#11 – Retiring with a $1,000,000 investment portfolio ! Sufficient?

Welcome back to another one of our Sofa So Good episodes! Today, we have a familiar face, Eric, the founder of Credit Savvy, together with Melvin and they will be touching on macro and micro economic trends affecting the property industry. With current events like rising interest rates and the Ukraine war, is it wise to time the market of your property? As property prices continue to rise, how will the property landscape change? Will Singapore’s property prices fall? Come find out more as PropertyLimBrothers take you on a laid-back session of rising interest rates, cooling measures and more, on this episode of Sofa So Good with Melvin and Eric.

You can also see our video on this topic!

Our Author/Guests

Melvin Lim

Melvin Lim is CEO and co-founder of PropertyLimBrothers Team (PLB Team) ‚Äď a leading real estate team in Singapore that serves its clientele and projects with unique crafted content and marketing and advertising campaign.¬†

Eric Chiew

Eric Chiew managing director and chief trainer of Credit Savvy Group. He has trained and helped more than 1,500+ students build a healthy property portfolio for legacy. 

Transcript

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– But your spouse say no.

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That’s the end of your journey.

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This part play the sad song.

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Great. All right!

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So welcome back to our next episode of Sofa So Good.

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So today we have our guest back in the house

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of our PLB studio, so welcome back Eric.

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Thank you everyone.

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All right, so

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– Thanks for inviting me back, thank you.

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How have you been since our last published episode?

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I hope that you loved the episode

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that we did about a few months ago so.

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Six months already, time flies.

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But then six months changed a lot, man.

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The property market like it’s so different from the days.

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The question that you asked me previously.

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Yeah.

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So everything has changed.

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I just did a last check just now.

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So as we were going through

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I think the last one we answered

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close to about 28 different kinds of micro topics.

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Come on. Give me more, man.

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Those are simple questions.

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I need more challenging ones.

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All right. All right.

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Are you ready for today?

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– Always ready, man.
– Okay, great.

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Especially for you, Melvin.

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– Great, okay.
– Come on. Let’s go!

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Okay, maybe before we start,

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I think some of our audiences are also curious about what you do,

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because we have done two episodes with you.

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Yeah, so maybe you can share a little bit

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about your consulting business.

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Okay, actually previously,

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I do a lot of face-to-face seminars.

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Basically, I teach people how to make money

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through property investment.

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So after COVID, then we do a lot of online programs.

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Right.

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Then right now I do have a lot of people

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coming to me straight for consultation.

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We don’t have that much consultation previously.

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Right.

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So maybe COVID, some people

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don’t want to waste their time,

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like, “Oh, I still need to go through the program.”

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Then after that still need to come to me

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for one-to-one consultation.

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“Just go to Eric.”

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So right now I was telling my wife,

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“I think for this year, more or less, we’ll be full-time

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like doctors. Yeah.

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I’ll be sitting in the room.

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So we have people coming in one by one, one by one.

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Yeah, so consultation business,

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I have more people coming to me directly.

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Because most of them, they do not want to wait.

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Right.

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Yeah. Some of them, they have been waiting too long.

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They think that they have wasted so many opportunities

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whereby if you compare just even six months ago,

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wow you have people who bought six months ago

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compared to now,

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you have already made at least minimum $100K lah.

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But we say the higher range,

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I see people making $300K, $400K,

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just for a 3-bedroom condo.

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The market has changed, I would say quite tremendously,

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over the past couple of months.

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Yeah.

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Eric, what do you think

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about the most recent cooling measure, 16 December 2021?

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I think that was about 1.5 months after we spoke,

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the latest cooling measure came out, TDSR became 55%.

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ABSD increased.

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I was thinking like,

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“Oh, the cooling measure so fast.”

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Okay. I remember there are three cooling measures.

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The real impact is the first one

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whereby the TDSR from 60% become 55%.

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So you do some math.

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It’s about 8.3% change in your affordability.

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So if previously you can buy a $1.2 mil (property),

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so based on the new TDSR 55%,

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it’ll become your new affordability

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will be around $1 mil to $1.1 mil, around there.

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Okay, but at least this is not so impactful

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to the last cooling measure whereby the LTV,

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which is the maximum loan whereby they drop from 80% to 75%.

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This is just TDSR decrease so 55%,

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means you can still take up to 75% loan.

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But however right now,

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if your income can’t hit that 75% loan,

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you can show funds lah,

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which I think a lot of people,

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they are still quite surprised.

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They’ll be like, “Oh, you mean I have cash,

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I have stocks portfolio,

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I can show the bank to increase the loan?

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Yes, you can. So there are two ways lah.

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As we all know, one is to pledge.

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Which means

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you need to put all the money in the bank for four years.

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The other one is to just to show the banks.

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Yeah so of course my method

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is always to best to show the bank

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because putting the money in the bank for four years

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is wow, very long.

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Yeah, I mean opportunity cost. Four years is a long, long time.

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Yeah. We’re talking about unpledge lah.

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Yeah, so I always do the unpledge.

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Or my advice for people is usually the unpledge.

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Yeah.

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Based on your observation, since 16 December until today,

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do you feel any impact on the market?

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Yeah, so I remember at that time, during our episode,

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the cooling measure was not out yet.

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That was November that we had done this.

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So the cooling measure is in December.

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So we thought that having cooling measure

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will somehow tone down the market a bit,

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especially the resale market.

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After that, who knows?

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Yeah after like what? December went up.

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After cooling measure went up, January went up,

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February went up, March went up,

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even now a bit, it still went up.

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Right.

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And this period, we also have the Ukraine war.

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Yeah.

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So I thought that, “Hey,

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maybe it will somehow soften a bit.”

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But I see that there’s only the asking price by the sellers,

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which is softened.

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Right.

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But the transaction price is still up.

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Do you observe that it has softened,

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– in terms of asking prices?
– Yeah. Yeah.

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Sometimes, usually I will check PropertyGuru

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if I want to buy a property.

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If you look at market transacted price.

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Right.

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Let’s say the market transacted price

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is about $1.5 mil.

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The asking price is usually higher.

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This is our Singapore culture lah, we will ask higher price.

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We will let the buyer to negotiate lower.

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Then we transact at the transacted price.

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So when you buy a property, always look at market price.

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You don’t look at asking price and you are, “Ugh,”

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feel very affected by, “Oh, why so expensive?”

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So you don’t look at asking price.

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Asking price is just an asking price.

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Yeah.

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So always look at transacted price.

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So going back, if the transacted price is about $1.5 mil,

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I saw people are listing like, “Oh $1.88 mil.”

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That was before the war.

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$1.75 mil. That is a bit crazy lah.

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So I call this “Not sincere sellers” lah.

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I mean if you’re sincere, you are just trying your luck

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because all sellers know

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that it’s transacted about $1.5 mil

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During the war, I see that transacted price,

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the asking price can be as low, like $1.58 mil.

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– It’s quite decent.
– So you noticed

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there was a readjustment

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in terms of more hopeful expectations?

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Yes, yes, yes.

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Okay.

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Yeah. Yeah.

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Because previously for a lot of buyers

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who see such high price, they will be turned off.

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And it’s like,

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“Oh yeah. I don’t think I’m able to buy a property anymore.”

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Right. Right.

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And we just did an episode and based on our research team.

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Mm hm.

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We found that this year in 2022

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is actually quite interesting

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because there’s close to about 10 different kinds of things

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that are happening at the same time.

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So for example,

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starting of mid of last year, tech stocks has dropped.

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Yeah okay.

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Then of course, now we have the Ukraine war.

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Then you have the cooling measures.

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Then now, the interest rate

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– Yeah, interest rates.
– Which today,

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there was the latest news

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maybe just to pick your brains a little bit.

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So today’s latest news is that this rate hike

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is the biggest increase since year 2000.

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That means in the past 22 years,

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– this is the biggest increase.
– Today uh?

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– Today, today.
– I haven’t read the news eh.

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Today, I only prepare for your Sofa So Good.

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It’s okay. It’s okay. It’s nothing new.

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It’s just that after the latest Fed meeting, this happened.

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This is confirm lah.

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So I also understand just now before our recording,

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is that a lot of your so-called participants

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have been asking about your viewpoint

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on interest rates increase this year,

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so maybe share a little bit about what you think.

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Yeah I think not only they are worried

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about the price increase lah.

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Right now we have the interest rate increase

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and this is the second time, I think this is the second,

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if they are going to increase again, this is the second time.

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But I saw that there’s this article whereby they say

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that they’re going to increase six times a year.

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Yeah.

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So they are on track.

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Yeah.

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But however, when people ask me about interest rates,

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it’s something that we can’t control.

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This one, we need to know.

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Interest rate, you can’t control,

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but you can only control what you buy or what you do.

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Right.

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So if you can’t control things that you cannot control,

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then focus on things that you can.

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Example, buy the right properties lah.

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If you think the new launch is too high,

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then how about resale market?

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There are a lot of resale condos

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where they are growth areas.

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So these are things whereby they should focus on

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and not only interest rates, and talk about

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increasing interest rate.

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Right now, I think fixed rate is about 2%.

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Most of the banks,

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some of banks they’re so smart.

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They take out fixed rate interest rate.

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You don’t see that happening last time mah.

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Yeah.

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So this time,

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it’s like the bank think that “Aiya, I give you a fixed rate.

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I bo hua (not worth) eh.

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Not worth it.

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I will just give you floating rate

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because there’s a lot of uncertainty

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for the bank to give you fixed rate as well mah.

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So even if you talk about floating (rate), it’s about

249
00:07:55,200 –> 00:07:58,440
Okay I may be wrong, but maybe about 1.1%, 1.2%.

250
00:07:58,440 –> 00:08:00,400
But it’s a gamble because you do not know

251
00:08:00,400 –> 00:08:01,760
how high the interest rate will go.

252
00:08:01,760 –> 00:08:03,920
But to me, I just guess, ah.

253
00:08:03,920 –> 00:08:05,880
You don’t take my word seriously. I just guess.

254
00:08:05,880 –> 00:08:07,040
This year floating rate,

255
00:08:07,040 –> 00:08:09,720
I don’t think it will still go up to 2%.

256
00:08:09,720 –> 00:08:12,680
Yes, fixed rate is about 2%, maybe 2%+.

257
00:08:12,680 –> 00:08:16,240
But floating, I don’t think it will go more than 2%.

258
00:08:16,240 –> 00:08:18,560
So even at 2%,

259
00:08:18,560 –> 00:08:20,960
I think it’s still okay because everyone come on.

260
00:08:20,960 –> 00:08:25,000
– You also pay your HDB loan like 2.5%?
– 2.6%, yeah.

261
00:08:25,000 –> 00:08:26,800
2.6% for 20, 30 years ah.

262
00:08:26,800 –> 00:08:27,640
Yeah.

263
00:08:27,640 –> 00:08:28,480
And right now yes,

264
00:08:28,480 –> 00:08:29,640
interest rate is increasing

265
00:08:29,640 –> 00:08:31,880
and actually our mindset towards interest rate

266
00:08:31,880 –> 00:08:34,560
should be right now is very low.

267
00:08:34,560 –> 00:08:36,280
So this is a bonus for us.

268
00:08:36,280 –> 00:08:38,480
But a lot of people thought that, we are all Singaporean.

269
00:08:38,480 –> 00:08:40,320
We will think that, “Hey, this is the norm.

270
00:08:40,320 –> 00:08:42,920
Anything above 1.5% is very high.”

271
00:08:42,920 –> 00:08:43,760
Yeah.

272
00:08:43,760 –> 00:08:44,600
So this is a wrong mindset

273
00:08:44,600 –> 00:08:47,720
because I think a healthy interest rate is about 2%+.

274
00:08:47,720 –> 00:08:48,680
So if you’re at 1%+,

275
00:08:48,680 –> 00:08:51,000
you should, “Eh, we should celebrate mah.

276
00:08:51,000 –> 00:08:52,160
Eh wah very cheap mah.”

277
00:08:52,160 –> 00:08:54,760
But a lot of Singaporean cannot take it, increase

278
00:08:54,760 –> 00:08:55,600
like 0.5%.

279
00:08:55,600 –> 00:08:58,920
“Aiya!”, like the clouds coming down. Yeah.

280
00:08:58,920 –> 00:09:00,000
Yeah, so okay.

281
00:09:00,000 –> 00:09:02,960
Interest rate, it don’t really impact a lot.

282
00:09:02,960 –> 00:09:05,640
So it still comes back to if you buy a good property,

283
00:09:05,640 –> 00:09:08,120
if you get a good entry price for your property,

284
00:09:08,120 –> 00:09:11,040
that is more important than your interest rate.

285
00:09:11,040 –> 00:09:11,880
And interest rate you can’t control.

286
00:09:11,880 –> 00:09:14,600
– So, because the main kind of,

287
00:09:14,600 –> 00:09:16,440
I would say fear that a lot of people have.

288
00:09:16,440 –> 00:09:18,720
In fact, this is like a global trend.

289
00:09:18,720 –> 00:09:20,280
Global trend based on economics

290
00:09:20,280 –> 00:09:22,040
is that whenever interest rate increase.

291
00:09:22,040 –> 00:09:25,320
Of course, interest rate increase it signals that the government

292
00:09:25,320 –> 00:09:28,120
is having that kind of whether fiscal or monetary policy

293
00:09:28,120 –> 00:09:29,560
that the economy is improving.

294
00:09:29,560 –> 00:09:30,400
For example,

295
00:09:30,400 –> 00:09:31,680
the reason why Federal Reserve,

296
00:09:31,680 –> 00:09:33,080
the Feds wants to increase interest rate

297
00:09:33,080 –> 00:09:34,400
is to fight inflation, right?

298
00:09:34,400 –> 00:09:36,600
However, because when interest rate increase,

299
00:09:36,600 –> 00:09:38,680
mortgage rates increase.

300
00:09:38,680 –> 00:09:40,640
Then the U.S., there’s this very special thing

301
00:09:40,640 –> 00:09:43,760
called a 30-year fixed rate, that kind of thing.

302
00:09:43,760 –> 00:09:45,680
So usually globally people will think

303
00:09:45,680 –> 00:09:48,000
that interest rate increase means reduce in purchasing power

304
00:09:48,000 –> 00:09:50,680
because the monthly instalment increase mah.

305
00:09:50,680 –> 00:09:52,520
Then your interest you have to pay to the bank increase as well.

306
00:09:52,520 –> 00:09:54,200
By that it means a reduction

307
00:09:54,200 –> 00:09:55,680
in your purchasing power as well.

308
00:09:55,680 –> 00:09:56,960
Correct.

