Property Views
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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? -
lee_yl\" post_id=\"1923849\" time=\"1564405413\" user_id=\"17023:
As I said, EC is for a different market segment.
I rather buy Waterway Point (right above MRT!) at $1,200-$1,300 than the Sumang Walk EC $1,080psf.ngl2010\" post_id=\"1923752\" time=\"1564378489\" user_id=\"40978:
For over $1,000psf, isn’t it better to invest in older condo with potential enbloc instead of buying EC?
For Watertown, a 2 bedder ~850 to 900 sq ft is ~$1.2m.
For Sumang Walk, the smallest 3 bedder ~ 850 to 900 sq ft will probably be ~$940k
That’s $250k or a quarter of a million dollars difference.
In addition, a EC attracts $10k to $30k family grant from Government for first-timer combined income less than $12k. There is no grant for private condo, it’s on your own.
For purchase of a EC, assuming the buyer qualify for 80% loan, it’s 5% of the purchase price using cash. The remaining down payment of 15% can be paid using cash or CPF. For private condo, the current max loan-to-value ratio is 75%. Option fee is 5%, remaining 20% using cash or CPF. Comparing the two, it’s additional 5% (in cash or CPF) on top of a higher quantum if you are buying a private.
Everyone would prefer traveling on SQ Business Class if money is not an issue, but not everyone can afford one. Sometimes, you have to settle for a more affordable Business Class (or Premium Economy Class) elsewhere. -
Wats the income ceiling for EC & HDB now ?
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