Kampong Bugis gets new life

With the introduction of a new 212-unit condominium project, The Kallang Riverside, the quiet township of Kampong Bugis is getting a new lease of life.

As Singapore undergoes a major revamp with URA’s draft masterplan 2013 to revitilize various areas island-wide,  districts which are close to bodies of water are particularly attractive to property developers and investors. As the former Kallang Airport and the land between Kallang Road and Crawford street makes way for new homes and businesses, the Kampong Bugis area will see much more activity when it is established as the waterfront residential area it is intended to be.

Kallang RiversideYet to be launched, the Kallang Riverside condominium is set to have its prices pegged at around $1, 500 to $1, 700 psf. Price comparisons may be tricky as there have been very few resale properties in its vicinity. Considering its prime city fringe location, it’s a wonder it is not a hive of real estate activity yet. But its lack of competition could mean a worthy investment as rentals are relatively stable as compared to some suburban properties. One of the few new residential projects nearby is the Southbank mixed-use development, with only 3 resale units registered last year at between $1, 639 and $1, 940psf. At the Citylights condominium apartments nearby, prices were around $1, 276 to $1, 684 psf.

As the area promises up to 4, 000 new homes, commercial businesses and even a school when it is up and running after 2016, buying now could mean positive short-term investments and possibly even better long-term ones.

Property measures not hurting Malaysian property sales

And more are flocking to the local label of the new Puteri Cove Residences. This new luxury condominium is developed by local property developers, Pacific Star and DB2, with sea and harbour-view units up for offer, local investors seemed to have taken a liking to this new property.

Puteri Cove Residences. Photo by Pacific Star Singapore.

Puteri Cove Residences. Photo by Pacific Star Singapore.

450 of the 600 residential, 56 Soho and 340 serviced property units were sold within a week of its launch. Upon its targeted completion in 2017, this mixed-use development will also include a waterfront promenade housing eateries, retail stores, commercial businesses and clinics. Located strategically between the Second Link at Tuas and the Woodlands Causeway, it’s poised to have a brisk flow of traffic. Units consisted of one- to four-bedders between 600 to 4,100 sq ft. Prices ranged between RM 1, 180 (S$457) to RM 1, 580 (S$612) psf.

Most buyers were Singaporeans, followed by Malaysians and Indonesians. And with talks in the way between Singapore and Malaysia to improve transport infrastructure, such as the Kuala-Lumpur  expressway and a train system between Singapore and Johor Bahru, investors in the know are looking at long-term profitability. Will new Iskandar region properties continue to woo Singaporean investors?

Overseas property – New frontiers

Malaysia. Australia. London.

There are the usual hotspots for Singaporean property investors. But have you ever wondered what else is out there for the taking? Which other markets have green pastures providing long-term fodder for the profit-hungry?

Dubai, which once saw plummeting real estate prices when a bubble burst, is recovering well and once again housing prices are on the rise. To catch the property on its up cycle would be every investor’s dream. The Dubai authorities have since tightened up regulations, targeting in particular speculators. Their Real Estate Regulatory Agency, a regulatory arm of the Dubai Land Department, has rolled out a rental index which is updated every four months. As Dubai continues to expand as a commercial hub, the stream of expatriates who will be looking for rental units keep investors happy for now.

Vida Residence DubaiPhoto Credit: Emaar

Besides commercial properties, some of the most sought-after residential real estate in the Emirates are in popular communities and districts such as Downtown Dubai, Dubai Marina, Arabian Ranches and Emirates Living.  The 57-storey Vida Residence in Downtown Dubai with 320 serviced apartments are selling one-bedders for approximately S$660, 000.

Japan, which most would regard as one of the countries with the highest standard living, surprising has some good property investment opportunities. The low yen has no doubt helped. In the highly populated Tokyo for example, properties in Shinjuku and Shibuya, the 2 most popular shopping districts, are popular with investors. Since Tokyo won the right to host the 2020 Olympics, interest in properties near the proposed Olympic stadium in Harumi have also gained momentum. These include the freehold Harumi Tower with prices starting at S$900 psf. Just 800m away from the Tokyo Tower is the 13-storey Concieria Mita, a freehold property with studio apartments going at a surprisingly competitive S$436, 000.

Conciera Mita condo

Photo Credit: ECG

So it might truly be worth the time and effort to look beyond the usual suspects for investment opportunities which might be more profitable than fighting for those closer to home.

New home sales up in February

After much news about home sales taking the hit, a rebound has brought some cheer to February.

Mainly lead by new suburban property launches, analysts are hoping that this is a sign of the market stablising. Excluding sales of executive condominiums, the Urban Redevelopment Authority released data showing a 28 per cent rise of private home sales of 724 units as compared to January’s 565 units.

2 launches in the Sengkang area, Rivertrees Residences and Riverbank @ Fernvale, made up majority of the sales. 218 units of the 495-uni Rivertrees Residences were sold at a $1,111 psf median while 211 units were sold at the 555-unit Riverbank @ Fernvale at an $1,033 psf average.

Rivertrees condoThe future however may lie in the hands of the property developers. Depending on their pricing structure and strategies, the buying public may respond correspondingly. Some older projects with units yet unsold, as well as resale units may find themselves competing intensely with lower-priced newer properties. But if recent sales are anything to go by, finding the sweet spot that hits home with pocket-conscious home buyers will bring the crowd back into the market.

Buyers who are looking for a good deal may find themselves searching for less salable units in older projects which may still be worth the investment depending on their location and potential for future development. March may be the turning point of this delicate dance between buyer and developer. What will the month show in terms of sales volume and prices?

