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Old 11-09-2019, 02:59 PM   #2476
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EC got 5 yr MOP but PC got 3 year Seller Stamp Duty (because no investor in the right mind will sell their PC within 3 years and pay SSD). So effective it is only about 2 yrs difference. The difference will be even narrower when EC sellers ask for exemption to their 5 yr MOP, hence right, EC and PC price will continue to narrow.

Resale prices will get hit again. So property buyers can expect their units to be sold cheaper and cheaper as the lease starts to run out.

Another thing is probably Govt is doing this to ensure sufficient demand for Tengah development. Expect lot of BTO and EC coming in that area for the next couple of years.
EC took about 3 years to build and 5 mop starts when u stayed in. Total about 8 years.
PC took 3 years to top and by that time you can sell w/o incurring ssd.
How can it be 2 years difference? Itís 5 years difference.
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Old 11-09-2019, 02:59 PM   #2477
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I also suddenly got this strange feeling, that with the new cap, more will join the EC queue.

But then less are in the PC queue. Orh oh... less demand for PC liao.
Then with EC and PC prices closing up..... more go for EC then PC how? Unsold units approaching 2007 numbers, and still got a lot more in the pipeline already, building halfway. How ah?

Foreigners buy and pay more taxes in the meantime? Or means must open floodgates to let a lot a lot more foreigners come in?

Hmmm... Interesting times.
Those who bought EC early before 2017 at $700~$800psf all happy like bird. It's only just a few years back EC start hitting above $1k.
That time I said buy those EC at Sembawang (Visionaire, Brown Stone, Parc Life) while they are still affordable, got pple JiJi why why.
Now those who want <$800psf EC, wait long long. Maybe Tengah area will hv.
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Old 11-09-2019, 03:00 PM   #2478
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will demand really surge significantly given that MSR is still 30%?
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Old 11-09-2019, 03:03 PM   #2479
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I thought its much more than 20% today. condo not so exclusive anymore.
TBH I don't have any data or numbers too, especially because it doesn't matter to me.

What really matters is where I want to buy, because of parents and because of kids. Then comes affordability.

Well....are we taking about buy a private for self stay?
Or buy a 2BR private to rent out collect rental ďPASSIVE INCOMEĒ?

very different leh

From what Iíve observed in the past few mths,those bought new PC big units for stay in ones are mostly foreigners. And almost all sinkies would buy 2-3BR smaller units planning to rent out to pay for mortgage invest kind.

So is 20% local sinkie plus donít know how many rich Indo/PRC/other nationalities supporting the PC market
True true. Generally 2BR easier to rent out, and higher yield than 3BR and above. So say both my property investor friend and property agent.

Good for these people to come pay extra tax to help support govt spending.
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Old 11-09-2019, 03:23 PM   #2480
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That’s right bro. That’s what I’m trying to say. The timeline is totally diff.

By the time EC/BTO collect their Keys, PC owners can sell their condo without incurring SSD.

Extra 5 years means PC owners will be able to buy another time after selling the first time.

8 years > PC owners gain twice.(If market is good) while EC just MOP.

EC took about 3 years to build and 5 mop starts when u stayed in. Total about 8 years.
PC took 3 years to top and by that time you can sell w/o incurring ssd.
How can it be 2 years difference? It’s 5 years difference.

Last edited by 1993newbie; 11-09-2019 at 03:28 PM..
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Old 11-09-2019, 03:31 PM   #2481
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Thatís right bro. Thatís what Iím trying to say. The timeline is totally diff.

By the time EC/BTO collect their Keys, PC owners can sell their condo without incurring SSD.

Extra 5 years means PC owners will be able to buy another time after selling the first time.

8 years > PC owners gain twice.(If market is good) while EC just MOP.
Opportunity cost as well.
Time is money, thatís the difference betw EC and PC.
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Old 11-09-2019, 04:33 PM   #2482
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Ec price sets pc price but it wouldn't be able to draw the crowd from pc to ec that much since there aren't many ec around as compared to pc.

I also suddenly got this strange feeling, that with the new cap, more will join the EC queue.

But then less are in the PC queue. Orh oh... less demand for PC liao.
Then with EC and PC prices closing up..... more go for EC then PC how? Unsold units approaching 2007 numbers, and still got a lot more in the pipeline already, building halfway. How ah?

Foreigners buy and pay more taxes in the meantime? Or means must open floodgates to let a lot a lot more foreigners come in?

Hmmm... Interesting times.
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Old 11-09-2019, 04:40 PM   #2483
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More than difference of 2 years as if you include building period. Ec need 3 (building period) + 5 years (mop) while pc is only 3 years (ssd).

EC got 5 yr MOP but PC got 3 year Seller Stamp Duty (because no investor in the right mind will sell their PC within 3 years and pay SSD). So effective it is only about 2 yrs difference. The difference will be even narrower when EC sellers ask for exemption to their 5 yr MOP, hence right, EC and PC price will continue to narrow.

Resale prices will get hit again. So property buyers can expect their units to be sold cheaper and cheaper as the lease starts to run out.

