Property market sentiments 2011

[bullman]

i think this CCR MM investor is sweating when he thinks of what kind of yield he will be getting for his MM unit. As he waits indefinitely for his 1000psf increase in his property price, others are already realising gains in OCR.

That is an inherent problem from buying any MM units. Even at a fantastic $500 psf profit, the quantum gain is modest.

I bought a 441 sqft at Illuminaire at 1.7k + psf during the launch in 2009. The last transacted is around 2.2k. The net quantum gain is around 200k. Rental yield wise, it should fetch 5-5.5%.

[Wild Falcon]

Read my post again. I've already said if you're not looking at rental, then look at FUTURE DEVELOPMENT POTENTIAL of an area. But they all translate to ONE THING - future cash flows. There are some areas that has NEITHER rental yield OR anymore future development potential or growth. I'm not going to highlight which locality. You just have to find your own investment strategy. If rental is not important, so be it. Then make sure u invest in a growth area with new MRT, new downtown etc. But for me, I try to invest in something that gives me both strong recurring cash flows and capital gains.

Share like GLP, which do not provide dividend now doesn't mean it doesn't have a growth story. Similarly for properties, a low rental yield now can still command a high price if there is a "growth" story behind it, eg future MRT, university,CBD, etc,etc, which will eventually command a higher rental.

At the end of the day whether your property investment make money depends whether your property is in demand when you decided to sell it, be it rental, owner occupation or investment.

As I said, for investment properties, it is better to buy good yield properties, which can weathered the market downturn longer. unless personally you have some reasons like "foresight" or insider information on the surrounding development in the future, then you look at capital appreciation alone.

[teddybear]

Based on your reasoning, Central London zone 1 should sell at cheapest price compared to other zones because it has almost zero future development potential since already fully built up!

Read my post again. I've already said if you're not looking at rental, then look at FUTURE DEVELOPMENT POTENTIAL of an area. But they all translate to ONE THING - future cash flows. There are some areas that has NEITHER rental yield OR anymore future development potential or growth. I'm not going to highlight which locality. You just have to find your own investment strategy. If rental is not important, so be it. Then make sure u invest in a growth area with new MRT, new downtown etc. But for me, I try to invest in something that gives me both strong recurring cash flows and capital gains.

[blackfire]

Read my post again. I've already said if you're not looking at rental, then look at FUTURE DEVELOPMENT POTENTIAL of an area. But they all translate to ONE THING - future cash flows. There are some areas that has NEITHER rental yield OR anymore future development potential or growth. I'm not going to highlight which locality. You just have to find your own investment strategy. If rental is not important, so be it. Then make sure u invest in a growth area with new MRT, new downtown etc. But for me, I try to invest in something that gives me both strong recurring cash flows and capital gains.

Why u got so defensive and rude? I didn't say you are wrong in my post. I just add on to what you have said. Please read my post again.

[DaytonaSS]

Actually, he just acquired his CCR MM, so he is happy that CCR hasn't "witnessed phenomenal growth" yet

sh dont mind share where did u buy? congrats on your purchase btw

[DaytonaSS]

But for me, I try to invest in something that gives me both strong recurring cash flows and capital gains.

i think everyone wants that , the best of both world.

[sh]

sh dont mind share where did u buy? congrats on your purchase btw

private information lah...

[reuters]

CCR MM should be quite easy to rent out, but MM in the OCR might have some problems. Anyway, when CCR starts to move, it should bring up the general property market in singapore.

East Coast and Balestier are considered OCR right? What are their potential for capital appreciation since they are not CCR nor exactly very far away in OCR?

[DaytonaSS]

private information lah...

hahah , okie okie. Given the fire powder going ard, just share the district ba : )

[sh]

hahah , okie okie. Given the fire powder going ard, just share the district ba : )

district 9, near MRT. that's all I can say

[DaytonaSS]

CCR MM should be quite easy to rent out, but MM in the OCR might have some problems. Anyway, when CCR starts to move, it should bring up the general property market in singapore.

Actually agree on your point. OCR supports might not like to hear this, but IMHO , $1100-1200 psf for OCR hit ceiling for now already. For the price to move to next lvl, i feel CCR must chong sky high.

For this phenomenon to happen, Singapore got to lure in the foreign buyers. As a proven Property guru friend's sharing- OCR is Oysters for Singaporean. while CCR playground is for the world's privileged, whom the millions price tag will not put a dent in their pocket and loved living near/NEXT to orchard belt, or up n coming Sentosa Story.

