Visited a show room recently so thought i pen something to share from my learning. Elsewhere maybe different as i am no property expert. Read this as my personal thought talking to myself and not advise.
The show room units are truly well designed. Is a promise of future living. However rooms are really small if you are "HDB type". And if you plan to wait longer so that it can grow bigger in future, we may need to accept it that is not going to happen even if price gets significantly lower.
Kitchen, Flooring, Air Con, Toilet, Doors are all done up. The lights are excluded. Conceit piping/wirings.
Fridge and Washing/Dryer machine provided. There is a glass section through the kitchen.
If i am to value it, maybe 100k effort max.
Is quite huge. In fact, 2/3 of the land mass. The "public area" looks beautiful. So only 1/3 is unit space. So unlike HDB, the common area in private condo is really private. So you have to pay for it which will works into the unit price.
Unless you go for investment, 2 Bed Room (BR) is rather small for a family. For the 3BR, easily hit S$1.1 M price tag for well located unit and good project location like this one i have visited. That's kind of high i thought but not after i do the maths.
From the forum information, the land was bided $1077 psf ppr. The unit on average were sold $1300 which doesn't add up as per analyst this will put the developer selling the unit sightly below cost. Well businessman do this for reason i think.
1. Integrated Strategy/Strategic reasons - Meaning they can earn from malls and to protect their market share and margins.
TDSR and 80% 1st Home loan
2. Is the demand affordability due to TDSR and 80% max loan limits. The person who thought of this is ingenious.
Here's why. If we target household who are employed, Median household income S$8300. Max loan allowed is about 5K monthly payment using rough estimation.This mean S$1.1M unit is already brink due to 80% loan max with 220K ( CPF+Cash ) for this example. All the figures can varies but the point is the concept that restrain the bull.
Thus the developer will have problem moving units if priced higher psf. Buyers are constrained by the 80% ratio, TDSR, CPF and available cash. In addition we have the ABSD that cap on PR and Foreign investors. For people look on 2nd property ... the hurdle is even higher ...
The unit area has to shrink some. This trend will be hard to change. Probably integrated development is the way to go for the future.
1st May 2015