Housing prices are ridiculous, yet Singaporeans are still
queuing up to buy. Why?
I can understand those who need a new place and have no choice,
for reasons like getting married, but why the rest are willing to
pay no matter how high the prices get beats me. Is
it bacause they think that prices will go up further (meaning
they will not lose money when they sell)? What goes up must
come down, some people will get their hands burnt one day.
this is not the first time housing prices go up, when they come
down, it will not the first time. Many people got their hands
burnt before, but you see the same people in the market again.
Speculating in property is still quite profitable, making a
few $100K in a few weeks is not unheard of in a growing market. and
compared to stock and shares, the return is better, probably more
secured.
To many who have money, parking the money in
a Singapore property means you invest in S$, not
likely to go down against other currencies, and properties market,
in a land scarce Singapore, will retain its value in the
medium and long term, so if value stays, currency stable, it
is a good investment to begin!
So what is there for Singaporean? I think many Singaporeans are
confused with buying houses for own stay and for investment, with
buying HDB and private properties. If we expect the market to
change to suit us, to pressure the government to control the market
to suit us, then we will continue to be pessimistic, but the future
is not doomed, many can still stay with their parents.
Singaporean should look at the HDB market, where foreigners and
local speculators are not eligible, and go in when necessary; and
if you have money to invest, then look at the condo and see where
you can have reasonable rental returns to help your instalment, if
you have a lot more money, look at the landed properties, sit and
wait for capital appreciation.
Nobody serious in looking for a house, look at prices alone.
