hi gfoo, can u kindly enlighten me some examples of 1000sq ft in Core central region at the same price quantum of a 1300sq ft suburban condo....?Originally Posted by gfoo
(trying to learn here)
Newbie
hi gfoo, can u kindly enlighten me some examples of 1000sq ft in Core central region at the same price quantum of a 1300sq ft suburban condo....?
(trying to learn here
Junior
a 1300 sq ft suburban at $600psf costs $850k
a more than 5 yr old less than 15 yr old condo at balmoral is going for 1000sqft at $870k
some forummers know about it after they did the legwork the last time i posted about this weeks back - they have PM me
Newbie
Exactly , a lot of agents just bullshitting us .. I have received a call today , they say give us a cheque at 900psf , that funds is trying to collect a 100 cheques for a hundred units .. so they hold my cheque for 3 month and let me know on the outcome in 3 month .. If they manage to get 100 cheques then tghe deal go through .. if not the deal falls out .. they claim they already have 20 cheques .. What a crap !!! Basically I give them a cheque andin 3 month time when the market goes further down and there would be cheaper deals I can not buy as I already commited ... If the market say ( Unlikely 100% ) goes up .. they might say sorry it could not work out ...
I wonder where they can get 100 idiots like this to give out cheques just to be held by the balls for 3 month for nothing ????
The other agent called me saying if I get him 950psf cheque he will close for me today .. It is not time yet to strike !!! This crisis gonna be very very bad , and the prices will go way, way , down, down ...
Junior
lol i concur.. got the notification from the agent that he received a reply from the director of ferrell that the sale of 80 units is untrue.. its seems to be another stunt by these people. Well wait till TOP and the desperation will start to strike...
Newbie
In the meantime the serious sellers of RG please send me a private msg. I am a genuine buyer and if the price reasonable I will buy quick with cheque today . So you can save agent's commission !!
DN
I think the psychology of property ownership is at times irrationale and at times, rational investment theories and behaviour may not apply - particularly those for ownership. I would like to present my thoughts by first outlining what my world view of the psyche property ownership, and then go on further to elaborate on how this may impact certain situation or phenomenon which we have observe, and lastly some last words on what my personal view is on your statistics.
From a social point of view, property ownership (in many societies, particularly asian culture) has always been a symbol of status, achievement and also self appraisal. To some, property ownership is not about the economics or estate planning for their family - its about status and pride. Given it is often difficult to qualify and quantify social values and status ascribed to property ownership, some invest/buy into property not for its economics but more for self realisation and personal gratification of self-worth. Concept of home ownership does not limit to cases where such person(s) purchase for home stay. Home ownership is also desired by landlords want-to-be, as landlords, as we have long understood and studied the ascribed distinct status of noble classes, typically land owners.
In such a case, it can then be observed or argued that not everyone makes a purchase based on sound economics or even an astute view of the future growth. When the psychology of home ownership takes over the rational mind (i.e. assessing property purchase by its economic merits), it may bore down to affordability rather value.
Certain developers have taken advantage of this one possible (I use the term and notion of possibility because it remains as a postulate in my own view) psyche and started developing very small units, but at psf prices which some might argue from the merit point of view, hardly reasonable (say, 1000psf? for a so-so location and layout). Notwithstanding any of the above, such projects typically sell out quite well. Reasons could potentially be
1. while psf prices are high, quantum is actually small (coz units are very small), thus still less than the SGD1mio mark, which is very affordable by most singaporeans standards. Notwithstanding the project may not have the merits and location to warrant the, 1000psf pricing, demands remains strong for such products, because it allows certain class and group of people to access to private home ownership.
2. Persons(s) who want-to-be landlords, for the social reasons above, jumps on such opportunity to own a (small) unit for reasonably affordable <1mio pricing level. Many of these look to rent out their apartments so that they can achieve the "landlord" dream of perceived steady income associated with real property asset class (when deployed as a fixed income instrument).
