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 SG Properties prices going up?

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Khorkar
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PostSubject: SG Properties prices going up?   Wed Jun 24, 2009 11:12 pm

Was reading ST that properties prices going up again. Seow ah, it bare come down, now it is going up again. Wah liao.
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Lamts18
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PostSubject: Re: SG Properties prices going up?   Wed Jun 24, 2009 11:14 pm

Herd instinct.... be careful.... we are still in a storm.... stay cheerful and play more golf.. active lifestyle.... Very Happy
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 12:22 am

What's driving it up? Economy is still in a sorry state (at least the global economy). I think it's just temporary, and will drop again.

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Khorkar
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 12:26 am

Largely driven by private properties. Nevertheless, the recent turn is the dip in HDB pricing, in fact, the evaluation has gone up. I too are puzzled...

May be it is psychological news churned up by property agents or even push by new and more expensive HDBs.
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katherinechiok
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 12:47 am

heng i no money to consider getting any property. only in RC i'm loaded. hahaha..
i will wait till i'm 35 then get HDB FLAT. ROFL

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missmoon
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 12:48 am

katherinechiok wrote:
heng i no money to consider getting any property. only in RC i'm loaded. hahaha..
i will wait till i'm 35 then get HDB FLAT. ROFL

when you are 35?? TEN YEARS LATER lei.. still a long way to go man...
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katherinechiok
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 12:59 am

missmoon wrote:
katherinechiok wrote:
heng i no money to consider getting any property. only in RC i'm loaded. hahaha..
i will wait till i'm 35 then get HDB FLAT. ROFL

when you are 35?? TEN YEARS LATER lei.. still a long way to go man...

suddenly i realise .. I LOVE YOU MOON!

Face Hug
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nientsu
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 7:59 am

10 years meh.....don look like leh.....

hmmmm....i might be wrong...
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siaw8
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 9:40 am

IMO, prices of private condo in the more centralized area is unlikely to go much below the SGD 1000 psf benchmark. Reasons - 1)Private condo's pricing are supported by the HDB pricing and the HDB pricing is fixed by the govt whom is unlikely to reduce the pricing to prevent the majority of the population going into the negative equity territory. Thus, if HDBs in suburb area are transacted at 400-500 psf, suburb condos will naturally be priced at the 600 - 800 with centralized located ones at the 1000 min. 2) The breakeven cost of most of the new projects are rather high. Just to put things in perspective, most of the lands over the last few years were acquired at the price of SGD 400 - 800 psf depending on the location. Thus, if you add another 100-200 psf of construction cost, the breakeven cost for most project is at the range of SGD 500 - 1000 range. Thus, unless the developers are willing to suffer a loss, they are unlikely to price the condos much lower which i dun think they will as most of them are very well supported by the banks and significant reserves built up over the couple of years. Of coz, there are some kuching kurak developers who are under tremendous stress from the bankers to sell their projects but as you may see, there are few and far in between. 3) Singaporeans are very cash rich from the boom over the last few years from the en-blocs sales and the influx of foreigners who have bought housing in Singapore at a super inflated price. These group of people are the ones that have been snapping up the condos recently. In additional, many foreigners still perceive Singapore as a good place to live and to bring up their kids, ie Jet Li and thus are waiting to buy a housing to set up a family here. 4) the recent stock market has improved sentimental tremendously and many companies have taken the opportunity to raise money equity. This is turn makes banks more comfortable with the companies and as a result more willing to lend money. This upturn in market might just prove to be what is required to stop the rot as companies now have a warchest to acquire under valued assets or expand their business. This will trigger a multiplier effect. Thus unless there comes another shocking episode like the Lehman and Bears last year, i dun think the economy will worsen. Most probably, we will see a U shape recovery from here.

In short, i personally dun think prices will fall much, but similarly i wun bet on it going up much. however, the pricing for the one devonshire is crazy!! 1800psf!!!
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 1:25 pm

siaw8, can use paragraphs or not? I've lost my ability to follow your post after the first 2 lines Razz

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X-Man
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 2:43 pm

siaw8 wrote:
IMO, prices of private condo in the more centralized area is unlikely to go much below the SGD 1000 psf benchmark.

Reasons -

1) Private condo's pricing are supported by the HDB pricing and the HDB pricing is fixed by the govt whom is unlikely to reduce the pricing to prevent the majority of the population going into the negative equity territory.

Thus, if HDBs in suburb area are transacted at 400-500 psf, suburb condos will naturally be priced at the 600 - 800 with centralized located ones at the 1000 min.

2) The breakeven cost of most of the new projects are rather high. Just to put things in perspective, most of the lands over the last few years were acquired at the price of SGD 400 - 800 psf depending on the location.

Thus, if you add another 100-200 psf of construction cost, the breakeven cost for most project is at the range of SGD 500 - 1000 range.

Thus, unless the developers are willing to suffer a loss, they are unlikely to price the condos much lower which i dun think they will as most of them are very well supported by the banks and significant reserves built up over the couple of years.

Of coz, there are some kuching kurak developers who are under tremendous stress from the bankers to sell their projects but as you may see, there are few and far in between.

3) Singaporeans are very cash rich from the boom over the last few years from the en-blocs sales and the influx of foreigners who have bought housing in Singapore at a super inflated price.

These group of people are the ones that have been snapping up the condos recently. In additional, many foreigners still perceive Singapore as a good place to live and to bring up their kids, ie Jet Li and thus are waiting to buy a housing to set up a family here.

4) The recent stock market has improved sentimental tremendously and many companies have taken the opportunity to raise money equity. This is turn makes banks more comfortable with the companies and as a result more willing to lend money.

This upturn in market might just prove to be what is required to stop the rot as companies now have a war chest to acquire under valued assets or expand their business. This will trigger a multiplier effect.

Thus unless there comes another shocking episode like the Lehman and Bears last year, i dun think the economy will worsen. Most probably, we will see a U shape recovery from here.

In short, I personally dun think prices will fall much, but similarly I won't bet on it going up much. However, the pricing for the One Devonshire is crazy!! 1800psf!!!
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Technospaz
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 2:43 pm

LOL! Thanks Smile

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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 2:48 pm

Technospaz wrote:
LOL! Thanks Smile

Heh... you're welcome....

Cheers
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siaw8
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PostSubject: Re: SG Properties prices going up?   Thu Jun 25, 2009 4:39 pm

Thanks.
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