Property Views

[lee_yl]

I have been following the property market for district 11 and 12.


I notice that for the past 12 months, the rental market has weakened significantly. Just one year ago, the owners were still asking for high rental but willing to negotiate. This year, quite a number of landlords lowered their asking rental without any prompting, maybe they sense a weak rental market. There are plenty of brand new shoebox units (below 506 sqft) flooding the market. After deducting the maintenance fees, agent fees and taxes etc, return probably less than 3% pa.

For resale prices, the owners are still not willing to lower their asking prices. Going at the asking price, the rental is not enough to cover the mortgage payment.

[MrsKiasu]

Same here…I find that rental at D9 & D10 has dropped significantly. More badly hit ones will be the bigger units and those developments next to construction site. Their asking rental can be same or even lower than a smaller unit in the same development if the block is nearer to the construction site.


For bigger and newer development, sometimes can see that their rent psf is about the same as the older development that maybe has more facilities. But the selling price hor can be a few hundred dollars more psf plus their higher (?) maintenance fee, it can easily push the return to below the 3% level.

[TheAnswer]

That means not worth to invest in property now?

[MrsKiasu]

TheAnswer:

That means not worth to invest in property now?

Will still have good buy around...when the owner willing to release the unit at your asking price..

[sleepy]

Now I think buyers still waiting on the side line. Developers also not ready to lelong yet


The next blow will be when interest rate increases. More sellers selling, developers will become more realistic with prices too

[TheAnswer]

When that happens… Dun forget to scream for TA… TA dun wan to miss it…

[MyPillow]

sleepy:

Now I think buyers still waiting on the side line. Developers also not ready to lelong yet


The next blow will be when interest rate increases. More sellers selling, developers will become more realistic with prices too

i think a lot of investors are waiting for this day :evil:
thats why shoe box is soo soo oooo popular, some investors feel lower start cost n pinch.

i am thinking such smaller units will / may turn out to be Airbnb holiday rental :nailbite:

[TheAnswer]

Come on la…plenty of investors got ready cash… Stiff competition…

[Ikid]

lee_yl:

Assuming a 99-yr HDB and 99-yr condo bought about the same time.


First 40 years, 99yr condo should appreciate faster than HDB. But after certain years, with a short remaining lease, the 99-yr condo prices will depreciate to zero. HDB will never depreciate to zero.

If both kena enbloc, then definitely the private will earn more.

Thanks for your reply

[Ikid]

starlight1968sg:

Ikid:

Can someone share your views, is it true private condo (99-years) will have a better capital gain as compared to a 99-year HDB flat?

Not sure if am answering your qn;
a 1st hand 5rm hdb flat bought in say late 1990s cost abt 200k, is probably worth 500k now. So the gain is > than 100%.
Can a private condo also gain such?

Thank you
So it sounds like is worth to keep the HDB afterall.