How is our property market doing this year?
Our property market is experiencing a cooling and slowdown this year. This is partly contributed by the uncertainties in our economy, the measures introduced to curb the growth of household debt and the introduction of a goods and services tax (GST).
I guess almost everyone know those facts. What we want to know now what does it mean to the residential market?
It means, in this situation, it is very likely that we will have more sellers and fewer buyers in the market. As you know, our capitalist market works on the basis of supply and demand. More demand will drive the price up. Less demand will suppress the price down.
Does it mean the market will crash?
I do not have the crystal ball to tell you exactly what will happen next. However, by looking at our country’s demographic, estimated GDP, low unemployment, the strength of our banking system, among others, I believe our property market still has the ingredients to remain resilient.
How will this affect residential market?
Developers and investors need to adapt to the changes in the market. This is the time for developers and investors to really listen and understand the needs and demand of the market. When time was good and demand was high, developers can easily sell off their projects within a relatively shorter period of time. There are cases where buyers were willing to line up for hours and go all out for the limited stocks that were available.
When the demand is low like now, developers need to put more effort and be more creative in order to create and sell products that resonate well with the current market.
We have lesser demand? Does it mean we have oversupply of property in the market?
It is strange that when the general sentiment is market is flooded with the supply we still hear news of people in certain segments complaining that they just cannot find property which they can buy.
I believe we need to put it in the correct context.
Oversupply has to be properly defined in term of in which areas, in which certain segments, at which price range, which certain category of property and in which certain target market of buyer and tenant.
In the nutshell, do not generalize and do not treat it like the whole property market is suffering from oversupply. Deep understanding of the market is required if you want to be a professional investors.
What shall I do to prosper as property investor in this trying time?
If I can give some suggestions to anyone and everyone who wants to create wealth through property investment in any market and any place, it would be:
Key 1: Understand what Property Investment is all about. Realize that it is more than just a hobby. Decide to get serious and be a professional investor.
Key 2: Keep yourself educated with the latest Property Investment knowledge and learn the latest strategy that suits you and the current market. Equipped yourself with the latest tools to do well in the current market.
Key 3: Get yourself a team and network that can help you in your investment journey. Good team goes a long way to keep you going when the time is tough. When negotiating, numbers can do wonders.
Key 4: Find the property that suit your strategy, do the due diligence, negotiate well and if it is within the parameters you set, invest.
Key 5: Reap and appreciate the result and repeat key 4 till it bring you to your end goal.
Now that you know about the 5 keys to create wealth through property investment in any market and any place. Would you want to learn more on how to make more money from buying & selling developers’ projects in 2015?
Come and meet Rachel Lim, Queen of Flip Strategy in “Flip Your Way To Riches” Workshop on 25th Nov 2015 & learn from her on how to make your millions through buying and selling properties at any time. Click here to find more!