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

[Mercs]

Sometimes, money just isn't everything

 

 

http://www.straitstimes.com/singapore/face-off-at-laguna-park

Face-off at Laguna Park over en bloc attempts

Nov 12, 2017

 

Retired advertising veteran Patrick Mowe, 80, does not want to sell his Laguna Park home in East Coast.

 

The apartment is spacious at 1,650 sq ft, and with Siglap MRT station right next to the estate soon to be completed, there are reasons why Mr Mowe wants to remain here for the rest of his life.

 

Mr Mowe, who moved in five years ago, has also been publishing electronic newsletters meant for the "anti-en bloc" group, promoting the beauty of their estate and why they should keep it.

 

"If I had to get another home after this, it will be half the size and cost just as much as the amount I would get from the en bloc. I will never be able to get a place like this again."

 

About a third of the estate's home owners are landlords who rent out their homes.

 

"Why should these 30 per cent of people decide whether we get to keep our homes or not when they don't even live here," he says.

 

With around 59 years left on the lease, Mr Mowe says he does not need to be too concerned about the depreciating asset. He does not have any children.

 

He says: "Value can still be preserved if we keep on upgrading our estate and build a better home, and not put these plans on hold because of en bloc possibility. Let's focus on living."

 

 

ON THE OTHER HAND...

 

"How do I tell my children I have allowed our home to age and depreciate?" asks pro-en bloc resident Sung Yoon Chon, 65.

 

The father of two wants the best for his children, both of whom are above 20. Says Mr Sung, a remisier: "A home is an asset to be protected."

 

The reserve price is currently set at $2.1 million, compared with the typical resale price of $1.4 million for a 1,650 sq ft apartment. This means Mr Sung stands to make $700,000 more in a collective sale than at any other time.

 

"Many people need this additional money to change their lives. One family here is counting on the en bloc sales to go for a medical treatment. Another can pay back their loans.

 

"I love this home, but the new home can be just as good or possibly better," says Mr Sung, who has lived there for around a decade.

 

Tales of rusted pipes, expensive repainting works and water leaking through the floor into other residents' homes have dominated recent meetings with the building management - signs that Laguna Park is ageing and ripe for redevelopment, he says.

 

But it takes a minority - 20 per cent of households - to block the aspirations of the majority. While Mr Sung believes they have a right to their opinions, he says there should not be any ugly spats or efforts to persuade others.

 

Laguna Park made headlines for a spate of vandalism incidents over selling en bloc in 2008.

 

Asked if he had considered the other party's reluctance to sell, Mr Sung says: "Having to move is uncomfortable, but change is part and parcel of life."

[Mercs]

Some things money just can't buy

 

 

http://www.straitstimes.com/singapore/housing/goodbye-to-sers-with-love-and-a-little-windfall

Goodbye to Sers with love... and a little windfall

Nov 12, 2017

 

(Going en bloc has its rewards but some feel a sense of displacement)

 

It has been nearly a decade since former Ang Mo Kio Avenue 3 resident Victor Spencer received a letter from the Housing Board telling him that his home has been picked for the Selective En Bloc Redevelopment Scheme (Sers).

 

He remembers the buzz among his neighbours - Sers meant a windfall for residents, so long as they vacated their homes and handed over the keys to the Government, which needed to redevelop the land.

 

While sales en bloc in the private sector displace the original communities built up over the years, Sers keeps them mostly intact, with many residents relocating to the same replacement build-to-order site offered by HDB.

 

But sentiment depends on who you speak to. Most younger home owners interviewed shared how the benefits of getting a new home with a fresh lease at a very favourable price under Sers outweighs feelings of loss for the old home.

 

Residents who lived at the same place for decades tend to be more averse to the idea of displacement.

 

 

NOSTALGIC VISITS BACK

 

Like many others, Mr Lau is upbeat about Sers - he was compensated $285,000 for a three-room flat that he bought for $145,000 nine years ago.

 

But he and his wife would sometimes head back to their old home to "drink the kopi" there.

