MARKET NEWS

Private home prices outstrip peak of '96 Business Times: Jul 02, 2010

HDB resale prices rising faster 

Straits Times: Jul 02, 2010
Home prices 'set for healthy gains'

Jun 29, 2010

Prices of mass market homes, especially Housing Board flats, are set for healthy gains this year, according to a Citigroup report.

However, HDB resale prices, which provide a strong base for the mass private market, are likely to stay firm due largely to the generally low supply since 2003, it said. Citi expects both HDB resale prices and rents, as well as mass market private home prices, to rise 5 per cent to 10 per cent by the end of the year.

'With capital gains from existing Housing Board flats at a seven-year high, coupled with low mortgage rates, we believe new sales are likely to remain strong in the mass market,' it said.

Mass market private home prices should be capped at $900 to $1,000 per sq ft (psf), though there is a chance they may overshoot, it said.

Considering the high bids and breakeven costs for recent government sites, developers are likely to keep selling private homes at a minimum range of $850 to $1,100 psf and HDB executive condos at closer to $750 psf.

NOTE: anything less than a replacement unit is totally unacceptable in an en bloc. There should be no forced downgrades, no loss of living standard.

This replacement cost can either be in CASH or 1-for 1 exchange

Look at the new developments, they are impossibly small, high density estates with greatly diminished common property. 

But for those who think downsizing is a good idea... think twice.

How to make the most of a small apartment

Q: I HAVE four kids aged 13, 11, seven and five, and we live in an apartment with only two bedrooms and no storeroom.

We have many things, including books, CDs, photos, shoes, stationery and toys, which we had gathered over the years and my husband and I are still buying new items for our children on a regular basis.

We kept all the old toys as it is such a waste to throw them away – they are good-quality toys and still in good condition. It is the same case with books. My daughter loves buying books and we do not want to kill her interest in reading by asking her to stop spending on books.

hen there’s also the textbooks, assessment books, lesson notes, examination papers, all of which we are keeping to hand down to our younger kids.

We are running out of cupboard space for all these items, so much so that I have to keep some of the toys in the children’s wardrobe, along with their clothes; under their study table; and even on the steps on their double-decker bed.

Shoes are another headache.

My children have at least three pairs each, not counting the ones that the older ones cannot wear anymore (which we are keeping for the younger ones). Then there are the shoes belonging to my husband and me.

I hope the professionals can suggest ways we can organise all our things and, if possible, tuck them away neatly.

.

A: Your two-room apartment is indeed small for a family of six but, with some planning, you would be able to maximise the space and find your things easily as well.

Cluttered living spaces are difficult to maintain, so let’s aim to keep the apartment as spacious as possible but, at the same time, have all the most frequently needed items within easy reach.

You should first consider what you really want to keep. If you are unlikely to ever use something again, it should be disposed of, to free up space.

Next, designate storage zones and prioritise them according to accessibility within your apartment.

For each storage zone, you need suitable storage equipment, for example, hangers, plastic bins and shelves.

You will also have to consider whether to store items on a higher level to maximise the space up there. Naturally, higher storage areas are not as accessible as those that are within reach, so they are best used for items that are seldom used.

When it comes to storage equipment, it is most practical to use something that is strong and durable. But you should also consider getting something that would improve the aesthetics of your home. Therefore, you may want to invest in good-looking furniture for the more visible areas.

The next step is to decide what you want to keep but do not use regularly. These items should go into the storage areas that are less accessible – they could be outside your home.

Things that you need to use more regularly should be stored in the apartment within the designated storage zones.

Organising your things can take quite a bit of time, but it will save you time searching for them later had they not been stored in an organised manner. Do label your boxes clearly so that it will be easier for you to find your things later.

For items that have sentimental value which you cannot bear to junk and yet do not want to keep in the apartment (as they take up too much premium space), you may want to consider self-storage service.

Self-storage can help by allowing you to keep these items in a purpose-built location.

You should select a storage facility in a location that is most convenient for you – either near your workplace or near your home – so that should you need to retrieve your things, you don’t have to travel too far to get them.

Source : my paper – 30 Jun 2010

.

How ridiculous is it to buy into your dream home  and find there is not enough space for your shoes! Even more ridiculous to be told to buy extra storage space above and beyond the extravagant price you might have paid for your home! This lady must not live in a HDB.. .I have yet to visit a 3 room HDB with no store room. 

I walked into one of these showrooms and instantly noted the drawbacks - no doors, 1 room knocked down to give the impression of space, furniture fit for dwarfs, an American full sized bed masquerading as a queen size,  read the details and saw cheap plastic foldable doors on the kitchen toilet, and no kitchen space for the fridge! And this in a million dollar plus apartment!  tsk tsk

If there are people who value facilities over personal space then they really should sit down and and have a long hard think.

• Enjoyment of facilities is usually short term. After a few months owners generally find they use them less and less. Facilities are common space. 
• Facilities come with a high monthly fee - do you really want to pay $250 -$300 for a pool you hardly ever use or your children have outgrown?
• Your square footage of personal space is yours and yours alone to enjoy. Size is a determining factor when buying/selling your apartment - facilities are peripheral and not calculated into the price directly.
• Are you being seduced by marketing tactics and glossy pictures and ignoring the practicality of viewing an apartment as your future living space? In other words, are you buying into a lifestyle that will lose it's shine eventually, leave you wanting  and sap your bank account for the rest of your working days? 

For those who think an enbloc will enable them to buy into a luxury home have not done their sums.

All an en bloc will do is allow you to visit the fancy showrooms and drool over the European bathroom fixtures but NOT buy into the new development on your old site - unless you fork out double the price or are content with a mickey-mouse sized apartment with your sale proceeds. If you do either of these things then you have effectively

• reduced by half your personal living space
• emptied you bank account
• taken out yet another yoke of a mortgage
• reduced your share of any common property as a new development will typically be high density
• Increased your monthly overheads
• hobbled your retirement savings (if any)

And in the meantime, the developer is laughing all the way to the bank - having bought the penthouse for his family members!

For those who say owners can downgrade to HDB and pocket the difference

Well, downsizing for retirement needs might be a legitimate excuse for selling out. But it should only be a matter of choice not a REALITY for all. It becomes a reality because the CSA binds owners for 24 months, locks them into selling their estate at a set price. Sure, the sale committee promise to try and sell for higher - but it rarely happens and there are dozens of unhappy past enblocs to prove that point! Who the hell sells anything by locking in the price for 2 years???? 

And what happens to the price of HDBs  in an area where there is an en bloc? They shoot through the roof  because canny HDB owners also want to cash in on the wave of  displaced en bloc owners looking for a replacement unit in the area. Prices go up and those that end up in HDB are left feeling somewhat duped.