Another great video! Aging HDB flats definitely has great value in my opinion. I have some Malaysian frens who are applying sg citizenship and waiting to buy them once they receive the citizenship. They see them as great value to live in when working in sg during mop. Once they decided to retire or quit their jobs, they planned to return to Malaysia and used their flats to generate passive rental income to enable them to retire happy n financial free in Malaysia.

@alanweeproperty

Жыл бұрын

Very much agreed. Next time we can also do that once mrt link to JB is open. Rent out old hdb flat n stay in FH condo in JB! Yet still can collect money from G and spend in RM. Shiok! Shiok!

Hi, you’re applying the land office Bala table wrongly. I can state this with some authority as I used this table to do land valuations when I worked in the Admin Service of the Singapore Government. What the table says is that if a FH land is valued at $1m, then a 99-year LH land at the same place will be valued at 96% of the FH land value, or $0.96m, while a land with only 55-years left in its lease will be worth 77.3% of FH land value, or $0.773m. Secondly, the table is used to value land only, not land + building, whereas the value of a property = value of land + value of building(s). But even if we take the simplifying assumption to apply the Bala table to value FH property as a whole, then it would be as if the value of the FH equivalent of the Blk 92 Bedok flat will be $428k/0.773=$554k, not $428k*0.773 ($330k). If you recalculate the values for the other two flats accordingly, you get $665.5k/0.918=$725k for the 2006 flat, and $749.2k/0.954=$785k for the 2018 flat. This makes sense as the 2018 flat is only 5 years old with minimal physical deterioration, whereas the 1979 flat is already 44 years old and worn down, even if well maintained. Cheers.

@alanweeproperty

Жыл бұрын

thank u. let me look into it.

@imycunt372

2 ай бұрын

@@alanweeproperty if you have to look into it, that means you ain't even sure wtf you are talking about when posting this clip. Don't anyhow Hantam if not sure because it create despondency on older flat owners and stop behaving like a fake Guru. BTW, don't like your cocky look when speaking with a warped cheek.

good video. I agree with your analysis totally.

@alanweeproperty

Жыл бұрын

thank u.

Alan, another insightful vid from u 👍🏾 .. pls consider analysing “ 99 years landed. Can buy or bye bye” :)

@alanweeproperty

Жыл бұрын

can buy from covid till mid-last year. but I feel some of the prices already run up significantly. I could be wrong. really depend on the location n type.. not all perform the same.

Thx for featuring budoke ! 👍

@alanweeproperty

Жыл бұрын

No problem 👍

The calculation based on freehold value sounds wrong. The market average value should be perceived as the percentage of the freehold value already, right? So 428k should be seen as 77.3%.

@alanweeproperty

Жыл бұрын

It's correct. U can intrepret as your way too.. Else I use a shortcut of $428k/$330k = 1.296. the impt is the differ of 30%. I can also shown the long way = $428-330/330 = 98/330 = 0.297...but that is too long winded for a video.

@mailailuan

Жыл бұрын

@@alanweeproperty I think the first commenter is saying that to use the table you need to benchmark to actual freehold value (for which there is none for HDB in Singapore I think?). That is, take leasehold property X with term remaining of Y, then take the market value of freehold property Z with market value $M and then take then multiply $M with the percentage in the table to get the "fair value" for X. The way you do it you are "valuing" each individual leasehold property by multiplying its market value by a factor of

@alanweeproperty

Жыл бұрын

@@mailailuan i know what he means. there is no FH hdb for sure. but hdb don't depreciate in a linear line. the best way I feel is to use SLA table to be fare. anyway, thanks for your input.

@mailailuan

Жыл бұрын

​@@alanweeproperty 😅😅, if you are open-minded do think about my last sentence. I will leave it here, cheers!

@alanweeproperty

Жыл бұрын

@@mailailuan no prob. I will simplify the approach in future. Thank for feedback

The market is generally efficient because of the large number of buyers and sellers (i.e. no monopoly), and information efficient (we know resale prices). Hence you pay for what you get, i.e. the rent/house price ratio for this asset class remains more or less constant, e.g. 2%. If it has only 2 years of lease left and is currently rented at $30,000 per year, then the buyer can only get at most $60,000. He won't pay more than that, after deducting expenses. Most buyers think the same way, and won't buy on impulse or fear of missing out.

Thanks for the analysis. Does the analysis / comment for older HDB apply to the EM since they are rarer?

@alanweeproperty

Жыл бұрын

Nope. Hdb perform differently for differ area and types. I haven't really go into it. But convid has disrupt it's prices to an all time high...

