singapore property weekly issue 102

7/30/2019 Singapore Property Weekly Issue 102

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Issue 102Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 Building a High Return UK Property Portfolio

p8 Property Renting Tip #6: Who are

your Tenants?

p9 Singapore Property News This Week

p14 Resale Property Transactions

(April 17 April 23)

Welcome to the 102th edition of the

Singapore Property Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
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SINGAPORE PROPERTY WEEKLY Issue 102

Page | 2Back to Contents

With the high property prices in Singapore,

many investors are looking overseas to find

attractive investment opportunities. In this

article we interview Matthew Snedden, one of

the United Kingdoms most recognized realestate experts and a speaker at the National

Achievers Congress 2013, on both his

failures and successes in building his

property portfolio, and how investors can

build a high return UK property portfolio with

little capital.

Building a High Return UK Property Portfolio
http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/


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Could you share your stories of how you

began your property investing journey and

achieved the success that you have

today?

My journey began when I became

desperately unhappy with the job that I was

doing. I had spent 12 years as a property

manager and felt that although the wages

were not bad I was no longer enjoying it.

I attended all the Tigrent courses and met andbecame good friends with a lot of the

speakers and mentors that the company had.

This was the major breaking point for me -

these people helped me gain the tools

required and the education to help me

overcome the fears I had built up.

Once I had purchased my first property, I saw

this as a massive sign that I was going to do

this as big as I could. Over the years as Ive

changed my strategy to suit my style, I gained

the confidence to do larger scale

developments and refurbishments. I now love

what I do this is a huge driver for me!

What does your property portfolio look

like today? What steps did you take to

build up that portfolio?

The property portfolio I have built over time is

far greater than I ever expected having. I

have bought and sold well over 100properties in the past 10 years. Throughout

this process, I bought a number of buy to let

properties which range from two bedroom

houses to six bedroom houses, and one to

three bedroom flats as well. The majority of

my property portfolio held to today are from

the developments that I have taken on in

recent years (converting large buildings into

one, two or three bedroom flats/apartments).


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I have found this method better for my ROI

(Return On Investment) and also for the ease

of property management.

People looking to generate wealth from

the markets are faced with a wide range of

options that include trading and investing

in property, stocks, options, futures and

foreign exchange. Which of them do you

think would be more suitable for a

beginner looking to build his or her

wealth?

The beauty of property for me is that you can

add value to it and it can be seen. I can drive

past it and know that I have turned something

that was completely run down and neglected,

into a place that somebody would love to livein. This gives me massive satisfaction and will

continue to drive me. For this reason, a

beginner, with the right leadership, can make

a good return on their investment much more

simply in property in my opinion.

What property types (e.g. residential,

commercial etc) do you recommend

investing in and why?

For a beginner, residential property is where

most investors will start and perhaps even

finish. There are a few factors I would take

into consideration with this. Firstly, most

people understand residential property

because they grew up in one. We understandwhat people want to live in. Secondly, price is

a consideration. While not always the case,

commercial property is typically seen as a

more expensive and more for the

experienced investors. Thirdly, lenders look at

investors in the commercial world as moreexperienced. The lending criteria are defined

differently to residential and this may

persuade the investor to stick with residential

rather than commercial.


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I believe purchasing residential property is a

much easier and simpler strategy than

commercial. However, commercial property

has scope for higher returns.

Which global property markets do you

think have the greatest profit potential for

an investor and why? Which markets do

you think investors should avoid?

I personally have purchased property in both

the UK and Australia. I have gone back andforth to both countries because I believe in

both markets. Australia still has strong capital

growth, whilst UK has very strong rental

demand and high rents, thus strong cash

flow. I believe in the UK market for people

who are looking to build a sizeable portfoliowhich can generate a large cash flow base. I

look into other countries that have good cash

flow and feel that the advantage the UK has

over the others is that its population size is

large relative to its geographic size. This

allows for the market to be strong even when

the economic outlook seems bleak.

What pitfalls should a global property

investor be wary of?

As an investor, no matter what market,

country or entity they are looking to invest in,

they need to understand the pitfalls!

An investor needs to be aware of the areas

they purchase in, types of finance available to

them for their strategy, and understanding the

demand level for either sale or rent.

Understanding the employment status of an

area will determine types of tenants or buyers

as well as the potential sale prices that can

be achieved. Looking at the average income

in the area will determine peoples ability to

get mortgages.


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How much capital do you need to have to

build a property portfolio and what sort of

rental yield and capital gains can you get?

Could you share with us some of your

best and worst property investments?

This is a really difficult question to answer

however London typically achieves a yield of

say 4% to 8%, whereas the North of the

country typically achieves 10% plus.

Understanding the strategy is the key. My

main aim is to purchase property, then add

value to it and either sell or refinance at a

higher level to pull out a large part of the

capital I originally put in. To build a sizable

portfolio very fast, cash is required however

this can be borrowed for the short term. There

are many lenders out there who offer this and

so the main point here is to find a property

that fits well with the lenders. Once this has

been identified, lenders are more than happy

to lend to you.

