New Bargains to be had?

[tenyawph]

Painful for whoever is forced to come out money loh

 

Developers with unsold inventory

Investors with unrented inventory

 

Muayhahahahhahahhahhahahhahhahhahhahhahhah

 

Yes, you hit the nail on the head! 

[Wyfitms]

Be patient

 

 

mai spread fear lah

 

first, another play of words by media. what double digits? 10% or 99%?

 

my guess is worst case would be low teens

 

landlords will survive a 10% vacancy lah, no need to fear so much

For the rich in MCF, super fantastic discount, only for selected projects

 

let me know if you want to buy some of these. i can help u get an extra 1% off from the developer.

 

[Throttle2]

Prices took another dive recently.

 

Many landed houses that i saw asking for high 3mil in the last two years are now asking mid 3mil....

 

Hyek hyek hyek

Muayhahahahahahahahah

 

But Sigh, i sibei suay, no job no income, no cash, wait for it to drop another 10% also cannot buy.........hai........

[Wyfitms]

Prices took another dive recently.

 

Many landed houses that i saw asking for high 3mil in the last two years are now asking mid 3mil....

 

Hyek hyek hyek

Muayhahahahahahahahah

 

But Sigh, i sibei suay, no job no income, no cash, wait for it to drop another 10% also cannot buy.........hai........

[Throttle2]

looking around? so fast starting to shop already? don't bother to look lah, property still very expensive one, wait longer will get cheaper

 

As mentioned several times, i am not looking to buy.

But i always try to keep abreast with the prices.

 

Definitely will get cheaper.

No hurry

 

Moreover, and i repeat, i no job no income, how to buy??

[tenyawph]

As mentioned several times, i am not looking to buy.

But i always try to keep abreast with the prices.

 

Definitely will get cheaper.

No hurry

 

Moreover, and i repeat, i no job no income, how to buy??

 

You sold a property in 2013, so what happened to that cash and profit?  Or it was spent on Rolex watches and a Porsche car?

[PSP415]

You sold a property in 2013, so what happened to that cash and profit? Or it was spent on Rolex watches and a Porsche car?

[tenyawph]

[PSP415]

I hope T2 succeeds to sell his car. That will go a long way to alleviate his current financial situation.

[Evillusion]

As mentioned several times, i am not looking to buy.

But i always try to keep abreast with the prices.

 

Definitely will get cheaper.

No hurry

 

Moreover, and i repeat, i no job no income, how to buy??

cb...no job no income but got a lot of money....a darn good life!

Happy new yr bro!

[Throttle2]

You sold a property in 2013, so what happened to that cash and profit? Or it was spent on Rolex watches and a Porsche car?

Oh, no lah.

 

My Porsche was bought way before selling a property at record peak price in 2013.

My Rolexes, i have been buying since long ago.

My cash and profit mostly in investments or in the bank.

 

But nowadays things so expensive, life very tough.

cb...no job no income but got a lot of money....a darn good life!

Happy new yr bro!

Bro, no job no income, how to have a lot of money?

Only sibei tulan

[tenyawph]

Besides the ABSD rule, there is another rule that will penalise the developers.

 

"Any units still unsold two years after a project's completion face an "extension charge," of 8% of the proportional land cost for the first year, rising to 16% in the second year and 24% in the third year.  This is applicable if the developer has a foreign shareholder".   This means all the public listed developers like City Development, Capital Land, Wing Tai, etc, fall under this category (because as long as 1 foreigner holds 1,000 shares of the developer's company, it is considered foreign holding).

 

Unlike the ABSD rule which the developers have no way to avoid (Some bros here have suggested setting up an investment company to buy over the remaining units.  It does not help; the investment company pays the ABSD instead of the developer, why bother to set up in the first place?), there is a way to avoid paying the extension charge, that is, to de-list the company (make it private, hence zero foreign holdings).  However, it is not cheap to delist.

 

Developments to be affected by this rule include:

Urban Resort

Interlace

d'Leedon

Nouvel 18

Le Nouvel Ardmore

Ardmore 3

TwentyOne Agullia Park

 

 

 

 

 

Edited February 9, 2016 by tenyawph

[tenyawph]

An interim update.

 

First private property (under the HDB land sales) to face the ABSD penalty at the end of 2016 is possibly "The Trilinq".  Out of 755 units, about 221 units have been sold (based on Edge Property  website info).

 

First private property (under the URA land sales) to face the ABSD penalty at the end of 2016 is possibly "Echelon" (I am not sure if its land sales is awarded before or after the ABSD cooling measure was imposed in Dec 2011).  3 very expensive penthouses ($7 million upwards each) are still unsold (see Property Guru).

 

The developer for Echelon should be able to avoid the ABSD penalty (calculated based on purchased land costs, not the number of unsold units) by buying over the 3 penthouses easily.

 

However, to do the same, the developer of 'The Trilinq' is going to face a massive buy-over costs for the remaining units. 

 

 

 

 

[BanCoe]

So looks like some fire sales waiting to happen in next half of this year

[tenyawph]

So looks like some fire sales waiting to happen in next half of this year

 

Someone done a very detailed 'The Trilinq' review.

 

http://www.propersquare.com/reviews/details/the-trilinq#.Vun8zWdf3IU

 

The conclusion from the review is not flattering. 

 

Quote from the review:

 

We found Trilinq to be very pricey, relative to its neighbours. We were hoping to discover something truly outstanding to justify the cost, but couldnt quite find it.

All in all, we were disappointed in the execution: It felt rather mass market.

[Kusje]

What's the breakeven cost for them?

 

Maybe even with the penalty they still have a lot of meat so refuse to blink.

[Mockngbrd]

Someone done a very detailed 'The Trilinq' review.

 

http://www.propersquare.com/reviews/details/the-trilinq#.Vun8zWdf3IU

 

The conclusion from the review is not flattering. 

 

Quote from the review:

 

We found Trilinq to be very pricey, relative to its neighbours. We were hoping to discover something truly outstanding to justify the cost, but couldnt quite find it.

All in all, we were disappointed in the execution: It felt rather mass market.

This one is pay for Lexus, get a Vios. Whoever pay 1.8k psf for a 1 bedder there sure cry. 

Edited March 18, 2016 by Mockngbrd

[tenyawph]

What's the breakeven cost for them?

 

Maybe even with the penalty they still have a lot of meat so refuse to blink.

 

Property analysts had estimated a breakeven cost of $854 to $974 psf ppr for Trilinq.  So the developer, from Malaysia, has a big leeway to reduce prices without hurting its profit margin, but it is not doing so, just yet.

 

For a development outside the central region (OCR), the pricing is way too high.  At best, it should be priced around $1,000 to $1,100 psf at current market sentiments.