||Key Takeaways from the Agent Summit 1H2016
Our recently concluded Agent Summit 1H2016 had witnessed more than 400 agents gaining valuable insights from thought leaders in the property market – Eugene Lim (KEO, ERA Realty Network), Kong Chong Phang (Founder & MD, Citi Commercial), and Mohamed Ismail Gafoor (CEO, PropNex Realty).
Missed the Agent Summit? Fret not, as we have prepared 9 takeaway tips from our Agent Summit that will help you draw your master plan for success for 2016!
On Singapore’s private residential market:
- After 9 consecutive quarters of price decline in the private residential market, prices are still on the decline with the prime (CCR) property prices taking the biggest hit.
- Property seekers with cash liquidity looking for a good buy are influenced by the several issues in the market – slowdown in economy, rising interest rates, and sluggish job growth. The extent of decline depends on any changes to cooling measures, interest rates and any external shocks.
- The property prices in Singapore are expected to increase in the long term due to our scarcity of land and increasing demand which is affirmed by Fitch Ratings’ AAA sovereign ratings awarded to Singapore.
On Singapore’s commercial market:
- Commercial market is experiencing a slowdown with buying and leasing sentiments expected to be suppressed. Landlord’s asking prices started to show a 5 to 10% decline and it’s projected to decrease by up to 30% by the end of 2016.
- Business owners and CFOs will be cautious when it comes to making decision in commercial relocations, ensuring healthy account surpluses unless they see substantial savings in the rent while maintaining or improving the quality of the space. Prepare a list of commercial property options with financial analyses and recommendations to your clients while monitoring your marketing collateral costs.
- There is a silver lining even in the declining commercial market in 2016. When the market is good, clients look for expansion. When the market is weak, clients look for smaller spaces to cut costs. Anticipate enquiries from technology business, non-finance, non-oil, non-gas, and non-shipping related industries in 2016.
On Singapore’s government housing sector (EC & HDB resale):
- After 9 quarters of HDB price decline, a small positive price growth was witnessed for the first time in Q4 2015. HDB market had come to a stage of stabilization with the volume of transactions increasing to almost 19,000 in 2015. HDB transaction volume may hit or marginally surpass 20,000 in 2016.
- Do not expect double digit price growth rate in the future. HDB prices are expected to be flat with a -1% to +2% movement in 2016. It’s the optimal time to sell HDB units and reorganize your property portfolio.
- It’s the window of opportunity for buyers to pick up unsold EC units with the land bidded before 9 Dec 2013 (no resale levy) and not subjected to TDSR. Based on PropNex research, new EC launches are usually priced 20 to 25% lower than private condos, thus proving largely popular among middle income couples or upgraders who find prices of condos prohibitive.