Wreckwrx 1st Gear April 16, 2009 Share April 16, 2009 Reported in Business Times: Units at Caspian & Alexis have been returned. (about 10). Not so bullish after all...somemore got mini-star come out and say 2nd wave of layoffs may be coming. Might be a case where their bank loan kena rejected type.... It's not so easy getting the Bank to lend you money nowadays.. especially if it is your 2nd property and you still got outstanding mortgage to service. And even if they do, they may just finance up to 60%~70% only. Finally, the banks are extremely conservative in their valuation too.... Doesn't mean buying from a developer will mean that the bank will necessary match their valuation with the developer's asking price. They may scrutinise the layout and disregard your patio or planter areas (which are considered non-livable area) although the developer is charging you for it. So end up, you might have to fork out more cash instead... ↡ Advertisement Link to post Share on other sites More sharing options...
Santav Neutral Newbie April 16, 2009 Share April 16, 2009 there's still dark skies ahead...... Link to post Share on other sites More sharing options...
Falc 3rd Gear April 16, 2009 Share April 16, 2009 Might be a case where their bank loan kena rejected type.... It's not so easy getting the Bank to lend you money nowadays.. especially if it is your 2nd property and you still got outstanding mortgage to service. And even if they do, they may just finance up to 60%~70% only. Finally, the banks are extremely conservative in their valuation too.... Doesn't mean buying from a developer will mean that the bank will necessary match their valuation with the developer's asking price. They may scrutinise the layout and disregard your patio or planter areas (which are considered non-livable area) although the developer is charging you for it. So end up, you might have to fork out more cash instead... Went to this showroom and the sales guy asked me to use their inhouse bank for loan. I asked why? He said coz only this bank of theirs have high valuation of the property and hence can meet the loan quantum. Then i quipped doesn't that mean your property is over-priced and over-valued!? He went numb. Link to post Share on other sites More sharing options...
Wreckwrx 1st Gear April 16, 2009 Share April 16, 2009 So what was the agent's reaction to your statement?? Link to post Share on other sites More sharing options...
Falc 3rd Gear April 16, 2009 Share April 16, 2009 He let out a silly laugh. Basically he got nothing to reply. Link to post Share on other sites More sharing options...
Wind30 Turbocharged April 16, 2009 Share April 16, 2009 (edited) I think the main reason why so many mass market Condo is being sold is because the HDB pricing held up surprisingly well and people believe that it will start to fall soon. I mean if u have a hdb, u see for the past 6 months the condo price drop and drop while your hdb price went up, u will know that it is a matter of time before your hdb price starts to follow the economy and start to drop. So decide to sell now at the "peak" and change to a condo which has already dropped in price. This will cause hdb prices to fall... once the hdb prices fall significantly. the upgrade bug is no longer attractive, the housing market will go down again. So unless u own a hdb and want to sell it before the price go down, there is really no reason to enter the market now. To put the prices i perspective, I bought my EC in 2001 when the economy is not this bad, right opp YCK mrt, $570k for 13xx square feet, around $420 per square feet. That is in Ang Mo Kio, a matured estate, opp mrt. buying a place in CCK for like $600+ per square feet??? Common sense will tell u, the only way for housing market to rise in the long run is if people can afford it, ie wages go up, more jobs, econonmy recovers. There is no way the economy is going to recover soon. And even after the economy recovers the housing market usually lags by 2 quarters. Edited April 16, 2009 by Wind30 Link to post Share on other sites More sharing options...
Wt_know Hypersonic April 16, 2009 Share April 16, 2009 (edited) double whammy 1. sell hdb at peak -> what peak ? unless the hdb flat is sold at $658K. how many of these cases. 2. buy a "mass market condo" (not even freehold) at a premium price. Edited April 16, 2009 by Wt_know Link to post Share on other sites More sharing options...
