Serious PAP Leasehold Landed Property Sold For $750k Despite Only 13 Years Left On The Lease! GPGT! Oppies Still Say PAP No Good?

[JohnTan]

Despite the dwindling leases, transactions for the 70-year leasehold landed properties in Jalan Chempaka Puteh, Jalan Chempaka Kuning and Bedok Road have been mostly profitable.

The leases for 144 terraced and semi-detached houses there are set to run out in 10 years – in August 2034.

Checks by The Straits Times found 110 transactions for such homes – with leases beginning in 1964 – between 1995 and 2023. The earliest recorded transaction on the Urban Redevelopment Authority (URA) Realis caveats database was in 1995.

Of the 38 homes that changed hands at least twice during this period, 27 transactions were profitable while 11 made a loss.

Property analysts said while the shrinking lease was notable, this was not unusual as overall prices of landed residential homes have risen.

Mr Nicholas Mak, chief research officer at property search portal Mogul.sg, said the profitable transactions could be because the homes were bought years ago when prices were lower.

For instance, the most profitable transaction was for a 4,300 sq ft semi-detached house in Bedok Road, which changed hands in April 2022 at $800,000. The seller, who bought the home at $342,000 in 2001, made a profit of $458,000.

On the other hand, the seller of a 4,100 sq ft terraced house in Jalan Chempaka Kuning recorded the biggest loss of $300,000 when it was sold for $450,000 in 2016. The Housing Board upgrader had bought the home at $750,000 in 2013.

Mr Mak noted that most of the home owners in the estate were not speculators as the median holding period – the amount of time a seller owns the home before selling it – was seven years, with the longest holding period at nearly 22 years.

A former resident who wanted to be known only as Mr Eddy, 66, who sold his semi-detached house in Bedok Road for $800,000 in 2023, said he did not expect to make a significant profit off the property. He bought the 4,100 sq ft home in 2002 at $410,000.

“It was on the market for eight months before I got the price I wanted,” said the regional sales director, adding that the buyers were a middle-aged couple who wanted to set up a home office.

While some residents have been hoping for more clarity on the fate of the land when the lease is up, others have been putting their homes up for sale on listing platform PropertyGuru. Checks from April 16 to May 24 showed that asking prices ranged from $550,000 to $790,000.

Although the transactions in the Chempaka estate were mostly profitable, Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, said the overall values of properties that are 50 years and older have not increased “too significantly” over the past 10 years.

“This is because the cost of maintenance tends to be higher for such older properties. For those left with very few years, the depreciation may even be faster,” she said, noting that the affected homes are 60 years old.

Mr Mak added: “A rational buyer would not pay significantly more than 10 years’ worth of rental value for these houses, unless he has reasons to believe that the properties have some residual value at the end of the lease.”

Buyers would also have to pay for the home in cash, as they would not be able to get a bank loan due to the short remaining lease.

However, Ms Sun said buyers may still find the landed homes there to be affordable given the large land area.

In District 16, the Bedok and Upper East Coast area, leasehold landed homes were sold at a median of $2.75 million from January to May 2024, while freehold landed properties changed hands at a median of $4.68 million, she said.

A resident who wanted to be known only as Mr Koh bought a 3,300 sq ft semi-detached home in Jalan Chempaka Puteh with 13 years left on its lease in 2021 for about $750,000.

“I felt that the asking price was reasonable for the size – it was about $250 per sq ft, and renovated,” said the 51-year-old. “Simpang Bedok is also at our doorstep so there’s easy access to shops and food.”

He subsequently bought another property in the area for about $500,000, which he rents to a company at a “decent rental yield”.

Mr Mak said the 70-year leasehold homes, at less than $1 million each, were cheaper than some HDB flats.

“It’s very rare to be able to buy a landed house for that price. But the buyer must bear in mind that the days of owning that house are numbered,” he added.

https://www.straitstimes.com/singap...mpaka-landed-homes-despite-leases-running-out

 

[winners]

The land does not belong to the government lah. It is privately held by the late Koh Sek Lim, which Camelot took over as the trusteeship of the estate in July 2021. Nothing to do with PAP's credit. Don't mislead here.

