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 Friend
Andy Ong10/09/13