Property Market Sentiments

[Tiggerbee]

Crowds do not mean people are buying.

Precisely. There was a big crowd at the Triniliq launch but only 120 units (out of 200 launched) were sold since Mar 2013. There are 755 units in this project.

[koh_52]

Yes, the location is good. They are going average at $1300 to $1450 PSF.
Cheaper than the first development Sky Habitat.

[Contrarian]

> Crowds do not mean people are buying.

I went to see the showflat. It's near my hdb home.

The agent who attended to me. She queued for 4 rounds and got 4 cheques on a single Sunday.

My remiser told me Oxley Holdings sold 99% of the west coast apartment after reducing price by 10%...

[level13]

I saw many external agents trying to garner buyers who are keen in sky vue from the nearby shopping center.

Can someone enlighten me on this:
Why cant an interested buyer go straight to apply for a unit through the Cap land staff in the showroom? Why need to get external agents to handle the process?
And whats the gain for external agents? The usual 1% commission?

[Tiggerbee]

I saw many external agents trying to garner buyers who are keen in sky vue from the nearby shopping center.

Can someone enlighten me on this:
Why cant an interested buyer go straight to apply for a unit through the Cap land staff in the showroom? Why need to get external agents to handle the process?
And whats the gain for external agents? The usual 1% commission?

You need to register your interest as a VVIP preview guest to be eligible for the VVIP preview. It's a marketing gimmick by the marketing agent to get interested buyers to show up on the pre launch day. Only the appointed marketing agent are stationed at the show flat. These days, property agents are so hard up for sales that they will source for interested buyers even though they do not belong to the appointed marketing agent. Developers will still welcome agents from other companies as long as they can bring in buyers.

Typically, the comm earn for launches at show flat varies, which is typically about 0.5%.

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Read this from Macquarie Securities research report :

Secondary market remained tepid as only 411 resale units (-30% MoM, -
71% YoY) were transacted in Aug 13, continuing the trend in Jul 13 (-13%
MoM, -52% YoY). This suggests more people are buying properties for
potential capital value upside, than for immediate occupation/rental purposes.

What the above statement meant is that serious buyers for immediate occupation/rental purposes will go to the secondary market. The number of buyers requiring immediate occupation of unit, which I deem as the real demand, is on the decline on a monthly basis.

Secondary market transaction volume is a better indicator of real demand. The primary market is currently mostly comprised of speculative demand. I hope we do not end up like Korea where the property market peaked in 2007 and has yet to recover up till today.

[smallcaps]

Tree House latest caveat shows a significant drop. Hope its for real this time...

1.1 mil for 3 bedder 23rd floor pool facing

[NTL]

This is a lose money deal. The seller bought the unit in 31 Oct 2012. Even if the seller don't pay any ABSD, he also need to pay 3% buyer stamp duty, and 16% SSD. Add in the 1% agent fees, he immediately lost close to 20%. His $1.1M is left with $880k, vs his purchase price of around $949k.

Are people desperate enough to exit the market at a loss now?

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By the way, pass by the development last night. It is almost pitch dark. Not many people move in yet...

[smallcaps]

Ya quite strange hor. Juz need to wait a while more then less 4% ssd to pay. I heard the owners still collecting keys slowly.

This is a lose money deal. The seller bought the unit in 31 Oct 2012. Even if the seller don't pay any ABSD, he also need to pay 3% buyer stamp duty, and 16% SSD. Add in the 1% agent fees, he immediately lost close to 20%. His $1.1M is left with $880k, vs his purchase price of around $949k.

Are people desperate enough to exit the market at a loss now?

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By the way, pass by the development last night. It is almost pitch dark. Not many people move in yet...

[VIChris]

This is a lose money deal. The seller bought the unit in 31 Oct 2012. Even if the seller don't pay any ABSD, he also need to pay 3% buyer stamp duty, and 16% SSD. Add in the 1% agent fees, he immediately lost close to 20%. His $1.1M is left with $880k, vs his purchase price of around $949k.

Are people desperate enough to exit the market at a loss now?

---

By the way, pass by the development last night. It is almost pitch dark. Not many people move in yet...

Let the market peaked slowly and when equity & economy crash within a few years time, let the property market crash or have a very deep correction. We will have our fair share of buying.

I would rather be a contrarian. When everyone sell, I will buy with strong fundamental.

[LionFlyer]

I just visited Sky Vue after church. Seems like a lot of people. Was quote almost 1.8k psf for a 495 sqft 1 bedder on the 29 floor. The rest of the 1 bedders were going for 900k-999k range.

If we use Bishan 8 as a proxy, the psf is around 1.2k. Kinda crazy pricing IMO. The lady keep justifying the price as due to the location. Anyway I had just been working overseas and the 1 bedder reminds me so much of my hotel room!