Averting a property bubble

[corydorus]

Can please help share the magnitude of the correction be like ?

[arthur]

How come the sentiment changes from big bubble to big correction?
Is this even an appropriate remark from someone who has been advocating Government is the biggest land issuer and no way property would correct?

Anyway, in my opinion, CM7 is a good measure, as it target both financing and taxation part.
From now on, only those with biggest liquidity buffer can buy more properties.
Am I turning into a property bull?
No. But I believe CM7 has an effect in deflating the bubble that was getting dangerous to Singapore economic foundation.

Do I think our current property bubble is as bad as 1997? No neither.

[Musicwhiz]

In FM 93.8 yesterday by K Desuosa , guest of the speaker was Mano Sabmani. Mano's advice was ' avoid property all the way ', he said we are at the verge of big correction on price.

These are just opinions - there is no definitive reason for property to undergo a big correction, unless he thinks the cooling measures have a lot of bite.

He has to give his reasons, logic and arguments before people take him seriously.

[weijian]

Frankly I don't believe nobody knew it was coming. Just like Singapore property market now... Most people know the end would come but everybody is listening to the music. When the music ends, interest rates will collapse regardless whether you are Austrian or not as demand collapses.

Reminds me of a quote by Chuck Prince, Citibank's ex-chief before GFC2008, made in July2007 that goes like this 'As long as the music keeps going, you gonna get up and dance...we (Citibank) are still dancing'

[cfa]

Can ask him if anyone likes.

https://www.facebook.com/#!/pages/Mano-S...88?fref=ts

[lanoitar]

These are just opinions - there is no definitive reason for property to undergo a big correction

I dunno how Mano arrived at his conclusion, but let me share with you data compiled by last week's issue of Economist:

[Image: 20130112_FNC117.png]
Source: http://econ.st/13kURUN

The above calculation of over/under valuation is based on comparison with long-term price-to-rent and price-to-income ratio since 1975. The P/I data is not available for Singapore, but it doesn't take a genius to figure out how we're faring on this end.

Of course, there are multiple variables at play, liquidity being one of them. However, as we've witnessed over and over again, when P/E (aka price-to-rent in this case) goes to ridiculous level, it will pop.

[2V.]

Since the first cooling measure, the government already advocates the price of property is too high. Now we already experience the 7th cooling Measure! How much has the price appreciates?

Just like stocks, most long term investors will buy during market correction, and ride future potential gains. Buy on dips on stocks for past years has not fail me...

Everyone is expecting a property correction - In my view what's important is what happen after the correction?

We tend to judge the level of risk by our own parameters: Risk comes from not knowing what you are doing.

At one time in your life, before you built up the necessary knowledge, skills and experience, they were high risks activities for you.

For property market - If you have the buying power, you have to make a judgement call.

In FM 93.8 yesterday by K Desuosa , guest of the speaker was Mano Sabmani. Mano's advice was ' avoid property all the way ', he said we are at the verge of big correction on price.

[cfa]

I remember he said never challenge the S'pore gov policy. If the gov wants the property price to go down, they really meant it and will see to it.
He also said gov will not increase foreigners here for the time being until housing price stop rising.

[Contrarian]

> he said never challenge the S'pore gov policy. If the gov wants the property price to go down, they really meant it and will see to it.

He is just another investor. I have met him at AGMs... nothing great his questions.

Singapore govt will ALWAYS welcome people buy homes. The higher price the better. Because it means they will have less chance run away.

There could be more Singaporean ICs handed out... Some PRs will become Singaporeans... and that's their intention too... :-)

I didnt figure this out. A taxi driver I met said this... He is sharp at reading the possible outcome of the measures :-)

[2V.]

Some countries are flexible in re stating the citizenship .

Can I denounce and and join back as Singapore citizen years later? Anyone can advice ?

> he said never challenge the S'pore gov policy. If the gov wants the property price to go down, they really meant it and will see to it.

He is just another investor. I have met him at AGMs... nothing great his questions.

Singapore govt will ALWAYS welcome people buy homes. The higher price the better. Because it means they will have less chance run away.

There could be more Singaporean ICs handed out... Some PRs will become Singaporeans... and that's their intention too... :-)

I didnt figure this out. A taxi driver I met said this... He is sharp at reading the possible outcome of the measures :-)