Profit margins for DBSS developers 'look high'

[devilplate]

The SPH journalist was requesting for MOP to be removed so that she can rent out the BTO immediatly.. Now you want to increase to 10 years, she angry how?? Then she will write more articles to agitate the forumers here.. Some people here are quite old already, cannot be agitated too much..

by her definition, HDB surely is an investment vehicle liao

so how to say HDB is public housing and shd be affordable?

conflict of interest liao...

JUST BOO BOO HER OFF LOR...hehehehehe

[ysyap]

The SPH journalist was requesting for MOP to be removed so that she can rent out the BTO immediatly.. Now you want to increase to 10 years, she angry how?? Then she will write more articles to agitate the forumers here.. Some people here are quite old already, cannot be agitated too much..

Don't worry... forumers here are not so easily agitated, just very kapo to want to discuss about such articles ... even if too old and need bypass, just call KBW and tell him you need that same subsidy he had.

[devilplate]

Don't worry... forumers here are not so easily agitated, just very kapo to want to discuss about such articles ... even if too old and need bypass, just call KBW and tell him you need that same subsidy he had.

he prolly refering to wenqing only la....

the rest of us ok one la....

smtimes get a little heated up lor like i mentioned smbody's wifey....ops...my bad la...

[linchong84]

She is giving govt 3 routes to choose from:

1. give her good and cheap bto like dawson.

2. if cannot, then she will still take lousy punggol, jurong, yishun bto. but remove the mop so that she can rent out and gek power to buy pte.

3. if still cannot, then she will threaten to leave (who needs her anyway)..

it's just like your young children.. when they want you to buy toy A or toy B and you refuse to, they will make a scene at the toy shop and cry out loud refuse to leave to attract public attention.. so parents also got 3 ways to deal with this kind of children..

1. give in to them and buy the toy. Eventually, they will know once they cry, you will give in.. and they will always cry to make u give in every single time they want something.. and they will grow up being very dependent and spoilt..

2. dun give in to them and beat the hell out of them in public.. the public will think you are a bad parent who mistreats the child and condemn you..

3. dun give in to them but give them fake promises and sooth them to go home peacefully without making a scene.. when they reach home and no more public eyes, whack the hell out of them so that next time they dare not make noise in the public again..

i think govt is doing (3) which is good haha..

[ysyap]

he prolly refering to wenqing only la....

the rest of us ok one la....

smtimes get a little heated up lor like i mentioned smbody's wifey....ops...my bad la...

Hahaha!

[ysyap]

She is giving govt 3 routes to choose from:

1. give her good and cheap bto like dawson.

2. if cannot, then she will still take lousy punggol, jurong, yishun bto. but remove the mop so that she can rent out and gek power to buy pte.

3. if still cannot, then she will threaten to leave (who needs her anyway)..

it's just like your young children.. when they want you to buy toy A or toy B and you refuse to, they will make a scene at the toy shop and cry out loud refuse to leave to attract public attention.. so parents also got 3 ways to deal with this kind of children..

1. give in to them and buy the toy. Eventually, they will know once they cry, you will give in.. and they will always cry to make u give in every single time they want something.. and they will grow up being very dependent and spoilt..

2. dun give in to them and beat the hell out of them in public.. the public will think you are a bad parent who mistreats the child and condemn you..

3. dun give in to them but give them fake promises and sooth them to go home peacefully without making a scene.. when they reach home and no more public eyes, whack the hell out of them so that next time they dare not make noise in the public again..

i think govt is doing (3) which is good haha..

So you mean she's been asked to go into the boss's room the next day after her article was published? Hahaha! Let's see how her next article will sound or will she even ever get to write again?

[yaozong7]

She is giving govt 3 routes to choose from:

1. give her good and cheap bto like dawson.

2. if cannot, then she will still take lousy punggol, jurong, yishun bto. but remove the mop so that she can rent out and gek power to buy pte.

3. if still cannot, then she will threaten to leave (who needs her anyway)..

it's just like your young children.. when they want you to buy toy A or toy B and you refuse to, they will make a scene at the toy shop and cry out loud refuse to leave to attract public attention.. so parents also got 3 ways to deal with this kind of children..

1. give in to them and buy the toy. Eventually, they will know once they cry, you will give in.. and they will always cry to make u give in every single time they want something.. and they will grow up being very dependent and spoilt..

2. dun give in to them and beat the hell out of them in public.. the public will think you are a bad parent who mistreats the child and condemn you..

3. dun give in to them but give them fake promises and sooth them to go home peacefully without making a scene.. when they reach home and no more public eyes, whack the hell out of them so that next time they dare not make noise in the public again..

i think govt is doing (3) which is good haha..

It's an SPH journalist leh.........sounds suspiciously like a planted article to me to take a swipe at Gen Y......

Then again, it's also true that condo fever has swept many Gen Y. I can never understand why couples < $10k want to go the condo route straight away, instead of BTO/ECs?

[ysyap]

It's an SPH journalist leh.........sounds suspiciously like a planted article to me to take a swipe at Gen Y......

Then again, it's also true that condo fever has swept many Gen Y. I can never understand why couples < $10k want to go the condo route straight away, instead of BTO/ECs?

Agreed. They should climb, progressing from one to the next, otherwise they'll soon discover the great financial burden when kids come along, etc! Overcommitment is . Their mindset must be guided and educated...

[devilplate]

It's an SPH journalist leh.........sounds suspiciously like a planted article to me to take a swipe at Gen Y......

Then again, it's also true that condo fever has swept many Gen Y. I can never understand why couples < $10k want to go the condo route straight away, instead of BTO/ECs?

i overheard smthing when i visit EC showflat

a yng couple looking at the model happily and shows great interest....den i overheard their conversation wif their mother....their mom says go get punggol BTOs la....300k 4rm flat so cheap n affordable ....y buy 6xxk ECs?

hehe...pardon me as i am not a gd story teller(its a true story)

[devilplate]

Agreed. They should climb, progressing from one to the next, otherwise they'll soon discover the great financial burden when kids come along, etc! Overcommitment is . Their mindset must be guided and educated...

tats y ended up low birth rate lor

[ysyap]

i overheard smthing when i visit EC showflat

a yng couple looking at the model happily and shows great interest....den i overheard their conversation wif their mother....their mom says go get punggol BTOs la....300k 4rm flat so cheap n affordable ....y buy 6xxk ECs?

hehe...pardon me as i am not a gd story teller(its a true story)

Unfortunately many couples are tempted by the facilities on offer and totally ignore their financial muscles! Well its their choice after all! This is what the govt can offer and so long as they don't make ridiculous demands (give them one inch they ask for one mile), then I guess its still ok. But I must add that the mother is prudent. She sees further but the same may not be repeated for many other young couples!

[linchong84]

Unfortunately many couples are tempted by the facilities on offer and totally ignore their financial muscles! Well its their choice after all! This is what the govt can offer and so long as they don't make ridiculous demands (give them one inch they ask for one mile), then I guess its still ok. But I must add that the mother is prudent. She sees further but the same may not be repeated for many other young couples!

I think the mum is giving the wrong advice.. 6xxk EC is affordable to young couple ma.. Now inflation so high, keep the money in bank or cpf for what??Buy BTO or EC can.. Buy DBSS is a big no no..

[devilplate]

I think the mum is giving the wrong advice.. 6xxk EC is affordable to young couple ma.. Now inflation so high, keep the money in bank or cpf for what??Buy BTO or EC can.. Buy DBSS is a big no no..

if the yng couple can buy bto meaning they r earning less den 8k mah.....EC is more for 8-10k group of 1st timer mah

[linchong84]

if the yng couple can buy bto meaning they r earning less den 8k mah.....EC is more for 8-10k group of 1st timer mah

Hmm true.. If still <8k maybe shouldn't tax themselves too hard.. But BTO not easy to strike..

[ysyap]

I think the mum is giving the wrong advice.. 6xxk EC is affordable to young couple ma.. Now inflation so high, keep the money in bank or cpf for what??Buy BTO or EC can.. Buy DBSS is a big no no..

