CPI + 5.2%

[dzwm87]

Disagree on this point. right now there is a global asset inflation and singapore is no different especially been an open economy. You cannot look at each class of asset in isolation. once property prices goes up there is a wealth effect filtered through the economy. those that make money either through direct property purchase or enbloc or just feeling rich because their property asset has appreciated can afford to splurge. that was what happened in USA only to suffer the pain when the property prices collapse. right now with all the printing in USA there is still no inflation as people's asset are decimated.

agree. in fact a main root for rising asset prices in Singapore was mainly due to the several combined reasons: (1) QE2 actions from the Fed, (2) Poor outlook concerning the Eurozone, (3) Risk of China property bubble bursting.

All these ended up in hot money being pushed to the other Asian countries. Another 'recipient' of such an asset was the Japanese economy - though the effect was largely injected to the appreciation of its Yen currency - seen as a safe haven amidst the risk of euro default and USD debt issues.