IntroductionHey, what's up, everyone? It's your boy, Iggy, from The Investing Iguana, back with another video that you absolutely don't want to miss! Today, we're diving deep into Singapore's property market, and let me tell you, the numbers for September are in, and they're a bit of a rollercoaster! So, if you're an investor, a homebuyer, or just a curious cat, stick around because we're about to break it down! The September Slum Let's dive deeper into what happened in September. So, imagine you're watching a movie and you're waiting for the big action scene, but it never comes. That's pretty much what September was like for selling new private homes in Singapore. It was like everything was moving in slow motion, just like when a movie slows down to show you all the details of an action scene. For the second month in a row, the number of homes sold went down. But don't look so shocked! There's a reason for it. You see, there weren't any big, exciting new housing projects that came out for people to buy. It's like when a movie doesn't have any new, cool characters, so you're not as excited to watch it. And oh, there's another thing! You know how some people believe in ghosts and spirits? Well, in Singapore, there's this thing called the Hungry Ghost Festival, and it happens during the lunar seventh month. It ended in the middle of September. During this time, a lot of people think it's not the best idea to make big decisions like buying a house. It's like how some people won't walk under a ladder because they think it's bad luck. So, the property market kind of takes a little break, like a short nap, during this festival. That's why not many homes got sold. So, all in all, September was a quiet month for home sales, but there were some pretty good reasons for it. 217 HomesIn September, property developers managed to sell only 217 homes, which is a really big drop of almost 45% compared to the 394 homes they sold in August. That's like going from selling a whole bunch of candy bars one month to selling less than half the next month! The Urban Redevelopment Authority, or URA for short, said that there were only 68 new homes put up for sale in September. That's way less than the 590 new homes that were available in August and even more shockingly less than the 2,156 homes in July. So, imagine if you had a lemonade stand and one month you had gallons and gallons of lemonade to sell, and then the next month you had just a tiny bit. That's what happened here. Yikes, indeed! Historical Lows ExplainedAlright, let's dive into some history to understand what's going on. September 2023 was a really tough month for sales, the toughest we've seen since December of last year. During this month, only 170 things were sold, making it the slowest September ever since the URA, which is a group that keeps an eye on this stuff, started keeping records in 2007. Now, if you compare this September to the same month last year, you'll see that sales took a big nosedive, dropping by a whopping 78% from 987 units sold back then. That's a huge drop! And if you're wondering about executive condominiums, which are fancier types of homes also known as ECs, well, they didn't do so hot either. Sales of these ECs went down by almost half, falling 48.4% from 649 units sold in August to just 335 units in September. So, all in all, it was a pretty rough month for sales. Best-Selling ProjectsDespite the fact that there weren't any major new projects being launched, certain housing developments still caught people's attention and made headlines. For example, the recently introduced Executive Condominium (EC) project called Altura has been doing really well. They managed to sell an additional 100 homes, which means they've now sold a grand total of 316 units! That's a lot of happy new homeowners! But Altura isn't the only one that's been popular. There are other developments that have also been selling like hotcakes. Pullman Residences Newton is one of them, and so are Lentor Hills Residences and Grand Dunman. These projects have also been making waves and attracting a lot of buyers, making them some of the best-selling properties around. So, even without any big, flashy new launches, these developments have proven that they have what it takes to be successful and are definitely worth keeping an eye on. Market SegmentationLast month's transactions were pretty evenly distributed across Singapore's three market segments. We had 35% of sales in the Core Central Region (CCR), 32.7% in the Rest of Central Region (RCR), and 32.3% in the Outside of Central Region (OCR). Alright, let's discuss the big issue that everyone is thinking about but not really talking about: the homes that nobody is buying. You see, in specific areas like RCR and OCR, there are more and more of these unsold homes just sitting there. This started to happen a lot after the government put in some new rules in April to cool down the housing market. These rules made it a bit harder for people to buy new homes, so now there are more homes that no one is living in. Because of this, some people who want to buy a home are saying, "Hey, why