Mercs: property news & updates

[Mercs]

 

https://www.99.co/singapore/insider/4-units-reflections-at-keppel-bay-loss-january-2023/

4 units at Reflections at Keppel Bay made a loss in January 2023, the biggest at S$1m

 

https://www.straitstimes.com/business/property/home-staging-catches-on-in-s-pore-as-such-units-tend-to-clinch-sales-faster

Home staging catches on in Singapore as it helps clinch property sales

 

https://sg.finance.yahoo.com/news/top-10-condos-rent-q4-034548351.html

Top 10 Condos for Rent in Q4 2022: Why Are These Properties So Popular in Singapore?

 

https://www.homeanddecor.com.sg/property-tips/million-dollar-hdb-flats/

Million Dollar HDB Flat Guide: Who is buying them, and where?

(Why buy a million-dollar HDB flat instead of a condo? Here’s why)

 

https://stackedhomes.com/editorial/my-tenant-passed-away-at-my-rented-property-my-first-and-hopefully-last-experience-as-a-landlord/

 

 

 

[Mercs]

https://m.facebook.com/jamusjlim/posts/pfbid0oyngkAcabLxT5Fy2Yn5sUS6qZ5jHrSeN5Xa2pUNpHsxPFTbJ7328HPHoqcXkzkVvl

 

https://theindependent.sg/jamus-lim-higher-house-prices-could-mean-robbing-ah-seng-to-pay-ah-huat/

Jamus Lim: Higher house prices could mean ‘robbing Ah Seng to pay Ah Huat’

 

[13177]

@Mercs 

https://www.asiaone.com/money/5-room-pinnacle-duxton-unit-sold-138m-buyer-paid-about-120k-cash-over-valuation-hdb-flat

5-room Pinnacle@Duxton unit sold for $1.38m, buyer paid about $120k cash over valuation

Buyer paid $120k for COV!!! People now so cash rich. Also paying 120k COV really ridiculous. Even though willing seller willing buyer, but i still dont understand why would HDB still allow this? I think they should do away with buyer OTP first then submit request for valuation. The procedure should get valuation first so that buyer cannot sell above valuation for HDB. As HDB is not meant for profit.

[PSP415]

On 2/27/2023 at 10:04 PM, Mercs said:

https://m.facebook.com/jamusjlim/posts/pfbid0oyngkAcabLxT5Fy2Yn5sUS6qZ5jHrSeN5Xa2pUNpHsxPFTbJ7328HPHoqcXkzkVvl

 

https://theindependent.sg/jamus-lim-higher-house-prices-could-mean-robbing-ah-seng-to-pay-ah-huat/

Jamus Lim: Higher house prices could mean ‘robbing Ah Seng to pay Ah Huat’

 

Reset all HDB prices. All. To be fair. 

Then those with existing housing loans with banks will need to cough up in cash the difference in value of home. It's OK lah, only 80% iirc got existing loans, cheap cheap, only $300k-800k. Can lah. Full cash is best. 

Then from date of all reset, fixed prices for all flats. Same selling and buying prices. Controlled. Fixed. 

Eg. HDB

3 rms - $80k

4 rms - $120K

5 rms - $160k

EC - $180k

Others - $200k

Any selling must be same price. Buyers cannot be too worried, u know. Wait their sperms and eggs all gone. 

99 years over, never mind, first owner likely dead liao. New homes per above price. If first owner(s) still alive, let them live in new flat contra one for one till death occurs. 

Like that hor, new flats no need anything inside. Just 4 walls. Screed flooring. All prefab. Cheap cheap. Afterall, the pattern of new owners of even resale flat is no $100k renovation no talk. No point renovate so ex, simple can lah. Renovation cost useless, cannot bring along the flooring, cabinets, gold taps, oops, this one can. 

