Is it a good timing to buy resale flat now?

[stonefish35]

this mah screw up the whole property market. worse, he screw up many Singaporean couple's dream.

BTO 95% for first timer, too late to savalge the situation. he screw up big time.

:thumbsup:

My sentiments. There is 2 immediate actions that can correct the imbalance immediately. But will stir up unhappiness among those who paid HIGH COV for their resale, and those who paid alot for their BTO, which I am 1 of them.

When I book my 4-rm 91sqm BTO flat, I thought I'm paying alot at 270K for a high floor unit, 10-15mins walking to mrt. Now , the prices are crazy,but they are flashing stats that its still within 30% of median household income, in line with global stats.

1. Revert back to cost plus pricing strategy for BTO flats,instead of the mkt price minus.
2. Make COV illegal.

Resale prices will crash,we will see a repeat of 1991 issue.
But none of the above will happen during my lifetime I guess.

 

[tokrot]

My guts feelings tell me that HDB is responsible for all these hikes? Why? They said they need to supply more flats to cup the demands which is ok until they put up 4 room 300 to 350K or above. Now someone tell me whether this make sense? If you buy the flat and sell it years later isn't it gonna be much higher than the current price u bought? So you probably be expecting your flat be selling at 400K +?? COV. Is HDB helping?

Answer is NO...;(

 

[wildcat]

My guts feelings tell me that HDB is responsible for all these hikes? Why? They said they need to supply more flats to cup the demands which is ok until they put up 4 room 300 to 350K or above. Now someone tell me whether this make sense? If you buy the flat and sell it years later isn't it gonna be much higher than the current price u bought? So you probably be expecting your flat be selling at 400K +?? COV. Is HDB helping?

Answer is NO...;(

It's a cycle that really needs to be thought through thoroughly. Imagine now government start building 4 room flats in prime areas for $150k. Resale market crashes. Who will benefit?

Ultimately, it boils down to human greed. We put money in, we stay for free, we still want to make money out of it. No? Government policies are there to stop us from being too greedy... no one saying Government itself also not greedy but that's another story. :sweatsm:

 

[alantkh]

1. Revert back to cost plus pricing strategy for BTO flats,instead of the mkt price minus.
2. Make COV illegal.

Resale prices will crash,we will see a repeat of 1991 issue.
But none of the above will happen during my lifetime I guess.

errr.... I don't think any sane people will implement the above two...

Actually there is one good method of dropping the resale price but singaporeans are too myopic for the government to implement.

1) to let first timer PRs apply for BTO (at a higher price than citizens) and ramp up supply accordingly

Seriously, I don't understand why the HDB is taking its own sweet time to ramp up BTO since there is no risk of left over flats.

 

[Reno]

i think the next generation need to apply for flat when they in uni already... oh wait, do they know who is they lifelong partner? must pay 5%

They are already doing it now... somemore if combined income do not hit 5k a month, they can get additional "discount"...

 

[jgjonathangoh]

applying for a flat when they are in uni.. if my former gf do hear about that, she will says its a males conspiracy to unromanticize marriage proposal! haha

making COV illegal is wrong. It is the COVs that help rise the prices of apts. eg, a 50k above valuation unit was sold at 500k, the next owner that sells a similar apt would have a better chance of having the bank matching the selling price of 500k! If COVs are illegal, prices will forever be stagnant, maybe only slight movement due to deco of units.

But do you know the government themselves are profiting from this? My cousin just bought a 4rm HDB in bishan from HDB themselves. you know how much he paid? 550K!! and to think HDB had a report saying there is a 2 billion dollar deficit. wonder how they managed such creative accounting.

 

[alantkh]

But do you know the government themselves are profiting from this? My cousin just bought a 4rm HDB in bishan from HDB themselves. you know how much he paid? 550K!! and to think HDB had a report saying there is a 2 billion dollar deficit. wonder how they managed such creative accounting.

I don't know why would govenment want to advertise the 2billion deficit everytime. I mean it just goes to show how inefficient they are. Wasting taxpayers money.....

 

[victorlee10]

I don't know why would govenment want to advertise the 2billion deficit everytime. I mean it just goes to show how inefficient they are. Wasting taxpayers money.....

