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Thread: SLA to take over land at Lorong 3 Geylang when lease expires in 2020

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    Default SLA to take over land at Lorong 3 Geylang when lease expires in 2020

    Every owner of the affected 191 terrace houses will be assigned a SLA officer, who will guide them through the lease expiry process.

    SINGAPORE: The land currently occupied by 191 private terrace houses at Lorong 3 Geylang will return to the state when its current lease expires on Dec 31, 2020, the Singapore Land Authority (SLA) confirmed for the first time on Tuesday (Jun 20).

    The land is slated for future public housing, the authority said in a news release.

    "As a general policy, leasehold land will return to the state upon lease expiry. This allows the land to be rejuvenated to meet the new social and economic needs of Singaporeans," the SLA said.

    The houses along the street are on 60-year leases that started in 1961. When the leases run out, owners have to make sure the properties are cleared of all belongings and furniture, utilities and services are terminated and all outstanding bills are paid.

    They do not need to demolish or do any works to reinstate the property, the agency clarified.

    OWNERS "WILL NOT BE LEFT WITHOUT OPTIONS"

    According to SLA, most of the current owners of the terrace houses have moved out and are letting out their units to foreign workers and other occupants who use them for religious activities.

    Of the 191 houses, 143 have been leased to foreign workers on work passes and 31 to those conducting religious activities such as temple operators, while 33 are owner occupants, SLA said. It added that some of the homes are counted twice as they have multiple uses.

    To assist in the transition, a dedicated SLA officer will be assigned to each house owner, who will guide them through the lease expiry process over the next three and a half years. Those who do not already have alternative housing have various options, including buying an HDB flat or private property, renting on the open market or living with family members.

    SLA added there are existing schemes for elderly homeowners, such as the short-lease 2-Room Flexi flats.

    "They will not be left without options," the agency said.
    As for employers of foreign work pass holders, these owners can consider relocating their workers to other approved housing such as purpose-built dormitories. The Manpower Ministry will remind employers to relocate their workers closer to the lease expiry date, the agency said.

    Occupants currently conducting religious activities in houses on the affected street can consider co-locating with religious organisations operating in other areas or renting space from commercial or industrial premises where part of the space is allowed to be used for religious purposes, SLA added.

    DO DUE DILIGENCE WHEN HOUSE HUNTING

    While the SLA announcement on Tuesday refers to private housing, National Development Minister Lawrence Wong had in March also said that when leases for Housing and Development Board flats end, the land will return to the state eventually.

    He said property buyers need to recognise the Selective En bloc Redevelopment Scheme (SERS) is not necessarily for all old HDB flats, as it is dependent on the site's redevelopment potential, and prices for these flats will come down in conjunction with the remaining time on the lease.

    Mr Wong's comments were in response to local reports highlighting the high prices of several short-lease HDB flats in the resale market.

    NEW HOUSING OPTIONS PLANNED

    The 2-ha plot of land in Geylang has been earmarked for new public housing development, and is also part of a larger plan to rejuvenate Kallang, SLA said.
    The land, about 900m from Kallang MRT and 500m from the new Geylang Bahru MRT set to open in October this year, will offer Singaporeans new public housing options near the city centre in Kallang, the agency noted.

    These are in addition to the new public housing developments in Boon Keng, Bendemeer and around Kallang MRT station, as well as new private residences in Kampong Bugis, SLA pointed out.

    http://www.channelnewsasia.com/news/...res-in-8961090

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    Default This is the FACT that most 99-years leasehold properties will end with ZERO $ value!

    This is the FACT that most 99-years leasehold properties will end with ZERO $ value!
    Hope those people will stop fooling people that 99-years leasehold properties and freehold properties have no difference in value..............


    Quote Originally Posted by maisonjai View Post
    Every owner of the affected 191 terrace houses will be assigned a SLA officer, who will guide them through the lease expiry process.

    SINGAPORE: The land currently occupied by 191 private terrace houses at Lorong 3 Geylang will return to the state when its current lease expires on Dec 31, 2020, the Singapore Land Authority (SLA) confirmed for the first time on Tuesday (Jun 20).

    The land is slated for future public housing, the authority said in a news release.

    "As a general policy, leasehold land will return to the state upon lease expiry. This allows the land to be rejuvenated to meet the new social and economic needs of Singaporeans," the SLA said.

    The houses along the street are on 60-year leases that started in 1961. When the leases run out, owners have to make sure the properties are cleared of all belongings and furniture, utilities and services are terminated and all outstanding bills are paid.

    They do not need to demolish or do any works to reinstate the property, the agency clarified.

    OWNERS "WILL NOT BE LEFT WITHOUT OPTIONS"

    According to SLA, most of the current owners of the terrace houses have moved out and are letting out their units to foreign workers and other occupants who use them for religious activities.

