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10 May

Marina Bay’s Allure

Just at the edge of the Central Business District (CBD), right in the centre of Singapore’s newest entertainment hub and with a view to die for, it’s not wonder properties at Marina Bay are drawing the well-heeled crowd in. With the intention of cultivating this area as the new Financial district, commercial units are being built and occupied at a rapid pace. As a happy spillover, residential properties nearby are enjoying the business it brings in. Companies and individuals with cash to spend are taking the the area due to the proximity and high-end address it provides.

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.

The Marina One development expected to complete by 2017 looks set to bring in even more money, both commercial and residential. Jointly developed by Temasek Holdings and Khazanah Nasional’s M+S, it will have a 341,000 sq m gross floor are and a gross development value of $7 billion.

Surrounding developments such as The Sail @ Marina Bay and V on Shenton are also seeing positive response over time. The Sail @ Marina Bay for example launched for $980 psf in 2004 but has more than doubled to $2, 180 as of the past 15 months.

V on Shenton condominium.

V on Shenton condominium.

Marina Bay Suites sold one of the most expensive units in the area at $3, 313 psf. Median prices were at its peak in Q3 of last year at $2, 229. In the beginning of 2012 it was at $1, 926 psf.

Despite the dampened buying interest following January’s property tax hikes, tenants looking to rent homes nearby will continue to keep investment at a healthy level. Rental yields for apartments in Marina Bay are between 2 and 3 per cent. Median monthly rents range from $5.25 to $6 psf. Compared to rentals in other prime districts, it’s higher than their $3 to $5 psf median. It also helps that the proximity to the CBD and shopping and entertainment belt also helps keep selling prices high so whether its short or long term investment you’re looking for, the Marina Bay area may give you the best run for your money.

16 Jan

2013 property market looking up for now

Despite industry experts’ predictions that 2013 might be a plateau year for Singapore’s real estate sector, sales over the first weekend of the year have proved otherwise. Private condominiums and Executive Condominium (EC) launches have done well, with brisk sales at the showflats.

Buyers could be expecting further rise in prices over the year, and are thus eager to get a slice of the pie before things get even more heated up. Perhaps in the later part of the year, more will be looking to sell than buy. What then? Is the dreaded supply-demand weighing scale expected to finally tip this year?

Echelon
Echelon at Alexandra View, a 508-unit condominium by City Developments (CDL), sold 390 units. Early-bird prices for the project was $1, 700 psf and an average of 2 to 4 per cent increase is expected for future releases. 80 per cent of the buyers were Singaporeans, though PRs and foreigners from Malaysia, Indonesia and China made up the rest of the buyers. Most might be investors who are hoping to reap in profit from rentals as the apartment block is relatively near the Redhill MRT station.

La fiesta

Nearby, most of the 52-unit SeaSuites in Pasir Panjang were soldl. Executive condominiums, CityLife @ Tampines, Heron Bay, 1 Canberra and Watercolours were not outdone as well. Upcoming launches include La Fiesta condominium next to Sengkang MRT station. Prices are expected to hover around $1, 100 psf.

Analysts have said buyers are no longer basing their property buys with the month, and the Hungry Ghost Festival month may not affect property trends this year. However, timing is still everything if you are looking to invest. And it may do well to attend property seminars and keep track of updated property news throughout the year.

20 Dec

Singapore top 5 in Asian real estate investors’ list for 2013

Things may be looking up for Singapore next year, in the real estate market. Asian property investors are looking forward to the market picking up in 2013, and that means they might be looking for new areas to put their money. Up to 70 per cent of investors have indicated an interest in expanding their property portfolio within the region. They are looking for 20 per cent or more in returns, according to the Colliers 2013 Global Investor Sentiment survey.

Singapor aerial view

Singapore, together with Shanghai, Hong Kong, Tokyo and Beijing, will benefit from this renewed interest in Asia. Though it is uncertain if they are only looking at office developments, the residential market may benefit as well as previous reports have put the luxury property market at a lull. Depending on whether new cooling measures will be rolled out and how they may affect residential investors, there is still a possibility that investors are eyeing both commercial and residential properties.

It is interesting to note that issues once considered determining factors in investment are not necessarily top priorities. The euro zone crisis, and United States and China elections are not rated top in the investors’ checklist. As long as they consider real estate a good hedge against inflation, the money for high-end properties with good potential in a major Asian city will keep coming.

14 Dec

The property rent vent

Landlords are finding themselves at the mercy of tenants, some having to slash prices to find one. The diminishing pool of high-flying tenants is the main cause. More so for owners of prime district high-end luxury condominiums though. The expatriate working force have smarten up and many are now opting for mass market homes further away from the city centre and at lower prices. And especially with the sudden boom of new condominiums all around the island, things do not seem to be getting any easier for these city centre private condominiums.


According to URA’s data, private housing rents were up 17.9 pre cent in 2010 but only a paltry 3.8 per cent last year. And for this year, experts are expecting it to maintain last year’s increase at best. The only sprout seems to be Geylang, which has come up as one of the more popular areas for rentals of cheap shoebox units. The link to the changes in the immigration policies here as well as the exit of some major multi-national companies, is stronger than we think.

