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Demand contraction and rogue property agents in Singapore
February 6th, 2009 in Random musings
We were discussing the state of the world economy recently and it struck us how much demand has collapsed in all sectors - be it car sales, retail sales etc. The question is whether this demand would rebound once confidence has been restored and the economy has stopped contracting and starts to grow again. There is a basis for the argument that demand would not return to its previous levels for many years to come as a lot of it has been artifically fueled by debt (at low interest rates). However, it struck me how some people are still quite optimistic that everything would return to normal once we pass through this difficult period. I guess the answer should be somewhere in between.
I read a story in the Straits Times today about a judgment made against a property agency because one of its agents had violated his duty to represent the seller’s interests in a property transaction. The sellers had gotten the agent to help them sell a central district condo and the agent had indicated that the market price was around 690K. The sellers, trusting the agent, agreed to such pricing but lo and behold the agent then turned around and immediately sold the property to the wife of his Director at the agency who then conveniently flipped it for 980K a few weeks later. The directors of the agency defended the practice saying that it is commonly done (ok so everybody does it you can too - what a childish defense) and that they were not responsible for their agents’ conduct since they are independent contractors. What rubbish! I can’t believe that they were not shy about mounting such a defense. Anyway, the judge found in favor of the couple and the agency was ordered to refund them the difference of the 2 sales prices.