EC penthouse sold for record S$2.05m

[limlim]

Rational_Parent:

It's not call cooling measures for nothing. These measures are meant to cool down the property market, and this means bring down the price.

Will prices drop or just remain stable or rise slowly..? That's my question..

If the move is to raise the barrier for those who can barely afford.. then it will have limited impact on the prices right..?

[3Boys]

limlim:

Rational_Parent:

It's not call cooling measures for nothing. These measures are meant to cool down the property market, and this means bring down the price.

If the move is to raise the barrier for those who can barely afford..

Where on earth did you form this impression from?

Look at the policy announcement lah...

Impact on foreign buying, impact from 2nd property onwards...

To whom is this being targeted at? Obvious is it not?

It raises the bar right across the board. Or are you saying only the billionaires need to be targeted? Who are the people thronging the condo show rooms? Not the billionaires....

Property prices going up or down? Who knows? If someone has that crystal ball he don't need to go to work oredi.

But the policy measure is meant to put a damper on the market isn't it? Whether it just slows a rise in prices or causes a correction is anybody's guess.

[pirate]

3Boys:

To whom is this being targeted at? Obvious is it not?


It raises the bar right across the board.

It raises the bar right across the board, except for first-time homebuyers who are not thinking of overstretching themselves and potentially getting into trouble if interest rates should go up.

But if I were one of them, I would seriously reconsider whether it is absolutely necessary to buy NOW. The government has already told you there are 200,000 residential units in the pipeline. A 5% drop in price is... how many months/years of your salary? Don't say the MIW never warn you hor.

[limlim]

3Boys:

limlim:

[quote=\"Rational_Parent\"]It's not call cooling measures for nothing. These measures are meant to cool down the property market, and this means bring down the price.

If the move is to raise the barrier for those who can barely afford..

Where on earth did you form this impression from?

Look at the policy announcement lah...

Impact on foreign buying, impact from 2nd property onwards...

To whom is this being targeted at? Obvious is it not?

It raises the bar right across the board. Or are you saying only the billionaires need to be targeted? Who are the people thronging the condo show rooms? Not the billionaires....

Property prices going up or down? Who knows? If someone has that crystal ball he don't need to go to work oredi.

But the policy measure is meant to put a damper on the market isn't it? Whether it just slows a rise in prices or causes a correction is anybody's guess.[/quote]I meant.. those who can barely afford to buy property for pure investment only.. Those who are very rich is barely affected.

I'm aware the policies doesn't affect SG 1st time buyers much..

I never say the policy is good or not good.

I'm just curious on possible consequences on property markets and maybe property counters. No comments, no judgements.

[3Boys]

pirate:

3Boys:

To whom is this being targeted at? Obvious is it not?


It raises the bar right across the board.

It raises the bar right across the board, except for first-time homebuyers who are not thinking of overstretching themselves and potentially getting into trouble if interest rates should go up.

But if I were one of them, I would seriously reconsider whether it is absolutely necessary to buy NOW. The government has already told you there are 200,000 residential units in the pipeline. A 5% drop in price is... how many months/years of your salary? Don't say the MIW never warn you hor.

But S'poreans are unfortunately a desperate lot :siao: .

Those people lining up at the showroom before midnight to beat the policy implementation?

Sort of like queing to board a plane when you know there a good chance of a crash.

[3Boys]

limlim:

3Boys:

[quote=\"limlim\"]


If the move is to raise the barrier for those who can barely afford..

Where on earth did you form this impression from?

Look at the policy announcement lah...

Impact on foreign buying, impact from 2nd property onwards...

To whom is this being targeted at? Obvious is it not?

It raises the bar right across the board. Or are you saying only the billionaires need to be targeted? Who are the people thronging the condo show rooms? Not the billionaires....

Property prices going up or down? Who knows? If someone has that crystal ball he don't need to go to work oredi.

But the policy measure is meant to put a damper on the market isn't it? Whether it just slows a rise in prices or causes a correction is anybody's guess.

I meant.. those who can barely afford to buy property for pure investment only.. Those who are very rich is barely affected.

I'm aware the policies doesn't affect SG 1st time buyers much..

