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

[Khng8]

In summary -

Don’t buy at a high because very risky. But if you need to buy, can buy (got $ & satisfy TDSR), then buy as Singapore property still a good asset.

[therock]

Well said

If you pay a very high price for some LH place in a poor location, beware..

Rentals may not cover your investment

[Mercs]

stamp duty huat ah ... close to $5B ...

wansui wansui wanwan sui

 

release the KRAKEN ... no 6.9 no talk!

Thank you for contribution to nation building?

 

Ageing population ... so not a matter of 'if' ... just 'when' ;)

[Mercs]

Paiseh for going OT. May I ask about those tobacco tax, petrol tax.. these kind.. goes to which bucket? GST?

Here you go bro

 

https://www.iras.gov.sg/IRASHome/About-Us/Taxes-in-Singapore/The-Singapore-Tax-System/

Goods & Services Tax

GST is a tax on consumption. The tax is paid when money is spent on goods or services, including imports.

 

https://www.customs.gov.sg/businesses/valuation-duties-taxes--fees/duties-and-dutiable-goods

There are 4 categories of dutiable goods:

 

Intoxicating liquors

Tobacco products

Motor vehicles

Petroleum products and biodiesel blends

[Mercs]

house getting smaller lor .....

Evolving with the times ... and not just mass market, high end luxury too

 

https://www.straitstimes.com/business/property/luxe-property-developer-going-big-with-smaller-units

Luxe property developer going big with smaller units

Sept 27, 2018

 

https://www.businesstimes.com.sg/real-estate/space-was-luxury-then-small-is-trend-now-sc-global-changes-tack

Space was luxury then, small is trend now

Sept 26, 2018

[Mercs]

Mayfair Gardens $1,900 psf ... The Jovell $1,250-$1,300 psf ...huat ah!

 

https://www.edgeprop.sg/property-news/mayfair-gardens-sees-81-units-sold-jovell-40-units-sold-close-balloting

Mayfair Gardens sees 81 units sold; The Jovell, 40 units sold at close of balloting

Sept 29, 2018

 

215-unit Mayfair Gardens - At the close of balloting, the sales tally at Mayfair Gardens was 81 units.

Over the past fortnight in the lead up to the launch of Mayfair Gardens, about 200 cheques were collected by marketing agents as expressions of interest at Mayfair Gardens, hence, units sold reflect a 40% conversion rate.

Interest was seen across all unit types, and sales include three of the six penthouses in the development, according to sources. The biggest penthouse was sold at $3.38 million. Average price of units sold was about $1,900 psf.

 

428-unit The Jovell- As at 7.30 pm on Sept 29, about 40 units were sold. Average price achieved is said to be around $1,250-$1,300 psf.

In the lead-up to the launch of The Jovell, an estimated 100 cheques were collected as expressions of interest. Based on the 40 units sold, it reflects a conversion rate of 40%.

[therock]

I hope Mayfair has topped up the lease..

[Showster]

I hope Mayfair has topped up the lease..

Should have as the average psf is 1900, some 100psf+ above the breakeven.

Well said

If you pay a very high price for some LH place in a poor location, beware..

Rentals may not cover your investment

Rentals will always cover investment over 99 years lease and beyond. But oftentimes rentals do not cover mortgage.

 

For a short lease property (say 30-59 years left), rentals will cover mortgage, but is that what investors should aim for?

[Kopites]

https://sg.finance.yahoo.com/amphtml/news/under-hammer-semi-detached-house-020000875.html

 

this one no taker? freehold. $1345psf.

Edited October 1, 2018 by Kopites

[Throttle2]

Well said

If you pay a very high price for some LH place in a poor location, beware..

Rentals may not cover your investment

Corrections.

It should be:

Rental WILL NOT cover.

 

 

Muayhahahahahhaha

[Banz86]

Corrections.

It should be:

Rental WILL NOT cover.

 

 

Muayhahahahahhaha

 

Hahaha totally agree..

 

With the falling rental yield, all the new homes will definitely have covering issues.

[Showster]

Hahaha totally agree..

 

With the falling rental yield, all the new homes will definitely have covering issues.

Rental has never really fully covered mortgage for most of our history, based on 80% financing.

 

Maybe only during 2007-2013, rental outran mortgages.

 

One way to force it to cover is just to pay up more such as 30% or 40% downpayment.

[Invigorated]

Hahaha totally agree..

