The actions of the Geylang plot sounded a wake-up call for owners and buyers: Experts.
Geylang Property Market, in the next ten years, thousands of condominium or apartment unit owners here will find themselves sitting on properties with less than 50 years of lease term-based on current buyer sentiment, these properties are very different. popular.
On Tuesday, the Singapore Land Authority (SLA) confirmed that as a general policy, the owners of 191 private terraced houses at Lorong 3 in Geylang will not be compensated-this 2 hectares of land will be the first residential land in 2020 Return to the country after the annual lease expires. Except for Geylang Lorong No. 3, there are no other 60-year private residential leases.
In terms of condominiums and mixed-use development projects, Singapore has 13 projects — built between 1972 and 1977 — whose leases will expire in less than 60 years. In other words, by 2027, they will have less than 50 years of lease left—at this time, the value of private property will generally decline, real estate experts say.
There are 48 such 99-year leased development projects across the island, with a history of more than 30 years, of which the youngest-21-unit Cardiff Court and 116-unit Katong Park Towers-were built in 1987 and are based on Urban Redevelopment Bureau data compiled by Sing Tien Foo, associate professor of the Department of Real Estate, School of Design and Environment, National University of Singapore.
In Geylang property, Some of the oldest development projects include the People’s Park Complex (built in 1972) with 288 units, Neptune Pavilion with 752 units and Pearl Bank Apartments with 280 units completed in 1975 and 1976 respectively.
Owners of private homes with reduced leases have limited options—they can rent out their units or usually sell them at a loss. The best case is collective sales, but such opportunities may not always be available. For example, Pearl Bank experienced three overall sales attempts in 2007, 2008 and 2011, but they all ended in failure.
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Brandon Huang, a 37-year-old financial professional, grew up at Pearl Bank, where his parents still live. He believes that, far from being an asset, the property whose lease expires may become a liability. "Of course, my parents want to sell as a whole. This property is really old and the lease is about to expire, which makes financing for potential buyers not so easy," he said.
Experts reiterate that in a land scarce country like Singapore, the demand for residential properties will always exist. If sellers are realistic about their asking prices, there will be buyers.
Suntec Real Estate Consultants Research and Consulting Director Mr. Colin Tan reiterated that as long as sellers are realistic about the asking price, they can sell their property—no matter how short the lease is.
About Geylang living, Rental housing is another viable option. Alfred Chia, chief executive of financial consulting firm SingCapital, said: “As long as the quality and location of the property are good, Singaporean homeowners can rent it out.”
As an international metropolis, Hong Kong's real estate market has similarities with Singapore. Over there, some people worry about leasing the "cliff", and the local government is still trying to solve it.
In Hong Kong, almost all land leases will expire in 2047. This was after Hong Kong returned to China in 1997, and the government renewed all leases for 50 years.
Take a look at Geylang News to explore more information about this property market.