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

[BanCoe]

Most likely the developer might even dig up the ground floor to make it into a garage ;as it lacks a car park lot (seems the other neighbours have done it) As such a nice house without your own parking is no value; Direct developer already got the ideas to cut corners and maximise as its in their blood as compared to individual buyer doing by himself    

Asking $1.7 mil ... sold $2.23m ... in 12 minutes!

Huat ah!

https://www.edgeprop.sg/property-news/house-linked-mysterious-deaths-put-auction-17-mil-19-mil
House linked to mysterious deaths put up for auction at $1.7 mil to $1.9 mil

http://www.businesstimes.com.sg/real-estate/sold-in-12-minutes-house-where-skeletal-remains-were-found-sells-for-223m
Sold in 12 minutes: House where skeletal remains were found sells for $2.23m
Feb 27, 2018

 

[Icedbs]

The buyer is a developer, if he spends 500k (cost) to rebuild the house, hos total cost should be close to 2.9m all in. He can sell it at least for 3.3mil in very neat future. Why not.

 

Hope so....

 

I know this place quite well cos I helped a buyer buy a 3-storey unit at that area  last year.

 

Just 6 months ago, most single storey terraces there were sold at $1000-$1100psf. 

 

This unit, at 2.23m was sold at nearly $1297 psf. 

 

That's almost 20% more

 

And with the past history, I would expect it to be sold at 6 months ago valuation at best. I think this is also why the auctioneer is expecting 1.7m-1.9m, but it close at 2.23m.

 

The person who bought it seems to be a developer so perhaps they know how to find the necessary cost savings to offset the higher price that they bought.

[Ct3833]

Hope so....

 

I know this place quite well cos I helped a buyer buy a 3-storey unit at that area last year.

 

Just 6 months ago, most single storey terraces there were sold at $1000-$1100psf.

 

This unit, at 2.23m was sold at nearly $1297 psf.

 

That's almost 20% more

 

And with the past history, I would expect it to be sold at 6 months ago valuation at best. I think this is also why the auctioneer is expecting 1.7m-1.9m, but it close at 2.23m.

 

The person who bought it seems to be a developer so perhaps they know how to find the necessary cost savings to offset the higher price that they bought.

He is a developer himself, so his reconstruction cost wouldnt be as high as those individual buyers who go for rebuilding. Yes that area may not be the most ideal location. Moreover that unit is located at an elevated ground from the front gate, owner's car could not be parked at the same level as the living room when the car is parked behind the front gate.

 

Price wise, no one is selling land price these days anymore, wven a lousiest rundown house would be asking for quite a lot higher than $1000 psf. Unless one can afford 3000sqft and above type of land size.

Edited February 27, 2018 by Ct3833

[Mercs]

Given the scarcity of new home, if a developer steps in, and make it new, he takes the stress off the buyer of rebuilding..

 

The actual location is near to a hawker centre, some provision shops, facing the main road, but on elevated ground. Not too bad. But if it hits 3million, with a land area of 1720, it will be around 1700 psf... not so cheap if you only look at the land, but if the GFA is high, then you can yield a 3 storey home, and maybe a basement.

If you divide it by the built up area, it's not that bad...

Most likely the developer might even dig up the ground floor to make it into a garage ;as it lacks a car park lot (seems the other neighbours have done it) As such a nice house without your own parking is no value; Direct developer already got the ideas to cut corners and maximise as its in their blood as compared to individual buyer doing by himself

The buyer is a developer? Or investor? Article state sold to a local contractor with intention to rebuild, rent out and only sell some years later.

 

It was sold on Tuesday (Feb 27) for $2.23 million to a local contractor.

 

Records from the Accounting and Corporate Regulatory Authority showed that Mr Goh owns construction company G & C General Contractors and lives in a landed house near Holland Road.

 

The 70-year-old told reporters after the auction that he will tear down the old house and build a new one. "I plan to rent it out first and sell it after five years."

