CapitaLand has launched a new condo, called Sky Habitat in Bishan. Details of this project can be found in http://skyhabitatpreview.com/.
The project has 509 units. During the first launch, a total of 180 units were offered and 70% were taken up, i.e. 120 units. This represents about 25% of the total units in the project. See this report, http://www.todayonline.com/Singapore/EDC120415-0000079/70-of-Sky-Habitat-units-launched-this-weekend-sold
The average price of a 3 bedroom unit is $2 million. I have advised consumers to use a buy a property up to 60 months of salary. To be able to afford this investment, you have to earn a salary of $33,000 a month. This should be based on one person's salary. If the combined salary is used, there is a risk that one person may lose the job and caused financial difficulty in making the monthly payment.
Some rich families are able to pay a large part of the cost of the property for their children. In this case, the formula has to be modified. If the parent pays 50% of the property and reduces the net cost to $1 million, the monthly salary should be $16,700.
I hope that the rule of thumb of 60 months salary will help buyers to make a prudent decision.
The project has 509 units. During the first launch, a total of 180 units were offered and 70% were taken up, i.e. 120 units. This represents about 25% of the total units in the project. See this report, http://www.todayonline.com/Singapore/EDC120415-0000079/70-of-Sky-Habitat-units-launched-this-weekend-sold
The average price of a 3 bedroom unit is $2 million. I have advised consumers to use a buy a property up to 60 months of salary. To be able to afford this investment, you have to earn a salary of $33,000 a month. This should be based on one person's salary. If the combined salary is used, there is a risk that one person may lose the job and caused financial difficulty in making the monthly payment.
Some rich families are able to pay a large part of the cost of the property for their children. In this case, the formula has to be modified. If the parent pays 50% of the property and reduces the net cost to $1 million, the monthly salary should be $16,700.
I hope that the rule of thumb of 60 months salary will help buyers to make a prudent decision.
very useful!
ReplyDeleteJust wonder the percentage of foreign buyers in this launch.
ReplyDeleteAlamak, the purchasers would inevitably push up property values in the vicinity, no thanks to Capitaland.
With the cooling property market affecting this Company's sales in China, now they are targeting the home market to push sales.
Dun find the design auspicious, there are far too many sharp knives sticking out.
Thank you for the very real & concrete facts.
ReplyDeleteThis sort of information is never ever revealed to consumers.
To some, it may be a very simple logical analysis. But to others, they do not see it in that perspective and this is where predators lurk.
Please keep doing this. It certainly helps.
Thank you
@yuyuan
ReplyDeleteThe news report said that 80% of the buyers are Singaporeans. We do have many rich Singaporeans who can afford the high prices - thanks to the high wage gap in Singapore.
Unfortunately, many "younger" Singaporeans do not understand this "financial maths"...LOL.
ReplyDeleteS'pore maths only teach them "affordability" to pay monthly allowance stretched over 30years mortgage if the combined CPF of a couple can pay each month's instalment. There is no factor-in of "unemployment" in the longer run. That is the model developers and our Govt love to see...
Every weekend, the advertisements are impressing readers with this "affordability" of EC. LOL.
The way our GLC developers speculate properties ... first with "land" should be checked. This new benchmark is another $200 psf above the Leedon @ Farrer Rd by the same GLC developer.??? And for a 99 yr LH condo!!!
i would think that up to 30% of the people buying are speculators and another 30% buying cannot really afford it if there is a correction that is likely coming in 2014-5. It looks like singapore is still in property bubble territory and the cooling measures has failed.
ReplyDeleteI have no problems with the rising pricings for private properties. Afterall, private housing are not meant as a basic necessity for the vast majority of our Singaporeans as compared to HDB flats.
ReplyDeleteOK, now i see the picture clearly.
ReplyDeletePeople with money at hand will find prices for this property far too high.
That leaves people who have windfalls from enbloc sales, as long as the design is worldclass and the location is good, with MRT stations and prestigious schools around, there is no problem with high prices of private properties.
Capitaland may have aggressively courted enbloc sale sellers by contacting them direct. The rest of buyers may belong to high fliers in their careers, where keeping up with the Joneses is a necessity.
So TKL's advice on use of salary guage to calculate affordability would fall on deaf ears.
Needless to say, I may be criticized as a green eyed spoilsport,or unable to eat the grapes, and thumb them down as too sour. So good luck to those who dare to challenge the naysayers.