Recent caveat lodged: $ 1.16 million. (And the lucky seller is none other than an ex-SC member who made a cool 100% profit :)
I recently had a conversation with someone who was contemplating buying a unit in Loyang Valley - an estate older than ours (we have 101yr lease) and about 27yrs into their 99yr lease. There is a common misconception about the 30yr mark and how the banks 'won't lend to potential buyers after the 30 yr mark, so you had better go en bloc'.
Many people believe this 30yrs refers to when the estate is 30 yrs old. This is incorrect. The difficulty arises only when the estate has only 35yrs remaining on the lease (ie, the estate is 65yrs old).
So the aging estate/bank difficulty scare tactic is bogus. We have many happy years of reselling ahead of us. The upward trajectory in resale prices in the present bullish market has therefore every prospect of continuing.
The raising of resale prices despite the Euro Crisis make TC enbloc less attractive to the owners.
ReplyDeleteWith the proposed RP, after deducting the lawyer, agent and stamp duty fees for both TC and new house to be purchased, there is no enough premium left for the owners.
We are in the same situation as 2007 enbloc but luckily only 30% signed the CSA as at now.
We may be able to sell our unit at the same price (or close to) as the RP in 2013 if the property prices continue to raise in mass market.
This is the issue which current and 2007 SC have failed to address and resolve for TC owners.
The $1.16 million is only a one-hit wonder. Nothin to shout about. The rest of the transactions after this spike are hovering around $1.05. May go south after Dec 2012 expiry date
ReplyDelete@ The $1.16 million...
ReplyDeleteIf you want to sell, since en-bloc is not going to happen, you better sell before the Dec 2012 expiry date.
$1.16 million is certainly nothing to shout about because my home is worth more...
Neptune Court is the oldest HUDC,(the buildings are over 40 years old) despite 99 yr lease starting in 1974) still selling at unbelievably high prices. The estate is older than the 35 yr mark. TC and all the others are comparatively new.
ReplyDelete