Private property prices... Up or Down?

[Wind30]

actually 04/05 is still very cheap. It did not rise up a lot during that time, ie the price is still the 2001-2003 prices.

 

That is the time to buy property lah. Basically after a period when not many people is buying. That is usually the safest time.

 

I mean the price now is basically 07 price. And 07 is the year of the enbloc sales where many people flushed with money from enbloc sales had to look for a property.

 

I think a simple way to look at it is, how much can an average singaprean afford to buy a private property? Foreign investment? err... ultimately, foreign people will only buy if they THINK the price is going up. who have to support the property prices in singapre? singaporeans.

[Phochem]

If one do not understand buying a property at current price is a hedge against inflation and keep comparing what has passed then you will never buy anything. (My ah gong bought his HDB for 50k, now 50k is COV portion niah in gd location)

 

Do you actually wan the property price to plunge? tink again.

 

We only hope it will not go up at an unrealistic pace.

[Throttle2]

If you really need one now, just buy the best your money can buy and don't look back. If you can comfortably service the loan, then no need to kill yourself agonising over whether prices will rise or fall. Because if one keeps waiting and waiting, one will never get around to it because there will always be this nagging thought "oh prices might fall next year, etc etc". This attitude helped me in buying 3 properties in 2004/2005. Have sold one last year, now living in one and renting out the other one for high yield.

 

Then again, please do detailed research on the property you are buying because property prices and values, especially with regard to location, unit, etc are not as clear cut as car prices.

 

Good advice. same one i would give.

[UncleWolve]

What do you think? For the coming months, what will the movement be for private properties? Up or down? Stagnant?

 

Asking cos thinking of getting one but duno to wait or buy now...

 

Also, which area is accessible yet affordable?

 

Please contribute. Thanks...

 

WALAO u Like NO IDEA sial... wanna buy private for wad? to show off?

[Beanoyip]

My uncle and relatives bought 3units from Chuan park. Value for money i would say, but prices are rising fast.

[UncleWolve]

If I were to buy now, I would think of the downside: if market crashes, how far down can prices for my property go?

 

Certain properties have lesser downside, certain ones have more. This is due to many factors such as location, supply vs demand for that kind of property in that location, supply vs demand in relation to the number of units your condo has (more competition to sell, driving prices lower), profile of your condo's owners (are they the can afford type or the cannot afford but ngeh ngeh want to buy type), etc.

 

Think so much for wat? u get the deep warm song feelings at the right places dio hor lo... thinks so much kena run over by a bus also lidat...hahaha

[UncleWolve]

Question is are they SONG?

[Porker]

Logan why you so like to listurb ppl today? Beri bad deh

[Duckduck]

where got owner wanna sell at 1000psf? if got please tell i v interested also. y keep saying park infinia? also got a big hobee one launching soon there. anyway that lincoln rd looks abit like hdb area liao so many high rises there plus keng lee rd v narrow plus cte exit that side dam jam also.

[Kelfinity]

It'll have to depend on what's the intention of buying right.

 

investment? stay? flip?

 

My intention is more for investment. Rental Income.

[Kelfinity]

If you really need one now, just buy the best your money can buy and don't look back. If you can comfortably service the loan, then no need to kill yourself agonising over whether prices will rise or fall. Because if one keeps waiting and waiting, one will never get around to it because there will always be this nagging thought "oh prices might fall next year, etc etc". This attitude helped me in buying 3 properties in 2004/2005. Have sold one last year, now living in one and renting out the other one for high yield.

 

Then again, please do detailed research on the property you are buying because property prices and values, especially with regard to location, unit, etc are not as clear cut as car prices.

 

Hi, I believe you are an old hand in property investment. Can advise whether The Parc http://www.goviewing.com/a0926/uc-ibrochure.asp or D'Casita http://developersale.blogspot.com/2008/02/d-14-dcasita.html is worth it? One is in the west and the other in the east. Both near MRT.

 

Thanks.

Edited May 13, 2008 by Kelfinity

[Testa_ross4]

Rental income, forget about about residential, the damage and demands by tenants are way too much, in the end not profitable.

[Viceroymenthol]

Park Infinia not yet go that low, but last week I was alerted by an agent who told me he has one unit in the Istana-facing stack (which is IMO one of the best facing) going for $1200 psf negotiable, so I expect to be able to bargain down. Since then never got back to me so dunno what happened to that unit. Because Park Infinia is now going thru TOP, many of the original buyers who never intended to keep it for long and bought on deferred payment scheme are now panicking at not being able to get a loan, so may sell low. They won't make a loss cos they bought really cheap but they will sell lower than what they were asking for last year.

 

Why do I keep saying Park Infinia?