Basically, we have people who wants to be home owners. Certain developers work on these market by making the apartments small, but at a psf level perhaps on the high end (for such certain project of that kind of merit). By making it accessible to the masses, with such price levels, the units have to be small and quality of living comfortable by the buyers will have to be compromised. Most of the buyers are focused on affordability rather value for money.
MY view is that this is in some way applicable for the sub-urban condos like you mentioned. My view is that, at those pricing at those locations, it may not be good value for money given the merits of those location are not fantastic. This said, as these apartments are within the affordable range, - such person(s) whom are interested to move into private property either as a dwelling place or to satisfy their landlord dream takes the plunge. This is something they can afford, and thus the purchase. Not everyone may be making rational assessment on the best deployment of their capital asset for the optimal investment if it bores down to be an affordability issue. Certain group of people may, for reason of the idealogy of property ownership can be more binary or bipolar than we think - that is, can they afford it or not (notwithstanding it may not be the investment). The moment they can afford it, they buy it.
Let's bring our thoughts back to what happened in the sub-prime crisis. Home ownership was the American dream, and in part spurred on the practice of sub-prime lending. Sub-prime lending allows larger group of people with perhaps less credit worthiness to access credit lines which would otherwise not be possible or afforded to them by main stream housing financing firms. The sub-prime lending business made housing affordable, even though, customers of these financing may have to pay a huge interest margin (i.,e. not the best investment approach or best financing package available). Most of them finds the idea of home ownership too attractive to resist, and went ahead to get such sub-prime financing packages when they really should not as they will hardly be able to sustain these high financing charges.
Is it affordable by the specific persons for such properties ? Yes.
Is it the best price they should be able to get from the market - Maybe not.
Why people still buy it ? My world view of this matter, in simple lay man terms - the psychology and ascribed social status accorded or perceived by society does play a part. Not everyone makes a rational investment decision.
My simple thoughts.
Newbie
Fantastic writeup by DW.
Newbie
Eg. Initially my offer price is $800K. After knowing the news, I decided that the market should fall further. So when the agent called to firm the deal, I told her that the price is no longer valid 2 hrs late and before knowing retrenchment is going on.sorry, i'm a bit slow, how can the citibank retrenchment save you at least $30K???
Since I like the unit so much, I offer again at $770K ($18K above the launch price) and closed the deal.
Junior
OIC. thanks for the explaination.congrates to your great deal
Newbie
I am fond of Irrawady road... the phoenix park, what is that for?
of course, the price is still high my pocket not deep enough...
also thinking waterfront wave and livia, but 99 yrs...
Newbie
same here, but general comments is too near hospital leh.
u got go see the i-residences ?
Newbie
I saw it... the showroom is good...same here
u got go see the i-residences ?
yeap.. close to hospital... that is why can have unblock view..
Newbie
anyone knows how much the maintenance fee is at Rivergate? does it include parking?
Newbie
RG owners collected keys yesterday. Just went to check out one 3 bedroom today. Heard from agent maintenance for 3br is $500+ a mth.
DN
I found this on the website - two articles. One marks the entry of Ferrell Asset Management (owned by Lippo) into property market with purchase of 100 units, 182mio in one single project (what happened to risk management and portfolio diversification?).
Another article sets out Lippo investment strategy in its purchase of 100 units of Rivergate properties.
I was advised by certain agents that the fund will never sell their units for price of less than 1250psf. If they do start renting out their units, they would potentially be stuck with their 182million investment for 2 years, for a yield of (assuming to be extremely optimistic) about 5-7% if they are very lucky. My personal view is that these hedge funds will it hard accept/tolerate the kind of yields from rental. The hedge funds will not survive with such yields. They will then face a even higher risk - redemption.
The alternative is for them to sell out now to cut loss - but it will require them a one-time write down on their assets and proceed forward - probably easier for them to do and mashed it all with the current crisis. If they take the rental route, the yield is going to continue to drag their funds' performance into the next 1-2 years and beyond.
What are your views??
