Undervalued Properties in Singapore

[abbby]

I was having a chat with a friend who was planning to move back to Singapore from Australia. And we were in the discussion of what's left in Singapore, undervalued properties...because every where's so expensive now. I do feel that Bukit Timah and Sentosa has some undervalued properties worth exploring. Whilst Orchard and many areas have prices risen like crazy, I would think people would slowly enter Sentosa again (prices only $1500-$2300 psf) as mainland prices have already surged.

What are your thoughts and where do you think is undervalued in Singapore?

[Pal]

Sentosa is definitely under valued at the moment.

Considering new condos like Lentor Residences, Pasir Ris 8, Jden are well above 2k psf, average prices for properties in Sentosa are a good bargain! Sea view, resort living and near CBD, no other location in Singapore offers such good value.

[the observer]

I was having a chat with a friend who was planning to move back to Singapore from Australia. And we were in the discussion of what's left in Singapore, undervalued properties...because every where's so expensive now. I do feel that Bukit Timah and Sentosa has some undervalued properties worth exploring. Whilst Orchard and many areas have prices risen like crazy, I would think people would slowly enter Sentosa again (prices only $1500-$2300 psf) as mainland prices have already surged.

What are your thoughts and where do you think is undervalued in Singapore?

With ABSD at current rates, areas which are shunned/less prefered by locals and favored by foreign buyers are undervalued. Fresh foreign buyers are now down to a trickle.

Although the market rates for interest rates has risen, there are still loans out there being pegged at the ding dong low rates of 1-2 pct from earlier 2021/2022 loan packages. These should be out of their pegs in the coming 6-12 months. Your friend might be able to get realistic asking prices for properties from such homeowners in the coming months, from overgeared mortgagees.

But most importantly, it is about affordability.

Property is a long term trade, and being able to stomach the mark to market swing in valuations and being able to make timely repayments are key. Banks are legally obligated to ask for cash topups if valuations drop below the loan threshold limits (%). (This happened last in 2008, during the GFC and 1997, AFC. It is rare, as the banks targetted investment/rented out units first, rather than own stay home owners.)

[sp786]

Singapore properties are over priced TBH. Ah Bengs get 600 SQ Ft and ready to pay 1 million but Ah Pek got good life back then with Jumbo units for a fraction of that. Paying so much for a matchbox unit is

[the observer]

Singapore properties are over priced TBH. Ah Bengs get 600 SQ Ft and ready to pay 1 million but Ah Pek got good life back then with Jumbo units for a fraction of that. Paying so much for a matchbox unit is

Every market has its cycle. It may be frothy now.

But having learnt a bit more about real estate.

Hdb lease is just the space within the 4 walls that you have “owned”. Common areas/walkways etc belong to the gahmen/public. It can only be enbloc by the gahmen.

Private residential ie condos etc own the space within the 4 walls as well as the common areas/land via strata (% of ownership depends on the strata share holding).
It can be sold en bloc to private developers.

Henceforth…
To live, hdb is ideal.
To invest, it has to be private.

[PNGMK]

Singapore properties are over priced TBH. Ah Bengs get 600 SQ Ft and ready to pay 1 million but Ah Pek got good life back then with Jumbo units for a fraction of that. Paying so much for a matchbox unit is

Every market has its cycle. It may be frothy now.

But having learnt a bit more about real estate.

Hdb lease is just the space within the 4 walls that you have “owned”. Common areas/walkways etc belong to the gahmen/public. It can only be enbloc by the gahmen.

Private residential ie condos etc own the space within the 4 walls as well as the common areas/land via strata (% of ownership depends on the strata share holding).
It can be sold en bloc to private developers.

Henceforth…
To live, hdb is ideal.
To invest, it has to be private.

In addition only private property can be used a collateral or security for new debt. HDB is just prepaid rental. Worthless.

[malcontent]

I see no froth in the Singapore real estate market, in fact, the pace of price appreciation here has not kept up with the outside world… upside in prices continues to be restrained, but that doesn’t mean it won’t catch up eventually. Keep in mind that mortgage rates here remain relatively low — compared to places like the US, almost half… that should also be a tailwind.

[PNGMK]

I see no froth in the Singapore real estate market, in fact, the pace of price appreciation here has not kept up with the outside world… upside in prices continues to be restrained, but that doesn’t mean it won’t catch up eventually. Keep in mind that mortgage rates here remain relatively low — compared to places like the US, almost half… that should also be a tailwind.

Agreed. I think the ridiculous ABSD is a massive disservice to the property investors. I understand the intent is to help Singapore get a food on the property ladders but this shotgun approach is hurting everyone.

[Pal]

Yeah, 60% ABSD is a half baked knee jerk policy. With amost 0 foreign buyers, this will kill the market in the long run.

The gov is always very slow in their policy. Often is too late with draconian measures.

I see no froth in the Singapore real estate market, in fact, the pace of price appreciation here has not kept up with the outside world… upside in prices continues to be restrained, but that doesn’t mean it won’t catch up eventually. Keep in mind that mortgage rates here remain relatively low — compared to places like the US, almost half… that should also be a tailwind.

Agreed. I think the ridiculous ABSD is a massive disservice to the property investors. I understand the intent is to help Singapore get a food on the property ladders but this shotgun approach is hurting everyone.

[malcontent]

Yeah, 60% ABSD is a half baked knee jerk policy. With amost 0 foreign buyers, this will kill the market in the long run.

The gov is always very slow in their policy. Often is too late with draconian measures.

I see no froth in the Singapore real estate market, in fact, the pace of price appreciation here has not kept up with the outside world… upside in prices continues to be restrained, but that doesn’t mean it won’t catch up eventually. Keep in mind that mortgage rates here remain relatively low — compared to places like the US, almost half… that should also be a tailwind.

Agreed. I think the ridiculous ABSD is a massive disservice to the property investors. I understand the intent is to help Singapore get a food on the property ladders but this shotgun approach is hurting everyone.

I suspect it has also become a significant revenue stream which might be difficult to unwind, ever.

[Pal]

I don't think the 60% ABSD is yielding more revenue due to the much much lower volume of transactions by foreigners. Have to take a look at more data to confirm this.

These two years we are hammered by so many forms of tax increment: ABSD, GST, property Tax, car import tax, etc. People is wondering if they have a really big deficit to cover

[PNGMK]

Yeah, 60% ABSD is a half baked knee jerk policy. With amost 0 foreign buyers, this will kill the market in the long run.

The gov is always very slow in their policy. Often is too late with draconian measures.

Agreed. I think the ridiculous ABSD is a massive disservice to the property investors. I understand the intent is to help Singapore get a food on the property ladders but this shotgun approach is hurting everyone.

I suspect it has also become a significant revenue stream which might be difficult to unwind, ever.

Governments almost never cancel tax unless there is a major revolution or change in government. I tend to agree the PAP won't drop it coz they 'lose face' if they do and on the face of it, the typical stupid sinkie supports it.

[Pal]

The typical 60% loves the carrots before each GE

[abbby]

What goes up never (or hardly) comes down in Singapore.

[Lisafuller]

What goes up never (or hardly) comes down in Singapore.

It's great for those who have property already, and terrible for everybody else.