You've got to remember one thing about the property market in Singapore. It has peculiarities not evident in other countries. Firstly, outside of high-end condos in the fashionable districts, mid-to-low end condos in other districts are not moving up much, if at all. Secondly, new launches in other districts are doing OK but are also not that great. These two points are related to one unmistakable fact about the local property market: when it comes to mid-to-low end condos anything that is 4 years or older is considered OLD and not very desirable by prospective buyers. This applies to even freehold condos (I know because I stay in one in District 5). This attitude to chasing new launches and spurining the secondary market is very UNLIKE what takes place in other countries. Take Australia, for example: the secondary market is very buoyant that years ago the govt there decided that foreigners would not be allowed to buy any property from the secondary market. Foreigners would only be restricted to NEW property launches. Ironic isn't it? That is how different the attitude and perception of property is in Australia as against Singapore.It seems that the only way for owners of existing mid-to-low end condos in Singapore can benefit from the *apparent* property craze is if their condo development gets enbloc-ed. I and a few owners of my condo development are keen on getting it enbloc-ed, for after all it is 11 years OLD. But so far the answer that we get is that developers think "it is too soon" for it to be enbloc-ed!?!? We are of course bemused. I'm quite sure that if I lived in a River Valley condo, the developers would have a different view. Again the issue for property is: location, location, location. That is one variable that is universal.The next point I'd like to make is that I have doubts that the HDB market will be lifted by the current "craze" in high-end condos. The simple fact is that those people who 3 years ago had to take out housing loans with commercial banks to *buy* their HDB flat will now be facing significant increases in their monthly loan repayments because the 3-year period for loans fixed at a low interest rate would have expired by now, and they would have to pay rates close to the banks' board rates.Finally, as to the influx of foreigners adding to Singapore's population, that will occur over 30 years. And, in any case, I think that many of them would be *foreign workers*, and not neceassarily high-salaried foreign talent. Many of the new-comers to our shores, doubtless working in the service industry, might simply rent out a room in an HDB flat for a few hundred dollars a month.Property "craze"? I'm not so sure about that... The property market will be increasingly bifurcated between the high-end luxury condo market and landed properties, on the one hand, and the rest, ie, the mass market, on the other.
#8oo88ooJunior Member Join Date: Oct 2005Posts: 9 there is no property boom and no construction boom between 1997 to 2005, so there is no ample supply to the condo mkt for the past 4 years. What is available on market now are mainly left overs from 2000.The recently launch projects are few compared to prior 1996 boom. Mass mkt not moving pls read my earlier thread to know why.oo88oo is offline Report Post Reply With Quote Multi-Quote This Message Quick reply to this messageoo88ooView Public ProfileSend a private message to oo88ooFind More Posts by oo88ooAdd oo88oo to Your Buddy ListOld 18-04-2007, 11:24 AM #9devilish_meSenior Member Join Date: Mar 2006Posts: 677 in my view..property prices outside the core is starting to pick up. sure it has been a slow pick up 'cos speculation is still more focused on the high-end and close to IR properties (fgn buyers probably dominate the buying scene)...but the spillover effect is already being felt at suburbs with local hdb dwellers upgrading to private apts. i think more people are out hunting for value deals now 'cos they fear prop prices might rise to levels beyond their affordability (it's either now or never). rental takeup and yields at suburb private apts have increased quite abit as well with influx of foreign talents. as hsehold income increases..HDB restrictions such as ceiling cap for grant, loan etc will be push factors as more young couples are looking towards private property market..and hence, the smaller/cheaper properties in the suburbs will see an increase in demand hence price over the next 3-5yrs. i believe many are also starting to pick up value buys for rental yields rather than capital appreciation...traditionally rental has always been a safe/stable form of revenue generating investment...with the fast ageing population..many retirees will look into investing their retirement funds in properties to yield returns.devilish_me is offline Report Post Reply With Quote Multi-Quote This Message Quick reply to this messagedevilish_meView Public ProfileSend a private message to devilish_meFind More Posts by devilish_meAdd devilish_me to Your Buddy ListOld 24-04-2007, 11:41 AM #10oo88ooJunior Member Join Date: Oct 2005Posts: 9 yes prices of property outside core is starting to "recover" not pick up as it has been "declining" (inflation, GDP?). The recent run/increase in core area is by foreign investor/REIT, thus only at core, as they buy up city core plus en-bloc, there will definitely be spill over to outside city core. This spill over should be small and gradual. If the spill over is large and increase is huge, then it shows locals are into the buying frenzy, that is when