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3/16/2010

Is the property market hot?

Fiona Chan of ST asked when is a property market consider hot. Of course this is another statement like affordability. I can simply answer by saying that it is only hot when god feels the heat. Today's news is still screaming that despite the high property prices, the rush to buy is still very strong. All the launches were successful and many are fetching more than $1,000 psf. This is good news to the developers and speculators and also those who own numerous properties. They must be quietly congratulating themselves for making the right decisions to buy so many properties and sitting on a mountain of wealth. Now who dares talk down the market or wish that the market will fall? The rich property owners will come smashing with everything they got. It is only right and normal and good for the property prices to go up. And our economic fundamentals also demand that property prices must go up. It is just a natural and good thing for all property owners, including the 80% of HDB owners. So who is complaining or why should people be complaining? Yesterday, for the first time, two senior professionals from the real estate industry were warning about a property bubble forming. Who cares, as long as people are queuing and rushing in to buy. Let it rise, let it rise. It is good. Everyone can feel rich. Down here, people compare the prices of the lodging you live in. In other places, they compare how big is the space available. So a 500 sq ft unit at $2m is better than a 10,000 sq ft unit costing $500k somewhere on earth. The thing is to feel rich, living in a $2m kennel, or home.

13 comments:

Robert Tan said...

Time to sell the $2m kennel for a palace in Lijiang and a luxurious tent, all facilities included plus a splendid view of the sunrise at Changi beach....

Wally Buffet said...

Hehe,

I've been there, done that.

Let the fools live in dreamland. The day of reckoning will come.

2012 is not only the end of the world but of the property bubble in places like Shanghai and Singapore.

Then, everything will implode sparring no one. The worst thing is that people who slave through the day with an honest day's work will also be affected.

Prices of Shanghai properties are so unreasonable that Mao would most certainly be turning in his grave in utter disbelief. He might be muttering to himself that he led the long march and wasted his time for nothing. With the benefit of hindsight, he would be much richer than that Mexican billionaire if his energies were channeled in the right direction.

The law of physics apply to property prices too. Blow a balloon above its limit and all you hear is a loud bang followed by a puff of invisible air and a bewildered balloon blower. How come? he asks stupidly.

Fuck them.

Chua Chin Leng aka redbean said...

Hi guys, haven't you people heard of the phrase Uniquely Singapore? We are unique, we can manage the price to make sure it doesn't fall.

One simple mechanism is to tighten the supply. And all those jokers who want to get married and have children have no choice but to buy.

It is elementary.

Wally Buffet said...

You can only buy a tent if you got no job and no money.

Robert Tan said...

After the balloon bursts in 2012, can shift back to the kennel but by then, maybe got so comfortable with the tent, may not want to shift back, huh?

Wally Buffet said...

Hehe,

Who wants to shift back into the pigeon hole if you can have a seaside abode at almost next to nothin'

My offer still stands. Pay me a visit and we can have kopi at the nearby gluttons corner.

Robert Tan said...

will take a rain cheque, wally :)

Chua Chin Leng aka redbean said...

Wally,
Before drinkin your kopi at Changi Point, got to drink a lot of petrol first you know.

Anonymous said...

Speculators help to keep property price up. Btw Redbean, can you please tell us how many properties you and your family own? Just curious and want to see if you are speaking from your heart or from down there.

Wally Buffet said...

Hehe,

Redbean probably owns a big chunk of all the listed developers' shares. He is trying to drive down prices with his crusade so he can sweep the market at lelong prices and then sell high again.

You didn't ask me but I'll volunteer the info anyway. I own a palace in Lijiang and a tent at Changi Point end. Feel free to drop by.

Chua Chin Leng aka redbean said...

Anonymous, you tell me who you are and what you have and I tell you mine. Fair?

Or would you want to address your question to the ministers?

Anonymous said...

Wallys' comparison of Shanghai and SIN does not include an inherent difference and that is; the Shanghainese can move North, South, and West to buy many cheap palaces like those in Lijiang. As for Singaporeans; they can only get much cheaper abodes in foreign countries.

Chua Chin Leng aka redbean said...

We can also move north and south. Only if they welcome you and not rob you when you are there.

And when we move, the well heeled foreigners can take over our abodes with their cash.