Watch out! Potholes ahead in singapore property!
IMF just released a report on asian property and it warned of dangers ahead due to a property bubble forming which will hurt banks and countries badly when it bursts.
It uses the price/rent ratio, real estate loan growth and percentage of net new bank lending due to property to gauge whether countries like Hong Kong,singapore,china, s.Korea,Taiwan,Australia,New Zealand, India are experiencing a surge in property prices due to massive liquidity thanks to FED sloshing around looking for a safe harbour (which unfortunately can’t be found in property bubble)
For eg. Singapore has close to 80% of net new banking loans related to property. With such a high percentage going to properties,it’s time to beware.
Entry filed under: Watch your step.