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

RadX

By RadX,
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Mercs

Mercs

Hypersonic

Finally found footing on stable path.

 

Everybody happy.

Haha, as mentioned prior ... CMs in place, no price bubble, hard for prices to fall.

 

May not move up much ... just slow and steady UP [:p][laugh]:D

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Wind30

Wind30

Turbocharged

 

 

https://sbr.com.sg/residential-property/news/kampong-java-road-residential-site-clinched-41838m

 

wow the bid price is really low... that is bad for the market....

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Showster

Showster

Twincharged
(edited)

https://sbr.com.sg/residential-property/news/kampong-java-road-residential-site-clinched-41838m

 

wow the bid price is really low... that is bad for the market....

Newly approved sites will have bigger internal unit sizes and reduced parking lots etc.

 

It’s a different offering altogether, and psf prices will have to reflect the lowered development potential.

 

Excellent for those who want no frills living, non drivers etc.

 

The overall quantum despite lower psf prices will still be comparable to existing sites with higher psf prices.

Edited by Showster
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Wind30

Wind30

Turbocharged

Newly approved sites will have bigger internal unit sizes and reduced parking lots etc.

 

It’s a different offering altogether, and psf prices will have to reflect the lowered development potential.

 

Excellent for those who want no frills living, non drivers etc.

 

The overall quantum despite lower psf prices will still be comparable to existing sites with higher psf prices.

For the same prices get bigger place... it will make it hard for the older units with higher land cost to compete

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Showster

Showster

Twincharged
(edited)

For the same prices get bigger place... it will make it hard for the older units with higher land cost to compete

Older developments some can park 2 cars per unit with no extra cost.

 

No need to share spaces with public also.

Edited by Showster
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Wind30

Wind30

Turbocharged

Older developments some can park 2 cars per unit with no extra cost.

 

No need to share spaces with public also.

Does car park has any use?

 

The development I bought has two levels of basement carparks and only like 10% filled cuz tenants never drive....

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Showster

Showster

Twincharged
(edited)

Does car park has any use?

 

The development I bought has two levels of basement carparks and only like 10% filled cuz tenants never drive....

If you bought a very old development that is near MRT or where the majority of occupiers are tenants, it is really fine.

 

But in a development of young owner occupiers, car park lots can indeed be a huge issue. Many such families own two cars. 100% lot provision is usually just sufficient, and sometimes Drivers have to park outside building.

 

It may be ok for some but a no no for others, having a direct impact on the value it presents. Parking is not that crucial until you run out of it. Lease length is also not an issue until you run out of it. Really simple and factual.

Edited by Showster
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sginvestor

sginvestor

1st Gear
(edited)

https://sbr.com.sg/residential-property/news/kampong-java-road-residential-site-clinched-41838m

 

wow the bid price is really low... that is bad for the market....

 

 

the freehold site next to it ,which was sold enbloc, changed hands  at $1,626 psf

https://www.straitstimes.com/business/property/makeway-view-sold-for-168m

 

if say, we adjust for the freehold premium (20%), this works out to about $1,350 psf.

[analysts were initially predicting 1,400 - 1,600 psf ]

 

so CEL tendered for the land at ~$1,200 psf, which is about 12.5% cheaper...  

 

My 2 cents worth:

while the land cost is 12.5% cheaper, that doesn't automatically translate to 12.5% reduction in condo prices...

it just means $150psf cheaper, so that means for a 700 sq ft condo, it's $100k cheaper, which is still a significant sum nonetheless

 

but i notice URA says it's not an announcement of tender award

if minimum reserve price is not met, does URA have to grant the tender to CEL?

Edited by sginvestor
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Wind30

Wind30

Turbocharged
(edited)

the freehold site next to it ,which was sold enbloc, changed hands at $1,626 psf

https://www.straitstimes.com/business/property/makeway-view-sold-for-168m

 

if say, we adjust for the freehold premium (20%), this works out to about $1,350 psf.

[analysts were initially predicting 1,400 - 1,600 psf ]

 

so CEL tendered for the land at ~$1,200 psf, which is about 12.5% cheaper...

 

My 2 cents worth:

while the land cost is 12.5% cheaper, that doesn't automatically translate to 12.5% reduction in condo prices...

it just means $150psf cheaper, so that means for a 700 sq ft condo, it's $100k cheaper, which is still a significant sum nonetheless

 

but i notice URA says it's not an announcement of tender award

if minimum reserve price is not met, does URA have to grant the tender to CEL?

I think makeway view is the cheapest of the three plots sold recently. it’s further from mrt and a very small plot... apartment type, no condo facilities. I don’t think u can compare. Dunearn gardens freehold and Chancery court 99 years is probably better comparisons

 

Obviously the develops bid are super low. It shows what the Developers think about price trends in the near future

Edited by Wind30
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Showster

Showster

Twincharged
(edited)

I think makeway view is the cheapest of the three plots sold recently. itâs further from mrt and a very small plot... apartment type, no condo facilities. I donât think u can compare. Dunearn gardens freehold and Chancery court 99 years is probably better comparisons

 

Obviously the develops bid are super low. It shows what the Developers think about price trends in the near future

It’s already in the Chinese news that future trends for private homes in terms of unit offering does not bode well for buyers. Probably, even if cheaper, they might be shunned as they would deviate from current conventions.

 

Fewer carparks. Probably have to pay for actual carpark use.

 

Even smaller / absent internal room structure. From 2 shower and toilets to 1. Not sure whether bomb shelter might be scrapped (probably already is for some), but the kitchens and washing machine facilities might be removed from smaller units altogether and designated as common facilities shared across a few units or the whole development.

 

Scrapping the kitchen / yard and other rooms means developers save as there is no need to provide washing machine and stove facilities.

 

The authorities actually increased communal space provision in the last CM, while decreasing the parking requirements, and restricting balcony space. How do you think developers would respond?

 

Psf trend will definitely drop but there will be a marked product differentiation between the currently approved units and future approved units, just as there is a size differentiation between condos approved and built before 2009 and those between 2009 and 2019.

Edited by Showster
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