I just read this news in propertyguru.com.sg. According to Global Property Guide, Singapore home prices fell 0.9% in 2013 after a 1.13% dip in 2012. This meant that prices has been falling for two consecutive years, albeit marginally. I personally think this is a good sign. I have at least 3 Malaysian friends working in Singapore who has spoken to me every time we met that the prices of houses in Singapore is going through the roof. I think they are now happier?
What about Malaysia? Many have predicted that the prices of luxury properties may fall in double digit this year. I seriously think this may be true though other than that I have yet to feel any price change. The condo I am staying now is still at it’s same price range which meant that the secondary market has not been following much of the trend in primary market. The condo that I bought 6 months ago has also maintained its price at almost the same level when I refer to online sites. Thus, for mid level condos, its status quo.
The report however said that in most parts of the world, residential price are still growing in 2013, especially in US and Asia Pacific. It said that all 20 major US cities saw prices increase. I think this has been reflected in the many good news we hear these days about the US economy. In fact, the tapering may happen sooner rather than later by the new Federal Reserve Chief, Yellen.
Australia’s home prices continued its climb and if you google ‘property bubble australia’, you would notice there are more predictions about the potential bubble there. In Taiwan, prices increased by 14.5% in 2013 despite already growing 7.7% the year before. If you are saving, you have to save at least 25% extra if you did not buy in 2011. Pretty tough.
Many other European housing markets registered strong price growth too. Ireland (6.18%), Turkey (5.73 percent), UK (4.88 percent), Riga in Latvia (4.64 percent), and Iceland (4.33 percent). Typically, during financial crisis, prices of properties would drop. Can we conclude that the world economy is indeed better than previously? Perhaps not yet entirely, I still read about Spain and Greece having an unemployment rate of 26% and 27% respectively, a very high number even in comparison to majority of other European economies.
Suffice to say however that whatever investments we may want to do, it pays to understand the whole picture rather than just your own country. Many times, crisis may sometimes be a crisis of confidence, thus when sentiment turns bearish, everything becomes negative. For now, majority are in the black, so I think we are safe. Hope that I can do an update in another 6 months time and by then, everything will be even more rosier.
written on 21 March 2014
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