Some significant points to note as follows.
1. The 80 property companies on the SGX reported a combined $23.5bn of short-term borrowings that have to be repaid in a year, according to data compiled by Bloomberg.
2. Looming debt as vacancy in condos hit highest since 2006, according to URA data.
3. Population growth is at 10-year low. Developers of residential homes suffering from 'collapsed' sales volumes.
4. Number of residential units being constructed remains very high; 65,270 units in the pipeline as of 30 June 2014, according to URA data.
So, where is the Singapore property market headed? I think downwards.
Looking at the macro picture of supply and demand, I don't see how it is possible that property prices in Singapore can keep going up. In fact, I think it will come down, but the question is how much would it fall.
This is one of the reasons why we have not invested into the Singapore market, at least not yet. I have heard stories from friends that they are increasingly finding it hard to rent out their investment units, even after they have lowered the prices.
So far, we have had zero void in our London properties, for the past 5 years.
Happy investing!
