Govt says property not really overvalued

[Property]

So who are you to say it is?

 Finance Minister Tharman Shanmugaratnam said on Sunday that the global economic crunch could impact Singapore's job market, but he is confident that the country has the right fundamentals to sail through the rough patch, amidst concerns of slower growth this year.

Even as American lawmakers give their approval for the US$700 billion bailout programme to save the country's financial institutions, Mr Tharman said US needs to do more to solve the lingering crisis.

After visiting the Toa Payoh East neighbourhood on Sunday, the finance minister sat down for a discussion about the global economic crisis with residents.

He said: "Our confidence in Singapore is very high. Across the board, manufacturing, services, people are confident about Singapore. Our property market is not as overvalued as many other countries including some others in Asia. We have a strong fiscal system. It's just as well we didn't spend all our surplus last year. We were conservative. We preserved some for the future and that's the right approach."

Residents were also concerned about the failure of US banks, insurance companies and money matters big and small. They questioned the integrity of Singapore's banking system and insurance companies' ability to honour their obligations.

Mr Tharman said: "I can assure you that our Singapore banks are well regulated and there is no risk and no reason whatsoever to have a run on our banks. More importantly, the banks themselves have good risk management. So frankly, you need not worry about how solid our banks are, your money is safe. We are not in the same situation as the US, we need not panic.

"Our regulations are stricter compared to Ireland, the United States, in fact compared to many developed countries. We have always been old-fashioned in our regulatory approach."

The minister added that Singaporeans can have the same confidence in insurance companies which also have to abide by strict regulations.

As for Singapore's full-year economic growth forecast, Mr Tharman said the Trade and Industry Ministry will reveal the numbers on October 10. Singapore's monetary policy update would also be out by then.
 
 
   
 
 
 

[as far as]

as far as banks can afford to lend money to support the ever increasing property prices, who can doubt that they are over valued

[Small %]

It is not over valued when 80% of the population is staying in HDB or EC.

Only a small percentage is overvalued.

[HDB very strong]

It is not over valued when 80% of the population is staying in HDB or EC.

Only a small percentage is overvalued.

HDB prices are still rising strongly

[boo hoo]

what else can he say?

[again]

He added: ‘Singapore banks, in particular, appear to have over-lent into an over-built property bubble. The credit cycle has now clearly turned and higher rates will exacerbate inevitable asset quality issues.

[Genghis]

So who are you to say it is?

  Our property market is not as overvalued as many other countries including some others in Asia.

Who are we to say [SG property is overvalued]? People who can read and understand English! That's who.

What he said was "...NOT AS OVERVALUED as many other countries...", but clearly still overvalued.

[the market]

The market also disagrees with this minister. Thats why sales transaction volumes have collapsed.

A property is worth what a buyer is willing to pay or can afford.

[the SLOWDOWN]

it may last for SEVERAL quarters.

[maybe a decade]

If the Govt response is just to keep interest rates low then the recession may last a decade similar to Japan.

The underlying problem is asset inflation and the corresponding debt levels. On average the Singapore property market may not be too overvalued because 80% of the stock is HDB which brings the market average down.

However the private Condo market is where all the debt is and analyst rate this as one of the most overvalued and uncorrected markets in the world.

[WBuffett says]

"rescue bid will help but is not a panacea".

wawa .. liddat the s'pore economy will be affected; property how? when unemployment sets in down the road.