Voodooman Supersonic May 7, 2016 Share May 7, 2016 (edited) http://www.theedgeproperty.com.sg/content/just-sold-two-hdb-flats-sold-above-900k JUST SOLD: Two HDB flats sold above $900k May 5, 2016 A five-room HDB flat at Buona Vista Court on Holland Drive was sold for $945,000 on April 22. Excluding Pinnacle@Duxton, it is the fourth most-expensive transaction for five-room flats this year. Buona Vista Court has recently fulfilled its five-year minimum occupation period. Another five-room flat in the project was also sold above $900,000 in March. A total of six HDB flats changed hands above $900,000 so far this year, excluding Pinnacle @ Duxton, on par with the same period last year. Separately, another a 1,506 sq ft maisonette flat at 60 Dakota Crescent fetched $935,000, making it the third most expensive maisonette in Geylang town historically. The most expensive transaction in Geylang town was for a 1,646 sq ft maisonette, which was sold for $950,000 in March. But my friend is trying to sell off her HDB as her EC is ready and after reducing ASK (from last transacted in her area) by 20%, still no taker. Prices have dropped lah, maybe not the magnitude many expect but it is definitely heading south and I think we are already at the tipping point. There are some good bargains around in the resale market. Edited May 7, 2016 by Voodooman ↡ Advertisement 3 Link to post Share on other sites More sharing options...
Showster Twincharged May 7, 2016 Share May 7, 2016 But my friend is trying to sell off her HDB as her EC is ready and after reducing ASK (from last transacted in her area) by 20%, still no taker. Prices have dropped lah, maybe not the magnitude many expect but it is definitely heading south and I think we are already at the tipping point. There are some good bargains around in the resale market. The price pressure is on HDB now. Many people looking to sell although those with special attributes still rarely available. A sizeable number previously hoped to buy multiple properties, but now are only left with EC or PC upgrade. And others see HDBs starting to sell and upgrade also want to sell before price drops. Expect avalanche sales coming for HDB. Link to post Share on other sites More sharing options...
car50 Twincharged May 7, 2016 Share May 7, 2016 This is a very good deal not just for the Seller, Great deal for the Buyer. at $1300pfs, FH, very good size 1500sfeet unit in a condo with 2 exits (bukit timah and margolith), just opp Stevens MRT with many premium schs around and within 3 mins to Orchard by car and with multiple buses everywhere Somemore, condo surrounded by good class bungalows Good Fengshui, rubbing shoulders with ultra-rich everyday, some of their richness will surely overflow over! Who says cannot make money buying in 2016 The last million-dollar profit was traced to a 1,507 sq ft unit at Chatelet on Margoliouth Road. The seller reaped a $1.1 million profit from the sale last month for $2.1 million ($1,394 psf). He purchased the unit in October 2006 for $1.1 million ($709 psf). 9 Link to post Share on other sites More sharing options...
Hosaybo 6th Gear May 7, 2016 Share May 7, 2016 But my friend is trying to sell off her HDB as her EC is ready and after reducing ASK (from last transacted in her area) by 20%, still no taker. Prices have dropped lah, maybe not the magnitude many expect but it is definitely heading south and I think we are already at the tipping point. There are some good bargains around in the resale market. Your friend probably staying in area like Sengkang where many others are selling at the same time. 2 Link to post Share on other sites More sharing options...
Voodooman Supersonic May 7, 2016 Share May 7, 2016 (edited) Your friend probably staying in area like Sengkang where many others are selling at the same time.During the bull run, even HDB in Woodlands are "prime" real estate, now it is KNS market but fear not, HDB are still selling at record prices in certain locations notwithstanding the weak and oversupplied HDB resale market. During the good years, analysts talk about the buoyant HDB resale and rental market supporting the private residential market and with rising HDB resale prices, the underlying demand is strong but now HDB resale is bad but the reverse do not apply as Singaporeans are sibei rich, so is there a correlation? Edited May 7, 2016 by Voodooman Link to post Share on other sites More sharing options...
