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Number of returned condos highest in a year, says property research firm

SINGAPORE - The number of returned condominiums is at its highest in about a year, according to property research firm Square Foot Research.

Data shows there were 152 units returned in April. This slightly pips the previous high of 150 units returned in May 2012.

It also brings the total number of units returned for the first four months of this year to 415, about 10 per cent higher than the same period in 2012 - there were 378 units returned in the same period last year.

Buyers who choose to return their units have to forfeit 1.25 per cent of the property’s price.

http://www.todayonline.com/business/prop...earch-firm

Is it sign of property flippers can't flip in time anymore(can't find buyers in time)? If it is , bad "omen" leh! Then what's next? The stock markets?

I think right now, the condo market in Singapore is at a fairly valued situation. Lets take an example of one of the new launch condo now, just received an sms for a Urban Vista 4 bedroom (abt 1050Sqft) selling for $1.2M assuming add on fees etc should be 1.25M. If one buys it now, he will get it probably in 2016. it is a 99 years lease FYI. This works out to a rental yield of 3.3% (current rental is abt 3.5k in the area)or assuming there is a 20% drop of rental rates, the yield will go down to 2.6%.

So for any property with a gross yield of 2.6-3.3% range, it is an ok investment and just about manageable IF a 15k income Household purchases it as a second property investment. though I would still recommend equities. But the biggest winners are Fragrance & Aspial, the property developers.

This is not a post to buy or sell private properties

it is coming in a few years time - be patient

No buyers at current prices does not mean no buyers at lower prices.

There remains pent up demand at lower prices for people who have missed out.

So long as economy keep humming along and politically stable, Singapore property demand will continue to be underpinned by employed local people and wealthy foreigners looking for safe haven.

Corrections though are imminent since government's supply to calm society's concerns is already in the pipeline. As the current standoff is after 7 rounds of anti-speculation measures, at the right levels we can trust that these measures will be lifted progressively and stability will be restored.

Patience is titanium especially when everyone fears for the Titanic. No worries just be rational and sensible.

Only the greedy blokes need to be sleepless.

Not Vested

R

(25-05-2013, 02:39 PM)Temperament Wrote: [ -> ]Is it sign of property flippers can't flip in time anymore(can't find buyers in time)? If it is , bad "omen" leh! Then what's next? The stock markets?

Nowadays cannot flip liao. Will incur 16% seller's stamp duty.

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(25-05-2013, 03:40 PM)CY09 Wrote: [ -> ]I think right now, the condo market in Singapore is at a fairly valued situation. Lets take an example of one of the new launch condo now, just received an sms for a Urban Vista 4 bedroom (abt 1050Sqft) selling for $1.2M assuming add on fees etc should be 1.25M. If one buys it now, he will get it probably in 2016. it is a 99 years lease FYI. This works out to a rental yield of 3.3% (current rental is abt 3.5k in the area)or assuming there is a 20% drop of rental rates, the yield will go down to 2.6%.

So for any property with a gross yield of 2.6-3.3% range, it is an ok investment and just about manageable IF a 15k income Household purchases it as a second property investment. though I would still recommend equities. But the biggest winners are Fragrance & Aspial, the property developers.

This is not a post to buy or sell private properties

I think that a yield of 3.3% is far too low to support any investment properties, unless you are very optimistic in renting it out 12months a year throughout the holding period.

(25-05-2013, 10:20 PM)NTL Wrote: [ -> ]R

(25-05-2013, 02:39 PM)Temperament Wrote: [ -> ]Is it sign of property flippers can't flip in time anymore(can't find buyers in time)? If it is , bad "omen" leh! Then what's next? The stock markets?

Nowadays cannot flip liao. Will incur 16% seller's stamp duty.

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(25-05-2013, 03:40 PM)CY09 Wrote: [ -> ]I think right now, the condo market in Singapore is at a fairly valued situation. Lets take an example of one of the new launch condo now, just received an sms for a Urban Vista 4 bedroom (abt 1050Sqft) selling for $1.2M assuming add on fees etc should be 1.25M. If one buys it now, he will get it probably in 2016. it is a 99 years lease FYI. This works out to a rental yield of 3.3% (current rental is abt 3.5k in the area)or assuming there is a 20% drop of rental rates, the yield will go down to 2.6%.

