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Thread: Landed properties still in hot demand

  1. #1
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    Default Landed properties still in hot demand

    Landed properties still in hot demand

    Straits Times: Sat, Jul 28
    LANDED home prices moved up a notch in the second quarter as demand for the pricey properties stayed buoyant.

    Values increased 0.4 per cent from the previous three months, according to the Urban Redevelopment Authority (URA) index out yesterday.

    Terraced homes showed the largest increase at 1.2 per cent, followed by semi-detached at 0.6 per cent, while detached homes declined by 0.4 per cent.

    Property consultants noted that landed home prices have outperformed those of private flats since the third quarter of 2010.

    Over the last seven years, prices of such homes have doubled, said Knight Frank research head Png Poh Soon. They are perceived as better investment 'given the limited supply of landed properties in land-scarce Singapore with a growing population, rising affluence of local families and influx of new wealthy citizens'.

    One example of the robust sector can be found at Haus@Seran- goon Garden where buyers have snapped up 39 out of 50 landed houses released in just two weeks.

    The two-storey homes - with an attic and basement - developed by City Developments and Hong Realty do not come cheap. A 1,615 sq ft intermediate terraced unit goes for at least $2.4 million while at least $2.8 million is needed for a 2,284 sq ft corner home.

    Mr Png noted that landed prices have 'risen substantially' since the second quarter of 2009, rising nearly 80 per cent by the second quarter this year.

    Terraced homes had the highest price increase of 84 per cent over that three-year period.

    Detached house prices were up 83 per cent while semi-detached home prices rose 71 per cent.

    Terraced homes in the west - favoured for its lower absolute prices - have risen 97 per cent in the past three years while those in the east and north-east were up 89 per cent, Mr Png said.

    'Demand for terraced homes has increased along with rising mass affluence of local buyers, who upgrade their homes for larger living spaces... and to capitalise on the current low favourable interest rates,' said Mr Png.

    Savills Singapore data reveals a similar rosy picture. Research head Alan Cheong said that over the last decade, landed prices have grown at an average of 7 per cent a year, exceeding the increases for apartments and condos.

    R'ST Research director Ong Kah Seng pointed to a 20 per cent dip in prices between July 2008 and June 2009 but they have picked up at least 70 per cent since. He cited a 1,701 sq ft terraced house in Frankel Estate that was sold for $2.9 million in March, well up on the $1.55 million it went for last year.

    Consultants said demand for landed properties is expected to stay resilient.

    'The outlook is excellent... As more private properties are derived from government land sales, the limited pool of freehold landed properties find their share of the total housing stock shrink over time,' Mr Cheong said. It 'pays for upgraders to aspire to move into this type of housing' as the relatively quick capital gains 'will make it a superior hedge against not only inflation but also against social-class stagnation'.

    But Mr Ong said well-heeled buyers may look to non-landed homes in prime locations for their better rental yields and demand.

    Property investor Magdalene Lee, 54, bought a house at Haus@Serangoon Garden for about $2.4 million on the first day of its launch. 'I thought the price was reasonable, and within my budget... It works out to less than $700 per sq ft, cheaper than some condos asking for $1,000 psf,' she said. 'It'll also be easy to rent out because it's near international schools, in a new neighbourhood but established residential area.'

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  2. #2
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    It was amazing when I saw the trend of the increase in $psf on the new landed properties section of the square foot.com site. Most landed properties have double in $psf in last 10 years.

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    5million people and FOREVER only 70000 LANDED properties...what do yu expect....it will NEVER EVER EVER drop....

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    What are people waiting for?
    Quote Originally Posted by radha08
    5million people and FOREVER only 70000 LANDED properties...what do yu expect....it will NEVER EVER EVER drop....

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    Not a matter of demand but supply. Becos' hardly anyone wants to sell off their good ones. When I search the ads, the bulk are clusterhouses, leasehold or ones in lousy locales.

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    Who will want to sell off their good mines?

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    Quote Originally Posted by proper-t
    Not a matter of demand but supply. Becos' hardly anyone wants to sell off their good ones. When I search the ads, the bulk are clusterhouses, leasehold or ones in lousy locales.
    U sure u search under the right country...there is a lot....scare no money only.

    Under our limited situation, no location is lousy....

    If u look carefully into those transactions, there is no link of profitability to LH or FH...it is all about timing

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    I will agree to that!! Its the "no money" factor. All prime locations are asking futuristic prices. Some of them even beat the nearby condo psf.
    Just have to wait and keep looking out for good deals. Its a learning process so you wont miss the RIGHT one when it comes.

    Quote Originally Posted by lajia
    U sure u search under the right country...there is a lot....scare no money only.

    Under our limited situation, no location is lousy....

    If u look carefully into those transactions, there is no link of profitability to LH or FH...it is all about timing

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    I think there is some link... there are some LH landed that are less than 50 years lease remaining and those are dropping in prices...

    Quote Originally Posted by lajia
    U sure u search under the right country...there is a lot....scare no money only.

    Under our limited situation, no location is lousy....

