i think you need to take a look at the bigger picture beyond supply/demand and pricing, eg. liquidity, general market sentiments, interest rates, inflation, statistics such as population (and its ratio of locals:foreigner, young:old, etc).Sergei82 wrote:...This makes me wonder - how property prices and its rental prices are correlated, if at all (I suspect, they are)?
Is it possible for rental prices not to depend on the actual housing prices?
Can property price go significantly down, while its rental price go significantly up at the same time?
Interesting - how far can it go? Any reasons for that? Can property market crash into oblivion, while rents go up twice as much?taxico wrote:IMO: in singapore the corelation is broad at best. it is possible for rental rates to not depend on property prices and also depends on the property type (sentosa bungalow with marina vs 3 room flat). rental prices can go down despite property prices going up, and the inverse is also true.
I think that would be a very likely possibility as owner start finding themselves in negative equity and banks hollering for top ups due to falling valuations causing negative equity mortgages. The owners will be trying to save their arses by jacking up the rents. That coupled with the new restrictions on renting out HDBs it's gonna cause some drastic changes, I fear.Sergei82 wrote:Interesting - how far can it go? Any reasons for that? Can property market crash into oblivion, while rents go up twice as much?taxico wrote:IMO: in singapore the corelation is broad at best. it is possible for rental rates to not depend on property prices and also depends on the property type (sentosa bungalow with marina vs 3 room flat). rental prices can go down despite property prices going up, and the inverse is also true.
my recent experience tells me otherwise. all the jumbos and EA/EMs i've viewed lately have owners who refuse to budge on their COV (80-200k) (yes, 200k COV for an EM at serangoon). and well priced big units (80-99k COV) usually get a lot of interest.Wd40 wrote:...The HDB resale market is currently dead. Reason being PRs were the biggest incremental buying group off late and the new measures have completely wiped them out of the market. How I know? The house I am renting is currently up for sale by the owner and he is asking for 40k COV and there is very little interest from buyers. Hardly any viewings in the last 2 months.
What about the corporate market?taxico wrote:my recent experience tells me otherwise. all the jumbos and EA/EMs i've viewed lately have owners who refuse to budge on their COV (80-200k) (yes, 200k COV for an EM at serangoon). and well priced big units (80-99k COV) usually get a lot of interest.Wd40 wrote:...The HDB resale market is currently dead. Reason being PRs were the biggest incremental buying group off late and the new measures have completely wiped them out of the market. How I know? The house I am renting is currently up for sale by the owner and he is asking for 40k COV and there is very little interest from buyers. Hardly any viewings in the last 2 months.
non-singaporean owners. no incentive to move if they can't upgrade, i guess.
i've not viewed 4-room flats and smaller, but only because the PSF is ridiculous, especially in mature estates.
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