It has been a month since the introduction of the new cooling measures. In this episode, we will check the impact of higher ABSD and lower loan-to-value on the property market.
1. New Launch
What are we seeing in the new launch market and what is going to happen next?
2. Collective Sale Market
What is happening in the collective sale market and what are owners doing?
3. Non-Landed Resale and HDB Resale Market
What are the latest URA Q2 Statistics and SRX July HDB Resale and Non-Landed Resale numbers telling us?
4. The 3 Oversupply Misconceptions
Why a supply glut is unavoidable in the near future?
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Hi Vina, in 2:50 of the video, you shared that developer will start giving discount of 5-10%, followed by 15-20% and further discount at 50% and final stage, left over at 70-80% to clear stocks before 5 years deadline. Did such scenario ever happen in Singapore? I read your book, I recall you mentioning developer will not bother to give discount to individual buyer. So if above discount situation does happen, how would individual buyer get info and buy direct from developer at discount?
Did you see that the Great Singapore Sale is an analogy?
I am saying that developers won’t give discount separately to you as an individual buyer at the sales gallery. Over there your bargaining power is one out of hundreds or a thousand units.
But when times are bad, developers will publicly or unknowingly offer some level of discounts to all new buyers. Big discounts are usually offer to bulk purchase by companies.
You may like to read the example of Costa del Sol again in my blog post “Are Singapore developers forced to walk a tightrope?”
https://www.propertysoul.com/2017/05/21/developers-forced-to-walk-a-tightrope/
Dear Vina,
I appreciate your unbiased comments.
That is what I find disgustingly bias from parties with vested interest. If new launch only sells 10 to 20%, it is a failure in this ‘bullish market’. However headlines only turn the news otherwise like ‘decent sales at new launch ’ and ‘70% sales of units Launched sold in 3 hours’ etc. If sales are good, would Developers not launch all their units? If there are 6000 interested visitors, why only 140 units or 2% of interested visitors buy???
These days the media (print or online) can’t be neutral any more. How can they place new launch ads next to an article with headline and content about a new project sales flop over the weekend?
Besides, who can verify there are really 6,000 showed up at the sales gallery? And who can tell how many are property agents and how many are real buyers?
One property agent kept asking people in a blog to “buy, buy, buy” because “how many 10 years do you have?”
He ended up admitting “Who care what people say all agent are the same, important is pocket got extra cents to spend.”
Imagine how many people ended up putting money into his pockets?
It’s true. Remember people who bought overpriced condo units in the mid-1990s took almost 20 years to break even? How many 10 years do we have?
https://www.propertysoul.com/2014/04/22/the-resurrection-of-property-prices/