Singapore Property Scene Discussion

[Throttle2]

"Never liked how the national press camouflages an advertorial as a news article. Obviously biased in promoting leasehold properties that the property agency has a hidden agenda to promote."

 

well said.....

[inlinesix]

Need to pay money to read it.  No money no need read ads.

If you think it is ads, just skip it la.

[inlinesix]

On 5/25/2024 at 11:12 PM, metalstream said:

"Public housing must equal affordability"

Liu Thai Ker should question why there are  BTO 4 room flats sold by HDB at over SGD600K+.

That's peanuts to the Ministers earning million dollar annual salaries!!! Very affordable indeed!!!🤑

https://www.nytimes.com/2024/05/24/world/asia/singapore-public-housing-urban-planner.html

Land cost too high resulted in grant insufficient to cover the difference.

You need to ask 1G why HDB buy land from SLA at market value.

[Throttle2]

On 5/25/2024 at 11:12 PM, metalstream said:

"Public housing must equal affordability"

Liu Thai Ker should question why there are  BTO 4 room flats sold by HDB at over SGD600K+.

That's peanuts to the Ministers earning million dollar annual salaries!!! Very affordable indeed!!!🤑

https://www.nytimes.com/2024/05/24/world/asia/singapore-public-housing-urban-planner.html

$600k is very affordable .

Dual income starting is at least $8k to $10k Combined.  By the time get married should be easily $12k combined. Means about $150k annual. Dont eat dont spend dont breathe, pay off fully in 4 yrs. (taxes ignored for the purpose of this simple discussion)

 sibei affordable ok…… 

in fact property agent will push these couples to buy condo.  Small one $1.5mil or 10yrs salary.  
sub sub suay.  Really affordable.    Then like hamsters, you’ll continue to run, until you meet your Maker.  
 

yeah! 💪💪👍👍✌️✌️ love it.   😙😙😜😜😂🤣😀

Edited May 25, 2024 by Throttle2

[Wt_know]

thank you for $170K ... huat ah!

still a bit confuse leh ...

lao peh lao ma ... "buy or invest a property for daughter" because love her (wink wink) ...

give her 99% share ... how come it's wrong/illegal?

cannot explain like that to iras meh?  

Edited May 26, 2024 by Wt_know

[Wt_know]

99-1 for 2 properties ...

oops ... I WILL DO IT AGAIN ... huat ah !

Jane must look for this agent  

 

Edited May 26, 2024 by Wt_know

[macrosszero]

On 5/24/2024 at 11:02 AM, metalstream said:

Never liked how the national press camouflages an advertorial as a news article. Obviously biased in promoting leasehold properties that the property agency has a hidden agenda to promote.

 https://www.straitstimes.com/business/invest/why-leasehold-is-becoming-just-as-desirable-as-freehold

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The allure of owning a property that can be held indefinitely and passed down to future generations is undeniable. Freehold condominium units embody this lasting value, making them more preferable than leasehold properties. This is particularly true for investors who value long-term stability and financial security.

Given the strong positive perception associated with freehold properties, some buyers are willing to pay a price premium of up to 20 per cent for such homes. However, the availability of freehold condos has been dwindling as many new condos are currently developed on leasehold government land.

Many of these new land parcels offer excellent connectivity, being located next to an MRT station or having unique features such as integration with a shopping mall, proximity to a popular school, or a wide range of condominium facilities to make up for the shorter leases.

As home buyers prioritise convenience and accessibility to essential amenities, many are willing to give up the freehold status for a leasehold property. This shift in buyer preferences raises the question of whether leasehold properties will become more popular than freehold properties and if their values will eventually catch up with the latter.

To answer these questions, we conducted a data study to compare the prices and profitability of freehold and leasehold condos.

Smaller price gap

The price gap between freehold and leasehold condos has significantly narrowed over the past decade. According to data from the Urban Redevelopment Authority (URA), the islandwide median price of freehold condos (excluding executive condos) was $1,495 per sq ft (psf) in 2013, which is 20 per cent higher than the median price of leasehold condos at $1,246 psf.

However, the price gap has since decreased to 4.7 per cent, with the median price of freehold condos at $1,973 psf and leasehold condos at $1,885 psf in 2023. The narrowing price gap may be attributed to the values of leasehold condos surging by 51.3 per cent over the past decade, compared with a 32 per cent increase for freehold condos.

