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http://www.straitstimes.com/archive/saturday/premium/money/story/healthy-interest-retirement-resort-likely-20131228
Healthy interest in 'retirement resort' likely
Neighbourhood appealing but experts note units are pricey for short lease
Published on Dec 28, 2013
http://i.imgur.com/jxl1M1c.jpg
The Hillford, a 60-year leasehold development in Jalan Jurong Kechil, will have 281 units, a 24-hour concierge service and 18 commercial units such as food outlets, a convenience store, clinics and medical facilities. -- PHOTO: WORLD CLASS LAND
By Cheryl Ong
BUYING sentiment in the housing market will be tested next month when Singapore's first retirement housing project is expected to go on sale.
The Hillford in Jalan Jurong Kechil is expected to attract healthy interest despite the sombre mood evident among buyers in recent months.
Consultants say home seekers have long been drawn to the residential enclave, which is characterised by low-density landed housing.
The Hillford, a 60-year leasehold development, will have 281 units, a 24-hour concierge service and 18 commercial units such as food outlets, a convenience store, clinics and medical facilities.
The Bukit Batok and Bukit Timah nature reserves are nearby, as are malls like Beauty World and Bukit Timah Plaza.
"The marrying of modern amenities characteristic of an urban residential area with open spaces of nature uncharacteristic of Singapore is what makes the Jalan Jurong Kechil area unique," said Ms Chia Siew Chuin, research head of Colliers International. "Potential buyers are likely to be drawn as much to the features of this project as they would be to the... location."
While The Hillford is marketed as a "retirement resort", there is no age limit placed on potential buyers, and it would not be surprising for younger buyers to be attracted to it, consultants said.
The development by World Class Land is expected to open its doors to buyers on Jan 4, while units should go on the market on Jan 17, property agents said.
Preliminary prices indicate that a one-bedder of 398 to 431 sq ft could start at $400,000, or about $1,005 psf. A two-bedder of 506 to 560 sq ft could be at least $500,000, or about $988 psf. Prices of a 657 sq ft two-bedroom dual-key unit will start at $700,000, or $1,065 psf.
Industry experts have noted that the prices are relatively steep for its short lease but Ms Chia said the total price quantum is still affordable for retirees looking to downgrade.
Consultants added that prices in the area have been stable compared with the sharp increases in suburban property value.
In fact, prices of property in Jalan Jurong Kechil are relatively comparable to newer suburban properties, noted Knight Frank research head Alice Tan.
Ms Chia said median prices of new homes in the area ranged from $752 to $1,623 psf this year and have risen about 1 per cent over the past two years. The Creek @ Bukit Timah was the latest project to be launched, at a median price of $1,620 psf.
Median resale prices are up about 12 per cent over the past two years. Knight Frank noted that average prices of resale properties between 1,615 and 2,153 sq ft saw the highest increase of 25.6 per cent in that period.
Signature Park has had the most transactions in the past two years, with 124 caveats lodged with the Urban Redevelopment Authority.
Although a handful of housing units are scheduled for completion in the next few years, there will not be a major oversupply there, said R'ST Research director Ong Kah Seng.
A total of 736 new private homes will be completed from 2015 to 2017, according to Knight Frank estimates.
Mr Ong also noted that the Government has yet to set aside more land in the area for sale in the first half of next year, so any new supply should come from land acquired through collective sales.
But the arduous process of collective sales and high prices demanded by owners should quieten the collective-sale market in the near future, he said.
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I do not think there will be healthy interest on the project unless retired couple have lots of spare cash.
The low quantum is enticing, but it really is for retirement and cashing out lor. Nothing to shout about. Facade not fantastic, layout small. Rental yield obviously good, provided can land tenants to begin with. And barring no future rental restrictions.
I think overall will do okay. Singaporeans recently chiong properties base on quantum, DUO aside.
But where do we see value in a 60 year LH at $1000psf. Can find a 3bedder FH at that $psf and rent out two other rooms.
The low quantum is enticing, but it really is for retirement and cashing out lor. Nothing to shout about. Facade not fantastic, layout small. Rental yield obviously good, provided can land tenants to begin with. And barring no future rental restrictions.