[Dafansu]

The buyer is a developer? Or investor? Article state sold to a local contractor with intention to rebuild, rent out and only sell some years later.

 

 

Boss of GC. rebuild cost should be low for him

 

https://gcgroups.com

[Mercs]

Boss of GC. rebuild cost should be low for him

 

https://gcgroups.com

Thanks for the update.

 

Yeah, contractor to rebuild, maybe few hundred K can settle.

 

[Mercs]

And we have yet another record land bid ... "All time RECORD price EC land sales"

 

https://www.edgeprop.sg/property-news/cdl-and-tid-submits-record-bid-583-psf-ppr-sumang-walk-ec-site

CDL and TID submits record bid of $583 psf ppr for Sumang Walk EC site

Wow, staggering numbers! In summary ...

 

ALL 17 offers at RECORD price

64% higher than year 2016 top bid

Breakeven cost alone already $1000 psf

 

I think the era of EC selling at $800psf gonna be a thing of the past

 

Huat ah!

 

http://www.straitstimes.com/business/property/all-17-bids-for-punggol-site-surpass-ec-record

All 17 bids for Punggol site surpass EC record

Feb 28, 2018

 

All 17 offers surpassed the previous record price for EC land set in July 2013 for the Lake Life site in Tao Ching Road near Jurong Lake

 

the top bid was "stunning", "way above market expectations". It was also 64 per cent higher than the top bid of $355 psf ppr for the Anchorvale Lane site in August 2016, which was the last EC tender.

 

"The absence of an EC land tender for one and a half years... and a rising private residential market are contributors to the bullish outlook for the EC market among bidders."

 

Last year, developers sold 4,011 EC units, estimates CDL and TID's break-even cost at close to $1,000 psf - above recent new EC transactions in the area.

[Wt_know]

if EC also no $1000 psf no talk ...

private huat until siao ar! buy buy buy ... mai tu liao!

don't miss the boat sampan ...

 

Wow, staggering numbers! In summary ...
ALL 17 offers at RECORD price
64% higher than year 2016 top bid
Breakeven cost alone already $1000 psf

 

Edited February 28, 2018 by Wt_know

[Showster]

If a construction company buys for 2.23 mil and builds for say 300K, (plus BSD and ABSD taxes of 15-19%?), how much do we think it will be sold for at the end?

 

if EC also no $1000 psf no talk ...

private huat until siao ar! buy buy buy ... mai tu liao!

don't miss the boat sampan ...

 

It's not no $1000PSF no talk for EC.

 

It's BREAKEVEN cost already above $1,000PSF for Punggol EC.

Edited February 28, 2018 by Showster

[Banz86]

When I saw that report on EdgeProp, I immediately laughed. For an EC at in Punggol to cross 1000 PSF would be damn crazy. You can buy some older but larger private condos for cheaper.

[grandis123]

The buyer is a developer, if he spends 500k (cost) to rebuild the house, hos total cost should be close to 2.9m all in. He can sell it at least for 3.3mil in very neat future. Why not.

500k to rebuild not possible lar.

Architect, Engineering and submission fees about 100k liao.

if the house needs piling another <100k 

i would say 800-900k

Given the scarcity of new home, if a developer steps in, and make it new, he takes the stress off the buyer of rebuilding..

The actual location is near to a hawker centre, some provision shops, facing the main road, but on elevated ground. Not too bad. But if it hits 3million, with a land area of 1720, it will be around 1700 psf... not so cheap if you only look at the land, but if the GFA is high, then you can yield a 3 storey home, and maybe a basement.

If you divide it by the built up area, it's not that bad... 

 

That house can build a basement. you cant build 2.5 storeys I think. At the top floor can see seletar reservoir.

I viewed one of the corner terrace house last time and ask the owner and then the neigbours if they know who the owner of this 1720 sqft house. The neigbours who stayed here for many years told me that they have not seen the 2 woman for many years and government agency also trying to contact them.

[Ct3833]

500k to rebuild not possible lar.