It's a justification for them to charge more, raise gst, raise income tax, extend retirement age, reduce cpf interest rate etc etc.

 

[dreaming]

HDB to build more new flats for first-timers: Mah Bow Tan
By Sharon See | Posted: 25 July 2010 2009 hrs

SINGAPORE : National Development Minister Mah Bow Tan said more new HDB flats will be built for first-time applicants, so as to relieve the pressure on the resale market.

He said this at a grassroots event celebrating the HDB's 50th Anniversary on Sunday.

It is the last leg of a series of events HDB has been conducting in the heartlands.

The "Storeys of Our Homes" exhibition celebrates 50 years of public housing.

And with HDB resale flat prices hitting new highs recently, causing cash-over valuation (COV) to go up, Mr Mah made the promise to push out enough flats for first-time home buyers.

His advice for them is to go for new flats, where there is no COV.

"What HDB is going to do is to build more new flats for first-timers, so this will help take care of the first-timer market, and that will help to reduce some pressure on the resale flat market. So over time, the resale flat market will stabilise. I think at this point in time, there is still an imbalance," said Mr Mah.

Mr Mah expects HDB to offer a record number of some 18,000 new flats this year.

Of these, 16,000 will be from the Build-To-Order (BTO) exercise.

And he said 95 per cent of the new flats will be for first-timers, while the remaining 5 per cent of new flats will be for second-timers.

"It is the second-timers, upgraders and downgraders who have to go into the secondary resale flat market," Mr Mah said.

He continued: "If you are a first-timer buyer, there's more than enough flats for you. But if you are a second-timer, obviously you have to compete in the market with the first-timers and others.

"This equilibrium in the prices will be reached at some point in time in the medium term as we push out this supply. So I would expect in another year or so, it should be able to stabilise everything."

Mr Mah added demand for flats depends on the economy.

Singapore's economic growth was strong in the first half of the year, but it may slow down in the second half.

However, he said three years is the "norm" waiting time for new flats.

Those who do not want to wait have other options, such as resale flats. But he added this is one reason resale flats are more expensive, as the "cost difference reflects the time difference". - CNA /ls

 

[dreaming]

HDB resale prices hit record high again rising by 4.1% in Q2
By Joanne Chan | Posted: 23 July 2010 1318 hrs

SINGAPORE: DB resale flat prices have hit record highs again. Prices rose by 4.1 per cent in the second quarter of 2010 compared with the previous quarter. This makes it the fifth straight quarter of increase.

The HDB resale market continues to attract keen interest. Analysts said the demand is driven by those who don't qualify for a new flat or want a flat quickly.

These are the singles, permanent residents, flat owners who want to upgrade or downgrade and married couples who can't wait three years for a new HDB flat.

Chris Koh, director, Dennis Wee Group, said: "Private property prices are very high today and because it's so high there are a lot of people who are now turning to the HDB market.”

The high demand also sent the cash-over-valuation or COV upwards.

96 per cent of transactions in Q2 were above valuation.

Mr Koh added: "A lot of people who are selling their HDB flats today are cashing out, with S$100,000 to S$200,000. So for example, if you ask them to put down a COV of S$50,000, for the next flat they buy, they wouldn't mind."

Cash-over-valuation (COV) is the cash premium paid on top of a flat's valuation.

According to the latest data from HDB, the median COV is now some S$30,000 for all resale transactions. But market watchers said the market could be reaching a threshold soon.

That's because of a ruling introduced in March 2010 requiring home buyers who want a second HDB loan to plough back half their cash profits from the sale of the first flat.

Mohd Ismail, CEO, PropNex, said: "Even if anyone who makes a S$100,000 profit, you have to plough back S$50,000 into the new flat and you're only left with S$50,000. And with that S$50,000, if you pay a high COV of S$40,000, you are left with nothing."

Mr Ismail added that the market is showing signs of resistence and expects the COV to hit a threshold of S$40,000.

Market watchers noted that many buyers and sellers now treat the COV as part and parcel of any resale transaction.

And this is not healthy for the market in the long term.

