Property Prices are high

I always hear this reply whenever i pitched my sales to my potential buyers or sellers, often i hear them telling me property prices are high, how to buy? where got money to buy?

To that i will tell them , that even if I pitched the same sales, for the same project 40 years ago, the prices are always high. Since when will anyone says prices are cheap, properties are affordable..no one will say that...

The fact is, prices are always high, no matter at which year you are living in..
It is not the price at the point of time we buy is high, it is the exit price we need to sell have to be high.

For us as a property consultant, it is our job to inform our clients why is there a need to buy now, we provide past statistics and data to proof that in Singapore, it is healthy to see property prices going up.. we should embrace the uptrend, and not to be scare away and then do nothing to it..

' The weekend of Nov 10-11 saw about 60% of 50 units released sold at The Woodleigh Residences, according to a press statement released by Kajima-SPH, the joint venture between Japanese developer Kajima Development and Singapore Press Holdings (SPH). Average price of units sold is said to be above $2,000 psf.'

At these price why not consider Whistler Grand at $1300psf? Do we really need all the integrated amenities within the condominium? Singapore is one of the most well connected countries in the whole, you can go to any eating places, cinemas, shopping centers within 30 mins drive.. 

$200 0 psf is too high an entry..

Exclusive agent or open listing?

You can engage as many real estate agents you want, and that is just what some people do when trying to sell or rent out their properties.

It is like having a football team with 20 players instead of 11: The more people, the more chances to score right?

Actually, it is not quite that simple. Here is what you need to know before you use a whole army of agents, or give a property agent exclusive rights to market your property, be it for sale or renting out.

THE PROS OF MULTIPLE PROPERTY AGENTS
The benefits of having multiple property agents are that: You can theoretically reach a wider group of buyers; you are getting a wider perspective; and you can access different buyer demographics.

1. You can theoretically reach a wider group of buyers

This is the theoretical “shotgun effect”. If one property agent with exclusive right can find two interested buyers/tenants, 10 property agents can find 20. This remains one of the core reasons why some sellers/landlords want multiple agents: They think they can close the deal a lot faster.

But further below, we will explain why we think this theory is outdated.

2. You are getting a wider perspective

More agents often mean more feedback. You will get a wider range of opinions, such as on what renovations to make to attract more tenants, or which nearby amenities to highlight, or how much you should set your asking price. Since each agent potentially brings a new insight, you could learn a lot about your property that you had not considered.

The downside to this is analysis paralysis. It is kind of like hosting a marketing meeting with 30 people, and ending up taking six months to decide on the colour of a product. You also need to remember that not all agents have equally informed opinions – that leaves it up to you to filter out the valuable insights from the rubbish.

3. You can access different buyer demographics

Different agents, in theory, cater to different types of buyers. By using multiple agents, you can market your property to multiple demographics at once. For landlords this would mean reaching different types of tenants, from foreign students to affluent single expatriates.

There typically isn’t a diverse demographic where buyers are concerned, so using multiple agents to reach different profiles is usually done by landlords who want to rent out, but are not sure which segment of the market they should target. Even though this sounds reasonable, we do not fully agree with this, for reasons described below.

THE DOWNSIDE OF USING MULTIPLE AGENTS

Back in pre-Internet days, the two positions – multiple agents versus an agent with exclusive rights – were more or less equal, but buyers now rely on online platforms to search for properties.

Changes in the way a property is bought and sold, coupled with new regulations implemented over the years that restrict the ways agents can market their properties, mean there is now more advantages to using an exclusive agent.

That is because: Almost all agents now use the same platforms to market your property; for regular residential properties; you seldom need access to niche demographics; prioritisation is more important than numbers; and multiple listings can confuse prospective renters or buyers.

1. Almost all agents now use the same platforms to market your property

Before the rise of online listings, marketing properties was less efficient. It mattered how many flyers your agent put out, how many cold calls they made, and which newspapers or magazines they advertised in. Multiple agents were more helpful in those days, as they were needed to cover more ground.

But today, most buyers go through the same online listings sites, or browse using the same apps. And because of the way internet listings work, you will reach roughly the same volume of potential buyers, regardless of how many agents you use. The Do Not Call registry and Council for Estate Agencies (CEA) rules against flyer distribution also helped concentrate agent marketing efforts on online portals.

(At most, having multiple agents will mean your listing gets posted a few more times, but that is also a drawback – see point four).

2. For regular residential properties, you seldom need access to niche demographics

It is commonly said that different agents can access different demographics. But the question you have to ask yourself is: Does that really matter for your property?

If you are trying to sell a property that is out of the norm – such as a S$15 million penthouse, or an industrial manufacturing site – then having a group of specialised agents can be important.

