Executive Condo (EC) bubble?

Clazav

Senior Member
Joined
Nov 7, 2014
Messages
2,279
Reaction score
297
Where got so cheap tapestry.

Realistically i think the Tampines EC will launch for $1050-$1100/psf next year- which is considered pricey. In comparison, Tapestry launched at around the same price if i'm not wrong..

EC is no longer sold at a 25% discount like in the past...Do you guys think there's room for substantial appreciation in the next say, 5-10 years? Some more at a location like Tampines Ave 10
 

tokidoki_sg

Senior Member
Joined
Nov 4, 2015
Messages
719
Reaction score
0
Realistically i think the Tampines EC will launch for $1050-$1100/psf next year- which is considered pricey. In comparison, Tapestry launched at around the same price if i'm not wrong..

EC is no longer sold at a 25% discount like in the past...Do you guys think there's room for substantial appreciation in the next say, 5-10 years? Some more at a location like Tampines Ave 10

The Tapestry average price per sq ft is $1,310.
https://www.straitstimes.com/business/property/buyers-snap-up-70-of-units-launched-at-the-tapestry
 

Parka

Master Member
Joined
Jan 26, 2003
Messages
3,483
Reaction score
169
Realistically i think the Tampines EC will launch for $1050-$1100/psf next year- which is considered pricey. In comparison, Tapestry launched at around the same price if i'm not wrong

Like that 3-bedroom is at least $1 million.

:s22:

If a 30yr $500K housing loan (2%) is taken, that's like paying $1848 each month with $823 going to to bank as interest each month.

People in Singapore so rich want to support the banks so much?
 

Muneyzmart

Member
Joined
Dec 21, 2017
Messages
211
Reaction score
0
I share the same sentiments as you.

Like that 3-bedroom is at least $1 million.

:s22:

If a 30yr $500K housing loan (2%) is taken, that's like paying $1848 each month with $823 going to to bank as interest each month.

People in Singapore so rich want to support the banks so much?
 

Scylla

Senior Member
Joined
Sep 6, 2008
Messages
1,850
Reaction score
10
Like that 3-bedroom is at least $1 million.

:s22:

If a 30yr $500K housing loan (2%) is taken, that's like paying $1848 each month with $823 going to to bank as interest each month.

People in Singapore so rich want to support the banks so much?

1 million is nothing these days.
 

Pokémon

High Supremacy Member
Joined
Jan 1, 2000
Messages
42,730
Reaction score
166
If a 30yr $500K housing loan (2%) is taken, that's like paying $1848 each month with $823 going to to bank as interest each month.

Are you sure you understand how mortgage loan works?

Looks like you do not own any property... yet... :s22:
 

darknite84

Master Member
Joined
Mar 22, 2009
Messages
3,140
Reaction score
408
Like that 3-bedroom is at least $1 million.

:s22:

If a 30yr $500K housing loan (2%) is taken, that's like paying $1848 each month with $823 going to to bank as interest each month.

People in Singapore so rich want to support the banks so much?

Mortgage interest rates is amortized, you pay more interest during the start vs the end, it's not a front on add on method
 

infernolord

Senior Member
Joined
Nov 8, 2004
Messages
712
Reaction score
143
Hmm actually EC will still remain affordable which in align to Govt objectives but getting smaller.
Last time 2015 4bedrm condo 700xx
2018 3bedrm 700xx
2020 3 bedrm 700xx

Still affordable ar.. 700xx ppl still can buy, still worth it. :)
 

cosycatus

Senior Member
Joined
Aug 26, 2001
Messages
2,358
Reaction score
372
It is a bubble what. Just that people all hope to ride the wave and make some money.
Everyone wants to buy a EC and hope to sell for a profit 5 years later.
Problem is, who is going to buy from them?
Opposite my block got those private condo on market for 2 years no one buying, no one renting. No more influx of rich china migrants.

Already 1000 psf, who is gonna buy a leashold at higher price from you. Somemore room so small.

Those old enough will remember the bubble of 1997.

