The Edge has released the weekly list of Singapore property transactions done between January 15th to January 22nd 2010.
Download a copy of the pdf here.
Among the Highlights
Uber Construction Costs
First off we’re facing with high construction costs which is being forecasted to grow imminently because of high inflation rates and the shortage in raw materials, we should expect our property prices in Singapore to tag along with the cost since developers will definitely pass this to the consumers.
Hi-End Residences Performing at an Uber Cool Pace
Then we have CBRE (in fact many of CBRE’s reports) reporting that the high-end residential sectors are doing extremely well. With 50 luxury apartments (upscale luxury developments such as Nassim Park Residence, Cliveden at Grange, The Tomlinson, The Grange, and the Orange Grove condos ) going above the 10 million dollar mark, the forecast for these projects are suppose to hike.
Healthy Weekend Home Sales
ST701 reported on the recent weekend home sale is moving really well.
Suites 123 at Rangoon Road was sold out – a rarity these days – while Oxley Ventures offloaded 50 units of Parc Sophia in Adis Road. Sales were also healthy at Dakota Residences in Dakota Crescent.
Market watchers said the sales at these mid-market projects show that homebuyers can be drawn off the sidelines if prices are attractive.
There’re in fact plenty of buyers just waiting for the right time to get the right property at the right price and chances are they’re just waiting on the fence to see the general market direction on whether it’s the right time to buy.
Sub-Prime Isn’t An Issue?
We kept hearing about complains on US sub-prime issues and on the depths of how serious it has impacted the US. I know, I know, we don’t really know the extent of the damage. But how much has it really impacted Asian countries?
Through Asian crisis (Asians are well known to be more conservative, and most are still, in the business sector), most Asian countries, especially Singapore and Hong Kong, who were once known as the Asian Tigers suffered massive blow has probably learnt from mistakes that they shouldn’t just solely depend on the US for import/ export/ trades.
Things have certainly changed way back since 1997 times. With rising tigers like China and India doing extremely well themselves, most Asian countries has more dealings with their own network internally. Usually impacts like a crisis, we could feel the difference, such as the lifestyle of a normal man on the street.. it hasn’t changed much even after the sub-prime issue has surfaced.
Well, is it the right time to buy Singapore properties now for investment or even your own stay? You be the judge.
Continuing from where we left, we’ll now can up the process of acquiring a piece of real estate in Singapore. There are generally two ways of purchasing a private residential property in Singapore.
By Way of an Option to Purchase
This is the more common way of transacting. You will have to come up with an initial 1% of the purchase price (we call it the “option money”) in exchange for the Option to Purchase.
Your are usually given 14 days to decide whether to proceed with the purchase. If you decide to proceed, exercise the option by signing and forward it to the seller’s solicitor together with another 4% of the purchase price.
Note if you think you would want to abandon your intention to purchase, the seller (vendor) will be entitled to forfeit your option money.
Completion of sale will usually be 8 – 12 weeks after exercising the option. This period allows both solicitors to seek relevant authority permissions, lodging a caveat and check whether the property title is make good.
By Sales and Purchase Agreement
Less common way to transact (example: developer sale). You usually pay a deposit of 5% to 10% usually of the purchase price. There’s no backing out upon signing a Sales and Purchase Agreement unless the seller (vendor) is unable to fulfill certain conditions in the agreement.
But Before Purchasing..
Before signing any Option to Purchase or Sales & Purchase agreement, always be prudent and ask your Realtor to vet the clauses properly for you. And to be on an even safer side, you can always forward the copy of Option to Purchase for your solicitor to vet everything is A-okay.
Your Realtor can always use an Offer to Purchase with the words ‘Subject to Contract’ added to be on tbe safe side in your favor pending on situations. Remember to add these words at the back of your cheque as well.