Of reality check and market health

Singapore Property Review In August

Of reality check and market health

A direct consequence of the meltdown of the US sub-prime market is the abrupt halt of speculative activities in the Singapore property market.

Speculators, sub-sellers or flippers, whatever they are called, have pulled the MIA trick and the red-hot flame of the property market was doused in the second half of August.

In fact, the market quietness has followed an earlier fear that the Government might reintroduce some demand-side measures against property speculations earlier. Coupled with the subsequent share market turmoil, the property bull was booby-trapped and dealt a double-jeopardy.

Investors are exiting the stock market for fear of more bad news from the US. There are still plenty of unanswered questions on the extent of the damage. However, physical property market is strongly rooted on sound fundamentals such as the upcoming casinos, new jobs, rising rents and uplifting GDP figures.

Some foreign funds may have toned down their exposure here for a while fearing liquidity crunch; and some offshore funds may have faced difficulty getting financing, others are still funding property investments, though more cautiously than before.

However, genuine home buyers are not affected by the market uncertainties. Moreover, the temporary lull can be partly attributed to the traditional Hungry Ghost month and not just the stock market. Many developers are not launching new projects in a big way because of superstition.

Risk awareness that has risen generally with all that has happened around the world is a good thing to have. Many are now aware that, if the problem persists, it could lead to higher interest rates and thus higher borrowing costs which would in turn hit every investor’s pocket and affect asset value.

To put it in proper perspective, the property market is not being unravelled; it is just getting a reality check. The underlying economic fundamentals are still very sound – to say the least. Remember the investment maxim – buy on weakness and sell on strength.

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Singapore Real Estate - Buy , Sell , Rent ,invest Singapore Property
Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse & land right here.

MINDY YONG
( +65 ) 91002985
mindy@hotvictory.com ( email me )

http://www.hotvictory.com

Market crisis not over yet

Singapore Property Review In August

Market crisis not over yet

The financial market turmoil caused by the US sub-prime market woes will definitely act as a dampener on the property boom in Singapore, though unlikely to derail it altogether. But it is still too soon to conclude anything as it is quite clear that some dirt may still surface sooner or later.

A top International Monetary Fund (IMF) official has said on the last day of August 2007 that ‘the market turbulence has not fully receded’. So, buyers in general may buy into the theory that ‘it may be three feet high, don’t jump – there will still be a lot of blood on the floor’.

The United States Federal Reserve and European Central Bank have already injected billions of dollars and euros into the world’s financial system to stabilise it and allay fears of a contagion from the US sub-prime mortgage market.

Here in Singapore, the Monetary Authority of Singapore (MAS) is likewise keeping a close tab on the situation but it is a matter of how well different parties cushion the falls. The banks have come clean with some figures that they claim were just a trifle compared to their overall capitals. However, it is the pervasiveness of the problems that scares the daylight out of investors. It may take awhile before fears subside, and in the interim, property sellers will do well picking up a tip or two on the virtue of patience.

When you recommend a deal to me, you get 10% of the commission I earn.

Singapore Real Estate - Buy , Sell , Rent ,invest Singapore Property
Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse & land right here.

MINDY YONG
( +65 ) 91002985
mindy@hotvictory.com ( email me )

http://www.hotvictory.com