Think property market will be quite dead this few months

[Eldenfirefly]

I think the property market will be quite dead these few months.

All the buyers will pause and reassess the situation. Many hoping for prices to come down because of the new changes, so few people will commit now.

Sellers got holdings power, most will refuse to lower price. Anyway, now got 3 year stamp duty, so what's the hurry to sell? If sell too soon, will kenna the stamp duty. So, don't even bother putting the property on the market.

End result, standoff between the two sides with very few transactions happening. So dead or super quiet property market this few months.

What do you all think?

[rattydrama]

The developers will work with the banks to come back with new marketing tactics to revive the buying market.

They have done that before:

• Defer payment
• No installment till TOP
• Interest absorptions scheme
• Rebates
• Discounts
• NTUC points
• Lucky draws (buy house get 1 car free)
• Absorption of stamp duties (now maybe including the 3 year SSD???)

However, garment will be watching and make sure these twisted campaigns wont fault the rules.


I mentioned about bridging loan make easy in another thread earlier. Anyone have further suggestions?

[pengful]

Depends on target segments. For mass market where majority of buyers are HDB upgraders (impatient upgraders) who meets the 5 yr MOP but have outstanding loan, they will pause and re-work their financial position, therefore, won't buy so quickly.

For mid to up-market segment, buyers may not be affected that much but they may still wait for developers to drop prices in the coming months due to market sentiments.

[Localite]

So far selling price about 10% above valuation. So now maybe banks might get more realistic valuation close to selling price, which then means 70% loan or 80% loan because less consequential. Dont know if this is correct logic.

But one think I agree is that sales volume will drop. Pity agents more than buyers/sellers.

[isaaclim]

The developers will work with the banks to come back with new marketing tactics to revive the buying market.

They have done that before:

• Defer payment
• No installment till TOP
• Interest absorptions scheme
• Rebates
• Discounts
• NTUC points
• Lucky draws (buy house get 1 car free)
• Absorption of stamp duties (now maybe including the 3 year SSD???)

However, garment will be watching and make sure these twisted campaigns wont fault the rules.


I mentioned about bridging loan make easy in another thread earlier. Anyone have further suggestions?

They are handful legal ways to work around with the rule on LTV. I can't stop laughing when I saw someone post that reduce LTV to 70% is government good act to protect banks!

[devilplate]

They are handful legal ways to work around with the rule on LTV. I can't stop laughing when I saw someone post that reduce LTV to 70% is government good act to protect banks!

care to elaborate on the ways to work around the ltv?

[Komo]

yes, probably banks are already busily formulating such products to work around. Any bankers here want to comment?

[ronyyk76]

I think the property market will be quite dead these few months.

All the buyers will pause and reassess the situation. Many hoping for prices to come down because of the new changes, so few people will commit now.

Sellers got holdings power, most will refuse to lower price. Anyway, now got 3 year stamp duty, so what's the hurry to sell? If sell too soon, will kenna the stamp duty. So, don't even bother putting the property on the market.

End result, standoff between the two sides with very few transactions happening. So dead or super quiet property market this few months.

What do you all think?

Agent suffer first. Some established agent will take long break. Many newbie will turn in-active and some may quit.

Banker will have plenty of time on Ëating Snake..

[dmonddd]

let me give you all an analogy of the property mkt situation.

genuine buyers who are renting - holding ur pee for 30 mins until you cant hold anymore and off you run to the toilet and unzipping along the way and hope to hit the first urinal bowl (ideal buy) but alas....the toilet is under maintenance (market moved upwards)

next floor, wah lau ...toilet ok but all full... (continue to trend upwards)

hang on there for another minute and phew what a relief moment all flushed out (it's a need to buy)

[Komo]

there are still quite a number of strong interested buyers at the sideline all these while wait-ing and see-ing. eg those who had profited handsomely from the earlier sales. I believe any sign of price drop they will hop in. so the mkt may still have good support.

[Condorich]

I believe that the new measures did nothing much but to put both buyers and sellers at the side line for a quarter or two. Wait and see attitude till after elections.

The economy is intact and with superb GDP growth, the prices should only be up. The price will likely remain at current asking less 5 to 10% at best. What you will see is a reduced number of deals.

What the policy is doing now is the moderate the demand and not to kill them. People have to fork out more to buy their dream house. They can either save or lower their expections. The real ones that will withdraw from the market are the speculators with a short term view of 1 day to 3 years. Genuine buyers will buy as they still need a roof.

I wont be surpised if property prices shoot up after elections.

[Geylang OKT]

very very quiet....

[peterng8]

I believe that the new measures did nothing much but to put both buyers and sellers at the side line for a quarter or two. Wait and see attitude till after elections.

The economy is intact and with superb GDP growth, the prices should only be up. The price will likely remain at current asking less 5 to 10% at best. What you will see is a reduced number of deals.

What the policy is doing now is the moderate the demand and not to kill them. People have to fork out more to buy their dream house. They can either save or lower their expections. The real ones that will withdraw from the market are the speculators with a short term view of 1 day to 3 years. Genuine buyers will buy as they still need a roof.

I wont be surpised if property prices shoot up after elections.

all sellers dont sell, wait till election over....

[devilplate]

all sellers dont sell, wait till election over....

water ghosts wait longX3

[Wild Falcon]

Quiet contempation is good. Hopefully after the dust settles, the market becomes more mature and rational based on fundamentals. Property with strong fundamentals should continue to do well under all circumstances. Those that will suffer are the overhyped ones with poor fundamentals - poor yields and poor upside potential. An ideal and healthy property market should comprise more owners-occupier than specuvestors. In the past few years, specuvestors have dominated the market - making the property market more like a casino where properties are trading liks casino chips.

very very quiet....

[Geylang OKT]

Quiet contempation is good. Hopefully after the dust settles, the market becomes more mature and rational based on fundamentals. Property with strong fundamentals should continue to do well under all circumstances. Those that will suffer are the overhyped ones with poor fundamentals - poor yields and poor upside potential. An ideal and healthy property market should comprise more owners-occupier than specuvestors. In the past few years, specuvestors have dominated the market - making the property market more like a casino where properties are trading liks casino chips.

Wise words indeed

[Wolverine23]

this is quite true...

another scenario could be that the better properties would appreciate further with the rest of the market remaining stagnant.

Quiet contempation is good. Hopefully after the dust settles, the market becomes more mature and rational based on fundamentals. Property with strong fundamentals should continue to do well under all circumstances. Those that will suffer are the overhyped ones with poor fundamentals - poor yields and poor upside potential. An ideal and healthy property market should comprise more owners-occupier than specuvestors. In the past few years, specuvestors have dominated the market - making the property market more like a casino where properties are trading liks casino chips.

[azeoprop]

No new launch or preview this coming long weekend?