Here are some snippets of what I managed to capture:
The SAIL!! - now going at S$1200psf, you can buy one studio apartment for under SGD1mil with good sea view even though not facing the IR.
HDB prices have gone up because two factors:
1. HDB's new building scheme called BTO "build-to-order" meaning they will not start to build until the demand is high by registrations.
2. more PRs have come to Singapore and have contributed the demands.
COV: Cash-over-value
COV is dropping because people are not going to pay higher for HDB flats that are valuated during sales.
In private properties, he classifies them into three categories:
1. Core area - downtown, Sentosa etc
2. Outer Core area - Telok Blangah, Queenstown, Newton etc
3. Others - the mass market
!Now the 99-years mass market private properties are valued at S$620 psf and could still go even lower to S$600 psf BUT no more than 10% lower.
!Freehold private are around S$800 psf. So anything lower than this, it is a BUY!
Typically, the cost of private properties are broken down below:
1. Construction cost: S$200-250 psf
2. Land cost: S$300 (depending on location and the sales offer)
Small developers usually have low holding power and want to sell quick.
In the current situation (Apr 2009), it is either we buy now or at best we can wait for three more months because prices are going to move soon.
We should consider any projects that has walking distance to MRT.
He defines a reasonable walking distance as 200m or less.
When we buy, we should consider with the perspective of keeping it for 5 years and beyond if not speculating.
He thinks that Caspian is the most exciting project for now due to the Lakeside District development coming up in 10 years – versus the others like Double Bay, Mi Casa etc that are launched around the same period.
In the Core and Outer Core area, the composition of the buyers are as follows:
Indonesian = 20%
Malaysian = 12%
Indian = 11%
Chinese = 7%
The above have already contributed around 50% of the prime private properties.
Others = about 50%
And we have lost them in the coming years due to the credit crunch!
The price of these private houses may go down another 15% by year end. There could be some distressed sales during this period.
Therefore we can try The Sail! for S$1200 psf or even lower.
***LANDED PROPERTY***
It is a diminishing stock.
(I learn that landed properties which have leased-hold tenure of 99 years!!!)
If affordable, try to own one. The recommended areas are:
*Mountbatten at District 15
*Siglap - Roseburn, Frankel (bungalow class area)
*NTU area
*Serangoon Chomp Chomp area
Do not buy units that are either below or above road level (parking and fengshui issues)
(He bought his first semi-detached in 1990 when he was 27 years old about 3000sqf at only S$525K. Landed properties price will grow many more times with time.!!!)
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