don't we look at homes that people used to live in?" These are called resale homes, and they're usually cheaper than brand-new homes. The difference in price between new homes and resale homes is getting bigger and bigger, making resale homes look even more attractive. So, some buyers are now thinking it might be a smarter choice to go for these resale homes instead of the new ones that are just sitting there, unsold. Luxury CondosIf you're someone who really enjoys the best and most luxurious things, you might be interested to know that for the third month in a row, no brand-new homes that aren't built on their own land were sold for more than S$10 million. That's a pretty big deal! But don't worry, there's still some action in the luxury market. In fact, 10 of these high-end homes were sold for a price tag of at least S$5 million. The most expensive one among them was a really spacious condo that measures 2,164 square feet. This fancy condo is not just any condo; it's a freehold property, which means you can own it forever! It's located at a place called Dalvey Haus, and it was sold for a whopping S$7 million. So, while there might not be any super, super expensive new homes being sold right now, there are still some pretty luxurious options out there for people who want to live the high life. Buyer's ProfileIn an interesting turn of events, the number of brand-new homes that were bought by people from other countries went up a little bit, reaching 13 houses in the month of September. That means more people from different places decided to buy new homes here. At the same time, something different happened with Singaporeans. The number of new homes bought by people who live in Singapore went down quite a bit, by 42.6% to be exact. Even though fewer Singaporeans bought new homes, they still made up a big chunk of the total sales. In fact, 81.3% of all the new homes that were sold and weren't built on their own land were bought by Singaporeans. So, while people from other countries are showing a bit more interest in buying new homes here, Singaporeans are still the main buyers by a large margin, even if they bought fewer homes this time around. OutlookIn the future, there are three big things you should be excited about: Watten House, which is in a really fancy area, and Hillock Green and J’den, which are in the suburbs. J’den is super special because it's where Jcube used to be, and it's in the awesome Jurong Lake District. A lot of people are going to want to buy homes there. We think that in the year 2023, somewhere between 6,300 and 6,800 brand-new houses will get sold. Oh, and guess what? The prices for these new homes might go up a little bit, like maybe 1 to 3% over the whole year. So, keep your eyes peeled for these exciting projects and changes, because they're going to make a big splash! ConclusionWow, we just went through a ton of information, didn't we? If you thought this video was super helpful and you learned something new about Singapore's property market, make sure you hit that like button really hard and subscribe to the channel. That way, you won't miss out on more awesome content that we have coming up. I'm Iggy from The Investing Iguana, and I'm saying goodbye for now, but not for long! Always keep in mind that being knowledgeable is like having a superpower, especially when it comes to understanding the property market in Singapore. The more you know, the smarter choices you can make when it comes to investing your money in properties. So, stay tuned and I can't wait to see you again in our next video!
IntroductionHey everyone, welcome back to "The Investing Iguana" channel! I'm your host, Iggy. Today, we have a special episode focused on Singapore's housing market, specifically the October 2023 Build-to-Order, or BTO, sales exercise. Whether you're a first-time homebuyer, a young couple, or a seasoned investor, you won't want to miss this. We'll break down the latest BTO launches, the new rules, and what all of this means for you. So let's dive right in! The Big Picture: BTO Launch OverviewOn October 4, 2023, Singapore's Housing and Development Board (HDB) initiated a Build-To-Order (BTO) sales exercise, releasing a substantial batch of 6,800 flats available for purchase. These residential units are strategically distributed across four key towns: Choa Chu Kang, Kallang/Whampoa, Queenstown, and Tengah. Of particular interest are two prime sites, one in Kallang/Whampoa and another in Queenstown, which have been designated under the Prime Location Public Housing model. This initiative marks a significant step in expanding housing options for residents, offering a blend of locations to cater to various lifestyle needs and preferences. Iggy's Insight: If you're a first-time family, this could be your golden opportunity. The rules are getting stricter, but that also means you'll face less competition from buyers who aren't as committed. More First-Time FamiliesFirst-time families with children are receiving special attention in the housing allocation process. To support these families in establishing a stable home environment, they are granted