Singapore Property Weekly Issue 214

8/21/2019 Singapore Property Weekly Issue 214

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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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SINGAPORE PROPERTY WEEKLY Issue 214

Page | 2Back to Contents

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


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.

SINGAPORE PROPERTY WEEKLY I 214


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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.


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.

SINGAPORE PROPERTY WEEKLY I 214


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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.


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.


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.


http://www.moneymatters.sg/


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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


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


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
http://propertymarketinsights.com/

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Singapore Property Weekly Issue 214