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handsome investor · Joined: 06 Jun 2007 Posts: 1980

THE GLOBAL GURU'S LATEST PROPERTY PREDICTIONS

1. HDB FLATS PRICES WILL START TO FALL AS MANY PEOPLE WILL START TO SELL THEIR FLATS TO LOCK IN THE HIGH HDB PRICES. THEY WILL WAIT TO UPGRADE TO MASS MARKET CONDOS, WHICH ARE EXPECTED TO RISE IN SUPPLY (AND FALL IN PRICES) WITH THE ANNOUNCEMENT OF NEW PRIVATE PROPERTY LAND SUPPLY FOR MASS MARKET CONDOS.

2. PRIME DISTRICT CONDOS PRICES (NOTE: SINGAPORE'S PRIME PROPERTIES ARE GROSSLY UNDERVALUED COMPARED TO HONG KONG'S PRIME PROPERTIES) WILL JUMP SKY HIGH BECAUSE THOSE STAYING IN MASS MARKET CONDOS WILL SELL THEIR MASS MARKET CONDOS (WHOSE PRICES ARE EXPECTED TO FALL BECAUSE OF THE NEW SUPPLY) AND BUY UP PRIME DISTRICT CONDOS. WITH THE OPENING OF THE TWO MEGA INTEGRATED RESORTS, THOUSANDS OF FOREIGNERS WILL BUY UP CHEAP ORCHARD AND DISTRICT 9 AND 10 CONDOS. MANY MULTI MILLIONAIRES FOREIGNERS FROM CHINA AND INDIA WILL BUY UP SINGAPORE'S CHEAP PRIME PROPERTIES.

3. LANDED PROPERTIES PRICES WILL CONTINUE TO RISE AS THERE WILL LIKELY TO BE NO NEW SUPPLY OF LANDED PROPERTY SITES. IN LAND-SCARCE SINGAPORE THERE SHOULD NOT BE ANY NEW LANDED PROPERTY SITES AS IT WILL BE A WASTE OF LAND. MASS MARKET CONDOS OWNERS WILL ALSO SELL THEIR MASS MARKET CONDOS TO BUY LANDED PROPERTIES. SINGAPORE'S LANDED PROPERTIES - WHETHER FREEHOLD OR LEASEHOLD - ARE VERY CHEAP (RELATIVE TO CURRENT AND FUTURE SUPPLY) AND MISPRICED BY THE MARKET.

4. THE ABOVE ARE LIKELY TO HAPPEN OVER THE SHORT TO MID TERM. BUT IN THE LONG TERM (OVER 30 - 50 YEARS), SINGAPORE'S PROPERTY PRICES AS WELL AS GOLD PRICES, WILL BE MUCH, MUCH HIGHER THAN CURRENT PRICES. SO HARD, TANGIBLE ASSETS ARE STILL THE BEST LONG TERM INVESTMENT ASSET CLASS OVER THE VERY LONG TERM.

5. SINGAPORE PROPERTY WILL REMAIN BLUE CHIP PROPERTY OVER THE NEXT 500 YEARS. SINGAPORE WILL BE THE NUMBER 1 GLOBAL FINANCIAL AND BUSINESS HUB. MILLIONS OF PEOPLE ALL OVER THE WORLD WANT TO MIGRATE TO SINGAPORE BECAUSE OF SINGAPORE IS A GREAT PLACE TO LIVE, WORK AND RAISE A FAMILY IN A SAFE, SECURE AND CLEAN ENVIRONMENT.

JUST MY HUMBLE GURU OPINION.

hello_sam · Joined: 04 Aug 2007 Posts: 2665

handsome investor · Joined: 06 Jun 2007 Posts: 1980

THIS WAS MY PREDICTION ON SEPT 9, 2009

http://forum.channelnewsasia.com/viewtopic.php?t=94790&postdays=0&postorder=asc&start=2271

LOOKS LIKE MY PREDICTION IS COMING TRUE ....

THE DOW HAS RISEN AND COMING VERY CLOSE TO MY TARGET ... MAY EVEN BE HIGHER THAN MY TARGET BY YEAR END 2009
THE STI HAS RISEN ... REACHING MY TARGET SOON
THE SHANGHAI INDEX HAS RISEN .... REACHING MY TARGET VERY SOON

THEY ALL WILL REACH MY TARGET!!!

I AM THE BEST INDEED ... THE GLOBAL GURU

MY BIG GREAT CALL NOW ---- BUY S CHIPS!!! (BUT ONLY SELECTED ONES THOUGH - SCRUTINIZE GOVERNANCE AND MANAGEMENT PLEASE)

handsome investor · Joined: 06 Jun 2007 Posts: 1980

DEAR LADIES AND GENTLEMEN

WITNESS THE GREAT GLOBAL HANDSOME INVESTOR STOCKS AND PROPERTY BULL MARKET!!!

I CALL THIS BULL MARKET EARLY THIS YEAR WHEN SO MANY PEOPLE WERE SCARED LIKE HELL ... AND STILL VERY SCARED NOW ... SCARED OF DOUBLE DIP NONSENSE ...

ENJOY THE BULL MARKET!!!

JusticeLim_thegovernor · Joined: 21 Apr 2009 Posts: 176

handsome, I agreed with you that property market is going to be strong going forward...

but some of your predictions will proved very wrong.

