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Thread: No property bubble forming, say developers

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    Default No property bubble forming, say developers

    http://www.businesstimes.com.sg/sub/...44033,00.html?

    Published July 31, 2009

    A bubble that's a gleam in specuvestors' eyes

    Mah Bow Tan's caution aimed at averting pain later, property market watchers say

    By EMILYN YAP


    (SINGAPORE) Better to suck out the froth now than to burst the bubble later - that was what market watchers saw as the government's intention in warning against rash property purchases.

    National Development Minister Mah Bow Tan said on Wednesday that there are signs of speculation in the property market, and the government will act if it overheats. He also urged home seekers to buy only within their means.

    On the surface, the message may seem puzzling. By most accounts, speculators from the boom years - those who 'flipped' their freshly bought units in the subsale market for a quick profit - have yet to make a huge comeback. Price increases have surfaced only at some projects, while several others still registered price falls.

    At CapitaLand's results briefing yesterday, group president and CEO Liew Mun Leong also observed that home demand is 'healthy', supported partly by home seekers whose estates were sold en bloc.

    But dig deeper and the cause for concern becomes more apparent. Some industry watchers acknowledge that a group of 'specuvestors' is emerging. These are buyers who are prepared to keep and lease out their properties over the longer term, but are also open to selling them for capital gains if the opportunity comes along.

    Although Singapore's economy is shrinking, several factors are working in specuvestors' favour. Notably, interest rates on bank loans are low, and more small apartments going for less than $1 million have become available. Many of them are also lucky enough to still have jobs, and some could have made a killing from the recent stockmarket rally.

    These investors, together with genuine homebuyers, have raised market activity to a level that authorities feel is out-of-sync with weak economic fundamentals. The fear? That some would not be able to repay their loans if they lost their jobs, or if banks raised mortgage rates in the future.

    'I have seen sufficient cases in my Meet-the-People sessions, where people have over-committed and now find themselves in difficulty,' Mr Mah recounted on Wednesday.

    CIMB economist Song Seng Wun said in a note on Wednesday that Singapore's Q2 09 jobless rate is expected to cross 5 per cent. The unemployment rate for Singaporeans and permanent residents rose to 4.8 per cent in Q1.

    Falling rentals would also test buyers' ability to support home loans, said Chesterton Suntec International's research and consultancy director Colin Tan.

    So to several industry watchers, the government is sounding a note of caution, just in case. As a developer told BT: 'What if the green shoots turn brown?' The formation of a bubble - particularly on shaky ground - would require overt intervention and the consequences are unlikely to be pretty.

    Take a look back at 1996, when the government introduced a surprise anti-speculation package to curb sharp spikes in private home prices. Tighter credit, a tax on gains and higher stamp duty caused sentiment to sink and transaction volumes to plunge. This is history that most would not want to see repeat itself.

    The key is whether the government's words will help calm the buying frenzy at this stage. Here, views are mixed.

    Some people may cool off, said Wheelock Properties (Singapore) CEO David Lawrence. 'I think (Mr Mah is) more focusing on the greedy people who overgeared, took on too many liabilities, and he's just saying 'be careful' . . . I think that's a reasonable message to the market.'

    But some also think the buying will continue as long as money from savings, banks or stockmarket winnings is around. A developer also suggested that a few people might bring forward their purchases in anticipation of anti-speculation measures coming on. 'Singaporeans are a bit 'gan cheong' (panicky),' he joked.

    At Optima, where people started queuing days before the showflat was due to open, developer TID has conducted a ballot for the 120 units planned for release. All units have been tentatively accounted for with prices starting from $790 per square foot. TID is a tie-up between Hong Leong Group and Mitsui Fudosan. A Hong Leong spokesman said that the balloting process helps to sieve out genuine buyers and the crowds have thinned. BT understands that there were already plans to conduct a ballot when a queue first formed, before Mr Mah spoke to the press on Wednesday.

    Market sources also say that around 80 units have been sold at Centro Residences, out of around 110 released.

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    http://www.straitstimes.com/Prime%2B...ry_410379.html

    July 31, 2009 Friday

    No property bubble forming, say developers

    They say buying frenzy hasn't reached point where Govt needs to intervene

    By Joyce Teo


    Crowds had gathered at the 297-unit Optima showflat last night even though the public launch is scheduled for today. The developer TID held a ballot at midnight for about 300 genuine buyers who were queueing outside the showflat so they did not have to stay overnight. -- ST PHOTO: AZIZ HUSSIN

    PROPERTY developers are enjoying the surge in interest from buyers but they do not believe that speculation has reached a stage where the Government needs to step in.

