Singapore Property Weekly Issue 28

8/3/2019 Singapore Property Weekly Issue 28

1/14


2/14

ContributeDo you have articles and insights and articles that youd like to share

with thousands of readers interested in the Singapore property

market? Send them to us at [email protected]

, and if theyre good

enough, well publish them here, on our blog and even on Yahoo!

News.

AdvertiseWant to get your brand, product, service or property listing out to

thousands of Singapore property investors at a very reasonable

cost? Head over to www.propwise.sg/advertise/ to find out more.

CONTENTSp2 Singapore Property News This Week

p6 Can Real Estate Investment Make Me Ultra-Rich?

p11Resale Property Transactions

(November 12 November 18)

p13Singapore Property Classifieds #18

Welcome to the 28th edition

of the Singapore Property

Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/http://www.propwise.sg/advertise/mailto:[email protected]


3/14

SINGAPORE PROPERTY WEEKLY Issue 28

Singapore Property This Week

Page | 2Back to Contents

Residential

Reversal for prices of non-landed private

homes prices rose by 0.9%

After three months of negative or zero growth,

prices of non-landed private homes rose by

0.9% in October, according to National

University of Singapores (NUS) Singapore

Residential Price Index (SRPI). Prices of new

launches were strong in the earlier months but

prices of resale homes had either remained

stagnant or decreased. With the prices of the

latter catching up to the former, the prices of

non-landed private homes has risen. The

increase may also be due to higher

confidence in the market given the recovery in

the stock market and the low interest rates.

Prices are likely to increase as new launches

continue to set record-breaking prices and

sellers whose homes are near these launches

follow suit.

URA and HDB launch three residential

sites for sale

The Urban Redevelopment Authority (URA)

and the Housing and Development Board

(HDB) have launched three 99-year leasehold

residential site at JalanLempeng, Mount

Vernon Road and Kovan Road that can yield

up to 1,830 units.

The 2.4 hectare JalanLempeng site has a

maximum gross floor area (GFA) of about

735,992 sq ft and can yield about 685 units.


4/14



Bids are expected to range from $540 to 550

psfppr, given its eventual selling price of

$1,150- 1,170 psf as a result of its location

near tertiary institutionsand the new Clementitransport hub, and Clementi Mall.

The 2.1ha Mount Vernon Road site with a GFA

of 784,032 sq ft and a potential yield of 785

units is expected to draw a top bid of $610-

630 psfppr giventhe average selling price of$1,200 psfppr. It will likely attract employees

who work in the industrial estates near the

site.

The 1.7ha site located at Kovan Road/Simon

Road, with a 384,142 sq ft GFA and a potential

yield of 360 units is expected to attract bids

ranging from $550- 560 psfppr based on an

average selling price of $1,100 psf.

The tenders will close at 12 noon on Jan 12,

Jan 10 and Jan 18 respectively.

Archipelago@ Bedok Reservoirs expected

average price: $1,000-$1,100 psf

The 577-unit 99-year leasehold project located

on a 491,080 square foot site which consists

of condominium units and strata houses is

expected to fetch an average price of $1,000to

$1,100 psf. The 4,400 sq ft five-bedroom

strata houses have an indicative price of

above $3 million while one-bedroom

condominium units ranging from 527 to 667 sq

ft are expected to fetch $600,000 onwards.

Two- and three-bedroom units ranging 829 sq

ft to 1,894 sq ft makes up 63 per cent of the

units sold.


5/14



There are also 15 five-bedroom units

rangingfrom 2,411 sq ft to 2,648 sq ft.The

51penthouse units include 15 penthouse lofts

with two bedrooms and a study and penthouse

units ranging from 1,432 sq ft to 3,434 sq ft

with four bedroom, five bedroom, and five

bedroom with study.

Top bid for BtPanjang mixed use site from

Sim Lian

There were 10 bids for the 99-year leasehold

commercial and residential site that will be

integrated with three transportation nodes -

the Bukit Panjang LRT and MRT stations and

a bus interchange, with the top bid from two

Sim Lian entities being $805.26 per square

foot of potential gross floor area (GFA). It will

probably be developed into a retail and condo

project since at least 35% of the 612,078.41

sq ft maximum GFA has to be set aside for

commercial use. The top bid was higher than

the earlier prediction of $600-$700 psfppr, a

result of the higher confidence in mixed-use

developments integrated with transport

amenities.The average selling prices are

estimated to be $1,300 psf for the residential

component and $2,700 psf for the retail

component, assuming a efficiency ratio of 65

per cent. The site has to be completed in

seven years.

Commercial

SabanaReit to acquire JTC leasehold

industrial property in Woodlands

SABANA Shari'ah Compliant Industrial Real

Estate Investment Trust (SabanaReit) isbuying a three-storey industrial property for

$14.8 million, to be funded by debt. Located at

6 Woodlands Loop, near Admiralty and


6/14



Sembawang MRT stations and easily

accessible by Bukit Timah Expressway (BKE),

the property has a totalgross floor area (GFA)

of 77,544 sq ft and 43 years lease remaining.

