Property Market Boom Bubble?

[leen 2]

dunno gd or bad news to flat buyers. refer to the story below:

http://sg.news.yahoo.com/cna/20080411/tap-...61-231650b.html

Channel NewsAsia - Friday, April 11

SINGAPORE: The Housing and Development Board (HDB) said build—to—order (BTO) flats will constitute the main supply of new flats going forward.

HDB also plans to build another 5,000 units under this scheme, between now and September 2008.

The move comes as HDB’s stock of unsold flats is progressively being taken up.

During the days of excess supply of HDB flats, there were over 25,000 ready—built flats waiting for buyers. But now, that number has shrunk to about just 1,300 units.

To avoid an over—supply, HDB said it’s looking to the BTO scheme which was launched in 2001. So construction will begin only when the majority of planned units have been booked.

This means home—buyers will have to start planning ahead, as the flats take about 3 years before they are ready.

Between now and September, HDB plans to offer another 5,000 BTO flats. These will be in areas like Punggol, Sengkang, Woodlands and Bukit Panjang.

With the latest addition, the total number of such flats, for the first nine months of this year, will be increased to 6,100. This is higher than the number launched in each of the previous two years — 6,000 BTO flats in 2007 and 2,400 in 2006.

HDB will provide more details of these projects when they are launched.

As for the remainder of unsold flats, HDB said from July, these will be offered under a revised sales exercise under the combined balloting/walk—in system which will see more flats offered for sale in quarterly and half—yearly intervals.

All 4—room and bigger flats will also be pooled under a single launch. Sales of these units currently take place by sector — North & West, Northeast, and Established Towns. The timing of such exercises will also be changed so that more flats will be offered under each sale.

Unsold 3—room and smaller units will be released once a quarter, instead of once a month currently. Larger flats — 3—room premium and bigger — will be sold every six months starting this October, instead of bi—monthly.

Priority will be given to first—time homebuyers. 90 percent of unsold flats will be allocated to this group, which will also enjoy a double chance over regular applicants, for a place in the queue.

"This new scheme (does not) favour second—timers. So if I’m a second—timer, I’ll have very little chance if I go to the 6—monthly selection. So my only other chance is to go to the resale market to buy my flat," said Eugene Lim, Assistant VP of ERA Realty Network.

But analysts said, with prices in the resale market still out of the reach for many home—buyers, BTO flats remain the cheapest option for them. — CNA /ac/ls

[Flimflam 0]

Initially I wanted to wait till I am 35 to get a flat. Then I start doing research on flats and a bit on private apartments. Then I realised the prices went up and up. Too fast for me to react as I wasn't really ready to buy at that time.

Now it's too late for me to buy as I believe prices have peaked. Of course, there are beliefs that it can still go higher but I wouldn't want to harbour that thought.

As I am still not 35 yet, I can still wait and see. When I am 35 next year, then I will have to re-evaluate if the prices have dropped and whether I should get a flat or private apartment.

Worse come to worse, I will continue to stay with my parents till prices are right or I just buy a 3 room flat so that losses, if any, could be minimised.

Singapore property market, cannot afford to wait so long. If you see the right price and right place, must write the cheque and give it to seller right away. We bought our 4 'I' in December/06 and barely 7 months later, we were getting offers in excess of $100,000 of what we paid for it. It is a top floor unit just outside CBD, unblocked panoramic views. We turned down all offers, saying we will never leave our place.

If we had decided to wait then (Dec. 06), we would have to shell out much more money to buy, and even then, cannot get a place as nice as this one.

[Starscream 0]

Buying to a home to stay is ok as long we buy within our reach & means. Buying with a view to appreciation in value and profit in the long run is quite another thing to consider when entering the market

[icer 0]

Prices should be dropping anytime now? Some property agents were briefed by their companies that the prices will be dropping towards the 2nd half of the year.

[lander 0]

Prices should be dropping anytime now? Some property agents were briefed by their companies that the prices will be dropping towards the 2nd half of the year.

i think price will drop abit for some condo properties, especially the very high-end & small delevelopment ones. But even when it drops ,it will not fall much.

[icer 0]

Quick lor!!!

[raincole 0]

I always think that we are paying a future price for property purchase.

Don't get me wrong, I think properties are a fine way of making money, only thing is if no loan or little loan is utilized, it makes sense to make gains on capital and on rental.

