Interested to buy a property for own stay

[Apmt Hunter]

We are a couple that is looking to buy our own place, largely because we are sick of the increasing rent that landlord have been asking and we plan to stay in Singapore permanently.

This year, our LL wants a 30% increment which do not seems sensible. In any case, I am sure the topic about greedy LL have been discussed numerous times and beyond...

Now, we decided to buy our own place, and we are trying to figure out a few things...

1) What's the deal about prices based on psf? 
As a buyer, I don't think it affect me significantly, if the price in condo A is $5 cheaper psf, compared to condo B, given that the size and layer are completely different. It's not a situation whereby, I can request for another 50sf, if I find the psf price good/reasonable. Whenever I speak to an agent, they go in long depth about the psf pricing, when I just want to know the absolute price tag.

Am I missing something here? 

2) I have been googling the particular website which involves property and guru, comparing prices between the different condos & apartment. We also made appointments and viewed a few properties. In 2 of the properties that we viewed, the property agents told us the owner will sell at a price that is 15% lower than the price he has published on the property website. In the rest of the viewing, the agents go into long details (again) on the psf, and I start to lose interest.

I know this question is similar to asking, how long is a piece of string, but I am curious to know, for those who have successfully purchased a property in Singapore,

How much have you managed to negotiate against the original asking price? Do you feel that your final purchase price is often 10-20% lower than the asking price?

The reason I asked is, I have set a budget, and if I know that I can negotiate the price lower by 10-20%, then I will start looking at property a little above our budget, and focus on negotiating.

Any ideas?

Kind comments please...

[TaxiUncle]

First you decide what you want to pay.

Then find out if the asking price is negotiable.

If not then walk.

The agent will call you back quickly if there is indeed some room for discussion.

If negotiable then 10% is a good guide but try 15% first.

Or - ask what bottom price is and then offer 5% less if you think it is getting near your price.

psf - a common factor to compare different sized units.

[AManCalledHorse]

Not sure what your problem with psf is. It's just another way of stating the price and enables you to easily compare the prices of different sized units across different condos. You may not think it matters to you now, but it will certainly matter you if and when you come to sell


Condo A - Asking $1m for 1000 sq ft  ie $1000 psf
Condo B - Asking $950k for 900 sq ft ie $1055 psf


So B is cheaper, but A (all other things being equal) is probably better value

So if you buy at $1055 psf and the market rate at the condo concerned is $1000 psf then you have overpaid (assuming the market is not rising rapidly)

The market is very commoditised as many units are basically the same and in similar condition. There are of course adjustment for floor number/facing/degree of renovation etc, but the use of psf gives you a good starting point when trying to work out the price

[Blaze]

The reason I asked is, I have set a budget, and if I know that I can negotiate the price lower by 10-20%, then I will start looking at property a little above our budget, and focus on negotiating.

OP, the answer to your last question depends whether the seller is a developer or private person. Developers are not likely to negotiate the price lower but a private seller yes, depending of course on his situation and how many offers he has received for the unit.

I'm also a bit puzzled about using sq foot... I just received a valuation for our condo and it stated xx square meters. I believe Singapore is using metric system and all official archives are in square meters. I think the dog-boxes here are too small so they have to use sq feet in marketing materials to make it sound bigger.

[Hahaaaa]

No need to rush - wait for the next round of tightening meaures first.  The first 3 rounds were pretty useless, so they are working on what the next move needs to be.

[cmdsea]

Its always dangerous to make assumptions about asking prices and "discounts" as there are any number of agents after a vendor's business and they all promise ever higher asking prices just to snag the deal.

Rather than looking at asking prices much better to look at the historical transacted price info on the URA website for Condo's in the area you would like to live, find a few developments that fit your budget then start viewing.

Far better to secure a deal at $20k off an apartment selling at the current market rate than getting a $200k discount off something that was overpriced by $300k in the first place.!