Well you don't know the context mah... maybe they have cash but don't want to spend on DBSS or EC but invest in some other stuff instead of putting into bank!

[august]

Read - "normal salaryman". Forgot your reading glasses?

u use a "normal salaryman" as your example for japan. so likewise i use myself as an example, which is of cos not representative of majority sporean public housing buyers. i may need reading glasses but u might need reading brains. LOL

[ysyap]

Hmm true.. If still <8k maybe shouldn't tax themselves too hard.. But BTO not easy to strike..

BTO not easy to strike also got 50-50 or 1 in 2 chance of getting for a project which is two times oversubscribed. Much better than toto which is like 1 in 600 000 chance of winning.

[masterkey]

u use a "normal salaryman" as your example for japan. so likewise i use myself as an example, which is of cos not representative of majority sporean public housing buyers. i may need reading glasses but u might need reading brains. LOL

you should stop making a fool out of yourself.

[phantom_opera]

As expected, HDB resale price index up in Q2:

HDB’s flash estimate of the 2nd Quarter 2011 Resale Price Index (RPI) is 179.9, an increase of 2.9% over 1st Quarter 2011

The index is a laggard, reflecting txns done 3 months ago ... now th index should be already 183-185. I expect index to hit close to 200 at the peak.

[ysyap]

As expected, HDB resale price index up in Q2:

HDB’s flash estimate of the 2nd Quarter 2011 Resale Price Index (RPI) is 179.9, an increase of 2.9% over 1st Quarter 2011

The index is a laggard, reflecting txns done 3 months ago ... now th index should be already 183-185. I expect index to hit close to 200 at the peak.

By year end? or next year end?

[thomastansb]

Not forgetting, no clean water or maybe that time already have, no jobs, no MRT, screw up bus with no air con, no shopping center and many many more.... It is like Vietnam. Nowadays, people are so greedy and really damn stupid. Want to buy first world country flats at Vietnam prices. Knn

not sure whether really HDB is getting less affordable....i remember my childhood days, majority of my frens staying in 1 or 2room HDB flats with family of 6 at least.....most of them cannot even afford to lay tiles and do up proper kitchen.....i am sure u still can see some old 2/3rm flats in original HDB condition(bare ground without tiles)

few of my childhood frens from such family background....super poor....den now staying and upgraded to at least 4rm flat.....so whether HDB flats is getting less affordable is really questionable

standard of living changed....lifestyle changed.....so dun expect the same kind of prices previously.....

[thomastansb]

If they really want, I think should have MOP 20 years and sell them at 100k.

times changed...last time MOP 10yrs and cannot sublet out at all!! now MOP 5yrs only

mabe shd revert back to MOP 10yrs for selling and subletting since u say HDB is not an investment ppty and its for primary residence.....den can aso reduce the bto price at the same time.....but surely got ppl complain 10yrs so long!! blah blah....

how to satisfy everybody?

[thomastansb]

For those who strike, 33% rejected a flat.

So are those whiners really in need of a flat? Not forgetting, 90% of the 33% who rejected are first timer.

This Gen is too greedy. Want to have no MOP, then their father buy or rent from them ah? Want to stay near parents (Serangoon) but yet apply in Dawson. Ridiculous.

Also, there will always be a few who are really having very low income but it can't be helped. As long as majority needs are met, then I think it is good enough.

Lazy and stupid

Hmm true.. If still <8k maybe shouldn't tax themselves too hard.. But BTO not easy to strike..

[ysyap]

For those who strike, 33% rejected a flat.

So are those whiners really in need of a flat? Not forgetting, 90% of the 33% who rejected are first timer.

This Gen is too greedy. Want to have no MOP, then their father buy or rent from them ah? Want to stay near parents (Serangoon) but yet apply in Dawson. Ridiculous.

Also, there will always be a few who are really having very low income but it can't be helped. As long as majority needs are met, then I think it is good enough.

