Property prices still rising

[wenqing]

http://sg.yfittopostblog.com/2011/03/04/property-prices-on-the-rise/

Property prices still rising

By iProperty.com Singapore – March 4th, 2011

Despite the cooling measures, property prices continue to increase (Image courtesy of Singapore Tourism Board).

With the Urban Redevelopment Authority (URA) releasing its figures about the price of Singapore property recently, now seems a good time to look back at a year where the Singapore government took unprecedented measures to attempt to cool the Singapore property market.

COV down

Cash-over-valuation (COV) for resale Housing Development Board (HDB) units — the amount that home owners often ask for above the official valuation of their property –- is falling from its 4Q 2010 average of $23,000, indicating that the Singapore government’s cooling measures may be beginning to take effect.

Prices on the Increase

However, figures from the Urban Redevelopment Authority (URA) — Singapore’s national land use planning authority — show that overall prices of private residential properties increased by 2.7% in 4Q 2010, compared with the 2.9% increase in the previous quarter.

In fact, for the whole of 2010, prices had increased by 17.6%, compared with the 1.8% rise in 2009. Worrying news, given that two sets of cooling measures were introduced in 2010 with the sole aim of reducing further property speculation that was pushing up process.


Private Property


The URA’s figures also revealed that prices of non-landed properties increased by 1.8% in 4th Quarter 2010, compared with the 1.6% increase in the previous quarter.

For the year 2010 as a whole, prices of non-landed properties increased by 14.0% — a massive increase that may indicate the first forming of a property bubble. Overall, in 4Q 2010, prices of apartments increased by 2.4%, while prices of condominiums increased by 1.6%.

Rental


There is mixed news for the rental market. While some expected the proviso in the recent cooling measures relating to the non-ownership of private property in Singapore or abroad by HDB-home owners to bring rental prices down, the figures beg to differ.

Rentals of private residential properties increased by 2.6% in 4th Quarter 2010, report URA, compared with the 3.6% increase in the previous quarter. Rental prices saw a massive hike for the year 2010 as a whole, with rentals of private residential properties rising by 17.9%.


For the most authoritative and comprehensive listing of properties for sale or rent, go to www.iProperty.com.sg (http://www.iProperty.com.sg)


For more property news, real estate reports and celebrity home features, head to www.iproperty.com.sg/resources (http://www.iproperty.com.sg/resources)

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[wenqing]

http://sg.yfittopostblog.com/2011/02/25/singapore-property-world%e2%80%99s-5th-most-expensive-city-to-rent/


Singapore property: World’s 5th most expensive to rent


http://yfittopostblogsg.files.wordpress.com/2011/02/640blog_singapore2.jpg?w=620
There are only four countries in the world where it is now cheaper to rent a property other than Singapore. (Image courtesy of Singapore Tourism Board)


With property prices on an incremental rise throughout the whole of 2010 (http://www.iproperty.com.sg/news/3282/Property-Prices-on-the-Rise) and with this trend showing no signs of slowing in 2011, it should come as no surprise to most Singaporeans that the country remains one of the most expensive places to rent a home both in Asia and the world.


The World’s 5th Most Expensive


Ranked 5th in the world, and 3rd in Asia, on the basis of the average price for a two-bedroom rental property, the city-state has officially one of the highest cost of living rates in the world. Only in Tokyo and Hong Kong does it cost more to rent a couple of bedrooms.


Singapore’s ranking is due to a 15 per cent increase in monthly rent to S$3,600 in 2010 for an unfurnished, two bedroom property, according to a report by ECA International, a human resources support company.


Expats Push up Prices


“The rebound in Singapore has been driven by a general recovery in house prices, along with increased demand,” says Lee Quane, regional director, ECA Asia.

Referring to foreign employees transferred to Singapore, who make up a large portion of the rental market here, Quane continued, saying:

“Assignee numbers are up again in Singapore following falls during the economic downturn. This has placed pressure on rental accommodation, particularly in areas popular with expatriates.”


For foreign companies who are relocating personnel to Singapore, ECA believes that exchange rate fluctuations play an important role when making direct comparisons of residential property for rent.

“The strengthening of the Singapore dollar against its American counterpart has contributed to the relative increase in accommodation costs — when Singapore rents are quoted in local currency they have increased at the lower, albeit significant, rate of 9 percent year-on-year,” says Mr Quane.


Asia’s Most Expensive Cities


Want to find out where you might get a bit more bedroom (or less) for your buck? Asia’s top 19 most expensive cities in which to rent are:


1 Tokyo
2 Hong Kong
3 Singapore
4 Seoul
5 Shanghai
6 Hanoi
7 Bangkok
8 Mumbai
9 Jakarta
10 Beijing
11 Ho Chi Minh City
12 Manila
13 Taipei
14 Kuala Lumpur
15 Guangzhou
16 New Delhi
17 Suzhou
18 Shenzhen
19 Karachi


Can Singaporeans Afford to Rent?