    They also maintain that the prevailing economic conditions will begin to cool the buying frenzy and stop a bubble forming in its tracks.

    'It's not a bubble, it's just a blister after the pain we experienced in the global financial crisis and it comes before a recovery,' said Cushman and Wakefield managing director Donald Han.

    But some developers and industry insiders acknowledge that the comments from National Development Minister Mah Bow Tan this week are timely.

    Mr Mah cautioned about a bubble forming, hinted at intervention if speculation got out of hand and advised buyers to tread carefully and not charge headlong into the market.

    'The Government's message is quite clear: Don't rush as there is a lot of supply coming onstream,' said Sing Holdings chief executive Lee Sze Hao.

    'It's good as a reminder so that people do not over-buy, over-chew. Developers do not want irrational exuberance,' said Mr Han.

    A property consultant who declined to be named told The Straits Times: 'There shouldn't be panic-buying. Buyers may pull back a bit, not knowing whether the Government will step in or not. The fact is that the Government has opened its mouth; it can do things indirectly.

    'But if the market hype continues to rise, they will have to do something.'

    Many feel the hype, which centres on several condominiums, will likely be short-lived amid a recession.

    'Inevitably, there will be speculative buyers, but they are for the smaller units...If the market is too speculative, you build up a bubble and that's not real demand,' said Mr Lee.

    The market is seeing cashed-up investors ready to spend, which is different from speculators looking to buy another apartment to make a quick buck, he said.

    The Government will do something only if there is a queue at every project and every unit is snapped up, he added.

    The Real Estate Developers Association of Singapore (Redas) pointed out on Wednesday that only a selected few launches have been highly successful for various reasons.

    Buyers have certainly been out in droves visiting the new showflats and buying new homes off the plan. Queues have been forming and developers have raised prices in response.

    The interest was evident last night at Tanah Merah, where crowds gathered at the 297-unit Optima showflat although the public launch is scheduled for today.

    The response was so strong that the developer TID held a ballot at midnight for about 300 genuine buyers who were queueing outside the showflat earlier so they did not have to stay overnight.

    They had submitted cheques together with their application form by 9.30pm for the 120 units on offer at an average early-bird price of $790 per sq ft (psf), said a spokesman.

    Another suburban launch, the 329-unit Centro Residences in Ang Mo Kio apparently attracted more than 80 buyers, even though it is priced at $1,150 psf and above - levels more suitable for prime or city-fringe projects.

    Such enthusiasm for new projects, which is reminiscent of boom times, and the sudden spike in prices are likely causes for concern, said a developer who declined to be named.

    Prices of some new mass market projects have gone above the peak 2007 levels, he said. 'But can the market sell 1,500 units every month in the next 12 months? I don't think so.

    'The Government is observing, but it will cease to be overly concerned when things return to normal.'

    CapitaLand chief executive Liew Mun Leong said at its results briefing yesterday that there is 'exuberance' in the market but no bubble. 'If it's investment driven, you could call it a bubble...but in our case, it is demand driven.'

    He also said he would be the first to be worried if this frenzy is being driven by speculative demand.

    He said there are buyers flushed with cash from collective sales in the recent property boom.

    Mr Liew estimated there were about 13,000 home owners displaced by en-bloc deals from 2005 to 2007 and these buyers have ready cash of anywhere between $1million and $2 million each to spend.

    [email protected]

    Additional reporting by Jessica Cheam

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    Quote Originally Posted by mr funny

    'It's not a bubble, it's just a blister after the pain we experienced in the global financial crisis and it comes before a recovery,' said Cushman and Wakefield managing director Donald Han.


    They had submitted cheques together with their application form by 9.30pm for the 120 units on offer at an average early-bird price of $790 per sq ft (psf), said a spokesman.
    Blister, must be a big one.

    Early bird discount? Any buyers looking at Tate Residences? I selling my unit, early bird gets big discount. Up to 30%. Original asking price 3000psf.

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    why would ppty developers EVER say there is a bubble? its against their interest. the article is pointless.

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    So Donald Duck is saying shorty made a mistake. No bubble...

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    Quote Originally Posted by Property_Owner
    Blister, must be a big one.

