many people do not understand what is happening in the property
market now because
1) it is not the local people buying these mega expensive condos
2) it is not like and it is unlike the previous boom (pre 1996), driven by locals (in herds to create an internal bubble that imploded)
3) there is no info (local people do not know) why is these people (foreigners) buying
4) majority of local, except for few, is still suffering from 1997 property crash, so alot of resentment and caution on property
This is my opinion;
The prices of the current hot properties are above $2.5 million (for 120sq m!!!!), most of these buyers (40% or more, thru corp or individual names, are all foreigners) are buying for investment. This is definitely not their first home.
Local rich people will buy 1 or 2 houses (at their own country) at "normal" price, super local rich will buy a few large houses (at their own country). There is only one group of people that will buy a "foreign" property at super high price; their net worth is 9 digits and above. Many local people do not understand them (because how many of us know one friend in this catergory?)are just saying the super rich (and foreigners) are throwing money in singapore, and a few million is nothing to them.
While it is true that a few million is nothing to them, these individuals are the super smart and super rich. They are super rich because they are very smart and are well inform on what is happening around the world; they invest globally. They know immediately when they see an opportunity to generate money.
What we are experiencing in singapore is the smartest group of the ultra mega rich people buying "first" into the Sing property market, they only zero in on the best prop and locale. Like stocks, they are building up their inventory before the other rich "herd" is coming in. Meaning this is the tip of the iceberg.
While many of us (and local people) who are struggling to put a roof over our head will not understand what is happening; imagine paying $4.8 million for an apartment the size of a HDB 5 room flat is just crazy for many of us.
These people have teams of (FULL TIME) professional who look into every property market in the world, and it is not one of them investing in 1 or 2 condo
s, they are buying up the central city area. Would you dare to put your money down, bet against these people and say that they are wrong? paying too much?
For me one thing is for sure, rent is going to go up up up......