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Verandah Residences at Pasir Panjang by Oxley

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Verandah residences (3)

Verandah Residences is an upcoming new launch condominium at Pasir Panjang by Oxley.

Verandah Residences quick navigation

  1. Verandah Residences development information
  2. Project location
  3. Floor plans
  4. Pricing
  5. Selling points
  6. Site plan
  7. Facilities
  8. Gallery
  9. Nearby amenities
  10. Oxley Holdings developer
  11. Contact us

Introduction video (3 min)

Verandah Residences is an upcoming condominium at Pasir Panjang. Built by Oxley, the development will feature 170 units ranging from 1 to 4 bedrooms and 3 strata terrace houses.

Located near Haw Par Villa MRT, numerous good schools, business parks and institutes of higher education, there is a high potential for rental demand in Verandah Residences.

Verandah Residences development information

The following table shows a summary of the key development information for Verandah Residences by Oxley.

Project name The Verandah Residences
Developer Oxley Amber Pte ltd
Address 225 to 231C Pasir Panjang Road
Showflat location South Buona Vista Road
Tenure Freehold
District 5
Plot ratio 1.4
Site area 89,620 sqft
Gross floor area 125,468 sqft
No of units 170
TOP Dec 2023
Date of legal completion 31 Dec 2026
No of storeys 4 blocks of 5 storey residential flats and
3 two-storey strata landed houses
Unit mix 1 bedroom: 57 units
1 bedroom + study: 10 units
2 bedroom: 11 units
2 bedroom premium: 21 units
3 bedroom: 19 units
3 bedroom premium: 29 units
4 bedroom: 20 units
Strata landed house: 3 units
Total: 170 units
Architect DP Architects Pte Ltd
Landscape architect Coen Design International Pte Ltd
Number of carparks 170 carpark lots and 3 handicap lots

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The inspiration of Verandah Residences was colonial-style villas built at the turn of the previous century. These were used to house colonial officials.

These stately homes, with their distinctive black painted timber beams and white-washed walls, were also balled “black and white bungalows”.

What made these black and white bungalows distinctive, were the presence of many tropical and local design elements.

Large verandahs at the front and sides were its signature feature. Broad overhanging
sloping roofs offered shade from the sun, while high ceilings, balconies, louvered windows and open interior spaces encouraged natural air flow and kept the house cool.

Now, these black and white bungalows are highly-coveted, due to their scarcity owing to urban redevelopment. They are also very much desired for their charm, for these bungalows evoke a nostalgic longing for the romance and elegance of a bygone era.

verandah residences black and white bungalows

verandah residences cover

Verandah Residences location

Verandah residences is located at 225 to 231C Pasir Panjang Road while the show gallery is at South Buona Vista Road.

Verandah Residences showflat and projectsTo get to Verandah Residences showflat by car, turn in to South Buona Vista Road, go straight ahead for 50m and turn right to showflat.

If you’re taking the bus, take service 200, alight at South Buona Vista and walk 1 min to the showflat.

Use this Google Maps Link to get to the showflat, and the Verandah Residences site itself.

Verandah residences showflat

Verandah Residences Floor Plans

Verandah Residences consist of a mix of 1 to 4 bedroom units and strata landed units.

A select few floors plans of each type of unit is shown.

1 bedroom 463 sqft

Verandah residences 1 br1 bedroom + study 603 sqftVerandah residences 1 br study2 bedroom 646 sqftVerandah residences 2 br2 bedroom premium 689 sqftVerandah residences 2 br premium3 bedroom 969 sqftVerandah residences 3 br3 bedroom premium 1,001 sqftVerandah residences 3 br premium4 bedroom 1,249 sqftVerandah residences 4 brStrata Landed house 2,174 sqftVerandah residences strata terrace

The unit mix is as follows.

Verandah Residences Unit Type No of units
1 bedroom 57
1 bedroom + study 10
2 bedroom 11
2 bedroom premium 21
3 bedroom 19
3 bedroom premium 29
4 bedroom 20
Strata landed 3

All of the units are minutes walk from 2 MRT stations – Haw Par Villa and Pasir Panjang, a short drive from Vivocity, Sentosa and Mount Faber Park and 5 minutes from Science Park, NUS/NUH and Mapletree Business City.

Please see the following for Verandah Residence’s diagrammatic chart.

Starting from Units 1 to 34, a mix of 1 bedroom to 4 bedroom and strata landed houses are offered.

  • 225 Pasir Panjang Road – Unit 1 to 9. Consisting of 1 bedroom, 2 bedroom, 3 bedroom premium and 4 bedroom units
  • 227 Pasir Panjang Road – Unit 10 to 17. Consisting of 1 bedroom, 1 bedroom + study, 2 bedroom premium, 3 bedroom, 3 bedroom premium and 4 bedroom units
  • 229 Pasir Panjang Road – Unit 18 to 25. Consisting of 1 bedroom, 1 bedroom + study, 2 bedroom premium, 3 bedroom, 3 bedroom premium and 4 bedroom units
  • 231 Pasir Panjang Road – Unit 26 to 34. Consisting of 1 bedroom, 2 bedroom, 2 bedroom premium, 3 bedroom premium and 4 bedroom units
  • Strata Terrace House – 231A, B and C

verandah residence diagrammatic chart 1 verandah residence diagrammatic chart 2

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Verandah Residences pricing

1+STUDY and 2BR FULLY SOLD! Contact us for drop out units below!

Type Size Price starting from
1BR 463sqft from S$878K
3BR Classic 936sqft from S$1.608M
3BR Premium 1,001sqft from S$1.78M
4BR 1,249sqft from S$2.196M

Contact us to register interest and stay updated on the Verandah Residences at Pasir Panjang.

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Selling points

Some of the selling points of Verandah Residences built by Oxley include

  • Haw Par Villa MRT is within 5 mins walk
  • Rare freehold development with black & white colonial concept
  • Fully functional layout without bay windows and planters
  • Situated in prime location of district 5 (Core Central Region)
  • Well connected by major expressways Ayer Rajah Expressway (AYE), Pan Island Expressway (PIE0, Bukit Timah Expressway (BKE) and West Coast highway.
  • Huge tenants pool Science Park, NUS, NUH, Japanese Schools, Alexandra Business Centre, PSA and Jurong Gateway.
  • 10 mins drive to CBD, Orchard, Restorts World Sentosa and Marina Bay Sands
  • 5 mins drive to NUS
  • 4 mins drive to Science Park 2
  • 24 hour amenities with minutes walk (famous prata shop, Macdonalds, 7-11 etc)
  • Surrounded by shopping belts within 5 mins drive e.g. West Coast Plaza, ARC, Vivocity
  • Close to educational institutions (UWCSEA, Japanese School, ACS independent, Singapore Polytechnic, NUS – Pre-school to University)

Reconstruction of traditionverandah tradition reconstructionEnjoy Verandah Livingverandah living

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Verandah Residences Site Plan

verandah residences facilities plan

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Verandah Residences Facilities

Verandah Residences has many recreational facilities that are befitting of a modern and upscale condominium project.

The facilities include

  1. Function room
  2. Swimming pool (40m)
  3. Reflective pond
  4. Water feature
  5. Aqua gym
  6. Jacuzzi
  7. Gym
  8. Outdoor showers
  9. Lawn terrace
  10. Changing rooms
  11. Dining and BBQ pavilion
  12. Kid’s pavilion
  13. Kid’s pool
  14. Playground
  15. Sand pit
  16. Chess deck
  17. Yoga deck
  18. Sky lounge

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Verandah Residences Gallery

Verandah Residences panoramic view

Verandah residences pano view

Artist impression of view from main road

Verandah residences (3)

Artist impression of third storey viewVerandah residences (4)

Verandah residences (5)

Redefining colonial modernism

Tropical splendourSwimming poolDining and BBQ pavilionVerandah Residence poolside gymSky loungeMinutes away to modern amenities

600m to Haw Par Villa MRT station, 2 mins drive to Kent Ridge Park, 2 mins drive to Mapletree Business City, 5 mins drive to one-north, 6 mins drive to Vivocity, 12 mins drive to CBD, 3 mins drive to Singapore Science Park, 4 mins drive to NUS, 6 mins drive to United World College, 8 mins drive to Nan Hua Primary, 8 mins drive to ACS independent, 5 mins drive to The Japanese School

Neighbourhood guide

Verandah residence neighbourhood guideFood TrailVerandah residences food trail Verandah residences food trail 1 Verandah residences food trail 2 Verandah residences food trail 3Southern Ridges Walking TrailVerandah residences southern ridgesParks and RecreationVerandah residences southern ridges 1 Verandah residences southern ridges 2 Verandah residences southern ridges 3 Verandah residences southern ridges 4Heritage TrailVerandah residences heritage trailMalls and ShopsVerandah residences malls and shops Verandah residences malls and shops 1

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Nearby amenities

Around Verandah Residences (built by Oxley at Pasir Panjang) are a number of shopping malls, MRT stations, educational institutions and more that provide great convenience to residents.

Supermarkets/Markets

  • NTUC ARC: 2.4km and 4 mins drive
  • Sheng Siong Supermarket: 4.2km and 7 mins drive
  • West Coast wet market: 4.5km and 7 mins drive
  • Cold Storage (West Coast Plaza): 4.5km and 7 mins drive

Shopping malls

  • Viva Vista Mall: 0.2km and 19 sec drive
  • Alexandra Retail Centre: 2.3km and 4 mins drive
  • Clementi Mall: 2.4km and 4 mins drive
  • West Coast Plaza: 4.5km and 7 mins drive
  • Holland village: 4.9km and 7 mins drive
  • Vivocity: 5.7km and 9 mins drive
  • Orchard Ion: 12.5km and 16 mins drive
  • Bugis Junction: 12.2km and 16 mins drive
  • Marina Bay Sands: 13.2km and 17 mins drive

Educational institutions

  • ACJC: 3.6km and 5 mins drive
  • ACS Independent: 4.1km and 7 mins drive
  • United World College of South East Asia (Dover): 4.1km and 7 mins drive
  • NUS: 4.7km and 8 mins drive
  • Singapore Polytechnic: 6.3km and 10 mins drive
  • Waseda Shibuya Senior High School: 3.1km and 5 mins drive
  • The Japanese Primary School: 3.6km and 6 mins drive
  • The Japanese Secondary School: 5.2km and 7 mins drive
  • Tanglin Secondary School: 6.1km and 8 mins drive
  • Kent Ridge Secondary School: 6.1km and 8 mins drive
  • Nan Hua High School: 5.7km and 8 mins drive
  • Fairfield Methodist School (Primary): 3.3km and 5 mins drive

Markets and food centres

  • 99 Buona Vista Kitchen Pte Ltd: 0.33km and 4 mins walk
  • Fong Seng Nasi lemak: 2.6km and 4 mins drive
  • Seah Im Food Centre: 4.0km and 7 mins drive
  • Telok Blangah Market: 6km and 10 mins drive

Other amenities

  • Singapore Science Park: 2.1km and 4 mins drive
  • National University Hospital: 2.3km and 4 mins drive
  • Fusionopolis: 3.6km and 5 mins drive
  • Metropolis: 4km and 6 mins drive
  • Sentosa: 8.9km and 15 mins drive
  • Shenton Way: 10.5km and 13 mins drive
  • St James Power Station: 11.9km and 17 mins drive

Parks

  • West Coast Park: 6.9km and 9 mins drive
  • Kent Ridge Park: 1.4km and 3 mins drive
  • Telok Blangah Hill Park: 4.9km and 8 mins drive
  • Mount Faber Park: 6.7km and 11 mins drive
  • Keppel Bay: 4.2km and 7 mins drive

Bus services

  • 10, 30, 51, 143, 188, 200, 200A

Star Vista

Verandah Residences is a short drive from Star Vista, one of the more notable and popular malls in the West Coast area.

The Star Vista is an urban retail sanctuary set within a uniquely integrated and natural environment. It is Singapore’s first naturally cooled mall and residents of Verandah Residences have easy access to Star Vista via Alexandra Road and Commonwealth Avenue.

The Star Vista is part of a 15-storey mixed development built in Vista Exchange, one-north precinct. The integrated hub comprises a Civic and Cultural Zone anchored by a 5,000-seat Auditorium, as well as a Retail and Entertainment Zone. Strategically located next to Buona Vista MRT Interchange, the Star vista is well connected to 2 train lines and easy access to major roads and expressways. The integrated hub will serve the needs of more than 400,000 residents, students and working population in the immediate vicinity.

Verandah residences star vista

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Vivocity

Verandah Residences at Pasir Panjang is also located near Vivocity.

Vivocity is Singapore’s largest shopping mall and located in the Harbourfront precinct of Bukit Merah.

Positioned as a first of its kind one-stop retail, entertainment and lifestyle destination, Vivocity is an iconic detination.

The name Vivocity captures Mapletree’s vision for the development and is derived from the word vivacity.

The word evokes a lifestyle experience that is modern, stimulating and accessible to everyone.

Residents of Verandah Residences at Pasir Panjang road will be able to enjoy access to Vivocity for their one stop shopping, entertainment and lifestyle needs.

Verandah residences vivocity

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Labrador Nature Reserve

A short distance from Verandah Residences is Labrador Nature Reserve.

Built on the edge of the secondary forest with a prime vantage point of the cliff-side vegetation and a picturesque view of the sea, Labrador Nature Reserve is an oasis of tranquillity and natural wonders. Thriving with wildlife, the park is a favourite haunt of nature lovers. It is not uncommon for visitors to hear songs from a variety of bird species, including those of the Oriental Magpie-robin and Black-naped Oriole. Take a leisurely stroll along one of the nature trails, and you may spot the resident squirrels scurrying up trees. Labrador Nature Reserve is part of the Southern Ridges, which also comprises Mount Faber Park, Telok Blangah Hill Park, and Kent Ridge Park.

For those who do not want to stay home in Verandah Residences, some things to do at Labrador Nature Reserve both on a weekday and weekend include bird watching, sightseeing, photography, barbecuing, dining & picnics, exercise & working out and fishing.

All these activities are available to residents of Verandah Residences near Pasir Panjang as Labrador Nature Reserve is about a 5 min drive away.

Labrador nature reserve verandah residences

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Kent Ridge Park

Kent Ridge Park is also another fantastic destination near Verandah Residences.

A historical park where one of the last battles for Singapore was fought during World War II, Kent Ridge Park is a great place for families and history buffs to learn about the heritage of our nation. Relive the history of World War II at the “Reflections Bukit Chandu” museum, located at one end of Canopy Walk.

Celebrate the end of civil strife by visiting the commemoration plaque at Carpark B, which was erected to mark the 50th anniversary of the end of World War II. If you are a fitness enthusiast, warm up at one of the 20 fitness stations located around the park before going for a jog on the tracks. Featuring natural vegetation and a high biodiversity of wildlife, Kent Ridge Park is also a favourite of nature lovers.

On the eastern side of the park towards the valley is a natural pond teeming with turtles and fish. Walk along Canopy Walk – an elevated boardwalk measuring 280-metres long linking HortPark to Kent Ridge Park – and you may just be able to catch sight of sunbirds, doves, squirrels, lizards, and white-crested laughing thrush.

With groves of Tembusu, Adinandras and Dillenias, you’ll hear the chirps of birds and the hums of insects as you stroll along the meandering paths of the park towards the two ponds at the foot of the ridge. Alternatively, take in magnificent views of off-shore islands such as Pulau Duran Darat from the various look-out points. Kent Ridge Park is part of the Southern Ridges, which also comprises Mount Faber Park, Telok Blangah Hill Park, HortPark and Labrador Nature Reserve.

Verandah residences kent ridge park

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Alexandra Hospital

In terms of healthcare, Alexandra Hospital is about a 5 min drive from Verandah Residences. Located along Alexandra Road and Queensway, the hospital will be a handy place to go if one falls ill and needs emergency attention.

Verandah residences alexandra hospital

National University of Singapore

One attractive feature of Verandah Residences, besides being near West Coast Park, is its proximity to NUS.

NUS is one of Singapore’s premier institute of higher learning and has research and academic capabilities that are one of the best in the world.

For investors in Verandah Residences, there is potential for units in the development to be leased out to staff, workers and researchers of NUS. Located only a short 3 to 5 min drive from NUS, Verandah Residences will appeal to renters who are looking to stay not too far and yet not too near their workplace/school.

Verandah residences NUS

Oxley Holdings Developer

Oxley Holdings is the developer of Verandah Residences. With a long history of developing property around Singapore and the region, Oxley Holdings is set to deliver a fantastic product in the form of Verandah Residences. Some of Oxley’s previous projects include Oxley Tower, The Rise @ Oxley, Floraville, The Commerze @ Irving and Oxley Bizhub among many others.

Besides Singapore, Oxley Holdings has extensive experience in the United Kingdom, Ireland, Cambodia, Malaysia and Indonesia among other countries.

Oxley holdings track record verandah residences

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Contact us regarding Verandah Residences

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Park Colonial condo at Woodleigh by CEL

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park colonial logo

Park Colonial at Woodleigh is an upcoming condominium slated to be launched by CEL.

Use the following quick navigation content page or contact us immediately to register your interest in Park Colonial.

Those who register early will get a developer discount.

Quick Navigation

  1. Condominium summary
  2. Condominium location
  3. Unit mix
  4. Floor plans
  5. Pricing
  6. Showflat location
  7. Site plan
  8. Gallery
  9. Condominium facilities
  10. Surrounding amenities i.e. Transport, education, healthcare, shopping/entertainment and outdoor/fitness amenities
  11. Government masterplan
  12. Macro-environment: Global and Singapore house prices; supply; vacancy
  13. Micro-market environment: Supply; rents and yields; prices
  14. Interest rates
  15. Other purchase details
  16. Site background
  17. Developer background
  18. Contact us/register interest
  19. Other project information

Condominium summary

Development name Park Colonial
Developer Chip Eng Seng, Heeton Holdings and KSH Holdings
Address 2, 4, 6, 8, 10, 12 Woodleigh Lane
Tenure 99 years starting from 11 Oct 2017
District 13
Site area 210,404 sqft
Gross floor area 631, 212 sqft
No of units 805 apartment units
Car park lots 644 lots (including 5 handicap lots)
Units
1 bed 463 sqft, 153 units, 19%
1 + study 506 sqft, 14 units, 2%
2 bed classic 570 to 635 sqft, 157 units, 20%
2 bed deluxe 635 to 678 sqft, 132 units, 16%
2 + study 667 sqft, 28 units, 4%
2 bed dual key 743 sqft, 15 units, 2%
3 bed classic 915 to 980 sqgt, 146 units, 18%
3 bed deluxe 1,012 to 1,066 sqft, 71 units, 9%
4 bed classic 1,184 to 1,249 sqft, 30 units, 4%
4 bed deulxe 1,367 to 1,410 sqft, 30 units, 4%
5 bed luxury 1,712 sqft, 29 units, 4%
Total 805 units
Appliances Bosch and Whirlpool
Sanitary Ware Roca
Sanitary Fittings Grohe
TOP July 2022
Plot ratio 3.0
Legal completion July 2025

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Condominium location

Park Colonial condominium by CEL is located on the Eastern side of Woodleigh MRT.

Woodleigh MRT is on the North-Eastern purple line.

Park colonial location

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Unit mix

Park Colonial will offer a mix of 1 to 5 bedroom units.

Park colonial unit breakdown

Many of the units will have a view of either Youngberg Terrace, the landed properties and Woodleigh Park to the North.

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Floor plans

Park Colonial will offer units that have a modern and efficient layout for your storage and space needs.

Never worry about running out of space or living in cramped quarters anymore.

Check out Park Colonial’s brochure and floor plans at this link.

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Pricing

Pricing for Park Colonial at Woodleigh is as follows. These are the best buys/cheapest units available for each bedroom type

Type Size Pricing starting from
1BR 463sf S$793K
1+Study 506sf S$932K
2BR Classic 603sf S$1.047M
2BR Deluxe 678sf S$1.183M
2BR Dual Key *hot* 743sf S$1.363M
2+Study 667sf S$1.232M
3BR Classic 915sf S$1.462M
3BR Deluxe 1023sf S$1.649M
4BR Classic 1,184sf S$2.098M
4BR Deluxe 1,367sf S$2.259M
5BR 1,701sf S$2.78M

Contact us to find out more about this great project that is literally at the doorstep of Woodleigh MRT.

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Showflat location

Park Colonial’s showflat is located right beside the actual site, and near Woodleigh MRT station.

park colonial showflat location

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Site plan

Information to be released shortly.

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Gallery

Park colonial Park colonialPark colonial gallery photos (2) Park colonial gallery photos (3) Park colonial gallery photos (1)

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Condominium facilities

Park Colonial will offer full condominium facilities such as swimming pools, tennis courts, fitness corners, reading rooms and more.

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Surrounding amenities

The following section will give you an idea of the transport, education, healthcare, shopping/entertainment and fitness/outdoor amenities around Park Colonial at Woodleigh.

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Transport

Directly outside Park Colonial is the Woodleigh MRT station.

You can easily access Punggol at the Northern end of the line or Harbourfront MRT at the southern end.

In the middle, the line cuts through Dhoby Ghaut MRT staion, offering you unparalled convenience to the Circle (Orange) and North South (Red) lines.

Should you decide to take the bus, there is a bus stop at the MRT station.

Bus services here include 13, 100, 107, 107M, 133, 135, 147, 155, 853 and NR6.

For drivers, the PIE and CTE exits are about 5 mins drive away, offering you immediate driving access to central Singapore and various parts of the island.

park colonial expressway connectivity

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Education

According to OneMap, these are the following primary schools within a 2km radius.

Within 1km

  • Cedar Primary
  • Maris Stella High School
  • St Andrews Junior School

Within 2km

  • Bendemeer Primary School
  • Canossa Convent Primary School
  • First Toa Payoh Primary School
  • Kuo Chuan Presbyterian Primary School
  • Paya Lebar Methodist Girls’ School
  • Pei Chun public school
  • St Gabriel’s Primary School
  • Yangzhen Primary School

There will be no lack of educational institutions available for investors and residents of Park Colonial.

Other secondary schools, institutes of higher education/learning, private and international schools include the following

Secondary schools:

  • Cedar Secondary School
  • St Andrew’s Secondary
  • Maris Stella High School
  • St Gabriel’s Secondary School
  • Zhonghua Secondary School

Higher education:

  • St Andrew’s JC
  • Nanyang JC

Private and international schools:

  • Stamford American International School
  • James Cook University

Other educational facilities nearby include:

  • Toa Payoh public library
  • Serangoon public library

park colonial schools within 1 or 2km

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Healthcare

There is no lack of healthcare options for residents of Park Colonial with the upcoming Biddadari neighbourhood.

In any case, the established town centres of Serangoon and Toa Payoh are nearby.

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Shopping/entertainment

Popular shopping malls near Park Colonial at Woodleigh include:

  • Upcoming Nex Shopping mall just across the street
  • Nex at Serangoon
  • Heartland Mall at Kovan
  • HDB Hub at Toa Payoh
  • In just a few MRT stops, the Dhoby Ghaut, Somerset and Orchard area is reachable from Park Colonial

Other popular entertainment places include

  • Playgolf Game Centre Golf Range

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Outdoor/fitness amenities

For fitness buffs, there is no lack of fitness and exercise areas around Park Colonial at Woodleigh (by CEL).

Some of them include

  • Toa Payoh Stadium, sports hall and swimming complex
  • Toa Payoh Town Park
  • Upcoming Biddadari Park (integrated with memorial garden)
  • Serangoon stadium
  • Kallang Riverside park leading all the way south to Marina Bay and the sports hub

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Government masterplan

According to various news sources, Biddadari is shaping up to be a popular district in Singapore’s future property landscape.

Once known for its cemetry grounds, Biddadari is being transformed into a new HDB town that will be fully completed by 2019 or 2020.

Since the launch of the first batch of flats, subsequent launches in 2016 attracted many potential buyers.

Biddadari 1
Green lung complemented by a lake is centrally located

Biddadari is close to good schools such as St. Andrews Secondary and Maris Stella High School are nearby as well. Other education institutions include Stamford American International School, and James Cook University.

Mention very big scale masterplans e.g. Punggol digital district, Jurong second CBD, Kallang Riverside, Woodlands development, Paya Lebar area etc.

Biddadari

The locational attributes, along with the government’s push toward a car-lite society will benefit many future residents of the town.

According to the 2014 Urban Redevelopment Authority (URA) Masterplan, the Bidadari estate will be designed with a garden-like setting where a 10-ha Bidadari Park will be built in the estate to promote green, community spaces.

There are also plans to convert part of Upper Aljunied Road (from Upper Serangoon Road to Vernon Park) into a heritage walk for pedestrians.

As for development of amenities near Bidadari, the government plans to make Bidadari estate into a cycling and pedestrian-friendly town.

The estate will also be equipped with a new commercial development next to Woodleigh MRT station, a bus interchange, a neighborhood police centre and other community facilities located nearby.

The estate will also have various places of worship, health, and medical facilities located within reach of each other to cater to the residents’ needs.

Source: Propertyguru

Connectivity in the area is also likely to improve, with the Today reporting that 3 new roads in Biddadari have been opened since 14 Jan 2018.

Here is a video (2 mins 40 sec) from Today showing a fly through of Biddadari.

Spaces for the community

A vibrant Market Square, located next to Woodleigh MRT Station, will include a housing development integrated with a bus interchange and community facilities, as well as a mixed-use development.

Bidadari Park with Alkaff Lake and Heritage Walk
Bidadari Park with Alkaff Lake and Heritage Walk

Bidadari residents can enjoy a green environment, and the convenience of more facilities and better connectivity. Park and connect to other public spaces within Bidadari, keeping its present park-like ambience

biddadari green fingers
Biddadari green fingers

The Bidadari Greenway will traverse the full length of the estate from Bartley Road to Upper Serangoon Road.

A cycling and pedestrian network has been mapped out, much of which would run through the green corridors, the Bidadari Greenway and the Bidadari Park, enabling the residents to safely cycle and walk around the estate.

Precinct shops and communal facilities will also be strategically located along the Bidadari Greenway to serve the residents and to inject greater vibrancy to the estate.

Biddadari greenway
Biddadari greenway

Future development

A future development, comprising public housing, integrated with a bus interchange, food centre, and social community facilities, will be located at the centre of Bidadari estate.

The development will connect to Woodleigh MRT Station

biddadari future developmentSources: HDB

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Macro-environment

The following sections will provide a snapshot on the global and Singapore’s property market health.

Global house prices

According to The Economist, Singapore’s house price is relatively lower compared to major economies around the world.

Singapore economist house price

 

According to IMF’s quarterly report, Singapore’s house prices also registered negative year on year changes.

This is lower than many other countries around the world.

IMF Singapore

On a relative basis therefore, Singapore property is actually affordable.

Investors looking for value in their property and real estate investments are unlikely to go wrong to consider Singapore, seeing as the run up in prices isn’t as drastic as neighbouring economies such as Hong Kong.

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Singapore house prices

According to URA’s property price index, the residential property market saw a price decline of 15 quarters since 2013.

Prices have started to turn up since the middle of 2017.

URA ppi singapore house price

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Islandwide supply

Based on URA’s statistics, the amount of future property supply is peaking in 2018 and then falling thereafter.

What this means for prices is that there will be support going forward since supply will be depressed.

Home buyers would do well to consider a property investment right now in the light of possible price increases in the next 2 to 3 years.

URA low property supply

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Islandwide vacancy

Supporting the anticipated increase in prices, the Outside Central Region is seeing one of the lowest vacancy levels over the last 4 years.

At a level of 5.9%, vacancy is far below the peak of 9.6% recorded in 2Q2016.

What this means for investors or purchasers is that it will be easier to find tenants in such a landlord’s market, and there may be opportunities to increase the rental in a well renovated house.

URA vacancy

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Micro-market environment

The following sections will provide a snapshot of the micro-market health where the Park Colonial at Woodleigh is situated.

Supply

In terms of future completions, there is not much in district 13 and this is likely to lend support to landlords when they rent out an investment unit at Park Colonial.

Based on Squarefoot data, only The Poiz Residences is expected to TOP in 2019. Thereafter, there will be no more new developments for the year.

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Rents and yields

Rental yields for properties surrounding Park Colonial at Woodleigh are about 2.4 to 3.4%.

New projects in the area such as Park Colonial could expect higher rental yields given the new-ness factor and the better location (right beside Woodleigh MRT).

Project Rental yield %
Avon Park 2.4
8 @ Woodleigh 3.4
Blossoms @ Woodleigh 2.6
Euro-Asia Park 2.7
Parc Mondrian 2.8

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Prices

In district 13 where Park Colonial is located, latest transacted prices stand at S$1,339 psf.

This is a 47% increase since Mar 2010.

We can expect that prices could continue to rise as the Woodleigh and Biddadari area begins to be heavily developed.

District 13 non landed price trend

District 13 non landed prices
District 13 non landed prices

For projects around Park Colonial, resale prices over the last 12 months have registered between S$1,000 to S$1,283 psf.

Some of the projects include:

Project Price psf S$
Avon Park 1,186
8 @ Woodleigh 1,283
Blossoms @ Woodleigh 1,218
Euro-Asia Park 1,001
Parc Mondrian 1,196

How condo prices surrounding the development has moved – to show that prices are continuing to go upwards

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Interest rates

Interest rates continue to remain low. At 1.7% for the 12 month SIBOR, rates are in line with the level over the last 1-2 years.

This means that investors can lock in a relatively cheap loan if a purchase is made today.

Interest rates are not expected to fall much further in the future given its already low levels.

It may also not be likely to rise unless the Fed in the US sees much stronger growth that warrants a monetary policy response.

SIBOR rates

 

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Other purchase details

Usual restrictions such as LTV and ABSD remains for buyers. Speak to us to find out more and for us to help you plan on getting the condominium of your dreams.

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Site background

A unit of Chip Eng Seng Corp and Unique Real Estate has put in the top bid for a plum site in Woodleigh Lane.

The Government land sales site tender attracted 15 bidders – close to what analysts had predicted – with offer amounts exceeding expectations.

The 99-year leasehold site launched on May 30 under the confirmed list for the first half of this year drew a top bid of $700.7 million from CEL Unique Development, which is 60 per cent owned by Chip Eng Seng Corp, and 40 per cent by Unique Real Estate.

Unique Real Estate is a joint venture of Heeton Holdings and KSH Holdings units.

The land is next to Woodleigh MRT station, adjacent to Bidadari New Town and near amenities such as Nex shopping mall.

The 19,547 sq m site has a maximum gross floor area of 58,641 sq m.

Woodleigh GLS bid

Mr Ong Teck Hui, national director of research and consultancy at JLL, said: “The bidding war for residential sites has escalated further in this tender, driven by bidders’ determination to secure this attractive site in a market that is potentially recovering.”

He noted that about half the bids were above expectations, with the top four within a tight 3.6 per cent margin.

Mr Nicholas Mak, head of research and consultancy at ZACD Group, said many bids were aggressive, “despite the large size of the site and the heavy financial commitment required”.

About one-third of the 15 bids were above $1,000 per sq ft per plot ratio (psf ppr). Dr Lee Nai Jia, head of research at consultancy Edmund Tie & Company, was not surprised, given that the parcel is in a highly attractive location.

“Depending on how the development orientates itself, residents will enjoy unblocked views as the site is adjacent to the landed housing area,” he added.

Based on the land bid, he expects the selling price of the proposed development to range from $1,720 psf to $1,800 psf.

However, Ms Christine Li, director of research at Cushman & Wakefield, noted that such selling prices are not supported in the vicinity, and the plot could face some competition from the mixed-use site in Bidadari estate secured by entities linked to Singapore Press Holdings and Kajima Development.

Source: Straits Times

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Developer background

Since 2000, CEL has been actively acquiring sites for property development and investment.

These developments include residential, commercial and industrial properties. The current portfolio of CEL includes mid-market and high-end prime properties. CEL believes in growth through partnerships.

It has established joint ventures with reputable foreign funds such as Lehman Brothers Real Estate Partner II and Citadel Equity Fund Ltd.

CEL has also teamed with local partners like NTUC Choice Homes Co-operative Ltd and Keppel Land Limited on several highly successful property projects.

Going beyond local boundaries, CEL has launched an expansion into the emerging regional economies, beginning with Vietnam, where it is actively seeking property development opportunities. It is also exploring other markets in South East Asia.

Source: CEL

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Property news round up 11 Mar 2018

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dining room singapore

Surbana Jurong guns for S$3.8b in fees in 3-5 years; eyes two architectural firms

THE goal posts for Surbana Jurong have just moved by a notch, after initial targets were exceeded earlier than planned on the back of successive acquisitions.

Still on a prowl for more acquisitions, the urban and infrastructure consultancy is now aiming for S$3.8 billion in revenue and 20,000 employees globally in the next three to five years.

Meeting these targets will signal a more-than-doubling of revenue from S$1.5 billion as at end-2017 and a jump in staff strength from more than 13,500 employees currently.

SingHaiyi aims to build branding as a Singapore company

SINGAPORE-LISTED SingHaiyi Group is well-aware of industry perception of the group as a foreign-owned developer and hopes to change that with its upcoming residential projects on the collective sale sites that it recently secured.

While looking to build its branding in property development with an emphasis on product quality, it will also continue its diversification from residential projects to commercial development here and abroad.

The group is studying the Australian and European markets, where it has gained an exposure through a 9 per cent stake in Australia-listed Cromwell Property Group that is collectively held by SingHaiyi and its parent Haiyi Holdings.

Changes to parking provisions in private buildings proposed

MOTORISTS of the future will have more reason to leave their cars at home, with a proposed change to parking provisions in private buildings that will also free up land for other uses.

If accepted, the Land Transport Authority (LTA) will be able to more finely calibrate the amount of parking provided through a cap, the authority said on Monday.

Private developments in future “car-lite precincts”, for instance, may have less available parking, but more connectivity to public transport and alternative options such as walking and cycling.

Booking website RedDoorz launches its first fully leased and run hotel

A SINGAPORE-BASED web platform that markets hospitality spaces is venturing into brick and mortar as part of efforts to transform the hospitality industry in South-east Asia.

RedDoorz, which runs a budget accomodation booking website, has expanded into directly leasing and operating hotels.

It recently launched its first, fully-leased and -operated hotel property in Singapore as part of a long-term strategy to provide predictable, consistent customer experiences, as well as to “grow deeper in the hospitality value chain”.

The target is to open 100 such hotel properties across the region this year, with its second one launching in Indonesia as early as May, The Business Times has learnt.

Chip Eng Seng sees opportunity in education sector

CONSTRUCTION and property group Chip Eng Seng Corporation has proposed a diversification of its business by venturing into the education sector.

It said on Monday that it hoped to construct, own, and operate educational facilities and schools as well as manage their programmes.

For a start, it plans to focus on growing this proposed business in the Asia-Pacific region, but will consider expanding globally when the opportunity arises.

KSH, Lian Beng and Heeton unveil plans for Geylang plot

PROPERTY companies KSH Holdings, Lian Beng and Heeton Holdings on Monday said that their joint venture has completed the acquisition of odd-number properties 31 to 51 along Lorong 24 Geylang for S$60 million.

KSH Holdings owns the lion share in the JV at 48 per cent, followed by Lian Beng (42 per cent) and Heeton Holdings (10 per cent). The properties have a combined land area of about 2,432 square metres.

The vendor is an independent and unrelated third party.

Nicon Gardens up for sale for at least S$110m

NICON Gardens, a 99-year leasehold strata landed development located at Choa Chu Kang Road, will be launched for collective sale this Thursday, with owners expecting at least S$110 million.

Its appointed marketing agent ERA Realty said that the collective sales committee is expecting strong interest from developers as there have not been any government land sales for landed housing in Singapore over the past few years, especially in the vicinity.

The development currently consists of 47 units of townhouses, with each unit expected to yield sale proceeds of S$2.3 million based on the reserve price.

Singapore Budget 2018: Built-environment sector to get leg-up from research funds and Build-SG office

PLANS are afoot to raise the capabilities of local construction players by roping in industry and the research community to help transform the built-environment (BE) sector through research funds and helping local firms to internationalise.

The Ministry of National Development (MND) and its partner agencies will launch a series of calls for research ideas under the “Cities of Tomorrow R&D” programme over the next few months, committing up to S$40 million in research funds.

Bigger supply of HDB flats with shorter waiting time

TO HELP more young couples buy their first home, the Housing Board will double the number of flats it offers in 2019 to shorten their waiting time.

It will also let them apply for a flat and defer the assessment of their income for the unit to nearer the time they collect the keys.

This would let them get their flats earlier while they build up their finances, National Development Minister Lawrence Wong said on Tuesday.

Announcing the moves in Parliament, Mr Wong said the about 2,000 flats to be offered next year will have a waiting time of two to three years compared with the usual three to four years.

Phase 1 of Nim Collection to be launched at average of S$2.8-S$3m

AS the first developer to launch its private residential project this year, Bukit Sembawang Estates is releasing 30 out of 47 units in Phase 1 of its landed development, Nim Collection, with an average price of S$2.8 million to S$3 million.

The launch of the project on Saturday follows a recovery in landed home prices, marked by two quarterly price upticks in the second half of last year.

Located in Nim Road off Ang Mo Kio Ave 5, this project is one of the first to adopt the new “envelope” control guidelines, which offer greater flexibility in the design and configuration of interior space.

Frasers Hospitality aims for 13 properties in Middle East

FRASERS Hospitality announced plans on Thursday to double its Middle East footprint to 13 properties over the next few years as it seeks to capitalise on the growing number of business tourists to the region.

The UAE, Saudi Arabia and Qatar are expected to be the top three business travel markets in the Middle East, Frasers said in a press statement.

Bahrain has also seen a large influx of business tourists due to hosting large events like the World Islamic Banking Conference.

ARA unit to acquire 19.5% stake in Aussie real estate firm

A WHOLLY owned subsidiary of Singapore-based ARA Asset Management will acquire a 19.5 per cent stake in Australian real estate firm Cromwell Property Group for A$405.9 million (S$416.9 million).

ARA will acquire the stake from South African-based real estate investment trust (Reit) Redefine Properties.

