Misleading Information regarding replacement choices presented by Huttons.. Part I



This informative article contributed by SPs with expertise in areas of Property and Real Estate Businesses is in two parts.  Please visit this blog again in a day for Part II

PART I

Misleading Information regarding replacement choices presented by Huttons
Beware of misleading information about finding a replacement home


The property agent, Huttons, has been trying to convince the owners of Teresa Ville that there are many choices to replace your home if you sell your unit at Teresa Ville.

They are also trying to convince you that the money received by each owner is more than enough to buy a replacement home of the same quality and size.

This is misleading due to the following reasons.

1. Historical prices do not accurately reflect current & future prices of replacement homes

Huttons used past sales records of selected condominiums to show that the Teresa Ville owners have many affordable choices after the sale of Teresa Ville at the current low reserve price of $990 million. It is misleading to use historical prices to indicate future affordability of one’s replacement home when property prices are rising. Since mid-2017, residential property prices in Singapore has been increasing. As a result, the current asking prices of nearby condominiums will be higher than the past transacted prices.

Below are three condominiums listed by Huttons as potential replacement homes. The current asking prices are compiled from PropertyGuru website in the last week of Feb 2018. It shows that the average asking prices are higher than the past transacted prices.
Asking price, average ($)
Average Size (sqft)
Asking price, average ($psf)
Past transacted price, average ($psf)
Time period of past transacted prices
The Equatorial
$2,050,000
1,249
$1,641
$1,385
4 most recent sales from Sep 2017 to Feb 2018
Mirage Tower
$3,079,130
1,579
$1,945
$1,714
5 most recent sales from May 2017 to Feb 2018
Regency Suites
$2,447,325
1,421
$1,722
$1,638
3 most recent sales from Feb 2016 to Feb 2018
Source: URA, PropertyGuru


.. To be continued as Part II.. Please visit again in a day.


 Comments from Blog Admin: 

 SPs must be very careful while listening to the marketing tactics of Huttons, regarding replacement property options. They are trying to convince us that we shall be easily able to find an equivalent  replacement property with apportioned proceeds. Truth is, all options suggested by them are DOWN GRADE options .

Do your own research or read well researched articles posted in this blog by fellow SPs with deep expertise in Property segment.  Visit again for PART II of above article.

Thank you.   

Comments

  1. teresaville1005February 28, 2018 at 3:13 AM

    thank you !

    ReplyDelete
  2. AnonymousFebruary 28, 2018 at 3:13 AM

    thank you

    ReplyDelete
  3. AnonymousFebruary 28, 2018 at 3:16 AM

    I would rather consider en bloc AFTER the Keppel Railway and Container port areas are redeveloped and the 2 MRT stations behind Teresaville are up and running

    ReplyDelete

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