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7/30/2019 Singapore Property Weekly Issue 102
1/15
Issue 102Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
http://www.propwise.sg/http://www.propwise.sg/7/30/2019 Singapore Property Weekly Issue 102
2/15
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CONTENTS
p2 Building a High Return UK Property Portfolio
p8 Property Renting Tip #6: Who are
your Tenants?
p9 Singapore Property News This Week
p14 Resale Property Transactions
(April 17 April 23)
Welcome to the 102th edition of the
Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:[email protected]7/30/2019 Singapore Property Weekly Issue 102
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SINGAPORE PROPERTY WEEKLY Issue 102
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With the high property prices in Singapore,
many investors are looking overseas to find
attractive investment opportunities. In this
article we interview Matthew Snedden, one of
the United Kingdoms most recognized realestate experts and a speaker at the National
Achievers Congress 2013, on both his
failures and successes in building his
property portfolio, and how investors can
build a high return UK property portfolio with
little capital.
Building a High Return UK Property Portfolio
http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/7/30/2019 Singapore Property Weekly Issue 102
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Could you share your stories of how you
began your property investing journey and
achieved the success that you have
today?
My journey began when I became
desperately unhappy with the job that I was
doing. I had spent 12 years as a property
manager and felt that although the wages
were not bad I was no longer enjoying it.
I attended all the Tigrent courses and met andbecame good friends with a lot of the
speakers and mentors that the company had.
This was the major breaking point for me -
these people helped me gain the tools
required and the education to help me
overcome the fears I had built up.
Once I had purchased my first property, I saw
this as a massive sign that I was going to do
this as big as I could. Over the years as Ive
changed my strategy to suit my style, I gained
the confidence to do larger scale
developments and refurbishments. I now love
what I do this is a huge driver for me!
What does your property portfolio look
like today? What steps did you take to
build up that portfolio?
The property portfolio I have built over time is
far greater than I ever expected having. I
have bought and sold well over 100properties in the past 10 years. Throughout
this process, I bought a number of buy to let
properties which range from two bedroom
houses to six bedroom houses, and one to
three bedroom flats as well. The majority of
my property portfolio held to today are from
the developments that I have taken on in
recent years (converting large buildings into
one, two or three bedroom flats/apartments).
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I have found this method better for my ROI
(Return On Investment) and also for the ease
of property management.
People looking to generate wealth from
the markets are faced with a wide range of
options that include trading and investing
in property, stocks, options, futures and
foreign exchange. Which of them do you
think would be more suitable for a
beginner looking to build his or her
wealth?
The beauty of property for me is that you can
add value to it and it can be seen. I can drive
past it and know that I have turned something
that was completely run down and neglected,
into a place that somebody would love to livein. This gives me massive satisfaction and will
continue to drive me. For this reason, a
beginner, with the right leadership, can make
a good return on their investment much more
simply in property in my opinion.
What property types (e.g. residential,
commercial etc) do you recommend
investing in and why?
For a beginner, residential property is where
most investors will start and perhaps even
finish. There are a few factors I would take
into consideration with this. Firstly, most
people understand residential property
because they grew up in one. We understandwhat people want to live in. Secondly, price is
a consideration. While not always the case,
commercial property is typically seen as a
more expensive and more for the
experienced investors. Thirdly, lenders look at
investors in the commercial world as moreexperienced. The lending criteria are defined
differently to residential and this may
persuade the investor to stick with residential
rather than commercial.
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I believe purchasing residential property is a
much easier and simpler strategy than
commercial. However, commercial property
has scope for higher returns.
Which global property markets do you
think have the greatest profit potential for
an investor and why? Which markets do
you think investors should avoid?
