2019 will still buy and will be competing with many of those who have 3 - 5 million at hand. And those en bloc owners NEED to buy. Or they rent. But why would anyone rent if they know the market will go up and don't forget they have tons of money. No amount of cooling measures will stop these cash rich buyers who have to buy because they do not have a place to stay. And they won't be affected by any TDSR because these people do not need a loan. No doubt some people will buy resale HDB but this will just make matter worse because those who sell their HDB will have money to enter private property. So the 6.7 billion dollars en bloc this year will find their way to the market in one way or another. Don't forget in 2006, the 8 billion dollars enbloc caused the market to go up 40% in 2007. And enbloc has a delay effect of 1 year. We are at 6.7 billion now and still counting. I am not saying prices will go up. I am saying look at history and make a judgement for yourself.
    Population virtually did not grow so i guess there won’t be a 40% increase next year. But it should bring down the high Vacancy % & bring some cheers & reliefs to Landlords.

  3. #3
    Join Date
    Jun 2009
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    Southbank
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    9,531

    Default

    Anyone know what will happen will be very wealthy soon.

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