Yishun – Old town Rising

It used to be a faraway place which many shunned because of the lack of accessibility and amenities. But over the years, Yishun, previously a new town, and now perhaps an older estate recently revamped to include new private condominiums, hospitals and integrated developments, may be standing out for different reasons.

Besides the Khoo Teck Puat Hospital which was completed in 2010, another Yishun Community Hospital is being built and it may even trump other older estates such as Bishan or Ang Mo Kio because of its proximity to healthcare. And with Northpoint City, an integrated mixed-use development coming up in 2018, Yishun might not be so secluded anymore.

Northpoint City YishunPrivate condominiums in the area which will be ready within the next few years include North Park Residences and Nine Residences, Skies Miltonia and Symphony Suites. And some 5,000 new HDB flats have been released in Yishun over the last couple of years, including the rare dual-key units for extended families.

Though property analysts are yet unsure about how investing in residential properties in this area may profit the buyer through rental yields, the value of properties here may be stronger than once considered, as its proximity to outdoor and lifestyle amenities such as the Seletar Reservoir and Orchid Country Club may attract young families and professionals. Businesses may also be looking into buying units here as the Seletar Aerospace hub is just a stone’s throw away.

Thus the once sleepy town may not be so quiet anymore. For good reasons.

Focus shift to Mixed-use commercial developments?

As the private residential property market takes a slight hit, it may be time to shift the focus onto other property types such as commercial properties and possibly mixed-use developments which have been quite the new kid on the block for these couple of years.

And perhaps buyers who have purchased a unit in the residential part of a mixed-use development could look into investing in a commercial unit in the connecting mall or office. The proximity makes it easier to keep an eye on the property and living near a shopping mall could also have its perks, including saving on time and transport costs. With most mixed-use developments situated near other public facilities such as bus interchanges, MRT stations, town centres and supermarkets,  accessibility and connectivity are prime calling cards.

Le RegalThere are some cons however. Some home owners may find their home surroundings a little less quiet and exclusive because of the connectivity to the malls, and the costs of these units are usually much higher than the next private condominium just down the road. However, tenants may prefer these units and be willing to pay higher rents.

Some of the more popular mixed-use developments in the market include Nine Residences which is above Junction 9, The Centris which is connected to Jurong Point, The Hillier, Watertown and even older ones such as Thomson Imperial Court, Sunshine Plaza and Burlington Square. There are a few newer ones in the works such as Le Regal in Geylang and NEWest at West Coast Drive.

Marina Bay home sales show positive signs

Private home sales in the suburbs have been showing sign of strain as the increasing number of new completed condominium units compete for the increasingly limited number of buyers, which could be further limited due to loan limits, a downtown project seemed to be bucking the trend and pulling in sales in the luxury apartment sector.

Marina One Residences in the Marina Bay precinct secured half of the total number of home sales in October alone. But that could also be due to the fact that it was the only new launch in the month. 334 units of the 1,042-unit condominium were sold at the average selling price of $2,228 psf. However, sales were still lagging behind its initial preview launch when earlybird discounts were given, and sale prices hovered between $1,960 and $3,100 psf.

Marina ONe iprop watermarkDevelopers are finding it harder to attract the buying crowd and have found they are now more sensitive to pricing as it became more difficult to secure bank loans. Though the price fight is not evident yet, as buyers are still willing to fork out a considerable amount for properties in good locations, it may only be a matter of time before the cracks show. Especially since 2015 and 2016 will see an even bigger influx of completed private homes in the market.

For now, developers are focusing their efforts on selling remaining units at previously launched projects such as DUO Residences, Coco Palms and Lakeville condominium, thus holding back on new launches. Will this drive consumers towards other property types such as executive condominiums (ECs) and resale HDB flats or will they continue to seek better deals with the existing private property market?

New private condos threaten Rental Market

As more new private condominiums in the suburbs attain their occupation-ready status, the number of apartments available for rental has increased significantly and fierce competition has brought rental prices down. Though concentrated mainly in the suburbs, where most of the new condominiums are situated, the decline has dragged the rental market down by 1.5 per cent.

FOresta Mount FaberAnd as most of these new condominiums are in close proximity to HDB flats, the HDB rental market has also been affected somewhat as tenants now realised they may be able to afford a private condo after all and instead choose this option over HDB flats. And as this pressure is exerted on the HDB market, some HDB flat owners may consider jumping over to the private property market and the HDB resale flat sector may see some shifting as a result of the spillover effect.

