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Thread: Will property prices stay

  1. #1
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    Default Will property prices stay

    Everyone has been saying if for stay just buy the condo unit u like as long as one can afford it. If for investment, can wait for prices to dip. For latter, will it ever happen? Many have been waiting sine 2010 when prices skyrocketed from the last crisis. Should one just hoot and buy one or carry on waiting? Inflation is surging and eating into bank savings. How how how?

    Please share views

  2. #2
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    everyone buy buy buy. we need a lot more optimism before the bubble if any can burst!

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    Quote Originally Posted by KC76
    Everyone has been saying if for stay just buy the condo unit u like as long as one can afford it. If for investment, can wait for prices to dip. For latter, will it ever happen? Many have been waiting sine 2010 when prices skyrocketed from the last crisis. Should one just hoot and buy one or carry on waiting? Inflation is surging and eating into bank savings. How how how?

    Please share views
    It depends on how much cash u have n ur existing financial commitments. No harm buying a FH or 999LH to keep if u have a lot of idle cash.

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    Quote Originally Posted by hyenergix
    It depends on how much cash u have n ur existing financial commitments. No harm buying a FH or 999LH to keep if u have a lot of idle cash.
    If its meant for LH rental pending HDB TOP? Shld still buy now?

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    Quote Originally Posted by KC76
    If its meant for LH rental pending HDB TOP? Shld still buy now?

    Sorry abit misleading. Let me paraphrase. Does it mk sense to buy condo in todays prices if the intention is to to rent out first. Once current hdb TOP, the family will move in condo n rent. Out hdb.

  6. #6
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    They are conflicting messages in the market. On the one hand, there is still some under supply in the market. In addition, there is call for sustained immigration. On the other hand, the RCR & OCR condos have risen to a high levels (you know which ones!) and may not be sustainable soon. Having said that, there are still reasonably prized ones such as Ripple Bay as well as freehold resale condos in the suburbs.

    For me, I am more inclined to buy if it is within CCR as the prices have stabilised with more room for capital appreciation if hold for longer term.

    These are personal thoughts
    Last edited by desfrie; 04-05-12 at 08:26.

  7. #7
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    How are you going to buy if you haven fulfil MOP?

    Unless your HDB bought before Aug 2010....

  8. #8
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    Quote Originally Posted by desfrie
    They are conflicting messages in the market. On the one hand, there is still some under supply in the market. In addition, there is call for sustained immigration. On the other hand, the CCR & OCR condos have risen to a high levels (you know which ones!) and may not be sustainable soon. Having said that, there are still reasonably prized ones such as Ripple Bay as well as freehold resale condos in the suburbs.

    For me, I am more inclined to buy if it is within CCR as the prices have stabilised with more room for capital appreciation if hold for longer term.

    These are personal thoughts
    How about LH condo in queenstown area? Is that RCR or CCR?

  9. #9
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    Quote Originally Posted by ZeeWee
    How are you going to buy if you haven fulfil MOP?

    Unless your HDB bought before Aug 2010....
    Under parent's name lor.

  10. #10
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    Quote Originally Posted by KC76
    How about LH condo in queenstown area? Is that RCR or CCR?
    Queenstown is RCR if I am not wrong as to my mind, CCR is District 9,10 & 11. I think there is still value in suburban freehold condos. As for Queenstown, very centrally located but I understand the prices are still high for LH.

  11. #11
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    Quote Originally Posted by desfrie
    Queenstown is RCR if I am not wrong as to my mind, CCR is District 9,10 & 11. I think there is still value in suburban freehold condos. As for Queenstown, very centrally located but I understand the prices are still high for LH.
    So dun buy first?

  12. #12
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    Quote Originally Posted by hyenergix
    It depends on how much cash u have n ur existing financial commitments. No harm buying a FH or 999LH to keep if u have a lot of idle cash.
    That's not quite true if you are buying for investment. 99LH gives better yield due to its lower purchase price if compared to FH in the same location. A 99LH and a FH same size unit, same age in the same location will command the same rental as tenants don't bother about tenure.

    And when interest rates go up, your rental from your FH unit may not even be enough to cover your monthly instalment due to higher loan taken.

    Make your money from the 99LH for the first 10 to 15 years and then sell it off. Don't forget the longer you keep your FH, the harder it is to rent out as the development ages and there are newer projects in the vicinity.

    An old unit cannot compete with a brand new unit when it comes to getting tenants for the same price.

  13. #13
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    Quote Originally Posted by KC76
    So dun buy first?
    Think nobody can advice you so specifically as it is just our personal opinions based on personal experiences

    I can be wrong in my assumptions. However, conventional wisdom points that new LH suburban condos are launching on the high side.

