Rent out your property quickly

As one of the best means of passive income, property rentals are one of the first physical investment returns most beginner investors are drawn to. But as the number of homes entering the market increase, picking up speed towards 2016, it might be prudent for property owners to take steps right now to prime themselves for when the competition truly gets tough. How can landlords pull ahead in the weakening rental market?

Property analysts are predicting a two to three month average waiting time for landlords when previously it may have taken only a month or two before finding a suitable tenant. It is very much the tenant’s market now and many are taking it online in their search for home rentals.

Online property search engineOnline searches make it easier for the tenant to look at similar units within the same development and make more efficient price comparisons. This also means price points are a crucial deciding factor. Holding on to prices may mean a longer waiting period which also translates to larger income losses Though going too low may seem unsavory, easing up on prices slightly while offering longer lease terms may help you secure profits more quickly.

It might be futile comparing rental prices to what it was a couple of years back, simply because new properties are springing up all over, and the newer, swankier, though smaller unit nearby may be more attractive to tenants. Providing working, good condition fittings and appliances could also be what helps you seal the deal.

City Square Residences near Little India used to go for $1000 psf in 2009. Now it is going for as much as $2,500 psf. So perhaps the adage “Spend money to make money” may not be so far from the truth here. Sprucing up your unit with light renovation touches or simply giving your appliances an overhaul may score you a tenant sooner than later. And not forgetting, the personal touch always works. Meeting your tenants and building a good relationship makes for a better rental process for both landlord and tenant.

Lakeside’s Westside Story

Off on the west-side, Jurong and Woodlands are the main areas of business and redevelopment. But with the authorities planning to diversify commercial activity into the suburbs and redeveloping the Jurong Lake District into yet another hub for waterfront living, leisure and business, Lakeside may no longer be the town just on the side.

URA Jurong Lake District

Photo credit: Urban Redevelopment Authority (URA).

Jurong Gateway and the potential working population and medical tourist it will bring serves to bring new life to the sleepy Lakeside township. Other businesses in the mix are Big Box, Westgate, Genting Hotel, Ng Teng Fong General Hospital and Jurong Community Hospital. The previously very much industrial west-side of Singapore will see new life in many ways.

Already response at The Lakefront Residences spoke volumes, as it sold out of its 629 units during its launch in 2010. Prices then were at an average of $1, 000 to $1, 050 psf. Units were already selling this year at $1, 1199 psf. Units at The Lakeshore and Lakeholmz saw similar sales values with promising increases throughout the past few quarters. Though rentals and sales may not yet peak this year, the potential for growth is tremendous.

LakevilleThe newest kid on the block is Lakeville in Jurong West Street 41. Developer, MCL Land, is expecting buyers to mainly be HDB upgraders from the nearby, though not ruling out savvy investors who might see the rental possibilities of these units near future regional commercial hubs.

New private residential projects breezing into Marine Parade

With its proximity and accessibility to the city centre, and its seaside township feel, properties in Marine Parade have always been an easy breezy sell. But it has been sometime since new properties were launched hence news of upcoming projects might bring a fresh round of excitement.

A new launch to look forward to is the Marine Blue (working title) project whose building is underway across Parkway Parade Mall, developed by CapitaLand.

Coralis condominium.

Coralis condominium.

Other properties which are garnering some eager eyeballs area:

Some of these properties are older resale homes, but some new units  will soon be ready for occupation, with the Silversea possibly receiving its TOP (temporary occupation permit) by end of April. Marine Blue units are expected to sell at a promising $2, 000 psf, which may then also bring up prices at the neigbouring Silversea condominium. Most of the units have been sold at the 383-unit Silversea since its launch in 2009. Recent sales clocked at $1, 714 psf. At the Coralis, which was completed in 2013, sales stood at $1, 842 psf.

SilverseaHigh rental prices are expected to hold up and  future transport links such as the Eastern Region Line which will pass through Tanjong Rhu, Marine Parade, Siglap, Bedok South and Upper East Coast Road may only mean rising value in properties in these districts.

iProperty launches new Room-for-rent E-service

Home rental has always been a big thing in Singapore. As in most other busy, cosmopolitan cities.

Some folks have extra space to spare, some are hoping to rake in their investments, others need a place to stay. Just a little cosy corner to call your own. If you’re not looking to rent a whole house, condo apartment or HDB flat, but only a room, iProperty now offers an efficient way of searching room rental listings throughout Singapore in just a few easy clicks.

iProperty room rentalRegistration is free and 4 easy steps later you’re able to post your rental ad. Powered by iProperty, the rental portal resides at sg-house.com. Attract as many as 52,000 views on your post and find a suitable tenant quickly and at the comfort of your desk. It’s an easy way for landlords to reach potential tenants and vice versa.

Short-term accommodation options are also available. Great for companies hunting down term rentals for their overseas employees. Filter down your search through keywords and find what you need pronto.

Besides this new feature, iProperty’s recently revamped website also has organised links and a site chock full of other property related resources such as a search function for properties near MRT stations or schools, directory of condominiums in Singapore and property trends.

Private condo units – Buy 15 in a go

As the property cycle could be heading towards its low point, property developers are eager to find ways to let go of remaining units in order to recoup losses or earn whatever profits are left.