 

[syed putra]

When. The. Leases expire, it should be returned back to the Malays.

 

[NanoSpeed]

When. The. Leases expire, it should be returned back to the Malays.

Malays are the real owners of this land. The Chinese girls should regard marrying a Malay as an upgrade.

 

[Liquigas]

This land will be returned to Malaysia through a future merger though very unlikely to happen during the present generation.

 

[k1976]

Will need to return to HDBee in less than 160moons

Despite the dwindling leases, transactions for the 70-year leasehold landed properties in Jalan Chempaka Puteh, Jalan Chempaka Kuning and Bedok Road have been mostly profitable.

The leases for 144 terraced and semi-detached houses there are set to run out in 10 years – in August 2034.

Checks by The Straits Times found 110 transactions for such homes – with leases beginning in 1964 – between 1995 and 2023. The earliest recorded transaction on the Urban Redevelopment Authority (URA) Realis caveats database was in 1995.

Of the 38 homes that changed hands at least twice during this period, 27 transactions were profitable while 11 made a loss.

Property analysts said while the shrinking lease was notable, this was not unusual as overall prices of landed residential homes have risen.

Mr Nicholas Mak, chief research officer at property search portal Mogul.sg, said the profitable transactions could be because the homes were bought years ago when prices were lower.

For instance, the most profitable transaction was for a 4,300 sq ft semi-detached house in Bedok Road, which changed hands in April 2022 at $800,000. The seller, who bought the home at $342,000 in 2001, made a profit of $458,000.

On the other hand, the seller of a 4,100 sq ft terraced house in Jalan Chempaka Kuning recorded the biggest loss of $300,000 when it was sold for $450,000 in 2016. The Housing Board upgrader had bought the home at $750,000 in 2013.

Mr Mak noted that most of the home owners in the estate were not speculators as the median holding period – the amount of time a seller owns the home before selling it – was seven years, with the longest holding period at nearly 22 years.

A former resident who wanted to be known only as Mr Eddy, 66, who sold his semi-detached house in Bedok Road for $800,000 in 2023, said he did not expect to make a significant profit off the property. He bought the 4,100 sq ft home in 2002 at $410,000.

“It was on the market for eight months before I got the price I wanted,” said the regional sales director, adding that the buyers were a middle-aged couple who wanted to set up a home office.

While some residents have been hoping for more clarity on the fate of the land when the lease is up, others have been putting their homes up for sale on listing platform PropertyGuru. Checks from April 16 to May 24 showed that asking prices ranged from $550,000 to $790,000.

Although the transactions in the Chempaka estate were mostly profitable, Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, said the overall values of properties that are 50 years and older have not increased “too significantly” over the past 10 years.

“This is because the cost of maintenance tends to be higher for such older properties. For those left with very few years, the depreciation may even be faster,” she said, noting that the affected homes are 60 years old.

Mr Mak added: “A rational buyer would not pay significantly more than 10 years’ worth of rental value for these houses, unless he has reasons to believe that the properties have some residual value at the end of the lease.”

Buyers would also have to pay for the home in cash, as they would not be able to get a bank loan due to the short remaining lease.

However, Ms Sun said buyers may still find the landed homes there to be affordable given the large land area.

In District 16, the Bedok and Upper East Coast area, leasehold landed homes were sold at a median of $2.75 million from January to May 2024, while freehold landed properties changed hands at a median of $4.68 million, she said.

A resident who wanted to be known only as Mr Koh bought a 3,300 sq ft semi-detached home in Jalan Chempaka Puteh with 13 years left on its lease in 2021 for about $750,000.

“I felt that the asking price was reasonable for the size – it was about $250 per sq ft, and renovated,” said the 51-year-old. “Simpang Bedok is also at our doorstep so there’s easy access to shops and food.”

He subsequently bought another property in the area for about $500,000, which he rents to a company at a “decent rental yield”.

Mr Mak said the 70-year leasehold homes, at less than $1 million each, were cheaper than some HDB flats.

