Will MMs ever cross $1million?

[price]

I'm talking about the 3xx-4xx sqft 1 bedders.

We've seen how subsales and newly TOP projects are selling at 6xx-7xxk these days.

[dtrax]

already did, for prime MMs

[phantom_opera]

If you think people buy MM for rental yield, it is only half the story. People buy it simply as a store of value to hedge inflation. This is especially so after CM4 LTV 60% rule. Therefore, MM price will remain firm as long as you have high inflation, moderate growth and continued influx of immigrants.

OCR MM is unlikely to reach 1 million anytime soon, RCR MM near MRT will probably the one to hit 1 million soon.

[dtrax]

If you think people buy MM for rental yield, it is only half the story. People buy it simply as a store of value to hedge inflation. This is especially so after CM4 LTV 60% rule. Therefore, MM price will remain firm as long as you have high inflation, moderate growth and continued influx of immigrants.

OCR MM is unlikely to reach 1 million anytime soon, RCR MM near MRT will probably the one to hit 1 million soon.

The quantum upside will still be limited to 5xx sqft CCR studio, with average CCR 1rm at 1.2mil +/-. 3XX sqft CCR MM will be around 1mil. RCR MM will probably be in the region of 7XX

[Laguna]

I see some use for the MM :

1. For Gen Y, instead of getting married, they prefer to stay together first for trial. MM is ideal

2. For old couples, when only left with a single one, MM is also good.

[price]

The quantum upside will still be limited to 5xx sqft CCR studio, with average CCR 1rm at 1.2mil +/-. 3XX sqft CCR MM will be around 1mil. RCR MM will probably be in the region of 7XX

Bust most CCR 1 bedders are 5xx sqft right?

[price]

Maybe i should have rephrased my question

"Will OCR MMs hit $1mil?" Many new TOP MMs are already calling for 7xxk near 8xxk!

[dtrax]

Precisely, in CCR most are still regular size that's why in terms of MM growth, there is still more room as oppose to the you-know-what areas.

Whether OCR MMs will hit $1mil, then you will need to monitor the price movement for CCR 1rm and CCR MM.

Some stats:

Up to 46 sqm, >$999,999

2009 - 5
2010 - 63
2011 - 88
2012Q1 - 3

For example:
ILLUMINAIRE ON DEVONSHIRE 65 Devonshire Road #12-04 1 43 Strata 788,000 18326 1702 07-MAY-2009 Apartment Freehold Uncompleted New Sale Private 09 23 239900 Central Region River Valley
ILLUMINAIRE ON DEVONSHIRE 65 Devonshire Road #12-04 1 43 Strata 1,200,000 27907 2593 15-AUG-2011 Apartment Freehold 2011 Sub Sale HDB 09 23 239900 Central Region River Valley

[hyenergix]

When Singapore devalues the currency to boost competitiveness when other countries start massive QE again, I think it will. If not, have to wait another 10 years.

[ekl2ekl2]

Maybe i should have rephrased my question

"Will OCR MMs hit $1mil?" Many new TOP MMs are already calling for 7xxk near 8xxk!

Depends on size. If go by 500 sqft limit, it has to be 2000pfs, possible but won't be easy at the moment bec rental yield would be around 3% at the most and is risky with the sharp growth of OCR MMs. With around 1 million, there are many choices of MM available in CCR, why would one choose OCR?
If the day comes when number of MMs exceeds demand, no prize for guessing where (CCR/OCR) most tenants would naturally opt for.

[phantom_opera]

I see some use for the MM :

1. For Gen Y, instead of getting married, they prefer to stay together first for trial. MM is ideal

2. For old couples, when only left with a single one, MM is also good.

(3) for those sell off their 3r HDB, top up and buy MM or 5XXsqft 1br for self-stay

(4) 2 PMETs SPRs

(5) 2 SC singles ... especially gays

[howgozit]

Its not a question of "if" but a question of "when"

[price]

Depends on size. If go by 500 sqft limit, it has to be 2000pfs, possible but won't be easy at the moment bec rental yield would be around 3% at the most and is risky with the sharp growth of OCR MMs. With around 1 million, there are many choices of MM available in CCR, why would one choose OCR?
If the day comes when number of MMs exceeds demand, no prize for guessing where (CCR/OCR) most tenants would naturally opt for.

So unless the day when CCR MMs are trading at $2mil? u'll probably see ppl falling back to OCR at $1mils haha

[phantom_opera]

There is a lack of alternative investment in Singapore so RCR/OCR MM becomes one, just look at those who bought Optima / Caspian / Trevista / Double Bay MM/1br in 2009 ... gain anything from 40% to 100% (if u factor in leverage ... fantastic return)

amk said got corporate bond for 5% ... but must commit at least 200k ... surely not many know how and dare to do it especially after the Minibond saga

[ikan bilis]

OCR MM at S$1mil??...

then islandwide all pte property will be minimum S$1mil liow... no below S$1mil...
OCR pte 2-3bdr will be around $1.5mil
OCR 5rm hdb resale also around S$1mil liow... pinnacle@duxton 5rm hdb at $2mil...
OCR 4rm hdb resale will be around S$800K liow...
small fish like ikan bilis will be applying PR or long term visa in M'sia liow...

sigh... why you people love high property price so much...

