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What makes a condo valuable?

Rubberpad

By Rubberpad,
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Rubberpad

Rubberpad

(edited)

I used to think that location and freehold are some of the more impt factors that increase the value of a condo.

 

But now after seeing such high prices for some 99 year old condos in OCR makes me wonder what makes a condo valuable. Furthermore these condos are not exactly very near MRT.

 

Could it be age? New condos always more expensive than older ones (even 2 year old). Like cars?

 

What estates in OCR are expensive? I certainly wouldnt want to stay in areas like Eunos, Geylang or Bedok.

Edited by Rubberpad
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Rubberpad

Rubberpad

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i will think the ability to buy one now and sell tomorrow make it attractive to investor.

 

But what attributes of a condo allows for that?

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Zze121

Zze121

3rd Gear

Service n posh showroom does the tricks.

Developer can afford to fly in buses of foriegners n put up nice showrooms, agent in secondary market don't provide?

 

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W210k

W210k

1st Gear

I used to think that location and freehold are some of the more impt factors that increase the value of a condo.

 

But now after seeing such high prices for some 99 year old condos in OCR makes me wonder what makes a condo valuable. Furthermore these condos are not exactly very near MRT.

 

Could it be age? New condos always more expensive than older ones (even 2 year old). Like cars?

 

What estates in OCR are expensive? I certainly wouldnt want to stay in areas like Eunos, Geylang or Bedok.

Singapore is land-scarce.

Economics 101 on demand and supply will dictate.

- CCR, prime land is more scarce

- FH title is more scarce

- Landed property is more scarce

 

More and more outskirts, OCR, non-prime, 99LH condos being built.

Many can have access and the means to buy them.

 

CCR, prime, FH, landed would thus continue to appreciate in value, as whatever available land left on this tiny island is being utilized to build even more mass market condos and HDB flats ... and as our population continues to grow toward 6.5 million.

With an almost-constant, non-growing supply of such prime landed MUKIMs, the demand for such would relatively be ever increasing - since more and more people would be aspiring to own prime FH land assets that have literally been frozen in time!

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Rubberpad

Rubberpad

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Singapore is land-scarce.

Economics 101 on demand and supply will dictate.

- CCR, prime land is more scarce

- FH title is more scarce

- Landed property is more scarce

 

More and more outskirts, OCR, non-prime, 99LH condos being built.

Many can have access and the means to buy them.

 

CCR, prime, FH, landed would thus continue to appreciate in value, as whatever available land left on this tiny island is being utilized to build even more mass market condos and HDB flats ... and as our population continues to grow toward 6.5 million.

With an almost-constant, non-growing supply of such prime landed MUKIMs, the demand for such would relatively be ever increasing - since more and more people would be aspiring to own prime FH land assets that have literally been frozen in time!

 

i understand but what i dont understand why are new 99LH condos in OCR that are relative near to MRT more expensive than FH condo in equally good location?

 

i can only guess its due to age.

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FastFastCar

FastFastCar

Neutral Newbie

Take Seastrand for example, it is even more expensive than some freehold condos.

dun tok c--k ley, you mean silversea right, seastrand is relatively cheap

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W210k

W210k

1st Gear
(edited)

i understand but what i dont understand why are new 99LH condos in OCR that are relative near to MRT more expensive than FH condo in equally good location?

 

i can only guess its due to age.

My take on this is that the greedy developers can continue to bid very high to amass their land banks and to that end, ask for any crazy price that they must have, to realize a decent ROI.

In the recent Sky Habitat example, they sure can ask for prices even higher than say FH setups in D.11.

If there are no takers, then they are screwed and will have to lower their price.

But it's just too bad that there were indeed buyers who were willing to buy at such market-unrealistic prices.

 

But wait!

Are you sure that they are all bona fide buyers?

Not proxy buyers hired by developer, who will lapse the options on purpose?

The option money is not stamp-dutied.

But the option money retained by the developer could really be theirs, to begin with!

Who knows?

This is a great psychological game to hype up the market.

Better than any media advertisement!

Even got one fella book 2 units, then view the showrooms.

But was it his money? And just look at what it did to the masses deliberating to buy, held back only by the high prices?

In the frenzy, it's a "you hesitate and other people will snatch the unit from you" hysteria was built up.

 

Give this some thought. If I'm a developer desperate to generate demand hype, recycling option money would be the most effective, zero-cost advertisement. Paying proxys to form long queues is pass

Edited by W210k
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Rubberpad

Rubberpad

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My take on this is that the greedy developers can continue to bid very high to amass their land banks and to that end, ask for any crazy price that they must have, to realize a decent ROI.

In the recent Sky Habitat example, they sure can ask for prices even higher than say FH setups in D.11.

If there are no takers, then they are screwed and will have to lower their price.

But it's just too bad that there were indeed buyers who were willing to buy at such market-unrealistic prices.

 

But wait!

Are you sure that they are all bona fide buyers?

Not proxy buyers hired by developer, who will lapse the options on purpose?

The option money is not stamp-dutied.

But the option money retained by the developer is really theirs, to begin with!

This is a great psychological game to hype up the market.

Better than any media advertisement!

Even got one fella book 2 units, then view the showrooms.

Not his money what! But look what it did to the masses deliberating to buy, held back only by the high prices?

In the frenzy, it's a "you hesitate and other people will snatch the unit from you" hysteria was built up.

 

Give this some thought. If I'm a developer desperate to generate demand hype, recycling option money would be the most effective, zero-cost advertisement. Paying proxys to form long queues is pass

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Jamesc

Jamesc

Hypersonic

A high tide raises all boats.

 

When demand outstrips supply

 

all property will go up even 99LH

 

in OCR.

 

:D

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Mustank

Mustank

Hypersonic

My take on this is that the greedy developers can continue to bid very high to amass their land banks and to that end, ask for any crazy price that they must have, to realize a decent ROI.

In the recent Sky Habitat example, they sure can ask for prices even higher than say FH setups in D.11.

If there are no takers, then they are screwed and will have to lower their price.

But it's just too bad that there were indeed buyers who were willing to buy at such market-unrealistic prices.

 

But wait!

Are you sure that they are all bona fide buyers?

Not proxy buyers hired by developer, who will lapse the options on purpose?

The option money is not stamp-dutied.

But the option money retained by the developer could really be theirs, to begin with!

Who knows?

This is a great psychological game to hype up the market.

Better than any media advertisement!

Even got one fella book 2 units, then view the showrooms.

But was it his money? And just look at what it did to the masses deliberating to buy, held back only by the high prices?

In the frenzy, it's a "you hesitate and other people will snatch the unit from you" hysteria was built up.

 

Give this some thought. If I'm a developer desperate to generate demand hype, recycling option money would be the most effective, zero-cost advertisement. Paying proxys to form long queues is pass

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W210k

W210k

1st Gear

but if, in a few months time, we start to see all the caveats lodged, then how do we explain this phenomenon?

 

my guess is that these buyers are real buyers...hence this all puzzles me

When I went to see The Luma at Grange Road, the developer was asking for $3,000psf and claimed that most units sold, left a few only.

I walked away since I did not like the external facade design and $3000psf was IMHO too high for the Grange/Devonshire locale, at that time.

 

Now, about 3 years later, I know better.

They couldn't sell ... only managed 18 units, out of 35 (or wad it 55?).

So my gut feeling was right after all.

 

They actually lied low for a while and are now re-launching ... after 3 fcuking years!!!

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