Showster Twincharged May 7, 2016 Share May 7, 2016 During the bull run, even HDB in Woodlands are "prime" real estate, now it is KNS market but fear not, HDB are still selling at record prices in certain locations notwithstanding the weak and oversupplied HDB resale market. During the good years, analysts talk about the buoyant HDB resale and rental market supporting the private residential market and with rising HDB resale prices, the underlying demand is strong but now HDB resale is bad but the reverse do not apply as Singaporeans are sibei rich, so is there a correlation? Actually HDB prices and rental in the outskirt areas have already gone down by maybe 15-20% over the last two years. There might have been resistance to sell as previously, many had planned to capitalise on the rental yields of HDB and buy a condo to stay. The current rulings will in the longer run stabilise HDB rental by limiting supply of HDBs for rental, but there will be further price pressure in the meantime as some HDB upgraders might forsake their previous plans. Income growth, macroeconomic policies, prices and quantity have all got to be read together to understand the market. Prices is just one indicator. Link to post Share on other sites More sharing options...
tenyawph Turbocharged May 7, 2016 Share May 7, 2016 (edited) My late aunt's 520 sq ft 1-bedder conservation flat in Tiong Bahru estate, which she bought in 1967 for $10,600, is recently sold at $560,000. The local buyer paid a 1% option fee. I hope the transaction goes through. In property's speak, the transacted price represents an annualised gain of 7.8% over 49 years, and at a multiple of almost 53 times the original purchase price. The psf price achieved for this leasehold unit (51 years left) is $1,076 psf. I have to thank my property agent for the hard work (about 3 months) she did to market this niche unit, a pre-war house built in the 1930s. What does the buyer stand to gain? A potential rental yield of over $1.2M at a conservative estimate of $2K per month for the remaining leasehold period. Edited May 7, 2016 by tenyawph 5 Link to post Share on other sites More sharing options...
Voodooman Supersonic May 7, 2016 Share May 7, 2016 (edited) Actually HDB prices and rental in the outskirt areas have already gone down by maybe 15-20% over the last two years. There might have been resistance to sell as previously, many had planned to capitalise on the rental yields of HDB and buy a condo to stay. The current rulings will in the longer run stabilise HDB rental by limiting supply of HDBs for rental, but there will be further price pressure in the meantime as some HDB upgraders might forsake their previous plans. Income growth, macroeconomic policies, prices and quantity have all got to be read together to understand the market. Prices is just one indicator. Income growth, macroeconomic policies..... all flat or negative in this market, the other big factor supporting the market is liquidity and low interest rate, not sure where that is heading? Edited May 7, 2016 by Voodooman Link to post Share on other sites More sharing options...
Voodooman Supersonic May 7, 2016 Share May 7, 2016 (edited) My late aunt's 520 sq ft 1-bedder conservation flat in Tiong Bahru estate, which she bought in 1967 for $10,600, is recently sold at $560,000. The local buyer paid a 1% option fee. I hope the transaction goes through. In property's speak, the transacted price represents an annualised gain of 7.8% over 49 years, and at a multiple of almost 53 times the original purchase price. The psf price achieved for this leasehold unit (51 years left) is $1,076 psf. I have to thank my property agent for the hard work (about 3 months) she did to market this niche unit, a pre-war house built in the 1930s. What does the buyer stand to gain? A potential rental yield of over $1.2M at a conservative estimate of $2K per month for the remaining leasehold period. The maths is not entirely comparable but there is a lot of assumptions behind the 2k per month over 51 years tenure computation, if you have appetite for 51 years investment, think CPF special account is best as it is guaranteed and deemed to be almost risk free. Edited May 7, 2016 by Voodooman Link to post Share on other sites More sharing options...
Showster Twincharged May 7, 2016 Share May 7, 2016 (edited) Income growth, macroeconomic policies..... all flat or negative in this market, the other big factor supporting the market is liquidity and low interest rate, not sure where that is heading?Household and median income have almost doubled since 2009. Macroeconomic policies have been negative for property for several years to regulate ownership and deter speculation. Recent policies are harsher towards HDB upgraders (disallowing decoupling) while pro inflation (zero appreciation of currency). No points for guessing how some HDB upgraders will respond with the prices of private property currently versus the still high index of HDB. The pent up real demand is very real although speculators might have totally lost interest in local real estate. Which is good for all. If you enjoy CPF SA or RA interest rates, you can feel free to put in half a million if it makes you a happier person. Edited May 7, 2016 by Showster Link to post Share on other sites More sharing options...