Mr Ismail added: "During the previous peak in 1996, there were people who paid well above S$100,000 COV for a house. We had a house at Yishun, valued at S$510,000, and somebody paid S$135,000 cash. Today, even though the HDB prices are at their peak, in terms of price index, such houses are still below water."

Given the positive economic outlook, analysts expect prices to continue climbing.

The Housing and Development Board (HDB) said it'll ensure that there's an adequate supply of new flats for first-time buyers.

In the first six months of 2010, HDB launched close to 9,000 Build-To-Order (BTO) flats, which is the number of BTO flats launched for the whole of last year.

Another 7,200 BTO flats will be launched in the second half of 2010, bringing the total BTO flat supply for 2010 to 16,000.

This is an increase of 80 per cent over the previous year.

HDB said the BTO projects in the second half of the year will enjoy a good geographical spread in towns such as Woodlands, Yishun, Punggol and Sengkang.

For this month, flat buyers can look forward to about 1,000 BTO flats in Jurong West and Bukit Panjang. - CNA/vm

 

[scanner]

I don't know why would govenment want to advertise the 2billion deficit everytime. I mean it just goes to show how inefficient they are. Wasting taxpayers money.....

You are wrong. If I am not wrong, quite a hugh sum of the money is use to pay for the land.... left pocket to right pocket.

So technically HDB is loosing money, but government is earning more, as HDB is paying for land at market rate and selling HDB at discounted price which is higher than previous. This kind of business sure earn $$. :devil:

 

[ninelives]

Mr Ismail added: "During the previous peak in 1996, there were people who paid well above S$100,000 COV for a house. We had a house at Yishun, valued at S$510,000, and somebody paid S$135,000 cash. Today, even though the HDB prices are at their peak, in terms of price index, such houses are still below water."


nonsense, what about those people with normal or average income ?? dont compare rich and the poor.

sigh, what are they thinking....

 

[Haze]

That ah pek agent is not testing water, he is making people nervous and wants them to place a deposit. This is one of the common tactics. One way to bring down the house price is to examine the house and point out all the faults especially those lightings and stuffs in toilets.

How old is the flat? if it is around 30 years, don't bother. The renovation will cost you a big bomb unless you do not have to renovate.

I think the flat is between 30-40yrs old..

 

[Haze]

Resale flats are way tooo EX. i just ballot for the BTO in punggol. 4 room ard 400k. it's just next to punggol mrt. but i think chances are slim la, cuz the ratio is 18:1. hahahaha

What.. is it typo error? 4room for 400k????

 

[dreaming]

400k is for the 5room at the waterway terraces bto.

 

[Haze]

400k is for the 5room at the waterway terraces bto.

400k for a 5room still quite ex leh.
i thought 4 room cost around 250k only.

BTO have grant for first timer?

 

[ninelives]

for those who ask why old is more expensive , :



resales flats are more expensive because they are bigger than new flats. and old flats that are at convenient places will be ever more expensive. for example clementi.

new flats are usally smaller and very far away from the town. if new flats are more expensive and yet smaller than old flats, who will want to buy..when i said small i mean really small...if you have been searching for flats you know what i mean.

 

[photobeginner]

400k for a 5room still quite ex leh.
i thought 4 room cost around 250k only.

BTO have grant for first timer?

Good times, bad times or right time?

Actually whether it's a good or bad time depends on where & what you are buying.

 

[Galdor]

400k for a 5room still quite ex leh.
i thought 4 room cost around 250k only.

BTO have grant for first timer?

I got my previous 4 rm flat at about that price about 8 years back.
Yes, there is grant for 1st timer if you are buying resale flats and near parents.

 

[lichtleiter]

Looks like I'm the one of those who got lucky. Managed to get a q#23x at BTO on my first try. Book level 5 (252k) cos higher floors were taken ard. The unit is 2min walk from bus stop and next to fairprice and plaza. In between two MRT stations. Approximately 15min walk from either stations. There's a nearby pcf, primary and secondary school which is perfect for my kids. But estimated occupancy is at Jan 2015. Should be enough time to fork up for renovation cost.

Can anyone advise what is the condition of BTO flats?
Are the floor tiles, toilet seat, sinks , electrical outlet, sockets, faucets, etc installed?
How much renovation should be done and how would it cost for a 4-room renovation?