The report is focused primarily on expatriates renting in Singapore, but it does also highlight why many young Singaporeans don’t move out from their parent’s homes: they simply can’t afford to.


Regardless of cultural or religious ties that keep young Singaporeans at home -– unlike in many Western countries, where most young people leave home to go to university and then move out on their own accord in their early twenties, or co-habit with their partner before buying a house –- the sheer cost of renting on a graduate’s salary means most unmarried Singaporeans are yet to fly the proverbial nest.


What do you think? Is renting a property just too expensive to justify -– regardless of the relative freedom it might bring you?


Are more Singaporeans staying at home for longer than previously, and what does this trend mean?


For the most authoritative and comprehensive listing of properties for sale or rent, go to www.iProperty.com.sg (http://www.iProperty.com.sg)

For more property news, real estate reports and celebrity home features, head to www.iproperty.com.sg/resources (http://www.iproperty.com.sg/resources)

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[mcmlxxvi]

Average 2BR @ $3600??? Sure or not...

I think $3K can get comfortable 2BR.... maybe City Fringe... if further out, $2.5-2.8K does it.

[kane]

With the hype generated by the media, I think we'll see 50% LTV sooner rather than later.

[Geylang OKT]

Honest mistake, let's move on :D

[kane]

With those tough policies, there are probably mostly genuine upgraders and long term investors left moving this market.

[phantom_opera]

Agents might even use the potential lowering of LTV ratio to rush upgraders to commit now rather than later. That's why H2o selling so well

Then when it is at 50%, agents will say buy now, otherwise will be 40% :beats-me-man:

Some upgraders will be priced out of the market but they will start cursing if price goes up further :banghead:

We are China II, a property market that never say die :tsk-tsk:

It is time to up CPF OA to 4% ... then I think property market will cool down automatically.

[teddybear]

These "genuine upgraders" very funny isn't it? Buy H2O in Sengkang ave $920 psf in ulu ulu "birds don't want to lay egg location" and still have to wait for another 3 years to TOP but don't want to buy e.g. The 2-years old Quartz in Buangkok beside Buangkok MRT station and lots of shops & eateries nearby for ave $8xx psf.
If Govt think price too high (which is true only for new launch properties), should just target the new launch properties mah, blanket cooling policy also affect the cheap resale units, seem strange?


With those tough policies, there are probably mostly genuine upgraders and long term investors left moving this market.

[mantrix]

Agents might even use the potential lowering of LTV ratio to rush upgraders to commit now rather than later. That's why H2o selling so well

Then when it is at 50%, agents will say buy now, otherwise will be 40% :beats-me-man:

Some upgraders will be priced out of the market but they will start cursing if price goes up further :banghead:

We are China II, a property market that never say die :tsk-tsk:

that's a fair insight - problem is using LTV is not going to solve the issue of escalating prop prices. MBT will do better using other measures to control the situation

[phantom_opera]

These "genuine upgraders" very funny isn't it? Buy H2O in Sengkang ave $920 psf in ulu ulu "birds don't want to lay egg location" and still have to wait for another 3 years to TOP but don't want to buy e.g. The 2-years old Quartz in Buangkok beside Buangkok MRT station and lots of shops & eateries nearby for ave $8xx psf.
If Govt think this is not right, should just target the new sales mah, blanket policy also affect the cheap resale units, seem strange?

Quartz quantum big, 8XXpsf X 1044sqft = 900k+, H2o 743sqft X 1000psf only 743k leh :D And they cannot afford D Leedon 6XXsqft at 1,600psf hah hah

[kane]

Exactly, quartz has 24hr ntuc and kopitiam next to year and offers immediate rental. But still people prefer brand new. And the price index is driven by new launches. If they chart the resale market they'll probably have seem a flat line since Sep last year.

[fooblackie]

Quartz quantum big, 8XXpsf X 1044sqft = 900k+, H2o 743sqft X 1000psf only 743k leh :D And they cannot afford D Leedon 6XXsqft at 1,600psf hah hah

agreed that the quantum factor makes H2O looks affordable, psf notwithstanding.

however, there is an obvious no-brainer issue that a 743sqft unit is almost 30% smaller than a 1044 sqft unit. 1044sqft is probably a minimium decent-sized liveable unit.

If investors are getting this smaller-sized unit to rent out, i seriously wonder who will rent it and at what price? the rental yield is almost certaintly going to be miserable based this ulu location.

i will go for the quartz or compass hgts anytime. Location and amenities plus gd rental yield wins it hands down.

The only thing about H2O is that it is going to to brand new.

