singapore property weekly issue 77

7/30/2019 Singapore Property Weekly Issue 77

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Issue 77Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 The Difference Between How the

Rich and Amateurs Invest

p8 Singapore Property News This Week

p12 Resale Property Transactions

(October 24 October 30)

Welcome to the 77th edition

of the Singapore Property

Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
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SINGAPORE PROPERTY WEEKLY Issue 77

Page | 2Back to Contents

The Difference Between How the Rich and Amateurs Invest

By guest contributor Gerald Tay

Years ago before the passing of my late multi-

millionaire grandfather, I had the fortune of

frequent conversations and debate on

investment and wealth with him. Although I

missed him after his passing, his simple

teachings had taught me many vital lessons

on wealth.

Is it important to know your Net Worth?

Me: Do you know your Net Worth and how

much are you worth today?

Grandfather: Idont know and I dont care.Me: I dont understand. Why dont you care

and want to know your Net Worth? Isnt that

what defines you and makes you so rich

today?


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Grandfather: Young man, how do you grow a

healthy apple tree that can produce many

uicy apples foryou?

How to grow an apple tree

I know my grandfather will always give an

anecdote to his teachings.

Me: You need to first plant the seed and

watch it grow.

Grandfather: For it to grow, what elements

must come first?

Me:A constant supply of water and fertiliser.

Grandfather: Correct. For that apple tree to

grow up and produce juicy apples, it needs

enough water, sunlight, and food, not to

mention patience and love.

Me: I still dont understand.

Grandfather: Ifyou only focus on growing the

tree to produce apples for you without

ensuring it has enough water, sunlight, food,

patience and love, do you think the tree is

able to produce that many juicy apples?

Me: No, definitely not.

Grandfather: Exactly. And its the same with

wealth creation. If you constantly feed your

assets with enough cash flow and patience,

your wealth with naturally grow.

Me: Now I understand.

The importance of cash flow

Grandfather: Besides patience and love, the

other vital elements to grow your assets

healthily so it can produce enough passive

income for you, is to ensure a constant supplyof enough cash flow. Cash flow is the food,

sunlight and water. Net worth is the number of

apples you can get from it.


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Me: So, if I focus on ensuring enough food,

sunlight and water reaches the tree, the juicy

apples will come naturally. If I focus on

bringing enough cash flow for my assets, my

wealth and net worth will grow eventually.Grandfather: The reason why I focus on

cash flow and never net worth is because

your net worth doesnt tell you anything, just

like the number of apples may not necessarily

tell you how healthy your tree is. Its the cash

flow that will determine your financial wealthand health, and as long as youve enough of

that coming in every month, youre financially

wealth and healthy.

Me: You mean you may have a high net

worth, but you may not be financially wealthy

orhealthy?

The rich invest on cash flow, the amateurs

on net worth

Grandfather: Yes. Thats why the rich always

invest on cash flow, the amateurs on net

worth.

Me: Gamblers invest on capital gains. The

rich invest on cash flow.

Grandfather: Most of these amateurs think

theyre smart to buy and sell on capital gains.

Its called stupidity not investment smarts.

They ignore good cash flow, and invest on

capital gains because they believe their

assets will always go up in value. They want

to be like the rich and hope to join the rich

club. And they would just simply own any

investment like a property so it can increase

or add to their net worth, and they can feel

richer.

Me: So its not net worth that determinesyour wealth. Its cash flow. Thats why I

remember you said before you never care

about how much your home is worth and how

much it can sell, because even though its


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sitting on a valuable 22,000 square feet of

land, it doesnt produce any cash flow for

you.

Grandfather: Exactly! And its not just cash

flow. Your cash flow, like food and water, must

be more than sufficient for the tree to grow

healthily. If you give it the bare minimum, your

tree may not survive. And if you cut the water

and food completely, the tree will soon wither

and die.

Me: Your net worth will always fluctuate

according to the surroundings (Economy). But

with enough cash flow, your wealth (Tree) will

continue to grow healthily and your assets

(Apples) will also increase or least be safe no

matter what happens. Focus on cash flow,never net worth.

Grandfather: Thats the reason why I never

care and dont want to know what my net

worth is. Its the quality of cash flow I am

getting in every month from my businesses,

properties and other assets that define my

wealth today, not the quantity of those assets

I own.

Invest on Quality, Not Quantity. Invest on

Cash Flow, Not Net Worth

It is the quality of your income producing

assets that will define your wealth, never the

quantity.As an ordinary investor, if you want to be truly

wealthy through property or any other

investments, it is absolutely vital to focus on

buying immediate cash flow, rather than

capital gains (net worth). It sounds too

tempting to buy on capital gains, knowingyour neighbour or your friend just happened

to make a $200,000 profit by selling his or her

property.


