Monday, September 29, 2008
About this Blog
"With land costing easily between $250 & $350 psf coupled with high, construction costs, developers' break-even cost is at least $700psf. Livia's average price of $650psf is definitely a steal" Jack Chua, President, ERA; Peter Ow, Executive Director, Knight Frank
Implicit in this sort of sale pitch is that with the soaring construction costs, property price must inevitably rise. To this, we've the responses of property sellers and buyers in the Singapore Property Forum:
Seller:
"yes it is absolutely true that land price, construction costs, labour costs, etc have all gone up which means developers will not be able to sell at less than their cost, that will be plain stupid and not in the interest of shareholders. knowing that demand now is weak, deveopers will not launch aggressively as they are not stupid."
Buyer:
"it is plain stupid to be stuck with a big stack of hot potatoes and paying interests and affecting cashflow which is definitely not in the interest of the shareholders. They are not stupid, but they miscalculated.
How many people stuck with hot potatoes are stupid? They are just greedy and miscalculated."
Another Buyer:
"since when are developers so generous to sell cheap just because land and construction are cheap?... in 1996 (property peak) construction cost is definitely cheaper than today but price was high until people go bankrupt ... developers will sell high high if buyers are suckers enough to pay high high price... if nobody is willing to pay or just cannot find bank loan to pay for high high price, then nobody buys ... then developers will have to sell at price people can pay or willing to pay .. so dont keep on talking about construction cost going up ... only stupid people believe you "
Seller:
"so be careful when you read about comments by bearish people. just think about it, if they are so bearish they would have sold their own homes and renting now. do they do that? NO. these people already own their own property and want to buy a second property and hence they go around shouting for prices to go down. they use the US credit crisis as reasons for prices to go down."
Buyer:
"There is no point in selling and renting now as we are not property speculators. We do not shout for prices to drop and to buy cheap. It is to tell people not to be SUCKERED to buy expensive as what you wanted them to do."
Seller:
"so if you own a home and can afford your mortgage there is no need to be afraid. as long as you are not overleveraged and live within your means, you should do ok."
Buyer:
"Unfortunately a lot of people are over-leveraged and greedy. For these people, what advice do you have? Isn't it the same advice as bears? Be prudent, don't over-leverage or just sell if you have a chance?....If you have made a mistake and then you try to cover it up (by being in self-denial or telling others that market will continue to go up) you have made another mistake."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Livia Condominium @ Pasir Ris 160 units sold during Launch
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Higher Construction Costs means Property Price must rise ?
There's this Ad in Straits Times (13 Sept 2008) on Livia Condominium for Sale:"With land costing easily between $250 & $350 psf coupled with high, construction costs, developers' break-even cost is at least $700psf. Livia's average price of $650psf is definitely a steal" Jack Chua, President, ERA; Peter Ow, Executive Director, Knight Frank
Implicit in this sort of sale pitch is that with the soaring construction costs, property price must inevitably rise. To this, we've the responses of property sellers and buyers in the Singapore Property Forum:
Seller:
"yes it is absolutely true that land price, construction costs, labour costs, etc have all gone up which means developers will not be able to sell at less than their cost, that will be plain stupid and not in the interest of shareholders. knowing that demand now is weak, deveopers will not launch aggressively as they are not stupid."
Buyer:
"it is plain stupid to be stuck with a big stack of hot potatoes and paying interests and affecting cashflow which is definitely not in the interest of the shareholders. They are not stupid, but they miscalculated.
How many people stuck with hot potatoes are stupid? They are just greedy and miscalculated."
Another Buyer:
"since when are developers so generous to sell cheap just because land and construction are cheap?... in 1996 (property peak) construction cost is definitely cheaper than today but price was high until people go bankrupt ... developers will sell high high if buyers are suckers enough to pay high high price... if nobody is willing to pay or just cannot find bank loan to pay for high high price, then nobody buys ... then developers will have to sell at price people can pay or willing to pay .. so dont keep on talking about construction cost going up ... only stupid people believe you "
Seller:
"so be careful when you read about comments by bearish people. just think about it, if they are so bearish they would have sold their own homes and renting now. do they do that? NO. these people already own their own property and want to buy a second property and hence they go around shouting for prices to go down. they use the US credit crisis as reasons for prices to go down."
Buyer:
"There is no point in selling and renting now as we are not property speculators. We do not shout for prices to drop and to buy cheap. It is to tell people not to be SUCKERED to buy expensive as what you wanted them to do."
Seller:
"so if you own a home and can afford your mortgage there is no need to be afraid. as long as you are not overleveraged and live within your means, you should do ok."
Buyer:
"Unfortunately a lot of people are over-leveraged and greedy. For these people, what advice do you have? Isn't it the same advice as bears? Be prudent, don't over-leverage or just sell if you have a chance?....If you have made a mistake and then you try to cover it up (by being in self-denial or telling others that market will continue to go up) you have made another mistake."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Livia Condominium @ Pasir Ris 160 units sold during Launch
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Saturday, September 27, 2008
About this Blog
May also want to read:
Property Buying Tips: Lessons from Boom-Bust Property Cycles of the World
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
Singapore Property Buyers increasingly attracted to Overseas Property Investments
According to the Asia Property Trends Survey 2008 from iProperty, there is a decrease in the number of property investors buying in Singapore with only 54% said they would purchase a property from the Singapore private property market. This is a significant fall from 2007 when 78% of Singapore property investors chose Singapore property as their prime interest. This indicates that overseas property investments are becoming increasingly more attractive to Singapore property investors. The geograhical shift in real estate interest should not come as surprise as property price remained all time high in Singapore, while property prices in many parts of the world have declined.(The Global Property Guide, a property research group, reported that for the first half of year 2008, property prices fell in 21 of the 33 countries.)May also want to read:
Property Buying Tips: Lessons from Boom-Bust Property Cycles of the World
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
Subscribe to:
Posts (Atom)