the dangers start.Property boom (which always follows by burst) is cause normally by local residents/people in the herd mentality to buy without strong positive economic fundamentals. The Singapore heartland property price should always remain the same;1) Declining birth rate - for past 10-20 yrs, means no new demand, actual net demand is only replacement2) Ageing population - the 99 year lease of HDB has huge impact, many 1 to 2 child family will and can leave their HDB to their children; meaning that they do not need to buy a house.3) Age/% of married - both is getting older and less, so the demand for house is getting less. Lucky HDB recently let single to buy all types flat so lesser impactThe internal factors does not warrant a propety boom, the recent run is cause by external parties buying based on their research that Sing Govt has done a good job laying the foundation for economic growth for next 10-20 years, so they are buying for business/investment. Also all the major cities in SEA has experience same property run for past 4-5 years. Singapore city core is only catching up.
Below is another reason why "investing" in mid-tier and mass market condos tend not to be a great idea in S'pore. Given S'poreans proclivity to buy things that are new, any mid-tier or mass market condo that is 4 years and older is perceived by most S'poreans to be "old" and therefore not very desirable. This phenomenon is very commonplace here but it is quite rare in other cities around the world. In fact, in Australia, the reverse is almost true. Over in Oz there is always tremendous demand for existing homes so much so that the govt only allows Australians (and I think PRs too) to buy from the resale market. Foreigners are restricted to buying only new property developments in Oz.My 11-year old mid-tier, freehold, condo in district 5 has hardly appreciated in price over the past 2 years. So, from here, I have little conception about this supposed propertry market "frenzy"... And I am VERY doubtful about any apparent closure of the price gap between new properties and those in the resale market. I'll believe it when I see it... ie, when fliers from genuine buyers start dropping into my mailbox on a daily basis and not the occasional one that I receive every few weeks (as is now the case).---------------------------------------------------------------------------------------------------Published October 5, 2007, The Business TimesGap between new and resale homes at a highBut the difference is expected to narrow down the road, say analystsBy UMA SHANKARI(SINGAPORE) The gap between prices fetched by new and resale homes in the prime districts is now at a record high, an analysis of official data shows.A preliminary analysis of caveats lodged in the third quarter of 2007 by Jones Lang LaSalle (JLL) shows that for new homes there was a record premium of over 60 per cent from July to September this year.Since 2000, the average premium has been between 20 and 42 per cent, JLL said.But strong demand for new luxury projects in the third quarter - such as for Scotts Square, Cliveden at Grange, Helios Residences and The Lumos - means that the price gap between new apartments and homes in the resale market has widened rapidly over the past year, said Chua Yang Liang, JLL's head of research for South-east Asia.In addition, prices of new homes could be climbing faster as buyers can use the deferred payment scheme for new projects, but not for resale units, said Knight Frank's director of research and consultancy Nicholas Mak.Resale transactions take into account sales of homes in completed developments, while sales of new units are in projects that have been launched, but are yet to be built.However, JLL added that gap is likely to narrow as prices of resale homes will look more attractive.'Buyers will find it increasingly less attractive to purchase new developments when perfectly habitable resale dwellings at much more affordable price range are readily available,' Dr Chua said.The preliminary average selling price for new sales - based on caveats lodged in the prime districts - is estimated to be around $2,500 per square foot (psf) in the third quarter, JLL said.In comparison, amidst the continuous strong interest in new sales, prices in the resale market rose to close at an average of $1,220 psf for the same three months, albeit during a traditionally seasonal weaker period.This puts the price gap at around 105 per cent, but JLL's Dr Chua says that once more caveats are lodged for third quarter transactions, the gap will come to 'more than 60 per cent'.In the short term, the high premium gap seen in the third quarter is unlikely to be sustained, experts said.JLL, for one, estimates that the price gap will stabilise to between 32 per cent and 38 per cent over the next three to five years.But with the gap narrowing, the collective sales market can be expected to slow down, JLL said.'The attractiveness and success of en bloc transactions depends largely on this premium gap. The wider the gap, the more attractive is the market for collective sales,' the property firm said.Dr Chua reckons that the collective sales market is likely to slow down in the medium term, given that growth in new sales prices are likely to decline over the same period.As the premium gap narrows, en bloc activities should slow down as developers find it increasingly less attractive to undertake such redevelopments, especially in light of diminishing returns and impending changes to the Strata Titles Act.
