What does stabilizing means?
A stabilizing property market does not mean that the property prices will drop or remain constant. It just simply implies that property prices will climb at a steady, constant pace.
What is driving the property market?
One word can sum it all. FEAR.
With reports on many foreigners coming into Singapore to invest in properties, and stories of how affluent Chinese from China coming into Singapore and sweeping the property market effortlessly, it has caused many people to feel afraid that they might lose out. And whenever there is a report that the property market had slowed down due to a lower percentage rise in resale prices, many people rush in to buy.
PM Lee was implying mainly about the HDB property market. He mentioned that HDB is working building more HDB properties to meet the demand for HDB properties. How does it affect the private property market?
All things constant, it should lead to a stabilizing effect on private property market as well. There will probably be short periods of time where HDB property market is not moving, but private property market is moving and vice versa. This will be due to new buyers (buying for their own usage) buying the more value-for-money properties at that moment in time. Whenever private property prices are deemed as too expensive, these buyers will switch back to buying HDB properties again and vice-versa.
With the “new average” combined income of $10,000 per month, there will be price resistance whenever property prices cross the $1 – $1.2 million mark. Developers know this – hence, the existence of Mickey Mouse apartments. I would expect new developments …..
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