You will want agents who can access certain niche demographics (for example, one agent to target the super-affluent or one agent to target businesses buying properties). Each agent may also have personal networks they can tap on for potential buyers.

But for selling more mainstream properties, such as HDB resale flats or mass market condos, these specialisations matter less. The buyer demographics are not as niche, and most agents will be reaching out to the same pool of people.

For renting out properties, different demographics now rely on the same means — online portals — to find their rooms and units to rent, thus negating the need for multiple agents.

3. Prioritisation is more important than numbers

Because real estate agents are in sales, there is the old misconception that it is just a numbers game. Now that may be true for the agent in question, but sellers and landlords are always better off focusing on quality.

There is no point having five agents who can sell your property, if all of them put you last on the priority list (because they think someone else might get the commission).

Even worse, a non-exclusive agent might use your house as leverage to sell another property on his/her list. The agent might show a prospective buyer your house first, because he/she has access to it, after which they may bring the buyer to a better house, using the technique of contrast to pump up the perceived value of the second home. In short, you might get played if you use multiple agents.

4. Multiple listings can confuse prospective renters or buyers

This is why some agents hate listing houses, after another agent already has. Prospects get confused when they see the same property marketed by different agents – they may think some of the listings are old, or wonder if there might be something wrong about the house. They might even think it is a scam.

Put yourself in their shoes: Imagine if Agent A shows you around the house, and the next day you find the same property listed, but with Agent B as the contact — you may feel that you are being played.

So, stick to an exclusive agent if you do not want prospective buyers to start asking questions like “How come there are so many agents and it’s still not sold? Have all the other agents gave up?”

In general, it’s better to give one property agent the exclusive rights to sell or rent out your property. Given how properties are marketed nowadays, as well as buyer behaviour and mindsets, there is very little to recommend the multiple agents route. It is much better to switch agents if the current one is not performing. It is not hard to do, and it ensures every agent you engage is more committed to market your property.

This article first appeared on 99.co.

https://www.channelnewsasia.com/news/singapore/exclusive-rights-multiple-property-agents-which-is-better-10887762

Limited Supplies of 1 Bedroom ( New Launches) in CCR

There aren't many 1 bedrooms launched in recent years for those new condominiums in CCR. Among those that launched within the past 2 years, only 5 have 1 bedrooms and they are8 St Thomas, Loydl 65, 8 Hullet, Marina One and Wallich Residences.

8 St Thomas is the cheapest at $1.46mil, but the location is quite a distance from the MRT.

The 2nd cheapest is MarinaOne, selling at $1.7mil, but this project is a 99yrs leasehold.

The next is 8 Hullet at $1.77mil.

And both Lyold65 and Wallich Residences are all above $2mil.

That makes 3 Cuscaden price for 1 Bedroom very attractive, in terms of entry prices and location of the condominium.

With the limited supplies for 1 bedroom, and demand for these sizes are usually very strong, do not miss the opportunity to own one of the luxurious yet affordable unit in CCR.

Is $4000psf at CCR going to come in the future?

Currently the new launch at 3 Cuscaden is going at $3500 psf, as supply is usually limited in CCR and demand is quite stable, will we see the price touch $4000psf?

120 Grange saw many units transacted at above $3000psf, 

Former Park House was purchased by Hong Kong listed company at $2900psf, they will need to sell between $3700 to $3900 psf to break even..

So will the future development in CCR sells at above $4000psf as the new acceptable entry price?

URA changes floor size outside of CCR

The recent announcement from URA in regarding smaller shoebox units, namely the 1Br and 2br, is worth to ponder upon.

Why does URA suddenly came up wirh a regulation to have the developers increase the floor sizes from 70sqm to 85sqm and 100 sqm? That is an increase of around 21% and 42% respectively 

Let us take a step back and look at the whole picture. 2 points to highlight,

1. Singapore family sizes are shrinking, parents do not want to have  more children now 

2. We are fast becoming a aged society 

How do we interpret this? It means the demand for smaller units will remain stronger than before, and with limited supplies what will happen? Prices will go up..

But will increase in floor sizes lower the psf?

Put it this way, if demand for smaller sizes increase will developees drop the price? 

Another Important impact to this new regulation is the quantum of the small size units.

This will means the quantum for this type of units will increase, and you will find you need to fork out more out front to buy such units.

Will there be more cooling measures in the coming months?

Prices for private new launches is also going up. Tre ver will increase their prices after 15 Oct.

It will take a few more cooling measures before the prices dip. 

https://www.todayonline.com/singapore/spore-home-prices-rise-despite-cooling-measures-says-morgan-stanley