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Issue 199

Copyright © 2011-2014 www.Propwise.sg. All Rights Reserved.

CONTENTS

p2

How to Avoid Getting Scammed By “Get

Rich Quick” Seminars

p7

Singapore Property News This Week

p13

Resale Property Transactions (February 25 March 3 )

FROM THE

EDITOR

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How to Avoid Getting Scammed By “Get Rich Quick” Seminars

By Gerald Tay (guest contributor)

Let me start by saying that I want you to read this post as a commentary on the seminar industry and its practices, rather than as a rant. A rant would require me to be worked up about something. I‟m not worked up, just incredulous that no one has pointed any of this out yet.

There

are

real

people

who

share real

education with real experiences. And many

learners have benefitted from their sincere

sharing. But there are also those who profit from lies, and who give a bad reputation to

the entire industry and to the real educators.

How to Avoid Getting Scammed By “Get Rich Quick” Seminars By Gerald Tay (guest contributor) Let

The more

valuable

something

is,

the

higher the effort required to achieve it

Many people are not equipped with the necessary skills to evaluate investments properly. Some of these skills can only come with experience. When I was a naive investor and a regular seminar “junkie” years ago, I had my fair share of being fooled and paid the “tuition fee”.

The more valuable something is, the higher the effort required to achieve it. Accept this or be prepared to lose money!

Since building wealth is

of

a

higher value

compared to going to a casino, it takes time.

Many of these wealth programs are

orientated towards the masses who want to

get started

on

the

path

to

riches

after

attending a free seminar preview (Property, Stocks, Forex etc.) by some „guru‟.

Every „expert‟ out there has an agenda and it‟s NOT for your benefit

Logically, in order

to

learn the

subtleties of

any craft, you have to seek out the masters. If

you want to become a doctor, only doctors can teach you. If you want to become a computer programmer, you read thick books on the subject written by experts. If you want to become a martial arts master, you go to

the grandmasters.

There is one big problem, however. That problem is called superficial analysis. Every „expert‟ out there has an agenda. This can become incredibly frustrating in your search for the truth. Everybody claims to have the secret, but few are honest.

Bogus „gurus‟ exposed

Here

is

a

non-exhaustive

list

of

transgressions by so-called gurus

I‟ve compiled:

A Forex guru claimed a doctorate degree in forex and was later exposed for fraud.

A well-known property guru was caught selling overseas properties to her seminar attendees without a proper license. Her company is currently blacklisted by the MAS.

Well-known local wealth guru sued by his

partner, aprominent local millionaire businessman for fraudulent accounting.

Well-known local property guru admitted she‟s also one of the investors with the fallen Eco-House property scam. And she is supposed to be an “expert”? She was also caught selling overseas properties to her seminar attendees without a proper license.

Well-known (sneaky) local shares guru

uses dirty business monopoly and wealth illusions to make money.

Guru and founder of Geneva Gold was

exposed to be

a fraud

by the

MAS. His

company was

also

blacklisted

by

the

MAS. Who will be next on the list?

Who gets rich? You or the“guru”? Why are people paying so much money so

that someone can tell them how to get rich?

The pros

are just feeding the

masses with

unrealistic expectations and

want

the

amateurs to believe they are actually

revealing the real secret to wealth.

Fiction and fairy tale stories sell. Reality is boring. The marketing department knows this. Who really gets richer after the seminar?

Not the students for sure.

It‟s the „guru‟; from collecting book royalties, expensive seminar fees, commissions, freebies, free properties from property developers and many other sponsorships.

A good advisor is someone who is in the business of investing and not in the business of selling seminar tickets.

Warning signs

Watch out for the following warning signs before signing up for a seminar by a „guru‟:

Advertisements for seminars or property investment schemes that promise a „risk- free investment‟, „be a millionaire in two years‟, „own properties with little or no money down‟, or that will generate a guaranteed 20% to 25% per annum from investments, and other similar kinds of catchy marketing phrases.

Promises of above-average returns at little or no risk.

The first seminar (usually a preview) you are invited to attend may be free or costs little, but where there are high fees to attend further seminars.

