Customer

Tell me Agent, is the market that bad? How come my property can’t sell?

Agent

To put it in proper perspective, the market fundamentals are still good with all the excitements coming up in 2010 and beyond. But within the next six to nine months [up to mid-2009], the property market will not be able to absorb more than 30,000 new condos and condos receiving their TOP*. In fact, by 2012, there will be a total of 67,736 new condo/apartments to be sold by the developers. (See [B.2.(a)] for figures)

Up to now, out of the 67,736 potential supplies, 42,685 units are still not sold yet. In a boom year, the market can take up to around 20,000 new condos/apartments a year; but 2008 cannot be considered a good year as far as the property market is concerned.

The truth is, with the figures openly available to all potential buyers, I don’t think any buyers in their right mind will rush in now. They are right now window-shopping.

Customer

But my house is unique you know! You must tell those people who call you that they cannot find another house to match mine in terms of quality and potential.

Agent

Yes sir, I agree with you. You house is unique. Not everybody can spot the value when they are spoiled with so many available CHOICES in the market right now.

I have to persuade them to come and view the property. Many of them decided to give our listing a miss due to the high asking price. The buyers have their own idea which way the prices are going to move in the short term. Which direction do you think the price will be moving towards in the next 3 to 6 months? Up or down?

Customers

Of course the price is moving up! [Sellers will go on and on to explain to agents how the Youth Olympic, F1 night grand prix, Singapore Flyers, the casino will stimulate property prices to go higher]

Agent

I agree with you sir. These factors are good factors that will bring Singapore economy to the next level in the medium term of 3 to 5 years; and there will be plenty more foreigners of high net worth coming to our country and contribute to our economy.

But sir, do you realise that when luxury properties in Singapore are concerned, we are already ranked the 8th most expensive country in the world? Therefore, with every dollar available for investment in this region, a shrewd investor will choose among Shanghai, Mumbai, Ho Chi Min, and even the United States. Interestingly, when the US recovers in 3 to 5 years’ time, it will definitely lure back all the investment monies from this region.