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Private-property prices fall sharply in core area


Mustank
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Buy buy buy if I don't buy within this year I not sabbie

 

 

you will be another nick rite? keke

 

 

 

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My take is that all these guys are missing the point..

House prices will drop when interest rates go up.

When the marginal buyers can no longer comfortably afford the monthly installments, then you will see prices drop across the board.

 

Like another bro said, rental also another significant factor, for investor-owner.

Obviously, interest rate will impact investor-owners as well.

For occupier-owner, the only thing that will impact is interest rate. Period.

 

Reason being, most SG-reans buy things on huge leverage.

80% loan, 90% loan, 35 yr loan, as long as people can afford the installments, they think they can afford it.

Very few are like Throttle.

 

They do not consider the impact of rising i/r.

I know some ppl who earn combined gross income of maybe 12-15K and stay $1.7M condo.

Price drop a bit, they dun care, as long as they can pay installments.

 

Once i/r rise and money becomes tight, thats when they will start to sell.

So i/r is the largest determining factor, amongst others.

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Once i/r rise and money becomes tight, thats when they will start to sell.

So i/r is the largest determining factor, amongst others.

 

the worrisome trend is that foreigners account for 30% of all new sales. If this persists, will Singies accept that 1/3 of all private properties are foreign landlords? From political view, i dun thk this is acceptable. SG is not a place for rich foreigners to landbank...

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Neutral Newbie

I know some ppl who earn combined gross income of maybe 12-15K and stay $1.7M condo.

Possible if they don't have kids, insurance policies and car. But those for those with kids, car, insurance...12-15k gross is not enough to stay at 1.7m condo.

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So in essence, all prices are inter-twined. IF CCR comes down there will be pressure for OCR and RCR to also come down, which is not the case now. Why not buy a Holland, RV or Newton FH if anyone is willing to sell 1500 psf?

 

Yes, CCR/OCR/RCR prices are related. But it is more strongly influenced by the renal yield it can fetch.

 

Usually the gross annual rental yield of a private property will be around 4% +/- of the price of the unit.

 

There are FH walk-up apartments in Novena (<300m) walking distance to Novena MRT/Novena square right now that you can get for around $1.2K psf.

 

 

 

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Why are analyses based on short term trends being used to debate/forecast on supposed long term investment/purchase?

 

:ph34r:

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$1400psf punggol property with size of 1000sqft cost $1.4mil.. what r u talking abt? U are saying $1.4mil cannot get property or no property at shenton cost $1400psf? If its later, u r right.. shenton way dun cost $1400psf.. if u mean $1.4mil cannot buy anything in cbd, then u r wrong.. can buy, just not 1000sf.. u say must compare apple to apple mah.. so i say i dun understand what u talking abt.. comparing cbd to punggol is not apple to apple..

 

Compare size la..you compare PSF for what? PSF is just mathematics only.... if you find one 1000 sq ft in Orchard or CBD brand new for $1.4m let me know.

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My take is that all these guys are missing the point..

House prices will drop when interest rates go up.

When the marginal buyers can no longer comfortably afford the monthly installments, then you will see prices drop across the board.

 

Like another bro said, rental also another significant factor, for investor-owner.

Obviously, interest rate will impact investor-owners as well.

For occupier-owner, the only thing that will impact is interest rate. Period.

 

Reason being, most SG-reans buy things on huge leverage.

80% loan, 90% loan, 35 yr loan, as long as people can afford the installments, they think they can afford it.

Very few are like Throttle.

 

They do not consider the impact of rising i/r.

I know some ppl who earn combined gross income of maybe 12-15K and stay $1.7M condo.

Price drop a bit, they dun care, as long as they can pay installments.

 

Once i/r rise and money becomes tight, thats when they will start to sell.

So i/r is the largest determining factor, amongst others.

like!

 

Just keep quiet and go shopping in the next "few good years"...

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Compare size la..you compare PSF for what? PSF is just mathematics only.... if you find one 1000 sq ft in Orchard or CBD brand new for $1.4m let me know.

1.65 mill I can find you wanna buy?

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Guys, you all not fair leh.

 

I was the first guy to say that property will face a correction in Q4 2011. I said that in July/Aug 2011.

 

Then you guys all say I nuts...not possible. I say just remember my posting and we see what happen come early 2012.

 

Now you all copy and paste such news from everywhere. Then all the property experts start giving interview like as if they predicted long ago.

 

Please remember I am the guy who said it first.

 

 

 

 

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Guys, you all not fair leh.

 

I was the first guy to say that property will face a correction in Q4 2011. I said that in July/Aug 2011.

 

Then you guys all say I nuts...not possible. I say just remember my posting and we see what happen come early 2012.

 

Now you all copy and paste such news from everywhere. Then all the property experts start giving interview like as if they predicted long ago.

 

Please remember I am the guy who said it first.

 

 

i still think you are nuts ...i don't see any correction so far?

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