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Private Property prices......still up or down? Part II

RadX

By RadX,
in Property Buzz

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Sdf4786k

Sdf4786k

Twincharged

May 2017 to now Oct 2018 still no taker

i would say BTO “completed” flats should open up for all races after 6-months unsold

another 48 units aint gonna create a Chinese enclave

 

for resale ... abit tricky that the owner kay kay cannot sell for 6-months and then sell to Chinese for a higher price [sly] anyway to close this gap?

but why worry, if buyer know this is a open up to other races resale can hantam another 3-5% discount?

besides, this is minority cases la. with today flood of information, buyer can make informed decision!

 

IF only they handle the quota for Banking employee staff ratio as well as they handle the HDB racial quota, many singaporean will not have the problem of finding a perm role or unemployment.

 

Maybe its time to do a reshuffle ...

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Wind30

Wind30

Turbocharged

Ocbc just upped their 2 year fixed housing loan rate from 2.18 to 2.38.

 

After so many years, I am curious what's the impact of rising interest rates.

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EWander

EWander

6th Gear

Ocbc just upped their 2 year fixed housing loan rate from 2.18 to 2.38.

 

After so many years, I am curious what's the impact of rising interest rates.

I jus refinance with DBS, 2 years fixed rate at 1.98%. Good deal for those who doesn't wanna be expose to floating rates next 2 years.

If interest rates don't run more than 1% from here for a normal loan quantum the difference in installments per month is roughly 10 % more. So still bearable for a normal housing loan.  

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Showster

Showster

Twincharged

Ocbc just upped their 2 year fixed housing loan rate from 2.18 to 2.38.

 

After so many years, I am curious what's the impact of rising interest rates.

Not much impact because TDSR clearance which already includes buffer amount (haircut, 60% threshold etc) set at 3.5% interest rate

 

The question is how much more interests and taxes those who wait actually need to pay when they finally realise and understand the situation and loan to buy.

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Invigorated

Invigorated

Supercharged

Ocbc just upped their 2 year fixed housing loan rate from 2.18 to 2.38.

 

After so many years, I am curious what's the impact of rising interest rates.

Just to add that OCBC usually has an option to switch once for free if there’s a lock in period.

 

One can also choose to switch to the mortgage board rate at 2%p.a. if there isn’t a lock in, its advantageous to switch to posb fixed deposit home loan rate at 1.75%.

 

Plus, Isn’t it better for one to have bought a few quarters back when interest rates were 1.2%+- and home prices were lower then? If one keeps waiting, are they not subjecting themselves to higher rates, even if prices remain stagnant?

 

Plus the tightened LTV limit, so you are suggesting your advice for those to hold many quarters ago due to potential interest rate increases has planned out well?

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therock

therock

Supersonic

Not everyone caught the lower rates..

Just like cars, some buy at the right price, others vacillating will miss the boat and they just have to make the best of things.

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Invigorated

Invigorated

Supercharged

I jus refinance with DBS, 2 years fixed rate at 1.98%. Good deal for those who doesn't wanna be expose to floating rates next 2 years.

If interest rates don't run more than 1% from here for a normal loan quantum the difference in installments per month is roughly 10 % more. So still bearable for a normal housing loan.

No property owner will like higher loan charges due to interest rates.

 

However, a positive take from this is our deposits in the banks will now attract higher interest rates than before.

 

Higher rates also signal that the economy is healthy. In such an instance, should prices be heading south?

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Mercs

Mercs

Hypersonic

https://www.businesstimes.com.sg/real-estate/gcb-deals-hit-s220m-in-third-quarter

GCB deals hit S$220m in third quarter

Oct 1, 2018

 

TRANSACTION volumes of bungalows in Good Class Bungalow (GCB) Areas have held up in the third quarter against the latest property cooling measures which took effect on July 6.

 

There were 11 transactions in GCB Areas, totalling S$220 million in Q3 2018 - up from the eight deals amounting to S$169.1 million in Q2 and also ahead of the seven deals worth S$123.1 million in Q3 of last year.

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Mercs

Mercs

Hypersonic

https://www.99.co/blog/singapore/executive-condominiums-ec-launches-2019-2020/

Executive condominiums: Are upcoming ECs in 2019/2020 worth the wait?

