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Friday, December 1, 2017

Daily Lessons from Life 30 November 2017 - Exuberance Properties?

Last day of November 2017!! Wow! 11/12th of the year is gone!! Let's make the last 31 days count. Yes?

"MAS warns of ‘excessive exuberance’ in property market: 3 key questions

SINGAPORE: The recent wave of collective sales and an increase in land prices prompted the Monetary Authority of Singapore (MAS) to sound a note of caution on the local property market on Thursday (Nov 30).
In its latest annual review of financial stability, the central bank said that these recent developments could bring about risks to the “sustainable conditions” in the market.
Industry observers said the warning from MAS follows a similar call for prudence from National Development Minister Lawrence Wong earlier this month.
It also comes on the back of new rule changes, such as the requirement of a traffic impact study for en bloc redevelopments announced on Nov 13 – a sign that some analysts interpreted as authorities beginning to cast a watchful eye on the collective-sale fever."
Good to see MAS sounding a note of caution to the market though the buyers of an bloc sales hv been very aggressive, especially foreign developers who are very sure they can sell the developed units profitably to foreigners!; never mind the locals who might be squeezed out of the future market!!
Why do i "speculate" this? Well, quite a few of the winning an bloc bids came from Chinese developers n the Chinese buyers r known to inflate property prices around the world from USA, Canada, UK, Australia all the way to New Zealand!! It is public knowledge every now n then these governments hv to issued restriction order to prevent the Chinese buyers to buy up properties at prices the locals cannot possibly imagined!!
So, is the property prices too high? Will there be insufficient demands due to slow population growth? These r the wrong questions to ask!!
As long as we want 6.9m or even 10m with foreigners or new citizens fr Rich countries, not an issue really.
Just that the voting locals may hv a problem n vote the government out as the locals feel they r 2nd class citizens in their own country!!
Blessed the profitable developers!! MAS really can influence them????

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