Credit card instalment payments

for

paying either the seminar fees or further

investments.

Investment seminars that offer to teach you „secret‟ or „exclusive‟ techniques for building wealth.

Tips for protecting yourself from getting

scammed

Protect yourself from investment scams via the following tips:

Use your common sense: consider the

possibility that the offer may be a scam.

Remember there are no get-rich-quick schemes, guaranteed or high yielding investments: the only people who make money are the scammers.

Do

not

let

anyone

pressure

you

into

making

decisions

about

money

or

investments:

always

get

independent

financial advice.

 

Remember that family members and

friends may try to involve you in a scam without realising that it is a scam you should seek independent advice (from a lawyer or trusted financial adviser)

Be wary of investments promising a high

return with little or no risk.

 

If it looks too good to be true, it probably is.

Overpriced get-rich-quick seminars are a sort of circus dedicated to money worship, meant to take money from the participants and enrich the promoters and the speakers. Few people really care about your success. It‟s a dog eat dog world.

By guest contributor Gerald Tay, who is the founder and coach at CREI Academy Group Pte Ltd, an organization dedicated to empowering retail property investors with

smarter investing philosophy and strategies. He is a full-time investor with over 13 years of solid experience in building his wealth through Property Investment and is financially

wealthy today.

Singapore Property This Week

Residential

Feb rents for condo and HDB falls by 0.8% and 0.3% respectively

Rental price for condominiums and HDB units have fallen by 0.8 percent month-on-month

and 0.3 percent month-on-month in February

from January. Compared to February 2014, rental prices for condominiums have fallen by

6.2 percent. Eugene Lim from ERA Realty predicts this downwards trend will continue

due to an increase in non-landed residential

properties this year. Other factors such as higher property taxes and slower inflow of expatriates may have affected the leasing

market according to Lim. Lim expect rents to

fall by 6 to 8 percent for this year. The rental index for non-landed private residential units in the Core Central Region (CCR) and the Rest of Central Region (RCR) had fallen by 1.2 percent and 1.5 percent respectively in

February, from the previous month, according

to data by SRX. Not only so, rental volumes have fallen by 25.8 percent from the 3,487 units in January to 2,586 units in February. Ong Kah Seng reasoned that the fall in

demand for private residential properties

could have been because of the festivities in February.

(Source: Business Times)

Feb condo resale price stagnates due to poor market sentiments

According to data from SRX, resale prices of condominiums and other private apartments

have remained flat in February from the previous month. Mohamed Ismail from PropNex believes that the lack of urgency to buy has resulted in unchanging resale prices. Not only so, sellers have been unwilling to let

it

go

at

a lower price. He believes that if

cooling measures are

lifted, public‟s

sentiments may improve and thus lead to an

improvement in the housing market. According to data by SRX, about 321 non-

landed private homes changed hands in

February. This was 6.7 percent less than the

344 units

that were resold

in January. Not

only so, the resale volume in February was

84.3 percent

lower than

Apirl 2010, when

resale volumes peaked at 2,050 units. (Source: Business Times)

40% of launched units at Kingsford

Waterbay already sold

About 40 percent of the 320 launched units at Kingsford Waterbay have been sold.

Residential

units

at

the

mixed-use

development have been sold from $1,050 psf

to $1,180 psf. Retail space that are between

431 and 452 sq ft have also been sold for about $2,700 psf. Ong Kah Seng from R‟ST Research said that the suburban leasehold‟s

competitive prices

have

helped

to

boost

interest in the project. The development has a

99 year lease and consists of 1,165 condominium units in total. Besides that, the development also comprises of 6 strata terrace houses, 2 strata semi-detached

houses, a childcare centre and 6 shops. According to the Business Times, two- bedders and three-bedders have been popular among buyers due to tighter credit

conditions. The implementation of the Total

Debt Servicing Ratio framework has made it

more difficult to finance homes, thus, buyers may be more inclined to purchase smaller units. Nonetheless, Kingsford Development

board chairman, Cui Zhengfeng believes that

sales for two-bedders and three-bedders have been high because a majority of those units faced the river.