309
00:09:56,960 –> 00:09:58,840
Yeah, then it might lead to a fall in demand

310
00:09:58,840 –> 00:09:59,680
for real estate.

311
00:09:59,680 –> 00:10:01,400
Yeah. I think for some quantum, yeah.

312
00:10:01,400 –> 00:10:03,960
There’s still a sweet point for people to buy in.

313
00:10:03,960 –> 00:10:05,000
Yeah.

314
00:10:05,000 –> 00:10:07,280
It’s still managing on the property price that you buy.

315
00:10:07,280 –> 00:10:08,240
So don’t overbuy.

316
00:10:08,240 –> 00:10:10,200
Maybe just to share this.

317
00:10:10,200 –> 00:10:11,280
Yeah. We’ll put in the video as well

318
00:10:11,280 –> 00:10:13,760
so there’s this research by Morgan Stanley.

319
00:10:13,760 –> 00:10:15,200
I think it’s a 2018 one.

320
00:10:15,200 –> 00:10:16,680
So the very interesting thing about Singapore

321
00:10:16,680 –> 00:10:18,320
is that the past five rounds,

322
00:10:18,320 –> 00:10:22,000
and actually now this is going to be the seventh round

323
00:10:22,000 –> 00:10:23,920
of interest rate increment.

324
00:10:23,920 –> 00:10:24,720
Mm.

325
00:10:24,720 –> 00:10:26,280
Yeah so I think the very interesting thing

326
00:10:26,280 –> 00:10:28,320
to note is that will this round of increment

327
00:10:28,320 –> 00:10:30,240
actually cost price to go up?

328
00:10:30,240 –> 00:10:32,760
Because the last five to six round,

329
00:10:32,760 –> 00:10:34,120
out of which there’s only one round,

330
00:10:34,120 –> 00:10:35,440
which was the Asian Financial Crisis

331
00:10:35,440 –> 00:10:37,200
that when interest rate increase, price drop.

332
00:10:37,200 –> 00:10:38,080
But the rest,

333
00:10:38,080 –> 00:10:40,160
when interest rate increase, actually price increase.

334
00:10:40,160 –> 00:10:41,800
So actually don’t look at interest rate.

335
00:10:41,800 –> 00:10:43,360
Interest rate is not the…

336
00:10:43,360 –> 00:10:44,360
– It’s not the only factor.

337
00:10:44,360 –> 00:10:45,520
Yeah, it’s not the only factor.

338
00:10:45,520 –> 00:10:47,640
So, I mean, this is one of the main concerns,

339
00:10:47,640 –> 00:10:50,720
but this episode is to tell you, this is not the concern.

340
00:10:50,720 –> 00:10:51,960
Yeah. I think Singapore is different lah.

341
00:10:51,960 –> 00:10:54,920
We also have an article on our Insights page.

342
00:10:54,920 –> 00:10:57,000
Basically, it talks about the fact that

343
00:10:57,000 –> 00:10:58,640
in Singapore it’s really vastly different

344
00:10:58,640 –> 00:11:00,480
because we have so many different factors

345
00:11:00,480 –> 00:11:03,520
that sort of built that moat around our property market.

346
00:11:03,520 –> 00:11:07,480
So somehow our interest rate vis-a-vis property price index

347
00:11:07,480 –> 00:11:09,240
does not really behave in accordance

348
00:11:09,240 –> 00:11:11,160
to how global trends behave lah.

349
00:11:11,160 –> 00:11:12,000
Perhaps, maybe in the U.S.,

350
00:11:12,000 –> 00:11:14,240
I think it might have impact and things like that.

351
00:11:14,240 –> 00:11:17,440
But there’s also one very interesting thing is that today,

352
00:11:17,440 –> 00:11:19,760
when I was driving down to the office,

353
00:11:19,760 –> 00:11:21,880
just listening to the news and they were saying that

354
00:11:21,880 –> 00:11:24,760
this is also a bit different from the previous round

355
00:11:24,760 –> 00:11:27,240
because now that it’s so in sync, right,

356
00:11:27,240 –> 00:11:30,280
with the relaxation of COVID measures that this year,

357
00:11:30,280 –> 00:11:33,160
although purchasing power for existing homeowners

358
00:11:33,160 –> 00:11:36,040
with maybe a flexi rate, they might see an increment

359
00:11:36,040 –> 00:11:37,440
in their monthly instalment,

360
00:11:37,440 –> 00:11:42,280
but businesses in certain sector example like F&B example

361
00:11:42,280 –> 00:11:44,880
in some of the businesses that will benefit

362
00:11:44,880 –> 00:11:47,560
from the opening up, it might then spur on the economy as well.

363
00:11:47,560 –> 00:11:50,160
So I think there’s sort of a balance and things like that.

364
00:11:50,160 –> 00:11:52,360
Okay, going back to the Black Swan event,

365
00:11:52,360 –> 00:11:54,400
we talked about the few things and of course,

366
00:11:54,400 –> 00:11:57,160
there’s this one thing that’s called energy crisis,

367
00:11:57,160 –> 00:11:59,800
as well as the global food crisis,

368
00:11:59,800 –> 00:12:02,080
as well as I think the most recent one

369
00:12:02,080 –> 00:12:04,120
that I’ve been hearing from some of our builders

370
00:12:04,120 –> 00:12:05,840
for landed properties is that they talk

371
00:12:05,840 –> 00:12:09,960
about steel increasing in price, aluminium, concrete,

372
00:12:09,960 –> 00:12:12,520
even a lot of different kinds of materials

373
00:12:12,520 –> 00:12:15,000
that are involved in the construction of landed properties

374
00:12:15,000 –> 00:12:17,440
increase in some single or double digit.

375
00:12:17,440 –> 00:12:19,440
Based on this, construction costs

376
00:12:19,440 –> 00:12:23,320
is one of the key major kind of concerns,

377
00:12:23,320 –> 00:12:26,280
which recently, I think just in the past two weeks,

378
00:12:26,280 –> 00:12:29,360
there’s a lot of news about construction cost pressure.

379
00:12:29,360 –> 00:12:31,680
What do you think will be the implication

380
00:12:31,680 –> 00:12:35,480
for our next generation when it comes to real estate prices?

381
00:12:35,480 –> 00:12:36,560
Do you think it’s a, I mean like

382
00:12:36,560 –> 00:12:38,560
sometimes when we think about it right, if

383
00:12:38,560 –> 00:12:41,320
let’s say example, now I’m like a 20-over year old,

384
00:12:41,320 –> 00:12:44,360
just graduated, then I work maybe a few years,

385
00:12:44,360 –> 00:12:47,320
but it’s getting harder to store up the first down payment.

386
00:12:47,320 –> 00:12:48,160
Yeah.

387
00:12:48,160 –> 00:12:49,000
Yeah.

388
00:12:49,000 –> 00:12:50,880
So what do you think about this trend?

389
00:12:50,880 –> 00:12:52,440
Is it healthy for our next generation?

390
00:12:52,440 –> 00:12:53,280
Ah, very good, okay.

391
00:12:53,280 –> 00:12:54,120
Yeah.

392
00:12:54,120 –> 00:12:55,120
Okay, we talk about the construction costs first lah.

393
00:12:55,120 –> 00:12:55,960
Yes.

394
00:12:55,960 –> 00:12:58,920
I actually got my landed during COVID.

395
00:12:58,920 –> 00:13:03,160
So I got a quote of this amount,

396
00:13:03,160 –> 00:13:05,240
and we were thinking like, “Ah, okay.

397
00:13:05,240 –> 00:13:06,120
No choice mah.”

398
00:13:06,120 –> 00:13:08,800
And that was already at the low side, I mean pre-COVID.

399
00:13:08,800 –> 00:13:11,920
Okay. We are getting about $320 PSF to $350 PSF.

400
00:13:11,920 –> 00:13:12,800
Yeah.

401
00:13:12,800 –> 00:13:16,080
So at least we have a number to justify the increase.

402
00:13:16,080 –> 00:13:17,240
Now there’s no more this price already.

403
00:13:17,240 –> 00:13:18,400
Oiya this…

404
00:13:18,400 –> 00:13:20,520
Okay. So right now it’s 30% more.

405
00:13:20,520 –> 00:13:23,800
So you are at least $400+ PSF

406
00:13:23,800 –> 00:13:26,960
just times according to the size and your GFA lah.

407
00:13:26,960 –> 00:13:28,960
So you’ll see that because mine is a detached

408
00:13:28,960 –> 00:13:31,520
so the increase is $600K/ $700K.

409
00:13:31,520 –> 00:13:32,840
– In the construction costs.

410
00:13:32,840 –> 00:13:33,680
– Yeah.
– Yeah.

411
00:13:33,680 –> 00:13:34,560
When me and my wife was like,

412
00:13:34,560 –> 00:13:35,920
“Wah, struggling.” It’s like “Wah.

413
00:13:35,920 –> 00:13:40,000
Another $600K/ $700K”. And $600K/ $700K is actually the cost

414
00:13:40,000 –> 00:13:41,320
to build another basement.

415
00:13:41,320 –> 00:13:43,080
So right now we have no more basement.

416
00:13:43,080 –> 00:13:44,240
Right.

417
00:13:44,240 –> 00:13:45,080
And you need to pay another $600K/ $700K.

418
00:13:45,080 –> 00:13:45,920
Yeah.

419
00:13:45,920 –> 00:13:48,640
So when we are signing it, before we signed it,

420
00:13:48,640 –> 00:13:51,000
the builder say, “Actually this haven’t include GST eh.”

421
00:13:51,000 –> 00:13:53,200
Wah, śúČGST, another 7%.

422
00:13:53,200 –> 00:13:55,320
That’s another almost $200K there.

423
00:13:55,320 –> 00:13:56,400
And this is just landed.

424
00:13:56,400 –> 00:14:00,080
So can you imagine the increase in like HDB prices?

425
00:14:00,080 –> 00:14:00,920
Right.

426
00:14:00,920 –> 00:14:01,880
Construction for HDB,

427
00:14:01,880 –> 00:14:03,320
construction for all the new launches

428
00:14:03,320 –> 00:14:05,680
and all this, consumer will pay for it lah.

429
00:14:05,680 –> 00:14:06,960
So talking about going back to

430
00:14:06,960 –> 00:14:09,640
whether is it healthy for the younger generations?

431
00:14:09,640 –> 00:14:12,360
Recently, I just came out with another theory.

432
00:14:12,360 –> 00:14:13,480
Okay.

433
00:14:13,480 –> 00:14:16,080
We all know that the gap between upgraders

434
00:14:16,080 –> 00:14:17,640
is getting harder and harder.

435
00:14:17,640 –> 00:14:18,480
Yeah.

436
00:14:18,480 –> 00:14:19,280
This is a fact.

437
00:14:19,280 –> 00:14:20,120
Yeah.

438
00:14:20,120 –> 00:14:20,960
So everyone really, this is a fact.

439
00:14:20,960 –> 00:14:21,920
You must agree with me.

440
00:14:21,920 –> 00:14:23,440
It is easier for an upgrader to upgrade

441
00:14:23,440 –> 00:14:26,160
to a decent 3-bedder previously.

442
00:14:26,160 –> 00:14:27,000
Right.

443
00:14:27,000 –> 00:14:27,800
So right now it’s getting harder and harder.

444
00:14:27,800 –> 00:14:29,320
Yeah.

445
00:14:29,320 –> 00:14:30,360
So I went to do some calculation,

446
00:14:30,360 –> 00:14:31,880
do some like, comparison.

447
00:14:31,880 –> 00:14:33,040
So what is the gap?

448
00:14:33,040 –> 00:14:35,400
We came up, the gap is actually double.

449
00:14:35,400 –> 00:14:37,840
So that means previously if your flat,

450
00:14:37,840 –> 00:14:39,520
if you sell at $600K,

451
00:14:39,520 –> 00:14:43,000
you can comfortably buy a $1.2 mil or $1.3 mil,

452
00:14:43,000 –> 00:14:45,280
3-bedroom condo around your area.

453
00:14:45,280 –> 00:14:46,520
So it like doubles.

454
00:14:46,520 –> 00:14:47,360
Yeah.

455
00:14:47,360 –> 00:14:49,240
And right now it’s still double,

456
00:14:49,240 –> 00:14:50,920
but you are looking at a $1 mil flat

457
00:14:50,920 –> 00:14:52,600
then your 3-bedder is about $2 mil.

458
00:14:52,600 –> 00:14:53,640
Yeah.

459
00:14:53,640 –> 00:14:54,520
So it is always double,

460
00:14:54,520 –> 00:14:56,920
but it’s getting harder and harder and harder.

461
00:14:56,920 –> 00:14:59,200
– Yeah, the affordability, the quantum, the entry price.

462
00:14:59,200 –> 00:15:01,800
Yeah, so we are really going towards the times

463
00:15:01,800 –> 00:15:04,800
whereby it’s very difficult for our younger generations

464
00:15:04,800 –> 00:15:06,120
to buy properties.

465
00:15:06,120 –> 00:15:09,280
That’s why developers also have that kind of challenges.

466
00:15:09,280 –> 00:15:11,240
They try to build as small as possible.

467
00:15:11,240 –> 00:15:14,320
So I was quite shocked that like, Piccadilly Grand,

468
00:15:14,320 –> 00:15:17,560
a 2-bedder is 646 sqft,

469
00:15:17,560 –> 00:15:21,000
the 2-bed, 2-bath is like, wow it’s tiny man.

470
00:15:21,000 –> 00:15:23,240
So previously, I mean the norm for 2-bedder

471
00:15:23,240 –> 00:15:26,480
is about 700 sqft to 710 sqft, so that is already small.

472
00:15:26,480 –> 00:15:31,480
Now it’s 650 sqft, 646 sqft. 3-bedder is less than 900 sqft.

473
00:15:31,480 –> 00:15:33,520
It is tougher and tougher seriously.

474
00:15:33,520 –> 00:15:36,160
So I mean, right now we still have this discussion

475
00:15:36,160 –> 00:15:37,880
whereby most people still can buy properties.

476
00:15:37,880 –> 00:15:39,440
So if you wait any longer,

477
00:15:39,440 –> 00:15:41,560
I don’t think, don’t have this episode already lah.

478
00:15:41,560 –> 00:15:43,080
It’s like no one will buy.

479
00:15:43,080 –> 00:15:44,960
So the next trend will be everyone will rent,

480
00:15:44,960 –> 00:15:45,840
will start renting,

481
00:15:45,840 –> 00:15:49,320
they will do co-living style.

