THE Government has introduced several rounds of measures to rein in the continued rise in property prices. There is some effect, yet property prices are holding their own.
Recently, I visited a couple of property launches. The showflats attracted quite a crowd and the boards indicated that many units were sold - clear evidence that there was no shortage of buyers.
I was told that, at the offer price of about $1,300 psf before any stamp duty, the apartments should be a worthwhile investment for my own stay or rental income.
When looking at the price list, I noticed that there was a sizeable area set aside for holding the air-conditioning equipment. A unit with a total saleable area of 61 sq m had 14 sq m provided for air-con space.
A quick back of the envelope calculation suggested that the buyer will be paying about $200,000 for the space to house the air-con. Considering that a multi-split air-con system costs about $3,000, I find this situation incomprehensible.
To be sure that I was not mistaken, I sought confirmation from the agent, who assured me that the 14 sq m of "air-con" area is indeed chargeable, and that the cost is to be borne by the buyer.
This must make Singapore one of the most expensive places in the world to install an air-con system.
To have living space costing in excess of $1,000 psf for suburban localities already makes Singapore property prices one of the highest in the world.
To have air-con space costing $200,000 should be a wake-up call for Singapore to seriously re-examine its land valuation model.
Philip Toh Kee Poon
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Originally Posted by Amber Woods
sleepy sleep 
