Results 1 to 7 of 7

Thread: Projected value of ageing flats too rosy

  1. #1
    mr funny is offline Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Projected value of ageing flats too rosy

    http://www.straitstimes.com/Think/St...ry_524405.html

    May 9, 2010

    YOUR LETTERS

    Projected value of ageing flats too rosy


    I refer to the article, 'What if you can't afford to retire?' (April25).

    I am surprised with the example given by the Society of Financial Service Professionals' Mr Leong Sze Hian that a Housing Board flat valued at $200,000 now could be worth $864,388 in 30years.

    Suppose a flat has 70years of lease left. In 30years, it would be down to only 40years left. Is it really possible that such a unit can fetch more than $864,000?

    Mr Leong's rosy picture is not sustainable. The value of a leasehold property must come down at some point. Where exactly the turning point along the 99-year timeline is depends on several factors, such as government intervention.

    It is possible to control the price movement by making available cheap lease top-up options. But if no extension is allowed, the value of a flat can move towards zero when the lease is fully expended.

    This uncertainty has never been addressed. HDB flats with less than 65 years of lease left are changing hands as though they are freehold properties. Age is not factored into pricing negotiations. Surely this can't last. Imagine the consequences: A nation with a growing ageing population holding on to fast depreciating assets and not having enough funds for retirement.

    Wong Pang Yee

  2. #2
    Join Date
    May 2009
    Posts
    29

    Default

    And that's why I had second thoughts about buying a flat at Marine Parade.

  3. #3
    Join Date
    Nov 2008
    Posts
    1,141

    Default

    Quote Originally Posted by chanys
    And that's why I had second thoughts about buying a flat at Marine Parade.
    it's always ok for me when i look at HDB housing. Buy what you can afford when u like it.

    ever heard of Selective En Bloc Redevelopment Scheme?

  4. #4
    Join Date
    Apr 2009
    Posts
    5,841

    Default

    the government can also top up the tenure for a flat as and when they want so actually 99yr or not for govt flats not a big issue. 99yr for private is however an issue. if the project is condemned of en bloc, then owners living in a 30yr leasehold condo have nothing to look forward to except to rent out their units for rental income.

    Quote Originally Posted by Property_Owner
    it's always ok for me when i look at HDB housing. Buy what you can afford when u like it.

    ever heard of Selective En Bloc Redevelopment Scheme?

  5. #5
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by Regulators
    the government can also top up the tenure for a flat as and when they want so actually 99yr or not for govt flats not a big issue. 99yr for private is however an issue. if the project is condemned of en bloc, then owners living in a 30yr leasehold condo have nothing to look forward to except to rent out their units for rental income.
    true

    esp HDB in Marine parade ..

    to me they are sitting on a good location...which when the lease ends.. govt can enbloc ...offer the owner a new location or take the money and go ..

    then sell the land to private developers .. for private condo ..

  6. #6
    Join Date
    Jun 2009
    Posts
    5,675

    Default

    Quote Originally Posted by proud owner
    true

    esp HDB in Marine parade ..

    to me they are sitting on a good location...which when the lease ends.. govt can enbloc ...offer the owner a new location or take the money and go ..

    then sell the land to private developers .. for private condo ..
    Most probably they will sell the land to private developers, the land is too prime for hdb.

  7. #7
    Join Date
    Oct 2008
    Posts
    648

    Default

    Quote Originally Posted by azeoprop
    Most probably they will sell the land to private developers, the land is too prime for hdb.
    Read somewhere in the Coralis thread, there are plans to upgrade the HDB area there... unlikely to enbloc so soon.

Similar Threads

  1. Early redevelopment scheme 'gives owners of ageing flats viable exit option'
    By reporter2 in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 13-09-18, 23:21
  2. Sim Lian, Wing Tai see rosy Q2 net profit
    By reporter2 in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 07-02-13, 13:19
  3. Advice on home loans for uncompleted projected
    By skeptikos in forum Finance and Legal
    Replies: 25
    -: 02-08-09, 15:04
  4. How inflation and uncertainty are marring the rosy job market
    By oxboy99 in forum HDB, EC, commercial and industrial property discussion
    Replies: 2
    -: 23-06-08, 21:08
  5. Future not so rosy for working-class S'poreans
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 6
    -: 07-06-07, 06:08

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •