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Thread: Why are New Launches doing so well compare to Secondary Market?

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    Default Why are New Launches doing so well compare to Secondary Market?

    We all know that a new launch is likely to be sold out within days or weeks. Some buyers even chong to buy few units.
    Secondary market there are transactions but doesn't seems a lot as compared.

    Example, E shore vs One Amber.

    cheers

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    maybe some think that buying from developer is akin to buying at lowest price? assuming a recovery is forthcoming and sustainable

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    You get a chance to see yourself in newspapers.



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    Simple reasons:

    1) Marketing - Developers spent a lot on marketing / showflat / agent fees. Some even goes to overseas to market.

    2) Mentality - Most (if not all) people's mentality is that they rather let the Developers make more loads of $$$ than to make an individual richer. Similarly, many would not want to end up in a unit that is 30% to 40% higher cost than their neighbours who bought direct from Developer.

    3) Speculation - Some buy for investment and not stay. They rather buy something that gets built in 2 yrs' time (no need to service loan so soon) than to buy a completed vacant unit which they need to rent out immediately to recover monthly cost of servicing loan.

    Because of the above, many are too blind to realise that new launches nowadays are actually priced higher than secondary market in many cases.

    The smart investor is one who seeks out the best deal (i.e. lowest psf with the best location and view).

    But the majority investors follow the "Hello Kitty" syndrome (i.e. they just rush all out for the hot / popular deals without knowing what exactly they are buying).

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    One word - kiasu. Oh thats actually two words.

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    Quote Originally Posted by mcmlxxvi
    One word - kiasu. Oh thats actually two words.
    or lazy ... because never do homework

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    The difference is 'new'.

    And of course, you have a defects liability period.

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    Quote Originally Posted by saab, The Wharf Residence, 17 March 2010 10.33 am
    Your perspective is from that of a casino's gambler. Your crystal ball sees only a gambler's mentality of "hoping" to buy a new launch from a developer at outright 15% plus minus price higher in today's market context for a "pass" (that's what you call an option) for 3 to 4 years "hoping" to offload at a profit along the way, while serving progressive payments blah blah blah...('cos no IAS now). But the gambler will soon realise that the gap between the new launch and resale are widening at very fast pace with current rate going......

    Look at these:- Cairnhill's Urban Suites ($2800 psf ave. almost 100% sold, if subsales can be found in market now guess how much?); Laurels ($3000 psf ave. - 135 taken up out of 179 previewed on last weekend); L'VIV ($2050 psf ave. - 110 taken up out of 147 officially launched only last weekend too); Altez (from $2250 psf now selling the 2 bedrooms loft at #30 floor and above and guess what already as of yesterday 15 units out of 36 available have been snapped up and feo not releasing any more units as of now...); waterscape at cavenagh (from $2000 psf now with limited units left out of 190 over launch since jan'10...); centennia suites (around 30 out of 97 taken as of yesterday at ave. $2100psf)....Trilight also selling reasonably well with ave. psf 1800 to 1900 now....New Launch Bukit Sembawang's The Vermont at Cairnhill aka besides VIDA lah....ranging $2500 psf to $3000 psf.....(take-up rates to be seen lah...) you mean we have so many "high rollers" around........

    c'mon, resale not moving because:-
    (1) banks have problems since jan'10 to match sellers' asking prices valuations....also
    (2) resale sellers now keep on shifting goal posts as prices of new launches keep going up.....
    (3) agents not so keen to service resale market with the new launch market so hot and easy to move....sell 1 new launch 0.3% and 1 resale 1 to 1.5% is like selling 3 to 4 new equivalent to 1 resale....why not go for new launch that sell like roti prata....
    (4) buyers have no time to react that the value of difference between the 2 is huge and in no time when this gap gets bigger it will push them to resale market...

    all property market boom is like that : New Launch (first movers); then nearby subsale (better value); then resale (no fish prawn also good - let's not miss out the party).
    Have some patience, gentlemen!

    Everyone likes new cars from the showrooms too but I believe the 2nd-hand cars will have a chance in the coming weeks and months.


    My previous subsales have benefitted from runaway new sale prices. A lot of patience was needed. I tell myself to exercise the same patience this time and watch the new sale prices rocket.

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    Quote Originally Posted by Reporter
    Have some patience, gentlemen!

    Everyone likes new cars from the showrooms too but I believe the 2nd-hand cars will have a chance in the coming weeks and months.


