When would a 99 year property start to depreciate?

[13177]

32 minutes ago, Wt_know said:

yes, sell pte property at $2.5M and buy a jumbo hdb at $1M ... sup sup water

I would not believe people who stay at private, able to stay in hdb la. Even they want to downgrade also will consider buying a smaller unit private.

[Throttle2]

59 minutes ago, 13177 said:

I would not believe people who stay at private, able to stay in hdb la. Even they want to downgrade also will consider buying a smaller unit private.

Old people can.

and some people who want to cash out to use the money for something else and need the space.

 

Edited July 16, 2020 by Throttle2

[Showster]

3 hours ago, Throttle2 said:

Lets not lie to ourselves, many category of assets prices are going to be whacked.

wealth to change hands, yeah.

those who bite of more than they can chew, hor say liao!

 

Soon, we will get to experience the increased cost and time of building to completion. It will start with HDB and push all the way to private.

Raw materials aside, do you know how often a foreign worker needs to be swabbed currently? It’s once every fortnight, $200 each time. Just go ask and calculate.

Money no enough that’s true, but purely because one can buy less and less, and not more and more.

 

 

[Wt_know]

pte pty 3br less than 700sqft ... huat ah!

[noobcarbuyer]

2 hours ago, Showster said:

Soon, we will get to experience the increased cost and time of building to completion. It will start with HDB and push all the way to private.

Raw materials aside, do you know how often a foreign worker needs to be swabbed currently? It’s once every fortnight, $200 each time. Just go ask and calculate.

Money no enough that’s true, but purely because one can buy less and less, and not more and more.

 

 

No need to wait so long. It's already happening. 

Those who were supposed to collect keys for their BTO flats during the circuit breaker have been informed by HDB that their key collection dates are pushed back by 9 months at the minimum. 

These are BTO flats that are almost completed and there is already a 9 month delay in key collection. 

What more BTO or private properties that are halfway done. The delay for those projects could be measured in years. 

And with all the disruptions in supply chains, manpower and even the pre-fab plants, the costs for construction has no where to go but up. 

https://www.straitstimes.com/singapore/housing/some-bto-flats-may-be-delayed-up-to-nine-months-up-from-previous-six-months-hdb

[Kopites]

 

https://www.propertysoul.com/2020/07/15/letter-to-the-straits-times-forum/

Not sure anyone shared this link. It is an an old news?

 

Edited July 16, 2020 by Kopites

[13177]

6 hours ago, noobcarbuyer said:

No need to wait so long. It's already happening. 

Those who were supposed to collect keys for their BTO flats during the circuit breaker have been informed by HDB that their key collection dates are pushed back by 9 months at the minimum. 

These are BTO flats that are almost completed and there is already a 9 month delay in key collection. 

What more BTO or private properties that are halfway done. The delay for those projects could be measured in years. 

And with all the disruptions in supply chains, manpower and even the pre-fab plants, the costs for construction has no where to go but up. 

https://www.straitstimes.com/singapore/housing/some-bto-flats-may-be-delayed-up-to-nine-months-up-from-previous-six-months-hdb

How come those BTO who were supposed to collect keys still need to delay by 9 months le? Can collect keys means the BTO already completed?

[Throttle2]

6 hours ago, noobcarbuyer said:

No need to wait so long. It's already happening. 

Those who were supposed to collect keys for their BTO flats during the circuit breaker have been informed by HDB that their key collection dates are pushed back by 9 months at the minimum. 

These are BTO flats that are almost completed and there is already a 9 month delay in key collection. 

What more BTO or private properties that are halfway done. The delay for those projects could be measured in years. 

And with all the disruptions in supply chains, manpower and even the pre-fab plants, the costs for construction has no where to go but up. 

https://www.straitstimes.com/singapore/housing/some-bto-flats-may-be-delayed-up-to-nine-months-up-from-previous-six-months-hdb

In business, cost up is a big issue. Unless you have full monopoly of the market and buyers must die die buy.

otherwise, you are f**ked.  