[teddybear]

I don't think the H2O buyers buy because of "brand new" factor. There is absolutely little reason to buy a 743 sqft 2-bedders at higher $psf at such lousy location (despite cheaper price but only slightly cheaper) for own stay as the size is just too small to be liveable with 2 bedrooms + living + dinning! This smell more like speculation at play? Buy to sell to the next greater fool regardless of whether the "good" is of any use/value to justify buying this "good"?
The 4th cooling measures are not "cooling" that because the "cooling" measure is not targeted at the "new launch speculation" but a blanket measure that hit resale properties as well that are actually so much cheaper (not considered at "run-away" prices, only "new launch" prices have ran-away!). If Singapore Govt can have "targeted" policies to dish out subsidies to the poor (and thus not benefiting those who are wealthy-enough to take care of themselves), don't understand why they cannot come out "targeted" cooling measures to just target this "new launch" property prices that have ran-away (instead of "blanket" cooling measures which is really ineffective!) :doh:


agreed that the quantum factor makes H2O looks affordable, psf notwithstanding.

however, there is an obvious no-brainer issue that a 743sqft unit is almost 30% smaller than a 1044 sqft unit. 1044sqft is probably a minimium decent-sized liveable unit.

If investors are getting this smaller-sized unit to rent out, i seriously wonder who will rent it and at what price? the rental yield is almost certaintly going to be miserable based this ulu location.

i will go for the quartz or compass hgts anytime. Location and amenities plus gd rental yield wins it hands down.

The only thing about H2O is that it is going to to brand new.

[kane]

We use to think how is it even possible to live in the HK pigeon holes. Well, there'll be quite a number of families who will be trying it out in another few years.

[phantom_opera]

I am not saying H2o is a good investment but 743/797sqft could be livable for a young couple with a little kid isn't it? Do you prefer a bigger HDB facing MSCP or 25m from the next block or a smaller condo 797sqft with poolview/facilities? For HDB upgrader, any condo is better than HDB

Imagine the following:

Bought 4r HDB at 250k (with renovation) in 2006
Market value of HDB at 450k
Still owe HDB 200k
CPF OA 200k
Cash 100k
Car loan 50k

Buy H2o 2br at 720k, 40%+stamp duy close to 300k which must come out from cash + CPF OA ... already very stretched


If buy Quartz 900k+, cash + CPF must be close to 400k. Cannot afford already. Don't underestimate CDL, they have done their calculation :p

[proper-t]

If Govt think price too high (which is true only for new launch properties), should just target the new launch properties mah, blanket cooling policy also affect the cheap resale units, seem strange?

Why kill the golden goose ? Most new launches (especially in the suburbs) derive from GLS.

[ay123]

With the hype generated by the media, I think we'll see 50% LTV sooner rather than later.

60% LTV already cushion the "what if price crash" scenario. so if there is another round of measure, they should come up with other mean and not to lower the LTV again. is proven that is has not much impact. think the best is to stop the purchase of 3rd property onward. this will stop most transaction. govt should also target the developer than the buyer. the price increase is due to new launch not secondary market. make developer place $100million with govt before TOP to tighten their cashflow and stop them from placing high bid

[devilplate]

I am not saying H2o is a good investment but 743/797sqft could be livable for a young couple with a little kid isn't it? Do you prefer a bigger HDB facing MSCP or 25m from the next block or a smaller condo 797sqft with poolview/facilities? For HDB upgrader, any condo is better than HDB

Imagine the following:

Bought 4r HDB at 250k (with renovation) in 2006
Market value of HDB at 450k
Still owe HDB 200k
CPF OA 200k
Cash 100k
Car loan 50k

Buy H2o 2br at 720k, 40%+stamp duy close to 300k which must come out from cash + CPF OA ... already very stretched


If buy Quartz 900k+, cash + CPF must be close to 400k. Cannot afford already. Don't underestimate CDL, they have done their calculation :p

ok den wat about those who bot the 3bedders in H20.....? 4bedders buyers cud be due to the river view....but 3bedders got nothing unique....hehe

[phantom_opera]

ok den wat about those who bot the 3bedders in H20.....? 4bedders buyers cud be due to the river view....but 3bedders got nothing unique....hehe

That one probably herd followers with more cash/cpf, friends/relatives buy so just follow loh :rolleyes:

I would think 3br will move more slowly compared to 2br and 4br with river view.

[devilplate]

is proven that is has not much impact. think the best is to stop the purchase of 3rd property onward. this will stop most transaction. govt should also target the developer than the buyer. the price increase is due to new launch not secondary market. make developer place $100million with govt before TOP to tighten their cashflow and stop them from placing high bid

dun anyhow suggest! stop purchase of 3rd ppty will be super super drastic and cfm affect resale as well....teddy will be super angry!:p

as for 100mil deposit....small small case for big developers la.....:p

many over here wish to curb runaway prices in new launches and hope resale prices will grow steadily? start the SSD upon TOP lor....haha.....buyers CFM look at resale market :D :spliff: ;)

[phantom_opera]

Stop 3rd property purchase? Be prepared that shares of CAPL and Keppel Land plunged by 10% overnight :scared-1: For rich mainland Chinese, D Leedon is probably their 10th property :cool:

[amk]

... start the SSD upon TOP lor....

excellent suggestion ;)

[hopeful]

dun anyhow suggest! stop purchase of 3rd ppty will be super super drastic and cfm affect resale as well....teddy will be super angry!:p

as for 100mil deposit....small small case for big developers la.....:p

many over here wish to curb runaway prices in new launches and hope resale prices will grow steadily? start the SSD upon TOP lor....haha.....buyers CFM look at resale market :D :spliff: ;)

between launch and TOP, can still speculate. Anyway, buyers at TOP are usually long term investors already, so SSD no effect :beats-me-man:

[peterng8]

when there is a genuine demand for investment or hedging inflation, how can any party keeps on suppressing it artificially by introducing more and more policies...one disadv of doing so will indirectly force the money to go to overseas property market...who benefit this if overseas investment fails as not every country has good governance as in Singapore? some property investment failure by singaporean has happened involving our neigbouring country...those singaporean still cannot get their moeny or see their property investment realise either till now...:)

things will change after erection...price will be up further this year but transaction volume stable..:2cents:

[Wild Falcon]

Got effect one. Imagine SSD goes on and on after TOP over a long holding period. Even serious investors will be sianz.


between launch and TOP, can still speculate. Anyway, buyers at TOP are usually long term investors already, so SSD no effect :beats-me-man:

[Wild Falcon]

Redas so powderful... I doubt new measures will be targeted at new launches...

====
For true picture, Redas to highlight its shades

(SINGAPORE) The Real Estate Developers' Association of Singapore (Redas) has set up a new unit to conduct targeted research into issues that concern Singapore's property market.

Among various things, the working group will examine the factors that drive demand for various segments of the residential property market. With this, Redas hopes that future government measures to cool the market, if there are any, can be calibrated to target specific market segments. The working group will comprise Redas members as well as analysts and researchers from property firms such as CB Richard Ellis, Cushman & Wakefield, DTZ, Jones Lang LaSalle, Knight Frank and Savills.

'With the market situation so fluid, it is time that we set up this working group,' Redas chief executive Steven Choo told BT when contacted. 'We need to have a better handle on a lot of issues.'
He added that more such focus groups could be put together in the future to examine specific topics. Dr Choo is heading the research working group, which was set up after a Redas meeting last week.

For starters, the group will work on coming up with a fresh way of classifying private homes in Singapore and breaking down the pool of properties into categories such as luxury, high-end, mid-tier, and mass-market.

Right now, the Urban Redevelopment Authority (URA) classifies private homes in Singapore by location to compute its quarterly property price index. URA's three geographic categories are the core central region, rest of central region, and outside central region.

But in addition to location, Redas's working group will consider factors such as the amenities and design features of developments and the increased popularity of certain areas, which has translated into higher property prices. Not all estates within URA's outside central region are mass-market locations, industry players have said. It is also possible that the group could create an index to track prices in a particular segment.

After classifying the properties, the working group intends to analyse the demand drivers for each market segment. It will also look at construction costs and issues of sustainability.

BT understands that Redas is concerned about the possibility of another round of anti-speculation measures from the government. Last week, a monthly index compiled by the National University of Singapore showed that prices of non-landed private homes rose 2.6 per cent in January - despite the government announcing more demand-side cooling measures in the middle of the month. Private home prices rose 17.6 per cent last year, according to URA's official index.

National Development Minister Mah Bow Tan also told Parliament last week that the government is 'determined to do whatever is necessary to maintain market stability'. Dr Choo added that Redas is also setting up the new working group in line with its 'twin focus' to educate as well as advocate for the real estate industry at large.


Last year, the industry body teamed up with the National University of Singapore's Department of Real Estate in a historic move to develop a real estate sentiment index. The index is based on a quarterly structured-questionnaire survey conducted among senior executives of Redas member firms - mostly developers but also property consultants, architects, quantity surveyors and other professionals.
Source: Business Times © Singapore Press Holdings Ltd

[fooblackie]

I am not saying H2o is a good investment but 743/797sqft could be livable for a young couple with a little kid isn't it? Do you prefer a bigger HDB facing MSCP or 25m from the next block or a smaller condo 797sqft with poolview/facilities? For HDB upgrader, any condo is better than HDB

Imagine the following:

Bought 4r HDB at 250k (with renovation) in 2006
Market value of HDB at 450k
Still owe HDB 200k
CPF OA 200k
Cash 100k
Car loan 50k

Buy H2o 2br at 720k, 40%+stamp duy close to 300k which must come out from cash + CPF OA ... already very stretched


If buy Quartz 900k+, cash + CPF must be close to 400k. Cannot afford already. Don't underestimate CDL, they have done their calculation :p

yeah, your compt makes sense.