    Of the 191 houses, 143 have been leased to foreign workers on work passes and 31 to those conducting religious activities such as temple operators, while 33 are owner occupants, SLA said. It added that some of the homes are counted twice as they have multiple uses.

    To assist in the transition, a dedicated SLA officer will be assigned to each house owner, who will guide them through the lease expiry process over the next three and a half years. Those who do not already have alternative housing have various options, including buying an HDB flat or private property, renting on the open market or living with family members.

    SLA added there are existing schemes for elderly homeowners, such as the short-lease 2-Room Flexi flats.

    "They will not be left without options," the agency said.
    As for employers of foreign work pass holders, these owners can consider relocating their workers to other approved housing such as purpose-built dormitories. The Manpower Ministry will remind employers to relocate their workers closer to the lease expiry date, the agency said.

    Occupants currently conducting religious activities in houses on the affected street can consider co-locating with religious organisations operating in other areas or renting space from commercial or industrial premises where part of the space is allowed to be used for religious purposes, SLA added.

    DO DUE DILIGENCE WHEN HOUSE HUNTING

    While the SLA announcement on Tuesday refers to private housing, National Development Minister Lawrence Wong had in March also said that when leases for Housing and Development Board flats end, the land will return to the state eventually.

    He said property buyers need to recognise the Selective En bloc Redevelopment Scheme (SERS) is not necessarily for all old HDB flats, as it is dependent on the site's redevelopment potential, and prices for these flats will come down in conjunction with the remaining time on the lease.

    Mr Wong's comments were in response to local reports highlighting the high prices of several short-lease HDB flats in the resale market.

    NEW HOUSING OPTIONS PLANNED

    The 2-ha plot of land in Geylang has been earmarked for new public housing development, and is also part of a larger plan to rejuvenate Kallang, SLA said.
    The land, about 900m from Kallang MRT and 500m from the new Geylang Bahru MRT set to open in October this year, will offer Singaporeans new public housing options near the city centre in Kallang, the agency noted.

    These are in addition to the new public housing developments in Boon Keng, Bendemeer and around Kallang MRT station, as well as new private residences in Kampong Bugis, SLA pointed out.

    http://www.channelnewsasia.com/news/...res-in-8961090

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    Having this set as a precedent, we should start to see prices of aging HDB flats coming down fast. This will affect the entire resale market both public and private.

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    Quote Originally Posted by Amber Woods View Post
    Having this set as a precedent, we should start to see prices of aging HDB flats coming down fast. This will affect the entire resale market both public and private.
    Don't know how to Agree.

    Let use something I have.

    https://www.srx.com.sg/hdb/geylang/b...bal0001/370027

    Registration date Price Location Built Storey Size HDB Model
    Jul 16 $620K Blk 27, Balam Rd 1997 13-15 126 sqm 5I

    Lease Start Date Price Location Built HDB Model
    Apr 17 $2,700 Blk 27, Balam Road 1997 5RM

    How much do you think it will drop.

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    It's the same as saying yesterday somebody struck Toto, so on Thursday it will be my turn, and it will be everybody's turn!

    Or yesterday a building caught fire, so today more buildings will catch fire, and therefore tomorrow all buildings will catch fire.

    Quote Originally Posted by Amber Woods View Post
    Having this set as a precedent, we should start to see prices of aging HDB flats coming down fast. This will affect the entire resale market both public and private.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by teddybear View Post
    This is the FACT that most 99-years leasehold properties will end with ZERO $ value!
    Hope those people will stop fooling people that 99-years leasehold properties and freehold properties have no difference in value..............
    All cars have a lifespan especially in Singapore, but that does not stop them from presenting value as long as their lease is still sufficiently long. Even short lifespan also has small value to be derived. 3 years lease has 3 years' rent worth!
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Arcachon View Post
    Don't know how to Agree.

    Let use something I have.

    https://www.srx.com.sg/hdb/geylang/b...bal0001/370027

    Registration date Price Location Built Storey Size HDB Model
    Jul 16 $620K Blk 27, Balam Rd 1997 13-15 126 sqm 5I

    Lease Start Date Price Location Built HDB Model
    Apr 17 $2,700 Blk 27, Balam Road 1997 5RM

    How much do you think it will drop.
    Why quote historical data?

    I said going forward, prices for aging flats will decline fast. So be patient and look at future transactions and the price trend over the next 2 years.

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    Flat prices have stagnated and/or dropped for about 4 years already.

    HDB Rental has recently started to recover.

    As long as people can derive value whether own stay or rent out, it is very unlikely to see the situation of "decline fast", especially since some of these ageing flats offer abundance of space.