an extra ballot in housing lotteries, increasing their chances of securing a flat. Additionally, a larger number of flats are being specifically set aside for these families. This initiative aims to prioritize the needs of young families, helping them gain easier access to suitable housing. By doing so, the community is taking proactive steps to ensure that these families have the foundational stability they need for a prosperous future. Iggy's Insight: Now is a fantastic time to get into the market if you're planning to start a family. But keep in mind, the pool of such buyers may be small. What are your thoughts on this? Let me know in the comments! Impact of Estate ReclassificationNew residential flats set to launch in the second half of next year will undergo a reclassification into three distinct categories: Prime, Plus, and Standard. This new system aims to offer prospective homeowners a clearer understanding of what each type of flat offers in terms of amenities and quality. Alongside this reclassification, flats falling under the Prime and Plus categories will be subject to a longer Minimum Occupation Period (MOP). The extension of the MOP for these higher-tier flats is designed to encourage long-term residency and foster a more stable community within these premium living spaces. This change reflects a broader strategy to enhance the housing market, making it more transparent and tailored to the diverse needs of the population. Iggy's Insight: If you're contemplating the idea of purchasing a flat near an MRT station or in areas on the city fringe, it would be prudent to make your move swiftly before new classifications come into effect. These upcoming changes could potentially impact property prices and availability, making it more challenging to secure a desirable location. Proximity to an MRT station offers unparalleled convenience for daily commuting, while city fringe areas provide a balanced lifestyle that combines urban amenities with a touch of tranquility. Waiting too long to make a decision could result in higher costs and fewer choices, as these sought-after locations are likely to be the first to experience shifts in market dynamics. Therefore, acting quickly is key to securing a flat that meets your lifestyle needs and financial considerations. Impact of Non-Selection RuleIf you decide to reject a BTO (Build-To-Order) flat offer, be prepared to lose your priority status for an entire year. This newly implemented rule aims to streamline the application process by reducing the number of applicants. Specifically, it seeks to filter out individuals who are not yet ready to make a long-term commitment to homeownership. The intention is to make the allocation of BTO flats more efficient, ensuring that they go to those who are genuinely interested and prepared to move forward. Iggy's Insight: If you're on the fence about committing to a BTO flat, it may be more prudent to skip this application round altogether. By doing so, you preserve your priority status for future opportunities, allowing you more time to weigh your options and make a more informed decision. Robust Demand for 2-Room Flexi FlatsThe demand for 2-room Flexi flats has seen a significant surge, with an average of three applicants vying for each available unit since 2021. This heightened interest has prompted the government to take proactive measures to increase the supply of these flats to meet the growing need. The situation presents a balanced market where both demand and supply are robust, making it an opportune moment for potential homeowners. Iggy's Insight adds another layer to this scenario: If you're single and looking to invest in property, this could be your golden opportunity. The government's plans to ramp up supply means that you have a better chance of securing a flat, making it an ideal time to enter the housing market. Project AnalysisIn Choa Chu Kang, the demand for residential properties is anticipated to be robust, largely due to its strategic location near a multitude of amenities and an MRT station, making it a convenient choice for daily commuters. On the other hand, Kallang/Whampoa is another area that offers close proximity to essential amenities, but potential buyers should be prepared for stiff competition due to its desirability. Queenstown, a well-established estate, comes with a higher price tag but compensates with an array of amenities, including shopping centers and parks. Tengah is an emerging area with significant future potential, especially with the upcoming Jurong Region Line set to enhance its connectivity. Iggy's Insight: When considering these projects, it's crucial to weigh the unique advantages and disadvantages each location presents. Assess your individual needs, whether it's commute convenience, access to amenities, or budget constraints, to make an informed decision that best suits your lifestyle. ConclusionThat's it for today's deep dive into the October 2023 BTO sales exercise. The key takeaway is to be clear about what you want and to act quickly. The rules are changing, but for serious buyers, this could actually be a good thing.
