singapore property weekly issue 214
TRANSCRIPT
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Issue 214Copyright © 2011-2014 www.Propwise.sg. All Rights Reserved.
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CONTENTS
p2 20 Pearls of Wisdom to Build Sustainable
Property Wealth
p6 Singapore Property News This Week
p10 Resale Property Transactions
(June 10 – June 16 )
Welcome to the 214th edition of the
Singapore Property Weekly .
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
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By Gerald Tay (guest contributor)
Someone once told me that there are two
types of people in the world those that spend
all their time trying to make their fortunes but
lose them eventually, and those that oncethey make their fortunes, spend all their time
trying to guard it. Who do you prefer to be?
Everyone says they want to be the latter, but
most end up as the former.
If you want to be able to guard your fortune
instead of losing it, take heed of the following
pearls of wisdom I‟ve gathered over the
years.
20 Pearls of Wisdom to Build Sustainable Property Wealth
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1. Property is a poorhedge against inflation
when you buy at inflated, future prices.
2. Singapore‟s population growth has no
direct correlation with property prices.3. Spend time learning the math. The math
will keep you from buying a bad deal,
which is more important than buying a
good one!
4. Keep in mind the Chinese proverb „马到功
成‟ (literally translated as “success is
when the horses come”). Success comes
only to those who dare and act; it seldom
goes to the timid. The pessimist
complains about the wind; the optimist
expects it to change; the realist adjuststhe sails.
5. The people who say „All I want is to buy
and sell my property and be a millionaire‟
are a bit like blokes who say „All I want is
to go out and get laid tonight.‟ They
normally go home on their own.
6. Owning property with little or no down
payment can sound quite wonderful, butthere are major pitfalls to this strategy –
and plenty of marketing BS too!
7. The prized location properties have
corresponding negative cash flows that
may negate any true increase in wealth
from one‟s long term appreciation invalue.
8. The Cash Flow Positive Mantra means
nothing if a whole $200 a month net cash
flow on a million dollar property purchase
is all you get for your trouble and effort.9. Own properties that pay a fair Cash-on-
Cash Return. When you buy property you
are taking money out of your liquid
financial assets and putting it into a very
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illiquid asset – property. If you were
earning a rate of return on your financial
assets, say 4 percent or 6 percent, you
should strive to earn a fair cash-on-cash
rate of return on your property.
10. Owning a property is less risky than
owning stocks and shares, if you do it
properly.
11. The investment is only as good as theskill
of the investor.
12. "Return = Skill + Work." The moreskills
and work you put into your property
investment, the higher your return should
be.
13. It is important to understand who is goingto be renting from you before buying a
property. If you cannot answer that
question, then you haven‟t done enough
research. If you need to spend hours in
front of the entrance of an apartment just
to see what kind of occupants dwell in the
building, you do just that.
14. There‟s no such thing as a bad property
investment. Only a bad investor. So never
blame everyone else but yourself for
failure(scams included).
15. One man‟s meat is another man‟s
poison. What is a good property for oneperson, maybe a bad one for another.
16. Know whether you are an Investor or a
Speculator. The difference is simple: an
investor looks at a property as part of a
business and he as the owner for the long
term, while the speculator see property as
an asset they buy now in the hope that
someone will pay more for it down the
road.
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17. If you‟re not prepared to manage tenants,
avoid property investing. Buy mutual
funds instead.
18. A market correction is an opportunity for
the patient, long-term investor. Long-term
investors should welcome market
corrections as an opportunity to purchase
good properties at attractive prices.
19. Property investing is not about how
beautiful the property is, but rather howmuch the return you are getting on your
investment. Or as one property investor
once told me, "Only women are beautiful.
What are the numbers?"
20. Home buyers are looking for attractive
neighbourhoods, good schools,
amenities, connectivity and nearby MRT
stations. Experienced property investors
buy investment properties solely based on
factors that will influence rents, prices and
occupancy.
If you‟ve enjoyed these gems, I have dozens
more I‟ve gathered to share in the future.
By guest contributor Gerald Tay, who is the
founder and coach at CREI Academy Group
Pte Ltd , an organization dedicated to
empowering retail property investors with
smarter investing philosophy and strategies.