Who benefitted from sale of HDB flats? Aliens? Aren't the ones laughing to the bank Singaporeans themselves? Who bought these flats? Aliens again? Aren't these either Singaporeans, PRs? Not talking about private condos or landed ya. 

Goodness. Talk like chirppy birds. Everything govt sell low, dig from reserves. That's kicking the can down to the next generation, to my mind. 

Never mind lah, we live well can liao. Who cares about the kiddos whose parents are telling to work overseas, and live there forever.

Freedom is most important, like the HK youths demonstrated with such passion. 

Always eyeing our reserves, just like those green eyed countries. Talk about how much taxes one pays. Please ah, no collective contributions, most of our share is 0.00000000000002%. 

Yada-ing. Skip if eyes going blind.

I am leaving planet earth as a pile of ashes. My own family/future generation will and must learn to live within their means. Must save and not expect handouts as their entitlement. They must be proud to own a property using hard earned monies. Stay with parents till financially able to afford, not expect parents or govt to pay for them.

Or buy the smallest unit as first home, simple renovation and yes, no need to kpkb or be green eyed. We can't choose our parents but we can choose to live within our means. 

Thanks bro @Mercsagain for allowing me to yada to my heart's content. Just my personal views. No government policies will ever satisfy all but perhaps, as a democracy, isn't it the strength and weakness that its the majority that will have needs met. How unfair is it? And some expect their wants, not just needs to be met. 

Stay safe 

Cheers 

 

 

 

 

Edited February 27, 2023 by PSP415

[Mercs]

On 2/27/2023 at 11:04 PM, 13177 said:

@Mercs 

https://www.asiaone.com/money/5-room-pinnacle-duxton-unit-sold-138m-buyer-paid-about-120k-cash-over-valuation-hdb-flat

5-room Pinnacle@Duxton unit sold for $1.38m, buyer paid about $120k cash over valuation

Buyer paid $120k for COV!!! People now so cash rich. Also paying 120k COV really ridiculous. Even though willing seller willing buyer, but i still dont understand why would HDB still allow this? I think they should do away with buyer OTP first then submit request for valuation. The procedure should get valuation first so that buyer cannot sell above valuation for HDB. As HDB is not meant for profit.

 

My understanding is previously it was so as in - Valuation first then OTP.

 

The procedure was changed (read here) - https://www.hdb.gov.sg/business/estate-agents-and-salespersons/letters-to-keos/revised-hdb-resale-procedure

To improve the long term stability of the HDB resale market, the following changes have been made with effect from 10 Mar 2014, 5.00 pm.

To encourage buyers and sellers to focus on the sum total of flat price, HDB will only accept valuation requests from resale flat buyers (or their appointed salesperson), after the buyers have been granted an Option to Purchase (OTP) by flat sellers

 

Why the change (read here) - https://www.straitstimes.com/singapore/removing-cov-is-a-bold-timely-u-turn

Then, at the height of the property boom, Mr Khaw in defending why he could not abolish COV, explained: "It is simple... COV is the difference between (a) price of flat as agreed between buyer and seller and (b) the valuation of the flat given by a professional valuer. (b) is done by an objective professional. (a) is between buyer and seller."

The question was who would set the price if the COV were abolished? It certainly could not be determined just by professional valuers, Mr Khaw noted.

A decade ago, the Government tried removing COV but this went "underground" in cash-back schemes exposed in 2001, where buyers and sellers colluded to over-declare the agreed selling price. It allowed the buyer to get a higher loan either from a bank or the Housing Board, with the "extra" cash illegally divided out among those involved.

 

Buyers can check the latest hdb resale prices here - https://services2.hdb.gov.sg/webapp/BB33RTIS/

 

 

[Mercs]

On 2/27/2023 at 11:24 PM, PSP415 said:

Reset all HDB prices. All. To be fair. 

Then those with existing housing loans with banks will need to cough up in cash the difference in value of home. It's OK lah, only 80% iirc got existing loans, cheap cheap, only $300k-800k. Can lah. Full cash is best. 

