Value of leasehold properties over time

[amk]

Why do we even need to talk about budget or no budget....

Because I wanted to correct the misinformation that you posted , that " the government's biggest income is selling LH lands". This is just factually wrong. Acknowledge this and we move on.

[Ringo33]

Because I wanted to correct the misinformation that you posted , that " the government's biggest income is selling LH lands". This is just factually wrong. Acknowledge this and we move on.

There is nothing wrong with that statement because I have already shown you how large the number government generate through land sale.

The only thing which you are disputing is that the income from land sale is not reflected in government budget and it goes into our reserves. And who managed our reserves?

So please dont waste my time trying to dispute which is left or right pocket.

This is property forum, not some government monetary policy discussion.

[boonlaysg]

Sure or not bro?

http://www.propertyguru.com.sg/listi...-lor-3-geylang

Terrace at $210k only! 6+ yrs lease left. Nothing else they can do leh except rent or sell and see it become $0

we are talking about huge land that can be redeveloped not puny land that has little redevelopment value. pls dont let me think u are the owner of the unit..pls.

[Wolverine23]

Emm..so how do you value the enbloc potential of say Textile Centre, Adelphi or Roxy Square?

Actually is not overly cumbersome to calculate what a potential enbloc property is worth. Basically you just have to factor in lease renewal cost and intensification of land use cost. SLA website has one example on how this can be calculated. Also land sales information is aplenty in the public domain and one can have an estimate of how much the chief valuer will value that piece of land which the property sits on. Its a very worth while exercise because if a particular property is selling below its fair value, then it represents a buying opportunity and to wait for the en-bloc which as I have suggested earlier, will definitely come. just a matter of time. In fact there is more urgency or impetus for leasehold owners to consider ennbloc as the property ages since the cost to developer will only go up (albeit gradually) as the property ages. For FH, as there is no so called time frame, owners might be less keen to consider the enbloc route. I think many bros here have missed a key fact about aged property, It is not the building units that holds the value. It is that piece of grassy land underneath them.

Cheers.

[boonlaysg]

Emm..so how do you value the enbloc potential of say Textile Centre, Adelphi or Roxy Square?

Same principles bro.

[Ringo33]

Emm..so how do you value the enbloc potential of say Textile Centre, Adelphi or Roxy Square?

Project affected by government redevelopment plan will be compensated fairly based on market value and you are most likely to be relocated by the government as well. So all is no lost.

Btw, is Adelphi going to be acquire by government?

[Wolverine23]

Project affected by government redevelopment plan will be compensated fairly based on market value and you are most likely to be relocated by the government as well. So all is no lost.

Btw, is Adelphi going to be acquire by government?

There is a possibility of en-bloc by government for Adelphi. How much is the question...???

[Wolverine23]

Same principles bro.

Can't seem to find the SLA example. Is it the DP calculation PDF?

[Ringo33]

There is a possibility of en-bloc by government for Adelphi. How much is the question...???

thats really bad news for adelphi owner for sure.

If government taking over, it wont be call en bloc lah.
Perhaps they need space to expand supreme court?

[Wolverine23]

thats really bad news for adelphi owner for sure.

If government taking over, it wont be call en bloc lah.
Perhaps they need space to expand supreme court?

What was the most recent en-bloc/ takeover from government?

[Arcachon]

The Japanese occupation of Singapore in World War II occurred between 1942 and 1945 after the fall of the British colony on 15 February 1942.

[Ringo33]

What was the most recent en-bloc/ takeover from government?

Rochor center?

[Wolverine23]

Rochor center?

I thought Rochor was HDB?

[el loco]

It should be Pearls Centre.

[Ringo33]

It should be Pearls Centre.

this and rochor center were acquired for infrastructure development, and both are LH development.

[Wolverine23]

this and rochor center were acquired for infrastructure development, and both are LH development.

What was the compensation price then???

[hyenergix]

Leasehold properties always have a stigma to them. If you are not comfortable, just avoid. However I see value for leasehold properties that are within 10 min walk from MRT stations. Their value will be maintained by rising cost of private transportation and cost of personal time/energy.

[DC33_2008]

Property is about Location3. Rental yield should be better for LH than FH most of the time although there is always exception. Renewal of Lease when LH property expired will be much higher in future if it is near good location, mrt, etc. URA may also intensify the land use when lease expired with higher plot ratio. FH has less of such issues.

Leasehold properties always have a stigma to them. If you are not comfortable, just avoid. However I see value for leasehold properties that are within 10 min walk from MRT stations. Their value will be maintained by rising cost of private transportation and cost of personal time/energy.

