Private Property prices......still up or down? Part II

[Roh96]

It largely depends.

 

With the low supply now, some developers have launched and tested market, then withdrew the rest. Others have finally started to put up signs of sales soon (like Parksuites in Mt Sinai) after 5 or 6 years of being left empty.

 

There may be some supply coming out right after CNY but many of the enbloc sites will still be undergoing site study and survey and will not be back on market for some time.

 

We can only discuss further based on the proposed selling prices and sizes of those coming soon. If the units continue to shrink to lower quantum, the quantum of new sales will stay (with increasing PSF) but the resales will start to surge if the prospective buyers are owner-occupiers.

 

In fact, my friend was recently looking. It is now not quite possible to find a relatively new (5 years or so at max), well built, decently sized 3-bedder at a decent location below 1.5 million. 99 Year or Freehold both ok for him. This was quite possible a year ago. Any lobang please let me know so I can advise him. Districts 1-13 ok for him.

 

That's true. When I see the size of a 3 bedder now, I don't what to say. Even the so called 4 bedder is a joke.

[Angcheek]

https://www.edgeprop.sg/property-news/developers-turning-more-cautious-when-replenishing-landbanks-says-dbs

Developers turning more cautious when replenishing landbanks

Feb 19, 2018

That 1% is sub sub water to many ... what is 2000 compare to 1.2m .

 

 

[Showster]

Yes, that is probably the longer term tax position for property purchase taxes after a few more years of aggressive price growth, as the next round to curb price growth.

 

Not so fast definitely.

 

That 1% is sub sub water to many ... what is 2000 compare to 1.2m .

[F10_Blackhawk]

If I am in the shoe of an agent, I will psycho my clients to buy before the flood gates open. Do you guys notice when the flood gates opened the last round? Honestly I didn’t. In fact, many agents ‘warn’ me to buy now before price increase further in 1999, 2004, 2006, 2008, 2009, 2014. In the past I brushed them off as smooth sayers and just smile at them but deep inside I was laughing what drugs were they on? Building of casino will lift ppty prices meh? New shopping center can positively influence surrounding ppty prices meh? MRT...I dun take MRT, so other people also dun take MRT, no use lah. 1 by 1, all my preconceived notions were debunked.

 

But later on, I realized I was the fool. Fortunately I have a better half with better fore-sight, thank God. Picked up a few ppty along the way, sold some and kept some. Just dun over-stretched.

 

So by the time, we notice FT gates has been opened, we will be too busy complaining and blaming the garment for doing so to notice prices has gone up. And when we realized or accepted FTs are here to stay, we would then notice prices have reached and found a new high. Even if it drops or correct, the low will be higher than the high now. And all will suck thumb and the complain cycle repeats itself.

Re-read my post, @#$&* so many grammatical errors lol

[Icedbs]

If I am in the shoe of an agent, I will psycho my clients to buy before the flood gates open. Do you guys notice when the flood gates opened the last round? Honestly I didn’t. In fact, many agents ‘warn’ me to buy now before price increase further in 1999, 2004, 2006, 2008, 2009, 2014. In the past I brushed them off as smooth sayers and just smile at them but deep inside I was laughing what drugs were they on? Building of casino will lift ppty prices meh? New shopping center can positively influence surrounding ppty prices meh? MRT...I dun take MRT, so other people also dun take MRT, no use lah. 1 by 1, all my preconceived notions were debunked.

 

But later on, I realized I was the fool. Fortunately I have a better half with better fore-sight, thank God. Picked up a few ppty along the way, sold some and kept some. Just dun over-stretched.

 

So by the time, we notice FT gates has been opened, we will be too busy complaining and blaming the garment for doing so to notice prices has gone up. And when we realized or accepted FTs are here to stay, we would then notice prices have reached and found a new high. Even if it drops or correct, the low will be higher than the high now. And all will suck thumb and the complain cycle repeats itself.

 

Last year 2 of my buyers were still "watching and waiting" and I told them that if they want to upgrade they better do it fast. That was in Aug- Sept last year.  Their budget is the 3-4m range, and any % price increase is going to hit them quite hard. I told them that based on what I see on ground, the Q3 PPI and the Q4 PPI will probably come in very positive numbers and by then sellers will not be easy to negotiate.  I don't even want to go into enbloc numbers at that time,  becos as agent, we are very sensitive to what we see on the ground for eg the numbers of buyers moving around, the number of transactions closing, developers' news (and their annual reports) , forthnightly market data, etc......and we can get a sense of what is going to happen. 

 

Kudos to them, they acted really fast. One bought a landed and another one a condo in D9. Both completed in December. Both got quite a sweet deal. Now, both areas had seller asking much higher prices especially the one in D9 because the launch of New Futura pulled up the prices there. 

 

And now with the 4% stamp duty, their savings had been quite significant.  If they had been slow, there is nothing I can do.

 

Problem with most buyer's mindset is that they always think agents are trying to BS them to buy  by pushing up the market.  Honestly, agents can make money in both up or down markets. Infact, I personally prefer a down market because the commission from developer is good so more money can be made during a down market.  As a potential buyer, if you have a good agent, listen to him. 

