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Cheung Kong prepares to offer 165 sq ft flats

2014-10-07T19:32:00.000-07:00

Sandy Li
sandy.li@scmp.com

Property prices continue to rise, but sizes appear to be heading in the opposite direction.

Developer Cheung Kong is set to unveil Hong Kong's tiniest flat - at just 165 sq ft - at its Mont Vert project in Tai Po.

And with the latest figures showing prices rising for five consecutive months up to August - and analysts confident this will continue despite any fallout from Occupy Central - more tiny flats are likely to be on the way as developers cash in on a strong demand for small units.

"The general public can hardly afford spacious homes anymore," said Patrick Chow, the head of research at Ricacorp Properties.

His assessment was backed up after Swire Properties said yesterday that no buyers had registered for the third batch of 22 flats at its 127-unit luxury residential project Arezzo in the Mid-Levels that go on sale today. This is the first new development that has failed to register any potential buyers ahead of the official sale.

The flats, ranging from 916 to 1,306 sq ft, are being offered for HK$30.9 million to HK$43.89 million.

Before the Occupy protests began, Swire sold 62 units for HK$1.6 billion.

The Rating and Valuation Department's monthly price index for private homes climbed to a record 260.8 in August, marking a 6.4 per cent increase in the first eight months of the year.

And while the pace of growth slowed slightly in August to 1.87 per cent from 2.3 per cent in July, property agents and developers remain confident.

"The growth trend will continue in September as small flats manage to fetch relatively high prices," Chow said, adding that rising prices would encourage developers to build smaller flats.

"It appears that political instability has had little impact as most buyers are end-users."

Small flats continued to sell for big prices despite the Occupy protests. On Thursday, a 449 sq ft unit at the 22-year-old Locwood Court, Kingswood Villas in Tin Shui Wai, sold for HK$3.42 million, or HK$7,617 per sq ft of saleable area.

Over the past weekend, agents said, a 242 sq ft unit at the 30-year-old Garden Rivera in Sha Tin changed hands for HK$3.58 million, or HK$14,793 per sq ft - the most expensive for a flat of that size in the 1,585-unit development.

Cheung Kong's 165 sq ft offering takes the record set by Henderson Land's 166 sq ft flat at High Place in Kowloon City last year.

The smallest units in the second stage of its Mont Vert project will be 10 sq ft smaller than the smallest studio it had offered in the first stage of the development. The 279-unit Mont Vert Phase II in Fung Yuen will have 47 studio units. The sales date and prices have not been announced.

Size Doesn't Matter?

2012-10-27T21:03:00.001-07:00

With the launch of the latest craze in town, the iPad Mini, who is to say small, is not desirable or that bigger is always better? The iPad Mini is believed to dominate the 7” tablet market and will be expected to replace up to 25% of the current 9.7” iPad users.

Can we say the same for houses? This is an important question that we Singaporean need to ask ourselves. Inevitably, due to land scarcity, the reduction in floor areas of newer housing has reduced. One good example is how a HDB 4A model has shrunk from 103sqm in year 2002 to as small as 85sqm (or smaller) today. Maybe, it is not so much of how much space we need, but how effectively or creatively we can manage our living area (See “How to live in a shoebox apartment?” Here, we are going to explore some interesting (weird?) concepts which might redefine our perspective towards size of a home, and accept the future of smaller housing.

Introducing the Shoebox Mini

In Warsaw, Poland, we see the world’s thinnest house by Architect Jakub Szczesny of the Polish firm Centrala. It is located in a 5 foot by 2 feet alley (converging to 50 inches at the end) between two buildings but it houses all the necessary furniture and fitting such as a “nearly double-size” bed, a toilet, a “bean bag sofa” and even dining and study tables! Total floor space is about 46 square feet (4.27 square meter). Also, this is a duplex, with desirable floor to ceiling height.

