Dec 21, 2010

I told you so!


Additional Info:

Blk 118  and the new owner is from the private sector.

Interesting Trend..... more buyers are from the private sector as shown by the following chart.  This trend will push the resale prices even higher, as private owners typically have deeper pockets than HDB upgraders. As I have said before, the 5 year moratorium on reselling a HDB will also turn potential HDB buyers away from the HDB market and into the mass market properties such as ours.
Prices will therefore continue to rise. 




*Resale data is only available from after privatisation in 2002.

9 comments:

  1. Anonymous said...

    Merry Christmas and Happy New Year !

    There is no need for enbloc if the trend continues for next 2 year.

    For pro enbloc SC, the RP of $1.2M or $1.4M is considered undersell now.


    Regards

    December 24, 2010

    ReplyDelete
  2. Anonymous said...

    Based on the latest $523psf, TC's price can be computed as follows:


    Site Area of TC = 702,157 sqft

    Plot Ratio = 2.8

    Total Area = 702,157 sqft * 2.8 = 1,966,039 sqft

    Area each unit owns = 1,966,039 / 560 = 3,510 sqft

    Each unit owns ($) = 3,510 sqft * $523 psf (Nov 2010 - lastest from URA) = $1,835,730


    TC should be 'enbloc' at min $1.83M per unit.

    December 25, 2010

    ReplyDelete
  3. Anonymous said...

    well at 1.4 or 1.5 mio there is still a substantial premium of 500k...i doubt in the next 2 years prices in t court will jump by that amount

    December 25, 2010

    ReplyDelete
  4. I agreed. If can get $1.4mils, i will definitely sell. Premium of $500k is not easy. Heard there are signing on expression of interest currently going around in TC.

    ReplyDelete
  5. I will not repeat the same mistake in Enbloc Round 1 by just signing CSA based on premium over sales price. The % premium of Ebloc Round 1 is 66% ($700K-$420K/$420K). The % premium of the proposed RP of $1.4 mil is 56% now (500K/900K) which is even lower than Round1.

    The PA in Round1 admitted that the premium was a marketing tool to encourage owners to go for en bloc. The land value should be used for setting RP.

    As a layman, can someone tell us what is the value of TC land (702,157sqft) with plot ratio of 2.8 (1,966,093sqft) which is located in the mature estate? This will help us to make formal decision instead of just based on premium.

    I hope that the pro-enbloc SC will do a proper job and do not repeat the same mistakes in Round 1. This will benefit all TC owners.

    Regards

    ReplyDelete
  6. I am owner of tampines court. U mentioned premium of 66% in round is higher than 56% in round 2. P/s bear in mind that the price has already gone up so much. 66% is taken from low base where market sentiment is so poor. I think if can enbloc $1.4mils, it's quite good price. It's already double compare to round 1. I will be happy to sell my unit

    ReplyDelete
  7. If we can get 66% in a poor market,then we should be able to get better %premium in a good market even the baseline is higher, right?

    I wonder why people still ignored the land value and just look at the absolute RP and premium after the experience gained from the very painful enbloc round 1?

    What happen if we can derive RP say $1.6 mil from TC land value, then why are we making all 560 TC owners losers?

    Please remember that in en bloc, you are not selling only for yourself but also for majority owners and 'FORCE SELLING' for minority owners on $1.4 mil (Assume this is the RP) which may not reflect the land value of TC.

    Regards

    Regards

    ReplyDelete
  8. As a layman, I would like to do a simple calculation to show TC's land value based on the tender result of Waterview site which is located at Tampines Ave 1/10 and also estimate the RP of TC.

    Below is the news:
    ------------------
    Sim Lian Land Pte Ltd has won the tender for the residential site at Tampines Ave 1/Tampines Ave 10.

    The Urban Redevelopment Authority (URA) awarded the company the tender after it submitted the highest bid for the site.

    The 31,740.4 square meter land parcel was offered for sale on a 99-year lease. Sim Lian Land put in a $302 million bid, translating to $4,530.79 psm/gfa. The site has a maximum permissible gross floor area (GFA) of 66,655 square meters.
    -----------------------------------------------

    Waterview's land value is $4,530.79 psm/gfa which is equal to $421 psf/gfa.

    TC's gfa is (702,157 sqft * 2.8) = 1,966,039 sqft

    If we use the same land value of $421 psf/gfa, then TC's land value is 1,966,039 sqft * $421 = $827,702,419 which is equal to ($827,702,419 / 560) $1,478,040 per unit.

    I believe TC is in a better location than Waterview.

    A 5% increase will translate to $1,551,952 per unit.

    A 10% increase will translate to $1,625,844 per unit.

    The land value for TC is in the range of 1.55 m to 1.65m per unit as at now.

    For en bloc sales, we must also factor in the price increase at the end of 2 years.

    I think $1.6m to 1.7m is a fair estimation of RP for TC.

    Regards

    ReplyDelete
  9. I am so relieved to see that we have people in the estate who, even though they are laymen in this area, can do the math.

    ReplyDelete