At this point in time, senior management of established companies like Boustead, Lee Metal, Hoe Leong are being cautious in the outlook for the next 2 years. In stark contrast, people are very optimistic about their future. Their optimism has spilled over to the housing and car market. So much so that the HDB flat cash over valuation has even hit $50,000. This $50,000 is the cash forked out by buyers, which does not include agent fees, lawyer fees. Car COE (certificate of Entitlement) has reached $57,000. This piece of paper to buy a car has probably exceeded the cost of manufacturing the car.
Only one party is right. I choose to stick with the senior management of established companies because of their experience and knowledge of their business. Every decade has excesses which will eventually be cleaned up. This decade is no exception.
Will the buyers of HDB flats, condominiums and cars suffer buyer’s remorse in later years? Time will tell us.
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