But is this truly liveable? Technically in accordance to Poland’s housing regulations, this is too small to be considered a residential dwelling. Well, I would say it is very much dependent on individual, and in this case, the maximum is TWO individuals. Maybe the initial general reaction is that you must be crazy enough to be able to live in such a house, but what if this is the norm for the future? Also, if this were to be located in the Orchard or CBD area, and is priced at about $3000psf, would you still turn this away? Even at the same dollar per square feet, the next design will definitely be a catch.

Coming Soon: The Shoebox Ultra Mini

Imaging a world, sometime in the far away future whereby the human population has exploded to 2000 billion (present population is estimated to be about 7 billion), where will we stay? Or should I ask:”How do live?” Van Bo Le-Metnzel of Hartz IV Möbel might just have the solution - The One Square Meter House (This should be the world’s smallest house).

Being mobile (wheels attached), this house concept is designed for you to be able to choose your location of stay, your window view and even your neighbours. Although it doesn’t come with the toilet facility or a king size bed, even at a whopping $5000psf, this will only set you back at $53,000. Where in Singapore can you get a house for such an attractive price? However, based on initial trial prices, per night rental for the “one sqm house” is about $1.63, which means investors beware.

So does size matters?

What will be next – the Shoebox Mega Mini measuring One-Square-Feet and it comes fully furnished? Although these are currently still concepts, we are not saying that they will not turn into practical reality. My advice is to keep an open mind and be ready to embrace weirder and more abstract designs for houses in the coming years ahead. Who says shoebox units are small?

Extracted from:

1. http://sg.news.yahoo.com/blogs/spaces/story-behind-within-world-thinnest-building-210352941.html
2. http://inhabitat.com/the-one-sqm-house-that-is-taking-over-the-world/

Investment Opportunities at the Transforming Farrer Park Enclave

2012-10-22T19:24:00.000-07:00

One of Singapore’s most exciting areas gazetted for future development by the Urban Redevelopment Authority. Farrer Park combines the best of both worlds in one location, with the historic Little India district on one side and the vibrant Bras Basah-Bugis arts and entertainment precinct on the other. Quaint and charming arts houses, boutique hotels and new F&B establishments that are sprouting to life add much vitality and variety to the area.

Shop houses along Serangoon and Jalan Besar offer some of the city’s best local fare, while the 24-hour Mustafa Centre and eco-friendly City Square Mall draw crowds with their offer of a unique retail experience.

The transformation of Farrer Park has taken shape over the past few years with the successful completion of the Farrer Park MRT Station to Tekka Market’s remarkable facelift. At the same time, heritage landmarks are lovingly preserved, while modern infrastructure continues to boost the area’s accessibility and development potential.

In addition, Connexion at Farrer Park will be one of the world’s first integrated healthcare and hospitality complexes. Comprising a specialist medical centre with 189 consultation suites, a private tertiary hospital, a luxury hotel equipped with state-of-the-art conference and wellness facilities and a ground floor lifestyle retail zone, Connexion (built directly above Farrer Park MRT Station) will strengthen and support Singapore’s position as Asia’s leading medical hub when it is completed in 2013.

Opportunities for Property Investors

In tandem with the general increase in properties prices across Singapore, the private property prices in the Farrer Park precinct (District 8) has also risen over the past years with the completion of City Square Mall. Labeled as a “quiet achiever” by property experts and consultants, City-fringe homes tend to be overshadowed by those in prime and mass-market areas.

Notably, in recent years, the demand of show-box apartments (which refer to less than 500 square feet) within the Farrer Park precinct has gained popularity due to its proximity to Orchard, City Hall and CDB area.

TARGET: One-Bedroom Apartments at the Farrer Park Precinct

City-fringe one-bedroom apartments at the Farrer Park precinct are highly sought after partly for their accessibility, public transport links and lifestyle amenities. Investors also find it easy to get expat tenants as their accommodation budgets scale down.

From an investment perspective, the price level for a one-bedroom residential apartment at Farrer Park ranges from S$600,000 to S$900,000, thus offering good affordability for property investors.

