Dishonest Singapore Property agent cooks up SMU story
May 29, 2009 by property
Filed under Dishonest Singapore Property agent
Dishonest Singapore Property agent cooks up SMU story
by www.PropertyBUYER.com.sg
Recently a potential client came to us as asked us about properties around SMU. She told us about how the properties nearby SMU will be a good rental potential and will have good capital appreciation potential.
The dishonest property agent told her that SMU is a growing and HOT area
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and there will be many lecturers who will need housing. The rentals will fetch good value. Therefore the property prices will rise.
We did some rough Property demand calculations: -
Our Property demand assumptions: -
http://www.flickr.com/photos/71368633@N05/sets/72157629285623117/
Live births in Singapore = 40 to 50k per year
University entry rate (~30%) = 15k students
Foreign students (Estimate only) = 5k
Universities (Quasi Universities) = NUS, NTU, SMU, SIM, MDIS, etc.
Assume SMU captures 25% of the
market = 5k students
Faculty Numbers Assumptions @ 20 students: 1 lecturer = 250 lecturers
Faculty Numbers Assumptions @ 25 students: 1 lecturer = 200 lecturers
Assume 50% of lecturers are foreign and need housing = 125 lecturers
We did a quick check with Wikipedia
(http://en.wikipedia.org/wiki/Singapore_management_University)
and the faculty number is reported as 210. Within the ball-park of our
assumption. We do NOT know the percentage of foreign lecturers from this
210. Our guess of 250 is around the ball-park.
CAN 125 LECTURERS MOVE THE PROPERTY MARKET???
WOW, 125 lecturers is a lot of people!!! So what the dishonest Singapore
property agent is saying that 125 units demand can move the market.
(Do you know that there are some ~300,000 private properties in Singapore?)
Wait… These are existing lecturers. They already have housing!!!
Nevermind… Let’s assume there is an extra 125 lecturers.
Oh wait, do they all need to stay within 2 to 3 to 4 km within SMU?
Great!!!, the argument that SMU growth can move the property around SMU is starting to look SOOOOO REALLLLLL…. NOT
Singapore property supply NORTH of Singapore Management
University (3km) radius northern Semi-circle.
We look at those possible areas in red. Those are private properties. There are thousands of units of apartments, condos around just the northern 3km semi-circle radius of SMU.
-
Ardmore park, River valley area, UE Square, Novena vicinity, Wilkie road, Mount Sophia, Cambridge road, Kallang, etc.
-
Just the Novena area alone has more than thousands of units. There are also hundreds of units in Cambridge road vicinity, River valley area and some around bukit timah and balmoral area.
-
We have not even looked at the southern 3km semi-circle radius of SMU. We can confidently say that there are at least 3,000 to 5,000 units of housing within that 3km radius. Not only that, there are also some unfinished properties approaching TOP around the greater Kallang area that has some 400 to 600 units per condo development, if people are buying for investments, those units could add to the vacancy rates.
Singapore Property Vacancy rate around SMU
Singapore’s vacancy rate is around 6 to 7% currently. That means that there are some 200 to 300 vacant housing within the vicinity at the very least.
Even if these lecturers have to stay within 3 to 5 km, there are more than sufficient supply to fit them in.
Lecturers do NOT have to stay within 3 to 5km of SMU.
And lecturers do NOT have to stay within 3 to 5km of SMU!!! They have a choice. So these possible extra 125 demand is diluted.
So there is absolutely NO CHANCE they can move a market that big.
Dishonest Singapore property agent BUSTED!!!
We have discouraged the buyer from this "SMU story" and hence we have done a good deed by losing this home loan deal. But we could not have kept quiet at this rubbish Singapore property agents are pushing to innocent Singapore property buyers.
Please share your stories about rogue dishonest Singapore property agents
with us, we are happy to publish it to warn any would be property buyers or investors.
About Property Buyer Contact Property Buyer
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 – 0608
SMS: 9782 – 8606
Email: loans@propertyBUYER.com.sg
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nice quantitative and qualitative analysis that a typical dishonest agent can’t even do.