Some flat owners sitting on
a goldmine
Straits Times: Sat, May 26
SOME lucky Housing Board
home owners, whose flats are
entering the resale market
this year, are looking at more
than double the price they
paid for the units.
Property analysts say such
high asset appreciation,
attributable to good timing
and a buoyant resale market,
is one that is unlikely to be
repeated in a long time.
These flat owners, who had
the keys handed to them in
2007, would have fulfilled the
minimum occupancy period
(MOP) of five years this year.
'Back then, HDB prices were
in the doldrums because of
Sars (severe acute respiratory
syndrome) and the Asian
financial crisis,' said PropNex
chief executive Mohamed
Ismail, who linked the windfall
they could enjoy to the surge
in resale flat prices in recent
years.
He noted that the HDB's
resale price index in the first
quarter of this year stood at
191.6. It was 104.9 in the first
quarter of 2007.
In a statement to The Straits
Times, the HDB said these
flats whose MOP could be
fulfilled this year include
those in mature estates such
as Queenstown, Toa Payoh
and Bukit Merah, as well as
non-mature estates such as
Punggol and Sengkang.
Since the MOP begins on the
date the keys are issued, not
all the households, however,
would be eligible for the
resale market this year, it
added.
One owner whose MOP will be
up this year is Mr Johnny Wan,
42, who balloted successfully
and paid $330,000 for his four-
room unit in Block 91, Tanglin
Halt Road, in Queenstown. He
now gets fliers from real
estate agents who promise
him at least $750,000.
'My friends called me crazy
and said I could have landed
myself a better deal
elsewhere, maybe an
executive condominium,'
recalled the shipping firm
manager of his decision to buy
back then.
'But it's all about location to
me, and I'm the one who's
sitting on a tidy profit now,'
said Mr Wan, who may sell his
flat if the right offer comes
along.
It is a few minutes' walk from
Commonwealth MRT station
and is among about 1,000 flats
built as replacement units for
those affected by the
Selective En bloc
Redevelopment Scheme.
Those living farther away, in
non-mature estates, are also
sitting on tidy paper profits.
Mr Roslan Salam, 34, paid $
170,000 for his four-room unit
in Punggol and moved in in
2007. A similar unit in a
nearby block sold for about $
500,000 in March. 'It was a
lucky buy. When we first
checked the area, not much
had been built and it wasn't as
busy. Times have changed,'
said the auxiliary police
officer.
'It's like striking a lottery,'
said SLP International head of
research Nicholas Mak. 'These
buyers came in at the right
time before the property
boom when prices started
inching upwards.'
To satisfy first-timer demand,
the HDB has promised to ramp
up supply, and launch 50,000
flats within two years.
Mr Mak noted that as the
prices of new flats are pegged
to market rates, albeit at a
discount, another chance to
cash out at such a significant
premium is unlikely to happen
any time soon.
In flat sales launched this
year, for instance, the price of
a four-room balance flat in
Queenstown ranged from $
505,000 to $613,000, while a
unit in Punggol cost $257,000
to $333,000.
'The resale price index is
likely to remain stagnant in
the coming year, and any
growth would be very small,'
he added.
Meanwhile, astute real estate
agents are tracking MOP
dates to find out where to
lobby residents to sell. ERA
agent Chris Neo said the
pickings were hottest in
Strathmore Avenue two years
ago and Redhill Road last
year. 'Most flats that have
their MOPs up this year are
likely to make a profit. It's
only a matter of how much.'
[email protected]
STRIKING LOTTERY
It's like striking a lottery...
These buyers came in at the
right time before the property
boom when prices started
inching upwards.
- SLP International head of
research Nicholas Mak
Source: The Straits Times ©
Singapore Press Holdings Ltd.
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Originally Posted by regency321
....up the lorry money also no use...
