1. Interest rate is so low rental has become lucrative passive income to many.
Precisely because interest rate is so low that it is scary. The only way for interest rate to go is up.
2. Sentiment drives market. With HDB breaking new highs every Q, its unlikely to turn negative.
HDB prices has reached the inflection point and are likely to go down next quarter.
3. Foreigner dont buy, but they rent. Rental yield to increase further. Landlord happy to keep rather than sell.
Foreigners account for a third of the purchases.
4. Existing foreigner hold on to existing property knowing the next one they buy will cost 10% more.
Bingo - your point 4 contradicts point 3. How can foreigner hold to existing property if they don't buy?
5. Economy downturn is overblown. Increasingly unlikely to happen.
How can it be overblown if it hasn't really started? Just you wait.
6. No developer need to cut price to clear stocks when mass market is still doing well.
Check the latest URA indices. Semi-D has turned negative. The rest (bungalows, terraces, condos, etc.) are at the inflection points and will definitely turn negative next quarter.
7. No secondary market fire sales when no one is losing their jobs nor bosses going bankrupts.
Same as point 5 above. The economy has not gone into recession yet - going to very soon. The Euro zone is in sh1t and China's banking industry & property market are in a mess.
8. Population is still growing.
Population may be growing, but at a much slower pace due to the clamp down on foreigners.
9. Only strong holders in the market. Weak one aleady weeded out by previous CMs.
Holders only appear to be strong because of low interest rates and having jobs. Once the economic sh1t hits the fan, you will see more weeding. Barings and Lehman Brothers were once century-old blue-blood banks - as strong as you can get. What happened to them?