482
00:15:49,320 –> 00:15:50,360
Yeah, so that’s why,

483
00:15:50,360 –> 00:15:53,640
if you have a chance to buy a decent property now,

484
00:15:53,640 –> 00:15:55,640
you should do it now instead of telling yourself,

485
00:15:55,640 –> 00:15:57,880
“Oh, interest rate lah, building costs.”

486
00:15:57,880 –> 00:15:59,280
These are the things that we can’t control.

487
00:15:59,280 –> 00:16:00,760
And we all know that prices

488
00:16:00,760 –> 00:16:02,240
even if don’t have these things happen,

489
00:16:02,240 –> 00:16:05,200
the price is not going anywhere lower.

490
00:16:05,200 –> 00:16:06,040
Mm. Mm.

491
00:16:06,040 –> 00:16:07,600
Yeah. And land prices. Okay.

492
00:16:07,600 –> 00:16:10,440
Even if construction cost is okay, the interest rate is okay,

493
00:16:10,440 –> 00:16:12,880
the land price is always not okay ah.

494
00:16:12,880 –> 00:16:13,680
Yeah.

495
00:16:13,680 –> 00:16:14,520
The land price is always going up.

496
00:16:14,520 –> 00:16:15,360
Yeah.

497
00:16:15,360 –> 00:16:18,240
So just with that factor, you should know that owning,

498
00:16:18,240 –> 00:16:21,400
I think going back to owning properties, it’s a blessing.

499
00:16:21,400 –> 00:16:24,040
So everyone should do that if you are ready to do that.

500
00:16:24,040 –> 00:16:25,880
Mm. So you’re talking about upgraders?

501
00:16:25,880 –> 00:16:26,720
– Yeah upgraders.
– Right, because upgraders,

502
00:16:26,720 –> 00:16:27,560
they have that.

503
00:16:27,560 –> 00:16:30,680
After storing their capital, plus that paper gain

504
00:16:30,680 –> 00:16:33,200
after the MOP five years and things like that, right?

505
00:16:33,200 –> 00:16:34,040
Okay.

506
00:16:34,040 –> 00:16:34,960
So yeah, later we’ll come back to touch

507
00:16:34,960 –> 00:16:36,760
on this affordability thing again.

508
00:16:36,760 –> 00:16:39,800
Because recently there has really been so much news

509
00:16:39,800 –> 00:16:40,840
about real estate.

510
00:16:40,840 –> 00:16:41,920
For example, past few days,

511
00:16:41,920 –> 00:16:43,280
talk about HDB resale prices

512
00:16:43,280 –> 00:16:45,720
increasing straight for the 22nd month.

513
00:16:45,720 –> 00:16:47,920
And then, even in April, it went up.

514
00:16:47,920 –> 00:16:49,240
Just a couple of days back,

515
00:16:49,240 –> 00:16:51,480
Singapore landed homes see fastest price appreciation

516
00:16:51,480 –> 00:16:52,560
in the past 10 years.

517
00:16:52,560 –> 00:16:54,360
Yay.

518
00:16:54,360 –> 00:16:55,240
Then of course,

519
00:16:55,240 –> 00:16:56,920
young buyers top concerns,

520
00:16:56,920 –> 00:16:59,120
rising property prices, GST hike.

521
00:16:59,120 –> 00:17:00,920
Okay, you know recently the news

522
00:17:00,920 –> 00:17:02,600
about the Keppel HDB, right?

523
00:17:02,600 –> 00:17:03,760
– BTO.
– Ah, ah, okay. BTO.

524
00:17:03,760 –> 00:17:05,080
4-room, $700K, correct?

525
00:17:05,080 –> 00:17:07,080
– 4-room, $700K.
– $700K. Okay.

526
00:17:07,080 –> 00:17:09,720
So it was like one of the hit news, past two weeks lah.

527
00:17:09,720 –> 00:17:10,560
When me and my guys,

528
00:17:10,560 –> 00:17:12,000
we saw this, and then we were just thinking about

529
00:17:12,000 –> 00:17:13,160
– What’s your thoughts?

530
00:17:13,160 –> 00:17:14,000
No, our thoughts is that

531
00:17:14,000 –> 00:17:15,160
you know, about a year…

532
00:17:15,160 –> 00:17:16,560
I don’t know when was the cutoff point

533
00:17:16,560 –> 00:17:17,920
about one to two years back.

534
00:17:17,920 –> 00:17:18,760
Hm.

535
00:17:18,760 –> 00:17:20,400
The trend for brand new BTOs

536
00:17:20,400 –> 00:17:24,280
is that government suddenly stopped building 5-rooms.

537
00:17:24,280 –> 00:17:26,320
Suddenly you don’t see BTO 5-rooms anymore.

538
00:17:26,320 –> 00:17:27,120
I didn’t know that.

539
00:17:27,120 –> 00:17:29,880
Yeah. So you suddenly see all the BTO launches.

540
00:17:29,880 –> 00:17:32,000
Most of them are 2-, 3- and 4-rooms.

541
00:17:32,000 –> 00:17:32,920
Okay.

542
00:17:32,920 –> 00:17:35,080
So that took place for, I don’t know how long,

543
00:17:35,080 –> 00:17:36,480
maybe 12 to 24 months.

544
00:17:36,480 –> 00:17:38,400
And then in the past, right?

545
00:17:38,400 –> 00:17:41,240
In the past, during the days of Pinnacle @ Duxton, and

546
00:17:41,240 –> 00:17:42,120
all that kind of stuff

547
00:17:42,120 –> 00:17:44,880
or during the days where you have very prime HDB,

548
00:17:44,880 –> 00:17:46,600
the BTOs for 5-room,

549
00:17:46,600 –> 00:17:49,000
maybe the BTO price will be around the range

550
00:17:49,000 –> 00:17:51,880
of maybe $500K to $600K entry price.

551
00:17:51,880 –> 00:17:57,080
But now suddenly you see the Keppel, 4-room at $700K.

552
00:17:57,080 –> 00:17:59,560
So this is not the fault of the government

553
00:17:59,560 –> 00:18:01,320
because the land price is increasing.

554
00:18:01,320 –> 00:18:02,160
Yeah. Right.

555
00:18:02,160 –> 00:18:03,800
Construction costs is increasing.

556
00:18:03,800 –> 00:18:06,680
It takes more to build on prime land as well,

557
00:18:06,680 –> 00:18:08,440
but you can see that direction, right?

558
00:18:08,440 –> 00:18:11,200
So firstly elimination of the 5-room flat.

559
00:18:11,200 –> 00:18:13,400
Everybody will just stop remembering

560
00:18:13,400 –> 00:18:14,360
that there’s a 5-room.

561
00:18:14,360 –> 00:18:15,360
It’s just like in the past.

562
00:18:15,360 –> 00:18:19,320
Suddenly, the elimination was for EM and EA.

563
00:18:19,320 –> 00:18:21,400
Then now 5-room is eliminated already.

564
00:18:21,400 –> 00:18:22,960
Then now we’re left with 2-, 3-, 4-room

565
00:18:22,960 –> 00:18:25,040
and now suddenly 4-room is $700K.

566
00:18:25,040 –> 00:18:25,880
And then you will think that,

567
00:18:25,880 –> 00:18:26,960
“Hey I’m actually quite okay with that.

568
00:18:26,960 –> 00:18:28,200
I’m buying the biggest BTO at $700K.”

569
00:18:28,200 –> 00:18:30,560
So, I shouldn’t say it’s good marketing lah.

570
00:18:30,560 –> 00:18:33,280
But I would say that it is an inevitable move

571
00:18:33,280 –> 00:18:36,760
because of the global inflation of everything, right?

572
00:18:36,760 –> 00:18:40,200
So I think there is this possible trend that is coming up.

573
00:18:40,200 –> 00:18:41,840
I’m not sure, what do you think?

574
00:18:41,840 –> 00:18:42,680
So recently,

575
00:18:42,680 –> 00:18:45,960
we talked about this separation line in the year of 2013

576
00:18:45,960 –> 00:18:46,880
because when we look at the,

577
00:18:46,880 –> 00:18:48,920
all the cooling measures, there’s 10-over rounds,

578
00:18:48,920 –> 00:18:52,520
but 2013 was a very significant year with the TDSR.

579
00:18:52,520 –> 00:18:54,880
So suddenly, I don’t know whether you remember not, 2013,

580
00:18:54,880 –> 00:18:58,080
a lot of people when TDSR came out,

581
00:18:58,080 –> 00:19:00,800
they took it with a very shocking effect

582
00:19:00,800 –> 00:19:03,440
because a lot of business owners last time,

583
00:19:03,440 –> 00:19:06,080
I mean, loans were quite easy to shop, right?

584
00:19:06,080 –> 00:19:07,520
Banks don’t look at your credit card.

585
00:19:07,520 –> 00:19:09,640
2013 was a very defining moment

586
00:19:09,640 –> 00:19:12,400
because I still remember when 2013 TDSR came out,

587
00:19:12,400 –> 00:19:14,600
a lot of our clients who are business owner,

588
00:19:14,600 –> 00:19:15,960
their NOA was not ready.

589
00:19:15,960 –> 00:19:17,880
So after that, they cannot get loans.

590
00:19:17,880 –> 00:19:19,440
They need to take one to two years to…

591
00:19:19,440 –> 00:19:20,440
– To build up their track record.

592
00:19:20,440 –> 00:19:21,960
To build up their track record. Right.

593
00:19:21,960 –> 00:19:24,160
And then of course everything was under scrutiny,

594
00:19:24,160 –> 00:19:25,480
your credit and stuff. Okay.

595
00:19:25,480 –> 00:19:27,120
The defining year happened

596
00:19:27,120 –> 00:19:29,800
because there were these few very important projects,

597
00:19:29,800 –> 00:19:31,520
Sky Habitat launched.

598
00:19:31,520 –> 00:19:34,320
Halfway TDSR came out, price drop.

599
00:19:34,320 –> 00:19:35,680
So if you look at the transaction, 2013,

600
00:19:35,680 –> 00:19:37,480
got two sets of prices.

601
00:19:37,480 –> 00:19:42,920
One is before TDSR one is after TDSR with some PSF discount.

602
00:19:42,920 –> 00:19:47,280
Then after that Sky Vue was launched by the same developer.

603
00:19:47,280 –> 00:19:51,200
That causes a shift in the layout and the size.

604
00:19:51,200 –> 00:19:54,760
And that was the rise of small quantum kind of concept.

605
00:19:54,760 –> 00:19:55,720
That means we go by quantum,

606
00:19:55,720 –> 00:19:57,080
we don’t talk about PSF anymore.

607
00:19:57,080 –> 00:19:57,920
We start to talk about quantum.

608
00:19:57,920 –> 00:19:59,080
Quantum, yeah.

609
00:19:59,080 –> 00:20:00,400
We talk about 2-bedroom, $1 mil where you can buy 2-bedroom,

610
00:20:00,400 –> 00:20:01,320
Ah, correct correct.

611
00:20:01,320 –> 00:20:03,120
3-bedroom, $1.4 mil and stuff like that.

612
00:20:03,120 –> 00:20:06,480
So, what we’re seeing is that the Sky Habitat days,

613
00:20:06,480 –> 00:20:08,240
1-bedder, very big 1-bedder

614
00:20:08,240 –> 00:20:10,240
is like 700~ sqft,

615
00:20:10,240 –> 00:20:11,160
800 sqft.

616
00:20:11,160 –> 00:20:13,840
Then Sky Vue, after 2013, it was launched,

617
00:20:13,840 –> 00:20:15,480
the developer designed the 1-bedder

618
00:20:15,480 –> 00:20:16,920
to be about 500 sqft.

619
00:20:16,920 –> 00:20:18,880
Quantum, keep it small.

620
00:20:18,880 –> 00:20:21,080
Sky Habitat, 2-bedder,

621
00:20:21,080 –> 00:20:23,240
very big. Sky Vue, 2-bedder

622
00:20:23,240 –> 00:20:24,560
– 600 sqft?

623
00:20:24,560 –> 00:20:25,560
– 800+ sqft, 800+ sqft.

624
00:20:25,560 –> 00:20:26,560
Sky Vue, 600+ sqft.

625
00:20:26,560 –> 00:20:27,440
600+ sqft, 800+ sqft. Okay.

626
00:20:27,440 –> 00:20:28,280
Yeah.

627
00:20:28,280 –> 00:20:29,080
So the differential

628
00:20:29,080 –> 00:20:31,560
is that I pay for 2-bedder here, right?

629
00:20:31,560 –> 00:20:32,760
Here I can only buy 1-bedder.

630
00:20:32,760 –> 00:20:33,600
Yeah, correct.

631
00:20:33,600 –> 00:20:34,440
I pay 3-bedder here.

632
00:20:34,440 –> 00:20:36,720
Here. I can only buy 2-bedder. Okay.

633
00:20:36,720 –> 00:20:39,360
But now we’re starting to see quite a fair bit of transactions

634
00:20:39,360 –> 00:20:41,000
built up in these kind of projects.

635
00:20:41,000 –> 00:20:43,920
Examples, Sky Habitat, Reflections (at Keppel Bay), D’Leedon,

636
00:20:43,920 –> 00:20:46,080
All these are the big size,

637
00:20:46,080 –> 00:20:49,440
but PSF lower, but now their quantum

638
00:20:49,440 –> 00:20:50,240
sort of start to make sense already.

639
00:20:50,240 –> 00:20:51,080
Yeah. Yeah.

640
00:20:51,080 –> 00:20:53,880
Because now with the $2,000-over PSF,

641
00:20:53,880 –> 00:20:54,960
vis-à-vis a smaller price

642
00:20:54,960 –> 00:20:56,040
their quantum is matching up.

643
00:20:56,040 –> 00:20:56,880
Yeah.

644
00:20:56,880 –> 00:20:57,720
So what do you think?

645
00:20:57,720 –> 00:20:59,160
What do you think of this trend that might happen?

646
00:20:59,160 –> 00:21:01,160
But shift back to some of these mega projects

647
00:21:01,160 –> 00:21:03,320
with big size, lower PSF.

648
00:21:03,320 –> 00:21:05,480
Actually, all these big size projects

649
00:21:05,480 –> 00:21:06,600
give a lot of value

650
00:21:06,600 –> 00:21:08,920
for people who need size, number one.

651
00:21:08,920 –> 00:21:11,240
And the quantum is decent. It’s very decent lah

652
00:21:11,240 –> 00:21:12,680
in today’s context, right?

653
00:21:12,680 –> 00:21:13,520
Yeah.

654
00:21:13,520 –> 00:21:15,320
Yeah. I mean, look back previously,

655
00:21:15,320 –> 00:21:16,160
we’ll be thinking like,

656
00:21:16,160 –> 00:21:16,960
oh, so expensive.

