Issue 28

Copyright 2011 www.Propwise.sg. All Rights Reserved.

CONTENTS
p2
p6
Singapore Property News This Week
Can Real Estate Investment Make Me Ultra-Rich?

FROM THE

EDITOR

Welcome to the 28th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise

p11 Resale Property Transactions

(November 12 November 18)

p13 Singapore Property Classifieds #18

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SINGAPORE PROPERTY WEEKLY Issue 28

Singapore Property This Week

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.
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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.

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SINGAPORE PROPERTY WEEKLY Issue 28 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 The tenders will close at 12 noon on Jan 12, Jan 10 and Jan 18 respectively. Archipelago@ Bedok Reservoirs expected

near tertiary institutionsand the new Clementi

transport hub, and Clementi Mall.

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

The 577-unit 99-year leasehold project located

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 $610630 psfppr giventhe average selling price of $1,200 psfppr. It will likely attract employees who work in the industrial estates near the site.

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

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.

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.

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SINGAPORE PROPERTY WEEKLY Issue 28 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
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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) is buying a three-storey industrial property for $14.8 million, to be funded by debt. Located at 6 Woodlands Loop, near Admiralty and

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SINGAPORE PROPERTY WEEKLY Issue 28 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 and MMI 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-ahalf to four-star 450-room hotel with a retail component. It will likely collaborate with hotel management companies to offer accommodation 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.

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SINGAPORE PROPERTY WEEKLY Issue 28

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.

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SINGAPORE PROPERTY WEEKLY Issue 28 Why Real Lucrative Estate Development is so 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 know why 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.

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

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SINGAPORE PROPERTY WEEKLY Issue 28 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 respect for the niche Real Estate developers, but Real Estate development is really not my cup of tea, at least not right now. 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

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

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.

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SINGAPORE PROPERTY WEEKLY Issue 28 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, I would 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 a good base for him to grasp the ideas for passive income generation.

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SINGAPORE PROPERTY WEEKLY Issue 28

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SINGAPORE PROPERTY WEEKLY Issue 28

Non-Landed Residential Resale Property Transactions for the Week of Nov 12 Nov 18
Postal District 1 1 1 2 3 3 3 4 5 5 5 7 8 8 9 9 9 9 9 9 9 10 10 10 10 Project Name THE SAIL @ MARINA BAY MARINA BAY RESIDENCES PEOPLE'S PARK COMPLEX SPOTTISWOODE PARK THE REGENCY AT TIONG BAHRU TANGLIN VIEW RIVER PLACE HARBOUR VIEW TOWERS VARSITY PARK CONDOMINIUM MURANO HERITAGE VIEW SOUTHBANK OXFORD SUITES KERRISDALE PATERSON SUITES THE COSMOPOLITAN YONG AN PARK YONG AN PARK THE INSPIRA RESIDENCES AT 338A UE SQUARE FOUR SEASONS PARK ORION VALLEY PARK THE BALMORAL SPRING Area Transacted Price Tenure (sqft) Price ($) ($ psf) 883 2,488,294 2,819 99 1,066 2,744,950 2,576 99 1,119 900,000 804 99 850 790,000 929 99 1,270 1,778,000 1,400 FH 1,991 2,750,000 1,381 99 786 965,000 1,228 99 3,907 3,725,000 953 99 1,098 1,270,000 1,157 99 635 730,000 1,149 FH 1,206 1,300,000 1,078 99 958 1,500,000 1,566 99 678 990,000 1,460 FH 990 1,040,000 1,050 99 6,663 20,000,000 3,002 FH 1,399 2,714,060 1,940 FH 1,765 3,200,000 1,813 FH 3,111 5,600,000 1,800 FH 926 1,648,000 1,780 FH 1,119 1,848,500 1,651 FH 1,055 1,400,000 1,327 929 2,874 8,280,000 2,881 FH 1,507 3,400,000 2,256 FH 861 1,380,000 1,603 999 1,076 1,650,000 1,533 FH Postal District 10 10 11 11 12 12 12 12 12 12 14 14 15 15 15 15 15 15 15 15 15 15 15 15 16 Project Name ORCHARD BEL AIR THE EQUATORIAL PARK INFINIA AT WEE NAM NINETEEN SHELFORD ROAD TRELLIS TOWERS THE ARTE VETRO DE ROYALE SUNVILLE THE ABERDEEN LE CRESCENDO THE SUNNY SPRING PEBBLE BAY PEBBLE BAY ARTHUR 118 GRAND DUCHESS AT ST PATRICK'S ESPIRA SPRING SANCTUARY GREEN WATER PLACE FERNWOOD TOWERS IVORY CELESTIA EASTERN LAGOON THE ESPIRA CASA MERAH Area Transacted Price Tenure (sqft) Price ($) ($ psf) 3,229 4,500,000 1,394 99 2,422 3,150,000 1,301 FH 1,001 1,770,000 1,768 FH 883 1,235,000 1,399 FH 549 818,888 1,492 FH 1,625 2,023,125 1,245 FH 614 718,000 1,170 999 1,259 1,430,000 1,135 FH 1,324 1,166,000 881 FH 1,109 950,000 857 FH 1,173 1,300,000 1,108 FH 1,012 868,000 858 FH 2,282 3,350,000 1,468 99 1,367 1,950,000 1,426 99 1,001 1,410,000 1,409 FH 1,518 1,968,000 1,297 FH 1,119 1,342,800 1,200 FH 1,270 1,440,000 1,134 99 1,216 1,350,000 1,110 99 1,195 1,320,000 1,105 FH 657 720,000 1,097 FH 926 960,000 1,037 FH 3,165 3,000,000 948 FH 1,894 1,380,000 728 FH 1,055 1,150,000 1,090 99