Hedge fund gets into property development
Gabriel Chen
526 words
16 January 2008
Straits Times
English
(c) 2008 Singapore Press Holdings Limited
HEDGE funds do not usually get into property development, but a home-grown firm is venturing into the real estate game despite signs the roaring high-end market is slowing.
Ferrell Asset Management will develop Ferrell Residence, a project consisting of luxury flats and penthouses on a 31,371 sq ft site opposite Anglo-Chinese School (Barker Road), next to City Tower.
The freehold estate in Bukit Timah will have about 30 units worth at least $2,300 per sq ft.
Ms Jeanna Chan, executive director of Ferrell Asset Management, which manages more than US$700 million (S$1 billion) worth of assets, said the project would be launched around the middle of the year.
It signals a major shift for Ferrell. It has been a big investor in existing properties and counts real estate players such as Indonesia's Lippo Group as investors, but developing has not been in its game plan.
Ms Chan, however, sees it as a logical move.
'Development is a natural and strategic extension of our experience in managing properties,' she explained. 'I feel this is an opportunistic move in light of our outlook for local and regional properties.'
Ferrell's property portfolio includes The Trillium, 100 condominium units at RiverGate and 52 per cent of strata units in 79 Anson.
Ferrell is one of the few funds that have spent big money on single residential projects.
One play involved outlaying more than $182 million to buy units at RiverGate three years ago.
While non-property firms have ventured into real estate development - publisher Eastern Holdings is one - it is unusual for hedge funds.
Most funds typically invest in properties directly or via other property funds or team up with developers to take stakes in projects.
'When we have a property boom, it is not surprising that we have more players going into property development than the traditional developers,' said Daiwa Institute of Research analyst David Lum.
While industry watchers do not doubt Ferrell's ability to profit by buying and selling properties, they say developing is a different ball game altogether.
'You have to market the building. You need coordinators with real estate experience to manage the building. It's a case of specialising in what you do best,' Knight Frank director of research and consultancy Nicholas Mak said.
'Ferrell has always been deemed to be different compared to our peers in this market. Our principals are business-oriented in outlook other than being hedge fund managers,' Ms Chan said.
Ferrell's move may encourage other funds with the financial muscle to develop their own properties.
With assets so pricey, spotting an undervalued real estate deal becomes more difficult, so hedge funds would rather develop their own to sell.
'Now that interest rates have gone down, liquidity will be improved, and that will be an excellent time for the likes of private equity firms and funds to come back again,' said Jones Lang LaSalle Asia Pacific head of investments Lui Seng Fatt.
With interest rates being driven down further, sources of funding are becoming more attractive for hedge funds, he added.
Lippo eyes S'pore buyers for condo projects
Fiona Chan
672 words
18 September 2006
Straits Times
English
(c) 2006 Singapore Press Holdings Limited
AT A time when many developers are relying on growing foreign demand to boost their home sales, Indonesia's Lippo Group is instead targeting local buyers for its residential projects here.
Despite pricing its Newton One development at a slight premium over similar offerings by its rivals, the property group has been pleasantly surprised to find that two-thirds of buyers are Singaporeans.
This seems to go against the accepted wisdom that pricier homes cater more to foreigners than locals.
Of three recently-launched condominiums in the Newton area, Lippo's Newton One - its first residential development in Singapore - has the highest price per sq ft (psf).
Apartments in the 91-unit project went for an average of $1,250 psf, or about $1.5 million for a 1,200 sq ft apartment.
This compares to average prices of about $1,220 psf for City Developments' nearby Residences @ Evelyn and less than $1,000 psf for Park Infinia by Keppel Land at Wee Nam Road.
Lippo has unloaded almost all the units in its freehold condominium since sales started in June, with just two units left as of last Friday, the group said.
'The first few days after we launched Newton One, all our eight five-bedroom units were snapped up, and mostly by locals,' Lippo deputy chairman Stephen Riady told The Straits Times.
'To be frank, I am also a bit surprised,' he said in an interview.
