Recently an old friend said that if Singapore prices continue to fall, she may think of selling her Penang property and buy one Singapore property. She said this is a good diversification since her base is everything Penang currently. However, when I asked at what stage would she enter, she said she does not know and may want to wait a bit more. I think she may be in luck because according to a report online, prices in Singapore would continue to decline into 2015. Yes, this was what was predicted by Propnex.
Actually I am not sure if it is considered a bad news or a good news when it comes to falling property prices. Perhaps to the sellers, it is a bad news. To the buyers, if they are really buying, then it is a good news. While it is true that property prices declining is looked at negatively but what if this was what the government wanted in the first place? Surely the government was not aiming at total transactions right? Well, as long as the bubble did not burst and the market prices readjusts downwards, I think it’s considered a positive development.
In Singapore, private homes continue to fall for the fourth straight quarter, according to the data from URA (Urban Redevelopment Agency). Reasons given was due to the cooling measures, according to PropNex. Besides that, with the softening of HDB prices, it is also affecting the private homes prices. There were lesser buyers who could afford to upgrade or even motivated to upgrade. If we consider property prices readjustment downwards to be positive, should we be looking at even lower prices next year? With lower prices, would Iskandar property market face even more pressure? I think Singapore property prices can afford a breather at this moment. After all, the title as the most expensive city is not something to be proud of. It’s best to lose this title next year.
A check online showed that prices does seem to be more affordable for the units which are slightly above 1,000sf. This was not the case previously.
written on 30 Oct 2014
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