Given the govt's obsession with urban renewal, I doubt they will let any building go beyond 30-40 years unless there's a strong case for conservation. They can exercise their right to acquire old derelict buildings by compensating the owners market rates even if there are no developers to enbloc it. Just put it back into 'storage' then GLS it again when times are better.
I can't really see a LH condo here in Singapore literally living out it's entire 99 year lease.
树大必有枯枝,人多必有白痴。
树无皮必死无疑,人不要脸天下无敌!
There is at least one 99 LH in River Valley area that's already 30 years old.
Just have to study it's pricing.
Actually have a few if 30 years old.
Park West, West Bay... Several more lah.
Any one that is more than 50 or 60 years old will be more relevant?
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
There are some industrial 30 LH already or near expired, should the action taken to be representative for residential 99 LH?
There are many LH reaching 40-50 yo soon, though most of them resided in prime area so likely will get en bloc one day.
will be interesting to see if same treatment is accorded to both public and private residential when the LH runs out.
It won't be exactly the same treatment. HDB serves public function and while lease may be shortened or space might be more compact, it is a necessary endeavour to undertake.
As for private, the growing costs of running such an old place plus steepening lease depreciation plus the value adjustment of the land by authorities will allow a price gap for developers to come in. One big reason why LHs always get enbloc after a certain number of years.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
That's why I said earlier much also depends on how much master landlord allows to value.
So far LH condo always manage to en bloc before 99 years. Because of realistic view toward lease value. Never heard of HDB lease depleted also.
The only danger group is the 60 year lease like some Geylang landed, and maybe in future Hillford? Because owner valuation is always higher than what Developers are willing to pay.
Only heard of FH condo enbloc fail and fail and fail.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
a gentle warning from minister to old HDB buyer. Do not assume gov have unlimited budget to do charity.
http://www.straitstimes.com/singapor...-lawrence-wong
As promised - no resale value
http://m.imgur.com/AWJqHAI?r
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
How to figure out if an old HDB flat is worth its asking price
Chua Mui Hoong
Opinion Editor
Those looking to buy old resale Housing Board (HDB) flats would have cause for hesitation following comments by National Development Minister Lawrence Wong last month.
Perturbed by reports that Singaporeans were forking out big sums to buy old HDB flats, he said buyers should not assume that all old HDB flats will be eligible for the Selective En bloc Redevelopment Scheme (Sers).
.........................
Mr Wong's warning will put a halt to such expectations. As he pointed out, Sers is a highly selective programme. Only 4 per cent of HDB flats have been identified for Sers since it was launched in 1995.
.........................
Taken together, these mean that it is unrealistic to expect HDB flat prices to go up as they age. HDB flats will become "normal" assets with values that should reflect their balance leases.
Yet flat buyers' behaviour does not seem to reflect what we might expect from rational buyers.
A chart from DREA and HDB, published in The Straits Times on March 29, showed that the prices of low-floor flats in Geylang, Toa Payoh and Queenstown plateaued once the flats hit 30 years of age.
This is unusual, as you would expect prices of older flats to continue to decline, as they creep nearer the end of their 99-year lease.
............
As for buyers shopping for a resale flat now, I have a simple word of advice: Don't be seduced by the spacious layouts and convenient amenities of old resale flats into paying too much for them.
How do you know what is too much? You can try a simple formula. Many property transactions are already priced with a psf measure: price per square foot.
Add another indicator: number of years of lease remaining.
Take the example of a Bukit Timah flat of 1,345 sq ft that sold for $950,000, reported in The Straits Times recently. That is $706 psf.
That flat was built in 1974 on a 99-year lease. It thus has 56 years of lease remaining. The price psf on a per annum of balance lease basis is $12.60.
Is that a good price?
Valuers will say that a lease does not depreciate in a straight line. They are of course right. A property's value also depends on factors such as location and its condition. But the advantage of a simple, crude measure like psf per annum is that it allows for simple comparison.
You can use that measure to compare prices with 99-year condos in the vicinity, or with newer HDB flats. (Property portals like SRX and PropertyGuru can do all house hunters a favour and add this new indicator.)
At High Oak condo nearby, a 1,271 sq ft unit sold in December for $995,000 or $783 psf. With 78 years left, that's $10 psf pa.
Arguably, the condo is a better buy than the HDB flat, at a lower psfpa amount, and for a newer development that comes with facilities.