I think overall will do okay. Singaporeans recently chiong properties base on quantum, DUO aside.
Next time you all buy property, better take the $PSF divide by number of years of lease to see whether worth it or not... :doh:
The low quantum is enticing, but it really is for retirement and cashing out lor. Nothing to shout about. Facade not fantastic, layout small. Rental yield obviously good, provided can land tenants to begin with. And barring no future rental restrictions.
I think overall will do okay. Singaporeans recently chiong properties base on quantum, DUO aside.
But where do we see value in a 60 year LH at $1000psf. Can find a 3bedder FH at that $psf and rent out two other rooms.
I totally agree.
Unless they buy and rent out, then their yield would be much better than the neighborhood....who would want to buy there and slowly see one by one their neighbors pass away?
This generation, if they have cash and loaded, most of them would have gotten themselves landed.
Personally I don't think the idea works... Anyway, personal preference...we shall see, interesting to see the profile of those who bought it....might not be retirees...:)
Any restrictions on that?
:2cents::2cents::2cents::2cents:
I do not think there will be healthy interest on the project unless retired couple have lots of spare cash.
Unless they buy and rent out, then their yield would be much better than the neighborhood....who would want to buy there and slowly see one by one their neighbors pass away?
This generation, if they have cash and loaded, most of them would have gotten themselves landed.
Personally I don't think the idea works... Anyway, personal preference...we shall see, interesting to see the profile of those who bought it....might not be retirees...:)
Any restrictions on that?
:2cents::2cents::2cents::2cents:
Maintenance fee won't be cheap and will eat up the retiree's savings.
Unless they buy and rent out, then their yield would be much better than the neighborhood....who would want to buy there and slowly see one by one their neighbors pass away?
This generation, if they have cash and loaded, most of them would have gotten themselves landed.
Personally I don't think the idea works... Anyway, personal preference...we shall see, interesting to see the profile of those who bought it....might not be retirees...:)
Any restrictions on that?
:2cents::2cents::2cents::2cents:
but the qn is, r u able to sell it after renting for 10yrs? :47:
walkthetiger
04-01-14, 08:03
Unless they buy and rent out, then their yield would be much better than the neighborhood....who would want to buy there and slowly see one by one their neighbors pass away?
This generation, if they have cash and loaded, most of them would have gotten themselves landed.
Personally I don't think the idea works... Anyway, personal preference...we shall see, interesting to see the profile of those who bought it....might not be retirees...:)
Any restrictions on that?
:2cents::2cents::2cents::2cents:
Not nice to see neighbors leaving one by one, it is liked reminding you as well, most of my old friends not keen. Resemble a high end “old folk home” concept just a little...
walkthetiger
04-01-14, 08:05
but the qn is, r u able to sell it after renting for 10yrs? :47:
For the few ones here, they only believe in buy-and-buy, will never sell, like a stamp collection...haha
Not nice to see neighbors leaving one by one, it is liked reminding you as well, most of my old friends not keen. Resemble a high end “old folk home” concept just a little...
imagine every week got live band downstairs....
:D
imagine every week got live band downstairs....
:D
that is a thought.
have to ask agent whether function room is big enough to hold a wake.
in the condo, do they have barbeque pit or incinerator?
Actually the idea of living in retirement village has its appeal. When old the idea of living on my own is so lonely and alienating. Living with children and in laws may put a strain on family relationship. If the retirement village is well organized and full of activities, I wouldn't mind. Plenty with people of my peers we can organized short trips or coffee times together. Of course funeral wake must not be allowed. This idea will fly, if it offers a better "lifestyle".
Actually the idea of living in retirement village has its appeal. When old the idea of living on my own is so lonely and alienating. Living with children and in laws may put a strain on family relationship. If the retirement village is well organized and full of activities, I wouldn't mind. Plenty with people of my peers we can organized short trips or coffee times together. Of course funeral wake must not be allowed. This idea will fly, if it offers a better "lifestyle".
actually i tink with so many rich old pple in sg, not difficult to find 281 buyers.
