MM Market Trend from 2016 onwards?

[Ringo33]

the highrise mm generally are more expensive thus generating lower rental yield compared to the low rise mm which are less expensive.
No reason why high rise mm are less popular than low rise.
In time to come, high rise mm will be even more popular when altez, skysuites, devonshire residences, spottiswoode etc.. have top.

Buyer pays the premium, tenant doesnt necessary so.

[fiat500]

Buyer pays the premium, tenant doesnt necessary so.

That's what i meant! Low rental yield doesn't mean it's not popular..

[Ringo33]

That's what i meant! Low rental yield doesn't mean it's not popular..

if its popular, the rental yield will be high because there will be many tenants competing for it. basic supply and demand

[irisng]

If for me, I will choose middle floor, not too high and not too low.

[fiat500]

if its popular, the rental yield will be high because there will be many tenants competing for it. basic supply and demand

Any examples to substantiate your statement?

[DC33_2008]

MM in places with lots of HDB flats in close proximity will face fierce competition. Same rent but can get a larger unit.

Where do you think are the good and bad locations for MM?

[Ringo33]

Any examples to substantiate your statement?

If you are saying that higher floor MM are more popular then there is no reason why tenant are not willing to pay a premium for higher floor.

This is basic law of supply and demand in a free market, there is nothing to substantiate.

[Ringo33]

MM in places with lots of HDB flats in close proximity will face fierce competition. Same rent but can get a larger unit.

People who are willing to pay more than $2500 per month to rent a Mickey Mouse apartment, are not those who are looking for size. Its the lifestyle that they are after.

What you say about HDB are more relevant to larger apartment such as 2 to 3 bedder because they are both comparable in size. Then again, people are paying a premium for condo because of lifestyle not space.

[fiat500]

If you are saying that higher floor MM are more popular then there is no reason why tenant are not willing to pay a premium for higher floor.

This is basic law of supply and demand in a free market, there is nothing to substantiate.

Higher floor doesn't mean the rental is substantially higher.
At most it's only marginally higher if not it can be on par with lower floor unit.
Main difference is higher floor unit will be rented out faster same facing same interior condition.
Higher floor is still more popular ultimately!

[astroboy8681]

Higher floor doesn't mean the rental is substantially higher.
At most it's only marginally higher if not it can be on par with lower floor unit.
Main difference is higher floor unit will be rented out faster same facing same interior condition.
Higher floor is still more popular ultimately!

don't bother about him because he has landed dreams... he's talking nonsensically down on landed hoping to land one but as we all know he probably has nothing but a good set of googling skills, period.

hence he cannot comprehend on rental of high vs mid vs low floor theorem...

[fiat500]

don't bother about him because he has landed dreams... he's talking nonsensically down on landed hoping to land one but as we all know he probably has nothing but a good set of googling skills, period.

hence he cannot comprehend on rental of high vs mid vs low floor theorem...

Ya, true..

[Ringo33]

Higher floor doesn't mean the rental is substantially higher.
At most it's only marginally higher if not it can be on par with lower floor unit.
Main difference is higher floor unit will be rented out faster same facing same interior condition.
Higher floor is still more popular ultimately!

Which also mean owner of higher floor units are willing to accept lower rental yield to secure tenant. And if lower floor units are willing to accept similar rental yield, their units will also fly off the shelf.

So as an investor for MM looking for rental yield, will it better to buy low or high rise MM?

[fiat500]

[astroboy8681]

[DC33_2008]

There is another dimension which is the profile of the tenants as it will dictates the rental price. There is a good correlation between salary and industry. There is a varying degree of lifestyle: Great, good or mediocre lifestyle.

People who are willing to pay more than $2500 per month to rent a Mickey Mouse apartment, are not those who are looking for size. Its the lifestyle that they are after.

What you say about HDB are more relevant to larger apartment such as 2 to 3 bedder because they are both comparable in size. Then again, people are paying a premium for condo because of lifestyle not space.

[Ringo33]

There is another dimension which is the profile of the tenants as it will dictates the rental price. There is a good correlation between salary and industry. There is a varying degree of lifestyle: Great, good or mediocre lifestyle.

lets not side track. We are talking about MM rental potential and I am asking Mermaid where are the good and bad locations.

[fiat500]

对牛弹琴。

[riverfish]

Btw one on low floor ($2300 rent) & one on high floor ($2500):

let's say interior furnishings same for both, expat's accommodation paid by company allows for $2500 budget, I would say more likely the expat will go for the higher floor with a "view", than the lower floor with no view.

of course there are always pple who prefer low floors. Generally for investments purposes, I do agree that it is better to get mid-low floors, based on rental yield calculation.

