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8/13/2019 Singapore Property Weekly Issue 138
1/15
Issue 138Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.
http://www.propwise.sg/http://www.propwise.sg/8/13/2019 Singapore Property Weekly Issue 138
2/15
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CONTENTS
p2 Are You an Armchair Property Investor?
p8 Singapore Property News This Week
p14 Resale Property Transactions
(December 25 December 31)
Welcome to the 138th 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]8/13/2019 Singapore Property Weekly Issue 138
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Are You an Armchair Property Investor?
By Gerald Tay (Guest Contributor)
On a daily basis, I probably get 5 to10 emails
telling me investing in property is my route to
financial freedom or its a better bet than
investing in stocks. And for some, property
might be. But for many, it can be the worstinvestment you make.
There are far too many companies shouting
about the benefits of property investment,
when really what they mean is Pleaseinvest
in property so WE can get rich.The reality is,
many people I have met who want you toinvest in property dontcare two hoots if you
make money or not, as long as they profit
from your investment!
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Are you an armchair investor?
I must admit, I find armchair investorsvery
perplexing.
I strongly believe that the best person to lookafter my money and my financial future is the
person I see in the mirror, not a third party
with a sales agenda.
I cannot understand the concept of sitting
back and letting someone else take all the
responsibility for my money, my investment
decisions, and my financial future no matter
how trustworthy that person might seem.
I actually want to roll up my sleeves and get
my hands dirty. I want to strive to understand
my investments from every angle. I want totake responsibility for how my money is
spent. I want to be on the "factory floor"
dealing with the everyday running of the
business so that I can grow my skills and
knowledge.
If I invest my time and diligence in my
property business, then there is hopefully far
less chance of it going wrong than just taking
someone else's word for it.
Armchair investors sitting back in their
armchairs calling themselves "investors" are
really "armchair speculators on a third party's
ability to make the right buying decisions for
them".
Property is not a case of "one size fits all". If
you don't want to roll your sleeves up and get
your hands dirty, then maybe you shouldn't
get involved at all.
If you think of yourself as an "armchairinvestor" and not get in the thick of the action,
then there's a strong possibility your
investment will go off the rails.
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Armchair investors are similar to war
generals overseeing the critical juncture of a
battle while hiding in their well-secured
bunkers.
Whom does the typical Armchair
Investorbuy from?
These are three types of salespeople such
investors commonly fall prey to:
1. Developers- Selling local & overseas new
launches or off-the-plan properties that
comes with exotic names, addresses and
themes to investors who hope to flip at a
higher price when completed or via a sub-
sale.
2. Overseas Property Packaged Deals -Claim to pay investors a Guaranteed Rental
over a period of time and provide property
management support.
3. Seminar Gurus - claim the armchair
investorconcept is an easy way for anyone
to become an instant property millionaire,
then sell their students a bunch of properties
and profit themselves. Attendmy powerful 3-
day millionaire secrets seminar and make
ME rich.
If any gurupromises to give you the wealth
of your dreams with minimal effort, itssafe to
assume that yourebeing lied to. The seminar
industry rakes in millions every year from lazy
people looking for the next quick fix, and
theyll keep doing it as long as you keep
falling for it.
Yes, I can understand that if you are cash rich
but time poor you might like a bit of help and
support. That is understandable. However, toabsolve yourself of all responsibility and "just
sign papers", which I have heard someone
say recently, is a complete anathema to me
personally.
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It is always better for you to learn how to
invest in property (or other investments)
yourself, instead of relying on someone else
to do it for you. Many people use lack of
timeas a reason why they dontget into the
gritty details of managing a property
themselves. This is just an excuse. We can
achieve anything we decide to make a
priority.
You need to determine your underlying
Investment Principles
When it comes to Property Investing, have
you ever actually sat down and analysed your
principal aims?
And have you then matched them against the
properties you already own or those you
may now be considering?
Basically, you'll find most people purchase
property for one (or more) of three reasons.