657
00:21:16,960 –> 00:21:17,800
Yeah.

658
00:21:17,800 –> 00:21:18,640
Now look back.

659
00:21:18,640 –> 00:21:20,360
I mean comparing what is available in the market,

660
00:21:20,360 –> 00:21:21,600
especially the new ones.

661
00:21:21,600 –> 00:21:23,480
You will see that you can get a D’leedon,

662
00:21:23,480 –> 00:21:24,400
a 3-bed, 2-bath,

663
00:21:24,400 –> 00:21:27,080
$2 mil to $2.1 mil. It’s very decent.

664
00:21:27,080 –> 00:21:29,080
It’s like only eight years old, I guess?

665
00:21:29,080 –> 00:21:30,080
Eight years old.

666
00:21:30,080 –> 00:21:30,920
Right.

667
00:21:30,920 –> 00:21:32,040
1 km to your Nanyang Primary,

668
00:21:32,040 –> 00:21:33,840
and you stay in District 10.

669
00:21:33,840 –> 00:21:34,760
That’s District 10.

670
00:21:34,760 –> 00:21:37,960
So it’s like core region and you can get this kind of price.

671
00:21:37,960 –> 00:21:38,800
Yeah.

672
00:21:38,800 –> 00:21:39,640
Very decent.

673
00:21:39,640 –> 00:21:42,000
But again, these are above $2 mil budget.

674
00:21:42,000 –> 00:21:42,840
Yeah.

675
00:21:42,840 –> 00:21:45,440
But most people don’t have this budget.

676
00:21:45,440 –> 00:21:47,520
As in HDB upgrader families.

677
00:21:47,520 –> 00:21:48,360
Yeah. They don’t have this budget.

678
00:21:48,360 –> 00:21:49,200
Right.

679
00:21:49,200 –> 00:21:50,520
I mean most of them, even they have,

680
00:21:50,520 –> 00:21:53,600
they do not want to commit to such a high quantum

681
00:21:53,600 –> 00:21:55,560
because the instalment is very tough.

682
00:21:55,560 –> 00:21:56,600
It’s very tight on them also.

683
00:21:56,600 –> 00:21:59,440
So they will go for OCR resale.

684
00:21:59,440 –> 00:22:00,280
Yeah.

685
00:22:00,280 –> 00:22:01,520
$1.5 mil, $1.6 mil range.

686
00:22:01,520 –> 00:22:02,360
Correct.

687
00:22:02,360 –> 00:22:03,160
Yeah.

688
00:22:03,160 –> 00:22:05,120
So of course, if you need a school factor,

689
00:22:05,120 –> 00:22:07,920
then you have no choice lah. I mean for,

690
00:22:07,920 –> 00:22:10,200
so this is what I call the family value mah.

691
00:22:10,200 –> 00:22:11,840
I mean it’s not investment anymore.

692
00:22:11,840 –> 00:22:14,400
I need a place to stay near my kids.

693
00:22:14,400 –> 00:22:15,240
Right.

694
00:22:15,240 –> 00:22:16,080
But who don’t want a place where,

695
00:22:16,080 –> 00:22:18,320
whereby you still have the appreciation factor.

696
00:22:18,320 –> 00:22:19,880
So I mean, D’Leedon is one of the good ones,

697
00:22:19,880 –> 00:22:21,960
but I do have people who complain.

698
00:22:21,960 –> 00:22:22,880
It’s a very big project lah.

699
00:22:22,880 –> 00:22:25,760
I mean, just get something that suits

700
00:22:25,760 –> 00:22:27,200
your family needs lah.

701
00:22:27,200 –> 00:22:28,400
But D’Leedon is one of the good ones.

702
00:22:28,400 –> 00:22:29,240
Yeah.

703
00:22:29,240 –> 00:22:31,000
Sky Habitat, Sky Vue, those are good ones.

704
00:22:31,000 –> 00:22:32,640
I mean after, and you can check

705
00:22:32,640 –> 00:22:34,120
on the master plan previously

706
00:22:34,120 –> 00:22:35,400
in that area, you can see

707
00:22:35,400 –> 00:22:38,000
that there’s a lot of residential plots of land.

708
00:22:38,000 –> 00:22:38,840
Mm-hmm.

709
00:22:38,840 –> 00:22:40,360
So I think the later master plan

710
00:22:40,360 –> 00:22:42,720
already changed to only Sky Vue

711
00:22:42,720 –> 00:22:45,400
and Sky Habitat are the only two condos there.

712
00:22:45,400 –> 00:22:47,160
So making them the exclusive one

713
00:22:47,160 –> 00:22:49,320
and their 3-bedder, are they considered city-fringe?

714
00:22:49,320 –> 00:22:51,080
Yes, right?

715
00:22:51,080 –> 00:22:51,920
Yeah Bishan is.

716
00:22:51,920 –> 00:22:53,160
Yes ah. So even a 3-…

717
00:22:53,160 –> 00:22:54,400
That’s a boundary.

718
00:22:54,400 –> 00:22:55,480
And then Ang Mo Kio is OCR.

719
00:22:55,480 –> 00:22:56,480
Yeah, yeah.

720
00:22:56,480 –> 00:22:57,400
That’s um…

721
00:22:57,400 –> 00:22:58,520
Okay I take that as city-fringe.

722
00:22:58,520 –> 00:23:00,960
So their 3-bedder is about also $2~ mil,

723
00:23:00,960 –> 00:23:03,040
but most of the people HDB upgraders,

724
00:23:03,040 –> 00:23:04,040
they need 3-bedder mah,

725
00:23:04,040 –> 00:23:06,080
because most people stay in 4-room flat, 5-room flat.

726
00:23:06,080 –> 00:23:07,680
They have 3-bedder, three bedrooms.

727
00:23:07,680 –> 00:23:10,360
So now that’s why right now you can see the trend.

728
00:23:10,360 –> 00:23:12,760
I mean the trend for property price index for OCR.

729
00:23:12,760 –> 00:23:16,360
OCR is the only one that is increasing very stably.

730
00:23:16,360 –> 00:23:17,200
It’s very healthy.

731
00:23:17,200 –> 00:23:19,640
That’s why OCR is a place where people will buy

732
00:23:19,640 –> 00:23:22,000
and it’s an evergreen place where people will buy.

733
00:23:22,000 –> 00:23:24,600
Good times, people will buy. Bad times, people will buy.

734
00:23:24,600 –> 00:23:26,400
Because of the support base of HDB upgraders.

735
00:23:26,400 –> 00:23:27,360
Yeah. Families.

736
00:23:27,360 –> 00:23:28,160
Yeah.

737
00:23:28,160 –> 00:23:32,080
The least risk to make money is to buy in areas

738
00:23:32,080 –> 00:23:33,520
where upgraders will buy.

739
00:23:33,520 –> 00:23:34,920
So in summary, buy…

740
00:23:34,920 –> 00:23:36,080
– Where there’s a future demand.

741
00:23:36,080 –> 00:23:37,320
Ah, buy in demand.

742
00:23:37,320 –> 00:23:40,080
I mean, some people were still asking me things like,

743
00:23:40,080 –> 00:23:41,280
can I buy CBD?

744
00:23:41,280 –> 00:23:42,880
Yeah, yeah. I do not know why.

745
00:23:42,880 –> 00:23:43,720
What are your thoughts?

746
00:23:43,720 –> 00:23:46,440
CBD is bad. CBD is bad.

747
00:23:46,440 –> 00:23:47,400
It’s real bad.

748
00:23:47,400 –> 00:23:51,760
That’s my thought because you must learn who are the buyers.

749
00:23:51,760 –> 00:23:53,080
Okay. But, CBD,

750
00:23:53,080 –> 00:23:57,680
there are some projects that belongs to this 2013 era one.

751
00:23:57,680 –> 00:23:58,520
Okay.

752
00:23:58,520 –> 00:24:00,200
Which is also starting to make sense already,

753
00:24:00,200 –> 00:24:02,400
in terms of like quantum, I don’t know what do you think,

754
00:24:02,400 –> 00:24:04,640
in terms of the mega bigger ones.

755
00:24:04,640 –> 00:24:06,200
There’s a very interesting trend.

756
00:24:06,200 –> 00:24:07,880
I mean, there’s no right and wrong.

757
00:24:07,880 –> 00:24:09,400
Everybody has different kind of school of thoughts.

758
00:24:09,400 –> 00:24:10,240
Yeah.

759
00:24:10,240 –> 00:24:12,320
The interesting trend is that on the ground,

760
00:24:12,320 –> 00:24:14,240
some of the buyers are confused.

761
00:24:14,240 –> 00:24:15,080
Okay.

762
00:24:15,080 –> 00:24:16,960
They look at example an RCR launch.

763
00:24:16,960 –> 00:24:18,000
City-fringe launch.

764
00:24:18,000 –> 00:24:19,160
900 sqft.

765
00:24:19,160 –> 00:24:22,440
– Okay. $1.8 mil.
– $2,200 PSF.

766
00:24:22,440 –> 00:24:24,200
Example lah, $2,000 PSF to $2,200 PSF,

767
00:24:24,200 –> 00:24:25,240
okay lah, $2,200 PSF.

768
00:24:25,240 –> 00:24:27,920
$1.8 mil, about there lah, $1.8~ mil.

769
00:24:27,920 –> 00:24:29,400
Okay, $2,200 PSF it’ll be $2 mil already.

770
00:24:29,400 –> 00:24:30,240
Yeah.

771
00:24:30,240 –> 00:24:31,480
$2 mil, 3-bedder lah.

772
00:24:31,480 –> 00:24:32,560
Wah sweat sia. Okay.

773
00:24:32,560 –> 00:24:34,400
900 sqft, $2,200 PSF.

774
00:24:34,400 –> 00:24:35,240
Okay.

775
00:24:35,240 –> 00:24:36,120
99-year.

776
00:24:36,120 –> 00:24:38,000
Then they look at The Sail example.

777
00:24:38,000 –> 00:24:40,520
There’s this unit, 60-over level. Just done.

778
00:24:40,520 –> 00:24:41,360
Nice.

779
00:24:41,360 –> 00:24:42,200
Have a look.

780
00:24:42,200 –> 00:24:43,840
That was two years ago, The Sail used to be your favourite lah, come on.

781
00:24:43,840 –> 00:24:44,680
Just have a look.

782
00:24:44,680 –> 00:24:45,880
I love that. I love that.

783
00:24:45,880 –> 00:24:46,840
You sold already mah, right?

784
00:24:46,840 –> 00:24:47,680
I don’t have it.

785
00:24:47,680 –> 00:24:48,480
Oh, don’t have.

786
00:24:48,480 –> 00:24:49,320
Okay. Okay. So..

787
00:24:49,320 –> 00:24:50,240
I love but I didn’t buy.

788
00:24:50,240 –> 00:24:53,440
Okay, so $2.3 mil done.

789
00:24:53,440 –> 00:24:55,640
$1,800 PSF.

790
00:24:55,640 –> 00:24:57,400
1,300 sqft. 60-over level.

791
00:24:57,400 –> 00:24:59,400
On the ground, some consumers are confused.

792
00:24:59,400 –> 00:25:01,400
Of course, that is a new launch, this is a resale.

793
00:25:01,400 –> 00:25:02,400
This one is older already.

794
00:25:02,400 –> 00:25:03,920
already 10+ coming to 20 years.

795
00:25:03,920 –> 00:25:05,560
But quantum is starting to match up.

796
00:25:05,560 –> 00:25:06,680
Yeah. Yeah.

797
00:25:06,680 –> 00:25:07,880
So you like, “Hey, got value eh.”

798
00:25:07,880 –> 00:25:09,760
Yeah. Like this one bigger 3-bedder.

799
00:25:09,760 –> 00:25:11,960
Right beside MBS,

800
00:25:11,960 –> 00:25:12,760
Yeah.

801
00:25:12,760 –> 00:25:16,240
Then $2.3 mil, this one $2.2 mil, 900 sqft, city-fringe.

802
00:25:16,240 –> 00:25:17,440
But this one is in the CBD.

803
00:25:17,440 –> 00:25:20,560
So what is your advice for people thinking about that?

804
00:25:20,560 –> 00:25:23,760
Of course it depends also whether the person likes brand new

805
00:25:23,760 –> 00:25:25,040
or resale,

806
00:25:25,040 –> 00:25:26,960
but if let’s say the person got no preference.

807
00:25:26,960 –> 00:25:27,920
Okay.

808
00:25:27,920 –> 00:25:29,800
What is your advice? And they ask you, they ask you,

809
00:25:29,800 –> 00:25:31,640
“Hey, Eric, which one should I buy?”

810
00:25:31,640 –> 00:25:33,400
Okay. My first thought, when I see like…

811
00:25:33,400 –> 00:25:34,240
Okay.

812
00:25:34,240 –> 00:25:36,080
Level 60+.

813
00:25:36,080 –> 00:25:38,800
Let’s look at the lease. Tenure, 2002

814
00:25:38,800 –> 00:25:41,040
So 20 years already, left 79 years.

815
00:25:41,040 –> 00:25:43,400
Yeah. I think the lease is fine, so,

816
00:25:43,400 –> 00:25:45,560
okay, so the person who buy The Sail

817
00:25:45,560 –> 00:25:50,200
you can get an above 60 floor at $2.3~ mil

818
00:25:50,200 –> 00:25:53,120
versus a small 3-bedder at city-fringe.

819
00:25:53,120 –> 00:25:54,360
Yeah. Maybe level 8.

820
00:25:54,360 –> 00:25:56,360
Okay. So before I advise on this one,

821
00:25:56,360 –> 00:25:57,320
I would be thinking, eh,

822
00:25:57,320 –> 00:25:58,760
why this one so cheap ah?

823
00:25:58,760 –> 00:26:00,160
I mean, why The Sail so cheap?

824
00:26:00,160 –> 00:26:02,600
Because by right as I say, since there are so,

825
00:26:02,600 –> 00:26:05,600
so much demand, The Sail prices should be higher.

826
00:26:05,600 –> 00:26:07,120
So my first thought

827
00:26:07,120 –> 00:26:09,160
is still come back to the same thought.

828
00:26:09,160 –> 00:26:10,000
Right?

829
00:26:10,000 –> 00:26:10,840
It don’t increase ah.

830
00:26:10,840 –> 00:26:11,680
This is one of the fears, I mean,

831
00:26:11,680 –> 00:26:14,040
things may happen when prices getting higher.

832
00:26:14,040 –> 00:26:15,280
By right, this one will go higher.

833
00:26:15,280 –> 00:26:16,080
Yeah.

