Property agents feeling the pinch as market cools

Lordshiva said:

I tend to be quite skeptical at the HDB valuations but if there is no COV then your colleague must be quite hard pressed for money to sell it away....

i suspect that there will be a lot of such sales coming soon when the private condos start to get TOP and no decent rental is available.....usually for those "upgraders" it will be more prudent to let go of the HDB and realise some of the cash from the HDB and put it into reducing the loan loading....

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I assume most Upgraders stayed 5-15 years (Minimum 5 years occupany) in their HDB, so most will still enjoy $100-300K of profits, despite weaker HDB prices. The next one to watch is Duxton, 5-years occupany is reaching soon and current prices (for those approved to sell slightly earlier) are translating to min $300K profit for many of the first batch of buyers.

A quick question. Is Iskandar really worth it? I think per square foot is RM1k+. It is way more expensive than almost anywhere else. I feel that Iskandar just out to carrot SG property investors. I rather buy KL/Selangnor. Better value and better appreciation

Cerebral said:

A quick question. Is Iskandar really worth it? I think per square foot is RM1k+. It is way more expensive than almost anywhere else. I feel that Iskandar just out to carrot SG property investors. I rather buy KL/Selangnor. Better value and better appreciation

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Prices are weaker now. A few pages ago we mentioned that 2 projects got problems. If you wanna buy, buy the completed ones; what you see is what you get. Please bear in mind that resale procedures can take 6-12months to complete + you need state govt's approval to own the condo

Many realized that iskandar developers takes their bloody own sweet time to complete but claims 80% of money from bank loan and can change designs as they wish. So new wave of iskandar buyers only want to consider completed units.

The latest news i heard:
- class-action from iskandar KSL buyers in KL because the designs anyhow changed and swimming pools reduced.
- country garden's piling company slowed down works because $$$ not paid in time.

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We have very good experts with iskandar properties in another section of SBF.

Impact of Singapore's property cooling measures on sales and prices
http://www.straitstimes.com/news/bu...harts-impact-singapores-property-cooling-meas

Runifyouhaveto said:

For HDB 3-room at $350K, it depends on location. 1-3 years ago, those at matured estate + near MRT are going for $450-480K. So if your $350K target fits this picture, it sounds like a fair price but there are other factors involved, eg neighbours, high/low floor. Old 3-room HDB are good because they have about at least 700sqft + maybe a small store/service room extension. By comparison, new 4-room HDBs are also just 700-800 sqft. However, for investment, you cannot rent out the whole unit in the initial years, so the yields are very poor.

RUN understands that freehold condo are not cheap at this moment. Due to the quantum involved, you net rental yields after serving loan interests, depreciations, maint fees, taxes, is less than 2.5%.

Actually bro, this is not a good time to buy property now. If you have waited for several years, why not wait for another 12-18 months before reconsidering.

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Thanks for the advice, Run. I think hard for private to go down:
1. As long as rental can cover interests
2. Those who bought a few before tdsr may be less keen to let go as it gets harder to meet loan eligibility.
3. Lots of cash rich waiting for price drop, so how far can it drop?

Yesterday I saw one 2 bedroom condo asking for 1.1 mil+ because selling with tenancy of 3%+. If the owner has bought cheap, they may rather hold than to sell low one day at 700k+ (assuming a crash of 30%). This condo was 600-700k+ few yrs ago.

Anyway we now keep our options open, get in sg or aust.

SgGoneWrong said:

Thanks for the advice, Run. I think hard for private to go down:
1. As long as rental can cover interests
2. Those who bought a few before tdsr may be less keen to let go as it gets harder to meet loan eligibility.
3. Lots of cash rich waiting for price drop, so how far can it drop?

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1. Im not a property expert, but i can safely say that if you need rental to cover interests or worse, mortgage payments you are asking for trouble. And never assume that there are cash-rich ready buyers to bail you out when you are in trouble. Property is not like stocks when you throw away anytime when you need cash.

Runifyouhaveto said:

Prices are weaker now. A few pages ago we mentioned that 2 projects got problems. If you wanna buy, buy the completed ones; what you see is what you get. Please bear in mind that resale procedures can take 6-12months to complete + you need state govt's approval to own the condo

We have very good experts with iskandar properties in another section of SBF.

