Singapore Property Scene Discussion

[Wt_know]

On 1/15/2024 at 7:15 PM, Volvobrick said:

21 married liao got kid. Quickly produce more babies. Singapore got hope! No more aging population with more like them.

you mean the kitties is it? lol

[Stary]

On 1/15/2024 at 6:29 PM, Windwaver said:

Cheap cheap

https://www.tiktok.com/@venuhs/video/7322269046924168449

How we became homeowners at 21

If both are working, has some salary, it is not too difficult to buy a HDB resale with a loan what......

What is so newsworthy about this?

Maybe the story of what make them marry so young is more interesting

Edited January 15, 2024 by Starry

[Volvobrick]

On 1/15/2024 at 7:44 PM, Wt_know said:

you mean the kitties is it? lol

Thought saw a photo of mother and baby... 

[Windwaver]

https://stackedhomes.com/editorial/i-bought-my-first-property-in-my-mid-20s-heres-all-the-mistakes-i-made

I Bought My First Property In My Mid-20s: Here’s All The Mistakes I Made

CX is what Singaporeans might call a “high-flyer”. He owned a car and a condo in his mid-twenties, was a top performer in his company, and managed it all before he became a degree holder. However, his experiences as a young homeowner, who never started on the traditional “HDB route”, weren’t all smooth sailing; and he’s seen the pros as well as the cons of diving into private home ownership at such a young age. Here’s his story: 

Choosing a private property over an HDB flat

CX says his first property was a 500+ sq. ft. one-bedder, which he purchased in 2014. There were a few key factors behind his decision: 

“I come from a big family, so I was living with my parents, both grandparents, and three siblings in the same condo, which was a four-bedder. I had no real privacy, and I didn’t want to wait till I got married or turned 35 to move out. 

Also I was influenced by my immediate manager at work, who was complaining that HDB is all doom and gloom for retirement assets; so I was convinced I wanted something with resale value. 

I also felt that I was privileged, as I had the option of moving back home and renting out my property, if things went bad; so I didn’t want to squander this advantage; and this led me to look into private condos.”

Incidentally, CX’s manager was referring to the decline of HDB resale prices at the time, which started around 2013. This was when the government introduced the Mortgage Servicing Ratio (MSR) and ceased to publish Cash Over Valuation (COV) rates. 

This sent resale flat prices into a steady decline, but they skyrocketed back up after Covid. 

CX also says he backed out twice, before taking the plunge:

“Highline Residences was actually the first one I looked at, which I still regret not buying. I love Tiong Bahru, but I had cold feet when I went over the numbers with the property agent. I was working on commissions so my income was not stable. 

The second time I came close to buying was at The Crest, but I didn’t like the location.”

CX doesn’t want to disclose the address of his unit, he eventually settled on a one-bedder in the Farrer Drive area. This would also allow him to live just a few minutes away from his parent’s home. 

Early mistakes when buying the property

CX says that, in his 20s, he greatly overestimated how “minimalist” his lifestyle would be; and within just two years, his belongings were in literal piles on the floor:

“I thought since I was single, there’s no way I could accumulate as much stuff, so I didn’t care about how small my unit was. But I was younger, I was eager to try out a lot of different things. I had snorkelling stuff, pool cues, books, all on the floors at one point. I really underestimated how quickly things can accumulate, even though I was young and single.” 

CX also made the mistake of not factoring in how much the maintenance would affect his finances in later years:

“I had fewer responsibilities back then, so a few hundred dollars a month seemed fine. 

But now, as I start to contribute to my parents, pay for my dog, have to start saving for my wedding,  I really felt the pinch; and quite a few times in the past few years, I wish I had just stayed with my family.” 

CX is paying close to $300 a month for his unit, despite it just being a one-bedder. 

Perhaps his biggest mistake, however, was “not having any sort of investment strategy.” While he was investment-oriented, CX says that his idea of property investment was simply to “sell it to make a lot of money one day”. 