The affordability of these small sized units does have appeal. But honestly downsizing from a HDB to afford a smaller sized condo does have its drawbacks. In my view, Sub 800sqft units are really too small, even for a small family. If single or couple w/o kid i think barely liveable.

That's why for longer term prospect esp when more kids (about 2) come, a bigger place is needed. So this makes sense to go for the likes of Quartz.

The real issue is the false sense of "affordability" by these small sized unit. This preys on Singaporeans' desire to own a pte ppty.

[phantom_opera]

yeah, your compt makes sense.

The affordability of these small sized units does have appeal. But honestly downsizing from a HDB to afford a smaller sized condo does have its drawbacks. In my view, Sub 800sqft units are really too small, even for a small family. If single or couple w/o kid i think barely liveable.

That's why for longer term prospect esp when more kids (about 2) come, a bigger place is needed. So this makes sense to go for the likes of Quartz.

The real issue is the false sense of "affordability" by these small sized unit. This preys on Singaporeans' desire to own a pte ppty.

Average Hong Kong flat size is 600sqft woh. And technology has make efficient use of space easier e.g. last time you have the huge CRT TV but now you have the super thin LED TV to hang on your living hall. Last time you have this huge desktop 386 and many books with huge bookshelf with thousands of records/CDs, now you have iPad usable on a kitchen top. Last time living in suburbs means cooking at home, now can eat out at malls at suburbs like Compass Pt, NEX, Tampines, Jurong Point so kitchen small small to cook noodle and bake cookie enough.

[fooblackie]

Average Hong Kong flat size is 600sqft woh. And technology has make efficient use of space easier e.g. last time you have the huge CRT TV but now you have the super thin LED TV to hang on your living hall. Last time you have this huge desktop 386 and many books with huge bookshelf with thousands of records/CDs, now you have iPad usable on a kitchen top. Last time living in suburbs means cooking at home, now can eat out at malls at suburbs like Compass Pt, NEX, Tampines, Jurong Point so kitchen small small to cook noodle and bake cookie enough.

pardon my "traditional" views. You are modern and forward looking :)

[devilplate]

Average Hong Kong flat size is 600sqft woh. And technology has make efficient use of space easier e.g. last time you have the huge CRT TV but now you have the super thin LED TV to hang on your living hall. Last time you have this huge desktop 386 and many books with huge bookshelf with thousands of records/CDs, now you have iPad usable on a kitchen top. Last time living in suburbs means cooking at home, now can eat out at malls at suburbs like Compass Pt, NEX, Tampines, Jurong Point so kitchen small small to cook noodle and bake cookie enough.

gd points....but den HK dun hf 'affordable gd sized HDB BTO' for their local folks rite?

SG apts can nvr be as small as HK:2cents:

[westman]

gd points....but den HK dun hf 'affordable gd sized HDB BTO' for their local folks rite?

SG apts can nvr be as small as HK:2cents:

A HK friend of mine ever joked about their 'gd size' apartment.
Apparently, this friend often choose to work/pub/eat/club out till very late night or very early morning (past 1am)... Asked him why does it every night, he said this... "You nut? Going home (about 500spf in hong kong island) early to face the low ceiling walls the whole night? I would rather stay out than suffocating at home....

Hope our children do not face the same fate as in hong kong.
Perhaps, garment should plug the MM ratio to prevent this from happening.

[proud owner]

A HK friend of mine ever joked about their 'gd size' apartment.
Apparently, this friend often choose to work/pub/eat/club out till very late night or very early morning (past 1am)... Asked him why does it every night, he said this... "You nut? Going home (about 500spf in hong kong island) early to face the low ceiling walls the whole night? I would rather stay out than suffocating at home....

Hope our children do not face the same fate as in hong kong.
Perhaps, garment should plug the MM ratio to prevent this from happening.


no need to wait till next generation

alerady SO MANY MM owners in this forum .. just that we havent heard from them yet ...

maybe they choose not to talk about it ...


more mm will TOP ... more and more will NOT talk about it ..

some will argue they rent out the MM and choose to talk about how good the yield is ... and tat they dont live in it themselves ...

but living in it or not only they know and only they can decide if they want to tell the truth about their living condition...

we can only wait ... but no need to wait till next generation

[Laguna]

A HK friend of mine ever joked about their 'gd size' apartment.
Apparently, this friend often choose to work/pub/eat/club out till very late night or very early morning (past 1am)... Asked him why does it every night, he said this... "You nut? Going home (about 500spf in hong kong island) early to face the low ceiling walls the whole night? I would rather stay out than suffocating at home....

Hope our children do not face the same fate as in hong kong.
Perhaps, garment should plug the MM ratio to prevent this from happening.

When I was in HK hunting for property, I can only say, Singaporeans truly 身在福中不知福...Everything blame on the govt...
look at HK govt, what do they provide on public housing...