    Early bird discount? Any buyers looking at Tate Residences? I selling my unit, early bird gets big discount. Up to 30%. Original asking price 3000psf.
    I was told there is not much interest in resale units. Only primary units launched by developers

    For resale it is many units under $1.5m.

    Is this true?

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    Quote Originally Posted by andy
    I was told there is not much interest in resale units. Only primary units launched by developers

    For resale it is many units under $1.5m.

    Is this true?
    I cannot understand why new launch is 20% higher than resale ppty.

    Maybe some speculators hoping to reap handsome profits after TOP.

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    So do you think current condo owners should sell at a profit now before the bubble bust?

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    Quote Originally Posted by azeoprop
    So do you think current condo owners should sell at a profit now before the bubble bust?
    IMHO in the ppty mkt it is higher risk to sell short than to buy long.

    Also remember that transaction cost of buy/sell is about 7%.

    Anyway IMHO ppty prices are not near bubble stage yet.

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    Quote Originally Posted by bargain hunter
    why would ppty developers EVER say there is a bubble? its against their interest. the article is pointless.
    Exactly...they have been holding back launches and bleeding for the past year - this is the best time to make a killing and pass the risk to someone else...

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    Quote Originally Posted by Localite
    I cannot understand why new launch is 20% higher than resale ppty.

    Maybe some speculators hoping to reap handsome profits after TOP.
    FAT, FAT , FAT HOPE....Who are they going to sell to...this is just mass condo...how much the mass can afford....THINK!!!!!

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    Quote Originally Posted by Localite
    I cannot understand why new launch is 20% higher than resale ppty.

    Maybe some speculators hoping to reap handsome profits after TOP.
    I have noticed in the prime areas, resale properties are asking close to newly launched properties but still lower. This includes properties about to TOP vs brochures from developers.

    However for sururbia like optima and AMK centro if buyers are paying a 20% premium for similar properties in the same area, does this mean that there is an expectation in 3 year's time the value of these properties can command a similar 20% or more premium. This is only true when demand for sleekly furnished units in ultra convenient location next to MRT exceeds available Govt' Land Sale in that specific area.

    Is it as simple as demand vs expected supply for certain properties?

    Anyone care to comment?

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    I think the property craze is limited to "good locations" only. E.g. Optima and [email protected] vs [email protected] which is rather quiet. Some older release seems to be selling slowly also e.g. clover by the park and rosewood suites.

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    Quote Originally Posted by azeoprop
    I think the property craze is limited to "good locations" only. E.g. Optima and [email protected] vs [email protected] which is rather quiet. Some older release seems to be selling slowly also e.g. clover by the park and rosewood suites.
    lets put it this way ..

    older projects ..
    1.banks are not keen to extend credit ..cos no developer's guarantee/backing
    new projects, developers are paying the interest, not buyer ..


    2.tend to be bigger ..


    there are many old FH projects are very good locations too ..

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    Quote Originally Posted by andy
    I have noticed in the prime areas, resale properties are asking close to newly launched properties but still lower. This includes properties about to TOP vs brochures from developers.

    However for sururbia like optima and AMK centro if buyers are paying a 20% premium for similar properties in the same area, does this mean that there is an expectation in 3 year's time the value of these properties can command a similar 20% or more premium. This is only true when demand for sleekly furnished units in ultra convenient location next to MRT exceeds available Govt' Land Sale in that specific area.

    Is it as simple as demand vs expected supply for certain properties?

    Anyone care to comment?
    People living in Spore like to queue...
    Mentality is: If there is a queue, there is a BARGAIN!
    In crowded showflats, BARGAIN mentality kicks in....buyers pay higher price than similar completed units mearby.

    For property appreciation, if price is going to increase 3 yrs later, whether new or old units, all should go up...
    If the premium paid for new units is for the expected appreciation in value 3 yrs later, then completed unit should also command this premium...
    Cos 3 yrs later, the completed unit is still going to be there...

    My opinion is buyers in Spore will pay a premium for new units...

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    queuing for condos not as bad as queuing for hello kitty dolls....


    Quote Originally Posted by d12pxgoskyhigh
    People living in Spore like to queue...
    Mentality is: If there is a queue, there is a BARGAIN!
    In crowded showflats, BARGAIN mentality kicks in....buyers pay higher price than similar completed units mearby.

    For property appreciation, if price is going to increase 3 yrs later, whether new or old units, all should go up...
    If the premium paid for new units is for the expected appreciation in value 3 yrs later, then completed unit should also command this premium...
    Cos 3 yrs later, the completed unit is still going to be there...

