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?
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,