[DaytonaSS]

When I was in HK hunting for property, I can only say, Singaporeans truly 身在福中不知福...Everything blame on the govt...
look at HK govt, what do they provide on public housing...

How many does behave like one? All pple ask is what govt never do for "me". So many of them ard. Very soon it's going to digress into political discussion, how our success is given since ancient times and we mustn't pay millions to our ministers.

As they always says "Singapore belongs to Singaporean" doesn't matter if u support the party that brings u that success. Check on them, doesnt matter send who, vote for opposition.

Hahah, suddenly rem what my biz parter always tell me, "it's never abt what u did, it's about what u never do!"

[teddybear]

It is very clear that so-called "genuine buyers" buying new launch at any price (despite them being priced >20% compared to surrounding resale units) are speculating, helped by the long TOP period and no need to come up with the cash upfront (as paid over construction period).
Below section from analysts' report seem to spell that out:

We attended the private preview of CDL's H20 Residences
at Sengkang and visited the show flats of Waterfront Isle and Lakefront Residences
recently. While some agents noted returned cheques and smaller crowds
immediately after the 13 Jan measures, most commented that genuine buyers and
long-term investors are still buying and remain upbeat on long-term property price
trends, with low interest rates and new highs for land tender bids. Nevertheless, we
sense increased price resistance, with buyers less likely to commit early just to lock
in prices.

Impact felt more in resale market. In contrast to the marginal impact on new sales,
agents pointed to a more significant dampening of the resale market. This was
attributed to mismatches in property price expectations between buyers and sellers.
Furthermore, while the higher seller’s stamp duty from 13 Jan is less restrictive for
long-term buyers of new units due to the time to completion, the same cannot be said
for resales. We will thus be watching volumes and prices for resales when 1Q11 data
is released.


between launch and TOP, can still speculate. Anyway, buyers at TOP are usually long term investors already, so SSD no effect :beats-me-man:

[DaytonaSS]

It is very clear that so-called "genuine buyers" buying new launch at any price (despite them being priced >20% compared to surrounding resale units) are speculating, helped by the long TOP period and no need to come up with the cash upfront (as paid over construction period).
Below section from analysts' report seem to spell that out:

We attended the private preview of CDL's H20 Residences
at Sengkang and visited the show flats of Waterfront Isle and Lakefront Residences
recently. While some agents noted returned cheques and smaller crowds
immediately after the 13 Jan measures, most commented that genuine buyers and
long-term investors are still buying and remain upbeat on long-term property price
trends, with low interest rates and new highs for land tender bids. Nevertheless, we
sense increased price resistance, with buyers less likely to commit early just to lock
in prices.

Impact felt more in resale market. In contrast to the marginal impact on new sales,
agents pointed to a more significant dampening of the resale market. This was
attributed to mismatches in property price expectations between buyers and sellers.
Furthermore, while the higher seller’s stamp duty from 13 Jan is less restrictive for
long-term buyers of new units due to the time to completion, the same cannot be said
for resales. We will thus be watching volumes and prices for resales when 1Q11 data
is released.

Issit fair to just point fingers at new developers units? Although those units require progressive payment over the 4/5 year period, a 20%/40% DP ties down funds without any rental income. These buyers look 4 years down the road without any short term gains. The SSD ensures it. Yet pple still point finger to the high new property prices and blame them for any new measure to come.

The housing index reflects increasing price trends in resale not new houses as some bros highlighted to me. Its the resale which is going up 2%. Likely to be fueled by good rental income. If truly resale is dead as some bros point out here. Y is there a 2% increase?

Y is there still buying in resale if everyone points out that its going down? The roots stems from true housing demands as expats relocate to Singapore. Any how u look at it, its still cheaper to relocate here and pay then rent and relocate to HK and pay Sky figures.

Think about it? ISSIT RESALE rental demand or SSD killed new developments that is pushing up the index.

[mcmlxxvi]

no need to wait till next generation

alerady SO MANY MM owners in this forum .. just that we havent heard from them yet ...

maybe they choose not to talk about it ...


more mm will TOP ... more and more will NOT talk about it ..

some will argue they rent out the MM and choose to talk about how good the yield is ... and tat they dont live in it themselves ...

but living in it or not only they know and only they can decide if they want to tell the truth about their living condition...

we can only wait ... but no need to wait till next generation
Think since I have that avatar I better come out and say something lol. I own MMs and they give me excellent yield plus I stay in one myself. At least I dont have to clean too much floor space that I dont really fully utilise...

For me its not a recent fad. Since 2006 I have been and only been dealing in MMs... I am firm believer of 'dont put all your eggs in one house'...

[mcmlxxvi]

when there is a genuine demand for investment or hedging inflation, how can any party keeps on suppressing it artificially by introducing more and more policies...one disadv of doing so will indirectly force the money to go to overseas property market...who benefit this if overseas investment fails as not every country has good governance as in Singapore? some property investment failure by singaporean has happened involving our neigbouring country...those singaporean still cannot get their moeny or see their property investment realise either till now...:)

things will change after erection...price will be up further this year but transaction volume stable..:2cents:

We must not look at govt policies at face value. They also want in on the action and a piece of the pie. If market crashes and nobody buys or sell, where the revenue gonna come from...