 

Says Mr Lau: "I still see the same old faces in my new place, but some of the community spirit would definitely have rubbed off here and there."

 

Near the old JTC-built blocks at 167 to 172, Boon Lay Drive, which was marked for Sers in 2011, former residents can still be seen meeting at the hawker centre or food courts. Retired driver Loo Kim Tian, 60, who now lives in Jurong West Central, still walks to the old hawker centre daily despite the convenience of Jurong Point shopping mall next to his new home.

 

"A lot of people say the new place is beautiful, but I still prefer the old place because it is bigger and less noisy. I miss it a lot - I lived there for 40 years," says Mr Loo, who moved in this year.

 

Likewise, Mr Spencer, a former long-time resident of Ang Mo Kio Avenue 3, misses the days of football with his mates at the field there. They still meet in Bishan-Ang Mo Kio Park for football, but the father of two young daughters says the feeling is different.

 

"There were gains (with Sers), of course, because I didn't pay much for a new flat with a fresh lease. But at the end of the day, I lost the sense of rootedness, identity and context which I can't pass on to my daughters now," he says.

[therock]

Too little here, too many over there

http://www.straitstimes.com/asia/se-asia/malaysias-central-bank-warns-of-property-glut

 

 

Malaysia's central bank warned on Friday (Nov 17) that unsold residential properties are at their highest level in a decade, with the largest oversupply found in southern Johor state.

Bank Negara Malaysia (BNM) said the glut is caused by developers selling these units at above RM250,000 (S$81,500), beyond what most Malaysians could afford.

BNM on its website on Friday said there were 130,690 unsold units at the end of March this year, with 83 per cent priced at above RM250,000. It said 61 per cent of the unsold units were high-rise apartments.

"Supply-demand imbalances in the property market have increased since 2015. Unsold residential properties are at a decade high, with the majority of unsold units being in the above RM250,000 price category," the central bank said.

 

[kdash]

Too little here, too many over there

http://www.straitstimes.com/asia/se-asia/malaysias-central-bank-warns-of-property-glut

 

property glut mainly in Johor state... are the developers aiming for the SG market? 

[therock]

There's always someone who is priced out of the local and fancies he has a shot making a few bucks over there. Some do and some get burnt badly..

[Showster]

property glut mainly in Johor state... are the developers aiming for the SG market?

It’s probably a retirement outlet.

 

Imagine just 80K, less than the cost of a car here.

 

But must be able to adapt to lifestyle up north.

[Wt_know]

glut is good ... more glut please

when a 5000sqft landed in johor drop to sgd$200k

mcfers all can full cash liao ... huat ah!!!

Edited November 18, 2017 by Wt_know

[Matrix0405]

new condo launches Bukit Batok $1200psf, SK $1200psf, Yishun $1400psf; price are really high. Why (prices for) HDB are dropping and condo are rising?  Did Bukit Batok condo finish selling at $1200psf?   

[Dafansu]

new condo launches Bukit Batok $1200psf, SK $1200psf, Yishun $1400psf; price are really high. Why (prices for) HDB are dropping and condo are rising?  Did Bukit Batok condo finish selling at $1200psf?   

 

many ECs completed and these are upgraders, especially those in Punggol, Sengkang, Sembwang, Yishun, HDB pricing for these areas will continue on a down-trend. 

[Showster]

new condo launches Bukit Batok $1200psf, SK $1200psf, Yishun $1400psf; price are really high. Why (prices for) HDB are dropping and condo are rising? Did Bukit Batok condo finish selling at $1200psf?

The trend has been noted for some time but the values only started to move these couple of quarters.

[Wt_know]

it's ok ... $1200 $1400 $1500psf

peasant like me can continue to stay in cck hdb until SERS ...

pack and go JB ... hearsay got property glut ... huat ah!

wise man advise don't grumble

do something ... pack and go ... MTL

 

new condo launches Bukit Batok $1200psf, SK $1200psf, Yishun $1400psf; price are really high. Why (prices for) HDB are dropping and condo are rising?  Did Bukit Batok condo finish selling at $1200psf?   

