Thursday, August 21, 2014

Back from my hiatus,I have tonnes to share!

Its has been 8 long months! I have decided not to write any more entries but I strongly feel I need to forewarn you again. In the second half of 2013, I turned decidedly bearish and for good reasons. I looked carefully at the demand and supply situation and further considered many many other factors. They include the very ample liquidity, world economy, and a host of other considerations.

My conclusion? A very decided sell on the residential front. For those who heeded my advice, very good for you. I predicted a 20% drop by the end of the year. And so far the market is on the way there, in fact, the premium segment has already breached the 20 percent mark. I am not being sarcastic here but the worse is yet to come. I am starting to see more and more mortgagee sales coming off the auction blocks and this is just the start.
Interest rates have not moved up that significantly yet!

I still do not see a crash coming especially when next year will most probably be an election year. The government of course has the option of removing the cooling measures and stabilise the market. However, with the global economy a little shaky and the very ample liquidity gushing in a little less aggressively then before, I prefer to play it safe for the time being. I have sold off my whole residential portfolio save my residence, well you decide what you want to do.

I have been very busy on the business front. The hotel, education and real estate businesses are all doing very well. I applaud my team for their dedication and I am extremely blessed to have such a talented team on our side. Till the next entry, God Bless and take care.

Yours humbly,


Friday, January 10, 2014

On the mark! I hope you did the right thing!

Hi guys, a very Happy New Year to you! I have been traveling intensively in December and I apologise that I have not been able to update my blog often enough. I was in Europe, Vietnam, Seoul and Bangkok. This is all in the space of 3 weeks. I literally was rebuilding the whole entire business up. It is interesting and even though it is tough, I would not want to do anything else. I’m absolutely exhausted dealing from all the issues at hand.

I hope you read the news that residential prices are finally coming down. For the record, in my blog, I repeatedly shared with you that asset prices are due for a correction. I hope you took my advice and lightened up on your property portfolio. I certainly did.  I have been taking care of all my property students for the last 4 to 5 years. In those few years, all they had to do was to follow my forecast trend and all of them made money. Even though I only made one forecast a year in the real estate market, that annual forecast has made my students a lot of money. From premium condos to commercial property to Iskandar land, a few of you have followed me steadfastly and I’m happy that you managed to create all that wealth. If you think the fall is worrying, you should be scared. The Federal Reserve will taper QE even more aggressively given the latest numbers and the situation will get worse. Someone asked me if the government rescinding cooling measures will perk things up and I told him a definite NO! Why? Things are where it is due to a series of trends like China tightening, QE and low costs of funds in Singapore. We are witnessing a reversal of tides and you should be prepared.

I just bumped onto this gentleman after church yesterday. By the way, I’m in church everyday at Saint Andrew’s Cathedral as it is where I find peace and get inspiration. I was at the Tumi store when he asked if I’m Andy Ong. I politely replied him yes and he proceeded to ask me a barrage of property questions and most importantly he wanted to attend my course. I told him that I don’t share anymore and wished him a Happy New Year. I have so many requests to teach as my deals get unwounded and the returns have astounded even market professionals. However, I pay a price. It is tiring watching trends that I do. I must admit I enjoy it but being responsible to those I share with is huge. I wake up every morning to CNBC and Bloomberg TV. And everyday is endless scrutiny of numbers.

Whilst I’m happy to share what I’m doing(I’m still doing deals), it is quite draining. I am about to move into my new office and my team is looking forward to their new home. The business has grown so substantially that I am glad that the people in charge has stepped up and made things work. I am extremely proud of them. We now hire over 300 people and the business is expanding at a pace that is quite scary to me. However, growth also means opportunity and I’m proud that people like my ex-PA, Claire, can now assume director level positions. I’m proud of them and hope to create more opportunities for them in the future.

Till the next blog, take care and God bless!

Your Friend
Andy Ong

Monday, December 9, 2013

Right on the mark!

Hi guys, its been such a long time! I have been traveling a lot, in fact, I was in Bangkok till yesterday. I have been so blessed that I caught the two days on calm in this protest-happy country. I do wish them all the best as they are a very lovely bunch of people. I have been fighting crisis after crisis, but it is the faith that the Good Lord has given me opportunities to do all this that drives me on. I have often reflected why I have to face so many trials, I always try to do the right thing but I suppose different people have different perspectives.  Life is challenging but I suppose you have to bulldoze your way through.

In my last entry, I shared with you that the residential sector will come down and well I have been right on the mark. The real estate sector is dependent on cheap liquidity and the government cooling measures has prevented further speculation. And with foreign demand cooling off due to additional higher stamp duties, the market will face intense headwinds in the months ahead. I know that many bought Duo(the combined Temasek and Khazanah development) which did very well at launch but those who are successful in getting units should be rather careful at this stage. I really do not like the feng shui of the place and for $2000 plus psf, I have many other options that are far more attractive.

The world’s economies seem to be reporting better economic numbers. This bode well for Singapore due to our reliance on the international economies. However, with money flows trending the other way around as they hunt for better returns, well I am not too positive on asset prices.

Till the next blog, take care and God bless!

Your Friend

Andy Ong