View Full Version : Is it better to buy a condo from the developer or from recently TOP projects?
Any inputs?? Seems that most of the buying buzz are focused on new launches. Have not really seen much going on in the secondary market.. though asking prices are going higher by the day.
It appears that new launch are selling at prices above last peak. IMHO, it is better to buy from secondary market as prices are substantially below the peak and downside risk is lower. :)
Any inputs?? Seems that most of the buying buzz are focused on new launches. Have not really seen much going on in the secondary market.. though asking prices are going higher by the day.
Why buy something that you cannot see what the end product will be like, cannot use immediately (either own stay or rent out), and still pay additional interests (for progressive payment scheme - if you opt for IAS, you still pay more anyway just like paying extra interest)? I usually don't buy a condo that is under development because I can't see how the finished product will be like, the quality, the finishing, and even the view (if you buy one on high floor). Now worst still, you lock yourself into such uncertainty at a huge premium! (because the new launch condo under construction is priced something like at 20-35% premium to resale properties!). Traditionally, condo under construction is always priced at a discount to already completed projects to factor in the uncertainty, the additional interests you have to pay. (Now it seems it is the other way round - people pay for the enjoyment to see their condo being built and tik-kam on the quality? :hell-hath-no-fury:)
Any inputs?? Seems that most of the buying buzz are focused on new launches. Have not really seen much going on in the secondary market.. though asking prices are going higher by the day.
Current new launches are higher than nearby newly TOP or soon TOP ones. That in turn will help push up nearby newly/soon TOP price. the condos I've been looking at Clementi/westcoast, though no nearby new launch, recent deals all exceed 07/08 already (some not shown in URA yet). i just signed OTP to sell my 10 yr old 99LH, much higher than URA records. the agents called us, set price and bargained with buyer, coz we were not eager to sell at all, and settled in a wk. so wondering how big agent's role in the price increase.
For newly TOP, no need to wait for 2 yrs or so, can see furnishing, facing, wind, noise etc and can move in soon. so for myself looking for own stay it's a better choice. but at the same time u know that the seller has earned a good profit from u. Finding an ideal unit in a project in sub/re-sale is so far for me more difficult, as not many on the market at same time, developer sale got more choices and easier to choose. if price keeps increasing, u r the 1st owner that can make the 1st profit and leave less room for subsequent owners. but if price falls, wait for 2 yrs or longer to stay or rent...?
Why buy something that you cannot see what the end product will be like, cannot use immediately (either own stay or rent out), and still pay additional interests (for progressive payment scheme - if you opt for IAS, you still pay more anyway just like paying extra interest)? I usually don't buy a condo that is under development because I can't see how the finished product will be like, the quality, the finishing, and even the view (if you buy one on high floor). Now worst still, you lock yourself into such uncertainty at a huge premium! (because the new launch condo under construction is priced something like at 20-35% premium to resale properties!). Traditionally, condo under construction is always priced at a discount to already completed projects to factor in the uncertainty, the additional interests you have to pay. (Now it seems it is the other way round - people pay for the enjoyment to see their condo being built and tik-kam on the quality? :hell-hath-no-fury:)
becos i am a stupid sinkie sheep that runs in any direction the herd runs (remember how we used to run after minibunds?) or where the "sheepdogs" tells me to go (or how much premium to pay).
there is always comfort in the fact that if you die, you have lots of company...
It depends on whether for investment or for own stay. The reason why new launch are more attractive for investment is because people are bullish about economic condition 2-3 years down the road given that we are just out of the recession. If you buy in secondary market for investment, you must immediately worry about renting it out in a depressed rental market and must start paying your bank loan which is bad for your cash flow as a lot of people would want to park some extra cash in stock market too. Another factor to consider for investment of non-prime 99LH property is that if you buy a 5-year old 99LH, 3 years later it will be 8 years old and harder to sell at a premium.
there is always comfort in the fact that if you die, you have lots of company...
We are a dwindling breed.... although SG population is increasing, the no. of sinkies being produced is actually falling.
Property_Owner
21-07-09, 10:53
It depends on whether for investment or for own stay. The reason why new launch are more attractive for investment is because people are bullish about economic condition 2-3 years down the road given that we are just out of the recession. If you buy in secondary market for investment, you must immediately worry about renting it out in a depressed rental market and must start paying your bank loan which is bad for your cash flow as a lot of people would want to park some extra cash in stock market too. Another factor to consider for investment of non-prime 99LH property is that if you buy a 5-year old 99LH, 3 years later it will be 8 years old and harder to sell at a premium.
Location location location.
LH= Sail
FH= Ferraria Park
Which one have more value?
Any inputs?? Seems that most of the buying buzz are focused on new launches. Have not really seen much going on in the secondary market.. though asking prices are going higher by the day.
