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

[MrABC]

Did a kaypoh recce of Twin Vew:

They are using the adjacent development as a benchmark to raise their prices.

Nice views in the right facing but it’s not really near major conveniences or transportation hubs.

YMMV ..

 

Think they are marketing the future potential of Jurong CBD and the upcoming MRT site, but yes it lacks conveniences for now 

[MrABC]

Do you think developer also no choice got to fight to bid up prices? Cause their land bank is low and other developers are bidding, they no choice got to follow otherwise their shareholders will fault them?

[Wt_know]

LPPL lor ... buyers just have to suck thumb

pay same price $1M 5 years ago and $1M today for a private property

but size reduced by 30% ... the only way for people can continue to buy, just reduce the size ...

 

Do you think developer also no choice got to fight to bid up prices? Cause their land bank is low and other developers are bidding, they no choice got to follow otherwise their shareholders will fault them?

[retrozz]

@wt_know the newer properties tend to be more compact. Well it's time for everyone to slim down to fit in.    The other option is buy resale - there are quite a few "good" buys on the market if you get them at the same price that was paid 5-10 year back. Even in prime areas - so you still get the same space for same price albeit older project.

 

@MrABC developers don't really have to suck it all up. Maybe "once Armour always Armour"    There is a choice actually. There had been developers who have moved on and focused on other aspects of real estate. It may be better to wind down or trim their construction "arm" so that exposure not too hit by competitive pressures. As you said, shareholders would be furious if CEO complacent and too narrowly focused and not look for new markets or ventures elsewhere. However Singaporeans really have no choice when it comes to airport departures - we have to pay the ADL levy for the new Terminal if we fly out of the one and only Changi airport starting next month. 

 

[Mercs]

Wow ! You always got hot

[Mercs]

Whether SG property market fundamentals remains weak, indeed is subjective. Depends on developer perspective or retail buyer pov

 

But CMs still in full force since 2009 - it was because of property limited supply back in 2000s causing speculation activities. The last thing G wanted was a bubble bursting and/or affecting cost of living and inflationary prices - remember that G is trying to reduce inequality. Not as simple reasoning on the basis of market fundamentals. In fact, base on trends G has been fine-tuning the policies in the recent years and i guessing likely may relax more after the market supply increases thru G land sales and en-bloc launches, albeit the prices will soften lighty first with the ramped up supply.

 

Again i am not saying don't buy or must buy but rather to not read wrongly into the intent of SSD/ABSD/TDSR. These are sound measures for curbing speculative activities - forcing buyers to take longer term ownership views and/or be responsible with their finances. It does not mean the market fundamentals are strong or weak. Nor is the G responsible for the profitability of the developers - they may end up making good margins or even losses if there is another global financial crisis again.

 

One thing for sure - Hawker prices going up soon for the coming renovated ones. Due to the new tray return system and automated cleaning process - the costs will be passed to consumers eventually

Nice analysis, agree with the above said

 

Hawker prices going up? What's new ... expensive SG.

Now a basic decent meal at Hawker easily 5-10 bucks.

Last time hawkers do it just to make a living, now those well known hawkers do it to get rich, can be millionaires in no time.

[Dafansu]

Yup, price war going on there, heard sales not so ideal, which is expected.

 

Anyway, for buyers there is really no hurry, many more new launches coming up, choices galore.

 

find these projects a bit overpriced. 

[Mercs]

ABSD- this is to prevent the wealthy from buying up all the good stuff. Probably not going to be removed.

SSD-flipping a property is not really an economic activity and some tax is justifiable . But those who need to sell due to unforeseen financial reasons may be hit.

TDSR doesn't affect those whose income and spending are inline with their intended purchases

(sounds like defending the G ! )

 

 

Sweet spot defined by price alone is not necessary value for me. Location and size are important for me.

I agree with the writer especially on space and value.

there is something intrinsically valuable about space. Seen lots of nice places during year end parties. (usually my bosses or hubby's bosses).

