Most Singaporeans Will Be Priced Out From Buying A Private Property In The Near Future…
Book a FREE (no obligations) chat today to find out if you're upgrade ready
The trend for private property prices in Singapore is clear and worrying...
Private property prices has been on the rise for the past 30 years and doesn't look to be slowing down at all.
Most HDB owners may balk at the high condo prices today and are waiting for prices to drop before entering the market.
But here’s the cold hard truth that no one tells you…
HDB owners will be priced out from upgrading to a private properties in the near future!
Read on to see how this can affect your next property.
Singapore Private Property Price Index
(Source: Department of Statistics Singapore)
💸 #1: Private Property prices
WILL keep rising.
As much as we think the property prices are high today, the fact is, they are still fairly priced.
If you look at one of the world's trusted sources on property prices - the UBS Global Real Estate Bubble Index, which I've pasted below - you can see that Singapore is NOT in a bubble, as opposed to other countries like the US, Switzerland, or Hong Kong.
(Source: https://www.ubs.com/global/en/wealth-management/insights/2022/global-real-estate-bubble-index.html)
This means that property prices in Singapore are very unlikely to crash but instead will continue growing over time.
And yes, we've already seen private property prices grow 8.4% in 2022.
Check out the crazy sales figures for 4 recent launches:
🔥 AMO Residence
98% sold (372 units) on the 1st day!
Launched 21 July @ $2,100 avg psf
🔥 Lentor Modern
80% sold (480+ units) on the 1st day!
Launched 17 Sep @ $2,125 avg psf
🔥 Copen Grand
100% sold out (639 units) within 1st month!
Launched 23 Oct @ $1,300 avg psf
🔥 Tenet @ Tampines
72% sold (450 units) on the 1st day!
Launched 3 Dec @ $1,360 avg psf
Despite the high prices - which saw mass market Condos in Ang Mo Kio
exceed $2,000 psf - sales is not slowing down.
Could it be that these investors know something about property prices that you don't?
💸 #2: Property prices are Actually suppressed Now due to High interest rates.
If you're not a seasoned property investor, you might be thinking "Huh? Seriously?!"
Well, take a look at the last two times when interest rates fell…
(Sources: www.housingloansg.com, Singstat, PropNex Research)
In 2013,
➡️ Interest rates fell from 5.04% to 3.98%
➡️ Properties prices increased by 62.2%
In 2020,
➡️ Interest rates fell from 4.54% to 2.96%
➡️ Properties prices increased by 18.9%
The surge in buyer demand actually jacks up property prices. And, the converse is true too.
When interest rates are high, property prices tend to fall or remain stagnant because:
🏠 Buyers become more prudent with their property purchases
🏠 Overall demand for new homes falls
🏠 Sellers are unable to raise their asking prices
That's why, contrary to what most people believe, now might actually be a really good time to explore the market.
In fact, some banks are even forecasting that interest rates are likely to fall again at the end of 2023.
When that happens, we can be sure that most of the people waiting in the sidelines today will rush into the market, in turn causing condo prices to surge again.
If you’re worried about the high interest rates, I will also show how you can pay up to 50% less interest on your mortgage.
💸 #3: The price gap between HDBs and Condos will continue to keep widening.
Here’s the thing - HDBs were never meant as an investment.
That’s why the government will do what is necessary to ensure that HDB prices remain affordable i.e. HDB prices will not increase steeply.
While, as proven above in my first point, private property prices will continue to grow.
(Source: https://www.edgeprop.sg/market-trends)
If you look at the graph comparing PSF between HDBs & Private Properties above, you can clearly see that the price gap has widened to $1134 PSF in 2022 - a 60% increase from what it used to be just 10 years ago!
These prices mean that even if you manage to sell your HDB at a high price of $1M today, a similar sized condo will cost you up to $3M - which makes it almost impossible for most HDB owners to upgrade in the future.
Right now, HDB prices are probably still at their peak, and so it could be the best time to sell and unlock some cash for an upgrade. But this window is closing really soon. Why do I say so?
Agents on the ground like myself have seen the number of viewings for these higher quantum HDBs drop significantly recently. While it was easy to get 10-15 viewings per week just a couple months ago, we're seeing the numbers dry up to only 5-6 viewings per month.
From experience, all these signs will point to HDB sellers reducing their asking price, which will have a knock-on effect of HDB prices stagnating again.
This means the longer you wait to make the upgrade, the wider the price gap becomes and the less likely it is for you to be able to afford it.
So What's The Solution?
Take Action NOW While You Can - Because Prices Will Only Surge Higher The Longer You Wait.
If you always had the dream of owning a Condo, then you really shouldn’t wait for the price to drop.
Don't even think of trying to 'time' the market. I tell all my clients, don't try to "sell high, buy low" in today’s market. The longer you wait to take action only when “prices are right”, the further priced out you will be from being a private property owner.
So, the best thing you can do right now is to enter the market today - with strong financials and advice.
Of course, this doesn't mean you should go out and buy the first property you see on your social media feed.
Not everyone and not all properties will fit this window of opportunity.
