Help. What does this mean for current property owners.

[Hyruga]

how will this affect existing shoebox unit owners in central areas ?

Shoebox units owner big huat all over Singapore. Limited supply of shoebox units now.

 

[RyanJ]

now then govt stepped in for shoe box issues. Only when after en-bloc fever dies off..
cooling measures can just implement in one night...but this took few years..like so wayang to me.

easier to digest, give some time to equilibrate before the next measure.

Is this new rule applicable for RCR?
From the article, it mentioned outside central area....

the aim is to exert control over non-CCR for the heartlanders

 

[Clazav]

There are two views

1. Since unit size has to be bigger, it will affect affordability. Hence psf to reduce to attract buyer. So quantum goes up in general but psf drops.

2. Less units, less profit for developers compared to what they originally desire. Hence to recoup some profit, developers got to raise psf for all units.

What do you think?

 

[RangerSnake]

There are two views

1. Since unit size has to be bigger, it will affect affordability. Hence psf to reduce to attract buyer. So quantum goes up in general but psf drops.

2. Less units, less profit for developers compared to what they originally desire. Hence to recoup some profit, developers got to raise psf for all units.

What do you think?

I think probably the latter cos seems like recent new launches are still doing quite well.

 

[Clazav]

I think probably the latter cos seems like recent new launches are still doing quite well.

Well, your choice reflects how bearish or bullish you are. I can't conclude though.

 

[RyanJ]

There are two views

1. Since unit size has to be bigger, it will affect affordability. Hence psf to reduce to attract buyer. So quantum goes up in general but psf drops.

2. Less units, less profit for developers compared to what they originally desire. Hence to recoup some profit, developers got to raise psf for all units.

What do you think?

or, they probably come up with various variants of deferred payment schemes upon TOP/CSC .

 

[bojangle]

Resale units with big sizes are all ****ed i guess.

Pple with mickey mouse sizes happy liao lor.

tot u bought for own stay?

isn't it better now? ur unit price will increased compare to future new launch with same square area.

if u rent a unit says 3k/mth x 12 = 36K or 2yrs 72K till u shift in and at even higher psf bought..which u prefer that?

just stay and enjoy now..I'm in same shoes also. Another 10yrs then headache ba

 

[Brown24]

I think probably the latter cos seems like recent new launches are still doing quite well.

Less unit doesn't mean developer will make less profit. If developer bid the land at lower price, lets say breakeven at $1000 PSF PPR, they sell average PSF at $1100, they made 10% profit in average regardless # of units.
The key now is what price developer will bid in upcoming GLS....Next GLS should be the plot at Sims Drive which open for tender next month, that will be a good indicator...

 

[RangerSnake]

Less unit doesn't mean developer will make less profit. If developer bid the land at lower price, lets say breakeven at $1000 PSF PPR, they sell average PSF at $1100, they made 10% profit in average regardless # of units.
The key now is what price developer will bid in upcoming GLS....Next GLS should be the plot at Sims Drive which open for tender next month, that will be a good indicator...

Based on your example, they initially wanted to sell at average PSF of $1100 (taking into consideration that they were able to more smaller sized units). Now that they are allowed to build fewer smaller sized units, to maintain the overall average PSF of $1100, the PSF/Quantum for larger units will have to increase.

Add on: Generally, smaller sized units will command higher PSF.

 

[Clazav]

Less unit doesn't mean developer will make less profit. If developer bid the land at lower price, lets say breakeven at $1000 PSF PPR, they sell average PSF at $1100, they made 10% profit in average regardless # of units.
The key now is what price developer will bid in upcoming GLS....Next GLS should be the plot at Sims Drive which open for tender next month, that will be a good indicator...

I think what he meant is that, as compared to the initial profit, with this new ruling, developers will earn less profit. They will not make a loss most of the time.

 

[Clazav]

Based on your example, they initially wanted to sell at average PSF of $1100 (taking into consideration that they were able to more smaller sized units). Now that they are allowed to build fewer smaller sized units, to maintain the overall average PSF of $1100, the PSF/Quantum for larger units will have to increase.

Add on: Generally, smaller sized units will command higher PSF.

Yup true. So either you expect the developers to stomach the effect for the buyers, or they throw it back to the buyers (or using some creative methods). Anyway government job is to watch show eat pop corn.

 

[Clazav]

Yup true. So either you expect the developers to stomach the effect for the buyers, or they throw it back to the buyers (or using some creative methods). Anyway government job is to watch show eat pop corn.

Let's see early next year which developer dare to be the Guinea pig again. Maybe keppel or wing tai will lead again (ie garden residences).

 

[captain huat]

tot u bought for own stay?

isn't it better now? ur unit price will increased compare to future new launch with same square area.

if u rent a unit says 3k/mth x 12 = 36K or 2yrs 72K till u shift in and at even higher psf bought..which u prefer that?

just stay and enjoy now..I'm in same shoes also. Another 10yrs then headache ba

Yeah la. My wife also scold me. Buy already still monitor so much for what.

The deal is sealed and live with our decision regardless the market goes up or down.

Most important is we were comfortable with our budget and we are not over leverage.

Nonetheless, my new place is bigger than 100sqm and i felt the new ruling is bad for pple who bought resale big units.

 

[bojangle]

Nonetheless, my new place is bigger than 100sqm and i felt the new ruling is bad for pple who bought resale big units.

no worries la, small units are for rental investments. Those with 2 or 3 kids who wants to stay long term will definitely won't go for those less then 800sqf. Is really too small for a family if kids grow up.
I believed u hv seen quite few estates in D19 already. If u will to notice, mostly the resales ard 110sqm sell off faster then the smaller/bigger units. I hv been monitoring my estate on/off too.

 

[kbtsam]

Nice summary

I think the people in Sg can only take one bad news at a time.... so kill the Investors first with ABSD, then kill Flippers with SSD, followed by killing the over-leveraged with TDSR/MSR, then kill HDB Decouplers by not allowing HDB dwellers to decouple, then kill Investors again with MORE ABSD, after which kill En-bloc dreamers with Developer's Development charges, then tekan everyone by reducing maximum Loan and now another blow to Developers with latest size restriction....

Wonder what is next.....