“I didn’t pay attention to things like cash-on-cash returns, holding periods, rental yields, and so forth. I had a very simplistic view of it, and so I bought without any exit strategy.” 

Life lessons and sacrifices 

The biggest crisis for CX occurred during Covid, when his livelihood almost came to an end: 

“I work on commissions, and during Covid my industry was dead. There was no chance to meet new clients, we had to close sales over Zoom, which I was bad at, and no one was really buying in that economy.”

He estimates that his income was more than halved at the time; and this was when he came to a dire realisation:

“In my mind, I had always assumed if anything goes wrong I can just sell my property. I am still young enough that my parents are working, so worst case scenario I move back home. I thought in that sense, I have more safety than the average homeowner.

It never occurred to me that, in a downturn like Covid, how am I going to sell? And how much can I get?”

CX also considered his old fallback of renting out the unit and moving back home; but with everybody working from home, his packed parents’ home was impossible as a work environment. 

CX was reduced to living paycheque to paycheque for almost two years, and the condo maintenance fees compounded the issue. To rub it in further, CX didn’t receive government aid during the Circuit Breaker: 

“My other colleagues who were living in HDB flats had $1,000 a month, for being self-employed. My address was a condo address, and because of that I didn’t receive help. I still feel it’s very unfair, but that’s how it turned out – and during the whole black period, I regretted more than ever buying a condo.”

After these experiences, CX no longer believes that being young and single makes it somehow “safer” to take on home ownership early. 

“They say more agile, more adaptable, but it’s all nonsense. Even if you have the backup of moving back in with your parents, the financial damage is still there.”

CX estimates that, had he been forced to sell the unit during Covid, he would have incurred losses of close to $75,000. 

A final regret from CX is some missed opportunities, from his 20s:

“Looking at how much I was spending on the house each month, I could have gone overseas maybe twice a year. I could have enjoyed better food, done more snorkelling, hung out with friends. But I sort of missed out on it because I took on bigger loan repayments earlier, so I had to be more controlled with my spending.” 

Future plans for the property, and advice for young homebuyers

CX intends to sell the property and move in with his in-laws for a time, after he gets married. The couple will eventually have to find another home, as his one-bedder is not big enough. 

He says it will likely be another private property, but he is open to considering a resale flat instead. This is where he might reap the benefits of his one-bedder, as the sale proceeds can likely fund a larger flat. 

CX’s advice to young homebuyers is to consider their future financial obligations:

“There’s a period in your 20s to late 20s when your parents are still working, they don’t need your help, and you’re single. You can afford a lot more for yourself. But before you commit to a house, you need to also consider if you can handle the cost when later down the road, you need to contribute to your parents, raise your own family, and so forth. The condo can suddenly feel a lot less affordable.” 

[Throttle2]

On 1/15/2024 at 4:26 PM, 13177 said:

Nowadays it is common to see people setting up a cosy corner outside their flat, esp when their unit is at the far end corner of the corridor which comes with an empty space infront of their main door without sharing with other units. I do not find any big problem if the owner does not inconvenience other people from walking or created fire hazardous.

Sour grapes and rat racers, very common lah….. 99% of singapore lang…  

 

muayhahhahhahhahhah

[inlinesix]

 

[Windwaver]

https://www.straitstimes.com/business/state-land-plots-in-marina-gardens-crescent-media-circle-draw-tepid-bids

State land plots in Marina Gardens Crescent, Media Circle draw tepid bids

SINGAPORE - Two 99-year leasehold government land sites in Marina Gardens Crescent and Media Circle in one-north drew fewer-than-expected bids and land rates that were below those of recent state land tenders, reflecting greater caution among developers stung by several rounds of cooling measures and higher financing costs.

The Marina Gardens Crescent site drew just one bid of $770.5 million, or $984 per square foot per plot ratio (psf ppr), from GuocoLand and two entities of Hong Leong Group Singapore (Intrepid Investments and TID Residential).