The size of the units are seriously too small to be retirement homes. Psf is too high too. To me it is just a gimmick to mask the 60yr lease.
actually i tink with so many rich old pple in sg, not difficult to find 281 buyers.
In western country, the more expensive the retirement village with high end facilities, the more they sought after. Rich people like to hang around with other rich people.
Not feasible. Should be pampering oneself at that age and do downsizing to such small area. Next size even smaller. Just joking.
The size of the units are seriously too small to be retirement homes. Psf is too high too. To me it is just a gimmick to mask the 60yr lease.
The size of the units are seriously too small to be retirement homes. Psf is too high too. To me it is just a gimmick to mask the 60yr lease.
Its just inevitable that people have to retire one day. This product will be the first of many. With many rich retirees, the idea of flocking together in a place worthy of their social strata has its appeal. Pricing act more as a social filter.
In western country, the more expensive the retirement village with high end facilities, the more they sought after. Rich people like to hang around with other rich people.
But this development is not a proper retirement village. It should have at least a few 24x7 nurses.
walkthetiger
04-01-14, 10:32
that is a thought.
have to ask agent whether function room is big enough to hold a wake.
in the condo, do they have barbeque pit or incinerator?
hahaha... Designer should has included an incinerator.... then it will call a full facilities ready for the old folks like me..... :D
Wonder if there is a rental market for such apartment?
The size of the units are seriously too small to be retirement homes. Psf is too high too. To me it is just a gimmick to mask the 60yr lease.
For retirement property, a 60yr lease is quite reasonable. Nobody want to live in a 50 years old retirement village. Ideally every 30 years it should be rebuild.
Wonder if there is a rental market for such apartment?
Y not, after a few years nobody will even know this is actually a retirement village. To me it is just another MM project with a 60yr lease.
For retirement property, a 60yr lease is quite reasonable. Nobody want to live in a 50 years old retirement village. Ideally every 30 years it should be rebuild.
Actually in fact 30yr lease should be sufficient for a proper retirement village.
What i am trying to say is that this developer is trying to hype things up by using retirement concept to sell at higher psf given it's 60 yr lease.
Actually in fact 30yr lease should be sufficient for a proper retirement village.
What i am trying to say is that this developer is trying to hype things up by using retirement concept to sell at higher psf given it's 60 yr lease.
Its a catch 22 situation. In order for a high end retirement facilities to be provided, first you must have enough demand for it.
On the other hand, to create a high end retirement demand, first you must provide high end facilities. The property developer may not be the right people who can deliver high quality care for the retirees.
Patrickstar
04-01-14, 11:36
With only sixty years the price is a ripoff. If the project is designated for retirement home, shouldn't only people of retirement age or close to that qualify? I got agents telling me people are going to buy n flip this project coz of the affordable quantum, what kind of nonsense is that?
it is not even a proper retirement village.
developer just using the concept to sell shoeboxes at 60y lease haha.
If I am in my 60s and have spare cash, I would rather buy a mixed development project. There will be more shops & clinics. Hence, this project has nothing to shout about.
walkthetiger
04-01-14, 12:26
If I am in my 60s and have spare cash, I would rather buy a mixed development project. There will be more shops & clinics. Hence, this project has nothing to shout about.
My house is big enough for all my 6 children and their family, now they all moved out living in the properties I provided them, leaving me and my wife a huge space, big enough for me to sometime consider to convert it into a small hotel. But, still I leave it this way.
Living space is something I don't want to let go.
My house is big enough for all my 6 children and their family, now they all moved out living in the properties I provided them, leaving me and my wife a huge space, big enough for me to sometime consider to convert it into a small hotel. But, still I leave it this way.
Living space is something I don't want to let go.
one disadvantage of living in a retirement studio is, hard for children to come for meals/gatherings due to lack of space..
I prefer a smaller place of just 2 bedder of 1000plus sqft as retirement home for my spouse and I. Will spend time at different homes when my children becomes adult depending on climate. Life is short and enjoy when still young. Following the footstep of someone here who will be retiring before 50.
