For property worth 1 million,Originally Posted by Unregistered
How to calculate rental yield? Sorry... me newbie..
to get 5% rental yield, you need to generate at least 50000 per year which is 4500 per month. Don't forget, this is only a gross yield, actual yield is less because you need to pay monthly condos fee, property tax, and some repair work on the property.
To make it worthwhile, one should really be looking at 6% gross yield at least
Many sellers are in a manic state as they thought property prices are going up by the day in the whole of Singapore. Many agents are afraid to offer clients the bottom line picture and accept the assignemnet to sell the property at 20-50% higher than the last official tarnsacted price.
The mass market new launch are also seeing good take up rate as speculative activity is also spreading to mass market, supported by small time speculators and syndicates. This also help to help inflame the sellers psyche to make them asking for more and more. It is a very stressful time for being the agent. I heard of cases even the agents find the buyer for the property, but the owner changed mind and decided not to sell or asking for 10% more. It is really funny, isn't it?
Is it just me or has any of you noticed also: These past couple of weeks there seems to be much fewer sell ads especially for D9-10, D11-21 in the Classifieds, even on Saturdays. In February there were tons of ads making the classifieds quite thick.
Seems like people are holding and not selling, these past couple of weeks.
All en-bloc-ed. Nothing to sell. Hee hee!
It is because agents finally had enough of the nonsenses from owners of the properties (believe it or not, all districts) for keep asking for higher and higher prices every week even there is no offer comes close to the asking price
Luckily, I made enough money last year and the first two months of this year and decide to take a long vacation in Europe. What is the point of wasting energy in the market until some senses come back to the sellers.
Newbie
Yes - i have been looking at properties in the west and adverts there have also dwindled. In particular, I have been following Madiera, a condo in Bt Gombak...a particualr agent had advertised a bunch of units there for the past few months but because the asking rate is so high, the take up rate has been very poor. The advert had been running for a few months and recently I stopped seeing the advert. I do feel for agents who are being put in a difficult position by fickle minded sellers. But I dont symphatize with those whom I call and they answer back "If you dont buy now, you will regret as prices are going higher".
I suspect we have reached a point where sellers are not budging and still ask for the sky while buyers are not willing to be taken for a ride and keeping to the sidelines also. I think the caveats coming out for April will show very little activity taking place esp after the sharp price hike in that month. Anybody know what prices jumped in April? I suspect the yearly bonus attributed to it but just a guess.
Just to share, someone apparently bought a Northvale unit around $480k even without viewing the unit!!!
Singaporeans are brained wash by the media, this year can go up by 20%, next year by 30%. All these are ambiguous statements thru our Media by our polictitions and institutions that gain from it. They are just interested in making the broad public go into a buying frenzy and pick up all the overpriced launches. Because when the broad market picks up, guess you gain the most? We are just individuals. They are Gov, developers, institutions, banks and property transaction companies.Yes - i have been looking at properties in the west and adverts there have also dwindled. In particular, I have been following Madiera, a condo in Bt Gombak...a particualr agent had advertised a bunch of units there for the past few months but because the asking rate is so high, the take up rate has been very poor. The advert had been running for a few months and recently I stopped seeing the advert. I do feel for agents who are being put in a difficult position by fickle minded sellers. But I dont symphatize with those whom I call and they answer back "If you dont buy now, you will regret as prices are going higher".
I suspect we have reached a point where sellers are not budging and still ask for the sky while buyers are not willing to be taken for a ride and keeping to the sidelines also. I think the caveats coming out for April will show very little activity taking place esp after the sharp price hike in that month. Anybody know what prices jumped in April? I suspect the yearly bonus attributed to it but just a guess.
Just to share, someone apparently bought a Northvale unit around $480k even without viewing the unit!!!
Gov gains by releasing land at extremly high prices that were either aquired cheap or even free.
Developers gains by selling new launches at ridiculous prices, plus raise the prices of TOPed projects that still have unsold units.
Instituions gains by buying up prime properties here and justify the purchaces by issuing shares(IPO) or diluting the share value by issuing more. Buy up more and more to push prices up as to wait for the right time for release. The best part is the money they use for these purchases are not even their money, haha, it is the public money again. Property Reits involved.
Banks needless to say. Property market boom = Super business for banks.
Raise interest rate, push out more bank loans....
Property companies will get their cut/commision on every sale. The more the transactions, the more the profit.
These are the people that say the market is booming. sounds like they have alot in stake to be un-bias when reporting news don't you think so?