More importantly, rental prices of Farrer Park one-bedroom residential properties have increased with the ongoing transformation of the heritage precinct.

As seen in the following graph, indicative rentals for condominiums nearby the Farrer Park MRT station range from S$3.84 psf to S$4.67 psf. For one-bedroom units, rental price per square foot are generally higher due to its compact size.

Using the latest freehold development project, Le Somme (located next to City Square Mall), in the area for reference, the approximate rental yield is as follows:

Price of a one-bedroom apartment: S$750,000

Size: 560 sq ft

Expected Rental per month: S$5.35 psf or approximately S$3,000 per month

Expected Rental Yield: 4.8%

Driven by its proximity to city and amenities, one-bedroom apartments within Farrer Park area will likely to see potential upside and good rental yields with its affordability and growing popularity.

To find out more details on the latest freehold development project in this area, please visit: www.le-somme.com

The information contained herein does not constitute or form any part of any offer for sale or subscription of, or solicitation, recommendation or invitation for or in relation to any offer to buy properties nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever.

All the information contained herein has not been independently verified. No representation or warranty, express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by the writer or any of their affiliates, advisers or representatives as to the fairness, accuracy, completeness or correctness of, this information or any other written or oral information made available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed. Any prospective property purchaser should make its own investigation and all information provided.

The information contains certain forward looking statements and forward-looking financial information. Such statements and financial information are based on certain assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from those expressed in these forward looking statements. Predictions, projections or forecasts of the economy or economic trends of the markets are not indicative of the future or likely performance of the properties listed herein. The inclusion of such statements and information should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by any other person, or that the forecast results will or are likely to be achieved. Actual future performance could differ materially from these forward-looking statements and information.

Bubbles Bubbles, but are they Trouble?

2012-10-17T23:49:00.003-07:00

Many talks about the “property bubble” nowadays and that the inevitable will be coming soon to Singapore’s real estate market. But, if you were to consider this in context, what are the basis for such hype? Was it that the property prices are launching ahead despite the government numerous control measures? Or was it that the papers are always reporting the fantastic sales for new launches?

Why are the property prices ever increasing for almost three years straight on? When will the train loses it lustre? If you are in touch with the news, you would have notice that since the 1^st quarter of 2012, monthly property price index has been slowing down, and seems to be reaching a plateau. Objectively, this is a good sign for the buyers as this indicates a signal of the price stabilising. But if you were to take a step back, the more important question for buyers will be, “Is it a good time to buy?” I might not be entirely right, but dependent on the individual’s needs, wants and also the financial status, this could be a good time to consider getting that home that you have planned for (given the fact that most buyers had waited for almost a year for the price to drop – no thanks to financial reports at the start of 2012 forecasting the downturn of the market by at least 20%).

Why do I say that? Given the current global issues, we can safely say the world is pretty messed up – Europe is clearing up their backyard matters and America sweeping their dust under the mat. Of no surprise, Singapore can be considered as one of the more stable and “hassle-free” country right now (Actually, we could have been like this for a long time – do a Google check on this). And comparing the various financial tools (equity, FOREX, bonds etc) available, despite this recent bubble-bubble hype, property seems to be the most stable and might be the most profitable of the batch. Less the disadvantage of ill-liquidity, which other platform is able to help secure a growth rate better than your CPF interest rate of 2.5% annually? The key word here is “secure.” Furthermore, in the South East Asia region, the only two property market presently stables enough to consider your dollars and cents would have to be Singapore and Hong Kong. See the government interventions as positive and active interactions; logically, if the market does not have potential, such events would not have happened. The government understands that the property market forms part of the backbone the economy growth and its’ intervention is necessarily to SLOW DOWN (not stop or reduce) the growth, so as to pro-long the valuable returns to the country.