    Quote Originally Posted by Amber Woods View Post
    Why quote historical data?

    I said going forward, prices for aging flats will decline fast. So be patient and look at future transactions and the price trend over the next 2 years.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Kelonguni View Post
    Flat prices have stagnated and/or dropped for about 4 years already.

    HDB Rental has recently started to recover.

    As long as people can derive value whether own stay or rent out, it is very unlikely to see the situation of "decline fast", especially since some of these ageing flats offer abundance of space.
    We can revisit the our predictions two years later.

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    Quote Originally Posted by Amber Woods View Post
    Why quote historical data?

    I said going forward, prices for aging flats will decline fast. So be patient and look at future transactions and the price trend over the next 2 years.
    This will be the reference point to your price drop according to your theory.

    I think it will increase in the future due to inflation.

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    Quote Originally Posted by Arcachon View Post
    This will be the reference point to your price drop according to your theory.

    I think it will increase in the future due to inflation.
    Up or down will depend on the age of the flats transacted. So reference must be based on aging flat 40 years or older. That is flat with lease starting on or before 1977. Two years from now, more flats will reach 40 years and the prices should reflect the price base on its remaining lease.

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    30 years left more relevance. 40 years still can loan. As long as can loan, price will hardly move, especially since the size and location are often marvelous.

    But even then, it's hard for prospective buyers to buy without loan. So end up they will look elsewhere so this has limited impact on the whole market.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Amber Woods View Post
    Having this set as a precedent, we should start to see prices of aging HDB flats coming down fast. This will affect the entire resale market both public and private.
    For 99yrs leasehold? Freehold holds well based on the above article then

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    Quote Originally Posted by jwong71 View Post
    For 99yrs leasehold? Freehold holds well based on the above article then
    The public resale market will affect the private market.

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    Nobody in Singapore, yes "NOBODY", buy cars thinking that it is an appreciating asset!

    Meanwhile, almost EVERYBODY buying 99-years leasehold properties DREAMING of property as APPRECIATING asset! (that is why never flip while new and end up with $0 value!)

    Quote Originally Posted by Kelonguni View Post
    All cars have a lifespan especially in Singapore, but that does not stop them from presenting value as long as their lease is still sufficiently long. Even short lifespan also has small value to be derived. 3 years lease has 3 years' rent worth!

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    Quote Originally Posted by Kelonguni View Post
    30 years left more relevance. 40 years still can loan. As long as can loan, price will hardly move, especially since the size and location are often marvelous.

    But even then, it's hard for prospective buyers to buy without loan. So end up they will look elsewhere so this has limited impact on the whole market.
    Market forces will prevail.

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    If people are financially savy, they will know all COMPANIES use STRAIGHT-LINE DEPRECIATION to depreciate their leasehold assets.

    Thus, they better think like COMPANIES and use STRAIGHT-LINE DEPRECIATION to value the 99-years leasehold properties they are going to buy! (because soon they will find NO buyers wanting to buy based on their desired selling price if they think they can sell at a price pegged to SLA 99-years leasehold depreciation guide (which is really kelong and for show only)!

    Quote Originally Posted by Kelonguni View Post
    30 years left more relevance. 40 years still can loan. As long as can loan, price will hardly move, especially since the size and location are often marvelous.

    But even then, it's hard for prospective buyers to buy without loan. So end up they will look elsewhere so this has limited impact on the whole market.

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    This case relates to a large piece of land with only 191 units and 33 owner occupiers, so it is relatively easier for the SLA to deal with. It is also the first lease expiry without many other houses with lease expiring at the around same time. To me, this is a once off situation and is unlikely to set a precedent for later large scale HDB/Condo developments especially those built during and after the 1970s.
    It is one thing to take back 191 units, but quite another to take back thousands of units in one year. For example, between 1974-1979, HDB built 23000 to 29000 flats per year. While I am not sure how many of those are still not enbloc, it will be a huge undertaking to relocate tens of thousands of households each year. Not to mention the social and political cost.
    Last edited by Pynchmail; 21-06-17 at 13:09.

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    If your HDB has leases from 1974 onwards, I don't think you need to worry so much about it now. From now till 2073 when the lease expires, there is still another 56 years. And there will be thousands of households in the same boat as you.
    However, if you have lease that are expiring before that and there are very few others in the same boat as you, then I suggest you exit as soon as you can.

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    If just taking back thousands of units in 1 year is a chore, then doing a SERS/enbloc thousands of units in 1 year is even WORST and think of the costs to the State coffer and Tax payers!
    So, conclusion is that as the GOV stressed, SERS is only for "selected estates" and will not be repeated for all estates (since tax payers' money and the state's coffer should not be used to pay for people's folly!)