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I know many property investors who boast

about how many properties they own and

how many fancy new launches they have

bought recently. The big question here is,

Whats the qualityof those investments?

Taking a Smart Risk versus a Stupid Risk

Lady luck may be smiling on you, for the first

or even second time you buy on capital gains,

but let us be honest. How many times can

lady luck be smiling on you for the next fewdecades of your life investing on capital

gains?

All investments carry some risk, but you do

have a choice between choosing a smart or a

stupid risk. You do not ride a bicycle on the

road without protective gear, and neitherwould you drive your car without an

insurance, or race your Ferrari at 180

kilometers per hour and beat the red light on

Bugis Street in the middle of the night,

thinking there will be no cars. Maybe the first

few times, you can get lucky, but

unfortunately the guy who did just that chose

a stupid risk, and this time round, it cost him

his life.

By guest contributor Gerald Tay, CEO and

Chief Trainer at CREi Academy Group, and

creator of The 18 Irrefutable Laws of

PropertyInvestments.

SINGAPORE PROPERTY WEEKLY I 77
http://www.crei-academy.com/http://propertymarketinsights.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/


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SINGAPORE PROPERTY WEEKLY I 77
http://www.buybyeproperty.com/


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Singapore Property This Week


Residential

99-year Sengkang EC sites draws $135mtop bid

The 151,779.6-sq-ft site located at the

unction of Sengkang West Way and Fernvale

Link attracted a total of 6 bids, with the top bid

of $135 million or $296.50 psf ppr from CITY

Developments' (CDL) unit VerspringProperties. The site has a 455,338-sq-ft GFA

that can yield 420 units though CDL plans to

build a 380-unit high-rise EC development.

The site is well located, being a five-minute

walk away from the Layar LRT Station, and

within walking distance from primary andsecondary schools, the Sengkang Riverside

Park, Punggol Reservoir and Sengkang

Sports Complex. It is expected to have a

break-even price and average selling price of

$560-$610 psf and $670-750 psf respectively.

(Source: Business Times)

Resale prices of non-landed private homes

rise in first 10 months of 2012

The resale prices of non-landed private

homes registered a 7.3% increase to $1,133

psf from January to October 2012, compared

to $1,056 psf in the same period last year,

despite the 10.2% fall in transaction volume.

This could be due to fewer launches in Q3,

which led to increased demand for resale

homes. The largest increase came from the

outside central region (OCR), which saw an

8.7% increase to $902 psf, followed by the7.7% increase to $1,152 psf in the rest of

central region (RCR) and the 3.2% increase to

$1,718 psf in the core central region (CCR).



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The narrower price difference between

properties in the CCR and the OCR is

attributed to the faster rate of increase of

average price of private homes in the OCR

over the CCR and the greater impact ofABSD on properties in the CCR.

Meanwhile, the 10.2% fall in resale

transaction volumes is attributed to the

10,559 properties sold in the primary market

in the first 10 months of 2012 as well as the

SSD. This trend is expected to continue withlarge number of units released in new

launches.

In October, non-landed private residential

units registered a 4.1% increase in resale

prices to $1,209 psf from $1,159 psf in Q3

while the average unit rental registered a

mere 0.5% increase from $3.87 psf in Q3 to

$3.89. The largest rental increase of 2% in

Q3 was from the OCR, followed by a 0.9%

increase in the CCR; RCR registered a 2.2%

fall. This led to a fall in overall gross rental

yield from 4% in Q3 to 3.87% in October.


CommercialFreehold mixed-use redevelopment site at

Balestier up for sale

The 21,219 sq ft site at 520 Balestier Road is

asking for $68-75 million or $1,088-$1,198 psf

ppr including an estimated development

charge based on its 3.0 GPR and 63,657 sq ft

GFA. Zoned for commercial and residential

use, a maximum of 40% of the GFA can be

for commercial use. It could potentially be

amalgamated with a 750 sq ft adjoining state

land, which would increase the site area and

potential GFA to around 22,000 sq ft and

66,000 sq ft, subject to approval from relevant

authorities. If approval is granted, it would

bring the land rate to a lower $1,030-1,130

psf ppr.



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Buyers could potentially strata-subdivide the

commercial component of the new

development and sell the units or retain them

for investment. The tender closes on Dec 13

at 3pm.Also up for sale by tender is a freehold

residential redevelopment site at 241 Pasir

Panjang Road. The asking price is $928 to

$1,005 psf based on its 1.4 GPR on the

12,933 sq ft land area. The site can

potentially be redeveloped into a bungalow,strata landed or strata residential units. It is

expected to be fairly popular given its

proximity to National University of Singapore,

Mapletree Business City, Science Parks 1

and 2, Insead, Singapore Institute of

Management and Singapore Polytechnic, aswell as the business parks at Jurong, which is

a short drive away. The tender closes on Dec

5 at 3 pm.


