Profiting From The Property Measures

When I thought about the latest property measures again, I got even more excited. I saw gems of opportunities for profit, advantage and growth.

My confidence was reassured when I read Esther Teo’s article in the Sunday Times, Jan 16, 2011. Let me reproduced excerpts of the quotations from Mr Mah Bow Tan, Ministry Of National Development:

“The new property market cooling measures…
   meant to stabilise home prices and not necessarily
   intended to cause them to crash.

“Prices must move up if the economy is doing well
  and people have got good jobs – especially where
  interest rates are at an all-time low and liquidity is
  at an all-time high.”

The government wants to ensure property prices increase in tandem with the positive growth in our economy. It will prevent formation of property bubbles which will eventually be damaging to our industry, economy and society.

The property measures will help to stabilize the property market and support its sustainability. These initiatives will help us enjoy better business growth in the long term.

Impact On Property Market Segments

The property measures do not impact the private residential market across the board. It will only affect a sub-segment of the private residential market.

By and large, it will not impact the HDB market segment. Bear in mind, 82 percent of Singaporeans live in HDB flats (Statistics Singapore Newsletter, Sept 2010).

It is also not likely to have a major impact on the rental, commercial, industrial and overseas property segments.

 

Impact On Private Residential Market

The property measures seek to reduce number of property speculators. These speculators are in the market to ‘flip’ properties and adopt a short term outlook.

The private residential market will not be severely impacted as the measures will only affect a sub-segment of the market.

Furthermore, previous measures have already reduced the number of short term speculators. Banks have also been cautious in crafting their lending policy and issuing property loans.

Many buyers who are standing at the sideline will return to the market. Investors who take a longer view of the market should also be more positive about investing in the property market as the fundamentals supporting it are still positive.

The market may adopt a ‘wait and see’ attitude for a short period of time. However, the prices are projected to increase in 2011.

Benefits Of The Property Measures

There are many benefits arising from the property measures. Consider just some of the following benefits:

Sellers

Sellers will be more motivated and realistic to sell. It is easier to get more exclusives and better cooperation from the sellers.

Sellers will be more willing to offer you a higher commission rate. And, who knows, if you can meet their expectations, they may give you a bonus too! (Please don’t forget to declare these bonuses to the company so as not to commit a criminal offence and be deregistered from the CEA).

Buyers

Many buyers who have decided not to buy or to delay their buying decisions will return to the market. Astute investors will also continue to buy Singapore properties as the upsurge potential is still sound.

Competitors

From past experiences, many of our competitors will become negative. They will leave the industry, do nothing, or slacken in their performance.

This is a good time to increase your market share. Ultimately, your income is dependent on your market share, not just the market size.

This is the best of times to rise up and be the champion in your Strategic Target Market (STM).

Closing Rate

Your closing rate should increase. During times of uncertainties, it is easier to convince both sellers and buyers to be realistic, compromise, and take actions.

There are always enough reasons for buyers to believe prices may increase. On the other hand, there are also just as many reasons to think that prices will come down too.

Your job is to share with your clients the best as well as the worst case scenarios. You have to ensure they are protected if the market runs against them. Ultimately, they have to make their own decisions.

During uncertain times, many salespersons can achieve record sales and income. You can do it too!

Team Building

This is the best of times to recruit salespersons and build a team to help you enjoy perpetual overriding incomes and grow your business.

Many agencies will either downsize or close down. Team leaders will not be in a position to manage and support their salespersons effectively.

Many salespersons will be lost and demoralized. They are looking for a strong agency to help them.

My HSR is in the best position to support and serve them. You should recruit these salespersons and use these opportunities to build a strong team.

My HSR

I have always believed the best time to enhance our branding, advantage and growth is during a major change.

In the days ahead, My HSR will do much more for you. Please be on the lookout for major improvements.

 

During times of major changes, a new generation of real estate champions will rise. Will you be one of them?

Will you take these tremendous opportunities to differentiate yourself from your competitors?

Will you stand out from the crowd and lead the field?

I believe if you don’t take massive action now; in the near future, you will regret for the rest of life you did not capitalise on these changes to go and grow to the top.

I say, Go4It!

P/S: In the next Love Note, I will share with you some specific actions to leverage on the property measures to become a champion.