The shock therapy will come pretty soon. A new project can also help tide over temporary high vacancy periods (less headache) and may be easier to finance, with a more efficiently built layout (some too excessively efficient like washing machine under induction hood and hob). But modern lifestyles with a high dependency on micro-gadgets, flatscreen TVs, people eating out or using external laundry, these may be important (to some) but are not critical issues.
That being said, resales are indeed seriously underpriced and poised for a jawdropping breakout once the new sales are released in the second quarter.
Originally Posted by
bargain hunter
i totally agree and i've discussed with friends about this phenomenon islandwide. there aren't many conclusions but our guesses are as had been discussed in another thread (i'm not sure which one, maybe bro kelonguni remembers):
1) People want brand new for one reason or another e.g. THEY SIMPLY LIKE IT NEW LIKE NO ONE STAYED IN BEFORE. others like no need to headache reno + the cost of reno. since all r 99, the lease is longer for the new condo.
2) Some may only have enough cash+cpf to pay the initial 20%. Its helpful that they continue earning and building up their savings while the new project is being constructed. The quantum difference is also not so great. E.g. a 1200 sq ft old 3 bedder condo at 800psf is $960k. A brand new 800sq ft+ 3 bedder at 1300psf+ is not > 1.1m. minus off the renovation cost for old condo, buyers may feel that its more worth it to buy the new but smaller condo (nevermind the psf). Even for investment, it may be easier to rent out the new and smaller condo than the old but bigger condo and at possibly higher rent too.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.