S'pore home prices still falling

[strongman93]

Unlikely because we still have low jobless rate. In fact the managed effort to control down the housing price past years probably avoided a contingent bubble which maybe uncontrollable.

agreed and with the 50% deposit on vehicle purchase, we have been implemented a mindset to cut back and only spend on needs and not wants.

Sent from my SM-N9005 using Tapatalk

A lot of my 40s friends are retrenched and been looking for jobs. Some are underemployed.
Just a few years back, they were high flyers.


**If they have started investing in property which can create passive income which can cover their expense, retrenchment is not a big deal. it is an independence day where you are free to explore what you want to do in you life to achieve more. 

personally, I dont believe in the 'passive' part of passive income. All investments will go 'chao sng' over time. Need to reallocate over time.

Reallocating is not a big problem as long as you already have the bullets invested and growing. rather than retrench and no income at all. end up in bedok reservoir as final destination. hopefully not

[CityFarmer]

The interest rates are on their way up, albeit slowly now...

Singapore mortgage benchmark rates climb to seven-year high

SINGAPORE (Jan 14): Singapore short-term interest rates used to set mortgages surged to a seven-year high on speculation central bank activity in the currency market is resulting in rising borrowing costs.

"The authorities are buying their currencies and selling US dollars," said Hideo Shimomura, the chief fund investor in Tokyo at Mitsubishi UFJ Kokusai Asset Management. "They are absorbing liquidity from the market. The money market is drying up."

The three-month Singapore interbank offered rate climbed to 1.25300%. The three-month swap offer rate advanced to 1.76235%. The figures are at the highest levels since October 2008, according to data compiled by Bloomberg. While both are used to set mortgage rates, Sibor-based loans are more common, according to PropertyGuru Pte's website.
...
http://www.theedgemarkets.com/sg/article...-year-high

[CityFarmer]

The ABSD is a pain for Singapore property investment.

Kwek predicts Govt will lift ABSD this year

SINGAPORE — The Additional Buyer’s Stamp Duty (ABSD) may be abolished this year given the supply of homes that are coming into the market amid the increasingly challenging global economic climate, Mr Kwek Leng Beng, executive chairman of City Developments (CDL) predicted yesterday.

He added, without going into specifics, that mid and low-end private housing could see further price declines this year, while the luxury segment will likely remain subdued.

“Developers hope that the Government presses the button sooner than later … I would think that they would do something this year. That’s my speculation, especially this year, when you have a lot of mid-end and low-end homes coming up. I suspect it will be the abolishing of ABSD,” said Mr Kwek on the sidelines of CDL’s financial results briefing yesterday.

“But for us in the industry, we are looking at it through a very small lens. The Government is looking at it in a bigger picture. Not only are they concerned about the residential market, they are also concerned about the other structural issues,” he added.
...
http://www.todayonline.com/business/kwek...-absd-year

[jjlim84]

The ABSD is a pain for Singapore property investment.

Kwek predicts Govt will lift ABSD this year

SINGAPORE — The Additional Buyer’s Stamp Duty (ABSD) may be abolished this year given the supply of homes that are coming into the market amid the increasingly challenging global economic climate, Mr Kwek Leng Beng, executive chairman of City Developments (CDL) predicted yesterday.

He added, without going into specifics, that mid and low-end private housing could see further price declines this year, while the luxury segment will likely remain subdued.

“Developers hope that the Government presses the button sooner than later … I would think that they would do something this year. That’s my speculation, especially this year, when you have a lot of mid-end and low-end homes coming up. I suspect it will be the abolishing of ABSD,” said Mr Kwek on the sidelines of CDL’s financial results briefing yesterday.

“But for us in the industry, we are looking at it through a very small lens. The Government is looking at it in a bigger picture. Not only are they concerned about the residential market, they are also concerned about the other structural issues,” he added.
...
http://www.todayonline.com/business/kwek...-absd-year

for these words to come out from a person like Mr Kwek, I suspect there should be some basis or possibility, based on his reputation and connections with the government...

[AQ.]

It's probably time to relax something, imo.

The economy largely depends on spending from consumers, investments, government and exports.

With a weak external demand impacting exports, lack of fiscal space given the first term of office, 2 pillars of the economy are suffering. I think domestic consumption is still strong but that will also depend on the severity of the retrenchment in the O&G, commodities and banking sector.

The SGD dollar needs to be strong to curb domestic inflation arising from the foreign labor tightening as well as the G's efforts to raise wages for the lower paid workers, hence there's little room to ease as well.

Removing some curbs will probably give a boost - Gupta has also mentioned last week that some tailwinds will be preferable agst so many headwinds. On the ground, I am seeing plenty of SMEs in the construction sector seeing rising receivable days leading to credit tightening. Remember the entire supply chain is affected - the blokes supplying cement, copper wires, interior finishings etc, not just the fat cat developers at the top.

[corydorus]

Large portion of our "FREE" Money that can be enabled for property investment is tied to Saving, CPF, Bonus and Borrowing from the banks which in turn their lifeblood . With increasing cost, the trend will support compensation on flexi type off bonus, and the monthly salary increase maybe much slower.

We run with Temesak supporting our national CPF income.To keep the whole engine going. ie. Banking sustainability, Population Growth Target, compensating the Weakened O&G industries, even Telco profitability, gaps in China investments ...

I do agreed there should be some relieve in curbs but not sure where EXACTLY. Suspect it may not be exactly or just ABSD.

[yeokiwi]

I do not see the benefits of letting the prices of properties rise. I prefer it to be stagnant.
The worth of the properties is dependent on the output of the economy. An economy that banks on passive rental income and churning of properties is not going to work in the long term.

I know everyone likes to live on passive income but if everyone chooses to do that, who is going to contribute to the economy? Foreign talents?

If the prices remain stagnant with reducing rental income, isn't that great?
At least, more will choose to earn a living via other means than passive income.

Anyway, there is no penalty for first time house buyers and every family gets to buy a house without any additional penalty.
The additional manpower that is servicing the real estate industry can be converted to perform other jobs/businesses.

[jjlim84]

I do not see the benefits of letting the prices of properties rise. I prefer it to be stagnant.
The worth of the properties is dependent on the output of the economy. An economy that banks on passive rental income and churning of properties is not going to work in the long term.

I know everyone likes to live on passive income but if everyone chooses to do that, who is going to contribute to the economy? Foreign talents?

If the prices remain stagnant with reducing rental income, isn't that great?
At least, more will choose to earn a living via other means than passive income.

Anyway, there is no penalty for first time house buyers and every family gets to buy a house without any additional penalty.
The additional manpower that is servicing the real estate industry can be converted to perform other jobs/businesses.

using rental income for consumption, isn't that contributing to the economy?

Housing is not a single concept, stagnant house prices does not ensure everyone goes out there and work and create value, it is more complex than that imo

[Bibi]

Prices sky high and pp who bought will be in huge debt and forced to work to clear off debt. In a way forced to contribute to economy. I have a friend who became multi-millionaire from investing in property. I ask him why you still want to work? He said because by working and having an income, the bank will be more willing to loan to me for more property acquisitions.

[corydorus]

Prices sky high and pp who bought will be in huge debt and forced to work to clear off debt. In a way forced to contribute to economy. I have a friend who became multi-millionaire from investing in property. I ask him why you still want to work? He said because by working and having an income, the bank will be more willing to loan to me for more property acquisitions.

That's true. Is not easy to get a loan without employment. And you may also have re-financing issue.