@alanweeproperty

Жыл бұрын

however, i have notice some EM perfrom better than the rest. one of them is Toh Yi area near beauty world. maybe its not that old yet + nearby are mainly expensive condo. so those buy near sch have no choice but to go for space. this indirectly push/ maintain its prices. but if the EM u stay have alot of such + no compelling X factors for ppl to buy and alot of new BTOs flat. then i think u will know the outcome in the years to come...

Hey Alan, thanks for sharing. Can you please explain why the FH value is lower than today’s value? To top back up to 99 years, the LH value would only be 96% of FH value.

@alanweeproperty

Жыл бұрын

this is the bala table that is used for research many years ago.. more information here>>>www.clc.gov.sg/docs/default-source/commentaries/balas-table.pdf Anyway, i think the different should be higher in singapore context. easily 30% if compare apple to apple.

There are aging HDB flat everywhere in Singapore. AMK, JURONG, BEDOK, TAMPINES, BUKIT MERAH.... if you are government will you ask your people to sell all.aging flat

@alanweeproperty

Жыл бұрын

if i am G. i already hinted u.....they are building so many studio flats with 2 room flexi with differ lease duration. it is like buffet. u can chose how much u want to eat. they will never ask u to sell. you can continue to stay in it until the lease run out. For those that see this problem ahead. its good to plan ahead. that all.

May I know where to get the Singapore Land Authority Leasehold Table? I want to buy a 48 year old HDB Flat in which asking at 1 million

@alanweeproperty

3 ай бұрын

Sla. just Google.

For buyers, they should avoid those with remaining lease of 50+ years. Limited capital appreciation.

@alanweeproperty

Жыл бұрын

Agreed. For those with tight budget who want to stay in a popular place n don't mind depreciate lease. I think it's still ok.

you can also conclude the freehold value is undervaluated and means it is a very discounted investment for the futur bomb of HDB lease

@alanweeproperty

5 ай бұрын

Each has its own merits n value. But FH landed lead the way so far..

Is what housing agents say a conflict of interest or in their self interest ? 😅 just askin. Not speaking about any agent in particular but in general

@alanweeproperty

Жыл бұрын

i hope u have learn something useful.

What about getting an aging hdb flat first (due to affordability and less initial outlay) then upgrade to a condo eventually and rent out the hdb? Would love to know your thoughts on this! Enjoyed ur content!

@alanweeproperty

Жыл бұрын

Can also esp for those that have budget limit...the only concern is the short lease that may not maintain it's value better than newer flat.

@alanweeproperty

Жыл бұрын

If u keep hdb n buy pte. Don't forget absd. Frankly, Not many have so much outlay. The absd could be easily a big chunk of the hdb value. U have to decide if it's worthwhile.

@ifuknjk

Жыл бұрын

hdb requires u 2 SELL b 4 buy condo..unless hdb is not in yr. name....

@QianBun

Жыл бұрын

@@ifuknjk yeah, I’m aware of the single owner route

I Believe the saying "Your flat price Will Never Go Down! " I always keep the status quo for the sake of Asset Appreciation. 👍 Majulah of the spore

@alanweeproperty

Жыл бұрын

listen half will do. that my take in life.

I think you made a mistake in calculating. You should divide the value by freehold percentage instead of multiplying.

@alanweeproperty

11 ай бұрын

Thank for highlighting. Someone earlier on has raise this with me. I will look into it when the chance arises to do part 2 one day... 😂 sure alot of ppl will dislikes..lol

@murexbo

11 ай бұрын

@@alanweeproperty looking forward to it. Still like your video a lot

It going to create social problems if all aging HDB are asked to sell.

@alanweeproperty

Жыл бұрын

please dont get me wrong. it is not my intention to ask all to sell. but i only want to highlight a potential tsunami in the years ahead. anyway. i am not so powerful to influence ppl to sell. but only to create awareness on aging lease.

My 1m hdb at Central location can last me till 110 years old. Stay until I die liao bah

@alanweeproperty

Жыл бұрын

interesting. yr lease till 110 years. which property is that?

@CT-xy6or

Жыл бұрын

@@alanweeproperty Not 110 years lease, lease expires when I am 110 years old

@alanweeproperty

Жыл бұрын

Wish u the best of health forever. Remember to exercise more in our beautiful nature parks.

HIP 2 and Vers will further mitigate lease and value decay, got scholars all thought of it liao. If all old hdb lose value like laosai what happen to all aged voters votes in our country of increasing elderly percentage population? So public housing is not only bricks and mortar but social engineering more.

@alanweeproperty

11 ай бұрын

That why some owners already taken charge to prevent such situation. The govt can mitigate it as what u have mention. But the facts is how can an old flat be selling equal to a newer flat? Say a new 4 room with 95 years selling for $1mil. If an old flat with 50 years also asking the same price. This mean the newer flat owner must be puzzling. Maths not right! This is the govt prob to solve an election issues.