These findings confirm that buyers placed greater importance on and were willing to pay a higher price for convenience, lifestyle and amenities rather than solely focusing on the tenure of a property.

Freehold in the prime area

In 2013, freehold condos were consistently more expensive than leasehold counterparts across the island. The price difference was most significant in the suburban outside of central region (OCR) at 17.2 per cent, followed by the prime core central region (CCR) at 13.7 per cent, and the city fringe rest of central region (RCR) at 3.7 per cent.

In recent years, there has been a significant trend reversal. The median price of leasehold condos in the city fringe RCR is $2,310 psf in 2023, which is 28 per cent higher than the $1,805 psf for freehold condos. Similarly, in the suburban OCR, the median price of leasehold properties is $1,585 psf, which is 5.1 per cent higher than freehold condos at $1,508 psf in 2023.

However, the price gap between leasehold and freehold condominiums in the prime CCR has increased from 13.7 per cent in 2013 to 19.5 per cent in 2023. The findings suggest that affluent buyers were more willing to pay a premium for freehold properties in prime locations, possibly due to their belief that the limited availability of freehold condos justifies the high prices.

Prices for leasehold condos rising

The notable escalation in leasehold condo prices within the RCR can be due to a substantial increase in the sale of condos valued at $3 million or more. In 2013, 130 units were sold in the RCR, surging sharply to 537 units by 2023. Conversely, the sale of freehold condos at this price level saw a more modest rise from 65 units in 2013 to 249 units in 2023.

There were many leasehold condos transacted for at least S$3 million in 2023, such as The Reserve Residences, One Pearl Bank, Grand Dunman, Liv@MB, Riviere, Piccadilly Grand, Tembusu Grand, Pinetree Hill, Blossoms By The Park, Reflections at Keppel Bay, The Reef at King’s Dock and Corals at Keppel Bay.

In the suburbs, the number of leasehold condos sold for at least $2 million in the OCR has similarly jumped from 108 units in 2013 to 950 units in 2023, while freehold condos rose more moderately from 185 units to 347 units over the same period. The data indicates that leasehold condos in the suburbs and city fringes have outperformed their freehold counterparts in both pricing and demand.

We conducted a profitability study and found that leasehold condos generally have a higher chance of yielding profits, at 92.6 per cent, compared with freehold properties, which stand at 69.1 per cent. This could be due to buyers paying more for freehold condos, affecting their profitability.

The study calculated individual units’ gross gains and losses based on sale prices alone by matching the URA’s Realis new sales caveats lodged from 2013 to the resale caveats of the same units up to April 2024.

The data indicates that 95.6 per cent and 92.6 per cent of leasehold condos in the city fringe and suburban areas were profitable, compared with 67.1 per cent and 77.3 per cent for freehold condos in the same locations. In absolute terms, the average gross profits from leasehold condos are higher, with $214,676 in the city fringe and $192,882 in the suburbs, compared with freehold condos, which have profits of $123,348 in the city fringe and $130,526 in the suburbs.

In prime locations, leasehold condos were similarly more profitable at 73.1 per cent, compared with 57.7 per cent for freehold condos. However, freehold condos in the CCR yield higher profits in absolute dollars at $402,321 versus $290,410 for a leasehold condo.

Conclusion

The value of leasehold properties is expected to continue rising in comparison with freehold condos, particularly as the Government releases more prime land through government land sales in the city fringes and suburbs.

This trend is further supported by the fact that about 80 per cent of the population lives in leasehold public housing flats, and many individuals who eventually invest in a private property typically start with an HDB flat, making them more comfortable with the idea of owning a leasehold condo.

Nevertheless, our data study indicates that freehold condos located in prime areas generally yield higher profits. Despite the increasing demand for leasehold properties, wealthy individuals may still be willing to pay a premium for freehold properties due to their perceived long-term value and ownership benefits.

Moreover, for those seeking stability without concerns about the property tenure ending, freehold properties will continue to be a viable and attractive option.

The writer is the chief researcher and strategist of the OrangeTee Group.

You expect a hungry lion to become vegetarian just like you expect a property company’s employee to tell you not to buy property?

Everything also can buy! 

Huat ah!

When everyone is making money, who is truly rich, and who pays the price for runaway inflation in the end?

