Singapore Property Review

28/12/2023

Landlords do take note.
More challenging days ahead for rental market.

Condo rents dropped 1.4 per cent in November, while HDB rents inched up 0.8 per cent. Read more at straitstimes.com.

14/12/2023

OCR ( Outside Central Region ) developments have already soared past the $2,000 psf mark this year. Next year's projects at Tampines Avenue 11, Chuan Park, and Clementi Avenue 1 are expected to reach $2,450 to $2,500 psf.

This graph below highlights good value investment to be found in existing launches.

For example, Sky Eden @ Bedok is obviously selling at an undervalued $ psf, when compared to recent launch such as J’den and even more when compared to upcoming ones.

While there are other projects with similar psf as shown on the graph, Sky Eden have advantages in several aspects

✅ LIVE - Solid amenities in mature estate: Bedok Mall and plethora of eateries around.
✅ WORK - Excellent connectivity: MRT and Bus Interchange within short walking distance.
✅ PLAY - Proximity to East Coast Park & Bedok Reservoir

For further sharing on why we believe Sky Eden is a safe buy in today’s market, contact us for non obligatory discussion.

28/03/2023

How will real estate capital market be hit by high interest rate in 2023?

In Singapore, CBRE managing director Moray Armstrong sees “an element of price discovery”.
Holding power is the key. “Would-be-buyers excited about the prospects of a deep discount may be disappointed. Singapore has value propositions that will make it a very vibrant market, particularly in the second half of the year.”

While Tokyo is still the preferred target market for cross-border investment in 2023, Singapore has moved to second place (from third in 2022).

For more in depth read do check out edgeprop article here:
https://www.edgeprop.sg/property-news/banking-crisis-how-will-real-estate-capital-markets-be-hit

29/10/2022

This is a fascinating watch on how a billionaire takes up the challenge to start again from zero, well almost..

Equipped with $100, an old truck and a phone, he aims to turn that $100 into $1 million dollar in 90 Days.
In a city where he has zero connection & prior knowledge of.

A lot of interesting principle of money & business throughout the show.

UNDERCOVER BILLIONAIRE, self-made businessman Glenn Stearns bet big that the American Dream was still alive and well. Grand was stripped of his name, wealth,...

19/10/2022

When Everything Goes Up, Is There Any Product Still Selling at Last Year Price?

Suburbs hit $2100 psf.
Resale hdb & condo at record high.
Land & construction cost goes up.

In such a market, what are the anomalies?
Where are the under the radar products, the late bloomers, that we can still make a move on?

That’s the question we ask.
We run over the facts & figures.
We ended with this project.

If you think there is other project worth checking out, we will be glad to review them!

20/10/2021

You may have come across this new project's ads on social media a lot.
And indeed it has been top selling condo this month!
𝑰𝒔 𝒕𝒉𝒊𝒔, 𝒊𝒏 𝒇𝒂𝒄𝒕, 𝒕𝒉𝒆 𝒎𝒐𝒔𝒕 𝒗𝒂𝒍𝒖𝒂𝒃𝒍𝒆 𝒑𝒓𝒐𝒋𝒆𝒄𝒕 𝒊𝒏 𝒕𝒉𝒆 𝒎𝒂𝒓𝒌𝒆𝒕 𝒕𝒐𝒅𝒂𝒚?
Check out a summary of our analysis here.
For more in depth sharing of how to evaluate the property market & good buy in today market, drop us a message!

24/08/2021

𝐌𝐞𝐠𝐚 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐞 𝐚𝐭 𝐓𝐚𝐦𝐩𝐢𝐧𝐞𝐬 𝐢𝐬 𝟗𝟒.𝟕% (𝟐𝟎𝟖𝟕 𝐮𝐧𝐢𝐭𝐬) 𝐒𝐎𝐋𝐃.
Phenomenal result for a project that had to deal with pandemic setback not long after it was launched. But is it all hype? Let's take a look at our case study on Treasure.

✅ RESALE vs NEW LAUNCHES
Was Treasure a better investment compared to nearby cheaper resale condo?

✅ OLD PRICE TAG vs NEW PRICE TAG
Is Treasure worth buying today?

In today's market, it is no longer about finding 'cheapest' price tag. It is about discerning the value and the right entry price.

02/08/2021

"The strong new home sales in the first six months of 2021 have seen the unsold inventory in the market dwindling to a record low of 19,409 units as of 2Q2021. In 1H2021, developers sold 6,459 units or 1,077 units per month, the highest half-yearly sales since 2013."

At current rate, this takes 1.5 years or less to clear the unsold inventory. Government can opt for either more cooling measures or more land sales.

