Tuesday, 13 April 2021

Top Floor With No View How?


When we buy a top floor unit, the subliminal egoistic reasons can be as simple as:

1)  I can shit on you, you can't shit on me 

2)  I'm on top of the world feeling (like standing on a mountain summit)

Other than that, the main non-psychological (can see; can touch) reason is probably to get a good, better, best view! 

That's why we are willing to pay more for a hotel room with an awesome view of the lake, the ocean, the mountains, etc...

Would you pay a premium for a flat or condo on the top floor with lousy or no view?

So do your homework!

Don't be paying top dollar for a top floor unit only to have that wonderful view cutoff by another idiot development a few years down the line...

When you are looking into someone else's kitchen or living room, what's the difference if you are doing it from a top floor, from mid-level, or from the lowest unit?

For those who have a preoccupation with heat, just so you know, orientation like North/South facing versus East/West facing can be more impactful than how high or low your apartment unit is. 

Then again, there are inventions called air-con, blinds, curtains, solar blocking films to reduce heat in your apartment. 

Have you noticed there are people who will close their windows and draw their curtains/blinds and shield themselves completely from the outside world 24 hours a day?

If you are such a Dracula person, it can be a wonderful arbitrage opportunity if you choose the lowest unpopular floor instead!

For example, the price difference at my HDB BTO flat for a 3 room between the highest and lowest floor is $100K.

If you add the bank interests for a 20 or 30 year loan, that's quite a bit of savings!

Of course this works only if you buy to stay; not with an eye to sell in future.

If you buy with an eye to sell, what you like or prefer don't matter. 

Which means if you "think" you were smart to buy one floor below the top floor, using the top floor as a heat buffer, well, that makes as much sense as saying you're a 3/4 virgin!

Take those older HDB boxy rectangular flats. The corner units are sold at a premium over the other regular flats on the same floor in the resale market.  

No one would pay a corner flat's premium for a flat that's just next to the corner flat. Would you?

Similarly, if your flat is not the top floor, then it does not matter whether its one floor or two floors below the top floor. They will be lumped together as "high floor".

Big daddy quite smart. 

They sell the top and second highest floor at the same BTO price. Obviously they know about the urban myths and consumer psychology.

The price only comes down from the third highest floor downwards.

So if I want high floor but have phobia of heat staying at the top floor, I would choose the third highest floor and below. No way I would pay virgin price for an "almost" virgin. 

I don't think most future buyers would either.   

Big daddy smart; I not stupid.



  1. All I want is a good BTO number.

    1. Sillyinvestor,

      Well, go to Waterloo Street and ask Kwan Im Ma to bless you!

      The "lottery effect" of balloting is a source of both joy and frustration to many new HDB flat buyers.

      The alternative solution will the car COE auction method. Everyone bid for their desired ballot number.

      I'm sure this method will please the "Earn More" buyers as they would have no problem paying open market resale prices to secure their desired BTO flats.

      But doing so will remove the 2 bites of the cherry "subsidy" that many have been banking on...

      That would also shut-up those whining opposition parties who can't comprehend simple economics 101.

      If there's no subsidy from bid daddy, pray tell how anyone and everyone can flip a new BTO flat 5 years later for a quick profit?

      I won't be surprised if big daddy would try this COE method (or some variation) for future "prestige" HDB projects like the Pinnacle.

  2. Haha Smol,

    Dun know why, although many people ask to go find divine help, I do not wish to. Not that I dun believe, but maybe she is kind of busy with more important stuff.

    Of course, if not lottery, other people where got chance. COE is a playground of teh rich and the wannabe, and the wannabe are good business for the banks.

    But cars, people can go without and having a car lite society has its advantages.

    I hope my days dun see our leaders allowing open bidding for HDB in General, not those hit hot 🔥 DSS type.like pinnacle. It would mean they have let money get into their head and think only of economics and not social

    1. Sillyinvestor,

      LOL! There's hope for you to be an atheist yet ;)

      That's why there are voices telling big daddy NOT to build "prestige" HDB projects like Pinnacle in the future...

      But if big daddy only develops condos and landed properties on good, better, best locations, people will say that's creating elitist enclaves...

      Please, not another Bukit Timah...

      But if we build HDB on choice locations, since its "public housing", can't sell too high during BTO sale... The "lottery effect" can't be avoided once the 5 years minimum occupancy period is up...

      There's another alternative - price control. I don't think we want to go there... We've seen how the pre-war houses were derelict like slums under price control...

      So how?

      Go to Waterloo Street Kwan Im Ma and ask for divine answers lor!

  3. Smol,

    Mankind's penchant for heights likely stems from survival & tactical advantage. That's why inland castles, forts, military camps, towns etc tend to be on hills or mountains.

    And that's why those in NS combat units keep swearing at the constant exercises attacking and charging up hills to conquer "strategic locations".

    Nowadays it's for fun & profit, like this and this, lol.

    The next HDB lottery effect will be for those being planned for Downtown South with the revamping of current Keppel / Tg Pagar Terminals & P. Brani island.

    Some proposals are (i) 10-year MOP, (ii) cannot sell to PR, (iii) higher-than-normal pricing (the standard BTO 20%-30% off market price will still be pretty steep), (iv) additional seller's stamp duty. Or a combination of all these.

    1. Spur,

      A variation of we can shit on others; others can't shit on us.

      Early men too have discovered its easier to rain rocks and arrows DOWN than UP!

      Yes, Downtown South could be our equivalent Canary Wharf thingy - although mercifully, ours is more attas waterfront housing and recreation.

      I guess we already got Marina Boulevard with loads of spare land for
      future commercial office towers?

      I find (ii) cannot sell to PR the most obtuse suggestion of the lot. Huh??? Only Singapore born and bred bei kambings can come up with it...

      What's wrong with Singaporeans buying at subsidised prices from big daddy, and selling to PR at HIGHER open market prices!?

      Hey, if someone wants to buy from me at HIGHER prices, I won't care whether the cat is black or white ;)

      OK, I would be a little miffed if PR can buy new BTO flats directly from big daddy. Who needs more competition in getting a good, better, best ballot number?

      Hee, hee.

    2. Smol,

      LOL. These are obviously suggestions from green-eyed potentially unsuccessful Downtown South balloters.

      For successful ones, they will want the law changed to be able to sell to foreigners & martians, waiver of stamp duties, legal conveyancing & GST, guarantee no capital gains tax, as well as 1-day MOP lol.


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