Getting more expensive

[wake up call]

I dont get it. Expats here all want a free lunch? Singapore isnt the only globalised city that is seeing rising rentals and property prices. Its happening all over the world.

Maybe life was too good in Singapore, even for the expats. Time to wake up Cinderella! 

 

Let's wait and see.

My bet this insane increase will show to be an airbubble, or the other option will be a lot of expats move out and even MNCs will eventually follow.

Your posting implies you don't hold "expats" high, yet typically you seem to rent out to MNCs, who bring in those expats, correct?

Correct me if I am wrong, but it seems you love to eat from those you dislike.

Just be aware that it may not last that long anymore before you'll be eating char kway teow from the foodcourt at the corner again.

Do not worry. Singaporeans and the politicians here are not as stupid  as from wherever you came from. Otherwise, you would not have been here as an expat. The politicians are not going to allow Singapore to become unattractive as an expat destination.

You must be a genius, bro. Saying Singaporeans and their politicians are not as stupid as wherever I came from?

How would you know if you have no clue where I am from?

And your genius' thoughts lead you to conclude I otherwise would not have been here as an expat?

Who told you I am an expat? And who told you I find this place attractive?

That is because Singapore has got the best govt in the world. So wherever you come from does not matter.

Who the hell is asking you whether you find this place attractive. My comment was a general one.

Be merry with and jerk off on your government bro,

Hang on to your dream world for as long as you can.

Like another one told you, your comments show real ignorance, but feel free to add more insane comments.

[Squeezed]

To Reality,

Don't be presumptious. I know the local property market a lot more than you think...The bulk of the HDB market may not have seen much action but left to itself, it will. The trickle down effect from the private property market will be felt in time. History tends to repeat itself. It happened in the mid-90's, there's no reason to believe it won't happen again. And in the National Day Rally, PM Lee mentioned that a HDB flat will be an appreciating asset, so the govt is committed to ensuring that it will appreciate. The question is by how much in relation to wage growth. Brand new HDB 5rm flats (they've now shrunk down to 110sqm) in Bt Merah are currently going for $480k; and new HDB flats at Punggol 21 will be sold for $500-$550psf...That's a very powerful statement. HDB flats are the price support for our property market. If it goes up, everything else will go up as well.

The govt has adopted a very finely tuned policy - property inflation to protect retirement income for the ordinary folks, yet keeping wages low to retain competitiveness. I'm not sure how this can be done. Even if they do succeed, it would simply mean that the only way to pay for homes is to load up on ever increasing personal debt. An acquaintance of mine commented that affordability is not a function of how much money you have, but how much you can borrow, which in turn, depends on the central bank's policies (since with the advent of mortgage backed securities, banks will be happy to lend you any amount you want). If a DSR of 50% is inadequate to sustain demand for today's inflated home prices, raise it to 80%, then suddenly, homes appear to be affordable again....That's the sort of creeping changes to perception of value and affordability that we should be wary of.

[musicality17]

to squeezed
"An acquaintance of mine commented that affordability is not a function of how much money you have, but how much you can borrow, which in turn, depends on the central bank's policies (since with the advent of mortgage backed securities, banks will be happy to lend you any amount you want). If a DSR of 50% is inadequate to sustain demand for today's inflated home prices, raise it to 80%, then suddenly, homes appear to be affordable again...."

You really don't know what you are talking about.  Are you suggesting that MAS compromise its reputation by allowing wanton lending?  This is quaranteed to destroy MAS's efforts to build Singapore as a financial centre.

By the way, how do you package HDB loans into mortgage backed securities when CPF have first right of claim on the HDB flats? In addition, it is difficult (but not impossible) to re-possess HDB flats in the event of bankruptcies. 

[Squeezed]

To Musicality17,

Don't be ridiculous...You read my post through a straw that's why your interpretation is all over the place. Use some imagination, apply some system thinking and connect the dots. I'm speaking about the linkage between asset inflation and potentially easy credit. Did I suggest that MAS do what the Fed does, or rather, do nothing? Quist the opposite. I'm suggesting that they should be careful about CREEPING pressures to relax lending rules in the interest of pursuing the larger national policy - sustained asset inflation coupled with sustained competitive (read: low) wages.

I really don't know what I am talking about? Do you know that you can take a loan from commercial banks to purchase HDB flats? The CPF has ceded first charge on such properties in the event of default; else how do you persuade banks to even extend such loans? Secondly, do you know that extending the HDB loan market to commercial banks, besides providing more options to home buyers, also has the objective of reducing lending activities by the CPF and reduce dependency of the public on CPF funds, so that the CPF does not have to carry all the risks?

Next time, please comment on my posts and share your opinion..don't make judgement on my level of intelligence. It is totally uncalled for. There's no need for arrogance....we are all humans. In death we're bound; and so in death, God made us equals. Whether you think you're richer, smarter or whatever does not matter....no one really cares if you're indeed superior to other humans except yourself....so that makes it totally irrelevant and pointless. I hope you can follow what I'm saying...