Then from date of all reset, fixed prices for all flats. Same selling and buying prices. Controlled. Fixed. 

Eg. HDB

3 rms - $80k

4 rms - $120K

5 rms - $160k

EC - $180k

Others - $200k

Any selling must be same price. Buyers cannot be too worried, u know. Wait their sperms and eggs all gone. 

99 years over, never mind, first owner likely dead liao. New homes per above price. If first owner(s) still alive, let them live in new flat contra one for one till death occurs. 

Like that hor, new flats no need anything inside. Just 4 walls. Screed flooring. All prefab. Cheap cheap. Afterall, the pattern of new owners of even resale flat is no $100k renovation no talk. No point renovate so ex, simple can lah. Renovation cost useless, cannot bring along the flooring, cabinets, gold taps, oops, this one can. 

Who benefitted from sale of HDB flats? Aliens? Aren't the ones laughing to the bank Singaporeans themselves? Who bought these flats? Aliens again? Aren't these either Singaporeans, PRs? Not talking about private condos or landed ya. 

Goodness. Talk like chirppy birds. Everything govt sell low, dig from reserves. That's kicking the can down to the next generation, to my mind. 

Never mind lah, we live well can liao. Who cares about the kiddos whose parents are telling to work overseas, and live there forever.

Freedom is most important, like the HK youths demonstrated with such passion. 

Always eyeing our reserves, just like those green eyed countries. Talk about how much taxes one pays. Please ah, no collective contributions, most of our share is 0.00000000000002%. 

Yada-ing. Skip if eyes going blind.

I am leaving planet earth as a pile of ashes. My own family/future generation will and must learn to live within their means. Must save and not expect handouts as their entitlement. They must be proud to own a property using hard earned monies. Stay with parents till financially able to afford, not expect parents or govt to pay for them.

Or buy the smallest unit as first home, simple renovation and yes, no need to kpkb or be green eyed. We can't choose our parents but we can choose to live within our means. 

Thanks bro @Mercsagain for allowing me to yada to my heart's content. Just my personal views. No government policies will ever satisfy all but perhaps, as a democracy, isn't it the strength and weakness that its the majority that will have needs met. How unfair is it? And some expect their wants, not just needs to be met. 

Stay safe 

Cheers 

 

 

 

 

 

Thanks bro @PSP415 for sharing 👍🏻

If like that confirm plus chop the property market crash overnight. 🤣

Affordable housing vs retirement adequacy 😉

 

Edited February 27, 2023 by Mercs

[Mercs]

https://www.channelnewsasia.com/commentary/deaths-homes-buyer-seller-disclosure-stigmatised-properties-3307471

Commentary: Don’t ask, don’t tell when it comes to telling buyers about deaths in homes

https://www.homeanddecor.com.sg/design/home-tips/property-what-happens-to-the-hdb-flat-after-the-owner-passes-on/

HDB Owner Passed Away: What happens to HDB flat after death?

(That’s why you must write a will)

 

https://www.edgeprop.sg/property-news/february-2023-bto-exercise-sees-4428-flats-launched-sale

February 2023 BTO exercise sees 4,428 flats launched for sale

https://sbr.com.sg/residential-property/news/strong-demand-seen-bto-flats-in-kallangwhampoa

Strong demand seen for BTO flats in Kallang/Whampoa

https://www.straitstimes.com/singapore/housing/hdb-offers-4428-bto-flats-including-two-under-prime-housing-model-in-dover-forest-farrer-park

 

https://www.businesstimes.com.sg/property/hdb-launch-more-btos-mature-estates-2023-measures-help-first-timers-kick-august

HDB to launch more BTOs in mature estates in 2023; measures to help first-timers to kick in from August

 

https://stackedhomes.com/editorial/i-bought-my-parents-condo-for-a-higher-price-heres-what-ive-learnt/

 

https://www.homeanddecor.com.sg/design/news/strange-noises-you-hear-at-night-in-your-apartment-what-causes-these-sounds/

HDB Marble Dropping Sound: Why do you hear chair dragging, knocking, marbles dropping?