Edited February 21, 2018 by Icedbs

[kdash]

Last year 2 of my buyers were still "watching and waiting" and I told them that if they want to upgrade they better do it fast. That was in Aug- Sept last year.  Their budget is the 3-4m range, and any % price increase is going to hit them quite hard. I told them that based on what I see on ground, the Q3 PPI and the Q4 PPI will probably come in very positive numbers and by then sellers will not be easy to negotiate.  I don't even want to go into enbloc numbers at that time,  becos as agent, we are very sensitive to what we see on the ground for eg the numbers of buyers moving around, the number of transactions closing, developers' news (and their annual reports) , forthnightly market data, etc......and we can get a sense of what is going to happen. 

 

Kudos to them, they acted really fast. One bought a landed and another one a condo in D9. Both completed in December. Both got quite a sweet deal. Now, both areas had seller asking much higher prices especially the one in D9 because the launch of New Futura pulled up the prices there. 

 

And now with the 4% stamp duty, their savings had been quite significant.  If they had been slow, there is nothing I can do.

 

Problem with most buyer's mindset is that they always think agents are trying to BS them to buy  by pushing up the market.  Honestly, agents can make money in both up or down markets. Infact, I personally prefer a down market because the commission from developer is good so more money can be made during a down market.  As a potential buyer, if you have a good agent, listen to him. 

 

boss, can engage you as agent next time if i want to buy property? 

[Icedbs]

boss, can engage you as agent next time if i want to buy property? 

 

Bro, if you have friends, relatives, etc who are agent and you can trust them, then you should go to them first.

 

reason being that they know you well, and probably also know your background, so that does help in making recommendations or suggestions.

[Kusje]

Bro, if you have friends, relatives, etc who are agent and you can trust them, then you should go to them first.

 

reason being that they know you well, and probably also know your background, so that does help in making recommendations or suggestions.

Actually if I have friends and relatives, I won't want to go to then for fear of spoiling relationships and I also wouldn't want them to know too much about my finances.

[Mercs]

those that was acquired for enblock wont be coming on the market so soon until 2019?

The enbloc projects to launch for sale in 2018/2019, with physical units only to be ready in 4 to 5 years 2022/2023.

 

So near term no impact on vacancy rate which should improve due to lesser completion of new units, and with all these enblockers' need to buy asap, to further boost absorption rate of the new launches.

 

Enbloc millionaires dun need to leverage. If do leverage, even more so. Many enbloc $billion$ looking to buy soon, what you think that will do for demand even with raising psf prcies?

 

[Mercs]

That 1% is sub sub water to many ... what is 2000 compare to 1.2m .

 

 

[Angcheek]

Ho ho ho .... those enblock one kana lor

[Icedbs]

Actually if I have friends and relatives, I won't want to go to then for fear of spoiling relationships and I also wouldn't want them to know too much about my finances.

 

That's true as well.........so really depends on the comfort level of the buyer.

 

In this kind of situation, I welcome anyone to PM me,  but I want to be clear that I am not trying to get business from here. I just hope to advise and add value wherever I can because there are too many wrong ideas, wrong understanding and wrong perceptions in this industry.

Edited February 21, 2018 by Icedbs

[kdash]

That's true as well.........so really depends on the comfort level of the buyer.

 

In this kind of situation, I welcome anyone to PM me, but I want to be clear that I am not trying to get business from here. I just hope to advise and add value wherever I can because there are too many wrong ideas, wrong understanding and wrong perceptions in this industry.

thanks bro. i think people here know you not advertising...

[Icedbs]

thanks bro. i think people here know you not advertising...

[Showster]

Ho ho ho .... those enblock one kana lor

If they buy 2 million, need to pay $10,000 more. It’s probably just 2% of their profits from enbloc exclusive of cost,

 

They can also buy a giant resale HDB and get the HDB seller to pay the tax after he buys the private property.

[Volvobrick]

The enbloc projects to launch for sale in 2018/2019, with physical units only to be ready in 4 to 5 years 2022/2023.

 

So near term no impact on vacancy rate which should improve due to lesser completion of new units, and with all these enblockers' need to buy asap, to further boost absorption rate of the new launches.

 

Enbloc millionaires dun need to leverage. If do leverage, even more so. Many enbloc $billion$ looking to buy soon, what you think that will do for demand even with raising psf prcies?

 

Depends on whether their only property or second/third property kena enbloc.

 

If the second situation, the hurdle to get back in is 11 percent buyer stamp duties paid to ah Kong up front which will deter many from buying back a second (investment) property.

[Jamesc]

If any agents out there.

 

I am looking for a landed budget 12m.

 

Prefer tenanted with long contract as

 

don't want the hassle of finding new

 

tenants. No bank loan needed.

 

 

 

[Showster]

Its a valid point. But given that the enbloc was a success, this is unlikely the majority profile of the sellers, as they would have either objected or factored in the cost of replacement.

 

On the other hand, as many of these large units house multi-generation families, the nett demand might also be more than 1 for every unit.

 

The couples who have removed names can now buy 2, or even 4 (with their children and loan) if they understand the game well.

 

 

Depends on whether their only property or second/third property kena enbloc.

If the second situation, the hurdle to get back in is 11 percent buyer stamp duties paid to ah Kong up front which will deter many from buying back a second (investment) property.