Mercs: property news & updates

[Mercs]

4 minutes ago, inlinesix said:

Ya ya I am vested.

You stick to what you know because your comparison shows you know jack ……

😂😂😂😂😂😂

 

Vested there then good luck with recovering any $$$

I dunno you dun have to read what i post, just nonsense to you ......

🤣🤣🤣🤣🤣🤣

[Mercs]

https://www.99.co/singapore/insider/reflections-at-keppel-bay-unit-sold-s6-6m-higher-just-over-a-year/

Reflections At Keppel Bay unit sold S$6.6m higher in just over a year

 

https://www.asiaone.com/money/heres-how-much-cheapest-condos-and-hdbs-have-risen-price-2020

Here's how much the cheapest condos and HDBs have risen in price since 2020

 

https://www.businesstimes.com.sg/property/astrid-hill-bungalow-early-stage-being-sold-over-s55m

Astrid Hill bungalow in early stage of being sold for over S$55m

 

 

 

 

 

 

 

[Mercs]

As mentioned 😉

 

 

Why HIP2 and VERS will not transform your depreciating HDB flat into an asset

September 24, 2018

 

In a report published by Swiss bank Credit Suisse on 20 September, analysts Louis Chua and Nicholas Teh noted that the much touted Voluntary En-bloc Redevelopment Scheme (VERS) is not a panacea to the real and pertinent issue of “lease decay”.

Noting that one of the stated aims of the scheme is to spread out redevelopment, the report pointed out that flats with 10 years of lease remaining would theoretically be worth only half of flats with 30 years left.

Lease decay, not upgrading or an aesthetic make-over of HDB flats is the key factor behind the declining value of HDB flats.

All HDB flats are owned by the HDB and comes with a 99 year lease. When a buyer buys a flat from HDB or another lessee, he/she signs on a lease agreement to lease the flat from HDB.


From a legal perspective, once the lease runs to zero, the flat automatically reverts back to HDB, the lessor with no compensation offered to the lessee as what happened to the 191 leasehold terrace houses in Geylang which were acquired by the government recently.

When Singaporeans buy a HDB flat, they expect three things:

1. The value of their flat will appreciate over time and never depreciate.

2. They are able to sell their flats for a profit years later and use the money either to upgrade or to retire.

3. They are able to pass their flats as a bequest to their children after they pass on.

This means that if I buy a four room BTO flat in Punggol for $400,000 now, I will expect to sell it for $500,000 or $600,000 in 10 to 20 years time. If I buy a resale five room HDB flat in Toa Payoh for $500,000 now, I must be able to sell it at $700,000 to $1 million many years later. If I do not sell the flat and pass it on to my children after I pass on, they are able to inherit something of substantial value.

Such a future scenario is neither realistic or feasible because by nature of the fact of the limited tenure of HDB flats, their value will start to depreciate from 40 or even 30 years onward.

There are reports of Singaporeans paying over a million dollars for an aging HDB flat in Bukit Merah and Marine Parade with only 50 years of lease left. Who will pay more than a million dollars for these flats in 10 years’ time knowing that its tenure is getting shorter and shorter?

As a housing agent, I can say first hand that it is very difficult to sell HDB flats which are more than 40 years ago. In the first place, these old decrepit flats built 40 years ago do not appeal to young Singaporeans below the age of 30. Those who are interested to buy such flats are usually in their mid 40s and 50s and they face severe restrictions in the use of CPF funds. I have a 52 year old client who is keen to buy a 3 room flat in Toa Payoh to live with his mother. However, he is unable to use his CPF funds and the banks will only offer him a 10 year loan. He has to fork out more than $100,000 in cash alone to purchase the flat which he didn’t eventually. Just check out the the property listings on property portals on aging flats in Toa Payoh, Ang Mo Kio, Bukit Merah, Queenstown and other matured estates and you will notice many of them have been there for months.

Passing your HDB flat to your children as a bequest is not only difficult, but not feasible as well. Your children may want to buy a new flat and they cannot own two HDB flats at the same time. Assuming they do want to stay in your flat, it will be left with less than 30 or 20 years of lease as well and after paying for the monthly mortgage, they will have to return the flat to HDB when the lease ends, assuming VERS is unsuccessful, leaving nothing for them or their children.

The proposed Home Improvement Programme (HIP) for all HDB flats at 60 years old may only serve to mitigate the steep depreciation in value – it still doesn’t change the fundamental fact that the flats are running down in their tenure just like no amount of Botox injection or fillers will make a 60 year old look like a 30 year old.

