Home buyers unfazed by loan curbs

I can think of a way how to get around this issue.
Older investors buy n put the properties under their children names.
Voila! Problem solved. In fact developers agents are recommending such tactics to get around it.

If the government is truly sincere to stop such issues, slap with a higher stamp duty on private property even on first timer.
Else raise interest rate on properties. Managed the i/r, send directives to banks like what the PRC is doing.
Though this will cost them votes among the rich ppl.

Garment has vested interest with Redas. Not sure? Look at Ng Teng Fong hospital coming up soon. Funded only a small percentage yet the name big big up there.

Thus all CM are half hearted measures, IMHO.

The party will end when it needs to end. Meanwhile I'm the biggest idiot not to partake in the property musical chair.

Only next Global financial crisis will dampen the market.

The best way i feel is to build more. Is all about demand and supply.

(07-10-2012, 03:43 PM)corydorus Wrote: The best way i feel is to build more. Is all about demand and supply.

Yes, it is about demand and supply, but must be genuine demand and supply

Speculative demand should be curbed. No supply will able to meet that demand, and it is one way to disastrous.

(07-10-2012, 04:40 PM)CityFarmer Wrote: Yes, it is about demand and supply, but must be genuine demand and supply

Speculative demand should be curbed. No supply will able to meet that demand, and it is one way to disastrous.

I'd just like to point out that property, like equities, can also be subject to emotion and speculative excesses. In fact, this may be even more pronounced as real estate generally moves slower and is less liquid, therefore people do not feel the pain of price drops so quickly. There is selective filtering of information as well - people who own an investment property WANT to hear news about prices going up.

People who have missed the boat are ever so eager to jump on it for fear of missing out, and the kiasu mentality and the news hyping everything up just exacerbates the problem(s).

Bottom line is - it is tough to guage the "real" demand and separate out the speculative portion. There is always a large group of people who are buying for investment and/or speculation - how do you disaggregate them from those who just want a roof over their heads? I can think of a few groups:-

1) HDB Upgrader
2) Mature couples with teenage kids buying a 2nd or 3rd investment property
3) Couples in their 30s buying their first investment property
4) Older people downgrading from a condo to HDB resale
5) Speculators who purchase to "flip"

So it's pretty hard to see if demand is speculative and the extent to which it is speculative. One way is probably to look at loan tenures and debt-servicing ratio to income.

(08-10-2012, 09:57 AM)Musicwhiz Wrote: There is always a large group of people who are buying for investment and/or speculation

This is very true. You can see that those featured on Sunday's Money and Me series, many owns multiple properties. They only need one roof over their head, so the others are for investment purposes and not genuine demand.

(08-10-2012, 10:06 AM)Ben Wrote:

(08-10-2012, 09:57 AM)Musicwhiz Wrote: There is always a large group of people who are buying for investment and/or speculation

This is very true. You can see that those featured on Sunday's Money and Me series, many owns multiple properties. They only need one roof over their head, so the others are for investment purposes and not genuine demand.

Many condos near my area are only half occupied despite TOP 1 year plus. Look at propertyguru and still see plenty of ads to rent out.

I just wonder, this also closely tied to our immigration. If they cut the immigration, especially EP holders/Student pass, who is going to rent those flats? Is the rental market strong here and supported by expats?

I always wonder how many expats reside in Singapore. There seems to be a lot of private properties for them to choose.

wonder the coming private properties for investment is for whom? especially those suburban ones.

But rental market still holding very well, demand still very strong.

maybe because it is an illiquid market and not an informed market? price might not drop because of that.