HDB dwellers invest in shoebox apartments

With a private home market which fell 40 per cent last year, 2014 looks like it might continue to be in the home buyer’s favour. But more HDB dwellers have been snapping up shoebox apartments in light of the fall in home prices.

J GatewayConsidering the fact that most HDB flats are more than 500 sq ft in size, these smaller homes are more likely than not for investment purposes. In 2013, 13.3 per cent of private home transactions were from HDB dwellers, with them making up a whooping 62 per cent of sales in the shoebox apartment category.  Some of the more popular choices from this group were the Bartley Ridge, J Gateway and D’Nest condominium developments.

But it seems buyers are letting their nest eggs lay for longer, with secondary home sales dropping to a 10-year low. With smaller apartments being possibly easier to rent, with its overall lower rental price, it is an easy entry-level property investment and suited to HDB owners who are looking to ease their way into the private property market.

Who exactly are still buying up private properties then? The foreign buying force, it seems. The fall in foreigners purchasing homes here is marginal and in fact increased from 6 to 9 per cent in 2013. Mainland Chinese were the top buyers, closely followed by Malaysians and Indonesians.

When even suburban mass-market home prices fell

8 RajaSingapore’s housing market could be bracing itself for a year of tougher times. It has after all enjoyed a rather long period of highs.  Though the initial signs are slight, a 0.7 per cent drop in December, it could be a warning for the year or next couple of years ahead.

As new properties now come with lower price tags, apartments in the resale market may find themselves having to lower their prices as well in order to attract buyers. The biggest decline came in the suburban segment, which may be a bit of a downer for the market since this is the sector which has been faring the best for many consecutive quarters. But the huge number of launches all over the island could have diluted the buying crowd. Investors who would previously have snapped up these properties in a jiffy may also have been hindered by the loan restrictions implemented last June.

Homes in the central districts could however take the hardest beating this year as many are left unsold. As most of the properties head towards completion in the next few years, the housing supply glut may become more apparent. Put into the mix resale properties and the bowl seems rather big, unless of course the population grows, which might cause other issues for the small nation and its limited resources and space.

Which districts will earn you big bucks, and fast?

It will not be an overstatement to say that the property industry in Singapore is booming. Recent announcements by the government may have gotten everyone into a festive mood with the promise of good things to come. But those good things, such as the Greater Southern Waterfront, may be planned this year, but may only materialise a decade or so in the future. A savvy investor would probably look at which areas will be completed first, and target those for sooner returns.

Woodlands Regional Centre URAThe Woodlands Regional Centre has been in the works for sometime now, drafted and planned by the URA under the Masterplan 2008. Being the closest to our neighbouring Johor Bahru, and served by an established transport network, which will only be further extended in future, commercial plots are already being put up for sale by the government as early as December 2013. Investors can expect development to be rapid, possibly up and running within the next five years.

In another district with a different ambience, but still as vibrant, is the Holland Village area. With bits of nostalgia and pockets of the new and modern, it’s an eclectic mix which attracts the artistic aånd creative crowd. To be extended to include 1,500 new homes and community park, it is also suitably close to the commercial hubs of Biopolis and Fusionpolis at One North. With the circle line and upcoming Thomson line, it will be even easier to connect to other parts of the island from this “urban-village” icon. Properties and businesses in this area might be set up to see a huge change.

Holland Village Extension_640.ashxIndustry analysts are expecting the other areas included in the Master Plan 2013 to be developed much further down the line. The Marina South area for example, will only be developed after the completion of the Thomson MRT Line, which means it will only  begin work 4 years later. Tanjong Pagar, Kampong Bugis and the Greater Southern Waterfront are all areas set for development under the Master Plan 2013, but properties in these areas will mostly be commercial and retail. Residential properties will command high prices, for its proximity to the city centre, thus property consultants are expecting new suburban areas to overtake in popularity and speed of progress.

No mixed feelings about Mixed-use properties

In comparison with suburban and city fringe homes, properties in the downtown area has been languid for awhile. But that looks set to change as the growing popularity of mixed-use developments return with a vengeance. There are a total of 4 mixed-used properties currently in the planning stage and that includes one which might claim the title of the new tallest building in Singapore.

Marina One residential project with 1,042 new condominium units. Photo by marina-one.org.

Marina One residential project with 1,042 new condominium units. Photo by marina-one.org.

These properties are:

Although these projects sound more like shopping malls and offices, which they will have, they will also include hotels and residential units. Their prime location will command high prices for these apartments, and developers are expecting most buyers to be foreigners or those looking for a worthy piece of investment property. But rental yields might also be considerable as these projects are close to the city centre and central business district (CBD) and also provides the prestige of a downtown address.

Tanjong Pagar CentreResidential units at the DUO, which is situated between Rochor and Ophir road, will be put up for sale before the end of the year. The 49-storey residential block will hold 660 studio apartments and one- to four-bedders and penthouses. Just below is the Bugis MRT station of the new Downtown Line.  Marina One is touted to be one of the only developments in the Marina Bay district to have 65,000 sq ft of greenery. Rare in a built-up city like Singapore, and especially in the city centre. It is also twice the size of DUO.

Tanjong Pagar centre might be the tallest feature in Singapore when it’s built. At 290m, its residential units, Clermont Residences, will be up for sale also end 2013. At South Beach, only 190 residential units will be available.

Will the launch of these mixed-use developments inject some fervor into the year-end property market?