Page 2 of 3 FirstFirst 123 LastLast
Results 11 to 20 of 24

Thread: Is freehold property better than 99-year?

  1. #11

    Default

    the writer is definitely reading this forum

    there was a thread on 99 vs FH last week ... and now this article ..

  2. #12

    Default

    I think freehold can ask for more money during enbloc than a 'dying less than 99yrs' unit.

    my fren is pondering if he sld sell or keep his Bayshore since its already more than 20yrs its 99yr lease. wait longer and u cant sell it good, wait for enbloc dunno when it will happen.

    that's the problem u will face when u have a 99yo property that has like 80yrs or lesser to go.

  3. #13
    Join Date
    Apr 2012
    Posts
    1,533

    Default

    There are some never-say-die LH which are still holding strong to their prices ... Both projects are 99 yrs lease commencing from 1982 ... more than 30yrs gone

    BAYSHORE PARK 1,400,000 1,076 01 to 05 1,301psf Jan-13
    MANDARIN GARDEN CONDOMINIUM 1,100,000 829 11 to 15 1,327psf Mar-13
    MANDARIN GARDEN CONDOMINIUM 1,350,000 1,001 11 to 15 1,349psf Jun-13
    MANDARIN GARDEN CONDOMINIUM 1,150,000 829 16 to 20 1,388psf Jul-13

  4. #14

    Default

    Quote Originally Posted by zeamybro View Post
    There are some never-say-die LH which are still holding strong to their prices ... Both projects are 99 yrs lease commencing from 1982 ... more than 30yrs gone

    BAYSHORE PARK 1,400,000 1,076 01 to 05 1,301psf Jan-13
    MANDARIN GARDEN CONDOMINIUM 1,100,000 829 11 to 15 1,327psf Mar-13
    MANDARIN GARDEN CONDOMINIUM 1,350,000 1,001 11 to 15 1,349psf Jun-13
    MANDARIN GARDEN CONDOMINIUM 1,150,000 829 16 to 20 1,388psf Jul-13


    and that Horizontal Tower ...hehehe

  5. #15

    Default

    Quote Originally Posted by zeamybro View Post
    There are some never-say-die LH which are still holding strong to their prices ... Both projects are 99 yrs lease commencing from 1982 ... more than 30yrs gone

    BAYSHORE PARK 1,400,000 1,076 01 to 05 1,301psf Jan-13
    MANDARIN GARDEN CONDOMINIUM 1,100,000 829 11 to 15 1,327psf Mar-13
    MANDARIN GARDEN CONDOMINIUM 1,350,000 1,001 11 to 15 1,349psf Jun-13
    MANDARIN GARDEN CONDOMINIUM 1,150,000 829 16 to 20 1,388psf Jul-13
    Let's see what happens when the market turns bear 3 years down the road.
    When you have eliminate the impossible, whatever remains, however improbable, must be the truth

  6. #16

    Default

    imo, SG is small, FH and LH usually can't last till 50 years before it get re-development. eg. Payar Lebar will be re-developed, all the plot ratio in the region will be increase. enbloc chances on 99LH developments are high and thus the values can't depreciated much.

    second, Gov seem to put in more effort to develop those LH places.

    if FH and LH is side-by-side, and FH has <8% premium, i would think FH is the better choice.

  7. #17

    Default

    Quote Originally Posted by NorthernStar View Post
    imo, SG is small, FH and LH usually can't last till 50 years before it get re-development. eg. Payar Lebar will be re-developed, all the plot ratio in the region will be increase. enbloc chances on 99LH developments are high and thus the values can't depreciated much.

    second, Gov seem to put in more effort to develop those LH places.

    if FH and LH is side-by-side, and FH has <8% premium, i would think FH is the better choice.

    When FH and LH are places side by side, FH will be more valuable for sure, but you will also have to pay a premium to acquire the FH project. So there is nothing surprising that FH project are sold higher than LH.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

  8. #18
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    8,036

    Default

    Sharing by xxx on handling objection on leasehold vs freehold.

    I have one buyer who bought from me a freehold project 5 years ago during new launch. Today, 5 years down the road, the price of this freehold project is still about the same. In other words, there is not much appreciation. (Urban Residences)

    On the other hand, I have another buyer who bought High Park which is a 99 years leasehold mega project, also at new launch. Today, 3 years down the road, even before it TOP, the value has gone up by $200k to $300k.

    If you were my buyer, which one would you prefer to have bought? The freehold or the leasehold?

    Many people I speak to cannot understand why leasehold properties appreciate faster than freehold properties. Let me explain using a simple illustration.

    If you have a grenade in one hand and a time-bomb in another, which will you want to throw first? Yes, of course you would throw the time-bomb first because you don’t know when it will go off. Whereas as for the grenade, it will not go off unless you trigger it. A 99 year leasehold property is just like the time bomb, and a freehold property is like the grenade. So many people who buy 99 yr leasehold project will dispose of the property.

