Tuesday, November 22, 2011

$1250 psf condo at Bedok....

Bedok used to have this bus interchange that has been there for more than 2 decades. The govt sold the land to private developers to build a condo project. It will be a good place to live because it is next to the MRT station and near a new bus interchange that will be build next to the project. I'm quite sure the location is good because I lived for more than 10 years in my father's 4-room HDB flat no more than 100 meters from this development. My dad's HDB? Something like $50 psf. My dad sold it to another owner for $80psf. While condos fetch a premium because they have facilities and a nicer build, I still find this $1250psf startling. A small 800 sq feet unit will cost $1M. It will take someone working as an enginner or software programmer decades to pay off his loan.

I met my dad for lunch over the weekend and asked him how he paid for his 4 room HDB flat. He did in 3 years because he already had some savings in his CPF before he bought the flat. My dad worked as a technician.

The PAP's mantra for workers is make yourself cheaper, better and faster. to be more competitive. But how does one compete when costs are so high. Workers elsewhere enjoy cheaper cost of living even those in Australia or USA, can get a home just outside the city for less than $150K and drive to work for the cost we pay for public transport. The responsibility for our competitiveness does not rest solely on the shoulders of our workers. The high cost of housing eats into everything - our competitiveness, our quality of life, our ability to save and retire ..and ability to start a family.. Ex-minister Mah explained that prices are high  to fill the govt reserves - selling homes at lower price is equivalent to raiding our reserves.

Lets not forget the lessons from the financial crisises and property bubbles in Spain, Ireland and USA. When the debt builds up and prices come tumbling down, the negative effects will be long lasting. For Singaporeans, whose ability to retire, is linked to property ownership because our CPF accounts have been emptied for the purchase of HDB flats...when things go wrong, they can go very wrong.
Business Times - 22 Nov 2011

Queues return for Bedok condo launch

(SINGAPORE) CapitaLand will start the sale of its newest condominium Bedok Residences only tomorrow - yet a queue of more than 400 people had already formed at the project's showflat by last night.

The developer said that prices of the 583-unit project at Bedok Town Centre have not been finalised, but agents said last week that prices could start from around $1,250 per square foot (psf) for the smaller units and $1,150 psf for larger units.

CapitaLand, South-east Asia's biggest property group, confirmed yesterday that it would start selling units only tomorrow. But a queue started to form outside the project's showflat on Sunday, BT understands.

The 99-year leasehold development offers a mix of one, one-plus- study, two, three, and four-bedroom apartments, as well as penthouses.

The developer hopes that the project's location would ensure good take-up.

Bedok Residences is part of a 15-storey integrated development comprising homes, a shopping mall and a transportation hub linked to Bedok MRT station. CapitaLand is developing the entire project jointly with its retail unit CapitaMalls Asia.

Wong Heang Fine, chief executive of CapitaLand's Singapore residential arm, expects strong demand for Bedok Residences, 'given its strategic location in one of the most popular residential estates in Singapore and unparalleled connectivity to various parts of the island'. 'Sitting atop a shopping mall and transportation hub, we believe Bedok Residences will rejuvenate the Bedok residential estate and enjoy the exuberance and convenience of the lively Bedok Town Centre,' he said.

Nearby, UOL Group and Singapore Land intend to roll out their newest project, the 577-unit Archipelago @ Bedok Reservoir, within this week or next week, BT understands. The project is located on Bedok Reservoir Road.  


Anonymous said...

"A small 800 sq feet unit will cost $1M. It will take someone working as an enginner or software programmer decades to pay off his loan."
Lucky Tan

Who says these condos are for engineers or programmers or any ordinary folks to buy unless they want to commit financial suicide?

They are meant for rich foreigners to come here to buy.

We welcome all kinds of foreign talents, including rich ones of course from the whole, wide world. Sure have a lot of rich ones what.

As long as PAP has at least 93% seats in Parliament, Singapore will be very stable and peaceful so rich foreigners will find their money and property here very safe.

So Singapore property how can crash?

Veritas said...

Hi Lucky,

I would like to provide a more macro picture in seeing the whole thing.

