Today I want to talk about psf (per square foot).
Property market is booming like nobody business and the prices can be as volatile as the share market (up but hardly down).
When I first came to Singapore (that was about 4 years ago), many people told me that the rental has boom significantly just merely compared to a year before. A typical 3-room (2 bedrooms) HDB can fetched rental of $1,500 – $1,700 (I was told that a year before was $1,000 only) and rental yield of approximately 10%! Four years down the road and guess how much is the rental for the similar unit? It can easily fetch $2,200 to $2,400 (40% increment), which was faster than our salary increment! Not to mention about the inflation of other consumptions.
Condo prices have continue to increase despite recent cooling measures introduced by the government simply because too much liquidity in the market! These are the cooling measures:
1) Restricted loan financing (LTA 80%)
2) Seller Stamp Duty
3) Additional Buyer Stamp Duty
4) Restricted loan financing (Loan period ≤ 35 years)
I would say these measures will have the biggest negative impact on first time home buyer or small investors (hoping to earn some money) but have very little impact on the rich.
Although Singapore is in general small, but prices for different district can be varied. Just take new leasehold condo with 2 bedrooms for example, prices psf now can be in the range of:
Central above 2000
North (Novena/ AMK) 1600 – 1800
East 1000 – 1200
West 1000 – 1200 (can be slightly lower as compared to the east)
In short, you got to pay S$1,000psf to get a decent and accessible unit (2 times of the price as compared to 10 years ago). This is such as a worrying trend -__-