Mercs: property news & updates

[13177]

6 hours ago, Rskc said:

I know of someone who bought pinnacle resale at 1m, mid high level, just few years back. Then pp said "siao", 1m for hdb. But today the new owners probably already sitting on profit cos they can probably now sell at 1.2m comfortably since latest highest is at 1.4m.

For the 1.4m, from a financial point of view, if one day, the owner decides to rent out @ today's rent of say at constant $3500 (realistically should raise with inflation), he only needs 30 years to recoup it since there should be no lack of tenants for that area, and also bearing in mind that it still has ~80 years lease to go. 

Nearby Tanjong pagar plaza, 46 year old hdb 3rm hdb is renting out at ~$2.5k per month in today's price.

Just putting myself in their shoes as it was mind bobbling to me too but it seems logical after putting the numbers together.

In this case i go buy the 46 year old 3 rm at tanjong pagar plaza since there should also no lack of tenants and can rent out at $2.5k per month not bad. I guess the 46 year old 3 rm should sell around $400k plus?

[13177]

22 minutes ago, Mercs said:

At age 50s, probably not ideal to stretch with loan, as much as possible full cash purchase, keep cpf to fund retirement, buy within means. At this age everything start to slow, earning power may drop, ideally should have already achieved financial independence and be debt free, unless it's buying 2nd property invest this different ballgame, tenant rental to service loan not out of pocket.

When at age 50 still buy house, like you said either buying a 2nd property or get a brand new BTO where the price is lower and even loan also easier to manage. If buy another resale hdb with another loan, then maybe need to think twice?

[Rskc]

9 hours ago, 13177 said:

In this case i go buy the 46 year old 3 rm at tanjong pagar plaza since there should also no lack of tenants and can rent out at $2.5k per month not bad. I guess the 46 year old 3 rm should sell around $400k plus?

Ya, based on propertyguru transacted prices, looks like mid $400+k. Transacted rental is abt $2000 to $2500 depending on size. Think there are a few sizes. 

 

[Mercs]

23 hours ago, 13177 said:

When at age 50 still buy house, like you said either buying a 2nd property or get a brand new BTO where the price is lower and even loan also easier to manage. If buy another resale hdb with another loan, then maybe need to think twice?

If need to take loan, can consider shorter tenure with fixed IR, hopefully not be still servicing loans well into retirement age.

 

https://www.channelnewsasia.com/commentary/how-to-achieve-retirement-adequacy-income-old-age-894001

Commentary: Still paying off your housing loan at 65? Five rules to a happy retirement

 

"Guess how many seniors are still paying off their housing loan? 

Hard to imagine isn’t it?

But according to a Credit Bureau Singapore study in 2014, the number of Singaporeans aged 65 and above still servicing outstanding mortgage loans numbered over 15,000 – triple the figure in 2008.

It’s harder to imagine how these seniors will achieve retirement adequacy. Nearly three in 10 Singaporeans expect a lot less income in retirement than they do today, according to a 2015 Global Ageing Institute study"

 

 

[Mercs]

23 hours ago, 13177 said:

In this case i go buy the 46 year old 3 rm at tanjong pagar plaza since there should also no lack of tenants and can rent out at $2.5k per month not bad. I guess the 46 year old 3 rm should sell around $400k plus?

GVGT

 

 

 

[Mercs]

On 4/2/2022 at 12:01 AM, Mercs said:

Could be single or couple any origin, current rental market is very strong, lots of demand with reasonably 'good' yield, on top of future captial $$$ appreciation 😉

 

 

2B2B 1.05mil rental 3.5k  ... kym?

