gfoo
22-01-09, 17:46
My interpretation is bad news for own-stay buyers in 07/08, and for landlords
1. Project completion period for properties new and under development can now be extended from 6 years to 7 years. So if property launched 2007, the completion can now be 2015, and TOP can be anytime before that. Will we see a wave of developments still in 'showroom stage' be TOP delayed significantly? I doubt those that are completing in 2009 will be affected as $$ has been spent to pay subcontractors
2. Unsold properties in developments now need not be disposed of within 4 years, and developers can rent them out. This means a whole huge supply of new rental units on top of those already bought and waiting to be rented out. This combined with almost 200k developers leaving for home will mean a massive supply glut of apartments for rent.
My take:
Those who bought in 05/06 and TOPing 2009 are safe - projects will most likely TOP on time as $ has been spent building it.
If you intend to rent out your TOP 2009/2010 unit, you are screwed, as now the developers have up to 4 years to rent out before mandatory disposal. In prev crisis, pple like FEO have lelonged rent prices just to make some $$ on empty units
If you intend to stay in your TOP 2009 unit, nothing changes - the normal deflation and drop in property prices continue.
If you just bought a unit in 2008, piling has not started, showflat still there, and less than 50% sold, you can expect TOP to be delayed further. Legally, it can now be delayed for 6-7 years from launch, as now it benefits the developer to complete later than sooner. If you bought for own stay, sorry you are kinda screwed there. If you bought for investment, this is a lifeline thrown to you.
1. Project completion period for properties new and under development can now be extended from 6 years to 7 years. So if property launched 2007, the completion can now be 2015, and TOP can be anytime before that. Will we see a wave of developments still in 'showroom stage' be TOP delayed significantly? I doubt those that are completing in 2009 will be affected as $$ has been spent to pay subcontractors
2. Unsold properties in developments now need not be disposed of within 4 years, and developers can rent them out. This means a whole huge supply of new rental units on top of those already bought and waiting to be rented out. This combined with almost 200k developers leaving for home will mean a massive supply glut of apartments for rent.
My take:
Those who bought in 05/06 and TOPing 2009 are safe - projects will most likely TOP on time as $ has been spent building it.
If you intend to rent out your TOP 2009/2010 unit, you are screwed, as now the developers have up to 4 years to rent out before mandatory disposal. In prev crisis, pple like FEO have lelonged rent prices just to make some $$ on empty units
If you intend to stay in your TOP 2009 unit, nothing changes - the normal deflation and drop in property prices continue.
If you just bought a unit in 2008, piling has not started, showflat still there, and less than 50% sold, you can expect TOP to be delayed further. Legally, it can now be delayed for 6-7 years from launch, as now it benefits the developer to complete later than sooner. If you bought for own stay, sorry you are kinda screwed there. If you bought for investment, this is a lifeline thrown to you.