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    Quote Originally Posted by desfrie
    Think nobody can advice you so specifically as it is just our personal opinions based on personal experiences

    I can be wrong in my assumptions. However, conventional wisdom points that new LH suburban condos are launching on the high side.
    True just trying to get more opinions for consideration.

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    Quote Originally Posted by fclim
    That's not quite true if you are buying for investment. 99LH gives better yield due to its lower purchase price if compared to FH in the same location. A 99LH and a FH same size unit, same age in the same location will command the same rental as tenants don't bother about tenure.

    And when interest rates go up, your rental from your FH unit may not even be enough to cover your monthly instalment due to higher loan taken.

    Make your money from the 99LH for the first 10 to 15 years and then sell it off. Don't forget the longer you keep your FH, the harder it is to rent out as the development ages and there are newer projects in the vicinity.

    An old unit cannot compete with a brand new unit when it comes to getting tenants for the same price.
    Not sure abt ur last. 2nd para. Sell LH after 15 years? Harder to rent out FH when it ages? Doesnt syn.

    Anyway, if i am getting a 10 year old LH for rental then move in in 2 years time. Any potential drawback?

  16. #16
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    Quote Originally Posted by KC76
    True just trying to get more opinions for consideration.
    I do agree that if the objective is purely rental , go for LH. If to stay LH999 or freehold is better. Attached is an opinion piece:


    ----------------------------------------------------------------------------

    Freehold vs. 99-Year Lease

    Tagged: new condo, new property, singapore condo, singapore property
    One of the cornerstones of society in Singapore is new property ownership. In fact, whether a Singapore condo or house dweller, 90 percent of Singapore residents own their own home. But when it comes time to sign a lease, Singaporeans are faced with two options: the Freehold lease and the 99-year lease.
    This common lease decision can be based on any number of factors. While market considerations always play in for property investors, the typical homeowner may be more concerned with financial comfort and passing on their Singapore property to the next generation.
    The typical attraction to a 99-year lease agreement is price. 99-year properties are often considerably cheaper than Freehold properties. According to AsiaOne Business, leasehold properties usually offer a higher rental yield for investors because of their lower capital cost. However, the higher yield merely compensates the owner for the decaying lease.
    For quick-turn property investors, a 99-year lease could offer significant savings. If you plan to buy a property, do some repairs and immediately sell at a profit to other investors or homeowners, the savings you would incur on a 99-year lease can be hard to pass up. But depending on the market, this plan could backfire. A 99-year lease decays everyday, reducing property values. Depending on how long your buyers plan to stay in their new property, a decaying lease could be a deal-breaker.
    A Freehold lease never expires, meaning the Singapore property you buy today could be in your family for generations. This is appealing to many Singapore residents as taking care of family in the home is one of the great joys of our nation. And with a Freehold lease, you can be sure your lease won’t count against your property value, regardless of how the market does. Not only will your lease terms not hurt you, your land value is likely to stay steady, as freehold land in Singapore is rare and usually holds its value very well. But for many homeowners, the significant cost difference is a deterrent.
    In the end, this decision comes down to what you want out of your property. If you are looking strictly from an investment standpoint, a 99-year lease is better in the short term resale but a Freehold lease is better for long-term rental properties. For homeowners, if you are looking for a starter home or new condo, a 99-year lease may work better within your budget. If you are buying the home you will raise your children and grow old in, a Freehold lease may be the way to go.

  17. #17
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    Thanks. Buying a pty can be such a big headache esp when prices are skyhigh now.

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    Quote Originally Posted by KC76
    Thanks. Buying a pty can be such a big headache esp when prices are skyhigh now.
    well, don't discount the possibility of en-bloc for LH developments and this largely depends on the location

  19. #19
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    Quote Originally Posted by eng81157
    well, don't discount the possibility of en-bloc for LH developments and this largely depends on the location
    Speaking about this, does LH or FH stand a higher chance on enbloc?

  20. #20
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    try going to TOP project which can fetch rental earlier. the price could be higher but still lower than new launch.

  21. #21
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    pretty sick price..

    I took the road less traveled by, and that has made all the difference.” - Robert Frost quotes (American poet, 1874-1963)

  22. #22
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    Quote Originally Posted by KC76
    Not sure abt ur last. 2nd para. Sell LH after 15 years? Harder to rent out FH when it ages? Doesnt syn.

    Anyway, if i am getting a 10 year old LH for rental then move in in 2 years time. Any potential drawback?
    What I meant was if you have a 20 year old FH, you are going to compete with brand new 99LH in the same location for rental.