    My previous subsales have benefitted from runaway new sale prices. A lot of patience was needed. I tell myself to exercise the same patience this time and watch the new sale prices rocket.
    Thanks REPORTER.....just don't wish that stingrad too narrow on his "high rollers" perspective and provided only "gamblers' mentality in property market" to this forum...i just "spouting" out the facts which i gather from the market and highlight them as it is here.....If there are really so many "highrollers" around like what stingray has said.....cannot be right.

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    reasons :

    1 buy new at show flat ..good chance to be photograph ..maybe TV

    2 every one know i got money

    3 easy mah ..just follow the buttock in front ..they run, i run, they turn i turn ... HERD instinct

    4 at show flat , got free packet drinks

    5 if lucky , can go back with a nicer pair of shoes ...so many to choose from .. if rain ..maybe can grab a free umbrella

    6 view old condo ? so hot, owner never turn on aircon

    7 old unit ? got murder or suicide or not ?

    8 old unit ? so hard to get bank loan to match valuation

    9 at show flat ,, all loans will be approved .. so easy to get loan

    10 old unit ? so big .. how to clean ? MM unit better ..

    11 old unit ? no planter.. i like decking, i like bay windows .. can saw off 2 legs of my table and slide over bay window ..so innovative ..so clever

    .
    .
    .
    .
    enuff reasons ?

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    Quote Originally Posted by proud owner
    reasons :

    1 buy new at show flat ..good chance to be photograph ..maybe TV

    2 every one know i got money

    3 easy mah ..just follow the buttock in front ..they run, i run, they turn i turn ... HERD instinct

    4 at show flat , got free packet drinks

    5 if lucky , can go back with a nicer pair of shoes ...so many to choose from .. if rain ..maybe can grab a free umbrella

    6 view old condo ? so hot, owner never turn on aircon

    7 old unit ? got murder or suicide or not ?

    8 old unit ? so hard to get bank loan to match valuation

    9 at show flat ,, all loans will be approved .. so easy to get loan

    10 old unit ? so big .. how to clean ? MM unit better ..

    11 old unit ? no planter.. i like decking, i like bay windows .. can saw off 2 legs of my table and slide over bay window ..so innovative ..so clever

    .
    .
    .
    .
    enuff reasons ?
    12. Showroom agents babes and hulks. Smile @ u non stop.
    Subsale agent old, fat and ugly, what are the chances of meeting a pretty agent? With photocopy floorplans meet you at macdonald drink ice tea.
    Resale agent late, can't get viewing, some come in jeans and t shirt.

    13. Resale units owners/tenants didn't tidy up before viewing. I once view a unit with rubbish all over. Tenant worse was in shorts and single with a weird odour, baby was sleeping in room, can't view tat room.
    Showroom diff, everything was in order.....lots of ID.....

    14. Old units likely to spend money for renovation. New launch they do up everything already. Dun have to think so much..

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    Quote Originally Posted by Property_Owner
    12. Showroom agents babes and hulks. Smile @ u non stop.
    Subsale agent old, fat and ugly, what are the chances of meeting a pretty agent? With photocopy floorplans meet you at macdonald drink ice tea.
    Resale agent late, can't get viewing, some come in jeans and t shirt.

    13. Resale units owners/tenants didn't tidy up before viewing. I once view a unit with rubbish all over. Tenant worse was in shorts and single with a weird odour, baby was sleeping in room, can't view tat room.
    Showroom diff, everything was in order.....lots of ID.....

    14. Old units likely to spend money for renovation. New launch they do up everything already. Dun have to think so much..
    15 i once viewed an old unit ..owner blast hi fi set so loud ...to mask the noise from the road level

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    Secondary market unit not necessary are old units. Some have yet to TOP. We term these as subsale.

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    Singaporeans are very trusting of agents/developers .... government sure protect our interest ... remind me of the Lehman Minibonds saga

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    Quote Originally Posted by proud owner
    15 i once viewed an old unit ..owner blast hi fi set so loud ...to mask the noise from the road level
    that is nothing compared with the tactics employed by developers. examples abound:

    (1) coerce their employees and associates to buy to create false demand.
    (2) label their above-ground car parks as plazas.
    (3) bait and switch. show you marble floors but give you homogeneous tiles.
    (4) sell you condos on breath taking views which are just views of rusty old cranes in harbours.
    (5) sell you mickey mouse units that you are stuck with for the rest of your life.
    ...

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    Quote Originally Posted by stalingrad
    that is nothing compared with the tactics employed by developers. examples abound:

    (1) coerce their employees and associates to buy to create false demand.
    If their employees or associates no money or not willing or to coerce?