'But from this experience I learnt that if you price between $1,200 psf and $1,500 psf or even up to $1,600 psf with the right location and good design, you can target not only foreigners but also some wealthier locals.'
Consequently, the developer is now aiming to get more Singapore home buyers even for some of its upmarket projects, as a customer base that is mostly local tends to be less volatile, said Mr Riady.
'When the market is very, very good, you can sell 90 per cent of your project to foreigners, but when the market is weak, foreigners may not want to come in,' he explained.
'So you want to have balance. You don't just want foreign buyers, you also want local demand, which is more stable.
'We like targeting this range, about $1,300 psf to $1,600 psf, where we can cater to both foreigners and Singaporeans.'
In line with this strategy, Lippo will launch its next development - a 270-unit freehold condominium on the Kim Seng Road site that it bought from OCBC Bank in April - at average prices of between $1,500 psf and $1,600 psf.
The project, to be launched next February or March, will have about 90 units each of two- and three-bedroom apartments at 1,300 sq ft and 1,900 sq ft respectively. There will also be 60 four-bedroom units of 2,000 sq ft and 30 five-bedroom, 2,500 sq ft units, Lippo said.
Lippo also has a block of 100 units in CapitaLand's RiverGate condominium that it bought last year. It plans to start selling the units either by the end of the year or early next year at average prices of between $1,600 psf and $1,650 psf, for a healthy profit.
Also in the pipeline is Lippo's joint 99-year leasehold project with CapitaLand in Alexandra Road that will be launched by year-end.
Targeting a more stable base
LIPPO is now aiming to get more Singapore home buyers even for some of its upmarket projects, as a customer base that is mostly local tends to be less volatile, says Mr Riady.
'When the market is very, very good, you can sell 90 per cent of your project to foreigners, but when the market is weak, foreigners may not want to come in,' he explains.
'So you want to have balance. You don't just want foreign buyers, you also want local demand, which is more stable.'
Newbie
One thing for sure , you can never trust real estate agents . they are dirty up to their ears, all they say are bullshit and all you have to do is to listen their crap and nod like an idiot and then make your own decision. Usually , exactly opposite from what they say .. I also was told they would never sell below 1250 .. what crap it is .. just wait few more weeks and see what will happen .. After some transactions at 1,100 in URA who would buy 1200 in fallen market ?? Cosmopolitan also touching 1,100 where lesser units and not so crowded .. it will go close to 800 just wait !! Too many units there and too many distressed punters ..
Senior
Even though I am bargain hunting, I disagree that prices are going to slide steeply and quickly after TOP. We have agents who say the hedge fund won't sell below 1250psf and are branded liars. But as my earlier post had mentioned, those that spread rumours and said Ferrell was in financial difficulties and would panic sell at 950psf and talked down all the way to say 700psf were also liars. If we can have people snatching up units which cost more than $1.1m for 2 bedroom units at Mercury, I don't see why we won't have people buying at $1.1m for 2 bedders at Rivergate. So prices could still stay around $1100psf for awhile more. Cosmopolitan would have its own supporters who would appreciate it and likewise for Rivergate.
Cosmopolitan:
Pros:
1) Smaller development so more exclusive, 228 apartments on 113,000 sq ft of land.
2) 900+m to Orchard.
Cons:
1) Located at a noisy cross junction.
2) Small pool.
3) Basic condo facilities only.
4) 1 of the bedrooms (be it 2, 3 or 4 bedrooms) is significantly smaller than the rest.
Rivergate:
Pros:
1) Located along the Singapore river.
2) Large pool.
3) Complete condo facilities and more.
4) Generous sized bedrooms and other usable space as well.
5) 900+m from Somerset.
Cons:
1) 545 units on 323,653 sq ft of land.
Simple maths will tell you that while there are more units at Rivergate, Cosmopolitan is the one that is more densely populated.
