Take a look at other countries in this region that are star performers in properties not long ago. That may give us a glimpse of what’s going to happen in the Singapore property market.
In China, since the introduction of government cooling measures, property developers have cut prices up to 15 to 20 percent.
Second hand property owners can easily offer 30 percent discount for flats they purchased just months ago at the launch.
Property agencies are the ones that take the biggest blunt. Thousands of agents have been laid off and hundreds of offices are closed.
In Hong Kong, there are rounds of layoff by big property agencies. The smaller ones are closing one after the other.
The industry estimated that close to 100 agencies have gone, affecting 20 percent of 37,400 agents.
It is reported that some agents who previously market luxurious condos at prime districts are now renovation contractors.
Last Friday, there’s another piece of news from Hong Kong that shows how difficult the market is.
At a new launch, property agents from two different agencies were waiting for clients in front of the showflat. As expected, potential buyers were rare.
What’s meant to be a peaceful distribution of leaflets somehow turned into a street fight with 10 to 20 agents involved. It all started with throwing of a lighter, followed by an exchange of fists and kicks.
When the police came, the agents there simply said “we didn’t see anything”.
Time is tough.
Hong Kong Agents are a lot more aggressive & direct compared to Singaporeans ones…
Over there if they think their buyers are taking them for a ride, they will not hesitate to scold them for wasting their time…..
Most Singaporean Agents will still serve the buyers while blaming their own luck…..therefore it is quite unlikely to see local Agents engaging in street fights.
Hong Kong Agents are a lot more aggressive & direct compared to Singaporeans ones…
Over there if they think their buyers are taking them for a ride, they will not hesitate to scold them for wasting their time…..
Most Singaporean Agents will still serve the buyers while blaming their own luck…..therefore it is quite unlikely to see local Agents engaging in street fights.
There’s once I visited a showflat in Hong Kong. At the beginning, no agent talked to me. Somehow an agent figured out I might be an investor (from the way I chatted with an Hongkonger about the project).
He became very nice and friendly. I said I had to excuse myself because my baby need to change diaper. To my surprise, he pointed at the nice bed in the showflat bedroom and suggested that I could change diaper there!
There’s once I visited a showflat in Hong Kong. At the beginning, no agent talked to me. Somehow an agent figured out I might be an investor (from the way I chatted with an Hongkonger about the project).
He became very nice and friendly. I said I had to excuse myself because my baby need to change diaper. To my surprise, he pointed at the nice bed in the showflat bedroom and suggested that I could change diaper there!
There are few pros and cons on our spore property market outlook
The optimist said…
1. Singapore land is scarce, in order for developer to acquire a new land for new projects is therefore higher next time
2. The mortgage interest rate is low, ppl have holding power although the market is quieter now. Unlike financial crisis which also hits spore few years ago, sg economy is currently going strong, everyone makes steady income to sustain.
3. Most of the news writers are government hired to succeed goverment’s cooling measures.
The pessimist commented…
1. ABSD did reduce foreign buyers. We must admit that market is quieter, with sellers are still asking for unrealistic price, but no buyers!
2. Everybody is waiting and watching, somehow being affected by those news and cooling measures.
3. Few years later when many projects are TOP, there will be oversupply of residentials.
PS, how do you view on these comments? I intend to buy my first one for investment (rental yield), but i am a bit reluctant to enter the market now, esp given that there will be oversupply in few years time, which is going to be a tenant market.
There are few pros and cons on our spore property market outlook
The optimist said…
1. Singapore land is scarce, in order for developer to acquire a new land for new projects is therefore higher next time
2. The mortgage interest rate is low, ppl have holding power although the market is quieter now. Unlike financial crisis which also hits spore few years ago, sg economy is currently going strong, everyone makes steady income to sustain.
3. Most of the news writers are government hired to succeed goverment’s cooling measures.
The pessimist commented…
1. ABSD did reduce foreign buyers. We must admit that market is quieter, with sellers are still asking for unrealistic price, but no buyers!
2. Everybody is waiting and watching, somehow being affected by those news and cooling measures.
3. Few years later when many projects are TOP, there will be oversupply of residentials.
PS, how do you view on these comments? I intend to buy my first one for investment (rental yield), but i am a bit reluctant to enter the market now, esp given that there will be oversupply in few years time, which is going to be a tenant market.
Thanks for your summary of both sides of the story.
The cost of land may be higher in a matter of decades, but it will definitely be lower during the next recession. Developers may buy a piece of land that is value-for-money or overpriced. But as a buyer, I can always choose a good time to enter the market and buy a good value property.
Like it or not, Singapore is a small economy which is almost impossible to remain intact from economic influence of bigger nations. Singaporeans have one of the highest saving rate. But when confidence is low, nobody has the mood to buy.
I believe in laissez faire. Government interference can only affect the market in the short-term. On the contrary, no one can work against the economic trend. The supply-demand factor only adds fuel to the engine.
I agree with you that now is not a good time to buy. As what Jim Cramer said in his book Sane Investing in an Insane World, “Patience is a virtue — giving up on value is a sin.”
Thanks for your summary of both sides of the story.
The cost of land may be higher in a matter of decades, but it will definitely be lower during the next recession. Developers may buy a piece of land that is value-for-money or overpriced. But as a buyer, I can always choose a good time to enter the market and buy a good value property.
Like it or not, Singapore is a small economy which is almost impossible to remain intact from economic influence of bigger nations. Singaporeans have one of the highest saving rate. But when confidence is low, nobody has the mood to buy.
I believe in laissez faire. Government interference can only affect the market in the short-term. On the contrary, no one can work against the economic trend. The supply-demand factor only adds fuel to the engine.
I agree with you that now is not a good time to buy. As what Jim Cramer said in his book Sane Investing in an Insane World, “Patience is a virtue — giving up on value is a sin.”
Many thanks PS for your reply. this is very insightful! Looking forward to your new articles.
Many thanks PS for your reply. this is very insightful! Looking forward to your new articles.
I like your blog, thank you for sharing your experiences =)
I like your blog, thank you for sharing your experiences =)
Glad you like my posts. Followers like you give me the motivation to blog!
Glad you like my posts. Followers like you give me the motivation to blog!
Nice blog , i have an offer, still considering
Nice blog , i have an offer, still considering
Thanks.
Give a “yes” or “no” answer now. Anything can change in 24 hours.
Thanks.
Give a “yes” or “no” answer now. Anything can change in 24 hours.
that’s pretty much sums up life as a property agent.
it is also pretty much dog-eat-dog.
that’s pretty much sums up life as a property agent.
it is also pretty much dog-eat-dog.
Yes, it’s a competitive industry. But there are many types of property agents. The good (professional, experienced and honest) ones can easily stand out from the rest.
Yes, it’s a competitive industry. But there are many types of property agents. The good (professional, experienced and honest) ones can easily stand out from the rest.