With FED's monies printing, property is the only good way to soak up hot monies.

If these monies do not go into property, but to commodity especially food, the elite get prepare for guillotine.

If we bail out TBTF banks, this is the price we have to pay, unless-- PAP wants to treat us better by treat us better by providing privilege access for SG citizen to land and housing. (dream long long)

Right now, the world's government is quite good in directing newly minted monies to specific areas, and inflation has not really show up because of that.

In the large picture, the elites are really sucks. But if we look at their ingenuity in containing food price today, they did a brilliant job.

I believe we need fundamental reform in banks in order for middle class to be reinstituted.

Anonymous said...

u know lucky..

for all u know the queues are staged.. ask ppty agts wat is staging.. and they will tell you.. sort of a bit of "wayang" to impress that this thing is a hot deal.. "not to be missed" in other words..

as they say "beware wolves in sheeps's clothings"

how do i know.. i'm a ppty agt.. hahaha.. i do stage sometimes but not all teh times.. hahah

Anonymous said...

Why need to stage if there are indeed many rich potential foreign buyers?

Those in the queue are most likely property agents lah, and they are doing it on behalf of their rich clients who are the buyers. The rich buyers obviously don't need to queue themselves what.

Anonymous said...

Think the right words to use---Rich,corrupt clients from Indonesia,China,Myammar,Malaysia and Vietnam.

Anonymous said...

Why all these negative comments? Because u all cannot afford it?

Anonymous said...

"$1250 psf condo at Bedok...."

Of course there is a market for it lah. Even space travel at $139800 a person also can sell what.

Willing seller, willing buyer what.

It's a deal between 2 consenting adults.

Propaganda Action Party said...

And the poor man's son will be enlisted in NS to protect these the assets of the rich men's sons in this island.

That's why rich investors come in. 'Cos our government guarantees that their wealth will be protected by Singaporeans.

At the end of the day, the stupid NSF doesn't even get CPF or universal healthcare for so-called "protecting" his country.

You're being marginalised in job opportunities, unaffordable housing and high cost of living and you're still think : "Well, it's still OK!"

Then you're indeed what LKY calls "daft". And rightfully so. You deserve the leaders you get. You better pray really hard this time to Buddha, Quanyi, Jesus, Allah, Zeus or whatever God that's available out there that it protect you when you fall sick and need to be hospitalised and you can't pay your hdb monthly instalments and your medisave has run out.

So Lucky is fucking right here, that when things go wrong, it can go very wrong.

And so far, you're floating because such a scenario has not hit you; even when you know Life is multi-dimensional and anything can happen to you. Who is to say that you'll well to type on Lucky's blog tomorrow?

It's time to awaken more and more SIngaporeans.

Take care of yourself and each other.

Anonymous said...

I onced showed your blog to a coworker. He is an avid grassroots volunteer. He also claims to be politically neutral in his volunteer work. Yet, he admits he admires PAP and that unless you support PAP, you won't be allowed to serve in the grassroots.

His reply to your blog? All you do is complain and complain and be anti-government. All complain and no solution.

I pointed that that we pay our ministers millions, and it is their official duty to find the solutions to the problems they created.

He simply parroted that line that Lucky Tan is just all complaints, and no solution.

I ended the discussion by saying that at least we complaint. Volunteers in the grassroots such as himself do not even bother to surface such complaints. They always paint a good picture to their "non-partisan" grassroots advisors, who by 'sheer coincidence', are all PAP members.

Needless to say, his good friend, George Yeo, happily went for GE2011 thinking that he had the support of the majority on his side.

Anonymous said...

When market collapse it will be a short walk to bedok reservoirs for some who may want to jump in.

Anonymous said...

Lucky Tan is rich. He complains on behalf of those who are not rich and who also don't know how to complain.

So whether got solution or not to his complaints doesn't really affect him, right?

Anonymous said...

No worries...if there is a war...i won't allow my fellow soldiers to bleed for these greedy self deluded short term thinking paper certfied intellient only elites and "foreign talent"...