When you rent a flat, no matter how much money the landlord spend to spruce up the place to make it as comfortable as it is for you to live in, the flat still doesn’t belong to you and you have to return it to the landlord when the lease ends. It is the same with HDB flats - no amount of upgrading or home improvement can disguise the fact that you are only leasing the flats from HDB for a limited period of time.

VERS, as Prime Minister Lee Hsien Loong has pointed out will be much less attractive than SERS. The government is not going to pay a million dollars for each unit. Any compensation is likely to be of a token nature and those who paid exorbitant prices in the resale market will make a terrible loss. Imagine in just over 20 years time, we will have many flats built in the 1970s reaching the 70 year old mark. Where is the government going to get the money to pay for VERS for so many flats together at the same time when we will be facing much higher social and medical expenses from an aging population from now?

Then again, not all flats will go through VERS. What if you are unable to get a majority to support it? There will be some flat dwellers who bought the flats at low BTO prices and have little incentive to move. In the end, the flats will return to HDB when their lease end with the lessees getting not a single cent.

Neither HIP or VERS will offer much consolation to HDB flat dwellers, many of whom are expecting to get a windfall from the future sale of their flats. As the Credit Suisse report pointed out, it will likely take some time for Singaporeans to understand the “evolving narrative on the nature of HDB flats - from one where HDB flats are a good store of value and attractive investment class that will continue to appreciate, towards one where we are likely to see a steady diminution in value as we approach the end of the 99 year lease.”

While I applaud the government of rolling out these initiatives to assuage the angst of Singaporeans over the lease decay of their HDB flats, we need to start addressing the elephant in the room right now and start calling a spade a spade.

It is time Singaporeans be educated on the reality of the inherent values of HDB flats: that they will appreciate at most for the first ten to twenty years of their lease after which they will depreciate steadily and more so after forty years when there will be restrictions imposed on the use of CPF funds and it is more difficult to secure a bank
loan.

The faster we wake up from our slumber and face the unsavoury truth, the earlier we can start financial planning for our future and retirement, either by reformulating our strategy previously based on using our HDB flats as a “nest-egg”, switching to private properties which offer a better store of value over time or diversifying our portfolio to include more of stocks, unit trusts and bonds.

[Mercs]

 

https://www.edgeprop.sg/property-news/november-bto-launch-our-depth-analysis

November BTO launch: Our in-depth analysis

 

https://www.straitstimes.com/singapore/housing/first-time-bto-applicants-in-november-hdb-launch-have-good-chance-of-booking-queenstown-flats

First-time BTO applicants in November HDB launch have good chance of booking Queenstown flats

 

https://www.businesstimes.com.sg/property/lakepoint-condo-en-bloc-again-unchanged-s640m-reserve-price

Lakepoint condo up for en bloc again with unchanged S$640m reserve price

https://www.businesstimes.com.sg/property/oxley-garden-seeking-least-s200m-heels-adjacent-5-oxley-rise-tender

Oxley Garden seeking at least S$200m, on heels of adjacent 5 Oxley Rise tender

https://www.businesstimes.com.sg/property/when-one-time-condo-discounts-are-anything-do-buyers-have-any-recourse

When 'one-time' condo discounts are anything but, do buyers have any recourse?

 

https://stackedhomes.com/editorial/i-lost-over-165000-by-selling-early-6-common-regrets-of-homeowners-who-sold-their-homes-in-2021-22/

 

https://www.cnbc.com/2022/11/30/fed-chair-jerome-powell-says-smaller-rate-hikes-could-come-in-december.html

Fed Chair Powell says smaller interest rate hikes could start in December

 

 

As mentioned - 'Expensive SG' ... huat ah! 🤣

https://www.todayonline.com/singapore/consistently-high-cost-living-singapore-ranked-worlds-most-expensive-city-8th-time-decade-survey-2061111

With 'consistently high cost of living', Singapore ranked world's most expensive city for 8th time in a decade: Survey

 

[camrysfe]

18 minutes ago, Mercs said:

 

https://www.edgeprop.sg/property-news/november-bto-launch-our-depth-analysis

November BTO launch: Our in-depth analysis

 

https://www.straitstimes.com/singapore/housing/first-time-bto-applicants-in-november-hdb-launch-have-good-chance-of-booking-queenstown-flats

First-time BTO applicants in November HDB launch have good chance of booking Queenstown flats

 

https://www.businesstimes.com.sg/property/lakepoint-condo-en-bloc-again-unchanged-s640m-reserve-price

Lakepoint condo up for en bloc again with unchanged S$640m reserve price

https://www.businesstimes.com.sg/property/oxley-garden-seeking-least-s200m-heels-adjacent-5-oxley-rise-tender

Oxley Garden seeking at least S$200m, on heels of adjacent 5 Oxley Rise tender

https://www.businesstimes.com.sg/property/when-one-time-condo-discounts-are-anything-do-buyers-have-any-recourse

When 'one-time' condo discounts are anything but, do buyers have any recourse?