There have also been forecasts with regard to the expected declining volume of property transaction in Singapore till end of year – but does this mean that the prices will fall? To the common minded, this is usually the first thought when the topic is raised. However, if you were to take a closer, you might realise that FALLING VOLUME DOES NOT necessarily equate to the fall in prices. An instant would be the continued land sales by the government for residential development, and a good example would be the site next to Sky Habitat in Bishan. Sky Habitat is currently going for an average of $1700psf; what do you think the new site will cost? If nothing goes wrong, the site at Bishan would be sold at a price higher than that for Sky Habitat, and subsequently this would mean apartments going for higher than an average of $1700psf. If not, why would any developer buy the land if no basic profit is insight?

I am not saying that the market will never fall, but that the inevitable correction would be minimal. If you are an investor, I would recommend continuing to observe the market and be aware of the trends. Watch out for tell tale signs of the market picking up steam again when the current sentiment sets in. But never let history repeats – don’t over-wait till the next government measure. The most recent one proved to be one that affected investors more than others. And if you are buying for own stay, now may be a time to purchase your unit of choice, as this could be the new low in the coming years. Even with the correction insight, it’s effect would be expected to run out by the time you are selling the property without a penalty

How to live Comfortably in a Shoebox Apartment?

2012-07-04T01:23:00.000-07:00

Before we start off, let’s try to modify the terminology for “shoebox” apartments to avoid adverse priming effects. But I am not suggesting that we deny the fact that “shoebox” apartments, which are definitely cosy for two or less, can be overwhelming for family of five. Some good terms that I am going to refer to in this article are Integrated Loft, Versatile Apartment or even Mirco Loft (the last term has been widely used in the past to describe apartments lesser than 500sqft).

Now that you officially purchased your very own first 500sqft home, it’s time to indulge in designing and creating your space – this is a more fun and interesting way than just to describe the renovation process. Frankly, one major advantage of a shoebox unit is that since the space is relatively modest, remodelling of the unit would not burn a hole in your pocket – under normal circumstances. And the best take away is lesser housework for all (personally, housework are painful but necessary chore).

The chief (and important) characteristic of human beings is adaptability. Given any environment, we can, and will adapt. In some situation, more often than not, we even conquer. This is similar to our living environment – give us a 500sqft space and we will shift the settings to fit our everyday needs. Before you start sketching, here are two important tips that you might want to consider.

Hide & Seek

Since it is physically not possible for us to have a separate living, dining, bedroom etc in the Versatile Apartment, one solution is to have them “appear” at any one time when in use– Hong Kong and Japanese style of living.

One revolutionary design was the “Domestic Transformer” by Architect Gary Chang, whereby a 344sqft Hong Kong apartment can magically be converted to 24 different rooms, each of their unique function. The take away here is to be able to create a functional living environment, catered to your (or with your partner) daily needs, and not to rare occasions, such as your group of friends of ten visiting.

If you find this too hard to believe, you can always keep it simple with the clean and fresh look by BAKOKO (Japan) for a 400sqft apartment (Click on link for more pictorial illustrations). Concept is once again maximising functionality of every inch of space, with our next important tip – creating storage space.

Extracted from http://www.digsdigs.com/small-apartment-design-in-modern-and-minimal-style-by-bakoko

Creating Storage

If you are single, isn’t it a great feeling to be able to stay in an open concept apartment, with a gigantic photo of the London Subway System across the wall, and where the apartment itself shouts your inner creativity and free spirit? But think again, where will your vacuum cleaner and mop go? What is frequently missing in designs and photos of open concept apartments are storage areas. As tempting as the open concept might sound, but once you moved in, the sight of your detergent bottle sleeping with your pot and pans, on the floor beside the sink may not be what you have in mind in the first place.

So given our situation of having a more delicate space area to design, how can we prevent home-design malfunction from happening? The answer lies in areas not within sight. Stow away with “secret compartments” at your feet or top of your head, which are usually the least explored space in any homes. Architects Marc Baillargeon and JulieNabucet converted this 130sqft space (Click on link for more pictorial illustrations) into a fully functionally and neat apartment, which was once the master bedroom of a bigger apartment in Paris.