Showster Twincharged May 7, 2016 Share May 7, 2016 (edited) The basic idea is that everyone needs a place to stay. The Tiong Bahru flat is an unavoidable expense. Most likely the buyer is intending to stay in it instead of renting for 51 years. What will the rent of a 1BR be in year 2067? 2000? Edited May 7, 2016 by Showster Link to post Share on other sites More sharing options...
tenyawph Turbocharged May 7, 2016 Share May 7, 2016 The maths is not entirely comparable but there is a lot of assumptions behind the 2k per month over 51 years tenure computation, if you have appetite for 51 years investment, think CPF special account is best as it is guaranteed and deemed to be almost risk free. image.png Thank you Voodooman for your feedback. It is a reasonable and conservative estimate, as inflation is not taken into account, when computing the $1.2M rental yield. In 10 years' time, the rental will not be $2K per month but higher, more so in 20 years' time and so on and so forth. so the buyer done his homework, and has the foresight to think long term. Now it is just not possible to bank in $560K directly into the CPF special account, to earn a relatively high 4% interest. However, at age 55, you have the 'chance', so to speak. If one has a lot of money in the CPF account (e.g. half a million dollars), you can now earn 4% interest in your ordinary account. And the best part, you can withdraw anytime (applicable only for the ordinary account)! See below: Congratulations on reaching your early 50s. I see that you are waiting to collect your CPF at age 55 (after setting aside for money for the Retirement account). The big question: Should you continue to save with CPF? Personally, my recommendation is a resounding yes. Use spare cash in your bank instead. Reason? When you hit 55 years old, the interest rates for your CPF accounts (Info from CPF Document: Your Assurance in Retirement, accurate as at 15 Mar 2016) are as follows: CPF balances (Ordinary account, Special account, medisave account, retirement account) First $30K - 6% (p.a.) Next $30K - 5% (p.a.) Amounts above $60K - 4% (p.a.) If we talk about risk-free investment, nothing beats or matches the CPF's rate (applicable for CPF members hitting 55 years of age). In any case, if there is an emergency, you can apply to withdraw your CPF savings any time later. 7 Link to post Share on other sites More sharing options...
Throttle2 Supersonic May 7, 2016 Share May 7, 2016 i know ... if this guy can make 1.9 ... may be T2 made smelly smelly 2.9 selling at its high ... ... hehe Brother. I didnt buy another landed in 2010 I only bought a D9 condo in 2010. Confirm didnt make so much lah plse..... My tiny Landed bot in 2008 is fully paid and for staying so it doesnt make too much of a difference even though prices did double. The big upswing in Landed happend largely in 2011 to 2013. From 2008 to 2011, increase was still gradual and steady. As a conservative person, i didnt buy a 5000sft detached back then. Something located in suburbs 20mins from city centre would cost around $3m But i never live to regret. Some things happen out of expectations. Am glad for what came my way. That is why i said before. Smart people will never make more money than lucky people. And the ability to make money is not a definitive measure of intelligence. Make money remember to save Dont spend it all and dont spend it too easily. That is even if you have a hill behind you. Good luck. 4 Link to post Share on other sites More sharing options...
Throttle2 Supersonic May 7, 2016 Share May 7, 2016 My late aunt's 520 sq ft 1-bedder conservation flat in Tiong Bahru estate, which she bought in 1967 for $10,600, is recently sold at $560,000. The local buyer paid a 1% option fee. I hope the transaction goes through. In property's speak, the transacted price represents an annualised gain of 7.8% over 49 years, and at a multiple of almost 53 times the original purchase price. The psf price achieved for this leasehold unit (51 years left) is $1,076 psf. I have to thank my property agent for the hard work (about 3 months) she did to market this niche unit, a pre-war house built in the 1930s. What does the buyer stand to gain? A potential rental yield of over $1.2M at a conservative estimate of $2K per month for the remaining leasehold period. In the long run, real assets such as properties will always return a decent performance. But in the short run, it can screw you if you are not prepared. A Rolex which cost $500 in the sixties can be worth $50,000 today Thats one hundred times!!!!! But in 50yrs. I dont dream for so much but if my quarter million dollars worth of Rolexes can go up 5 times in another 25yrs, its not too bad already lah Finally, in the discussion of yields and returns etc for properties. Remember its not just buying price and sales price. There are a lot of other things in the middle. Cigar tonight anyone? 1 Link to post Share on other sites More sharing options...