My house is big enough for all my 6 children and their family, now they all moved out living in the properties I provided them, leaving me and my wife a huge space, big enough for me to sometime consider to convert it into a small hotel. But, still I leave it this way.
Living space is something I don't want to let go.
one disadvantage of living in a retirement studio is, hard for children to come for meals/gatherings due to lack of space..
Dont worry, its the children's job to convince you to sell so that they can upgrade to a bigger place in preparation for the next generation. :D
Unless it comes with guarantee a maid to look after buyers for 10 years, only ah siow will buy a 60 years lease for 1000 psf.
Unless it comes with guarantee a maid to look after buyers for 10 years, only ah siow will buy a 60 years lease for 1000 psf.
u will be surprised a lot of ah siow will bite even though converted to 99 years the price is at least 1800 to 1900 psf...and don't be too optimistic about rental looking ahead as most of the buyers will just jump in thinking rental is forever up and up and buy high using rental to cover...interest up and rental down a highly possible scenerio when more and more flats/condo completion is on the card within the next few years(unless influx of many many other countries people which seem unlikely)...unless condo bought at low low price or completely owned or high upfront cash payment.. those bought high high be prepared to top up....
u will be surprised a lot of ah siow will bite even though converted to 99 years the price is at least 1800 to 1900 psf...and don't be too optimistic about rental looking ahead as most of the buyers will just jump in thinking rental is forever up and up and buy high using rental to cover...interest up and rental down a highly possible scenerio when more and more flats/condo completion is on the card within the next few years(unless influx of many many other countries people which seem unlikely)...unless condo bought at low low price or completely owned or high upfront cash payment.. those bought high high be prepared to top up....
quite sad to see a lot of old folks intending to jump into it :(
quite sad to see a lot of old folks intending to jump into it :(
Why sad???? There must be a financial reason to your statement????
quite sad to see a lot of old folks intending to jump into it :(
Why sad???? There must be a financial reason to your statement????
Have u done the ROI, monthly cash flow, etc.... To determine it is a bad investment????
I am not an agent hor
Why sad???? There must be a financial reason to your statement????
Have u done the ROI, monthly cash flow, etc.... To determine it is a bad investment????
I am not an agent hor
Folks who are living in big property by themselves, they might want to down size to a smaller apartment for retirement while keeping their property for rental.
That way, they might still be able to get extra income for retirement while enjoying the hospitality and service offer by retirement home.
I think a retirement home sure sound better than a nursing home and I am pretty sure some people will buy with the intention of putting their parents there
Why sad???? There must be a financial reason to your statement????
Have u done the ROI, monthly cash flow, etc.... To determine it is a bad investment????
I am not an agent hor
This defeats the intent of this land. Sure can rent out and achieve good roi compared to surrounding projects. But it's wrong. Capitalism at its best. kbW will intro CM in time to come. In his previous word on EC, it's not in the spirit and intent
This defeats the intent of this land. Sure can rent out and achieve good roi compared to surrounding projects. But it's wrong. Capitalism at its best. kbW will intro CM in time to come. In his previous word on EC, it's not in the spirit and intent
Land parcel at Jalan Jurong Kechil
The land parcel was made available for sale through the Reserve List system on 13 November 2006. On 5 September 2012, URA announced that it had received an application from a developer to put up the land parcel for tender. The developer has committed to bid at a price of not less than $23,964,237 on a 60-year lease term for the land parcel in the public tender.
The site has a land area of about 1.02 ha and a gross floor area of about 14,200 m2 with a lease option of 30 years, 45 years or 60 years. This short-term lease site is zoned for residential development and can be developed into a condominium or flat. The successful tenderer of this site has the flexibility to develop the site for retirement housing.
Tender for the site will close at 12 noon on 15 November 2012. Selection of the successful tenderer will be based on the tendered land price only. Any tender below the accepted minimum price of $23,964,237 for a 60-year lease term or its equivalents of $17,973,178 for a 30-year lease term and $21,507,903 for a 45-year lease term will not be considered.
