Singapore Property Weekly Issue 65

7/31/2019 Singapore Property Weekly Issue 65

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Issue 65Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 Is Location Really the Sacred

Mantra Of Property Investment?

p6 Singapore Property News This Week

p11 Resale Property Transactions

(August 1 August 7)

Welcome to the 65th edition

of the Singapore Property

Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
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SINGAPORE PROPERTY WEEKLY Issue 65

Page | 2Back to Contents

Is Location Really the Sacred Mantra Of Property Investment? (Part 1)

By guest contributor Gerald Tay

You have probably heard this popular phase

when learning about property investment:

Location! Location! Location! You cant go

wrong if you buy in a good location. The

lesson for investors is that location should

be the top consideration in your investment

decision. In other words, as long as you

follow this sacred mantra of property

investment and buy a property in a good

location, it will definitely be a good

investment and you are sure to make money

in the long term, regardless of all risks.


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Is this mantra right? No! And Beware! You still

face the possibility of making a bad

investment even if you pick a property in a

good location. Surprised? This mantra has

been mainly repeated by three categories of

people. They are Salespeople, Property

Speculators, and Novice Investors who try to

actsmart.

Professional investors like me know that we

may end up with a crap property even in agood location. Therefore, we know buying a

property in a good location does not

guarantee a successful investment and will

never make major buying decisions based on

location alone. There are many other key

considerations to factor in.

Examples of properties in good locations

that have lost money for their investors

Bishan 8 is a 99-year leasehold condo

launched in 1997. When it was launched,

there was a lot of hype and excitement

especially from the media. The property is

located just directly opposite the Bishan MRT

station, the Junction 8 shopping mall, and is

close to town. It was one of the few properties

that were located near an MRT station during

the earlier days of our public transport

system. But based on past caveat

transactions, many who bought the property

during the launch period have lost money,

and even for those who are still holding on

today, there is not much capital gains.

Some may argue that leasehold properties

such as Bishan 8 do not hold their value as

well as freehold properties. However, thereare also many freehold properties in good

locations that have been money losing

investments. St Regis Residences, for

example, a freehold apartment located in one


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of the most prime districts in Singapore is one

of the overhyped properties launched back in

2006. Some of these rich investors, who sold

even at the peak of 2012, still lost millions

speculating in its potential capital gainsbecause of its location. There are many other

examples both locally and overseas.

Location is important, but

I am not saying that you should leave out

location from your buying decision. I amsaying that you should first consider the other

more important factors before zooming in on

where a property is located.

So, what are some of the more important

factors to look at first?

Professional Investors look at numbers first.

The numbers tell the whole story of the

property investment, even its location.

In other words, the sacred mantra in property

investment should be: Numbers, Numbers,

and Numbers!

What do those numbers tell you about the

investment? You will be surprised how much

crucial information reading and understanding

the numbers will reveal to you, including

timing, location, value, risk factors, margin of

safety, truth and lies etc.

There are two numbers you shouldunderstand and be familiar with if you want to

be a successful property investor. In fact,

these two numbers are the basic investment

language of any credible investor, whether in a

business or investment deal.

Well discuss what those two numbers are in

the next article.

By guest contributor Gerald Tay, CEO and

Chief Trainer atCREi Academy Group.
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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http://www.crei-academy.com/spip/


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Singapore Property This Week


ResidentialShan Gate apartments up for collective

sale

The 27-unit 10-storey residential development

located along Shan Road near the Novena

Medical Hub and the Novena MRT Station is

asking for $51.5-53.5 million or $1,010-1,049

psf ppr excluding balcony allowance, or $918-

953 psf ppr if included, based on a 2.8 gross

plot ratio on the 18,305 sq ft site with a

51,254 sq ft potential GFA. It can potentially

be redeveloped into a 36-storey projectconsisting of 85 600 sq ft units. The tender

will close by 3 pm on Sept 18.

