Tan Kin Lian's Blog: Cool the property market

Friday, January 14, 2011

Cool the property market

Further measures have been announced.
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1104498/1/.html

8 comments:

yujuan said...: Govt should have announced measures to clamp down on property purchases by foreign companies much earlier, they are the ones to drive up the market prices and by buying the S$ to finance the purchases, they contribute to the sharp appreciation of our dollar.
But then the Govt want to make money first by selling land at high prices. Thus part of the blame should fall on Govt's greed too. High State land sales = high property prices. So don't blame property buyers entirely.; January 14, 2011 1:37 PM
Lye Khuen Way said...: In my opinion, these were long over-due ! What took them so long ? Must be the coming GE and Not-so-Sweet ground feedback that finally woke them up.; January 14, 2011 1:51 PM
yujuan said...: For the past few months, the Govt had been aggressively selling State land, all in the name of pushing out supply to meet robust demand, and when their kitty is full now, they push out measures, in the name of cooling the market.
In property, it is wiser to follow the big boys, all these boys were keeping quiet when State land were sold, and only the smaller or new develpers bidded for them.
Remember these big boys may have caught wiff of the impending measures within the Establishment, so they are laying low, the smaller boys may be left carrying the baby.; January 14, 2011 2:23 PM
Eric said...: This comment has been removed by the author.; January 15, 2011 1:22 AM
ron said...: There is always talk about "impending recession" and another crisis.

The world financial system cannot take another shock.
And all the economists, bankers, politicians and even business owners agree and understand it.
Therefore, it will not happen. They will guarantee that it will not happen.

The US is printing large sums of money out of thin air. The rest of the world is buying up US$bonds, China has done so too. This demonstrates tacit agreement that there is only 1 route to take:

Avoid collaspe at all cost

With such doggedness and resolve, which is also demonstrated by the EU bailing out banks and even countries, there will not be any collaspe within the next 50 years.

Whatever dampening that occurs will be by individual gov actions such as the ones we see here in singapore. Very targeted and specific.

Hardly a crisis. ( only for the gamblers )

The doom & gloom that is regularly dished out will not happen.

I say: stay the course and continue to spend or invest... please do not keep money under the pillow or in the bank.; January 15, 2011 2:35 PM
Eric said...: This comment has been removed by the author.; January 15, 2011 11:53 PM
ron said...: Yes, interest rates will "eventualy"
rise.. when? lord knows!

How much will they rise?
Lord knows!

If we take the current rate SIBOR 12mths 0.81% ( 7 jan 2011 )
a "rise" could be 0.25% ..
will it kill the 1000 or 3000 people who took loans to buy property?

How about a gradual increase from 0.81% over 5 years to 2.5%?

There will not be any overnight increase.. the powers that are very much aware of the consequences to business.. but are business invested in properties?

How much of a typical manufacturing company is invested in property? If its a high perecntage of their funds, then I say they are NOT in manufacturing!

CEO, board of directors and all the high top guns will have to reduce their pay to accomodate the rate increase.. including share holders who expect high dividends.

Cut the labour force? employ more foreign workers? It will be politcal suicide whoever is in government.

Turmoil & protests on the streets?
In singapore? dream on. Even opposition parties are aware of this consequence.

When the financial crisis was realised in 2008, much talk about world collaspe: from Nouriel Roubini to Professor Steigler.
2 years on and QE2.. you & I are still buying KepCorp and OCBC. ( dont lie and we secretly hope the property market will collaspe )

2 years on, the world bank says global trade has increased, Asia will be the driving force ... all data points towards progress and normalistaion.

Of course China buys less US$ bonds and more in Gold or whatever.
Its called diversification and hedgeing.. we do the same too.

Enough of this forecast of " sure die one!".. "wait & see lah.. the market will correct and many will be burnt"

Stock market crashed in 1930s.. it did not affect the entire world..
80 years on with 2 world wars and the stock market is still here.; January 16, 2011 1:38 PM
Eric said...: This comment has been removed by the author.; January 16, 2011 11:45 PM