Architect, Engineering and submission fees about 100k liao.

if the house needs piling another <100k

i would say 800-900k

 

 

That house can build a basement. you cant build 2.5 storeys I think. At the top floor can see seletar reservoir.

I viewed one of the corner terrace house last time and ask the owner and then the neigbours if they know who the owner of this 1720 sqft house. The neigbours who stayed here for many years told me that they have not seen the 2 woman for many years and government agency also trying to contact them.

He owns a company that does all these things, so his cost should be lower.

[Showster]

You can find the advert but whether you can really find the seller remains debatable.

 

When I saw that report on EdgeProp, I immediately laughed. For an EC at in Punggol to cross 1000 PSF would be damn crazy. You can buy some older but larger private condos for cheaper.

 

[Mercs]

if EC also no $1000 psf no talk ...

private huat until siao ar! buy buy buy ... mai tu liao!

don't miss the boat sampan ...

Breakeven around $1000-1100psf, for developer to achieve just a low 10% return profit, gotta sell at least $1200psf, which would then set new benchmark pricing not just for EC, but PTE as well.

With all the current enbloc fever premium bids/record land bids, can expect more unbelievable aka crazy selling psf prices soon.

 

I'd be very surprised if this such pricing for EC can also sell well. But then, expensive today cheap tomorrow ... so never say never!

 

Like i've said ... 2018 gonna be exciting!

[therock]

https://www.todayonline.com/singapore/development-charges-rise-sharply-non-landed-homes-amid-en-bloc-fever

 

I don't really think this is a dampener.. 

 

 

Developers are facing a double whammy, having been affected by last week’s Budget announcement of an increase in the top marginal Buyer’s Stamp Duty (BSD) rate.

On Wednesday (Feb 28), the Ministry of National Development issued the new development charge (DC) rates following a half-yearly review in consultation with the Chief Valuer.

The rates for non-landed residential developments will increase for a vast majority of areas across the island, ranging from 12 per cent to 38 per cent. The average hike of 22.8 per cent is the highest since September 2007 when DC rates rose by 57.8 per cent. The latest increases come on the back of a 13.8-per-cent average spike between September last year and this month.

The DC rates rose the highest in areas where developers have lodged high bids for sites released under the government land sales (GLS) programme, property analysts noted.

For example, the development charges rose sharpest in sector 19 which includes River Valley Road, Kim Seng Road and Jiak Kim Street. Notable recent transactions in the area include the government’s sale of the former Zouk site at Jiak Kim Street which received a top bid of S$955.4 million.

The latest round of DC rate increases for non-landed residential properties is likely to “shake” the collective sales market, said Mr Alan Cheong, a senior director at property research and consultancy Savills.

“The reason behind the revisions are due to the record transactions done recently. We have to watch the deals going forward,” said Mr Cheong, who noted the impact of the two consecutive rounds of significant DC rates hike on developers.

ZACD group executive director Nicholas Mak agreed it would slightly dampen the en bloc sale fever. “As expected, the government increased the DC rates for non-landed residential development in view of the bullish land prices paid by developers in the last six months,” he said.

Mr Mak noted that most developers which have yet to lock in the DC rates for acquired land parcels will be affected. An example is City Towers, a 17-storey freehold development along Bukit Timah Road which was sold for S$401.9 million in an en bloc sale earlier this month. Its buyer will see its development charges go up by 29.6 per cent, from S$3.5 million to about S$4.5 million, Mr Mak said.

The increase in DC rates comes shortly after the Government raised the top marginal BSD on February 19, he noted. “It is a bit of a double whammy but it is not so critical (to the extent) that developers will walk away from the deals. One way developers can pay less (development) charges is to lower their offer price to buy the land from the enbloc sales owners,” he said.

He added: “As a result, the escalation in land prices could slow down.”

The experts noted that the impact could be greater on 99-year leasehold sites which have been put up for en bloc sale, given that developers would need to fork out more money to top up the leases. “As a result, some developers would offer lower prices to acquire the older 99-year leasehold properties,” Mr Mak said.

