You know it is a sign of desperation when "experts" start talking the property market up or calling a bottom while flying in the face of a new paradigm. Perhaps they are right, in as much that even a dead cat bounces. But with mortgagee’s sales on the increase, interest rates rising, a lackluster rental market and higher unemployment figures, we see little reason to cheer at this juncture.
But there you go, ask a real estate agent when is the best time to buy a property and the answer will be “any-time, but preferably in the next 20 minutes”.
Normally you call a trend when there is one and over a period of time. The only current trend is a 2.6% decrease in December sales prices, so there seems to a long way long way to go and much clutching at straws.
Mortgagee sales are rising and interest rates will rise globally. That will be a trend and not a good one.
A mortgagee sale of a unit at The Marina Collection in Sentosa was sold prior to auction for $$3 million, representing a loss of some 42.8% on the original purchase price of S$5.24 million. Rented at S$6,000 per month, the yield sits at 2% of the distressed sales value.
At times like this, reality bites and it is time to batten down the hatches and real in the variable costs. RENTALS.SG, connects landlords directly with tenants. Both parties are generally looking to save costs. We cut out commissions when you go direct and that helps every-one.