The BIG BOYS got it!
You can run but you can't hide, the property boom may be here to stay as it gears up to enter the next phase of growth!
In the recent months, property development projects in Singapore have been popping up fast and furious.
And according to a statement made by Citigroup in an article on the 9 July edition of the Edge, it said investment companies will be ready to unload their property holdings to end-buyers from now till 2009.
The Urban Redevelopment Authority also said that completion will rise to 7,692 units in 2008 and more than then double in 2009.
End-buyers may be all to happy to fork out more money for luxury properties set in prime locations.
And with that being said, property developers are thus driven to scale new heights to bring to end-users more luxurious and more exclusive developments!
A vicious cycle in which there is no escaping!
Sounds fine and dandy for both parties doesn't it, a win-win situation for both parties.
Hmmm...is it possible to achieve such an amicable environment in a dog eat dog world?
With so much money being shameless waved and passed from hand to hand, its time to ask: Where does all the money come from?
Well, the BANKS of course.
In the same article, spokespersons for OCBC, DBS and Citigroup all expect a surge in mortgage growth and home loans.
This brings a whole new meaning to 'grinning from ear to ear'.
The banks literally have reasons to grin from ear to ear.
Right ear:
In a bid to draw more end buyers to a property, investment companies offer progressive payment schemes or otherwise named deferred payment.
This is where end-buyers pay for their property in phases, like 5% on booking, 10% in a few months, another 10% in another few months, and the rest upon completion.
Its effective as it draws crowds and the company gets to sell off their property fast.
However, this would mean that the onus for funds would be on the investment company, and who do they turn to? The banks.
And given that most properties are due for completion pretty soon, payments made under the schemes will be due soon...
Left ear:
For companies who do not offer the scheme, yes they may risk losing 'hyped-up property launches' but the demand for property is still growing strong, therefore end-buyers could always turn to.....banks.
No matter which way you look at it and no matter how many people are laughing their way to the banks, keep in mind the big boys will be the ones having the last laugh.
Yeo Sue En
ArchivesIn the recent months, property development projects in Singapore have been popping up fast and furious.
And according to a statement made by Citigroup in an article on the 9 July edition of the Edge, it said investment companies will be ready to unload their property holdings to end-buyers from now till 2009.
The Urban Redevelopment Authority also said that completion will rise to 7,692 units in 2008 and more than then double in 2009.
End-buyers may be all to happy to fork out more money for luxury properties set in prime locations.
And with that being said, property developers are thus driven to scale new heights to bring to end-users more luxurious and more exclusive developments!
A vicious cycle in which there is no escaping!
Sounds fine and dandy for both parties doesn't it, a win-win situation for both parties.
Hmmm...is it possible to achieve such an amicable environment in a dog eat dog world?
With so much money being shameless waved and passed from hand to hand, its time to ask: Where does all the money come from?
Well, the BANKS of course.
In the same article, spokespersons for OCBC, DBS and Citigroup all expect a surge in mortgage growth and home loans.
This brings a whole new meaning to 'grinning from ear to ear'.
The banks literally have reasons to grin from ear to ear.
Right ear:
In a bid to draw more end buyers to a property, investment companies offer progressive payment schemes or otherwise named deferred payment.
This is where end-buyers pay for their property in phases, like 5% on booking, 10% in a few months, another 10% in another few months, and the rest upon completion.
Its effective as it draws crowds and the company gets to sell off their property fast.
However, this would mean that the onus for funds would be on the investment company, and who do they turn to? The banks.
And given that most properties are due for completion pretty soon, payments made under the schemes will be due soon...
Left ear:
For companies who do not offer the scheme, yes they may risk losing 'hyped-up property launches' but the demand for property is still growing strong, therefore end-buyers could always turn to.....banks.
No matter which way you look at it and no matter how many people are laughing their way to the banks, keep in mind the big boys will be the ones having the last laugh.
Yeo Sue En
Labels: banks, Citigroup, DBS, Deferred payment, investment companies, OCBC, progressive payment
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