1. To receive a solid cash flow;
2. To provide a profitable return;
3. As a hedge against inflation.
You may feel you'd like to achieve all of
these. But generally, one or two will stand out
as being more important for you.
As you're probably aware, the truly rich tend
to generate their capacity for wealth through
their business activities. But then, they turn toProperty to preserve and grow that wealth.
And in the same way, your underlying
principles should also be to (Priority Order):
Protect your original Equity; and then
Obtain a worthwhile, on-going return on it.With that in mind, you would need to remove
anything of a highly-speculative nature from
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among the properties you pursue. Because,
what you're effectively seeking is solid growth
without unnecessary risk. And that brings
us to
Your Investment Profile
More often than not, you can determine your
Profile based upon your personality type and
your past experience.
Type #1: The Risk Taker
Some people love telling stories about how
they "gambled a lot" where they would
have either made a fortune, or gone broke.
These investors can be quite entertaining to
listen to, but rather dangerous to imitate.
Type #2: The NATOInvestor
No Action, Talk Only. These people certainly
know their stuffbecause they attend lots of
seminars, read many books and are probably
a regular on several forums. But they never
have enough conviction to actually invest for
themselves.
Type #3: The Bull-MarketInvestor
These investors only make money when
markets are on a bull-run, and ONLY during a
bull-run. Their investment strategy is never
planned on or built for a bear market. They
believe just anyproperty or investment can
make money because bulls are too sacred tobe killed.
This is typical of many investors today.
Type #4: The Shrewd Conservatives and
Hands-On Investor
These are the mildly-aggressive investors,who only increase the size of the portfolio
when they have enough funds in reserve.
They do their homework before buying, and
don't put the existing properties at risk.
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These investors are likely the ones who
willingly to roll up their sleeves and get their
hands dirty. They are highly involved in every
aspect from the buying, to the letting,
managing tenants, having a strong support
team and overseeing the entire property
management themselves.
Bottom Line:As you can appreciate, it is the
Type #4 Investor who is most likely to
succeed. And that's the one you should striveto emulate, going forward from year 2014
onwards.
Yes, you can build wealth with real estate.
You just need to educate yourself, work hard,
start conservatively, think long-term, and most
importantly, be prepared for lean years. This
is not a quick or easy path to riches.
Gallop steadily ahead in your financial wealthfor the Horse year and beyond!
By guest contributor Gerald Tay, CEO of
CREI Academy Group, who exposes widely-
held property investment myths that have
proven highly ineffective in creating wealth,
and prevent a comfortable retirement for the
ordinary investor.
SINGAPORE PROPERTY WEEKLY I 138
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/8/13/2019 Singapore Property Weekly Issue 138
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Singapore Property This Week
Page | 8Back to Contents
Residential
S t r o n g t o p b i d f o r J u r o n g W e s t E C s i t e
Despite the latest rule changes affecting the
executive condo market, an EC site in Jurong
West drew 12 bids with the highest bid at
$381.81 psf ppr from a Koh Brothers-Heeton
Homes partnership. The second highest bid
was only 0.45 percent lower, from a joint
venture between City Developments and TID.
This highest bid is near the top end of the
predicted range at the site launch in late
October. This could reflect that demand for
ECs would remain strong. Despite the
optimistic top bids, the bottom half of the bids
were generally cautious and below
expectations.
(Source: Business Times)
T he P rem i er e s el ler s n o t l ik e ly t o h av e
prof i t able resale prices
Residents at The Premiere who think that
their unitsbetter location and fittings would
help them with a good resale price may not
get what they hope, even though these units
in the five-year-old pilot Design, Build and
Sell Scheme (DBSS) project in TampinesAvenue 6 are ripe for the resale market. The
asking prices for five-room units,
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available in 1,173 sq ft, 1,184 sq ft and 1,227
sq ft configurations, are between $720,000
and $850,000. A scan of the advertisements
on marketing platforms shows that these
sellers are asking for higher prices thanconsultants think the market will accept.
