Property News & Market Trends

Merry X'mas & a joyous New Year!

Seasons greetings to all! What a year we had in 2007!

It's been a long time since I wrote and it's gooood to be back! Interestingly enough, I should end this chapter in 2007 and begin a new series for 2008.

2007 had been both an exciting yet challenging year for the real estate industry. The first 7 months were exceptional! Agents were transacting furiously. Buyers were snapping up like there is no tomorrow. Sellers were asking for sky-high prices, only to be topped by higher record prices! The market was similar to that in 1996/7, when speculators stormed the market and drive prices beyond fundamentals. Many units were transacted without viewings. When such occurances happened, it's time to bolt. Those who remembered 1996, scrammed in time.

The drastic drop in transactions occurred in the 2nd week of July. Speculators dumped their Options. Buyers stayed by the sidelines. The sub-prime news broke out, after 6 months of warning signs in US. And the ghost month really haunted the buyers away. The last 5 months were quite gruelling for many real estate agents. Unfortunately, most sellers didn't realised and were carried away with news of record prices after one another.

The prime market stagnates. The sub-urban rise for a short while and tapered off. The HDB begins its climb - a little too fast. But way behind time. Valuations increased as valuers pondered the market trend. Cash above valuations increased even faster. Not a great picture to paint. Any rises too fast do not last. That's a huge worry for all of us.

2008 holds much promises but does not lack risks. I'm not a fortune-teller, neither a soothsayer. But for the optimists, March to June would be a good time to sell and looks set to increased transactions. As usual, January & Feburary are seasonal lows for transactions, so buyers can move in.

After June, nobody would dare to predict where prices will head. As much as the US government would like to calm the effects of the sub-prime woes, many analysts doubt it will hold for long. After the election, depending on the new government's direction, somebody will pay for it. Even if our government felt the impact won't be as bad, just be prudent. If the economy in US is affected, China will also have a substantial impact on their export market. The good thing is, the Olympics in China will cushion this impact. In Singapore, tourism will take a boost from the F1 economy.

So, the slow economy in USwill not have a strong & sudden impact on us yet. However, prudence is a must. Don't leverage beyond your limits.

Overall, the property market will hold. HDB will be the star for 2008 and hopefully no sudden rise in prices will occur. Or the good times won't last. Cheers! D Bingo, out!

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