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In recent months, high-end condos are tapering off their price appreciation. Most investors with that kind of money have been going for landed property in the last 4-5 months. Just like stocks and any other financial assets, there is an intrinsic & speculative values. Central condos have appreciated by the most since Apr 2009 and many people feel that prices have overshot. They are now looking at landed for better value.
Mass mkt condos still quite strong though, thanks to relatively strong job prospects for middle-class types, and promoting desire and confidence to upgrade. But definitely will see slowdown by late 2011 or 2012, due to tens of thousands of new units coming online.
Long-term property investors may want to hold off till the next major recession, as prices are really quite toppish by now. Don’t think property prices can continue to go up another 20% without some strong correction. In the meantime, if still bullish about local property in the short-term, might as well speculate in the major property developer / contractor stocks.
ReplyI always feel that rising property prices has to be supported by rising income. If one is faster or slower than the other, it will need to pause to wait for the other to catch up.
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