Which Direction Will Property Prices Go ?

Braun8

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Then we end up incurring higher interest in the 3rd and subsequent years until we collect kegs and big chunk of payment is released by bank then we do refinancing. Long story short, we not only end up with shorter remaining lease, we pay higher interest for from year 3 until TOP when we do refinancing, we also incur extra rent if we are renting a place while waiting for new place to TOP.... I think we are losing out on a lot not only shorter remaining lease. The Govt ought to give us some relief as this pandemic is unprecedented and like the Govt and businesses, we as home buyers did not cater for all that ⚠️ Why are we expected to silently absorb the impact?

If you urgently need a home for self-stay, should've bought resale instead of new launch. Buying resale, you don't have to waste money paying rent for a few years while waiting for the new condo to be built and TOP.
 

Braun8

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Why does the government need to come out and subsidise “rich” condo buyers?

They covered business rents previously to prevent economy from collapsing, rather than trying to bail out individuals.

They also provide JSS to companies to save many citizens jobs and prevent skyrocketing retrenchments and unemployment. This is much more essential than subsidizing rich condo buyers.
 

Eternit

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If you urgently need a home for self-stay, should've bought resale instead of new launch. Buying resale, you don't have to waste money paying rent for a few years while waiting for the new condo to be built and TOP.
resale prices all time high with some COV 80k-100k, buy resale now sell next time lose big how?
 

BTGoh87

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We bought in 2018, did not expect this pandemic to hit. We bought it as a future home for our family and prepare for my boy who is going primary school which I am sure we are not the only one. We all have the right to choose what we deem is suitable for our family, there is no definite right or wrong? What you think is good may not be what we want for our family so there is no need for you to comment in that manner.

I have been seeing really mean comments like we are greedy sinkies, underserving when we are just sharing our thoughts on this platform. I don’t understand the need for keyboard warriors to call names and make nasty comments due to some reasons which I obviously cannot comprehend. I’m sure all of you do some investments, just different forms. For sure it’s greed that makes you invest to grow money or you are a saint?

This is a forum Is a platform to seek advises, share knowledge and information. Not one for another to criticise one another and be nasty. You can disagree but not criticise and be so harsh, the same we teach our children not to do to their friends in school.

Peace
 

holasingapura

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We bought in 2018, did not expect this pandemic to hit. We bought it as a future home for our family and prepare for my boy who is going primary school which I am sure we are not the only one. We all have the right to choose what we deem is suitable for our family, there is no definite right or wrong? What you think is good may not be what we want for our family so there is no need for you to comment in that manner.

I have been seeing really mean comments like we are greedy sinkies, underserving when we are just sharing our thoughts on this platform. I don’t understand the need for keyboard warriors to call names and make nasty comments due to some reasons which I obviously cannot comprehend. I’m sure all of you do some investments, just different forms. For sure it’s greed that makes you invest to grow money or you are a saint?

This is a forum Is a platform to seek advises, share knowledge and information. Not one for another to criticise one another and be nasty. You can disagree but not criticise and be so harsh, the same we teach our children not to do to their friends in school.

Peace
You were seeking monetary compensation from the government. That is wrong and "greedy"!

If you wanted / needed assistance to get temporary housing because you need a roof over your head due to construction delay, that is a different story.
 

BTGoh87

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The relief I am hoping for is extension of lease we are losing or probably a chance to refinance without huge Penalty. I am not expecting cash payout from Govt, did you misinterpret? How is that greed I don’t know.
We are just caught in this situation because we didn’t cater for this pandemic like many others and we are NOT blaming Govt Just because I did not monetary relief from Govt from the purchase of my new place and I am not such an idiot to expect Govt to give us monetary relief to pay for my new place 😑.

Being in middle class group, we are stuck in between no where and we did not really get any extra monetary relief from Govt except for the JsS which was paid to the companies we are working for And the usual payout to Singaporean. What is so wrong that we are hopeful that we can get some form of relief since many actually got it (monetary and others) and we are just not eligible.

Like I mentioned, regardless how “unreasonable” You think our post is, I don’t think we deserve to be criticised or called names. We all have our difficulties and we making use of this platform to let go of stress and share our opinion. No definite right or wrong but really no need to resort to criticising people who post their opinions. Seek your understanding.
 
