Wednesday, November 24, 2010
Tuesday, November 16, 2010
Monday, November 8, 2010
For those of you who have been following this blog, I made the prediction a couple of months ago that the government’s cooling measures will have little impact on prices and I have been right. Prices have not come down and in fact, have been slowly inching up.
Why the continued optimism? Its all because of Uncle Sam. The European and US Federal Reserve has been printing tons of money. What we dubbed QE2 in reality is the Western nations trying to export its problems to Asia. All this money will be flowing into Asia like a tidal wave. Why? Who in their right mind will want to hold US dollar denominated assets when the currency is depreciated at such an alarming rate.
This is tantamount to kicking yourself in the ass. If I have free or cheap money, I will be buying Asian assets. At the very minimum, if I do not lose money, I would have made from the currency angle. Thus many fund managers will be using US denominated loans to buy Asian stocks or property.
There will be asset price inflation over the next six months because there is SO much liquidity in the market right now and so few assets for sale. I did not just snap up Prime Centre, I also bought a freehold landed property at Bt Timah over the weekend too. Prices are still reasonable, and they will not be so reasonable over the nest few months.
In fact, Uncle Sam just gave me an extra push for my property portfolio. So for all you out there, don’t say I did not give you advance warning! Go get some assets that I told you to buy in class!
Thursday, October 14, 2010
Hi guys. Sorry for the long period of absence. I have been busy rationalising my personal life and work has been absolutely hectic. I was absolutely taken aback with the speed that commercial property has been picking up. Our North Bridge Complex investment was meant to be a 5 to 7 year investment before we can see any significant returns but it seems that we will be able to make some serious money soon.
I have recently bought our second building leveraging on the latest investment trend. Once the deal is completed, I will share with you what we want to do with the site. I am a bit nervous as this deal has exceeded S$100 million in investment quantum.
I am calling for a reunion for all my property students so I will see you next Monday.
Monday, September 6, 2010
Friday, June 25, 2010
Thursday, June 10, 2010
The stock and property markets seems to in a limbo at the moment. Good news on the domestic front with GDP growth forecasts of 9 to 11 percent is giving cheer. But the European economies, especially Greece and the other PIIG countries, are making people worried.
However, it is not the PIIG economies that should be keeping you awake. To put things in perspective, they are insignificant compared to the European giants. Thus the impact they have will not be that severe. The governments have also gotten much smarter in containing economic issues and taking measures to pre-empt major impact.
It is the China factor that is worrying me. The Chinese are coming here in droves and they are a significant source of demand for our private housing. They are also propping up commodity prices and the China markets will be a key story going forward in the next decade. The China government measures are starting to take effect but the developers are resisting any drop in prices as their landbank has been very expensively acquired.
What does this mean for you? I don’t expect prices to rise like they have in the last year. Many investors have already invested and I suspect the market will have to go through a period of consoalidation. What will support the markets will be the significant wealth effect created by the HDB increase in prices. Regional economies are also doing well and their nationals are still looking to invest in Singapore. These two factors will form a support base.
Whether you like it or not foreign demand is contributing to Singapore’s real estate demand. Many Indonesians, Malaysians, Thais especially the Chinese want a just in case option. This is my longest entry in a long time. I will be traveling to Ho Chi Minh City tomorrow to look at several properties there. Prices have fallen more than 50% since the last high.
Till the next time, take care my friends.
Thursday, June 3, 2010
Saturday, May 29, 2010
Wednesday, May 12, 2010
The first incident. I was thinking of Robin, one of my students from 3 maybe 4 years back. He emailed me to get together a couple of weeks ago but I was flying so much that I could not commit. I have a little time next week so I wanted to catch up with him. Immediately after I sent off the email, my PA gave me a package. It contained the latest issue of Prestige magazine where Robin was featured. It chronicles him as a young successful gentleman who has made his mark in the bath accessories industry at the tender age of 29.He was very kind to mention me as a source of inspiration.
The second incident. Immediately, after I received the package. Fu Chin emailed me back after a couple of email exchanges this morning. He finally sealed the deal for his first property. This was after a long search with a lot of guidance. I can understand that he must be feeling extremely delighted! His first property! He thanked me but really it is his hard work. The harder you work, the luckier you will get.
I am extremely pleased that I had played a small part in their lives. In fact, after this afternoon, I am a little more motivated to continue on my journey to enrich people’s lives. I cannot make everyone happy and shit occasionally happens, but guess what. You will appreciate the happy times if you have not been down and out before. So take heart and enjoy whatever life may throw at you. Don’t sweat the small things as they are the stuff that makes your success even sweeter.
Till next time, God bless!
Wednesday, May 5, 2010
I have always wanted to share with everyone how a turnaround of a company is executed. I have turned around quite a few firms but I have never attempted a public company. It will be interesting to see how everything develops. Shun Thai is a rubber products maker with manufacturing capabilities in Rayong. With the further development of our commodities real estate arm, getting them back on track is a logical solution. However, if I were to totally turn it around, it will mean taking time off from the existing ERC Group which has been growing by leaps and bounds.
I have always loved challenges but now, this will be real interesting. I really want your opinion, should I or should I not? I need your advice now my friends. All of you have my email address. What I do will be very public because as a listed entity, my success or failure will not escape public eye. Quite scary, come to think of it.
So email me now and advise me my friends, till the next time, take care.
Friday, April 30, 2010
It was such an arduous trip with many interesting events. Our friends in China had to prohibit my female colleagues from participating in a couple of events and all I can say is I am happy to get out intact.
The Chinese are so hungry and innovative, so much so that w better be on our guard. I had always to visit Wenzhou where some of the world’s greatest entrepreneurs reside. Even the famed Shanghai businessmen have to take their hats off to them. They are fearless and their camaraderie spirit is amazing.
They had to fend for themselves as they found that the land they were living on infertile and they had to go forth and started their own businesses. Wenzhou streets are piled with Mercs, BMWs and Porsches while the rest of the Chinese cities, you will find more domestically made cars.
Why am I sharing all this with you? The Wenzhou real estate investors are the REAL trend setters in China. They pioneered real estate booms in quite of the Chinese cities, and some of these places are far bigger than Singapore. And guess what, with the recent Chinese government crack down, they are less bullish on the mainland real estate potential. Little wonder, given that Wenzhou real estate is almost the same price and if not more expensive than Singapore.
Guess what, my sources just told me that these folks are coming to Singapore for a site visit as they find Singapore real estate ridiculously cheap for an international level city. So the Singapore government may meet its match if they want to cool things now, if these guys really move in.
Just a tip for you. Till the next time, take care, my friends.
All these new developments in the last 4 plus months! In the meantime, the education side is preparing for the paradigm in the education sector in Singapore. I am doing all these under the ERC lines of business. So I really, really beg for your forgiveness that I have not up to date with my postings.
I am so glad that many of you would have profited from the property boom thus far. My calls that the market will be ok and for you to focus on landed property were all spot on. I certainly hope that we can ride such trends together.
I am now in China, after visiting Shenzhen, Guangzhou, Wenzhou, Xian and I am so glad to be back Singapore soon. Before leaving, I was a bit skeptical and worried that the Chinese government’s measures to cool mainland real estate will impact Singapore as Chinese buyers are a force to be reckoned with as they are quite aggressive buyers of properties in Singapore. Plus the whole Greek episode really got me thinking.
In my next posting, I will share what I discovered during this trip. Until then, take care and God Bless, my friends.