[mcmlxxvi]

We use to think how is it even possible to live in the HK pigeon holes. Well, there'll be quite a number of families who will be trying it out in another few years.

I simply cannot understand why people keep saying 'they will know in a few years' etc etc when so many MMs have already TOP with families living in them. You can start interviewing them if you have huge doubts to clear up...

[proud owner]

Think since I have that avatar I better come out and say something lol. I own MMs and they give me excellent yield plus I stay in one myself. At least I dont have to clean too much floor space that I dont really fully utilise...

For me its not a recent fad. Since 2006 I have been and only been dealing in MMs... I am firm believer of 'dont put all your eggs in one house'...


apart from yourself ( single ? or just a couple? or with 1 kid?)

we really havent seen many who would come online to say how good life is living in a MM unit ...


a single lady friend of mine used to rent a 1+1 in Suites @ central 818 sqft ..

single .. also cannot tahan ... but she like the location .. so she bought a 3 bedroom there ...

there will be people who cannot tahan lack of walking space

there will be those who care less about having less ..

i dont deny MM has its attraction..affordability and easy to maintain .. but to live in it for long period .. its not my thing ...

[devilplate]

apart from yourself ( single ? or just a couple? or with 1 kid?)

we really havent seen many who would come online to say how good life is living in a MM unit ...


a single lady friend of mine used to rent a 1+1 in Suites @ central 818 sqft ..

single .. also cannot tahan ... but she like the location .. so she bought a 3 bedroom there ...

there will be people who cannot tahan lack of walking space

there will be those who care less about having less ..

i dont deny MM has its attraction..affordability and easy to maintain .. but to live in it for long period .. its not my thing ...

anyway not conclusive....u oredi said...its not your thingy.....:D

[hopeful]

I simply cannot understand why people keep saying 'they will know in a few years' etc etc when so many MMs have already TOP with families living in them. You can start interviewing them if you have huge doubts to clear up...

I am open to the idea of MM, your rental units got repeat tenants or not? Those tenants who stay for 2 years and extend their stay for another 1 to 2 years? Or do they move to stay in another MM or move to bigger unit?

[devilplate]

I am open to the idea of MM, your rental units got repeat tenants or not? Those tenants who stay for 2 years and extend their stay for another 1 to 2 years? Or do they move to stay in another MM or move to bigger unit?

MM market still new wor....dun tink any MM oredi TOP more den 2yrs..?

mine 5XXsqft 1bedder in D11 counted?

my ex tenant cannot afford to pay the market rate upon renewal and heard she rented a smaller MM in D8 for less den 2.5k tat time

[hopeful]

MM market still new wor....dun tink any MM oredi TOP more den 2yrs..?

mine 5XXsqft 1bedder in D11 counted?

my ex tenant cannot afford to pay the market rate upon renewal and heard she rented a smaller MM in D8 for less den 2.5k tat time

ok, 5xx is more like studio already right? in D8, can rent studio/1BR in CitySquare for that kind of money, why need to rent MM? :beats-me-man:

Let me rephrase the question to MM owners.
Those who contracted to stay for 1 year or less, do the tenants renew the tenancy for the same or longer period? ie They originally stay for 1 year and extend by another 1 year or 2 years period.
If tenants extend their tenancy agreement, it shows that they like staying in MM.

sorry I dont know much about studio or MM units. But I am much interested in CBD areas and new launches in CBD seems to be mostly MM units, so no choice but to learn more about MM/1BR/studio units.

[devilplate]

ok, 5xx is more like studio already right? in D8, can rent studio/1BR in CitySquare for that kind of money, why need to rent MM? :beats-me-man:



citysq 1bedder cost about 3k at tat time....i actually willing to go down to 3k for her at tat time too bcoz she is a nice tenant...but she manage to find smthing below 2.5k and dun mind staying in a 3xxsqft unit...:beats-me-man:

however, another case: my relative from msia initally told me budget 2.5k MAX and he wants city or city fringe area....den i told him 2.5k only for 1bedder liao....he view a few and find it way too small even for 5xxsqft 1bedder....so ended up renting a 2+study ard 10xxsqft apt near telok kurau for 3k pm.....i guess depends on the individual bah....

[phantom_opera]

5XXsqft studio in One North Residences is doing very well above 3k pm, very efficient layout too.