    My opinion is buyers in Spore will pay a premium for new units...

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    Quote Originally Posted by andy
    I was told there is not much interest in resale units. Only primary units launched by developers

    For resale it is many units under $1.5m.

    Is this true?
    I really dun know pal. But guess there's still interest in resale, cause some agents already PM me asking to market my tate residences.

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    Quote Originally Posted by d12pxgoskyhigh

    My opinion is buyers in Spore will pay a premium for new units...
    A unit that is going to TOP in 3 months is still a new unit and buyers can collect rental after TOP or enjoy if you live in it. I just don't understand why buyers in Spore is willing to pay a 10-20% premium for units that will TOP in 3 years and during that time pay interest according to NPS..... unless it is a given there will not be other new, sleek condos next to MRT in 3 years;-)

    Prevailing mentality seems to be it must be good to ballet (like balleting for P1 entry) and there's a bargain. Is it possible that if 1 person lose money cannot ask gov't to save the individual. However 1000 persons lose money can ask gov't to get money back from developer?

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    Quote Originally Posted by andy
    A unit that is going to TOP in 3 months is still a new unit and buyers can collect rental after TOP or enjoy if you live in it. I just don't understand why buyers in Spore is willing to pay a 10-20% premium for units that will TOP in 3 years and during that time pay interest according to NPS..... unless it is a given there will not be other new, sleek condos next to MRT in 3 years;-)

    Prevailing mentality seems to be it must be good to ballet (like balleting for P1 entry) and there's a bargain. Is it possible that if 1 person lose money cannot ask gov't to save the individual. However 1000 persons lose money can ask gov't to get money back from developer?
    Agree pal.

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    Quote Originally Posted by d12pxgoskyhigh
    People living in Spore like to queue...
    Mentality is: If there is a queue, there is a BARGAIN!
    In crowded showflats, BARGAIN mentality kicks in....buyers pay higher price than similar completed units mearby.

    For property appreciation, if price is going to increase 3 yrs later, whether new or old units, all should go up...
    If the premium paid for new units is for the expected appreciation in value 3 yrs later, then completed unit should also command this premium...
    Cos 3 yrs later, the completed unit is still going to be there...

    My opinion is buyers in Spore will pay a premium for new units...
    Let me list you two advantages of a new unit versus a completed unit:

    1. The developers put out large, attractive advertisements which small 4-line classifieds cannot compete.

    Look at this advertisement for a condo at Upper Changi.



    Don't you think it is far more attractive compared to your 4-line advertisment in the classifieds? "Upper Changi Condo for Sale. As beautiful as a flower maiden resting on top of a rose overlooking the swimming pool and praying to the sky. Call Richard 9999 9999".

    2. When you queue up to view a new condo, there is a chance that reporters might turn up to take a photo of you, like this which appeared in friday's papers:



    Don't you think it is very glamorous to appear in the papers? Then let your colleagues/ relatives identify you "Hey! Isn't that so and so standing third row behind? ... Wow! she is so rich can afford to buy condo! Must congratulate her!"

    Do you think any reporter will come to take a photo of you buying a second hand condo?

    Not unless you find a dead body inside the wardrobe.

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    Quote Originally Posted by andy
    A unit that is going to TOP in 3 months is still a new unit and buyers can collect rental after TOP or enjoy if you live in it. I just don't understand why buyers in Spore is willing to pay a 10-20% premium for units that will TOP in 3 years and during that time pay interest according to NPS..... unless it is a given there will not be other new, sleek condos next to MRT in 3 years;-)

    Prevailing mentality seems to be it must be good to ballet (like balleting for P1 entry) and there's a bargain. Is it possible that if 1 person lose money cannot ask gov't to save the individual. However 1000 persons lose money can ask gov't to get money back from developer?

    Since a large percentage is HDB upgraders, you need to understand what is their main concern. I used to be a HDB upgrader many years back, so maybe I can comment a bit here. Below may not apply to all but should apply to a large percentage.

    Typically, they have saved enough for the first 20% installment, this is easily 120k-200k depending on the size of the unit purchased. To buy a new condo that has TOP, you have a big commitment immediately. Monthly installment is easily 3 to 4k. To many people, it's a mix feeling of excitment, fear and pressure. To see your bank account going down by 100-200k after paying the first 20% does give you a chill somehow. Further to that, if you need to start paying the monthly installment immediately, it will put a lot of pressure on both couples. Things can turn sour if not managed properly.

