So many questions prospective clients ask me these days..
Is this the best time to upgrade? YES! For those aspiring for private properties, this is a great time to get into the market. You probably won’t get the kind of prices like $300+psf many years ago when the Executive Condos were launched but nevertheless, don’t skip this opportunity if you can. Prices are still below the current condo prices and sometimes ,even bigger and better(Trilliant comes to mind)
Is the best time to downgrade? YES! for those wanting to make some cash, houses sold are at a all time high,because of high valuation. And COVs are also on a ll time low. Houses in Punggol have gone as low as $10,000 COV. So what it means is that when you downgrade, you may be able to get positive profits. Whicb can be used to buy your second property ,possibly in the commercial industry. Also it can also be used to purchase a smaller home, and take a smaller loan,or even pay off completely for your home.
Is it the best time to sell! Yes!! In the next few years prices of homes will be stabilized, and the profit margin will be lesser, than it is now. Just 3 months ago, one can get as low as $45k as COV , but the same houes can problem get $10-20k now as COV. Quiet a significant drop, albeit valuation has increased. Wait any longer, and it will not yield the kind of profits you get TODAY
Does that mean you need to put off buying? Well, only if you want to pay more or wait for 3-4 years later where price would stabilize. Rental is all high now still so what you put off, you will end up still paying more. So YEES, it’s the best time especially if the COV is much lower now than before.
Until the valuation and the COV price meets where prices will be stabilized, that will take about 4-6 years time. Notwithstanding the fact we may be facing a recession, one thing that can be said to be true about Singapore property, is that prices are quite stable, and even if there’s a dip, it won’t go back to the previous lows. Luxury condos, that are distressed will be the best bet, that is if you can afford it. Commercial properties will be the next hot “bubble tea”, so hope on and strike while the iron is hot. You probably won’t get properties starting from as low as $300k in the near future.
Disclaimer: These opinions are solely based on the author’s reading of the current market and doesn’t consult the stars to predict the future, but rather a fair assessment of the current market