Property buyer's thread - Nov 2019

[drkcynic]

1) I don't think the market can absorb the sudden 20-30% up in prices of the new launches in each area. Even if it is somehow absorbed, you still need the next group of buyers to buy your unit at 10% up to even break even upon TOP.

2) Lots of bad sale launches figures registered recently. Firesale detected in jadescape, WLR, Jui Residences to name a few. There are new launches launching every other week. I feel that there could be a glut, especially in the 1 bedder space.

3) Rental rates continues to fall. In fact, after deducting costs and maintenance fees, HDB might be a better option for rental. Also, things are breaking down at a much faster rate and good tenants are becoming very rare. Some houses got "destroyed" in 2 years that the rental is really not worth. Especially if you buy a newly minted condo to rent out.

4) I also don't think people wealth are increasing at a fast enough rate to absorb everything. If government don't release the foreigner tax, who is going to buy all these launches? I personally don't believe the government will release the foreigner tax.

For that, I am out!

 

[leo_llw]

Budget: 1.5-1.8m
Reason: Investment / Ownstay
Time frame: 3-7 years
Currently looking at: District 1,13,14,15,16

Lack of bullets now so looking at both investment (small unit at premium district) and own stay (at outlier around East region)

 

[drkcynic]

Budget: 1.5-1.8m
Reason: Investment / Ownstay
Time frame: 3-7 years
Currently looking at: District 1,13,14,15,16

Lack of bullets now so looking at both investment (small unit at premium district) and own stay (at outlier around East region)

You buying 2 units?

Don't get dragged in by the euphoria created by the agents is my advice. I was like that. But after doing the calculations, stamp duty × 2 is hefty. Assuming you are avoiding absd and buying 1 unit each from husband and wife, the high prices is scary because any mishap in the market and both of you will sink. Not forgeting the interest you incur.

Will your profit be able to cover all these misc costs?

Or are you just buying to enrich your agents?

 

[leo_llw]

Agree with this. Downgraded my uncle's 3BR condo unit into a bargain 3-rm HDB at westcoast. Rented to a group of 6 engineers/workers that work for a shipping company around the area. Great rental yield compared to renting out his condo. Only downside is that he is staying with me in the interim and looking around for a small condo for own stay.

1)

3) Rental rates continues to fall. In fact, after deducting costs and maintenance fees, HDB might be a better option for rental. Also, things are breaking down at a much faster rate and good tenants are becoming very rare. Some houses got "destroyed" in 2 years that the rental is really not worth. Especially if you buy a newly minted condo to rent out.

 

[leo_llw]

Buy 1 unit lah. It is an either own stay or investment.

My wife owns our current abode. I have a current small commercial rented out. Looking out for a residential for myself.

Investment wise - searching for decent rental yield or en-bloc potential.
Own stay wise - searching for new projects that will TOP in 2023 and beyond. By then my wife will probably sell hers and move into mine.

You buying 2 units?

Don't get dragged in by the euphoria created by the agents is my advice. I was like that. But after doing the calculations, stamp duty × 2 is hefty. Assuming you are avoiding absd and buying 1 unit each from husband and wife, the high prices is scary because any mishap in the market and both of you will sink. Not forgeting the interest you incur.

Will your profit be able to cover all these misc costs?

Or are you just buying to enrich your agents?

 

[bigrockshow]

Curious if anyone is considering terrace houses instead? The prices of new launch can literally buy one. Just wanna understand , is it the maintenance that puts people off or distance to amenities etc?

 

[Polar Bear King]

Curious if anyone is considering terrace houses instead? The prices of new launch can literally buy one. Just wanna understand , is it the maintenance that puts people off or distance to amenities etc?

never a big fan of ground floor living environment myself.
scared of snakes and rats

 

[Forever84]

1)

2) Lots of bad sale launches figures registered recently. Firesale detected in jadescape, WLR, Jui Residences to name a few. There are new launches launching every other week. I feel that there could be a glut, especially in the 1 bedder space.