Extracted from http://www.wired.com/design/2012/05/paris-apartment/?pid=351&viewall=true

Imagine if a space of 130sqft can be optimised to this incredible stage, how would your 500sqft apartment shine?

If your unit has a floor to ceiling height of at least 3.2m, why not consider getting yourself a mini loft to enhance your space? This will definitely help if you are not the type who likes to make their bed in the morning. What KSWA did for this low-square footage apartment in New York City not only helped increase their storage area, but almost enhanced privacy within each individual section of the unit.

Extracted from

http://dornob.com/loft-bed-turns-single-floor-studio-to-two-level-apartment/

In Conclusion…

Living in a Versatile Apartment, though not that straightforward, is definitely fun and challenging. Be inspired and create space for yourself. You will be surprise at the end of the day how adaptive you can be. Lastly, remember this three golden words before you start building:

“Measure Measure Measure”

Why live in a shoebox unit?

2012-06-06T18:35:00.000-07:00

Before we attempt to answer the ‘why,’ let us start with the ‘what?’ - What is a shoebox unit? It is technically any apartment of size that is 500sqft or smaller. Some called them the “mickey mouse,” but many just call them rooms instead of apartment. These units’ popularity sprung up within this decade, following closely like our neighbouring countries such Hong Kong and Japan, whereby land availability for residential purposes are scarce, especially so nearer to city areas. In Singapore, we are basically city end to end.

Typical Profile of a Shoebox Unit Occupant

Can you actually compact a house into a home? Furthermore, some of these miniature housing comes attached with a bomb shelter and huge balcony, making the “liveable” spaces even more challenging. Strictly speaking, shoebox units are not for all. You would not expect a family of five living together in one right? Shoebox units are generally more suitable for singles and couples (without kids), whereby the management of space is much more flexible. Try putting a baby into the equation and you might need more than one shoebox unit for that combination.

Checklist for home buyers		Yes	No
1	Do you intend to stay alone in the unit?		X
2	If no for Qn 1, will there be more than 2 person staying in unit?		X
3	If yes for Qn 3, do you have children?	N.A.
4	Is location an important consideration?	X
5	Is size an important consideration?		X
6	Is budget an important consideration?	X
7	If yes for Qn 6, Do you intend to rent if buying is not an option?		X

This is a typical profile of a potential buyer for a shoebox unit, and usually they fall within the age group of 24 – 35 years of old. Of course there are other combinations, but I believed this is one of the better profiling, except if you are referring to a bachelor.

Location Factor

One of the main reasons why shoebox units remain attractive is their location. Many of them are actually situated in CBD, down town or city fringes, where they provide the occupant(s) the convenience of travelling to work – especially so in reducing the hassle of traffic in the mornings to work. To many young ambitious working professionals, time equates money, and this factor can be seen as need.

“Why not rent?” If given a choice and correct market scenario, I would have to say that to own is much better then to pay the mortgages for someone else. Of course if the down payment of at least 20% is not an issue.

Budget Factor

Theoretically, who would not want stay in a bigger house, such as a 5 bedrooms duplex penthouse in the heart of the CBD, whereby your workplace is just located in the next building? I know I would. This comes to our other important factor – Budget. Yes, the ‘B’ word that many would hate to face when buying a property. In the real world, there are people who can only buy ONE property and that is to for own stay. If time and/or location are critical factors in their consideration, with limited budget, choice may be just an illusion. We have to remember, not all of us can own a property without wiping clean all cash flow and CPF.

Opportunity Factor

It is rather safe to say that the peak, and probably most enjoyable stage of our lifespan is between 25-35 years old whereby you are most likely be working in the managerial level, have more free time and higher spending capability. Before that, though it is more carefree your spending power remains a major constraint; And after this stage, though financially more stable, commitment level is definitely higher.

Think about this: If you do not stay in a studio or one bedroom apartment during this stage, whereby you can design and allow your creativity to flow, when can you ever do it in the future, assuming the normal course of life stages? (Yes – I am talking about living your 20s in full colours!) Remember, you are only 25 or 30 years old once.