Some have taken to offering discounts or freebies, whilst others have are even offering bulk sales of units at lower prices. Buyers are now more cautious about their purchases and with lending limits being restricted, many are now unable to afford additional property purchases. Most of these would be the middle to upper-middle classes who eye small private apartment units as potential for rental revenues. But as rental demand dips, they may think twice.

Newton Imperial21 units of the 36-unit condominium, Newton Imperial has been put up for bulk sale recently for possibly between $65 to $72 million. Only 15 units of the Great Newton Properties owned condominium development has been sold since its completion in 2011, most of which are to foreigners. The Newton and Novena area is known to be popular with expatriates and was once in hot demand as its city fringe location made its properties highly valuable. Most of the apartments in Newton Imperial are three-bedroom units.

Though bulk sales are a risky investment, there might still be a chance of profits, especially if the units are designed to suit specific tastes and are in the right location. Rental of private apartment units in Newton are at an average of $8, 000 psf. Units at the Newton Imperial were previously sold at approximately $1, 880 psf. Nearby, other private establishments such as L’Viv and 26 Newton are selling units at $2, 100 to $2,600 psf.

What lies in the future of private properties? Is the market headed towards a downward spiral and at what speed?

Resale HDB flats in 2014

As the markets quieten down for the year end, one may wonder what the new year will bring. More new private homes? Or perhaps a revival of the resale HDB flat market which has seen less action especially in the last quarter of 2013?

For the first half of 2014 at least, sales transaction of resale HDB flats are not expected to soar. In fact, it might be the second year in a row, following 2013, with the least number of sales in the last five years. Usually the average number of transactions a year come up to between 24,000 and 37,000, but this year, the numbers may fall below the 20,000 mark.

HDB flatsOne of the main factors behind the dip could be the restrictions placed up PRs (permanent residents) buying HDB flats. Following their receipt of the PR status, they are now required to wait 3 years before being able to purchase a public housing unit from the resale market. But this may in turn drive up the rental demand, thus once again this may turn the market on its heels and redirect interest into the rental and private property market. Are more investing in private properties in order to ensure quick returns through rental yields? And could this be the trend for 2014?

As more new BTO flats are made available to first- and even second-time applicants, the lure of resale HDB flats may weaken even further. Location and space could the resale market’s plus points however. And as HDB holds back on its building schemes and reduces the number of launches next year, the buying crowd may once again consider resale flats more seriously. And industry players are more positive about H2 of 2014 as the low selling prices and COV (cash-over-valuation) attract buyers back into the market.

Geylang East shines brightly for property investors

Saying “Geylang” is almost the same as saying “Red light district”. But as infamous as the area is, for its various night-time activities as  as good food, properties at its fringes are also becoming the favourites of savvy investors. Its accessibility to both the Paya Lebar commercial and industrial areas and the city centre has placed Geylang East in the spotlight, but for all the right reasons.

Surrounded by small apartment blocks, shophouses and boutique hotels, the area is plump for the picking of property developers hoping to add new private homes to the district. The fresh and continuous supply of workers in the neighbouring commercial centres looking for homes to rent will provide investors with positive rental yields.

Grandview SuitesThe latest land sale of a 99-year leasehold residential plot near the Aljunied MRT station could be indicative of 215 new homes. Recent launches in the area include Grandview suites in Lorong 22, The Centren in Lorong 27, The Octet and #1 Loft. Most are smaller condominium developments with less than 60 units each. Average selling prices are between $1, 184 psf to $1,300 psf. Guillemard Suites is one of the larger establishments with 146 units and its freehold status makes it popular with investors even long after its launch a couple of years back.

Industry analysts said the median capital values for homes in Geylang have risen across the board over the past 3 years and are likely to continue its climb as Singapore’s urban and commercial landscape looks set for a major revamp and regeneration over the next 5 to 10 years.

Homes, homes, homes galore

204,461 in 2016. And a good lot of it will be in the private property market. The number of HDB flats remain the same but there will be an increase in the number of private properties and executive condominiums (ECs) come 2016. One might question if Singapore really does need that many homes or is it a case of having enough homes but at prices not many can afford?

Forestville Executive Condominium.

Forestville Executive Condominium.

In 2013 alone, 15, 824 private homes will be built come end December. In the public and private hybrid housing (EC) market, the number this year is 1,659 and counting. Over the next 3 years, buyers can expect 1, 355 executive condominium and 4,884 new private properties to enter the fold. Sales of private residential homes have already begun to dip, will this increase in supply signify a further price drop over the next 3 years? Or will the supply glut dissipate quickly and redirect interest into the resale and rental markets?

Sales of new properties plummeted 46 per cent with only 2,430 units sold in Q3. 1,340 resale units were sold, at a 35 per cent drop. Overall, private property prices still rose though at only 0.2 per cent. Most of sales came from suburban condominiums. City centre home prices dropped 0.3 per cent but city fringe homes suffered a 1.1 per cent decline.

But despite recent lulls, a rise was registered in the rental front, at an increase of 0.2 per cent . Has the make-up of Singapore’s population shifted, with a larger percentage of temporary residents or has the population’s property purchasing habits changed and more are willing to simply rent rather than purchase a permanent home? Which way is the nation headed and are we becoming more like the bigger cosmopolitan cities in the world?