 

https://stackedhomes.com/editorial/i-lost-over-165000-by-selling-early-6-common-regrets-of-homeowners-who-sold-their-homes-in-2021-22/

 

https://www.cnbc.com/2022/11/30/fed-chair-jerome-powell-says-smaller-rate-hikes-could-come-in-december.html

Fed Chair Powell says smaller interest rate hikes could start in December

 

 

As mentioned - 'Expensive SG' ... huat ah! 🤣

https://www.todayonline.com/singapore/consistently-high-cost-living-singapore-ranked-worlds-most-expensive-city-8th-time-decade-survey-2061111

With 'consistently high cost of living', Singapore ranked world's most expensive city for 8th time in a decade: Survey

 

Don’t understand why Lakepoint remains unsold when park view mansions and lakeside tower sold at much high prices 

[Mercs]

2 hours ago, camrysfe said:

Don’t understand why Lakepoint remains unsold when park view mansions and lakeside tower sold at much high prices 

Rising interest rates, higher construct costs, more CMs = developers more cautious in acquiring land.

 

Parkview mansions - enbloc 260mil -  https://www.edgeprop.sg/property-news/park-view-mansions-sold-260-mil-chip-eng-seng-led-joint-venture

Lakeside tower - ask 305mil,  sold?  -https://www.edgeprop.sg/property-news/lakeside-towers-going-305-mil

 

Lakepoint - need 800mil, high price tag - https://www.businesstimes.com.sg/property/lakepoint-condo-s640m-en-bloc-tender-closes-without-bids

"The reserve price for the latest tender remained unchanged at S$640 million. However, when a development charge and lease top-up premium from JTC are included, the total quantum a buyer would have to fork out for the site will likely bring it to around S$800 million.

That would put the price tag above the top bid of S$671.5 million for the recent state tender of the Pine Grove site, making potential buyers more cautious."

[camrysfe]

12 hours ago, Mercs said:

Rising interest rates, higher construct costs, more CMs = developers more cautious in acquiring land.

 

Parkview mansions - enbloc 260mil -  https://www.edgeprop.sg/property-news/park-view-mansions-sold-260-mil-chip-eng-seng-led-joint-venture

Lakeside tower - ask 305mil,  sold?  -https://www.edgeprop.sg/property-news/lakeside-towers-going-305-mil

 

Lakepoint - need 800mil, high price tag - https://www.businesstimes.com.sg/property/lakepoint-condo-s640m-en-bloc-tender-closes-without-bids

"The reserve price for the latest tender remained unchanged at S$640 million. However, when a development charge and lease top-up premium from JTC are included, the total quantum a buyer would have to fork out for the site will likely bring it to around S$800 million.

That would put the price tag above the top bid of S$671.5 million for the recent state tender of the Pine Grove site, making potential buyers more cautious."

Sorry i am referring to LAKESIDE APARTMENTS(1260psf) vs Parkview mansions(1023 psf after DC) -Isn't both just side by side along the same road and actually lakeside apartments sold few months earlier.

 

 

SINGAPORE (EDGEPROP) - Leading real estate developer Wing Tai Holdings has won the tender for the collective sale of Lakeside Apartments in Jurong. The developer paid $273.88 million for the 99-year leasehold site. PropNex Realty was the exclusive marketing agent for this collective sale.

Based on an approximate calculation of the land rate, this translates to about $1,250 psf per plot ratio (ppr) to $1,260 psf ppr, without including the bonus balcony area.

The purchase price of Lakeside Apartments is about $33.88 million (14%) higher than the $240 million reserve price listed when the 120-unit development was launched for collective sale in March this year. According to PropNex, each owners stands to receive proceeds of $2.28 million from the transaction.