Lazy and stupid

Think the new balloting system takes into consideration the number of times a balloter rejects. Those who reject before will be behind in priority as compared with those who haven't rejected. The highest priorities goes to those who were unsuccessful in their previous attempts!

[devilplate]

Think the new balloting system takes into consideration the number of times a balloter rejects. Those who reject before will be behind in priority as compared with those who haven't rejected. The highest priorities goes to those who were unsuccessful in their previous attempts!

I highly suspect so! From wat i gathered so far on the ground....

So dun anyhow apply n reject for the very first time

[Jadey]

Fair enough. But what I meant is there are always other options available. Average income of 5k have no problem paying for a 4 bedroom. Period. But if we have those slightly lower income like 1k each, there are other options available.

Buy a Vios if you cannot afford BMW. That is all I can say.

Thats only IF you dont have a family or any elderly parents to take care, and you dont believe you ever need to have a retirement plan.

[howgozit]

It appears BT has understated the land sale price. If this is correct, the profit margin is not as high as initially thought, more like 5-7% than a whopping 70+%


http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_18254373848B707B482578BF002C0CFE/$file/Clarify.BT.article_2011-06-30.pdf?openelement


SIM LIAN GROUP LIMITED
(Company Registration No. 200004760C)
CLARIFICATION OF BUSINESS TIMES ARTICLE PUBLISHED ON 30 JUNE 2011
The Board of Directors of Sim Lian Group Limited (the “Company”) refers to the Business Times article entitled “Profit margins for DBSS developers ‘look high’” published on 30 June 2011 and wishes to clarify that the land price of $82,222,000 and the maximum GFA of
721,188 square feet for our project Centrale 8 are incorrect and therefore the profit and gross profit margin are correspondingly incorrect.
The land price for Centrale 8 is $178,128,000 as stated in our announcement no. 112 of 3 August 2010 and the maximum permissible Gross Floor Area is 682,384.9 square feet as stated in our announcement no. 164 of 6 August 2010.
By Order of the Board
Ang Lay Hua
Company Secretary
Sim Lian Group Limited
30 June 2011

[thomastansb]

This is not what I am trying to say. My point is that Singaporeans are fussy. 33% rejected when they are given a choice. That is the main point.

Think the new balloting system takes into consideration the number of times a balloter rejects. Those who reject before will be behind in priority as compared with those who haven't rejected. The highest priorities goes to those who were unsuccessful in their previous attempts!

[thomastansb]

Suddenly, it is everyone else fault for you not earning enough

Thats only IF you dont have a family or any elderly parents to take care, and you dont believe you ever need to have a retirement plan.

[taggy]

http://mndsingapore.wordpress.com/20...ing-but-false/

Startling But False
I was startled when I read the front page article in the Business Times “Profit margins for DBSS developers ‘look high’ ” (Jun 30). It alleged that the DBSS developer’s profit margin for Centrale 8 was 76%, even after it had reduced its highest selling price by over $100,000.

I thought it could not be right and had it checked. Sure enough, the article was fraught with serious errors.

For example, it quoted a land price of $82,222,000 and a maximum GFA of 721,188 square feet for the project. Both figures were wrong. The correct figures were respectively $178,128,000 and 682,385 square feet. This was a huge difference of almost $100 million. The errors led to a gross over-estimation by BT of the developer’s profit and gross profit margin.

Based on these figures alone, the profit margin would have been 26%, not 76%.

But even the reduced figure was wrong, as the article had excluded key cost items such as financing, marketing and administrative costs. These are significant costs and when included, would have further lowered the profit margin for all the DBSS projects listed in the article.

I have been in MND for 5 weeks, and not sleeping well. I am working my guts out to try to calm the market, for the good of all Singaporeans.

But I can’t do it alone. I need all to help.

HDB architects are working round the clock to ramp up BTO supply. Contractors are building up capacity to deliver the flats on time. HDB is setting BTO prices carefully to help guide the market.

I hope our media can do their part too. There is some panic buying out there, by people worried that prices will continue to rise. Sensationalised articles will merely feed the frenzy.

If only BT had verified the facts, the misleading article could have been avoided. Please help to circulate this blog to your friends.