Once the acquisition is final, SabanaReit andMMI Holdings (the current tenant) will sign a

three-year lease agreement.

Chip EngSeng beats out five other bidders

for Alexandra hotel site with $189 Mil top

bid

There were six bids for the state tender of

a99-year-leasehold hotel plot next to Ikea at

Alexandra Road, with Chip EngSeng

Corporation unit CEL Development winning

bid of $189 million or $789.19 psf of potential

gross floor area. This will be the first hotel for

Chip EngSeng which planned for

redevelopment of the site to a three-and-a-

half to four-star 450-room hotel with a retail

component. It will likely collaborate with hotel

management companies to offeraccommodation for business travellers to

business hubs in the area and other regional

visitors.

URA release white site at Novena under

reserve list

The commercial site located at the corner of

Thomson and Irrawaddy roads has a

maximum gross floor area of about 301,852

sq ft with 30% reserved for hotel use and the

rest for residential, office, retail and other

complementary commercial uses.
http://www.propwise.sg/secretsofsingaporepropertygurus/


7/14



Can Real Estate Investment Make Me Ultra-Rich?

By Calvin Yeo

(reproduced with permission from

www.investinpassiveincome.com)

I am sure many of you have heard of how

people like Donald Trump and Li Ka Shing

became billionaires through Real Estate. Can

Real Estate do the same for you? How can

you make lots of money through Real Estate?

However, do note that Donald Trump and Li

Ka Shing did not make become ultra-rich

through Real Estate Investment, they made

huge bucks doing Real Estate Development.

SINGAPORE PROPERTY WEEKLY I 28
http://www.investinpassiveincome.com/http://www.investinpassiveincome.com/


8/14



Why Real Estate Development is so

Lucrative

What makes Real Estate Development so

lucrative? In Singapore, developers buy land

at a Price per Square Foot per Plot Ratio,

throw in the costs to calculate breakeven price

and then markup a good 15-25% to determine

theselling price. It is quite transparent as most

land sales are publicly announced and

analysts always state expected selling prices.

So its reasonable to assume a 15-25%

margin, which is still a huge amount for

development sites, e.g. condos can have

Gross Development Value of hundreds of

millions, 25% of $100 million = $25 million.

In Malaysia, property developers make

obscene amounts of money as they normally

buy land really cheap, calculated from a

simple Price per Square Foot basis.

Furthermore, developers leverage on the

banks money and pre-sell the developments

before even starting to build! Now you knowwhy developers are so rich.

Real Estate Development is normally carried

out by famous huge developers like Cheung

Kong Holdings, Capitaland and Trump

Organization etc. Normal people like you and

me probably wouldnt have the resources or

know how to develop properties. You can

choose to be a boutique developer, but since

banks normally do not like to finance land

purchases, deep pockets are necessary to

procure the land. Pre-selling the site can also

be difficult for a small developer without a long

track record, so construction and development

costs may have to be borne upfront.

SINGAPORE PROPERTY WEEKLY I 28


9/14



Developing is also a high risk game, one

which unless you are highly loaded or part of

a Public Company, you have no choice but to

succeed or you will go bust. The wrong

market timing or wrong development strategy

can make a small developer bankrupt

overnight. I know this as I have been part of a

development that went really badly. Just one

wrong move can destroy all the years of hard

work and profits. So I have the utmost respectfor the niche Real Estate developers, but Real

Estate development is really not my cup of

tea, at least not right now.

How About Real Estate Investment?

So now we come to Real Estate Investment,where the strategy is to buy property at a

good value, make Passive Income from rental

and also gain from Capital Appreciation. Since

Real Estate Investors learn to invest at the

right time and not overleverage, a market

downturn is of little concern to a seasoned

Investor. Unlike the Real Estate Developer

who needs to sell as soon as possible to

reduce debt burden, a Real Estate Investor

can patiently wait for the right timing while

collecting rent at the same time.

My Real Estate Investment strategies centre

on Rental, which is really the Passive Income

we are looking for. Some people have made

huge money in very short periods, but I

attribute most of it to be simply luck. Investing

in Real Estate without looking at Rental is not

investing at all; I will talk about Real Estate

Investment vs Real Estate Speculation in a

later post.



10/14



A Real Estate Investor does not need to make

money by selling; he/she makes money by

holding the Property and collecting Rental.

So now that I have set some expectations, Iwould like to reiterate Real Estate

Investment may not make you massively rich

overnight, but it is still one of the strongest

Passive Income generators and has the

potential to keep pace with inflation at least.