    (2) label their above-ground car parks as plazas.
    It's true if there are shops there on 1st level, not wrong.

    (3) bait and switch. show you marble floors but give you homogeneous tiles.
    Which developers have done it in S'pore so far...you want to share? This is a very serious allegation....to developers....

    (4) sell you condos on breath taking views which are just views of rusty old cranes in harbours.
    Buyers own due diligence....don't take all on the surface....they are not wrong to say there are sea views but they are not wrong too that there are old cranes and harbours....they never say that is not part of seaview..

    (5) sell you mickey mouse units that you are stuck with for the rest of your life.
    This is your own assumption so far....may not be like what you say...think you are too extreme in your view


    ...
    Think you are too extreme in your perspective...have you been burnt very badly by property market......that you have to mislead in a negative direction...

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    Originally Posted by bullman

    Yup I have checked with the agent and it will be demolished. I also heard that the show flat has been closed and the official launch will be on Sat without the 4% discount anymore! Should have just grabbed the two bedder last Friday.

    Anyway, congrats to all Coralis buyers who are now laughing their way to the bank.
    Originally Posted by greenhorn
    Bullman,

    Go for it. Discount is still on till tmr. Stop procrastinating if you wanna grab a 2 bdrm unit, if not don't wail once its over... "should have..."
    Yes boss,
    I have just booked a high floor stack 2. Hope its a right move.

    The bull is out

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    Quote Originally Posted by Property_Owner
    The bull is out
    haha. Yes bro. I am a bull sometimes. Just bought it so that can register my address for my son next year to register for Tao Nan. Hope that the psf dun drop to half price in the next down cycle then I am ok liao.

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    Quote Originally Posted by saab
    Think you are too extreme in your perspective...have you been burnt very badly by property market......that you have to mislead in a negative direction...
    who is extreme? I think you are, you are extremely naive. See below the post from the vision.

    Quote Originally Posted by Lucas
    FYI the marble on the walls of all rooms will not be included in the actual unit The showroom decor n finishing somehow deceiving if you don't ask the detail .

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    Quote Originally Posted by bullman
    haha. Yes bro. I am a bull sometimes. Just bought it so that can register my address for my son next year to register for Tao Nan. Hope that the psf dun drop to half price in the next down cycle then I am ok liao.
    Thot I saw somewhere in the internet that Tao Nan is shifting out of East Coast?

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    Quote Originally Posted by Blue
    Thot I saw somewhere in the internet that Tao Nan is shifting out of East Coast?
    don't say that and break his heart. even today, so many singaporean parents think that it is very important that they put their kids in star schools.

    let me tell you from my person experience, it is not the school that counts, it is how much time you put into educating your kids yourself. so many think "if I put my kids in this or that schools, he is going to be alright." not so, you need to put your own time and effort into your kids' education. if you did not, your kids will turn out badly even if you put him or her in nanyang.

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    Quote Originally Posted by saab
    Quote Originally Posted by stalingrad
    (5) sell you mickey mouse units that you are stuck with for the rest of your life.
    Think you are too extreme in your perspective...have you been burnt very badly by property market......that you have to mislead in a negative direction...
    I know some members here are quite bored by my news clippings, which appeared again and again.

    I'm so sorry about that but I have to bring them up again to defend our beloved Mickey Mouse.

    The Observer

    Sunday 16 March 2003

    Imagine paying more than £100,000 for a 300 sq ft flat and having to throw out half your clothes to fit into it.

    This was reality for 23-year-old sales negotiator Francesca Osborne when she bought her flat in London's Islington 18 months ago. She paid £108,000, and at last count the flat was worth £155,000, despite its diminutive dimensions.

    She is not alone in paying prices that, to many, will seem silly for tiny homes. Agents say that there are more buyers chasing small flats than properties available. This is just as well because the Microflat - a trademarked blueprint of a super-svelte living space, which is big on design and small on expense - is being hailed as one solution to Britain's inner city housing crisis.



    Since the early 1980s property merchants have been exploiting the premium on land, turning anything from large rooms and small glory holes into self-contained shoe boxes. These 'feature' beds suspended from the ceiling, kitchenettes on castors that disappear behind a wall, and shower trays that fold down over the lavatory.

    One of the first of its kind was, literally, a converted broom cupboard in a mansion block opposite Harrods. Eyebrows rose when, in 1986, it sold for £35,000. Today, experts have no trouble keeping a straight face when they value it £110,000.