From January to September of this year, there were a total of 6,621 condominium units entering the market in the suburbs alone. This has pushed rental prices down 5.3 per cent and a 1.3 drop in the number of rental deals signed in September alone. However, a year-on-year comparison with 2013 showed an increase of 11.8 per cent in terms of the number of units leased. This could signify a shift of tenants leasing private properties as opposed to HDB flats as the price gap narrows.

Eight RiversuitesMoving forward, 2015 and 2016 may see a vacancy rate of 10 per cent and more if immigration policies remain the same and if rental prices become even more competitive with up to 20,000 new units reaching completion annually. Is this a sign that the cooling measures have worked? Or is it merely a sign that investing in residential property may have to take a different slant, to focus on long-term profits through property appreciation rather than on short-term rental profits? How does that then change the criteria for property selection?

Glimmer of hope for Private resale homes?

Although the total number of private resale homes sold were lower in October than September, prices have begun to rise slightly. According to latest data, non-landed private home prices rose 0.4 per cent in last month. In suburban districts often popular with buyers such as Bishan, Toa Payoh, Little India, Geylang and Queenstown, prices rose 0.6 per cent. Transactions and prices of prime district properties however remained quiet, falling in fact by 0.3 per cent.

Okio Residences in Balestier.

Okio Residences in Balestier.

Have overall property prices fallen sufficiently? And have they reached the lowest point of the property cycle? If so, how long will this low point last? Private property prices have been low for quite some time now, maintaining a steady level in terms of pricing and transaction volume for almost half a year. The government has said that they will not relax the cooling measures anytime soon, perhaps in fear of a huge and quick rebound which may bring prices up even higher than before the curbs were put in place. They could also be giving the measures a bit more time to sink in, to further bring down home prices and getting the industry and public used to these measures.

Property experts are expecting prices to decline even further in the short term. Would this be the best time to invest? And how would you go about investing? Is it best to move away from residential property into commercial property? Or are there certain property types with hidden long term value?

Make An Educated Investment In UK Student Property

In the past decade, the UK higher education sector has been flourishing, leading to a considerable increase in the number of students in the country which means there is now a drastic shortage of purpose-built student accommodation (PBSA) available.

There are around 2.3 million students in the UK, the vast majority of which haven’t got access to university-provided accommodation meaning that a serious supply-and-demand issue is facing nearly all the main university cities in the UK.

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The industry has been heralded as being one of the strongest property markets but there has been little concrete evidence about the popularity of PBSA to date since many of the developments have been under-construction. However, in a clear demonstration of where the sector is heading, leading student property provider Vita Student has announced that it has achieved 100% occupancy across its five recently completed sites, with nearly 1,000 beds occupied in Manchester, Liverpool, Bristol, Exeter and Southampton.

Vita student logo

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This has been achieved because the brand represents the next generation of student accommodation with it giving more consideration to the overall living experience rather than just delivering high quality accommodation. This approach has meant that Vita Student transcends other investment opportunities in the industry simply because occupancy rates cannot be matched by other providers. Consequently, higher rental returns are achieved and a stronger investment model is delivered. Savvy buyers from Southeast Asian countries have been quick to recognise this and 15% of Vita Student sales have been to people from countries such as Malaysia, Thailand and Singapore.

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Investor confidence in Vita Student is so high that international clients have responded very quickly to its newest project in Newcastle, with 60% of the development sold in just 7 weeks. The properties are sold exclusively through Select Property and investors are offered an assured 7% rental yield for five years, which will start to be paid once the residence is opened. Prices start from £93K and the return will be given out on a termly basis.

Jimmy Chan lives in Singapore and bought a property at one of Vita Student’s residences in Liverpool last year. He believes that the strength of the British higher education system provides the ideal foundation for a profitable property investment.

He explains: “I always make sure I monitor the international property market for trends that I can benefit from and the student property sector in the UK caught my eye a while ago. “Academic institutions in the UK are going from strength-to-strength and the quality of the education is renowned across the world. I’ve seen first-hand that students in Asia are doing everything they can to attend university there – a movement that is sure to generate a huge demand for accommodation in all the major cities.

