Wolf Money(my property journey part 1 of 3)

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(HDB where 80 percent of the population live)


I will be coming out with a 3 part series on my property journey. Property is a subject close to everyone’s heart. Buying a property is a big financial undertaking with most Singaporean having a good part of their wealth lock up in property. For couple starting out, HDB BTO remain a good way to start your climb up the property ladder. If you don’t buy a super cold area, chance of a profitable HDB sale when you decide to move on a few years down the road is high. A profitable sale creates equity for your next property purchase. 

I recently sold my HDB for what I regarded as a good price, not to undermine the buyer of my flat, she got a super high floor unit with breadth taking view, excellent city location sandwich between 2 mrt stations and fully renovated house in pristine condition. I personally think HDB prices had gone crazy no thank to the delay in construction due to tight supply of construction workers and materials prompting buyers into the resale market. The private housing market is of no better. The private housing market do have pocket of opportunities even in a seller market. Just for sharing out of interest since I had done extensive research on the subject matter. Do note all views expressed here are mine alone. Do chart your own property path base on your own unique circumstances. 


(Source Straits Times published on 30 May 2022) 

We decide to move on due to schooling need for my son and the heavy ABSD force us to part way with our HDB. Initially we do have intention of holding on the unit for rental income. First mistake made, if you have intention of owning a private property without the need to sell your current HDB, one of the spouse must not be the owner of the flat, an occupier status allow a name to free up in 5 years for future purchase without the need to pay the 17 percent ABSD. 

I have been closely observing the property market especially in Geylang/Paya Lebar area for many years given the rejuvenation introduced by government a decade ago starting with the Paya Lebar Quarter integrated development. Next the government made a decision to decommission the Paya Lebar airbase from 2030. This move have wide implications where large piece of 800ha land equaling to 5x the size of Toa Payoh town can be free up for new development including those under height restriction due flight path. Minister of National Development Desmond Lee in a recent interview confirmed his department will be reviewing the height restriction around the airbase after 2030. 


(Source URA masterplan 2019 Most of Geylang plot ratio within blue border are 2.8 and above)


(Source URA planning control, area with purple border where height restriction are in place in Geylang area with a maximum height of 8 floors)



(Screenshot from property guru website, gross plot ratio)


The most draconian height restriction was imposed on Geylang from Lorong 1 to Lorong 44 due to flight path. Most Geylang properties have plot ratio of up to 2.8(up to 36 floors) but due to height restriction all properties in Geylang are subjected to a maximum height of 8 floors. With the lifting of height restriction, interest in Geylang properties are likely to rise in the years leading up to 2030 and beyond. I will share with you the specific area in Geylang which I think representing value in my next blog. Stay tune to part 2.


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Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.

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