On Thursday, July 24th, An article was publish in a local paper called Today. (Goto http://www.todayonline.com/pdf_main.asp?pubdate=20080724 ) The title of the article was "Oversupply Worse than Expected?" by Colin Tan. Colin is head of research at Chesterton International . And by far the bravest person to write anything about the possible Bubble in Singapore.
I have been in Singapore since Jan 08 and I saw many of the same signs that my recent home of Las Vegas had shown. Relatively quite prices and growth with the occasional twitch of something new would get hearts racing a bit. Then all of a sudden, Boom, Bang and a Pop!!!, the lines started to form at builders. They started to say they were sold out and had to make more. People started to hear stories of their friend who just sold their home 10k above what they had asked for because two buyers came at the same time. In rapid succession the lines double then triple and so did the asking price. I once look at a home in the Southwest part of Las Vegas that was small with no yard. They were asking $95 psf (per sq ft). I thought it was high but during the Frenzy that same home went to $225 psf. With current loans parameters, I could no longer buy a home. Thank goodness the Banks thought of new inventive ways to lend money. (this is sarcasm for those who don't know me)
Singapore went through this same period but by my calculation and divinations, their wave started about a year and a half to two years after Las Vegas. So what am I trying to say.....( dramatic pause insert music from your own memories)... "Singapore's Bubble is Coming". I spoke to many agents here that all say the Singapore is different and I hope they are right. But now I have some support. Thank you Colin Tan. How far will it drop? We can only guess at this point, but all the signs are there. I have seen the problems that arose in many areas of Las Vegas. I can only hope there won't be the same carnage here in Singapore.
Posts
