With the recent implementation of the cooling measures in Hong Kong, the prices of Singapore properties continue to experience the bull-run, especially the landed properties in the private sector. We have seen the effects and results of the last implementation on 30 August 2010 with much satisfaction.
This is very true for the bungalows as I am currently working with a buyer for his dream home. Many sellers feel that it is their “bull-run” by asking for high prices, having the mentality that buyers need and must buy from them. I always believe in buying and selling at fair market value. We need to understand that a house is a house and while there are a few critical criteria for selecting a good real estate investment, the real value of the house is a very subjective one.
While we often hear of banks able to match the indicative valuation, it is also very subjective. Looking at the fair market value would be something more palatable for both the buyers and sellers. The key reason measures need to be implemented is because of the punters out there, thus the rich get richer and the poor get poorer. Does a headline in the newspaper cause many to change their behavior again in the buying pattern in the current market or in the next few months? Human beings tend to be reactive creatures. Most of us react rather than analyse and look at bigger picture. Market will not just “boom” or “crash” by some statements made over the media. We should be financially educated which is the way to go. That explains why only about 5% of the people out there are true investors, while the remaining 95% are not (though they think they are). Which one are you? Interesting and thought provoking question to ask, but many will avoid it as not many people likes to be challenged or put in a discomfort position.
As long as we are coming from an investment perspective of investing in real estate, we should not be affected by the cooling measures and it should not deter us from waiting for “things” to happen before we consider our next investment. As the saying goes, when you see something good, take it before it’s gone. The usual problem with many of us is “analysis paralysis’. We think and analyse too much and that includes listening to the wrong people who appears to know a lot but are not investors. Till then, stay tuned. Awesome!