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Monday, September 17, 2012

The Perfect Storm and More Cooling Measures…

I just finished teaching my latest property class and even though it is very satisfying, I am quite tired. I shared with my class my latest perspectives. It has been a long time since my visibility has been so clear. I have emphasized many times over that the property prices in Singapore is liquidity driven. With Ben Bernanke pledging to keep interest rates low till 2015 and introducing QE 3. The advanced countries are all trying to print money to get out of their current economic glut. Hey you cannot blame the guy; Romney said he will get Bernanke out if he becomes president. As late as the measures might be, it is better than never.

I will be very surprised if property prices dip in the light of this development. I am now anticipating a 10 increase by end of year and another 15 to 20% increase for certain asset classes. My previous predictions have had rock solid returns for you guys so you might want to act and not miss out. The early bird catches the worm!

Why the optimism? I was initially hesitant as our economic numbers have not been rosy. However beyond the money tsunami, China, Indonesia and Malaysia are all experiencing political changes within their own countries. China will be witnessing a changing of the guard. Indonesia and Malaysia will have messy elections. Over 100 political parties are vying for seats in Indonesia! And UMNO will be witnessing its toughest challenge since its foundation. Quite a few of their citizens will be making alternative plans just in case. These countries’ citizens are amongst the largest groups of investors in Singapore. Their enhanced presence will certainly make an impact on prices very soon.

Witness the $1million HDB flats. Not one but several of these transactions have made deadlines. It seems that many smart people have made moves. It seems that the latest QE has already caught Asian government’s attention. Hong Kong has announced more cooling measures and you can look forward to Singapore introducing more as well. Don’t say I did not warn you in advance!

Today is a special day as I am officially taking over the House of Tan Yeok Nee. The property was featured in the Sunday Times a couple of weeks ago and quite a few of my friends were surprised how lovely the property is from the inside. I am looking forward as it was a childhood dream to own this site as I cut my hair at nearby Park Mall when I was a kid. Dreams can come true after all. I am just blessed that I have the opportunity to realize mine.

I will be leaving for the US soon… sighs. I hate the jet lag but I have no choice and work calls for it. I am not looking forward to the 20 hours flight. But what has to be done has to be done. I am looking forward to meeting Jackson, my old uni mate to discuss his portfolio. It is not everyday that you get to meet friends in foreign land as far away as the US.

Till the next entry, all the best and God Bless!

Your Friend,
Andy Ong
17/09/12