 

Edited November 18, 2017 by Wt_know

[Showster]

Firstly, SERS is no longer a guarantee and is not sustainable. If 4rm flat and above, can forget about SERS literally.

 

Secondly, if can afford to drive in SG, the term peasant is not quite applicable.

 

Thirdly, if one chooses the risk-free method to live, then a risk-free live is guaranteed. Or to take some moderated risks and plan for a better outcome? Look around at the outcomes based on what your relatives in their 60s. No one can force us to take up any method.

 

it's ok ... $1200 $1400 $1500psf

peasant like me can continue to stay in cck hdb until SERS ...

pack and go JB ... hearsay got property glut ... huat ah!

wise man advise don't grumble

do something ... pack and go ... MTL

 

[Agent008]

new condo launches Bukit Batok $1200psf, SK $1200psf, Yishun $1400psf; price are really high. Why (prices for) HDB are dropping and condo are rising?  Did Bukit Batok condo finish selling at $1200psf?   

 

These are mixed developments except for SK Parc Botania. 

[Mercs]

https://www.edgeprop.sg/property-news/prime-district-condos-are-bestsellers-october

Prime district condos are bestsellers in October

Nov 19, 2017

[Mercs]

Enbloc fever

 

 

Reserve price $265 million, sold $311 million.

 

"Each owner stands to collect a gross sale price of around $1.7 million to $2.89 million once the deal goes through successfully."

 

Huat ah!

 

http://www.straitstimes.com/business/property/mayfair-gardens-sold-en-bloc-to-oxley-holdings-for-311m

Mayfair Gardens sold en bloc to Oxley Holdings for $311m

Nov 20, 2017

[Mercs]

https://www.srx.com.sg/singapore-property-news/43102/property-optimism-unfazed-by-govt-caution-consultant

Property optimism unfazed by govt caution

Nov 16, 2017

 

Their optimism stems from another month of strong sales by developers in October, where buyers were seen picking up units mostly in already launched projects.

 

"As unsold inventory in launched projects reduce, and as prices recover, the market is turning in favour of developers."

 

Rather, what may keep sales moderate in the near term is the fact that many of the more affordable private residential projects have been sold out or are substantially sold down, and some developers are choosing to stay "low-key" for their new launches.

 

"Most buyers today are discerning but the demand is positive simply because people have earlier held back their purchase decision not knowing how long more the market would soften."

[Mercs]

http://sbr.com.sg/residential-property/news/residential-sales-in-singapore-rise-almost-seven-fold-in-9m2017

Residential sales in Singapore rise almost seven-fold in 9M2017

Nov 16, 2017

 

This accounts for 37% of the country’s total investment volumes.

 

Acquisitions of residential buildings in Singapore rose almost seven fold to $4.6b in the first nine months of 2017.

 

Shortage of government land sales have caused consumers to turn to en-bloc transactions or sales wherein a single purchaser buys out all apartment owners in a single building.

[Mercs]

http://sbr.com.sg/commercial-property/in-focus/competition-heats-foreigners-bid-slice-singapores-property-pie

Competition heats up as foreigners bid for a slice of Singapore's property pie

Nov 16, 2017

 

The average number of bids per tender has been on the rise since 2014.

 

Competition for land is rising in Singapore as the average number of bids per tender has risen from eight in 2014 to 13 in 2017.

 

The increased presence of new foreign players in land tenders whose motivations go beyond profit margins – they seek to “plant their flag” in Singapore as well as deploy their internal excess capital and resources – has also resulted in land prices remaining elevated.

 

Tender prices for land sites that were awarded in 1H2017 have surprised investors, with a number of record bids for selected residential and mixed-use-cum residential sites that exceeded $1b and topped consultants’ estimates.

 

There could be an undersupply situation.

 

The contraction of supply in the market has reduced the absorption rate, or the number of years to sell all unsold inventory, from a high of five years to 2.1 years as at 1Q17.

 

The low absorption rate raises a potential near-term undersupply issue against current transaction levels.