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

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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

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Okay I may be wrong, but maybe about 1.1%, 1.2%.

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But it’s a gamble because you do not know

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how high the interest rate will go.

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But to me, I just guess, ah.

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You don’t take my word seriously. I just guess.

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This year floating rate,

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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, 有GST, 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.