    If u look carefully into those transactions, there is no link of profitability to LH or FH...it is all about timing

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    Quote Originally Posted by howgozit
    I think there is some link... there are some LH landed that are less than 50 years lease remaining and those are dropping in prices...
    Where is the link to profitability of LH or FH?? if it is too old, don't buy...and if u prepare to stay there for so long, so be it. It still worth something...

    Or put it this way, if u buy a FH landed in 1997 and expect to make profit in 2003, possible? FH or LH is the same.....

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    I humbly disagree....

    For landed, FH(or LH999) or LH99(or less) big big difference

    Too old don't buy?.... you can say that for LH but it is no difference if Landed property is FH or 999.

    For landed FH(or LH999) and LH definitely not the same.... far from it.


    Quote Originally Posted by lajia
    Where is the link to profitability of LH or FH?? if it is too old, don't buy...and if u prepare to stay there for so long, so be it. It still worth something...

    Or put it this way, if u buy a FH landed in 1997 and expect to make profit in 2003, possible? FH or LH is the same.....

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    Quote Originally Posted by howgozit
    I humbly disagree...

    Too old don't buy?.... you can say that for LH but it is no difference if Landed property is FH or 999.
    for discussion sake, i'm talking about profitability link to it, not saying there is no diff at all.

    this is the only reason why FH command certain premium above their LH in the same location. isnt it?

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    It is all about timing, if u buy at market low, whether u r leasehold, freehold, hdb, condo, all make money. The question is which house type makes the most return?

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    Is there any website that compares landed pricing across years. Did the prices really drop when times were bad or did it stay flat.
    HDB and condo will move down, but not sure of landed.

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    Look at square foot.com
    Quote Originally Posted by Santro
    Is there any website that compares landed pricing across years. Did the prices really drop when times were bad or did it stay flat.
    HDB and condo will move down, but not sure of landed.

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    Thanks Bro!!
    From what I see, Landed tends to remain flat during bad times though there are some ups and downs during the period.
    Since govt is doing so much for improving demand of HDB and condos, wonder if they would do anything to satisfy the demand of landed too

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    Quote Originally Posted by Santro
    Thanks Bro!!
    From what I see, Landed tends to remain flat during bad times though there are some ups and downs during the period.
    Since govt is doing so much for improving demand of HDB and condos, wonder if they would do anything to satisfy the demand of landed too
    yes you are right, i also did some research and just pick a few landed location and then see from the transactions since 1997 for eg, there are some off cases but shouldnt take it as average. In general, the price will dip a bit in bad times or flat...but if the development is condo title which foreigner can buy, then it might be different. I tend to think that prices will fluctuate more with more foreigner ownership in bad times...i could be wrong.

    demand as in what?? demand for more carpark?? or demand for more spaces for landed development??
    Last edited by lajia; 30-07-12 at 10:33.

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    More space for landed development lah..carpark is a permanent issue for landed, mainly those who own more than one car or should I say whose neighbours own more that 1 car and start parking outside your house.
    Anyways, I am still looking for a landed property that fits my requirements and budget.
    Quote Originally Posted by lajia
    yes you are right, i also did some research and just pick a few landed location and then see from the transactions since 1997 for eg, there are some off cases but shouldnt take it as average. In general, the price will dip a bit in bad times or flat...but if the development is condo title which foreigner can buy, then it might be different. I tend to think that prices will fluctuate more with more foreigner ownership in bad times...i could be wrong.

    demand as in what?? demand for more carpark?? or demand for more spaces for landed development??

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    Quote Originally Posted by Santro
    Is there any website that compares landed pricing across years. Did the prices really drop when times were bad or did it stay flat.
    HDB and condo will move down, but not sure of landed.
    The attached pic sez it all...in recent yrs, landed dropped less than non-landed in downturns but rose faster than non-landed in upturn..




    Quote Originally Posted by Santro
    More space for landed development lah..carpark is a permanent issue for landed, mainly those who own more than one car or should I say whose neighbours own more that 1 car and start parking outside your house.
    Anyways, I am still looking for a landed property that fits my requirements and budget.
    The govt rarely release land for landed housing and it will be 99yrs leashold. If any are released, it will probably be for cluster housing as developers will want to squeeze as much efficiency out of the plot as possible.

    There is almost NO new supply of freehold/999 yr landed. If any do come about, it will be from subdivision of bungalow plots or amalgation of semi-d or terraces. A lot of them are cluster housing. More often than not, you will find the stock decreasing because in most cases, the plots of landed housing will be demolished and used to build condos or apts instead.
    Last edited by proper-t; 02-08-12 at 10:53.

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    Wa.. from the graph.. it really looks like we should be going negative next year onwards hor..

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    Not for landed.. but will affect in some ways..

    Can you imagine the property agent heavyweights have to start promoting their developments.

    Just received from sms...
    Propnex CEO will be talking abt investing in blue chip properties at Bartley residences on sat and sunday.

    What type of environment will you need to mobilize the heavyweights?

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    Not if popn growth and the slump in europe continues. One of my ex-co runs a program to hire experienced staff on annual basis. Usually, its a mix of M'sians/china candidates but this time around, we have germans and europeans even who were selected. Looks like a lot are flocking to SG for employment opportunites. All these people will deifinitely have to find accomodation somewhere.

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