Every dog has it's day and certainly the Singapore property market has had it's days for the last three years. The market has gotten a great rally and prices are way ahead of the last peak in 2007. However, with the Europe debt crisis and the slowdown of the Chinese economy, Singapore seems to be affected as well. The property market is taking a hit and volumes have come down. As a real estate salesperson, I have felt the slowdown in terms of the number of appointments I have. However, buyers in the market are generally sincere and there are still sellers who are willing to let go at reasonable prices and thus deals can still be concluded. To be frank, the last two to three months have been my best months in terms of sales figures for the whole of 2011.
However, what will happen when almost all those who need a house have made a purchase? What happens if prices take a dip and sellers decide it is not worth their while to try to get a good price for their properties? What if sales volumes drop drastically? This time round, there probably will not be a quick rebound off recessionary lows. The main drivers of global economy, the US, Europe and China are facing problems of their own. Whatever is said, Singapore is definitely NOT immune to a global slowdown. The mere fact that the government is warning of a possible slowdown would mean that they have already seen some figures before we have and it does not look too rosy.
Just recently, my CEO spoke to me about maintaining one's bottom line. ie. keeping costs low. I realise that this is a very important concept lost by many out there. When times are good, some may spend lavishly on their lifestyle. They splurge on cars, branded goods and holidays. To them, summer is 24 hours a day, 7 days a week, 52 weeks a year and will never go away. Prudence is a concept lost by salespeople. I fear for those who have over-committed. Instead of upgrading our debt during the booming years, we should be downgrading our commitments.
Only time will tell who can stand the test of time. Times will be leaner but then for those who are willing to persevere and work hard, they can tide through the winter that is the upcoming economic downturn.
Yours Sincerely,
Daryl Lum
(+65) 9009 8731
visit my website @ www.DarylLum.com
read my blog @ www.DarylLum.blogspot.com