834
00:26:16,080 –> 00:26:17,600
But right now the thought I have right now is

835
00:26:17,600 –> 00:26:19,160
because this one hasn’t been going up.

836
00:26:19,160 –> 00:26:21,440
Right, like has the price plateaued?

837
00:26:21,440 –> 00:26:22,840
Yeah, it just don’t go up.

838
00:26:22,840 –> 00:26:23,560
Okay. So let’s say in 8 year’s time, 2030,

839
00:26:23,560 –> 00:26:27,200
Okay. So let’s say in 8 year’s time, 2030,

840
00:26:27,200 –> 00:26:30,720
when everything in RCR go up,

841
00:26:30,720 –> 00:26:34,160
let’s say to about $2,900 example,

842
00:26:34,160 –> 00:26:35,520
what do you think would be the price of this?

843
00:26:35,520 –> 00:26:37,560
Will this still go up by a few $100K?

844
00:26:37,560 –> 00:26:39,320
Definitely, you’ll see some increase.

845
00:26:39,320 –> 00:26:42,000
So midterm is okay. Midterm strategy.

846
00:26:42,000 –> 00:26:43,400
Let’s say 8 year’s time.

847
00:26:43,400 –> 00:26:44,480
8 years, midterm ah?

848
00:26:44,480 –> 00:26:45,520
8 years horizon.

849
00:26:45,520 –> 00:26:46,640
8 years to me, is very long.

850
00:26:46,640 –> 00:26:50,040
Okay, 5 to 8 (years), midterm lah. Short is 3 (years) lah.

851
00:26:50,040 –> 00:26:52,240
Yeah, because I usually use 3 years

852
00:26:52,240 –> 00:26:54,000
to plan what will the price at the time.

853
00:26:54,000 –> 00:26:55,520
3 years to us is short lah

854
00:26:55,520 –> 00:26:57,560
because you just cleared the SSD then you can sell.

855
00:26:57,560 –> 00:26:58,480
Yeah, correct.

856
00:26:58,480 –> 00:27:00,080
So 5 to 8 (years) is mid. 10 to 15 (years) is long.

857
00:27:00,080 –> 00:27:03,080
I like to challenge myself of looking things,

858
00:27:03,080 –> 00:27:05,280
which is if I can make money in the shorter term.

859
00:27:05,280 –> 00:27:06,720
I mean, everyone want to make money.

860
00:27:06,720 –> 00:27:08,200
The highest ROI lah. Within 3 years.

861
00:27:08,200 –> 00:27:11,520
So if I can focus in which area can make the money,

862
00:27:11,520 –> 00:27:13,520
the shortest time, we should focus on that mah.

863
00:27:13,520 –> 00:27:15,120
Midterm ah, anyone make money one ah.

864
00:27:15,120 –> 00:27:16,800
So in midterm…

865
00:27:16,800 –> 00:27:18,120
Sure make money ah, sure make ah.

866
00:27:18,120 –> 00:27:19,960
How much do you think this would be?

867
00:27:19,960 –> 00:27:21,960
$2.3 mil, $500K maybe?

868
00:27:21,960 –> 00:27:23,080
At least $2,300 PSF.

869
00:27:23,080 –> 00:27:25,680
Uh-uh, possible. Half a mil possible.

870
00:27:25,680 –> 00:27:27,840
From $1,800 PSF to $2,300 PSF.

871
00:27:27,840 –> 00:27:28,680
Yeah possible.

872
00:27:28,680 –> 00:27:29,480
Of course, I think,

873
00:27:29,480 –> 00:27:32,280
end of the day, it depends on the person’s preference, right?

874
00:27:32,280 –> 00:27:33,200
Yeah. Correct, correct.

875
00:27:33,200 –> 00:27:35,360
Because this is somehow a lifestyle property.

876
00:27:35,360 –> 00:27:37,280
You’re talking about good school.

877
00:27:37,280 –> 00:27:38,360
I don’t think you have good school.

878
00:27:38,360 –> 00:27:39,440
Yeah.

879
00:27:39,440 –> 00:27:40,360
Talking about supermarket.

880
00:27:40,360 –> 00:27:41,600
Have lah, downstairs.

881
00:27:41,600 –> 00:27:42,800
Have ah? Okay, okay have.

882
00:27:42,800 –> 00:27:45,680
But the atas (high class) one.

883
00:27:45,680 –> 00:27:47,840
But you say, I mean most HDB upgraders,

884
00:27:47,840 –> 00:27:52,160
they need like, kopitiams, good school,

885
00:27:52,160 –> 00:27:55,840
amenities, so this is really not for everyone.

886
00:27:55,840 –> 00:27:56,680
Right.

887
00:27:56,680 –> 00:27:57,880
It’s really somehow lifestyle

888
00:27:57,880 –> 00:27:59,720
who love this kind of property.

889
00:27:59,720 –> 00:28:02,800
That’s why you don’t see a lot of such property transacted.

890
00:28:02,800 –> 00:28:03,760
Right, right.

891
00:28:03,760 –> 00:28:06,440
So one of the other reasons we’re also asking your thoughts,

892
00:28:06,440 –> 00:28:09,000
right, is because we are seeing this trend on the ground,

893
00:28:09,000 –> 00:28:10,840
especially over the last six months,

894
00:28:10,840 –> 00:28:12,720
a lot of clients they are asking about,

895
00:28:12,720 –> 00:28:16,600
specifically all these projects before the 2013 era.

896
00:28:16,600 –> 00:28:17,440
Okay.

897
00:28:17,440 –> 00:28:18,600
Yeah. Because it is really because of this trend.

898
00:28:18,600 –> 00:28:19,600
That means, okay.

899
00:28:19,600 –> 00:28:20,480
But of course, to be fair,

900
00:28:20,480 –> 00:28:22,720
a lot of the clients that are asking these kind of questions,

901
00:28:22,720 –> 00:28:23,920
They have budget above $2 mil.

902
00:28:23,920 –> 00:28:24,760
Mm-hmm.

903
00:28:24,760 –> 00:28:26,720
Which is why, when you have a budget above $2 mil,

904
00:28:26,720 –> 00:28:28,360
it expands your territory.

905
00:28:28,360 –> 00:28:29,240
Yeah.

906
00:28:29,240 –> 00:28:31,280
So they start to look at the mega projects.

907
00:28:31,280 –> 00:28:33,280
Reflections (at Keppel Bay) has been quite popular.

908
00:28:33,280 –> 00:28:34,880
This also has been quite popular.

909
00:28:34,880 –> 00:28:37,200
Then D’Leedon, Sky Habitat, all this mega kind of thing.

910
00:28:37,200 –> 00:28:39,000
So interesting trend that’s going on. Okay.

911
00:28:39,000 –> 00:28:40,640
What do you think are usually some of the,

912
00:28:40,640 –> 00:28:41,760
the mind blocks?

913
00:28:41,760 –> 00:28:42,640
Mind block.

914
00:28:42,640 –> 00:28:45,440
Of so-called families that hope to upgrade.

915
00:28:45,440 –> 00:28:46,280
Ah.

916
00:28:46,280 –> 00:28:48,160
But what are the very common fears?

917
00:28:48,160 –> 00:28:50,240
Oh, this is so fun.

918
00:28:50,240 –> 00:28:53,000
Number one, your spouse.

919
00:28:53,000 –> 00:28:54,360
Huh? Hahahahaha.

920
00:28:54,360 –> 00:28:57,320
Actually spouse is the most important factor

921
00:28:57,320 –> 00:28:59,920
in your upgrading journey.

922
00:28:59,920 –> 00:29:01,320
Alignment of objective lah.

923
00:29:01,320 –> 00:29:03,600
Yeah. Just one of them say no ah.

924
00:29:03,600 –> 00:29:04,560
How to do?

925
00:29:04,560 –> 00:29:06,440
I don’t care whether your income is very high,

926
00:29:06,440 –> 00:29:09,680
you have low commitment, you have everything perfect.

927
00:29:09,680 –> 00:29:15,120
But your spouse say no. That’s the end of your journey.

928
00:29:15,120 –> 00:29:18,840
This part play the sad song.

929
00:29:18,840 –> 00:29:20,520
Yeah. Actually this is main thing

930
00:29:20,520 –> 00:29:21,840
because people who come to me,

931
00:29:21,840 –> 00:29:22,800
Right.

932
00:29:22,800 –> 00:29:23,760
They are all aligned one.

933
00:29:23,760 –> 00:29:24,720
“Eric, I want to do.”

934
00:29:24,720 –> 00:29:27,600
One is fearful, but they want to do, but that’s important.

935
00:29:27,600 –> 00:29:29,960
They align, they want to get something.

936
00:29:29,960 –> 00:29:31,320
They do not want to overcommit.

937
00:29:31,320 –> 00:29:33,320
So they are still working towards the goal.

938
00:29:33,320 –> 00:29:35,960
I mean, some of them is totally cut off one, no.

939
00:29:35,960 –> 00:29:37,200
This kind gone lah.

940
00:29:37,200 –> 00:29:38,800
Right? What’s number two.

941
00:29:38,800 –> 00:29:40,400
Okay. Spouse, most important.

942
00:29:40,400 –> 00:29:41,600
So marry the right person.

943
00:29:41,600 –> 00:29:43,560
You need to have guts lah.

944
00:29:43,560 –> 00:29:44,760
That one important lah.

945
00:29:44,760 –> 00:29:45,920
That’s why come to Eric,

946
00:29:45,920 –> 00:29:47,760
Eric give you guts.

947
00:29:47,760 –> 00:29:48,560
Yeah. I think guts is important.

948
00:29:48,560 –> 00:29:50,640
But guts comes from experience mah.

949
00:29:50,640 –> 00:29:52,160
Experience comes from knowledge one.

950
00:29:52,160 –> 00:29:53,000
Right.

951
00:29:53,000 –> 00:29:55,120
– Courage lah.
– The courage, knowledge, everything

952
00:29:55,120 –> 00:29:57,840
you need. And I think you need to have a plan.

953
00:29:57,840 –> 00:30:00,720
I mean, to be rich or to make money,

954
00:30:00,720 –> 00:30:02,200
anyone should have a plan mah.

955
00:30:02,200 –> 00:30:05,080
I mean, without a plan, you do not know how to move.

956
00:30:05,080 –> 00:30:06,160
So if you know that people

957
00:30:06,160 –> 00:30:08,160
have been making money from property,

958
00:30:08,160 –> 00:30:09,360
I mean, everyone will know

959
00:30:09,360 –> 00:30:11,520
whether they are capable to buy or not,

960
00:30:11,520 –> 00:30:12,840
but it’s just, sometimes

961
00:30:12,840 –> 00:30:14,240
they’re too fearful

962
00:30:14,240 –> 00:30:15,960
and they start thinking about other stuff,

963
00:30:15,960 –> 00:30:17,400
like interest rate going up,

964
00:30:17,400 –> 00:30:19,080
construction, going up, blah, blah, blah.

965
00:30:19,080 –> 00:30:20,280
Then they’ll cut off.

966
00:30:20,280 –> 00:30:22,600
And once they cut off, they’ll continue to work ah.

967
00:30:22,600 –> 00:30:24,840
They’ll continue to work. Then 10 years later,

968
00:30:24,840 –> 00:30:26,760
when the days whereby is so difficult to do,

969
00:30:26,760 –> 00:30:27,800
then they’ll come to me again,

970
00:30:27,800 –> 00:30:30,200
“Eric, can I do now? Am I too late?”

971
00:30:30,200 –> 00:30:32,640
So I think, and age is another important factor

972
00:30:32,640 –> 00:30:35,400
because age will determine what is the loan tenure mah.

973
00:30:35,400 –> 00:30:36,240
Right.

974
00:30:36,240 –> 00:30:37,080
Of course, right now,

975
00:30:37,080 –> 00:30:38,880
there are ways to get up to 75 years of age.

976
00:30:38,880 –> 00:30:41,640
So even if you’re 50 years old, you can get 25 years loan,

977
00:30:41,640 –> 00:30:42,880
which is still healthy.

978
00:30:42,880 –> 00:30:45,120
So, but if today you are 60

979
00:30:45,120 –> 00:30:47,520
I will ask you to combine with your kids, teamwork,

980
00:30:47,520 –> 00:30:49,200
to buy property already.

981
00:30:49,200 –> 00:30:50,520
So there are still ways,

982
00:30:50,520 –> 00:30:52,080
but most of time where people don’t do

983
00:30:52,080 –> 00:30:53,760
is they’re not hungry enough.

984
00:30:53,760 –> 00:30:55,240
They are not gutsy.

985
00:30:55,240 –> 00:30:56,520
Because there are cases

986
00:30:56,520 –> 00:30:58,200
where I have people coming to me,

987
00:30:58,200 –> 00:31:00,080
they buy all sorts of property.

988
00:31:00,080 –> 00:31:01,200
They don’t know anything.

989
00:31:01,200 –> 00:31:02,000
Right.

990
00:31:02,000 –> 00:31:03,520
They buy wrong property, but make money lah.

991
00:31:03,520 –> 00:31:05,240
I mean, they should have made more,

992
00:31:05,240 –> 00:31:07,720
but buying wrong property, they make money.

993
00:31:07,720 –> 00:31:10,800
So the summary is you need guts to make money. They are gutsy.

994
00:31:10,800 –> 00:31:12,960
They make a lot of money by doing anything just,

995
00:31:12,960 –> 00:31:14,760
but they did something

996
00:31:14,760 –> 00:31:17,320
so many people haven’t tasted money before

997
00:31:17,320 –> 00:31:18,720
because they haven’t take the first step

998
00:31:18,720 –> 00:31:20,120
to buy their first property.

999
00:31:20,120 –> 00:31:22,320
So that’s why my encouragement is always,

1000
00:31:22,320 –> 00:31:25,520
you should get a plan and get the first one first.

1001
00:31:25,520 –> 00:31:26,880
Although my tagline is like,

1002
00:31:26,880 –> 00:31:28,280
I teach people how to sell one, buy two.

1003
00:31:28,280 –> 00:31:29,280
But a lot of people,

1004
00:31:29,280 –> 00:31:30,960
when they hear about the second property,

1005
00:31:30,960 –> 00:31:32,040
they are so scared

1006
00:31:32,040 –> 00:31:34,320
because getting the first one is already fearful.

1007
00:31:34,320 –> 00:31:36,120
So my advice get the first one first.

1008
00:31:36,120 –> 00:31:37,200
You taste the money.

1009
00:31:37,200 –> 00:31:39,600
You sure say, “Oh, Eric, I want to plan

1010
00:31:39,600 –> 00:31:42,000
for a second one as soon as possible.”

