Private property prices... Up or Down?

[Rickster]

I just popped by the showflat for one-rochester (beside the buona vista MRT, opp MOE building) while waiting for a friend last friday. According to the agent, the developer is about to close down the showflat despite several units still available.

 

During initial launch, the price is around $1600psf. Now, the agent was telling me that I would stand a very good chance to get a 950sq ft 2-bedroom unit, mid-floor, at $1200psf.

 

Prices have dropped 25% within a year..OMG

[King_of_abalone]

This area is not considered prime district. It is considered HDB heartland.

 

I will pay only $700 psf, and that is today's market. If crash I will only pay $400 psf, same as what 99 year Dover condos were worth only 3, 4 years ago. 3,4 years ago Holland Rd condos $600 psf can get already.

[Hoppie24]

So would you advise for 99 or 999years? location?

 

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.

[Rickster]

So that means holland V condos can get at 700psf now?

[Acemundo]

there is still further downside....

 

with ppty market always lagging behind other markets, probably 2010 may be a better year to invest in ppty.

 

2009 shld see further downside to ppty prices.

[Perrier]

What is your advice on the Jewel@Chuan Hoe? Its going at $320-340psf for 999 tenure.

 

I am looking for a property that can house 3 couples + 2 small kids + maid.

 

As I am not familiar with land property, is it already considered cheap or would it go below as there is already one corner unit going like $290psf.

 

Thanks in advance.

[Rickster]

That is very reasonable. Its prices like an HDB flat. Just imagine u r buying a super large, 999yrs HDB unit, with condo facilities & beautiful architecture at serangoon area

 

I think its priced based on the built up floor area. The corner unit that is asking for $290 psf is most probably the larger unit at over 5000sq feet. Usually for landed property, the larger you buy, the lower the psf pricing will go.

Edited October 20, 2008 by Rickster

[Hishercar]

in the newpaper something ago someone bought a million dollar property landed 4000sq feet build in area

 

by now the price must have dropped

[Modykoh]

the location at amk/yck, and is priced at this level , free hold since 1889 or some thing..still get 800 plu year to go..

 

take note that bigger the GFA, it is more cheap (eg less then 400 psf)..

 

look at the price , is really consider good in today price...look attractive

 

u need to consider the maintenace fee as the total unit is very less..

[Perrier]

Hi Rickster, Hishercar and Modykoh,

 

Thanks for the reply!

 

Personally I like the design of the place. Good info on the remaining lease period. Will try to contact the agent soon and get hold of the flloor plan of various units.

 

Looking at those >$500k HDB, it looks like a much better buy.

[King_of_abalone]

wow.. attractive price leh.. can bargain lower or not? however not sure about the location leh.... better find out more about this house.. not saying you should be suspicious, but sometimes too good to be true.. usually is..

[Perrier]

Yah. Seemed like a good buy even at this moment. I am a little suspicious too.

 

Maybe there are plans around the area, like tall condo..

 

Anyway, new to property market. learning like crazy so that I can be ready for 2009/2010!

 

Initially was looking at Intero @ Potong Pasir, 8xx/psf for FH. About 240m from MRT. Nice view too.

[Throttle2]

8XXpsf for Potong Pasir is still too expensive in my opinion.

Should be no more than $700psf for freehold in Potong Pasir.

Watch the price, it will come off......

 

Base on past cycles, it will take at least 5 yrs for a turnaround in the property market.

 

Feel sorry for those folks who got caught in 97-98, until last year's peak still cannot breakeven. Yet last year got so many people blindly jump in.

 

I guess people who never kena hit never learn their lesson from others who did.

I target some older developments in River Valley to hit below $1000psf.

I might buy again when it is below $800psf.

[King_of_abalone]

bro... save your money.

 

buy D9,10,11 in 2009/2010/2011! you are buying blue chip at discount you know!

 

[King_of_abalone]

which part of river valley? yong an park?

[Throttle2]

River valley is quite a long road so there are many to look at.

I'm not sure at this stage.

 

Yong Ann Park is quite old school, but big piece of land.

Played tennis there during secondary school days.

a very livable estate although not quite my style.

[King_of_abalone]

ahhh acsian? or rafflesian?

Edited October 20, 2008 by King_of_abalone

[Check13]

I'm quite sure it'll happen.

 

When we see recruitment pages thick thick, we all know it means the job mkt very tight and coys are hiring.

 

When we see Sat/Sun papers, wah piang, so many developers advert to sell and the classified for sale so bloody thick thick, we should know what it means.

 

A LOT OF SELLERS AND SUPPLY. CONFIRM 101% chop chop chicken chop crash.