He is a full-time investor with over 13 years of
solid experience in building his wealth
through Property Investment and is financially
wealthy today.
http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/
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Singapore Property This Week
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Residential
S it e a t D u nd ee R o ad s o l d f o r $4 83m i n
t ender
In a recently closed tender, a residential site
at Dundee Road was sold to the top bidder
for $483.18 million or $871.14 psf ppr. Thesite, which has a 99-year lease, is likely to be
developed into a 700-unit condominium
according to the Business Times. The land
parcel is located near to Queenstown MRT
Station and is about 10,516 sq m. It is
expected to be launched in Q1 of 2016.Desmond Sim from CBRE said that the high
bid price reflects developers‟ interest in the
land parcel. Nonetheless, Chua Yang Liang
from JLL pointed out that the number of bidsplaced in that tender was the lowest for a
residential site in the rest of central region
since Q3 2014.
(Source: Business Times)
H ig h v ac an c y r at es i n c o n do s s u g ges t o v e r s u p p l y
According to the Business Times, rising
vacancies in the private housing market may
suggest that there is an oversupply. A year
ago, the Business Times photographed 10
completed condo projects to show that many
condo units are still unoccupied. In May this
year, a similar photography project was
conducted for the 10 developments.
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However, only one out of the 10
developments was visibly more lit up than last
year, said the Business Times. Jacqueline
Wong from Savills Singapore said that these
developments may appear unoccupied astheir tenants may be foreigners who are
based here but travel around the region for
work. Not only so, these units may be used
as holiday homes. Furthermore, Ong Kah
Seng added that some local high-net-worth
individuals may be holding off from rentingout the newly-completed projects due to the
weak rentals. On the other hand, experts
believe that the unoccupied condos in the
sample that Business Times photographed,
could suggest that there is a problem of
oversupply. The number of units that haveobtained TOP surged from 13,150 units in
2013 to 19,941 units in 2014, up by 51.6%.
Also, the vacancy rates of private homes
increased by 2.8% from end-2010 to end-
2014. While the vacancy rate had fallen from
7.8% in 2014 to 7.2% in Q1 of 2015, market
experts expect the occupancy rates to drop
for the rest of the year due to an increase in
supply of private homes.
(Source: Business Times)
R e d e v e l o p m e n t s i t e a t A m b e r R o a d u p f o r
t ender
Located at Katong, a redevelopment site that
is about 22,800 sq ft has been put up for
tender. The freehold site at Amber Road has
a gross plot ratio of 2.8. It is about 150
meters from Amber MRT Station, which is
expected to be operational in 2023. It has
been zoned for residential use under the
2008 Master Plan. According to the Business
Times, the property is expected to attract bids
that are about $60 million or $941 psf ppr
before factoring in development charges.
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Yong Choon Fah from JLL added that for a
redevelopment up to a gross plot ratio of 2.8,
the development charges may be around
$18.47 million. Therefore, for a land price of
$60 million, the land rate would be around$1,230 psf ppr. The tender will close on July
28.
(Source: Business Times)
M o r e r en t e r s m a y s w i t c h t o b u y i n g p r i v a te
homes in 2016
According to a report by Nomura, more
Singaporeans are choosing to rent their
private homes. However, Sai Min Chow
believes that when rental contracts are up for
renewal in 2016, this group of renters may opt
to purchase private homes instead. Sai added
that the motivation to buy in 2016 may be due
to a change in policy that raises the CPF
salary ceiling to $6,000, and also due to weak
leasing environment. According to Sai,
landlords may choose to sell their homes at a
discounted price if they find it hard to lease
out their properties. This may lead to a larger
number of resale transactions. In 2014,56,000 private homes were leased out. This
was an 11.9% increase from the previous
year. Due to low rental prices, in Q1 this year,
leasing transactions in the private housing
market rose by 17.2% year-on-year, said the
Business Times.
(Source: Business Times)
Commercial
T a m p i n e s i n d u s t r i a l p l o t s o l d f o r $ 5 . 9 m i n
t ender
An industrial site at Tampines was sold for
$5.9 million or $68.85 psf ppr in a tender. The
plot is about 5,686 sq m large.
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It has a 1.4 permissible gross plot ratio and
has been zoned for heavy industrial use.
Nicholas Mak from SLP believes that the top
bid for the land parcel has been priced lower
than a similar-sized plot at Tuas because of
the restrictions on land usage. Mak believes
that the land parcel may be developed into a
storage facility for bulky construction
equipment.