(Source: Business Times)

Luxury home prices and rents to continue

their decline

Despite the increase in the sales volume of

luxury prime properties by 22% to 434 units

from Q1 to Q2, average resale capital value

of luxury prime properties fell by 2.9% to

$2,380 psf, and resale capital values oftypical prime properties fell by 1.5% to $1,350

psf in the same period. The increase in sales

volume was due to the growth in sales

volumes in the new sale and resale segments

which increased by 38.5% and 22.9%

respectively in Q2, as well as the 101 centralregion (CCR) units launched in the same

period. Meanwhile, average prime rental

values fell by 1.2% from Q1 to around $49 psf

SINGAPORE PROPERTY WEEKLY I 65


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per annum or $4.08 psf per month, while

average typical prime rental values fell 2.2 %

to $38 psf per annum or $3.16 psf per month

possibly because of the falling rents in older

prime properties, large units, and propertiesfacing construction and tenants relocation to

either overseas (in the case of expatriates) or

outside the prime areas where rents are

lower. The trend of declining prices and rents

in this segment of the market is likely to

continue given the uncertain global economy.


Private home sales shot up by 42% in July

July saw an increase in demand for private

residential homes, with a 42% increase from

the 1,371 units sold in June to the 1,943 units

sold in July. The strong July sales are driven

mainly by the sales in the Outside Central

Region (OCR) which accounted for 77.7% or

1,509 of the 1,943 private homes (excluding

ECs) sold in July. The sales in the Core

Central Region also registered a 79%

increase to 253 units sold in July. A total of

181 units out of the 281 released were sold inthe Rest of Central Region (RCR) while 124

ECs were also sold. Looking forward, sales in

August are likely to slow as a result of the

seventh lunar month.

(Source: Business Times)Freehold Kovan Lodge up for sale by

tender

The 27,090 sq ft residential site located on

Kovan Road could potentially be redeveloped

into a bigger residential development if

approval to amalgamate the site with a 505

sq ft adjoining piece of state land is granted.

This would bring the GFA to 38,633 sq ft

based on the 1.4 GPR, and in turn, the price

SINGAPORE PROPERTY WEEKLY I 65


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to $802 psf ppr based on the $31 million

indicative asking price. The site is likely to be

popular since supply of freehold land in the

area is limited and it is located near amenities

such as Nex mall, Heartland Mall andHougang Mall, as well as the upcoming food

street@Simon Road, located at Kovan MRT

Station. The tender will close on Sept 25.


Commercial

JTC to launch Small Footprint Standard

Factories for SMEs

JTC will be launching 14,800 sq m worth

Small Footprint Standard Factories, single-

user, three-storey terrace standard factoriescatered to SMEs at Tanjong Kling in

September. These factories will offer greater

space flexibility from additional structural

provisions that would make installation of

different material handling systems easier. An

additional 64,200 sqm of industrial space will

be added in 2013 with the launch of the

Surface Engineering Hub and MedTech1 @

MedTech Hub. SMEs are also givenopportunities to build their customised

facilities through the Open Land Application

Scheme and the Price-Quality Tenders as well

as the increased supply of industrial land

through GLS (500,000 sqm of multiple-user

factory space launched in 2012 and 2013each). The current available JTC-managed

space for SMEs to operate their business is

94,000 sqm, of which 29,000 sqm is from the

multiple-user factory segment and the

remaining 65,000 sqm is from the single-user

standard factory segment.

Yishun reserve-list industrial site triggered

for tender

The 1.2-hectare 30-year industrial site at



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Yishun Avenue 9 with a 2.5 maximum

permissible GPR is zoned Business 1.

Response to the site is likely to be muted

given its short lease period, relative small size

when compared to adjacent plots and thelarge existing supply in the area. However,

there are also plus points such as the existing

supporting networks, and its accessibility to

Yishun Interchange. It is expected to draw

from under five bids to nine bids with a top bid

of $50-100 psf ppr, a break-even cost of

$220-250 psf and an estimated selling price

of $280-$300 psf or below based on different

predictions.


Bedok Mall to open in Q4 2013

Bedok Mall which is part of an integrated

retail-residential-transport development in

Bedok will open its doors by end-2013. The

new Bedok bus interchange on the second

level is connected to the Bedok MRT station

and the mall beneath it via a linkway at the

basement two level of the mall. 30% of the

250-unit mall with a 220,000 sq ft NLA acrossthree levels has been leased to tenants such

as FairPrice Finest, Best Denki, Canton

Paradise, RamenPlay and Din Tai Fung. 90%

of the 583-unit Bedok Residences, also part

of the integrated development, has also been

sold.