This is my predictions:

Luxury market will stay luke warm for the next 1-2 year at least.

HDB market will be even stronger in the next few quaters before slowing down.

In general property market will be good.

handsome investor · Joined: 06 Jun 2007 Posts: 1980

Tan and Tan · Joined: 10 Nov 2009 Posts: 4

Hello Handsome Guru

Next time, please put your messages in smaller print and not in red. It is too kiasu.

I tend to agree with you in your assessment, HDB prices will fall as they are bouyed by foreign migrants. PRs and new easily given citizenships, due to lax immigration rules. Many HDB owners will cash out. Can you imagine, every 4 there are 1 foreigners, soon will be half and 3/5 will be foreigners.

For luxury, it is still very cheap in Singapore not only in prices, in good prime locations, near to IRs, facilities and MRTs. Those in D1, Orchard and Pasir Panjang area (near to Sentosa IR) will be re-rated and prices will reevaluated when compared to a 25% of the prices in NY, London, Tokyo and even HK.

The supply of Luxury homes in prime locations like Marina is so limited.

handsome investor · Joined: 06 Jun 2007 Posts: 1980

Landed homes the way to go

September 24, 2009

Buyers took advantage of lower prices, which have corrected by some 20 to 30% from the peak, and low interest rates to buy their dream landed homes

A HOME these days has become more of a lifestyle statement and status symbol than just a roof over one’s head. And what could answer both aspirations better than a plot of freehold land where the owner can dictate every last detail in a custom built house?

So is it too late to go shopping for a landed property today? Let’s look at how the market has been performing this year.

The landed market has seen a recovery in transactions, with the turning point in March this year. After hitting a low in February, when only 73 units changed hands, March saw 123 units done. This figure then increased by leaps and bounds, from 247 units in May to 331 units in June and 320 in July.

Buyers took advantage of lower prices, which have corrected by some 20 to 30 per cent from the peak, and low interest rates to buy their dream landed homes. With the recovery in volumes, is a price recovery in sight?

Landed home prices had peaked between late 2007 and the first part of 2008 before trending down as the sub-prime debacle hit.

It saw a low between January and March this year but with the recovery of the stock market, sentiment improved and landed home prices began to pick up in April.

Despite the upward trend, prices as at July were still some 11 per cent below the previous peak. The only exception is detached houses, whose prices are close to the 2007 peak. We look at some of the reasons behind the demand for landed homes.

# Landed properties are seen as value for money compared to non- landed units: A landed property, when compared to a condominium in the primary market, appears better value for money. The former has a bigger built-up area, in addition to a car porch and a garden.

If one buys a typical landed terrace house for, say, $1.28 million and spends $300,000 on renovation, the total cost is about $1.6 million. This works out to about $640 per sq ft, assuming a built-up area of 2,500 sq ft. The terrace house is likely to be freehold or with a 999-year tenure, and have four to five bedrooms.

For the same price, a buyer may be able to get just a 1,300 sq ft three-bedroom leasehold condominium in the primary market. This can be seen from the recent launch of Centro, a condominium in Ang Mo Kio, with prices averaging around $1,200 per sq ft (psf).

# No maintenance charges: The owner of a landed property does not need to pay maintenance charges as opposed to someone living in a condominium. To make up for the lack of facilities in a landed property, there has been a growing trend of owners incorporating a lap pool within their homes.

# Lower construction cost: Reconstructing a property is more economical today than at the peak in 2007, as construction costs have dropped by 10 to 15 per cent over the past year.

# Custom built: Many home buyers today do not not hesitate to buy an old property, tear it down and build their dream house on the site.

In fact, some owners so enjoy dictating the design and materials for their house that they get very involved in liaising with the architect, contractor and interior designer. The completed project gives the owner an added sense of pride and satisfaction.

# Improved convenience: Landed properties had tended to cluster in estates lacking amenities or public transport. However, with the opening of MRT lines – the East-West, North-South, North-East and the Circle lines – it has become more convenient to commute from many landed housing estates.

Most are just a five- to 15-minute walk to the train station. One can also find food and retail outlets integrated with the MRT station or transportation hub. An example is the upcoming shopping mall ‘nex’, located above Serangoon MRT station and next to a bus interchange.

The accessibility has made landed properties more desirable and has changed the perception that they are not as conveniently located as apartments.

Is the demand sustainable?

Landed properties are likely to retain their popularity among Singaporeans. However, whether the transaction volume can be sustained will depend on the price expectations set by the sellers.

Despite the recovery in April, transacted volumes and prices are still below the peak. The 320 units transacted in July were about half of the 605 units done during the peak in May 2007.

Prices in the current market are still some 11 per cent (excluding detached houses) off those seen during the peak. For instance, in June this year, the average price of a landed terrace house below 2,500 sq ft was about $697 psf, compared to $796 psf seen during the peak in March 2008.

With the continued economic recovery and improved market sentiment, prices could continue to rise. However, as the economy is not yet out of the woods and wage increases are not expected to be strong, there is a cap on how much buyers can or will pay.

Price increments may slow from the 12-31 per cent registered in the earlier months of the year to a more gradual pace of 5-8 per cent in the next 12 months.

By GRACE NG – deputy managing director (agency and business services), Colliers International