19 freehold Crown Centre retail units up

for sale

The units located on the ground floor of

Crown Centre in Bukit Timah are asking for

$32 million, or $4,131 psf of the 7,746 sq fttotal strata area which constitutes 39.7% of

the share value of the building. While the

current average rent being achieved for the

fully tenanted units is only a 1.8% net yield,

there is a potential for increasing the yield to

4% if the buyer spruced it up, allowing it toattain monthly rents of about $15-19 psf like

ground-floor units nearby Coronation

Shopping Plaza. The three-storey mixed use

Crown Centre has frontage along Queen's,

Bukit Timah and King's roads, and includes

21 retail units on its second level and sixapartments on the third level in addition to the

19 units being put up for sale. It also offers 22

carpark lots at the basement.



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Crown Centre sits on a 18,081 sq ft site

zoned for commercial and residential use,

with a 3.0 plot ratio. It is well located, being in

District 10 and near schools such as Hwa

Chong Institution, Nanyang Girls' High,National Junior College and St Margaret's

Secondary and the Botanic Gardens and the

upcoming Tan Kah Kee (Downtown Line)

MRT stations, and there is strong demand for

space for cafes, banks and supermarkets in

the area. The expression of interest exercisecloses on Nov 28.


Ascendas Fusion 5 breaks ground for

Fusionopolis Phase 5

The 75:25 venture between Ascendas Land

Pte Ltd and Mitsui & Co Ltd broke ground for

its $370 million Fusionopolis Phase 5 project,

development in Fusionopolis in one-north.

The development with a total of 67,490 sq m

GFA will consist of a 17-storey building with

59,300 sq m of business space, a five-storey

office block with 2,690 sq m of " work officehome office (Woho) concept" units, and 5,500

sq m of retail space. Each Woho units range

between 32 and 96 sq m in size, and provide

a live-in component for two to six employees

comfortably. In addition, tenants can

customise and configure these spaces.Energy-efficiency and environmentally

friendly features include water-efficient

sanitary ware and fittings, efficient light

fittings, an efficient chiller plant, wide open

green spaces and an observation deck

among several others.




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Non-Landed Residential Resale Property Transactions for the Week of Oct 24 Oct 30

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 MARINA BAY RESIDENCES 1,130 2,688,000 2,378 991 THE SAIL @ MARINA BAY 592 1,325,000 2 ,238 99