“It’s very rare to be able to buy a landed house for that price. But the buyer must bear in mind that the days of owning that house are numbered,” he added.

https://www.straitstimes.com/singap...mpaka-landed-homes-despite-leases-running-out

 

[bobby]

If people can afford to pay up to $300k for a car that lasts only for 10 years…,this is considered a good buy.

 

[mahjongking]

When. The. Leases expire, it should be returned back to the Malays.

nope. the dinosaurs were first here 65 million years ago.....lol
on a serious note, who gives a fuck? we all gonna die eventually one day even if WWIII dont hit us soon

 

[k1976]

Despite the dwindling leases, transactions for the 70-year leasehold landed properties in Jalan Chempaka Puteh, Jalan Chempaka Kuning and Bedok Road have been mostly profitable.

The leases for 144 terraced and semi-detached houses there are set to run out in 10 years – in August 2034.

Checks by The Straits Times found 110 transactions for such homes – with leases beginning in 1964 – between 1995 and 2023. The earliest recorded transaction on the Urban Redevelopment Authority (URA) Realis caveats database was in 1995.

Of the 38 homes that changed hands at least twice during this period, 27 transactions were profitable while 11 made a loss.

Property analysts said while the shrinking lease was notable, this was not unusual as overall prices of landed residential homes have risen.

Mr Nicholas Mak, chief research officer at property search portal Mogul.sg, said the profitable transactions could be because the homes were bought years ago when prices were lower.

For instance, the most profitable transaction was for a 4,300 sq ft semi-detached house in Bedok Road, which changed hands in April 2022 at $800,000. The seller, who bought the home at $342,000 in 2001, made a profit of $458,000.

On the other hand, the seller of a 4,100 sq ft terraced house in Jalan Chempaka Kuning recorded the biggest loss of $300,000 when it was sold for $450,000 in 2016. The Housing Board upgrader had bought the home at $750,000 in 2013.

Mr Mak noted that most of the home owners in the estate were not speculators as the median holding period – the amount of time a seller owns the home before selling it – was seven years, with the longest holding period at nearly 22 years.

A former resident who wanted to be known only as Mr Eddy, 66, who sold his semi-detached house in Bedok Road for $800,000 in 2023, said he did not expect to make a significant profit off the property. He bought the 4,100 sq ft home in 2002 at $410,000.

“It was on the market for eight months before I got the price I wanted,” said the regional sales director, adding that the buyers were a middle-aged couple who wanted to set up a home office.

While some residents have been hoping for more clarity on the fate of the land when the lease is up, others have been putting their homes up for sale on listing platform PropertyGuru. Checks from April 16 to May 24 showed that asking prices ranged from $550,000 to $790,000.

Although the transactions in the Chempaka estate were mostly profitable, Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, said the overall values of properties that are 50 years and older have not increased “too significantly” over the past 10 years.

“This is because the cost of maintenance tends to be higher for such older properties. For those left with very few years, the depreciation may even be faster,” she said, noting that the affected homes are 60 years old.

Mr Mak added: “A rational buyer would not pay significantly more than 10 years’ worth of rental value for these houses, unless he has reasons to believe that the properties have some residual value at the end of the lease.”

Buyers would also have to pay for the home in cash, as they would not be able to get a bank loan due to the short remaining lease.

However, Ms Sun said buyers may still find the landed homes there to be affordable given the large land area.

In District 16, the Bedok and Upper East Coast area, leasehold landed homes were sold at a median of $2.75 million from January to May 2024, while freehold landed properties changed hands at a median of $4.68 million, she said.

A resident who wanted to be known only as Mr Koh bought a 3,300 sq ft semi-detached home in Jalan Chempaka Puteh with 13 years left on its lease in 2021 for about $750,000.

“I felt that the asking price was reasonable for the size – it was about $250 per sq ft, and renovated,” said the 51-year-old. “Simpang Bedok is also at our doorstep so there’s easy access to shops and food.”

He subsequently bought another property in the area for about $500,000, which he rents to a company at a “decent rental yield”.

Mr Mak said the 70-year leasehold homes, at less than $1 million each, were cheaper than some HDB flats.

