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Thread: property price drop due to recession ?

  1. #31
    Join Date
    May 2020
    Posts
    88

    Default Re: property price drop due to recession ?

    See this period as opportunities rather than crisis !!!! Stay safe at home! :P P

  2. #32
    Join Date
    May 2020
    Posts
    31

    Default Re: property price drop due to recession ?

    who dare to buy during recession unless the price is value buy

  3. #33
    Join Date
    May 2020
    Posts
    82

    Default Re: property price drop due to recession ?

    Grace go buy share!

  4. #34
    Join Date
    Jul 2020
    Posts
    4

    Default Re: property price drop due to recession ?

    In my opinion, everything is all about demand and supply.

    The government has cut supply of new land parcels to build homes, most of the current new launches have sold 40% or more and they have time to sell until after they TOP. There is not expected to be many new launches in 2nd half of 2020 and in 2021.

    If you are looking to buy a property, below is an article on how COVID may affect your home buying decision making.

    https://www.latestprojectlaunch.com/...eir-dream-home

  5. #35
    Join Date
    Jul 2020
    Posts
    6

    Default Re: property price drop due to recession ?

    Quote Originally Posted by shininglight View Post
    There is not expected to be many new launches in 2nd half of 2020 and in 2021.
    Doesn't matter as there won't be demand either.

  6. #36
    Join Date
    Dec 2020
    Location
    Grand Nusa Indah Cileungsi
    Posts
    1

    Default Re: property price drop due to recession ?

    Many people expect property prices to decline, but here (in Indonesia) it is unlikely that property prices will fall in the next few years. However, the down payment for the home ownership credit seems to have decreased for the Grand Nusa Indah Cileungsi housing unit.

  7. #37
    Join Date
    Dec 2020
    Posts
    3

    Talking Re: property price drop due to recession ?

    Quote Originally Posted by STEVETEO View Post
    I wish too, I still hoping for good buy. As I miss a lot of opportunities in the past. zzz
    lets have a open discussion on this topic 90077854

  8. #38
    Join Date
    Jul 2015
    Posts
    484

    Default Re: property price drop due to recession ?

    Quote Originally Posted by PropVestor View Post
    Having 60% of my wealth in hard assets, I cannot say I feel completely fine with what is going on.
    1) Will my tenant ask for rental reversions during their tenancy period now to next year.
    2) Existing just completed ones like PPR for me, what is the asking rental rate today. Seems like a race to the bottom. Some key collection are stuck but you got to pay maintenance regardless.
    3) Loan refinancing due to interest rate cuts to reduce outlay. I refinanced 2 of my properties these 2 months. Reduction of 0.5 to 0.7% in interest PA.
    4) Not looking at liquidating anything yet coz we know prices will take a beating and its coming in the next 2-3 quarters.
    Monetary policy will run out of ammo with each passing day. Even Fed Powell hinted on Congress to put in fiscal policy moves (13th May 2020).
    I do not believe in negative interest rates just as I do not believe in unlimited QE, it has to stop at some point.
    5) REITs and other dividend investment not drawing that attractive yields due to dividend cuts and re-basing.

    Locally, my personal view is that with CMs, this is actually saving some of us from over gearing before this CV-19 crisis but that does not put us all away from the meltdown. It just puts a longer distance towards the pit. If businesses do not do well (not sure you guys run essential businesses, I don't), one of these properties will have to go. I hope this is not the case but with crisis come opportunity. Things are at a bargain (not stocks, not yet) if you wait a little longer. Hopefully not one of mine.

    All the best,

    PropVestor
    Nice to see some of you (and Archachon) is still around! Well, well , well. What a crazy chaotic year. In march we saw lockdowns, stock market meltdown, crazy donald blaming china, and it was all doom and gloom. Fast forward 2021 now, looks like (1) property is still going up (2) stock market STI back to almost pre CV level.

    Seriously, didn't think it was going to be like this. There was some worry in the beginning when the pandemic really hit. But we stayed the course. Our property valuations are stable. Our tenants are still paying rent, we didn't have to cut our rental (cos our units are not luxury units but "basic plain vanilla" properties.).

    We were getting ready to look for bargains, expecting property to drop 10-15% in the 2 or 3 years since the covid19 lockdown. I guess that's not happening , from the look of it.

    Overall, I have to say -- Well done, Singapore -- for weathering the storm so far. Touchwood, vaccine will bring down the raging fire globally.

    Have a good recovery year everyone!!!

  9. #39
    Join Date
    Jul 2015
    Posts
    484

    Default Re: property price drop due to recession ?

    Quote Originally Posted by Arcachon View Post
    There is evidence-based on STI and private property has correlation.
    If you use all the data price points released by URA (Pte property including landed) from the 90s and plot it to today.
    And superimpose the STI benchmark data, you will realize 2 things.
    1) private property and HDB prices have a strong correlation. (0.8+)
    2) STI index and private property have some correlation. (0.9+)
    Note: Using Pearson Correlation Co-efficient of -1 to 1 range where 1 is the highest or the strongest correlation.
    Source: REITs Screener

    In layman terms, there is a lagging effect of the pte property prices against the STI index by up to 6-9 months.
    In short, if we see the bottom of the STI index say this year in Nov. By 2021, mid-year, you will see a price correction.

    Agree there was a correlation before 2009 but after 2009 the correlation no more applies.

    Are you referring to the correlation till 2009 and use it to apply to 2021.
    Again, interesting to see how things panned out vs forecast. Bottom for STI was April May. I put in some money in March.
    Property? Was targetting a property this year... told my wife it's an opportunity. Dang, it actualy went up 5% since last year.
    Oh well

  10. #40
    Join Date
    Nov 2015
    Posts
    514

    Default Re: property price drop due to recession ?

    Good to see you around too bro.

    For those in the market for property, stocks are running low with a healthy take up, build times are longer. Foreigners cannot come in to bid land for the time being as I did not see alot of land sales activity YET.

    For those vested, like what you said, stay vested. Things are looking brighter than ever for hard assets as the dollar tanks, interest rates go down alot longer.....Holding power is the key.

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