Source : Straits Times – 22 Aug 2009
I READ, with great scepticism, the report on Singapore property, ‘Property scene not too frothy: CDL’ (Aug 14).
Mr Kwek Leng Beng, City Developments (CDL) chairman, said there was no over-exuberance in the property market.
All around me I see buyers making or trying to make a quick buck from a buy-sell transaction in just a couple of months. I have seen at least five instances in landed property in this past week where buyers who bought over the past two months are now selling the same property for a quick profit of 20 to 30 per cent.
For example, one bought a small detached house in Duchess Avenue for $5 million and is now selling it for $6 million after a few weeks. Another who bought a bigger detached house in Dyson Road for $6.8 million is now selling it for $9.8 million, after three months.
I am not sure why is this happening when the economy is still on the mend, but it seems there is much speculation in the property market right now. Perhaps such transactions will attract the attention of the Inland Revenue Authority of Singapore with reference to capital tax gains?
Whether buyers will succumb to such high asking prices depends on whether there is panic buying out of fear of fast-rising prices despite the downturn. Where are the fundamentals to support such high increases in prices over a few months?
It was thus refreshing to read the report on Monday, ‘Mass-market home prices ‘at 2007 peak”, on an RBS analyst who seems more objective and makes more sense. This will perhaps help Singaporeans to be more rational and not jump in when the water is already too hot. The bad outcome from this would be runaway asset inflation and Singapore would lose its competitiveness yet again.
We really appreciate this report.
Wong Chui Lin (Ms)
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