Which Direction Will Property Prices Go ?

arctician

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somemore last year the foreign buyers didnt even have chance to come in, and locals already driven a 5-10% increase in property, imagine when borders reopen in 1-2 years, there will be a segment of foreign buyers who dont mind paying the 10%+ foreign buyer stamp duty, cant imagine how will the prices go when that happen.
 

holasingapura

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somemore last year the foreign buyers didnt even have chance to come in, and locals already driven a 5-10% increase in property, imagine when borders reopen in 1-2 years, there will be a segment of foreign buyers who dont mind paying the 10%+ foreign buyer stamp duty, cant imagine how will the prices go when that happen.

Hong Kong residents buy US$1.3 billion worth of homes in London after UK opened path to citizenship in July​

https://www.scmp.com/business/artic...13-billion-worth-homes-london-after-uk-opened

Borders closed? It does not matter.
 

holasingapura

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somemore last year the foreign buyers didnt even have chance to come in, and locals already driven a 5-10% increase in property, imagine when borders reopen in 1-2 years, there will be a segment of foreign buyers who dont mind paying the 10%+ foreign buyer stamp duty, cant imagine how will the prices go when that happen.

Over 50% of units at Irwell Hill Residences condo sold on launch weekend​

https://www.straitstimes.com/busine...irwell-hill-residences-sold-on-launch-weekend

About 80 per cent of the buyers are Singaporeans, with the remainder comprising permanent residents and foreigners from China, Malaysia, Indonesia, Australia, South Korea, UK and others, CDL said on Sunday.

Borders closed? Where did the foreigners come from? Borders open? Foreigners can also sell more? It is not that simple. I am also not sure. But it is always good to be optimistic and happy, especially after just making a purchase. :)

By the way, borders are not closed tightly. Flights to and from US/ UK/ China etc are still operating. Our rich foreign friends can still come and snap up units in your development, just need a 14 day quarantine.
 

arctician

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Hong Kong residents buy US$1.3 billion worth of homes in London after UK opened path to citizenship in July​

https://www.scmp.com/business/artic...13-billion-worth-homes-london-after-uk-opened

Borders closed? It does not matter.
there will always be a segment of foreign buyer who can buy off plan, but i am sure there is another segment who prefer to buy onsite, nett nett we have yet to see the real purchasing power of the foreign buyers, currently 80%+ is driven by locals
 

arctician

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Over 50% of units at Irwell Hill Residences condo sold on launch weekend​

https://www.straitstimes.com/busine...irwell-hill-residences-sold-on-launch-weekend

About 80 per cent of the buyers are Singaporeans, with the remainder comprising permanent residents and foreigners from China, Malaysia, Indonesia, Australia, South Korea, UK and others, CDL said on Sunday.

Borders closed? Where did the foreigners come from? Borders open? Foreigners can also sell more? It is not that simple. I am also not sure. But it is always good to be optimistic and happy, especially after just making a purchase. :)

By the way, borders are not closed tightly. Flights to and from US/ UK/ China etc are still operating. Our rich foreign friends can still come and snap up units in your development, just need a 14 day quarantine.
this i agree, i didnt mean nett zero demand from foreign buyers, i recall news report 80%+ of transactions were from local buyers - "suppressed" foreign demand will be more accurate point i was trying to make

Historically foreign buyer demand was around 34% in peak of 2011. 2013-2018 foreign buyer ratio was 23-29%. For 2021 i am not sure maybe 10%+
 

arctician

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TeamUSA

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https://www.straitstimes.com/busine...re-private-homes-drops-to-17-year-low-in-2020
https://stackedhomes.com/editorial/foreigners-buying-property-in-singapore/#gs.0j92c4
stackedhome article have data on the ratio of foreign buyers over 10years+. Credit goes to them for the chart.

Strait times articles in jan 21 shared foreign buyers % is at record 17 year low in 2020.

Just sharing what i read, no subjective bias
Oh their "foreigners" include PRs as well, no wonder the % is so high. Non-PR foreigners would only be around 5-6% a year based on URA statistics.
 

Braun8

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Then we end up incurring higher interest in the 3rd and subsequent years until we collect kegs and big chunk of payment is released by bank then we do refinancing. Long story short, we not only end up with shorter remaining lease, we pay higher interest for from year 3 until TOP when we do refinancing, we also incur extra rent if we are renting a place while waiting for new place to TOP.... I think we are losing out on a lot not only shorter remaining lease. The Govt ought to give us some relief as this pandemic is unprecedented and like the Govt and businesses, we as home buyers did not cater for all that ⚠️ Why are we expected to silently absorb the impact?