[Rosy]

Btw one on low floor ($2300 rent) & one on high floor ($2500):

let's say interior furnishings same for both, expat's accommodation paid by company allows for $2500 budget, I would say more likely the expat will go for the higher floor with a "view", than the lower floor with no view.

of course there are always pple who prefer low floors. Generally for investments purposes, I do agree that it is better to get mid-low floors, based on rental yield calculation.

What if both low and high floor do not have views?

[riverfish]

What if both low and high floor do not have views?

Then the lower floor being cheaper than the higher floor, is a better buy, from an investment perspective, since the tenant would unlikely be willing to pay a premium for the higher floor which does not have a view (i.e. no diff from lower floor).

[Rosy]

MM in places with lots of HDB flats in close proximity will face fierce competition. Same rent but can get a larger unit.

Most mm that TOP are currently in the mature estate where the hdbs are generally more than 30yo. So mm will have a great advantage over older hdbs. Just imagine u are a single looking for a place near city fringe with budget of 2.5k, will u choose a 30yo 6xxsqft 3rm flat or less than 5yo mm of 4xxsqft?

However, those mm in punggol area for eg may have a problem as the flats there are quite new. And what happens when mm gets old?

[DC33_2008]

Thanks for answering R33 question on location of MM.

Most mm that TOP are currently in the mature estate where the hdbs are generally more than 30yo. So mm will have a great advantage over older hdbs. Just imagine u are a single looking for a place near city fringe with budget of 2.5k, will u choose a 30yo 6xxsqft 3rm flat or less than 5yo mm of 4xxsqft?

However, those mm in punggol area for eg may have a problem as the flats there are quite new. And what happens when mm gets old?

[Rosy]

There is another dimension which is the profile of the tenants as it will dictates the rental price. There is a good correlation between salary and industry. There is a varying degree of lifestyle: Great, good or mediocre lifestyle.

Mm developments will have a better environment and neighbours as compared to hdbs. U will not see 8 workers renting a unit next door for sure.

[riverfish]

lets not side track. We are talking about MM rental potential and I am asking Mermaid where are the good and bad locations.

For MMs, I think being within 10 mins walk to MRT station is impt, cos singles expats are an impt target group for MMs. You would expect many of them to be without cars. Whereas those with kids and wife in tow, looking for bigger units, more likely for them to get a car for convenience, hence they may not need to be near MRT station.

[Rosy]

For MMs, I think being within 10 mins walk to MRT station is impt, cos singles expats are an impt target group for MMs. You would expect many of them to be without cars. Whereas those with kids and wife in tow, looking for bigger units, more likely for them to get a car for convenience, hence they may not need to be near MRT station.

I believe mm in city or fringe areas will be a good bet. Those mm in balestier area are doing quite well without mrt. There are plenty of buses in city/fringe.

For ocr, be it 1 or 3 bedder, mrt is quite impt i believe.

[DC33_2008]

The richer expats in the CBD/city fringe will use taxi. They can claim for it.

For MMs, I think being within 10 mins walk to MRT station is impt, cos singles expats are an impt target group for MMs. You would expect many of them to be without cars. Whereas those with kids and wife in tow, looking for bigger units, more likely for them to get a car for convenience, hence they may not need to be near MRT station.

[Ringo33]

For MMs, I think being within 10 mins walk to MRT station is impt, cos singles expats are an impt target group for MMs. You would expect many of them to be without cars. Whereas those with kids and wife in tow, looking for bigger units, more likely for them to get a car for convenience, hence they may not need to be near MRT station.

Yes, MM located near MRT station are the best bet, even better if you have amenities like supermarket, food court or restaurant nearby.

[riverfish]

The richer expats in the CBD/city fringe will use taxi. They can claim for it.

The problem with taxis is that it can be damn difficult to get one during peak hours, & in city centre. You call & call, forever you are put on hold, no taxis.
That is why being near MRT is still impt.

[DC33_2008]

It is always good to be in close proximity to mrt station, ie less than 200m. If you look at the mrt network, it converges as it goes into the CBD. Condos in the city fringe and CBD usually has a few lines to choose from.

The problem with taxis is that it can be damn difficult to get one during peak hours, & in city centre. You call & call, forever you are put on hold, no taxis.
That is why being near MRT is still impt.

[Patrickstar]

I feel that buying MM units in the far flung suburbs is a risk unless quantum is low. Strategically , I would purchase an MM unit in areas where there are no public housing around to eliminate competition. MM units in condos with facilities will stand a better chance of renting out compared to MMs in boutique developments. Again that varies from location to location.