singapore property weekly issue 101.pdf
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In this issue:- The Difference Between How Successful and Average Property Investors Think- Property Renting Tip #5: Rental Rate- Singapore Property News This Week- Resale Property Transactions (April 10 – April 16)TRANSCRIPT
Issue 101Copyright © 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTSp2 The Difference Between How Successful
and Average Property Investors Think
p8 Property Renting Tip #5: Rental Rate
p9 Singapore Property News This Week
p14 Resale Property Transactions
(April 10 – April 16)
Welcome to the 101th edition of the Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 2Back to Contents
By guest contributor Gerald Tay
I recently ran across this book titled How Rich
People Think by Steve Siebold. I was
immediately struck by the differences
between the thoughts and actions of the
“World Class” investor and the “Middle Class”
investor.
In the book, Steve listed 21 ways that the
wealthy think differently from average people,
categorizing them as “World Class” and
“Middle Class” thinkers. In this article, I will
call the two investor groups the 99% and the
1%.
The Difference Between How Successful and Average
Property Investors Think
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 3Back to Contents
I‟ll list nine of his 21 Rules here (you can read
his book and educate yourself on the rest)
and briefly explain the similarities on some of
the rules in the arena of property investment.
1. The 99% have a lottery mentality. The
1% have an action mentality.
I hear the 99% say all the time: “Prices will
sure go up. If I can simply invest on some
„expert‟ opinions I‟ll be rich. If my big break
would come in. If I could just win the
lottery….” Until they realize that lottery is a
tax on people who don't know how to do
math, they'll never get it.
The 1% don‟t expect anything to be given to
them. If they want it, they go and get it
themselves. The 99% stupidly play the lottery,
buy stupid investments on hopes of capital
gains, make stupid investment decisions
sitting in front of the TV, and make stupid
excuses.
2. The 99% think the road to riches is
paved with formal education. The 1%
believes in acquiring specific knowledge.
Universities are leftist indoctrination facilities.
And they are full of deluded morons. You
must educate yourself financially. You can
learn anything you want to learn about on
money and investments. Almost everything is
on the internet, for free. If you want to learn
about it the only thing stopping you is you. I
will say it again: Everything you learn in
school might be less useful if you want to be
an entrepreneur/investor. It‟s up to YOU to
learn your craft.
3. The 99% would rather be entertained
than educated. The 1% would rather be
educated than entertained.
Television, magazines, celebrity websites,
sports pages – the mark of the average. If
you can‟t learn or earn from it, burn it.
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 4Back to Contents
I spend my free time learning about global
economics, world history, the history of
money and government, doing intense
property diligence, doing cash flow analysis,
etc.
Rather than looking forward to weekends,
playing Xbox and getting drunk, spend some
hours investing in yourself. Join a course,
read marketing or finance books, learn to
invest, think of how you can provide others
with value.
4. The 99% plays not to lose. The 1%
swings for the fences.
You hear about property cooling measures
and hot media reports. You often hear people
rushing to queue up at property showrooms
and seminars to buy that property because
everyone is doing so and worrying that the
price will go up further, and not doing so will
make one look like a fool.
Who‟s really the fool? Investing in property
because “the price won‟t go down” or
“everyone is buying” are such crappy
reasons. Unless of course, that‟s your only
reason? Then all the best in your investment.
5. The 99% believe the markets are driven
by logic and strategy. The 1% knows
they're driven by emotion and greed.
Personally, I‟ve no time for people who
constantly talk about logic and strategy. I
often hear these people say, “Price will go up
because of limited land and MRT. Tell me
about your strategic buy/hold/sell
recommendations. Tell me specifically or a
range, where prices will be in the next four
years.”
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 5Back to Contents
I like logic. I deal with things logically. But,
logic is only one part of the picture. If you look
at everything logically, you aren‟t looking at
the big picture and I‟ll tell you why. Most
people in the world do not think logically, they
think emotionally. When you speak to them
logically, you are not getting through to them.
But these “I‟m so logical” types always
assume that everyone else also thinks
“logically”.
Logical thinking is only half the puzzle.
6. The 99% live beyond their means. The
1% live below theirs.
Why do the 99% always complain they‟ve no
money to invest?
One of the habits that are common between
all wealthy people is that they live below their
means. This means that they buy a small car
when then can afford a medium sized car,
then buy a medium sized car when they can
afford a big car. They buy a big car when they
can afford a small helicopter, and they buy
the helicopter when they can afford the
private jet. They don‟t own expensive toys to
boast to the world “I‟ve arrived.”
When the 1% makes money, they plough the
profits back to buy more investments that will
put more „passive‟ money into their pockets.
