Monday, January 3, 2011

Singapore property and bubbles

Is a bubble forming in Singapore property? That is the question CNBC asks Chris Fossick, MD of Jones Lang LaSalle South East Asia. The short answer: unlikely.
For those who are too lazy to watch the video to the end, a quick summary:
  • Sale volumes are expected to go up because of population rise
  • The strong economy will fuel demand
  • The Govt is mainly concerned about mass market sector
  • So far Singapore's transaction values are down 30%, so it is not worrying
  • There is a lot of supply and unsold units, prices will not run away
  • Developers are holding back high end units because they think that market is not as robust yet
  • 'Prices need to be running away faster than they are now' for authorities to take action
  • Suggests to increase the supply of land to influence the market
  • It is difficult to come up with measures to temper demand

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