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Thread: Herd instinct may lead to property bubble

  1. #1
    mr funny is offline Any complaints please PM me
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    Default Herd instinct may lead to property bubble

    http://www.straitstimes.com/ST%2BFor...ry_409814.html

    July 30, 2009 Thursday

    Herd instinct may lead to property bubble


    THE recent surge in sales of new condominium developments seems like a godsend, but there's a fear that things may be building up to a bubble.

    It could just be speculative demand as some of the terms offered by developers are very attractive. Commonly, there is a 5 per cent deposit and a 15 per cent payment within eight weeks, with no further payment till the Temporary Occupation Permit (TOP) period, which may be in two to three years' time.

    People who book these apartments basically invest 20 per cent of the property price and may flip the property within the two-year period and make a tidy profit.

    Last month, 1,825 new homes were sold, according to the Urban Redevelopment Authority, up from 1,673 in May and 1,216 in April. At this rate, 20,000 units may be sold this year, with a good number having their TOPs in two to three years' time. That's when a crunch could come about, as buyers put their properties on the market before having to fork out the full amount. Will there be ready buyers?

    The recent surge in sales boils down to the herd mentality of Singaporeans and I suggest that caution be exercised. No need to follow the crowd. After all, the property prices are not so attractive when you think that a condominium of about 1,000 sq ft may cost up to $1 million, not a small amount of money.

    Anil Bhatia

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    Quote Originally Posted by mr funny
    http://www.straitstimes.com/ST%2BFor...ry_409814.html

    July 30, 2009 Thursday

    Herd instinct may lead to property bubble


    THE recent surge in sales of new condominium developments seems like a godsend, but there's a fear that things may be building up to a bubble.

    It could just be speculative demand as some of the terms offered by developers are very attractive. Commonly, there is a 5 per cent deposit and a 15 per cent payment within eight weeks, with no further payment till the Temporary Occupation Permit (TOP) period, which may be in two to three years' time.

    People who book these apartments basically invest 20 per cent of the property price and may flip the property within the two-year period and make a tidy profit.

    Last month, 1,825 new homes were sold, according to the Urban Redevelopment Authority, up from 1,673 in May and 1,216 in April. At this rate, 20,000 units may be sold this year, with a good number having their TOPs in two to three years' time. That's when a crunch could come about, as buyers put their properties on the market before having to fork out the full amount. Will there be ready buyers?

    The recent surge in sales boils down to the herd mentality of Singaporeans and I suggest that caution be exercised. No need to follow the crowd. After all, the property prices are not so attractive when you think that a condominium of about 1,000 sq ft may cost up to $1 million, not a small amount of money.

    Anil Bhatia



    who is Anil ?

    if he has writteb this last week i will respect him for his courage to be different from hind sight anal-yst ..and for warning buyers what could happen


    but why such an article only after MAH spoke ?



    another wipe ass writer

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    Quote Originally Posted by mr funny
    http://www.straitstimes.com/ST%2BFor...ry_409814.html

    July 30, 2009 Thursday

    Herd instinct may lead to property bubble


    THE recent surge in sales of new condominium developments seems like a godsend, but there's a fear that things may be building up to a bubble.

    It could just be speculative demand as some of the terms offered by developers are very attractive. Commonly, there is a 5 per cent deposit and a 15 per cent payment within eight weeks, with no further payment till the Temporary Occupation Permit (TOP) period, which may be in two to three years' time.

    People who book these apartments basically invest 20 per cent of the property price and may flip the property within the two-year period and make a tidy profit.

    Last month, 1,825 new homes were sold, according to the Urban Redevelopment Authority, up from 1,673 in May and 1,216 in April. At this rate, 20,000 units may be sold this year, with a good number having their TOPs in two to three years' time. That's when a crunch could come about, as buyers put their properties on the market before having to fork out the full amount. Will there be ready buyers?

    The recent surge in sales boils down to the herd mentality of Singaporeans and I suggest that caution be exercised. No need to follow the crowd. After all, the property prices are not so attractive when you think that a condominium of about 1,000 sq ft may cost up to $1 million, not a small amount of money.

    Anil Bhatia
    well for some folks 1m out of 10 or 20mil is chum change, a group that anil obviously does not belong ...

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    Quote Originally Posted by august
    well for some folks 1m out of 10 or 20mil is chum change, a group that anil obviously does not belong ...
    His advice might be more towards the mass market. I think everyone would have figured out that mid-tier and luxury markets are left to their own devices.

    Anyway.. Newspaper articles are more for educating the public than to advise the rich. Don't think any richie take notice of newspaper articles..

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    anyway i agree with proud owner.. this kind of letter is useless other than to wipe someone's ass.. could well be a ghost writer too, planting false letters to push/support an agenda ~

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    teddybear is offline Global recession is coming....
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    Newspapers are useful if they provide the raw data and information but useless reading their processed data (i.e. their opinions or suggestions) because if these reporters are so good, they won't be reporters anymore! (They will be sailing somewhere in their personal yacht and enjoying life).

    Quote Originally Posted by focus
    His advice might be more towards the mass market. I think everyone would have figured out that mid-tier and luxury markets are left to their own devices.

    Anyway.. Newspaper articles are more for educating the public than to advise the rich. Don't think any richie take notice of newspaper articles..

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    Quote Originally Posted by august
    anyway i agree with proud owner.. this kind of letter is useless other than to wipe someone's ass.. could well be a ghost writer too, planting false letters to push/support an agenda ~
    all publication in papers are vetted before they are allowed to print ..

    even the news on TV everyday and night ..they are actually some 5-10 sec delayed ..

    meaning what we see and hear is 5-10 sec late ..this will give time to authority to censor, in cast the broadcaster decides to pull a fast one ...

    so much for First world status, so much for first class entertainment ..
    shame on you Singapore

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    anyone know whats the property price 20 years ago, 10 years ago v right now?

    Anyone can speculate the price 10 years later and 20 years later v right now?

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    the guy who wrote the article is obviously a loser who has missed the boat n whining bout the climbing prices now.

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    Quote Originally Posted by mr funny
    After all, the property prices are not so attractive when you think that a condominium of about 1,000 sq ft may cost up to $1 million, not a small amount of money.

    Anil Bhatia
    This is one of the strangest statements I've ever read.

    If someone offers me a 1,000 sf condo for $1 million around Ardmore Park or Cuscaden Road area, I'll take the whole development (and worry about financing later).

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