If any bleeding is to be done with the enemy...let the elites and their gluttony greedy cronies bleed 1st.

Then we see who is really a human being at the end of it all.

Anonymous said...

I have deep and similar concerns. Our economy has so may imbalances and high property prices is one. Foreign buyers add to the problem. high immigration pushes up prices by adding to demand. Enough of this.

Foreigners laugh at the size of our small market. They tell me that their fellow country men " ... can buy up the whole of Singapore" .

It pains me to hear such comments.

We need to stop this. We need limits on foreign buying on all types not just mass market. Not just landed !

Anonymous said...

Sad indeed... that is ridiculously expensive.

By the way, your example of $150K for a property does not apply to any cities in Australia, I can tell you that. You are really looking at $500K and up, and we are not talking luxury or desirable suburbs. It is almost as bad as Singapore.

Anonymous said...

if property market crashes, those who will suffer are those that speculate or own more than two properties. they will not belong to the poor and helpless group. why worry about them? they deserve it.

Anonymous said...

400 people queuing overnight? Reminds of the heydays just before the Asian Financial Crisis. So we know what is gonna happen next...

Hang Seng Parasite said...

i hate to say this, whoever is buying this development to live in is buying it for the wrong reasons. you are suppose to flip it to a cash rich foreigner. and he in turn will leave it to the underwater bank when things go south.

Anonymous said...

"For Singaporeans, whose ability to retire, is linked to property ownership because our CPF accounts have been emptied for the purchase of HDB flats...when things go wrong, they can go very wrong.

When we use our retirement money to finance our HDB, we should really be measuring whether we could afford our HDB without using CPF and many people will end up realising they either can't afford their homes or to retire. As long as people don't realise this, it is good for HDB in trying to sell overpriced homes.

Even when you reach the age to retire, CPF put in all these silly rules as though you're not old enough to manage your money when the fact is you've successfully raised your family all these years. CPF is just a scam.

Anonymous said...

that's the worst place to be staying with the pollution from the busses, mrt and the crowd.

The said...

This queuing fiasco is really a marketing hype. What is the point of making people queue up when they are already given the queue numbers? The only reason is for show.

In the stock market, this will be forbidden as it is tantamount to "creating a false market".

The fact that only 60% were sold despite all that hype and queuing so that it is not the real market sentiment. And of that 60% sold, how many went to property agents? My guess is 80% to 90%. So, are there really that many genuine buyers?

waileong said...

It's a condo. People pay what they want to. If you think the Govt can drive down prices to $80 psf (or even $800 psf), you're in for a rude shock. Price stability is all important, both drastic price rises and falls hurt.

Anonymous said...

When you realise who owns the property companies like Capitalland you will realise why the government wants to have high property prices..

Anonymous said...

i am sure many PAP ministers and their immediate families own many properties. i wonder why these politicians and their families do not dare to declare their assets.

Anonymous said...

Startling. S$1250 psf for a 99 year leasehold property. When things go bad this time, it will be much worse than the 1997 Asian financial crisis.

A simple example - a buyer would bought at $500 psf without any down payment 5 years to 10 years ago compared to this buyer who pays 20% downpayment for a S$1250 psf property. If price falls by 50% to S$625 psf, the buyer who bought at S$1250 psf would be in serious negative equity situation while the wealth of that buyer who bought at 500 psf is still very much protected. He would still be smiling and drinking coffee.

In present markets, prices of any investment asset can fall very quickly. We have all seen how gold, oil, stock price can fall so much within a short span of time. Property price is no exception and worse still, it is the most illiquid investment class of all. Hence, in any form of investment, it is all about value investing rather than location, location, location. You can buy into a super prime location but the premium one is paying may take a long long time to breakeven.

It is all about risk management instead of buying into location in my opinion. One may have the holding power but it makes very little investment sense to me when you know you can buy at a cheaper price some points in the future.

Do not chase a rising tide which is already very big now and it is becoming bigger and bigger each day. A good strategist would avoid this big tide and ride on it when it subsides.

Anonymous said...

one square foot of a flat buys you one ergonomic desk and chair for your kids...


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