Price of Re-Sale HDB Flats
- Thread starter Hommie
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A note to add:
They dun reflect the true current market value cos those price u see there are of those flats transcated 3months ago!
A note to add:
They dun reflect the true current market value cos those price u see there are of those flats transcated 3months ago!
Har? You mean to say that property prices have become so liquid or that prices have fluctuated so wildly that they have become very different? I don't know about you, but I own properties enough to know they are good enough to represent what people are transacting at, not some hollow prices that buyers or sellers are wishing for.
True i may not have own as much property as u do but I am not saying that is so liquid that it fluctuate like the stock market! But due to the rising prices it cannot be use as a gauge for a Fair Market Value! It can only be a guide. Not how much u should price ur property at!
What i was trying to say is that the prices u see now a r of those transcated 3 months ago does not reflect the current market now! If the TS is looking for a more accuracy of the most recent fair market value of a certain property in a certain area the transcated price in the website can only be a guide n not the recent fair market value as in now! And some area are really hot price r also crazy!
I belive u know that the valuation for HDB property is valid only for 3 months(thats why u got the quaterly updated in the web for the Average Valuation report) and each time the property get transcated it will need 3 months to go through be it HDB or Private. And HDB be will only log in the price upon completion updated twice a month on the 2 n 16th of the month. So if u are looking at the transcation u gt to factor in the timing n etc....
:cheers:
Forgive me for being so petty here.
The valuation of any property is really very subjective and dependent on a lot of qualitative factors. A view of recent transactions will reveal the nature of the transactions e.g the number of transactions, the location, the floor level etc. To simply make an assumption, that recent price rises are not factored into recent transactions is misleading. The prices for most HDB apartments in the majority of estates are not moving anywhere fast, so the transacted prices can be used as a reasonable basis for gauging the worth of an apartment, after taking into consideration the qualitative factors of each apartment. BTW, the valuation of an apartment is done by taking into consideration the most recent transactions for similar apartments, plus or minus a few thousand dollars depending on the condition.
The valuation of any property is really very subjective and dependent on a lot of qualitative factors. A view of recent transactions will reveal the nature of the transactions e.g the number of transactions, the location, the floor level etc. To simply make an assumption, that recent price rises are not factored into recent transactions is misleading. The prices for most HDB apartments in the majority of estates are not moving anywhere fast, so the transacted prices can be used as a reasonable basis for gauging the worth of an apartment, after taking into consideration the qualitative factors of each apartment. BTW, the valuation of an apartment is done by taking into consideration the most recent transactions for similar apartments, plus or minus a few thousand dollars depending on the condition.
There different type of valuation and the most common type will be the Comparatative Method Annalysis which is most commonly used, still got profit methods, construction method, investment method.....
Just to let u know that the valuation does not meant that how much a property is worth.
Valuation is to assist the buyers in taking loan not how much u should sell your property at!
If the buyer is buying cash and not using any CPF the buyer need not have to have a valuation report!
And how many % of HDB apartment buyers do you reckon will buy with just cash?
Of course the valuation is not about how much a property is worth, it is just a silly guage and that is about it, maybe not in the context of a lender or seller. The reason is simple, it is never clear if the price of a HDB apartment is over or undervalued simply because no one knows how much the apartment is worth to begin with. You can calculate the price of a car to see if it is overvalued, but you cannot do it with a HDB apartment.
At the end of the day, the eventual price has more to do with how much a buyer paid if the price is relatively high or how much the seller sold if the price is relatively low. The valuation gives an impression of a value of the property. All the talk about price and value is but relative and very very subjective. As a seller, if you are lucky and meet a desperate buyer with the purchasing power, you would probably get a good deal. If you are unlucky, you may even not get any buyers. All said, you don't need to know how upodated your information is, if demand or supply is not moving fast, a price from 3 months ago is a reasonable gauge.
Of course the valuation is not about how much a property is worth, it is just a silly guage and that is about it, maybe not in the context of a lender or seller. The reason is simple, it is never clear if the price of a HDB apartment is over or undervalued simply because no one knows how much the apartment is worth to begin with. You can calculate the price of a car to see if it is overvalued, but you cannot do it with a HDB apartment.
At the end of the day, the eventual price has more to do with how much a buyer paid if the price is relatively high or how much the seller sold if the price is relatively low. The valuation gives an impression of a value of the property. All the talk about price and value is but relative and very very subjective. As a seller, if you are lucky and meet a desperate buyer with the purchasing power, you would probably get a good deal. If you are unlucky, you may even not get any buyers. All said, you don't need to know how upodated your information is, if demand or supply is not moving fast, a price from 3 months ago is a reasonable gauge.
[Cost of Land + Construction Cost + Admin (GST/Stamp/Tax)] + 100% markup + Average Market Premium (ie.5 years forecasted moving average) = The rough price as the base you get for a new flat.
Ya ... not much buyers buying with full cash but they are getting more.
Agreed 3 months is a reasonable gauge but if we were to look at price transcated date is in march in the web meaning the property is sold in Jan or late Dec 06 the price is meant the for the market then, so that makes it more then 3 mths.........
Thats why in the first place that we cant rely to much on transcated price n average for a FAIR MARKET VALUE.
It is always the case of sellers wanting high prices n buyers wanting low price, at the end of the day its a case of willing seller willing buyer.
Every property is unique, no property is the same, so price of cos no same each has its own price!
Regarding HDB prices which is being debated in the previous thread no need to repeat here.
Anyway here we are talking about resale where HDB do not set the price!
:cheers:
That's just a rough guideline base on location etc... at least knowing how much it worth back then and be remind the property is moving up still... so.. the price might be higher then what you seen on e site..
Yeah, but I tend to think that it is not true in the current market conditions for HDB apartments. The hot propeties are only confined to specific locations and en-bloc sales, not the entire property market in general, so prices can change very quickly for these properties, maybe the good HDB locations near the city centre, but surely not most other HDB estates.
In the past boom('95/96) it is the HDB property leading the boom to private properties, now is different, it is the private properties in the core central region, luxurous n high end, leading the way which is now flitering down to the mass market which is mid end (faster then i anticipate it to be) n soon island wide be it private or HDB the price will go up but not as crazy as the core central region. But quarter to quarter the raise in the prices just check this out: http://www.hdb.gov.sg/fi10/fi10201p.nsf/WPDis/Buying%20A%20Resale%20FlatStatistics%20-%20Resale%20Price%20Index?OpenDocument&SubMenu=Statistics
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