    Quote Originally Posted by Pynchmail View Post
    This case relates to a large piece of land with only 191 units and 33 owner occupiers, so it is relatively easier for the SLA to deal with. It is also the first lease expiry without many other houses with lease expiring at the around same time. To me, this is a once off situation and is unlikely to set a precedent for later large scale HDB/Condo developments especially those built during and after the 1970s.
    It is one thing to take back 191 units, but quite another to take back thousands of units in one year. For example, between 1974-1979, HDB built 23000 to 29000 flats per year. While I am not sure how many of those are still not enbloc, it will be a huge undertaking to relocate tens of thousands of households each year. Not to mention the social and political cost.

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    Both taking back and doing SERS/enbloc of thousands of units are chores.

    So what should the government do?

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    Quote Originally Posted by Pynchmail View Post
    Both taking back and doing SERS/enbloc of thousands of units are chores.

    So what should the government do?
    No issue leh. Govt must continue to build year after year anyway, if not what is MND for?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Exactly right. No issues. Nothing to worry.

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    Quote Originally Posted by Arcachon View Post
    Don't know how to Agree.

    Let use something I have.

    https://www.srx.com.sg/hdb/geylang/b...bal0001/370027

    Registration date Price Location Built Storey Size HDB Model
    Jul 16 $620K Blk 27, Balam Rd 1997 13-15 126 sqm 5I

    Lease Start Date Price Location Built HDB Model
    Apr 17 $2,700 Blk 27, Balam Road 1997 5RM

    How much do you think it will drop.
    Do you know why it is transacted at $620k today? No, it is due to not money printing, ahaha.

    If not, then you are not able to know its projected price in 10 years time.

    I will let you figure this out. As a property agent, surely you can calculate?

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    Quote Originally Posted by Hakuho View Post
    Do you know why it is transacted at $620k today? No, it is due to not money printing, ahaha.

    If not, then you are not able to know its projected price in 10 years time.

    I will let you figure this out. As a property agent, surely you can calculate?
    Projected price will be 720K in 10 years time after collecting 2.8kx12x10 rental.

    You are right, not due to money printing, it was selling for 390K in 2007 and now selling for 620K, SB was selling for 535K and now 1450K.

    As a property agent now is unlike the good old days without CEA.

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    Quote Originally Posted by Arcachon View Post
    Projected price will be 720K in 10 years time after collecting 2.8kx12x10 rental.

    You are right, not due to money printing, it was selling for 390K in 2007 and now selling for 620K, SB was selling for 535K and now 1450K.

    As a property agent now is unlike the good old days without CEA.
    But if you are able to show the calculation of how you arrive at $620 k based on the rental income, then you will know that the projected price in 10 years will be different.

    Don't have to be precise, within 5% tolerance of $620 k is good enough.

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    Should be rental income + residual value of property (with inflation) at the end of 99 years (then you can compare properties with different remaining lease)


    Quote Originally Posted by Hakuho View Post
    But if you are able to show the calculation of how you arrive at $620 k based on the rental income, then you will know that the projected price in 10 years will be different.

    Don't have to be precise, within 5% tolerance of $620 k is good enough.

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    Quote Originally Posted by Hakuho View Post
    But if you are able to show the calculation of how you arrive at $620 k based on the rental income, then you will know that the projected price in 10 years will be different.

    Don't have to be precise, within 5% tolerance of $620 k is good enough.
    1. 5 room HDB with a floor area of 126sqm is LKY baby, now max only 105 sqm.
    2. Singapore uses to zone and price from the CBD call inner urban, outer urban, inner suburban.... also no more now they call Mature and Non-Mature estate.
    3. HDB use to control valuation of resale HDB now also no more.
    4. To buy HDB you need to have enough income to get the big unit and income limit to get HDB.
    5. HDB resale cannot rent out during MOP (5 years).
    6. PR cannot buy resale within 3 years of getting PR and must sell when not in Singapore and when buy PC.
    And many other factor which can only increase the selling price of HDB.
    When they start selling HDB for 60 years lease, the resale can only get worst.

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    Quote Originally Posted by teddybear View Post
    Should be rental income + residual value of property (with inflation) at the end of 99 years (then you can compare properties with different remaining lease)
    Yes, the value of a property is a function of rental value and land value.

    To price a property, it is a process of discovering its intrinsic value, “how much should a buyer pay for it?”.

    How to know if the seller’s asking price is above its intrinsic value? How to know if the property underlying value is above the asking price, and therefore a bargain?

    We are covering the topic of rental value, that is Income Method. Land value will be covered under Cost Method.

    But these are not new inventions of Hakuho. Just google to find out.

    If you are offer an opportunity to buy a business, these are basically the same methods used to price the business, to base on its income cash flow on one hand and its asset and liabilities on the other hand.

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