I found an excellent chart on the private residential property price index on Singapore Real Estate Info here that gives a graphical representation and the significant news and measures taken by the government from 1960 until 2010.
(Taken from singaporerealestate.info)
Back then at the peak of the market, the property news that made it to the papers were of the following;
- Enbloc sales being carried out or being proposed at private estates
- Record sale prices by developers
- Buyers queuing overnight with long queue lines at launches
- Influx of foreigners buying properties
- Flipping of properties to get rich
- Housing loans limited to 80% for property purchase
- Tax on gains from the sale of properties bought within 3 years
- Additional stamp duty within 3 years of purchase of properties for sellers
- Stamp duty for buyers of sales and sub-sales of uncompleted properties
- Foreigners not allowed to take housing loans
- Permanent residents limited to one housing loan
Fast forward 14 years later to the current state, the property news that are making to the papers now are generally the same as in the past though the property market now is not as hot as it was back then. Similarly, it is also seen that the government has introduced an increase in land sales to meet the demand and HDB will also be ramping up its flat supply. Measures to counter speculation have also been introduced though they are not as draconian as in the past. To me, it seems like history is going one full circle in a milder manner though. So the question is where will the market head to from now ? That is something for you to think about.
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Everything moves in cycles and the current boom is by no surprise, caused by low interest rates.
ReplyDeleteOnce the credit dries up, many of those who have been living lifestyles funded on that cheap credit will get schooled.