Introduction: A Warm Welcome to the World of Singapore Property SalesHey there, financial adventurers, and welcome back to "The Investing Iguana!" I'm your ever-enthusiastic host, Iggy. Today, we're venturing into the enigmatic terrain of Singapore's Property Developer Sales. We've seen some intriguing shifts in the market recently, and I'm here to guide you through this complex maze. Buckle up as we dive into what this sales dip could mean for you, spotlight some new launches, and explore the current market dynamics. Get ready for a rollercoaster ride into the heart of Singapore's real estate market! The Sales Dip: More Than Just NumbersFirst off, let's address the elephant in the room—the sales dip. The stats show a whopping 72.1% drop in new home sales in August 2023 compared to July. So, what's going on? Well, we didn't see any major project launches last month, and to top it off, the lunar seventh month kicked in, which many consider an inauspicious time to make big-ticket purchases. But here's the deal: low activity often signals an opportunity. When everyone else is on a buying hiatus, that might be your cue to start scouting. So tell me, what's your take on this? Feel free to drop your thoughts in the comments! New Launches: The Altura PhenomenonNow let's move on to new project launches, or should I say, the lack thereof? The exception to this trend is Altura, over at Bukit Batok West Avenue 8. This project sold a remarkable 62.5% of its units in the launch month alone. Imagine that! It's like suddenly having a new Marvel movie after two decades of no superhero action in Bukit Batok! The buzz is palpable, folks. If you're not looking into this, you probably should be. So, let me know, is Altura on your radar yet? Market Segment Dynamics: The Rise of the SuburbsLet's talk about market segments. Most of the sales last month happened in the Outside of Central Region (OCR), comprising 48.7% of the transactions. That's right, the suburbs are rising! Now, why should you care? Because the suburbs usually offer more affordable pricing, which can translate into a higher return on investment for you. I'm telling you, there's gold in them hills—or should I say, in those residential blocks! Hit that like button if you’re seeing the investment potential here! Luxury Condos: Silence in the High Rollers ClubWhat about the luxury condos? I hear you asking. Well, it's been pretty quiet at the high end of the market. No new non-landed homes sold for more than S$10 million last month. But seven new homes crossed the S$5 million mark. Here's the Iggy insight—luxury is always luxury, but it's not always liquid. If you've got the cash, now might be a great time to negotiate your way into some plush real estate. How about that? Who’s Buying: A Closer Look at Buyer DemographicsLet's peek into who's actually buying these properties. Last month, Singaporean purchases dipped from 88.7% to 80.4%, while purchases by Singapore Permanent Residents increased to 16.5%. What's happening here is a little shift in buyer dynamics, and that's something you might want to pay attention to. It could open up new avenues for investment, especially if you’re keen to diversify. So, Singapore PRs are stepping up to the plate; are you ready to swing? Conclusion: Your Next Move in the Singapore Property Market
And that, my friends, brings us to the end of our whirlwind tour through the latest Singapore Property Developer Sales Update. What's the big takeaway here? Don't be fooled by the sales dip. In the world of real estate, a quieter market could very well mean more opportunities for you. So, if you're keen on getting into the property game or leveling up your existing investments, now could be the time. Before we part ways, if you want to keep your finger on the pulse of Singapore’s real estate, make sure to subscribe and hit that bell icon. Don't forget to give this video a thumbs-up if you found it useful, and share it with anyone you think could benefit. Thanks so much for hanging out with me today. This is Iggy, your host at "The Investing Iguana," signing off. Keep investing, keep exploring, and until next time, take care! The Investing Iguana Dives into REITs: A New Horizon for Investors in 202 Hey, everyone! Welcome back to The Investing Iguana, the show where we explore the fascinating world of personal finance, investing, and retirement planning. I'm your host, Iggy, and today were going to talk about one of my favorite types of investments: REITs. In this episode, I will be sharing on why I think the time is ripe to get back into buying Singapore REITS again. Are REITs Still a Good Investment in a Rising Interest Rate Environment? REITs, or real estate investment trusts, are companies that own and operate income-producing properties, such as office buildings, shopping malls, hotels, warehouses, and more. REITs allow investors to own a slice of these properties and receive regular dividends from the rental income. Sounds awesome, right? Well, not so fast. REITs are not without their risks and challenges. In fact, I have been bearish on REITs for most of 2022 due to one major factor: rising interest rates. As you may know, interest rates have a significant impact on REIT valuations. When interest rates go up, the cost of borrowing goes up for REITs, which reduces their profitability and cash flow. Also, when interest rates go up, the opportunity cost of investing in REITs goes up as well. Investors may prefer to invest in safer assets that offer higher returns, such as bonds or bank deposits. This is why REIT prices have been falling in 2022, as the Fed has