Condo facilities...pls la. How often u use the swimming pool ( which is more like a waddle pool)
Anyone one can buy, u still gonna get Ur hordes of ceca looking proudly as their nosiy kids scream at the top of their lungs while running around.

I rather buy a good old hdb in a nice area close to mrt, food and facilites, with nice people that I already see with my eyes and invest the rest of my money in safe index funds. A good old hdb with a nice corridor, large bed rooms and friendly neighbors that bring u snacks during cny...water your plants for you. A good old hdb where I don't stress over a 800k mortgage...

Get it no?
 

Parka

Master Member
Joined
Jan 26, 2003
Messages
3,483
Reaction score
169
It is a bubble what. Just that people all hope to ride the wave and make some money.
Everyone wants to buy a EC and hope to sell for a profit 5 years later.
Problem is, who is going to buy from them?
Opposite my block got those private condo on market for 2 years no one buying, no one renting. No more influx of rich china migrants.

Already 1000 psf, who is gonna buy a leashold at higher price from you. Somemore room so small.

Those old enough will remember the bubble of 1997.

Condo facilities...pls la. How often u use the swimming pool ( which is more like a waddle pool)
Anyone one can buy, u still gonna get Ur hordes of ceca looking proudly as their nosiy kids scream at the top of their lungs while running around.

I rather buy a good old hdb in a nice area close to mrt, food and facilites, with nice people that I already see with my eyes and invest the rest of my money in safe index funds. A good old hdb with a nice corridor, large bed rooms and friendly neighbors that bring u snacks during cny...water your plants for you. A good old hdb where I don't stress over a 800k mortgage...

Get it no?

Actually I feel the same way as you. After I bought my EC, I thought it was nothing special. Looks nicer on the exterior, yah, so what when the inside is so small.

I miss the openness of HDB, both interior and the void deck area. But nowadays looks like HDB are also like condo becoming smaller and smaller.
 

Parka

Master Member
Joined
Jan 26, 2003
Messages
3,483
Reaction score
169
Mortgage interest rates is amortized, you pay more interest during the start vs the end, it's not a front on add on method

Ah, I was wrong to use the absolute amount.

Ultimately, over the period of the loan, a typical salary man is spending the same % (interest paid/mortgage) of time "working for the bank". I really cannot stand the thought of that.
 

PostCountWarrior[+1]

Arch-Supremacy Member
Joined
Jul 17, 2008
Messages
21,950
Reaction score
1
Hmm actually EC will still remain affordable which in align to Govt objectives but getting smaller.
Last time 2015 4bedrm condo 700xx
2018 3bedrm 700xx
2020 3 bedrm 700xx

Still affordable ar.. 700xx ppl still can buy, still worth it. :)
think now hard for ec to be 700k liao... now like 900k at least...

put the ec tag aside and imagine u can buy as property investment and rent it out. u rather buy this or buy reits/stocks? at these levels the rental yield does not make much sense.
 

Pokémon

High Supremacy Member
Joined
Jan 1, 2000
Messages
42,730
Reaction score
166
Ultimately, over the period of the loan, a typical salary man is spending the same % (interest paid/mortgage) of time "working for the bank". I really cannot stand the thought of that.

I used to think similarly like you, perhaps as I was brought up with thinkings that it is not good to owe money.

However, if you think deeper, you would realise that mortgage loans work for both you and the bank. It is a Win-Win. Try asking your friends and relatives for loans of a few hundred k or m. Who would lend you? Only banks will if you are credible.

If you prefer to be debt free, then try saving hard for 30 years before buying a house in cash. So in 30 years’ time, how much do you think an EC (or similar) would cost? Can you buy at the same price as now? Where would you be staying this 30 years, and you may get married and have children?

Well, unless you are a bloodsucker waiting to inherit from your parents...
 

