Like the content! But the performance difference is from facilities and size of the project. Cannot conclude it's from 99 or freehold at all. And you only compare the appreciation difference in young age period of a 99 condo. Can extend the picture to older age?
I think the issue lies in the valuation methodology. Does it make sense for the freehold pty to be valued lower simply bcus there's a lack of supply? no! It should be valued at a 300-400psf premium to neighbouring leasehold developments in spite of the lack of transaction activity. If owners are happily staying and not wanting to sell, should they get penalised for doing so? Its a no brainer job for valuers if they only use the last transaction price to value a property, my 90yr old dementia grandma can also do that. This needs to be changed if not allow an AI system to replace them.
Precisely. If your neighbouring estate list at $1500 psf, you can list the same price also since that's the value of property in that area. 99 year leasehold can appreciate high because lease is running down so people have to buy it as early as possible to get the best value, and hence you can ask for more. Try comparing again 20 years later, 40 years later. Of course the type of buyers buying into freehold and 99 years will be different.
What you did is 99 year nearer to mrt compared to freehold condos. You should do another analysis that freehold condo is nearer to mrt compare to 99 years. See if the result is the same. U may totally flipped to see a different story.
i sort of disagree that sellers have no motivation to sell if there is no appreciation. If they know their house isn't appreciating, they would sell to get rid of their underperforming asset and transfer to a new 1 for better appreciation and avoid ABSD.
Too long winded. You can built a website with many sub sub sub pages but you do a talk like this with many sub sub sub and many coming back coming back… your audience mainly listening this on a train at a coffeeshop not in a classroom. Lost their focus.
what if the freehold is 250 units? which is bigger size than kovan esquire.
Like the content! But the performance difference is from facilities and size of the project. Cannot conclude it's from 99 or freehold at all. And you only compare the appreciation difference in young age period of a 99 condo. Can extend the picture to older age?
Never listen to these “experts”, they always cherry pick and twist the data to fit their narrative & agendas
Excellent review
I think the issue lies in the valuation methodology.
Does it make sense for the freehold pty to be valued lower simply bcus there's a lack of supply? no!
It should be valued at a 300-400psf premium to neighbouring leasehold developments in spite of the lack of transaction activity. If owners are happily staying and not wanting to sell, should they get penalised for doing so?
Its a no brainer job for valuers if they only use the last transaction price to value a property, my 90yr old dementia grandma can also do that. This needs to be changed if not allow an AI system to replace them.
Precisely. If your neighbouring estate list at $1500 psf, you can list the same price also since that's the value of property in that area. 99 year leasehold can appreciate high because lease is running down so people have to buy it as early as possible to get the best value, and hence you can ask for more. Try comparing again 20 years later, 40 years later. Of course the type of buyers buying into freehold and 99 years will be different.
It’s all about current market value of the product… no sales means no value 😊
Wise words from Melvin again
Thank you Kelvin! Hope you enjoyed this episode :)
the latest date for Esquire was 2020, so we cannot assume that it would have transacted for only $170 more psf..
What you did is 99 year nearer to mrt compared to freehold condos. You should do another analysis that freehold condo is nearer to mrt compare to 99 years. See if the result is the same. U may totally flipped to see a different story.
i sort of disagree that sellers have no motivation to sell if there is no appreciation. If they know their house isn't appreciating, they would sell to get rid of their underperforming asset and transfer to a new 1 for better appreciation and avoid ABSD.
Sellers
Not correct analysis
Too long winded. You can built a website with many sub sub sub pages but you do a talk like this with many sub sub sub and many coming back coming back… your audience mainly listening this on a train at a coffeeshop not in a classroom. Lost their focus.