[To squeezed]

To Reality,

Don't be presumptious. I know the local property market a lot more than you think...The bulk of the HDB market may not have seen much action but left to itself, it will. The trickle down effect from the private property market will be felt in time. History tends to repeat itself. It happened in the mid-90's, there's no reason to believe it won't happen again. And in the National Day Rally, PM Lee mentioned that a HDB flat will be an appreciating asset, so the govt is committed to ensuring that it will appreciate. The question is by how much in relation to wage growth. Brand new HDB 5rm flats (they've now shrunk down to 110sqm) in Bt Merah are currently going for $480k; and new HDB flats at Punggol 21 will be sold for $500-$550psf...That's a very powerful statement. HDB flats are the price support for our property market. If it goes up, everything else will go up as well.

The govt has adopted a very finely tuned policy - property inflation to protect retirement income for the ordinary folks, yet keeping wages low to retain competitiveness. I'm not sure how this can be done. Even if they do succeed, it would simply mean that the only way to pay for homes is to load up on ever increasing personal debt. An acquaintance of mine commented that affordability is not a function of how much money you have, but how much you can borrow, which in turn, depends on the central bank's policies (since with the advent of mortgage backed securities, banks will be happy to lend you any amount you want). If a DSR of 50% is inadequate to sustain demand for today's inflated home prices, raise it to 80%, then suddenly, homes appear to be affordable again....That's the sort of creeping changes to perception of value and affordability that we should be wary of.

It is ironical you are calling me presumptious when you are being one youself. What makes you so sure that the HDB will experience a trickle down effect in time to come. IF you are so sure, then you must be the best investor in the world. No 2 bull runs are the same. The boom and bear cycle repeats but not exactly in the same manner. HDB apts may only rise 10% in this bull run and may witness a bigger increase in the next bull run 5-10 yrs later?? No one knows for sure.

[Dr. Phil]

To Reality,

And in the National Day Rally, PM Lee mentioned that a HDB flat will be an appreciating asset, so the govt is committed to ensuring that it will appreciate. The question is by how much in relation to wage growth.....

The govt has adopted a very finely tuned policy - property inflation to protect retirement income for the ordinary folks, yet keeping wages low to retain competitiveness. I'm not sure how this can be done. Even if they do succeed, it would simply mean that the only way to pay for homes is to load up on ever increasing personal debt. An acquaintance of mine commented that affordability is not a function of how much money you have, but how much you can borrow....

Your quite right inflating property prices will never protect retirement income.
Property is the greatest single acquisition in our lives and inflating its price makes us all relatively poorer, not to mention ensuring the next generation will never experience home ownership.
It effectively claws property from the grasp of citizens, giving title to banks.
To suggest there are benefits to ordinary folk is either misguided or cynical spin, nothing more.

Also to suggest affordability is geared is also a contradiction since affordability must withstand the kind of upheavals we are about to experience with recession and high interest rates.

[Squeezed]

To Reality,

Sigh, you are another one who does not read my post properly but quickly jump to conclusions. I did not call you 'presumptious' for your opinion....I was refering this offensive statement - "You do not really know what is happening in the local market." which is totally uncalled for. It gives the impression that your way of greeting someone is to call him an idiot. I hope this is not the case.

Back to my post. Nowhere in my post did I make a definitive prediction. I was stating an opinion. I said 'History TENDS to repeat itself' and not 'WILL repeat itself'. But I do see signs that suggests that will be upward pressure on HDB prices, and the govt has made clear indications that they will support it. Of course no 2 bull runs are exactly the same, but they're bull runs all the same. If there is a bull run, there will be a bear..that's why they're called cycles. Based on the indicators, I think the HDB market might be another participant in the cycle again unless something else happens. And it's just an opinion....No need to get so edgy over an opinion.


Why do you see a need to taunt and resort to sarcasm that 'I must be the best investor in the world'?? What if I am, and what if I'm not. What does it matter to you or anyone on this forum? Life ain't a beauty contest. You don't walk into a gym and expect everyone to pay immediate attention to how great looking you are, how cool you are etc...because no really cares about it except yourself. So what's the point in your statement, other than to try to ruffle me up a bit. If you think my views don't make sense, then say why it doesn't...Not pass judgement on my intelligence. If you don't agree with what you boss tells you, do you respond by telling him that he doesn't deserve to be a boss because he is too stupid to see that you are right?

For heavens sake....

[musicality17]

To squeezed

Sure, there is a linkage between asset inflation and easy credit.  And I am sure we have learnt this lesson very well from the property burst in 1996.  Way back in the mid-1990s, we had much more liberal lending policies than what we have now. For example, you could buy a condo with a 5% deposit, and you can even use CPF for that deposit.  Current lending practices are not anywhere near this lax.  I don’t think sustaining property prices is worth jeopardizing the stability of the banking system.   Rather, I think the direction is towards tightening of credit for property purchases. 

Whilst I agree nobody wants depreciating HDB capital values, any price escalation cannot get out of hand as it passes on the burden to the next generation.  If the govt really wants to "increase" the value of HDB flats, there are many supply side tools without resorting to crazy lending.  They can (1)control the release of land for HDB, (2) step up SERs programs and adjust the compensation schemes for SERs, (3)provide more choices in executive condos which Singaporeans can buy at discount and sell to foreigners after 5 years etc.  Right now, low income families can "unlock" the home equity by selling the lease.  Another (but more tenuous) approach are reverse mortgages which may some time to develop.  This gives Singaporeans to have regular income without the need for "asset inflation".