................
Aging 99-years leasehold properties with lease less than 70 years old........
If you own such properties, or even ever considering to buy such properties, WATCH OUT!
MND Minister Lawrence Wong is giving you warning!
ST Editor Ms Chua Mui Hoong is giving you warning!
What is the real PRICE of an aging 99-years leasehold properties, e.g. a 99-years leasehold private properties with say 70 years of lease left vs a 99-years one vs a freehold one?
Simple, you look at the Price $ PSF p.a. value lor!
E.g. a new 99-years leasehold properties is priced at $1500 psf.
So Price $ psf p.a. = 1500/99 = $15.15.
VS an aging 99-years leasehold properties with 70 years lease left is priced at $1200 psf.
So Price $ psf p.a. = 1200/70 = $17.14.
So, the 70 years leasehold property is more expensive than the 99-years leasehold property!
Now VS a freehold private property is priced at $1800 psf.
So Price $ psf p.a. = 1800/9999999999 = $0.000000001.
Wow! The freehold property is REAL CHEAP!!!!!!!!!!!!!!!!!
Why like that, every time doesn't give the truth about HDB valuation.
Facts and figures will decide up or down.
Bought 5 room HDB in 1995 for 250,000. (SGD 225,600 + 10% levy)
Lease start 1 July 1997.
http://www.propertyguru.com.sg/singa...istings/sale/1
Now selling at SGD 650,000 Valuation Price: S$ 632,000.
Rental at SGD 2800.
http://www.propertyguru.com.sg/singa...istings/rent/1
2017 - 1997 = 20. lease balance 79 years
79 x 12 x 2800=SGD 2,654,400.
Don't know selling at the above price can drop by how much.
Oops, I forget to factor in inflation.
http://www.propertyguru.com.sg/listi...-road-20603216
Selling S$ 650,000
Valuation price S$ 632,000
3 Bedrooms 2 Bathrooms
27 Balam Road, 370027 Geylang Estate
Type HDB Apartment For Sale
Size 1356 sqft
PSF S$ 479.35 psf
https://www.google.co.il/maps/place/...!4d103.8862615
Service by two MRT Line. CC and DT line.
MacPherson MRT Station (CC10/DT26) is an underground Mass Rapid Transit station on the Circle Line and the future Downtown Line
Mattar MRT Station (DT25) is a future underground Mass Rapid Transit station on the Downtown Line
Look down on Landed property everyday.
Last edited by Arcachon; 08-04-17 at 21:45.
Can see the tower on a fine day from the bedroom window.
That is why you don't know how to count...., cannot give the truth about FREEHOLD property valuation...
If you buy a freehold property, say a 3BR in 1995 for $600k, lease = 999999999 years.
Monthly rental = $4500 pm.
Rental income = $4500 x 12 x 999999 years (vs 79 years only!) = MORE THAN $53.99 BILLIONS!
Truth.
I wonder if she had done her research :roll eyes: I'm surprised a PSC Cambridge Govt Scholar would write such a poorly researched article!
Base on the details (1345 sqf, 56 year left), it's Queens Rd Blk 1/2 Old Point Block. Why take High Oak as comparison? At least use D'Leedon.
http://www.propertyguru.com.sg/listi...-farrer-court-
Transacted prices for small 3-bedder are around $1,500 psf or $16 psf/ annum basis according to her crude measure. In this light, there is no argument which is more value for money.
Read my nick three times and you can understand her choice of property examples. The pent up demand situation is beyond imagination.
But dividing by the total number of years still only gives an indication. There are many factors to consider beyond size and lease.
Like TB pointed out, for her method of calculation, an OCR FH MM unit anywhere on the island is worth more (infinity) as a CCR 99LH giant bungalow. That simply cannot hold water. Common sense still has to prevail.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Reporter, I write what I want you to read.
Reader, I read what I want to know.
Don't Know, Don't want to know and refuse to know.
99 years leasehold HDB will be thing of the past soon, still waiting for durian to drop?
Now, the government and MND Minister Lawrence Wong has already said it clearly, please take heed:
Your 99-years leasehold property VALUE will become ZERO at the end of 99-years lease.
Obviously if over more than 99 years, an OCR FH MM unit is still more valuable than a CCR 99-years LH bungalow (which has a value of ZERO at the end of 99 years lease)........