SINGAPORE PROPERTY WEEKLY Issue 214
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Non-Landed Residential Resale Property Transactions for the Week of Jun 10 – Jun 16
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
3 LANDMARK TOWER 1,292 1,150,000 890 994 REFLECTIONS AT KEPPEL BAY 1,292 2,900,000 2,245 99
5 THE PARC CONDOMINIUM 1,216 1,508,000 1,240 FH
5 THE PARC CONDOMINIUM 1,302 1,610,800 1,237 FH
5 VISTA PARK 958 850,000 887 99
8 CITYLIGHTS 678 1,160,000 1,711 99
8 CITYLIGHTS 678 1,155,000 1,703 99
8 MERA SPRINGS 1,066 1,305,000 1,225 FH
9 REIGNWOOD HAMILTON SCOTTS 2,756 8,500,000 3,085 FH
9 THE CLAYMORE 3,348 8,500,000 2,539 FH
9 MARTIN PLACE RESIDENCES 1,894 3 ,900,000 2,059 FH
9 THE LIGHT @ CAIRNHILL 1,561 3,150,000 2,018 FH
9 RIVERGATE 1,539 3,047,000 1,980 FH
9 PARC MACKENZIE 1,335 2,002,500 1,500 FH
9 HORIZON TOWER 2,616 2,850,000 1,090 99
10 TOMLINSON HEIGHTS 2,745 7,950,000 2,896 FH
10 ARDMORE II 2,024 5,800,000 2,866 FH
10 GOODWOOD RESIDENCE 2,454 6,572,124 2,678 FH
10 BOTANIC GARDENS VIEW 1,259 2,400,000 1,906 FH
10 THE TRESOR 1,604 2,680,000 1,671 999
10 THE TRIZON 1,894 2,800,000 1,478 FH
10 SOMMERVILLE GRANDEUR 1,195 1,735,000 1,452 FH
10 THE MERASAGA 1,367 1,940,000 1,419 99
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
10 MONTVIEW 1,507 2,100,000 1,394 FH10 ALLSWORTH PARK 1,959 2,530,000 1,291 999
11 NINETEEN SHELFORD ROAD 947 1,250,000 1,320 FH
11 IRIDIUM 1,076 1,420,000 1,319 FH
12 CITY REGENCY 517 728,000 1,409 FH
14 EAST SHINE 980 1,050,000 1,072 FH
14 EUNOS GREEN 1,206 927,000 769 FH
15 THE SHORE RESIDENCES 1,432 2,200,000 1,537 103
15 PEBBLE BAY 2,282 3,000,000 1,315 99
15 PARKSHORE 1,722 2,200,000 1,277 FH
15 CASUARINA COVE 1,528 1,650,000 1,079 99
15 HERITAGE EAST 1,356 1,350,000 995 FH
15 FLORA EAST 1,399 1,280,000 915 FH
16 WATERFRONT KEY 1,206 1,420,000 1,178 99
16 THE BAYSHORE 1,012 1,025,000 1,013 99
16 CASA FLORA 1,561 1,440,000 923 FH
16 EAST MEADOWS 1,195 1,093,000 915 99
17 BALLOTA PARK CONDOMINIUM 1,249 860,000 689 FH
18 LIVIA 1,324 1,250,000 944 99
19 THE SPRINGBLOOM 1,302 1,330,000 1,021 99
19 RIVERVALE CREST 990 770,000 778 99
20 CLOVER BY THE PARK 1,292 1,660,000 1,285 99
20 THE GARDENS AT BISHAN 1,227 1,200,000 978 99
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NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority.Typically, caveats are lodged at least 2-3 weeks after a purchasersigns an OTP, hence the lagged nature of the data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
20 GRANDEUR 8 1,259 1,110,000 881 99
21 FLORIDIAN 1,001 1,580,000 1,578 FH
21 THE CASCADIA 1,184 1,738,000 1,468 FH
21 MAPLEWOODS 850 1,240,000 1,458 FH
21 MAPLEWOODS 1,335 1,880,000 1,409 FH
21 SELANTING GREEN 1,302 1,300,000 998 FH
21 HIGHGATE 1,485 1,378,000 928 FH
22 LAKEHOLMZ 1,572 1,363,000 867 99
23 HILLBROOKS 1,227 1,180,000 962 FH
23 HILLVIEW REGENCY 969 810,000 836 99
23 HILLVIEW REGENCY 1,109 925,000 834 99
23 REGENT GROVE 1,173 848,000 723 99
26 CASTLE GREEN 1,302 880,000 676 99
28 SELETAR SPRINGS CONDOMINIUM 947 740,000 781 99
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