To be honest, not so long ago, nobody can imagine paying 1 million for a condo as well, or even more than 1kpsf. It used to be say 400 psf for a 1000 sf property.
The way forward is hard to imagine, but I feel that current buyers are more looking to stay in the property bought than to rent out.
Originally Posted by
thomastansb
I think the most important question you have to ask yourself is - If you put yourself in the shoe of the next buyer, will you buy?
Take for example, WR, 646 sqft transacted > 2.3k psf. A tiny 2 bedders for 1.5M. The next buyer will probably have to buy at 1.7M for you to make some decent profit. That is > 2.6k psf. Ask yourself, will you pay 1.7M and 2600psf for a super tiny suburban 2 bedders? For me, 1.7M can get a decent sized unit at river valley/great world area. Some are FH somemore.
And don't forget your surrounding rental. This kind of tiny 2 bedders, market rate is 2 to 2.3k only. Bear in mind this is a suburban location, almost at the edge of RCR already. Bartley residences which is just round the corner is OCR.
So you have a tiny 2 bedders, renting out for 2.2k, paying 4 to 4.5k of mortgage installment to the bank which adds up to 5k including taxes and maintenance fees. All these while waiting for someone to pay 2600psf for your suburban tiny 2 bedders. I can't imagine this happening to me. lol.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.