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mr funny
27-08-09, 22:14
http://www.businesstimes.com.sg/sub/suite/story/0,4574,347720,00.html?

Published August 27, 2009

2 GCBs at Queen Astrid Park to be auctioned

They are to be sold together as the land is yet to be divided into 2 titles

By UMA SHANKARI


(SINGAPORE) Two good class bungalows (GCBs) at Queen Astrid Park will be auctioned together by TM Asia Life Singapore as part of its plan to dispose of non-core assets.

'We are seeking offers in excess of $36 million, which works out to $890 per sq ft of the land area,' said Irinn Lee, auctioneer and director at Credo Real Estate, which will conduct the auction.

'Going by recent sales of GCBs and the condition of the houses, which overlook lower-lying bungalows, we believe they may even be knocked down at auction well above $36 million.'

The bungalows - numbers 29 and 29A Queen Astrid Park - sit on a sprawling 40,453 sq ft site.

They are for sale to one buyer as the land is yet to be sub-divided into two titles.

The bungalows were built around 1999 and each has a built-up area of about 8,500 sq ft. The auction will take place on Sept 24.

Ms Lee said that the values of GCBs in Queen Astrid Park have held up well, even during down markets.

In June last year, a 10-year-old house at No 1 Queen Astrid Gardens, on a 15,680 sq ft site, was sold for $20 million or $1,276 psf.

And in November last year, an old bungalow at No 25 Queen Astrid Park, on 38,549 sq ft of land, was sold for $31.8 million or $825 psf.

Sales of GCBs have picked up over the past few months as high-net-worth individuals stepped up purchases.

The action started in April when $56 million of GCBs were transacted. It gathered steam in May and June, when $188 million of deals were done each month.

Then in July, more than 20 GCBs changed hands for more than $300 million.

In contrast, GCB sales totalled only $27.5 million in the first quarter of this year.

GCBs are the premier form of housing in Singapore.

They are confined to 39 designated areas and there is an estimated total stock of about 2,500 units only.

Localite
29-08-09, 21:41
I wonder what is the profile of gcb owners. I wonder if salaried people can ever buy one.

Top salary earners, say 1 mil / year and minus 20% tax and 30% for expenses, then you save 500k. Needs 25 years to buy a 12.5 mil gcb. So you need to be 50 years old to be able to buy one.

And the assumption of making a 1 mil/yr from 25 years of age is ridiculous.

I cannot imagine who can really afford this and buy at a reasonable age to be able to enjoy it. Unless you are a business man or some film star.

Think about it, even ministers cannot afford to buy this....unless they bought many years ago at much lower prices.

Any thoughts from anyone?

xebay11
29-08-09, 23:10
I wonder what is the profile of gcb owners. I wonder if salaried people can ever buy one.

Top salary earners, say 1 mil / year and minus 20% tax and 30% for expenses, then you save 500k. Needs 25 years to buy a 12.5 mil gcb. So you need to be 50 years old to be able to buy one.

And the assumption of making a 1 mil/yr from 25 years of age is ridiculous.

I cannot imagine who can really afford this and buy at a reasonable age to be able to enjoy it. Unless you are a business man or some film star.

Think about it, even ministers cannot afford to buy this....unless they bought many years ago at much lower prices.

Any thoughts from anyone?

Mostly old money, my uncle bought a house in Queen Astrid Park in 1990 for only $2.4m, 12000 sf land.

BTW Ministers don't pay tax and have no / little monthly expenses as everything is paid for by the state, so easily can buy.

Douk
29-08-09, 23:57
Mostly old money, my uncle bought a house in Queen Astrid Park in 1990 for only $2.4m, 12000 sf land.

BTW Ministers don't pay tax and have no / little monthly expenses as everything is paid for by the state, so easily can buy.

Any they are salaried ppl :D

Localite
30-08-09, 11:18
Is there any chance a $10 mil bungalow property today can become $50 mil in 15 years time? I find this hard to fathom.

xebay11
30-08-09, 12:01
Is there any chance a $10 mil bungalow property today can become $50 mil in 15 years time? I find this hard to fathom.

Yes why not? They are truly limited and you don't think Ministers salaries from $1m now will become $5m in 15 years time? So they can easily afford property 5 times the current price.

focus
30-08-09, 18:49
I think your assumption of the rich need some tweaking..
$1million a year is ok only.. maybe is approaching the rich. My stock portfolio also can get that amount a year..and i dont consider myself anywhere near the rich

I believe those GCB buyers are those earning $10-20millino a year type... like Capland CEO or some foreign MNC CEOs in singapore.. Also got some are just playing share market like Oi Hong Leong.

Localite
30-08-09, 19:21
I just did a quick search of top earners and there's a straits times article some time back which states the range of top 8 persons in each profession (for purpose of ministerial pay benchmarking):

Lawyer - $1 million to $6 million
Accountant - $1 million to $6 million
Banker - $800k to $6 million
MNC - $300k to $4 million
Local Manufacturer - $250k to $3 million
Engineer -$200k to $800k

So IMHO 10-20 mil is way out of range. There'll be just a handfull of people earning that, plus of course if you include businessmen.

In any case, I am think that if there are 2,500 GCBs and they are worth 20 mil each, probably they are bought with old money at much much lower prices. The same persons who bought them could not afford it today based on their earnings.

Also there is short supply of these houses, and it is the pride of the owners. GCB owners will probably never want to sell it.

xebay11
30-08-09, 22:54
I just did a quick search of top earners and there's a straits times article some time back which states the range of top 8 persons in each profession (for purpose of ministerial pay benchmarking):

Lawyer - $1 million to $6 million
Accountant - $1 million to $6 million
Banker - $800k to $6 million
MNC - $300k to $4 million
Local Manufacturer - $250k to $3 million
Engineer -$200k to $800k

So IMHO 10-20 mil is way out of range. There'll be just a handfull of people earning that, plus of course if you include businessmen.

In any case, I am think that if there are 2,500 GCBs and they are worth 20 mil each, probably they are bought with old money at much much lower prices. The same persons who bought them could not afford it today based on their earnings.

Also there is short supply of these houses, and it is the pride of the owners. GCB owners will probably never want to sell it.

Engineer $200 to $800K?

Douk
30-08-09, 23:14
Engineer $200 to $800K?
these are the senior management of engineering company. Not those "engineers" that you are thinking.. :D

Localite
31-08-09, 12:39
these are the senior management of engineering company. Not those "engineers" that you are thinking.. :D

Yes, and also these are the top earners. Could be some speciality engineers. The one who signs his blood on the stability of the IR building is an engineer and he would be no junior guy.

focus
31-08-09, 20:35
these are the senior management of engineering company. Not those "engineers" that you are thinking.. :D

Think they are called Principal Engineer