Hi guys, Im just back from China where I just finished a 3 city tour and I will be departing for Vietnam tomorrow. It’s a bit hectic but that is life for those who have to continue on the path of growth. I came back from Fuzhou where my grandpa came from 3 generations ago. It’s a lovely place, one of the few rare Chinese cities where I actually would visit again on vacation.
Its Halloween today but property prices in Chinese cities have been haunting buyers. The Chinese government has been trying to rein in the rapid rise in prices and they have finally succeeded after developers resisted attempts. The previously cash rich developers ran out of bullets and have to get rid of some stocks to raise cash.
Prices in the core city areas have held up but sub-urban and rural towns have seen declines of up to 30 to 40%. This is happening all over China. In fact, some property buyers were furious and are trying to demand their money back as developers lowered prices on developments that they purchased. They are demonstrating quite aggressively but the developers are staying put.
Given that Chinese buyers is a key buyer of Singapore property, one should be concerned. In the last couple of years, developers like Far East have marketed their properties direct to Chinese buyers rather pro-actively. The Chinese have lapped up Singapore properties as the amount invested actually enhance their chances of getting permanent residency.
The Singapore government recently revised this policy and property purchases now are not included. Add the fact that their home markets are being affected, this two factors might impact demand from Chinese buyers. I will share my opinion of the overall impact on Wednesday’s Success Forum. See you then.
I received the following email from Eddie recently and it has certainly boosted my mood and enthusiasm to share. Its people like Eddie who really encourage me to continue to share to create wealth and I wish you guys all the best in the year ahead, HUAT AH!
Keep it short, PIP student, 15th intake. Just to share with you, took your advice and bought a unit at D10, Villa Azura, 6th Ave. for a price of 848psf in Mar 2011. Now worth more than 1250psf. Just got back from overseas and realise made more than 500K in about 6mths.Wow! 157% profit. Kam Sia!
Thanks and regards
Till the next blog, take care and God Bless.