    Would you agree with me that most people who buy freehold want to hold it forever? In fact, based on the past Comparative Market Analysis, there may only be one transaction in a freehold development in a year or even in a few years. If this is the case, how will the price go up? On the other hand, for a leasehold property, most buyers buy with the intention to sell, just depending on when they will sell. So within one year, there are multiple transactions and so the price can inch up because every seller wants to close higher than the previous deal.

    Perhaps you want to buy freehold property because you hope to leave it to your next generations. Your desire to leave a legacy for your children is admirable but the truth is would the younger generation really want to live in an old house together forever and ever? So am I right to say that in the end, they would choose to sell it and split the money? By the time they sell it, the potential upside of this freehold property may most likely be lower than a leasehold property. In fact, we just had a colleague who served a pair of siblings who had inherited a property from their parents. The brothers chose to sell the old property and bought 3 units in our development.

    After listening to my sharing, do you still think freehold is better than leasehold?
    Last edited by Arcachon; 7th October 2018 at 07:01 PM.

  9. #19
    Join Date
    Mar 2009
    Posts
    10,799

    Default

    If both hold for 99 years, the 99-years leasehold property has a value of $0!
    While the freehold property would have increased with inflation!
    How can 99-years leasehold property has higher value than freehold property by the time you sell, say 30 years later (let alone 99 years later)?!
    If agent is going to admit that freehold property is better than 99-years leasehold, then they can go eat dust liao because very few people going to buy 99-years leasehold (which make up >95% of all properties in Singapore) and there will be NO TRANSACTION! And they have $0 COMMISSION!


    Quote Originally Posted by Arcachon View Post
    Sharing by xxx on handling objection on leasehold vs freehold.

    I have one buyer who bought from me a freehold project 5 years ago during new launch. Today, 5 years down the road, the price of this freehold project is still about the same. In other words, there is not much appreciation. (Urban Residences)

    On the other hand, I have another buyer who bought High Park which is a 99 years leasehold mega project, also at new launch. Today, 3 years down the road, even before it TOP, the value has gone up by $200k to $300k.

    If you were my buyer, which one would you prefer to have bought? The freehold or the leasehold?

    Many people I speak to cannot understand why leasehold properties appreciate faster than freehold properties. Let me explain using a simple illustration.

    If you have a grenade in one hand and a time-bomb in another, which will you want to throw first? Yes, of course you would throw the time-bomb first because you donít know when it will go off. Whereas as for the grenade, it will not go off unless you trigger it. A 99 year leasehold property is just like the time bomb, and a freehold property is like the grenade. So many people who buy 99 yr leasehold project will dispose of the property.

    Would you agree with me that most people who buy freehold want to hold it forever? In fact, based on the past Comparative Market Analysis, there may only be one transaction in a freehold development in a year or even in a few years. If this is the case, how will the price go up? On the other hand, for a leasehold property, most buyers buy with the intention to sell, just depending on when they will sell. So within one year, there are multiple transactions and so the price can inch up because every seller wants to close higher than the previous deal.

    Perhaps you want to buy freehold property because you hope to leave it to your next generations. Your desire to leave a legacy for your children is admirable but the truth is would the younger generation really want to live in an old house together forever and ever? So am I right to say that in the end, they would choose to sell it and split the money? By the time they sell it, the potential upside of this freehold property may most likely be lower than a leasehold property. In fact, we just had a colleague who served a pair of siblings who had inherited a property from their parents. The brothers chose to sell the old property and bought 3 units in our development.

    After listening to my sharing, do you still think freehold is better than leasehold?

  10. #20

    Default

    Quote Originally Posted by teddybear View Post
    If both hold for 99 years, the 99-years leasehold property has a value of $0!
    While the freehold property would have increased with inflation!
    How can 99-years leasehold property has higher value than freehold property by the time you sell, say 30 years later (let alone 99 years later)?!
    If agent is going to admit that freehold property is better than 99-years leasehold, then they can go eat dust liao because very few people going to buy 99-years leasehold (which make up >95% of all properties in Singapore) and there will be NO TRANSACTION! And they have $0 COMMISSION!
    You are right, regardless of what others tell you. If you own a 99-year leasehold property, you are just a lessee, not an owner. If you stay in an HDB apartment, you are not even a lessee. You are just a renter. Back in 2010, a whole bunch of 99-year leasehold condos were launched in the west coast area at $1300-$1400 psf, including the vision, which was LKS's pet project. Now all these projects are underwater, while those with 999-year tenure are selling at $200 psf or more higher.

    It is just dumb for some to say leasehold properties are equally good. They can be used by only one generation, while freehold properties can be used by hundreds of generations.

    It is incorrect to say Singapore has the highest home ownership in the world. What most Singaporeans have is not ownership, but rather the right to use the property for a limited amount of time, 99 years. That is leasehold.
    Last edited by stalingrad; 8th October 2018 at 02:22 AM.

Page 2 of 3 FirstFirst 123 LastLast

Posting Permissions