Why? Many have bought horribly expensive homes at sub-urban areas. Developers have sold these homes at ever increasing prices. They have to as they paid the government ever increasing land prices in the government land sales program as many HDB upgraders fall over themselves. Guess what the party will have to end eventually. The government is removing demand for HDB by imposing curbs on foreign workers, thus rental yields will fall. Add the recent measure to prevent recent PRs from owning their flats, this is very effective to remove demand thus a double whammy. We have witnessed falling COVs and this is just the beginning. If not managed properly, the whole residential property situation can prove to be a bloodbath. I sincerely hope that the improving global economy will buffer the situation as an economic slowdown now will be an absolute party pooper.
I am writing this blog from an airplane after visiting our local operations and seeing quite a few sites there. I am now actively looking at regional opportunities and am frankly amazed by the many great sites available. We maintain a strict investment regime. We mainly invest for our own real estate requirements and do not speculate. Such investment discipline has served us well, as own use assets will enable us to ride out the cycles.
I am maintaining this blog on a casual basis thus the number of thoughts is limited but I will be more active if there are more people liking what I’m doing. So do like my blog and encourage me to share my thoughts please. Till the next blog, take care and God bless!
Your FriendAndy Ong