[GLGT]PM Wong: 99 lease condo owners can only rely on en bloc, and it’s not assured ... It in fact not very many get en bloc.

[OddEye]

He trying to affect the private property market so it brings the price down across the board..hopefully it does and helps control the price

 

[AndroidComa]

enbloc is now a dream that will never come thru.
buyers who buy super expensive units and betting on enbloc r now screwed.

It's by developer, not some tom dick harry

Developer see p&l no feelings one they don't buy good plots to redevelop how they answer to stakeholders?

 

[eAtNeAt]

Condo lease running out is also another time bomb.
Guess now old condo prices will start to plunge.

 

[hardwriter]

Why would i vote for someone who is telling me a decayed lease property is now "NOT" an asset?

 

[Cashflow202]

Why would i vote for someone who is telling me a decayed lease property is now "NOT" an asset?

since when a lease is an asset?


Read HWZ Forum Rules!

 

[thretiredDad]

For 99 years lease
must use the Bala table

https://www.99.co/singapore/insider/balas-curve-leasehold-property-value/

 

[hardwriter]

since when a lease is an asset?


Read HWZ Forum Rules!

After LKY say so....

阿公 said "your hdb value will never drop"....

 

[wwenze]

since when a lease is an asset?


Read HWZ Forum Rules!

Oooo you'll be getting lots of replies explaining why lease is an appreciating asset

 

[Cashflow202]

I know, but let's go into the word definition

Again

Since when a lease is defined as an asset?

 

[tan kuku]

heng moi stayin in moi fwend's FH landed

pak game do grab w/o scare of en bloc

 

[thretiredDad]

I know, but let's go into the word definition

Again

Since when a lease is defined as an asset?

Why is a lease not an asset?

so Edmw’s definition
- from lease is not ownership
- primary residence is not your networth
- lease is also not an asset now?

 

[Cashflow202]

Why is a lease not an asset?
so Edmw’s definition
- from lease is not ownership
- primary residence is not your networth
- lease is also not an asset now?

first of all, let's start with basics by recognizing the fact that a lease with a limited time or shelf life.

will be decaying over time.

now if a person is still financing the purchase, it's not an asset

if the person has fully financed the purchase

it's an asset with an decaying lease

does not make it freehold by any means
does not interpret in any other way, when lease expires = expires.


Read HWZ Forum Rules!

 

[thretiredDad]

first of all, let's start with basics by recognizing the fact that a lease with a limited time or shelf life.

will be decaying over time.

now if a person is still financing the purchase, it's not an asset

if the person has fully financed the purchase

it's an asset with an decaying lease

does not make it freehold by any means
does not interpret in any other way, when lease expires = expires.


Read HWZ Forum Rules!

Yes, the lease definitely decays over time — that part is unavoidable. But in Singapore, you’ll notice that leasehold property values can still go up in spite of this, mainly because of market demand, location, and limited supply.

So while the “theoretical value” of the lease drops as the clock ticks down (e.g., Bala curve), the market value can still rise due to external factors. That’s why we see many 99-year leasehold condos transacting higher today than at launch, even though the lease has already shortened.

At the end of the day, the lease expiry doesn’t change — but the market will still price the asset higher if demand outweighs the natural decay.

 

[bruiser69]

since when a lease is an asset?


Read HWZ Forum Rules!

A decaying lease is a decaying asset

 

[bruiser69]

first of all, let's start with basics by recognizing the fact that a lease with a limited time or shelf life.

will be decaying over time.

now if a person is still financing the purchase, it's not an asset

if the person has fully financed the purchase

it's an asset with an decaying lease

does not make it freehold by any means
does not interpret in any other way, when lease expires = expires.


Read HWZ Forum Rules!

In other words, make hay while the sun shines.

Don't be the last person holding on to the ticking time-bomb. Tick tock tick tock

 

[thretiredDad]

first of all, let's start with basics by recognizing the fact that a lease with a limited time or shelf life.

will be decaying over time.

now if a person is still financing the purchase, it's not an asset

if the person has fully financed the purchase

it's an asset with an decaying lease

does not make it freehold by any means
does not interpret in any other way, when lease expires = expires.


Read HWZ Forum Rules!

Since you are a proclaimed stock market trader

Let me use option as an example

Think of a leasehold property like an option contract.

A call option has an expiry date. As time passes, the option’s time value decays (just like lease decay). But if the underlying stock price rises strongly, the option can still gain in value despite the time decay.

It’s the same with leasehold property — the lease is ticking down, but if market demand and prices rise (the “underlying”), the overall asset value can still go up.

But once the option expires, it’s worthless no matter how high the stock is. Same for leasehold: when the lease runs out, it reverts to the State and has no value.

So yes, lease decay is real — but market forces can still drive prices higher during the lease period, just like option premiums can rise before expiry.

so is an option an asset or not?

but the main difference is
will a bank treat a 99 years lease hold and an option expiring in 99 years the same?

 

[Eliwood]

I know, but let's go into the word definition

Again

Since when a lease is defined as an asset?

If something has value and u can sell/monetise it then shdnt it be considered an asset?

Lease and asset are different words hence of course they have different definitions. But they are not mutually exclusive.

 

[fanflo_08]

https://www.channelnewsasia.com/singapore/hdb-bto-lawrence-wong-resale-million-dollar-flats-5022341

It in fact not very many get en bloc.

How true is this statement? In land scarce SG, dev coy also need to increase their land bank and they can either do that via GLS or en bloc loh.

Just that for leasehold, they still need to pay more to top up the lease

 

[jumpthepig]

If something has value and u can sell/monetise it then shdnt it be considered an asset?

Lease and asset are different words hence of course they have different definitions. But they are not mutually exclusive.

Depreciating Asset….just like consumption.

 

[Eliwood]

How true is this statement? In land scarce SG, dev coy also need to increase their land bank and they can either do that via GLS or en bloc loh.

Just that for leasehold, they still need to pay more to top up the lease

After 99 years the leasehold condo land will return to govt and developers bid via GLS.

No need en bloc in this case...