Leaving Note

On the hind side, we must also recognize that there is also the dark side for shoebox units, such as incredible dollar per square foot as compared to bigger sized units, resale difficulties, rental cap etc. These are real and practical reasons as well. However, this article is focused more towards buyers-turned-occupiers of shoebox units rather than investors of shoebox units, and that one should always weigh all considerations before purchasing a property.

Most of the time, you will not be able to get the best of all things in life; it is just about balancing the constraints, the needs and the wants. Shoebox units are not all bad as they can be the alternate avenue and solution for those with the specific requirements.

Something interesting: http://www.propertyguru.com.sg/en/property-management-news/2012/6/33281/Nothing%20‘inhuman'%20about%20shoebox%20homes:%20Oxley%20boss?utm_source=emailer-italerts&utm_medium=edm&utm_campaign=news-daily

The Evolution of a Super Real Estate Salesperson (Part One)

2011-07-13T03:20:00.000-07:00

Things are definitely different in the industry since the start of 2011. Given the intervention of CEA, the barrier to entry into the real estate market has been greatly increased. On surface level, this was definitely a good move by the government to clean up the many “acts” but on the other hand, this has caused more turbulence in the market, with the most obvious being getting the real estate practicing licence. Gone are the days whereby anyone, and I do meant anyone coming to age, can just pick up an application form and join the industry as a real estate salesperson, with or without relevant training.

But what is more subliminal about this standardization move of the government is how real estate salespeople have to behave and act in the days to come. Given the convenience of the market now, such as multiple online property websites and resources, and also the transparency of real estate salespeople (checking up on salespeople can be easily done via http://www.cea.gov.sg/cea/app/newimplpublicregister/publicregister.jspa), the ultimate impact of all these adjustments will be the evolution of the real estate salespeople.

Many might suggest that what I had mentioned is ridiculous, but I believe those in the market would have felt the aftershock by now. Take a look at the upcoming question and take a moment to think before you continue to read this article.

“Why do you need a real estate salesperson for in this current market?”

When they first standardized the insurance industry, many panicked and many were forced to leave the industry. Some had no choice due to ever growing requirements, while others left because they do not see any light at the end of the tunnel. However, the industry still remains attractive today to many insurance salespeople because they know that they are still the indispensible force that drives the industry. Although there are many online sites and other methods that allow you to get the insurance policy or coverage required without ever meeting a salesperson, nothing feels more right and convenient than getting an insurance salesperson to go through the details of the policies and completing tedious paperwork on your behalf. And the best part is that no commission is paid by you (not directly from you, of course).

Is the real estate industry like our counterpart industry? Will the real estate industry progress on without us? And most importantly, will real estate salespeople ever become obsolete?

What can we expect to see after 1Q11?

2011-04-27T07:39:00.000-07:00

Property forecast has been moving in the direction as we had expected in the earlier article of the year, with not too much of movement, constant growth and no unexpected boom. Private property prices slowed to a 2.2% (2.7% 4Q11) and HDB property prices to 1.6% (2.5% 4Q11) in 1Q11. The main question after looking at this figure is that will this trend continues? And if so, will this comes to a stage such that we are no longer looking at positive growth? Before we touch on this important question, let us take in some significant figures for 1Q11.

The transaction of private properties for Core Central Region reduces from 2.1% in 4Q11 to 1.1% in 1Q11 but we see better transaction for Central and Fringe region improving to 2.0% and 3.1% from 1.9% and 2.1% in 4Q11. Could this due to the fact that Core Central Region prices are reaching a new plateau and thus making outer regions to be more attractive?

For resale HDB buyers, the good news is that the overall Cash Over Valuation (COV) has dropped further to $21k from $23k in 4Q11. With not much change in the volume (6228 in 1Q11 and 6454 in 4Q11), we can see that the buyers are already getting the feel of the dropping COV.

