Buy oredi stucked for at least 4 years due to SSD. Say it takes 2 yrs to build, the owners need to rent out for the next 2 yrs to avoid SSD. At this kinda psf, rental yield is going to be low unless rental goes up.
Rental can only go up if everyone has the same back bone, ie die die don't take low rental offers and stick high across the board.
In reality, there will always be some market spoilers who cannot tahan and want to rent out low to keep finances down. then the rest will follow.
Rental price war begins from there. Worst still, the nearby older apartments brings in more competition as they can rent out at lower price (since they bought low).
I hardly see much upside for the newer properties in the CCR and RCR nowadays especially when they bought at historical highs, unless of cos, there is an increased influx of foreigners, then demand for housing will rise again.
However, the rise of the OCR is coming given the mass market HDB has been reporting good resale prices. With the support of rising OCR prices, once again, RCR and CCR prices will ride on the tide and go higher again.
One wave brings forth another, huat ah!
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Originally Posted by phantom_opera
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