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But do you not agree that Iskandar is built to carrot Singaporeans? I don't think there are many malaysians buying into that project.

My thoughts - the current iskandar is only selling hope. If the Johore state government does not buck up and resolve the crime issue, it will never flourish amd prices will remain stagnant

Cerebral said:

But do you not agree that Iskandar is built to carrot Singaporeans? I don't think there are many malaysians buying into that project.

My thoughts - the current iskandar is only selling hope. If the Johore state government does not buck up and resolve the crime issue, it will never flourish amd prices will remain stagnant

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Every generation of Singaporean got hurt by some stupid issues from Malaysia, eg CLOB.
i hope iskandar will not flopped, because many RUN's relatives vested.

Last weekend, one of them told me that the developer put up some listings to offload unsold units at 2013 June resale prices. How we know it's June 2013 prices? Because she was the buyer.

Runifyouhaveto said:

Every generation of Singaporean got hurt by some stupid issues from Malaysia, eg CLOB.
i hope iskandar will not flopped, because many RUN's relatives vested.

Last weekend, one of them told me that the developer put up some listings to offload unsold units at 2013 June resale prices. How we know it's June 2013 prices? Because she was the buyer.

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I am just very skeptical. Johore looks like a kampung and yet it is the the wealthiest. The money did not come from good plan, just a lot of spending from Singaporeans. How would a place like this flourish?

Islandwide prices of small apartments and condo units (up to 506 square feet) eased 0.8 per cent in July, after declining 0.7 per cent in June.

http://www.businesstimes.com.sg/bre...non-landed-private-homes-dip-03-july-20140828

Can not read Chin-nah writing
Then is dey not my problem
Sway kena struck by Lightning
Better you come to this forum

Okay lah I be a bit kind today
Remember to return your tray


To be concise, the demand for real estate comes from:

1) user - first time buyer and upgrader (from small unit to "bigger" one)

2) investor

3) speculator

Healthy property market cannot rely only on one type of demand (new users at starter end of market) like what is happening now in the so-called rebound in Hongkie market. Supply is slow in coming, but is sure to grow because of political pressure.

Okay, I bery lazy, don't want to translate any more. Learn you Chinese characters, especially if you ancestors come to Sinkieland from China. Bye ... ...

近期，各類樓價指數都屢創新高，尤其是中小型樓宇，更是一枝獨秀。在傳媒的積極報道下，市場的情緒的確十分高漲，連加入地產代理行業的人數也見底回升。不過，我個人對前景仍不敢過度樂觀。

原因是辣招的作用依然存在，即使近期市道轉旺，市場的交投量仍無法恢復至正常水平。通常，要樓市進入新一輪的牛市，必須市場上三股力量同時發揮作用。這包括用家的需求，長線投資者的意欲，以及短線投機者的衝動。但現時，額外印花費已令短線炒家卻步；而買家印花費則令到內地買家與本地的機構投資者大幅減少；即使用家，如果是換樓的話，亦一樣要冒繳交雙倍印花費的風險。三股力量中，現在只剩下半股(首次置業的用家)未受影響，怎夠動力把樓市大力推高？

中小型住宅的價格之所以有這麼好的表現，是因為辣招把其他入市的資金都攔住，獨留下這個缺口，才令它的表現尤為突出。即使如是，中小型住宅市場的好景是否可以長期持續亦有待觀察。

自從去年初政府推出雙倍印花稅以來，樓市就交投疏落，只及正常的三、四成。這般淡靜的時間一直維持了一年有多。不少有實際需要的用家，亦在這種形勢下猶豫不決，所以積累了不少購買力。至最近，政府放寬了買樓花換樓的退稅時限之後，這股積累的購買力才被釋放出來。問題是這是一年的積累，不等如經常性地都可以保持，得經過一段較長時間的考驗，我才敢確定它可以有足夠的持續力量。