 

 

 

[Mercs]

https://www.propertyguru.com.sg/property-management-news/2022/4/204354/private-home-hdb-resale-prices-up-in-q1-2022-north-gaia-to-open-for-preview-e-applications-on-thursday-and-more

Private home, HDB resale prices up in Q1 2022, North Gaia to open for preview, e-applications on Thursday and more

 

https://sbr.com.sg/residential-property/news/property-market-in-singapore-remains-in-balance-rhb

Property market in Singapore remains ‘in balance’

(The boost from the economy’s reopening is offset by the risks from the Russia-Ukraine conflict)

 

https://www.straitstimes.com/singapore/courts-crime/at-least-10-property-agents-were-victims-of-impersonation-in-rental-scam

At least 10 property agents were victims of impersonation in rental scam

https://www.straitstimes.com/business/property/family-of-scion-of-singapore-pioneer-khoo-kay-hian-selling-gcb-for-over-35-million

Family of scion of Singapore pioneer Khoo Kay Hian selling GCB for over $35 million

https://www.straitstimes.com/business/property/international-plaza-in-tanjong-pagar-relaunched-for-collective-sale-at-27b

International Plaza in Tanjong Pagar relaunched for collective sale at $2.7b

 

https://www.99.co/singapore/insider/renovation-contractor-scams-sex-facebook/

Renovation contractor embroiled in multiple scams, accused of sex scam on Facebook

https://www.99.co/singapore/insider/buy-ec-more-attractive-post-cooling-measures/

Why it’s more attractive to buy an EC post cooling measures

 

https://www.channelnewsasia.com/singapore/rental-housing-racism-discrimination-tenants-minority-survey-2601326

Most landlords prefer to rent to tenants of the same race: CNA-IPS survey

 

https://stackedhomes.com/editorial/i-invested-19000-sgd-on-virtual-lands-in-the-metaverse-heres-my-experience/

https://stackedhomes.com/editorial/touring-the-luxurie-a-rather-upscale-condo-in-sengkang-thats-well-located/

 

https://www.homeanddecor.com.sg/gallery/house-tour-minimalist-v2-1/

House Tour: Minimalist V2.1

(This home is the epitome of a modern minimalist set-up, thanks to the concealed storage and a determined homeowner)

 

 

[Mercs]

https://www.insider.com/singapore-last-traditional-village-kampong-lorong-buangkok-photos-real-estate-2022-3

Singapore's last traditional village sits on a plot of land worth as much as $70 million. Real-estate agents are lining up to throw in their bids — but it's not for sale

 

https://www.edgeprop.sg/property-news/commentary-can-you-still-get-anything-1-million

COMMENTARY: Can you still get anything for $1 million?

https://www.edgeprop.sg/property-news/singapore-property-investment-sales-maintain-‘encouraging-pace’-1q2022-knight-frank

Singapore property investment sales maintain ‘encouraging pace’ in 1Q2022

 

https://www.businesstimes.com.sg/real-estate/could-there-soon-be-a-wave-of-hotel-conversions-into-condominiums

Could there soon be a wave of hotel conversions into condominiums?

(As conditions for the hospitality industry are likely to be rough over the next few years, some hotel owners here may potentially convert their hotels to other uses)

https://www.businesstimes.com.sg/real-estate/historic-national-aerated-water-building-on-sale-for-s189m

Historic National Aerated Water Building on sale for S$18.9m

 

https://www.asiaone.com/money/buying-hdb-resale-flat-2022-how-much-do-you-need-be-earning

Buying an HDB resale flat in 2022: How much do you need to be earning?

https://www.99.co/singapore/insider/stacks-avoid-hdb-bto-flat-selection/

Which stacks should you avoid for your HDB BTO flat selection?

 

 

 

 

[Mercs]

On 4/3/2022 at 9:58 PM, Mercs said:

For most common folks property is the one and only most expensive purchase in their lifetime,  buy hdb with intent to stay for life, imagine young couples 20s 30s buying 50yr old hdb, when in 70s 80s lease finish value drop to nil, risky and scary thought, long lease the more of importance, at least cover till age 95 as per recommended by hdb. Ideally, require a 2nd backup property.

 

 

 

 

 

[Volvobrick]

On 4/4/2022 at 10:01 PM, Mercs said:

If need to take loan, can consider shorter tenure with fixed IR, hopefully not be still servicing loans well into retirement age.

