say... if gls shrinks to 50yr lease... would you buy those 50yr near mrt mm ??...

[ikan bilis]

say... if gls shrinks to 50yr lease... would you buy those 50yr near mrt mm ??...

let's say gov changes all near mrt (<0.5km, ocr) gls to 50yrs... would you still buy those condos??...
- say,.. 99yr near mrt ocr gls around ~550 psf-ppr
- say,.. 50yr near mrt ocr gls bidding may be ended around ~350 psf-ppr (say, S$200psf lower)
- and if developer build those units as low end condos, at EC cost, less quality finishing. (say, S$50psf lower)..
- so may be 530sqft (35sqm + balcony, S$250psf lower than 99yr) mm at ~S$950psf, or $500K average...
- $450K-550K mm, may be lower floors lousy facing at 450K, higher floor better facing at 550K
- will you buy those mm ??...

=> near MRT,... but 50yr, so developer need to target at very low quantum... psf price also $250 lower than 99yr... and would you buy ??...



~~~~~~~~~~~~~~~~~~
- govt already changed industrial gls from 60yrs to 30yrs...

[Arcachon]

Buy for positive cash flow, why not. If I am a developer, I will do a anti CM, reduce the lease to 50 years and sell.

[carbuncle]

no 500psf no buy

[Kanarazu]

Buy for positive cash flow, why not. If I am a developer, I will do a anti CM, reduce the lease to 50 years and sell.

Will be difficult for developer to be profitable in the near term if the land is in the first place bought at price of 99LH. Secondly price to buyers will not be attractive enough since the price reduction will be less than 50% factoring construction cost and all. If you are a developer how would you overcome these?

[Arcachon]

Will be difficult for developer to be profitable in the near term if the land is in the first place bought at price of 99LH. Secondly price to buyers will not be attractive enough since the price reduction will be less than 50% factoring construction cost and all. If you are a developer how would you overcome these?

Ask FEO, they sell FH for 99 years

[Kanarazu]

Ask FEO, they sell FH for 99 years

Your idea will work if GLS start to sell shorter LH lands for development or allow enbloc redevelopment without need to top up lease.

[ikan bilis]

no 500psf no buy

it's called Tankuku !!...

- near MRT new LH60 industrial already $600-650psf (=> trivex near tai seng mrt)
- very lok-kok-kok 10yr old resale industrial (about 40+yr lease left) and not near any MRT are around $400psf...

[ikan bilis]

- if there are 2 next to each other condo estates, both are near mrt and very similar...
i will consider taking the LH50 if it is 20% cheaper than the LH99,. i.e. LH99 at S$1200psf, LH50 at S$950psf

- another way looking at it....
if there is another LH50 condo estate next to pasir ris mrt but same price as ripple bay, i will consider taking this LH50 than ripple bay

[Kanarazu]

- if there are 2 next to each other condo estates, both are near mrt and very similar...
i will consider taking the LH50 if it is 20% cheaper than the LH99,. i.e. LH99 at S$1200psf, LH50 at S$950psf

- another way looking at it....
if there is another LH50 condo estate next to pasir ris mrt but same price as ripple bay, i will consider taking this LH50 than ripple bay

Actually LH75 is available in HK beside 99 and 999 but that's for historical reasons (pre colony marine lots). Some leases in the new territories are expiring in 2047 based on the 50 years of special administration after the british left followed by a second hand over in 2047 to motherland. The HK scenario seems to be a historically driven one rather than a conscious decision by govt to make housing more affordable. Wonder If any other countries have shorter lease holds than 99?

[phantom_opera]

