View Full Version : Is it Really a Buyers’ Market? MAY 3, 2016
By Person of Interest (guest contributor)
A decline in property transactions came after the 7th round of property cooling measures that saw a jump in the Additional Buyer’s Stamp Duty (ABSD), and a further reduction in Loan-to-Value ratios for property investors in January 2013. This was followed just five months later by the Total Debt Servicing Ratio (TDSR) loan framework that reduced transactions across all sectors.
Buyers are taking the opportunity of a slowing market to secure bargain deals. Some call it a ‘Buyers’ Market’ now.
But is it really a buyers’ market?
A property agent friend (let’s call him Agent A) who focuses in the Core Central Region shared this interesting story with me when he treated me at my favourite salad store. The sharing started after we overheard a couple sitting next to us debating on the fair price to pay to a car seller they would be meeting later that evening.
Agent A shared that his buyer(let’s call him Buyer A) put up a bid of $300,000 lesser than the asking price, when the recent transaction data showed $50,000to $80,000 less would be more acceptable.
Buyer A went to great lengths to provide all the supporting news articles and his chart depicting how dire the economy would be, and why the seller should accept his bid of $300,000lower than the asking price. This was despite Agent A highlighting numerous times that the seller (through his agent) had turned down a bid that was $200,000lower than his asking price.
Buyer A did not give up – he instructed Agent A to bypass the seller’s agent to bring his message to the seller. Agent A politely educated Buyer A that this was not the correct protocol.
Buyer A started to discredit Agent A for not acting in his interest and that he was not helping at all.
So whose market is it really?
It is true that the real estate market in Singapore is not as buoyant as during the period from 2007 to 2010.
It is also true that property buyers currently are able to pick the best property of their liking.
However, Buyer A adamantly stuck to his strong belief that as it was a ‘Buyers’ Market’, buyers have all the leverage, and he did not absorb any of the information provided to him.
The questions remain:
Was the buyer serious enough or in a hurry to make any purchase?
Was the seller serious enough or in a rush to make a sale or did he really think his asking price was fair?
So in a slow market, whose market is it?
In the end, it is a ‘Willing Buyer, Willing Seller’ market. Otherwise, there would be no market at all.https://www.propwise.sg/is-it-really-a-buyers-market/
http://www.littlebigproperty.com/uploads/1/5/2/6/15268738/2616441.jpg?879
It is a... b...b...b...buyers' market.
You forgot to add 1 Apr 2016 - Disallowing of HDB Transfer for the purpose of avoidance of ABSD.
I think 2009 is the real buyer's market. Current buyers have to jump multiple hoola hoops and steeple chase to qualify. Having some regulations are good to even the game. But having so many, it just makes the buyers circus animals.
Now even new buyers might encounter difficulties buying.
http://www.littlebigproperty.com/uploads/1/5/2/6/15268738/2616441.jpg?879
bargain hunter
03-05-16, 11:15
really depends on how keen to sell is the seller.
Those who qualified to buy after the circus show, do you think they will still think of selling?
really depends on how keen to sell is the seller.
bargain hunter
03-05-16, 12:53
Those who qualified to buy after the circus show, do you think they will still think of selling?
the article above quoted the e.g. of a CCR ppty. so, while stocks last and how willing to sell.
agree with u that those who qualified recently probably won't need to sell. so aren't we still on course for a bottom in 2018?
No idea. May reach a bottom with older resales seller willing to let go at smaller profits or small loss but I think very limited in numbers, mostly pre-2013?
And when that number runs very low, only left those holding to cash out for retirement, that's when it should get interesting.
That's possibly the reason why many buyers are attacking the developers about price lowering. If new sales lower prices, resales will fall further. But I feel there is also a limit to how low developers can do that before seriously compromising quality.
Those of us who can neither sell nor buy, we can only wait and amass more funds. 2018 will be interesting either way.
the article above quoted the e.g. of a CCR ppty. so, while stocks last and how willing to sell.
agree with u that those who qualified recently probably won't need to sell. so aren't we still on course for a bottom in 2018?
bargain hunter
03-05-16, 13:44
wrong thread. :hopelessness:
proud owner
03-05-16, 17:06
A Buyer's market will be one where the buyer places a bid price, and the seller HIT that price, with little to no bargaining.
For the article above, i feel it is a Desperate Buyer, more than a desperate seller.
http://www.straitstimes.com/singapore/housing/hdb-tightens-rules-for-transfer-of-flat-ownership
One more hoolahoop to jump.
Buyer's market? When existing housing stocks are cleared, I won't be surprised if there is a new tax on first purchase if it is a luxury property. How to define luxury will be up to their interpretations.
If the property cooling measures already give you 30-40% in CCR, isn't this the reason now why people are willing to pay 15% ABSD??? What more luxury tax you want?
For OCR, fat hope! Don't even get discount from property cooling measures in the first place! Ah! HDB upgraders have to wait long long to get the 30-40% discount (if further no action is being taken to cool OCR private property prices)..........