1011
00:31:42,000 –> 00:31:44,200
But always take the first step

1012
00:31:44,200 –> 00:31:45,720
by getting the first one first,

1013
00:31:45,720 –> 00:31:47,440
because as you learn just now,

1014
00:31:47,440 –> 00:31:50,640
the gap from HDB to private is double.

1015
00:31:50,640 –> 00:31:54,200
So previously $500K to $1 mil is like quite easy mah.

1016
00:31:54,200 –> 00:31:57,320
Now it’s $1 mil to $2 mil is harder.

1017
00:31:57,320 –> 00:32:00,560
So you know that this is how the property market goes up.

1018
00:32:00,560 –> 00:32:01,920
That’s why you should do earlier.

1019
00:32:01,920 –> 00:32:04,760
And because we are not getting any younger,

1020
00:32:04,760 –> 00:32:07,440
age is one of the most important factors,

1021
00:32:07,440 –> 00:32:10,800
but that’s why most of my network members,

1022
00:32:10,800 –> 00:32:13,160
their average age is about 40 to 45 (years old).

1023
00:32:13,160 –> 00:32:15,040
I think it’s getting younger, which is good.

1024
00:32:15,040 –> 00:32:16,720
I see younger people coming.

1025
00:32:16,720 –> 00:32:19,360
They have aspirations to do to get their condos

1026
00:32:19,360 –> 00:32:21,480
as soon as possible, which is good, which is good.

1027
00:32:21,480 –> 00:32:24,160
Because I don’t see young people coming

1028
00:32:24,160 –> 00:32:27,080
or they don’t even have the thoughts of upgrading previously.

1029
00:32:27,080 –> 00:32:27,920
So now…

1030
00:32:27,920 –> 00:32:28,920
Largely, married couples.

1031
00:32:28,920 –> 00:32:29,760
Married couples

1032
00:32:29,760 –> 00:32:30,600
Right.

1033
00:32:30,600 –> 00:32:32,480
Single. Yes. But same thing,

1034
00:32:32,480 –> 00:32:35,480
Singles, as what you say just now, you can’t get flat,

1035
00:32:35,480 –> 00:32:38,360
sorry, you can’t get BTO because you’re less than 35 (years old).

1036
00:32:38,360 –> 00:32:40,560
So you can do the way that I did.

1037
00:32:40,560 –> 00:32:42,040
So I partnered with another friend.

1038
00:32:42,040 –> 00:32:43,160
We buy property together.

1039
00:32:43,160 –> 00:32:44,920
Three years, we sell, make the first pot of gold.

1040
00:32:44,920 –> 00:32:47,520
And we, then I use the money to buy one on my own.

1041
00:32:47,520 –> 00:32:49,400
So there are a lot of ways how you can do,

1042
00:32:49,400 –> 00:32:50,600
but buy the right property lah.

1043
00:32:50,600 –> 00:32:52,760
I mean, you buy the wrong one also gone mah.

1044
00:32:52,760 –> 00:32:53,600
Yeah.

1045
00:32:53,600 –> 00:32:54,400
There are a lot of things.

1046
00:32:54,400 –> 00:32:55,840
So if you ask me who can’t do?

1047
00:32:55,840 –> 00:32:57,720
Actually, most people can do one.

1048
00:32:57,720 –> 00:32:59,520
It’s just that they, firstly,

1049
00:32:59,520 –> 00:33:03,240
they don’t have the exposure of people

1050
00:33:03,240 –> 00:33:05,200
that they know who have condos.

1051
00:33:05,200 –> 00:33:08,120
Example, your siblings have no condos.

1052
00:33:08,120 –> 00:33:09,800
Your parents have no condos.

1053
00:33:09,800 –> 00:33:12,280
It’s very natural for you to feel fearful.

1054
00:33:12,280 –> 00:33:13,680
It’s like, Eee! I’m the odd one out.

1055
00:33:13,680 –> 00:33:16,080
If I buy now, then am I doing the right thing?

1056
00:33:16,080 –> 00:33:18,640
But if you are born in a family

1057
00:33:18,640 –> 00:33:22,600
whereby your parents owns condos or landed,

1058
00:33:22,600 –> 00:33:25,080
their first thought is, “Aiya! I will sure buy one.”

1059
00:33:25,080 –> 00:33:26,840
And they will buy condo minimally.

1060
00:33:26,840 –> 00:33:29,760
So this is how parents should start teaching.

1061
00:33:29,760 –> 00:33:31,840
I mean your kids follow your footstep.

1062
00:33:31,840 –> 00:33:33,760
If they see their parents don’t do anything,

1063
00:33:33,760 –> 00:33:35,680
it’s natural that you won’t do anything.

1064
00:33:35,680 –> 00:33:36,280
Try to mix

1065
00:33:36,280 –> 00:33:38,360
with people who have properties.

1066
00:33:38,360 –> 00:33:39,840
I mean, instead of Melvin or me,

1067
00:33:39,840 –> 00:33:41,160
buy, buy, buy, buy, buy,

1068
00:33:41,160 –> 00:33:43,600
you mix with them, ask them, “How’s your condo?

1069
00:33:43,600 –> 00:33:44,840
Everything.. Is it everything good?”

1070
00:33:44,840 –> 00:33:47,120
They will say, “Aiya, like that lo make money lo .”

1071
00:33:47,120 –> 00:33:49,320
Rental, is it easy? Like that.

1072
00:33:49,320 –> 00:33:51,360
Ah, then it will give you the confidence to do mah.

1073
00:33:51,360 –> 00:33:53,360
Because if you don’t have the kind of exposure,

1074
00:33:53,360 –> 00:33:55,520
I don’t think you will like, “Hey, buy property.”

1075
00:33:55,520 –> 00:33:57,240
I mean, no mah. Buy property eh.

1076
00:33:57,240 –> 00:34:00,320
Yeah. The environment and the community you’re in.

1077
00:34:00,320 –> 00:34:02,680
Yes correct. You need this kind of environment mah.

1078
00:34:02,680 –> 00:34:03,600
So just now you mentioned

1079
00:34:03,600 –> 00:34:05,360
the first one is alignment with your spouse.

1080
00:34:05,360 –> 00:34:06,320
Yeah. That’s most important.

1081
00:34:06,320 –> 00:34:09,680
Number two is courage through having knowledge.

1082
00:34:09,680 –> 00:34:12,320
Yeah. Courage, knowledge, hungry for success.

1083
00:34:12,320 –> 00:34:14,480
You need mah. I mean, sometimes you have courage,

1084
00:34:14,480 –> 00:34:15,560
but you are like…

1085
00:34:15,560 –> 00:34:18,760
Why do you think that rental is increasing now?

1086
00:34:18,760 –> 00:34:20,920
Wah, good question. Some people ask me.

1087
00:34:20,920 –> 00:34:22,040
I say, I also don’t know.

1088
00:34:22,040 –> 00:34:23,320
I don’t know where these people come from.

1089
00:34:23,320 –> 00:34:25,360
The only thing I can say,

1090
00:34:25,360 –> 00:34:28,480
prices are getting higher and higher. This is one fact

1091
00:34:28,480 –> 00:34:30,640
and people can’t buy anymore.

1092
00:34:30,640 –> 00:34:32,160
They start to rent and you ask me,

1093
00:34:32,160 –> 00:34:33,520
who are the people renting?

1094
00:34:33,520 –> 00:34:35,000
I really go and kepo (busybody) eh.

1095
00:34:35,000 –> 00:34:36,200
Eh who are your tenant ah?

1096
00:34:36,200 –> 00:34:37,920
Who ah? They come from where? Really?

1097
00:34:37,920 –> 00:34:41,000
Yeah. The people working, like if you stay near hospital,

1098
00:34:41,000 –> 00:34:42,840
you have your nurses lah,

1099
00:34:42,840 –> 00:34:44,960
who will stay there. International school,

1100
00:34:44,960 –> 00:34:46,120
your students lah.

1101
00:34:46,120 –> 00:34:48,400
But it’s actually surprisingly,

1102
00:34:48,400 –> 00:34:50,560
the rental really goes up a lot,

1103
00:34:50,560 –> 00:34:53,800
like we talk about Pasir Ris all the way to the end.

1104
00:34:53,800 –> 00:34:57,720
A small 3-bedder, you can get like $3,400.

1105
00:34:57,720 –> 00:34:59,240
I mean last time, how much only?

1106
00:34:59,240 –> 00:35:00,040
$2,600.

1107
00:35:00,040 –> 00:35:00,880
$2,500. Yeah.

1108
00:35:00,880 –> 00:35:01,720
$2,700.

1109
00:35:01,720 –> 00:35:02,560
Yeah.

1110
00:35:02,560 –> 00:35:03,600
Now it’s $3,500.

1111
00:35:03,600 –> 00:35:08,840
I mean $3,500 was pre-COVID, city-fringe, 3-bedder.

1112
00:35:08,840 –> 00:35:09,680
Now, city-fringe.

1113
00:35:09,680 –> 00:35:11,440
I don’t want to know, it’s like $4K to $5K lah.

1114
00:35:11,440 –> 00:35:12,400
It’s like wah, crazy leh.

1115
00:35:12,400 –> 00:35:14,400
But we will see this kind of trend getting more and more

1116
00:35:14,400 –> 00:35:16,840
it’s because prices is getting so high

1117
00:35:16,840 –> 00:35:19,680
where people can’t buy anymore and people start to rent.

1118
00:35:19,680 –> 00:35:21,160
This is a sad scenario.

1119
00:35:21,160 –> 00:35:24,160
I personally wish everyone to own a property when you can.

1120
00:35:24,160 –> 00:35:26,200
And especially when we are in such a good country

1121
00:35:26,200 –> 00:35:29,760
whereby you see not only Singaporeans are buying.

1122
00:35:29,760 –> 00:35:31,920
Foreigners, they are rushing to buy.

1123
00:35:31,920 –> 00:35:32,760
Yeah.

1124
00:35:32,760 –> 00:35:34,200
Even with ABSD, even with high interest,

1125
00:35:34,200 –> 00:35:35,040
they also don’t care.

1126
00:35:35,040 –> 00:35:36,400
They just want a piece of Singapore.

1127
00:35:36,400 –> 00:35:37,760
So how about Singaporeans?

1128
00:35:37,760 –> 00:35:38,600
Right?

1129
00:35:38,600 –> 00:35:39,440
Should get something lah.

1130
00:35:39,440 –> 00:35:41,200
I don’t wish everyone tell me,

1131
00:35:41,200 –> 00:35:42,880
“Eric, how I wish.”

1132
00:35:42,880 –> 00:35:45,240
No lah. No wish lah. Do now man.

1133
00:35:45,240 –> 00:35:47,320
The thing about plan now do now

1134
00:35:47,320 –> 00:35:48,760
and work towards your goal mah.

1135
00:35:48,760 –> 00:35:49,680
Discuss with your spouse.

1136
00:35:49,680 –> 00:35:52,280
That’s most important whereby which area you want to stay

1137
00:35:52,280 –> 00:35:54,600
for the next 5 to 8 years, midterm lah.

1138
00:35:54,600 –> 00:35:56,480
Then zoom in that area and do it.

1139
00:35:56,480 –> 00:35:58,960
So when interest rate increase,

1140
00:35:58,960 –> 00:36:03,000
those existing homeowners who are on floating rates, right?

1141
00:36:03,000 –> 00:36:05,280
Example, when mortgage increase even more,

1142
00:36:05,280 –> 00:36:07,360
do you think that that will also cause

1143
00:36:07,360 –> 00:36:09,600
an increase in future rental prices?

1144
00:36:09,600 –> 00:36:10,560
Because naturally,

1145
00:36:10,560 –> 00:36:11,400
Yeah.

1146
00:36:11,400 –> 00:36:14,080
Homeowners will want to pass on the rising cost now right?

1147
00:36:14,080 –> 00:36:15,080
Into the rental.

1148
00:36:15,080 –> 00:36:15,920
Yep.

1149
00:36:15,920 –> 00:36:17,160
This is one thing, interest rate.

1150
00:36:17,160 –> 00:36:19,720
Secondly, I think it’s because of the rise in demand.

1151
00:36:19,720 –> 00:36:22,880
I think landlords are also taken by shock

1152
00:36:22,880 –> 00:36:24,880
that, you know, when they wanna renew.

1153
00:36:24,880 –> 00:36:27,320
Then they realise that the transacted rental

1154
00:36:27,320 –> 00:36:28,800
has suddenly just shot up. Yeah.

1155
00:36:28,800 –> 00:36:29,640
Yeah.

1156
00:36:29,640 –> 00:36:32,000
So I think it is a little bit like a herd mentality that

1157
00:36:32,000 –> 00:36:35,200
over the past two years, 2020, 2021, 2022,

1158
00:36:35,200 –> 00:36:36,400
suddenly you want to renew

1159
00:36:36,400 –> 00:36:38,520
your existing residential investment role.

1160
00:36:38,520 –> 00:36:41,000
Then you see all the transacted rental has increased.

1161
00:36:41,000 –> 00:36:41,960
I also want to increase.

1162
00:36:41,960 –> 00:36:42,760
Yeah.

1163
00:36:42,760 –> 00:36:44,920
And then it sort of set the new benchmark, right?

1164
00:36:44,920 –> 00:36:45,720
Correct.

1165
00:36:45,720 –> 00:36:47,480
Do you think that rental prices

1166
00:36:47,480 –> 00:36:49,880
will come down over the next two years

1167
00:36:49,880 –> 00:36:51,520
or do you think it will continue to maintain

1168
00:36:51,520 –> 00:36:53,080
or maybe increase a little bit?

1169
00:36:53,080 –> 00:36:53,920
I mean, based on right now,

1170
00:36:53,920 –> 00:36:54,800
with the thoughts

1171
00:36:54,800 –> 00:36:56,320
that I don’t even know, where the people come from,

1172
00:36:56,320 –> 00:36:58,080
it’s already so high.

1173
00:36:58,080 –> 00:36:59,240
Next two years.

1174
00:36:59,240 –> 00:37:00,920
I mean, like, now things are starting to open up.

1175
00:37:00,920 –> 00:37:03,600
Yeah. Now, open up tourism, everything start.

1176
00:37:03,600 –> 00:37:04,960
Do you think some of the expats,

1177
00:37:04,960 –> 00:37:06,760
because now they can travel back.

1178
00:37:06,760 –> 00:37:09,080
Ah oh yeah. Talking about expats,

1179
00:37:09,080 –> 00:37:10,360
we talk about China,

1180
00:37:10,360 –> 00:37:13,280
because they still have very strict rules on their COVID.

1181
00:37:13,280 –> 00:37:15,520
They wanna make like COVID-zero.

