Everyone is
just so bullish about the property market and believing that the price will not
drop and will only trend higher and higher. No doubt, if u view it in 20 years
period (long term), the price of property will only moved up, but what if in 10
years time or even shorter ???
House price really won’t drop?
In this 11
years chart, u can see that there are ups and downs, no doubt that in 11 years
time it rises but what if u go in to the market on 2007? So compare to 2007, u
r still making losses at the year of 2009. I understand that most of the people
that argue house is for long term and no doubt it is, but 1 thing, how many of
the flippers are thinking about long term? How many of the owner can go through
the financial crisis by keeping their job? And how about the interest rising
cycle?
Look at the
chart above, will there be no dropping price?
On the
other hand, people will say land is in scarcity and that's why price will only
goes up. Sorry mates, it's the inflation and speculation (themes like GST or
lack of land) that pushes the house price up. If u say price will only goes up
due to land scarcity then y do price of property in Singapore came down?
Singapore
is a small island that has really limited land, but how come price came down
ah?
Hong Kong
is also a small island, and the sales has started to declined just like what happened
to Singapore before the drop.
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