Apartment at The Marq fetches $5,842 psf, sets a new price record

[devilplate]

At 7%, either we allow more more more FW and FT to enter our land to make demand >>>> supply or we bring the price of ppty down down down. Since the latter is unlikely, only solution is to bring in more foreigners...

during the darkest period....i tink only 6% max max is achievable....bcoz rental aso drop alot during tat time....

[stalingrad]

ooo...too high standard...

like dat, forever no nid to invest in ppty liao.....seriously dun tink any ppty worth 7% even during the darkest period in 09

haha, you are wrong. we paid less than 600psf for our condo in early 2007. and the rental yield is about 6 to 7%.

what I trying to tell you is there are periods of time where real estate investments make sense. but not now.

[Eldenfirefly]

Unless our interest rates are a lot higher, otherwise, I don't think we will see 7% rental yield. If have, will immediate have buyer come in and push the price up, and the yield down. Because otherwise, the gap between interest rate and that rental yield will be so big as to create arbitrage effect!

[devilplate]

haha, you are wrong. we paid less than 600psf for our condo in early 2007. and the rental yield is about 6 to 7%.

what I trying to tell you is there are periods of time where real estate investments make sense. but not now.

u sure ur rental was so high when developer launch carabelle?

3bedder in tat area ard 2.5k per mth only in 2007

[devilplate]

if based on my orginal purchase px and current rental...i tink i got double digit rental yield

[stalingrad]

u sure ur rental was so high when developer launch carabelle?

3bedder in tat area ard 2.5k per mth only in 2007

true, but now it is more 4k per month. yes, I know what you are saying. what counts is the rental yield at the time of purchase. so, we took some gamble because in early 2007 rental yield was about 4%. but the gamble we took is nothing compared with the gambles people take today. They are accepting rental yield of 2 to 3%. that is just crazy.

[Eldenfirefly]

Like that, then for older generation that buy bungalow house for less than 100k, what is their rental yield now? lol

[stalingrad]

if based on my orginal purchase px and current rental...i tink i got double digit rental yield

that is because you bought at the market troughs. but this market is more likely a peak than a trough.

but you cannot time the market, right. So, the best way is to be cautious and conservative. when the rental yield is reasonable by historical standards, it is time to buy. when the rental yield is so low, like it is now, it is time to sell. I would not buy anything in this market.

[amk]

very funny

one silly transaction dun mean anything....

I was poking him for fun. his line of reasoning is really funny. "high benchmark prices in CCR" --> he then concluded " yea just as I said before, CCR big unit is dead". huh , is this logic even making any sense ? then I post him his favorite projects gaining psf within a month, he concludes " yea just as I said, CCR is dead"

u r not going to win over him abt this 7% rental yield argument

[stalingrad]

Like that, then for older generation that buy bungalow house for less than 100k, what is their rental yield now? lol

but you cannot say that. the money the old folks spent were 1960 SG dollars, which have much higher buying power than today's SG dollars.

Robert shiller shows that adjusting for inflation, real estate is just an average investment, producing returns that equal inflation rates.

[stalingrad]

I was poking him for fun. his line of reasoning is really funny. "high benchmark prices in CCR" --> he then concluded " yea just as I said before, CCR big unit is dead". huh , is this logic even making any sense ? then I post him his favorite projects gaining psf within a month, he concludes " yea just as I said, CCR is dead"

u r not going to win over him abt this 7% rental yield argument

yes, whatever you said, CCR is dead and buried. don't just take my word for it. look around. the buzz is all about OCR properties. foresque is selling for 1200psf. Isn't what I predicted?

[Eldenfirefly]

but you cannot say that. the money the old folks spent were 1960 SG dollars, which have much higher buying power than today's SG dollars.

Robert shiller shows that adjusting for inflation, real estate is just an average investment, producing returns that equal inflation rates.

Depends on what you define as "buying power". in 1960, one SGD is worth a lot less in terms of international currencies like USD as compared to what one SGD is today. So, in terms of international buying power, I think SGD has increased since 1960.

Just think in 1960, if you want to go for a one week holiday trip to US, how much will it cost you. Now if you go for the same trip, does it cost a lot more?

[stalingrad]

Depends on what you define as "buying power". in 1960, one SGD is worth a lot less in terms of international currencies like USD as compared to what one SGD is today. So, in terms of international buying power, I think SGD has increased since 1960.

Just think in 1960, if you want to go for a one week holiday trip to US, how much will it cost you. Now if you go for the same trip, does it cost a lot more?

it will cost you far more to go on a vacation in the US today than in the 1960s whether you pay for your trip with US or SG dollars. that is inflation.

in the 1960s, a bungalow cost 100k, but in the 1960s, a kg of pork cost only 5 cents vs. 10 dollars today.

[devilplate]

but you cannot say that. the money the old folks spent were 1960 SG dollars, which have much higher buying power than today's SG dollars.

Robert shiller shows that adjusting for inflation, real estate is just an average investment, producing returns that equal inflation rates.

wanted to noe is there any website tat tabulate SG ppty price vs inflation ??

[scsc]

wanted to noe is there any website tat tabulate SG ppty price vs inflation ??

Calling JLRX