Can she really afford it? Cannot PostI can afford new flatI can't afford top-up cashSHE wants to buy a house but is stuck with a real problem.Ms Lynn Manay does not have enough cash to pay for the cash-over-valuation (COV) amount her seller is demanding.That's the cash difference between the property's valuation and the asking price. It is the premium sellers ask for in a bouyant market.And with the current booming HDB resale market, it means COV prices can now hit new highs, said industry watchers.So for those in the market looking to buy a resale HDB flat, it is becoming a pretty frustrating affair.Ms Manay, a cashier, who makes about $900 a month, can afford to buy and service the loan for a three-room HDB flat, but she's unable to fork out the COV amount for that same flat.Ms Manay, 25, was willing to pay about $150,000 for a three-room HDB resale flat in Bukit Batok, but the buyer wants about $20,000 above valuation for the flat.This means the selling price for the flat is about $170,000.Said Ms Manay: 'How can I afford to pay $20,000 in cash for the flat?'I don't have that kind of money. It's very stressful looking for a flat these days.'I've been looking for three-room flats in the resale market in many areas and the sellers are asking for high top-up amounts.'I've calculated that I'll need to top up at least $10,000 cash to buy a place now.'BORROW FROM RELATIVESMs Manay, who is single, is planning to buy the flat with her mother.The two of them do not qualify for a HDB subsidised flat, hence they have to look at the resale market.Her mother, 54, has been separated from her husband for 19 years and they have not finalised their divorce.Ms Manay said she doesn't know where her father is now.She's currently living with her brother and his wife in a four-room HDB flat in Bukit Panjang.But the brother has sold his flat because of financial difficulties and will be moving in with his in-laws by February next year.Added Ms Manay: 'I've been calling property agents for the last three months and they said that I've to top up cash if I want to buy a place.'I can only pay at most $5,000 cash and even that, I've to borrow from friends and relatives.'Even if I want to rent a place from HDB, I've to wait for at least a few months and I need a place urgently.'While she can always rent a place first, the market rental rate for a three-room flat at about $1,200 per month is a big deterrent.She said: 'I'll rather use that money to pay for a mortgage for a place. To pay about $1,000 for rental is not cheap, and that doesn't include utilities and furniture.'The current high COV prices is reminiscent of the property bull-run in the mid-1990s, when buyers have to pay a huge premium over the valuation for HDB flats.Executive apartments in Bishan, for instance, routinely found buyers who were willing to pay more than $100,000 above their valuation, according to a Straits Times report in 1995.Today, be prepared to pay a premium of at least $7,000 cash for a three-room flat in outlying Choa Chu Kang and similarly for a five-room flat in Yishun, according to HDB's third quarter median COV figures for resale flats.And that's just for flats in the outlying areas.The highest COV paid last quarter was a whopping $91,500 for a five-room flat in the central area.How can I afford to pay $20,000 in cash for the flat? I don't have that kind of money. It's very stressful looking for a flat these days. -Ms ManayThe executive director of HSR Property Group, Mr Eric Cheng said that his firm has received letters from the public asking if they are selling flats with just a $5,000 premium or no upfront cash.He said: 'I've to tell them that I don't have such flats at the moment.'For those buying a resale flat today, they have to pay upfront cash above valuation. The property market has strengthened, the economy is doing well and it's a sellers market now.'You can't buy a resale flat now if you don't have money. It's not just the COV, you've to think about paying for property tax, agent's fee and renovation too.'He advised Ms Manay to rent if she can't afford a place now.The limited HDB flat supply is expected to improve with over 7,000 new flats to be launched in the next seven months.This means that the COV situation will improve, said Mr Cheng.He added: 'Those who want to buy resale flats but can't pay the COV can perhaps wait for next year when a lot of HDB flats will be launched.'By then, the COV should be more reasonable.'This article was first published by The New Paper on Jan 1, 2008.