Solid_snape

Member
Joined
Oct 5, 2015
Messages
219
Reaction score
30
Spoke to an agent recently. She hinted that the indicative launch price for Sumang EC will be starting from $1100psf.. at this rate is there any point for ECs anymore?
 

iCubes

Master Member
Joined
Jan 2, 2005
Messages
4,036
Reaction score
734
Spoke to an agent recently. She hinted that the indicative launch price for Sumang EC will be starting from $1100psf.. at this rate is there any point for ECs anymore?

You know what's funny? People expect their salaries and bonuses to increase year on year but expect everything else to stay stagnant.
 

kiatme

Senior Member
Joined
Dec 7, 2009
Messages
1,046
Reaction score
150
this is how the market is..
if you try searching for resale HDB, 500k 4room less than 10 years, you will only find places like jurong, cck, sembawang, punggol, sengkang, some are not near mrt either.

you don't see the rise in prices because you are an owner of a property
if you are planning to move house, try searching for resale HDBs, chances are most of them won't catch your eye either because its way too expensive.

4rm whampoo bto starts from 500k++, and that is BTO, will it raise to 700k-800k in the future ? very likely. (52xk + buyer stamp + reno cost + interest etc) break even cost to sell after MOP will be 640k+ minimally.

a new launch condo for 1k+ PSF seems reasonable considering the market now, but of course.. it doesn't make sense to pay 1k+ PSF if the surrounding private resales are at 1k+ PSF as well. top up another 200-400PSF you can get better locations (further away from punggol) @ riverfront, florence, affinity, treasure etc

some of the recent bounced out EC units are already priced at 1k PSF (wandervale), should just accept reality as it is, if you are looking to move, should really consult your agent relatives/friends, property prices are not going to drop any time soon unless it crashes.
 

K|muRa^84

High Supremacy Member
Joined
Dec 1, 2007
Messages
36,811
Reaction score
6
It is a bubble what. Just that people all hope to ride the wave and make some money.
Everyone wants to buy a EC and hope to sell for a profit 5 years later.
Problem is, who is going to buy from them?
Opposite my block got those private condo on market for 2 years no one buying, no one renting. No more influx of rich china migrants.

Already 1000 psf, who is gonna buy a leashold at higher price from you. Somemore room so small.

Those old enough will remember the bubble of 1997.

Condo facilities...pls la. How often u use the swimming pool ( which is more like a waddle pool)
Anyone one can buy, u still gonna get Ur hordes of ceca looking proudly as their nosiy kids scream at the top of their lungs while running around.

I rather buy a good old hdb in a nice area close to mrt, food and facilites, with nice people that I already see with my eyes and invest the rest of my money in safe index funds. A good old hdb with a nice corridor, large bed rooms and friendly neighbors that bring u snacks during cny...water your plants for you. A good old hdb where I don't stress over a 800k mortgage...

Get it no?

it's easy to be seduced by the experience of those from the merdeka generation who played the property game with easily available credit and low transaction costs
 

Clazav

Senior Member
Joined
Nov 7, 2014
Messages
2,279
Reaction score
297
Agree.
Average 1kpsf at least.
You say these people are silly, but this is the trend. What can you do?

this is how the market is..
if you try searching for resale HDB, 500k 4room less than 10 years, you will only find places like jurong, cck, sembawang, punggol, sengkang, some are not near mrt either.

you don't see the rise in prices because you are an owner of a property
if you are planning to move house, try searching for resale HDBs, chances are most of them won't catch your eye either because its way too expensive.

4rm whampoo bto starts from 500k++, and that is BTO, will it raise to 700k-800k in the future ? very likely. (52xk + buyer stamp + reno cost + interest etc) break even cost to sell after MOP will be 640k+ minimally.

a new launch condo for 1k+ PSF seems reasonable considering the market now, but of course.. it doesn't make sense to pay 1k+ PSF if the surrounding private resales are at 1k+ PSF as well. top up another 200-400PSF you can get better locations (further away from punggol) @ riverfront, florence, affinity, treasure etc

some of the recent bounced out EC units are already priced at 1k PSF (wandervale), should just accept reality as it is, if you are looking to move, should really consult your agent relatives/friends, property prices are not going to drop any time soon unless it crashes.
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top