No regulations prohibiting joint ventures to buy a house In addition

Treasure at Tampines, a mega launch in Singapore, brings you the analysis of de-stocking and group-buy houses.

The emergence of these group-funding property speculation platforms provides channels for those with insufficient funds and interested in investing, which has led to more investment in property speculation, and those who just need to buy a house are obviously not the mainstream consumer. It was reported that some young people in the post-90s were also joining the group-funding queue and waited for the property to appreciate.

A general manager of Property Investment, pointed out in an interview that “group-funding and buying a house” is more a derivative of financial products. For those involved, buying a house is only a process, and financial management is the real purpose. However, this kind of property speculation also behaves differently in different regions. In cities with a more rational property market, the market for group-funding property speculation is not big. In cities such as Shanghai and Shenzhen, where housing prices are rising rapidly, group-funding is more common. In the context of de-stocking becoming the main theme of China’s property market, some in the industry is optimistic on the model of group-funding to buy a house. With more policies favoring property, the government has proposed to take property de-stocking as a key task. It is expected that the property market will see more hopes. The approach of group-funding will continue to become more popular.

This model of group-funding can revitalize funds and strengthen the liquidity of funds. This direction is undoubtedly correct and a model that can be further deepened in operation. However, group-funding of property will face many risks. One of them is that the property market price will not rise forever. And the other is the ownership of the intermediate risks and supervision are not clear, including how to measure whether the platform is operating properly and whether there will be financial scam. These need to be carefully evaluated by participants. The government should also strengthen macro-control and provide guidedance.

Although China has not issued regulations prohibiting joint ventures to buy a house, policy risks should not be underestimated. With the emergence of leveraged means such as down payment, self-buying and selling mortgages, group-funding and property speculation, property financial risks are increasing. The government is paying close attention to the property market in first-tier cities and demand severe crackdowns on intermediary speculation and illegal acts.

This update is shared by Treasure at Tampines, a recent project which continues to receive resilient demand among earlier launches. Treasure at Tampines is second best-selling project in Jan 2020, which sold a total of 50 units at a median price of $1,371 psf.