View Full Version : Law Minister K. Shanmugam: Property values 'unlikely to slide in longer term'
http://www.straitstimes.com/premium/money/story/property-values-unlikely-slide-longer-term-20140308
By Cheryl Ong
PROPERTY values are unlikely to slide in the longer term, if the Government continues with stable, clear-sighted policies, Law Minister K. Shanmugam has said.
"(As) we move into a high-tech economy... we remain a safe centre for banking and financial services... where the Government does not move arbitrarily and acquire for no compensation. The Government doesn't chase people away," he said on Thursday.
"If we can keep our policies right, in the longer term, if Singapore was a stock, buy it. And that means property prices will go up," Mr Shanmugam said in response to questions that cooling measures such as the Additional Buyers' Stamp Duty would weigh down property values.
He was addressing about 1,700 property agents attending a ministerial dialogue organised by real estate firm PropNex at Kallang Theatre.
He also noted in a Facebook post yesterday that he was optimistic about Singapore's future, as the thriving Asean economic community "will offer exciting economic and trade opportunities for us as a regional service hub".
Headwinds in the property market, though, in part due to the cooling measures and Total Debt Servicing Ratio, do not mean buyers are unable to afford property, he added at the convention.
Instead, some buyers may be wary and are holding back because of fears of a correction in prices.
The Government's redevelopment plans for the Greater Southern Waterfront and Paya Lebar Airbase will also free up "prime superb-value land" and play a part in propping up property values, he said.
That means that the role of property agents will grow in importance, as property prices rise.
"You are talking about people having to commit millions of dollars, and I think a highly-trained professional who can help people get value for that... can have a tremendous amount of value," Mr Shanmugam said.
"I think a lot more advisory work, a lot more analytical-type work and services will have to be started and provided."
K Shanmugam Sc: https://www.facebook.com/media/set/?set=a.666737976706069.1073742006.203314719715066&type=1
(https://www.facebook.com/media/set/?set=a.666737976706069.1073742006.203314719715066&type=1)I went for a dialogue with about 1,700 property agents, organised by Propnex. They asked me, and I explained to them the government’s rationale behind some of the property cooling measures. A stable property market, which will have positive impact on our overall macroeconomic and social environment, will be in every one’s interest, including their own.
I was asked for my views on the property market. I said that I will not be able to say what will happen to the market in the short term - whether it will go up or down. But fundamentally I am optimistic about Singapore and its future – provided we have political stability, good government, good economic growth, and good jobs for our people. Further as the ASEAN Economic Community takes off , it will offer exciting economic and trade opportunities for us as a regional service hub.
Propnex also presented a donation of $100,000 to Community Chest at the dialogue. It was great to have met and listened to the agents – many were extremely warm and friendly and we took a lot of photos.
"That means that the role of property agents will grow in importance, as property prices rise."
mai tu liao, change job to be prop agent...
prop agent who want to quit, reconsider....
:D
For those agents who r really have hearts for their clients n work hard to meet their needs. Hard to find good ones.:2cents:
i believe agents will show this article to prospective buyers over and over again...
start chanting "Property values 'unlikely to slide in longer term' " :D
remind me of "Property are meant to be bought, not sold".... oh i miss that guy :D
Actually the govt can cut the middleman out and property price will be cheaper. More and more ppl are selling their hdb by themselves and if the govt can open such a portal for buyers/sellers to come together, it will be great! Most agents 1st interest are their pocket and not really the interest of the person they are serving.
how come this shan is stepping into khaw's territory? shouldn't it be khaw to talk to property agents?
whats next?
khaw give a talk to law society?
yacob give a talk to mindef?
What you said is very thought-provocating indeed............... :beats-me-man:
how come this shan is stepping into khaw's territory? shouldn't it be khaw to talk to property agents?
whats next?
khaw give a talk to law society?
yacob give a talk to mindef?
how come this shan is stepping into khaw's territory? shouldn't it be khaw to talk to property agents?
whats next?
khaw give a talk to law society?
yacob give a talk to mindef?
What's wrong with that? Ministers change portfolio anyway.
I think as property investors we should evaluate for ourselves the impact of ASEAN economic community and chart our own investment strategy.
Actually the govt can cut the middleman out and property price will be cheaper. More and more ppl are selling their hdb by themselves and if the govt can open such a portal for buyers/sellers to come together, it will be great! Most agents 1st interest are their pocket and not really the interest of the person they are serving.
can t agree more. Good agents are a dime a dozen. Most just want to line their pockets. Even supposedly close friends, etc also cannot guarantee. Approached a friend s good friend and realized his intentions are not that good either. In the sense that trying to push the end prices up to make more from me the buyer.
