Sales volume, launches drop by half in H1 2014

Posted on 17 Jul 2014 | Comments Off on Sales volume, launches drop by half in H1 2014

4,476 homes were sold in the first six months of 2014, less than half the sales recorded in the first half of 2013, according to CBRE.

“The drop in sales in the first half of the year is mainly the result of the fall in the number of launches. The number of units launched in the first half of 2014 totalled 4,807, which is about half of the 9,941 units launched in the first half of 2013,” said Joseph Tan, Executive Director at Residential, CBRE.

While the units sold in the H1 2014 is lower, it still reflects a strong take-up rate of 93 per cent, he added.

According to Colliers International, launch and sales volumes declined year-on-year respectively by 76.4 percent and 73.3 percent from the 1,768 units launched and 1,806 units sold in June 2013, before the Total Debt Servicing Ratio (TDSR) was announced.

“The sales tally of 482 units in June 2014 is the lowest registered for the month of June since primary market sales data was made available from June 2007,” said Chia Siew Chuin, Director of Research & Advisory at Colliers International.

She expects launch activity to pick up slightly as the traditional lull period is over,

However, with fewer affordably-priced mass-market projects in the pipeline, buying volume is not expected to improve extensively. Colliers International predicts primary market sales volume remain to the region of 400 to 700 units in July.

For the second half 2014, location and the pricing will be the most important factors in determining home sales volumes. CBRE expects buyers to remain selective and take a longer time to make their purchase.

Tan said, “Based on the projects that will be coming on-stream, we anticipate that underlying demand, coupled with competitive pricing, should ring in total new sales of between 8,000-9000 units for the whole of 2014.” 

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Posted in Loan / Mortgage / Finance, New Launches, Property Market / Real Estate

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Unlicensed estate agent charged for sale of foreign properties

Posted on 17 Jul 2014 | Comments Off on Unlicensed estate agent charged for sale of foreign properties

Under the Estate Agents Act, an estate agent must be licensed with CEA before it can market local or foreign properties in Singapore. Tan, trading as APC, faces five charges for acting as an estate agent without being licensed as an estate agent

Tan Yang Po, trading as AZEA Personal Coaching (APC), was charged in Court on 21 May 2014 for allegedly acting as an estate agent without being licensed with CEA. This is the first prosecution case related to unlicensed estate agency work for the sale of foreign properties.

APC had first advertised to invite the public to attend its free property investment seminar. The seminar participants were then encouraged to enrol in a paid investment course to learn about investment strategies. These participants were awarded membership to a property club of APC.

Tan allegedly informed the property club members that Sterling Camden LLC, a foreign property developer was selling apartments in USA, facilitated the sale transactions and collected commission from the foreign property developer.

About the Case
CEA’s allegations against Tan are as follows. APC had first advertised to invite members of the public to attend its free property investment seminar. Those who attended the seminar were encouraged to enrol in a two-day investment course, with a fee, to learn about investment strategies. The course participants were awarded membership to a property club of AZEA. APC introduced its client, Sterling Camden LLC, a foreign property developer to members of the property club. Tan allegedly informed members that the developer was selling apartments in Houston, Texas, USA costing about US$49,000 to US$60,000 each, with a guaranteed investment return of 8% plus net rental yield for two years. Thereafter, Tan allegedly facilitated the sale transactions for the said foreign properties and for each successful sale, collected commission for the sales from the foreign property developer. At all material times, APC acted as an estate agent while it was not licensed as an estate agent with CEA.

Advice for Consumers
Consumers should only engage licensed estate agents and registered salespersons. They are advised to check the CEA Public Register of Estate Agents and Salespersons at CEA website www.cea.gov.sg or use the “CEA@SG” mobile app to verify whether the estate agent is licensed with CEA or the salesperson is registered with CEA. Consumers should report to CEA when they encounter any person not listed on the Public Register but carrying out estate agency work illegally. They can report the person to the CEA at 1800-6432555 or feedback@cea.gov.sg

Consumers are encouraged to engage licensed estate agents and registered salespersons as well as to exercise due diligence when buying foreign properties. They should find out pertinent details such as their eligibility to buy the particular property and all the costs involved, e.g. taxes, maintenance cost, foreign currency fluctuation, if any. Consumers should be wary of claims of high returns and low initial down payments. They should conduct their own research, look at the viability, pricing and terms and conditions of the purchase, and not rely solely on the advice of representatives of the developer of the foreign property.

For tips on buying foreign properties, consumers can refer to the online guide http://www.cea.gov.sg/cea/content/binary/pdf4Files/NewForeignProperties.pdf

For more consumer education materials, visit CEA’s Consumer Resource Centre at www.cea.gov.sg/consumerresources.

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