I never say the policy is good or not good.[/quote]Who contributes to the panic-buying of mass market condos hitting stratospheric price levels? Those who can barely afford, or the very well-off? And if they are knocked out of the market by the latest measures, why is it a bad thing?

The government is saying, if you can barely afford to buy a property right now, with interest rates so low, then you pretty much better stay at the sidelines because at some point in time there will be rise in rates, a surge in supply, and a correction in prices, and you are going to be in a sea of pain. And they are putting all kinds of barriers in place to discourage these people from throwing themselves over the cliff like mindless lemmings.

It is completely untrue that the very rich will not be influenced. They got to be very rich because they have been very careful and clever with their money. They don't go round chasing over-valued properties they can barely afford, paying huge upfront buying and liquidation taxes now in force.

My bet is that some of the very rich are just sitting tight on their money, waiting for a correction, then picking up the pieces. I.e. profiting from those who could barely afford to hold, who are liquidating at a big loss, and therefore enriching themselves even further. Meanwhile, if they want a lifestyle of the rich and famous, all they need to do is rent a GCB from some poor Singaporean owner getting 3.5% gross yield (i.e. making no money from the rental).

And oh, actually you did call the policy into question.

http://www.economist.com/news/finance-and-economics/21569396-our-latest-round-up-shows-many-housing-markets-are-still-dumps-home

[limlim]

3Boys:

Who contributes to the panic-buying of mass market condos hitting stratospheric price levels? Those who can barely afford, or the very well-off? And if they are knocked out of the market by the latest measures, why is it a bad thing?

Well, I feel its not a bad thing actually.. the govt is actually protecting those vulnerable..

I'm not sure where you get the impression that I'm criticizing the move (if any).. I'm just curious about the possible price movement.. so waiting for the experts including yourself to share their views/advise..

Questioning yes.. of coz.. criticizing, no, definitely.

I have very little awareness of how the property market works.

[Emelyn]

Rational_Parent:

PRs and people who have invested in second or more properties should be the worst hit this time around. Of course this in turn will also affect both upgraders and downgraders who have to offload their homes in order to do so because the buying side of the equation is affected.

Sorry for my ignorance. But why will the PRs and people who have invested in second or more properties be the worst hit ? Are you refering to them not being able to sell the unit ?

[Rational_Parent]

Emelyn:

Rational_Parent:

PRs and people who have invested in second or more properties should be the worst hit this time around. Of course this in turn will also affect both upgraders and downgraders who have to offload their homes in order to do so because the buying side of the equation is affected.

Sorry for my ignorance. But why will the PRs and people who have invested in second or more properties be the worst hit ? Are you refering to them not being able to sell the unit ?

It’s better not to reiterate. Hope you’ll understand better after reading these:
http://www.todayonline.com/Singapore/EDC130111-0000131/Govt-announces-new-property-cooling-measures

http://www.sfgate.com/business/bloomberg/article/Singapore-Home-Prices-May-Post-First-Drop-in-5-4191104.php

And the effects have prompted this posting for a start:
http://www.kiasuparents.com/kiasu/forum/viewtopic.php?f=1&t=36858&start=540

If property market dampens, those who bought more than one property for investment recently will have to decide what to - ride it out or sell; those who bought, say, two to three years back should still enjoy profits even if force to sell at 5-8% below current valuation. The measures do dampen the sale of property because the pool of PR/Foreigners buyers will likely shrink. Therefore, those investments not riding on rental yields to service loans will feel the impact of the cooling effect, unless of course they are tycoons or people with lots of cash to burn. Everyone in investment will feel the heat if the debt crisis in US which is around the corner is not handled well, particularly those investing in properties because they are not easy to liquidate.

[MMM]

dh have thoughts of selling of our property and use the proceed to either pay off the outstanding loans for other property or for future investment.


Told him to think twice now… If there is no concrete plans might as well continue to collect rental for the next 3 years + since we just renewed the tenancy for 4 years. Investing new property would mean hefty stamp duty. Not doing anything would mean our $ is idle in CPF. Also as the bank loan quantum drops with 2nd and other property, the cash outfront a new investment would be hefty too.

My cousin who has 4 properties was also having thoughts about additional investment due to the huge initial cash outlay as well as stamp duty. That is a deterent.

But we would prefer government to take such actions to cool then to have a property bubble. The bubble would be more painful for everyone.