Oct 3, 2018

 

#1: Sumang Walk EC

Town: Punggol

Estimated launch date: Q2 2019

Site area: 27,056.4 sq m

Maximum dwelling units: 820

Winning bid: $509.37 million by CDL Constellation Pte. Ltd. and TID Residential Pte. Ltd

Estimated launch psf price: In the $1,000 psf range

 

#2: Anchorvale Crescent EC

Town: Sengkang

Estimated launch date: Q1 2020

Site area: 17,100 sq m

Maximum dwelling units: 550

Winning bid: $318.89 million by Evia Real Estate (8) and Gamuda (Singapore)

Estimated launch psf price: Likely in the $900 range

 

#3: Canberra Link EC

Town: Sembawang

Estimated launch date: Q1 2020

Site area: 18,040.6 sq m

Maximum dwelling units: 450

Winning bid: $271 million by Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd

Estimated launch psf price: $950 to $1,000

 

#4: Tampines Ave 10 EC

Town: Tampines

Estimated launch date: Q3 2020

Site area: 24,900 sq m

Maximum dwelling units: 695

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Icedbs

Icedbs

Turbocharged
(edited)

Huaters and non huaters, Sept 11 to 18

Just for curiosity, I did a quick analysis on the top 5 losses based on the ones you shown above.

 

The question in my mind is can we see the problem even before the buyers buy those units?  The top 3 losses actually kept their unit for 11 years and still had to go through quite a large loss.  

 

Look at the table below and draw your own conclusion. Look at the premium that they paid when they bought. Avg $psf simply takes all the condos in that district (FH and LH)

 

post-69683-0-47723900-1538684001_thumb.jpg

 

This is just a very surface analysis. If I go into more  numbers, I am  pretty sure the other numbers will flagged out the same level of risk that these buyers are taking. 

 

Now, just for discussion sake, why did the 4th unit (Rhapsody at Mount E) lose money despite a pretty logical buy?

 

With more new launches coming up soon, buyers really need to do their homework and use some data to support their buying decision.

Edited by Icedbs
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therock

therock

Supersonic

https://www.straitstimes.com/business/property/thomson-view-fails-in-fourth-bid-to-sell-en-bloc

 

4th try...

 

 

Thomson View condo has failed in its fourth attempt to launch a collective sale - just the latest in a growing list of projects that have been unable to secure the requisite 80 per cent approval rate to kick-start a sale.

The 255-unit estate in Upper Thomson Road had raised the reserve price three times in the past year to $938 million, but still garnered backing from only 76 per cent of owners.

This resulted in the sale agreement lapsing on Sept 24, said collective sale committee chairman Tan Kin Lian yesterday.

Thomson View comprises 200 apartments, 54 townhouses and one shop unit on a 540,314 sq ft site.

Townhouse owners would have received around $5.5 million, and apartment owners between $2.6 million and $3.7 million, if the sale had gone through, said Mr Tan, a former chief executive of NTUC Income.

Some owners did not seem bothered about potentially missing out on a bumper payout.

 
 

One resident who wanted to be known only as Mrs Lai said that she was not too upset about the failed attempt.

"I supported the en bloc because the price was pretty attractive," noted Mrs Lai, who is in her 40s and married with two children.

"I really love this place. The house is spacious - 2,000 sq ft. It's hard to find a space that big."

The stamp duty payable proved a deterrent for some owners, said Mr Tan, while a number also resisted because they did not agree with the apportionment method.

"Others liked living at Thomson View," he added.

But for Mrs Lai, even though she would have had to pay the sellers' stamp duty because she has lived in the estate for only two years, "the projected gains were more than enough to cover it and pay for a new home".

Mr Tan believes the biggest challenge was that owners who signed the sale agreement would have been liable to contribute towards legal costs if the sale were to be challenged in court again.

Many of them became "wiser" after they were hit by large legal bills incurred in the last attempt to sell en bloc, in 2013, he added.

Back then, a proposed $590 million collective sale was voided after the High Court found that former marketing agent HSR International Realtors had offered incentive payments to four owners to get them to sign the sale agreement.

It was earlier reported that 215 unit owners at Thomson View had agreed to the collective sale in 2013, and their legal costs had been in the six-figure range.

Mr Tan noted yesterday: "Why should legal fees for an unsuccessful sale be borne only by the signing owners?

"That encourages some owners to become free riders, meaning they want others to be signing owners because they don't want to incur legal fees themselves if the sale gets challenged in court again."

 

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