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by huggybear » Wed, 23 May 2007 6:50 am
Investment bankers / real estate agents are not good at predicting the future. they can only tell you what's going on: RIGHT NOW.
If they were any good at predicting the future why wouldn't they:
(1) work for themselves instead of for someone else
(2) already have amassed a fortune or are retired or leisurely trading their billions of dollars
Anyways, i'm one of those hated "banker" people. The current prognosis is exactly what SMS says. Next two years are expected to continue to see strong price appreciation with a lot of supply coming to market in 3 years. Everyone around the world is white hot to invest in Asia and singapore's real estate market has lagged that of: Shanghai, Seoul, HK, Tokyo, etc. So foreigners see value in Singapore real estate.
That being said no one really was able to predict the Asian Financial Crisis of 1997, the tech bubble bursting in the US in 2001 (and leading to another soft period in Asia), etc.
The only risk I see in the market at this moment in time is that the Chinese stock market is a bubble and it's going to end badly. However, Everyone depends solely on the US economy in Asia. If China's bubble bursts and it's only a domestic problem, and doesn't cause a systematic regional crisis as in 1997 then happy days should continue. If the US goes into recession or we have another 1997 style crisis thanks to China's equity market imploding then you'll be toast.
Furthermore, Japan had "deflation" (negative inflation), not "stagflation" which is high inflation and zero growth. Japan went into deflation because their real estate market was a bubble and it burst. Singapore's market isn't a bubble because now in 2007 people are finally breaking even on their investments on purchases made in 1997.