My worst property investments were the ones

I did based on what everybody else does,

when I ignored the rules and skills I learnt and

bought property based on a sales pitch

delivered by a new build company. I put my

money in the deal, the market dropped, and

the rents did not achieve what was sold to

me.

The best ones are the rest... buy belowmarket value, change the use and add value

to achieve high ROI and yields.

What are the most important lessons

youve learnt about living a happy,

successful and meaningful life?

For me, living a happy, successful, and

meaningful life means understanding who you

are, what gifts you have and how that fits in

with rest of the world.

SINGAPORE PROPERTY WEEKLY I 102


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Success is to me is measured by my overall

happiness. This can be measured through

wealth, ability to spend time with love ones,

and how much you are living life on your own

terms. I often think how I would do thingsdifferently if given a second chance. This

allows me to make better decisions the first

time round.

Matthew Snedden will be going in depth on

the strategies he has used to build his UKproperty portfolio with little capital and add

value to achieve high returns at the National

Achievers Congress 2013.
http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://www.moneymatters.sg/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/http://aktive.com.sg/nac2013/


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Singapore Property This Week


Residential

March sees 0.9% increase in non-landed

private home prices

According to NUSs overall Singapore

Residential Price Index (SRPI), the prices of

completed non-landed private homesexcluding ECs saw a 0.9% rise in March,

compared to a 1.2% fall in February. This was

largely due to the Central Region sub-index

(excluding small units), which saw a 2.2%

increase in March, after a 3.7% fall in

February. Nevertheless, there is still a largesupply of unsold units in the Central Region

(both completed and under-construction). The

Non-Central Region sub-index (excluding

small units) remained stable with a slight0.1% decline in March, after a 0.1% gain in

February. Meanwhile, the sub-index for

prices of completed shoebox units (up to 506

sq ft) islandwide saw a 0.7% gain in March,

after a 0.9% fall in February.

(Source: Business Times)

Non-landed private home owners made

$107 million profit from resales

According to OrangeTee, non-landed private

home owners made a total of $107 million in

gross profit from quick resales in the period of

Q1 2012 to Q1 2013. This is attributed to the

high property prices.



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In addition, it was also noted that only newly

completed homes that were resold after

receiving the TOP yielded good profits. There

were 348 transactions which were sold within

one quarter from which the TOP wasobtained, of which only one was unprofitable.

Each unit offered a 33% average gain in

profit, with the most profitable being units in

the OCR, which offered a 41% gain,

compared to 31% and 25% gains for the RCR

and CCR, respectively. Generally, shoeboxunits (no more than 50 sq m) were less

profitable than non-shoebox units in all

regions, with an average profitability per unit

of $132,000 or 25%. The highest average

gross profitability of 43% per unit in the period

studied was in Q3 2012; this has fallen since

given the cooling measures.


30% of 99-year Eden Residences Capitol

sold

12 of the 39 residential units at Eden

Residences Capitol, the residential

component of the mixed development at the

junction of Stamford and North Bridge roads,

have been sold at an average of $3,000 psf.

Unit sizes in the residential component range

from 2,100 sq ft to over 6,500 sq ft. The

project also features an 800-seat Capitol

Theatre which will offer both movies and

performing arts, Capitol Building and

Stamford House, a four-level retail

component and 157-room The Patina, Capitol

Singapore hotel. Rooms in the hotel will

range from 45 to 65 sq m.(Source: Business Times)



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30 units of 103-year leasehold Ferra

launched for sale

30 units of the 104-unit 22-storey Ferra, a

luxury condominium development at 1 LeonieHill have been launched for sale, at prices

from $2.3 million for a 732 sq ft unit, or

$3,160 psf. Units in the development ranges

from 732 to 893 sq ft, in addition to two 2,013

sq ft penthouses which have yet to be

launched. Buyers can customise their unitlayout or choose from a selection of pre-

designed layouts. It is expected to draw some

interest given the smaller and therefore more

affordable units, its design and the small

number of units released.


Commercial

Three 22-year industrial sites at Tuas

South St 6launched for sale

The three sites include a 0.45 ha corner plot

(Plot 1) and two other 0.30 ha plots. All three

sires have a maximum GPR of 1.0 and are

zoned for Business 2 development. They will

likely attract industrialists, given the zoning,

the short lease term and the size of the plots.

The first plot is expected to attract seven to

11 bidders with bids of $75-$90 psf ppr while

the other two plots are likely to attract five to

nine bidders with bids of $70-$80 psf ppr. The

tender for the sites will close on June 11 at

11.00am.




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Plans for Tanjong Pagar Centre revealed

Plans for Tanjong Pagar Centre, an

integrated mixed-use development located

above the Tanjong Pagar MRT station, have

been released by its developer, GuocoLand.