[dtrax]

3k to 3.5k p.m
http://www.propertyguru.com.sg/proje...is-1403/rent/1

What is the world coming to? Let's see if Alexis owners can rent this much

[hyenergix]

3k to 3.5k p.m
http://www.propertyguru.com.sg/proje...is-1403/rent/1

What is the world coming to? Let's see if Alexis owners can rent this much

Owner has to overcome this hurdle first: $3.8k for 2 bedroom.
http://www.propertyguru.com.sg/listi...or-rent-alexis

[phantom_opera]

possible 400sqft Pac Imperial already asking 2.8k

http://www.propertyguru.com.sg/proje...ent/1?maxbed=1

the rental is only to pay mortgage / income tax ... if inflation continues unabated for CPI=5% ... then expect the value to increase by 8% since real inflation will be around there

Inflation continues for 10y at 7% ... MM value will double

[hyenergix]

possible 400sqft Pac Imperial already asking 2.8k

http://www.propertyguru.com.sg/proje...ent/1?maxbed=1

the rental is only to pay mortgage / income tax ... if inflation continues unabated for CPI=5% ... then expect the value to increase by 8% since real inflation will be around there

Inflation continues for 10y at 7% ... MM value will double

Is that you?

http://forums.condosingapore.com/sho...t=13582&page=4
Don't agree MM is the new form of value store

[phantom_opera]

Is that you?

http://forums.condosingapore.com/sho...t=13582&page=4
Don't agree MM is the new form of value store

I forgot to put a full stop b4 'MM'.

[DKSG]

Owner has to overcome this hurdle first: $3.8k for 2 bedroom.
http://www.propertyguru.com.sg/listi...or-rent-alexis

Alexis now pricing is $1,800+++ for real MMs 300+++ sf!

DKSG

[phantom_opera]

Alexis now pricing is $1,800+++ for real MMs 300+++ sf!

DKSG

8@W already > 1.6kpsf

Done deals

ALEXIS ALEXANDRA ROAD Apartment 1 700,000 388 Strata 1,806psf Apr-12

[dtrax]

Owner has to overcome this hurdle first: $3.8k for 2 bedroom.
http://www.propertyguru.com.sg/listi...or-rent-alexis

That's the beauty of MM, 1rm MM asking 3k p.m, 2rm MM asking 3.8k p.m. Anything above 5XX sqft, the $ psf/mth is significantly lower even the 2RM is a MM as long as they exceed this size.

[hyenergix]

I forgot to put a full stop b4 'MM'.

Whao, power of full stop. Changed e meaning totally!

[azeoprop]

This Loft@stevens MM got high chance to go over 1mil next time when top.

http://forums.condosingapore.com/showthread.php?t=10603

[Sleepyhead]

Forgive my ignorance.. please define what is meant by 'MM'.?

[ysyap]

Depends on size. If go by 500 sqft limit, it has to be 2000pfs, possible but won't be easy at the moment bec rental yield would be around 3% at the most and is risky with the sharp growth of OCR MMs. With around 1 million, there are many choices of MM available in CCR, why would one choose OCR?
If the day comes when number of MMs exceeds demand, no prize for guessing where (CCR/OCR) most tenants would naturally opt for.

500 sqft is considered MM (mega mouse) in most new launches already... many are giving 366 sqft, 398 sqft, 4xx sqft. Hmmm... that means it must be 2xxx psf to hit $1mil... well, we're certainly moving in that direction but now that govt is trying v hard to apply the brakes (not hitting the reverse gear), think it'll still take some time to achieve that sort of asking.

[ysyap]

Forgive my ignorance.. please define what is meant by 'MM'.?

'Mickey Mouse' meaning very small units fit only for little mice.

[dtrax]

[ekl2ekl2]

500 sqft is considered MM (mega mouse) in most new launches already... many are giving 366 sqft, 398 sqft, 4xx sqft. Hmmm... that means it must be 2xxx psf to hit $1mil... well, we're certainly moving in that direction but now that govt is trying v hard to apply the brakes (not hitting the reverse gear), think it'll still take some time to achieve that sort of asking.

Like your "megamouse" definition

How about this

The 4 Subtypes of MM

MM1 (Micro Mouse): 250-349 sqft
MM2 (Mickey Mouse): 350-499 sqft
MM3 (Mega Mouse): 500-599 sqft
MM4 (Mutant Mouse): 600-699 sqft