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

Interesting article for those who wants to know more about CPF 

https://news.nestia.com/detail_share/336942?media_type=1&nestiaShareChannel=whatsapp#

Why should you buy new launches?

I have come across a lot of young couples asking me to help them look for resale HDB, I often asked them why resale HDB? Their most common answers are usually,

1) cos is big and cheap 

2) they can't afford private condominium 

3) they wan to stay near parents

But are those reasons important factors or crtierias when buying a houee? 

The questions I like to ask is ' how much do you think your house can sell in 5 years times?
or ' Can you make a profit in 5 years time?'

Usually when I calculate for them they can afford either a 1 bedroom or a 2 bedroom new launch condominium, why do i suggest them to consider new launches?
The units are smaller in size, but if i tell you you can potentially earn S$200k in 5 years time, will you be interested?

I am not plucking numbers from the air, because it was happening now. statistically it was proven that within 5 years after TOP, a brand new unit can earn the buyers the most profit. 

Can a resale HDB sell with  such good profit with all the uncertainty about hdb reaching 99 years old? Think about that...

Call me to find out more before you consider buying a resale HDB 

Caleb seeto 

90074191 

PARC ESTA REVIEW

PARC ESTA

UBS GLOBAL BUBBLE INDEX

For those who says Singapore property is facing a bubble, read this article first..Singapore has a fair value of 0.44, which means we are not facing a burst anytime soon..comparing this with Hong Kong, which is having an index of 2.33..

CLICK ME:

UBS GLOBAL BUBBLE INDEX

3 ORCHARD BY THE PARK

QUICK FACT ON THIS CONDOMINIUM 

Project Name	3 Orchard By-The-Park
Address	3 Orchard Boulevard, Singapore 248653
Developer	YTL Westwood Properties Pte Ltd
Tenure	Freehold
T.O.P. Date	TOP Obtained
District	10
Total Units	77 Units

Let's look at condominiums in and around Orchard area: PROJECT NAME TENURE No. Of Units COMPLETION AVERAGE PSF($) Orchard Bel-Air 99-Year 71 1984 1,208 The Tomlinson Freehold 29 2002 2,133 St Regis Residences 999-Year 173 2008 2,292 Cuscaden Residences Freehold 150 2002 2,002 The Grange Freehold 95 2008 2,257 Hana Condo 99-Year 26 2014 - As you can see,  other than Hana condo (which is only for lease), there hasn’t been any new condos being released for sale in the area for the last decade and the developer could possibly leverage on the demand for brand new condo units within the precinct.  To put it simply, having a freehold property in prime District 9 which is sitting just next to an MRT station is simply rare, however, we believe that this is not the only consideration factor for the high net-worth individuals. At S$3600 psf is 3 Orchard By the park a good buy? Heated bids may fuel Orchard home prices to $4,000 psf Breakeven levels for Park House is estimated at $3,300 psf. Aggressive bids for prime sites in Orchard Road may push home prices to go beyond the $4,000 psf  according to a flash note by DBS Group Research. This comes as Hong Kong-listed Shun Tak snapped two prime residential sites in Orchard Road, 21 Orchard Boulevard (Park House) and 14 & 14A Nassim Road, for a combined $593.5m in a move that significantly widened its real estate exposure as the company has selectively invested in commercial and hospitality projects in the lion city. “These are bold bids placed by Shun Tak as the bid prices imply that selling prices will test new highs in the Orchard vicinity,” said DBS analyst Derek Tan. After assuming a 10% balcony bonus, break-even levels for Park House and 14 & 14A Nassim Road clock in at $3,300 psf and $3,100 psf respectively, according to DBS estimates, suggesting that projects in the pipeline could hit or even breach the $4,000 psf mark. “We note with over 20 sites sold within the core central region year to date, supply in the CCR for new developments is building up in the near term and competition for buyers’ attention is also heating up,” he added. With nearly the entire stretch of Cuscaden Road up for sale including YTL’s 77-unit 3 Orchard by the Park and a GLS site scored by SC Global, Far East Consortium and New World Development, it would come as no surprise if property prices would breach benchmarks and set new records in the coming months. source: RESIDENTIAL PROPERTY | STAFF REPORTER, SINGAPORE PUBLISHED: 14 JUN 18

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HDB resale prices drop slightly

HDB resale prices drop slightly last quarter, while private houses prices increases, what does this information tells us? 