In the case of properties, it is a big ticket item which requires much consideration for the bulk of buyers. Job not secured, economy not secured, no need to talk further.  We are not talking about outliers, anytime can full cash settle a condo.  We are talking about 80% of the people.  

cost go up, jobs go down, buyers go down, business have to absorb the costs to push out the products.

you think cost go up, they can simply transfer cost to the larger part of the buyers?  

This is not $3,50 wantan mee. Add 20% also nobody knows  nobody feels

Thats been the problem since 2005.

Good luck my fellow singaporeans, huat ah!  Huat ah!

 

[Throttle2]

1 hour ago, 13177 said:

How come those BTO who were supposed to collect keys still need to delay by 9 months le? Can collect keys means the BTO already completed?

No lah, units not completed. 

Expected to complete by a certain date but CB struck and current safe distancing etc...all will be delayed.

[noobcarbuyer]

1 hour ago, 13177 said:

How come those BTO who were supposed to collect keys still need to delay by 9 months le? Can collect keys means the BTO already completed?

I guess that within each BTO estate being built, some of the blocks are totally completed (and keys are being collected), while the rest of the blocks are still 90% to 95% done (i.e  only left with painting works, tiling works). 

Quite surprised that it will take 9 months just to finish up the odds and ends and get the blocks ready for key collection. Guess the manpower and supply chain crunch are very real even for HDB with access to government level resources.

The government has been prioritizing the completion of HDB BTO projects by screening and allocating covid-free dorms for foreign workers employed by HDB and their sub-contractors. And yet it appears that delays for almost complete projects are still between 6 to 9 months. Delays for HDB BTO projects that are midway through construction will probably be between 1 to 2 years. 

I guess that means that private developers who are left to their own devises and without the government level support (that HDB has), will probably take much longer to complete those private property projects that are still in the works. Delays will probably be measure in years. 

"SINGAPORE - Retail sales assistant Joyce Loh and her husband were supposed to get the keys to their new Build-To-Order (BTO) flat in Bukit Batok last month but will now have to wait till the start of next year.

Their block in West Plains @ Bukit Batok is one of several in BTO projects facing a longer delay of up to nine months, in a revision of an earlier estimation of six months, the Housing Board (HDB) told The Straits Times on Wednesday (July 15).

At West Plains @ Bukit Batok, four out of the nine blocks have been completed. About 65 per cent of home owners in the completed blocks have collected their keys and the rest will do so between this month and October.

The remaining five blocks are delayed by up to nine months and are expected to be progressively completed by the first quarter of 2021, barring unforeseen circumstances, said the HDB."

[noobcarbuyer]

29 minutes ago, Throttle2 said:

In business, cost up is a big issue. Unless you have full monopoly of the market and buyers must die die buy.

otherwise, you are f**ked.  

In the case of properties, it is a big ticket item which requires much consideration for the bulk of buyers. Job not secured, economy not secured, no need to talk further.  We are not talking about outliers, anytime can full cash settle a condo.  We are talking about 80% of the people.  

cost go up, jobs go down, buyers go down, business have to absorb the costs to push out the products.

you think cost go up, they can simply transfer cost to the larger part of the buyers?  

This is not $3,50 wantan mee. Add 20% also nobody knows  nobody feels

Thats been the problem since 2005.

Good luck my fellow singaporeans, huat ah!  Huat ah!

 

Well, in the previous comment, I mentioned that "And with all the disruptions in supply chains, manpower and even the pre-fab plants, the costs for construction has no where to go but up."

How and if the added cost (both material and intangible) is transferred to the buyer is really up in the air. 

My best guess is the private developers will take the cue from what HDB plans on doing for future BTO projects. 

Whatever it is, with the delivery dates of new property being so uncertain even for those almost completed projects, people requiring a property (HDB or private) within a fixed time frame, will probably turn to resale units. 

[13177]

9 minutes ago, Throttle2 said:

No lah, units not completed. 

Expected to complete by a certain date but CB struck and current safe distancing etc...all will be delayed.

Dont know what things still not completed? I have one friend can see from outside that his bto already completed, hdb also informed him keys are ready to be collected in apr this year. Then suddenly CB and even after CB lifted for 2 months liao, hdb suddenly informed him that keys can only collect 9 months later?! My friend wonder why needs to take 9 months so long since bto seems to be already completed and not half-way completed. Lol.

