Property Market - The Tipping Point

[Musicwhiz]

Have we come to the tipping point yet? Attached please find article in TODAY.

[yeokiwi]

No. The unemployment rate is still low.
No one will want to sell their property at lower price if they can afford to pay the monthly mortgage payment.

The properties yield will go lower to induce rental demand.
Now, instead of sharing an apartment, some may want to rent a full apartment to themselves.
Instead of sharing room, some may want to rent the entire room to themselves.

Some may become homestay for tourists!

[koh_52]

No. The unemployment rate is still low.
No one will want to sell their property at lower price if they can afford to pay the monthly mortgage payment.

Good point Yeo san, to add on from your, IMO:

1. Population decline? i dun see it happen now or next 12 mths...MRT still packed like sardine.
2. Over-supply, not so fast lar...to make baby you need 9 mths, to complete a normal size project you need 4 yrs, so 2014/15 is still a long way to go, anything can happen within this period. Hence, you will never see over-supply in the next 12 mths.
3. low interest interest, lagy dun have to said clear cut next 12 mths it wouldn't happen.

My take, ppty price next 12 months - FLAT, maybe it could fall by 2-3% in worse scenerio.

[Bibi]

My guess is the property will start to wobble when interest rate start to increase. That will happen when USA and Europe recovers and inflation comes back.