"Why the price keep going up now?"
"Would it ever come down?"
This post was supposed to be out next week, but I decided to push ahead as there are quite afew enquiries
I decided to address this issue where the property market is still heading north since the recovery from the covid outbreak. The bounce is stronger than ever as we even see rental picking up and a up to 20% increase in the usual rental rates for my team.
The news articles in the recent days cannot sum it up better as these articles could further justify what's going on. It's funny to say that as an agent I won't wish the price to go up at such rocket speed; because I'm currently also saving up for a home and this only lengthen the stretch for me to commit. So I'm sure alot of home buyers might fall into this category too.
But the purpose of this segment is to address home buyers who have the ability to commit, but am holding off thinking that this is a property bubble or the prices will cool down, only to see that the cooling measures did little to no effect to bringing down the property prices.
Aside from that, we see developers getting the green light to increase their price with the amazing take up rates and also people are still accepting the prices. It is definitely a win for those who committed earlier, with the paper gains, but for those who are still window shopping around, they should either bite the bullet and go for it or relook at their plans and options available.
(Click here to read more @ Business Times)
Even the CEO of PropertyGuru does notice a stark difference in the supply and demands, as this mismatch causes the "seller/landlord" market. Due to the lack of supplies, the supply have more commanding power of pricing, thus driving the prices up.
(Click here to read more @ CNBC)
The rising construction cost makes things worse, as this not only brings about delay but also pressure on the breakeven cost for the developers, and this would flows down to homebuyers, giving them a much higher difference from the PSF PPR.
(Click here to read more @ Straits Times)
For context, Normanton Park was bought at $969 PSF PPR, and they are looking to breakeven at around $1,516 PSF (after accounting all the cost required)
Now look at lakeside apartments; which is one of the furthers point of OCR, are commanding a bid of $1,260 PSF PPR and are looking to break even at a astonishing $1,636
Last but not least with the endless and upcoming transformation, our local government are full steam ahead in terms of land growth. So these urban transformation would only further push and encourage the price further up.
(Read more in the URA Website)
In conclusion...
Well, at the end it's not call the rat race for nothing, but sometimes it is better to act when we're ready than to wait by the side lines. That's the bitter pill that all of us have to swallow; Yes the prices would keep going up, and prices going down is currently unlikely seeing how the stars are aligned for the prices to grow.
Feel free to reach out if you need more advance or need help to get your finances calculated. I'll be more than happy to help calculate loans, do up a comprehensive report and even make arrangements for you down at the showflat to check out. Do note that all these are complimentary, so click that WhatsApp button and connect now!