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Private property prices... Up or Down?

Kelfinity

By Kelfinity,
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Kelfinity

Kelfinity

1st Gear
(edited)

What do you think? For the coming months, what will the movement be for private properties? Up or down? Stagnant?

Asking cos thinking of getting one but duno to wait or buy now...

Also, which area is accessible yet affordable?

Please contribute. Thanks... flowerface.gif

Edited by pChou
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Focusdude

Focusdude

Neutral Newbie

What do you think of Upp Serangoon area? It's quite accessible, only 5 mrt stop away from Dhoby Ghaut and short drive from city too.

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Kelfinity

Kelfinity

1st Gear
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exactly where pls?

 

i was looking at kembangan area now... quite alot of boutique apts there. Going at ard $800-900psf.

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M1122

M1122

Neutral Newbie

Just my opinion, last year lots of en-bloc so this creates immediate demand as these pple need to buy replacement homes. As of now I think most of the en-bloc have already bought homes so demand is quite stagnant. Prices are at historical highs so there should be no rush. Buy high does not mean sell high......selling price is determined at time of sale.

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Viceroymenthol

Viceroymenthol

6th Gear

If you really need one now, just buy the best your money can buy and don't look back. If you can comfortably service the loan, then no need to kill yourself agonising over whether prices will rise or fall. Because if one keeps waiting and waiting, one will never get around to it because there will always be this nagging thought "oh prices might fall next year, etc etc". This attitude helped me in buying 3 properties in 2004/2005. Have sold one last year, now living in one and renting out the other one for high yield.

 

Then again, please do detailed research on the property you are buying because property prices and values, especially with regard to location, unit, etc are not as clear cut as car prices.

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Wind30

Wind30

Turbocharged

04/05 is very different from now lah.... one can never time the market. you buy in 04/05 now ask people to buy now, so you can sell of your second property izzit? :)

 

my idea is, if you can wait, only buy after a period of 1 year where NOBODY wants to buy anymore and property agents are thinking of changing jobs. now, the prices are still sky high, similar to the 07 prices, not much drop. Reason is housing prices is less nimble as sellers can also wait for 1-2 years before droppping price.

 

But you can see that the major developers already withdraw from all the enbloc offers as they know the prices is too high already. They rather lose their deposit than to buy.

 

buy a house is a LONG TERM commitment and when you buy can haunt you for quite sometime. Wait for a period when the prices are more reasonable. I bought my EC in 2001/2002.

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Viceroymenthol

Viceroymenthol

6th Gear

Your advice is only based on one assumption: that one year later market will be really bad and nobody wants to buy property any more. That is risky thinking.

 

When I bought in 04/05, many people were also telling me expensive lah, prices will crash lah, etc. Frankly speaking, I was also worried then but I consoled myself that as long as I can afford to upkeep the loans, and get a high rental yield, why not. During that time I also didn't see that prices could go up so much, so it definitely wasn't gambling, more like long term investment (10 years or more).

 

No currently I don't want to sell my 2nd property, not for quite some time. Not because I cannot sell or I price too high, but because the current market price for that property is almost 3 times what I paid for in 2005. I got a good buffer against price fluctuation over the next few years, which I sort of am half-expecting. I am keeping it because the rental yield far outstrips the loan repayment. I don't even get this kind of yield in SPC shares!

 

When it comes to property investment (investment also includes the one you are staying in because the nature of Singapore is such that over the long term, average prices will definitely rise provided that the country remains stable), one must always think long term, and not cultivate the kind of attitude of the flippers. These flippers have all died very jialat this year.

 

The reason why I told him to buy if he spots a good unit at a good price, is that that unit in that development may never come again at that price. A good unit in a good condo can stand the test of time and can better withstand economic uncertainties.

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Viceroymenthol

Viceroymenthol

6th Gear

If I were to buy now, I would think of the downside: if market crashes, how far down can prices for my property go?