This sole bid, according to analysts, was below expectations. It was nearly 30 per cent below that for the neighbouring Marina Gardens Lane site, which was awarded in July 2023 to Chinese developer Kingsford Huray Development and its two partners at $1.03 billion, or $1,402 psf ppr.

The two state land parcels were put on the block to kick-start development in the 45ha Marina South precinct. 

The Media Circle site – the first residential site with commercial at first-storey use in Mediapolis – attracted three bids, with a top bid of $395.3 million or $1,191 psf ppr submitted by a joint venture between Qingjian Realty and China Communications Construction Company.

In comparison, the top land rates submitted for three government land sales (GLS) tenders in November 2023 in Clementi Avenue 1, Pine Grove (Parcel B) and Toa Payoh Lorong 1 were each above $1,200 psf ppr, noted Mr Nicholas Mak, chief research officer of property search portal Mogul.sg.

He said the Marina Gardens Crescent site drew less interest because foreign buyers – who had been a major source of demand for previous city projects – are now sidelined by the punitive additional buyer’s stamp duty (ABSD) of 60 per cent.

Another dampener was increased competition from existing projects and upcoming launches in the city, he added.

Analysts say the tender results also showed developers’ risk aversion towards large and investor-focused sites in undeveloped precincts.

Ms Tricia Song, CBRE’s head of research for Singapore and South-east Asia, said the bid reflects “deteriorating developer sentiment” for city sites that require larger capital outlay and face uncertain demand after the April 2023 round of cooling measures. “Existing city project launches have also been deferred,” she added.

“The breakeven for Marina Gardens Crescent may be around $2,000 psf and $2,100 psf. The selling price (for new homes there) could take a cue from the (future project at the) Marina Gardens Lane site,” she noted.

The Marina Gardens Crescent site can yield 775 residential units and a maximum of 6,000 sq m of commercial space. Up to 30 per cent of total gross floor area can be serviced apartments, and office use, if proposed, shall not exceed 5,000 sq m.

Together with the 790 residential units and up to 8,073 sq ft of commercial space offered by the Marina Gardens Lane site, the two future projects will provide 1,565 new homes in the next four to five years.

Ms Chia Siew Chuin, JLL’s head of residential research for Singapore, said the GuocoLand-Hong Leong consortium has taken another stab at establishing a presence in the emerging growth precinct, having lost out at the previous state land tender in Marina Gardens Lane to Kingsford.

But she added that the potential benefits of being a first mover in offering essential commercial amenities in the Marina South precinct may not outweigh concerns about the white site and prevailing market conditions.

Ms Wong Siew Ying, PropNex’s head of research and content, said it would be interesting to see if the Government will award the site at $984 psf ppr, and whether this meets the reserve price.

For GLS sites, the reserve price is pegged to 85 per cent of the estimated market value as assessed by the Chief Valuer, taking into consideration the proposed land use, site conditions and relevant sales transactions, among other factors, she said.

Meanwhile, the muted interest for the Media Circle site could be because it is not near MRT stations, Ms Chia said. In comparison, two smaller GLS sites in the one-north area – parcels A and B at Slim Barracks Rise – which were awarded at more than $1,200 psf ppr in 2021, benefited from being closer to the Buona Vista and one-north MRT stations.

Nonetheless, developers see the advantages of the Media Circle site, which can yield 355 units. “With growing risks and compressed profit margins, there has been an inclination towards smaller sites. The shorter project timeline and faster sales turnaround allow developers to complete and sell projects more quickly within the stipulated five years to qualify for a 35 per cent ABSD tax remission,” Ms Chia added.

Ms Wong noted that the site could offer developers a first-mover advantage in Media Circle as another nearby GLS plot is slated for long-stay serviced apartments.

ERA Singapore chief executive officer Marcus Chu said the Qingjian and China Communications Construction Company joint venture had unsuccessfully bid for a GLS site at Clementi Avenue 1 in November 2023.

