Blame it on my inexperience or something, but i really do not understand how singapore property buyers think and derive what is fair pricing - so guys, please feel free to educate or correct my thinking - i wanna learn! The following diatribe is mainly for own-stay buyers, not investment buyers (who will wanna invest in the suburbs, i really don't know)
Let's take the following BT report as a backgrounder (
http://luxuryasiahome.wordpress.com/...-units-in-feb/)
Suburban condos are selling like hotcakes at the $600psf psychological level. This is 10% off its peak in 2007. But new developments in Simei etc etc will similarly be priced as such.
Let's take the post SARs 2005 market pricing, which is already very generous. Condos in the suburbs were going for about $350psf. In comparison, BTO flats were going for $200psf. Today they are $300psf
This means the following:
- suburban condo buyers are paying a 75% premium over 2005 prices
- suburban HDB buyers are paying a 50% premium over 2005 prices
- this is the same story and percentages for D15 'hot' areas as well
Core central region like orchard/balmoral are now 50% down its highs and 5-15% over 2005 levels. technically, one can buy a 1000sq ft older apartment at the same price quantum of a 1300sq ft suburban condo, but without the waste space planter, bay window, PES, bomb shelter tricks new developers use.
Thus my question.
Why dey, why?