11/05/2020
Dear Client 😊 Hope your 5th week had been perfect!
Here are consolidated property market updates and summary of what happened just last week!😊
Many clients have been asking me for updates and you would be surprised to know that from 1st week of circuit breaker (just over 20 units sold for New launches), to 2 weeks ago's 51 units and last week SG saw 80 units sold for New Launches excluding resale HDB/Condo/Landed!
The weekly numbers have been increasing at an fast rate, and note that buyers DID NOT even view the properties, and most developer sales are holding its prices not giving additional discounts. There are some developers giving discounts for a handful of units for some developments to lure clients to come to consider the projects and maybe end up buying another unit without additional discounts, but that's about it.
🤷You asked, "WHY are people buying if there's no additional discounts?" See below.🤦
https://www.edgeprop.sg/property-news/good-class-bungalow-windsor-park-bought-2168-mil-without-viewing?utm_source=MondayEDM&utm_medium=email
Buyers are even buying $20 over mill GCBs like Hin Leong's, without even viewing it, and the deals are done at market prices not firesales!
Actress Viki Zhao's husband had also bought a $28M penthouse 🙊
https://www.scmp.com/business/banking-finance/article/3083514/hong-kong-has-lost-out-rich-peoples-fresh-funds-singapore
China buyers are shunning HK properties and instead buying SG properties. My China clients have similarly been doing this wise move ;)
https://www.channelnewsasia.com/news/singapore/couples-more-time-absd-tax-remission-property-covid-19-12708066
In the unprecedented mortgage deferment scheme by government, so that houses won't be firesaled, even if owners don't need the cash, I also highly encourage them to consider so they can store cash, invest smart and make more returns, while deferring home loans and not requiring to firesale their houses.
As expected, last week more Govt measures came to further stabilise the market - https://www.channelnewsasia.com/news/singapore/couples-more-time-absd-tax-remission-property-covid-19-12708066
In addition to the easing of Qualifying Conditions for qualified developers, now developers have additional 6 months for completing projects if they are stuck.
Coupled with their low 10-20% gross profits compared to 2008 when their profits exceed 100% giving them ease of cutting prices when required, these new measures will also give them extra time to sell remaining units which are still being taken up slowly but surely.
In short, these are just some reasons why most reputable and big developers are holding their prices well.
SC married couple qualifies for the 6-month additional extension to sell their first ppty to get back ABSD ( total 1 year to sell!) ONLY IF the couple’s 2nd residential property is jointly purchased on or before *Jun 1, 2020* ( small window of opportunity).
All these good news of stabilisation of market preventing firesales still be reviewed and may get further govt extensions if still required to.
Since the history of time, buyers who buy during crisis earns more than when economy has recovered, more and more people buy, causing prices to surge, and number of your choice units to deplete.
You might have seen this yourself, that most of the time, buyers looking for good deals but not acting when they found it, end up paying much more later on! Many examples can be seen from buyers of Kovan Residences, The Sail and most recently, buyers who bought the 1st batch of Martin Modern, Seaside Residence, Stirling Residences, Park Colonial etc during uncertain times, are exactly the buyers who got the best deals and high capital gains as developer increased price massively when uncertainties cleared and more buyers waited to buy subsequent units at much higher prices instead of lower prices. No matter what, the number of units developer has, only gets lesser, not more!
Over the years, we have seen too many buyers waiting for best time to buy, but when the best time came, they wanted prices to drop before buying, but they ended up buying at higher prices and not their choice units. You can PM me for more examples and be shocked to know how a few days difference can lead to developer increasing price by 5 digits. In current climate, it's hard for developer to drop price, but as demand increases, it's too easy for developer to increase and push up price for buyers who acted earlier.
If you haven't realised, 😊 in addition to the constant great cooling measures ( since 2009) to stabilise market exactly for times like this, government is spurring property purchases by preventing firesales as well, something not done in the past. Our market is now so stable and cant crash as there's no bubbles, that's exactly why our China friends prefer to buy NOW into SG Properties.
In Chinese, crisis, 危-机（机会means opportunities, that's why they earn more.
PM me if you want a breakdown of which were the 80 units sold last week or want to know more on where our resilient SG market is heading!;) Expect this week to be trend breaking as well!
Best regards and stay safe!
Charlyene Choo
Huttons
91295685
The type of deals that can be done without the buyer visiting the property? An old house to be torn down and redeveloped.