Actually LH75 is available in HK beside 99 and 999 but that's for historical reasons (pre colony marine lots). Some leases in the new territories are expiring in 2047 based on the 50 years of special administration after the british left followed by a second hand over in 2047 to motherland. The HK scenario seems to be a historically driven one rather than a conscious decision by govt to make housing more affordable. Wonder If any other countries have shorter lease holds than 99?

China, 70LH

[ikan bilis]

Actually LH75 is available in HK beside 99 and 999 but that's for historical reasons (pre colony marine lots). Some leases in the new territories are expiring in 2047 based on the 50 years of special administration after the british left followed by a second hand over in 2047 to motherland. The HK scenario seems to be a historically driven one rather than a conscious decision by govt to make housing more affordable. Wonder If any other countries have shorter lease holds than 99?

HK got new residential gls at 50yrs...

http://www.soufun.com/news/2012-07-12/8082061.htm

前北角地皮69.1億元批出 每呎樓面地價$9,347
www.soufun.com 房地产门户-搜房网 2012-07-12 11:46:00 来源：中原地產


中原張競達：料物業落成後呎價達$14,000

位於香港北角渣華道與電照街的內地段第9027號的土地今日開標。政府公布地皮以69.1億元批出，年期50年，平均每呎樓面地價9347元。

中原測量師行估價部執行董事張競達表示，前北角村地皮早前共接獲7份標書，反映發展商對地皮興趣甚濃，惟最終以低於市場估值16%批出，則顯示了發展商對地皮雖具興趣，但於環球市況不景氣下，出價相當審慎，加上地皮受限量，及噪音等問題局限，令發展商出價更為保守。地皮批出每呎樓面地價9347元，張氏相信物業落成後，預計每呎售價需達14000元。

中原地產港島東及北角高級營業董事何偉強表示，前北角村地皮批出價可算吸引，亦反映出於近期多幅大型地皮推出的壓力下，發展商出價意欲傾向保守。何氏指，位於北角村地皮後方，兩年樓齡的港濤軒，海景單位呎價高近16000元，市區景單位呎價12000元，而前北角村地皮雖受限量等限制，但以其可享永久海景之先天優勢，以及港島區缺乏大型臨海住宅地皮供應下，相信地皮物業落成後每呎售價達16000元仍具一定承接力。

北角地皮的地盤面積為251,878平方呎，指定作非工業（不包括倉庫、酒店及加油站）用途。最低及最高的樓面面積分別為604,969平方呎及900,677平方呎，其中不超過577,812平方呎的樓面面積用作興建住宅，及不超過161,460平方呎用作商業用途，另發展項目的住宅單位總數不得少於700個。

[carbuncle]

if developers start to sell 50 year LH launches of 99LH land u know they been reading this forum...

wont b surprised certain developer name start with F doe it...

[ikan bilis]

there is always a bigger fish behind... the largest fish is called mnd-kbw... that huge+fat fish will change all near mrt residential gls to lh50, once his anti-speculation by shortening industrial gls to lh30 has been proven working well...

[Arcachon]

Everything is falling into plan.

[Congress]

Building structure design working life is 50 years. Older than 50 years buildings most likely need major retrofitting. So 50 years lease is just nice?

[kale]

If that the case, I believe all current 99lh unsold units will be SNATCH overnight. And FH become a history from then on......

[Congress]

If that the case, I believe all current 99lh unsold units will be SNATCH overnight. And FH become a history from then on......

I am in construction industry and very sure about the design working life. After 50 years, engineer who designed buildings will not be liable for building safety. You can confirm with BCA. Of coz, major infrastructures such as airport, the working life is 100 years.

[carbuncle]

engineer retired from service after 50yrs liao lor

[hopeful]

I am in construction industry and very sure about the design working life. After 50 years, engineer who designed buildings will not be liable for building safety. You can confirm with BCA. Of coz, major infrastructures such as airport, the working life is 100 years.

Interesting point.
Who is liable if airport fail after 80 years?
Cannot expect engineer to live until 110 years old ba?

[Wild Falcon]

Buildings can last hundreds of years. Buildings can last longer than the engineer who designs it. Of course you don't expect the engineer to be liable for the building for his entire lifetime? That doesn't mean the building will collapse in 50 years. Look around the world and see how long some buildings can stand.

Building structure design working life is 50 years. Older than 50 years buildings most likely need major retrofitting. So 50 years lease is just nice?