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15,000 units sold in 2013. Only 50% sold in 2014? Bad.

Yes, it’s going to be a very slow year where properties are concerned, for the primary properties in Singapore. From a total of 14,984 units in 2013, it is predicted that the number would only be 75,00 – 7,900 for 2014. Most developers would not want to launch now as year end is not a good time to launch. This is based on past experience and even when I was in the industry, everyone told me the same thing. not just property but also cars too. For the stock market however, eventhough the volumes may be lower but it does seem that stock prices for some companies are higher towards the end of the year. Something like, ‘ending the year with a bang’ kind of stock price. 😛
Nevertheless, this situation may not persist in 2015. This is because according to Alice Tan, Director and Head of Research at Knight Frank Singapore, there could be more launches at the beginning of 2015 and before Chinese New Year. This mirrors that of Penag. Most the property launches were done before and during Chinese New Year because this is the time when families can view properties together and make a decision there and then if they are interested to proceed. Thus, I think this may not be applicable to just Singapore but many other markets where people tend to come home, during the festive seasons. This is especially true during Chinese New Year. Some believe it’s auspicious to make good investment decisions because it brings ‘ONG’ or luck for the remaining of the year. I am not so superstitious but as long as it’s supposed to be good, I believe it! Haha.
According to Ong Teck Hui of Research and Consultancy in JLL, 2014 is set to be the worst year ever since 2008. What happened in 2008? Well, that’s the crisis year brought about by the world’s largest economy. One word? Greed. Of course, no matter in which market we look today, when the launch is at the prices which seem attractive and the location is acceptable, it’s still in demand. Just look at the few recent launches in Singapore. take up has been very encouraging. Of course, it helps tremendously if the developer bought the land much earlier and is also willing to take a lower margin. In this part of the world, the margins are still considered very healthy. In many other developed property markets, the typical profit margin is already in single digits due to the extremely high land prices etc. What we continuously need is the awareness from both sides; the developers and the buyers that demand and supply is very much alive and no side should continuously take advantage of the other. Agree? Happy investing.
written on 26 Nov 2014
Next suggested article: Singapore property, prices continuously declining into 2015

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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