Jul 18 2008, 04:57 PM
QUOTE(Playbook @ Jul 18 2008, 02:34 PM)
Going back to the original question asked by the Topic Starter,
(1) If a recession hits, yes, house prices will drop. This is an unalterable, unalienable fact. What happens (although it may seem pretty obvious), is that demand will dry up (or shrink from where it presently is). Regardless of whatever prices developers charge, the no. of potential buyers in the market will drop. Gosh, unsurprisingly, this has been the case in 100 out of 100 recessions globally around the world
--edited
I second Playbook's reply. Not all property prices will increase over time. Those old enough to remember the 1998 crisis will also remember a lot of bitter foreclosures when house owners couldn't keep up with increasing mortgage payments due to rising interest rates as BLR became more astronomical. Foreclosed properties were auctioned, resulting in lower house prices. (1) If a recession hits, yes, house prices will drop. This is an unalterable, unalienable fact. What happens (although it may seem pretty obvious), is that demand will dry up (or shrink from where it presently is). Regardless of whatever prices developers charge, the no. of potential buyers in the market will drop. Gosh, unsurprisingly, this has been the case in 100 out of 100 recessions globally around the world
--edited
Witness the depressed house prices in Bkt Beruntung, Bukit Sentosa etc etc etc.
As always, the main three rules for house buying is location, location & location! Choice of developer is also crucial (if buying new developments)
Also, when opportunity arises, grab it quick. When the crunch comes, cash is king!
Some choice properties might soon be going lower than current market prices if a recession takes hold worldwide..
This post has been edited by fazlang: Jul 18 2008, 04:58 PM
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