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extraordinaryboynextdoor

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I may not agree that people like BTGoh87 require assistance from the Government (there are many others without roofs over their heads that the G should prioritise). But I do agree with him/her that there is no need to abuse him/her.
 

holasingapura

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The relief I am hoping for is extension of lease we are losing or probably a chance to refinance without huge Penalty. I am not expecting cash payout from Govt, did you misinterpret? How is that greed I don’t know.
We are just caught in this situation because we didn’t cater for this pandemic like many others and we are NOT blaming Govt Just because I did not monetary relief from Govt from the purchase of my new place and I am not such an idiot to expect Govt to give us monetary relief to pay for my new place 😑.

Being in middle class group, we are stuck in between no where and we did not really get any extra monetary relief from Govt except for the JsS which was paid to the companies we are working for And the usual payout to Singaporean. What is so wrong that we are hopeful that we can get some form of relief since many actually got it (monetary and others) and we are just not eligible.

Like I mentioned, regardless how “unreasonable” You think our post is, I don’t think we deserve to be criticised or called names. We all have our difficulties and we making use of this platform to let go of stress and share our opinion. No definite right or wrong but really no need to resort to criticising people who post their opinions. Seek your understanding.
Alright. I apologise for any misunderstanding. I do understand your predicament and I believe many new launch purchasers are in the same shoes as you. What you are facing is not uncommon in the course of business and please understand that the government is not obligated to step in.

I have found some information which may be useful for you. You can try to claim damages directly from developer. However, developer is not obligated to finish construction early on a date that you had expected.

Delivery of Vacant Possession

The developer is required to deliver vacant possession of the unit to you no later than:

 The date as specified in the Sale and Purchase Agreement (S&PA); and,


 21 days from the date of receipt of the payment of 25% of the purchase price.
This payment is due when TOP has been issued, and the roads, drainage and sewerage works serving the housing project have been completed (item 3 of the payment schedule).


The developer is liable to pay liquidated damages to you if they fail to deliver vacant possession of the unit by the above dates.

The developer is contractually bound to deliver vacant possession of the property to the buyer by the date stated in the Option to Purchase (OTP) and S&PA. Otherwise, the developer has to pay liquidated damages to you.
 

holasingapura

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If you urgently need a home for self-stay, should've bought resale instead of new launch. Buying resale, you don't have to waste money paying rent for a few years while waiting for the new condo to be built and TOP.
Perhaps government can offer subsidised rental flats to help him. I believe he should be willing to accept this "relief", in the absence of "greed".
 

holasingapura

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Alright. I apologise for any misunderstanding. I do understand your predicament and I believe many new launch purchasers are in the same shoes as you. What you are facing is not uncommon in the course of business and please understand that the government is not obligated to step in.

I have found some information which may be useful for you. You can try to claim damages directly from developer. However, developer is not obligated to finish construction early on a date that you had expected.

Delivery of Vacant Possession

The developer is required to deliver vacant possession of the unit to you no later than:

 The date as specified in the Sale and Purchase Agreement (S&PA); and,


 21 days from the date of receipt of the payment of 25% of the purchase price.
This payment is due when TOP has been issued, and the roads, drainage and sewerage works serving the housing project have been completed (item 3 of the payment schedule).


The developer is liable to pay liquidated damages to you if they fail to deliver vacant possession of the unit by the above dates.

The developer is contractually bound to deliver vacant possession of the property to the buyer by the date stated in the Option to Purchase (OTP) and S&PA. Otherwise, the developer has to pay liquidated damages to you.
More information for new launch buyers... you do not have to "silently absorb the impact". No force majeure clause in S&PA. Our friend can definitely sue the developers if completion date is later than what is stated in S&PA. No need relief from government. :cool:

I have gained some useful knowledge too, thanks to our fellow forum participant....

Under the Housing Developers (Control & Licensing) Act (HDA) and the Sale of Commercial Properties Act (SCPA), property developers who fail to deliver vacant possession of sold units by the date stipulated in the SPA, “are liable to pay liquidated damages to purchasers — at the prescribed rate of 10% per annum (calculated on a daily basis) — on the total sum of all the instalments paid by the purchaser towards the purchase price of the unit”, comments Norman Ho, senior partner of corporate real estate at law firm Rajah & Tann Singapore.

A developer’s contract with its main contractor would typically contain a force majeure provision (a clause included in contracts to remove liability for natural and unavoidable catastrophes), explains Ho. However, the SPA does not contain such a clause to allow either party to suspend performance of contractual obligations, for example, the developer to deliver vacant possession of a unit to the buyer, he adds.

“Perhaps it’s time for the relevant agencies and authorities to consider introducing a force majeure provision to afford some level of protection to property developers who may find themselves caught between a rock and a hard place when faced with looming deadlines for delivery of vacant possession of units and contractors who are asserting or claiming triggering of force majeure clauses,” Ho comments.

https://www.edgeprop.sg/property-ne...letion-amid-construction-timeline-disruptions
 

arctician

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if i remember correctly, news reported government is looking at emergency legislation by 10th May so that the pain is shared more equitably across developer, main con, subcon, and buyers.