Besides the nice décor, nice sized rooms and entertainment spaces.

 

Agree with reality- something has to give.

Its really sad to see internal space being cut .

 

Maybe developers should have more internal space and less communal facilities. Just a thought.

I can only agree to SSD (deter flipping/speculation) TDSR (advocate financial prudence) but not ABSD (just another tax ave to make ahgong richer).

Buy car pay COE, property also need to pay a certificate of entitlement to buy?

 

Yes, sweetspot in terms of price is never value for $, just an affordability range gauge for the masses.

With high psf at new launches, as always mention ... "go resale for better value"

 

 

(Maybe developers should have more internal space and less communal facilities)- Can't agree with this, i rather have just a decent living internal space and yet more communal facilities, which defines condo lifestyle living.

Condo of less internal space and still lacking communal facilities, better off to get a nice size hdb unit next or near to a public swimming pool or safra club, cheaper and best of both worlds, all the internal space one needs and just go nearby to enjoy the facilities

[Mercs]

find these projects a bit overpriced.

Yup, not near to MRT, in a HDB neighbourhood ... what's so special to command the high psf?

 

But heard psf sold lower than advertised guide price ;)

[Dafansu]

Yup, not near to MRT, in a HDB neighbourhood ... what's so special to command the high psf?

 

But heard psf sold lower than advertised guide price ;)

 

rental will be very very difficult for this place. I think the developers already know the sales volume will be bad based on the interest registered, if don't lower might turn up very bad in the press. 

[Mercs]

rental will be very very difficult for this place. I think the developers already know the sales volume will be bad based on the interest registered, if don't lower might turn up very bad in the press.

 

 

2 new launches within close proximity, totaling 1,600+ units though not sure how many units release for phase 1, both launch around same time, during the June school holiday month, not your typical new launch/buying season and at high psf.

 

So bearing in mind the above mentioned, if can even manage to sell 50%, i would deem that a very good result.

 

Edited June 4, 2018 by Mercs

[therock]

Folks are simply buying whatever falls into their budget. The 1 million pot that they have and there is a certain fear that they will miss out, plus a lack of investment opportunities, knowledge etc, so the simplest way is to plonk it into a property, even if it's much smaller than what they want to stay in..

[Mercs]

Chiong ah!

 

https://www.businesstimes.com.sg/real-estate/two-serangoon-condos-garner-healthy-first-weekend-sales

Two Serangoon condos garner healthy first-weekend sales

June 4, 2018

 

https://www.businesstimes.com.sg/companies-markets/112-phase-i-units-at-affinity-at-serangoon-sold

112 Phase I units at Affinity at Serangoon sold

June 4, 2018

 

AFFINITY at Serangoon, a development by a consortium led by mainboard-listed Oxley Holdings, has had 112 of the 300 units launched for Phase I sold over its official launch weekend (June 2-3) at an average price of S$1,575 per square foot (psf).

 

Of the units sold in Phase I, Oxley said that they were evenly spread out across all unit types, with Singapore citizens making up 80 per cent of all buyers and 20 per cent were Permanent Residents and foreigners.

[Mercs]

Yup, price war going on there, heard sales not so ideal, which is expected.

 

Anyway, for buyers there is really no hurry, many more new launches coming up, choices galore.

Record high psf ... Chiong ah!

 

https://sbr.com.sg/residential-property/news/home-buyers-ditched-costly-units-during-weekend-launches

Home buyers ditched costly units during weekend launches

June 4, 2018

 

During the weekend, four residential projects were launched concurrently as developers attempt to clear part of their inventories ahead of the one-month-long school vacation and a sizeable launch pipeline by competitors (14,000 units) over the next 6-12 months.

 

The sales take-up was mixed, with the better-located and better-priced projects (namely Margaret Ville and 120 Grange) achieving more decent take-up rates.

 

Only 120 Grange was able to breach a 50% take-up rate with 30-40 units sold (54-71% take-up). It is a freehold 56-unit high-end condominium along Grange Road owned/developed by Roxy-Pacific Holdings.