So for any property with a gross yield of 2.6-3.3% range, it is an ok investment and just about manageable IF a 15k income Household purchases it as a second property investment. though I would still recommend equities. But the biggest winners are Fragrance & Aspial, the property developers.

This is not a post to buy or sell private properties

I think that a yield of 3.3% is far too low to support any investment properties, unless you are very optimistic in renting it out 12months a year throughout the holding period.

Yes! Now is for people with deep pockets and intend to hold the property for long term; Even if rental market looks discouraging. But why want to buy now with all the "restrictions & penalties"?

(25-05-2013, 03:40 PM)CY09 Wrote: [ -> ]I think right now, the condo market in Singapore is at a fairly valued situation. Lets take an example of one of the new launch condo now, just received an sms for a Urban Vista 4 bedroom (abt 1050Sqft) selling for $1.2M assuming add on fees etc should be 1.25M.....

Excuse me, but if someone has 1.25 million SGD , wouldn't have better retiring in a cheap retirement place like Thailand or Cambodia rather than sinking it into a Singapore condo to continue the rat race ?

Deciding where to retire involves many other factors besides monetary. A few factors to consider are 1) The dislocation a couple will experience when moving (psychology and sociological factors such as social ties you have formed, 2) Security, 3) trust in the society you intend to move to, 4) the education and quality of life you wish to have for your kids, 5) proximity with grandkids and many other more reasons

To summarise, retiring in Singapore or out of Singapore is a personal preference. For me with 2M (my aim is actually 3M), I will still want to retire here (ironic that I am considering retirement even though I have not worked yet). Furthermore, I do know of many retirees whose net worth are 7 digits and are in Singapore leading a retiree life, though they do go overseas for a week trip.

As for the statement of a condo and rat race, some people do try to own a second condo with reasons of passing on to their children for fear of escalating housing prices and giving them a good life when they grow up. So while their kids are still 14 and living with them, these parents make use of their second property as rental income

(26-05-2013, 02:28 PM)Gaudente Wrote: [ -> ]

(25-05-2013, 03:40 PM)CY09 Wrote: [ -> ]I think right now, the condo market in Singapore is at a fairly valued situation. Lets take an example of one of the new launch condo now, just received an sms for a Urban Vista 4 bedroom (abt 1050Sqft) selling for $1.2M assuming add on fees etc should be 1.25M.....

Excuse me, but if someone has 1.25 million SGD , wouldn't have better retiring in a cheap retirement place like Thailand or Cambodia rather than sinking it into a Singapore condo to continue the rat race ?

I like your call, those above 55 with no liabilities, hehe like me prefer this option...aiming for a safe, cooling, greenery, quiet, low cost of living with good medical facilities...Not Iskander hor, I have been telling others not to touch it unless it is dirt cheap, cos Malaysia law is very uncertain.

As for CY09 san view is quiet logical but he too focus on rental return. Actually, ppty investment is about capital appreciation, if the ppty price falls by 20% it will wipe out all your years of rental income...careful on this.

Yes, people said ppty invest for long term sure win,your long term could be 20 yrs and dont forget to consider inflation into your 20yrs (say 4%p.a x 20yrs= 80%) yup quite true, I bot a ppty in 1996 at $400k (before the 1997 crash), now price & rental double.

The Pros:
1. 6.9 millions progressively in 2030.
2. high land cost ( now land price aro $600-$700 PSF plus construction cost aro $350 PSF, so easily a condo price tag at above $1k PSF.)
3. Greedy garment hungry for more taxes (pro-tax and stamp duty)
4. High liquidity (QE)
5. Foreigner like to park their (xx) money in S'pore, good security and strong currency.

The cons
1. Buy easy, sell difficult . dun forget buyer has to pay ABSD..If i dun buy, other also think likewise..but only a handful very rich foreigner will still buy.
2. Price too high, now ppty price is at all time high (risk/reward ratio) dun favour buy.
3. Come 2014/15 huge supply out from pipeline, provided flood gate still open then it okay still got demand, but papies now afraid of 2016 GE.
4. Another reason why I think come in 2014/15 price might drop. Alot of properties were launched and sold in 2010/2011, the SSD will be reduced to almost nothing after 2014 and there wont be anything to stop people from selling.

Ok pause here, I am not asking nor stopping you from buying your dream property....right timing & good location...when/where? i dunno. But what i know ABSD stop people from buying and SSD stop people from selling.