Properties overpriced July 09? False Dawn? Correction again?

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Expat's pal
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Properties overpriced July 09? False Dawn? Correction again?

Post by Expat's pal » Sun, 05 Jul 2009 4:16 pm

I happen to own residential properties in the core district areas. I am a bit appalled when agents have been saying to me which other unit and unit in my properties have been sold these few months. But, when I check the caveats, those units they claimed sold since 2-3 mths back didn't show up till today. A caveat does not take this long to appear. I feel cheated.

Now I am thinking of purchasing properties, agents told me which unit and which unit have been sold at current shot-up prices hoping to unnerve me into buying. And, when I seriously research around, those units have not been bought at the 'shot-up' prices they have tried to coerce me into. Buyers seem to know not to be over exuberant.

And, yesterday, when I was enquiring about prices, one agent even got me intellectually insulted by talking up the property markets beyond reality as if I have no inkling what is market price. He said didn't I read the newsapers. And that the Singapore, HK and Australia property markets have picked up. But, just these 2 days, Business Times have clearly reported the reverse in HK and Australia. And, even the local papers (if someone ever is prudent enough to look at the 2nd half of any article), properties veterans and analysts are trying to warn buyers not to be over-exuberant with this pent-up buying and prices. Adding that it could be a false dawn.

W-effect or U-effect? Correction coming again? Comments?

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AngMoKio
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Post by AngMoKio » Sun, 05 Jul 2009 6:25 pm

There appears to be some surplus on the market that recent corrections have not taken into account. I am expecting a continual slide for the next 6 months as some overvalued properties come into line with reality.

Or, to put it another way - Some properties seem already to be priced reasonably, while some owners are still in denial.

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Post by Strong Eagle » Mon, 06 Jul 2009 1:18 am

I'd expect a slide in prices something like in the crash of '97... 40 to 45 percent off peak for middle to high end properties.

The current spike is temporary and I believe is driven by locals hoping to flip for a profit as opposed to holding for longer term investment.

The crash will be hard when all the flippers actually have to cough up real money for the investments they have made when there is no buyer in sight.

I figure that 2nd quarter, 2010 might be a good time to start sniffing around.

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