Private Property prices......still up or down? Part II

[Freewill]

One area i find rather grey which is bank valuation. Since the projects by developers are price set by them at own discretion, banks usually support their prices as bank valuation. Say for Park Place, what comparables are banks using to support valuation at that level? Whenbone do refinance say for a project launch few yrs back and just TOP compared to another project next door just launch. Comparing same floor area say 600sf unit, bank chk with valuer and deem the one TOP abt value is $100k less than the one just launch and sold. Not fair right?

[Freewill]

Assuming you are a buyer, Property A launch by developer sell at $800k and bank can loan you 80% so cadh you fork out $160k and Property B next door just TOP with better finishes and seller ask $780k but bank valuation $700k so in terms of cash you fork out 700k × 20% plus cash above valn $80k is $220k.Which one will you buy if say you want more cash on hand?

[Dafansu]

Huat-ers and non huat-ers, Mar 7 to 14

 

 

2 cases in city square, one is big lost one is big winners, must hold for 11 years to be winners

[Lala81]

Actually shld be the inverse ie ah Gong likes the west cos they have consistently voted for them n have the highest % wins amongst all regions with Tharman in Jurong getting the highest % win n even by-election with minority candidate also can win big so why screw them?

 

AMK is our PM's territory. must give him face also 

[Spring]

AMK is our PM's territory. must give him face also 

My in laws stay in Teck Ghee. Their market/food centre at blk 409 has been upgraded twice if I remember correctly and now their CC is being pulled down to build a bigger and better one when the original one was in good shape I felt and it's one of the bigger CCs on a huge plot so you are right, PM's ward sure has its privileges. Same for Marine Parade during GCT time.

[Kusje]

I supposed at 50% they have probably reached breakeven. The remaining will be to squeeze out as much profit as possible which they are prepared to wait

 

margin so much meh? 50% sold means breakeven?

Actually shld be the inverse ie ah Gong likes the west cos they have consistently voted for them n have the highest % wins amongst all regions with Tharman in Jurong getting the highest % win n even by-election with minority candidate also can win big so why screw them?

 

telcos give more incentives to new customers or old customers?

[Spring]

 

telcos give more incentives to new customers or old customers?

Fair point but I'm in the camp of don't take your votes for granted as history has shown it to be the case in other parts of the World. Anyway my point is against the idea on "West is being screwed" which I don't see why this be the case when in fact it's always "screw the Opposition Wards" if anything and the oppositions wards are/were mostly in the East or North East. 

 

BTW, I'm not staying in the West and have never stayed there at any point in my life.

[Showster]

the West is taken for a ride

since sure win ... no need to worry ... muahaha

It may be merely a case of mistaken contexts.

 

Maybe people in the west do not travel out of the region much? Work, eat, live all in the West... as bro LPPL says, all expressways and buses offer good connections elsewhere.

 

It's those in the other areas of the islands that travel to west and jam up the network. And those are the most unhappy, so build more stations and lines everywhere else to appease them?

 

But seriously, this imbalance needs to be dealt with as we talk about JLD or JID.

Edited March 27, 2017 by Showster

[Throttle2]

I supposed at 50% they have probably reached breakeven. The remaining will be to squeeze out as much profit as possible which they are prepared to wait

Definitely wont breakeven just selling 50%

[Wyfitms]

Isn't this paya lebar project part of lend lease's bid. I recall they paid like 900psf for the land

 

Whether breakeven at 50% would depend on how they allocated the land price psf internally. I'd imagine retail and office would carry a heavier weightage of the land price

[Throttle2]

Isn't this paya lebar project part of lend lease's bid. I recall they paid like 900psf for the land

 

Whether breakeven at 50% would depend on how they allocated the land price psf internally. I'd imagine retail and office would carry a heavier weightage of the land price

Yes exactly so, therefore once you include all the amortization and liability cost, it wont be 50% anymore.

No saying thats its impossible but rather that it likely wouldnt be at the end of the day.

 

Good for developer if it is. Stupid buyers...

Edited March 27, 2017 by Throttle2

[Throttle2]

I supposed at 50% they have probably reached breakeven. The remaining will be to squeeze out as much profit as possible which they are prepared to wait

The objective of a property developing business is to build and sell and build and sell and continue.

Build a reputation, more projects, diversify risk. Roll the dough etc eg .

 

Even if they hv broken even, no good business minded person would want cashflows impeded in unsold units by just waiting and waiting. The truly seasoned developer will not wait beyond a certain amount of time.

 

Of course, they will wait a while and see how things go.

Everyone does that. Naturally.

 

Just sharing opposing views hor, dont whack me

[Wyfitms]

Yeah I just saying I expect them to slowly sell the rest at even higher prices. At current sentiments, they might still find such buyers who can swallow such prices

[Freewill]

One reason why developer wont want to sell out so fast could be due to it is harder to bid for good sites , potential to sell higher ( knowing that current buyers who bought unlikely to sell within 3 yrs) or to pace their cash inflow within next few years so their profit looks

[Throttle2]

Yeah I just saying I expect them to slowly sell the rest at even higher prices. At current sentiments, they might still find such buyers who can swallow such prices

If quantum small, yes.

You mentioned that earlier.

 

The lower tier mkt is a sucker for that.

Heee heeee

[LPPL]

If quantum small, yes.

You mentioned that earlier.

 

The lower tier mkt is a sucker for that.

Heee heeee

Suckers still aplenty in the market, that is why developers continue to be bullish and bidding high prices for land. Agents just need to paint some growth story and use a few obscure rental contracts in the area to paint a rosy picture for buyers and the project will sell like hot cakes. Just look at what the growth story has done to J Gateway buyers, too greedy for gains from the growth story until I can say all the owners are stuck with their overpriced hdb condo. I recall driving past on launch day and I could see the overwhelming crowd.

[Wyfitms]

Suckers still aplenty in the market, that is why developers continue to be bullish and bidding high prices for land. Agents just need to paint some growth story and use a few obscure rental contracts in the area to paint a rosy picture for buyers and the project will sell like hot cakes. Just look at what the growth story has done to J Gateway buyers, too greedy for gains from the growth story until I can say all the owners are stuck with their overpriced hdb condo. I recall driving past on launch day and I could see the overwhelming crowd.

J gateway that one was fortunate for developer and agents

Sales was tepid up till afternoon

And govt announced the tdsr and right away agents all called the buyers and many rushed down to sign

And in a few hours after that all sold out

Agents had to work till 2-3am to finish paper work, but damn worth it

[Mercury1]

Whats the average psf the sales were done at?

 

J gateway that one was fortunate for developer and agents
Sales was tepid up till afternoon
And govt announced the tdsr and right away agents all called the buyers and many rushed down to sign
And in a few hours after that all sold out
Agents had to work till 2-3am to finish paper work, but damn worth it