Your statements are totally invalid.
There is no way Blair can jack up the prices of London properties. Property prices go up due to supply and demand.
Newbie
Re: What makes this property boom different from the past booms?
What has happened is that our Gap in SG is getting bigger and bigger everyday, thus red eyes are everywhere. Filty rich are getting even more filty, Rich are getting richer. I can't really blame some people from venting their frustration here. It is just the way of life not only in SG, but the whole world. It is best that everyone is rich, but life does not work this way. Even the communist system which is suppose to be perfect does not work. Life is unfair, so wake up and stop dreaming. Find money, because money does not find you. There will be endless hype and propaganda, just get used to it.In fact this hype and buzz was already in the works since 2004. It took 2 yrs plus to bring us up to this stage, we should be happy and rejoice, i am sure the spillover will come to all very soon. As it is, sub-prime is going up. Hdb will have its turn very soon. Patience is golden.
"If you look at Forbes' list of the world's richest persons, many of them have their wealth backed by real estate."
- 10 May 2007
I agree with you, it is happening all over the world. The rich get richer, the poor get poorer. Why, cos the rich uses money to make more money, the poor wait for prices to come down, so they wait and wait until they are price out, then they will start complaining. But when prices comes down during a crisis, the poor dare not buy, they will wait again, the rich will buy more cos they have the holding power. When the good times return, the cycle repeat itself. For HBD, it will be very slow except for downtown areas. Why, cos the new ruling effective 1st Jan, requires buyers to get a HBD eligibility letter (stating how much they can loan and the monthly mortgage), anything above loan amount, have to be in cash, therefore limiting what the buyers can afford. Thats is why hdb is building 2 rm flats.What has happened is that our Gap in SG is getting bigger and bigger everyday, thus red eyes are everywhere. Filty rich are getting even more filty, Rich are getting richer. I can't really blame some people from venting their frustration here. It is just the way of life not only in SG, but the whole world. It is best that everyone is rich, but life does not work this way. Even the communist system which is suppose to be perfect does not work. Life is unfair, so wake up and stop dreaming. Find money, because money does not find you. There will be endless hype and propaganda, just get used to it.
I aslo agree with LB Kwek, forbes list of world richest backed by real estate. Look at spore, who are spore richest, they are all in real estate. Real estate will increase over time but purchasing power of money will become smaller over time, due to inflation. 30 years ago, a 3rm hdb is worth $7k, now is worth $150k and above. 30 years ago, we can buy a bowl of noodle for 10 cents, now it cost $3 or more.
1990s property boom was fuel by hong kong hand over to china, those with money came to spore. Aslo stock market was doing quite well. Then came the crash, maybe due to the capital control and finally the asia finanically crisis add more fuel to it. This time round, the IR is fuelling the boom, IR created a lot of buzz around the world, the rich took notice of spore, compare real estate prices around, spore is cheap, so they start buying. Aslo stock market now is at all time high. see the similarities, crash??? maybe some new ?? control implementation or a stock market crash. China stock market is up 166% from one and a half years ago (1500 to 4000)
Dow -126.13
Time for a recession?
BUY BUY BUY!
Re: What makes this property boom different from the past booms?
Sad but true, in fact i see more and more dissatisfied people when they talk about property in singapore. Singaporeans are not trained to be happy when someone they know become richer when they are still stuck in their position. I guess it is the Singapore mentality of singapore NO1. Few people can take it when they are in the bottom or in the middle. We are being taught to strive to be better, to be no1, but when you are having a very hard time even with hardwork and you see certain individuals not working much, yet getting the fruits of their labour, plus getting richer and richer everytime. Deep down in you, you will start to harbour ill feelings and thoughts. The gap is widening like mad and people are getting very pissed.What has happened is that our Gap in SG is getting bigger and bigger everyday, thus red eyes are everywhere. Filty rich are getting even more filty, Rich are getting richer. I can't really blame some people from venting their frustration here. It is just the way of life not only in SG, but the whole world. It is best that everyone is rich, but life does not work this way. Even the communist system which is suppose to be perfect does not work. Life is unfair, so wake up and stop dreaming. Find money, because money does not find you. There will be endless hype and propaganda, just get used to it.
But the most important lesson today is to invest in the private property market now and increase your wealth.
There is only so much the government can help you. The government cannot outrightly tell you to invest.
If you don't, your ranking will drop by 2.2 millions in 5-10 years time when Singapore becomes a top-tier first-world country. For example, if your ranking is 1,000,000th out of 4.3 million now, it will become to 3,200,000th out of 6.5 million in 5-10 years time.