(Don’t blame the ghosts)

 

 

[Mercs]

UP UP and away!

 

https://www.srx.com.sg/research/64431/condo-rents-increase-by-14-in-january-2023--hdb-rents-rise-marginally-by-06-in-january-2023

Condo Rents Increase by 1.4% in January 2023; HDB Rents Rise Marginally by 0.6% in January 2023

 

 Condo Rental Market

Year-on-year, overall rents increase by 33.2% from January 2022.

Year-on-year, rents in CCR, RCR and OCR increase by 31.0%, 34.1% and 33.3% respectively.

 

 

 

HDB Rental Market

Year-on-year, overall rents increase by 27.5%.

Year-on-year, Mature Estates and Non-Mature Estates rents increase by 26.4% and 28.7% respectively.

Year-on-year, all room types record rent increases: 3 Room by 24.5%, 4 Room by 28.2%, 5 Room by 29.5% and Executive rents by 31.1%.

 

Edited February 28, 2023 by Mercs

[Mercs]

https://theindependent.sg/rental-prices-in-singapore-surpass-hong-kong-the-worlds-most-expensive-housing-market/

Rental prices in Singapore surpass Hong Kong, the world’s most expensive housing market

 

https://theindependent.sg/man-who-used-to-rent-1br-boon-keng-condo-for-2-2k-says-agent-found-new-tenant-in-2-weeks-wholl-pay-3-9k/

Man who used to rent 1BR Boon Keng condo for $2.2K says agent found new tenant in 2 weeks who’ll pay $3.9K

 

“The property market is nuts,” wrote one Reddit user who said that he had decided to leave Singapore because life has become too expensive.

To his surprise, the one-bedroom condominium he had been renting for $2,200 a month was snapped up quickly at a huge markup.

“I was renting my 1 bedroom condo for 2.2k a month in Boon Keng.  The agent advertised the unit for 3.8k and found a new tenant who signed for 3.9k within 2 weeks!,” 

 

One netizen wrote that he is also renting in Boon Keng, and that he used to pay $3,500 for a three-bedroom flat. Since his lease is up soon, the rent has been increased to $5,500 for two years.

“I said no way we can afford that. Landlord found someone is willing to 6k for this apartment. Apparently some Chinese couple signed the lease for 6k, then later they are going to divide the living room to another 2 rooms… I don’t know man. I think it is really time to leave Singapore. It is just getting ridiculous.”

 

 

[13177]

On 2/27/2023 at 11:40 PM, Mercs said:

 

My understanding is previously it was so as in - Valuation first then OTP.

 

The procedure was changed (read here) - https://www.hdb.gov.sg/business/estate-agents-and-salespersons/letters-to-keos/revised-hdb-resale-procedure

To improve the long term stability of the HDB resale market, the following changes have been made with effect from 10 Mar 2014, 5.00 pm.

To encourage buyers and sellers to focus on the sum total of flat price, HDB will only accept valuation requests from resale flat buyers (or their appointed salesperson), after the buyers have been granted an Option to Purchase (OTP) by flat sellers

 

Why the change (read here) - https://www.straitstimes.com/singapore/removing-cov-is-a-bold-timely-u-turn

Then, at the height of the property boom, Mr Khaw in defending why he could not abolish COV, explained: "It is simple... COV is the difference between (a) price of flat as agreed between buyer and seller and (b) the valuation of the flat given by a professional valuer. (b) is done by an objective professional. (a) is between buyer and seller."

The question was who would set the price if the COV were abolished? It certainly could not be determined just by professional valuers, Mr Khaw noted.

