What a week. I had to shift house. Then I was hit by the property measures. Sheez. It's the most draconian policy since 1996, when a 20% cash down payment was required and capital gains tax was slapped on buyers. Sep 2010, cash down payment has been raised to 10%, second mortgage LTV has been reduced to 70%, worse, a private property owner must disposed of his property within 6 months if he wishes to buy a HDB. Luckily the policy applies to transactions that occur after 30 Aug 2010.
2012 is the Amegeddon of Singapore residential property. There will surely be a slide in prices. I don't see much upside for the rest of 2010 and 2011 anyway except for the core central regions. Simple math tells us that around 15k of private condos will be completed in 2012 and another 16k of HDB will TOP. Our population growth is around 80 - 100k per annum (garment policy). Average household size is around 3.5. So Singapore can absorb 22 - 23k of new houses (HDB + pte) per annum.
Oh, and stock markets are in the clear again. Time to buy. AUDUSD has signalled a buy and HY credit spreads have suddenly reached Apr 2010 low. But NOT EVERYTHING IS A BUY. I'll contact you on which markets are in a clear uptrend.
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