While many OCR supports shoot down CCR and vice versa, i view it as a cycle. Now PRAY for CCR to shoot past the sky and it will bring OCR / RCR to a new high.

[Regulators]

bro, by saying this you will make a particular CCR MM owner's head even more swollen here.

As a proven Property guru friend's sharing- OCR is Oysters for Singaporean. while CCR playground is for the world's privileged, whom the millions price tag will not put a dent in their pocket and loved living near/NEXT to orchard belt, or up n coming Sentosa Story.

[Regulators]

200k in one over years not bad for an MM, if you had bought 5 units at illum in 2009, that would be a cool 1 mil profit in one over yr

That is an inherent problem from buying any MM units. Even at a fantastic $500 psf profit, the quantum gain is modest.

I bought a 441 sqft at Illuminaire at 1.7k + psf during the launch in 2009. The last transacted is around 2.2k. The net quantum gain is around 200k. Rental yield wise, it should fetch 5-5.5%.

[DaytonaSS]

bro, by saying this you will make a particular CCR MM owner's head even more swollen here.

CCR also got many price range, from 2000 psf to 4000 psf. For example i just go check The Marq selling price, OMG $4K to 4.5k psf, average quantum $12m. This kind of price is definitely the "privileged", dont u agree?

Society is like that one mah. Supposing a pretty chick u just meet in party, pretty chick :"So where do u stay?".
MM owner : "Orchard Road"

- result : Impressed. Unless the pretty chick ask, "MM or not??!!!"

we are so shallow right? Anyone wanna agrue this point, just look at your gf/wife. Same reason y all gals will have at least 1 Prada/LV/Chanel/.... Branded.

[rattydrama]

200k in one over years not bad for an MM, if you had bought 5 units at illum in 2009, that would be a cool 1 mil profit in one over yr

That will mean you need to have around 900K of cold hard cash for the 5 units with 80% loan. How many of us will throw towel in 2009?

Same question, will anyone buy 5 units of CCR MM units now?

[rattydrama]

we are so shallow right? Anyone wanna agrue this point, just look at your gf/wife. Same reason y all gals will have at least 1 Prada/LV/Chanel/.... Branded.

Well after owning a few BRANDED, no longer interested to have more... it corresponds with one's age and personal preference as you age. I would prefer to keep more golds or silver instead.

[DaytonaSS]

Well after owning a few BRANDED, no longer interested to have more... it corresponds with one's age and personal preference as you age. I would prefer to keep more golds or silver instead.

Well, congrats for "arriving" . " no longer interested to have more indicates "arrived" . No need to argue which is better, just own a few in each region

[kane]

I used to love the idea of living in orchard area in the 90s. But now it's become so crowded. I prefer to spend my weekends in the suburbs unless there's something I need to get that's not available elsewhere. One man's meat as another man's poison. But having said that, I think all property prices regardless of region have a good chance of chucking along in 2011.

[rattydrama]

This is by far the best concept (from regulators). This shows that one is in control of his investment & cash - its like wearing a bullet proof jacket. To say CCR or OCR will chiong like no tomorrow remains to be true only when it really comes.

to further add

look for lowest psf & low quantum as compared to the surroundings,
look for rental yield around ~4%
look at absolute rental quantum per month (avg of $3K - not too difficult to get in centralized areas)
make sure decent size - wider choice for tenants
look for upside potential
low quantum which you can pay off pretty quickly and leave behind some spare cash for future investment opportunity wow very solid
en-bloc etc......

Let me get this straight.
Assuming you pay 200k for a $1mil condo, take loan 80% for 20 years.
Assuming the rental can fully cover mortgage + other expenses, so that in 20 years, the loan is fully repaid.

so in 20 years time, fully paid up, and if sell at $900k, you still make 900k-200k = 700k profit? instead of 100k loss.
Since your initial cash outlay is 200k.

Let me chew on this.
What a foreign concept

[rattydrama]

I used to love the idea of living in orchard area in the 90s. But now it's become so crowded. I prefer to spend my weekends in the suburbs unless there's something I need to get that's not available elsewhere. One man's meat as another man's poison. But having said that, I think all property prices regardless of region have a good chance of chucking along in 2011.

That is how I feel as well. During the early 90s, going to Orchard Road is a big thing and looking forward. Now, Orchard Road is very crowded and I only go there to see Christmas lighting once a year or if there is visitor around.

Most of the time, I will try to avoid.. even the lawyer office for my property transaction is dealt with at Toa Payoh HDB Hub.