 

Certain properties have lesser downside, certain ones have more. This is due to many factors such as location, supply vs demand for that kind of property in that location, supply vs demand in relation to the number of units your condo has (more competition to sell, driving prices lower), profile of your condo's owners (are they the can afford type or the cannot afford but ngeh ngeh want to buy type), etc.

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Iridrium

Iridrium

1st Gear
What do you think of Upp Serangoon area? It's quite accessible, only 5 mrt stop away from Dhoby Ghaut and short drive from city too.

 

Upper Serangoon area is good! Well, I am vested so I might be biased.

 

I considered the fact that the future Serangoon Mrt will be served by two lines (NEL and circle) and a large shopping mall with integrated transportation hub.

 

Only problem is that if you drive, you have to use either PIE or CTE, no other choices available.

 

Looking at the current prices, I reckon private properties around the area can substain between $800 - $1,000psf in the long run.

 

But that is just my humble opinion.

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Dumb

Dumb

4th Gear

Your advice is only based on one assumption: that one year later market will be really bad and nobody wants to buy property any more. That is risky thinking.

 

When I bought in 04/05, many people were also telling me expensive lah, prices will crash lah, etc. Frankly speaking, I was also worried then but I consoled myself that as long as I can afford to upkeep the loans, and get a high rental yield, why not. During that time I also didn't see that prices could go up so much, so it definitely wasn't gambling, more like long term investment (10 years or more).

 

No currently I don't want to sell my 2nd property, not for quite some time. Not because I cannot sell or I price too high, but because the current market price for that property is almost 3 times what I paid for in 2005. I got a good buffer against price fluctuation over the next few years, which I sort of am half-expecting. I am keeping it because the rental yield far outstrips the loan repayment. I don't even get this kind of yield in SPC shares!

 

When it comes to property investment (investment also includes the one you are staying in because the nature of Singapore is such that over the long term, average prices will definitely rise provided that the country remains stable), one must always think long term, and not cultivate the kind of attitude of the flippers. These flippers have all died very jialat this year.

 

The reason why I told him to buy if he spots a good unit at a good price, is that that unit in that development may never come again at that price. A good unit in a good condo can stand the test of time and can better withstand economic uncertainties.

--------------------------------------------------------------------

Your case is different. You entered the market when it was dull. Before that the market was much higher. So even if you lose it wont be much.

 

Now is different. The market is at the peak and if it goes down, you can jump off the building if you cant hold for many years. Just like those who bought in 1996 and 1997, some only manage recover the cost in today's market. But there were many dead along the way before the market could recover. You are lucky that you got it when many who sell at the time were losing.

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Viceroymenthol

Viceroymenthol

6th Gear

Car depreciates to nothing. But freehold (or 999 yr) property will not, plus can make money from rental. Unless Singapore disappears from earth. You have to differentiate between asset and liability.

 

Anyway "price is still high now" is a general statement that does not apply to certain properties. There are some properties that I feel are undervalued in mid-end but good locations like Newton (Park Infinia, Gloucester Mansion, Newton Euro-Asia) and River Valley (Aspen Heights, UE Square, Valley Park). There are some pretty good deals out there with 20% - 40% discount from the peak of last year. I think these can bargain one, you have to bargain harder. Have to look around lah. I am also getting itchy again. [laugh]

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Viceroymenthol

Viceroymenthol

6th Gear
(edited)

If only I had the benefit of hindsight. Now you can can say I had it easy, bought cheap. When I entered the market at the time, they weren't cheap (compared to the rest at that time) and I never knew prices were going to go up so quickly, I was prepared to hold long term with full knowledge of what I was in for. Back then, it was a better place to put money than in stocks or financial products, I felt.

 

But I generally share your sentiments... it IS a little risky to buy now. However if you spot a good place with good price, for example Park Infinia in Newton(close to Orchard) if you can persuade owner to sell at $1000-$1200 psf, or The Seaview in Amber Rd selling at $900 psf, why not?

 

Definitely a better buy than Upper Serangoon at the same sort of prices!

 

*not vested in those places*

Edited by Viceroymenthol
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