1182
00:37:15,520 –> 00:37:16,320
Right

1183
00:37:16,320 –> 00:37:17,160
That’s the objective mah.

1184
00:37:17,160 –> 00:37:18,000
Yeah.

1185
00:37:18,000 –> 00:37:21,040
So, and you see the way, how they control the people.

1186
00:37:21,040 –> 00:37:22,360
If you are working there,

1187
00:37:22,360 –> 00:37:24,000
I think you will want to move to other country.

1188
00:37:24,000 –> 00:37:25,720
I mean, since you are already expats

1189
00:37:25,720 –> 00:37:27,400
going to other countries to work,

1190
00:37:27,400 –> 00:37:30,520
that’s why I see an influx of people like Hong Kong lah,

1191
00:37:30,520 –> 00:37:32,480
expats coming to Singapore lah.

1192
00:37:32,480 –> 00:37:35,080
I think there’s some articles talking about that.

1193
00:37:35,080 –> 00:37:37,440
I think that’s one of the reasons why rental increase

1194
00:37:37,440 –> 00:37:39,760
because we have such demand of expats

1195
00:37:39,760 –> 00:37:40,840
coming to Singapore to work.

1196
00:37:40,840 –> 00:37:42,400
I’m not sure about international student,

1197
00:37:42,400 –> 00:37:44,920
whether are they already coming to Singapore.

1198
00:37:44,920 –> 00:37:47,000
But since Singapore is opening up,

1199
00:37:47,000 –> 00:37:49,720
people will take this as another alternative country

1200
00:37:49,720 –> 00:37:51,280
to come to work and study here.

1201
00:37:51,280 –> 00:37:54,120
So next two years, I only know something.

1202
00:37:54,120 –> 00:37:55,920
If rental is already at this price,

1203
00:37:55,920 –> 00:37:58,720
it will only fluctuate around that price.

1204
00:37:58,720 –> 00:38:02,200
You don’t really get like pre-COVID price anymore.

1205
00:38:02,200 –> 00:38:03,520
That’s my thoughts lah.

1206
00:38:03,520 –> 00:38:04,520
It may go low,

1207
00:38:04,520 –> 00:38:06,880
but you won’t get that kind of pre-COVID price anymore.

1208
00:38:06,880 –> 00:38:08,440
Yeah. So we need to condition ourselves.

1209
00:38:08,440 –> 00:38:09,600
The times have changed lah.

1210
00:38:09,600 –> 00:38:11,600
So this is about the benchmark that you’re looking at.

1211
00:38:11,600 –> 00:38:14,080
Even if they soft, soften by a bit only lah.

1212
00:38:14,080 –> 00:38:15,440
Okay so last question.

1213
00:38:15,440 –> 00:38:18,360
Why did I ask that question about the young buyers

1214
00:38:18,360 –> 00:38:20,680
and investors is that I think a lot of people

1215
00:38:20,680 –> 00:38:22,200
on the ground will be thinking that,

1216
00:38:22,200 –> 00:38:26,080
If I’m a single person, my choices are so limited.

1217
00:38:26,080 –> 00:38:28,480
If I want to buy my first property, HDB,

1218
00:38:28,480 –> 00:38:30,480
it has to be 35 years old.

1219
00:38:30,480 –> 00:38:32,320
Yeah. So that’s not a good choice.

1220
00:38:32,320 –> 00:38:33,280
Yeah, then from now.

1221
00:38:33,280 –> 00:38:36,080
Let’s say I graduate, 25 to 35, 10 years I’m stuck.

1222
00:38:36,080 –> 00:38:37,520
– Do anything.
– I cannot buy anything.

1223
00:38:37,520 –> 00:38:38,360
I can’t buy anything.

1224
00:38:38,360 –> 00:38:41,040
The only way out is if I want a place of my own, I rent.

1225
00:38:41,040 –> 00:38:42,120
Like what you mentioned right?

1226
00:38:42,120 –> 00:38:44,080
And rental is also increasing tremendously.

1227
00:38:44,080 –> 00:38:45,240
– Correct.
– So the other option

1228
00:38:45,240 –> 00:38:46,720
is for me to quickly save up that first down payment,

1229
00:38:46,720 –> 00:38:50,800
but that first down payment is getting wider and wider

1230
00:38:50,800 –> 00:38:53,840
in terms of the 25% plus the Buyer’s Stamp Duty

1231
00:38:53,840 –> 00:38:54,840
and all that kind of stuff.

1232
00:38:54,840 –> 00:38:56,280
Then of course the third way is

1233
00:38:56,280 –> 00:38:58,000
for me to get married because then I can.

1234
00:38:58,000 –> 00:39:00,000
Yeah, but that one is you can’t control as well.

1235
00:39:00,000 –> 00:39:01,240
Yeah, you can’t control right?

1236
00:39:01,240 –> 00:39:03,960
But I think the fortunate thing about us being in Singapore

1237
00:39:03,960 –> 00:39:07,880
is that we always have that option of quicker entry.

1238
00:39:07,880 –> 00:39:10,560
Should you be successful in finding your life partner.

1239
00:39:10,560 –> 00:39:12,240
Because the moment you find a life partner,

1240
00:39:12,240 –> 00:39:13,920
– you can go straight to resale.
– More options.

1241
00:39:13,920 –> 00:39:16,120
You can get grant. Grant is very powerful.

1242
00:39:16,120 –> 00:39:17,680
You can, of course, BTO.

1243
00:39:17,680 –> 00:39:19,960
You technically waste that construction period,

1244
00:39:19,960 –> 00:39:21,880
4, 5 years then you wait another 5 years.

1245
00:39:21,880 –> 00:39:24,600
But I think we always have that base level of support

1246
00:39:24,600 –> 00:39:27,360
in terms of the grants to go into a HDB first.

1247
00:39:27,360 –> 00:39:29,760
Then they can have the capability to upgrade.

1248
00:39:29,760 –> 00:39:32,440
The question that I want to come back and ask your thoughts

1249
00:39:32,440 –> 00:39:33,760
is that in,

1250
00:39:33,760 –> 00:39:38,320
let’s say now it’s 2022, 2030, 8 year’s time,

1251
00:39:38,320 –> 00:39:41,520
what do you think will be an entry price of…

1252
00:39:41,520 –> 00:39:46,360
Okay. Now a new launch RCR is at least $2,000 PSF, right? PSF.

1253
00:39:46,360 –> 00:39:52,000
2030, what will be the entry price of an RCR new launch?

1254
00:39:52,000 –> 00:39:55,360
Because then we can work backwards to the quantum price.

1255
00:39:55,360 –> 00:39:56,720
Okay, so before you answer it.

1256
00:39:56,720 –> 00:39:57,960
Yeah.

1257
00:39:57,960 –> 00:40:00,200
Now $2,000 PSF based off of a size

1258
00:40:00,200 –> 00:40:03,080
of 600-odd sqft, entry is already

1259
00:40:03,080 –> 00:40:04,960
– $1.3 mil
– $1.2+ mil.

1260
00:40:04,960 –> 00:40:06,680
And we’re talking about low-floor.

1261
00:40:06,680 –> 00:40:08,080
Okay. We’re talking about low-floor.

1262
00:40:08,080 –> 00:40:09,160
Low-floor. No view. Everything low.

1263
00:40:09,160 –> 00:40:12,000
If high-floor will be $1.4 mil, $1.5 mil, $1.6 mil. Okay.

1264
00:40:12,000 –> 00:40:14,920
So 2030, what is your projection? PSF.

1265
00:40:14,920 –> 00:40:16,600
Based on how things are moving.

1266
00:40:16,600 –> 00:40:18,680
Yeah. Okay. Good question.

1267
00:40:18,680 –> 00:40:21,560
But maybe I just add a bit more numbers

1268
00:40:21,560 –> 00:40:25,600
for new launch right now, 2022, the 3-bedder…

1269
00:40:25,600 –> 00:40:26,800
We talk about 3-bedder.

1270
00:40:26,800 –> 00:40:27,800
Yeah. Then we use 3-bedder

1271
00:40:27,800 –> 00:40:29,600
If you are talking about 2-bedder,

1272
00:40:29,600 –> 00:40:30,880
you just add more PSF on top.

1273
00:40:30,880 –> 00:40:32,080
We talk about 2- and 3-bedder.

1274
00:40:32,080 –> 00:40:34,840
2- and 3-bedder lah. So if…

1275
00:40:34,840 –> 00:40:36,200
Okay so now 2022,

1276
00:40:36,200 –> 00:40:37,880
by right

1277
00:40:37,880 –> 00:40:39,960
the 3-bedder should be selling

1278
00:40:39,960 –> 00:40:42,960
between around $2,100 PSF due to all the land price,

1279
00:40:42,960 –> 00:40:44,640
blah, blah, blah, blah, blah.

1280
00:40:44,640 –> 00:40:45,480
So it’s about $2,100 PSF

1281
00:40:45,480 –> 00:40:46,320
RCR?

1282
00:40:46,320 –> 00:40:47,160
Yeah, RCR.

1283
00:40:47,160 –> 00:40:48,680
And of course I hope the lower better lah.

1284
00:40:48,680 –> 00:40:50,760
So even you put the number to $2,000 PSF,

1285
00:40:50,760 –> 00:40:52,720
that means your 2-bedder should be about $2,100 PSF,

1286
00:40:52,720 –> 00:40:53,960
around $2,100 PSF.

1287
00:40:53,960 –> 00:40:57,640
So you times the sqft, you put 700 sqft, a bit luxury.

1288
00:40:57,640 –> 00:41:01,080
700 sqft times $2,100 PSF, $1.4+ mil.

1289
00:41:01,080 –> 00:41:04,000
So talking about $1.4+ mil for a 2-bedder

1290
00:41:04,000 –> 00:41:05,960
in city fringe, is it healthy?

1291
00:41:05,960 –> 00:41:07,000
The answer is yes.

1292
00:41:07,000 –> 00:41:11,400
Because if you can see all the sub-sale or all the condos

1293
00:41:11,400 –> 00:41:13,640
less than five years old, their 2-bedder,

1294
00:41:13,640 –> 00:41:16,040
2-bath is about $1.4 mil.

1295
00:41:16,040 –> 00:41:16,880
Right.

1296
00:41:16,880 –> 00:41:17,880
– Some even go up to $1.5 mil.
– Yeah.

1297
00:41:17,880 –> 00:41:20,560
So you say brand new at $1.4 mil.

1298
00:41:20,560 –> 00:41:21,400
Yeah.

1299
00:41:21,400 –> 00:41:22,440
Is it a steal? Yes.

1300
00:41:22,440 –> 00:41:24,720
So we can say that $2,000 PSF for 3-bedder,

1301
00:41:24,720 –> 00:41:29,000
$2,100 PSF for 2-bedder is healthy, but reality,

1302
00:41:29,000 –> 00:41:32,440
I think developer is $2,100 PSF for 3-bedder,

1303
00:41:32,440 –> 00:41:33,960
$2,200 PSF for 2-bedder.

1304
00:41:33,960 –> 00:41:35,440
Then they will be more balanced mah.

1305
00:41:35,440 –> 00:41:37,400
It’s like, “Hey, resale already so expensive.

1306
00:41:37,400 –> 00:41:39,400
My one brand new leh, should be higher mah.”

1307
00:41:39,400 –> 00:41:40,200
Right.

1308
00:41:40,200 –> 00:41:42,600
So always minus $100 PSF on the year.

1309
00:41:42,600 –> 00:41:43,440
So what is that?

1310
00:41:43,440 –> 00:41:45,560
If it’s 2022, 3-bedder $2,100 PSF.

1311
00:41:45,560 –> 00:41:47,960
If it’s 2024, 3-bedder $2,300 PSF.

1312
00:41:47,960 –> 00:41:52,480
So if you see DBS article, they put out some time back, 2030,

1313
00:41:52,480 –> 00:41:55,320
city fringe should be $2,900 PSF for 3-bedder.

1314
00:41:55,320 –> 00:41:57,080
So if you say 2-bedder, $3,000 PSF.

1315
00:41:57,080 –> 00:42:00,640
So $3,000 PSF times 700 sqft. No lah, by that time, no 700 sqft.

1316
00:42:00,640 –> 00:42:01,800
At that time, 500 sqft only.

1317
00:42:01,800 –> 00:42:05,200
So, your projection is that every year

1318
00:42:05,200 –> 00:42:06,680
– it will increase by $100 PSF?
– Yeah, it’s about $100 PSF.

1319
00:42:06,680 –> 00:42:08,680
$100 PSF increment, every year?

1320
00:42:08,680 –> 00:42:10,840
Every year. For new launch lah, for new launch.

1321
00:42:10,840 –> 00:42:12,600
So when people ask me about how about resale?

1322
00:42:12,600 –> 00:42:15,160
Of course, resale won’t move as fast as new launch.

1323
00:42:15,160 –> 00:42:16,120
Yeah.

1324
00:42:16,120 –> 00:42:19,840
You can taper down to $70/ $80 PSF (increase) for the newer ones lah,

1325
00:42:19,840 –> 00:42:22,640
but we can see that the trend of $100 PSF

1326
00:42:22,640 –> 00:42:24,480
for this one, two years.

1327
00:42:24,480 –> 00:42:26,680
Yeah it’s there. It’s every year $100 PSF, every year $100 PSF.

1328
00:42:26,680 –> 00:42:28,360
And thinking about that is scary, man.

1329
00:42:28,360 –> 00:42:29,280
Yeah. Yeah.

1330
00:42:29,280 –> 00:42:31,440
Actually, you talk about resale, right?

1331
00:42:31,440 –> 00:42:33,920
I think there are some blue chip properties. Okay.

1332
00:42:33,920 –> 00:42:37,160
So for example, something that shocked us

1333
00:42:37,160 –> 00:42:39,160
is City Square Residences.

1334
00:42:39,160 –> 00:42:40,480
Yeah. I know that one.

1335
00:42:40,480 –> 00:42:41,320
Shocking.

1336
00:42:41,320 –> 00:42:42,280
Actually the other one,

1337
00:42:42,280 –> 00:42:47,440
I also thought shocking is Kerrisdale, 99-year, 17 year old.

1338
00:42:47,440 –> 00:42:49,200
A lot of people thought that it’s old.

1339
00:42:49,200 –> 00:42:50,120
Right.

1340
00:42:50,120 –> 00:42:50,960
But if you see the recent transactions, wah,

1341
00:42:50,960 –> 00:42:53,560
they make like a few $100K, there.

1342
00:42:53,560 –> 00:42:54,680
Just have a look at City Square Residences.