Average pricing is $3,000 psf ($2,980-$3,070 psf), which is relatively lower than nearby projects’ $3,200-$3,500 psf.

 

Margaret Ville, a government land tender site, sold 100-130 units (32-42% take-up).

Average price of $1,900 psf ($1,830-$1,980 psf), which is relatively higher than nearby projects’ $1,600-$1,800 psf.

 

Meanwhile, 110-140 units were sold (11-14% take-up) at Affinity At Serangoon (formerly Serangoon Ville).

Average pricing is $1,550 psf ($1,480-$1,580 psf), which is relatively higher than nearby projects’ $1,200-$1,400 psf.

 

There were 60-90 units sold (10-15% take-up) at The Garden Residences.

Average pricing is $1,750 psf ($1,680-$1,820 psf), which is relatively higher than nearby projects’ $1,200-1,400 psf.

 

Three out of the four projects achieved record-high pricing for their respective locations as developers continue to target a 15-20% PBT margin despite getting land at a competitive price.

"Similar to past launches, the smaller units with lower absolute price quantum continued to sell better, which suggests to us buyer profile is dominated by investors."

[Wt_know]

rental is not an issue

i think 8/10 buyers now are owner leh ... buy to stay/live

but again spore jin jui population meh?

or we reach 6.9M liao?

 

rental will be very very difficult for this place. I think the developers already know the sales volume will be bad based on the interest registered, if don't lower might turn up very bad in the press.

Edited June 4, 2018 by Wt_know

[retrozz]

rental is not an issue

i think 8/10 buyers now are owner leh ... buy to stay/live

but again spore jin jui population meh?

or we reach 6.9M liao?

 

 

Not surprised if some could be 1st owners too. The BTO are so hard to get for mature estates, might as well go for Queenstown. I think I tried so many BTO and BSF rounds and even with extra chances can not even get a number. So have to look for quick fixes because 10 years just flew by just like that. Maybe they should give priority to those in 30s. Once they reach 45, they are not young anymore lor. Edited June 4, 2018 by retrozz

[Sdf4786k]

As usual, developer play quantum sweetspot, with high psf something's gotta give, unit size just keeps shrinking .

400+sqft meant for 1 at most 2, can't really entertain guests, better do at clubhouse or poolside bbq.

 

Prior to enbloc fever, unsold supply all time low, with ongoing enblocs, more supply coming up.

Whether to be oversupply situation would be pending take up rate of all these enbloc new launches.

 

If SG property market fundamentals remains weak as per article, why then is CMs still in full force since 2009? (SSD/ ABSD/ TSDR)

Demand supply, without strong demand developers wouldn't go crazy bidding GLS/enbloc-ing at record prices, or who gonna buy all those units at high psf?

 

Land scare SG, landed is rare and to me will ALWAYS be a good bet and must be FH. Can pass down generations and when house is old, just do complete tear down rebuild to brand new, perceived value with psf against built-up area.

 

Whether if this writer makes sense- always 2 sides to the coin, half full or half empty? So depends how one looks at it ... how do you see it?

 

with the changing trend of people die die face value must have a condo, it may be the easiers access to a condo title deed for singles.

 

But looking at the barrier and the pay bracket as well as the appreciative cost of micro boxes, I highly doubt its good decision to buy anything less than 800 sqft if the budget permits.

 

Else just buy BTO and wait for your partner to join in the queue.

 

IF it was really true, the delta between a FH and a leasehold would at LEAST be commanding a price gap of X1.5 to X2 ? 

 

or maybe I am thinking in terms of glass vs diamond.

[therock]

IMO, it's hard to live in anything less than 800 sq ft for a couple. 500 for a single.

For a family unit, you need three bedroom and >1000 sq ft.. 

 

On the brighter side, smaller units mean less hoarding, less material possessions, and perhaps a lesser obsession with shopping and accumulating items..