You need to put in the time and effort to find which property will give you the highest potential of appreciation, and how much your finances will allow you to take advantage of the market opportunity, safely.
I can even show you ways to spread out your mortgage payments so that you pay up to 50% less interest! When it comes to property, I practise what I preach - I have also bought a few properties and profited from them over the years.
In fact, just a few months ago, I took action and bought a 14th-floor condo unit at $23K above the price of the 15th floor unit, while interest rates were higher. My wife called me crazy, and was against the decision. But I did it anyway.
Why? Because I knew how to read the trends.
And I was right - because just 5 months later, a lower floor unit was sold for $120K more than what I paid.
That equates to at least $120K appreciation for my unit, so far!
But first - why should you listen to a word I say?
Hi, my name is Raymond Tiah, Group District Director, Multiple Platinum Agent and one of the Leading Trainers on Condo Upgrading within PropNex.
Over the years, I have seen many families buy their homes with many misconceptions: some attempt to pay their loans too quickly, while others had no idea about the “negative valuation” problem that their homes were in.
These families would have lost hundreds of thousands of dollars due to a lack of knowledge - if they had not met me.
After 1000+ successful transactions & helping hundreds of Singaporeans over the past 12 years, I'm confident I can help you make the right decisions too.
Hi, my name is Raymond Tiah, Group District Director, Multiple Platinum Agent and one of the Leading Trainers on Condo Upgrading within PropNex.
Over the years, I have seen many families buy their homes with many misconceptions: some attempt to pay their loans too quickly, while others had no idea about the “negative valuation” problem that their homes were in.
These families would have lost hundreds of thousands of dollars due to a lack of knowledge - if they had not met me.
After 1,000+ successful transactions & helping hundreds of Singaporeans over the past 12 years, I'm confident I can help you make the right decisions too.
Book A Chat Today: Find out how you can Leverage This Small Window Of Opportunity Before It Shuts On You:
Book a FREE (no obligations, no sales) chat with me today and receive the following:
A FREE personalised plan of action to upgrade to a condo.
How to pay up to 50% LESS interest rates even if you buy today.
How to choose the units with the most upside to maximise returns.
Book a chat: Find out how you can Leverage This Small Window Of Opportunity Before It Shuts On You:
Book a FREE (no obligations, no sales) chat with me today and receive the following:
A FREE personalised plan of action to upgrade to a condo.
How to pay up to 50% LESS interest rates even if you buy today.
How to choose the units with the most upside to maximise returns.
Don't just take my word for it. Hear why my clients trust my advice when it comes to making the right moves in the property market.
"I will in fact recommend Raymond to my relatives or friends because I think this whole process from viewing to purchasing has been very smooth and knowing me, I like things to be hassle-free and he has actually done that fantastically.
"Compared to other agents, Raymond actually stands out because he listens to our requirements before he makes a decision for us. He also uses statistics and data to verify his advice."
"After one week of viewing, he managed to clinch the deal. When he showed us the (sales) value, we were quite surprised, because it was way beyond what we expected! We like how he presented during the first session, there's no pressure from him."
"Whenever we ask Raymond for more info, he usually showed us all the statistics numbers, so it's easy for us to do our own comparison, know our position, and then that helped us in our thinking or decision-making process."
“When I got in touch with Raymond on Whatsapp, he spent time to go through with me my options and gave me his opinion on my question even though he had already ascertained that my family cannot be his clients due to our profile, he was still very willing to talk to me.
Most agents who are as busy as Raymond would just quickly end the conversation to save time on the next potential, I see Raymond as an agent who is polite, helpful, and genuinely care for people. Raymond is an agent I would recommend for having this great attitude.”
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Lycia Soh
“Raymond creates good rapport therefore has wide range of network that enables selling and buying hassle free.
It is with great pleasure to have known him as he also made himself available for out of duty calls and went extra miles beyond his duties like a friend would.
Highly recommend Raymond Tiah if anyone is looking for helpful property insights due to his resourcefulness and contacts.”
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Alan Tcheng
“Thank you Raymond for your patience and guidance to us. We are grateful that our paths have crossed.
Apart from providing valuable guidance and patiently addressing our queries and concerns, you have also enriched us with knowledge on Singapore properties laws, etc.
We have achieved our property goal because of your help. Forever grateful🤩🤩🤩”
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Joy Ongkiko-Malata
“Raymond is a professional consultant who gave my wife and I sound advice, and led us on the path for our asset progression.
We managed to secure reasonably good units at attractive prices based on his wide network.
Raymond is easygoing, treats us like friends and keeps me updated. The friendship will go a long way. Highly recommended to engage and work with 😁”
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Gary Chiang
Let Me Help You Take Action While We Still Can.
This might be your last window to make the jump to a private property before prices grow truly out of your reach.
I want to help as many people to take action this year, because I know it will be even harder for you (and me) in the next few years.
At the very least, do yourself a favour, and do an honest check on your financials to see what opportunities you can seize today.
If it looks like you're not in a safe position to buy a private property this year, I'll tell you so, and I won't suggest any further action for you.
But what if you were in a good position to enter the market? Wouldn't you want to know?