We have to move forward to fend off the competitions from the region. We need these additional 2.2 millions "special" citizens to move ourselves into a different league. Please note that these "special" citizens are not your ordinary citizens in the past.
Re: What makes this property boom different from the past booms?
Yup, we need more indian and bangladashi nationals to come to boost up our job economy by taking the low and mid end jobs, also, tons of new chinese nationals, especially sexy women with fake big breast to populate our
country and giving our man relieve from the pressures of city living, 2.2 million worth.
Hello!
How you know is fake? Real one lah!
You man are all very sick and disgusting. I am a 32 yr old married lady with a child and having to live with a disgusting husband that spends more time at some dirty KTV getting god knows what! I feel shame @ the Gov for not doing anything about it. I see more and more china women everywhere.
When you look @ them, they give off a very disgusting vibe. All they are here for is to spoil our families and take our husbands money and in the process ours too. I personally know 5 other women having this problem too. When is this going to stop? when? Now we need more to come into our shores? What is this country becoming? A very large whore house with 2 casinos plus one more in 10 years time? I looked at the sammyboy.com site and i can literally die. I feel very sick, sad and disgusted by all of you. Singapore truly is on the path to self distruction. So long you sick disgusting people.
Do you know how Japan stock market crash 15 years ago even to this day have not fully recovered (at the peak, NIkkei was trading over 30000!)? Do you remember the financial meltdown in asia in 1997? It got a lot to do with the property markets.
I don't think the Govt can afford to let property rises without check because it will eventually price Sinagpore out of the world market when cost of doing business is running much much higher than other places in asia.
Newbie
Re: What makes this property boom different from the past booms?
Mdm, please restrain yourself from acting like this. I know this is a problem, a serious problem. But this is a condo review area. Pls let the authourities know of your complains. That is where you can get some help.
Newbie
Re: What makes this property boom different from the past booms?
Actually, we are all quite puzzled as to what or who are the new citizens coming in. Wonder if our government chooses? And who comes in and who is disallowed to come in? Come to think of it, many people i have spoken to have no idea also. Hopefully, we have less indians workers and china nationals. Not to be racist, but we really need more quality foreigners i rather be a SPG then allow all and sundry to fill up the 2.2 million. Sorry if i offend anyone by this remark.
Newbie
Re: What makes this property boom different from the past booms?
Actually, i semi agree with you. True that property markets have a lot to do with the recovery of economies but, the ridiculous prices are only in pockets of areas in singapore. Unless HDB becomes overpriced, then i would say, yes the bubble is going to burst. The problem is actually the area in singapore. Cost is only going up in prime areas, there is actually still many areas which have not really gone up that much. You can still find business areas cheap in singapore. Outskirt business areas are still cheap. Condos in westside, changi, north are still relatively affordable. In fact, Orchard still has $3,000 p/mth condos for rent. The bubble is there i agree. But it is still in control. 12 months later i wouldn't know, but now it is definately still ok.
Yiannis G. Mostrous
Editor
Growth Engines
10 May 2007
Singapore is being transformed to one of Asia’s most-important financial centers as well as a desirable place to live and work. This is a rejuvenation process that should take Singapore once again to the next level of economic development.
On the economic side, a property recovery started last year, which will be extremely beneficial to the local economy. Singapore has declared that investors who put SGD5 million (USD3 million) or more into the country's financial instruments can become permanent residents; up to SGD2 million (USD1.2 million) of that amount can be used to buy property.
The decision illustrates Singapore’s efforts to increase its appeal as a desirable destination for entertainment and high living standards, thus attracting the affluent from across Asia (e.g., Japanese) who want a personal getaway.
The property story--an investment theme I identified in my premium service, The Silk Road Investor (www.silkroadinvestor.com) in September 2006--is getting better by the day. Singapore has been on the receiving end of strong foreign direct investment (FDI) dollars, which at USD12.6 billion in the first half of 2006 is almost twice as much as the FDI that came in the mid-1990s and early 2000. The government has initiated several projects that will result in the investment of more than SGD15 billion (USD9.8 billion) in the tourism sector during the next five years.
A lot of this money is finding its way to real estate--residences, hotels, malls and offices. The high-end residential area is particularly hot among foreign investors, as they currently account for 60% of demand.
This comes as no surprise; in fact, this part of the market should do well in the future, too, as Singapore implements its program for attracting foreign talent to its growing money management industry. This is the main reason prime office rents are rising rapidly in Singapore.
