By Wong Kon How
Can property also experience correction like the stock market?
· Red – All residential
· Orange – Landed
· Blue – Non-landed
Correction comes after the euphoria stage and it can be deep as well. When there’s record sales and commissions made, that is a sign of euphoria.
Property is similar to stock investment, it depends on when you invest in them. Many borrow to buy their property, therefore getting in at the wrong timing and when it corrects, it can be very costly. This is because of its leverage and its larger quantum in nature.
It is not just in Singapore, many countries including the U.S. are experiencing the same hype. It doesn’t help when its mortgage rates reach 5% for the first time in over a decade.