[stephenkhoo]

Broker take on property

[stephenkhoo]

Ok it seems Simei is well sought after with Modena, Tropical Spring and Casamera being same level of pricing. Of course double bay and mymahattan (70%) sold is up and coming. Those targeting modena are those who are either selling off their landed and downgrade or those with smaller apartments upgrading maybe from ec. There is hardly any hdb upgraders nowadays as the price difference is too much.
Another reason for good resale pricing is due to the fact rentals are all time high and creeping upwards, it will never come down to the 3k below due to the fact govt is importing more skilled workers and move the economy. Another reason is expats may find it worthwhile to purchase with low interest rates rather than escalating rental.

What does rental covers? For owner is the maint fees and Aircon svcs. Any defects above 150 bucks the owner and tenant share else 150 is borne by tenant. aircon svcing and power bills borne by tenant. 10 percent property tax.

So the question is, will it still stay up or will it come down?

[stephenkhoo]

My opinion is rental yield will maintain and base on point 3 as above, this would mean rental would continue to stay or rise as foreign buyers will either wait for this measure to be removed or they can buy when interest rates are relatively low. Not forgetting developers of new developments are packaging units with rebates to offset the 7% increase.

[stephenkhoo]

Few bright spots in housing market
Jun 4, 2012 - PropertyGuru.com.sg
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By Romesh Navaratnarajah:

While recent property measures implemented by the government to cool the market are working, Minister for National Development Khaw Boon Wan said that much more can be done.

He noted that the government will ease the public housing crunch gradually, adding that queues for new HDB flats have reduced over time and prices have also stabilised.

In November 2011, around 85 percent of first-time buyers successfully purchased flats at new launches, higher than the 45 percent success rate in May that same year.

More flats have also been set aside for second-timers who now get 15 percent allocation for new flats, a notable increase from the previous five percent. The price hike in the resale market has slowed down as well.

In addition, more couples have been given the chance to own their own homes after the government increased the joint income ceiling from S$8,000 to S$10,000.

Mr Khaw added that he is also monitoring the mass marketing of shoebox units, which are no more than 500 sq ft in size. Apart from that, private home prices in the central region have been moderating.

However, many concerns need to be addressed. Housing prices are still at a historic high and some buyers are burdened with loans that will take 30 years to repay.

Nonetheless, Mr Khaw remains optimistic. “Having gone through many (property) cycles, I can only advise and remind that things don't go in a straight line.”

[stephenkhoo]

buying landed is like buying art