Singapore Property Scene Discussion

[therock]

I'm beginning this thread so I can continue to discuss matters on a topic that interests me. I know there is a thread with similar content, but it's become a bit toxic, so if the mods don't mind, I'll start one here?

Otherwise go ahead and merge.

Basically we have an economic crisis on us, and internationally things are not doing well either. But in spite of this, property prices seem to be headed northwards and the agents will want to tell you, they won't drop.

But job losses are on the way, and the capital appreciation on property isn't what it used to be and despite what agents try to tout, one must consider all factors rationally, and see if your money is better served elsewhere.

Eg a good benchmark will be the 2.5% that CPF offers.

But property remains enticing because it takes a lot more effort and investigation to find alternatives and not all Singaporeans are that hardworking or familiar with the investment instruments available. 

I wonder what the rest think?

 

Cheers

[therock]

One big plus for any buyer right now will be the low interest rates.

<1% can be had, just shop around a bit for it...

 

But there are definitely less renters, less expats, and less FT in general, so beware.

The en bloc scene is pretty dry, so there are much less transactions, and even less crazy ones. But of course when the economy picks up, things may change quickly.

[Windwaver]

 

https://www.edgeprop.sg/property-news/hdb-resale-market-rebounds-transaction-volumes-1273-q-o-q-3q2020

HDB resale market rebounds with transaction volumes up 127.3% q-o-q in 3Q2020

By

Timothy Tay

/ EdgeProp Singapore

October 23, 2020 5:45 PM SGT

The latest statistics from HDB show that there were 7,787 transactions in 3Q2020, marking a 127.3% increase from the previous quarter, which saw just 3,426 resale transactions, as well as a 24.3% y-o-y increase.

 

https://www.todayonline.com/singapore/hdb-resale-prices-increase-its-fastest-pace-8-years-prices-expected-continue-upward-trend

HDB resale prices increase at fastest pace in 8 years, expected to continue rising

Published 23 OCTOBER, 2020

UPDATED 23 OCTOBER, 2020

• The number of units sold hit a 10-year-high of 7,787
• Analysts say a larger proportion of newer flats entering the market was a contributing factor
• They expect prices to increase between 1.5 and 3.5 per cent for 2020

 

Public housing is the best to study because it forms the baseline.

 

[therock]

Ah... this one really riles me..

https://cnalifestyle.channelnewsasia.com/trending/decoding-top-5-property-marketing-cliches-property-ads-12862334

 

To me, "near MRT" is the worst term... it can be a 15min walk and they still call it "near"... 

IMHO, if it's more than 5-6 mins, it's not that near..

Quote

Here are the five most annoying cliches you see in property ads or listings, and what they really mean.

 

[Angcheek]

28 minutes ago, therock said:

Ah... this one really riles me..

https://cnalifestyle.channelnewsasia.com/trending/decoding-top-5-property-marketing-cliches-property-ads-12862334

 

To me, "near MRT" is the worst term... it can be a 15min walk and they still call it "near"... 

IMHO, if it's more than 5-6 mins, it's not that near..

 

With so many mrt track and tunnels... everywhere is near mrt 😂 .  And those above ground track are noisy.  

 

[Angcheek]

Recent HDB rebounds data may not be the real picture.  There is no "strong" reason for the growth. Backlog n long waiting time for bto etc push resales up . But then why would pp sell at these times rite... 

Buying property hdb or pte is a big investment.  And the duration is long . When times are good , price is high . When market bad , hard to sell and likely make a lost. Whilst interests are low , terms are short. Unlike the US , lock in 30yrs. 😄

 

[Throttle2]

1 hour ago, therock said:

Ah... this one really riles me..

https://cnalifestyle.channelnewsasia.com/trending/decoding-top-5-property-marketing-cliches-property-ads-12862334

 

To me, "near MRT" is the worst term... it can be a 15min walk and they still call it "near"... 

IMHO, if it's more than 5-6 mins, it's not that near..

 

 

I wont be surprised when they say its 5-6mins walking.  (At racewalking pace, that they dont say)  

so all this is subjective.  Must go and see and walk and try yourself.   Take their words with a full jar of salt, always.

[therock]

Yep always check it out, there's a whole checklist thread, but remember to look at the place at various times, various days and not just on a Sunday afternoon.. 

[Jamesc]

Whether you have a job or not,

whether you have money or not

you always need a roof over your head.

So economy no good, you have no money

you are broke you cannot sell your home 

and take your family and live on the street.

So if no one sells their home and live on the streets

how can home prices go down?