1-series, Balenciaga t-shirts, shoebox leasehold condos, have they really arrived, or have they wrapped the noose around their necks one more time?

Valuation is transient, but the debt that you take on sticks to you

[Wt_know]

father-son ... no $$$ no talk 

i can only say son sibei smart .... 牛 逼   

Edited May 26, 2024 by Wt_know

[Throttle2]

On 5/26/2024 at 10:46 AM, Wt_know said:

thank you for $170K ... huat ah!

still a bit confuse leh ...

lao peh lao ma ... "buy or invest a property for daughter" because love her (wink wink) ...

give her 99% share ... how come it's wrong/illegal?

cannot explain like that to iras meh?  

Shiok ah.  
keh kiang lor.

retrenchment package a miserable $200k , instead of being down to earth go and play tycoon

😂🤣

[Throttle2]

On 5/26/2024 at 11:24 AM, Wt_know said:

father-son ... no $$$ no talk 

i can only say sibei smart .... 牛 逼   

As i said time and time and time again, these absd shit and cooling measures are poorly thought out and leads to social ills.  This is a fine example.

am sure there will be more

[inlinesix]

On 5/26/2024 at 10:46 AM, Wt_know said:

thank you for $170K ... huat ah!

still a bit confuse leh ...

lao peh lao ma ... "buy or invest a property for daughter" because love her (wink wink) ...

give her 99% share ... how come it's wrong/illegal?

cannot explain like that to iras meh?  

Really stupid 🤦🏻‍♀️

[Wt_know]

On 5/26/2024 at 11:50 AM, inlinesix said:

Really stupid 🤦🏻‍♀️

not sure kena "misled" by agent ...  

if i am "convinced" can save $50K, $100K, simi sai .... i might be tempted too leh ...  

 

Edited May 26, 2024 by Wt_know

[Dafansu]

On 5/26/2024 at 10:47 AM, Wt_know said:

99-1 for 2 properties ...

oops ... I WILL DO IT AGAIN ... huat ah !

Jane must look for this agent  

 

Same person? 
 

https://mothership.sg/2023/10/3-spore-registered-mclaren-supercars-crash-johor/

Edited May 26, 2024 by Dafansu

[macrosszero]

On 5/26/2024 at 1:00 PM, Dafansu said:

Same person? 
 

https://mothership.sg/2023/10/3-spore-registered-mclaren-supercars-crash-johor/

No wonder can buy McLaren

[Sturtles]

On 5/26/2024 at 11:44 AM, Throttle2 said:

As i said time and time and time again, these absd shit and cooling measures are poorly thought out and leads to social ills.  This is a fine example.

am sure there will be more

99:1 is legal

The penalty is metted on intention 

Doing something legal and yet penalised is fault of the legislation

 

 

[Wt_know]

On 5/26/2024 at 1:00 PM, Dafansu said:

Same person? 

https://mothership.sg/2023/10/3-spore-registered-mclaren-supercars-crash-johor/

yes ... at 32 ... drive Mclaren liao ... but he need to look for new insurer liao ...  

https://www.straitstimes.com/singapore/transport/motor-insurer-aig-stops-insuring-mclarens-driven-to-malaysia

Edited May 26, 2024 by Wt_know

[Throttle2]

On 5/26/2024 at 2:07 PM, Sturtles said:

99:1 is legal

The penalty is metted on intention 

Doing something legal and yet penalised is fault of the legislation

 

 

Yeah ok
I didnt say it was illegal

i said the cooling measures suck as they lead people to make decisions to go around it thereby causing social ills

but i am happy that people dont get away.  Heh heh heh

[Sturtles]

On 5/26/2024 at 3:20 PM, Throttle2 said:

Yeah ok
I didnt say it was illegal

i said the cooling measures suck as they lead people to make decisions to go around it thereby causing social ills

but i am happy that people dont get away.  Heh heh heh

Definitely, and I agree with you perfectly.

Regulations poorly thought out and yet implemented makes it complicated for the concerned to abide by.

It's good if a specific party in the transaction is responsible for ensuring the smooth works.

For example, it is perfectly legal for opioids to be dispensed, but only under specific conditions by an approved practitioner.

It would be illegal if opioids are dispensed out of the conditions.

The agency in question failed to be thorough in their planning and implementation and that is the key concern, as it has a knock on effect where their future quality of work is called into question.