[Levin]

Rana Foroohar
17 Nov 2021 06:12AM
(Updated: 17 Nov 2021 06:12AM)


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in Germany, where there has been a push to seize corporate-owned rental units and put them in public ownership.

Many Dutch cities want to ban investors from buying cheap homes to rent out.

South Korea’s ruling party took a beating in mayoral elections for failing to stop a 90 per cent hike in the average price of a Seoul apartment.

China’s president Xi Jinping has made affordable housing a huge part of his common prosperity theme, saying that housing is “for living in, not speculation”.

We know home prices are inflated in many places. But a new study from the McKinsey Global Institute, which tallies up the balance sheets of 10 countries that represent 60 per cent of global income (Australia, Canada, China, France, Germany, Japan, Mexico, Sweden, the UK and the US), has some eye-popping numbers about just how much money is in real estate, and why.

The study, entitled The Rise and Rise of the Global Balance Sheet, looked at real assets, financial assets and liabilities held by households, governments, banks and non-financial corporations.

It found that two-thirds of net worth is stored in residential, corporate and government real estate as well as land.

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declining interest rates have played a decisive role in lifting asset prices of all sorts, but particularly real estate prices.

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home prices have tripled on average across the 10 countries.

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The ramifications are troubling. For starters, asset values are now nearly 50 per cent higher than the long-run average relative to income.

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wealth and growth are completely disconnected. This is, of course, behind much of the populist anger in politics today.

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Much of the disconnect between wealth and growth stems from too much money in real estate. But another aspect of the problem is that there’s just not enough money moving into more economically productive places.

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With the exception of China and Japan, non-real estate assets made up a lower share of total real assets in the 10 countries today than 20 years ago.

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it seems increasingly clear that low interest rates haven’t done much for business investment.

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affordable housing is the most pressing economic issue of the moment.

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Only by fixing housing can we rebalance our global ledger.


Full article at: https://www.channelnewsasia.com/commenta...et-2316451

[fayetan702]

I think maybe because it is still one of the best long term investments that you could get. A resale property in singapore is something you could hold off to, or let it be rented or sold. And given the fact that it increases its monetary value overtime, that's your best bet.

[Zlatagor]

The way I see it, people do it because these kinds of investments have always been the most stable. An apartment can always be rented out or resold profitably and make money on it. A lot of things can change economically, but real estate is different. Apparently even South Korea understands this.

[[[ForeverAlone]]]

for those Already Paid FULL no need worry

even cannot rent out just treat it as " additional home to stay "

but of course backend you are losing money in the sense the cost price you buy this property vs current property market price.

Of course everyone claim property price will be even higher in future but you have to think, IF Everything go up and up ? the future gen no need to buy than ? OBVIOUSLY there is a trend just like stock market.

[WhatDoYouThink!]

Aiyya, money can shrink, banks can run, and stocks can drop, but the houses and lands are always there.

[Nickdownu]

It's fascinating how real estate seems to be such a hot topic globally. Reading through all these examples from Germany's push for public ownership to South Korea's housing price concerns, it's clear that housing isn't just about roofs over our heads anymore. The McKinsey study's findings about the staggering amount of wealth tied up in real estate are quite thought-provoking. I guess housing touches all aspects of life, even for students hunting for a place to stay. I was personally affected when I moved to another city for my studies. Luckily I was advised by a website that had good options. If there are students here who are also on the lookout, axonproperties.ca will be helpful. It's a reminder that owning property isn't just about personal spaces; it's a significant part of economies and societies.

[RiseofAsia]

It is a ponzi scheme.
Many ppl still haven’t woken up.
Blindly believe it.
The only valid reason for property to rise is productivity. Real income needs to increase.

Our population is aging. The productivity has gone down into drain.

说人话， 现在的房价上涨都是赌徒和贪心的人在搞鬼。迟早崩盘是避不了了！

[[[ForeverAlone]]]

Aiyya, money can shrink, banks can run, and stocks can drop, but the houses and lands are always there.

Also lost money mah if the value drop, rent out also got problem now a days wait Got Nasty Tenants

than come maintenace leh , if one particular come if wanna rent out.

[WhatDoYouThink!]

Also lost money mah if the value drop, rent out also got problem now a days wait Got Nasty Tenants

than come maintenace leh , if one particular come if wanna rent out.

Alamak, even if you put your money inside milo tin under yr bed, its value drops even faster, just that you dun know only. one day it might even disappear

[RiseofAsia]

Another reason how come so many rich come to Sg mainly becos of possible War in Asia.
Once Biden step down. I believe the property price will drop.

[RiseofAsia]

Never believe war can boost GDP formally.
It is only a barbaric way to rob others to boost GDP.

[sclim]

property is a complex problem, necessity, capital , banks, people motivation etc.
people who own property is more likely to car more about country. will stay on to job . ie more towards stability.

if property price stay put few will buy another set of problem if it nation of rental people. old already how?
singapore model is balance.

bulk is public housing so that gov.can control supply and price.
resale are also control by buyer type, length of stay, loan
within each public housing there is different level of supply to meet the need and budget of different group of people. 1 rm, 2rm, 3rm,4rm.5rm. exe, design build, ec.
this group belows nearer . house for stay not for speculations.

private also different level
freehold, lease hold.
apartments, condo, small size, big size, terrace, semi-d, bungalow. etc

different type to meet different group of needs.
private can stay can speculate. but also limited by numbers so it is not out of control

banking will loose a big chunk og business if no housing market.

most important in control and not let developer go free bid price up higher sell higher.
growth is ok. as long as not out of control