I think you do not understand the impact of property price fall,
so far for the past years, it had shoot up tremendously, non stop.
Once there is a downfall, it will hv a domino effect that affect
all things, more so are those who had bought it at 600k for a 5
rms, ++interest total 700k++ will be still paying more than what
his pals who just bought it for 300k, who during his time, he could
had paid off by now or able to pay one time off. The sudden shift
of property prices down would create a scenarios for foreigners to
withdraw and in a all business related economy like
singapore, you will see fall in sharemarkets, construction,
industrial supporting construction and so on,..at the lower end,
earn less, eat less and travel less, food stalls will take in less
and taxi drivers etc etc will hv to suffer.
Drastic price falls are very detrimental to Singaporeans who bought
flats at a high price.
For example, if a Singaporean bought a home at $1m, and owes the
bank $800k.
There is a sudden property crash and the value of his home has
now fallen by half to $500k for example.
Given that the bank now values the property lower than the
outstanding loan amount, the bank can decide to exercise its right
to demand the Singaporean to pay up the difference (ie 800k -
500k = 300k). If he cannot pay up that lump sum, the bank has
the right to repossess the home.