(Source: Business Times)

GCB at Ridout Rd on sale for $88 million

A good class bungalow at Ridout Road is on sale and is expected to be sold for about $88 million or $1,200 psf. The bungalow has a total of 73,277 sq ft and comprises of a two-

storey bungalow with two single-storey outhouses. Ho Tian Lam from DTZ said that the prime location of the space and its large size will be the main draw for buyers. Under

the URA Master Plan 2014, the site is zoned

for residential use and is within Ridout Park. The sales tender for the property will cease on April 8.

(Source: Business Times)

Khaw: Govt aims to ease housing market gradually

National Development Minister Khaw Boon Wan said that the government is aiming to

ease the housing market gradually to avoid a

market crash. Previously, Foo Mee Har, West Coast GRC Member of Parliament had warned that cooling measures may be overdone if the market continues to spiral downwards.

Lee Bee Wah also added that the Additional Buyer Stamp Duty (ABSD) have contributed

to

more

Singaporeans

investing

in

riskier

foreign properties. Lee had suggested that

the ABSD should be lifted so that

Singaporeans with spare cash can invest in

local properties instead. On the other hand,

Khaw

said

that

HDB

resale

prices

have

increased by 87 percent from 2005 to 2014.

Khaw added that he would look into

shortening lease tenures

in

some BTO

projects to cater to different needs. He also

said that the ministry may consider increasing the $10,000 HDB income ceiling as couples

are

marrying later

and income levels

are

increasing. (Source: Business Times)

North Park Residences will be launched at the end of March

North Park Residences which is located at Yishun is slated to be released at the end of this Month. The project consists of 920 units that are targeted at both investors and owner- occupiers. North Park Residences is part of Northpoint City, an integrated development that will be completed in 2018. Northpoint City

is expected to be home to more than 500

retail and F&B outlets. Not only so, the residential project is located near to amenities such as the Khoo Teck Puat Hospital. According to market experts, integrated

residential developments like North Park

Residences are expected to yield higher psf pricing than pure residential projects.

(Source: Business Times)

Lease infringement bill has been tabled

A new bill that proposes to vary the quantum penalties that the HDB may impose on lease infringement cases has been tabled.

Currently, flat owners who have been found to engage in unauthorised subletting, will be fined 15 percent of the flat‟s price. However, if the new bill is passed, the penalty will be capped at $50,000. The new bill suggests

that according to the severity of the lease

infringement case, flat owners may deserve a higher penalty. According to the Business Times, this bill will give HDB officers more powers in investigating lease infringement

cases, as they will be allowed to enter

premises with a warrant. (Source: Business Times)

Jurong West site won for $630.13 psf ppr

Land for $630.13 psf ppr or $338.12 million. This was 3.2 percent less than the top bid of $651 psf ppr of its neighbouring parcel. Koh Teck Chuan from MCL Land believes that as

the profile of Jurong is being elevated,

demand for properties within the region will increase. The breakeven cost for the project is estimated to be about $1,000 psf and the selling price is predicted to be around $1,300

psf according to market experts. The site at

Jurong West Street 41 is expected to yield about 600 units.

(Source: Business Times)

Commercial

2 Shophouses at Pagoda St sold for $20m in total

A pair of shophouses at Pagoda Street has been sold for $20 million or $3,500 psf. The

5,700 sq ft. Market experts said that the shophouses have been sold for a relatively high price. The shophouses are located near Chinatown MRT station and have a 999-year

leasehold tenure from 1875. Currently, the

ground floors of the shophouses are leased to a souvenir shop and a café. Mary Sai from Knight Frank said that the high-price transaction is not expected as owners of

freehold shophouses at Chinatown, Boat

Quay and Telok Ayer are expecting about $3,000 psf on built-up area.

(Source: Business Times)

More than 100 strata titled offices will be launched at GSH Plaza

More than 100 strata titled office units will be launched for sale at GSH Plaza. GSH Plaza, which was formerly known as Equity Plaza, consists of 28 storeys. Located at the Central

Business District, the building has 259 strata office units in total. Not only so, the building has two floors of retail space. The building will also be undergoing massive refurbishment.