[noobcarbuyer]

2 minutes ago, 13177 said:

Dont know what things still not completed? I have one friend can see from outside that his bto already completed, hdb also informed him keys are ready to be collected in apr this year. Then suddenly CB and even after CB lifted for 2 months liao, hdb suddenly informed him that keys can only collect 9 months later?! My friend wonder why needs to take 9 months so long since bto seems to be already completed and not half-way completed. Lol.

No manpower, no materials, how to complete? 

Probably still left with minor tiling / plumbing works etc. And of course still got to pass audit by BCA and HDB before keys can be disbursed to owners. 

Jia lat man. Feel sorry for those young couples who have already placed deposit for renovation, furniture, aircon, electronics etc. Don't know if the renovation companies / furniture companies that they place deposit with will still be around by next year.

Anyway from what I hear, the 9 months is tentative (pending unforseen circumstances). HDB initially promised delays of only up to 6 months. Now it's 9 months. When more problems crop up, may get extended to 1 year delay. 

[Roh96]

10 hours ago, Showster said:

Soon, we will get to experience the increased cost and time of building to completion. It will start with HDB and push all the way to private.

Raw materials aside, do you know how often a foreign worker needs to be swabbed currently? It’s once every fortnight, $200 each time. Just go ask and calculate.

Money no enough that’s true, but purely because one can buy less and less, and not more and more.

 

 

Do you know how construction industry work? Let say you go bid a project from a developer or HDB, now you need to incur additional cost bcos your workers need to be swabbed, you mean you can go back to HDB and up your price and ask them to bear the cost for you, and then HDB up the price of BTO and pass the cost to consumer?

 

 

[Acewin]

28 minutes ago, 13177 said:

Dont know what things still not completed? I have one friend can see from outside that his bto already completed, hdb also informed him keys are ready to be collected in apr this year. Then suddenly CB and even after CB lifted for 2 months liao, hdb suddenly informed him that keys can only collect 9 months later?! My friend wonder why needs to take 9 months so long since bto seems to be already completed and not half-way completed. Lol.

Thought CB lifted but no all FW is allowed to return to work most of them are still in their dom so HDB also do some buffer on their end give a safety figure of 9 months.

[Showster]

20 minutes ago, Roh96 said:

Do you know how construction industry work? Let say you go bid a project from a developer or HDB, now you need to incur additional cost bcos your workers need to be swabbed, you mean you can go back to HDB and up your price and ask them to bear the cost for you, and then HDB up the price of BTO and pass the cost to consumer?

 

 

Do you know if construction completion is delayed for 9 months, and renovation work is delayed for 3 months, for that one whole year, how much rent someone got to pay more for???

Then of course you can't change (much) existing contracts, but from what I hear, there are contract variations and exceptions allowed due to Covid-19. Suppliers have no choice but to cut elsewhere or over-charge future projects to compensate.

Those who locked in price with HDB, I don't know where the contractors can cut, but how about those who are waiting for a downturn before they lock in the price? These people will be in for a rude shock!

[noobcarbuyer]

19 minutes ago, Roh96 said:

Do you know how construction industry work? Let say you go bid a project from a developer or HDB, now you need to incur additional cost bcos your workers need to be swabbed, you mean you can go back to HDB and up your price and ask them to bear the cost for you, and then HDB up the price of BTO and pass the cost to consumer?

 

 

For current projects being built, the developer or sub-contractor will lan lan have to absorb the added costs. 

For HDB BTO, at least quality and standards will be assured. Govt will step in if need be. This is basic housing for the majority of the citizens, cannot play play. 

As for how private developers will need to account for all that added costs, and perhaps still try and break even or turn a profit. That one I also very curious to know.

Anyway, one thing is for sure. We live in interesting times. I have never thought that even the mighty HDB cookie cutter machinery has been humbled even with all the resources being channeled to it during this pandemic.

Drove past a couple of BTO projects. No work has been done since March. Main gate still shut. 

Same with the condo projects near my residence. All very quiet.

Wonder how this will distort the property market. 

[Wt_know]

all looking into "force majeure" clause to find a way out + cry papa cry mama for ah gong help  .. 

 

Edited July 17, 2020 by Wt_know