“It’s very rare to be able to buy a landed house for that price. But the buyer must bear in mind that the days of owning that house are numbered,” he added.

https://www.straitstimes.com/singap...mpaka-landed-homes-despite-leases-running-out

Can lease out for Cheekon Rice store?

 

[k1976]

https://stackedhomes.com/editorial/...xpires-and-should-we-change-things/#gs.9yneb1


Let’s start with the official answer: the value of your flat would drop to zero. Everything gets returned to the state. While we haven’t yet seen this happen with an HDB flat, we have seen it happen with a batch of private properties in Geylang: and that should make it clear that the government is dead serious about it.

That said as Reddit user Paullesq has pointed out, it’s not as simple as just evicting people from their homes at the end of the lease – there is often a political slant to it. There have been numerous examples cited from China, Hong Kong, and Malaysia that the pressures from the public have resulted in the leases being renewed for a fee.

And in reality in Singapore too, we’ve seen many “interventions” that take place before a lease is up, leading some to speculate that the process can’t be so harsh. The two that we know can happen are:

1. Selective En-bloc Redevelopment Scheme (SERS)

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This is the most ideal solution for most HDB owners. The government takes back the flats before the lease expires, gives out some compensation (as appropriate to the situation), and gives new homes with fresh leases to the owners.

 

[k1976]

However, SERS is only going to happen with a tiny number of HDB projects; only an estimated four to five per cent of HDB estates will see SERS. As such, it’s not a solution you should ever count on, when buying old flats (although if you are calculated enough, it could pay off).

SERS sites don’t always go toward future HDB flats by the way; they are often bought by developers for private housing. However, we speculate that, with HDB planning to have one Prime Location Housing (PLH) launch per year, more SERS sites in future will be redeveloped into PLH flats, instead of going toward more condos.

2. Voluntary En-bloc Redevelopment Scheme (VERS)

When an HDB development reaches 70 years or older, a VERS offer will be made. If enough flat owners’ consent to it, the flats will be bought back by HDB, with a payout based on the remaining lease.

We haven’t seen a VERS exercise in Singapore yet, so the exact details are still sketchy at this point. However, the government has made clear that VERS compensation will be “less generous” than SERS.

 

[k1976]

We suspect the compensation will be based on Bala’s Curve, where leasehold land value is pegged to a percentage of freehold land (we’ve written more about it here). The Singapore Land Authority (SLA), when pricing the top-up of leases, seems to follow pricing that’s broadly similar; so it’s reasonable to expect that the value of the remaining lease would be priced the same way.

What would worry us, however, is the process of getting consent. If anything like the requirement for a condo’s en-bloc sale, the nature of many HDB projects makes a common consensus difficult. This is because:

• More HDB owners are pure home owners rather than investors. They may not be moved by the allure of more money; however fair the offer may be.
• HDB projects often have a higher and more varied population density; this makes shared consensus tougher to acquire (compared to, say, a boutique condo where all 50+ unit owners are of the same socioeconomic background and intent).
• If it’s an old development with lots of old folks, we can’t imagine their being happy to move in their late 60s, 70s, etc. Especially not for the (seemingly) small amount of compensation they’re getting. We shouldn’t assume all of them have sufficient savings to afford a new, equally comfortable home, let alone want to deal with the hassle of moving.

 

[worcer]

Means buyer dun need borrow money can pay straight with cash... because only left 13 years lease property cannot borrow from bank....

Also possible they know the property going to extend lease life...

 

[syed putra]

Means buyer dun need borrow money can pay straight with cash... because only left 13 years lease property cannot borrow from bank....

Also possible they know the property going to extend lease life...

Ate you saying they have inside info? Isnt this illegal?

 

[laksaboy]

Ate you saying they have inside info? Isnt this illegal?

It's not when you are run by lawless technocrats.

 

[Eisenhut]

Agent sell to Agent ...shouldn't the sale be investigated?

 

[syed putra]

It's not when you are run by lawless technocrats

Agent sell to Agent ...shouldn't the sale be investigated?

This property should be seized and confiscated.

 

[millim6868]

Buy from pap curve is up , pap buy from u curve goes down, lol, then they will curve up to buyers again,lol

 

[oliverlee]

best is ridout bungalows. Gift of a lifetime