Huat ah ! profit $330K & $420K - time to buy porky

[Wt_know]

 

Some flat owners sitting on a goldmine

HDB units bought in 2007 can fetch more than double the purchase price

 

By Daryl Chin

SOME lucky Housing Board home owners, whose flats are entering the resale market this year, are looking at more than double the price they paid for the units.

 

Property analysts say such high asset appreciation, attributable to good timing and a buoyant resale market, is one that is unlikely to be repeated in a long time.

 

These flat owners, who had the keys handed to them in 2007, would have fulfilled the minimum occupancy period (MOP) of five years this year.

 

'Back then, HDB prices were in the doldrums because of Sars (severe acute respiratory syndrome) and the Asian financial crisis,' said PropNex chief executive Mohamed Ismail, who linked the windfall they could enjoy to the surge in resale flat prices in recent years.

 

He noted that the HDB's resale price index in the first quarter of this year stood at 191.6. It was 104.9 in the first quarter of 2007.

 

In a statement to The Straits Times, the HDB said these flats whose MOP could be fulfilled this year include those in mature estates such as Queenstown, Toa Payoh and Bukit Merah, as well as non-mature estates such as Punggol and Sengkang.

 

Since the MOP begins on the date the keys are issued, not all the households, however, would be eligible for the resale market this year, it added.

 

One owner whose MOP will be up this year is Mr Johnny Wan, 42, who balloted successfully and paid $330,000 for his four-room unit in Block 91, Tanglin Halt Road, in Queenstown. He now gets fliers from real estate agents who promise him at least $750,000.

 

'My friends called me crazy and said I could have landed myself a better deal elsewhere, maybe an executive condominium,' recalled the shipping firm manager of his decision to buy back then.

 

'But it's all about location to me, and I'm the one who's sitting on a tidy profit now,' said Mr Wan, who may sell his flat if the right offer comes along.

 

It is a few minutes' walk from Commonwealth MRT station and is among about 1,000 flats built as replacement units for those affected by the Selective En bloc Redevelopment Scheme.

 

Those living farther away, in non-mature estates, are also sitting on tidy paper profits.

 

Mr Roslan Salam, 34, paid $170,000 for his four-room unit in Punggol and moved in in 2007. A similar unit in a nearby block sold for about $500,000 in March. 'It was a lucky buy. When we first checked the area, not much had been built and it wasn't as busy. Times have changed,' said the auxiliary police officer.

 

'It's like striking a lottery,' said SLP International head of research Nicholas Mak. 'These buyers came in at the right time before the property boom when prices started inching upwards.'

 

To satisfy first-timer demand, the HDB has promised to ramp up supply, and launch 50,000 flats within two years.

 

Mr Mak noted that as the prices of new flats are pegged to market rates, albeit at a discount, another chance to cash out at such a significant premium is unlikely to happen any time soon.

 

In flat sales launched this year, for instance, the price of a four-room balance flat in Queenstown ranged from $505,000 to $613,000, while a unit in Punggol cost $257,000 to $333,000.

 

'The resale price index is likely to remain stagnant in the coming year, and any growth would be very small,' he added.

 

Meanwhile, astute real estate agents are tracking MOP dates to find out where to lobby residents to sell. ERA agent Chris Neo said the pickings were hottest in Strathmore Avenue two years ago and Redhill Road last year. 'Most flats that have their MOPs up this year are likely to make a profit. It's only a matter of how much.'

 

[email protected]

Edited May 26, 2012 by Wt_know

[Yeshe]

sell leow sleep in the car??

[Timbuktu]

Yalor, sell oredi go where?

Downgrade ah?

Then have to continuous downgrade for life right?

Cos property price will go up and up.

[Chucky2007]

sell leow sleep in the car??

Sell Liao buy a 60m boat for 150k, spend 100k refurbish, n stay in it.. Last week sunday times article

[Hosaybo]

propoerty, unless you have more than 1 house, else what you gain is paper gain. Exception are some FT who just sell and than balek kampong with their 200K profit. Real example will be my former neighbour.

[Mazdaowner]

ECP or WCP. Got toilet, swimming pool, near to MRT station, near highway, sea view, sea breeze,

security (mata and park ranger kia bicycle) close to food centers, (free makan on weekends, because people jiak buay liow, throw, can go restaurant dustbin pick.)

 

 

[Enye]

My auntie's 3 room flat in tiong bahru bought 30 years ago costs less than $20K then but worth close to $400k now.

 

I wonder why she is not selling.

[Soya]

My auntie's 3 room flat in tiong bahru bought 30 years ago costs less than $20K then but worth close to $400k now.

 

I wonder why she is not selling.

 

 

and then stay where? buy replacement equally expensive.

if one onli has 1 property, all these 'profits' academic onli lah.

[Skyiet27]

sell liao

 

get a bto lah

 

cash out in process

 

alot of my neighbours did that on 5th year

 

suddenly alot change eg civic to bmw then moved out

 

they applied bto way before 5 yrs up

 

i made my move years later than them

 

i should have asked them in the past

[Ivan_06]

and then stay where? buy replacement equally expensive.

if one onli has 1 property, all these 'profits' academic onli lah.

 

move back to parents' place

 

i know of couples who do this.

[Kyrios]

Those who benefitted will vote PAP? Those who are newly wed now and just bot flats probably wont?

[Skyiet27]

elderly tends not to make this move

 

maybe due to feelings for that estate/house

 

maybe thought buy new have to loan all over again

 

they are not taught that they could actually change n pay fully and keep some cash with them

[Soya]

move back to parents' place

 

i know of couples who do this.

 

 

and then wat? forever squat at parent's house?

[Enye]

and then stay where? buy replacement equally expensive.

if one onli has 1 property, all these 'profits' academic onli lah.

 

I understand but the reporter does not.

 

I believe most young couples who sell will buy more than $1 million condo and take up 30 years loan thinking they earn already, forgetting that they had just taken a cash advance with a 30 year interest.

Edited May 26, 2012 by Enye

[Jman888]

see govt can make everyone half a millionaire in 10-15 years time

[Skyiet27]

with the help of FTs

[Mazdaowner]

and then wat? forever squat at parent's house?

 

I don't mind, if they pay for everything else plus my car!

[Wt_know]

flip flop signals leh

 

one day reports hdb is your nest ... it's not for flipping

one day reports 5 years mop owner can easily make $330K & $420K profit

 

so, sell or no sell ? hdb is for flipping or live till hong kan

 

Edited May 26, 2012 by Wt_know