PNGMK wrote: ↑Fri, 28 Jul 2023 6:14 am
NYY1 wrote: ↑Fri, 28 Jul 2023 5:22 am
Wd40 wrote: ↑Thu, 27 Jul 2023 11:50 pm
Thanks! Yes, I am just venting it out here. BTW, I read that MoM has released the foreign workers stats as of Dec 2022. I find it strange, the number of EP holders has not crossed the peak of Dec 2019, yet rents have skyrocketed. I wonder what has caused the housing shortage. In 2018, there were so many houses vacant, we were spoilt for choice.
https://www.mom.gov.sg/documents-and-pu ... ce-numbers
Likely construction delays, demand for more space, and young adults that want to live on their own. The first factor will ease with completions this year. Whether prices break remains to be seen.
This topic needs a whole thread of it's own but as a
condo owner in Singapore and both miffed and pleased by the high ABSD. Miffed because it makes selling harder but pleased because I suspect rents will stay high for quite awhile as it's harder for real estate investors to get into the market and rent out units.
Yeah, I didn't list ABSD, but it is indirectly contributing to things. The other indirect factor is interest rates. I think because the housing market here is essentially financed by floating rate debt, the cost of goods sold has effectively gone up. Thus, the price of the good has to go up as well (no different from crude's impact on petrol). The fact that there is a large rental component to the market is probably why a lot of this can be passed on. Contrast that with other markets that are predominately fixed rate and owner occupied, a rise in rates usually hits (asset) prices (not 1:1 but to some degree). At least the increase in interest rates wouldn't be pushing up the rental rates. But here, the rise in interest rates makes it harder for people to purchase their desired home (mortgage payment going up) so they keep renting, which supports demand, irrespective of the higher price.
As for your miffed point, I think there is a delicate dance here where one needs to monetize when they can, not when they have to, and this probably means leaving a few dollars on the table. Due to both deprecation (either explicit by the lease or even effectively via the building in freehold) and financing constraints, the ability to trade can really freeze up as these properties age. This leads to a host of other issues, and at some point it's just not worth the hassle, even if you know eventually the enbloc will take you out. Take away the enbloc put and it gets even tricker.