A decade ago, the Government tried removing COV but this went "underground" in cash-back schemes exposed in 2001, where buyers and sellers colluded to over-declare the agreed selling price. It allowed the buyer to get a higher loan either from a bank or the Housing Board, with the "extra" cash illegally divided out among those involved.

 

Buyers can check the latest hdb resale prices here - https://services2.hdb.gov.sg/webapp/BB33RTIS/

It mentioned that ''even though the COV technically still exists if an agreed sale price is above the flat's valuation, it effectively removes the COV element in the sales process.'' And yet seller still can ask for crazy price, and buyer still need to paid crazy COV now. It doesnt remove COV at all based on what they said.

I still think remove COV should mean that buyer will buy the HDB based on valuation price, and seller cannot ask pricing higher than the valuation. Then this would really means remove COV, and this should stop all the crazy HDB pricing now. Esp for those old HDB. Currently many 40 year old plus 3 room HDB can sell at $400k to even $500k. I dont believe the valuation for these old flats would be high.

[Mercs]

On 2/28/2023 at 10:00 PM, 13177 said:

It mentioned that ''even though the COV technically still exists if an agreed sale price is above the flat's valuation, it effectively removes the COV element in the sales process.'' And yet seller still can ask for crazy price, and buyer still need to paid crazy COV now. It doesnt remove COV at all based on what they said.

I still think remove COV should mean that buyer will buy the HDB based on valuation price, and seller cannot ask pricing higher than the valuation. Then this would really means remove COV, and this should stop all the crazy HDB pricing now. Esp for those old HDB. Currently many 40 year old plus 3 room HDB can sell at $400k to even $500k. I dont believe the valuation for these old flats would be high.

 

If can only sell based on valuation price, then I post this question to you - got 10 buyers all want to buy this same 1 unit and all ok to pay valuation price, so the seller how to choose sell to who? 🤣

As per mentioned in the article, if to remove COV most likely go 'underground',  become more undertable dealings which would not have the desired outcome. (transparency)  😉

 

[Mercs]

On 2/27/2023 at 6:06 PM, Mercs said:

FINALLY ... no more UP UP and away!

 

 

 

https://www.srx.com.sg/research/64421/condo-resale-prices-decrease-for-the-first-time-since-28-months-ago--volumes-dip-for-the-fourth-straight-month

Condo Resale Prices Decrease for the First Time Since 28 Months Ago; Volumes Dip for the Fourth Straight Month

 

 

 

[13177]

On 2/28/2023 at 10:16 PM, Mercs said:

 

If can only sell based on valuation price, then I post this question to you - got 10 buyers all want to buy this same 1 unit and all ok to pay valuation price, so the seller how to choose sell to who? 🤣

As per mentioned in the article, if to remove COV most likely go 'underground',  become more undertable dealings which would not have the desired outcome. (transparency)  😉

 

If sell based on valuation price, then first come first served lo. Or see the seller got fate with which buyer la. 🤣 I still think HDB is not meant to profit gao gao when sell. If want to sell at crazy price, go to private housing.

HDB can ensure the price submitted is based on the valuation price and make the buyer and seller declare and sign. Maybe can stop 'underground' dealings. 😅 But even the current procedure also never reduces the crazy COV problem. Just that the problem instead of becoming underground, it now come to the surface. Afterall the issue never resolves.

[Volvobrick]

On 2/28/2023 at 11:18 PM, 13177 said:

If sell based on valuation price, then first come first served lo. Or see the seller got fate with which buyer la. 🤣 I still think HDB is not meant to profit gao gao when sell. If want to sell at crazy price, go to private housing.

HDB can ensure the price submitted is based on the valuation price and make the buyer and seller declare and sign. Maybe can stop 'underground' dealings. 😅 But even the current procedure also never reduces the crazy COV problem. Just that the problem instead of becoming underground, it now come to the surface. Afterall the issue never resolves.

Cannot control the amount the buyer is willing to buy at lah! If ban COV (I really don't know how it works) then seller will sell to the buyer who is willing to buy his old furniture at the highest prices plus valuation lor.... Back to square one. 