I don t disagree that agents should make money,but even when a supposed close friend is trying to wring the most out of you, that says very much about the industry. Thats why when I deal with agents, I cut the chase, no feelings involved, I just state my terms.
Actually a lot of things which we do not see are happening in the background between the selling and buying agent. buyer and seller may not be in the loop. Will have to insist our way and target buy/sell price. :cheers1:
walkthetiger
08-03-14, 14:27
Actually a lot of things which we do not see are happening in the background between the selling and buying agent. buyer and seller may not be in the loop. Will have to insist our way and target buy/sell price. :cheers1:
That is why I don't believe top agents produce magical work for me, all the same to me. To be fair to them, they are just middleman make a living.
If a buyer know what is the market value of the property and the seller know how much the similar property is being sold, what value add can the agent give to the buyer and seller.
Been hearing that if there is no cov, then agents are not needed since buyers sellers will transact at value. Anw the trendy word is CUV now. Haha
CUV + Sales Commission To Agent = Tough to make more profit by selling owned HDB or to upgrade from HDB.
Actually the govt can cut the middleman out and property price will be cheaper. More and more ppl are selling their hdb by themselves and if the govt can open such a portal for buyers/sellers to come together, it will be great! Most agents 1st interest are their pocket and not really the interest of the person they are serving.
u can sell ur place without agent. its not a mandatory thing. As long you know how the process u don't need the agent.
What u need the agent are usually the seller lazy to market it themselves. so as a buyer u hardly find a seller without the agent.
u can sell ur place without agent. its not a mandatory thing. As long you know how the process u don't need the agent.
What u need the agent are usually the seller lazy to market it themselves. so as a buyer u hardly find a seller without the agent.
Agreed. Seller haf a advantage. Buyer suck thumb as agent will not deal with u but find u his agent fren to co-broke.
Agreed. Seller haf a advantage. Buyer suck thumb as agent will not deal with u but find u his agent fren to co-broke.
Its very dirty 1... so if seller lazy n if agent is not professional then seller might not get a good deal too.
Its very dirty 1... so if seller lazy n if agent is not professional then seller might not get a good deal too.
Yeah....juz wonder y must we pay a fortune for such sub par service.
Yeah....juz wonder y must we pay a fortune for such sub par service.
Coz the buyer just dont have the seller lead i.e the access to the stocks. unless as a buyer he is willing to go knock on door cold call peopel to sell their house to him. But thats also depends if seller want to entertain.
proud owner
09-03-14, 23:26
u can sell ur place without agent. its not a mandatory thing. As long you know how the process u don't need the agent.
What u need the agent are usually the seller lazy to market it themselves. so as a buyer u hardly find a seller without the agent.
week after week of advertising .... quite costly ... that's why sellers seldom do it ...rather 'PASS' the cost to agents...
proud owner
09-03-14, 23:30
CEA does not allow duo representation...
seller and buyer usually have their own agent ...
no one holds a knife to either party and say " MUST AGREE TO THIS PRICE"
so I don't understand how when one party doesn't get a good price, it becomes the fault of agent
week after week of advertising .... quite costly ... that's why sellers seldom do it ...rather 'PASS' the cost to agents...
yup thats why when have a good agent work with them. everyone have a overhead and are to make a living.
I seen some sellers or buyers who are super calculative and think they can do the agent jobs.. I say then go do.. ;)
CEA does not allow duo representation...
seller and buyer usually have their own agent ...
no one holds a knife to either party and say " MUST AGREE TO THIS PRICE"
so I don't understand how when one party doesn't get a good price, it becomes the fault of agent
not necessary is agent fault. But $ do drive behavior. So if agent have sole marketing rights to a unit. They can ignore better offers unless the co-broke are working with them. but with a weak market agents are less peaking. Rather close then get nothing.
but in a market transition period. bull / or sudden bear. these ugly behavior do happen.
but like u say no one hold the gun to the buyer or seller head. Its all abt who's more willing to compromise.
so I don't understand how when one party doesn't get a good price, it becomes the fault of agent
I give you a real case.
the seller's agent has 2 offers. my friend was one of the buyer. he had no agent. direct offer. the other one through an agent.
the seller's agent took my friend's cheque immediately and got the owner signed and closed the deal. even though the other buyer's agent had a slightly higher offer (and it was the 1st offer, before even starting bargaining)
very simple reason: sell to my friend, seller agent gets all the comm. whereas selling to the other one, he has to share.
now after the deal was closed, the other buyer's agent managed to get hold of the owner and told him about his higher offer. the owner was not pleased, however as his agent had been taking care of that pty for 10ys, he didn't really do anything. the difference in the offer was not big though, 20k I think.
only a few here read "Freakonomics: A Rogue Economist Explores the Hidden Side of Everything" ?