 

With the falling rental yield, all the new homes will definitely have covering issues.

how certain are you that all these new homes are being rented out and not owner occupied?

 

if all of them have covering issues, how did they pass tdsr?

[therock]

how certain are you that all these new homes are being rented out and not owner occupied?

 

if all of them have covering issues, how did they pass tdsr?

I suspect many started out trying to get rental yield..

I wonder if there are any statistics on the success of getting their rental..

Of course, you could say, if they drop their asking price, anything can be rented out..

[therock]

https://www.straitstimes.com/business/property/private-home-prices-slow-sharply-to-05-rise-in-q3-after-cooling-measures-ura-flash

 

Slowed but not really ice cold..

Heading towards 3000 psf is not something to be laughed at..

 

 

SINGAPORE - Private home prices in Singapore barely managed to hold on to gains for the third quarter as the latest round of property cooling measures implemented on July 6 took their toll, flash estimates from the Urban Redevelopment Authority (URA) on Monday (Oct 1) showed.

Prices of private residential properties inched up 0.5 per cent in the July to September period from the previous three months - to 149.7 points on the private residential property price index - a sharp slowdown from the 3.4 per cent rise in the second quarter and a 3.9 per cent increase in the first quarter.

For the first nine months of this year, private home prices are up by 7.9 per cent, going by URA's latest private residential property price index. Year on year, they have risen by 8.8 per cent, slightly slower than the 9 per cent year-on-year increase in the second quarter.

In the third quarter, prices of non-landed homes rose just 0.2 per cent compared to their 3.2 per cent gain in the previous quarter, while landed properties saw a 1.7 per cent rise, down from the 4.1 per cent hike in the second quarter.

Mr Desmond Sim, head of research for Singapore at CBRE, said it can be seen that measures to curtail the exuberance of the market have managed to do so.

"While the pace of growth has slowed down significantly... to 0.5 per cent based on estimates for third quarter 2018, there is expectation of continued price growth to reflect higher land costs in the next few quarters," he added.

 

 

PropNex Realty chief executive Ismail Gafoor said: “Prices generally weakened due to sensitive pricing offered at new launches and existing developments, to the tune of 5 per cent. We expect the year to end with overall price growth of 8 to 9 per cent for 2018.”

 

[therock]

https://www.straitstimes.com/singapore/ivory-heights-fails-in-bid-to-go-en-bloc

 

A little cooler again..

 

 

Ivory Heights, a 654-unit privatised HUDC estate in Jurong East, has failed to secure the requisite 80 per cent approval rate by yesterday's deadline, making it the first mega site to fail to get the mandate to launch a public tender, analysts say.

They pointed to factors such as the July 6 cooling measures as well as the postponement of the Kuala Lumpur-Singapore High Speed Rail (HSR) project, which had been touted as a unique selling point.

Collective sale committee chair Vincent Ng cited resistance from some residents even after the initial reserve price of $1.34 billion had been raised twice to $1.68 billion. If successful, each owner would have received $2.5 million to $2.8 million, up from $2 million to $2.3 million.

"We were at 74 per cent for the last few months. More than 480 units had signed. We just needed another 40-plus units. But the people who refused to sign kept asking for more, and market conditions have changed," said Mr Ng, 69.

"We have to leave it to the residents whether they want to restart. Our committee has done its part, and since we were unable to achieve 80 per cent, it will be dissolved," he said.

Built on 825,502 sq ft of land and with 68 years left on its lease, Ivory Heights offers unblocked views of Jurong Lake, the Chinese Garden and the Japanese Garden. According to the URA Master Plan 2014, the site is zoned for residential use with a gross plot ratio of 1.6.

 

 

Analysts were not surprised at Ivory Heights' steep asking price, given its large land area and location near the Jurong East and Chinese Garden MRT stations and the proposed HSR terminus.

 

[Theoldjaffa]

https://www.straitstimes.com/singapore/ivory-heights-fails-in-bid-to-go-en-bloc

 

A little cooler again..

Greed knows no bounds. Haiz

[Banz86]

how certain are you that all these new homes are being rented out and not owner occupied?

 

if all of them have covering issues, how did they pass tdsr?

 

A few of my friends and myself have tried to look for tenants and it proved to be really hard unless you lower rental (which is what we did)

 

I'm mainly mentioning the rental yield that we're aiming to get rather than the TDSR.

 

It's just be painful for us as we will need to pay for the property as well as our current home.