Category: General News

PropNex CEO gives great tips at the SMART Property Expo 2011

The second day of the SMART Investment and International Property Expo 2011 was really a day of learning for us. We sat down with the crowd taking down important investment tips and strategies from the various experts speaking at the seminars. Mohd Ismail Gafoor, CEO of PropNex, spoke about the current situation regarding the Singapore property market. Read on to see what he says.

Speaking to a rapt audience eagerly taking notes, Mohd Ismail was very candid on the situation. We were quite impressed with his no-nonsense, straight-to-the-point style, trying to cover as much ground as possible in the short 45-minute time frame.

Looks like he's one popular speaker!

Here's a quick summary of what he spoke about:

Market situation

• The recent aggressive bidding for land by developers means the costs will eventually be borne by the buyers. There will be a significant mark-up. Keep that in mind when you buy newly launched condos.
  
• Consider carefully when you buy 'shoebox' or compact units. There is a limit to the rents you can charge, the capital appreciation is limited and there will be a lot of such units coming online in the next two years.  How the market will react to such a large supply is unknown.
• Because of seller's stamp duty (lasting up to 4 years from date of purchase), current buyers have the ability to hold on to their units even if there is another global financial crisis. Hence, it is unlikely that prices of units will see a drastic 2008-like fall when speculators dumped their units to recoup their losses.
  
• Looking at the numbers, he feels the mass market segment is 'over-excited'.
• No need to always look at new launches. Resale units can be better. He cites the Hillview area in Upper Bukit Timah as an example. There are plenty of 999-year, freehold resale condos near the upcoming MRT stations priced lower than newly launched condos in the same area.

HDB Market

• For HDB, the prices are at an all-time high. If you are looking to upgrade (to DBSS, EC or Condo) now is the best time to do so.
  
• He thinks HDB prices and COV cannot go any higher because of the upcoming General Elections as housing prices are a sensitive election issue.
• He believes COV will hover around the $20k-$28k in the near future.
  

Landed Homes

• Consider buying landed homes. They are comparable in price to some new condos and have a lower price per square foot. Dollar for dollar, landed homes provide better value - you get a garden, bigger space and the lease is 999-year or freehold.
• Landed homes will always be in demand as they are a decreasing commodity. Even new land released by the Govt for landed homes are 99-year leasehold sites.
• Expats love landed homes.

Do your research and be logical

• Always do your homework, be rational and logical. Do not buy based on emotions.
• Always look at the basic fundamentals like location, etc.
• Always think mid- to long- term when investing in property. He cautions against short-term investments.
• And be prepared to wait, property investing is not for folks who want a quick buck.
  

Posted on 28-03-2011 13:07 | By John