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29-12-2011, 01:14 AM
When nearly everyone starts to think that prices will fall, it will inevitably fall.
The new supply (many BTOs, ECs, land sale) will be more than able to meet the demand that is in the market.
So with the new supply, where is the new demand going to come from?
It's very much like hair salons, people start to complain when their waiting time/appointment is taking too long .
More players start to open shop.( I have seen places with over 20 hair salons clustered within a few blocks...amazing)
What happen next? Too many shops with too few customers, price war. Hair salons starts to close down. Pricing remains
weak with too much supply(think new houses) and a fixed amount of demand(Is population going to grow another 1M-2M? Unlikely)
To those who are still buying, I am totally baffled. Then again, I was reminded that there was a dot.com frenzy that made no sense.
To put this into perspective, we're not as mad.
The new supply (many BTOs, ECs, land sale) will be more than able to meet the demand that is in the market.
So with the new supply, where is the new demand going to come from?
It's very much like hair salons, people start to complain when their waiting time/appointment is taking too long .
More players start to open shop.( I have seen places with over 20 hair salons clustered within a few blocks...amazing)
What happen next? Too many shops with too few customers, price war. Hair salons starts to close down. Pricing remains
weak with too much supply(think new houses) and a fixed amount of demand(Is population going to grow another 1M-2M? Unlikely)
To those who are still buying, I am totally baffled. Then again, I was reminded that there was a dot.com frenzy that made no sense.
To put this into perspective, we're not as mad.