- Aaron Lin Property
WILL MOTHER OF ALL PROBLEMS AFFECT SINGAPORE PROPERTY MARKET? (CHINA ECONOMY CRISIS 2022)
The 'mother' of all problems in 2022 - could it be coming, Economic Crisis from China?
There are scary signs in the overall market, some expected, others less so. It's hard to tell how things might go but today we would like to discuss a potential situation that is developing/
Situation in China
Over the recent months, based on reports and youtube videos by various news channels of the world, there appears to be several issues that are growing from within China:
1. Property bonds default
2. Frozen bank accounts
3. Citizens refusing to pay mortgage, properties stopping construction.
4. China loans to other countries
There is an unexpected situation coming out of China, after the well-publicised issues of inflation and challenges linked to COVID.
A combination of various situations, affecting banks, develops and citizens appear to create cause for concern over China's financial stability. Will the situation in China create a potential chain effect that affect the global economy? How big would this potential crash be if it comes to pass?
Uncertainty is high in the market. There are different voices regarding the recession adding to misinformation. The result is a divided people, each believing in their own extremes.
The Singapore property market will likely be affected with the downturn expected. We see that sales of 2 or 3 bedders above 1.3-1.4million are significantly slowing down as one of the effects of this uncertainty.
With this unexpected situation in China regarding the banks, developers and the people, there is potential of the situation bubbling out of control. It's important to be prudent and invest in property that you can afford to hold and it's even more important to know if the property you have is worth holding.
Might his prediction come true? Aaron shares his observations about this potential crash and provides some prudent advice.