“The consortium’s strong confidence in the location’s potential must have led them to try again to secure a site in District 5,” he said.

“The Media Circle site is also attractive to investors seeking rental income, and wanting to leverage the sizeable tenant pool from one-north where many biomedical and media firms are located.”

Ms Song said the future residential project at Media Circle could launch at between $2,350 psf and $2,400 psf.

 

[Theoldjaffa]

On 1/18/2024 at 8:03 PM, inlinesix said:

 

i chuah tio after seeing the infographic. i tot new covid/tb hotspots

[Theoldjaffa]

On 1/22/2024 at 11:27 AM, Windwaver said:

https://www.straitstimes.com/business/state-land-plots-in-marina-gardens-crescent-media-circle-draw-tepid-bids

State land plots in Marina Gardens Crescent, Media Circle draw tepid bids

SINGAPORE - Two 99-year leasehold government land sites in Marina Gardens Crescent and Media Circle in one-north drew fewer-than-expected bids and land rates that were below those of recent state land tenders, reflecting greater caution among developers stung by several rounds of cooling measures and higher financing costs.

The Marina Gardens Crescent site drew just one bid of $770.5 million, or $984 per square foot per plot ratio (psf ppr), from GuocoLand and two entities of Hong Leong Group Singapore (Intrepid Investments and TID Residential).

This sole bid, according to analysts, was below expectations. It was nearly 30 per cent below that for the neighbouring Marina Gardens Lane site, which was awarded in July 2023 to Chinese developer Kingsford Huray Development and its two partners at $1.03 billion, or $1,402 psf ppr.

The two state land parcels were put on the block to kick-start development in the 45ha Marina South precinct. 

The Media Circle site – the first residential site with commercial at first-storey use in Mediapolis – attracted three bids, with a top bid of $395.3 million or $1,191 psf ppr submitted by a joint venture between Qingjian Realty and China Communications Construction Company.

In comparison, the top land rates submitted for three government land sales (GLS) tenders in November 2023 in Clementi Avenue 1, Pine Grove (Parcel B) and Toa Payoh Lorong 1 were each above $1,200 psf ppr, noted Mr Nicholas Mak, chief research officer of property search portal Mogul.sg.

He said the Marina Gardens Crescent site drew less interest because foreign buyers – who had been a major source of demand for previous city projects – are now sidelined by the punitive additional buyer’s stamp duty (ABSD) of 60 per cent.

Another dampener was increased competition from existing projects and upcoming launches in the city, he added.

Analysts say the tender results also showed developers’ risk aversion towards large and investor-focused sites in undeveloped precincts.

Ms Tricia Song, CBRE’s head of research for Singapore and South-east Asia, said the bid reflects “deteriorating developer sentiment” for city sites that require larger capital outlay and face uncertain demand after the April 2023 round of cooling measures. “Existing city project launches have also been deferred,” she added.

“The breakeven for Marina Gardens Crescent may be around $2,000 psf and $2,100 psf. The selling price (for new homes there) could take a cue from the (future project at the) Marina Gardens Lane site,” she noted.

The Marina Gardens Crescent site can yield 775 residential units and a maximum of 6,000 sq m of commercial space. Up to 30 per cent of total gross floor area can be serviced apartments, and office use, if proposed, shall not exceed 5,000 sq m.

Together with the 790 residential units and up to 8,073 sq ft of commercial space offered by the Marina Gardens Lane site, the two future projects will provide 1,565 new homes in the next four to five years.

Ms Chia Siew Chuin, JLL’s head of residential research for Singapore, said the GuocoLand-Hong Leong consortium has taken another stab at establishing a presence in the emerging growth precinct, having lost out at the previous state land tender in Marina Gardens Lane to Kingsford.

But she added that the potential benefits of being a first mover in offering essential commercial amenities in the Marina South precinct may not outweigh concerns about the white site and prevailing market conditions.

