Do you know what tomorrow will bring? Neither do I.
We can't even predict next week let alone 6 months from now. The government revises it trends weekly. They always having to downgrade the performance with a host of explanations if you've ever noticed. Which only means one thing to me - They should pay their economic advisors more money or replace them as they continually get it wrong!
But that's the point isn't it. We don't have a clue.
Nobody can predict with perfect accuracy - there I agree with you.
However at this point I am thinking in line with scooby there... I have always had reservations about all the hypes around real estate (fake) "boom" here. Almost one year ago to the date I almost bought a place and everybody around me (and obviously the agent) was encouraging as they were painting rosy pictures about prices of condo
- IR, Jurong redevelopment, an incoming enbloc etc. I finally did not do it as I feel the price is a little above my affordability. Right now, that same place was offered at about 20% less. I do believe the same with rental - they'll only head downwards from here on - at least for the next year or so.
Someone said the rental decline must stop in prime area since there need to be certain differential between prime and suburban - what was forgotten was that once that differential is achieved, the suburban rental will start declining. Futile attempt on "cushioning the blow". Lesson is, don't build house of cards on top of just hype without basis. An economy based on trade and finance can't sustainably grow at 7% yoy without going through severe corrections at times. When an economy like that grows more than 4% for 3 years in a row someone needs to prepare everyone for the trough that's coming - and that's without the global malaise. Can't take the cake and eat it - better save em for rainy days. Now, employment will be limited, and let's see what those same people who said rental will keep increasing since there will be 6 mil people 3 years from now, would say.
If they took the ups with a good understanding about what the up is about and what down will come, then it's all fine. It's just pathetic if one is surprised that the wheel is turning...
Having said that, to be honest, I've lost a lot betting on a high level of oil price during those "good" days (actually it matured last month
Bah!). So yeah, who knows what will happen.