I am guessing they may offer 6mth extension to developer beyond date as stated in S&P, otherwise the pressure will go to main and sub con. This provides more breathing room and absolve them from liability of claims.

i guess government is sending the message - everyone is in it together, and everyone must share the pain
 

Broadwalk

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no thats last time, now is 20K+ liao including unsold and all uncompleted.

Analyst have been warning on the dwindling land bank of developers and inventory stock at all time low, they predicting the next wave of enbloc fever seen in 2017-2018 to happen soon.

i know some people have been waiting at sidelines since last year predicting a major correction in real estate but surprisingly it didnt happen, so they have been talking the market down.

Same for me i been waiting since last year, but when prices didnt correct after dec 2020 upon ending of loan repayment relief, i know cant wait anymore, visited 10+ projects and issued cheque all in 2 weeks. Sometimes we just have to accept the market reality.
Where you buy in the end?:o
 

holasingapura

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if i remember correctly, news reported government is looking at emergency legislation by 10th May so that the pain is shared more equitably across developer, main con, subcon, and buyers.

I am guessing they may offer 6mth extension to developer beyond date as stated in S&P, otherwise the pressure will go to main and sub con. This provides more breathing room and absolve them from liability of claims.

i guess government is sending the message - everyone is in it together, and everyone must share the pain
This will cause our fellow sinkie to be more upset... need to request more relief from government. :(
 

arctician

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This will cause our fellow sinkie to be more upset... need to request more relief from government. :(
I can only say, as long as one fall under middle upper class and can afford $1-2m+ pte property, leave the reliefs to marginalized segment of society who needs it more.

Govt already say mah - share the pain
 

Braun8

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resale prices all time high with some COV 80k-100k, buy resale now sell next time lose big how?

New launch condo prices all time high, buy new launch now sell next time lose big how? People buying new launch condo at the current insane prices can easily lose money when they sell the next time.

New launch condo prices are more expensive than resale HDB and many resale condos, and what's worse many buyers have to waste money renting a few years while waiting for the new condo to be built/TOP, raising their cost/loss even higher.

Back in 2018 when the poster bought his new launch condo, HDB resale prices were lower and the people buying resale HDB are for self-stay anyways.
 

Braun8

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Perhaps government can offer subsidised rental flats to help him. I believe he should be willing to accept this "relief", in the absence of "greed".

The govt didn't force him to buy an expensive new launch condo. For middle-income citizens, there are cheaper and quicker alternatives for a home like resale HDB or even some resale condos, but yet he chose to buy an expensive new launch condo. So how to sympathize his call for the govt to help due to his own private purchasing decision?

I think the best way for the govt to help is to increase the cooling measures like lowering the TDSR etc, save these middle-income citizens from blowing away their income/savings/CPF on expensive condo homes.
 

Rxgn

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psf will only go higher and higher..

maybe next time outskirts of yishun $1400psf npr $1800 / clementi $1900 psf / one north $2300 psf / bugis $2600 psf

up is the only direction.
 

TeamUSA

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psf will only go higher and higher..

maybe next time outskirts of yishun $1400psf npr $1800 / clementi $1900 psf / one north $2300 psf / bugis $2600 psf

up is the only direction.
If up and up is the only direction, this also applies to all asset classes and its better to put your money in stocks as the property markets always lags the stock market.. even the humble STI has outperformed private property index most of the past decade, let alone US stocks. There is a huge opportunity cost as property investment means you lose large amounts of liquidity - you would have lost chance to make 50%- 80% returns on capital in less than a year from the recent COVID recovery if all your cash is tied up in invstment properties .
 

Entity

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If up and up is the only direction, this also applies to all asset classes and its better to put your money in stocks as the property markets always lags the stock market.. even the humble STI has outperformed private property index most of the past decade, let alone US stocks. There is a huge opportunity cost as property investment means you lose large amounts of liquidity - you would have lost chance to make 50%- 80% returns on capital in less than a year from the recent COVID recovery if all your cash is tied up in invstment properties .
yay, found another favouring stocks asset over property, hehe. however, really no denying that those who were able to flip their new launch condo in 3 years and earn >100%, their returns would be as good as buying stocks from the Covid-19 lows. the key here however is consistency - is one able to reliably purchase a property/stocks and make consistent profits given any period..

for this i really prefer stocks over investment properties, as over the long term stocks will outperform properties
 
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