been hiking interest rates to combat inflation. Many REITs have seen their share prices drop by 10%, 20%, or even 30% from their highs in 2021. Why I'm Buying REITs AgainBut here’s the thing: I think the worst is over. I think we have reached the peak of interest rates and that REIT valuations have come down significantly. As a result, I am now buying REITs again, with a focus on those that pay high dividend yields (7% or more). Why am I doing this? Well, there are several reasons. First of all, I believe that the Fed will stop hiking interest rates in the near future, as inflation starts to come down. Inflation has been driven by supply chain disruptions, labor shortages, and pent-up demand due to the pandemic. But these factors are likely to ease in 2023, as the global economy recovers and normalizes. Global Economy to Experience Growth Slowdown in 2023Secondly, I believe that economic growth will slow in 2023, which will put downward pressure on interest rates. The stimulus measures that boosted growth in 2021 and 2022 will fade away, and the fiscal and monetary policies will become less accommodative. This will lead to lower consumer spending, business investment, and GDP growth. As interest rates fall, REIT valuations will likely recover, which will boost the prices of REITs. This will create capital appreciation potential for REIT investors. I believe that the global economy will experience a slowdown in growth in 2023, due to a number of factors, including the withdrawal of fiscal and monetary stimulus, the ongoing war in Ukraine, and rising inflation. This slowdown will put downward pressure on interest rates, as central banks will be less inclined to raise rates in order to combat inflation. This will be a positive development for real estate investment trusts (REITs), as lower interest rates will make REITs more attractive to investors. Impact of Slowdown on Businesses and InvestorsThe US government and other governments around the world have implemented a number of fiscal and monetary stimulus measures in response to the COVID-19 pandemic. These measures have helped to support economic growth, but they are now being withdrawn. This will lead to a reduction in government spending and a tightening of monetary policy, which will slow economic growth. The war in Ukraine is causing a number of economic disruptions, including rising energy prices and supply chain disruptions. These disruptions will weigh on economic growth in both Europe and the United States. Inflation is rising in many countries, due to a number of factors, including supply chain disruptions and the war in Ukraine. Rising inflation will force central banks to raise interest rates, which will also slow economic growth. The slowdown in economic growth in 2023 will be a negative development for some businesses and investors. However, it will be a positive development for REITs, as lower interest rates will make REITs more attractive to investors. REITs are companies that own and operate income-producing real estate. When interest rates fall, the cost of borrowing money for REITs also falls, which can lead to higher profits. In addition, lower interest rates can make REITs more attractive to investors who are looking for income-producing assets. A Steady Stream of Income in a Low-Interest Rate Environment Thirdly, I am attracted to the high dividend yields of REITs. REITs are required to pay out at least 90% of their taxable income as dividends, which provides investors with a steady stream of income. This is especially appealing in a low-interest rate environment, where other income sources are scarce. Some of the REITs that I am buying have dividend yields of 7%, 8%, or even 9%. That means that for every $1000 that I invest in these REITs, I get $70, $80, or $90 in dividends every year. That’s a pretty sweet deal! Of course, dividend yield is not everything. You also have to look at the quality of the REITs’ properties, their occupancy rates, their rental growth prospects, their debt levels, their payout ratios, and their dividend sustainability. But overall, I believe that REITs can still provide attractive income and capital growth potential even in a rising interest rate environment. 6% or More Dividend Yield Singapore REITsHere are a few Singapore REITs that are giving 6% or more dividend yield as of August 2023:
It is important to note that dividend yields can fluctuate, so it is always best to do your own research before investing in any REIT. ConclusionSo there you have it: why I am buying REITs again at 7% dividend yields (as a Singapore investor in 2023). If you want to learn more about this topic or read the original article by Financial Horse that inspired this video, you can check out the link in the description below. I hope you enjoyed this video and learned something new today. If you did, please give it a thumbs up and share it with your friends and family who might be interested in investing in REITs. Also, don’t forget to subscribe to my channel and hit the bell icon to get notified whenever I post new videos on personal finance, investing, and retirement planning. And finally, let me know what you think about REITs in the comments section below. Do you agree or disagree with my views? Do you own any REITs or plan to buy any soon? What are your favorite REITs and why? I would love to hear from you and have a conversation with you. Thank you so much for watching and I’ll see you in the next episode of “The Investing Iguana”. Until then, stay safe, stay smart, and stay invested. Cheers!
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