On the other hand, if my place cost me 1.5m and the rental yield is 6k a month that's 4.8%p.a. (before taxes and fees)- that's not really attractive in my opinion.

so in that aspect, its not really a good investment. similarly, the interest payable over the 2years to 3 years to "wait out the market" and get a good price also eats into the potential gain.

Its only in my personal opinion that properties make money in the following scenarios

1) Little or no loan is taken

2) buying at cyclical troughs (lows)

3) holding on longer term.

people who make money flipping in my humble opinion are just lucky to be at the right place at the right time.

How you calculate the rental yield of 4.8%? interested to know

[wusha 0]

Hi, my friend just bought a unit near biopolis at buona vista, he said is a good buy now. But looking at mkt inflation and property mkt slow down , some speculators let go and sell their investment properties . My friend told me it is the right time to enter the mkt , if not , will miss out the good deal as mkt will pick up in a short time. Did anybody bought any investment property recently ? Can share any potential investment ? Thanks in adv.

[Phantom 1]

How you calculate the rental yield of 4.8%? interested to know

lol.. depends on the loan you take, minus all fees..

[Flimflam 0]

Hi, my friend just bought a unit near biopolis at buona vista, he said is a good buy now. But looking at mkt inflation and property mkt slow down , some speculators let go and sell their investment properties . My friend told me it is the right time to enter the mkt , if not , will miss out the good deal as mkt will pick up in a short time. Did anybody bought any investment property recently ? Can share any potential investment ? Thanks in adv.

When people are stuck after making a bad decision, they will go out and try to rationalize their mistake. I think your friend is one of these people. For example, I know one friend who works as property agent. For past 3 months, he has been saying market is good. Even now, when all sales(private property) have slumped by 95%, he still says market is good. How to believe this type of people? He is either a liar, or he lives in a dream world. Either way, you do not want to believe this type of people.

[icer 0]

Agree with you totally.

BT said that the prices will drop 40% in the next 2 years so I don't think it's a good time to enter now. Wait for another year will be good.

If all of us stop buying now, the prices will drop faster and prove these people wrong.

I also talked to a high level person working in Real Estate Company. He said that they are witholding some projects now cos the price is not good. He said it's good time to enter now as prices have dropped a little. He said the prices might go up in a short time.

I chose not to believe him as he is doing properties. If everyone believe him, then they can revive the property market.

It's a waiting game between the buyers and sellers.

When people are stuck after making a bad decision, they will go out and try to rationalize their mistake. I think your friend is one of these people. For example, I know one friend who works as property agent. For past 3 months, he has been saying market is good. Even now, when all sales(private property) have slumped by 95%, he still says market is good. How to believe this type of people? He is either a liar, or he lives in a dream world. Either way, you do not want to believe this type of people.

[wusha 0]

When people are stuck after making a bad decision, they will go out and try to rationalize their mistake. I think your friend is one of these people. For example, I know one friend who works as property agent. For past 3 months, he has been saying market is good. Even now, when all sales(private property) have slumped by 95%, he still says market is good. How to believe this type of people? He is either a liar, or he lives in a dream world. Either way, you do not want to believe this type of people.

Yup, i agree , totally not sure who is right. But based on the prices of construction materials keep going up, developers will also not going to lower down their prices . When i ask pp working in banking & property line , they all still said good . It seems like property mkt is uncertain, i think i need to monitor it for a while.

[Phantom 1]

wusha, i appreciate if you don't generalize.. lol.. i don't think the property market is good..

[Yang Guo 7]

this thread too chim..hehe.

to me, Singapore property will bubble meh? nowadays demand is so many times higher than supply. And inflation is so high, so the cost of building up property is so high also. So the property market will not bubble so soon.

If really property market bubble, then the how to meet the demand of so many couples who wants to get a flat?

eh..i dont know actually. This is my silly thinking. dont flame me =p

2 years ago people say property market bubble

2 years later people say property market bubble..

btw bubble can mean the share price of property? Eg REITS? if share price of property, i agree, will bubble..

but in general for the property in spore, the value of the flat/property will be more and more exp right?

[falc 0]

btw bubble can mean the share price of property? Eg REITS? if share price of property, i agree, will bubble..

but in general for the property in spore, the value of the flat/property will be more and more exp right?

There was a property bubble in the late 1990s. It burst and only recovered in the recent run. That's why some were saying it's a 10 years cycle.