This boom is under the premiership of LHL who is more creative. Parks, Lakes, canals, rivers, sea contributes to the upsurge of property value even if there is not much movement in the economy.
What makes this property boom different from the previous boom?
1.To start thread,no HDB involved in this boom .
2.Mass market boom not involved yet,but soon.
2.Mass market boom not involved yet,but soon.
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Last time no Casino involve.
Last time Hongkee came in force to speculate now the whole world is investing.:lol:
Last time Hongkee came in force to speculate now the whole world is investing.:lol:
Different mindset.
Last time: Property prices for asset enhancement, but then realised this was making average people more asset rich and more cash poor!
This time: Ferrari ownners of the world, welcome...
Last time: Property prices for asset enhancement, but then realised this was making average people more asset rich and more cash poor!
This time: Ferrari ownners of the world, welcome...
Then…
Boom fueled by HDB upgraders, who after decades, were sitting on hundreds of thousands of dollars of capital gains, pushing, from the bottom up, prices of entry level condos, then the mid-tiers, and so on and so forth… what I call the “push effect”…
Now…
Prices have surpassed the highs of the 90s but only in prime locations and districts… resale HDB prices are still a far cry from the highs achieved in the 90s…
This time, the boom is fueled by, IMHO:
1, rich foreigners conveniently parking their millions in what they perceive (or our government have them perceive) as a safe haven. Don’t forget we have to thank our neighbors for giving this perception to the rich foreigners too, for everything is relative;
2 the emerging of the local new rich, though I don’t really know where they came from and they really caught me by surprise;
3. the supply crunch no thanks to the seemingly never-ending en-bloc fever, and together with point 4 below, help push up the rents to all time high and in turn justifying higher property prices;
4. more jobs created, more FTs working here and government’s open-arms policy for foreign talents and turning Singapore into financial hub and whatever hubs you can think of;
5. eager anticipation of the 2 IRs and the promises they made… more jobs, more tourists, more businesses, more MICEs, more spending, more of everything along with the ripple effects etc; and
6. demand-side pent-up frustrations… the property market was in doldrums since 1997 and every attempt for a recovery was marred by the bursting of the internet bubble (2000), September 11 (2001), Iraq war and war on terrorism (2002), SARS (2003)…
To me, this is call the “pull-effect” – the high-end prices starting the charge up and pulling the rest of the spectrum of the market along with it.
Just my 2 cents’ worth…
Boom fueled by HDB upgraders, who after decades, were sitting on hundreds of thousands of dollars of capital gains, pushing, from the bottom up, prices of entry level condos, then the mid-tiers, and so on and so forth… what I call the “push effect”…
Now…
Prices have surpassed the highs of the 90s but only in prime locations and districts… resale HDB prices are still a far cry from the highs achieved in the 90s…
This time, the boom is fueled by, IMHO:
1, rich foreigners conveniently parking their millions in what they perceive (or our government have them perceive) as a safe haven. Don’t forget we have to thank our neighbors for giving this perception to the rich foreigners too, for everything is relative;
2 the emerging of the local new rich, though I don’t really know where they came from and they really caught me by surprise;
3. the supply crunch no thanks to the seemingly never-ending en-bloc fever, and together with point 4 below, help push up the rents to all time high and in turn justifying higher property prices;
4. more jobs created, more FTs working here and government’s open-arms policy for foreign talents and turning Singapore into financial hub and whatever hubs you can think of;
5. eager anticipation of the 2 IRs and the promises they made… more jobs, more tourists, more businesses, more MICEs, more spending, more of everything along with the ripple effects etc; and
6. demand-side pent-up frustrations… the property market was in doldrums since 1997 and every attempt for a recovery was marred by the bursting of the internet bubble (2000), September 11 (2001), Iraq war and war on terrorism (2002), SARS (2003)…
To me, this is call the “pull-effect” – the high-end prices starting the charge up and pulling the rest of the spectrum of the market along with it.
Just my 2 cents’ worth…
Believe it or not, and like it or not, property prices will go up and go down, and go up, and go down… the property cycle is there and there’s no stopping it.