    99LH tend to depreciate faster after 15 to 20 years, so some people sell it off after enjoying the rental income for that number of years. And it is not necessarily at a loss since inflation and other factors come into play.

  23. #23
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    Quote Originally Posted by KC76
    Speaking about this, does LH or FH stand a higher chance on enbloc?

    FH of course - which means everything Desfrie has said about handing down to family generations blah blah is hopelessly wrong.

    It will be sold enbloc after 30+ years whether they want to hold onto it or not.

    LH can, but location must be excellent.

  24. #24
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    people have BUYING power any good bargain or price drop..people will go in...so how to soften significantly...

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    FH if you want your kids to give you GRAND funeral..

    LH if you want normal funeral....

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    Quote Originally Posted by EBD
    FH of course - which means everything Desfrie has said about handing down to family generations blah blah is hopelessly wrong.

    It will be sold enbloc after 30+ years whether they want to hold onto it or not.

    LH can, but location must be excellent.
    regardless of location it still depends on plot ratio and current size of the apartments. if all MM and plot ratio no change.. how to enbloc?

  27. #27
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    Quote Originally Posted by EBD
    FH of course - which means everything Desfrie has said about handing down to family generations blah blah is hopelessly wrong.

    It will be sold enbloc after 30+ years whether they want to hold onto it or not.

    LH can, but location must be excellent.

    I stand corrected. That opinion piece was not written by me. In anyway, u should not say an opinion is hopelessly wrong as u are taking it too literally. It stated lasting for generations figuratively if u comprehend what I mean.

  28. #28
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    prices will hover or continually creep up as long as interest rates remain low (which the fed says quantitative easing will continue at least till 2014). with no major external shocks, i don't foresee any surprise movements.

    observers all say 2015 is the year to watch as everyone is waiting to see if the supply will be fully absorbed. frankly speaking, looking at all the take-up rates of the new developments now, i think absorbing current supply is not a worry at all.

    at the rate of how land is being sold to developers, the planners know that there is a pent up demand and they are trying their best to 'soak up' all these demand as fast as possible to stabilize prices. i also have faith that there would not be a case of 'oversupply' as all these numbers have been crunched and calculated (assuming that they perform sound data analysis) to match demand to supply optimally.

    in general, government will plan for POSITIVE GROWTH.

    Property prices will simply go up over in the long term. You cannot go back to the few years before and lament that it was 600psf then. Then we did not have circle line, no NE line, fewer expressways etc etc. Singapore has developed at an exponential pace and hence as we achieve global cities status, property values simply reflect that status.

    You go NYC, Tokyo, London, Paris.....do the prices ever fall sharply?

  29. #29
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    Will price stay? Yes! If we understand consumer behaviour, prices will not only stay, it may rise even higher.

    Marketers are exploiting consumers by understanding their behaviour. Consumers will buy more if more people are buying. They will buy less or not buy at all if not many people are buying.

    "The fact that many people are buying cannot be wrong".

    Price is likely to correct through government intervention or facing an economic downturn.

    High inflation with high property prices with slow GDP growth and income growth is dangerous and not sustainable. That is why the market is expecting more government intervention soon.

    Will price stay? No! May even correct if government intervenes since market is failing.

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    Quote Originally Posted by Eastboy
    prices will hover or continually creep up as long as interest rates remain low (which the fed says quantitative easing will continue at least till 2014). with no major external shocks, i don't foresee any surprise movements.

    observers all say 2015 is the year to watch as everyone is waiting to see if the supply will be fully absorbed. frankly speaking, looking at all the take-up rates of the new developments now, i think absorbing current supply is not a worry at all.

    at the rate of how land is being sold to developers, the planners know that there is a pent up demand and they are trying their best to 'soak up' all these demand as fast as possible to stabilize prices. i also have faith that there would not be a case of 'oversupply' as all these numbers have been crunched and calculated (assuming that they perform sound data analysis) to match demand to supply optimally.

    in general, government will plan for POSITIVE GROWTH.

    Property prices will simply go up over in the long term. You cannot go back to the few years before and lament that it was 600psf then. Then we did not have circle line, no NE line, fewer expressways etc etc. Singapore has developed at an exponential pace and hence as we achieve global cities status, property values simply reflect that status.

    You go NYC, Tokyo, London, Paris.....do the prices ever fall sharply?
    Agree with your analysis. However, with property prices now at 20-year high and with income lagging price increases, NEGATIVE GROWTH in real estate is a good thing in the near term without affecting POSITIVE ECONOMIC GROWTH in the long term.

    Expect government intervention for a sustainable economy.

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