No, it determined by the asking price. Most Singaporean are not selling at fire sales where they would have to take whatever they can get. Most are opportunists so set their prices very high. Eventually somebody will pay the price.Wind In My Hair wrote: How are resale prices determined? By the going price. When the most expensive HDB in Singapore is bought by an Indonesian paying
close to $1 million, what do you think that does to prices across the board?
One Indonesian buying is not going to affect the entire market, neither will 15% foreign buyer, which is more like the max that the government claims are foreign buyers, about a month ago in the local birdcage liner. If 17 out of 20 buyers are local and the price is high. Then it would appear that the locals themselves are doing the ramping up of prices.
I would agree, however, that it is foreigners that drive up the private housing rental market. Companies here, both local and MNC, bring in foreigners and they have to have a place to stay. Again, too often we see local owners who have just sat on their condos empty for months on end in order to hold out for a higher amount - usually a corporate lease. The auction like tactics of the local real estate brokers in conjunction with the owners doesn't help matters either. If there were honour among thieves, it would be a different story.