However, although property goes through a cycle like clock-work, each cycle is unique and the economics and environment each time is different.
Those who are lucky (or old) enough would have experienced at least one of these cycles and gain wisdom from it, and hopefully made some money along the way…
However, although property goes through a cycle like clock-work, each cycle is unique and the economics and environment each time is different.
Those who are lucky (or old) enough would have experienced at least one of these cycles and gain wisdom from it, and hopefully made some money along the way…
Cascading effect.
Funds and expat super rich buy super high end.
Local super rich cannot afford super high end,buy high end.
Middle rich cannot buy high end buy middle level.
And so it goes.One day middle level earners got no middle level condos to buy buy big HDBs or niche HDBs.
Funds and expat super rich buy super high end.
Local super rich cannot afford super high end,buy high end.
Middle rich cannot buy high end buy middle level.
And so it goes.One day middle level earners got no middle level condos to buy buy big HDBs or niche HDBs.
Yup, I’m afraid that’s how this property boom will work out… mystrey solved! next…! :lol:Cascading effect.
Funds and expat super rich buy super high end.
Local super rich cannot afford super high end,buy high end.
Middle rich cannot buy high end buy middle level.
And so it goes.One day middle level earners got no middle level condos to buy buy big HDBs or niche HDBs.
First, whole world much, much, more globalised now, with easier infrastructure (flights, markets, and market facilatators) - hence, last time was only HK'ers as this market did not have easy access for investors
Second, global asset prices have gone up a lot - last time, properties in the UK/US were much cheaper than SG. Not to mention, China, India, etc, etc. I did not really want to by in HK in 1997 as it was much too expensive compared to UK.
Third, SG is only playing catchup to last boom. It hasn't (yet) doubled it's previous peak). That's why it was especially obvious that HK bounced back after SARS, but SG didn't until now.
All this but still doesn't mean it can't crash again. So each market is different. I think all that means that the current rise is justified, but does not mean it should necessarily double again or crash again.
Second, global asset prices have gone up a lot - last time, properties in the UK/US were much cheaper than SG. Not to mention, China, India, etc, etc. I did not really want to by in HK in 1997 as it was much too expensive compared to UK.
Third, SG is only playing catchup to last boom. It hasn't (yet) doubled it's previous peak). That's why it was especially obvious that HK bounced back after SARS, but SG didn't until now.
All this but still doesn't mean it can't crash again. So each market is different. I think all that means that the current rise is justified, but does not mean it should necessarily double again or crash again.
The rich and super rich values, amongst many things, safety and security the most… they (and their kids) want to be able to roam the streets freely without fear of being robbed or kidnapped… they want stability in the political system and don’t want their wealth/properties confiscated or suffer financial losses because of sudden change in governments and/or their policies… Malaysia (spelt Bumi), Thailand (political unrest and troubled south), Indonesia (corruption and riots), and Philippines (kidnapping and terrorism) are examples that worries the rich…
Yet, when you compare the already sky-high property prices in Hong Kong, Shanghai, and far away Sydney, Melbourne, London, and New York with Singapore’s, there’s little wonder why the rich Chinese, Indians and Arabs are choosing to park their wealth here…
I heard from my friend who is in the property business that some agents gather up options from buyers of Sentosa Cove projects, fly to Dubai and flip them… these rich Arabs may never set foot on Singapore but what better way to park their money here?
Yet, when you compare the already sky-high property prices in Hong Kong, Shanghai, and far away Sydney, Melbourne, London, and New York with Singapore’s, there’s little wonder why the rich Chinese, Indians and Arabs are choosing to park their wealth here…
I heard from my friend who is in the property business that some agents gather up options from buyers of Sentosa Cove projects, fly to Dubai and flip them… these rich Arabs may never set foot on Singapore but what better way to park their money here?
Last time HKers scared of returning to China. Many become PR and buy HDB flats. :lol:
This time is global property market boom, due to China, India booming economies print more money, oil exporting countries with huge profit margin from sky-high oil price. Sudden demand from the many more ultra-high net worth individual, coupled with limited supply of high-end luxury property in globally connected cities. Plus, everyone thinks ASEAN is the next engine of growth. Perhaps many ppl think ASEAN only has one global city.