(Source: Business Times)
Hillfords 60-y ear l eas e an o b s tac le t o
i n v e s t o r s
Although the first retirement resort in
Singapore The Hillford could offer
potential buyers a chance to buy into the
highly desired Bukit Timah address cheaply,
its 60-year leasehold could limit its demand.
There is no age limit on potential buyers for
the project. It includes 281 units, with a mix of
one-, two- and two-bedroom dual-key units
equipped with built-in elder-friendly features.
Indicative prices for its units start from $980
psf or about $388,000 for a one-bedroom
unit, $498,000 for a two-bedroom unit and
$648,000 for a two-bedroom dual-key unit.
Key pull factors for the project include its
attractive quantum and location. However, its60-year leasehold cap could make it harder
for investors to finance the property since it
may be harder to get bank loans for a shorter
lease, and also harder for investors to unload
the property in the resale market due to its
limited remaining tenure.
(Source: Business Times)
HDB m ed ian v al ue d o wn fo r f ir st t im e
sinc e Q4 2009
Data from the Singapore Real Estate
Exchange (SRX) shows that the median price
for a Housing and Development Board (HDB)
flat has decreased for the first time since Q4
2009.
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The median valuation for an HDB unit in Q4
2013 was $435,000, a 0.7 percent decrease
from Q3 2013. Jeremy Lee, co-founder of
StreetSine, the company behind SRX said
that this decline is the first one they registered
after the global financial crisis, and is pulled
down by the lowering of the COV (cash over
valuation) and overall resale prices coming
down. Ong Kah Seng, director at R'ST
Research said that median HDB valuation
prices had been expected to fall in end of
2013, because valuations depend on
comparable recent flat sales and resale flat
prices have trended downwards since H2
2013.
(Source: Business Times)
Commercial
S in g ap o r e p r o p er t ie s d r aw $4b f o re ig n
i n v e s t m e n t s
A report from property consultancy DTZshows that Singapore properties have drawn
$4.1 billion from foreign investors in 2013, 30
percent higher than 2012. Nearly 90 per cent
of these foreign investments are from Asia,
especially from China with $2.9 billion from
Chinese investors. Notable deals involving
China players include Bright Ruby Resources'
purchase of Grand Park Orchard for $1.2
billion, Kingsford Developments winning of
two adjacent private residential sites at Upper
Serangoon View,
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and Qingjian Realty (South Pacific) Groups
acquisition of two executive condominium
sites at Woodlands Avenue 5/Avenue 6 and
Anchorvale Crescent. In addition, Japan
investors contributed another $468 million.
(Source: Business Times)
K i m C h u a n D r i v e i n d u s t r i al s i t e u p f o r s a l e
A freehold 34,729-sq-ft industrial site at Kim
Chuan Drive is up for sale by tender at an
indicative price range from $44 million to $46
million. The plot is located at 47/A to 65/A Kim
Chuan Drive, with a three-storey development
comprising 10 shophouses and 10 homes. It
is zoned for Business-2 development with a
plot ratio of 2.5, making heavy industrial use
possible on the plot. The plot can be
redeveloped into a factory or warehouse of 49
strata units of 1,500 sq ft in size each.
(Source: Business Times)
S h o p u n i t p r i c e t o m o d e r a te t h i s y e a r
According to analysts, the price growth for
strata-titled retail property is likely to
moderate this year, after its spiraling for the
past two years with new records set. This is
because the total debt servicing ratio (TDSR)
curbed investors' ability to purchase.
However, as investors are still interested in
shopping space which has been untouched
by the property cooling measures, the
number of sales transactions may hold up to
the levels of last year. According to Savills
Singapore, prices for strata-titled retail
property increased 11.7 percent in 2013, after
a 10.5 percent increase in 2012, but much of
the price increase took place before theTDSR was introduced. DTZ said that there
were 974 transactions in 2013, a 30 percent
decrease from 2012.