現實是踏入八月中以來，交投又開始疏落。一方面是因為盤口不足，另一方面亦因為買家對新出現的高價開始有抗拒，樓市將會在高位爭持一個階段，才可以找到新的方向。

這個新方向，取決於三大因素：一是每年新樓的實際落成量，二是經濟能否繼續有增長，三是政治局面能否保持穩定。

從落成量的角度去看，前幾年是嚴重偏低，一年不足一萬個；未來兩年可增至一萬五千個左右，我認為依然不足。我認為要增至每年兩萬個以上，才有平抑樓價的作用。現時，政府雖然沒法一次過去做到這個水平，但增加供應的意向是十分清晰的。香港的土地都在政府手裏，假以時日，政府是有能力克服阻力，增加供應的，這始終符合港人的根本利益。梁振英政府為了爭取民心，將不惜放棄高地價政策。近期發展商在投地時已相對保守，顯示他們相信，未來的供應將會增加。

至於政治與經濟因素，那就更加複雜，非三言兩語可以說清楚，但兩者都存在著不確定因素；此之所以，在現階段，我不敢對樓市過度樂觀。
(轉載自2014年8月19日am730C觀點)

http://hk.centanet.com/home/ColumnArticle.aspx?id=57438

Lights off on Singapore's billionaire row at Sentosa Cove as luxury house prices plunge

http://www.businesstimes.com.sg/bre...ow-sentosa-cove-luxury-house-prices-plunge-20

One trick I've practiced 18 years ago, combined with 2 good friends each come out $10K set up a beauty salon in M'sia and run by our 3 M'sia mistresses, the earning from the salon is more than enough to cover the up-keeping of our girl. Boa 3 years for just 10K very very cheap.

Runifyouhaveto said:

Learn something new from Kaipoh today.

Malaysian girls who are eligible for 90% bank loan, can pm RUN for discreet discussions on downpayment financing :p

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Cerebral said:

I am just very skeptical. Johore looks like a kampung and yet it is the the wealthiest. The money did not come from good plan, just a lot of spending from Singaporeans. How would a place like this flourish?

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Very good observation, JB's money is definitely not from it's own development or good planning.

Singaporeans spending in JB is just a drop in the ocean of JB's new wealth, if you look at the development of JB you would notice that it coincides with the time SG opened it's doors to allow unabated foreigners to work here, the growth of JB is fuelled mainly by Jiu Hu Kias working in SG and bringing the money back to buy all the beautiful homes in the flourishing upmarket Tamans, this is in turn spun off to growth of more upmarket eating and shopping venues.

All the growth created in SG through foreigners is actually siphoned off in billions through remittances to grow other parasitic economies in MY, Philippines, Myanmar, India and so on, SG Govt short sighted to see this.

Cutting luxury home prices can backfire: Wing Tai chairman

http://www.todayonline.com/business...ry-home-prices-can-backfire-wing-tai-chairman

krafty said:

Cutting luxury home prices can backfire: Wing Tai chairman

http://www.todayonline.com/business...ry-home-prices-can-backfire-wing-tai-chairman

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Yes, the TDSR affects the >$3m properties. Many rich people have good monthly income to serve their mortgage obligations but they don't really declare these income = failure to meet TDSR requirements to loan 70-80% for that $3m property.

bro run, i think you are one of the richie rich, if i am not wrong, you talk and very savvy about bonds and private property, how much is your portfolio worth? can let me know...frankly, just curious and how old are you? you shall be my living example in life, i aim to reach your level in 10 years time.:o

Runifyouhaveto said:

Yes, the TDSR affects the >$3m properties. Many rich people have good monthly income to serve their mortgage obligations but they don't really declare these income = failure to meet TDSR requirements to loan 70-80% for that $3m property.

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krafty said:

Lights off on Singapore's billionaire row at Sentosa Cove as luxury house prices plunge

http://www.businesstimes.com.sg/bre...ow-sentosa-cove-luxury-house-prices-plunge-20

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Solid. Its about time for this to happen to these richies to feel some pain.

Runifyouhaveto said:

Yes, the TDSR affects the >$3m properties. Many rich people have good monthly income to serve their mortgage obligations but they don't really declare these income = failure to meet TDSR requirements to loan 70-80% for that $3m property.

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Rich people pay cash, no need to bother with loans or TDSR.

xebay11 said:

Rich people pay cash, no need to bother with loans or TDSR.

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The richer you are, the more loan you will take. It is called leveraging. They will never pay full cash