    But if you buy from a new lauch, the unit is only available after 2-3 yrs. This means that you can take a breather & relax for the next 2-3yrs. This is a good buffer period to starts saving again in preparation for monthly installment in 2-3yrs time. Usually you can save quite a healthy sum in this time span.

    However, I do agree that the new launch price is on the high side. Hopefully, these buyers have done proper sum. Anyway, every individual has their own view of things happening in the market today. In the long run, price will be going up. But nobody can predict what's going to happen in the near future. I may be wrong and everyone is right. OR everyone is wrong and only the developer is right. The developers are the one who benefited in this interesting property market.

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    of course they claimed to be no bubble lah, shooting themselves in their foot meh!!!??? only idiots believed them...

    let the bubble burst and blood on the street!!!!

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    Quote Originally Posted by PN
    Since a large percentage is HDB upgraders, you need to understand what is their main concern. I used to be a HDB upgrader many years back, so maybe I can comment a bit here. Below may not apply to all but should apply to a large percentage.

    Typically, they have saved enough for the first 20% installment, this is easily 120k-200k depending on the size of the unit purchased. To buy a new condo that has TOP, you have a big commitment immediately. Monthly installment is easily 3 to 4k. To many people, it's a mix feeling of excitment, fear and pressure. To see your bank account going down by 100-200k after paying the first 20% does give you a chill somehow. Further to that, if you need to start paying the monthly installment immediately, it will put a lot of pressure on both couples. Things can turn sour if not managed properly.

    But if you buy from a new lauch, the unit is only available after 2-3 yrs. This means that you can take a breather & relax for the next 2-3yrs. This is a good buffer period to starts saving again in preparation for monthly installment in 2-3yrs time. Usually you can save quite a healthy sum in this time span.

    However, I do agree that the new launch price is on the high side. Hopefully, these buyers have done proper sum. Anyway, every individual has their own view of things happening in the market today. In the long run, price will be going up. But nobody can predict what's going to happen in the near future. I may be wrong and everyone is right. OR everyone is wrong and only the developer is right. The developers are the one who benefited in this interesting property market.
    I totally agreed with you. Its a hugh committment to buy TOP property unless you can get a good bargain and rent out immediately to cover the monthly installment. For own stay, its a hugh sum paying $3000 per month even though majority of it comes from CPF. Even worse is if the interests rate rises from the current less than 2% to 4%. A lot of people would be crying..... Come to think of it is really scary. In a way, I believe the bubble would form somehow or rather, just depend on when.

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    Quote Originally Posted by PN
    Since a large percentage is HDB upgraders, you need to understand what is their main concern. I used to be a HDB upgrader many years back, so maybe I can comment a bit here. Below may not apply to all but should apply to a large percentage.

    Typically, they have saved enough for the first 20% installment, this is easily 120k-200k depending on the size of the unit purchased. To buy a new condo that has TOP, you have a big commitment immediately. Monthly installment is easily 3 to 4k. To many people, it's a mix feeling of excitment, fear and pressure. To see your bank account going down by 100-200k after paying the first 20% does give you a chill somehow. Further to that, if you need to start paying the monthly installment immediately, it will put a lot of pressure on both couples. Things can turn sour if not managed properly.

    But if you buy from a new lauch, the unit is only available after 2-3 yrs. This means that you can take a breather & relax for the next 2-3yrs. This is a good buffer period to starts saving again in preparation for monthly installment in 2-3yrs time. Usually you can save quite a healthy sum in this time span.

    However, I do agree that the new launch price is on the high side. Hopefully, these buyers have done proper sum. Anyway, every individual has their own view of things happening in the market today. In the long run, price will be going up. But nobody can predict what's going to happen in the near future. I may be wrong and everyone is right. OR everyone is wrong and only the developer is right. The developers are the one who benefited in this interesting property market.
    I think, if any buyer bought the property at 1 million, the monthly installment anytime more than $5,000 to $6,000, base on $800,000 loan

    How a HDB's upgrader afford to pay every month?

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    Default Isn't this speculation then?