Calvin Yeo is the founder of the Making

Passive Income blog.He graduated with a

Business Major in Finance and Accounting

and spent a few years working in an

investment bank. The knowledge from his

studies and working experience serve as agood base for him to grasp the ideas for

passive income generation.

http://www.investinpassiveincome.com/http://www.investinpassiveincome.com/http://www.moneymatters.sg/http://www.investinpassiveincome.com/http://www.investinpassiveincome.com/http://www.investinpassiveincome.com/http://www.investinpassiveincome.com/http://www.investinpassiveincome.com/http://www.buybyeproperty.com/http://www.buybyeproperty.com/


11/14



http://www.buybyeproperty.com/http://www.buybyeproperty.com/http://www.buybyeproperty.com/http://www.buybyeproperty.com/http://www.buybyeproperty.com/


12/14



Non-Landed Residential Resale Property Transactions for the Week of Nov 12 Nov 18

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE SAIL @ MARINA BAY 883 2,488,294 2,819 991 MARINA BAY RESIDENCES 1,066 2,744,950 2 ,576 99

1 PEOPLE'S PARK COMPLEX 1,119 900,000 804 99

2 SPOTTISWOODE PARK 850 790,000 929 99

3 THE REGENCY AT TIONG BAHRU 1,270 1,778,000 1,400 FH

3 TANGLIN VIEW 1,991 2,750,000 1,381 99

3 RIVER PLACE 786 965,000 1,228 99

4 HARBOUR VIEW TOWERS 3,907 3,725,000 953 99

5 VARSITY PARK CONDOMINIUM 1,098 1,270,000 1,157 99

5 MURANO 635 730,000 1,149 FH

5 HERITAGE VIEW 1,206 1,300,000 1,078 99

7 SOUTHBANK 958 1,500,000 1,566 99

8 OXFORD SUITES 678 990,000 1,460 FH

8 KERRISDALE 990 1,040,000 1,050 99

9 PATERSON SUITES 6,663 20,000,000 3,002 FH

9 THE COSMOPOLITAN 1,399 2,714,060 1,940 FH

9 YONG AN PARK 1,765 3,200,000 1,813 FH

9 YONG AN PARK 3,111 5,600,000 1,800 FH

9 THE INSPIRA 926 1,648,000 1,780 FH

9 RESIDENCES AT 338A 1,119 1,848,500 1,651 FH

9 UE SQUARE 1,055 1,400,000 1,327 929

10 FOUR SEASONS PARK 2,874 8,280,000 2,881 FH

10 ORION 1,507 3,400,000 2,256 FH

10 VALLEY PARK 861 1,380,000 1,603 999

10 THE BALMORAL SPRING 1,076 1,650,000 1,533 FH

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

10 ORCHARD BEL AIR 3,229 4,500,000 1,394 9910 THE EQUATORIAL 2,422 3,150,000 1,301 FH

11 PARK INFINIA AT WEE NAM 1,001 1,770,000 1,768 FH

11 NINETEEN SHELFORD ROAD 883 1,235,000 1 ,399 FH

12 TRELLIS TOWERS 549 818,888 1,492 FH

12 THE ARTE 1,625 2,023,125 1,245 FH

12 VETRO 614 718,000 1,170 999

12 DE ROYALE 1,259 1,430,000 1,135 FH

12 SUNVILLE 1,324 1,166,000 881 FH

12 THE ABERDEEN 1,109 950,000 857 FH

14 LE CRESCENDO 1,173 1,300,000 1,108 FH

14 THE SUNNY SPRING 1,012 868,000 858 FH

15 PEBBLE BAY 2,282 3,350,000 1,468 99

15 PEBBLE BAY 1,367 1,950,000 1,426 99

15 ARTHUR 118 1,001 1,410,000 1,409 FH

15 GRAND DUCHESS AT ST PATRICK'S 1,518 1,968,000 1,297 FH

15 ESPIRA SPRING 1,119 1,342,800 1,200 FH

15 SANCTUARY GREEN 1,270 1,440,000 1,134 99

15 WATER PLACE 1,216 1,350,000 1,110 99

15 FERNWOOD TOWERS 1,195 1,320,000 1,105 FH

15 IVORY 657 720,000 1,097 FH

15 CELESTIA 926 960,000 1,037 FH

15 EASTERN LAGOON 3,165 3,000,000 948 FH

15 THE ESPIRA 1,894 1,380,000 728 FH

16 CASA MERAH 1,055 1,150,000 1,090 99


13/14



14/14

Singapore Property Classifieds #18For Sale



Soho@Central, #09- ,soho1/w

loft/635sf/vacant/mgt fee $975/quart/ask$2280psf/avail for rent 5.5$K(neg). CallS.Ganesh 91732881 for viewing!

Off@Central,#19-/3246sf(apx),tnted/rent25k/maint $2,268pm/ask $2950psf neg.View of Marina Bay Sands. Call S.Ganesh91732881 for viewing!

Luma/New/1153sf/3br+balcony/8F/rent

$5,500(low asking)/partial/nego/also availfor sale $2000psf neg/Call S.Ganesh91732881 for viewing!

For Rent
http://www.propwise.sg/advertise

Date post:	06-Apr-2018
Category:	Documents
Upload:	propwisesg
View:	214 times
Download:	0 times

Singapore Property Weekly Issue 28

Documents