If you urgently need a home for self-stay, should've bought resale instead of new launch. Buying resale, you don't have to waste money paying rent for a few years while waiting for the new condo to be built and TOP.
 

Braun8

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Why does the government need to come out and subsidise “rich” condo buyers?

They covered business rents previously to prevent economy from collapsing, rather than trying to bail out individuals.

They also provide JSS to companies to save many citizens jobs and prevent skyrocketing retrenchments and unemployment. This is much more essential than subsidizing rich condo buyers.
 

Eternit

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If you urgently need a home for self-stay, should've bought resale instead of new launch. Buying resale, you don't have to waste money paying rent for a few years while waiting for the new condo to be built and TOP.
resale prices all time high with some COV 80k-100k, buy resale now sell next time lose big how?
 

BTGoh87

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We bought in 2018, did not expect this pandemic to hit. We bought it as a future home for our family and prepare for my boy who is going primary school which I am sure we are not the only one. We all have the right to choose what we deem is suitable for our family, there is no definite right or wrong? What you think is good may not be what we want for our family so there is no need for you to comment in that manner.

I have been seeing really mean comments like we are greedy sinkies, underserving when we are just sharing our thoughts on this platform. I don’t understand the need for keyboard warriors to call names and make nasty comments due to some reasons which I obviously cannot comprehend. I’m sure all of you do some investments, just different forms. For sure it’s greed that makes you invest to grow money or you are a saint?

This is a forum Is a platform to seek advises, share knowledge and information. Not one for another to criticise one another and be nasty. You can disagree but not criticise and be so harsh, the same we teach our children not to do to their friends in school.

Peace
 

holasingapura

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We bought in 2018, did not expect this pandemic to hit. We bought it as a future home for our family and prepare for my boy who is going primary school which I am sure we are not the only one. We all have the right to choose what we deem is suitable for our family, there is no definite right or wrong? What you think is good may not be what we want for our family so there is no need for you to comment in that manner.

I have been seeing really mean comments like we are greedy sinkies, underserving when we are just sharing our thoughts on this platform. I don’t understand the need for keyboard warriors to call names and make nasty comments due to some reasons which I obviously cannot comprehend. I’m sure all of you do some investments, just different forms. For sure it’s greed that makes you invest to grow money or you are a saint?

This is a forum Is a platform to seek advises, share knowledge and information. Not one for another to criticise one another and be nasty. You can disagree but not criticise and be so harsh, the same we teach our children not to do to their friends in school.

Peace
You were seeking monetary compensation from the government. That is wrong and "greedy"!

If you wanted / needed assistance to get temporary housing because you need a roof over your head due to construction delay, that is a different story.
 

BTGoh87

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The relief I am hoping for is extension of lease we are losing or probably a chance to refinance without huge Penalty. I am not expecting cash payout from Govt, did you misinterpret? How is that greed I don’t know.
We are just caught in this situation because we didn’t cater for this pandemic like many others and we are NOT blaming Govt Just because I did not monetary relief from Govt from the purchase of my new place and I am not such an idiot to expect Govt to give us monetary relief to pay for my new place 😑.

Being in middle class group, we are stuck in between no where and we did not really get any extra monetary relief from Govt except for the JsS which was paid to the companies we are working for And the usual payout to Singaporean. What is so wrong that we are hopeful that we can get some form of relief since many actually got it (monetary and others) and we are just not eligible.

Like I mentioned, regardless how “unreasonable” You think our post is, I don’t think we deserve to be criticised or called names. We all have our difficulties and we making use of this platform to let go of stress and share our opinion. No definite right or wrong but really no need to resort to criticising people who post their opinions. Seek your understanding.
 
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I may not agree that people like BTGoh87 require assistance from the Government (there are many others without roofs over their heads that the G should prioritise). But I do agree with him/her that there is no need to abuse him/her.
 

holasingapura

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The relief I am hoping for is extension of lease we are losing or probably a chance to refinance without huge Penalty. I am not expecting cash payout from Govt, did you misinterpret? How is that greed I don’t know.
We are just caught in this situation because we didn’t cater for this pandemic like many others and we are NOT blaming Govt Just because I did not monetary relief from Govt from the purchase of my new place and I am not such an idiot to expect Govt to give us monetary relief to pay for my new place 😑.

Being in middle class group, we are stuck in between no where and we did not really get any extra monetary relief from Govt except for the JsS which was paid to the companies we are working for And the usual payout to Singaporean. What is so wrong that we are hopeful that we can get some form of relief since many actually got it (monetary and others) and we are just not eligible.