For that, I am out!

Where for firesale siol?

Just because a developer gives a X% discount on certain units it becomes a firesale?

Star buy units have been around forever, they are just a way to draw in buyers.

Doesn't mean a developer has a launch means people must buy, there are good projects and lousy projects. People also forget that projects don't sell out overnight, those days are over.

Bump in HDB grant will also enable more older families to cash out and upgrade.

 

[xtwis7]

Would anybody be keen on an asset similar to property? Assuming they’re buying a new project for rental.

Similar downpayment without incurring ABSD and having non taxable rental income.

 

[drkcynic]

Where for firesale siol?

Just because a developer gives a X% discount on certain units it becomes a firesale?

Star buy units have been around forever, they are just a way to draw in buyers.

Doesn't mean a developer has a launch means people must buy, there are good projects and lousy projects. People also forget that projects don't sell out overnight, those days are over.

Bump in HDB grant will also enable more older families to cash out and upgrade.

Jui, jadescape and WLR are launched in 2018. We are 1+ mth away from 2020.

Almost every agent I know are recommending the same few developments, meaning likely agent fees has increased for the sale of these developments. Desperate measures?

Empty showrooms on weekend.

Then see the % Sold.

It depends on how you see it.

 

[Forever84]

Jui, jadescape and WLR are launched in 2018. We are 1+ mth away from 2020.

Almost every agent I know are recommending the same few developments, meaning likely agent fees has increased for the sale of these developments. Desperate measures?

Empty showrooms on weekend.

Then see the % Sold.

It depends on how you see it.

Indeed it depends on how u see it. Why not highlight projects that selling well like parc botania or riverfront residences? Honestly speaking the reason why WLR sales is slow is simply because price premium over surrounding development. Most investors not stupid one, they will firstly see surrounding resale before looking at new launch. Like I said doesn't mean u build means people must buy. Having said that WLR already sold more than 150 units, which is really not bad result.

And like I said, star buy units been around for ages, they usually have bad facing or some other major cons, you go ask your agent for the discount units then u compare the better stack ask developer for discount u see what he say lo

Don't forget developer margin up to 30% u go calculate how many unit he sell can breakeven laio. And what's a 3% discount on a 30% margin?

 

[Passerboy]

Indeed it depends on how u see it. Why not highlight projects that selling well like parc botania or riverfront residences? Honestly speaking the reason why WLR sales is slow is simply because price premium over surrounding development. Most investors not stupid one, they will firstly see surrounding resale before looking at new launch. Like I said doesn't mean u build means people must buy. Having said that WLR already sold more than 150 units, which is really not bad result.

And like I said, star buy units been around for ages, they usually have bad facing or some other major cons, you go ask your agent for the discount units then u compare the better stack ask developer for discount u see what he say lo

Actually I feel the reason why WLR does not sell well is cos it got off to a bad start, and thereafter it reduced it prices which somehow affected the project’s reputation. Even with SKG pricing at $1750psf avg, units at WLR are still not moving as fast as I thought.

In comparison, Park colonial got off to a good start and is seeing about 80% sold.

At present prices, WLR could be a value proposition though.

 

[Forever84]

Actually I feel the reason why WLR does not sell well is cos it got off to a bad start, and thereafter it reduced it prices which somehow affected the project’s reputation. Even with SKG pricing at $1750psf avg, units at WLR are still not moving as fast as I thought.

In comparison, Park colonial got off to a good start and is seeing about 80% sold.

At present prices, WLR could be a value proposition though.

I feel they lose because or floor plan... If u study floor plan u know what I mean. I feel the WLR layout not efficient

 

[Passerboy]

I feel they lose because or floor plan... If u study floor plan u know what I mean. I feel the WLR layout not efficient

Which layout type ah?

Took a look, I thought their layout are similar to new launch ones typical open kitchen concept for 1 and 2 bedroom units. There is also dumbbell layout for 2 bedroom layout.