Sabian Turbocharged April 16, 2009 Share April 16, 2009 Might be a case where their bank loan kena rejected type.... It's not so easy getting the Bank to lend you money nowadays.. especially if it is your 2nd property and you still got outstanding mortgage to service. And even if they do, they may just finance up to 60%~70% only. Finally, the banks are extremely conservative in their valuation too.... Doesn't mean buying from a developer will mean that the bank will necessary match their valuation with the developer's asking price. They may scrutinise the layout and disregard your patio or planter areas (which are considered non-livable area) although the developer is charging you for it. So end up, you might have to fork out more cash instead... I think some chicken out after news of impending 2nd wave of retrenchment may come. You got that down pat. The bulk of DPS purchases are gg to TOP and banks will do one more round of valuation before disbursement. Those specuvestors will "tng kor" and start the fire sale. Assuming 2 bedders in prime/ mid/ mass (650 sq ft) Avg loss : (1900-1320) 377k / (1100-870) 149.5k/ (663-556) 69.5k. Banks will ask for top up before disbursing loans... Link to post Share on other sites More sharing options...
Falc 3rd Gear April 16, 2009 Share April 16, 2009 To put the prices i perspective, I bought my EC in 2001 when the economy is not this bad, right opp YCK mrt, $570k for 13xx square feet, around $420 per square feet. That is in Ang Mo Kio, a matured estate, opp mrt. But you queued one or two days for it right? Link to post Share on other sites More sharing options...
Sabian Turbocharged April 16, 2009 Share April 16, 2009 (edited) duplicate Edited April 16, 2009 by Sabian Link to post Share on other sites More sharing options...
Sabian Turbocharged April 16, 2009 Share April 16, 2009 (edited) duplicate. Edited April 16, 2009 by Sabian Link to post Share on other sites More sharing options...
Sabian Turbocharged April 16, 2009 Share April 16, 2009 double whammy 1. sell hdb at peak -> what peak ? unless the hdb flat is sold at $658K. how many of these cases. 2. buy a "mass market condo" (not even freehold) at a premium price. 1. The seller must be sure bank willing to give him a loan. 2. 99yr - 99yr. No difference. Just that HDB may not evict but banks will. Link to post Share on other sites More sharing options...
Sabian Turbocharged April 16, 2009 Share April 16, 2009 Went to this showroom and the sales guy asked me to use their inhouse bank for loan. I asked why? He said coz only this bank of theirs have high valuation of the property and hence can meet the loan quantum. Then i quipped doesn't that mean your property is over-priced and over-valued!? He went numb. Would like to be there to see his face. Link to post Share on other sites More sharing options...
Wt_know Hypersonic April 16, 2009 Share April 16, 2009 (edited) imagine that one fine day you receive a margin call from the bank a 8% variation of a $750K valuation translates to a drop of $60K ... top up jialat .... sell quickly also jialat I think some chicken out after news of impending 2nd wave of retrenchment may come. You got that down pat. The bulk of DPS purchases are gg to TOP and banks will do one more round of valuation before disbursement. Those specuvestors will "tng kor" and start the fire sale. Assuming 2 bedders in prime/ mid/ mass (650 sq ft) Avg loss : (1900-1320) 377k / (1100-870) 149.5k/ (663-556) 69.5k. Banks will ask for top up before disbursing loans... Edited April 16, 2009 by Wt_know Link to post Share on other sites More sharing options...