Ms Wong Siew Ying, PropNex’s head of research and content, said it would be interesting to see if the Government will award the site at $984 psf ppr, and whether this meets the reserve price.

For GLS sites, the reserve price is pegged to 85 per cent of the estimated market value as assessed by the Chief Valuer, taking into consideration the proposed land use, site conditions and relevant sales transactions, among other factors, she said.

Meanwhile, the muted interest for the Media Circle site could be because it is not near MRT stations, Ms Chia said. In comparison, two smaller GLS sites in the one-north area – parcels A and B at Slim Barracks Rise – which were awarded at more than $1,200 psf ppr in 2021, benefited from being closer to the Buona Vista and one-north MRT stations.

Nonetheless, developers see the advantages of the Media Circle site, which can yield 355 units. “With growing risks and compressed profit margins, there has been an inclination towards smaller sites. The shorter project timeline and faster sales turnaround allow developers to complete and sell projects more quickly within the stipulated five years to qualify for a 35 per cent ABSD tax remission,” Ms Chia added.

Ms Wong noted that the site could offer developers a first-mover advantage in Media Circle as another nearby GLS plot is slated for long-stay serviced apartments.

ERA Singapore chief executive officer Marcus Chu said the Qingjian and China Communications Construction Company joint venture had unsuccessfully bid for a GLS site at Clementi Avenue 1 in November 2023.

“The consortium’s strong confidence in the location’s potential must have led them to try again to secure a site in District 5,” he said.

“The Media Circle site is also attractive to investors seeking rental income, and wanting to leverage the sizeable tenant pool from one-north where many biomedical and media firms are located.”

Ms Song said the future residential project at Media Circle could launch at between $2,350 psf and $2,400 psf.

 

this is one of those rare property articles where there's no "pent up demand"

 

[Spidey10]

On 1/23/2024 at 11:25 AM, Theoldjaffa said:

this is one of those rare property articles where there's no "pent up demand"

 

crashing soon issit......

[Windwaver]

https://www.straitstimes.com/singapore/housing/first-executive-condo-launch-of-2024-sells-53-of-units

53% of units sold at first executive condo launch of 2024

SINGAPORE – The first executive condominium (EC) launched this year saw more than half of the available units sold over the weekend, with analysts offering mixed assessments of the take-up.

Some said the 53 per cent of units sold at Lumina Grand, launched in Jan 27, shows healthy demand for ECs, while one analyst noted that proportion sold has dropped from the highs of the previous years despite favourable conditions.

City Developments Limited (CDL), developer of the Bukit Batok project, said in a media release that 269 out of 512 units had been sold as at noon on Jan 28, with the three-bedroom premium and four-bedroom units the most popular.

Lumina Grand units are priced from $1.34 million for a three-bedroom to $1.39 million for a three-bedroom premium and $1.63 million for a four-bedroom. A five-bedroom unit at the EC is priced at $2.1 million.

The average launch price was $1,464 per sq ft, with an additional 3 per cent applied to units sold under the deferred payment scheme.

CDL group chief executive officer Sherman Kwek, in a statement, said: “The strong take-up rate for Lumina Grand reflects the keen interest among first-time buyers and HDB upgraders for well located and thoughtfully designed properties.”

In the statement, the property giant noted that only 30 per cent of ECs can be allocated to second-time buyers during the initial launch under current regulations, and that this quota had been reached for Lumina Grand.

Huttons Asia CEO Mark Yip said the demand from second-time buyers was “very strong”.

He noted that the split between first-time and second-time buyers was 43 per cent and 57 per cent.

ERA Singapore CEO Marcus Chu said there was sizeable pent-up demand from qualified buyers for the project as it is likely to be the only EC launch this year.

Mr Chu noted that there is a price gap of 44 per cent between an EC and a newly launched suburban private condominium located outside the central region. This is up from the gap of 29 per cent in 2019, making ECs an attractive option, he added.

He said astute home buyers are also drawn to the potential for ECs to be sold at private property prices, adding that EC owners typically make a gross profit of between $300,000 and $450,000.

