Property Views
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lee_yl\" post_id=\"1923622\" time=\"1564362505\" user_id=\"17023:
:yikes: and first time hear Sumang lrt..
Last year during one of the property courses I attended, the speaker speculated that next year (referring to 2019) new EC would likely cross the $1K psf mark.
True enough, I read on today’s papers that a new EC, Piermont Grand, 3 min walk to Sumang LRT, was launched over the weekend at $1,080psf. The 1st EC that is launched above $1K psf. -
lee_yl\" post_id=\"1923622\" time=\"1564362505\" user_id=\"17023:
It is not speculation nor was it due to the speaker’s precog ability. It’s based on the land price of $583 psf ppr that CDL-TID paid. In order not to lose money, CDL has to sell above $1k psf and possibly closer to the $1.1k psf.
Last year during one of the property courses I attended, the speaker speculated that next year (referring to 2019) new EC would likely cross the $1K psf mark.
True enough, I read on today’s papers that a new EC, Piermont Grand, 3 min walk to Sumang LRT, was launched over the weekend at $1,080psf. The 1st EC that is launched above $1K psf.
Next year (2020), you will see similar prices. Anchorvale EC plot has a top bid of $576 psf ppr while Canberra Link EC plot has a top bid of $566 psf ppr. Both projects will have to sell above $1k psf. -
If the property market is dead, the developer has no choice but to price it cheaply (BELOW $1K) to get rid of all the units.
The last quarter, private property market inched up 1.5%, which possibly gave the developer an additional boost of confidence to go ahead to sell above the $1Kpsf mark.
On the other hand, HDB resale prices continue to slide, with 0.2% drop in the previous quarter -
lee_yl\" post_id=\"1923629\" time=\"1564364106\" user_id=\"17023:
If property market is dead, you would even be seeing this type of bid price by the developer. EC is a different market and appeal to a different group of buyers (compared to private condo).
If the property market is dead, the developer has no choice but to price it cheaply (BELOW $1K) to get rid of all the units.
The last quarter, private property market inched up 1.5%, which possibly gave the developer an additional boost of confidence to go ahead to sell above the $1Kpsf mark.
On the other hand, HDB resale prices continue to slide, with 0.2% drop in the previous quarter
FYI, the EC launch before Sumang plot was Rivercove Residences EC in Anchorvale (2018). Average selling price: $965 psf. Land price: $355 psf ppr. Another upcoming EC next year is Tampines Ave 10. Land price: $578 psf ppr. With Anchorvale, Canberra and Tampines, you can see what the trend is heading. -
Sumang walk EC land bidding took place in Feb 2018 and that was before the cooling measures kicked in in July 2018. That explains the high land price.
I don’t think buying sentiment has nothing to do with ECs. After the 1997 crash, market was really dead quiet, retrenchment everywhere, and for many years, govt actually stopped selling land for ECs! -
lee_yl\" post_id=\"1923656\" time=\"1564367483\" user_id=\"17023:
Sumang Walk - $583 psf ppr (Feb 2018)
Sumang walk EC land bidding took place in Feb 2018 and that was before the cooling measures kicked in in July 2018. That explains the high land price.
I don’t think buying sentiment has nothing to do with ECs. After the 1997 crash, market was really dead quiet, retrenchment everywhere, and for many years, govt actually stopped selling land for ECs!
After cooling measure (July 2018):
Anchorvale - $576 psf ppr (Sep 2018)
Canberra Link - $558 psf ppr (Sep 2018)
Tampines Ave 10 - $578 psf ppr (Jan 2019)
Expect prices to hold around $1k psf. -
People have short memories and often forget that markets usually hit a peak before a crash. Developers could bid high for land but there’s no guarantee that they could sell for a profit. So a high selling price is a sign of healthy demand but a high bidding price may not mean much beyond providing an indication of developers’ confidence and perhaps reflect a low interest environment
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jho48109\" post_id=\"1923737\" time=\"1564376370\" user_id=\"165799:
That’s why EC is a different market from private condo. You can’t ‘invest’ the same way you do for a private condo, given the MOP conditions and resale restrictions after 5 years.
Agreed!! It's always good to check the market first before investing on real estate.lee_yl\" post_id=\"1923729\" time=\"1564374877\" user_id=\"17023:
People have short memories and often forget that markets usually hit a peak before a crash. Developers could bid high for land but there’s no guarantee that they could sell for a profit. So a high selling price is a sign of healthy demand but a high bidding price may not mean much beyond providing an indication of developers’ confidence and perhaps reflect a low interest environment
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For over $1,000psf, isn’t it better to invest in older condo with potential enbloc instead of buying EC?
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ngl2010\" post_id=\"1923752\" time=\"1564378489\" user_id=\"40978:
I rather buy Waterway Point (right above MRT!) at $1,200-$1,300 than the Sumang Walk EC $1,080psf.
For over $1,000psf, isn’t it better to invest in older condo with potential enbloc instead of buying EC?
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