Singapore Property Weekly Issue 252
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Transcript of Singapore Property Weekly Issue 252
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8/19/2019 Singapore Property Weekly Issue 252
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Issue 252Copyright © 2011-2016 www.propwise.sg. All Rights Reserved.
http://www.propwise.sg/http://www.propwise.sg/
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CONTENTS
p2 Semi-Retired at 44 - 3 Steps a Wise
Propwise.sg Reader Took to Get There
p6 Singapore Property News This Week
p10 Resale Property Transactions
(March 7 – March 11)
Welcome to the 252th edition of the
Singapore Property Weekly .
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:[email protected]
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By Mr. Propwise
A reader recently wrote in to share his story
of how he achieved semi-retirement at the
young age of 44. He no longer needs to work
for active income, and now spends his time
consulting for technology startups and
ferrying his three teenage kids to their
swimming, running and shot put training and
competitions.
How did he do it? He diligently followed aplan for 20 years to invest and fully pay off his
housing mortgage and car loan.
Semi-Retired at 44 - 3 Steps a Wise Propwise.sgReader Took to Get There
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Here is the plan he followed (I've taken the
liberty to add in some of my own thoughts on
his strategy in italics):
Step #1: Consistently buying Blue Chipstocks over 20 years despite the ups and
downs of the market
Mr. Propwise: Equities has been one of the
best performing asset classes over the long
term. The key, though, is not being swept up
by waves of greed to buy at the market top,and then panicking and selling out at the
market bottoms. Mass hysteria compels the
majority of investors to do exactly that, which
will hurt your long term returns.
One way to overcome this is to do what our smart reader has done - ignore the market
cycles and just buy quality stocks through
market ups and downs. This is akin to an
investing strategy known as Dollar Cost
Averaging, which involves buying a fixed
dollar amount into the market at regular
intervals - you will end up owning more during
market bottoms and less during market tops.
One final consideration is perhaps buying an
Index ETF (Exchange Traded Fund) instead
of individual stocks if you are not confident in
your stock-picking. This will help to diversify
your stock-specific risk. You might also want
to diversify country risk by buying a regionalor even global ETF.
Step #2: Fully paid up his HDB flat and
then rented it out for extra income
Mr. Propwise: HDB flats are how the majority
of Singaporeans and PRs come to own their first home. Historically, they've been fairly
affordable and a typical working couple who
progress in their careers can aspire to pay
down the entire mortgage in perhaps
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10 to 20 years.
HDB flats also tend to be one of the highest
yielding properties you can own given the
fairly resilient rentals.Step #3: Finally moved to a condo and
then fully paid down the mortgage.
Mr. Propwise: If you've the financial means to,
buying a second property will turn you into a
bona fide property investor. When you've fully
paid off both properties, you now have an
investment property that is giving you an
extra income from the monthly rental. This is
a key retirement strategy - creating streams
of additional (not necessarily passive) income
for yourself beyond your job, and then
gradually making your way to Financial
Freedom when your additional income
supersedes your expenses.
A variation of this strategy is to keep the
mortgages on your property (as home loans
are likely to be one of the cheapest loans you
will ever get), and then invest this into high
yielding assets such as dividend stocks. This
will help to maximize your return, but could
lead to increased anxiety as whatever assets
you buy (e.g. stocks) could experience a lot of
volatility.
Of course, skill and luck had a part to play aswell. Our wise reader had worked for a listed
Tech company in the United States, climbed
the corporate ladder to a fairly senior position,
and had received stock compensation that
performed well.
But by achieving financial freedom at a
relatively young age, our kindhearted reader
has also not forgotten the less fortunate - in
addition to spending his time on his
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consulting projects and kids, he also serves
breakfast to one-room HDB dwellers in
Punggol, and together with a group of friends
gives stationery and bicycles to poor kids in
Cambodia twice a year.
He hopes that by sharing his story it will
inspire others (especially the younger
readers) to start their saving and investing
journey - with lots of discipline and a bit of
luck you too can semi-retire and spend your time on activities you find worthwhile.