Like I mentioned, regardless how “unreasonable” You think our post is, I don’t think we deserve to be criticised or called names. We all have our difficulties and we making use of this platform to let go of stress and share our opinion. No definite right or wrong but really no need to resort to criticising people who post their opinions. Seek your understanding.
Alright. I apologise for any misunderstanding. I do understand your predicament and I believe many new launch purchasers are in the same shoes as you. What you are facing is not uncommon in the course of business and please understand that the government is not obligated to step in.

I have found some information which may be useful for you. You can try to claim damages directly from developer. However, developer is not obligated to finish construction early on a date that you had expected.

Delivery of Vacant Possession

The developer is required to deliver vacant possession of the unit to you no later than:

 The date as specified in the Sale and Purchase Agreement (S&PA); and,


 21 days from the date of receipt of the payment of 25% of the purchase price.
This payment is due when TOP has been issued, and the roads, drainage and sewerage works serving the housing project have been completed (item 3 of the payment schedule).


The developer is liable to pay liquidated damages to you if they fail to deliver vacant possession of the unit by the above dates.

The developer is contractually bound to deliver vacant possession of the property to the buyer by the date stated in the Option to Purchase (OTP) and S&PA. Otherwise, the developer has to pay liquidated damages to you.
 

holasingapura

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If you urgently need a home for self-stay, should've bought resale instead of new launch. Buying resale, you don't have to waste money paying rent for a few years while waiting for the new condo to be built and TOP.
Perhaps government can offer subsidised rental flats to help him. I believe he should be willing to accept this "relief", in the absence of "greed".
 

holasingapura

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Alright. I apologise for any misunderstanding. I do understand your predicament and I believe many new launch purchasers are in the same shoes as you. What you are facing is not uncommon in the course of business and please understand that the government is not obligated to step in.

I have found some information which may be useful for you. You can try to claim damages directly from developer. However, developer is not obligated to finish construction early on a date that you had expected.

Delivery of Vacant Possession

The developer is required to deliver vacant possession of the unit to you no later than:

 The date as specified in the Sale and Purchase Agreement (S&PA); and,


 21 days from the date of receipt of the payment of 25% of the purchase price.
This payment is due when TOP has been issued, and the roads, drainage and sewerage works serving the housing project have been completed (item 3 of the payment schedule).


The developer is liable to pay liquidated damages to you if they fail to deliver vacant possession of the unit by the above dates.

The developer is contractually bound to deliver vacant possession of the property to the buyer by the date stated in the Option to Purchase (OTP) and S&PA. Otherwise, the developer has to pay liquidated damages to you.
More information for new launch buyers... you do not have to "silently absorb the impact". No force majeure clause in S&PA. Our friend can definitely sue the developers if completion date is later than what is stated in S&PA. No need relief from government. :cool:

I have gained some useful knowledge too, thanks to our fellow forum participant....

Under the Housing Developers (Control & Licensing) Act (HDA) and the Sale of Commercial Properties Act (SCPA), property developers who fail to deliver vacant possession of sold units by the date stipulated in the SPA, “are liable to pay liquidated damages to purchasers — at the prescribed rate of 10% per annum (calculated on a daily basis) — on the total sum of all the instalments paid by the purchaser towards the purchase price of the unit”, comments Norman Ho, senior partner of corporate real estate at law firm Rajah & Tann Singapore.

A developer’s contract with its main contractor would typically contain a force majeure provision (a clause included in contracts to remove liability for natural and unavoidable catastrophes), explains Ho. However, the SPA does not contain such a clause to allow either party to suspend performance of contractual obligations, for example, the developer to deliver vacant possession of a unit to the buyer, he adds.

“Perhaps it’s time for the relevant agencies and authorities to consider introducing a force majeure provision to afford some level of protection to property developers who may find themselves caught between a rock and a hard place when faced with looming deadlines for delivery of vacant possession of units and contractors who are asserting or claiming triggering of force majeure clauses,” Ho comments.

https://www.edgeprop.sg/property-ne...letion-amid-construction-timeline-disruptions
 

arctician

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if i remember correctly, news reported government is looking at emergency legislation by 10th May so that the pain is shared more equitably across developer, main con, subcon, and buyers.

I am guessing they may offer 6mth extension to developer beyond date as stated in S&P, otherwise the pressure will go to main and sub con. This provides more breathing room and absolve them from liability of claims.

i guess government is sending the message - everyone is in it together, and everyone must share the pain
 
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