Are property owners moving away from public housing, especially the older ones?

https://www.channelnewsasia.com/news/singapore/hdb-resale-prices-q3-2018-bto-flats-november-10774706

Is Singapore property affordable ( Part 2)

This is a research done by UBS. Is a bubble forming in Singapore property? How is Singapore property prices as compared with other countries.

global-real-estate-bubble-index-2018

Is Singapore property affordable compare with Yr 2008

This is a interesting research done by UBS, comparing Singapore in Yr 2018 with Yr 2008.

See the chart below:

Will Singapore property crash in the near future?

I was talking to my neighbour yesterday and was surprised that he rented a unit in my block, his reason was simple, he doesnt want to own any property now, he wants to keep his cash for now and wait for the right time to buy when the propery crash.
His observation was that the property market now has gone crazy and out of sync with the current economy.
So the million dollar question is ' Will the property market crash'?
I am not a economist so i cant answer this question. But i learnt a few valuable information from Propnex, and extract some information from the website and let readers decide.

1) Year 2018 saw the 1st cooling measure from the government. This was the first cooling measure after 5 years, the last was the TDSR in Yr 2013. Will this one cooling measure going to stop the property market from moving up?



2) Due to the limited land bids from the government, developers have been buying old properties for the past 3 years starting from Yr 2016. The aggressive enbloc saw a lot of enbloc owners flooding into the market to searching for new houses.

3) Propery market is a cycle. After several years of downturn, in Yr 2006, it began 2 years of up swing of 102%, before the down cycle kicks in. In year 2008, there was a drop of 34% until Yr 2009.
In Yr 2009 onwards, it started a 5 years long cycle of uptrend which saw property market move up a staggering 91%. And this was the start of the 7 cooling measures from the government in an attempt to slow the market from continuing to move up further. Their program works after they introduce TDSR, and market drop by 18% from 2015 to 2016.
We are now in the 4Q of 2018, and we only witness the start of the uptrend. So how many more years will this market moves up before it drops again?

Conclusion
What i am trying to bring across is that this government had learned from the 1997 Asia crisis and the cooling measures is an attempt to minimise the damage as little as possible. They are discouraging buyers to over commit themselves financially, and only to buy within their means.
Even if property buyers are caught in property crash, they can still hold on to their property until the next upturn.


https://stackedhomes.com/blog/singapore-property-market-crash/

Hong Kong property market 2018

If you say Singapore property are too expensive, think about it..

In HK, the  median price of homes has been rising for 26 consecutive months, with no sign of slowing down.

A 27-year-old, 147 sq ft unit at Fung Tak Estate in Wong Tai Sin changed hands for HK$2.78 million.

What does that mean, in Singapore with limited land space, a good and stable political environment, and cooling measures to prevent sudden surge in prices, I believe Singapore property will continue to appreciate at a slow and gradual pace..

LTV WEF from July 2018

The chart below is the new LTV with effect from July 2018

ABSD RATE WEF JULY 2018

Below are the new changes to ABSD In Singapore

Gross Plot Ratio

So what about Gross Plot Ratio (GPR)?

So the maximum level of residential development is bounded by the GPR control specified in the Master Plan. There are times when the full potential of the GPR may not be achieveable due to limitations imposed by the site configuration and other factors that affect the site.

As a general guide:

Density	GPR
Very High Density	>2.8
High Density	up to 2.8
Medium High Density	up to 2.1
Medium Density	up to 1.6
Low Density	up to 1.4

GPR will also determine the height of the building, this can be show in the table below.

GPR	Storey
1.4	5
1.6	12
2.1	24
2.8	36
>2.8	>36

What is Gross Floor Area (GFA) and how does it relate to GPR?

For example, if a developer is determining the potential value of a piece of land with a GPR of 2.8 and a land size of 100,000 square feet. The GFA is simply 2.8 * 100,000 = 280,000 gross floor area. So the higher the number, the more units that can be built on that piece of land.