Anxious sellerAN INDONESIAN home buyer is sitting on three brand-new condominiums he bought in Singapore last year for almost $3 million in all.He is eager to sell one - a two-bedroom unit at Parbury Hill in Upper East Coast - and use the cash to hold on to the other two until the market picks up again, his property agent told The Sunday Times.... moreThe bright side'If the owners are desperate, they may ask for $700,000 but accept 10 per cent less. Some of these condos would be worth considering for buyers.'MR ERIC CHENG, executive director of HSR property group, on buying opportunities for home seekersRELATED LINKS Projects with the most sub-sales
Why HDB act like AH LONG??i was out of job a few months ago and my wife is on commission base job so both of us got no CPF to pay for installment for our house so no choice use cash lor but we got a baby last year so our expenses went up so we default the payment about half a year so the debt mounting up to 4k plus. then HDB ppl start to come knock on our door and leave msg said they are here from wat time to wat time and tell us to pay up! also told us to rent out one of our room. but both of us got to work so we got a maid to look after our baby(as we both are not on good term with our parent) so we are on our own, rent out one room then left the maid and my baby at home and wat if anything happen to my baby then are you (HDB PEOPLE) going to take respondsibility for it???!!!! and during my wife pregnancy she is so sick that she can't wwlk at all so during the whole year she can't work so we got not enought income to support our expenses and our debt start mounting up from credit card and credit line.But now i got a job already and we trying to pay for the installment every month and we pay extra 100 plus just to repay our debt to HDB and still they call and disturb us , forcing us to pay the whole 4k plus that we owe them. After my wife beg and talk to them then they say ok lor!!!PLease if we are able to pay we would pay long time ago!!! You think i love to disturb by AH LONG from HDB?!!!!please understand ppl financial problem.NEED us to show all our debt from credit cards etc ???even we are paying every month NOW!!!!???--------------------------------------------------------------------------------(To AMK BRANCH OFFICE)
No to upping $8,000 income cap for 1st-time HDB buyersBy Lynn LeeTHE HOUSING Board will not raise the $8,000 income ceiling for first-time HDB flat buyers, despite numerous calls by MPs and the public to revise it.National Development Minister Mah Bow Tan told Parliament on Thursday that the current income criteria captures some 8 in 10 Singaporean families, including upper-middle income ones.'I hope members will agree with me that this is more than generous and will not be surprised if I tell them that HDB has no plans to revise the income ceiling,' said Mr Mah.His response came three days after MPs like Mr Christopher de Souza (Holland-Bukit Timah GRC) pointed out that families earning more than $8,000 were stuck - as they were unable to purchase new homes, and yet could not buy them in the resale marke because of the runaway prices.Mr Mah acknowledged that HDB resale prices had seen a 'heady' growth of about 17 per cent last year.But he did not think this trend would continue and drew attention to other affordable alternatives.For instance, families who exceed the income ceiling could turn to resale Executive flats.Mr Mah also assured Singaporeans that the Government would ensure that HDB flats remained within the reach of the vast majority of Singaporeans, especially young couples looking to buy their first home.For instance, they will get more chances in balloting exercises for new flats.Mr Mah said the Government had spent an average of $1.4 billion a year over the last five years on public housing.For the 2008 financial year, it was setting aside $1.6 billion as part of efforts to cater to Singaporeans' housing needs. source : http://www.straitstimes.com/print/Latest%2BNews/Singapore/STIStory_211465.html
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Topic: [Focus] Singapore housing market (Read 37114 times)