And for people who strongly embraces and advocate 99-years leasehold properties and claiming they have no differences from freehold properties, please note 1 thing: Their purpose is to FLIP their property to you before 20 years lease is over (so that you can and willing to take over their "babies", otherwise where to find buyers?!)
All the above is already COMMON SENSE enough.
If people still cannot come to their senses and acknowledge the above fact, they really is more stupid than a pig!
Read the full news in this link............
People who buy leasehold properties will always have 1 BIG REGRET:
*** Not selling/flipping their leasehold properties when it is still young and can command good prices! ***
Home worries surface as lease expiry looms
Mr Lim Kah Chin and his wife Teo Kim Guat, 66, are among the estimated 30 households - out of 190 private landed homes - still living in Geylang Lorong
Mr Lim now regrets not selling his unit some 10 years ago.
ST PHOTO: LAU FOOK KONG
PUBLISHED 4 HOURS AGO
Ng Jun Sen
From the age of 13, Madam P.C. Koh has lived at her terraced house in Geylang Lorong 3.
Now 70, she is facing the prospect of being homeless in less than three years' time.
That is when the 60-year lease of her property runs out. Come 2020, it will be returned to the state and its value will plummet to zero.
She said in disbelief: "My home is still standing. I don't understand how it can be worth nothing. Will I still have a home to live in?"
The short answer is no. In a statement, the Singapore Land Authority (SLA) reiterates the Government's stance: Its general policy is to recover land upon lease expiry.
The reality of an expiring lease is slowly seeping in for an estimated 30 households - out of 190 private landed homes - still living in the Geylang Lorong 3 estate.
This is especially after National Development Minister Lawrence Wong's recent cautionary note on buying older leasehold properties.
Although directed at owners of Housing Board flats, Mr Wong's comment was a stark reminder that all leasehold properties, whether public or private, will eventually go back to the state upon lease expiry.
..............................
As for Mr Lim, he now regrets not selling his unit around 10 years ago, when a unit was sold for around $200,000. He paid $35,000 for the two-storey terraced house in 1987. "I stayed on as I needed a roof over my head. This place was also where I met my wife, so I couldn't bear to move," he said.
Whatever sentimental reason he had for staying faded with the expiring lease. Neighbours who moved out were replaced by temple operators and foreign worker quarters, and the once-lively neighbourhood has lost its vibe. A rat problem has forced residents to build knee-high partitions at doorways to keep out the pests. "We will be lucky if there is any buyer at all, with only three years of lease remaining," said Mr Lim.
I think this is a wake up call for those who think there is little difference between leasehold and freehold.... there are a few freehold properties in Singapore and many are in the Bukit Timah area..... with tis news I don't tink I would want to sell my freehold condo...and for leasehold condo, if above 10 years I will sell! As for my hdb, as it involves garment policy and future plans, I don't tink I will do anything ...and most likely the next generation will see the money, ...just be happy and don't bother, anyway I didn't pay sky high price for it 😃
If you cleared the loan by 30 years lease, it will be fine with 69 years left. Want to buy good, well maintained LH property in decent location and low price also quite difficult to.
The problem with this landed property with 3 years lease left is, it began with 60 years lease as a replacement for some fire.
There may be some regulations behind enblocing landed property at this location too.
Landed property do not have sinking and maintenance funds and are much harder to gang together for en bloc as well. Maybe the article is about not getting LH landed at all?
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
This article, and the article by Chua Mui Hoong, and the warning from MND Minister Lawrence Wong, are all about 1 thing:
Buying leasehold properties with lease less than 70 years, because you will most lively outlive the lease of your leasehold properties and you will end up "HOMELESS" because the lease of your leasehold properties expired before you die! (and you have no money to buy another one since the one you own expire WORTHLESS!)
My conclusion from all these articles are that:
People who buy leasehold properties will always have 1 BIG REGRET:
*** Not selling/flipping their leasehold properties when it is still young and can command good prices! ***
Not really true. Just ask Pearl Bank Apartment owners, still many possible steps to take. Also can increase density of build up based on revised plot ratios to negotiate.
HDBs and landed have lesser or no recourse for en bloc or SERS as developers have little to gain by selling subsidised housing or 3-4 storey landed for high quantum and lower profits, as compared to other strata models.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.