Will prices in TK drop?

[Jcmillineum]

MM are makeup of investors with lower budget and die die to invest.
quatuam must be low, to attract buyers.

if prices for MM is to fetch sky high, isnt it going to priced out the budget investors??
etc 550k for 366sqft for a MM, and do you expect to sell 600-700k after choked off supply of MM?

then who buy?

FOr your information...the phenomenon is already happening...valuation for MM units in TK is from 650k onwards now...

[Jcmillineum]

Please bear in mind that the big units at the East Coast (District 15) are also selling well. D15 is the most popular residential district in Singapore, and the 3rd most prime after District 9 and 10. It has been reported in the papers recently and I am not making any assumptions.

Some newly launched condos in D15 are able to get above $2500psf for some of their units, and new condo launches in Amber and Meyer areas are now averaging $1800-2300psf. And you be surprised these are all not MM units. They are large sized units ranging from 1000 - 6500 sq.ft. Far East, CDL and a China developer will be launching 3 new condos in the Amber/Marine Parade area and its highly expected that they are launching them above $2000psf. This is because the 3 are located in enbloc properties of which the breakeven price already is more than $1600psf.

Some of the newest condos like Aalto, Silversea, Meyerise, The Cape are all in the east and they are selling at close to $2000psf or more. This is actually D9/D10 prices for the medium range condos, and yet they are easily transacted and you see ongoing transactions every month without fail.

Next on the enbloc list is Laguna Park. Once successful, be prepared to see condos there (99 years) launched at above $1500psf. And it wont be MM units for sure.

Dont underestimate the potential of D15. It has been a traditionally strong residential area with its charm of the sea and the landscape, with fine eateries around Katong n the airport is just a brisk away.

Yes Shawn! I believe TK is the next Holland V to come, where expats will live as its so close to the beach and fine eateries like siglap and kembangan stretch. I always go against sentiments, and when people are itching to catch TK properties one day....behold, the wave of expats will arise...

[wannabe]

It is said by analysts that Landed/land price in these areas will drop by as much as 20%

That sounds great! where is your source of info?

[wannabe]

Agreed, and as jwong71 said, mm survive by low quantum, or it not mm anymore....

Agreed!....MMs are not welcomed in a prime area like D15.

[Leeds]

That sounds great! where is your source of info?

Landed home prices to fall in some areas after new rules, say analysts

by Wong Siew Ying

04:45 AM Nov 26, 2011

SINGAPORE - Prices of landed homes in Telok Kurau, Kovan and Joo Chiat could
fall by 10 to 20 per cent following the introduction of new rules by the
Urban Redevelopment Authority (URA) to limit the number of apartments that
can be built in low-density housing areas, property analysts said.

The rules, which kicked in on Thursday, are more likely to affect smaller
developers, the analysts said. The plot size for all new flat developments
in Singapore must now be at least 1,000 sq m and there is a cap on the
number of units that can be built in a project in certain areas to prevent
overcrowding.

Homeowners hoping to sell their plots for redevelopment in the areas
identified by the URA as "problematic" will be particularly hit, analysts
said. According to its circular to professional institutes, the URA named
Telok Kurau, Kovan and Joo Chiat/Jalan Eunos estates.

Mr Eugene Lim, key executive officer at property consultancy ERA, said:
"Developers are known to pay higher prices for land because they know they
can build small units and they can price them at higher per square foot.

"There are now restrictions. You will see developers being less aggressive
in their bids and we could possibly see prices for land in these areas
coming down by as much as between 10 and 20 per cent."

With the new requirements, developers will not be able to build as many
units on the site. For instance, in the past, a 1,000-sq-m plot would yield
about 20 units, but now the developers can build just over 10 units on the
same plot.

Because the URA has limited the number of "shoebox" or small units that can
be built in a project in order to improve the overall living environment,
analysts said developers will now have to rethink their marketing strategy.

"If you are looking at a much larger unit, say about 1,200 sq ft and you are
hoping to sell at the same unit price of S$1,000 psf, then you are talking
about close to S$1.2 million, as opposed to less than a million kind of
quantum. Therefore it may not be easy to sell," said Ms Chia Siew Chuin,
director of Research & Advisory at Colliers International.

But the upside of the new rules is that housing units will be better
designed, more spacious and with larger areas for landscaping.

[devilplate]

More like 10-20% lower enbloc px....

Sell in the open market shd be slightly higher for landed since no more new apts in near future

[wannabe]

More like 10-20% lower enbloc px....

Sell in the open market shd be slightly higher for landed since no more new apts in near future

agree. complaints were made by residents in the affected areas in the 1st place, hence the ruling.
How do people live in MMs anyway?

[Leeds]

With the new ruling, new apartments must be at least 1076 sq ft in the case of TK and 753 sq ft in the case of Kovan area. It would mean that land price in TK and Kovan areas will be greatly affected since no more MM units are allowed. With reducing land prices, I would expect the price pressure will also be filtered down to the older developments in these areas where most of these developments have potential for en bloc. I believe prices for these older developments should also come down in line with the new restrictions.

[TKT]

With the new ruling, new apartments must be at least 1076 sq ft in the case of TK and 753 sq ft in the case of Kovan area. It would mean that land price in TK and Kovan areas will be greatly affected since no more MM units are allowed. With reducing land prices, I would expect the price pressure will also be filtered down to the older developments in these areas where most of these developments have potential for en bloc. I believe prices for these older developments should also come down in line with the new restrictions.

Bro, how to come down in TK when the prices of L99 in Punggol can be 1300-1500psf? ... vs freehold around 1000psf for the older projects and maybe 1200-1300psf for the new ones in TK?

In fact, this new ruling is very good news for TK apartments, as it means lesser supply in future (or at least unlikely to have MMs anymore) whereas the demand for rentals/own living in this area remains so strong.

Hold on to this, if you already have one... and get more if the prices are right!







If you were referring to landed, though, then may be prices will moderate.
Indeed the landed prices have gone up so much, partly due to enbloc reasons and this new ruling certainly put paid to quite a few hopefuls.

On the flip side, for those who live and dont intend to enbloc there, certainly welcomed the change, as otherwise their nice landed neighborhood becomes a nightmare of rows and rows of apartments.

For existing apartments though, it is, as I mentioned, a good thing.

[wind30]

If you were referring to landed, though, then may be prices will moderate.
Indeed the landed prices have gone up so much, partly due to enbloc reasons and this new ruling certainly put paid to quite a few hopefuls.

On the flip side, for those who live and dont intend to enbloc there, certainly welcomed the change, as otherwise their nice landed neighborhood becomes a nightmare of rows and rows of apartments.

For existing apartments though, it is, as I mentioned, a good thing.

I think he is refering to landed lah.

I think it is a bit too late. I drove down TK area today on sunday just to check out how the place is like. So crowded with small roads. Full of cars parked to one side and driving in and out is troublesome. JooChiat, east coast road also jam and crowded.

Seriously all people who bought TK landed thinking of enbloc are now royally screwed. No chance, price drop, and estate so crowded because of all the mini condos. Really does not feel like landed especially driving around the estate. So many cars and so jam.

Where do TK guys go and eat? Parking looks like a nightmare at all the eateries.