The 99%, after making their profits will first
think what bigger car to drive and which
bigger house to live in.
When you‟re rich, you can have a lot of stuff
and still be rich enough to afford more stuff.
When you‟re middle class or working class,
you cannot. If you live within your means,
you‟d be surprised by how much you
ultimately have to invest when the opportunity
comes to be financially free.
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 6Back to Contents
7. The 99% believe you need money to
make money. The 1% use other people's
money.
I made my first bunch of money using only a
LITTLE of my own money. The 1% makes
money with NO money. If you want it bad
enough, as in you are obsessed with it, you
will get it. Even if you only have $12 to your
name, it makes no difference. It‟s the idea
that makes money, NOT money to make
money!
“I can‟t make money because I don‟t have
any money“. Sounds pretty stupid doesn‟t it?
“I have to make money because I don‟t have
any money” sounds much better.
8. The 99% love to be comfortable. The 1%
find comfort in uncertainty.
The 99% often loves to buy properties from
beautifully decorated property show rooms,
sit in a nice air-con room and be served like a
king by the property salesman.
The 1% love to rough it out in the hot sun,
walk-the-ground, buy old resale properties the
99% will shun, convert them and offer
massive value to tenants with extraordinary
returns.
9. The 99% play it safe with money. The
1% know when to take risks.
What I have found is that when I take certain
risks, the kind of risks that give others
nausea, diarrhoea and anxiety for days, they
tend to be a payoff for me.
Risks come from ignorance and zero control
over the investment. The 99% only know how
to invest in REITS, gamble in stocks, buy off-
plan properties and let others manage their
investments.
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 7Back to Contents
They have a „Follow-the-Leader‟ mentality,
and will invest in something if only someone
is also doing it.
Risks cannot be totally ignored but they can
be managed well. The 1% follow a strict
personal investment system and criteria.
They will only invest when the investments
meet those requirements. And they always
have absolute control over their investments
to manage risks.
Conclusions
If you want to be financially free, you‟ve to get
it yourself. No one gets anything for you or
offers you a chance of becoming rich the free
and easy way. You see, there‟s a difference
between a Hand-out and Help.
A Hand-out requires giving over and over
without the receiver doing anything with what
was given besides using it for their own
leisure.
Help requires giving to someone else but this
time the receiver uses what was given to gain
ground and stand upright on their own two
feet instead of relying on constant future
hand-outs.
So don't seek hand-outs, seek help for good
financial education and you will find it. Once
you do, try your best to make it work.
By guest contributor Gerald Tay, CEO of
CREI Academy Group, who exposes widely-
held property investment myths that have
proven highly ineffective in creating wealth,
and prevent a comfortable retirement for the
ordinary investor.
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 8Back to Contents
Property Renting Tip #5: Rental Rate
Would you rather accept a lower than
expected rental or leave the rental unit vacant
when you are not able to find a Tenant who
can pay your expected rental?
Besides looking at the rental yield, which is
dependent on the purchase price, another
element to help in making such a decision is
to understand the future plan of this rental
property.
Do you plan to sell it in the near future for
capital gains OR do you regard this as a long
term passive income vehicle?
If you are looking for capital gains, you have
to rent the property at an attractive yield to
appeal to the next Buyer.This means that you
may leave the unit vacant until a suitable
Tenant appears.You can do a simple
renovation and/or include nice furniture,
fixtures and fittings to attract a higher rent for
your investment property.
If you do not plan to sell it in the near future,
then having positive cash flow is important
and you would want to rent it out as soon as
possible to have uninterrupted rental
income.You can start arranging with your
Tenant to allow for viewings about two
months prior to the expiry of the Tenancy
Agreement.
By Eileen Tan and Ui Wei Teck, property
investors and authors of Enjoying Mid-Life
Without Crisis. This tip and dozens more are
from their book.
SINGAPORE PROPERTY WEEKLY Issue 101
Singapore Property This Week
Page | 9Back to Contents
Residential
Twin Fountains at Woodlands 2.3 times
subscribed
Twin Fountains, the first EC launched in
Woodlands since 2005, saw a total of 963 e-
applications for its 418 units, making it 2.3
times subscribed. One third of the subscribers
are first-time buyers, the rest are second-time
buyers. Its appeal lies in its location, being
near the upcoming Woodlands South MRT
station and expressways such as the Seletar,
Tampines and upcoming North-South
expressways. Units range from two-bedroom
suites to three- and four-bedroom units. 104
dual- key units are also offered in the
development. There will also be a "Fountain
Villa" for residents to host private functions or
to accomodate visiting guests.
