Dear Reader,
Thanks for reading this post.
How knowledgeable are you or your agent?
I am wondering if property sellers and buyers are knowledgeable about the trending in the market and the direction that the property market is potentially going to head in the near future and within the next 5 years.
I am also wondering if your agent is kept abreast of the market conditions so that he/she would be able to share his/her opinions and advice clients well. Do they read extensively and analyse each report carefully before agreeing/disagreeing with the argument and use these knowledge to your advantage?
"Knowledge is power? Actually useful knowledge is REAL power."
So what's the proposition?
I'm keen to share my opinions on the news reported and reports that I read from consultancy firms like Jones Lang LaSalle, CBRE, DTZ, Colliers and Cushman & Wakefield.
Why? The fundamental reason is because I would like to share real estate knowledge with more people as I believe that real estate is not an easy field to comprehend and many sellers, buyers and even agents may find it difficult to grapple with. The more knowledgable the population is with real estate, the closer it is to the shared vision that I have with my fellow colleagues. (http://www.lynnong.net/agent-about)
So what's the trending in the near future?
Mr Ku Swee Yong, a very respected analyst in Real Estate, commented on Today on 4th November 11, about the huge supply that is going to hit the market next year, expected to be 12,043, coupled with this year's supply of units projected to hit 10,889. With 22,932 units coming in, Mr Ku had argued that vacancy rate would increase as those units that are going to TOP next year would potentially meant to be tenanted than to be owner-occupied.
My personal take is that if those unit were meant to be tenanted as predicted by Mr Ku, it would be highly likely that rental rates would drop and for the investors who were holding on to the units, if the rent is not able to cover the mortgage, these investors may sell the properties at a discount, hence causing a decline in the property prices. If interest rates were to increase next year, it would add oil to fire as mortgage cost would increase as well. However, it is not expected that interest rates would increase in the near term due to the low interest rate in US, fueled by high employment rate.
"On balance, in the immediate term, we expect a 5 to 10 per cent reduction in private residential prices, i.e. a drop of the URA PPI from 205.7 points to around 190 within the next 12 months, mainly due to new sales from mass markets where the supply wave is strongest." - Mr Ku Swee Yong's prediction
Full article of Mr Ku's news article is as follows : http://www.todayonline.com/Commentary/EDC111104-0000059/Supplies,-supplies,-supplies!
What's NeXt?
After this post, I will be sharing on another perspective that was shared in a consultancy report on the impact of the sudden increase in housing stock that is expected to coming in 2012. Stay tuned!
Lovely Regards,
Lynn ONG (王丽英)
Lynn ONG (王丽英)
District Manager
ECG Property Novena District
ECG Property Novena District
L3009759F / R014-395F
BSc. Real Estate (NUS)
Mobile: (+65) 8479 3149
BSc. Real Estate (NUS)
Mobile: (+65) 8479 3149
Website: http://www.LYNNONG.net/
Blog: http://www.lynnlovelyhomes.blogspot.com/
[Blogging on Analysis of Listings and Real Estate News]
[Blogging on Analysis of Listings and Real Estate News]
