Thursday, November 20, 2008
When will they bottom? The asking prices by developers and subsales sellers are now totally out of whack with economic realities, but I believe the time for an accelerated loss in confidence will come in the next 12 months when jobs losses, bonuses and salaries and 'in-transience' of the recession truly hit home in Singapore. I think 2009 will be the year of job losses, but 2010 will be the time to start looking when a perfect storm of TOP completions clashes with a full-bloom recession. It may also be that the bottom won't occur till 2011 if this recession turns out to be a multi-year correction? Of course I don't know for sure when the bottom will be. But I do know that there is now no hurry. This is no longer Oct 2007 when waiting could still wind up with us paying more. Now, we can safely take our time to see how deep this recessionh bites.