What Goes Up, May Not Come Down...

"Has the prices of properties in Singapore gone mad?", "Why are the prices so high?", "Who can afford?" - These are some common questions that we faced when speaking to our clients. The truth is our first instinct is likewise, why and what caused the raising price?

To answer this, my colleague - Janice - and I sat down to discuss factors contributing to the raising prices and discuss if there are any underlying fundamentals to support such price level and on the flip side; are buyers entering into a market where they are doomed to lose their hard earn money?

You can watch our video here:

Or you can read the summary here:

Raising Costs

Land cost has been raising in land scarce Singapore and coupled with that material cost has risen!

Apart from which, developers are for-profit organisation and as such, they are responsible to their shareholders to bring in the profits.

...buyers are getting into the market before they are priced out in future...

Supply & Demand

Healthy demand for new launches has also pushed developers to bid for land more aggressively to replenish their depleting land banks in order to meet the demand. With that in mind, buyers are getting into the market primarily they don't want to be priced out (both in terms of price and size) as they expect prices to remain buoyant.

Old Price Tag

Formation of the "new low" benchmark pricing; From what we've seen from the recent launches, we noticed that buyers have accepted the "new low" in housing prices. Million HDB Flats have also recently made it to the news (perhaps we can do an episode to discuss this)!

Fundamentals

While we step into uncertainties (with war in Europe, trade sanctions and business grappling with high interest rates and logistic crunch), why are buyers still entering the market with such optimism? As we dive into the data we can deduce broadly that; (1) The pool of buyers currently entering into the market are primarily Singaporeans whom are financially able to hold the property through its natural cycle, (2) The government has put into place measures that ensures that we are not overspending, and, (3) Buyers are entering into the real estate to preserve their wealth through "Real Asset"

... before anything else, our first step is to review and analyse your financial standing...

How Do I Do The Same?

While we spoke about the "why" (prices will remain resilient), Janice and I also discussed more importantly "WHAT" we should all be aware of prior to making the decision and "HOW" to get it done?

A Peronsalised Risk Assessment Management Plan!

Before anything else, we work with our clients to review and analyse their financial commitments together. This would form a good foundation for goal settings and a solid plan that can ride through not just property cycles, it should also enable our clients to ride through economical cycles too.

We hope that you enjoy our little chit chat and we hope to bring you more as we go along this journey.

You can contact us below if you have any questions!

Janice:

Kelvin

+65 9898 2826 | Whatsapp