Re PRH's view on intervention - the only intervention that the gahmen has done before (in market crash times) is toPrimroseHill wrote:PNGMK & WD40, gave some sound advice. My personal view is that it is a medium to long term view on properties here. Take a 5-10years view vs rental. Also some basic calculations - what happens if interest rates goes up to 5%? Also in terms of buying there are other factors to consider - central core region or outside the central core region, freehold vs leasehold, space vs location or do you have the ability for both, types of property in the event that at a latter date you have to rent it out rather than selling it- so the target market. Well these are some of the issues we considered before buying.
In terms of rats, sinking ships etc, I believe that SG is small enough the govt will plow in and meddle in the event of hyper inflation, hyper deflation, SG economic crash and rats all abandoning ships.
We bought here in SG, as we took the abovementioned view and took a punt and I am still hoping that in 10-12years time I will win the bet
1. No great.GQ_AUSSIE wrote:Thank you all for your sound advice. I do agree that the Singapore market is highly volatile due to it being a pure market economy wholly controlled by the many levers at the Govt's control. I personally think that that biggest signal is interest rates and by extension, the level of disposable income to service debt ( though this is correlated with the employment market).
Acccordingly:
1) What are your views on the strength of the local economy?
2) What are your views on the employment rate and wages growth?
3) What are your views on the exchange rate Aud/Singapore and US /Singapore?
4) Do you think the Govt can simply turn on the migration tap and allow more wealthy PRCs and Indos to buy more properties? Do these foreigners still have the financial wherewithal?
I think a correction is overdue. Propertiy prices at circa double digit multiples of annual average Singapore income is extremely high. Nonwithstanding that, the Govt cannot let prices drop too far as many households have a large proportion of their financial wealth tied up in bricks and mortar. If so they will not perform well at the next GE .
Your thoughts are appreciated.
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