Surprised u never mentioned sell 1 and buy 2. 😂

@alanweeproperty

Жыл бұрын

kns...lol....buy 1 solid solid property enough already. its not the number. its the quality.

@yipkf18

Жыл бұрын

@@alanweeproperty u are a good agent then.

@MrBluehorizonsugar

Жыл бұрын

@@yipkf18 Sell 1 buy 2 is not a bad move as long as not overstretching

@alanweeproperty

Жыл бұрын

@@MrBluehorizonsugar I am a poor agent that why. Ya. Not bad move. But those staying in old hdb flats most have difficulty upgrade to a condo. Don't even mention buy 2.

HDB Flat is Public Housing ! 99 leasehold is too long ! 69 leasehold is good enough ! HDB Flat cannot last 99 years anyway 😅

@alanweeproperty

Жыл бұрын

Ya. Who knoe one day G Say issue 70 years like china.

@chinchowpowpook

Жыл бұрын

U think the rc slab can tahan till 99 years with constant hacking n Reno n rehacking?

SLA is very well managed by our Min Law minister👍👍👍👏👏👏

@alanweeproperty

Жыл бұрын

he is a well respected minister.

ageing hdb ?...not all agree.... these flats r more spacious n nerer to town ..many reason why thry r still in demand...nearer to siblings...good transportation n nearer to desired schools...bigger govt. subsidies.....better chances of en-block.....50 yrs average is a looong way ....buy these valued flats...win win

@alanweeproperty

Жыл бұрын

yes. they are still in demand. but in a few years time..when more BTO flats flood the market. tell this to young buyers. they will tell u thank but that not for me. i have observe some old flats prices stagnant. like those in haig road area in my katong video.

@alanweeproperty

Жыл бұрын

enbloc or sers can only wait n wait. this means hdb will need to clear the entire bedok town since most of them are build in the late 1970s to early 1980s.

@ifuknjk

Жыл бұрын

@@alanweeproperty buyers don't care ..they will never out-live their flat..flats in hong kong n china has no duration of tenure...so is usa....possession of a home is NOT speculation...treat it as a home 2 stay

@ifuknjk

Жыл бұрын

@@alanweeproperty pinnacle now selling $1.4 million..very soon pinnacle will hv. residual of 50 yrs lease....n it shall depreciate by 50% ????nonsense !!!!..'cse of LOCATION n desireabilty...it will always hold its value....appreciating to $2.8 million to $10 million in years 2 come

@alanweeproperty

Жыл бұрын

Buyers buy old flats mainly becos it's affordable or got USP. like buy marine parade for it's schools.. Else buyers really care...becos I sell old flats I know.

Zzz

@alanweeproperty

Жыл бұрын

sorry for the Zzz...some may not like it. some will think its good. btw. its either way. hope i have enlighten u in anyway.

Your math is completely WRONG. The leasehold value at any point in the lease will be LESS than the freehold value by the percentages in the table you showed. This means your analysis is completely WRONG. Its kind of pathetic that agents in Singapore are so blur that this very obvious and glaring error didn't jump out at you right away. Its not a small calculation error, it fundamentally backwards!! PSLE student should do better..LOL

@alanweeproperty

2 ай бұрын

Nvm...but the gist of the content is there...

time to restrict PRs to buy HDB resale flats, PR can only rent flat, cannot buy

@alanweeproperty

11 ай бұрын

its not as simple as that....once u restrict. hdb prices will drop. all young SC want to buy new flat. who will want to buy older ones? later they complain they cannot upgrade to condo. cannot achieve that aspiration they want in SG. on the other hand, older SC complain hdb depreciating in value..request more PR to buy, etc...never ending. u have to satisfy the need of the young n old...tough job bro.

HDB is a need, so no matter the price up or down, is just a number, unless u cash out from hdb and go pte. Pte have higher chances of enboc than ser. Is ok to buy a hdb with 50 year lease left if u intended to stay there till go heaven. My suggestion is 90 year less property remaining leases to calculate your monthly expenses on a home. 90 is use because officials age is 85 so I plus 5 to go heaven. 😂 as a asia society we like to give our children something before we go heaven, so go for FH. But not all can afford such luxury, also now young couples only keep dogs as their kids😂. We will sure be like Japan in the next 30 year, with old hdb no body want to buy. Most likely HDB buy back at cheap price and rent out to the needy.

@alanweeproperty

Жыл бұрын

Ya..true... Maybe what happen in Japan may happen here one-day