Another thing is probably Govt is doing this to ensure sufficient demand for Tengah development. Expect lot of BTO and EC coming in that area for the next couple of years.
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Old 11-09-2019, 07:04 PM   #2484
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Ec price sets pc price but it wouldn't be able to draw the crowd from pc to ec that much since there aren't many ec around as compared to pc.
So in your opinion, because there are many many more HDBs around, it will be able to draw the crowd from EC over?
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Old 11-09-2019, 08:36 PM   #2485
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PG is $1k+(even cheaper with grants)
but recent PCs where got $1.1k?
PG no ballot for most but some PCs also needed
balloting.
I have to agree with you.. haha..

firstly, PG price is from $933 psf( average $10xx psf) .. where can u find a cheaper new launch in Sg at this moment? the cheapest 3 bdrms is $888k ( assuming plus levy $40k) = $928k ( $1104 psf ) .. I seriously cant think of any new launch that is ard $1104psf...

with the increase in the income ceiling, I would reckon its matter of time the price will also follow suit.. just my own opinion.. pls dun quote me..
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Old 11-09-2019, 08:42 PM   #2486
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The grants for ec got go up? Or still <10k combine income - get 30k, <11k get 20k, and <12k get 10k

The news article did not mentioned about ec grants. Is it also more grants?
the Grant still remains the same.. max $30k grant..
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Old 11-09-2019, 09:01 PM   #2487
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with the increase in the income ceiling, I would reckon its matter of time the price will also follow suit.. just my own opinion.. pls dun quote me..
Beyond a certain level of income, ppl won't be interested in EC. They want status, they want others to know about their success, they want a real "luxury" condo. And they want their kids to get into elite primary schools. Ceiling can well be raised to 50k but the effect on prices will be minimal.

Thats a good strategy of marketing piermont though. Clap for you!

We have to wait till next year to see the real effects. But as another member mentioned, last round of ceiling raising did not impact EC prices much.
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Old 11-09-2019, 09:35 PM   #2488
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Beyond a certain level of income, ppl won't be interested in EC. They want status, they want others to know about their success, they want a real "luxury" condo. And they want their kids to get into elite primary schools. Ceiling can well be raised to 50k but the effect on prices will be minimal.

Thats a good strategy of marketing piermont though. Clap for you!

We have to wait till next year to see the real effects. But as another member mentioned, last round of ceiling raising did not impact EC prices much.
hey, u r back... the forums was no fun without u.. too quiet.. lolssÖ

wat I meant is, with the increase in the ceiling cap, PG pricing may follow suit.. not the overall EC pricing.. but then again, monkey see monkey do.. if the next EC dev see PG increase price,what are the chances of them not increasing their price?? we'll find out next year..
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Old 11-09-2019, 09:41 PM   #2489
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hey, u r back... the forums was no fun without u.. too quiet.. lolss…

wat I meant is, with the increase in the ceiling cap, PG pricing may follow suit.. not the overall EC pricing.. but then again, monkey see monkey do.. if the next EC dev see PG increase price,what are the chances of them not increasing their price?? we'll find out next year..
No problem. Btw, we have fresh funds for investment, looking for highest yielding 1 or 2 bedder. Cash settlement. Any recommendations mdm? We are looking for highest rental yield, does not matter where the project is. Resale is also possible but not more than 15yo.
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Old 11-09-2019, 09:43 PM   #2490
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My views: In those mature estates, resale are selling at 500k and above. Hard to get combined 4k income to buy the place even if they have 45k grant. It's just too exp. More than combined income of 9k, no grant. So I would think impact on resale generally would be downward pressure now that more people can apply for bto, ecs. in the past trend, everytime gov increase income ceiling by 2k, btos launch price goes up by 150k to 200k. So what we will really see is narrowing of the price difference between bto and resale. Means gone are the days where people can make a huge fortune from selling their btos.

The sumang EC will probably be snatched up cos they know the next EC launch will probably be selling at a higher price since combined 16k income can buy. This will also cause downward pressure on PC which used to attract buyers from this income level.

Who is the winner then? Gov! Cos they can sell their btos and ec land plots at higher prices. This is mainly to plan for GSW where the btos probably will sell at 900k and above.
i agree. at the end of the day, its just a form of wealth transfer. those are earning very little will get the most grants and most grads or at least people who have the means to buy condo in the future should be earning above 9k when they buy their own house so most of the new grants will not go to them. where will gov get this money to sustain these poor people? has to come from somewhere, maybe from selling 900k btos or selling higher priced land plots after more bidding and demand for ec plots from developers.

election also coming, those who have seen resale prices falling for their hdb will have breathing space. I honestly believe this policy is for HDB owners not EC or condo owners to benefit. they may benefit at some point but i think government main consideration at this point are the HDB owners.

I still do not see value at these levels. its just a pure momentum play. rental and interest rates and additional buyer stamp duty really does not make sense for investment for yields. Unless rental goes up with more foreigners (i doubt with an election coming), or we enter a very very very low-interest rate environment like europe where danish mortgage rate is negative (its possible, 30y SGD bonds is around 2% now). will condo investing be like investing for landed? low yield but capital appreciation very good? or will we be like HK, where condo prices just keep going and nobody is looking for yield anymore and willing to just leave the place empty for momentum play?
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