Phantom 1 Report post Posted January 26, 2010 This month, I'm surprised to see that two ground floor units in Sembawang are demanding COV of 33K and 35K! I never expect ground floor units in wulu estates to command high COVs leh. And one high-floor unit is demanding 70K COV. oh well.. i wouldn't buy a ground floore unit, much less a premium for it. I'm not a sucker for high floors so it doesn't matter for me. I've got a fear of heights. lol. Share this post Link to post Share on other sites
musicbox 0 Report post Posted January 28, 2010 The COV is jolly well the result of demand and supply, not some cook up prices. Given the anticipated population of 6m in the coming years (about 20% more people) for the land scarce Singapore, there's only one way the valuation of flats and COV will go. In long term, HDB price will of course be higher, but if you're looking at short term like 5-10 years, I'm pretty sure the current price is going to be lower. Yes, demand and supply, why the current seller can ask for such a high COV even not added value in the house? Coz many are paying for the future price and indeed the current supply is not enough. But if you tour around the area, it is not difficult to see many new projects around. 3 years down the road, there'll be more new hdb can be sold in the resale market, and i don't think those 30 years old estate can still demand such a high COV (when there's a new block beside your old age hdb, who'll still want to pay high COV for your grandpa hdb?) Taking my area as example, currently my house can sell for a very high price, tat's because there're only 4 or 5 blocks in my area (other than the reasons of famous schools and near town). Ppl are willing to pay for such a price for my house becoz of the limited quantity of flats available at my area, but currently there're already new blocks building up around my area, I can see more trees were chopping down and 40 levels HDB were built up. 5 years down the road, all these hdb will be available in the second hand market, who will still want to pay high COV for my old flat (do contact me if you want to book it in advance, i'll be happy to sell it off and get a new flat)? Look at the time in 1996, the prices shoot up also becoz not enough supply (of course the issue here is a bit different), and those ppl who bot their hdb in a rush in 1996 only recover in 2007 and some were not even breakeven till now. I do agree that COV is a result of the demand and supply, but if you can wait, a 3-5 years wait will worth the it. P.s. there's always a period of price adjustment (supply will catch up demand....), and this period has not came yet..... Wish all luck in searching your dream home Share this post Link to post Share on other sites
Phantom 1 Report post Posted January 28, 2010 The last property cycle was different. Demand was local and asian buyers and the crisis was predominantly asian. This crisis although global, had less of an impact on local property prices. Share this post Link to post Share on other sites
musicbox 0 Report post Posted January 28, 2010 This crisis although global, had less of an impact on local property prices. That's becoz government is paying the companies to stop retrenchment..... Ppl just don't feel the difference b4 and after the crisis. From what I see, economy was not improving greatly, many companies profits are like 40% lesser and etc. But ppl just don't feel it..... Everyone is so optimistic about the economy, keep buying, I think those doing sales or in the front line will be aware of this. Even the government is afraid of the possible property burst, why are the ppl so optimistic about it? Share this post Link to post Share on other sites