Do you know of others with an inspiring story
to share? Do let me know at
[email protected] and I'll be happy to profile
them.
mailto:[email protected]://propertymarketinsights.com/mailto:[email protected]:[email protected]:[email protected]
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SINGAPORE PROPERTY WEEKLY Issue 252
Singapore Property This Week
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Residential
Healthy interest in Cairnhill Nine and The
Wisteria
Of the 268 units at Cairnhill Nine, 200 were
released for sale recently. Since its launch,
134 units have been sold. Located at Yishun,116 of the 138 units at The Wisteria were sold
since they were launched. Market experts
believe that both developments appealed to
investors because they were priced
reasonably. At Cairnhill Nine, the units sold
ranged from 591 sq ft to 3,864 sq ft and theywere priced between $2,200 psf and $2,800
psf. Ranging between 732 sq ft and 969 sq ft,
the one-bedroom with guest units were the
most popular, with about 80% of the 90 unitssold. Market experts believe that beyond its
price, its strategic location at Orchard Road
and a lack of major residential projects
launched in that area in the last two years
could have pumped up interest in the
development. Donald Han from ChestertonSingapore added that based on an average
price of $2,500 psf, investors of Cairnhill Nine
could reap a yield of about 4%. At The
Wisteria, the units were sold for average
prices between $1,030 and $1,050 psf. Given
strong demand for its one and two-bedroomunits, market experts believe that there could
be a higher percentage of buyers who are
SINGAPORE PROPERTY WEEKLY I 252
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investors compared to a typical residential
project in a suburban area. Comprising three
9-storey towers, The Wisteria is part of a
mixed-use 99-year leasehold development.
(Source: Business Times)
6.8% month-on-month drop in private homes
sold in Feb
According to the Business Times, 301 private
homes (excluding ECs) were sold by
developers in February this year, down from
323 units in January. This was a 6.8% fall
month-on-month and a 22.8% fall year-on-
year - the lowest since December 2014.
Inclusive of ECs, 430 units were sold in
February, down from the 479 units in the
previous month and 455 units in February last
year. Market experts said that this was not
surprising as developers had held off
launches last month due to the festivities and
weak market sentiment. Nonetheless,
property experts believe that private home
sales should increase this month due to the
launch of private homes like the Cairnhill
Nine, The Wisteria and Wandervale. JLL’s
Ong Teck Hui said that those projects are
expected to do well due to their location and
pricing. However, this does not indicate that
the market is recovering. Wong Xian Yang
from OrangeTee believes that developers will
sell about 500 to 800 private homes in March.
He also predicted that there will be a total of
about 1,124 to 1,424 units sold in Q1 this
year, which is comparable to the 1,311 units
sold in Q1 2015. Nicholas Mak from SLP
International estimates that about 7,000
private homes will be sold by the end of the
year as developers have been selling more
units than they have been releasing them.
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PropNex’s Ismail Gafoor and JLL’s Ong Teck
Hui both said that developers will likely to
adjust their pricing strategy so as to be able
to move units, given the challenging market
conditions.
(Source: Business Times)
MND: Cooling measures unlikely to be
lifted
The Ministry of National Development (MND)
has said that the government is unlikely to lift
cooling measures now as doing so may result
in a market rebound. The Real Estate
Developer’s Association of Singapore
(Redas) had been lobbying for a review of the
cooling measures in recent years. Most
recently, a Member of Parliament had asked if
MND will consider removing the additional
buyer’s stamp duty for Singaporeans but
retain it for foreigners. Augustine Tan from
Redas said that the association desires
stability in the market and does not want a
continued slowdown to have negative
spillover effects on the broader economy.
While experts believe that poor private sector construction demand may slow the economy
in 2016, MAS believes that any impact of a
property slowdown on the economy will be
contained. MAS also added that the
construction workforce is generally able to
adjust flexibly to changes in demand without
discernible impact on local employment, as
the sector is made up of a transitory foreign
workforce.
(Source: Business Times)
Tanjong Katong bungalow up for auction
Located at Tanjong Katong, a freehold
bungalow has been put up for auction as a
mortgagee sale.
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The indicative price of the property is about
$16 million or $1,213 psf on the land area of
13,189 sq ft. The property may be
redeveloped and the site has been zoned for
residential use within a “two-storey bungalowlanded housing” area. DTZ said that the plot
may be subdivided to give a pair of
bungalows or semi-detached houses,
subjected to approval from authorities.
(Source: Business Times)
Commercial
Co-working space expected to gain
popularity
Cushman & Wakefield said that co-working
spaces can be a hedge for office landlords
against a wave of new office completions.
Undesirable or non-performing spaces may
be carved out for tenants to rent on a needs
basis. Developers may also consider bundling
a portion of the vacant space with committed
space, rather than engage in a price war, said
market experts. Located at Keppel Towers,
Workspace, is a new business venture by
Keppel Land that offers both serviced offices
and co-working spaces that cater to smallstartups. Cushman & Wakefield believes that
co-working spaces will allow business to
rescale their space requirements without
having to deal with rigid terms in existing
lease terms. These spaces also encourage
cross-pollination of ideas and promotes asense of community, as they tend to be large
open areas, unlike serviced offices with
private rooms. Given the stability of demand
from co-working and its profitability, Christine
Li from Cushman & Wakefield said that co-
working operators should consider expandingso as to take advantage of the current supply
of 3.6 million sq ft of Grade A office space,
that is entering the market this year.
(Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of Mar 7 – Mar 11
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 PEOPLE'S PARK COMPLEX 463 525,000 1,134 99
2 THE BEACON 969 1,388,000 1,433 99
2 CHINATOWN PLAZA 1,722 1,880,000 1,092 FH
3 ALEXIS 527 838,000 1,589 FH
4 CARIBBEAN AT KEPPEL BAY 1,227 1,780,000 1,451 99
4 THE INTERLACE 3,401 4,080,000 1,199 99
5 BOTANNIA 1,238 1,450,000 1,171 956
5 THE INFINITI 1,270 1,188,000 935 FH
5 PALM MANSIONS 1,324 1,170,000 884 FH
8 CITY SQUARE RESIDENCES 570 955,000 1,674 FH
8 CITIGATE RESIDENCE 570 700,000 1,227 FH
8 STURDEE VIEW 1,475 1,398,000 948 FH
9 THE METZ 1,023 2,488,888 2,434 FH
9 RIVERGATE 1,561 3,100,000 1,986 FH
9 THE PATERSON 1,421 2,620,000 1,844 FH
9 MARTIN PLACE RESIDENCES 1,722 3,135,000 1,820 FH
9 BELLE VUE RESIDENCES 1,938 3,400,000 1,755 FH
9 SUITES AT ORCHARD 1,776 2,912,250 1,640 99
9 ASPEN HEIGHTS 883 1,360,000 1,541 999
10 RV RESIDENCES 861 1,830,000 2,125 999
10 GRANGE RESIDENCES 2,486 4,800,000 1,930 FH
10 THE TESSARINA 990 1,515,000 1,530 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
10 VALLEY PARK 1,109 1,592,000 1,436 999
10 HOLLAND PEAK 1,905 2,660,000 1,396 FH
10 BELMOND GREEN 2,411 3,180,000 1,319 FH
10 THE TRIZON 5,737 6,550,000 1,142 FH
11 ADRIA 1,281 2,110,000 1,647 FH
12 TREVISTA 1,109 1,458,000 1,315 99
14 VACANZA @ EAST 807 938,000 1,162 FH
14 CASA SARINA 1,184 980,000 828 FH
15 THE SEA VIEW 560 1,030,000 1,840 FH
15 MOUNTBATTEN LODGE 377 575,000 1,526 FH
15 AMBER RESIDENCES 1,518 1,850,000 1,219 FH
15 COSTA RHU 2,056 2,480,000 1,206 99
15 LAGUNA PARK 1,615 1,340,000 830 99
16 RIVIERA RESIDENCES 786 940,000 1,196 FH
16 EAST MEADOWS 1,216 1,080,000 888 99
16 THE BAYSHORE 1,238 1,080,000 872 99
17 CHANGI GARDEN 1,475 900,000 610 FH
17 LOYANG VALLEY 1,873 1,050,000 561 99
19 A TREASURE TROVE 1,130 1,125,000 995 99
20 THOMSON V TWO 689 880,000 1,277 FH
20 BISHAN 8 1,163 1,310,000 1,127 99
20 BISHAN 8 1,173 1,220,000 1,040 99
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NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority.
Typically, caveats are lodged at least 2-3 weeks after a purchasersigns an OTP, hence the lagged nature of the data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
20 MARYMOUNT VIEW 1,259 1,210,000 961 FH
20 BRADDELL VIEW 1,615 1,285,000 796 99
21 THE NEXUS 1,485 2,070,000 1,394 FH
21 JARDIN 1,808 2,228,000 1,232 FH
21 CLEMENTI PARK 1,873 1,918,000 1,024 FH
21 SIGNATURE PARK 1,421 1,435,000 1,010 FH
21 ASTOR GREEN 1,528 1,500,000 981 99
21 THE CASCADIA 2,336 2,250,000 963 FH
22 THE LAKESHORE 861 980,000 1,138 99
23 THE LINEAR 1,249 1,110,000 889 999
23 MAYSPRINGS 915 785,000 858 99
23 HILLINGTON GREEN 2,347 1,820,000 776 99923 PALM GARDENS 1,206 925,000 767 99
23 THE WARREN 1,227 930,000 758 99
25 PARC ROSEWOOD 506 600,000 1,186 99
26 CASTLE GREEN 947 760,000 802 99
27 EUPHONY GARDENS 1,044 785,000 752 99
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