 

 

 

Park View Mansions was launched for collective sale via public tender by marketing agent ERA Realty on June 20 with an asking price of $260 million. The price translates to a land rate of $1,023 psf per plot ratio (psf ppr), inclusive of a differential premium payable to maximise the site’s development plot ratio of 2.1 and to top-up the existing lease to a fresh 99 years, subject to JTC and URA’s planning approval.

Edited December 2, 2022 by camrysfe

[Mercs]

11 hours ago, camrysfe said:

Sorry i am referring to LAKESIDE APARTMENTS(1260psf) vs Parkview mansions(1023 psf after DC) -Isn't both just side by side along the same road and actually lakeside apartments sold few months earlier.

 

 

SINGAPORE (EDGEPROP) - Leading real estate developer Wing Tai Holdings has won the tender for the collective sale of Lakeside Apartments in Jurong. The developer paid $273.88 million for the 99-year leasehold site. PropNex Realty was the exclusive marketing agent for this collective sale.

Based on an approximate calculation of the land rate, this translates to about $1,250 psf per plot ratio (ppr) to $1,260 psf ppr, without including the bonus balcony area.

The purchase price of Lakeside Apartments is about $33.88 million (14%) higher than the $240 million reserve price listed when the 120-unit development was launched for collective sale in March this year. According to PropNex, each owners stands to receive proceeds of $2.28 million from the transaction.

 

 

 

Park View Mansions was launched for collective sale via public tender by marketing agent ERA Realty on June 20 with an asking price of $260 million. The price translates to a land rate of $1,023 psf per plot ratio (psf ppr), inclusive of a differential premium payable to maximise the site’s development plot ratio of 2.1 and to top-up the existing lease to a fresh 99 years, subject to JTC and URA’s planning approval.

Both enbloc at below 300mil, as mentioned earlier enbloc sites with high price tag/too many units may put off developers for now, with reduced TDSR/LTV affecting affordability, rising interest rates, high sale psf etc - take up of new launches may slow interim. Also 5 year QC to clear all units ABSD - currently smaller sites with less units more palatable for developers.

[Mercs]

https://www.edgeprop.sg/property-news/residential-transactions-contracts-dated-nov-15-nov-22-done-deals

Residential transactions with contracts dated Nov 15 to Nov 22 [DONE DEALS]

https://www.edgeprop.sg/property-news/four-bedder-clearwater-reaps-178-mil-profit

Four-bedder at The Clearwater reaps $1.78 mil profit

https://www.edgeprop.sg/property-news/madison-residences-hits-new-high-2312-psf

Madison Residences hits new high of $2,312 psf

 

https://www.businesstimes.com.sg/property/double-whammy-higher-tax-rates-higher-annual-values-could-hit-rental-property-owners-hard

Double whammy of higher tax rates, higher annual values could hit rental property owners hard

https://www.channelnewsasia.com/singapore/property-tax-increase-iras-rebate-annual-value-revision-2023-3117496

Property tax to increase for most homes in 2023; Government will provide one-off rebate

 

 

[Wt_know]

7 hours ago, Mercs said:

Property tax to increase for most homes in 2023; Government will provide one-off rebate

got 1 x chicken wing liao ... mai hiam la

in long run just prepare to return wing + drumstick + breast meat + backside .... whole chicken in time .... 

Edited December 2, 2022 by Wt_know

[Mkl22]

On 11/28/2022 at 9:34 PM, Mercs said:

 

 

https://www.asiaone.com/money/now-i-pay-almost-700-less-month-4-homeowners-share-how-they-are-dealing-rising-interest-rates

'Now I pay almost $700 less per month': 4 homeowners share how they are dealing with the rising interest rates

 

https://www.channelnewsasia.com/singapore/big-read-young-couples-future-plans-inflation-3102661

The Big Read: Young couples delaying plans to marry, buy property or have kids amid red-hot inflation, but at what cost?

 

https://www.99.co/singapore/insider/districts-most-profitable-sales-hdb-condo-landed/

Top districts with the most profitable sales (for HDB, condo and landed) in the last 5 years

 

 

why lump sum repayment also need to consult? These people have no sense of what one needs to spend and save? 🤣

[13177]

3 hours ago, Wt_know said:

got 1 x chicken wing liao ... mai hiam la

in long run just prepare to return wing + drumstick + breast meat + backside .... whole chicken in time .... 

Think gahment just credited that govt payout to people, and yesterday announced increase of property tax. 🙄

[Mercs]

17 hours ago, Wt_know said:

got 1 x chicken wing liao ... mai hiam la

in long run just prepare to return wing + drumstick + breast meat + backside .... whole chicken in time .... 

