You would think with the fall in housing prices for Westwood Residences the people of Singapore would be changing their spending habits. Unlike people in America, the people in Singapore don’t worry about recession. They know their economy is strong, and it’s one of the best in the Pacific Rim.
And all the economic textbooks, it says when there’s a drop in price and housing. There should be a drop in consumerism as well. Obviously, the people in Singapore don’t read the same textbooks as the people in America.
Consumer Spending Westwood Residences
In Singapore, the evidence suggests that as the people there become
wealthier they can weather drops in prices and wait until they come back up again before considering selling their properties.
This is only one of the reasons why even though the property market is slowing consumer’s confidence in the money supply has not wavered for Westwood Residences.
Westwood Residences Koh Brothers
If you look at 2014, housing prices dropped 6.1% in the HTB market, while only 4% in the private housing market, to Singaporeans. This is considered a drop in the bucket in Westwood Residences.
In 2015, most experts agree that the market will continue to slump anywhere from 4 to 8%. Even with these numbers in the coming year, consumerism in Singapore is not considered to change to any significant degree.
In fact, some of the experts believe that it would take an estimated 10% or higher drop in home prices just to cause a 3% fall in consumer buying practices for Westwood Residences.
Bardays experts who are also the owners of multiple properties will be more likely to be affected, since they have to maintain mortgages on multiple financing. And a slowing of rental income and buying will affect them directly. However, Bardays chief economics Leong Wai Ho doesn’t expect to see any reduction in spending unless there’s a major downturn for Westwood Residences in the employment sector, which at this time and for the foreseeable future seems unlikely