    Quote Originally Posted by PN

    Typically, they have saved enough for the first 20% installment, this is easily 120k-200k depending on the size of the unit purchased. To buy a new condo that has TOP, you have a big commitment immediately. Monthly installment is easily 3 to 4k. To many people, it's a mix feeling of excitment, fear and pressure. To see your bank account going down by 100-200k after paying the first 20% does give you a chill somehow. Further to that, if you need to start paying the monthly installment immediately, it will put a lot of pressure on both couples. Things can turn sour if not managed properly.
    If you only have enough for the 20% and need to defer the monthly payments for 3 years, then you are betting on one of the following:
    a) Total Monthly pay in 3 years will exceed 3 times monthly repayment at $4K. This is providing interest rate does not escalate.
    b) Buyer can unload the property before TOP at a small profit even offsetting the stamp duties and legal fees.

    What if your household income does not meet expectations? What if interest rate escalate and you can't find a buyer within 3 years. I believe subprime happens when the money you owe the bank after TOP becomes more than what the property is worth:-(

    All I know the majority of the pple buying prime areas either have the cash or enough income to hold the property even if they don't get any rentals.

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    Quote Originally Posted by Honesty
    I think, if any buyer bought the property at 1 million, the monthly installment anytime more than $5,000 to $6,000, base on $800,000 loan

    How a HDB's upgrader afford to pay every month?
    Based on $800K loan with 3% interest rate (purposely make it 3 as it will not stay low forever) for 30yrs, the monthly installment is about 3.4k. Working couples should have about $1800 going into ordinary accounts monthly. The rest will need to come from cash.

    If the interest goes up to 4%, it will be around 3.8k based on the same loan tenure.

    It's more than simply interest rate. Affordability varies from one individual to another. Some feel that with $8K income, it's enough to buy a $1.2M home. Another say at least $15k. Also it depends on life style & when you plan to retire & what kind of life you want live at old age.

    I've been argueing on this topic in another thread some months back.
    You may refer back to this link
    http://forums.condosingapore.com/sho...?t=7196&page=2

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    Quote Originally Posted by PN
    Since a large percentage is HDB upgraders, you need to understand what is their main concern. I used to be a HDB upgrader many years back, so maybe I can comment a bit here. Below may not apply to all but should apply to a large percentage.

    Typically, they have saved enough for the first 20% installment, this is easily 120k-200k depending on the size of the unit purchased. To buy a new condo that has TOP, you have a big commitment immediately. Monthly installment is easily 3 to 4k. To many people, it's a mix feeling of excitment, fear and pressure. To see your bank account going down by 100-200k after paying the first 20% does give you a chill somehow. Further to that, if you need to start paying the monthly installment immediately, it will put a lot of pressure on both couples. Things can turn sour if not managed properly.

    But if you buy from a new lauch, the unit is only available after 2-3 yrs. This means that you can take a breather & relax for the next 2-3yrs. This is a good buffer period to starts saving again in preparation for monthly installment in 2-3yrs time. Usually you can save quite a healthy sum in this time span.

    However, I do agree that the new launch price is on the high side. Hopefully, these buyers have done proper sum. Anyway, every individual has their own view of things happening in the market today. In the long run, price will be going up. But nobody can predict what's going to happen in the near future. I may be wrong and everyone is right. OR everyone is wrong and only the developer is right. The developers are the one who benefited in this interesting property market.
    good point.

    but it is a sign of speculation - if ppl are buying 3 years ahead of their needs

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    Not too long ago D10 6 Ave Residences selling at around $1300psf. Going to TOP somemore. Is it better then the recently launch condos. Those who bough the so near mrt could be people who still want to stay near where they used to be without putting into consideration of future price. They are certainly rich.

  29. #29
    Join Date
    Feb 2009
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    Seems like most buyers of Optima bought for rental income and investment reasons.

  30. #30
    Join Date
    Jul 2009
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    With all the IR thing and more foreigners coming, up-graders are expecting the property price to be better in 3 years time.

    Can the property price go down again to Dec 2008 price?

    In the last few decades, property price went down but it went up and up eventually so alot of people still think buying property is a good bet, including my old grand mother.

    I think the more concerning issue is if the 1m buyer can hold on to the property for the next 10 years if the market cannot climb up quickly and they are unable to dispose off with a profits.

    Potential buyers still buy after so many successful launches were reported. Another possible reason is the parents will help up to the loan if the young couple cannot afford it down the road.

    We have a small family size after all and parents could easily help up by selling away their old homes either willingly or unwillingly.





    Quote Originally Posted by Localite
    good point.

    but it is a sign of speculation - if ppl are buying 3 years ahead of their needs
    Last edited by rattydrama; 02-08-09 at 22:09.

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