The sale will involve about 386.5 million stapled securities at A$1.05 per stapled security.

HDB resale flat prices fell in Feb, but number sold rose

PRICES of Housing Board (HDB) resale flats dipped slightly for the second month running, but the volume of flats sold increased.

February’s prices fell 0.6 per cent compared with January prices, according to SRX flash estimates on Thursday.

January prices had also fallen 0.5 per cent from last December’s prices. However, there was a 9.6 per cent increase in resale flats sold last month – from 1,090 units to 1,195 units.

Shophouse deals gain momentum in Jan-Feb

THE Singapore shophouse market has had a good start to the year in terms of transactions volume with deals in places like Tanjong Pagar and Mosque Street in the CBD to Tanjong Katong Road and Joo Chiat Road

Prices are also holding well, if not appreciating, amid a dearth of new listings, say industry watchers.

In the first two months, 26 caveats totalling S$220.8 million were lodged for purchases of shophouses island-wide, based on CBRE’s analysis of URA Realis caveats data as at March 5.

For the whole of last year, the tally was 148 caveats amounting to just over S$1 billion – a jump from the 107 caveats totalling S$707.1 million in 2016.

Ng brothers are Singapore’s top billionaires: Forbes

REAL estate barons Robert and Philip Ng have retained their No 1 spot as the top billionaires in Singapore, with a combined net worth of US$10.8 billion, in financial magazine Forbes’ 32nd annual ranking of the world’s billionaires.

Their net worth is up from the previous year’s US$9.4 billion.

Four residential sites launched for sale by tender

FOUR more residential sites have been placed on Singapore’s burgeoning property market – with Asia Gardens along Everton Road leading the way at an asking price of S$338 million.

The other three developments are Park View Mansions near Jurong Lake with an expected price of S$320 million; 27 Moulmein Rise with a reserve price of S$110 million; and Katong Omega Apartments with an indicative price of S$41 million.

According to Edmund Tie & Co (ET&Co) which is marketing the collective sale of Asia Gardens, the asking price of S$338 million works out to a land rate of S$1,675 per square foot per plot ratio (psf ppr), or S$1,523 psf on the maximum potential gross floor area (GFA), including the 10 per cent bonus balcony area.

Sasseur Reit cornerstone investors include JD.com and YCH boss

E-COMMERCE giant JD.com, Singapore’s CKK Holdings which owns the the Charles & Keith group of companies, and Entrepolis, a private investment firm of Robert Yap, the executive chairman of local logistics firm YCH Group, are among the cornerstone investors of Sasseur Reit.

The trust’s preliminary prospectus, lodged on Wednesday, contained no information on pricing or issuance size, but an earlier report in The Business Times, citing a term sheet it had seen, said the initial public offering (IPO) could raise between S$500 million and S$600 million, and Sasseur Reit would have a market cap of S$1 billion upon its debut.

Tanjong Katong bungalow market on a roll

A STRING of large freehold bungalow deals have been sealed in the past few months in the Tanjong Katong area.

These include transactions in Boscombe, Branksome, Lyndhurst, Wilkinson and Arthur roads.

Some of these are old bungalows that were bought by families already living in the area for redevelopment into their new homes.

Among the bigger deals is an old single-storey bungalow on a 12,767 sq ft site in Boscombe Road that is being transacted for S$17.5 million.

This works out to nearly S$1,371 per square foot on the land area of 12,767 sq ft. The buyer is understood to be a family member of Hoi Hup Realty director Wong Sjew Hung.

She and her family already live in the area.

Koh Brothers unit wins bid for Toho Mansion

KBD Ventures, a subsidiary of construction and property developer Koh Brothers, has won the en bloc tender for Toho Mansion on Holland Road for S$120.43 million, or around S$1,805 per square foot per plot ratio.

The freehold site, with an area measuring 4,427.8 sq m and a plot ratio of 1.4, can be redeveloped to a project with potential gross floor area of 6,818.7 sq m, including a 10 per cent bonus balcony area, Koh Brothers said in a filing with the Singapore Exchange early on Friday.

Zoned for residential use under the Urban Redevelopment Authority’s 2014 Master Plan, the plot enjoys enjoys a high development baseline, with no development charge to redevelop the te, said the marketing agent for the site, Edmund Tie & Company, on Friday

Singapore’s strata office market gains momentum

THE strata office market seems to be rousing in the last half a year. While the sales volume and pricing are still lower than the pre-TDSR period of 2013, activity seems to have steadily returned since 2015.

At the peak of its cycle in 2012, property sales of strata-titled offices were at an all-time high with a record S$2.29 billion worth of new and resale strata offices traded – almost three times more than the sale transactions of S$760 million in 2017.

The market then was dominated by a 70-30 ratio of investors to end-users at that point in the cycle.

Ready credit enticed many investors to purchase a slice of the office strata investment market. Developers, egged on by the frenzy, used the opportunity to convert whole commercial floors into strata units, parcelled out for sale to investors.

Goodluck Garden sold to Qingjian for S$610m

GOODLUCK Garden, a 210-unit residential development on Toh Tuck Road, has been sold collectively to the Qingjian Group of Companies for S$610 million.

This is the second-largest en bloc deal to be awarded this year, after Park West’s S$841 million transaction in January.

Based on a potential gross floor area of 46,840.08 sq m, the sale price translates to a land price of about S$1,210 per square foot per plot ratio (psf ppr).

Due to a high development baseline, a development charge will not be payable for the 10 per cent bonus balcony and this will lower the land price to S$1,100 psf ppr.

How to spot condominiums with en-bloc potential

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Eunosville potential en bloc

En bloc fever is upon the Singapore non-landed residential condominium/apartment market again.

Looking for a development with en-bloc potential? Have a fear of missing out?

Going by how land prices have moved in the past, and how developers have bidded, the potential for more en-blocs remains strong.




This en-bloc cycle isn’t the first, the last time the en-bloc fever hit the property market was in the period 2005-2007.

At that point of time, 12,710 en-bloc units were sold with a total value of S$22.3 billion, according to Ms Christine Li, Head of Research at Cushman & Wakefield.

As of writing of this post, Business Times reports that “there were 27 collective sales of residential redevelopment sites and three involving commercial or industrial redevelopment sites in 2017, bringing the total collective sales value to S$8.7 billion. This was a stark jump from 2016, when there were only three residential sites sold collectively for S$1 billion”.

For investors who are keen to jump on the en-bloc bandwagon but do not have a property that has en-bloc potential, how can they get started?