99-year leasehold Victoria Street/Jalan

Sultan mixed site launched

A 0.84 ha or 8,423.2 sqm mixed site located

at Victoria Street/Jalan Sultan near Lavender

MRT Station has been launched for sale by

public tender. The site near the Kampong

Glam historic district and Little India historic



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district has a maximum permissible GFA of

30,977 sqm can be developed either into a

hotel or a commercial and residential

development with a minimum hotel

component. Any bid for the site which tender

closes at 12 noon on October 11, 2012

should not be below $148.7 million.


http://propertymarketinsights.com/


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Non-Landed Residential Resale Property Transactions for the Week of Aug 1 Aug 7

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 EMERALD GARDEN 936 1,560,000 1,666 999

1 EMERALD GARDEN 1,238 2,000,000 1,616 999

2 INTERNATIONAL PLAZA 1,033 1,100,000 1,065 99

3 DOMAIN 21 1,033 1,443,000 1,396 99

3 QUEENS 1,195 1,550,000 1,297 99

3 QUEENS 2,336 2,230,000 955 99

4 MARINA COLLECTION 2,099 5,982,150 2,850 99




4 CARIBBEAN AT KEPPEL BAY 840 1,529,000 1,821 99

5 THE PARC CONDOMINIUM 1,302 1,620,000 1,244 FH

5 MURANO 1,066 1,280,000 1,201 FH

5 GOLD COAST CONDOMINIUM 1,873 2,020,000 1,079 FH

5 DOVER PARKVIEW 969 960,000 991 99

5 PALISADES 3,326 3,150,000 947 FH

7 SOUTHBANK 969 1,435,000 1,481 99

8 CITYLIGHTS 560 1,000,000 1,787 99

9 RICHMOND PARK 3,380 10,000,000 2,959 FH

9 THE SUITES AT CENTRAL 1,399 2,728,050 1,950 FH

9 PARC SOPHIA 474 915,000 1,932 FH

9 THE INSPIRA 1,216 2,190,000 1,800 FH

9 PARC SOPHIA 667 1,180,000 1,768 FH

9 ROBERTSON 100 936 1,620,000 1,730 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

9 THE REGALIA 2,573 4,000,000 1,555 FH

9 ASPEN HEIGHTS 1,324 1,980,000 1,495 999

10 AVALON 1,830 3,000,000 1,639 FH

10 THE CORNWALL 635 1,010,000 1,590 FH

10 THE MERASAGA 1,367 2,125,000 1,554 99

10 MONTVIEW 1,227 1,900,000 1,548 FH

10 VALLEY PARK 1,216 1,820,000 1,496 999

10 THE TESSARINA 1,324 1,860,000 1,405 FH

10 HOLT RESIDENCES 2,067 2,900,000 1,403 FH

10 KELLOCK LODGE 893 1,250,000 1,399 FH

10 ROYALVILLE 1,012 1,400,000 1,384 FH

10 SIXTH AVENUE CENTRE 1,206 1,550,000 1,286 FH

10 JERVOIS GARDENS 2,196 2,770,000 1,261 FH

10 BALMORAL PLAZA 4,198 4,550,000 1,084 FH

11 RESIDENCES @ EVELYN 1,033 1,930,000 1,868 FH

11 SKY@ELEVEN 1,851 3,350,000 1,809 FH

11 AMARYLLIS VILLE 958 1,480,000 1,545 99

11 EVELYN MANSIONS 829 1,260,000 1,520 FH

11 AMARYLLIS VILLE 1,259 1,800,000 1,429 99

11 M21 1,345 1,890,000 1,405 FH

11 THOMSON 800 1,399 1,818,000 1,299 FH

11 THE TREVOSE 1,302 1,625,000 1,248 99

12 THE ARTE 2,895 3,750,000 1,295 FH

12 DE PARADISO 1,130 1,320,000 1,168 FH



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Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