 

https://www.channelnewsasia.com/commentary/how-to-achieve-retirement-adequacy-income-old-age-894001

Commentary: Still paying off your housing loan at 65? Five rules to a happy retirement

 

"Guess how many seniors are still paying off their housing loan? 

Hard to imagine isn’t it?

But according to a Credit Bureau Singapore study in 2014, the number of Singaporeans aged 65 and above still servicing outstanding mortgage loans numbered over 15,000 – triple the figure in 2008.

It’s harder to imagine how these seniors will achieve retirement adequacy. Nearly three in 10 Singaporeans expect a lot less income in retirement than they do today, according to a 2015 Global Ageing Institute study"

 

 

Depends if they have CPF/cash/investments worth more than their outstanding loans or not. eg taking equity loans on their (fully paid) properties to refund back to CPF to enjoy the higher interests.  It's free money in this case.

 

[Mercs]

19 hours ago, Volvobrick said:

Depends if they have CPF/cash/investments worth more than their outstanding loans or not. eg taking equity loans on their (fully paid) properties to refund back to CPF to enjoy the higher interests.  It's free money in this case.

 

Agreed, not everyone take loan cos they have to, some want to aka 'use other ppl's money (bank) to make more money'

eg: cash/ investments - generate yield higher than bank int / keep CPF - earn higher int against bank lower int / equity loan refund cpf free money, fully paid properties most likely rented out, the rental can also use to service loan not out of pocket etc.

 

https://www.99.co/singapore/insider/opportunity-costs-using-cpf-finance-home-loan/

Opportunity costs of using your CPF to finance your home loan

 

On 4/2/2022 at 8:12 PM, Mercs said:

"With current low interest rate (1+%), those taking loan should work it to their best advantage, as much as possible use only CA$H to service loan and keep cpf funds (2.5%), until a time when IR do go above 3%, can consider to then activate cpf funds for partial repayment to reduce loan interest."

Edited April 6, 2022 by Mercs

[Mercs]

https://www.straitstimes.com/singapore/courts-crime/co-founder-of-a-property-agency-charged-over-his-role-in-building-illegal-floor

Co-founder of property agency charged over his role in building illegal floor

https://www.channelnewsasia.com/singapore/unlicensed-ktv-outlets-private-residential-properties-police-enforcement-2609136

Unlicensed 'KTV-concept' outlets at private landed properties found during enforcement operations: Police

 

https://www.straitstimes.com/singapore/courts-crime/4-property-owners-fined-for-changing-use-of-parking-areas-scdf-says-approval-needed-for-such-change

4 property owners fined in 2021 for changing use of parking areas; SCDF says approval needed

https://www.straitstimes.com/singapore/housing/3-decades-old-schools-in-balestier-and-queenstown-to-be-demolished-for-housing

Balestier, Queenstown school sites earmarked for housing

 

https://www.99.co/singapore/insider/selling-condo-before-top-sub-sale-ssd/

Selling your condo before TOP? Here’s what you should know about sub-sale and SSD

 

https://stackedhomes.com/editorial/the-most-expensive-hdb-is-now-1-39-million-heres-why-it-doesnt-matter/

 

https://www.homeanddecor.com.sg/gallery/house-tour-farmhouse-meets-victorian-meets-minimalism-in-this-punggol-flat/

House Tour: Farmhouse meets Victorian meets minimalism in this Punggol flat

 

[Mercs]

On 4/2/2022 at 12:01 AM, Mercs said:

current rental market is very strong, lots of demand with reasonably 'good' yield, on top of future capital $$$ appreciation 😉

 

 

On 4/1/2022 at 11:52 PM, Mercs said:

"If you got any friend/colleague looking to buy/rent you go ask them and they'll tell u - realistically, not much choices in the current market"

https://www.asiaone.com/china/home-rents-singapore-expats-climb-fastest-pace-decade

Home rents for Singapore expats climb at fastest pace in a decade

 

“There is currently very high demand for rental properties due to a confluence of factors: locals turning to the rental market due to construction delays and the influx of foreigners,” “As such, landlords can be expected to have greater bargaining power and ask for higher rents.”

