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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

In the News

*The media sends out conflicting reports, depending on who is doing the reporting - it's all sentiment and opinion and very low on facts. I prefer to track the actual sales to see how the market is really performing; the verdict - it's still boom-time out there.  Tracking developer gross sales proceeds is also highly illuminating.  The developers who bought the HUDC estates through en bloc are all making large profits - though D'Leedon seems to be languishing somewhat. Being in district 10, it not not a mass market property which is where all the action is at the moment. I also blame the awful design and sheer size of that estate for the present low interest/take up rate. Have no fear though, it will pass the $2 to $2.5 billion  mark eventually.
So it is either a lukeward response or a very good response depending if you read the ST or Business Times! Tampines Trilliant is $971k for a 4 room.  This is HDB; TC owners would not be eligable to buy into this kind of project until 2.5 years after they have disposed of their private property and even then there are all kinds of restrictions.
 'Analysts say the majority of investors prefer to buy uncompleted properties at project launches as they can minimise their capital exposure with progress payments. Also, by the time the property is completed in about three to four years, they would be hit only by a relatively small 4 per cent SSD, if at all.'

My view: (investers = flippers)
Flippers skew the market by creating a false demand. Hoards of speculators queueing up before a property launch create the illusion that things are 'picking up' or 'booming'.
Flippers are instrumental in price escalation. Markets impacted by flipping are not rational markets. Each flipped sale is an incorrect price signal which then permeates throughout the market and other buyers and sellers make inferences about what their properties are worth based on these flips, without truly realising (or maybe they just turn a blind eye) to that fact they are not true market sales. Flipped sales act like viruses that corrupt the whole market. Even the HDB market is affected as the subsidised rate of new flats is pegged to the market value of similar flats in the area. Ultimately, property flipping makes it harder for ordinary folk to buy a decent home. Flipper activity will always reach a point where market correction is inevitable as it is, after all, unsustainable.

    1 comment:

    1. Developers will still go for GLS, this one attracted 7 bids.