(Source: Business Times)

5,700 sq ft. Market experts said that the shophouses have been sold for a relatively high

Non-Landed Residential Resale Property Transactions for the Week of Feb 25 Mar 3

Postal District
Postal
District
Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
VALLEY PARK 1,123 1,680,000 1,496 SYLVAN LODGE FH 1,196 2,600,000 2,174 ROYALVILLE L'VIV 999 1,354 1,020,000
VALLEY PARK
1,123
1,680,000
1,496
SYLVAN LODGE
FH
1,196
2,600,000
2,174
ROYALVILLE
L'VIV
999
1,354
1,020,000
753
FH
FH
1,386
2,700,000
1,948
SOMMERVILLE PARK
APLETON VIEW
THE VERVE
FH
1,019
2,950,000
2,895
MONTEBLEU
FH
1,455
1,400,000
800,000
SPRING @ KATONG
FH
1,338
1,945,000
1,453
ONE AMBER
FH
1,486
1,380,000
538
D'ECOSIA
FH
867
1,535,000
1,615
CITY PLAZA
FH
1,360
820,000
1,119
FH
971
1,380,000
1,421
GALAXY TOWERS
FH
1,233
603
URBAN RESORT CONDOMINIUM
THE ROCHESTER
1,723
2,300,000
1,335
BELMOND GREEN
FH
1,985
2,650,000
1,335
THE VERMONT ON CAIRNHILL
FH
2,229
5,639,000
2,530
1,948
FH
1,230
1,668,000
1,356
PRISTINE HEIGHTS
99
1,305
2,444,000
1,873
THE INTERLACE
99
1,308
2,450,000
1,873
764
1,055
99
1,525
1,920,000
1,259
AMARYLLIS VILLE
FH
2,066
2,068,000
1,001
FH
99
1,308
1,000,000
THE INTERLACE
SUNSHINE PLAZA
99
839
750,000
893
WEST BAY CONDOMINIUM
99
922
1,360,000
1,475
BLUE HORIZON
99
1,335
2,600,000
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure VALLEY PARK 1,123
Area (sqft) Transacted Price ($) Price ($ psf) Tenure
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
628,000 915,000 1,711 99 983 1,100,000 1,119 99 1,215 535 517 99 999 753 1,005,000 1,335
628,000
915,000
1,711
99
983
1,100,000
1,119
99
1,215
535
517
99
999
753
1,005,000
1,335
999
999
1,400,000
1,615
867
FH
99
906
1,200,000
1,324
865
973
1,288,000
1,324
960
1,168,000
1,216
101
1,080,000
1,227
99
FH
582
940,000
1,615
999
816
1,650,000
1,324
929
1,130,000
1,216
99
859
1,045,000
1,050,000
1,480,000
1,711
1,211
990
1,918,000
1,938
99
1,027
1,216
1,023
99
99
1,630,000
1,345
99
1,345
Project Name
Project Name
HAZEL PARK CONDOMINIUM LAGUNA PARK MI CASA HAZEL PARK CONDOMINIUM SYMPHONY HEIGHTS TAMPINES COURT THE ESTUARY
HAZEL PARK CONDOMINIUM
LAGUNA PARK
MI CASA
HAZEL PARK CONDOMINIUM
SYMPHONY HEIGHTS
TAMPINES COURT
THE ESTUARY
PARC ROSEWOOD
TANAMERA CREST
MERA WOODS
COSTA DEL SOL
LAGUNA GREEN
COSTA DEL SOL
COSTA DEL SOL
ELIAS GREEN
WATERCREST
FERRARIA PARK CONDOMINIUM
27
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119
Area (sqft) Transacted Price ($) Price ($ psf) Tenure 628,000 915,000 1,711 99 983 1,100,000 1,119

NOTE: This data only covers non-landed residential resale property

transactions with caveats lodged with the Singapore Land Authority.

Typically, caveats are lodged at least 2-3 weeks after a purchaser signs an OTP, hence the lagged nature of the data.