The cheapest unit sub sold at Cosmopolitan recently is a 2 bedder for $1.5m. It is 1141sq ft, is bigger than any of Rivergate's 2 bedders in absolute size but has a smaller bedroom. All of The Cosmopolitan's 2 bedders face the under construction The Trillium. Why would Rivergate's 2 bedrooms which face the river be worth less than $1.1m at this point?
So far only 1 unit is done at 1100psf and the next lowest psf is 1391psf.
Are there really so many distressed owners? According to Realis, more than 350 (including Ferrell's) of the 542 units sold are bought at 1050 to 1300+psf during the 1st 2 phases in 05 and 06 when speculation was not so hot yet. During the third phase, more people bought at 1600 to 1800psf but in all, there are less than 200 units which were bought at 1400 to 1800psf and these are the people who could be distressed. Even then, I wonder if they will sell at 1100psf.
I think we will still need to wait awhile before we can buy at 800psf, for now, I think can only look out for stray panic sellers selling at around 1000 to 1100psf. If you are comfortable with that price, buy, if not, then wait for 800psf some time down the road.
Senior
Ferrell may traditionally be a hedge fund but having set up a property fund for its property investments, it would probably have an investment mandate which is similar to ARA, which runs a fund which invested in Grange Infinite. This kind of fund is aware that real estate can be illiquid at times and unlike hedge funds which invest in the stock market, do not face immediate redemption kind of pressures. 182m in Rivergate is small if u compare with their development projects like The Trillium and Ferrell Residences. For cashflow reasons, it could be possible that Ferrell could sell at cost of around 1000psf but probably not too far below that unless they are really in financial distress. The rental yield is probably closer to 4 to 5% if they hold on but potentially that might be acceptable in light of the global circumstances.
Newbie
No way you can achieve 4-5% rental yeild at this market even if your cost is 1,000 psf .. for 2 bedder it would be max. 4k per month mid floor .. so it is 1,070m with stamp duty+ need to spend some money on the drapes and at least some interior and appliances + maintenance + property tax + agent commission .. so it is 3% at the most .. and after 540 units flood the market , there will be a major correction downwards in rentals ..
DN
Spoke with an agent today. Understand that #11-04 was sold for 1050psf very recently. Checked against the caveats - it appears #11-04 was originally purchased in the range of 1500psf. Based on the caveat records, no further subsale was done on that unit.
If what the agent said is indeed true, and not withstanding, only about 10% of RG viewable units is currently available in the market (I further understood that only about 40-50 units have collected key to date, as the key collection is done in phases) - looks like it might be quite interesting going forward.
Newbie
Wow, I can not believe people are still so adventurous buying at 1,050 for a low floor unit .. I wonder who are those buyers , can not be locals right ?
So many units still yet to come to the market this year .. better just wait when all the cash dries up ..
DN
Hi J-Dog,
Being an interested buyer in RG, I obviously and certainly wouild like to agree with number of cash rich individuals, whom are interested in properties by and large, who would always enter the market when there is a reasonable fall in the trading price for RG units. For obvious reasons, I certainly wished there are lesser of such intermediate buyers, where by their entry is likely to cause a somewhat "temporary" (if I may assume it to be temporary, as the case may be) price support level, before it continues to fall. In cases, where there are sufficient buyers, prices will stablise and not continue to fall anymore. In essence and short, equilibrium of demand and supply.
I appreciate there has been views that the price will fall to as low as 850psf in due course, and perhaps in the not so distant future - I would love that to happen since I do confess I am interested in RG as well, but as I relish on that thought, I have questions on these "intermediate" buyers coming into the market providing temporary support as it may occur. Perhaps a more succinct reflection and my query in a separate post, and I take the liberty to reproduce it as belows.
Any thoughts and views on (1) your views on the number of these intermediate buyers whom would come into the market and prevent the market from falling to sub-1000 psf levels, (2) how many of these intermediate buyers are there. If there are only say 50 of them, I guess it is not a problem, as 50 units clearly not going to be the marginal clearing price for RG (given it has 545 units in all).
