Help me understand the Singapore property market...

[timechaser]

Suddenly, prices have jumped and owners are marking prices up. I can see a certain (convoluted to me, but still existant) logic in that.

What I find hard to believe is estate agents who tell me - no owner will sell at the valuations offered by the banks. WTF! How is one supposed to buy property then? If I had cash, I wouldn't effing go for a mortgage!

I have X available - so I am targetting 4X as the max price I can pay i.e. assuming a deposit/margin of 25% is available. According to me this X is not a small sum - I could buy my old 2 bed, thames riverside apartment close to Canary Wharf cash down in that today. However the 4X seems to be a pitifully small sum in Singapore!!!

So help me understand - how does one go about buying property here? I just cannot fathom this market. And most estate agents don't seem to care one way or another! They will just cut you off on the phone saying that the price is firm even if it is 25% above the last trade which happened 15 days ago.

Case in point - pebble bay. Average trades over April/May about $775 psf. Mostly high floors. Now say I want a bay view - a premium of $100 psf is justified? So that would put the 1,893 sq ft apartment at $1.66 mn. However, most adverts are $1.9 mn and above and none willing to even talk about negotiation! What's the logic here?

Seems like Singapore is full of multi-millionaires who can keep sitting on the property and asking for pricing as they want, even though the rental market is going down the pot.

Sigh! Makes me feel piss poor...

[C3P0]

Seems like Singapore is full of multi-millionaires who can keep sitting on the property and asking for pricing as they want, even though the rental market is going down the pot.

You are right. Most still got jobs, or the business they run are still doing well. Plus the stock market surge recently, everyone become optimistic about the future.

Everything works on sentiments nowadays. No fundamentals. Market siow liao. Hence it cannot be understood.

[totoseow]

the trick is to wave a cheque. talk is free. u can talk all u want...
tell the agent this is my bid. say u can give him a cheque if its a reasonable bid. tell himi it works for 1 day...see if he accepts it.

[iScoupe]

You are right. Most still got jobs, or the business they run are still doing well. Plus the stock market surge recently, everyone become optimistic about the future.

Everything works on sentiments nowadays. No fundamentals. Market siow liao. Hence it cannot be understood.

+1 , no fundamentals, alot pple make big bucks in market, COE goes up! pple just like chinese 7th month, bid a 4 litres VSOP at $2,888 ! I got 5 bottles at home who wants?

[iScoupe]

the trick is to wave a cheque. talk is free. u can talk all u want...
tell the agent this is my bid. say u can give him a cheque if its a reasonable bid. tell himi it works for 1 day...see if he accepts it.

very smart way! hahaha... it works dude.

[timechaser]

Didn't work for me in the last one I tried... That's what I dangle in front of estate agents usually, but they are not biting!!!

[marklee]

From what I have heard, property agents around an area agree to only sell at a certain price...anyone who sells below that price is seen as a traitor and will kena outcast. This is how property agents control the market. Also, stock market drop, property prices will lag behind and slowly drop, but when stock market surge, property prices respond almost immediately...cannot fight.

[Welbo]

Agree with toto, buy property or car, issue cheque for deposit then negotiate. No 2 ways about it and both agent and seller know u are sincere.

When I sell my house or car, same concept, if no cheque on the table I will not nego as lots of pple ask siong only.......

[iScoupe]

Didn't work for me in the last one I tried... That's what I dangle in front of estate agents usually, but they are not biting!!!

seller also wave a bigger cheque lol...

[edlms]

do what i do...
buy the agent.

for every $10,000 less than the asking price, give the agent $X to make up his shortfall in commission. nett effect is you get better price overall.

cheers