[devilplate]

5XXsqft studio in One North Residences is doing very well above 3k pm, very efficient layout too.

wah piang...so jealous....den how come prime CBD 1bedders like Icon at most command 4k....:doh:

many 5xxsqft 1bedder in 9,10,11 aso commands about 3 to 3.5k now.....one north vy gd rental leh....

initial stage, MBR 1bedder only 4k....LOL

http://www.propertyguru.com.sg/listing/3344662/for-rent-marina-bay-residences

currently, high flr with seaview and 750sqft big big 1bedder in MBR only 4.6k NEGO!!??:scared-3:

[hopeful]

5XXsqft studio in One North Residences is doing very well above 3k pm, very efficient layout too.

like that cannot trust streetsine figures.
their rental psf for one-north residences only 4.xx psf.

One north residences seems to be doing quite well in terms of capital appreciation and rental yield.

[devilplate]

like that cannot trust streetsine figures.
their rental psf for one-north residences only 4.xx psf.

One north residences seems to be doing quite well in terms of capital appreciation and rental yield.

streetsine figures for rentals haywire one la....for us, best is to find out the actual rental by looking at those units selling with tenancy liao....at least find out 3 to have a clearer pictures and make sure different owners...LOL

[mcmlxxvi]

I am open to the idea of MM, your rental units got repeat tenants or not? Those tenants who stay for 2 years and extend their stay for another 1 to 2 years? Or do they move to stay in another MM or move to bigger unit?

So far I never held on more than 1+ years... (still on a roll uptrend)

Once get tenant easier to sell at very good capital gain... coz yield typically 5-6%... in today's market about 4-5%. Investors will buy - instant income.

[mcmlxxvi]

MM market still new wor....dun tink any MM oredi TOP more den 2yrs..?

mine 5XXsqft 1bedder in D11 counted?

my ex tenant cannot afford to pay the market rate upon renewal and heard she rented a smaller MM in D8 for less den 2.5k tat time

The forefather of all MMs, and my first property - Mountbatten Lodge - always have repeat tenants and good business. When 355sf units were rented at 1.8-2k during 2006... market value is around 400k then. Today I understand it is still very popular (esp with expats).

http://www.h88.com.sg/directory/condo/mountbatten_lodge/images/mountbatten_lodge_00005.JPG

(btw if you wonder who that guy who reminds one of Patrick Tse is - that's our trusty caretaker... I think he does all the landscaping and upkeep by himself!!!)

[stalingrad]

MM market still new wor....dun tink any MM oredi TOP more den 2yrs..?

mine 5XXsqft 1bedder in D11 counted?

my ex tenant cannot afford to pay the market rate upon renewal and heard she rented a smaller MM in D8 for less den 2.5k tat time

cannot pay the market rate, or what you defined as the market rate? perhaps you are too greedy?:D

[hopeful]

The forefather of all MMs, and my first property - Mountbatten Lodge - always have repeat tenants and good business. When 355sf units were rented at 1.8-2k during 2006... market value is around 400k then. Today I understand it is still very popular (esp with expats).

http://www.h88.com.sg/directory/condo/mountbatten_lodge/images/mountbatten_lodge_00005.JPG

(btw if you wonder who that guy who reminds one of Patrick Tse is - that's our trusty caretaker... I think he does all the landscaping and upkeep by himself!!!)

wow. that doesnt look anything like a condo, or an apartment, More like the home of a rich guy.

[stalingrad]

wow. that doesnt look anything like a condo, or an apartment, More like the home of a rich guy.

that would just be a normal home in toronto.

[hopeful]

streetsine figures for rentals haywire one la....for us, best is to find out the actual rental by looking at those units selling with tenancy liao....at least find out 3 to have a clearer pictures and make sure different owners...LOL

Now Streetsine figures supposedly more accurate.
1) They take from URA quarterly rental data
2) If 1) dont have, they take URA rental for developments along that street
3) if 2) dont have, they will say no data available.

[blackfire]

5XXsqft studio in One North Residences is doing very well above 3k pm, very efficient layout too.

I just rented out a high floor, pool facing studio unit at The Seaview for $3.5k pm. FH property.

[hopeful]

Interestingly, Streetsine has no data on The Seaview :beats-me-man:

Update: It is not "The Seaview" but instead "The Sea View" :ashamed1:
sorry. Streetsine has that condo data.

[blackfire]

Interestingly, Streetsine has no data on The Seaview :beats-me-man:

Update: It is not "The Seaview" but instead "The Sea View" :ashamed1:
sorry. Streetsine has that condo data.

I don't think you can see much data on rental for studio units for the project. Only 2 stacks have studio units, less than 10% of the whole development. The median rent is not reflective of the studio rental there.

I look for large development with limited number of studio units, buy at least 5 units of the best stack or at least 15% of the studios in the development. Then u would have good control over the rentals. There is concentrated risk so must find good projects. Nowadays more difficult as more and more studios in new developments.

[mcmlxxvi]

wow. that doesnt look anything like a condo, or an apartment, More like the home of a rich guy.

Its a bungalow but cut up into 28 MMs inside

[focus]

Its a bungalow but cut up into 28 MMs inside

Need approval for that?