"Homes in N-E suffer '$396m paper loss' - The Straits Times Mar 07, 2015
THE combined value of private and public homes in Singapore's north-east is $396 million less today than when they were bought, a new report has found. The report by SRX Property sought to calculate the "paper losses" faced by home owners across Singapore, given the recent slide in property prices.
Of the 7,619 Housing Board flats in Sengkang with caveats lodged historically, 46.9 per cent or 3,575 owners would suffer losses if they were to sell at today's estimated market value, SRX Property said.
This calculation is based on the price the owners paid for their homes. The total amount of paper losses for HDB flats in the area is $164 million, SRX found. Of the 3,730 HDB flats in Punggol with caveats lodged, 49.6 per cent or 1,849 owners would suffer losses if they sold at today's value - a total paper loss of about $114 million.
As for private homes, out of 3,615 non-landed homes in Seletar, 43.7 per cent or 1,578 are looking at a paper loss totalling $118 million. The top five projects in the district with the highest percentage of units with paper losses are The Topiary, Seletar Park Residences, Floraville, Riverbank@Fernvale and RiverTrees Residences, said SRX Property."
Oh MY GOD!! What the heck happened here!!?? Whatever happened to: 'buy properties to be millionaires' or more precisely: 'buy property and PROFIT by millions or a few hundred thousands just flipping'?
Lessons for me are:
1. a GOOD report that shows it is NOT a SURE THING that one will profit from buying and selling of properties! That properties prices ALSO have to observe the Law of Physics or to be exact: The law of GRAVITY! What goes up must come down unless it is in a vacuum!;
2. alas, some, in fact MANY EXPERTS will point out that THIS DROP is DUE TO artificial intervention by the big BAD government trying to COOL DOWN the market with additional costs of acquisition of properties. So, ACTUALLY, the prices of the properties SHOULD indeed spiralling UP and UP and UP!! Oh, BETTER still, given a GE year coming up, THESE N-E homes are in the opposition WP-wards!! So, blame the opposition party MPs for doing a LOUSY job!! This would be God-send!!;
3. seriously, IF Singapore government JUST want to SELL the properties to ANYONE who can pay a higher price, there will be LOTS of takers from Indonesia, Malaysia, Thailand, not forgetting newly rich nations like PRC and India. Of course, these foreigners want to buy and come here to live are due to 'stability of the country'. Obviously the fact that they MAKE a lot of money in their home countries - some through means unmentionable - help too. YET, if the 'stability of the Little Red Dot' is ROCKED when the LOCALs found themselves PRICED OUT of the property market, even the HDB public flats, the 'stability of society' WILL NOT be there - guaranteed! So, the government CANNOT, even if it wanted to, just sell properties to the HIGHEST bidders. Singapore is NOT a pure commercial enterprise. It is a nation. In a nation, you CANNOT hire and fire your CITIZEN. At least not unless Singapore is still a 'social democratic society' with an 'one-citizen-one-vote system'!
SHOULD the S$396m paper loss be ALLOWED to be realised? Unlikely even if I am inclined to say: WHY NOT?
That is the irony. And the tragedy! Yet, to get rid of this demon, someone MUST pay. Maybe 30-40% of them. Let us hold our breaths...
THE combined value of private and public homes in Singapore's north-east is $396 million less today than when they were bought, a new report has found. The report by SRX Property sought to calculate the "paper losses" faced by home owners across Singapore, given the recent slide in property prices.
Of the 7,619 Housing Board flats in Sengkang with caveats lodged historically, 46.9 per cent or 3,575 owners would suffer losses if they were to sell at today's estimated market value, SRX Property said.
This calculation is based on the price the owners paid for their homes. The total amount of paper losses for HDB flats in the area is $164 million, SRX found. Of the 3,730 HDB flats in Punggol with caveats lodged, 49.6 per cent or 1,849 owners would suffer losses if they sold at today's value - a total paper loss of about $114 million.
As for private homes, out of 3,615 non-landed homes in Seletar, 43.7 per cent or 1,578 are looking at a paper loss totalling $118 million. The top five projects in the district with the highest percentage of units with paper losses are The Topiary, Seletar Park Residences, Floraville, Riverbank@Fernvale and RiverTrees Residences, said SRX Property."
Oh MY GOD!! What the heck happened here!!?? Whatever happened to: 'buy properties to be millionaires' or more precisely: 'buy property and PROFIT by millions or a few hundred thousands just flipping'?
Lessons for me are:
1. a GOOD report that shows it is NOT a SURE THING that one will profit from buying and selling of properties! That properties prices ALSO have to observe the Law of Physics or to be exact: The law of GRAVITY! What goes up must come down unless it is in a vacuum!;
2. alas, some, in fact MANY EXPERTS will point out that THIS DROP is DUE TO artificial intervention by the big BAD government trying to COOL DOWN the market with additional costs of acquisition of properties. So, ACTUALLY, the prices of the properties SHOULD indeed spiralling UP and UP and UP!! Oh, BETTER still, given a GE year coming up, THESE N-E homes are in the opposition WP-wards!! So, blame the opposition party MPs for doing a LOUSY job!! This would be God-send!!;
3. seriously, IF Singapore government JUST want to SELL the properties to ANYONE who can pay a higher price, there will be LOTS of takers from Indonesia, Malaysia, Thailand, not forgetting newly rich nations like PRC and India. Of course, these foreigners want to buy and come here to live are due to 'stability of the country'. Obviously the fact that they MAKE a lot of money in their home countries - some through means unmentionable - help too. YET, if the 'stability of the Little Red Dot' is ROCKED when the LOCALs found themselves PRICED OUT of the property market, even the HDB public flats, the 'stability of society' WILL NOT be there - guaranteed! So, the government CANNOT, even if it wanted to, just sell properties to the HIGHEST bidders. Singapore is NOT a pure commercial enterprise. It is a nation. In a nation, you CANNOT hire and fire your CITIZEN. At least not unless Singapore is still a 'social democratic society' with an 'one-citizen-one-vote system'!
SHOULD the S$396m paper loss be ALLOWED to be realised? Unlikely even if I am inclined to say: WHY NOT?
That is the irony. And the tragedy! Yet, to get rid of this demon, someone MUST pay. Maybe 30-40% of them. Let us hold our breaths...
No comments:
Post a Comment