Private Lift Lobby - Do you need it?

Been wanting to write on private lift lobby for some time but it slipped my mind till this particular Executive Condominium (EC), Waterwoods boasted of the feature as a first in an EC development.

Well, the developer is not wrong. It is the first in an EC development.

But am I excited about it? Hardly. Why?

First, the buyer is going to pay for it. Nothing new. If you don't mind, well go ahead. The developer says it will be an extra 2 sq m or 21.5 sq ft. If the average price is around $830 psf, it will cost you an extra $17,845. Extra means more downpayment, more loan, more interest to be paid, more stamp duty etc etc.

We know that developers will want to sell every bit of space in the development to maximise his profits. That is why it is usually a short distance from the lift to each unit. But now by providing a private lift lobby, it means that this corridor space becomes part of the saleable area of the unit. It will most likely or 100% become an addition to the balcony in the unit. The second picture below gives you an idea of the private lift lobby opening into a balcony.

So you are going to pay for that "fenced up" corridor space called a private lift lobby, something that is hardly necessary.

Secondly is it really private? For those who have visited condominiums with private lift lobbies will know that it is not. It is not possible to have one lift to serve one unit. Hence this lift will be equipped with card access system and two doors. To gain access to your unit, you have to scan your card. If you have nosy neighbours, they will look at your unit (assuming your private lift lobby does not come with a door to your unit) when the lift door opens. It will really be private if you live on the top floor.

What will it cost the developer? Not a lot, just an extra lift door on every level. That lift door will definitely be cheaper than the amount you are going to pay for that "private lift lobby".

Lastly are you going to get a door to your unit? Not every private lift lobby has a door for enhanced security. See below for two examples.

Private Lift Lobby with Door

Private Lift Lobby with no Door

Will Singaporeans bite? Of course, nowadays people just want something different from the rest.



For those interested to read about private lift lobbies in Waterwoods, you can click on the link below.
http://www.channelnewsasia.com/news/business/singapore/upcoming-waterwoods-ec-to/819438.html

Private Property Owners who Buys HDB Flats are Speculators?

Going by the statistics by HDB, they are saying that private property owners who buy HDB resale flats are speculators. This is an one-sided view and to me smacks of trying to placate Singaporeans.

Source: The Straits Times

Who is a speculator and how do one term a property buyer as a speculator? According to thefreedictionary.com, a speculator is someone who buys and resells for a profit. It can even be someone who risks losses for the possibility of considerable gains. If this is the definition used, then every property buyer/investor would be a speculator.

Source: thefreedictionary

Let's look at the bigger context of property investing in Singapore. In Singapore, there is no capital gains tax. This means that all the gains made from property investment(s) are not taxable unless you register a company to invest in properties. But if the frequency of buying and selling property by an individual is so-called "frequent", then the Inland Revenue Tax Authority will consider the individual as trading in properties and subject his gains to tax.

This to me is a fairer depiction of a speculator. In fact, in the property market, people who buy and sell within a short period of time are deemed as a speculator or flipper. For example, those who buy uncompleted properties and sell them before the development obtains its Certificate of Statutory Completion ie. subsales are known as flippers or speculators.

What the article by HDB fails to point out is the holding period of the HDB resale flats by these private property owners. If the HDB can show that these private property owners buy the resale HDB flats and sell them within a short period of time, say one to two years, then I would agree with the HDB that these people are speculators.

Please call a spade, a spade and nothing else.

New 3Gen HDB Flat - Rehash of Dual Key Concept

The HDB is going to launch a "new" concept flat in the September 2013 BTO exercise. Is this really new?

Lets look at the floor plan below. There will be four bedrooms - a studio for the grandparents, a room for the parents and two rooms for the children.

Source: HDB

Lets look at a dual key floorplan from Flamingo Valley. The differences between the 3Gen flat and a dual key concept are that in a dual key, the studio has a separate door and there is a dry kitchen.

Source: Flamingo Valley Floor Plans

So what's new about this flat? Nothing in fact. It is a rehash of the popular dual key concept in the private housing segment of the market.

It is just that the HDB do not want to build multi-generation flats or jumbo flats or even executive apartments or executive maisonettes.

The intention is good in that it encourages 3 generations to stay together. But hey, don't we already have the Multi-Generation Priority Scheme (MGPS)? In the MGPS, the parents and the married child will stay in the same neighbourhood but not together. It is the idea of "so near, yet so far". But this 3Gen flat will be "in your face" kind of living.

Will this be popular?

My guess is lukewarm. Why? It is tough to get two parties to apply together and not all parents and child+partner want to live together. MGPS has not seen much success because of the first reason.

Let me give you some illustrations. The list is not exhaustive.

Scenario 1 - Parents with only child. Parents own HDB flat.
This case is simpler as there is only one child. The parents will sell off the HDB flat and move over with the child. But there will be complication if the parents' current HDB flat is bought direct from the HDB. If they choose to buy a 2-bedroom, they have to pay a resale levy to HDB. The solution is to buy a studio but the parents have to cope with a smaller living space.

Scenario 2 - Parents with only child. Parents own private housing(s).
This will be very hard as HDB requires the parents to sell off the private housing if they were to buy a HDB.

Scenario 3 - Parents with more than one child. Parents own HDB flat.
This will depend on whether this is the youngest child to get married. If yes, the parents have an easier choice to make. Otherwise they cannot apply.

The key thing is the parents have to sell off the existing HDB flat when they apply under MGPS. It is not an easy task. Some parents want to leave behind a legacy.

Another thing to note - buyers of these 3Gen flats have to sell them to another 3Gen family in the future. Will there be more 3Gen families in the future? No one can tell. So buyers have to consider this when they apply.

The same policies and restrictions under MGPS will most likely apply to the 3Gen flats otherwise there will be loopholes to be exploited. So applicants for 3Gen flats will have to sell of their existing HDB flats or private housing.


The dual key concept in the private housing segment is very popular because people can rent out the studio and use the rental to pay for the installment yet retain their privacy. It means that not many people will "invite" their parents to stay with them.

So it may not be successful in the HDB market.


I hope this new 3Gen flat will not replace the MGPS .