The question is at what price with the shorter tenure when it is sold later. How about considerations for bank loan. Better to buy a MM with 99LH which has more option. Look at how Kbw slapped the EC market with MSR recently. confused:
Why sad???? There must be a financial reason to your statement????
Have u done the ROI, monthly cash flow, etc.... To determine it is a bad investment????
I am not an agent hor
The question is at what price with the shorter tenure when it is sold later. How about considerations for bank loan. Better to buy a MM with 99LH which has more option. Look at how Kbw slapped the EC market with MSR recently. confused:
Bro, options.... That's all...
Some may want 2 bedder... Some may want a small place and they have no kids to pass to so 60 years make sense for them to unlock...
I always believe with more choices-better... Just my opinion... :)
The question is at what price with the shorter tenure when it is sold later. How about considerations for bank loan. Better to buy a MM with 99LH which has more option. Look at how Kbw slapped the EC market with MSR recently. confused:
Just pay in cash lah. To buy a MM unit right now, those with multiple property will already need to put in $500 to 600k down payment, if this is sold below $500K no problem lah.
For those with very little cash, then it will be a problem. But then again, if you have little cash, you should shouldnt be retiring in such a place at all.
This defeats the intent of this land. Sure can rent out and achieve good roi compared to surrounding projects. But it's wrong. Capitalism at its best. kbW will intro CM in time to come. In his previous word on EC, it's not in the spirit and intent
wow sure can rent out and achieve good ROI? that is the statement that only maybe developer and agent will make during sale(but will not put down in black and white, even it is rental guaranteed for a few years, ah kow n ah neow also know where the money will come from..)....
wow, than quickly jump in and don't look back....sure a lot of FTs queuing to rent the place or maybe old folks will also want to rent and all will be fascinated and feel good by the word 'retirement village' is the only MM place with a grand name to rent...LOL :D
This defeats the intent of this land. Sure can rent out and achieve good roi compared to surrounding projects. But it's wrong. Capitalism at its best. kbW will intro CM in time to come. In his previous word on EC, it's not in the spirit and intent
The land parcel at Jalan Jurong Kechil has a site area of 10,170.8 square meters and a permissible gross floor area of 14,239 square meters. This can be developed into a residential area and retirement housing is also allowed. The residential development is expected to completed 60 months after the date of acceptance of the successful tenderer, and the residential area that can be build can have a maximum building height of part five storeys and part eight storeys.
Why sad???? There must be a financial reason to your statement????
Have u done the ROI, monthly cash flow, etc.... To determine it is a bad investment????
I am not an agent hor
cos I feel like they r being con of their hard earn retirement $.
juz ask yrself if u would even consider buying fm them.
after the old folks stay for say 10 to 15 yrs, oni hv abt 40 yrs of lease left.
do u tink sg de resale mkt is ready for it?
if they r not able to encash money out, it is no diff fm been a renting fm developer n subleting it.
walkthetiger
05-01-14, 21:40
cos I feel like they r being con of their hard earn retirement $.
juz ask yrself if u would even consider buying fm them.
after the old folks stay for say 10 to 15 yrs, oni hv abt 40 yrs of lease left.
do u tink sg de resale mkt is ready for it?
if they r not able to encash money out, it is no diff fm been a renting fm developer n subleting it.
A sign of herd mentality "cheap price is everything" which developers well spotted it recently... More "half bake"/no potential projects with cheap price will come..
Cheap price is the most important thing now to move the property units... This is a bad sign, meaning market already stagnanted because of all the CMs... Property developers trying to move units by developing absolutely cheap units using SMALL size, cheap quality materials, big balconies and air-con ledges (the latter which are totally useless space), ... What else? May be the pillars are built to last for 60 years only since it only has 60 years lease? :p
A sign of herd mentality "cheap price is everything" which developers well spotted it recently... More "half bake" projects with cheap price will come..
Folks who are living in big property by themselves, they might want to down size to a smaller apartment for retirement while keeping their property for rental.
That way, they might still be able to get extra income for retirement while enjoying the hospitality and service offer by retirement home.