With the government reining in home mortgage spending and possibly rolling other cooling measures one can only guess at, careful consideration and calculation may prevent you from getting into a property investment situation you are unable to get out of. So if you’re thinking of investing in a private home in the current situation, do note that tenants now favour mass market suburban homes. Will this eventually affect private home prices, and then resale HDB flat prices?

20 Nov

More investors flocking to London Properties

Near the popular Oxford Street shopping belt in Central London, the Fitzroy Place apartments are raking in millions in property sales. At least 60 units were snapped up by Singaporean buyers over just two weekends. Average price? £1, 700 (S$3,300) psf.

Fitzroy PLaceWhy the rush for properties in London? Is the market looking up and could London be the next spot to watch, especially for foreign investment in residential properties? What is the attraction and what are the returns?

The British government has recently amended stamp duty for properties above the  £2 million mark  from 5 to 7 per cent. And if a company is purchasing the property, the stamp duty is up to 15 per cent. Hefty for sure. But the only thing it has changed is that sellers readjust their prices to hold it slightly below £2 million to avoid the duties.

Industry experts however do warn against the possible depreciation of the British Pound against the Singapore dollar. Even though it may seem that more are now available for the same amount, further depreciation may affect the capital gains or negate rental yields. This however, is dependent on which properties were purchased in the first place. Besides properties in Central London, those in selected city fringe and suburban areas are also seeing a rise in interest from overseas investors, particularly those from Hong Kong and Singapore.

Where can you find out more about investing in overseas properties? If you missed iProperty’s International Property expo earlier this month, don’t fret. Watch this spot for more property event updates and seminars where you can gather important information and pose questions to industry experts.

16 Nov

The Promised Land

At least this may be how landed properties are viewed in Singapore.

Thomson HouseMost buyers and investors would see owning their own land and building their own home a dream come true. Thus it is no wonder landed properties around Singapore are commanding rising prices. Suburban landed homes have recently seen a rise in prices and sales.

The districts which saw the most fervent activity were District 20, 16 and 23. Strangely, district 11 (Novena, Watten Estate) saw a dip in prices this past year. Ang Mo Kio saw a rise of 23.2 per cent in average psf price in 2012, topping the charts with an average psf of $1, 266. Notably, the Serangoon landed homes are selling exceedingly well, with the higest number of sales in the third quarter, with a rise of 33 per cent of sales in a quarter-on-quarter comparison. At these prices, could this be a sign that property investors are becoming more savvy and cost-conscious, and shunning more expensive city-centre homes for suburban properties in the city-fringe?

Industry insiders are predicting that the additional buyer’s stamp duty (ABSD) could have turned investors away from homes in central prime districts. In the long term, they also expect demand for landed housing to remain positive and prices to continue to trend upwards.

14 Nov

Property prices heading skywards

Cooling measures have met their match as the property market here heats up. Healthy sales from recent new property launches such as eCo in Bedok South and Sky Green off Upper Paya Lebar Road are indicating a rebound in property sales following a slight dip after announcements of the most recent property cooling curbs which were more to safeguard the banking system from excessive lending rather than deter investors or buyers from snapping up properties.

Skyline ResidencesAs long as investors still have sufficient funds to afford the cash upfront payments for properties, and have holding power to support their purchases, the buying may continue well into the next year or two. Instead of a complete stop, they could simply be turning their attention to smaller, more affordable units. Will shoebox apartments benefit from this change of direction?

Areas which showed the most positive sales were homes in the city-fringe and suburban areas. They held a average rise of 4.5 per cent and 4.2 per cent in October. Industry players cite rising construction and land costs as one of the reasons for this continued price hike. Corresponding rise in prices of resale HDB flats may have also provided a boost in the suburban homes market.  The narrowing price gaps between city-centre and suburban homes might be the next trend to watch, as that could very well be the sign of the next property bubble. Whether it will burst and when is a path to be lightly treaded.

26 Oct

Residential property investors on the decline

The property cooling measures seem to be finally taking effect as the number of property buyers purchasing real estate for investment purposes are decreasing. Since the several rounds of property cooling curbs have been launched, the percentage of residential property investors have dropped from 38 per cent in 2010, to 31.8 per cent in 2012.

With the most recent measure being the home loan tenure period limitation, industry analysts are predicting an even further drop when the full 12-month figures are out. Despite the decline, one in three home buyers here are still looking into buying properties for investment purposes.

iProp EXPO Nov 2012With the raise of downpayments for a second and subsequent property to 40 per cent and a 16 per cent stamp duty for home owners selling a property within a year of purchase, many home owners have been putting down their children’s names on the second or third mortgages. As their children are younger and can have more years on the loan tenure, it gives them the ability to purchase bigger apartments. On paper that is. And many of these property investors may have already taken out their mortgages prior to the recent property cooling curb. Should you be a current property investor, is it a good time to enter the market?

How does this affect the affordability of homes? Is investing in residential property risky and what should your considerations be? If its answers from experienced experts you’re looking for, attending timely property and investment seminars may be one way you can gain more knowledge and ensure that you are truly making a wise decision.

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