http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_734143.html
Really interesting to note that new private home sales are down 15% for the month of October. As a real estate salesperson, I do feel that the sentiment of buyers in general are one of "wait and see". No one knows what is going to happen to the global economy. Europe may or may not implode, China may have a hard landing and the US recovery story may not be as buoyant as earlier anticipated. If new private home sales are down 15%, I would encourage home seekers to take a closer look at the URA website to get a feel of the resale home market. Volumes have been diminishing since the first half of this year.
I personally feel that prices have run ahead of fundamentals. This then comes to my point. Paying in excess of $900 per square foot for a 99-year leasehold property in Punggol may not make much sense. Reason being that a 3 bedroom apartment with an average size of about 1000 square feet may translate to a price of a million Singapore Dollars. Which then brings me back to the point of "how many people can afford a property higher than today's prices?" My fellow graduates are not making tons of money. Most of them are earning salaries of about $4,000 to $5,000 a month at the age of about thirty. A loan of $800,000 would set them back about $3,000 a month thereabout depending on the interest rate. How much more can prices increase such that they can sell it for a profit in future? $1,500 per square foot for a unit in Punggol? With about 80 plus years left on the lease? What will the typical buyer say about the purchase he made today?
"For own stay. So high or low it does not matter to me".
My response, "I bought my car for own use. I am glad I bought it when it was 50% the price of a similar model today."
No one can guarantee that the house they buy today will be last house they will ever live in. Buying for own stay is the worst excuse for the financial suicide that buyers are getting themselves into these days.
This is a property boom of epic proportion. Prices have skyrocketed since the lows in January 2009. A mere two and a half year time frame has brought us to the dizzy heights of today. For those who jumped in without much thought, I pray that this boom is not a bubble in disguise.
Yours Sincerely,
Daryl Lum
(+65) 9009 8731
visit my website @ www.DarylLum.com
read my blog @ www.DarylLum.blogspot.com