 

[Forever84]

Which layout type ah?

Took a look, I thought their layout are similar to new launch ones typical open kitchen concept for 1 and 2 bedroom units. There is also dumbbell layout for 2 bedroom layout.

Walao eh u buying house le, must look carefully. There is a reason why things are arranged as is on the floor plan. Yes dumbbell but look at how the dining table is arranged, I think their 3bedroom also got toilet the door cannot open together one

 

[drkcynic]

Indeed it depends on how u see it. Why not highlight projects that selling well like parc botania or riverfront residences? Honestly speaking the reason why WLR sales is slow is simply because price premium over surrounding development. Most investors not stupid one, they will firstly see surrounding resale before looking at new launch. Like I said doesn't mean u build means people must buy. Having said that WLR already sold more than 150 units, which is really not bad result.

And like I said, star buy units been around for ages, they usually have bad facing or some other major cons, you go ask your agent for the discount units then u compare the better stack ask developer for discount u see what he say lo

Don't forget developer margin up to 30% u go calculate how many unit he sell can breakeven laio. And what's a 3% discount on a 30% margin?

I have no idea what are the developments you have mentioned but I am pretty sure they are cheap that's why sell well.

Jui residences had 58k discount on ALL 3 bedders. So you are wrong on your assumptions.

Anyway it's up to whatever you want to believe.

 

[Forever84]

I have no idea what are the developments you have mentioned but I am pretty sure they are cheap that's why sell well.

Jui residences had 58k discount on ALL 3 bedders. So you are wrong on your assumptions.

Anyway it's up to whatever you want to believe.

Okay, I guess Sengkang residences is cheap as well then.

I also don't know who will buy from this Juihu Malaysian developer

 

[holasingapura]

Indeed it depends on how u see it. Why not highlight projects that selling well like parc botania or riverfront residences? Honestly speaking the reason why WLR sales is slow is simply because price premium over surrounding development. Most investors not stupid one, they will firstly see surrounding resale before looking at new launch. Like I said doesn't mean u build means people must buy. Having said that WLR already sold more than 150 units, which is really not bad result.

And like I said, star buy units been around for ages, they usually have bad facing or some other major cons, you go ask your agent for the discount units then u compare the better stack ask developer for discount u see what he say lo

Don't forget developer margin up to 30% u go calculate how many unit he sell can breakeven laio. And what's a 3% discount on a 30% margin?

I think developers' margin are much lower today after bidding so high for the land....

Parc botania and riverfront sold well because they launched very early and are the cheapest in the market. If investors really look carefully at surrounding resale, many new launches today will not be selling.

 

[drkcynic]

I think developers' margin are much lower today after bidding so high for the land....

Parc botania and riverfront sold well because they launched very early and are the cheapest in the market. If investors really look carefully at surrounding resale, many new launches today will not be selling.

These kinda developments how to make money? Not near MRT and no hype.
Their pricing are lower for a reason...

 

[Forever84]

I think developers' margin are much lower today after bidding so high for the land....

Parc botania and riverfront sold well because they launched very early and are the cheapest in the market. If investors really look carefully at surrounding resale, many new launches today will not be selling.

Many projects are still priced at 30% margin, u just have to look up the land bid price to know.

The very high priced development in CCR, honestly speaking I would avoid. It's easy to paint everything with the same brush. But the proper way is to break down by market segment, if u ask me, OCR, RCR, these will continue to have demand due to price point and general availability of upgraders.

It's easy to pick a development and try and use that to paint a picture of the entire market. You say PB and RFR is cheap, okay, but even SKGR sold at 1700 PSF also had so many takers, which I didn't think was possible.

But CCR, that's a whole different ball game, the market segment is small and the price is high.

To me doesn't matter whether market up or down, I have a own stay condo that I won't sell, and I already recently sold off my investment unit. So in that sense, if market tanks, even better maybe I can pick up a good bargain, lol.