ALL PROPERTY OWNERS

Are we looming over a downturn soon? Is it a seller's or buyer's market today?

For those who had bought a property before the onset of Covid or during the year of the pandemic, your property should be sitting on handsome profits.

The average Capital Gains that these property owners are experiencing over the span of 3 years is about 18%. However, as we know that the economy has cycles, similarly, property prices also move in cycles.

LET'S DIVE INTO THIS REAL CASE STUDY

Let's take a look at this HDB block 645 in Punggol Central. After the flats fulfilled their MOP, the owners in the block started selling and prices peaked in 2012, with transactions reaching up to $592,000 in Dec 2012.

Thereafter, the volume of transactions slowed, to the point that there were no transactions for 2 whole years. The first transaction in 2014 saw an owner deciding to sell his unit at $160k less than of the latest transaction.

It has taken 10 years for a unit in this block to be sold at $600k, which was in Dec 2023.

Was the case similar in the resale condo market?

From the above, we can that in the private resale sector, transactions volumes also slowed.

In the case of The Warren, there were no transactions for almost 3 years. When a transaction did finally occur, it was a higher floor unit that was sold at $128k lower than 3 years earlier.

Seller's Market or Buyer's Market?

In a period of slowing transaction, where we are now at, are we expecting a switch in sentiments from a seller's market to a buyer's market?

Previously, the government increased the Additional Buyer Stamp Duty (ABSD) for foreigners to clamp down demand. At the same time, the government ramped up supply on homes for BTOs and released more land for sale.

On 9 April 2024, the government also announced that we will see nearly 100,000 homes to be ready by 2025.

With All The Supply Coming Into The Market,

How Would It Affect The Resale Prices?

ARE WE LOOKING AT AN OVERSUPPLY SITUATION TODAY?

BACK TO THE CASE STUDY

Let's bring back the HDB seller - Ben for the Punggol flat in the previous example.

In 2012, he caught the right opportunity to sell his HDB flat for $592,000. With his proceeds, he then upgraded to a 4 bedroom condo at $1.3xm in the same vicinity. After holding the property for 4 years, he made a decent amount of profit on his private property.

Would he have been better off if he stayed in his HDB flat for the next 10 years?

In Conclusion

Let's have a look at these 2 case scenarios with 10 years horizon.

In case scenario A, Ben moved from his 5-room HDB to a 4 bedroom condo in the same vicinity while his neighbor, Michelle, stayed put.

Today, Ben is sitting on more than 2.4 times the amount of profits, and has $1.5m worth in his asset value while Michelle experienced losses and opportunity costs by staying put over the entire period.

Having said that, we know that prices for different properties in the same time frame can vary and shift very rapidly, and in a short time. Demand and supply are still the primary forces in driving the market forward or backwards. How should we use the knowledge that we have to navigate the market?

What's more - Covid happened, that brought a surge in property prices in Singapore, wars also contributed to inflation rates & interest rates to what it is now.

What is happening in TODAY's market considering these macro factors?

Today, we are seeing volume of transactions slowing down, and a possible downturn for resale.

Cote D Azur

• 6 transactions in Q3 2023

• 4 transactions in Q4 2023

• 2 transactions in Q1 2024

Clover by the Park

• 6 transactions in Q3 2023

• 8 transactions in Q4 2023

• 2 transactions in Q1 2024

Tampines Trillant

• 16 transactions in Q3 2023

• 7 transactions in Q4 2023

• 5 transactions in Q1 2024

What should you do today in TODAY's context then?

Should you do a wait-and-see approach or should you sell and wait?

Interested to find out more?

MY STRATEGIES AND HOW IT CAN HELP YOU

Knowing the current market situation and How it will affect different people is Essential

As all of us have different needs and objectives,knowledge of the current market situation and the available solutions are essential to determine the best strategy for our housing, financial and retirement needs. What may work for another family, may not necessarily apply to all families, hence, I will listen and understand all your concerns and goals.

After our consultation, I will analyse and use various tools to form the best strategy to achieve your needs and objectives. The customised analysis and strategy will empower you to make the best decision for your family and yourself.

ASSISTED MANY HOMEOWNERS

Generating wealth through properties safely

Over the years, I have assisted many clients on their home buying and investment journeys, using my Signature approach. Clients have generated wealth though their property transactions, which enables them to realise their aspirations and dreams.

Some clients have gone on to upgrade their lifestyle and build their legacy by buying into Landed properties, while some have right-sized their properties, thereby realising their retirement funds and some have purchased investment properties to build on their financial and retirements needs.

GLAD TO BE PART OF THEIR REAL ESTATE JOURNEY

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What My Clients Says

KOH YAn LENG - Vice President, Campus Infrastructure | National University of Singapore

” He was able to get me a good offer on the very first weekend of viewings. The offer that he got was way higher above valuation...Jason had also advised me to quickly invest in another 2 properties. These 2 properties which I have invested had already appreciated much in over S$300K the last 2 years” 

KATHY GOH - Deputy Director of Finance | Woh Hup (Private) Limited

” Hand on heart - Jason is an exceptional agent - one of the rare gems in the industry! He brings warmth, sincerity, and top-class efficiency.... optimize the unit (furnishing, renovation, etc) to get the best possible return on investment.... professionalism, dedication, and expertise are truly unparalleled” 

TAN KOK LIM - Retiree | Multi Property Investor

” Finally one day someone answered my call...Jason got me an offer higher than my target selling price. I was overjoyed! He helped me to close the sale and we realised it was a record selling price for a 3 bedroom unit in the development! He did a very good job for me which exceeded my expectations”