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SINGAPORE PROPERTY WEEKLY Issue 28

Postal District 16 16 16 16 16 17 17 18 18 18 18 19 19 19 19 19 19 19 19 19 20 20 20 20 21 21 21 Project Name CHANGI COURT THE BAYSHORE THE BAYSHORE CHANGI GREEN EASTWOOD CENTRE DAHLIA PARK CONDOMINIUM BALLOTA PARK CONDOMINIUM RIS GRANDEUR MELVILLE PARK ELIAS GREEN ELIAS GREEN SUNGLADE 3@PHILLIPS THE SPRINGBLOOM CHUAN PARK RIO VISTA THE QUARTZ REGENTVILLE PARRY COURT CASA ROSA GOLDENHILL PARK CONDOMINIUM CLOVER BY THE PARK SEASONS VIEW GRANDEUR 8 THE RAINTREE PANDAN VALLEY SUMMERHILL Area Transacted Price Tenure (sqft) Price ($) ($ psf) 840 845,000 1,006 FH 1,012 970,000 959 99 1,184 1,060,000 895 99 1,216 1,050,000 863 FH 3,025 1,550,000 512 99 1,055 845,000 801 FH 1,776 1,160,000 653 FH 1,356 1,210,000 892 FH 1,399 950,000 679 99 1,367 890,000 651 99 1,518 980,000 646 99 1,744 1,680,000 963 99 861 815,000 946 999 1,163 1,090,000 938 99 1,528 1,400,000 916 99 1,238 1,050,000 848 99 1,550 1,280,000 826 99 1,076 858,000 797 99 1,098 860,000 783 999 1,281 950,000 742 99 1,539 1,850,000 1,202 FH 1,281 1,500,000 1,171 99 969 1,000,000 1,032 99 1,259 1,190,000 945 99 1,335 1,348,000 1,010 99 1,432 1,400,000 978 FH 1,302 1,270,000 975 FH
Postal District 21 22 23 23 23 23 23 23 23 23 25 26 26 Project Name HIGH OAK CONDOMINIUM IVORY HEIGHTS THE MADEIRA MAYSPRINGS THE MADEIRA PARKVIEW APARTMENTS REGENT HEIGHTS GUILIN VIEW GUILIN VIEW REGENT HEIGHTS THE WOODGROVE BULLION PARK CASTLE GREEN Area Transacted Price Tenure (sqft) Price ($) ($ psf) 1,206 1,050,000 871 99 1,851 1,230,000 664 100 1,733 1,680,000 969 99 904 720,000 796 99 1,238 968,000 782 99 1,119 865,000 773 99 1,023 770,000 753 99 1,259 940,000 746 99 1,744 1,286,000 737 99 1,173 845,000 720 99 926 720,000 778 99 1,238 1,180,000 953 FH 947 758,000 800 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.

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SINGAPORE PROPERTY WEEKLY Issue 28

Singapore Property Classifieds #18

For Sale Soho@Central, #09- ,soho1/w loft/635sf/vacant/mgt fee $975/quart/ask $2280psf/avail for rent 5.5$K(neg). Call S.Ganesh 91732881 for viewing! For Rent Luma/New/1153sf/3br+balcony/8F/rent $5,500(low asking)/partial/nego/also avail for sale $2000psf neg/Call S.Ganesh 91732881 for viewing!

Off@Central,#19-/3246sf(apx),tnted/rent 25k/maint $2,268pm/ask $2950psf neg. View of Marina Bay Sands. Call S.Ganesh 91732881 for viewing!

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