[boonlaysg]

I think while many of us can disagree on certain issues. I think one issue which all of us can agree is that land is scarce in SG and over time, it has to appreciate. The last 50 years have shown it to be true and I dont think it will be any different in the next 50 years. It would necessarily mean that the land which all properties are sitting on be it FH, LH or 999 or whatever...will appreciate in value over time. If this happens, as long as the exit strategy (enbloc, redevelopment, conservation or whatever creative stratey people in the future can think of) is not towards the tail end of the lease of the property, the land which the property sits on will definitely be worth loads more than what it is worth today and owners will be able to get back something after living on the land for many years. Of course individually, whether an owner makes, loses or breakeven will very much depends on when he joins the game and at what price he pay of the property. so it will be different at an individual level.

What i am not comfortable with are LH JB props. These have no proven exit strategy when the lease tapers off and land is aplenty over there especially freehold ones. That said, i am a firm believer of FH landed JB props tho.

[Busypeople]

Leasehold properties always have a stigma to them. If you are not comfortable, just avoid. However I see value for leasehold properties that are within 10 min walk from MRT stations. Their value will be maintained by rising cost of private transportation and cost of personal time/energy.

Tenant doesn't care about fh or LH

Fh or LH building will age at the same pace

Fh command premium to buy and sell. While LH if cheaper to buy and sell.

So it really depends on location and if your property is located within the grow region of Singapore

[leesg123]

There is a possibility of en-bloc by government for Adelphi. How much is the question...???

Minimum is token sum of $1

[Warren49]

What i am not comfortable with are LH JB props. These have no proven exit strategy when the lease tapers off and land is aplenty over there especially freehold ones. That said, i am a firm believer of FH landed JB props tho.

So how many FH landed JB properties have you bought? I think the price diff betw terrace and semi-d is too wide in JB, so I have concentrated on acquiring terraces instead..... So far, both of my JB terraces are within 15 mins drive to CIQ, as such landed are still limited in quantity.

LH JB commercial properties will definitely have value though. More impt to acquire gd human traffic commercial properties, as against the lease status.

[amk]

There is nothing wrong with that statement ....

never mind. I begin to see why you can easily antagonize ppl around here.

[Luke65]

So it really depends on location and if your property is located within the grow region of Singapore

Where is the growth region of Singapore?

[hyenergix]

Tenant doesn't care about fh or LH

Fh or LH building will age at the same pace

Fh command premium to buy and sell. While LH if cheaper to buy and sell.

So it really depends on location and if your property is located within the grow region of Singapore

I'm referring to properties that are walkable to MRT stations. Leasehold is not so critical in such cases.

[Wolverine23]

Where is the growth region of Singapore?

Depends on where the government wants it to be.

Currently, it's kampong Bugis/ beach road and Marina South.

[Ringo33]

never mind. I begin to see why you can easily antagonize ppl around here.

FACTS : Government largest income comes from selling LH lands.

So please stop wasting your time trying to tell us which pocket the money goes to because its irrelevant.

And please stop making personal remarks at others. Thats childish.

[hyenergix]

FACTS : Government largest income comes from selling LH lands.

So please stop wasting your time trying to tell us which pocket the money goes to because its irrelevant.

And please stop making personal remarks at others. Thats childish.

Section I: What comprises the reserves and who manages them?

Summary

The reserves refer to the total assets minus liabilities of the Government and other entities specified in the Fifth Schedule under the Constitution1.

Government’s assets include:

(i) physical assets like land and buildings;

(ii) financial assets like cash, securities and bonds.

http://app.mof.gov.sg/reserves_sectionone.aspx


ANNEX C: FISCAL POSITION IN FY2014

http://www.singaporebudget.gov.sg/da...oad/annexc.pdf

[boonlaysg]

So how many FH landed JB properties have you bought? I think the price diff betw terrace and semi-d is too wide in JB, so I have concentrated on acquiring terraces instead..... So far, both of my JB terraces are within 15 mins drive to CIQ, as such landed are still limited in quantity.

LH JB commercial properties will definitely have value though. More impt to acquire gd human traffic commercial properties, as against the lease status.

I bot one cluster 3 years ago when the price has not run up yet. Now the price is like double. But wont be selling anytime soon as holding cost is super low and fun factor is high. I think u know what i mean. Many a times, dont even need to pay for electricity usage cos Msian Govt absorbs the first RM20 for electricity. i.e. if u spend less than Rm20 monthly for electricity, it is maciam free. Water is like RM5 per month no matter how much i use whenever i am there. I try to go in every weekends with the whole family in tow.

[Wolverine23]

No more comments / debate on leasehold properties???