I think a retirement home sure sound better than a nursing home and I am pretty sure some people will buy with the intention of putting their parents there
those folks can rent out their fully paid exisitng property. enough to fund and pay for this retirement home wat.
those folks can rent out their fully paid exisitng property. enough to fund and pay for this retirement home wat.
Honestly $400-500k cash for retiree that can afford to live in such retirement home is nothing. I think this project is priced to sell to those who will pay in cash without having to worry about TDSR BS.
KBW will come out with some restriction if there is another site with similar concepts for sale. Otherwise, they will be blame later if people are not happy. :p
A sign of herd mentality "cheap price is everything" which developers well spotted it recently... More "half bake"/no potential projects with cheap price will come..
what on earth is a retirement resort?! are the developers providing free leisure activities/programs or free healthcare for buyers?
smells like a big con job
KBW will come out with some restriction if there is another site with similar concepts for sale. Otherwise, they will be blame later if people are not happy. :p
Bro, I think if this is a hit, means people will get used to 60 years leasehold.... Then 1 of the ways for cheaper housing is gls of 60 yrs...
This is a test bed....
Paradigm shift coming .... Hahahaha
Bank will have to review their loan package. Those with 99LH properties will benefit and hence the good older projects price will move. :D
Bro, I think if this is a hit, means people will get used to 60 years leasehold.... Then 1 of the ways for cheaper housing is gls of 60 yrs...
This is a test bed....
Paradigm shift coming .... Hahahaha
i'm a practical person. unless there is due reason to justify the premium i have to pay for a product, it is then a merely well-packaged gimmick.
with $500k, i can go get a MM somewhere else. why should i, then, choose this retirement resort over the plethora of choices that is available to me?
Bank will have to review their loan package. Those with 99LH properties will benefit and hence the good older projects price will move. :D
I think all the CMs are gaining traction.... Those that wanted to buy, have bot... fewer investors left in this market....
Prices are moving sideways....
I have no idea on the loan for such projects but will be studying this project and determine the impact on the future... hahahahahaha
This is niche market... many here are thinking mass market strategy... hahahahahaha
Aspial - wonderful marketing strategy.... alot of hype here... hahahahha
the moral behind tis project is tat old projects which r 20yrs old suddenly become very much cheaper & more valuable.
Anyone has asked their banker for this project? There must be some (younger ones) who will need a small loan. Must really read carefully between the lines for this kind of package.;)
I think all the CMs are gaining traction.... Those that wanted to buy, have bot... fewer investors left in this market....
Prices are moving sideways....
I have no idea on the loan for such projects but will be studying this project and determine the impact on the future... hahahahahaha
This is niche market... many here are thinking mass market strategy... hahahahahaha
Aspial - wonderful marketing strategy.... alot of hype here... hahahahha
A: Hi, B, long time no see, heard that u just bought a Pte Condo, not bad for a young person like you. btw, care to share where is it so we can visit you in house warming? just kidding...
B: Oh, it is the retirement village...
A: oh~ I see...so young u will be staying in retirement village...
not bad to retire so early...to join and take care the old folks there.. more people should be like you doing charity work, u are a kind person.. good, cheers :cheers5:
:D:D
Actually can be quite depressing when all your neighbours are old people. Every week you will notice or get news that someone passed on. :scared-4: Its like staying in hospice like that.
is 'retirement resort' not just a marketing concept and pitch? Beneath all the flowery talk and audio/visual presentations, won't the hard details of 60 year lease and the $psf calculated for profit after cost serve to trigger more and more such smaller leases - all which is to bring about a price floor over time for the 99 leases and upwards? like the blooming of MM ... ?
is 'retirement resort' not just a marketing concept and pitch? Beneath all the flowery talk and audio/visual presentations, won't the hard details of 60 year lease and the $psf calculated for profit after cost serve to trigger more and more such smaller leases - all which is to bring about a price floor over time for the 99 leases and upwards? like the blooming of MM ... ?
Now affordability is king. Size, leasehold, location is secondary.
then the sucking in (and ongoing) of the retail mass will take time to bloom before lack of mass buying - based on affordability - fully developed?
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