“It is definitely a landlords’ market. They are now being picky on tenants’ profile, length of stay and are not willing to entertain haggling by potential tenants,”

Several tenants have found to their dismay that if they do not accede to the asking rent fast the flats are quickly snapped up, “We had cases where tenants lost out after seven bidding attempts. The average is three failed biddings before they decide to take the next unit without bargaining.”

 

On 4/2/2022 at 8:12 PM, Mercs said:

"In the context of our property prices which is suppose to double up every couple decades or so..."

https://www.asiaone.com/money/are-executive-condominiums-better-investment-now-new-cooling-measures

 

 

[13177]

 

https://www.straitstimes.com/singapore/housing/3-decades-old-schools-in-balestier-and-queenstown-to-be-demolished-for-housing

Balestier, Queenstown school sites earmarked for housing
 

Cannot read this article cause not a subscriber. Would curious to know which school site they are clearing?!  😂

[Mercs]

8 minutes ago, 13177 said:

 

https://www.straitstimes.com/singapore/housing/3-decades-old-schools-in-balestier-and-queenstown-to-be-demolished-for-housing

Balestier, Queenstown school sites earmarked for housing
 

Cannot read this article cause not a subscriber. Would curious to know which school site they are clearing?!  😂

Here u go 😉

 

SINGAPORE - Three school campuses in Balestier and Queenstown that are decades old will soon make way for housing developments, with the Housing Board (HDB) in the midst of awarding demolition tenders.

The Balestier site to be cleared, 90 and 92 Jalan Rajah, is about 22,400 sq m - roughly three football fields - and currently houses the Singapore campus of Australia’s Curtin University.

The other two sites are the former Mei Chin Secondary School at 1 Mei Chin Road and former Mei Chin Primary School at 3 Mei Chin Road. Both were officially opened in 1977.

These two campuses - last used as temporary housing for migrant workers during the Covid-19 pandemic - are zoned under one plot in the Urban Redevelopment Authority (URA) masterplan. The plot is about 35,000 sq m, the equivalent of about five football fields.

The Balestier site housed schools even before Singapore's independence, first serving two schools - Kim Keat Integrated School when it opened in June 1963, alongside Kim Keat Vocational School, which opened shortly after in June 1965.

The buildings also concurrently housed the Institute of Technical Education and the 1st Singapore Civil Defence Force Division Headquarters, prior to Curtin Singapore taking over in 2008.

A university spokesman said its current lease expires in mid-2022 and it will move to The Alpha building in Science Park 2. A statement on the university's website said the move will take place by the end of April.

Both the Balestier and Queenstown plots have been zoned "residential (subject to detailed planning)" under the URA masterplan - which guides Singapore's development over the next 10 to 15 years - since 2019.

Asked whether the future developments will be private or public housing, or when demolition will begin, HDB said plans will be announced when they are ready.

If the sites are for private housing, they will likely be sold to developers via the biannual Government Land Sales process.

Mr Nicholas Mak, head of research and consultancy at ERA Realty, said that while the HDB's involvement in awarding the demolition tenders does not guarantee the sites will be used for public housing, existing developments surrounding both sites - largely HDB flats - suggest that the new projects will also be public flats.

If so, he expects Build-To-Order (BTO) flats in the Queenstown plot to be especially popular, given that its straight-line distance from Queenstown MRT station is about 400m.

The area is among several mature estates that have seen resale HDB flats fetching beyond $1 million.

As for the Balestier site, which is about 1.3km from Toa Payoh MRT station, Mr Mak said it will be popular with buyers if it is well served by public buses.

If the plots are part of future BTO launches, Mr Mak does not rule out that they will fall under the HDB's prime location public housing model.

Under this model, flats are priced with additional subsidies that will be clawed back when they are resold, and there will also be a 10-year minimum occupation period before they can enter the market, up from the usual five. These measures, along with others, are meant to keep prime area flats affordable and inclusive.

