This is a continuation of an analysis on the Singapore property market. Interested readers can start from the first post.

So we debunked the three major bull arguments in the last two posts.

1. Strong demand. While true, it is supply and demand that matters and we saw that supply should outstrip demand in the next few years.

2. There are a lot of rich people to support prices. Rich people do not simply buy when prices fall. They are also governed by greed and fear.

3. Interest rates are low. This was partly the reason why property prices skyrocketed to stratosphere and caused instability in the system. Now that the system is on the verge of collapse, interest rates do not matter that much.

But what is most important, as in all investment, is always valuation or a methodology to gauge how cheap or expensive is the investment in ...