[DaytonaSS]

I used to love the idea of living in orchard area in the 90s. But now it's become so crowded. I prefer to spend my weekends in the suburbs unless there's something I need to get that's not available elsewhere. One man's meat as another man's poison. But having said that, I think all property prices regardless of region have a good chance of chucking along in 2011.

Don't mind I ask ah, where not crowded? Only place I drive ard not crowded is in sentosa cove. Ultra beautiful community.

Imagine 7m population. The thought send chills down my spine. Maybe then pay n pay will start developing lim chu kang. As the population swells , there is only 1 direction the price is heading. Qns is approve PR faster or building housing faster. All the office space being build in marina area needs pple to fill up.

[Regulators]

you speak like you were around long before singapore got its independence. I value the experience of people in that era. I am certain Property Owner is one such guru that came up from that era.

Well after owning a few BRANDED, no longer interested to have more... it corresponds with one's age and personal preference as you age. I would prefer to keep more golds or silver instead.

[kane]

Suburban malls are not as crowded. With the exception of Nex. That's one madhouse right now. If I have to go to orchard. I'll go to Centrepoint, not popular with the tourist or the young crowd. Otherwise, go to places like the zoo or reservoir. Weekends isn't just for shopping and hanging around town.

[rattydrama]

Don't mind I ask ah, where not crowded? Only place I drive ard not crowded is in sentosa cove. Ultra beautiful community.

Imagine 7m population. The thought send chills down my spine. Maybe then pay n pay will start developing lim chu kang. As the population swells , there is only 1 direction the price is heading. Qns is approve PR faster or building housing faster. All the office space being build in marina area needs pple to fill up.

No need to go all the way to Lim Chu Kang, there are still empty lands in Yishun, Sembawang and Woodlands. Should have enough to fill the 7m.

Right now, solving the housing issues for the newly weds. It looks promising that the population will start to increase.

[DaytonaSS]

No need to go all the way to Lim Chu Kang, there are still empty lands in Yishun, Sembawang and Woodlands. Should have enough to fill the 7m.

Right now, solving the housing issues for the newly weds. It looks promising that the population will start to increase.

3 district to hold 1.5m more pple? It's sounds damn scary! The 3 area seems to need to travel through CTE to get to town. Now that pay n pay got lots of ERP on CTE, it does sound like good idea to help ring in the $$$$.

If lim chi kang sell land, I go buy a small plot. Keep for 3 generation.

[kane]

3 district to hold 1.5m more pple? It's sounds damn scary! The 3 area seems to need to travel through CTE to get to town. Now that pay n pay got lots of ERP on CTE, it does sound like good idea to help ring in the $$$$.

If lim chi kang sell land, I go buy a small plot. Keep for 3 generation.

It's probably LH so at best you can only keep it for 2 generation.

[reuters]

Suburban malls are not as crowded. With the exception of Nex. That's one madhouse right now. If I have to go to orchard. I'll go to Centrepoint, not popular with the tourist or the young crowd. Otherwise, go to places like the zoo or reservoir. Weekends isn't just for shopping and hanging around town.

I have friends with kids and above 40s who will avoid Orchard on weekends, but I still prefer to walk around ION, Taka, Paragon, 313@Somerset because the environment is more 'happening'. Recently the Shoppes at MBS are also picking up some momentum! Looks like another hotspot for those who love shopping and having dinners. Given a choice, I will now prefer to live nearer to MBS than Orchard.

[rattydrama]

you speak like you were around long before singapore got its independence. I value the experience of people in that era. I am certain Property Owner is one such guru that came up from that era.

haha got out of context, its in response to DaytonaSS post on BRANDED PRADA....Oops.....

I value the experience of the seniors in that era - they are in a time of uncertainty. Those people who make it big in property have guts and foresight.

SG to become Switzerland of the East. Lets hope.

[rattydrama]

3 district to hold 1.5m more pple? It's sounds damn scary! The 3 area seems to need to travel through CTE to get to town. Now that pay n pay got lots of ERP on CTE, it does sound like good idea to help ring in the $$$$.

If lim chi kang sell land, I go buy a small plot. Keep for 3 generation.

Do you think the 1.5m will all go to these 3 areas? Dont forget our MMs in CCR hor. Devilplate might want to sell his.

[rattydrama]

I have friends with kids and above 40s who will avoid Orchard on weekends, but I still prefer to walk around ION, Taka, Paragon, 313@Somerset because the environment is more 'happening'. Recently the Shoppes at MBS are also picking up some momentum! Looks like another hotspot for those who love shopping and having dinners. Given a choice, I will now prefer to live nearer to MBS than Orchard.

will you pay to stay in MBS or have some spare cash to invest in another property?