The first thing I read as I opened my email, "The Chinese property market looks likely to weaken because the government has indicated it wants prices to fall." - from The Edge Midweek.
What? Does that spell trouble for our property market? Will prices in Hong Kong and Singapore follow suit, or rather, will our governments follow suit?
Quite on the contrary, to me. I have mentioned this point on the Skyscraper's forum before - we actually need to thank the Chinese government on imposing measures preventing bubbles for our increased demand back home.
Most of the Chinese investors who want a piece of the property pie will either invest in China itself, or cross the border over to Macau and Hong Kong. No wonder you see Hong Kong property market sky-rocketing even as Hong Kongers themselves are priced out.
And China is no short of millionaires. So what happens to the rest (or the rest of the money for that matter). They come to Singapore. Buying properties to hedge against the threat of inflation is a very common reason, and the Chinese know all too well about that. With global inflation looming due to the massive stimulus put into the market last year, China's own inflation figures might just be set to shoot off the charts should economic (runaway)growth be uncontrolled.
Not only that. Singapore's prime property indexes are still quite a distance below Hong Kong's and China's, which makes us more attractive as an investment option. But not everyone will flock here like a herd of geese immediately - we need a spark, a big bang to increase Singapore's visibility, to set things into motion.
And the answer to that? The two mega Integrated Resorts at Sentosa and Marina Bay. Now, do we have all the elements for a bull run yet?
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