(Source: Business Times)
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E m in en t P la za a nd n ex t -d o o r L av en d er
Food Square t o be redeveloped
Eminent Plaza and the next-door Lavender
Food Square are reported to be torn down
and redeveloped later this year by two
associated companies of Tong Eng Group
into a 16-storey project with office and retail
units. Some of these units would then be up
for sale. The two associated companies of
Tong Eng Group built the development back
in the 1980s. The new development called
ARC 380 will have 167 strata units consisting
of 23 retail units on ground level and 144
office units on levels five to level 16. 71 units
will be released for sales (52 office units, 19
retail units). Hawkers at the famous LavenderFood Square will move out in six to nine
months.
(Source: Business Times)
Long H ouse Food C ent re sold f or $45. 2m
Long House Food Centre along Upper
Thomson Road has been sold for $45.2
million to TEE Ventures, a subsidiary of the
mainboard-listed TEE Land, in a deal
brokered by Knight Frank. A family-held
asset, Long House is on a 1,575 square
metre freehold site designated for commercial
and residential use under the 2008 Master
Plan. TEE Land is reported to redevelop the
property into a commercial-cum-residential
development.
(Source: Business Times)
A m akeover fo r Tr i pl eOne Som erset
After its acquisition of TripleOne Somerset for$970 million last month, a consortium led by
retail mall veteran Pua Seck Guan is planning
to spend $150 million to give the property a
makeover.
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This includes increasing retail offerings,
improving the quality of the 17-storey
building's office towers, and a possible
creation of an underground pedestrian link
between the building and Somerset MRT.TripleOne Somerset has two office towers
and two floors of retail space, with a total
gross floor area of 766,550 square feet and
an annual net property income at about $40
million.
(Source: Business Times)
I n d u s t r i a l r e n t s t o c o n t i n u e u p w a r d t r e n d
in 2014
Property consultancy DTZ said that industrial
rent would rise in 2014, continuing its upward
trend since Q4 2013. This trend is attributed
to an uptick expected in manufacturing
activity, and a moderate supply of available
space this year. The manufacturing sector
grew 3.5 percent year- on-year in Q4 2013,
and is expected to gain further this year. The
rental market for industrial real estate also
mostly grew in line with the increased
manufacturing activity.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 138
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Non-Landed Residential Resale Property Transactions for the Week of Dec 25 Dec 31
NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after apurchaser signs an OTP, hence the lagged nature of the data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 EMERALD GARDEN 807 1,561,545 1,934 999
1 THE SAIL @ MARINA BAY 893 1,700,000 1,903 99
5 HERITAGE VIEW 1,195 1,480,000 1,239 995 BANYAN CONDOMINIUM 1,227 1,370,000 1,116 FH
5 FABER CREST 1,259 1,325,000 1,052 99
9 HILLTOPS 1,550 5,150,000 3,323 FH
10 THE LEGEND 1,421 2,060,000 1,450 FH
12 SUITES @ TOPAZ 377 590,000 1,566 FH
14 CASA SARINA 1,184 1,220,000 1,030 FH
15 MELROSE VILLE 517 805,000 1,558 FH
15 PEBBLE BAY 1,894 2,750,000 1,452 99
15 VENTURA VIEW 1,206 1,240,000 1,029 FH
15 BLU CORAL 2,088 1,780,000 852 FH
16 COSTA DEL SOL 1,776 2,168,000 1,221 99
18 CHANGI RISE CONDOMINIUM 1,281 1,120,000 874 99
18 EASTPOINT GREEN 1,884 1,610,000 855 99
19 KOVAN MELODY 904 1,150,000 1,272 99
19 SUNSHINE LODGE 2,024 1,688,888 835 FH
20 GOLDENHILL PARK CONDOMINIUM 1,313 1,930,000 1,470 FH
20 FAR HORIZON GARDENS 2,002 1,500,000 749 99
21 JARDIN 1,701 3,200,000 1,882 FH
23 PARK NATURA 1,378 1,600,000 1,161 FH
27 THE ESTUARY 1,313 1,408,000 1,072 99
28 GRANDE VISTA 1,238 1,205,000 973 999
http://propertymarketinsights.com/