Dear Mr. Propwise,
I am concerned about the recent remarks by Minister Khaw on a potential property market crash. Will it really happen just because of the oversupply of homes? Or will the market just stagnate? Will prices go back to the low of 1998?
This really stresses me so much because I bought a property in the beginning of the year before hearing this news. And I am also subject to the four year lock in period so I can’t sell now. I am very worried.
My property is currently rented out and it’s in District 11. I can hold on to the property but am worried that if price goes down the bank might ask me to top up cash?
Regards,
M
Dear M,
No one can know when the market will crash. We can only make an educated guess that based on the surge in the upcoming supply over the next few years, the market will be under pressure unless demand is stronger than expected.
As for Minister Khaw’s remarks, check out my article titled “If the Minister is worried, should we be too?” Since you’ve already bought no point worrying about it – try and ensure you have holding power and in the longer term you’ll be okay.
As for the bank asking you to top up, unless property prices drop more than 30%, it is very unlikely for them to do so.
Hope this helps!
To wisdom and beyond,
Mr. Propwise
Ask Mr. Propwise #8 – Will the Market Crash in 2013?
Dear Mr. Propwise,
I am concerned about the recent remarks by Minister Khaw on a potential property market crash. Will it really happen just because of the oversupply of homes? Or will the market just stagnate? Will prices go back to the low of 1998?
This really stresses me so much because I bought a property in the beginning of the year before hearing this news. And I am also subject to the four year lock in period so I can’t sell now. I am very worried.
My property is currently rented out and it’s in District 11. I can hold on to the property but am worried that if price goes down the bank might ask me to top up cash?
Regards,
M
Dear M,
No one can know when the market will crash. We can only make an educated guess that based on the surge in the upcoming supply over the next few years, the market will be under pressure unless demand is stronger than expected.
As for Minister Khaw’s remarks, check out my article titled “If the Minister is worried, should we be too?” Since you’ve already bought no point worrying about it – try and ensure you have holding power and in the longer term you’ll be okay.
As for the bank asking you to top up, unless property prices drop more than 30%, it is very unlikely for them to do so.
Hope this helps!
To wisdom and beyond,
Mr. Propwise
I think it will crash in Year 2012 instead of Year 2013/2014.
Developer and seller will cash out first before everyone think
it will be Year 2013.
Jackie Chan the first one to re-positioned.
Those dare joint those in 1997/1998 no tear 50% drop in price.
In China SUN INVESTMENT many investor brought it and at the
end of the day ..remain only Local China Chinese own those unit.
The valued drop more than 50%…
Just like stock market when the price goes up …all the yellow
face house wife jump in the next moment the stock market crash!
Good Luck!
It’ll be interesting to know how all these turns out… There is going to be more housing but on the other hand there is also going to be a control on the increase of foreign population and Singapore’s own population is not increasing fast enough. Will there be balance between demand and supply?
Indeed the key unknown and unpredictable variable is demand. During the last boom people underestimated how many foreigners were coming to Singapore, which boosted housing demand.
Thanks for your comment Jon!
Also don’t forget, since is Foreign Talent. There are a lot of choices for them. Australia, HongKong, China…..