With these data, we can now revert back to the original question of the future trending. Yes, we will be expecting this slower growth as we progress through the next quarter but once again, we do not expect any drastic boom or slum if all goes well. For the part of are we expecting a negative trend instead, the forecast is once again a positive “NO.” One recommendation for buyers and sellers based on current forecast is that if there is a NEED to buy or sell, it will not make any significant differences in savings or profit if it is going to be within the next quarter.

The psychology of the buyer

2011-01-20T00:21:00.000-08:00

Buyers are our missing links to the completion of any real estate deal and they played are an important part of any realtors’ career. Since they are of such importance in our career, it will definitely help us all to learn how they “tick.” Before you get any further reading this post, please keep in mind that this paper is to help realtors better understand the psych of the buyer and is not providing any methods to be employed to create a fictional relationship to lure buyers to jump onto the wagon instead of real commitment.

I believe many of us are familiar with the term “buyer’s remorse” and this is what we should be preventing your clients from experiencing. Buying a property is usually the biggest investment among most Singaporean and with the recent cooling measures in place, and this make our role as realtor more important – to ensure that our clients purchase the correct property, be it for investment or own stay. In short, we are out to make buyers happy about their purchase.

The most crucial take-away from this article will be “people do not like to be sold; but they like to buy.” Simply put, free will buying. Many might refute by saying that sometimes the buyers do not know what they want and if they were to continue to window shop, this opportunity might not be there by the time they make their decision. We, as the realtor, should intervene when necessary to make sure the opportunity is not lost and our buyers will not regret in the future. As logical as this may sounds, a large portion of this argument actually falls on the realtor’s notion, which is to close the deal as soon as possible and move on. As the present market buyers are mostly as well informed as us, thanks to the ease of information on the internet and many other sources, what gives us the rights to decide? Let’s say that we are right and the buyer had missed the boat, will he be a happy buyer when he was compelled to buy at that instance?

To clarify the situation, I am not saying that we should allow all our buyers to start window shop, take their time for decision and so on. Remember, we all worked on commission and if our role is simply bringing the buyer to the properties without any recommendations, we are not exactly that useful. The question is how to make the potential buyer become a happy buyer? And the difficult task is how to balance a salesperson’s urge to just close the deal with the “happy buyer” concept so that we know we can sleep better at night?

Needs versus wants – The essential question. Without the knowledge of this about your buyer, you cannot really start the search or execute the necessary recommendations. You would have to agree that a newlywed couple looking for their dream home will have to be treated very much different from a businessman with the intention to buy his 3rd property for investment. This is the fundamental question that you should place on your buyers during the initial phase. With this answered, further questions such as urgency, area of search, size of unit and so on can be better put into context. This will help create your layers of empathy as you progress.

We all buy from someone we like. We all share this similar experience whereby despite the fact that you wanted a certain product, but as the salesperson was not exactly someone you like (maybe because of the bad attitude he had shown or his messed up outlook) you did not buy the product from him but later purchase the similar product from someone more pleasant to your eyes just a few units down the street. Sounds familiar? This is because we all want to buy from someone we like – it is that simple. Now the question is how to we make that connection?

Be interested in your buyer’s needs/wants. You need to be interested in your buyer, wholesale. Show to him that you care about his needs/wants and is willing to listen and thereafter hunt down his ideal unit for him. The fact that most of the buyers can in fact easily tell at an instant whether you are interested in his requirements and constraints make this even tougher. Thus, the advice is to be genuine, listen more and talk less. The old school method of hard selling is gradually losing her stand in today’s time. Coupled with vast amount of information easily available on the internet, this makes no one or products irreplaceable.

Be a professional realtor. Simple as this may sounds, many do not know what this entice. This bring us to our most valuable point – be interested in what you do. How many a times do you find yourself not in line with the latest property development only to find yourself saying “I will find out more” or “I do not know this” throughout a short 20 minutes viewing session with the buyer? If you are not even interested in your own field, how can the buyer trust your recommendations and advice?