Showster Twincharged May 7, 2016 Share May 7, 2016 (edited) In the long run, real assets such as properties will always return a decent performance. But in the short run, it can screw you if you are not prepared. A Rolex which cost $500 in the sixties can be worth $50,000 today Thats one hundred times!!!!! But in 50yrs. I dont dream for so much but if my quarter million dollars worth of Rolexes can go up 5 times in another 25yrs, its not too bad already lah Finally, in the discussion of yields and returns etc for properties. Remember its not just buying price and sales price. There are a lot of other things in the middle. Cigar tonight anyone? True gentleman! Respect. We should realistically not expect the run up in the last 50 years. Last 50 years 50X growth, next 50 maybe 3X is a lot. In terms of % it is good to look at other markets and instruments once you have prepared and set the local ones. Edited May 7, 2016 by Showster 1 Link to post Share on other sites More sharing options...
Throttle2 Supersonic May 7, 2016 Share May 7, 2016 You believed me ah? I toa pow one lah. Simi landed? I stay in CCk hdb lah Here's proof Muayhahahaha Nonetheless, good luck and good weekend! Link to post Share on other sites More sharing options...
Voodooman Supersonic May 7, 2016 Share May 7, 2016 Thank you Voodooman for your feedback. It is a reasonable and conservative estimate, as inflation is not taken into account, when computing the $1.2M rental yield. In 10 years' time, the rental will not be $2K per month but higher, more so in 20 years' time and so on and so forth. so the buyer done his homework, and has the foresight to think long term. Now it is just not possible to bank in $560K directly into the CPF special account, to earn a relatively high 4% interest. However, at age 55, you have the 'chance', so to speak. If one has a lot of money in the CPF account (e.g. half a million dollars), you can now earn 4% interest in your ordinary account. And the best part, you can withdraw anytime (applicable only for the ordinary account)! See below: Just saying on the special account but if you are willing to take 51 years tenure risk, technically, it should not be difficult to achieve a more than 5% pa. return, which would yield more than $7 million at maturity on amount of $560k. Agree property return has been good historically but with all the QE and low interest rates in the last 10 years, asset prices are at record high all over the world, so upside may be limited, just my view. If no material price correction, it is hard to consider RE investment at the present moment. I would think the buyer bought it for own stay, for the good location, otherwise might as well get a LH at a similar location but with remaining lease of say 70-80 years, at least you get rental income and possible capital gains, this one difficult to sell after another 10 years and buyers can't even get financing. Household and median income have almost doubled since 2009. Macroeconomic policies have been negative for property for several years to regulate ownership and deter speculation. Recent policies are harsher towards HDB upgraders (disallowing decoupling) while pro inflation (zero appreciation of currency). No points for guessing how some HDB upgraders will respond with the prices of private property currently versus the still high index of HDB. The pent up real demand is very real although speculators might have totally lost interest in local real estate. Which is good for all. If you enjoy CPF SA or RA interest rates, you can feel free to put in half a million if it makes you a happier person. Median income doubled in last 6 years? Alamak, must go talk to my boss. Link to post Share on other sites More sharing options...
Throttle2 Supersonic May 7, 2016 Share May 7, 2016 Just saying on the special account but if you are willing to take 51 years tenure risk, technically, it should not be difficult to achieve a more than 5% pa. return, which would yield more than $7 million at maturity on amount of $560k. Agree property return has been good historically but with all the QE and low interest rates in the last 10 years, asset prices are at record high all over the world, so upside may be limited, just my view. If no material price correction, it is hard to consider RE investment at the present moment. I would think the buyer bought it for own stay, for the good location, otherwise might as well get a LH at a similar location but with remaining lease of say 70-80 years, at least you get rental income and possible capital gains, this one difficult to sell after another 10 years and buyers can't even get financing. I am with you here, Voodoo. ↡ Advertisement Link to post Share on other sites More sharing options...
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