[Mercs]

On 2/28/2023 at 11:18 PM, 13177 said:

If sell based on valuation price, then first come first served lo. Or see the seller got fate with which buyer la. 🤣 I still think HDB is not meant to profit gao gao when sell. If want to sell at crazy price, go to private housing.

HDB can ensure the price submitted is based on the valuation price and make the buyer and seller declare and sign. Maybe can stop 'underground' dealings. 😅 But even the current procedure also never reduces the crazy COV problem. Just that the problem instead of becoming underground, it now come to the surface. Afterall the issue never resolves.

 

The simple answer is - market forces dictate property prices.

 

When an unit is sold higher than previous transaction price, valuation goes up and vice versa down when sold lower, which is reflected to changes in the property price index. If without this component in place, how to determine the latest current value?

If there is no change in sale price up or down all sell at valuation, all things equal same block/floor/size - one unit fully renovated move in condition, another never reno old flat, both also sell at same valuation price? That's actually where the COV part comes in, willing buyer willing seller.

So COV isn't really the main culprit that cause prices to go crazy high, as mentioned in my previous many posts - Demand more than Supply. Similarly, can see from what's happening in the current rental market, rental rates can increase to near double from previous still no shortage of takers.

 

Only when Supply is more than Demand, I can assure you confirm plus chop price will drop no need pay any COV. Just like few months ago when mao san wang supply many many more than demand price per kg drop can buy cheap eat till shiok.  🤣

 

[Stary]

On 2/28/2023 at 10:16 PM, Mercs said:

 

If can only sell based on valuation price, then I post this question to you - got 10 buyers all want to buy this same 1 unit and all ok to pay valuation price, so the seller how to choose sell to who? 🤣

As per mentioned in the article, if to remove COV most likely go 'underground',  become more undertable dealings which would not have the desired outcome. (transparency)  😉

 

I was about to say the same. Seller won't be happy because they can't get the best price if not allow to sell above valuation.  Buyer also won't be happy because it becomes fastest fingers first and made it hard  for most buyers to get the unit they want since fastest buyers will buy without viewing as it will always be market valuation price.

 

[13177]

On 3/1/2023 at 12:46 AM, Volvobrick said:

Cannot control the amount the buyer is willing to buy at lah! If ban COV (I really don't know how it works) then seller will sell to the buyer who is willing to buy his old furniture at the highest prices plus valuation lor.... Back to square one. 

Looks like the COV problem like the COE problem, those scholars will never able to find a solution for it. Current policy is just to cover the problem with another problem. 🙄

[13177]

On 3/1/2023 at 1:18 AM, Mercs said:

 

The simple answer is - market forces dictate property prices.

 

When an unit is sold higher than previous transaction price, valuation goes up and vice versa down when sold lower, which is reflected to changes in the property price index. If without this component in place, how to determine the latest current value?

If there is no change in sale price up or down all sell at valuation, all things equal same block/floor/size - one unit fully renovated move in condition, another never reno old flat, both also sell at same valuation price? That's actually where the COV part comes in, willing buyer willing seller.

So COV isn't really the main culprit that cause prices to go crazy high, as mentioned in my previous many posts - Demand more than Supply. Similarly, can see from what's happening in the current rental market, rental rates can increase to near double from previous still no shortage of takers.

 

Only when Supply is more than Demand, I can assure you confirm plus chop price will drop no need pay any COV. Just like few months ago when mao san wang supply many many more than demand price per kg drop can buy cheap eat till shiok.  🤣

 

True la. But if supply is more than demand, then seller would not able to fetch crazy price anymore. I notice before the start of covid pandemic, HDB resale price is low. example like those old HDB flat can only fetch around $300k or even below. But now the same flat when the age of the flat already getting older liao and yet the selling price went up to average $330k to $450k.