I think my question essentially is also asking for peoples view on what might the eventual equilibrium price for RG units, but in this instance, I am hoping for a substantiated or articulated view in a deeper dimension. I believe everyone probably thought about it before, just that most do not articulate that.
Look forward to hear from you all.... ...
"
Nice one. I am always interested from people, on their views of trading supports for property markets. Technically speaking, property is not exactly a free and efficient market. This said, what is your view, the theory that when prices fall to a certain level, there will always be a surge of willing buyers coming in the market to pick up these units, such the price fall is always somehow controlled and restricted.
Of course, the free falling situation will occur when no one is buying. As we are all aware, the market is essentially made by the marginal sellers and buyers. Since you only need one marginal buyer to transact to set the clearing price, so I guess from your comment, I assuming you are saying the bulk of the marginal buyers in the market by Q3 will be around the range of 850psf?
But, before the RG's market clear to the level of 850psf, all the buyers of 1100psf, 1000psf, 950psf..... till 860psf must first be exhausted before prices can reach 850psf. My query is, what is everyone's view on how many of these marginal buyers the RG market has to clear, before the price can reach 850psf ?
I think my question delves a little more than just price levels, but I am just wondering how many more units has to "go" before we can hit the 850psf. I am keen to get RG at a price above 850psf but I just want to hear some consensus on the same, just to get a rough feel or idea.
Any ideas ??"
Junior
For these so called intermediate buyers, I would guess they are probably pertaining to those homestayers by and large rather than investors.
Since investors are more price sensitive and homestayers would probably buy what they like if prices are somewhat within their budget and would rather not wait for further drop which could be months especially if they are looking for immediate stay.
As for investors, I would not say most are targeting at 850 or 900 psf, I figured that there are still quite a number of investors and/or buyers willing to pay at $1k psf.
I have also spoken to a few agents on RG and from what I heard the 3bedders rental are now fetching at 4.8k which is horrendously low which I am not surprised in this market condition and worse to come once more units collect the keys. As such if buying for investment, it would probably make sense to hold and wait for further drop.
To sum up, I conclude most intermediate buyers are likely to be homebuyers and as to the extent how many of such pple would really depend on the economy.. job security, pay cuts etc.. As for the prices to drop to <$1kpsf would also be determined by the rental yield and demand; from the current situation it does not seem gd if a 3bedder fetch only $4.8k - something worth noting if owners are not able to get rental or unable to pay for monthly loans
Newbie
If we compare to near by projects say Cosmopolitan , 3-4 weeks before TOP the the cheapest price you could buy was 1500psf while all were trying to sell 1600-1700 .. Then at TOP when 10% of the owners got the keys it went to 1400-1600 and after most of the owners got the keys it plummeted to 1150-1300 . Now it stabilised at around 1150-1200. and Cosmo is only around 200 units project not 550 like RG .. As for myself I like Cosmo more as it looks very "grand" and it feels cosy and not that crowded withgood reception area and excellent gym. With RG when you are in swimming pool you are exposed and like a sitting duck being watched right in the middle and all the 3 towers residents are looking at you.. I do not like this. Also, when the next upswing in the market turn up smaller projects wil fly to the sky more quicker with rental and sales while crowded like RG will be dragged behind . One more concern is look out of the window on the huge plot of land where "Zouk" is and neigbouring car park. I bet they will knock the Zouk down within a year or two and start massive construction site in there to build some skyscrapers right next door to RG . They always do it
I have a friend who bought a "[email protected]" at premium price just to realise next month that they are building a new project right next to him , blocking all his windows with nice view .. How mean it is.. To summurise to me it is ok project, nothing fancy but in this environment I do not think it worth moe then 1000psf for high floor premium units . If I was a buyer I would rather buy something else at this price..