1 THE SAIL @ MARINA BAY 678 1,388,000 2 ,047 99

2 LUMIERE 560 980,000 1,751 99

3 TANGLIN VIEW 872 1,360,000 1,560 99

3 ALESSANDREA 1,098 1,408,888 1,283 FH

3 ALESSANDREA 1,098 1,390,000 1,266 FH

4 MARINA COLLECTION 2,099 5,982,150 2,850 99

4 CARIBBEAN AT KEPPEL BAY 1,227 1,900,000 1 ,548 99

5 BOTANNIA 829 1,100,000 1,327 956

5 THE PARC CONDOMINIUM 1,302 1,673,070 1,285 FH

5 HERITAGE VIEW 1,507 1,680,000 1,115 99

5 BLUE HORIZON 958 1,050,000 1,096 99

5 DOVER PARKVIEW 1,249 1,290,000 1,033 99

5 VARSITY PARK CONDOMINIUM 2,153 2,150,000 999 99

5 FABER CREST 1,561 1,280,000 820 99

7 BOON SING BUILDING 1,119 1,618,000 1,445 999

8 CITY SQUARE RESIDENCES 840 1,410,000 1,679 FH

8 R66 APARTMENTS 538 740,000 1,375 FH

8 VOGX 883 1,068,000 1,210 FH

8 SOHO @ FARRER 958 1,010,000 1,054 FH

8 KENTISH GREEN 1,302 1,250,000 960 99

9 RIVERGATE 1,938 4,457,400 2,301 FH

9 CAIRNHILL RESIDENCES 1,173 2,610,000 2,225 FH

9 CASA CAIRNHILL 1,572 2,900,000 1,845 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

9 RESIDENCES AT 338A 1,313 2,160,000 1,645 FH9 PARC EMILY 1,098 1,778,760 1,620 FH

9 EURO-ASIA COURT 1,066 1,680,000 1,577 FH

9 ASPEN HEIGHTS 1,324 2,070,000 1,563 999

9 THE MORNINGSIDE 2,799 4,300,000 1,536 FH

10 ARDMORE PARK 2,885 9,100,000 3,155 FH

10 FOUR SEASONS PARK 3,821 10,650,000 2,787 FH

10 CUSCADEN RESIDENCES 1,442 3,120,000 2,163 FH

10 REGENCY PARK 3,649 7,228,000 1,981 FH

10 TANGLIN PARK 1,335 2,630,000 1,970 FH

10 BELMOND GREEN 2,411 3,850,000 1,597 FH

10 THE LEGEND 1,442 2,300,000 1,595 FH

10 THE CAPRI 689 1,080,000 1,568 FH

10 LEEDON 2 1,109 1,646,888 1,485 FH

10 VALLEY PARK 1,658 2,320,000 1,400 999

10 TANGLIN REGENCY 1,410 1,940,000 1,376 99

10 THE SIERRA 1,033 1,360,000 1,316 947

11 NEWTON ONE 1,808 3,430,000 1,897 FH

11 NEWTON ONE 1,216 2,249,600 1,849 FH

11 PARK INFINIA AT WEE NAM 1,442 2,620,000 1,816 FH

11 PARK INFINIA AT WEE NAM 1,442 2,600,000 1,803 FH

11 THE SPINNAKER 1,345 1,730,000 1,286 FH

11 MANDALE HEIGHTS 1,453 1,760,000 1,211 FH

12 CASA FORTUNA 710 935,000 1,316 FH

12 MAR THOMA MANSIONS 1,453 1,800,000 1,239 999



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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

12 TRELLIS TOWERS 1,141 1,410,000 1,236 FH

12 THE ABERDEEN 1,302 1,095,700 841 FH

14 CASSIA VIEW 1,206 1,320,000 1,095 FH

14 STARVILLE 1,238 1,100,000 889 FH

14 WING FONG COURT 1,163 875,000 753 FH

15 ONE FORT 1,227 1,680,000 1,369 FH

15 THE ESTA 1,410 1,903,500 1,350 FH

15 AXIS @ SIGLAP 915 1,170,000 1,279 FH

15 MANDARIN GARDEN CONDOMINIUM 1,001 1,198,000 1,197 99

15 VILLA MARINA 1,916 1,800,000 939 99

16 BAYSHORE PARK 936 1,060,000 1,132 99

17 DAHLIA PARK CONDOMINIUM 1,249 1,120,000 897 FH

17 DAHLIA PARK CONDOMINIUM 1,098 924,888 842 FH

17 CARISSA PARK CONDOMINIUM 1,647 1,380,000 838 FH17 AZALEA PARK CONDOMINIUM 1,335 1,055,000 790 999

18 RIS GRANDEUR 1,292 1,280,000 991 FH

18 THE TROPICA 1,227 1,120,000 913 99

18 MELVILLE PARK 936 788,000 841 99

19 THE CHUAN 936 1,390,000 1,484 999

19 KOVAN RESIDENCES 1,798 2,210,000 1,229 99

19 ROSYTH VILLE 1,087 1,188,000 1,093 999

19 KOVAN MELODY 1,227 1,270,000 1,035 99

19 THE SPRINGBLOOM 1,539 1,508,220 980 99

20 CLOVER BY THE PARK 1,281 1,800,000 1,405 99

20 BRADDELL VIEW 1,615 1,500,000 929 99

20 FAR HORIZON GARDENS 1,292 1,120,000 867 99

20 FAR HORIZON GARDENS 1,152 880,000 764 99

21 THE CASCADIA 990 1,608,000 1,624 F H

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

21 MAPLEWOODS 850 1,250,000 1,470 FH

21 THE NEXUS 1,496 2,100,000 1,404 FH

21 THE BLOSSOMVALE 1,399 1,850,000 1,322 999

21 CAVENDISH PARK 1,227 1,480,000 1,206 99

21 ASTOR GREEN 1,087 1,250,000 1,150 99

21 CHARISMA VIEW 1,066 1,188,000 1,115 FH

22 PARC OASIS 1,227 1,000,000 815 99

23 PARK NATURA 1,744 2,050,000 1,176 FH

23 DAIRY FARM ESTATE 2,131 2,300,000 1,079 FH

23 HILLBROOKS 1,173 1,180,000 1,006 FH

23 THE WARREN 1,076 965,000 897 99

23 MONTROSA 861 765,000 888 999

26 BULLION PARK 1,259 1,250,000 993 FH

26 SEASONS PARK 1,249 1 ,140,000 913 9927 ORCHID PARK CONDOMINIUM 1,152 868,000 754 99

singapore property weekly issue 77

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