GST is not a "luxury" tax? Ha ha ha!
Anyway, everybody also need to pay (regardless of whether you are rich or poor or NO income or disabled and unable to earn an income or too old to earn an income).......... :chargrined:
How to define "LXUXURY"?
We can use GST voucher rebate and CSC rebate criteria as a guide.............
In this case, to the government, as long you live in any HDB property more expensive than a 5 room HDB flat or any private property (including in OCR), that is already considered a "LUXURY" property?!
http://www.straitstimes.com/singapore/housing/hdb-tightens-rules-for-transfer-of-flat-ownership
One more hoolahoop to jump.
Buyer's market? When existing housing stocks are cleared, I won't be surprised if there is a new tax on first purchase if it is a luxury property. How to define luxury will be up to their interpretations.
bargain hunter
04-05-16, 13:24
http://www.straitstimes.com/singapore/housing/hdb-tightens-rules-for-transfer-of-flat-ownership
One more hoolahoop to jump.
Buyer's market? When existing housing stocks are cleared, I won't be surprised if there is a new tax on first purchase if it is a luxury property. How to define luxury will be up to their interpretations.
"HDB said it did not make the change to target the loophole that allowed buyers to avoid paying the ABSD, but as part of a regular policy review. Those who do not fall under the new rules will be reviewed on a case by case basis." still can case by case wor as u had mentioned. *wink* *wink*
It's going to be hard to qualify though.
When I urged those eligible to decouple to move fast, it was also in all earnesty.
HDB has allowed more than enough time for the really defensive and decisive group to clear.
The next chess piece in focus will be those who have prepared for 5 to 10 years to move but have not decoupled yet. Their actions can be amazing if they choose to take it. Some of them will gun for 2-3 million segment onwards and the more defensive will go for OCR decent sized property at 1+mil. Those who just want rental property will start to take the 1BR.
Of course, the majority will stay put. This allows everyone to continue to play the game of monopoly.
Caveat emptor. This is just my conjecture.
"HDB said it did not make the change to target the loophole that allowed buyers to avoid paying the ABSD, but as part of a regular policy review. Those who do not fall under the new rules will be reviewed on a case by case basis." still can case by case wor as u had mentioned. *wink* *wink*
bargain hunter
04-05-16, 16:46
It's going to be hard to qualify though.
When I urged those eligible to decouple to move fast, it was also in all earnesty.
HDB has allowed more than enough time for the really defensive and decisive group to clear.
The next chess piece in focus will be those who have prepared for 5 to 10 years to move but have not decoupled yet. Their actions can be amazing if they choose to take it. Some of them will gun for 2-3 million segment onwards and the more defensive will go for OCR decent sized property at 1+mil. Those who just want rental property will start to take the 1BR.
Of course, the majority will stay put. This allows everyone to continue to play the game of monopoly.
Caveat emptor. This is just my conjecture.
those 5 to 10 years, if they sell their hdb, they can split the name for 2 ppties if their TDSR allows it.
Yes they can. But most would just take one first see Iif can tahan.
those 5 to 10 years, if they sell their hdb, they can split the name for 2 ppties if their TDSR allows it.
proud owner
05-05-16, 01:00
[QUOTE=teddybear;518076]
GST is not a "luxury" tax? Ha ha ha!
Anyway, everybody also need to pay (regardless of whether you are rich or poor or NO income or disabled and unable to earn an income or too old to earn an income)..........
Not true ... a lot of Landlords when paying commission to their agent, refuse to pay GST.
As a result, the agents had to take that cost themselves ...
Something that our govt is aware but did nothing to enforce ...
One branch of FEO leasing dept.... charges GST for the rent, but wouldn't pay GST to the agent who close that deal ...
The way you sound is like the RICH pay less GST? LOL!
Think you forgot that they said increasing GST is to help the POOR!
If the RICH pays less GST or have avenue to don't pay GST, how to help the POOR? :scared-3:
[QUOTE=teddybear;518076]
GST is not a "luxury" tax? Ha ha ha!
Anyway, everybody also need to pay (regardless of whether you are rich or poor or NO income or disabled and unable to earn an income or too old to earn an income)..........
Not true ... a lot of Landlords when paying commission to their agent, refuse to pay GST.
As a result, the agents had to take that cost themselves ...
Something that our govt is aware but did nothing to enforce ...
One branch of FEO leasing dept.... charges GST for the rent, but wouldn't pay GST to the agent who close that deal ...
The way you sound is like the RICH pay less GST? LOL!
Think you forgot that they said increasing GST is to help the POOR!
If the RICH pays less GST or have avenue to don't pay GST, how to help the POOR? :scared-3:
[QUOTE=proud owner;518120]
Talk cock. GST are paid. and GST are redistributed to the segment of needy. So don't come talk cock and fudge your bullshit.
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