However, Cushman & Wakefield head of Singapore research Christine Li disagreed that the collective sale market could be adversely affected. “We are of the view that the impact… is unlikely to dampen the current collective sales fever given the huge war chest of capital (developers) have built up over the past years,” she said. She expects the total value of land acquisitions this year to reach S$16 billion, slightly higher than last year’s S$15.9 billion.

 

[Sdf4786k]

If interest jumps to 3.5% and govt decides to remove ABSD, I am sure they would have assessed the market condition such that lifting of CM would not cause prices to rise. Otherwise it would make them look stupid. Make sense? 

 

Those early years and the changes to the influx of foreigners and working environment has an impact.

 

Those that come here to rent a condo use to have quite a fair bit of perks for housing allowance. Now its expat plus. Means they come here and after 3rd year, there is a reduction of allowance. And on the 5 year, there is no allowance and they become local.

 

So the game is to exit Singapore , no matter how much they love the place and work in another place for 3 years and come back / transfer back.

 

Some were not so fortunate and did not manage to get a "Special" Pass.

 

Prices rising is never an issue unless it gets so expensive that even HDB is under pressure to raise prices. If prices drop, even if you dont intent to sell your one and only home, the Buay Song conscience is going to be an issue every 5 years.

 

So, while it logical what you mentioned, the FED raising rates is global scenario and not something that can be easily suppressed. 

[Volvobrick]

http://www.straitstimes.com/business/property/sentosa-cove-penthouse-sold-at-s24m-loss

Lai lai lai - lelong lelong!

  Sentosa Cove penthouse sold at S$2.4m loss

Published

1 hour ago

 

SINGAPORE - A two-level penthouse located on the sixth-storey of The Berth by the Cove, has been sold for S$3.25 million, or S$1,105 per sq ft (psf), at Edmund Tie & Company's auction on Feb 28 - albeit at almost half its original value.

The property received a total of five bids. The last owner had purchased the unit for S$5.64 million, or S$1,919 psf in 2011, translating to a loss of about S$2.4 million, or 42 per cent.

This transaction is the first auction sale of a Sentosa Cove property this year. It is a mortgagee sale, which means it is a sale put up by the lender, usually because the borrower has difficulty servicing the mortgage.

According to the real-estate consulting firm, this is the fourth Sentosa Cove property since 2017 to be sold for almost 50 per cent of its initial purchase price.

In January this year, a unit in Sentosa Cove's Turquoise was sold for S$3.59 million, 43 per cent lower than its last purchase price of S$6.29 million.

Similarly in March 2017, an apartment in Marina Collection was sold for S$3 million, or a 42 per cent discount, while a Seascape unit was sold at S$6.2 million in February last year, representing a loss of 51 per cent from its original value of S$12.8 million.

Said the firm's head of auction and sales Joy Tan: "Mortgagee sale units along this stretch of Sentosa Cove are hard to come by, given its healthy rental and resale transactions. The auctioned price of S$1,105 psf is very reasonable."

Indeed, the four-bedroom unit at The Berth by the Cove has a floor area of about 2,939 sq ft, and unblocked views of the marina, as well as the landed enclaves of Paradise Island and Coral Island.

It comes with a double-volume ceiling in the living area, private lift access, and a private spa pool which is en suite to the master bedroom. Located along Sentosa's coastline, this condominium is also one of the few developments on the island which offers residents 25 berths for their private yachts.

Added Ms Tan: "Sentosa Cove properties are on the upward swing this past year, and we still see ready buyers looking to invest in good buys on the island. We expect another five units to be placed for auction for the rest of the year."

The next auction by Edmund Tie & Company will be on March 21.

 

[Agent008]

Price of EC will surely go up due to limited supply. 

 

Price of HDB also likely to go up having gone down for a few years.

 

Price of other private properties may remain the same/drop due to an increased supply of private homes and added cooling measures.