1343
00:42:54,680 –> 00:43:00,040
The 3-bedder just at the beginning of 2021 was doing at

1344
00:43:00,040 –> 00:43:01,400
about $1.8 mil.

1345
00:43:01,400 –> 00:43:03,920
$1.8 mil, $1.9 mil.

1346
00:43:03,920 –> 00:43:06,000
Oiyo today, everyone,

1347
00:43:06,000 –> 00:43:07,640
want to make a guess?

1348
00:43:07,640 –> 00:43:08,560
Now is…

1349
00:43:08,560 –> 00:43:09,400
What do you see there?

1350
00:43:09,400 –> 00:43:11,040
Okay, but no such prices.

1351
00:43:11,040 –> 00:43:14,360
End of December, transacted was $2.26 mil.

1352
00:43:14,360 –> 00:43:16,680
Yup. There are two. I remember there’s two of them.

1353
00:43:16,680 –> 00:43:19,240
Yeah. So now people are asking about $2.5 mil already.

1354
00:43:19,240 –> 00:43:20,800
Okay. And I have the latest news guys.

1355
00:43:20,800 –> 00:43:21,200
Okay.

1356
00:43:21,200 –> 00:43:22,760
Okay. I have consultation mah.

1357
00:43:22,760 –> 00:43:25,920
So this person came to me for consultation, and told me,

1358
00:43:25,920 –> 00:43:30,640
“Eric, my friend just sold $2.3+ mil, haven’t caveat.”

1359
00:43:30,640 –> 00:43:31,480
So you will see

1360
00:43:31,480 –> 00:43:32,840
So that means from last year until now,

1361
00:43:32,840 –> 00:43:36,440
in about 15 months, the appreciation is about $500K.

1362
00:43:36,440 –> 00:43:40,440
So $500K based on last year’s transacted at $1.8+ mil,

1363
00:43:40,440 –> 00:43:44,120
that’s close to at least about a 30~% increase

1364
00:43:44,120 –> 00:43:44,960
in the last one year.

1365
00:43:44,960 –> 00:43:47,360
So I think sometimes there are blue chip resale.

1366
00:43:47,360 –> 00:43:48,400
For example, this is a blue chip

1367
00:43:48,400 –> 00:43:50,880
because this is like the last freehold beside the MRT station.

1368
00:43:50,880 –> 00:43:52,160
Okay. So I learned something today.

1369
00:43:52,160 –> 00:43:54,760
So to Melvin, this is blue chip.

1370
00:43:54,760 –> 00:43:56,080
– Blue chip resale.
– Blue chip resale.

1371
00:43:56,080 –> 00:43:57,160
Okay, so a lot of people tend to ask me,

1372
00:43:57,160 –> 00:43:59,520
“Eric, what is considered good property?”

1373
00:43:59,520 –> 00:44:02,840
This is what is called good. Blue chip. Blue chip.

1374
00:44:02,840 –> 00:44:03,720
Okay. Yeah.

1375
00:44:03,720 –> 00:44:06,520
So this is what I call, there are good properties like that.

1376
00:44:06,520 –> 00:44:08,320
Okay. So what is the spur of the good area?

1377
00:44:08,320 –> 00:44:11,200
This one, people will think that Piccadilly Grand

1378
00:44:11,200 –> 00:44:12,120
is like

1379
00:44:12,120 –> 00:44:13,440
so expensive ah, buy resale lah…

1380
00:44:13,440 –> 00:44:16,000
freehold some more, nearer to the mall at this price.

1381
00:44:16,000 –> 00:44:18,000
That’s why you see that there are good properties,

1382
00:44:18,000 –> 00:44:19,240
blue chip properties like that.

1383
00:44:19,240 –> 00:44:21,600
And if you want to have another comparison,

1384
00:44:21,600 –> 00:44:23,920
we can see Cote D’Azur, it’s a French word.

1385
00:44:23,920 –> 00:44:24,760
I don’t know how to pronounce.

1386
00:44:24,760 –> 00:44:26,040
Yeah. Correct. Cote D’Azur, correct.

1387
00:44:26,040 –> 00:44:29,200
Okay. So I remember in November last year.

1388
00:44:29,200 –> 00:44:31,280
The 3-bedder is about $2 mil,

1389
00:44:31,280 –> 00:44:32,560
$1.9~ mil, $2 mil,

1390
00:44:32,560 –> 00:44:37,000
$1.9~ mil, $2 mil. One month later, December, $2.38 mil.

1391
00:44:37,000 –> 00:44:39,160
So imagine you are the buyer of the $2 mil.

1392
00:44:39,160 –> 00:44:40,080
You’ll know that. Oh,

1393
00:44:40,080 –> 00:44:43,680
I have already make $380K, paper gain lah. I mean,

1394
00:44:43,680 –> 00:44:45,440
you will feel good when you see that. Oh.

1395
00:44:45,440 –> 00:44:47,840
Yeah. You can refinance lah, you can cash out a little bit.

1396
00:44:47,840 –> 00:44:49,840
Wah, people buy higher than me.

1397
00:44:49,840 –> 00:44:50,960
Okay. So that’s the fun,

1398
00:44:50,960 –> 00:44:53,120
of property buying in a blue chip property. Okay.

1399
00:44:53,120 –> 00:44:55,840
So I have people wanted to buy Cote D’Azur.

1400
00:44:55,840 –> 00:44:58,160
I mean, usually when I recommend this kind of property,

1401
00:44:58,160 –> 00:44:59,600
it will go up. We just don’t know when.

1402
00:44:59,600 –> 00:45:02,560
Right. So if you bought previously last year, hoseh (good) lah.

1403
00:45:02,560 –> 00:45:05,760
Yeah. So at $2.38 mil, how you going to buy?

1404
00:45:05,760 –> 00:45:09,240
So I told my member, how about you pray hard,

1405
00:45:09,240 –> 00:45:11,680
you hope for the next transaction to drop.

1406
00:45:11,680 –> 00:45:13,600
Okay, so next transaction, $2.18 mil,

1407
00:45:13,600 –> 00:45:15,720
then you think, “Hey, drop by $200K.”

1408
00:45:15,720 –> 00:45:19,640
But it was $180K higher than two months ago.

1409
00:45:19,640 –> 00:45:22,040
I mean, those people buy $2 mil. So it’s $2 mil,

1410
00:45:22,040 –> 00:45:24,640
$2.38 mil then now $2.18 mil.

1411
00:45:24,640 –> 00:45:25,920
It’s still higher.

1412
00:45:25,920 –> 00:45:28,960
So my advice you have no choice lah, condition lor.

1413
00:45:28,960 –> 00:45:30,640
This is the benchmark right now.

1414
00:45:30,640 –> 00:45:35,440
So $2.18 mil followed by like $2.15 mil followed by $2.1 mil something

1415
00:45:35,440 –> 00:45:38,680
later, $2.4~ mil.

1416
00:45:38,680 –> 00:45:40,520
Then I tell them good game already lah.

1417
00:45:40,520 –> 00:45:42,680
So move on.

1418
00:45:42,680 –> 00:45:44,320
So you see, when city-fringe

1419
00:45:44,320 –> 00:45:45,520
give you that kind of price.

1420
00:45:45,520 –> 00:45:46,320
Yeah.

1421
00:45:46,320 –> 00:45:47,160
You can’t make it anymore.

1422
00:45:47,160 –> 00:45:48,920
You go for the next one lor, next station lah,

1423
00:45:48,920 –> 00:45:51,040
next station don’t have nothing. Marine Terrace, nothing.

1424
00:45:51,040 –> 00:45:52,120
Then Siglap,

1425
00:45:52,120 –> 00:45:54,520
you have your Seaside Residences, which is very new.

1426
00:45:54,520 –> 00:45:56,320
So it’s not a very good comparison.

1427
00:45:56,320 –> 00:45:57,120
Yeah.

1428
00:45:57,120 –> 00:45:58,080
Then you have Bayshore mah.

1429
00:45:58,080 –> 00:45:58,920
Yeah.

1430
00:45:58,920 –> 00:46:00,360
So even at Bayshore, Costa Del Sol

1431
00:46:00,360 –> 00:46:02,800
which is the same year as Cote D’Azur,

1432
00:46:02,800 –> 00:46:03,720
they are both 18 years old.

1433
00:46:03,720 –> 00:46:06,400
Also transacted at about 3-bedder, $2.1~ mil.

1434
00:46:06,400 –> 00:46:07,240
Yeah.

1435
00:46:07,240 –> 00:46:08,680
I look at transactions every day.

1436
00:46:08,680 –> 00:46:11,080
So I know that there are times it’s undervalue

1437
00:46:11,080 –> 00:46:13,520
because Cote D’Azur, which is a city-fringe one

1438
00:46:13,520 –> 00:46:15,280
versus the Bayshore Costa Del Sol,

1439
00:46:15,280 –> 00:46:18,040
they were transacting about the same price for their

1440
00:46:18,040 –> 00:46:19,600
3-bedder last year.

1441
00:46:19,600 –> 00:46:22,720
So of course taking a newer one in city fringe,

1442
00:46:22,720 –> 00:46:25,400
with Tao Nan Primary, is a no-brainer.

1443
00:46:25,400 –> 00:46:26,320
Okay. So at the end of day,

1444
00:46:26,320 –> 00:46:29,000
you need to know where are the opportunities.

1445
00:46:29,000 –> 00:46:32,720
Focus on opportunities rather than focus on,

1446
00:46:32,720 –> 00:46:33,600
wah, interest rates going up sia

1447
00:46:33,600 –> 00:46:34,960
How, ah?

1448
00:46:34,960 –> 00:46:35,800
I mean,

1449
00:46:35,800 –> 00:46:37,960
what you’re saying is that some people focus a lot

1450
00:46:37,960 –> 00:46:38,760
on macro.

1451
00:46:38,760 –> 00:46:39,600
Yeah.

1452
00:46:39,600 –> 00:46:40,440
Right. But actually on the micro,

1453
00:46:40,440 –> 00:46:42,760
on the ground at PLB we call it the disparity effect,

1454
00:46:42,760 –> 00:46:44,160
some projects will move first.

1455
00:46:44,160 –> 00:46:45,000
Okay. Now I learned something.

1456
00:46:45,000 –> 00:46:46,880
– Disparity effect.
– Yeah, the other…okay.

1457
00:46:46,880 –> 00:46:47,720
So for example,

1458
00:46:47,720 –> 00:46:50,320
recently I was just sharing with my guys.

1459
00:46:50,320 –> 00:46:51,960
Just have a look at Mandarin Gardens.

1460
00:46:51,960 –> 00:46:53,600
So a lot of people think that, well,

1461
00:46:53,600 –> 00:46:55,880
old properties, no appreciation, actually

1462
00:46:55,880 –> 00:46:57,280
– I don’t know why ah, they always say

1463
00:46:57,280 –> 00:46:59,360
lease decay lah.

1464
00:46:59,360 –> 00:47:02,920
Okay. So Mandarin Gardens, 99-year from 1982.

1465
00:47:02,920 –> 00:47:04,040
Wah, older than me.

1466
00:47:04,040 –> 00:47:04,880
One year younger than me.

1467
00:47:04,880 –> 00:47:07,560
Oh. So then we are the same age lah.

1468
00:47:07,560 –> 00:47:08,640
Okay. Then it’s quite young,

1469
00:47:08,640 –> 00:47:09,480
40 years old.

1470
00:47:09,480 –> 00:47:10,320
it’s quite young

1471
00:47:10,320 –> 00:47:11,160
Thank you, thank you.

1472
00:47:11,160 –> 00:47:12,720
It’s a young project guys, buy!

1473
00:47:12,720 –> 00:47:13,760
Okay. 40 years old.

1474
00:47:13,760 –> 00:47:16,520
That means balance left, 50+ (years).

1475
00:47:16,520 –> 00:47:17,360
Yeah. Okay.

1476
00:47:17,360 –> 00:47:18,200
So have a look at this.

1477
00:47:18,200 –> 00:47:19,400
This is also very strange lah.

1478
00:47:19,400 –> 00:47:20,640
There’s no way that you can get

1479
00:47:20,640 –> 00:47:22,880
such a huge property anymore.

1480
00:47:22,880 –> 00:47:23,720
At this price.

1481
00:47:23,720 –> 00:47:24,560
Yeah. At this price.

1482
00:47:24,560 –> 00:47:26,600
So for example, have a look at, okay,

1483
00:47:26,600 –> 00:47:27,560
so 3-bedder is 1,500 sqft.

1484
00:47:27,560 –> 00:47:30,280
Then some of the big ones, yeah

1485
00:47:30,280 –> 00:47:32,480
3-bedder at average here about 1,500 sqft.

1486
00:47:32,480 –> 00:47:34,480
So last year March, 1,500~ sqft

1487
00:47:34,480 –> 00:47:36,800
is going at $1.6 mil to $1.8 mil.

1488
00:47:36,800 –> 00:47:38,760
Now, latest transaction is at $2 mil.

1489
00:47:38,760 –> 00:47:39,840
Whoa!

1490
00:47:39,840 –> 00:47:42,520
So it is about one year, it’s also about one year.

1491
00:47:42,520 –> 00:47:44,200
But this project has the en bloc effect.

1492
00:47:44,200 –> 00:47:46,320
But of course, en bloc is very hard to happen.

1493
00:47:46,320 –> 00:47:47,160
Yeah.

1494
00:47:47,160 –> 00:47:47,960
Because a lot of people don’t want to let go right.

1495
00:47:47,960 –> 00:47:50,480
Yeah, so they may want to try lah.

1496
00:47:50,480 –> 00:47:52,560
That’s why they have, they may have this effect.

1497
00:47:52,560 –> 00:47:55,120
Okay, great, so, fantastic to have Eric,

1498
00:47:55,120 –> 00:47:56,160
thank you for coming.

1499
00:47:56,160 –> 00:47:56,960
Thank you for…

1500
00:47:56,960 –> 00:47:58,240
Good to have you for second round.

1501
00:47:58,240 –> 00:47:59,320
Let’s do the third one eh.

1502
00:47:59,320 –> 00:48:02,880
Can, I think we can meet, once every six months,

1503
00:48:02,880 –> 00:48:04,440
especially when the market changes.

1504
00:48:04,440 –> 00:48:05,040
Yeah.

1505
00:48:05,040 –> 00:48:05,640
Good to come back.

1506
00:48:05,640 –> 00:48:06,200
True, true.

1507
00:48:06,200 –> 00:48:08,640
All right so everybody, this is Eric Chiew and

1508
00:48:08,640 –> 00:48:10,640
we’ll see you on the next episode of Sofa So Good.

1509
00:48:10,640 –> 00:48:11,040
All right.