12 TWIN HEIGHTS 1,421 1,630,000 1,147 FH

12 THE ABERDEEN 1,109 1,050,000 947 FH

14 THE TRUMPS 1,356 1,580,000 1,165 99

14 WING FONG MANSIONS 1,130 885,000 783 FH

14 GUILIN COURT 1,216 920,000 756 FH

15 BENG TONG MANSION 872 1,530,000 1,755 FH

15 MOUNTBATTEN LODGE 334 530,000 1,588 FH

15 EAST GALLERIA 1,152 1,470,000 1,276 FH

15 COSTA ESTE 926 1,050,000 1,134 FH

15 BELLEZZA @ KATONG 958 1,055,000 1,101 FH

15 THE ESPIRA 1,087 1,180,000 1,085 FH

15 LAGUNA PARK 1,453 1,400,000 963 99

15 THE GERANIUM 1,625 1,400,000 861 FH

15 JERSEY LODGE 1,163 1,000,000 860 FH

15 THE SUNNIFLORA 1,572 1,280,000 814 FH

16 COSTA DEL SOL 1,313 1,740,000 1,325 99

16 RIVIERA RESIDENCES 1,066 1,290,000 1,211 FH

16 BLEU @ EAST COAST 915 1,050,000 1,148 FH

16 COSTA DEL SOL 1,345 1,498,888 1,114 99

16 BAYSHORE PARK 936 948,000 1,012 99

16 CHANGI COURT 1,389 1,380,000 994 FH

16 THE BAYSHORE 947 940,000 992 9916 EAST MEADOWS 1,195 1,150,000 963 99

16 THE TROPIC GARDENS 1,249 1,175,000 941 FH

16 STRATFORD COURT 990 908,000 917 99

16 TANAMERA CREST 1,163 950,000 817 99

16 STRATFORD COURT 1,507 1,065,000 707 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

16 KEW GREEN 3,509 2,400,000 684 99

17 AVILA GARDENS 1,302 1,120,000 860 FH

17 DAHLIA PARK CONDOMINIUM 1,281 1 ,030,000 804 FH

17 ESTELLA GARDENS 1,292 985,000 763 FH

17 LOYANG VALLEY 1,959 1,355,000 692 99

18 TROPICAL SPRING 1,389 1,200,000 864 99

18 SAVANNAH CONDOPARK 1,227 1,048,000 854 99

18 TAMPINES COURT 1,690 1,068,000 632 101

19 YI MEI GARDENS 1,862 1,600,000 859 FH

19 REGENTVILLE 1,152 925,000 803 99

20 SEASONS VIEW 1,152 1,096,000 952 99

20 BISHAN POINT 1,270 1,205,000 949 99

20 BISHAN PARK CONDOMINIUM 1,507 1 ,330,000 883 99

20 BISHAN PARK CONDOMINIUM 1,518 1 ,260,800 831 99

20 BRADDELL VIEW 1,615 1,330,000 824 99

20 THOMSON VIEW CONDOMINIUM 2,024 1,630,000 805 99

21 THE CASCADIA 990 1,616,888 1,633 FH

21 THE CASCADIA 990 1,600,000 1,616 FH

21 MEADOWLODGE 1,206 1,290,000 1,070 99

21 SIGNATURE PARK 1,044 1,005,000 963 FH

22 PARC VISTA 1,076 905,000 841 99

22 PARC OASIS 1,227 1,000,000 815 9922 PARC VISTA 1,076 860,000 799 99

22 PARC VISTA 1,281 1,018,000 795 99

23 PARK NATURA 1,959 2,409,570 1,230 FH

23 PARK NATURA 1,378 1,630,000 1,183 FH

23 CHANTILLY RISE 1,206 1 ,168,000 969 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


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

23 THE JADE 1,087 1,045,000 961 99

23 CASHEW HEIGHTS CONDOMINIUM 1,647 1,568,000 952 999

23 THE LINEAR 1,249 1,105,000 885 999

23 HILLVIEW REGENCY 1,195 1,032,000 864 99

23 THE WARREN 1,238 1,020,000 824 99

23 PARKVIEW APARTMENTS 936 760,000 812 99

23 PALM GARDENS 1,216 870,000 715 99

23 NICON GARDENS 1,991 1,360,000 683 99

26 SEASONS PARK 1,292 1 ,015,000 786 9928 SELETAR SPRINGS CONDOMINIUM 1,593 1,215,000 763 99



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Singapore Property Weekly Issue 65