Serious Marine Parade HDB Flat With 51-Year Lease Sold For S$1.01 M, COV nearly $100k!! Got 3 Interested Buyers! HDB Flats Really Appreciate Forever!

[JohnTan]

As it turns out, even our humble HDBs are capable of boasting million-dollar views. Literally.

This month, a Marine Parade flat changed hands for more than S$1 million.

The five-room unit lets its inhabitants enjoy an unblocked panoramic view of East Coast Park from all its windows.

Marine Parade HDB flat fetches more than S$1 million
On Tuesday (5 Jul), The Straits Times (ST) reported that a 126 sq m flat at Block 28 Marine Crescent became the Marine Parade estate’s first million-dollar HDB resale transaction.

The five-room unit, which is located on the 24th floor, was sold for S$1,010,888.

This is despite it having just 51 years and nine months left on its 99-year lease.

The flat offers an unobstructed sweeping view of East Coast Park and the sea from all its windows, even the utility room.

Couple sells Marine Parade HDB flat after 11 years
According to ST, the sellers are a Singaporean couple with three children aged six to 13. They bought the place for S$870,000 around 11 years ago and were the second owners.

They shared that they would only let go of the flat for offers that reached more than S$1 million.

PropNex property agents Colin Wong and Brian Ying, who closed the deal together, said the view was what drew buyers to the flat. It also allowed them to close the deal within a week even with such a lease.

Mr Wong told ST that they listed the flat at S$999,000 “with the intention of negotiating upwards”. He said they found an ideal buyer within one week at the first viewing.

He added that there were three different groups of buyers who were willing to offer more than S$1 million for the unit.

One of the sellers, Mrs Koh, told ST that they had “absolute faith” in the unit. They knew they would get a good price because of the view, size, and proximity to Tao Nan School, which is a five-minute walk away.

After letting go of the unit, Mrs Koh and her family will move in with her elderly parents.

Singaporean buyer does not mind short lease
ST reports that the Singaporean couple who bought the Marine Parade flat plans to live out their retirement there and does not mind the ageing lease.

After four to five rounds of negotiation, they decided on the final price of S$1,010,888.

As the resale flat was sold above its actual valuation, the buyers had to pay the difference in cash, which is known as cash over valuation (COV).

In this case, the new owners paid a COV that was slightly less than S$100,000.

Mr Ying said that many of the interested buyers were older folks looking to switch from private properties to a unique HDB that would be their last home.

He believed that this explains why the age of the flat was not a very big factor.

Mr Wong told AsiaOne that only two groups of potential buyers managed to view the flat before the sellers issued an option to the buyers.

In this case, the new owners paid a COV that was slightly less than S$100,000.

Mr Ying said that many of the interested buyers were older folks looking to switch from private properties to a unique HDB that would be their last home.

He believed that this explains why the age of the flat was not a very big factor.

Mr Wong told AsiaOne that only two groups of potential buyers managed to view the flat before the sellers issued an option to the buyers.

https://mustsharenews.com/marine-parade-1-million/

 

[Cottonmouth]

The buyers understand the lease concept?
It's like marrying a 50 year old LCB with no much mileage left and you threw in a 100 table dinner.

 

[JohnTan]

The buyers understand the lease concept?
It's like marrying a 50 year old LCB with no much mileage left and you threw in a 100 table dinner.

They probably understand it better than you. That's why they are willing to pay $1 million + $100k cash for the HDB unit.

 

[bushtucker]

Retirees don't care about lease concept. They just use their new found en bloc money to buy overpriced HDB with short lease then live there until death.

 

[Cottonmouth]

They probably understand it better than you. That's why they are willing to pay $1 million + $100k cash for the HDB unit.

They will understand it best when it reaches 98 years and 11 months with a notice that they will be evicted.

 

[borom]

Easy come, easy go , and instead of using the extra cash from buying a cheaper flat to enjoy life and go travelling ect2, they just want to potter around the neigbourhood .
Of course some choose to politicise it and paint it as a PAP achievement

 

[eatshitndie]

couple may be acting as mules with tiong money to avoid paying foreign stamp duty of 30%. a lot of that happening in sg.

 

[hbk75]

likely the buyers are those that sold private properties and earned money so can dump into 1 million hdb. when interest rates goes up private properties sales will not be so rosy liao. still wanna earn and buy 1 million hdb?

 

[Willamshakespear]

Those who can afford million dollars home are not stupid. They do not get to earn such big sums by being stupid. Each move had already been calculated, if they are indeed the elderly retirees in the 60s whom are buying such homes. Let's do the sums:-

Average lifespan in Spore is 83 yrs. Buyer is 60 yrs old. Less the 51 yr lease balance = 51yrs lease balance - (83yrs lifespan - 60yrs old current age of buyer ) = 28yrs left of lease balance which the home will be passed down to his heirs.

Should his heirs already own private properties or HDB, they will either have to sell that home, OR if they can get HDB's approval to sublet or RENT out whole unit on 'compassionate grounds', at $4,000/mth =$48,000/yr or $1.34Million by 28th yrs. As rentals will continue to rise in land scarce port city Singapore, the rent of the unit will rise & ultimately, it will be MORE than $1.34Million even after paying property tax.

Thus, the new buyers would not had loss anything, & would have much to gain, for their stay in a beautiful property of their choice in their sunset years, & enrich their heirs when they passed on.

(conservative estimated $4000 rent price based upon a HDB unit 5rm flat in blk 661 Yishun Ave 4, available for rent from 31 Aug at $4,800/mth)

 

[zhihau]

(conservative estimated $4000 rent price based upon a HDB unit 5rm flat in blk 661 Yishun Ave 4, available for rent from 31 Aug at $4,800/mth)

Altogether now!!! HUAT AH!!!

