Singapore Real Estate Suicide ? Buy 99 year leasehold ?
“SINGAPORE — Buying land at the prevailing high prices would be “suicidal”, City Developments (CDL) Executive Chairman Kwek Leng Beng said yesterday, as he forecast private home prices to decline 5 per cent over the next year, with the Government’s cooling measures working their way through the market.”
CDL Market Cap : SGD 9.72 bio.
Kwek Leng Beng : 9th richest man in Singapore (http://www.top10rich.com/singapore.html)
Suicidal to buy LAND not property ! But Land is Real Estate ?
Different folks tell me different things, for everyone seems to be a property expert these days.
Some say property i.e. condos etc and land are different categories and I should not confuse his comments with buying a new condo, for instance. Others say he is right and we should be buying outside of Singapore – Iskandar, London, Tokyo, New York.
Anyway Straits Times came out to debunk him.
“Aug. 12 (Straits Times) — Most upcoming suburban condominium launches are likely to breach the $1,200 per sq ft (psf) price threshold, based on an analysis of recently sold government land sites……..
This follows a trend of recent suburban launches at above $1,200 psf on average, including J Gateway in Jurong that launched at a median price of $1,486 psf in late June and Urban Vista in Tanah Merah, which launched at a median $1,503 psf in March.”
What I think ?
Maybe buy 99 leasehold…..
Read an excerpt of Lee Kuan Yew’s new book.
Lee Kuan Yew on fate of Singapore in 100 years’ time
“An earlier generation of Singaporeans had to build this place from scratch – and what a fine job we have done.
When I led the country, I did what I could to consolidate our gains. So too did Goh Chok Tong.
And now, under Lee Hsien Loong and his team, the country will do well for at least the next 10 to 15 years.
But after that, the trajectory that we take will depend on the choices made by a younger generation of Singaporeans.
Whatever those choices are, I am absolutely sure that if Singapore gets a dumb government, we are done for. This country will sink into nothingness.”
And Goh Chok Tong says……
“Mr Goh said the country is stuck in a mid-life crisis despite making progress as, “according to some surveys, Singaporeans are amongst the world’s wealthiest but are also the most pessimistic”.
“We are now at an inflection point of our development as a society……..This is because the external environment is more complex, competitive and uncertain than in the past, he said, citing global and regional developments that affect Singapore, such as United States-China relations.
But Mr Goh said the challenges faced here are “even greater”…..
They include rising costs of living; slower economic growth; an ageing population; a more diverse and less-cohesive population; and a better-educated younger generation with higher expectations of life.”
And his final warning ….””A new social compact between the people and the Government will also have to be forged. Otherwise, I fear that Singapore will begin to go downhill,” he said” Taken from TODAY Online
After reading all those haunting words and the supply avalanche story below…. how to buy ?