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Is There a Magic Pill for Successful Property Investment? Singapore Property News This Week Resale Property Transactions (November 14 November 20)
FROM THE
EDITOR
Welcome to the 80th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise
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SINGAPORE PROPERTY WEEKLY Issue 80 They also offered me a property investment mentor who will help me to become rich in a 12 month package for $3,995. The mentor is the same fellow who sold me the property. He must be always right because hes a property guru. Ill just follow those shrink wrapped books, study that file which is thicker than my sons history book, follow the gurus recommendation, and start boasting to my friends how you dont have to do anything to become rich. I am on my way to untold fortunes. Look out world. Here I come! Sounds foolish doesnt it? But people are always looking for that Magic Pill, the one thing that will help them leave their job, become rich, buy that house and car and live a better life. I call it the Magic Pill Syndrome people jump from investment to investment, program to program looking for the easy road to wealth. Unfortunately, the only place the
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magic pill will work is in the movies or Peter Pans land. The Armchair Investing Pill
Most people do not want to work or are simply looking for the laziest and quickest way they can find to wealth and riches. They throng property seminars, exhibitions and new launches, hoping to find that one great deal to be laid out to them on a silver platter. They rather let others find the deal for them than to go do it themselves. In other words, they hope the sky will rain money down on them. They like to believe they can find good property deals with no sweat, no trouble, and no need to get dirty. They want everything from the legal stuff to renting out done for them, so that all they have to do is to sign on the dotted line.
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SINGAPORE PROPERTY WEEKLY Issue 80 Many overseas properties being marketed in property seminars or exhibitions can be more than meets the eye. Their so-called projected high returns can be distorted to look good to potential buyers. These marketers have clever up-the-sleeves marketing tricks to package these properties nicely, making Enron and Bernie Madoff look like amateurs. The only reason such properties are being sold in seminars or exhibitions is because they can make money for the sellers, and certainly not for you, the buyer. If the property is as good as they claim, why the need for it to be marketed thousands of miles away when there is already a ready pool of wealthy savvy investors with ready money to buy from the country of origin? Great and good property deals are NEVER marketed or promoted widely in public (this includes new property launches). They are meant to be found through hard-work and sweat. The Only Magic Pill that works The only magic involved for investment success is hard work, action and commitment. It is hard work to first get educated and learn the ropes before any action is taken. Action is the fuel. Commitment is the vehicle that will drive you to the finish line. Hard work, action and commitment are needed to help you realise your investment goals. Theres no other way around it. All too often I hear people say, I dont want to learn. I have no time. This is just foolishness. Dont be seduced by the opportunities that promise you instant riches.
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SINGAPORE PROPERTY WEEKLY Issue 80 Donald Trump and the Trenches To be a rich successful investor, one has to first learn to be in the trenches, observing the enemy from the frontlines, fighting and dodging bullets, sweating in mud under the hot sun and pushing your limits to survive no matter how tired you may be. Certainly, you dont expect to win a war from the comforts of your sofa at home. Donald Trump, the famous property developer, started his real estate investment career as a small-time investor in the dark pits of New York City. I certainly dont think he became this successful simply by being an armchair investor and neither should you. But Im not asking you to be the next Donald Trump either. You just need to be a smart property investor! With the right systems and training put together with your hard work, action and commitment, you can find an investment that will work for you. A mentor or coach can help with the learning curve and help you increase your success faster. By guest contributor Gerald Tay, CEO and Chief Trainer at CREi Academy Group.
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According to the October flash estimates of the Singapore Residential Price Index (SRPI) series, the 35-year cap on loan tenure and lower LTV ratios have no significant impact on overall housing prices in October. Excluding ECs, prices of completed private apartments and condominiums saw a 1% increase, with prices of suburban units (excluding small units) increasing by 1% and prices of units in the Central Region increasing by 0.9%.