DN
[quote=J-Dog]If we compare to near by projects say Cosmopolitan , 3-4 weeks before TOP the the cheapest price you could buy was 1500psf while all were trying to sell 1600-1700 .. Then at TOP when 10% of the owners got the keys it went to 1400-1600 and after most of the owners got the keys it plummeted to 1150-1300 . Now it stabilised at around 1150-1200.[quote]
Hi J-Dog,
Thanks for your input. On a similar note, I wonder if we can also have some views on the above. I was under the impression, once owners start taking keys, their "cost" is actually higher:-
1. They would have started paying mortgage, which means their holding cost increases to the extent of the interest component in the mortgage payment, particularly in the earlier years, interest component is way larger than principal repayment;
2. With a loan, they would also be liable to breakage fees (imposed on the loa) if they sell within the lock-in period, if any.
3. They have had to start paying maintenance fees during these months before they managed to sell. I think this is really peanuts on the grand scale of things.
The above are some top-of-mind items, whcih I can think of. I am sure there are more "additional cost impacts" for owners whom decided to proceed with a loan.
I appreciate the price drop in Cosmo is a fact (as have been observed and verified in URA data), but just not able to reconcile why prices continue to drop notwithstanding, these owners actually have suffered an increased cost (pursuant to taking up a loan). I am sure the owners would have already anticipated this price drop. Should they not have been better off walking away, at TOP, if that was an option (assuming they would have to take a 20% loss on their equity entirely. This is assumed, without the benefit on how much these original owners paid for Cosmo in their original purchase).
any ideas ?
Newbie
Recent caveat lodged for Cosmopolitan had a unit that sold for $1150 psf. Anyone thinks that Cosmopolitan will fall to $1000 psf?
I am hopeful as tribeca's prices are coming down and Rivergate's influx of 300+ units (assuming 200+ for own stay) for resale and rental may cause a further drop in prices at the River Valley area. I am buying for own stay and looking for a 2 bedder. I wonder how long I have to wait before buyers' and sellers' ecpectations meet. I offered $1.1 mil for a 1065 sf unit at Watermark but sellers want $1100 psf. My bank valued that unit to be $1.1 mil only; last month a similar unit 1055 sf was valued at $1.15 mil. Seems to me bank valuation for River Valley area is coming down.
Senior
it seems like there is really a wide range of rentals that a 3 bedder can fetch depending on the view/facing and storey. My agent friend showed me a cheque for 6.5k for RG, partially furnished, for a 3 bedder high floor unit which he closed. In contrast, he also closed a 3 bedder at 4.8k for watermark. I believe a "normal" 3 bedder will probably command 5k+ in rental on average but I guess pple still do pay if they are able to get something which they feel is special to them.
Newbie
Except for the bigger quantum involved, feel that RG is one notch up due to the big land size vis a vis smallish Watermark n Cosmo has no tennis court. If i want to buy a Condo, it must have full facilities. Else with the same quantum might as well buy FH landed
Newbie
Lots of expats will relocate during July and August, at the end of a school year. I would assume more people will leave Singapore than come in. So I presume we could see another significant drop of rent of upmarket family condo´s by September. When more people failed to secure rent from expats coming to Singapore, or those relocating within Singapore.
Offcourse there will be people who´s rental contract just ended or will end the next 1-2 months. So they cannot wait for a further drop in rent, they have to take what is available.
DN
Some interesting experience / SMS I received lately.
1. I received a SMS update on RG today. Agent posted a number of (as update) sale transactions done 1200psf and 1350psf, as well as some rentals which was closed at 6.5K (3BR) and 5.8K (2BR). I am aware of some other transactions which was done at 1050psf and 1080psf and asked the agent if he knows of these units done at these lower prices, guess what was her response ? Ans: Those are odd ones, my clients need not know about these prices and thus did not include in her mass SMS update!!!
2. I received a SMS from another agent stating transaction price for stack 9 is now shooting through the roof as demand is overwhelming. I clarified on the price and how bad is the extent-> was replied a unit was done at 1350psf (same as the one above). I also understand there is only one unit that has achieved this 1350psf. Quite naturally, I asked could it be just only one unit and not a market/development wide phenonmenon.... he then went on to say how much demand there has been and how the economy will be turning around in 3 months time. I must say, I almost fainted when I heard the economy part.
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