Based on EC projects completed since 2015, there were only three unprofitable transactions, he said.

Propnex CEO Ismail Gafoor, meanwhile, said there is pent-up demand for ECs as there was a limited number of unsold ECs in the area. He cited the nearby Altura development being 89 per cent sold as at Jan 20.

“Furthermore, (with the project) being located near the upcoming Tengah new town, where plenty of new HDB flats are being built, some EC buyers may see it as a potential exit plan in the future, by selling their EC units to HDB upgraders eventually,” said Mr Ismail.

However, Mr Nicholas Mak, chief research officer of Mogul.sg, observed that the take-up rates of the most-recent EC project launches have been slipping gradually, with Lumina Grand the lowest among four projects.

In the first weekend of its launch, Copen Grand EC, launched in October 2022, saw 73 per cent of its 639 units sold; Tenet EC, launched in Dec 22, had 72 per cent of its 618 units sold, and Altura EC, launched in August 2023, had 61.1 per cent of its 360 units sold.

Lumina Grand’s lower take-up rate is despite the factors in its favour, said Mr Mak. He cited how the project is likely to be the only EC launched this year and also the low stock of available EC units.

He attributed the falling take-up rate to the rising prices of EC units. The average price of Copen Grand was $1,300 psf, while the average price of Lumina Grand is 12.6 per cent higher, at $1,464 psf after the “early-bird” discount, he said.

Over the same period, the non-landed residential property price index had risen more slowly at 6.9 per cent, he added.

“Hence, the price increase of new EC units has outpaced the prices of the rest of the condominium market,” he said.

“Although ECs are still popular, the housing budgets of home buyers are limited.”

ERA, Huttons and PropNex are the marketing agents for Lumina Grand, along with OrangeTee & Tie.

The 179,000 sq ft development, which consists of 10 12- to 13-storey residential blocks, features unit sizes ranging from 936 sq ft for a three-bedroom flat to 1,496 sq ft for a typical five-bedroom unit.

Located at the junction of Bukit Batok West Avenue 5 and Bukit Batok Road, Lumina Grand has facilities such as a 50m-long lap pool, reading lounges and a kids’ play zone.

The EC is located near the Bukit Gombak MRT station on the North-South Line, as well as the future Tengah Plantation and Tengah Park stations on the upcoming Jurong Region Line.

[Windwaver]

Anything between 50% to 100% is good 

[Dafansu]

On 1/29/2024 at 9:16 AM, Windwaver said:

Anything between 50% to 100% is good 

At $1400psf very good already, just less than 10 years back can easily get at about $800psf at areas like Punggol. 

[Throttle2]

Strong strong, all these property people sure say strong lah…. Muayhhahhahhahhhah

[Theoldjaffa]

On 1/29/2024 at 9:16 AM, Windwaver said:

Anything between 50% to 100% is good 

If got “pent up demand” then the sales should be higher, like >70%
 

property articles are always liddat.. paint rosy figures and hype up the development. 
 

im just curious with a 16k limit, how to afford these prices 😵‍💫

[Windwaver]

On 1/30/2024 at 8:28 AM, Theoldjaffa said:

If got “pent up demand” then the sales should be higher, like >70%
 

property articles are always liddat.. paint rosy figures and hype up the development. 
 

im just curious with a 16k limit, how to afford these prices 😵‍💫

Cash rich, no need loan 

[Throttle2]

On 1/30/2024 at 12:11 PM, Windwaver said:

Cash rich, no need loan 

Which most of these buyers are not. 😁

[Yeshe]

On 1/30/2024 at 8:28 AM, Theoldjaffa said:

If got “pent up demand” then the sales should be higher, like >70%
 

property articles are always liddat.. paint rosy figures and hype up the development. 
 

im just curious with a 16k limit, how to afford these prices 😵‍💫

This one I can never understand also ... Fortunately I don't qualify