Haha, same same as before gst increase give some voucher first? 🤣

 

Rental- rents already up 40-60%, even without this property tax increase landlords still gonna up rents once tenant lease up - strong rental demand.

Owner occupier - besides inflation/gst increase/high coe/higher cost of living - one more to deal with. If got another rental property to hedge still not too bad, can cover via rent increase, or else just have to pay more taxes. Richie Richs own stay ccr/gcb no issue, money always more than enough.

 

Or else how to stay at number 1  - https://www.todayonline.com/singapore/consistently-high-cost-living-singapore-ranked-worlds-most-expensive-city-8th-time-decade-survey-2061111

 

 

[Mercs]

16 hours ago, Mkl22 said:

why lump sum repayment also need to consult? These people have no sense of what one needs to spend and save? 🤣

 

IMHO, lump sum repayment better to use cpf(2.5%) vs cash (4% fd) against bank int rates (4% loan). Surplus cash park into FD 4% stay cash liquid for any unforeseen, reduce exposure to high bank rates. This just a temp stop gap measure, to review again pending how further rates pans out.

Anyway unlike CMs, interest rates rise do not happen overnight, early this year already know FED gonna be aggressive to up . Heads up given March 2022, savvy ones would have locked in at low rates now enjoy best of both worlds as in bank still paying them $ (FD) to borrow aka 'use other ppl money to make more money' 🤣

 

On 3/24/2022 at 8:27 PM, Mercs said:

For those with concern simple solution just go for current fixed rate (below 2%) for peace of mind. 

After that even if FED up rate 10 times also no issue.

 

[Mercs]

https://www.edgeprop.sg/property-news/tenet-executive-condo-sold-723-units-launch-weekend

Tenet executive condo sold 72.3% of units on launch weekend

https://www.edgeprop.sg/property-news/private-non-landed-housing-prices-decline-07-october-nus-srpi-flash-estimate

Private non-landed housing prices decline 0.7% in October: NUS SRPI flash estimate

https://www.edgeprop.sg/property-news/november-2022-bto-exercise-sees-lower-application-rates

November 2022 BTO exercise sees lower application rates

 

https://www.straitstimes.com/singapore/housing/first-time-bto-applicants-in-november-hdb-launch-have-good-chance-of-booking-queenstown-flats

First-time BTO applicants in November HDB launch have good chance of booking Queenstown flats

https://www.straitstimes.com/singapore/housing/deciding-on-prime-location-bto-flats-what-one-year-of-such-launches-shows

Deciding on prime location BTO flats: What one year of such launches shows

 

https://www.channelnewsasia.com/commentary/hdb-flats-bto-plh-prime-location-lottery-application-rate-demand-3117466

Commentary: Buyers of BTO flats in prime areas need to be far-sighted

 

https://www.asiaone.com/money/top-districts-most-profitable-sales-hdb-condo-and-landed-last-5-years

Top districts with the most profitable sales (for HDB, condo and landed) in the last 5 years

[13177]

I have one question to ask. If i intend to sell my current HDB and buy another resale HDB, it is better to find property agent from different property company or it is ok to get from the same company? It is true that same property agent cannot buy and sell the house of the same client at the sametime?

[Stratovarius]

18 minutes ago, 13177 said:

I have one question to ask. If i intend to sell my current HDB and buy another resale HDB, it is better to find property agent from different property company or it is ok to get from the same company? It is true that same property agent cannot buy and sell the house of the same client at the sametime?

Can. But why you need an agent to buy? The seller agent will take care of everything. 

I got an agent to help me sell my house. The buyer of my house do not have an agent. Same as when i bought my current house, i contact the seller's agent directly, no agent for buying. If both seller and buyer have agent, they need to agree to share the commission. 

HBS sales is very straight forward, you can DIY. i know my friend and someone here sold on their own. 

Edited December 5, 2022 by Stratovarius

[inlinesix]

24 minutes ago, 13177 said:

I have one question to ask. If i intend to sell my current HDB and buy another resale HDB, it is better to find property agent from different property company or it is ok to get from the same company? It is true that same property agent cannot buy and sell the house of the same client at the sametime?

Seller agent don't represent your interest.

If buy without agent, be extra careful.

As we don't buy and sell house regularly, did we miss out anything in the process?

With an agent, you don't have to deal with lowballers.