 

- soon to TOP, and some sellers panicking for reasons outlined above

- soon to TOP, and rental income can be realised ASAP

- Although there are 486 units total, the land area is big and lots of facilities, perfect for expat families, lots of Eton House, etc nearby and supermarkets etc

- This area can rent out at between $6 psf to $8 psf, given that it is a brand new condo by reputable developer (Keppel Land).

- Compared to nearby developments in Newton, Park Infinia is considered undervalued at below $1200 psf.

 

If it is so good why dun I buy it? I dunno whether I want to makan another property. If I have extra cash that i can spare, I definitely will consider if it is really $1200psf below. But that will mean I have to rearrange my financial commitments and priorities.

[Header]

Look at the big picture, chances of pty prices going down substantially is not high. As long as the economy is growing.

Whether price will go up more from high is more difficult to say.

Why u looking at projects such as The Parc? It is a chore to walk to the MRT i think.

[Viceroymenthol]

Not an old hand lah, only started in 2004.

 

I know of the Parc, but have never heard of D'Casita.

 

Whether either is worth it depends entirely on the asking price, characteristics of condo and location. Ardmore Park is worth it at $2000 psf. But at $3500 psf, no.

 

Based on what I know, The Parc is a huge development with full facilities in the not-so-far West, where the govt is trying to start up several large-scale projects with foreign investment. If you believe the govt, this part of the West will be very happening next time. It is near NUS, One North, Jurong Island (ExxonMobil), Jurong Lake (new govt project). Some even speculated there will be the 3rd IR there. I advise to take the IR speculation with a pinch of salt. But it is true the govt trying to jump start the area in selling to foreign investment in industries and probably offices.

 

D'Casita is a small 39 unit development (as per your link) in Kembangan. Typicaly, small developments like this have few facilities. When it gets old, the sinking fund will require a lot more input from residents to maintain the general property. Imagine the sewerage pipe bursts... 39 units of residents have to fork out how much to repair? The good thing is the privacy, with only 39 units.

 

Of course both of the above are just basic assessments of the properties. A lot depends on the pricing and other personal factors you may have. If you are renting out, preferably to a corporate tenant, then bigger condo with facilities and professional maintenance crew will be a better bet, in my experience.

[Viceroymenthol]

It depends.

 

- insist on corporate (MNC) tenant

- insist on nationality and race of tenant of your preference (sorry, but that is the reality)

- vet the prospective tenant (you must insist on meeting him)

- if you have legal access, get somebody to amend rental contract to be more fair. In my experience with corporate tenants, the contract is usually drafted by the MNC (where your tenant is an employee of) so it will favour them. You must amend it to be more balanced

- compensation for damages will be covered under the rental deposit (2 months of rental)

- stay away from those young and rowdy ang mor, even though they may be bankers, etc

- stay away from families, their kids will damage your place

- best is professional singles/couples from Western countries, Japan, and Korea.

 

My rental income now is covering the loan repayment for both my private properties plus $3.5k cash every month to spare. Basically I am living for free in addition to both properties being paid up automatically as long as rental is there. You say profitable or not leh? But I must caveat that my case was exceptional as I had bought cheap, taken moderate amount of loan, some of the loan amount being paid by CPF, and in the past few years rental has moved up significantly. So it depends on the individual.

 

Of course commercial property has higher yield but it ebbs and flows with the economy. Residential properties, people can actually stay in them whether good times or bad times - a roof over your head.

Edited May 13, 2008 by Viceroymenthol

[Kelfinity]

Hey bro,

 

Thanks for the objective view.

 

Saw that you have been looking at those near town.. but really too ex for me. haha. 1K psf is the most i can pay. 2K is way above.

 

In terms of proximity to MRT, the Parc is 600m and D'Casita is 400m. From what you say, the Parc is more worth it. I have that sense also but just that it may get quite crowded. The Parc costs about 1020 psf (667sqf) while D'casita costs about 900psf (537sqf).

 

Anyway, I am getting a studio. Can I safely say that it will be easier to rent out to tenants for the Parc than D'Casita?

 

Thanks.

Edited May 13, 2008 by Kelfinity

[Testa_ross4]

Residential property also ebbs and flows, foreigners will downgrade and leave in bad times.

 

Commercial properties usually tenants renovate swee swee for you, even though you have a dump.

 

Anyway the way you filter tenants very difficult and only idealistic unless times are good.

 

Let's recap your requirements.

 

1. Race

2. Corporate MNC

3. No families with kids

4. No Young and Rowdy singles

5. Must be good identity.

6. Must come from Europe, Japan, Korea

7. High Rental

 

Where to find so many conditions? So headache. And if you catch these type of tenants make sure your property no more than 2 years old, or not they will move on.

 

Commercial properties, times good or bad also will have people want to make money and do business, easy to raise rent and get long term contract. hint, look at Capitaland and see what type of rental property they mostly deal in.

 

Anyway, cannot share too many secrets liao.