Try some of these advices on your clients. You will be surprised how such simple common knowledge can actually make an impact. Remember, sometimes it is not about thinking outside the box, it’s about what is in the box – in this case is what is in your box. Always fall back on fundamentals and should more or less be on track.

Seeing 2011

2010-12-29T22:56:00.000-08:00

What has 2010 been for the Singapore Residential Property Market?

2010 has been the period whereby some important policies had been introduced to the Singapore’s property market. The most significant being measures to curb the property fever. Known to many, Singapore’s overall property market has always been following Hong Kong closely. Similar to Hong Kong, Singapore is also seen as one of the best property investments in Asia with good capital appreciation potential in 2011 of about 10-20%. In 2010, both government bodies had introduced various policy to prevent the any bubbles forming, such as the 15% stamp duty fee for any properties sold within 6 months of purchase and a 50% down payment for properties S$2 millions and above in Hong Kong. And in Singapore, similar effective measures are taken, such as reducing the maximum bank loan from 80% to 70% for properties purchased after the first and also the implementation of up to 3% stamp duty for properties sold within 1 year of purchase.

Despite the new cooling measures setting in, the market seems to had only slightly shifted. With still many strong buys, especially foreigners and Permanent Residences snapping up one in three private properties in November 2010 and at new price peak. This is where the second most significant event for Singapore’s property market steps in – the regulation of the property agencies. A new body, Council of Estate Agencies (CEA), has been set up to regulate property brokers in Singapore during the second half of 2010 to ensure that all brokers to be licensed by 2011. This is very much similar to the insurance market some years back, which provides more transparency. This is definitely a sound measure as the barrier to entry is now greater and chances of brokers committing fraud will be expected to be much lower as their licences are at stake, with a fairer play in the market.

Hold on tight, 2011 is just by the corner.

The number one question that comes to investors will always be “How will the market be like react next?”

The property market goes through a continuous series of highs and low, with occasional unforeseen plunges or hike, like the financial crisis in 2008. Many often talk about how some periods are “perfect” opportunity to either sell or buy – this is an urban myth. There will never be a “perfect” time. Buying at the bottom and selling at the peak of the market is often by chance. But this does not mean that one should start buying or selling without considerations. Every piece of information is a guide and so is this article.

Every market move through a standard form of pattern, and chances are that they will replicate history. For 2011, it is advisable to start monitoring the happenings in Hong Kong. With the new measures and prices, real estate might be slowly losing its edge to more liquid assets, such as equities. Return on investment, though is higher for the estate segment, takes relative longer period to yield, especially the high end markets. This will be particularly obvious during 1Q 2011 when fund managers and equities brokers return from their year-end extended breaks.

However, with the current interest rates at all times low, it is still attractive to grab a piece of the pie, especially non-TOP projects. This phenomenon tops the property market towards the end of 2010 with attention mainly at new launches. How will this affect the entire market? Not so much for 1H 2011 but more towards 2H 2011, with as much as 150% more projects expected to be TOP in year 2012 and 2013. This sudden surge of supply as compared to 2010 and 2011 will inevitability slide the buying fever.

Are we looking at the bubble bursting? Odds are low. To put in proper terms, there is no bubble to start off. While many see today’s property market as start of a bubble, they are overly focused on the speculative fragment. The property market can be divided into two main sectors – the home-owners, people who buys for the purpose of own stay, and investors. And within the investors, there are the long terms, short terms, capital-focused and yield-focused investors. In the event that the buying fever was to slide as predicted but if the interest rate remains attractive for 2011 as it is for 2009 or 2010, the impact might still be cushioned with investors still having a reasonable holding power. This will leave us with a portion of the market that will be affected – the speculators which make up roughly 15% of the entire Singapore market.

Year 2011 will be an exciting year with some minor corrections expected towards the latter half of the year. With the cooling measures fully set in, we can expect to see more stable transaction volume and prices with speculators reducing their holdings in the market.