I personally have purchased property in both
the UK and Australia. I have gone back andforth to both countries because I believe in
both markets. Australia still has strong capital
growth, whilst UK has very strong rental
demand and high rents, thus strong cash
flow. I believe in the UK market for people
who are looking to build a sizeable portfoliowhich can generate a large cash flow base. I
look into other countries that have good cash
flow and feel that the advantage the UK has
over the others is that its population size is
large relative to its geographic size. This
allows for the market to be strong even when
the economic outlook seems bleak.
What pitfalls should a global property
investor be wary of?
As an investor, no matter what market,
country or entity they are looking to invest in,
they need to understand the pitfalls!
An investor needs to be aware of the areas
they purchase in, types of finance available to
them for their strategy, and understanding the
demand level for either sale or rent.
Understanding the employment status of an
area will determine types of tenants or buyers
as well as the potential sale prices that can
be achieved. Looking at the average income
in the area will determine peoples ability to
get mortgages.
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How much capital do you need to have to
build a property portfolio and what sort of
rental yield and capital gains can you get?
Could you share with us some of your
best and worst property investments?
This is a really difficult question to answer
however London typically achieves a yield of
say 4% to 8%, whereas the North of the
country typically achieves 10% plus.
Understanding the strategy is the key. My
main aim is to purchase property, then add
value to it and either sell or refinance at a
higher level to pull out a large part of the
capital I originally put in. To build a sizable
portfolio very fast, cash is required however
this can be borrowed for the short term. There
are many lenders out there who offer this and
so the main point here is to find a property
that fits well with the lenders. Once this has
been identified, lenders are more than happy
to lend to you.
My worst property investments were the ones
I did based on what everybody else does,
when I ignored the rules and skills I learnt and
bought property based on a sales pitch
delivered by a new build company. I put my
money in the deal, the market dropped, and
the rents did not achieve what was sold to
me.
The best ones are the rest... buy belowmarket value, change the use and add value
to achieve high ROI and yields.
What are the most important lessons
youve learnt about living a happy,
successful and meaningful life?
For me, living a happy, successful, and
meaningful life means understanding who you
are, what gifts you have and how that fits in
with rest of the world.
SINGAPORE PROPERTY WEEKLY I 102
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Success is to me is measured by my overall
happiness. This can be measured through
wealth, ability to spend time with love ones,
and how much you are living life on your own
terms. I often think how I would do thingsdifferently if given a second chance. This
allows me to make better decisions the first
time round.
Matthew Snedden will be going in depth on
the strategies he has used to build his UKproperty portfolio with little capital and add
value to achieve high returns at the National
Achievers Congress 2013.
http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://www.moneymatters.sg/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/7/30/2019 Singapore Property Weekly Issue 102
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Singapore Property This Week
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Residential
March sees 0.9% increase in non-landed
private home prices
According to NUSs overall Singapore
Residential Price Index (SRPI), the prices of
completed non-landed private homesexcluding ECs saw a 0.9% rise in March,
compared to a 1.2% fall in February. This was
largely due to the Central Region sub-index
(excluding small units), which saw a 2.2%
increase in March, after a 3.7% fall in
February. Nevertheless, there is still a largesupply of unsold units in the Central Region
(both completed and under-construction). The
Non-Central Region sub-index (excluding
small units) remained stable with a slight0.1% decline in March, after a 0.1% gain in
February. Meanwhile, the sub-index for
prices of completed shoebox units (up to 506
sq ft) islandwide saw a 0.7% gain in March,
after a 0.9% fall in February.
(Source: Business Times)
Non-landed private home owners made
$107 million profit from resales
According to OrangeTee, non-landed private
home owners made a total of $107 million in
gross profit from quick resales in the period of
Q1 2012 to Q1 2013. This is attributed to the
high property prices.
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In addition, it was also noted that only newly
completed homes that were resold after
receiving the TOP yielded good profits. There
were 348 transactions which were sold within
one quarter from which the TOP wasobtained, of which only one was unprofitable.