This time is global property market boom, due to China, India booming economies print more money, oil exporting countries with huge profit margin from sky-high oil price. Sudden demand from the many more ultra-high net worth individual, coupled with limited supply of high-end luxury property in globally connected cities. Plus, everyone thinks ASEAN is the next engine of growth. Perhaps many ppl think ASEAN only has one global city.
This boom is supported by high end gahment.:cheers:
Maybe telling us Sg still too slow to boom.Must be faster.
Maybe telling us Sg still too slow to boom.Must be faster.
knight frank agentsThe rich and super rich values, amongst many things, safety and security the most… they (and their kids) want to be able to roam the streets freely without fear of being robbed or kidnapped… they want stability in the political system and don’t want their wealth/properties confiscated or suffer financial losses because of sudden change in governments and/or their policies… Malaysia (spelt Bumi), Thailand (political unrest and troubled south), Indonesia (corruption and riots), and Philippines (kidnapping and terrorism) are examples that worries the rich…
Yet, when you compare the already sky-high property prices in Hong Kong, Shanghai, and far away Sydney, Melbourne, London, and New York with Singapore’s, there’s little wonder why the rich Chinese, Indians and Arabs are choosing to park their wealth here…
I heard from my friend who is in the property business that some agents gather up options from buyers of Sentosa Cove projects, fly to Dubai and flip them… these rich Arabs may never set foot on Singapore but what better way to park their money here?
for me:
1) mass market speculation not significant. *and I hope it doesn't*
2) huge infrastructure investments (IRs, more reserve land released, etc). This enhances a city's "vibe" which enhances quality of life. This is what the rich goes for.
I seriously think the government should concentrate on lifestyle based projects (like Gardens at the Bay, revamping of Clarke/Boat Quay,improving seascape) rather than more malls. we have more than enough malls.
1) mass market speculation not significant. *and I hope it doesn't*
2) huge infrastructure investments (IRs, more reserve land released, etc). This enhances a city's "vibe" which enhances quality of life. This is what the rich goes for.
I seriously think the government should concentrate on lifestyle based projects (like Gardens at the Bay, revamping of Clarke/Boat Quay,improving seascape) rather than more malls. we have more than enough malls.
We have more than enough malls, just not enough labels only. hno: :lol:
hno: :lol: for me:
1) mass market speculation not significant. *and I hope it doesn't*
2) huge infrastructure investments (IRs, more reserve land released, etc). This enhances a city's "vibe" which enhances quality of life. This is what the rich goes for.
I seriously think the government should concentrate on lifestyle based projects (like Gardens at the Bay, revamping of Clarke/Boat Quay,improving seascape) rather than more malls. we have more than enough malls.
Some part of this boom arises from the local speculators, encouraged by the deferred payment scheme with small upfront cash 5%.
The relaxation of cash upfront payment by the government plays a part in the higher subsale and flipping activities.
Appears that MAS has raised concern and they are monitoring.
Also partly due to the high level of enbloc sale and units taken off from the supply market. However, this would be genuine demand to replace their units.
The relaxation of cash upfront payment by the government plays a part in the higher subsale and flipping activities.
Appears that MAS has raised concern and they are monitoring.
Also partly due to the high level of enbloc sale and units taken off from the supply market. However, this would be genuine demand to replace their units.
Prime London Property Prices At 30-Year Highs
Reuters
London, UK
20 May 2007
Prime central London property prices are growing at their fastest in almost 30 years -- and at 3 times the rate of the wider British market, figures show.
The value of the best properties in central London has risen by more than 33% in the 12 months to end-April, according to estate agent Knight Frank's prime property index.
That is the fastest rate of growth since mid-1979 and means prices in central London are rising at three times the UK average.
A property worth just 100,000 pounds in 1976 would now be worth more than £4.1 million, the index shows.
Knight Frank said demand had been supported by growing numbers of overseas buyers and money spent on property by City bankers.