 

[Boliao]

Those who can afford million dollars home are not stupid. They do not get to earn such big sums by being stupid. Each move had already been calculated, if they are indeed the elderly retirees in the 60s whom are buying such homes. Let's do the sums:-

.....

Thus, the new buyers would not had loss anything, & would have much to gain, for their stay in a beautiful property of their choice in their sunset years, & enrich their heirs when they passed on.

75% loan with 28 tenure at 2% p.a. = $250,000 upfront with a monthly payment of $2,916 versus a monthly rent of $2,100 (hyperlink)
The buyer is paying $9,600 more with a opportunity cost of $5,000 p.a for a total lost of $408,000 for the next 28 years; not counting miscellaneous costs, tax, rising interest rates, property price fluctuation etc.

After 28 years, there will be only 23 years on lease which means they will not be able to sell/ transfer their lease.

Buying a property now when property prices are at an all time high, with rising interest rate and economic uncertainty for the next few years. I can assure you either the buyers are stupid and not financially trained or there is something else we don't see here (i.e. Chinese PR running away from China with their ill gotten cash).

 

[mahjongking]

They probably understand it better than you. That's why they are willing to pay $1 million + $100k cash for the HDB unit.

you change occupation to property agent?.........

 

[Willamshakespear]

75% loan with 28 tenure at 2% p.a. = $250,000 upfront with a monthly payment of $2,916 versus a monthly rent of $2,100 (hyperlink)
The buyer is paying $9,600 more with a opportunity cost of $5,000 p.a for a total lost of $408,000 for the next 28 years; not counting miscellaneous costs, tax, rising interest rates, property price fluctuation etc.

After 28 years, there will be only 23 years on lease which means they will not be able to sell/ transfer their lease.

Buying a property now when property prices are at an all time high, with rising interest rate and economic uncertainty for the next few years. I can assure you either the buyers are stupid and not financially trained or there is something else we don't see here (i.e. Chinese PR running away from China with their ill gotten cash).

I would agree with your financial mathematical workings & it may be correct, & thus would be financial suicide if the buyers are young.

The insignificant nobody me can only base financial sum workings on what had been revealed in the report - that those buyers were retirees, with sadly limited mortality as none lives forever .

And one solid presumption on retirees are that they would have difficulties getting loans ANYWHERE in the world. Thus, the buyers would have to be financially liquid in cash to purchase such homes. If so, they would need no loans, thus no interest payments, as well as the fact that millionaires everywhere HATE borrowing from banks unless they had calculated the leverage that they can obtain in favor of their financial assessments.

 

[Willamshakespear]

 

[zhihau]

And one solid presumption on retirees are that they would have difficulties getting loans ANYWHERE in the world. Thus, the buyers would have to be financially liquid in cash to purchase such homes.

Imagine they had sold their private property for a couple of millions, they are easily enjoying their lives right now. I’m assuming they aren’t funding the downpayment for their children’s properties

 

[eatshitndie]

it would be double jeopardy (and comedy) if so called “retiree” couple who bought the flat were told a few years down the road that the marine parade block would be up for sers en bloc and they must pack up and move to somewhere else without the sea view. worse if they have to cough up a few hundred grands for a new flat. and if offered another 50-year old flat it may be in an undesirable area. at least with older private condos by the sea, there’s profit to be made with an en bloc sale. and buy another private condo by the sea.

 

[sweetiepie]

Those who can afford million dollars home are not stupid. They do not get to earn such big sums by being stupid. Each move had already been calculated, if they are indeed the elderly retirees in the 60s whom are buying such homes. Let's do the sums:-

Average lifespan in Spore is 83 yrs. Buyer is 60 yrs old. Less the 51 yr lease balance = 51yrs lease balance - (83yrs lifespan - 60yrs old current age of buyer ) = 28yrs left of lease balance which the home will be passed down to his heirs.

Should his heirs already own private properties or HDB, they will either have to sell that home, OR if they can get HDB's approval to sublet or RENT out whole unit on 'compassionate grounds', at $4,000/mth =$48,000/yr or $1.34Million by 28th yrs. As rentals will continue to rise in land scarce port city Singapore, the rent of the unit will rise & ultimately, it will be MORE than $1.34Million even after paying property tax.

Thus, the new buyers would not had loss anything, & would have much to gain, for their stay in a beautiful property of their choice in their sunset years, & enrich their heirs when they passed on.

(conservative estimated $4000 rent price based upon a HDB unit 5rm flat in blk 661 Yishun Ave 4, available for rent from 31 Aug at $4,800/mth)

If my uncle is the old fart he rather apply for a 2room senior shitizen flat and keep the money in a fd and pass it on to heirs.

 

[zhihau]

it would be double jeopardy (and comedy) if so called “retiree” couple who bought the flat were told a few years down the road that the marine parade block would be up for sers en bloc and they must pack up and move to somewhere else without the sea view. worse if they have to cough up a few hundred grands for a new flat. and if offered another 50-year old flat it may be in an undesirable area. at least with older private condos by the sea, there’s profit to be made with an en bloc sale. and buy another private condo by the sea.

If you noted the “Long Island”, there wouldn’t be sea view at Marine Parade, merely the new Lagoon View

 

[jw5]

If you noted the “Long Island”, there wouldn’t be sea view at Marine Parade, merely the new Lagoon View

Just drink lots of Long Island Tea instead of coffee and forget everything.

 

[eatshitndie]

If you noted the “Long Island”, there wouldn’t be sea view at Marine Parade, merely the new Lagoon View

and at least 36.9 years of heavy construction activities along the coast ruining any sea view for their so called “retirement”. this retiree story is fishy like a red herring. lol!