Each unit offered a 33% average gain in
profit, with the most profitable being units in
the OCR, which offered a 41% gain,
compared to 31% and 25% gains for the RCR
and CCR, respectively. Generally, shoeboxunits (no more than 50 sq m) were less
profitable than non-shoebox units in all
regions, with an average profitability per unit
of $132,000 or 25%. The highest average
gross profitability of 43% per unit in the period
studied was in Q3 2012; this has fallen since
given the cooling measures.
(Source: Business Times)
30% of 99-year Eden Residences Capitol
sold
12 of the 39 residential units at Eden
Residences Capitol, the residential
component of the mixed development at the
junction of Stamford and North Bridge roads,
have been sold at an average of $3,000 psf.
Unit sizes in the residential component range
from 2,100 sq ft to over 6,500 sq ft. The
project also features an 800-seat Capitol
Theatre which will offer both movies and
performing arts, Capitol Building and
Stamford House, a four-level retail
component and 157-room The Patina, Capitol
Singapore hotel. Rooms in the hotel will
range from 45 to 65 sq m.(Source: Business Times)
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30 units of 103-year leasehold Ferra
launched for sale
30 units of the 104-unit 22-storey Ferra, a
luxury condominium development at 1 LeonieHill have been launched for sale, at prices
from $2.3 million for a 732 sq ft unit, or
$3,160 psf. Units in the development ranges
from 732 to 893 sq ft, in addition to two 2,013
sq ft penthouses which have yet to be
launched. Buyers can customise their unitlayout or choose from a selection of pre-
designed layouts. It is expected to draw some
interest given the smaller and therefore more
affordable units, its design and the small
number of units released.
(Source: Business Times)
Commercial
Three 22-year industrial sites at Tuas
South St 6launched for sale
The three sites include a 0.45 ha corner plot
(Plot 1) and two other 0.30 ha plots. All three
sires have a maximum GPR of 1.0 and are
zoned for Business 2 development. They will
likely attract industrialists, given the zoning,
the short lease term and the size of the plots.
The first plot is expected to attract seven to
11 bidders with bids of $75-$90 psf ppr while
the other two plots are likely to attract five to
nine bidders with bids of $70-$80 psf ppr. The
tender for the sites will close on June 11 at
11.00am.
(Source: Business Times)
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Plans for Tanjong Pagar Centre revealed
Plans for Tanjong Pagar Centre, an
integrated mixed-use development located
above the Tanjong Pagar MRT station, have
been released by its developer, GuocoLand.
It will consist of Guoco Tower, a 38-storey
Grade A office block, six levels of retail and
F&B space, a luxury business hotel, a
sheltered event space in Tanjong Pagar City
Park and residential units in a 1.7 million sq ft
floor space. The offices block will offer large
floor plate and column-free spaces of 25,000-
29,000 sq ft while the 100,000 sq ft retail mall
will offer largely F&B outlets. There will alsobe 200 one- to four-bedroom units and
penthouses in TP180, the residential
component.
(Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of Apr 17 Apr 23
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 THE CLIFT 807 2,119,000 2,625 99
3 DOMAIN 21 560 910,000 1,626 99
3 RIVER PLACE 1,033 1,480,000 1,432 99
3 PEARL BANK APARTMENT 1,755 1,535,000 875 99
3 PEARL BANK APARTMENT 1,324 1,100,000 831 99
4 THE COAST AT SENTOSA COVE 2,024 3,620,000 1,789 99
5 HERITAGE VIEW 1,195 1,450,000 1,214 99
5 BUONA VISTA GARDENS 1,572 1,505,000 958 FH
7 THE BENCOOLEN 958 1,456,160 1,520 99
7 THE PLAZA 807 1,080,000 1,338 99
9 PATERSON SUITES 2,196 5,700,000 2,596 FH
9 GRANGE INFINITE 2,573 6,200,000 2,410 FH
9 GRANGE INFINITE 2,702 6,388,000 2,364 FH
9 THE OXLEY 549 1,190,000 2,168 FH
9 THE COSMOPOLITAN 1,324 2,750,000 2,077 FH
9 MAKEWAY VIEW 1,453 2,860,000 1,968 FH
9 THE IMPERIAL 2,024 3,870,000 1,912 FH
9 WILKIE STUDIO 1,227 1,570,000 1,279 FH
10 ARDMORE PARK 2,885 8,398,000 2,911 FH
10 MILL POINT 527 1,010,000 1,915 999
10 MILL POINT 538 1,010,000 1,877 999
10 THE LEVELZ 786 1,336,200 1,700 FH
10 DUCHESS CREST 4,295 4,750,000 1,106 99
11 STRATA 840 1,400,000 1,667 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
11 THE LINC 1,281 2,050,000 1,600 FH
12 GALLERY FIFTEEN 1,442 1,620,000 1,123 FH
12 OLEANDER TOWERS 1,464 1,488,000 1,016 99
14 THE WATERINA 1,302 1,750,000 1,344 FH
14 ESCADA VIEW 775 800,000 1,032 FH
14 CASA SARINA 1,109 1,100,000 992 FH
14 SIMS RESIDENCES 1,356 1,100,000 811 99
15 THE SEA VIEW 1,518 2,428,800 1,600 FH
15 AMBER RESIDENCES 1,249 1,908,888 1,529 FH
15 ESTIQUE 603 888,000 1,473 FH
15 THE MAKENA 1,518 2,200,000 1,450 FH
15 THE WATERSIDE 2,142 3,100,000 1,447 FH
15 HAIG COURT 1,550 2,030,000 1,310 FH
15 THE MEDLEY 1,302 1,470,000 1,129 FH
16 THE BAYSHORE 1,259 1,249,000 992 99
16 BAYSHORE PARK 3,477 3,408,000 980 99
16 EAST MEADOWS 1,195 1,168,000 978 99
16 THE CLEARWATER 1,378 1,310,000 951 99
16 TANAMERA CREST 1,647 1,400,000 850 99
17 DAHLIA PARK CONDOMINIUM 1,281 1,180,000 921 FH
17 AZALEA PARK CONDOMINIUM 1,679 1,500,000 893 999
19 SUNGLADE 1,141 1,370,000 1,201 99
19 CHILTERN PARK 915 1,050,000 1,148 99
19 HILLSIDE MANSIONS 1,141 1,150,000 1,008 FH
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NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after apurchaser signs an OTP, hence the lagged nature of the data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
19 CENTRAL VIEW 1,216 1,095,000 900 99
19 CHARLTON CORNER 1,044 910,000 872 FH
20 THE GARDENS AT BISHAN 1,582 1,700,000 1,074 99
20 LAKEVIEW ESTATE 1,615 1,396,000 865 99
21 JARDIN 1,701 3,040,000 1,787 FH21 GARDENVISTA 872 1,100,000 1,262 99
21 GARDENVISTA 872 1,030,000 1,181 99
21 SUMMERHILL 1,604 1,882,000 1,173 FH
21 SIGNATURE PARK 1,399 1,520,000 1,086 FH
21 SOUTHAVEN II 818 870,000 1,063 999
21 BUKIT REGENCY 1,055 1,050,000 995 FH
21 HIGH OAK CONDOMINIUM 1,658 1 ,590,000 959 99
21 SHERWOOD TOWER 1,421 1,198,000 843 99
22 IVORY HEIGHTS 1,668 1,200,000 719 10023 MERAWOODS 1,345 1,330,000 988 999
23 REGENT GROVE 1,163 935,000 804 99
23 THE WARREN 1,195 948,000 793 99
25 CASABLANCA 1,119 980,000 875 99
26 CASTLE GREEN 1,173 980,000 835 99
27 YISHUN EMERALD 1,023 835,000 817 99
28 GRANDE VISTA 1,238 1,218,000 984 999
28 GRANDE VISTA 1,238 1,180,000 953 999
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