 

While the Government has said that prime locations refer to the city centre and the future Greater Southern Waterfront, Mr Mak noted that the second BTO project to fall under the model - in King George's Avenue in the Jalan Besar area - is a "borderline area" not typically considered within the city centre.

"If the definition of 'prime locations' continues to expand, Queenstown and Balestier, which command high resale prices, could be included," he said.

International Council on Monuments and Sites Singapore president Yeo Kang Shua said the buildings to be demolished in Balestier and Queenstown were ubiquitous in their time, a result of the Public Works Department's (PWD) standardisation of school designs so that projects could be completed quickly to cater to the education needs of a rapidly growing population.

For instance, the former Kim Keat Integrated School's block resembles Telok Kurau Primary School's former campus in Joo Chiat Place, which was also completed in the 1960s. But these PWD-built school buildings that were once common have become rare, with many giving way to other developments, said Dr Yeo, an architectural historian.

He noted that a large majority of Singapore's conserved former school buildings - numbering about 20 - were built pre-independence. He added that the authorities should consider keeping some similar to those about to be demolished, as they are representative of Singapore's education landscape in the early independence years.

Mr Terence Tan, 52, who attended Kim Keat Primary School - which the integrated school was renamed to - between 1977 and 1982, said he is sad to hear about the upcoming demolition.

He added that in his early school years, rules required boys to have shaved heads, making Kim Keat's pupils easily recognisable in the neighbourhood.

"When the hairstyle rule was relaxed, we started carrying combs to school," he said.

Mr Tan, an artist and photographer, hopes the authorities can install signboards with old photographs of the school in future developments, so that those who have walked through its halls will have something to remember it by.

 

 

[Alfc]

On 3/30/2022 at 10:30 PM, Alfc said:

Prime location is prime location, even if the HDB is 50, 60 or 70 years old. Maybe got decaying lease cannot sell but can rent out to fetch good rental, yield is hard to beat. Still can milk them and no hefty maintenance to pay even if it is old property. But govt smarter, rather enbloc low rise blocks, pay back 1 unit, then can flip 3-4 units by building highrise. Plot ratio multiply few times, just like private enbloc, just that the huat big big owner is HDB.   

 

4 HDB blocks in Ang Mo Kio picked for Sers; over 600 households to receive market compensation
https://www.straitstimes.com/singapore/housing/four-blocks-in-ang-mo-kio-ave-3-picked-for-sers-around-600-households-to-receive-market-compensation

See what I mean. This is not even real Prime. Should be low rise flats (12 storey?) if not wrong. Pay back 1 unit, flip 3-4 units by building high rise (30-40 storey). Same formula as private. If already is high rise (ie near max plot ratio), chance of enbloc or sers low as not so lucrative already. 

Edited April 7, 2022 by Alfc

[Dp26]

Not just that maybe. Older HDBs blocks are sparsely located compared to now so maybe can build up 6 blocks instead of 4 plus 40 stories instead of 12. 
 

sibeh huat 

[13177]

1 hour ago, Alfc said:

4 HDB blocks in Ang Mo Kio picked for Sers; over 600 households to receive market compensation
https://www.straitstimes.com/singapore/housing/four-blocks-in-ang-mo-kio-ave-3-picked-for-sers-around-600-households-to-receive-market-compensation

See what I mean. This is not even real Prime. Should be low rise flats (12 storey?) if not wrong. Pay back 1 unit, flip 3-4 units by building high rise (30-40 storey). Same formula as private. If already is high rise (ie near max plot ratio), chance of enbloc or sers low as not so lucrative already. 

Finally the SERS project make a comeback after so long?! Lol. 2 of the blocks view not bad, unblocked but facing the expressway, should be noisy.

Another funny SERS, they SERS blk 562-565, but left out the other side two blk 558 & 560? Thought if they SERS all the 6 blks there, it would have quite a big plot of land for development?

Edited April 7, 2022 by 13177