Whilst HDB prices are rising quickly in some areas, it is highly unlikely they will rise significantly.  After all, only citizens can buy HDB flats, although PRs can buy in the resale market.  Presumably, upgrading HDB estates would make them more attractive to new PRs, allowing first hand buyers to maintain a high resale value.  Otherwise, overall HDB prices cannot grow very much given the anemic pop growth of citizens (as opposed to PRs and other foreigners).

It is common knowledge that commercial banks can lend for the purchase of HDB flats.  But I don’t think you need to worry that the debt servicing ratio will be increased beyond 40% to say, 80%.  Or these loans being packaged into trashy securities.   What credit rating would these products have?   How many seats would the PAP lose when fore-closures escalate?  What would people eat when they are stupid enough to commit 80% of income to servicing a housing loan?

[Multi-National Landlord]

Sleeping Beauty.. 

no i mean cinderella.. sleeping beauty does nothing but sleep all day..

cinderella's the one living a dream

[Multi-National Landlord]

Maybe life was too good in Singapore, even for the expats. Time to wake up Cinderella! 

So Freudian... Cinderella knows when it's time to leave the party. Right about now... 

sure we talking about the same Cinderella? if she knew when to leave the party, she wouldnt have had to run off semi-barefooted..

she's gotta wake up and stop dreaming before she can get anything done straight.. esp in the thinking dept..

[Multi-National Landlord]

Let's wait and see.

My bet this insane increase will show to be an airbubble, or the other option will be a lot of expats move out and even MNCs will eventually follow.

Your posting implies you don't hold "expats" high, yet typically you seem to rent out to MNCs, who bring in those expats, correct?

Correct me if I am wrong, but it seems you love to eat from those you dislike.

Just be aware that it may not last that long anymore before you'll be eating char kway teow from the foodcourt at the corner again.

I dont get it. Why should I hold them in high regard? Are they of a superior breed or something? Or do you have an out-of-control superiority complex?

Does it matter if I eat out of a shit hole? Stirs up your superiority complex, just a little perhaps? Since you dont already know, nothing lasts forever; and I like margaret drive, hawker-style Char Kway Teow thank you very much. with more hums and chili please.

[To squeezed]

To Reality,

Sigh, you are another one who does not read my post properly but quickly jump to conclusions. I did not call you 'presumptious' for your opinion....I was refering this offensive statement - "You do not really know what is happening in the local market." which is totally uncalled for. It gives the impression that your way of greeting someone is to call him an idiot. I hope this is not the case.

Back to my post. Nowhere in my post did I make a definitive prediction. I was stating an opinion. I said 'History TENDS to repeat itself' and not 'WILL repeat itself'. But I do see signs that suggests that will be upward pressure on HDB prices, and the govt has made clear indications that they will support it. Of course no 2 bull runs are exactly the same, but they're bull runs all the same. If there is a bull run, there will be a bear..that's why they're called cycles. Based on the indicators, I think the HDB market might be another participant in the cycle again unless something else happens. And it's just an opinion....No need to get so edgy over an opinion.


Why do you see a need to taunt and resort to sarcasm that 'I must be the best investor in the world'?? What if I am, and what if I'm not. What does it matter to you or anyone on this forum? Life ain't a beauty contest. You don't walk into a gym and expect everyone to pay immediate attention to how great looking you are, how cool you are etc...because no really cares about it except yourself. So what's the point in your statement, other than to try to ruffle me up a bit. If you think my views don't make sense, then say why it doesn't...Not pass judgement on my intelligence. If you don't agree with what you boss tells you, do you respond by telling him that he doesn't deserve to be a boss because he is too stupid to see that you are right?

For heavens sake....

You sound like a preacher. Very irritating approach and too defensive. Can you be short and sweet and come to the point quickly.

[Shahzad]

No doubt all type of flats rental are getting very expensive and salaries are the same. 7 months back I was able to get 2+1 HDB in Punggol for 1050 SGD now its double. Now I am getting its for 1800 SGD. So  I have decided to go back to my country as my 40% of salary goes to rental ((

 

[Situation]

No doubt all type of flats rental are getting very expensive and salaries are the same. 7 months back I was able to get 2+1 HDB in Punggol for 1050 SGD now its double. Now I am getting its for 1800 SGD. So  I have decided to go back to my country as my 40% of salary goes to rental ((

 

It is those with familes that are affected the most. Singles always have the option to get a room instead of a whole house. Seems like expats with families who are leaving will be replaced by singles who will share an apt or rent a room. Somehow the employers will need to replace those who are leaving and they will end up preferring singles over married personnel.

[Shahzad]

Even for singles renting room is expensive now. For example 7 months back in renting Common room was 300 dollars nows its 550 dollars without PUB. The issue rental are expensive now whether its room or flat. But the rate of increase of salary is the same. Companies should offer compensation to talent employees to cope with  this crsis.....