The amount of money under management in Singapore has been growing steadily. It’s expected to grow dramatically in the future as Singapore continues to project itself as a viable, responsible alternative to other banking centers. The interesting statistic, though, is that funds sourced from the Middle East and South Asia grew 30% and 56%, respectively, year over year.
Because the government is repositioning Singapore as a “global city” in which to live, work or just have a good time, a lot of rich people are being persuaded by their money managers to buy luxury property in the country. As a result, new luxury buildings are popping up, and the price per square foot has surpassed, in some cases, USD2,000.
In an effort to enhance the country’s appeal to foreigners, Singapore has also awarded a big casino development project, the Marina Bay Integrated Resort, to Las Vegas Sands Corp. The resort will be ready to open in 2009. The structure will feature three 50-story hotel towers bridged by a two-acre Sky Garden that will offer 360-degree views of the city and the sea. The resort will also include an arts and sciences museum; 1 million square feet of integrated waterside promenade and a shopping arcade; a state-of-the art, 1 million-square-foot convention center; two 2,000-seat theaters; a casino; and a 4,000-car garage.
Local observers expect Singapore’s population to reach 6 million to 7 million by 2015, from 4.4 million now. That would imply a yearly growth rate of 3%, a solid growth number and one that the county’s infrastructure can easily handle. Needless to say, demand for housing and new office space will be huge.
Singapore remains one of the relatively defensive markets in Asia, especially its telecom and bank sectors. The market boasts one of the highest dividend yields in the region at 3.6%.
Actually, we are all quite puzzled as to what or who are the new citizens coming in. Wonder if our government chooses? And who comes in and who is disallowed to come in? Come to think of it, many people i have spoken to have no idea also. Hopefully, we have less indians workers and china nationals. Not to be racist, but we really need more quality foreigners i rather be a SPG then allow all and sundry to fill up the 2.2 million. Sorry if i offend anyone by this remark.
Who are these people?
These are the people who put S$5M or more here lah.
Hopefully you are right, seems to many people that things are not going that way.
Should be right lah!
Now getting ready to zoom past the finishing line.
Up up up!
Newbie
Re: What makes this property boom different from the past booms?
The difference is that this time, we have many projects to back up the property boom. 2 IRs, singapore flyer, sports hub, floating platform, revamping of the whole marina area to a new financial area, marina gardens and the lastest F1 race. The last few booms are definately different from this 2007 boom. This time, the government will not restrict the boom, all the tell-signs are very obvious. Singapore aims to be as expensive as Hongkong, japan and even london. Too bad i have limited cash, if not i will definately invest in 2 more units.
You mean Govt is willing to gamble away your future when the cost is doing business is so high that only casino can survive here? By then, sure need to open more casinos to cut down the unemployment rate.The difference is that this time, we have many projects to back up the property boom. 2 IRs, singapore flyer, sports hub, floating platform, revamping of the whole marina area to a new financial area, marina gardens and the lastest F1 race. The last few booms are definately different from this 2007 boom. This time, the government will not restrict the boom, all the tell-signs are very obvious. Singapore aims to be as expensive as Hongkong, japan and even london. Too bad i have limited cash, if not i will definately invest in 2 more units.
The recent issue on ministers' pay rise has given the govt some heats and I am not surprised they decided to lie low for a while. Afterall there is reason why they are being pay so much. I am sure they will do what is best and the most important issue for this tiny country certainly is about perserving jobs
The mass condo project in Hong kong can easily enjoying 6-7% rental yield. Even with the recent strong rebound in rental, it doesn't help much because property prices in mass market also going up and the rental yield remains less than 4% for most condo projects. If Govt want to see property price in par wtih HK, then the rental yield will drop to 1-2%. How?The difference is that this time, we have many projects to back up the property boom. 2 IRs, singapore flyer, sports hub, floating platform, revamping of the whole marina area to a new financial area, marina gardens and the lastest F1 race. The last few booms are definately different from this 2007 boom. This time, the government will not restrict the boom, all the tell-signs are very obvious. Singapore aims to be as expensive as Hongkong, japan and even london. Too bad i have limited cash, if not i will definately invest in 2 more units.
Re: What makes this property boom different from the past booms?
Hahaha, rental yield will be 0.5% if this price hike continues. Normal working singaporeans will be so priced out that they can only rent. Singapore and hongkong will be on par for proerty prices. Landlords are the kings, working class are the slaves. Singapore will be North korea cum Macau cum Hongkong .
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