(Source: Business Times)
Freehold Versailles at Paya Lebar up for
collective sale
Versailles, a 55-unit four-storey condominium
freehold condominium located near
Guillemard Road and Paya Lebar Road has
been put up for collective sale. The 53,073 sq
ft site with a 2.1 GPR is asking for $105-110
million or $1,088-$1,133 psf ppr including
development charge. It has a potential GFA of
122,598 sq ft which could yield potentially 148
units and has a maximum height of 24
storeys.
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 10Back to Contents
Any new development on the site is expected
to be popular since there is a general lack of
new residential projects in the area and it is
located near the upcoming Paya Lebar
Central, Paya Lebar MRT station and schools
such as Kong Hwa School, Haig Girls'
School, Tanjong Katong Primary School, and
Chung Cheng High School. The tender will
close at 2.30 pm on Thursday, May 30, 2013.
(Source: Business Times)
Increase in private home price slows in Q1
In Q1 2013, private home prices saw a mere
0.6% increase from Q4 2012, compared to
the 1.8% increase then. This is attributed to
the cooling measures in the residential sector
in January. 5,412 private homes were sold in
the primary market Q1, compared to 4,353
units in Q4. The secondary market, however,
saw a fall in transactions from 3,447 units to
1,871 units in Q1. The overall rental index
saw a 0.8% increase, slightly higher than the
0.7% increase I Q4 2012, while the vacancy
rate fell to 5.2% from 5.4% in Q4. The
number of rental transactions, however, fell
by 33% to 7,676 deals in Q1.
Meanwhile, the URA's All Industrial price
index increased by 4.5% in the same period,
compared to a 0.7% fall earlier. This is
despite the 51.4% fall in transaction volume
of strata industrial units since the proportion
of transactions involving freehold/999-year
leasehold industrial properties which have
higher values more than doubled from 11% in
Q4 2012 to 24% in Q1. The price indexes for
multiple-user warehouse space and multiple-
user factory space also increased by 10.6%
and 2.9% respectively. The price index for
office space also increased by 2.1% in Q1,
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 11Back to Contents
compared to a 0.3% increase in Q4 while the
price index for shop space also increased by
2.1% in Q1 after 0.2% fall in Q4.
(Source: Business Times)
Commercial
Office leasing market expected to bottom
out in 2013
The office leasing market is expected to
bottom out towards the end of 2013 despite
the fall in rents in Q1 and the expectation of
rents to remain flat. Even if there is any
increase, it would be marginal increases of
around 0.5% at the end of the year. There
had been a 2.5% fall in rents for grade A+
office space in the Marina Bay and Raffles
Place area from Q4 2012 to Q1 2013. Rents
in the Shenton Way/Tanjong Pagar and
Robinson Road area are also expected to fall
given the ongoing construction of buildings in
the area. Meanwhile, rents in the suburbs are
expected to remain stable given the
development of new good quality office
buildings and their high pre-committed rates.
(Source: Business Times)
Bright Chambers sold for $46 million
Bright Chambers, a nine-storey eight-unit
commercial development located at 108
Middle Road next to Bugis+ near Bugis MRT
station is said to have been sold via a tender
exercise for $46 million. The development
with a total strata area of 34,972 sq ft sits on
a 5,263 sq ft site zoned for commercial use
which has a balance lease term of about 60
years. It can be refurbished and further
strata-subdivided for sale or retained by the
new owner for rental income.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 12Back to Contents
65 retail units at 99-year The Midtown at
Hougang sold at preview
60% of 65 of the 107 retail units at The
Midtown, a 12-storey mixed-development in
Hougang, have been sold. Of the retail units,
there are 55 F&B units, 51 shop units and a
supermarket space. The F&B units (721-969
sq ft) are sold at an average of $4,039 psf, or
between $3,588 psf and $5,013 psf while the
shop units (258-893 sq ft) at an average of
$5,800 psf or between $4,687 psf and $6,737
psf.
In addition, 40 of the 160 residential units at
Midtown Residences have also been sold at
an average price of $1,400 psf. Unit sizes
range from 441 sq ft for a one-bedroom
apartment with a study to 1,572 sq ft for a
penthouse. Prices start from $660,000 for a
one-bedroom unit on a low level to $2.1
million for a four-bedroom penthouse.
