It's about TIME the Goverment takes action to stop these banks!

Banks are still supporting Developers for Brand new project sales at  ' new market high prices' & yet they do not want to re-finance / restructure home loans of  Under-Construction' units.

Banks are taking a swipe at these mass market buyers loans & if they do not watch, they will face a mini-sub prime from these middle income speculators in the next 2 yrs.....

Kudos for the Singapore Government for taking the preventive measures but more has to be done to encourage the bankers to do the 3 Rs for their existing clients. Re-schudule, retain & repackage

 

Due to the lower number of new HDBs being built by the government & the home-owner's preference to buy in mature districts, many en-bloc cash rich folks do not mind paying more for convenience. This was the trend that snowballed since 2007 till now & thus the valuation has increased.

This is really a blessing for the semi-retirees & semi-retrenced citizens for them to now 'cash-out' whilst the market is still hot. With more new PRs & New Citizens, this has recently also drove the prices up again. It really doesn't matter if they do not have a 'home' after that as they would probably move in to stay with their kids.

The domino effect has this started & fueled the mindset of these HDB dwellers to invest in brand new projects near their home which is NOT in the prime district.

Many came wih 'blank cheques' to buy & banks are providing Interest Absorbtion Scheme ( AIS) which is also another way of purchasing with minimal sum only till TOP stage.

Despite the fact the the ban on AIS a few weeks ago, I really do not see that it will help much to kerb the mass market frenzy....it will spark off again in Feb 2010 as many buyers now will slow down to adopt a wait n see / cat & mouse approach.....

Banks will then be creative to try to entice the mass market......I am sure the Savvy High net worth owners are taking time now to cash out.....

This author consults with leading institutions through GLG