10/27/2010

World highest home price appreciation

According to a report by Knight Frank, Singapore's home price appreciation is the highest in the world at 37%. China came close at 36.8% and Hongkong was a far third at 24.9%. This is the best news for property owners and property speculators. It is time for celebration. Singaporeans are getting richer by the day, with their properties hitting new highs. Many public housing owners are really millionaires in their own right. Don't be surprised the taxi driver driving the maids and foreign workers around is a millionaire himself. This will be another first for Singapore with millionaire taxi drivers. More important is to go out and grab another property fast. Property prices here can only go one way, up and up and away. And there is no fear of a property bubble forming. Singaporeans are wealthy, and according to all the reports, the properties they bought are all affordable and within their means. So there is no fear of bankruptcies and foreclosures. And those foreigners buying properties here are filthy rich and mostly paying cash. So very little risk of loan defaults. What else, even land for public housing are only awarded to the highest bidder, which means new housing can only be more expensive. And with land so scarce, and with the population going to increase further, one thing is guaranteed, higher property prices. And more than 80% of Singaporeans will be resting on their laurels, as they are all property owners. They are waiting for their eggs to turn into gold, literary. There will be millionaires all around, not only taxi drivers, but many of those taking public transport too. Basically looking right and left one is likely to bump into a Singaporean millionaire.

7 comments:

Anonymous said...

Hey! Look here!
Those who bought anything beyond their affordability should blame themselves and nobody else.

Chua Chin Leng aka redbean said...

That part is not a problem. The govt has made sure of it. It is constantly monitoring and moderating to make sure that public housing is affordable.

At the prices of today, those who cannot afford will not even apply and will not be part of the demand equation. The BTO will ensure that only those who can afford will apply and then they build.

Anonymous said...

Property still "affordable" means you have no other expenses--- no need to eat,no need to pay tax,no need to take transport,no need to buy insurance,no need to support parents, won't fall sick,no children.Affordable right ?

Matilah_Singapura said...

You can't have it both ways. You can't have your cake and eat it too.

Singapore:

1. economically very successful

2. limited land resources

3. real estate has been "the game to play" for decades. It is a cultural fixture.

So if you like "success", you are going to have to accept sky high real estate prices as everyone wants a slice of the action.

I don't see what the problem is.

Chua Chin Leng aka redbean said...

I asked this young couple why are they migrating. The reason is simple enough. HDB is not going to sell them any market subsidised flats which is still costing a lot. They have to buy from private developers as the resale price of HDB flats is crazy too.

The purchase of a private property will mean emptying the few hundred thousand they have painfully saved over the last few years. Their savings will be nought and they will have to start again, and still paying a hefty mortgage.

They choose to cash out and move out.

Anonymous said...

Hi Mr Bean,
The young couple You mentioned in the last comment are smart, singaporeans should emulate them.
Dont just kpkb, take measures and act on them!

Matilah_Singapura said...

The point you've both missed is this:

The couple is YOUNG but they have ENOUGH RESOURCES to enable them to make a decision -- a decision not available to even older people in other Asian states.

The couple are fortunate to have been accumulating their wealth in a territory where the govt is pro private enterprise, entrepreneurship and personal wealth creation.

The S'pore govt is a motherfucking annoyance and exhibits cunty behaviour in areas of free speech, personal expression, political activity, censorship and chewing gum.

But in the areas of personal taxation, the ease of doing business, business-related infrastructure, it is a world leader in allowing and encouraging the PRIVATE SECTOR to flourish.

So it is relatively easier (easier than any of the other dog-shit Asian cuntries) to accumulate enough financial resources at an early age so you CAN have the choice -- the FREEDOM -- to pursue your own "happiness".