May
14
Booming en-bloc market set for downturn
Filed Under Property News
The property market in Singapore has seen a significant upturn in recent months, led first by the high end private property market, and subsequently followed by en-bloc fever, where owners of developments large and small, from east to west, have banded together to sell their properties for burgeoning, even inflated prices. Just how far will it go ?
There is no doubt that high end property prices in Singapore have quite a bit of room to grow. But sadly, these areas are limited, and the growth will be slow.
The booming en-bloc market will stop. Whether it will end with a slow u-turn or a crash is not certain, but it will end when property developers realise that it just does not make sense to pay excessive prices for en-bloc land parcels, or when land developers fork out these amounts, and subsequently crash because of the losses the suffer when their projects fail.
It’s not all bad news, though. En-bloc owners who make their fortune now could rent a place, and snap up property, maybe even two units, when the property market slides. If you’re not in a hurry to buy, we say, wait and see.
But till then, owners have it good. It’ll last a while, but if we at condohub had to put a date on the downturn, it’ll be sometime end 2008 or early 2009. Remember, you heard it here first.
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