As regular followers of my blog would know, I bought a cluster house in March 2009 (when the private property market was at a bottom). I also sold my HDB flat in November 2009 (when the HDB market was at a high - I think).
And right now, while the cluster house is still under construction, we've rented a condo apartment (when the rental market is still weak).
So far, so good - it would appear that I am reading the stars correctly. Here's a little more validation, for my astrological interpretations:
ST Jan 23, 2010So the COV was at a high in Q4 2009 (when I sold my HDB flat) and seems to be falling now (in January 2010).
Cash premiums for HDB flats hit a high
Q4 median COVs at $24,000, but have since dropped this month
By Jessica Cheam
BUYERS desperate to get into the public housing market are shelling out twice as much in cash top-ups for HDB resale flats as they did just a few months back.
These cash premiums are known as the Cash-over-Valuation (COV), and refer to the amount a buyer has to pay above a flat's valuation set by a bank.
High demand and tight supply drove the median COV paid to $24,000 in the fourth quarter of last year, according to fresh data from the Housing Board (HDB) yesterday.
That is double the $12,000 median in the previous three months and breaks the COV record of $22,000 achieved in the fourth quarter of 2007.
The buying frenzy seems to have abated a little since the new year. The HDB said yesterday that median COV has come down to $22,000 for the first half of this month.
Anyway, after moving into our current place, we realise that we like it a lot. It is quiet and peaceful, and the apartment has a nice view and is quite breezy.
The condo also has the kind of swimming pool that I really like. Not just big, but deep (and those of you who like swimming will know that a deep pool is much more fun than a shallow one).
Also the MRT is a short walk away. As the station is on the Circle Line, we think that the the apartment has the potential to appreciate in value, over the next one, two or three years.
That's because currently, only five stations on the Circle Line are operating. When the Circle Line is completely up and running, it will be the longest MRT line in Singapore, covering 31 stations. Home buyers would then be more willing to pay a higher premium, for the convenience of living near a Circle Line station.
So the beginnings of a new game plan has started to arise in my mind. It's all tentative. But who knows, we might end up BUYING the condo from the landlord, and staying here; and selling our cluster house for a good profit (high-end properties are expected to appreciate in 2010).
It seems possible that the landlord will agree to eventually sell, if we really discussed the matter with him. In fact, Mrs Wang has already tentatively sounded out the landlord and his wife and they are open to the idea.
Their main motivation for selling would be to make a clean break with Singapore and just get out for good. They already own a home in Australia and that's where the landlord's wife is staying, most of the year.
The landlord himself is still working in Singapore (and flies frequently between Australia and Singapore) but he is nearing retirement. When he retires, the plan is for the entire family to leave Singapore and live in Australia.
At my end, I'm starting to suspect that the corner cluster house might not be the most appropriate home for my family. The house is very big, with four floors, one basement and a large PES. It's the kind of place where I might have to shout "Where are you?!" a lot, before I can find my own kids, or wife, or maid.
Staying in a condo apartment might be a better idea for us.