New EC at Sumang Walk

momoeagle

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You are right, Developers will factor in all cost 5% or 10% doesn’t matter. After cost + 20% or 30% profit margin- that’s the selling price to buyers. What matters most will the buyers gonna bite and enrich the developers who overpaid or crazy bid for the land price? Developers never gonna make a loss, so if there is a loss, it will passed to the buyers. Any buyers willingly to help buffer developers loss?
Exactly.

Imagine you are a food supplier. Your cost of imports is high, so you have to sell higher to make a profit. Because cannot lose money mah. Of course sell higher, "no choice" right?

But the fundamental problem (which a lot of agents ignored) is are buyers willing to buy at that high price? All are so focused only on the developer side. Supply and demand are both at work, but why focus only on the supply? It's obviously fomo tactics.

Of course, then all the tricks come to market and sell the properties to increase demand, including some "transformation story" and next launch will be higher price.

Paying a higher price is never an issue if it is a fair price. Paying an overpriced amount is the issue.

Agents job is to sell and advise based on their knowledge, nothing wrong. Buyers job is to have our own analysis and judgment.
 

Eraval

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Most who purchased high park were for investment. Imagine those highly leveraged buyers who are unable to get tenants. What will they do?

Those who have managed to offload high park to "euphoric" buyers the past year are lucky.

Just sell lor, sure make profit one, SG property cannot lose de :s13::s13::s12::s12:



Anyway the Canberra pricing I quite sure at least same pricing levels one, Sumang so far from MRT and not many amenities around also like that, Canberra should be around same, I won't say it's much nearer cause it is not, but the plaza should provide something bah
 

momoeagle

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Took the right boat, jin happy.
Missed the boat, heat pain.
If you onboard the Titanic, cry no tears!
Developers and agents 24/7 - selling the boarding tickets - Welcome on Board!
No heart pain if miss boat la. It isn't life and death, and it is just about $$ which can be easily earned. There are always many other boats around.

It's the reason property is just one of the investment vehicles because there are many other types of vehicles.
 

momoeagle

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100 over rent listings of owners looking for tenants. Not forgetting they will face competition from Botannia once it TOP.
HDBs around the same area also just MOP and are either selling or going for rent as well.

More competition.

I stay just opposite high park.
 

1993newbie

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Oh yeah , apology. Totally forgotten the HDB around high park. Yeap, Fernvale will see more BTO reaching MOP and more BTO coming up. Feb 2019 Fernvale vines was launch, right next to Botannia.

Tons of choices for tenants.

NYk8boh.jpg


HDBs around the same area also just MOP and are either selling or going for rent as well.

More competition.

I stay just opposite high park.
 

momoeagle

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For discussion, do you all thing the GST increase will bring up labour or material cost?
Usually no for big companies. The company building it is not the end consumer. Just need to register as a GST company and can claim back the GST already.

And with SG dollar being so strong, pay lesser for things brought in from overseas, including labour and raw materials.

What will increase costs, is if they don't sell asap. Marketing costs goes up, costs of maintaining showflats go up, and if still cannot sell, ABSD kicks in.

Plus if quantum is too high also cannot sell. Ah gong also limit max possible number of shoebox units (and these are lower quantum but higher psf).

If psf still going higher, likely will yet another round of cooling measures around election time I guess.
 

Passerboy

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IF gst does affect material cost...

2% rise in construction costs. Construction costs makes up ~40% of property development?

2% of 40% = 0.8%. Is that significant at all?

But if 0.8% of a significant sum, it could be high.
 

Passerboy

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Usually no for big companies. The company building it is not the end consumer. Just need to register as a GST company and can claim back the GST already.

And with SG dollar being so strong, pay lesser for things brought in from overseas, including labour and raw materials.

What will increase costs, is if they don't sell asap. Marketing costs goes up, costs of maintaining showflats go up, and if still cannot sell, ABSD kicks in.

Plus if quantum is too high also cannot sell. Ah gong also limit max possible number of shoebox units (and these are lower quantum but higher psf).

If psf still going higher, likely will yet another round of cooling measures around election time I guess.