Logic is like that:
Bank match valuation for new launches so no need to top up cash... bank do not match valuation for old properties so must top-up cash....
Nobody like to top-up cash due to currently uncertainty but don't mind getting their throats cut by the developers. If economy goes further downhill, everyone will be screwed whether you buy new or buy old. But at least with cash in hand, can tahan a few months till a few years worth mortgage payments while they rough it out... assuming the banks don't ask for lump-sum top up upon TOP. If cash all kena plonk up front to buy old properties, then if they lose their job, they will potentially lose their house since their buffer already eroded due to COV.
Or course all these with a secret hope that when their property TOP in 201X, economy would have improved.....
Location location location.
LH= Sail
FH= Ferraria Park
Which one have more value?
I agree 99LH @ better location has more value. Note I used "non-prime" 99LH in my response.
Property_Owner
21-07-09, 11:21
I agree. Note I used "non-prime" 99LH in my response.'
Paiseh. didn't see:)
We are a dwindling breed.... although SG population is increasing, the no. of sinkies being produced is actually falling.
better migrate and take out all ur CPF ~ :eek:
Location location location.
LH= Sail
FH= Ferraria Park
Which one have more value?
the above is very obvious.
give you something less obvious:
99 LH D3 = Riverplace
999 LH D10 = Valley Park
assuming about the same size, same no. of bedrooms, WHICH ONE?
i was surprised that Riverplace actually has higher rental psf, whih translates to better return.
the above is very obvious.
give you something less obvious:
99 LH D3 = Riverplace
999 LH D10 = Valley Park
assuming about the same size, same no. of bedrooms, WHICH ONE?
i was surprised that Riverplace actually has higher rental psf, whih translates to better return.
but one day u still need to cash out? then how? capital values for 99yr vs fh after 10-20 years.
We are a dwindling breed.... although SG population is increasing, the no. of sinkies being produced is actually falling.
:scared-4:
We are a dwindling breed.... although SG population is increasing, the no. of sinkies being produced is actually falling.
At least we keep importing unlike Japan. If current birth rate continues, Japan will have half of population in 2,050. Only 1 person will be left in Japan at year 3,000.
About to be TOP projects like Solitaire still cheaper than Volaris. Both locations are good with Solitaire much near future MRT. Both launched around the same price but now Solitaire has dropped in value.
The herd mentality defies logic since it's a no brainer that the cash flow will certainly be better for a project about to TOP.
However following the herd makes sense when prices of new launches continue to escalate in the short term;-)
About to be TOP projects like Solitaire still cheaper than Volaris. Both locations are good with Solitaire much near future MRT. Both launched around the same price but now Solitaire has dropped in value.
The herd mentality defies logic since it's a no brainer that the cash flow will certainly be better for a project about to TOP.
However following the herd makes sense when prices of new launches continue to escalate in the short term;-)
An therein lies the spread that people can profit from. When a freehold in D15 TOP in 2008/2009 is 20% cheaper than a new LH in angmor kio. but what to do? singaporeans are lazy. they would rather be wowed by words and showflats and nice big FPFC ads, than work hard to scan hundreds of one-liner saturday listings to find that one gem
An therein lies the spread that people can profit from. When a freehold in D15 TOP in 2008/2009 is 20% cheaper than a new LH in angmor kio. but what to do? singaporeans are lazy. they would rather be wowed by words and showflats and nice big FPFC ads, than work hard to scan hundreds of one-liner saturday listings to find that one gem
I saw the showflat at Volari. The amount of money spent to "dress up the bride" is not small. The view was good but then they don't tell you only a few units will have identical views. Buyers paid for the entire show.
I am not sure if they are lazy but it certainly is easy money if they can flip on the speculation of escalating launch prices. Sub sale is also easier since it is only brochures and showflat and you have 60 others who have also bought;-)
I am also of the view that resale apt are more affordable and definitely more value as compared to some of the new launches. Then why did so many ppl poured into new launches?? I simply do not understand.
Asking prices for some of the mass condos I see are like $1000psf... is this the new benchmark??
proud owner
22-07-09, 22:23
I am also of the view that resale apt are more affordable and definitely more value as compared to some of the new launches. Then why did so many ppl poured into new launches?? I simply do not understand.
Asking prices for some of the mass condos I see are like $1000psf... is this the new benchmark??
i believe its got something to do with bank loan
banks seem more willing to match new launches than older developments ..
I am also of the view that resale apt are more affordable and definitely more value as compared to some of the new launches. Then why did so many ppl poured into new launches?? I simply do not understand.
Asking prices for some of the mass condos I see are like $1000psf... is this the new benchmark??
Some people are really crazy.:doh: ...even the experts don't understand why there are so many crazy people in Singapore.
This is not the new benchmark, not many HDB upgraders can afford the prices now. Please don't follow them, you will get caught for the high price and may not escape in time.
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