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Mickey Mouse Tio Cap - Shoebox units relooked


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Mickey mouse or not... still doesn't make sense to artificially control the market. Just my opinion only

 

Yup, do agree from your perspective but I believe URA intervened cos many of those who bought these mickey mouse apts are investors/speculators who r over-leveraged. If this segment collapse, it might affect the other property sectors. Afterall, with property prices at all time high, this would also mean most property buyers are over-leveraged as well. If the property market tanks, it would be jialat jialat for the economy.

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Why should URA intervene if there's a demand for these apartments? Should be left to free market forces to decide.

Bec cheng hu scared that mickey mouse piak piak no baby mah. they want the non-mickey piak piak got baby come out type. :o

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Mickey mouse or not... still doesn't make sense to artificially control the market. Just my opinion only

But if left to market forces, developers will always go for psf maximising. Then like HK? Everyone forced to settle for MM type of housing now.

 

 

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this curb will just push up prices for shoebox units.

 

Let's face it, you can't fight the trend of a aging population from the baby boomer generation, more singles, more couples who doesn't want to have kids and more expats when you have a FT policy. All these factors make the demand of shoeboxes very desirable, because they are affordable and easier to maintain, hence, suitable for the lifestyle needs for the group that I have mentioned.

 

Curbing this supply will just make the demand even higher and pushing up prices for the existing shoebox units. The right move is to control the demand, which is obviously a more difficult job.

 

I also could not rationalise the fact that shoeboxes will add to more traffic congestion. Why should that be so? Larger units means more people living in it and may means more ownership of cars from that one large unit. Infact, larger units may contribute to more traffic because besides going to work, the family may also need to transport their kids to school. I would prefer to have a block of 50 shoeboxes beside me than a block of 20 larger units because the total occupants in that 20 larger units may be more than the 50 shoeboxes. So how would shoeboes contribute to traffic congestion? Seems for distracting attention away from poor road planning and FT policy which to me is a bigger contributor to traffic congestion.

Edited by Icedbs
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the demand is fueled by speculators. earning power has not moved in tandem with prices, so a lot of people have effectively been locked out of the markets, since the apartments commands a higher PSF for a very tiny apartment.

 

you're also forgetting the congestion, parking issues etc that come with packing more people into smaller spaces.

 

People who can't afford should not be buying. Developers who build such apartments and indirectly encourages speculators will bear the brunt of the market when purchasers can't pay up and forced to look for new buyers. They go bust because they build shoebox apartments then so be it because they lack foresight. This is free market force in action.

Congestion and Parking issues: URA should have consulted LTA (maybe they did I don't know) or build in road widening measures (its actually present but probably insufficient) when they decide to up the plot ratio thereby increasing density.

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But if left to market forces, developers will always go for psf maximising. Then like HK? Everyone forced to settle for MM type of housing now.

 

Developers always want to maximize profit whether market forces are at play or otherwise. Price per sq ft must be the highest possible (to the developer) whether its shoebox or car garage type apartments. Right?? post-4638-1346826451.gif

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Yup, do agree from your perspective but I believe URA intervened cos many of those who bought these mickey mouse apts are investors/speculators who r over-leveraged. If this segment collapse, it might affect the other property sectors. Afterall, with property prices at all time high, this would also mean most property buyers are over-leveraged as well. If the property market tanks, it would be jialat jialat for the economy.

 

That is for the banks to control mortgage approvals what.

Not URA's job to limit the minimum $$$ for private apartments by controlling the sizes.

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That is for the banks to control mortgage approvals what.

Not URA's job to limit the minimum $$$ for private apartments by controlling the sizes.

 

On surface, we are told that our loan to income ratio for housing should not be more than 35%. In reality, banks do cross this threshold. My bro-in-law used to work as a housing loan specialist last year and this was what he told me. The highest he've seen was 70%. No idea how that loan was approved.

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That was what happened to the sub prime lah.

Indiscriminate approval of loans. The repackage to a sophisticated financial product and sell off to other jokers. Hop Hop Hop then the last one die :D

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On surface, we are told that our loan to income ratio for housing should not be more than 35%. In reality, banks do cross this threshold. My bro-in-law used to work as a housing loan specialist last year and this was what he told me. The highest he've seen was 70%. No idea how that loan was approved.

 

70% only? i've seen 80%. those thresholds involve personal guarantee, thats why can.

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once again, another one pill suits all solution from the govt, which fails to understand where the risks for shoebox units are coming from.

 

Never take the effort to understand the root of the problem and think of more creative ways address the potential fallout.

 

 

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