While cooling measures will certainly put halt to the market movement, it will also likely make housing even less attainable for many first timers who genuinely dream of buying their own home.

More land sales, on the other hand, may discourage developers from being over ambitious in their bidding and subsequent pricing.
We will not be hearing about a $2,000 psf new launch in Pasir Ris if there were more projects in the pipeline.

How long will it take to sell out the existing unsold stock in each market segment if the current sales momentum continues?

28/07/2021

Most of property investors will want projects with strong rental demand.

Who wouldn't want that right?
So let's take a look at projects with highest rental yield here.
Source: https://stackedhomes.com/editorial/5-condos-best-rental-yield/ .7ix537

1. People's Park Complex (Chinatown)
2. the Hillford (Jurong Kechil)
3. Melville Park (Simei)
4. Suites @ Paya Lebar (Serangoon)
5. Northoaks (Admiralty)

Not quite the kind of projects that come to our mind, right?

The most well known mantra for property is 'location, location, location!'.
Yet these five are hardly located in the most prominent locations.

In fact, the most prestigious properties in Singapore (Freehold in prime districts) are known to have very low rental yields. Some even fetch less than 2% gross yield per annum.

When it comes to investment properties, cashflow matters.
Not everyone can afford to leave their properties empty and just wait for the right time to sell for capital gain.

This is when rental demand and yield matters.
Freehold and prime districts mean little when you are on serious deficit every month and struggling to pay for your mortgage.

Yet it is also crucial that we do not overly emphasise on rental yield and overlook the future value of the property.

Yes Northoaks or Melville Park are cheap and have good rental demand. But will their value increase or even sustain for the next 10 years?

The bulk of money is made through capital gain instead of rental yield when it comes to property investment.

If you are looking for rental income, what is important is to calculate rental minus costs. Here are 5 condos with a good rental yield and low maintenance

30/06/2021

Recent Private Residential Land Sales Cost (per sqft per plot ratio)
1. AMK Ave 1 - $1,118 psf
2. Northtumberland Rd (Farrer Park) - $1,129 psf)

The highly anticipated land at the heart of Beauty World Transport Hub and Transformation Area has today closed its tender with Far East Organisation submitting 3 bids, showing their determination to win this plot.

Far East has won the tender for similar plot at Holland Village which is currently selling at $25xx-3000 psff.

Stay tuned for more update on this Beauty World project which will surely be the biggest launch in the West Singapore.

Source: Edgeprop

The Jalan Anak Bukit GLS site will be turned into an integrated transport hub with residential and commercial elements.

24/06/2021

Six months ago we compared and contrasted Clavon with Hyll on Holland. The leasehold suburb project started off soaring while Hyll struggled to even sell 10 units.

Being priced at $24xx-2,6xx psf, Hyll was actually reasonably priced if we take into consideration the price of projects such as One Pearl Bank, Riviere and more recently launched Midtown Modern.
All were leasehold, not in the traditional prime district location and yet commanded similar or higher price.

What Hyll lacked was sense of scarcity and transformation story, among few other things.
Midtown Modern could fetch $3000++ psf as it rode on the scarcity factor & the area transformation plan.

But today the developer announce flash sale that sees some of the units' price slashed down to $2,1xx- 2,2xx psf.
Only One Word to Describe It- CHEAP.

Will this be enough to lure buyers?
Property purchase is more often emotional than rational.
But we certainly hope some discerning buyers will see the value in this opportunity and take action.

Our last post was that of Penrose.
Another land bought at similar price ($7xx psf) to Penrose was Clavon at Clementi. UOL launched this project last week and similar to Penrose, it went on to sell over 400 units (70%) in ONE (1) day.

Now not ALL projects sell like hotcakes.

Not far from Clementi, Verdale, a new launch at Upper Bukit Timah sold only 15% of its inventory on launch day.

So here are some of the talking points we will explore.
Why some projects sell so well and some struggle?
Does this mean in overall there is still too much supply in the market?
From July-November, except for the drop in October due to lack of new projects, we have seen spectacular number of sales. Is this all pent up demand or are we officially on a bull run?

23/06/2021

HOT Integrated Development Launching Soon in July BUT... Why wait for it when you can be the FIRST MOVER and snap a Better Deal NOW?

Why pay $17xx-18xx psf LATER when you can secure one at $16xx psf Now?

Discover why this project has sold over 400 units till date.

Find out through our comprehensive analysis of existing and upcoming projects why Sengkang Grand Residences, starting from $1595 psf, gets our vote as the best value buy at this price bracket.

Why Integrated Development matters?
What to look out for to be successful Integrated Development?

Speak to us to find out more.