[Ct3833]

4 hours ago, therock said:

I'm beginning this thread so I can continue to discuss matters on a topic that interests me. I know there is a thread with similar content, but it's become a bit toxic, so if the mods don't mind, I'll start one here?

Otherwise go ahead and merge.

Basically we have an economic crisis on us, and internationally things are not doing well either. But in spite of this, property prices seem to be headed northwards and the agents will want to tell you, they won't drop.

But job losses are on the way, and the capital appreciation on property isn't what it used to be and despite what agents try to tout, one must consider all factors rationally, and see if your money is better served elsewhere.

Eg a good benchmark will be the 2.5% that CPF offers.

But property remains enticing because it takes a lot more effort and investigation to find alternatives and not all Singaporeans are that hardworking or familiar with the investment instruments available. 

I wonder what the rest think?

 

Cheers

While CPF provide guaranteed return of 2.5% per annum,  it does not hedge against inflation. Assuming  an annual 3% inflation rate  per year, 10 years later , the principle some in the CPF account would have devalued by at least 30%.  Whereas  a property will follow inflation, the asset value will increase over the years(generally). Rental wise some of the better location unit can fetch rental of about 3% or slightly higher. Our Ministster have already made it clear that importation of TLs is a given, so the rental market is assured to some extent.   Moreover, property price will rise as the demand increases, plus the current low interest rate,  making buying property an investment that will make a lot of sense, this is undisputed  over the last many decades till now.  Economy and job market may be bad, but in the land scarce island like Singapore, there are enough cash rich or even the not so rich, but  daring people who are willing to take a  higher leverage to take the plunge.

[Mkl22]

4 minutes ago, Ct3833 said:

While CPF provide guaranteed return of 2.5% per annum,  it does not hedge against inflation. Assuming  an annual 3% inflation rate  per year, 10 years later , the principle some in the CPF account would have devalued by at least 30%.  Whereas  a property will follow inflation, the asset value will increase over the years(generally). Rental wise some of the better location unit can fetch rental of about 3% or slightly higher. Our Ministster have already made it clear that importation of TLs is a given, so the rental market is assured to some extent.   Moreover, property price will rise as the demand increases, plus the current low interest rate,  making buying property an investment that will make a lot of sense, this is undisputed  over the last many decades till now.  Economy and job market may be bad, but in the land scarce island like Singapore, there are enough cash rich or even the not so rich, but  daring people who are willing to take a  higher leverage to take the plunge.

Well. It also depends on if real wages rise. Don’t really see wages going up that much. 
the main reason why the prices have risen so much over the last decade and half was purely due to the increase in population. 
there only so many units that can be absorbed. Look at China, tons of unoccupied housing. 
the population is still increasing abit at a slower rate. Thus probably the prices will hold or go up. But then who knows what can happen. 
I don’t believe that prices forever will be going up. 

[Freeder]

2 hours ago, therock said:

Ah... this one really riles me..

https://cnalifestyle.channelnewsasia.com/trending/decoding-top-5-property-marketing-cliches-property-ads-12862334

 

To me, "near MRT" is the worst term... it can be a 15min walk and they still call it "near"... 

IMHO, if it's more than 5-6 mins, it's not that near..

 

Near MRT is max 100m..

More than that will be sweat walk to MRT..

[Angcheek]

38 minutes ago, Freeder said:

Near MRT is max 100m..

More than that will be sweat walk to MRT..

That is not Near mrt .... that is Beside the mrt 😂

[therock]

40 minutes ago, Freeder said:

Near MRT is max 100m..

More than that will be sweat walk to MRT..

I'm not sure I want to be that close..

You may feel the rumble and hear all the announcements all day long... 

[Freeder]

1 minute ago, therock said:

I'm not sure I want to be that close..

You may feel the rumble and hear all the announcements all day long... 

That’s for investment unit...

own stay will be seletar area..😅😅

[Freeder]

3 minutes ago, Angcheek said:

That is not Near mrt .... that is Beside the mrt 😂

That’s insai MRT😂😂

[Dp26]

Property will always be favoured as an investment tool I guess for us? 
 

the usage of CPF and also the quantum of loan available makes it enticing for locals. 

whatever investment it is, always have to do your own due diligence I guess, whether property or stocks.. or otherwise. 
 

but I guess the high holding power of locals here also plays a big part sustaining the prices of property here. Don’t be too surprised that there are many ppl out here with high disposable income and savings   
We are also less adverse to renting unlike before? Increases the pool of rental market?
 

and THUMBS UP for the new thread! 

[Roh96]

Thank you for starting a new property thread. It is unfortunate that the other property thread has become a junk place. Camping here for good info and discussion.