(Source: Business Times)
Vacancy rate of office space falls in Q1
The net absorption of office space increased
to 269,098 sq ft in Q1, up from 183,000 sq ft
in Q4 last year. This resulted in an office
vacancy rate stood at 9.2%, compared to
9.4% in Q4 2012. There has also been an
increase in non-CBD office rents while the
gross average monthly rent for Grade A office
space fell by three cents to $9.55 psf in Q1
this year while the gross effective monthly
rent for prime Grade A offices in Raffles Place
remained at $8.90 psf.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 13Back to Contents
30-year Tuas Bay Walk and Buroh
Crescent industrial sites awarded to
highest bidders
The first is the 0.58-hectare site zoned for
Business 2 (Food only) use located at Tuas
Bay Walk plot. The top bid out of the four the
site attracted was $8.988 million or $84.57 psf
ppr from Yee Lee Development Pte Ltd. The
second is the 1.77-hectare site at Buroh
Crescent in Jurong which attracted a total of
five bids. The top bidder OKH Holdings Pte
Ltd bid $39.017 million or S$82 psf ppr for the
site zoned for Business 2 use.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 101
Page | 14Back to Contents
Non-Landed Residential Resale Property Transactions for the Week of Apr 10 – Apr 16
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price ($
psf)Tenure
1 MARINA BAY RESIDENCES 710 1,750,000 2,463 99
1 EMERALD GARDEN 980 1,810,000 1,848 999
3 THE ANCHORAGE 1,173 1,500,000 1,278 FH
4 REFLECTIONS AT KEPPEL BAY 1,442 3,200,000 2,219 99
4 CARIBBEAN AT KEPPEL BAY 883 1,550,000 1,756 99
4 REFLECTIONS AT KEPPEL BAY 1,076 1,850,000 1,719 99
5 BLUE HORIZON 1,163 1,328,000 1,142 99
5 WESTCOVE CONDOMINIUM 1,206 1,155,000 958 99
5 THE PARC CONDOMINIUM 1,927 1,710,000 888 FH
8 CITIGATE RESIDENCE 614 975,000 1,589 FH
8 KERRISDALE 1,927 1,935,000 1,004 99
9 THE PIER AT ROBERTSON 743 1,475,000 1,986 FH
9 ASPEN HEIGHTS 1,130 1,820,000 1,610 999
10 ALLSWORTH PARK 1,959 3,080,000 1,572 999
10 ASTRID MEADOWS 1,023 1,570,000 1,535 FH
10 VILLA AZURA 1,356 1,810,000 1,335 FH
11 RESIDENCES @ EVELYN 2,250 4,130,000 1,836 FH
12 TREVISTA 1,130 1,708,000 1,511 99
12 THE ABERDEEN 1,399 1,620,000 1,158 FH
14 LE CRESCENDO 947 1,180,000 1,246 FH
14 NICOLE GREEN 1,238 1,480,000 1,196 FH
14 MERA EAST 1,033 1,180,000 1,142 FH
14 SIMSVILLE 980 980,000 1,000 99
14 ASTON MANSIONS 1,012 888,000 878 99
15 AALTO 1,550 3,472,000 2,240 FH
15 THE BELVEDERE 2,583 4,370,000 1,692 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price ($
psf)Tenure
15 ARTHUR 118 990 1,450,350 1,465 FH
15 SERAYA 9 850 1,200,000 1,411 FH
15 WATER PLACE 1,281 1,720,000 1,343 99
15 SANTA FE MANSIONS 1,163 1,500,000 1,290 FH
16 LAGUNA 88 1,119 1,180,000 1,054 99
17 CELADON VIEW 1,442 812,000 563 999
18 RIS GRANDEUR 1,292 1,322,000 1,023 FH
18 RIS GRANDEUR 3,111 1,980,000 636 FH
19 SUNGLADE 1,109 1,130,000 1,019 99
20 COUNTRY ESQUIRE 1,270 1,610,000 1,268 FH
20 KINGSGROVE 1,615 1,460,000 904 FH
21 THE RAINTREE 926 1,088,000 1,175 99
21 HILLVIEW GREEN 1,593 1,675,000 1,051 999
21 PINE GROVE 1,755 1,580,000 901 99
23 HILLVIEW HEIGHTS 958 1,100,000 1,148 FH
23 MERAWOODS 1,345 1,400,000 1,041 999
23 MONTROSA 861 890,000 1,034 999
23 HILLBROOKS 1,238 1,260,000 1,018 FH
23 MERALODGE 1,819 1,650,000 907 FH
23 HILLTOP GROVE 1,184 980,000 828 99
23 PHOENIX HEIGHTS 1,335 792,888 594 99
26 SEASONS PARK 1,109 945,000 852 99
27 ORCHID PARK CONDOMINIUM 1,733 1,350,000 779 99
NOTE: This data only covers non-landed residential resale property
transactions with caveats lodged with the Singapore Land
Authority. Typically, caveats are lodged at least 2-3 weeks after a
purchaser signs an OTP, hence the lagged nature of the data.