Over the past year, Belgravia and Knightsbridge have seen the strongest market, with prices surging by more than 40%.
Head of residential research Liam Bailey said: "London's traditional spring market rush starts earlier and earlier every year. For the past two years, the season has opened in December rather than March, and has run on well into May.
"The early part of 2007 saw an incredibly active market, with price growth totalling nearly 11.9% in the first quarter."
He said, even after 18 months of strong price appreciation, the pace of growth was yet to slow and, if anything, had quickened.
In the six months to end-April, monthly price growth averaged 2.8%, against 1.7% in the same period last year.
"The strong performance of the top end of the market can be attributed, at least in part, to the continuing health of the City economy and the bonus season," said Bailey.
"However, it is our experience that, whilst there have been growing numbers of deals completed by City workers, it is the influx of overseas buyers -- European, Russian, Indian and increasingly Middle Eastern -- which is the key to the substantial price growth seen in many areas of central London."
Knight Frank data shows that the supply of available property fell by more than 50% in the first quarter of 2007, compared to a 17% rise last year.
Looking forward, Bailey believed stock shortages would continue to buoy the market.
Higher transaction costs -- stamp duty, in particular -- mean people are moving less often, while the introduction of home information packs (HIPs) this summer is also likely to cause a drop in supply, he said.
The controversial packs -- designed to making the home-buying process more efficient, cut the number of transactions that fall through and encourage homeowners to reduce energy consumption -- are due to come into force in England and Wales on 1 June, but have met fierce opposition.
HIPs are expected to cost sellers around £500 and estate agents have been reporting a rush to complete deals ahead of their introduction.
The Knight Frank prime central London residential index charts the value of property at the top end of the market: flats and penthouses with an average value of £2.5 million and houses valued at close to £5 million.
Reuters
London, UK
20 May 2007
Prime central London property prices are growing at their fastest in almost 30 years -- and at 3 times the rate of the wider British market, figures show.
The value of the best properties in central London has risen by more than 33% in the 12 months to end-April, according to estate agent Knight Frank's prime property index.
That is the fastest rate of growth since mid-1979 and means prices in central London are rising at three times the UK average.
A property worth just 100,000 pounds in 1976 would now be worth more than £4.1 million, the index shows.
Knight Frank said demand had been supported by growing numbers of overseas buyers and money spent on property by City bankers.
Over the past year, Belgravia and Knightsbridge have seen the strongest market, with prices surging by more than 40%.
Head of residential research Liam Bailey said: "London's traditional spring market rush starts earlier and earlier every year. For the past two years, the season has opened in December rather than March, and has run on well into May.
"The early part of 2007 saw an incredibly active market, with price growth totalling nearly 11.9% in the first quarter."
He said, even after 18 months of strong price appreciation, the pace of growth was yet to slow and, if anything, had quickened.
In the six months to end-April, monthly price growth averaged 2.8%, against 1.7% in the same period last year.
"The strong performance of the top end of the market can be attributed, at least in part, to the continuing health of the City economy and the bonus season," said Bailey.
"However, it is our experience that, whilst there have been growing numbers of deals completed by City workers, it is the influx of overseas buyers -- European, Russian, Indian and increasingly Middle Eastern -- which is the key to the substantial price growth seen in many areas of central London."
Knight Frank data shows that the supply of available property fell by more than 50% in the first quarter of 2007, compared to a 17% rise last year.
Looking forward, Bailey believed stock shortages would continue to buoy the market.
Higher transaction costs -- stamp duty, in particular -- mean people are moving less often, while the introduction of home information packs (HIPs) this summer is also likely to cause a drop in supply, he said.
The controversial packs -- designed to making the home-buying process more efficient, cut the number of transactions that fall through and encourage homeowners to reduce energy consumption -- are due to come into force in England and Wales on 1 June, but have met fierce opposition.
HIPs are expected to cost sellers around £500 and estate agents have been reporting a rush to complete deals ahead of their introduction.
The Knight Frank prime central London residential index charts the value of property at the top end of the market: flats and penthouses with an average value of £2.5 million and houses valued at close to £5 million.
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