    A quick survey of estate agents' shop windows reveals how serious such silly street valuations have become. Stern Studio is advertising a 10ft by 11ft apartment in Earls Court for £125,000.It also has a 15ft by 8ft apartment in Chelsea for £145,000. Director Tom Trudgeon says: 'Half of London seems to want to buy them.'

    Equally upbeat is Gordon Blausten, senior partner at Bruten & Co. He has a 13.2ft by 9.9ft apartment in Kensington on his books for £150,000. Thompson Cur rie just sold a 200 sq ft apartment in Clerkenwell for £155,000. Sales manager Ben Burston says: 'I could have sold it 40 times over.'

    Here’s an apartment to beat all of the other little boxes out there. Welcome to London, home of possibly the smallest apartment in the world. This 62 square foot flat has all the necessities that $247 a week can buy: a platform bed, bath, wardrobe, and kitchenette (if you can call it that).


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    Quote Originally Posted by Blue
    Thot I saw somewhere in the internet that Tao Nan is shifting out of East Coast?
    Only shifting out for 1 to 2 years then shift back. They expanding the current premises. Cheers

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    Quote Originally Posted by stalingrad
    that is nothing compared with the tactics employed by developers. examples abound:

    (1) coerce their employees and associates to buy to create false demand.
    (2) label their above-ground car parks as plazas.
    (3) bait and switch. show you marble floors but give you homogeneous tiles.
    (4) sell you condos on breath taking views which are just views of rusty old cranes in harbours.
    (5) sell you mickey mouse units that you are stuck with for the rest of your life.
    ...
    Some even deploy the timeshare sales tactic of striking gong or stand up applause when close a unit. ... smells fishy?

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    " I'm buying because everybody is buying " , never fall into this
    stupid assumption...

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    Most of time people would be lured by new flats as resale ones beg the questions of reno, aircon replacement, old paint etc etc - imagination far outweighs visual impression hence the flocking to new condos.

    No right no wrong lah, just typical singaporean mentality

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    Enough reasons for me..... except all upside down

    Quote Originally Posted by proud owner
    reasons :

    1 buy new at show flat ..good chance to be photograph ..maybe TV

    2 every one know i got money

    3 easy mah ..just follow the buttock in front ..they run, i run, they turn i turn ... HERD instinct

    4 at show flat , got free packet drinks

    5 if lucky , can go back with a nicer pair of shoes ...so many to choose from .. if rain ..maybe can grab a free umbrella

    6 view old condo ? so hot, owner never turn on aircon

    7 old unit ? got murder or suicide or not ?

    8 old unit ? so hard to get bank loan to match valuation

    9 at show flat ,, all loans will be approved .. so easy to get loan

    10 old unit ? so big .. how to clean ? MM unit better ..

    11 old unit ? no planter.. i like decking, i like bay windows .. can saw off 2 legs of my table and slide over bay window ..so innovative ..so clever

    .
    .
    .
    .
    enuff reasons ?

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    Quote Originally Posted by jlrx
    I know some members here are quite bored by my news clippings, which appeared again and again.

    I'm so sorry about that but I have to bring them up again to defend our beloved Mickey Mouse.

    The Observer

    Sunday 16 March 2003

    Imagine paying more than £100,000 for a 300 sq ft flat and having to throw out half your clothes to fit into it.
    Dynamics in London are different. Plenty people commute 300km to London to work, stay in the mickey mouse for the week, then go home to large house at the weekend. Singapore's closest I guess would be professional Malaysians living in Johor, but are they going spend 4k/month rent for a MM?
    Plus the Singapore MM is 3-5x as expensive as the the London one for an owner.

    Anyhow, we will see how it all comes through when they are eventually on the market. Who knows, maybe they'll be a great success.

  29. #29
    xebay11 is offline New Launch Project Specialist
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    Quote Originally Posted by stalingrad
    don't say that and break his heart. even today, so many singaporean parents think that it is very important that they put their kids in star schools.

    let me tell you from my person experience, it is not the school that counts, it is how much time you put into educating your kids yourself. so many think "if I put my kids in this or that schools, he is going to be alright." not so, you need to put your own time and effort into your kids' education. if you did not, your kids will turn out badly even if you put him or her in nanyang.
    The school does matter, ever heard of the old boy's club? Where I come from many are in high positions due to the network. I guess you never came from one.

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    but Tao Nan so hot, even within 1km still need to ballot?

    Quote Originally Posted by bullman
    haha. Yes bro. I am a bull sometimes. Just bought it so that can register my address for my son next year to register for Tao Nan. Hope that the psf dun drop to half price in the next down cycle then I am ok liao.

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