Wednesday, October 10, 2012

Cooling measures as predicted, what ahead?

The government acted a few days ago to further dampen the property market. By making it difficult for people to take up longer loan tenures, they hope to dampen demand. With the US making additional US$40 billion available every month, and definitely some of that money will flow in to Asia, asset inflation is almost certain. I am of the opinion that the latest measures will have very limited impact given the environment we are. We will need more targeted measures focused at the heart of the problem. I know of buyers who are actually panicking right now, and are frantically looking at any available opportunity. However, they are always worried about timing.

For those of you like Meng Gee who are able to nab assets before financing becomes more difficult, congrats to you. He was very nice to send me a message on my Facebook thanking me. It has been a very fulfilling journey sharing with so many people a very different perspective to property investment. The feeling of seeing so many of you making money from your property acquisitions is actually quite indescribable.

The future is rather interesting. The market is looking very firm. With so much cash flowing this way, everybody has problems parking their money. The property market will prove to be resilient, and the low interest rate environment may boost it further. International money is still coming in and they are in deposits waiting for a longer term home. Quite a few of our neighbours’ money have been flowing in as well. For example, Indonesian money have been flowing this way and they are trying to enhance yields beyond the miserable point something percent offered by Singapore Dollar deposits. The Indonesians are very skeptical of political changes and the next election will be interesting to note. I will be going there tomorrow to take a look and to say hi to our business partners over there. I will update you further when I am back.

The enbloc fever is starting to stir again as developers are replenishing their land bank and paying up to do that. For those of you who have been snapping up enbloc properties as suggested, good news for you. However, look at quality sites that make sense. You might want to look at the Arcade, as there are rumors that they are going enbloc and just a few signatures away from the 80% mark. You know what to do.

I am busy working on potential long term acquisitions. I am looking at not only local but overseas opportunities interestingly; quite a few of you have been tracking my movement. I will be making my next briefing and share my views with you on the 19th of November. My guys have worked very hard to secure a venue. The maximum capacity is 500 and I convey my apologies to those who cannot get seats in advance.

Please respond to my guys once you get the invite.

See you and till then, God Bless!

Your friend,
Andy Ong