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SINGAPORE PROPERTY WEEKLY Issue 80 Meanwhile, prices of small units (up to 506 sq ft) islandwide saw a 0.6% increase. While the cooling measures introduced thus far do not help to control inflation of house prices, it is helping to reduce house price volatility, with the average absolute monthly change falling from 2.6% per month before the introduction of the cooling measures to 0.9% per month after the introduction. The lack of effectiveness of the cooling measures in the suburban market is attributed to domestic liquidity. Meanwhile, the revised SRPI values for September reflected a 1% increase in the Central Region and the Non-Central Region, and a 2% increase for small apartments islandwide, leading to a overall increase of 1% in September. Bishan St 14 residential site draws $505m top bid The 11,227.80 sq m residential site located at Bishan Street 14 site next to CapitaLands Sky Habitat development attracted a top bid of $505 million, or $852.94 psf ppr from Allamanda Residential Development, a 75-25 Capitaland- Mitsubishi Estate Asia joint venture, beating out eight other bidders. The plan is to develop the site into a 700-unit condominium to be launched in H2 2013, which estimated breakeven price and selling price are $1,350-$1,400 psf and $1,650$1,700 psf respectively. The high bids suggests that private residential sites are still in demand and that developers are willing to pay higher land prices. (Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 80 Commercial Downward trend in Grade A office rents continues in Q4 $9.26 psf in Q3 to $9.07 psf in Q4. In addition, all three firms predicts flat Grade A rents in 2013. The islandwide net absorption of office space is estimated to hit two million sq ft in 2012, much like the 2.1 million sq ft in 2011. Net new supply of office space (new completions less demolitions) is also estimated to be around one million sq ft, compared to 2.8 million sq ft last year, leading to an estimated fall in the islandwide office vacancy rate from 6.7% in 2011 to 5.1% this year. However, this is expected to change in 2013, with an increase in vacancy to 8.7% expected since net absorption of 1.12 million sq ft and net new supply of 2.56 million sq ft is estimated for the next year. (Source: Business Times)
According to CBRE, the average monthly rental value for Grade A office space (bestquality office buildings in Raffles Place, Marina Bay and Marina Centre) slipped 3% to $9.51 psf in Q4 from $9.80 psf in Q3, bringing the full-year fall to 13.5%, compared to the 11.1% increase in 2011. Similarly, Jones Lang LaSalle also reports a 2.2% fall in the average rent in its Grade A basket (bestquality buildings in Raffles Place, Marina Bay, Shenton Way, Tanjong Pagar and Marina Centre) from Q3 to $8.90 psf in Q4, leading to a full-year fall of 8.7%. Colliers International also reported a 2% fall in the average Grade A Raffles Place/New Downtown rent from
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SINGAPORE PROPERTY WEEKLY Issue 80 Victoria St/Ophir Rd hotel site launched on reserve list The 99-year leasehold 82,057.5 sq-ft plot with a 344,649.3 sq-ft maximum permissible GFA and a maximum building height of 20 storeys is likely to be triggered. Assuming a four-star 550-650-room hotel development with a retail component, the top bid for the site is expected to be in the range of $1,000 to $1,100 psf ppr. It is likely to be popular, given the rising visitor arrivals, its location near main Bugis shopping area, the Kampong Glam Conservation Area, and the upcoming mixed development DUO as well as the Bugis MRT Station and the upcoming Bugis Downtown Line. (Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of Nov 14 Nov 20
Postal District 1 2 3 3 3 3 4 4 4 4 4 5 5 5 5 5 5 8 8 8 8 9 9 9 9 Project Name MARINA BAY RESIDENCES ICON THE METROPOLITAN CONDOMINIUM TANGLIN VIEW RIVER PLACE HARVEST MANSIONS MARINA COLLECTION CARIBBEAN AT KEPPEL BAY CARIBBEAN AT KEPPEL BAY THE COAST AT SENTOSA COVE CARIBBEAN AT KEPPEL BAY ONE-NORTH RESIDENCES THE PEAK@BALMEG CRYSTAL HEIGHTS BLUE HORIZON BLUE HORIZON VARSITY PARK CONDOMINIUM URBAN LOFTS PRISTINE HEIGHTS D'CAMBRIDGE BLISS REGALIA THE COSMOPOLITAN THE COSMOPOLITAN BELLE VUE RESIDENCES WATERMARK ROBERTSON QUAY Area (sqft) 1,636 581 1,744 1,141 1,389 947 2,185 893 893 4,596 1,227 592 1,755 1,109 1,216 936 2,271 840 732 732 1,679 1,141 1,399 4,090 936 Transacted Price ($) 4,417,200 1,100,000 2,495,000 1,550,000 1,850,000 1,050,000 6,227,250 1,550,000 1,550,000 7,813,200 1,860,000 960,000 2,750,000 1,428,000 1,340,000 1,000,000 2,300,000 1,170,000 1,000,000 976,000 1,450,000 2,520,000 2,920,000 8,033,000 1,750,000 Price Tenure ($ psf) 2,700 99 1,892 99 1,431 99 1,358 99 1,332 99 1,108 99 2,850 99 1,735 99 1,735 99 1,700 99 1,516 99 1,622 99 1,567 FH 1,288 FH 1,102 99 1,068 99 1,013 99 1,394 FH 1,366 FH 1,333 FH 864 FH 2,209 FH 2,087 FH 1,964 FH 1,869 FH Postal District 9 9 9 10 10 10 10 10 10 10 10 10 10 10 11 11 11 11 11 12 12 12 13 15 15 Project Name LEONIE STUDIO THE IMPERIAL MARTIN EDGE ST REGIS RESIDENCES SINGAPORE NASSIM JADE DE LENTE THE EQUATORIAL THE MARBELLA SPRING GROVE THE LEVELZ SHANGHAI ONE HOLLAND MEWS THE SIERRA THE SIERRA SOLEIL @ SINARAN AMARYLLIS VILLE PAVILION 11 KELLETT COURT MINBU COURT THE ARTE THE ARTE MONVILLE MANSIONS EURO-ASIA PARK AMBER RESIDENCES CAMELOT BY-THE-WATER Area (sqft) 926 1,722 936 2,153 2,110 743 2,067 1,625 1,389 743 883 2,422 980 980 1,722 958 1,485 1,044 990 1,399 1,873 1,615 1,475 1,163 5,360 Transacted Price ($) 1,700,000 3,075,000 1,456,000 5,550,000 5,200,000 1,320,000 3,550,000 2,708,000 2,222,000 1,185,000 1,375,000 3,740,000 1,340,000 1,313,000 3,200,000 1,520,000 2,330,000 1,450,000 1,080,000 1,800,000 2,130,000 1,500,000 1,530,000 1,802,650 7,300,000 Price Tenure ($ psf) 1,836 99 1,785 FH 1,555 FH 2,578 999 2,465 FH 1,777 FH 1,718 FH 1,666 FH 1,600 99 1,595 FH 1,558 FH 1,544 FH 1,368 947 1,340 947 1,858 99 1,587 99 1,569 FH 1,389 FH 1,091 FH 1,286 FH 1,137 FH 929 FH 1,038 FH 1,551 FH 1,362 99
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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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