Sky Habitat shatter suburban price ceiling in Bishan

Wow....1450psf to 1800psf! Incredible pricing by CapitaLand. The robust sales of 125units during one weekend speaks volume of the extraordinary marketing campaign by CapitaLand which all developers should suck thumb and learn. Far East Organisation, CapitaLand and Hong Leong/CDL group are the big boys with lots of fats stored on their balance sheet. Hopefully, the next economic downturn will trim off some of their excess fats and make them more down to earth with their sky high pricing. Property development seems to be very much a game of hit and run for these developers. The ones who suffered are the average men in the street.

Anyway, buyers of Sky Habitat must be mainly from among the top 10% earners in terms of average household income. Such group will not be that adversely hit by the recession for any firesales of their units. I would say wait long long to those hoping for major property price crashes to land their hand on a heavily discounted Sky Habitat from either the developer or the current buyers. The ones who will be hit are those group of people who bought the other suburbia condo that the government released from government land sales.

Property is very much sentiment driven. That explains why coupled with an extremely low interest rate environment, the numerous cooling measures kept failing to "cool" the property market which is behaving like a raging bull. During Mr Mah Bow Tan time, the government has underestimated the demand for private and public housing by a huge margin of error which the new Minister Mr Khaw Boon Wah is trying to rectify. However, I do not think it is a good idea to keep throwing so many Executive Condominium sites and private condo site into the market. Once the marco-economic wind changes and condition soured, the market will drop drastically (depending on the extent of the recession and duration). Even if all cooling measures were subsequently removed, it may take many years to re-build the property market during the year of capital excesses being invested into highly priced property. This is evident from the deflated property market in the United State which will take many years to sort out.

We seems to be embarking on a perfect recipe for imminent disaster.