CEA does not allow duo representation...
seller and buyer usually have their own agent ...
no one holds a knife to either party and say " MUST AGREE TO THIS PRICE"
so I don't understand how when one party doesn't get a good price, it becomes the fault of agent
this case
http://www.stproperty.sg/articles-property/singapore-property-news/couple-sue-agency-after-buyer-flips-flat-for-profit/a/60208
http://www.h88.com.sg/article/ERA+told+to+pay+back+%24257%2C000+in+quick+flip+case/
only a few here read "Freakonomics: A Rogue Economist Explores the Hidden Side of Everything" ?
I like this book too (and a few of his others) :)
this case
http://www.stproperty.sg/articles-property/singapore-property-news/couple-sue-agency-after-buyer-flips-flat-for-profit/a/60208
http://www.h88.com.sg/article/ERA+told+to+pay+back+%24257%2C000+in+quick+flip+case/
Thanks for this news. Even educated ppl are been cheated. Dun say abt the older and less informed ppl. I wonder how many of them have been cheated by such unethical, no moral agents.
Thanks for sharing the articles. That why i said its hard to get good property agents who are ethical and professional though i encountered good ones before.
It is clear that prices will stay, this article couldn't be more accurate.
With land prices and labour cost going up, there is really nothing much developers can do to reduces prices.
I waited for 2 years before i decided that so long you have a place to call your own, there is no point in waiting and waiting for a price drop.
Many investors are also heading overseas to escape the ABSD and restrictions.
One example is this one: http://www.developersalesprojects.com/royal-wharf/
Certainly worth considering
proud owner
11-03-14, 20:20
Thanks for this news. Even educated ppl are been cheated. Dun say abt the older and less informed ppl. I wonder how many of them have been cheated by such unethical, no moral agents.
yes I have read of this incident....
what can I say ...ERA hahahha opps sorry
I know of a friend, his wife is an agent... in the mid 2000s ... she was asked to help sell a condo unit along Holland road ..
she liked it .. and asked her husband to view .. his hubby also liked it... and they bought it..
in that instance, the seller dictated the selling price .. $1mio
they bought it ...
2 weeks later ... it was enbloc ...
they gained $1 mio profit straight away ...
between 2006 and 2008 ,,,so many FLIPPINGs ...so many made money ...
but no one complained..
myself .. I bought a PH on a Monday..on Friday .. agent ask if I want to sell ...got buyer willing to pay 250k more ....
so how ?
anyway agent very 'sway' one...
do good ... no extra $$ ... 1 wrong move ...kana fined, fired, jailed, etc etc ..
CEA very strict one ... good and bad lah ...
some sellers/buyers take advantage of CEA's one directional ruling, also very unprofessional and get away with it ...
http://www.straitstimes.com/archive/saturday/premium/money/story/property-values-unlikely-slide-longer-term-20140308
Property values 'unlikely to slide in longer term'
Published on Mar 08, 2014
By Cheryl Ong
PROPERTY values are unlikely to slide in the longer term, if the Government continues with stable, clear-sighted policies, Law Minister K. Shanmugam has said.
"(As) we move into a high-tech economy... we remain a safe centre for banking and financial services... where the Government does not move arbitrarily and acquire for no compensation. The Government doesn't chase people away," he said on Thursday.
"If we can keep our policies right, in the longer term, if Singapore was a stock, buy it. And that means property prices will go up," Mr Shanmugam said in response to questions that cooling measures such as the Additional Buyers' Stamp Duty would weigh down property values.
He was addressing about 1,700 property agents attending a ministerial dialogue organised by real estate firm PropNex at Kallang Theatre.
He also noted in a Facebook post yesterday that he was optimistic about Singapore's future, as the thriving Asean economic community "will offer exciting economic and trade opportunities for us as a regional service hub".
Headwinds in the property market, though, in part due to the cooling measures and Total Debt Servicing Ratio, do not mean buyers are unable to afford property, he added at the convention.
Instead, some buyers may be wary and are holding back because of fears of a correction in prices.
The Government's redevelopment plans for the Greater Southern Waterfront and Paya Lebar Airbase will also free up "prime superb-value land" and play a part in propping up property values, he said.
That means that the role of property agents will grow in importance, as property prices rise.
"You are talking about people having to commit millions of dollars, and I think a highly-trained professional who can help people get value for that... can have a tremendous amount of value," Mr Shanmugam said.
"I think a lot more advisory work, a lot more analytical-type work and services will have to be started and provided."
[email protected]
I wonder how many more of such cases that went undetected...
this case
http://www.stproperty.sg/articles-property/singapore-property-news/couple-sue-agency-after-buyer-flips-flat-for-profit/a/60208
http://www.h88.com.sg/article/ERA+told+to+pay+back+%24257%2C000+in+quick+flip+case/
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