It will consist of Guoco Tower, a 38-storey

Grade A office block, six levels of retail and

F&B space, a luxury business hotel, a

sheltered event space in Tanjong Pagar City

Park and residential units in a 1.7 million sq ft

floor space. The offices block will offer large

floor plate and column-free spaces of 25,000-

29,000 sq ft while the 100,000 sq ft retail mall

will offer largely F&B outlets. There will alsobe 200 one- to four-bedroom units and

penthouses in TP180, the residential

component.


http://aktive.com.sg/nac2013/


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Non-Landed Residential Resale Property Transactions for the Week of Apr 17 Apr 23

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE CLIFT 807 2,119,000 2,625 99

3 DOMAIN 21 560 910,000 1,626 99

3 RIVER PLACE 1,033 1,480,000 1,432 99

3 PEARL BANK APARTMENT 1,755 1,535,000 875 99

3 PEARL BANK APARTMENT 1,324 1,100,000 831 99

4 THE COAST AT SENTOSA COVE 2,024 3,620,000 1,789 99

5 HERITAGE VIEW 1,195 1,450,000 1,214 99

5 BUONA VISTA GARDENS 1,572 1,505,000 958 FH

7 THE BENCOOLEN 958 1,456,160 1,520 99

7 THE PLAZA 807 1,080,000 1,338 99

9 PATERSON SUITES 2,196 5,700,000 2,596 FH

9 GRANGE INFINITE 2,573 6,200,000 2,410 FH

9 GRANGE INFINITE 2,702 6,388,000 2,364 FH

9 THE OXLEY 549 1,190,000 2,168 FH

9 THE COSMOPOLITAN 1,324 2,750,000 2,077 FH

9 MAKEWAY VIEW 1,453 2,860,000 1,968 FH

9 THE IMPERIAL 2,024 3,870,000 1,912 FH

9 WILKIE STUDIO 1,227 1,570,000 1,279 FH

10 ARDMORE PARK 2,885 8,398,000 2,911 FH

10 MILL POINT 527 1,010,000 1,915 999

10 MILL POINT 538 1,010,000 1,877 999

10 THE LEVELZ 786 1,336,200 1,700 FH

10 DUCHESS CREST 4,295 4,750,000 1,106 99

11 STRATA 840 1,400,000 1,667 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

11 THE LINC 1,281 2,050,000 1,600 FH

12 GALLERY FIFTEEN 1,442 1,620,000 1,123 FH

12 OLEANDER TOWERS 1,464 1,488,000 1,016 99

14 THE WATERINA 1,302 1,750,000 1,344 FH

14 ESCADA VIEW 775 800,000 1,032 FH

14 CASA SARINA 1,109 1,100,000 992 FH

14 SIMS RESIDENCES 1,356 1,100,000 811 99

15 THE SEA VIEW 1,518 2,428,800 1,600 FH

15 AMBER RESIDENCES 1,249 1,908,888 1,529 FH

15 ESTIQUE 603 888,000 1,473 FH

15 THE MAKENA 1,518 2,200,000 1,450 FH

15 THE WATERSIDE 2,142 3,100,000 1,447 FH

15 HAIG COURT 1,550 2,030,000 1,310 FH

15 THE MEDLEY 1,302 1,470,000 1,129 FH

16 THE BAYSHORE 1,259 1,249,000 992 99

16 BAYSHORE PARK 3,477 3,408,000 980 99

16 EAST MEADOWS 1,195 1,168,000 978 99

16 THE CLEARWATER 1,378 1,310,000 951 99

16 TANAMERA CREST 1,647 1,400,000 850 99

17 DAHLIA PARK CONDOMINIUM 1,281 1,180,000 921 FH

17 AZALEA PARK CONDOMINIUM 1,679 1,500,000 893 999

19 SUNGLADE 1,141 1,370,000 1,201 99

19 CHILTERN PARK 915 1,050,000 1,148 99

19 HILLSIDE MANSIONS 1,141 1,150,000 1,008 FH



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NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after apurchaser signs an OTP, hence the lagged nature of the data.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

19 CENTRAL VIEW 1,216 1,095,000 900 99

19 CHARLTON CORNER 1,044 910,000 872 FH

20 THE GARDENS AT BISHAN 1,582 1,700,000 1,074 99

20 LAKEVIEW ESTATE 1,615 1,396,000 865 99

21 JARDIN 1,701 3,040,000 1,787 FH21 GARDENVISTA 872 1,100,000 1,262 99

21 GARDENVISTA 872 1,030,000 1,181 99

21 SUMMERHILL 1,604 1,882,000 1,173 FH

21 SIGNATURE PARK 1,399 1,520,000 1,086 FH

21 SOUTHAVEN II 818 870,000 1,063 999

21 BUKIT REGENCY 1,055 1,050,000 995 FH

21 HIGH OAK CONDOMINIUM 1,658 1 ,590,000 959 99

21 SHERWOOD TOWER 1,421 1,198,000 843 99

22 IVORY HEIGHTS 1,668 1,200,000 719 10023 MERAWOODS 1,345 1,330,000 988 999

23 REGENT GROVE 1,163 935,000 804 99

23 THE WARREN 1,195 948,000 793 99

25 CASABLANCA 1,119 980,000 875 99

26 CASTLE GREEN 1,173 980,000 835 99

27 YISHUN EMERALD 1,023 835,000 817 99

28 GRANDE VISTA 1,238 1,218,000 984 999

28 GRANDE VISTA 1,238 1,180,000 953 999
http://propertymarketinsights.com/

singapore property weekly issue 102

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