The current property cycle bears the following similarities with the 1986-1998 cycle:
1) At the cycle peak, landed properties outperformed non-landed properties and detached houses are the best performer while condominiums are the worst performer.
2) In both property cycles, unlike in the other cycles, prices reached a peak and started to decline in response to property cooling measures introduced by the Government and not due to some external events such as an economic crisis.
I thought it would be interesting to compare and contrast the two property cycles to see what are the similarities and differences and what insights we can draw from them.
The Singapore property market has undergone four property cycles since 1975. The first cycle from 1975-1986, the second from 1986-1998, the third from 1999-2004 and the fourth from 2004-2009. We are now into the fifth cycle which began in 2009.