Modykoh 1st Gear April 16, 2009 Share April 16, 2009 April 16, 2009 Home sales remain strong More than 1,000 private homes sold for the second month in a row in March By Joyce Teo THE bumper private property sales recorded in February were no fluke. For a second straight month, home hunters defied the weakening economy to buy more than 1,000 units last month. Property consultants say buyers are attracted to what they regard as good buys in the moderately priced mass market. Still, they warn that these strong buying levels are probably not sustainable. Last month, property developers sold 1,220 new private homes, just shy of the 1,332 units sold in February. It was the first time in over a year that the market has seen two consecutive months with more than 1,000 units sold. Sales for both months were a stunning contrast to the dismal 108 in January. Another striking figure: First-quarter new private home sales hit 2,660 units, representing 62 per cent of all new homes sold during the whole of last year. February sales - boosted mainly by two new launches Alexis and Caspian - were the highest since August 2007. Figures compiled by the Urban Redevelopment Authority also showed 832 new housing units were launched last month, compared with 1,072 units in February and just 204 units in January. Most units sold last month were in the mass market, along with a few city-fringe small-format apartments at condominiums such as Domus and The Mercury. HDB upgraders were the hottest group of buyers. CBRE Research said that last month alone, they bought 550 to 600 units at mass market projects such as Caspian, Double Bay Residences, Kovan Residences, Livia, Mi Casa and The Quartz at median prices of $610 per sq ft (psf) to $740 psf. A survey of first-quarter caveats lodged for this market segment indicated an average price of $695,000, said CBRE Research executive director Li Hiaw Ho. 'This is probably a good time for HDB home owners to upgrade to private property as the price gap between private properties and HDB resale flats has narrowed.' Said Colliers International director for research and advisory Tay Huey Ying: 'Developers have lowered their price expectations for new launches and generally cut prices of unsold units. Buyers are biting as there is pent-up demand.' The top three sellers in March were Double Bay Residences, Mi Casa and The Arte. About 85 per cent of units sold last month were priced below $1,000 psf, said PropNex chief executive Mohd Ismail. The high-end showed some life with 70 units launched and some sales, including one Orchard Scotts unit at $2,220 psf. But overall, only 100 prime units were launched in the first quarter, or just 4.7 per cent of all units launched, well down from the 39.4 per cent of all units launched in the fourth quarter last year. Knight Frank director of research and consultancy Nicholas Mak said this was partly due to the retreat of foreigners from the luxury market. Preliminary data suggests foreign deals stood at 16.8 per cent in the first quarter - a level last seen when Sars badly hit the market in 2003, he said. Market analysts say it is a good start to the year, but they do not expect the strong buying to continue long-term. 'In the short term, this rate of buying can continue provided developers lower or maintain their prices,' Chesterton Suntec International's research and consultancy head Colin Tan said of March sales. But in the long term, it is not sustainable, he said. 'The last time the market sold so many new units (14,811 units) was in 2007. That was when the deferred payment scheme was available. And it has since caused indigestion in the top end of the market.' Unless the Singapore economy and employment market improve significantly this year, only 6,000 to 7,000 new private homes are expected to be sold, said Mr Mak. He said healthy demand for mass market homes is likely to continue only as long as average HDB resale prices do not fall by more than 7 per cent year on year. 'Many in the mass market segment are buying now and banking on their future earnings to service their loans as they are afraid of missing the boat,' said Mr Mak. yap yap...wait for the dust to settle.... Link to post Share on other sites More sharing options...
Wreckwrx 1st Gear April 16, 2009 Share April 16, 2009 Oic.... so banks will do another round of valuation before disbursement for those under DPS.... With valuation so conservative nowadays... no wonder so many buyers just decide to forgo their deposits because where to find $$ to top up 50k~100k in cash.... Link to post Share on other sites More sharing options...
Hiphiphoray 6th Gear April 16, 2009 Share April 16, 2009 Good Times Buy.............Bad Times also Buy. WTH!!!!!!!! Link to post Share on other sites More sharing options...
Carbonfac3d Neutral Newbie April 16, 2009 Share April 16, 2009 Not yet arr..still more to come ↡ Advertisement Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In NowRelated Discussions
Related Discussions
Going to Kyushu...advice and recommend please.
Going to Kyushu...advice and recommend please.
Coolant level going down
Coolant level going down
Going to Brisbane, Please Advice
Going to Brisbane, Please Advice
Going to Batam. Where to park overnight ?
Going to Batam. Where to park overnight ?
Fatty Kim going crazy again
Fatty Kim going crazy again
Going to Polyclinic
Going to Polyclinic
Manual transmission cars going to be discontinued?
Manual transmission cars going to be discontinued?
Is it Necessary to go workshop before going VICOM inspection
Is it Necessary to go workshop before going VICOM inspection