Yup, I foresee that too.
Resale market does not seem to be doing as well as new launch market.
 

momoeagle

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Yup, I foresee that too.
Resale market does not seem to be doing as well as new launch market.
Same idea mah. Sellers also bought high, want to sell higher. Same as developers buying at high land prices. If can want to make loss meh?

Cycle goes on and on like a musical chair, until... when the music stops...

It happened in history. It may happen again.

Of course, "this time is different".
 

Merg91

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The govt easily un-cools the market if needed.
A bad property market /sentiment affect the economy too.
Many here would be jobless too.

Crashing the property market is not the aim of the govt.
 

momoeagle

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The govt easily un-cools the market if needed.
A bad property market /sentiment affect the economy too.
Many here would be jobless too.

Crashing the property market is not the aim of the govt.

The govt is worried of an impending property crash and is cooling the property market as much as possible to ensure the crash is not as bad when it does come. Prudent.

Unless you can very firmly state that an economic crash will not come within the next 10+ years.
 

Eraval

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The govt easily un-cools the market if needed.
A bad property market /sentiment affect the economy too.
Many here would be jobless too.

Crashing the property market is not the aim of the govt.



You are right, any bad market is not good news for the government, if they need to some of these rules will be relaxed to get things moving again.

With the recent HK situation and news of Dyson snapping up 2 top tier properties, other tycoons may very well come here to stir things up and then snap up some of the cheaper condos for their offsprings, but that's abit far fetched still

When the economy crashes for real tho, all those who took high loans will be left out at sea liao, which is why I feel PG is bad as there is an earning cap, so buyers have to have cash if not their loans are too big for my personal liking
 

Zetrio2006

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When the economy crashes for real tho, all those who took high loans will be left out at sea liao, which is why I feel PG is bad as there is an earning cap, so buyers have to have cash if not their loans are too big for my personal liking


Not really. 5-6 years back, people also mentioned that EC at $650-700 psf has no more potential for capital appreciation. Look what happened?

With neighbouring private condos starting from $1.3k+ psf and EC at $1.1k+ psf, there's still $200+ psf to be gained in the future. Not forgetting you are getting a superior developer in CDL. There are many other big reasons...
 

Merg91

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Cooling measures for impending market crash ? :o
It is more of avoiding overheating /excessive exuberance.

Most govt would avoid any recession /slow down. And OMG in a market crash,many here would not buy - 20% off Sumang as many are jobless & future looks bleak.
 
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momoeagle

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Not really. 5-6 years back, people also mentioned that EC at $650-700 psf has no more potential for capital appreciation. Look what happened?

With neighbouring private condos starting from $1.3k+ psf and EC at $1.1k+ psf, there's still $200+ psf to be gained in the future. Not forgetting you are getting a superior developer in CDL. There are many other big reasons...

The main big reason to me in the continuous push of higher and higher psf is to make earlier launches look cheaper, so that it will clear.

What happened 5-6 years back not my concern though. Hindsight sometimes clouds judgment.

There's always the saying. Past performance does not guarantee future results.

Of course, "this time is different".
 

Merg91

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Is this your own opinion?
The economy must support the price.

Anyway Singapore property pricing is still quite a heaven to many foreign people.
Safe, stable currency, competent govt etc etc.
The levies kill off many of their enthusiasm here.

The main big reason to me in the continuous push of higher and higher psf is to make earlier launches look cheaper, so that it will clear.
 

ahboy82

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Sentiment still damn good la

If not good the cm will b removed liao

Then cm removed the sales will chiong again

So yes better buy now
 

momoeagle

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Is this your own opinion?
The economy must support the price.

Anyway Singapore property pricing is still quite a heaven to many foreign people.
Safe, stable currency, competent govt etc etc.
The levies kill off many of their enthusiasm here.
yes that is my own opinion. True a not I won't know. You want to believe a not I also don't care. Economy can support because we have not have had a major enough recession since 97, and I do hope we don't. Pray pray.

And yes, I do agree property here being a heaven for them. And yes, enthusiasm died down. Since 2017, foreign buyers have been dropping in numbers.

Unless ever there is a "freak" election result
 
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