“This made me look more closely at the student property market and I found that the potential rental returns are much higher than other property assets which obviously made me even more interested in making an investment.”

Click here to find out more about Vita Student’s latest investment opportunity in Newcastle.


SELECT PROPERTY – PROPERTY INVESTMENT EXPERTS

 

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Select Property is a trusted investment expert, selling over 9,000 properties to investors from more than 100 countries worldwide.

Constant assessment and evaluation of the market enables Select Property to identify and offer investors prime opportunities with assured realistic yields.

Through the Vita Student brand, Select Property has an unrivalled track record in the student property market and a future-proof product.

Vita Student is the only luxury purpose-built student accommodation provider to deliver 100% occupancy across 1,000 properties.

Investors trust Select Property and are confident buying into the Vita Student brand, assured in the knowledge they’ll receive minimum NET rental returns of 7% per annum for 5 years.

Vita Student is uniquely positioned in the £200 billion student accommodation market, and is the only investment that equates end-user experience to investor returns. Via the expertise of Select Property, Vita Student is also the only brand with the insight and capacity to naturally evolve within the market.

In the 2014/15 academic year, 5 new landmark buildings opened their doors, allowing a whole new cohort of students to add their voices to the swell of Vita Student support. All of these developments are fully occupied, underlining the fact that Vita Student is more aligned with the rising expectations of the modern student base than any other provider.

 

Almost all Lake Life EC units sold

At $799 to $930 psf with starting average prices of $685,000 for a 2-bedder to close to $1 million for a 3-bedder, units at the Lake Life EC in Jurong flew of the shelves over the weekend. Only 12 out of its 546 units  were available as of yesterday.

Lake Life ECThe palatable quantum prices of units at the executive condominium (EC) by Evia Real Estate could be the main draw. With a lower loan limit and other cooling measures in place, property buyers are now on the lookout for properties with a lower total selling price rather than focusing on per-square-foot prices. Evia Real Estate has done their homework well, and projected that the deepest pockets of buyers for the Lake Life, according to the demographics of the Jurong district, would be not more than $1.1 million. The pent-up demand for ECs may also have accounted for much of the rush for units in this quickly developing region. The Jurong and Jurong Lake district looks set to be one of the newest and busiest areas for development under the government’s island-wide growth plans.

URA Jurong Lake District

Photo credit:URA

In fact, some of the buyers were originally considering private properties in the area but decided instead to go for the EC options instead. Many saw it as a good investment even though they were purchasing units to live in for the moment. Executive condominiums are a hybrid between public and private property and can be sold after a 5-year minimum occupation period (MOP) in the open market. After 10 years, it will become a private property and may fetch even higher prices.

The other 2 ECs entering the market at the same time are Bellwoods and Bellewaters, developed by Qingjian Realty.

New properties lower overall rent

Though the government has reduced land sales in the second half of the year, a fresh new crop of properties reaching their point of maturity in the next year may have some effect on the rental prices of private properties across the board. In 2013 alone, 16,000 new non-landed properties entered the market and 25,000 more are expected to flood the market by 2016.

Shore Residences on Amber Road

Shore Residences on Amber Road

Tenants will have more rental options ranging from units in brand-new condominium to those at older private apartments as a large supply of condominiums enter the market next year. And as most tenants in a new development receive keys to their units at the same time, they may face competition from one another as they put up their units for rent at the same time. Older neighbouring properties as well as HDB flats may also face the same competition as tenants opt for newer choices. Rental prices may waver and some landlords may find themselves having to lower the rent to secure a suitable tenant.

Landlords may find themselves competing for the same and somewhat decreasing tenant pool, especially with concurrent restrictions placed on the foreign workforce. Diminishing expatriate housing allowances may also mean tenants may be looking out of the city centre for rental options. And though most of the new properties are situated out of the central region, the sheer supply may overshadow the demand.

Take the Katong, Joo Chiat and Amber road district for example. In that small area, there is The Shore Residences, Silversea, The Meyerise amongst other older properties. And in the up-and-coming Punggol and Sengkang regions, there is a good mix of ECs and private condominiums such as A Treasure Trove, The Luxurie and the latest launch of Bellewaters. It could very well be the battle between the new and newer in time to come as many new homes are erected in already-new clusters of private homes.