In this post, we scoured the internet and added a few of our original ideas to come up with a list of signs that investors can spot to identify apartments/condominiums that have en-bloc potential.

Rising land and property values in the area

Do you know the saying of “driving while looking in the rearview mirror”?

Investors and developers sometimes fall pray to this behavior when they approach the en-bloc market.

Looking in the rearview mirror when driving

Take a look at the chart below of a certain stock index.S&P500

Has been rising, yes?

Keen to buy into the market in anticipation that it will rise further?

I’m quite sure you’d be leaning on the fence to buy in rather than wait it out.

Let’s see what happened shortly after you had bought into the index.

It dipped.

S&P500 longerI use this as an illustration that everyone, rich, poor, tall, short, investors and developers can fall prey to “driving while looking into the rearview mirror” in their investments.

In the en-bloc market, this manifests itself by developers looking at how prices have shot up in a certain area, such as the central region, thinking to themselves that it will continue to rise, we can’t miss, and we need to enter.

And therefore these developers enter into the market and conduct an en-bloc. They have a Fear Of Missing Out (FOMO).

The key for a regular homeowner like yourself, is to spot the en-bloc potential in the area by looking at how prices have moved.




The movement in prices could portend a move by developers in making an en-bloc sale.

Developers may be thinking to themselves, “prices have risen, and while we don’t know for sure whether it will continue to rise, let’s buy into the market, tear it down and build it up, and by the time we launch the units for sale, cross our fingers and relying on our expert research analysts, prices would still have continued to rise.”

You as a regular homeowner wouldn’t need to take on the development risk. You however would need to piece 1+1 and try to anticipate the developer doing an en-bloc and ride on that potential.

In any case, a trend of rising price would result in developers keeping tabs on a certain location, and investors can use this knowledge to their advantage.

Also read: DC rates and en-bloc deals

Underutilized plot ratio

The URA 2014 masterplan has plot ratios for every piece of land in Singapore.

For example, the following screenshot of Singapore’s CBD shows the various plot ratios (the numbers with one decimal place) of different parcels of land.

URA masterplan plot ratios

Generally, apartments/condominiums where the plot ratio is underutilized has a higher potential for en-bloc.

Eunosville and Shunfu Ville en-bloc

For example, the en-bloc sale of Eunosville saw the developer paying about S$194m in government charges to intensify land use to a gross plot ratio of 2.8 (and to also top up the lease to a fresh 99 years), according to Straits Times.

Another example is Shunfu Ville, where part of the purchase price of $638 million includes a differential premium payable to the state to top up the lease for another 99 years and intensify the land use.

In these two cases (and many others in the market), the existing developments did not fully utilize the plot ratio.

Therefore the was the opportunity for developers to buy over the development, knock it down, and intensify and increase the land use by rebuilding more units than there were so that the plot ratio is maximized.

Also read: Free home reports and how they can help your property investments

Freehold condominiums

Looking at the list of en-bloc sales tracked by Edgeprop, what stands out is the number of freehold condominiums that go through collective sales.

For example, the following screenshot shows a good many developments that went through en-bloc in 2017 had a freehold tenure.

Edgeprop freehold en blocThe same situation can be found in 2016.

Edgeprop freehold en bloc 2016And also in 2007. There were too many to select so the en-bloc deals completed later in 2007 are shown.

Edgeprop freehold en bloc 2007From the above where a larger number of freehold apartments/condominiums relative to leasehold condominiums underwent en-bloc, one can infer that en-bloc developers seem to have an affinity for freehold sites.

EdgeProp’s en-bloc calculator

EdgeProp’s logit regression also pointed out that between Jan 2017 and Mar 2018, freehold projects were 1.75x more likely to go en-bloc than 99-year leasehold projects.

One reason for this is that developers will not be required to pay any lease upgrading premium to top up the lease from, for example, 60 years to 99 years.




Considering that most projects that undergo en-bloc are more than 30 years, the lease upgrading premium may amount to a significant sum for developers.

This amount can be avoided if the project going through a potential en-bloc is freehold in nature.

Also read: Improving Singapore residential market according to Propertyguru’s survey

Many housing choices in the vicinity

There will be a higher chance of an en bloc going through if there is a greater availability of housing in the vicinity.

For residents of the development that may potentially en-bloc, many of them can look around the immediate area for alternative housing, increasing the chances of them going through with the dea.

Low amount of land released by government land sales (GLS) in the area

En-blocs generally happen because developers are hungry for land.

The availability of land is key to the survival of property development companies because it is a raw material for developers to generate revenue, much like flour is raw material for an F&B outlet to produce food to sell.

Since 2013, the amount of land released by the government through GLS tenders has fallen.

This can be seen in the following chart by Colliers.

Colliers low gls supplyWith a reduction in government land supply, Colliers note that the supply is inadequate to meet the strong take-up (demand).

Therefore, with limited GLS offerings, developers are turning to developments with en-bloc potential.

Development is old in age

According to EdgeProp, developments that are older in age have a higher chance of going through en-bloc.

For example, between Jan 2017 and March 2018, the average age of properties that went en-bloc was 31.6 years.

There are a multitude of reasons for why older developments undergo en-bloc, one of which is that older developments require more money to upkeep.

More money has to be spent by the Management Corporate Strata Title to perform maintenance and CAPEX (for larger repair and upkeep) works.

Ultimately, it is the owners paying these monies.




Another reason could be that over time, surrounding plots of land have had their plot ratios lifted and been redeveloped.

If the said development isn’t utilized (because of the passage of time), there is a chance for a developer to en-bloc it.

In addition, the government could have slated the area for rejuvenation and over time, the character of said development is not in line with surrounding buildings.

Also read: The RES exam is getting more difficult to pass with only a 30% passing rate

Few or no resale transactions in the development

One sign that can spell an impending en-bloc sale is the lack of resale transactions in the development.

If there are recent transactions, some buyers would have to pay Seller Stamp Duties (SSD).

If the developer hoping to buy the development on an en-bloc basis, the developer would have to fork out a higher price to ensure none of the owners have negative proceeds.

This would result in a higher price to be paid to present owners, which means developers need to be more aggressive in their underwriting, which is risky.

If the last resale transactions were many years back, none of the owners would need to pay any SSD, and this would be less taxing and onerous on the developer in raising capital to pay off the present owners.

Also read: 8 Hullet condo in the heart of Orchard Road at Somerset (1BR from S$1.8xx)

Rejuvenation of surrounding area

Another reason that may increase the potential for en-bloc of a project is the rejuvenation of developments in the surrounding area.

One of the ways en-bloc help the government is through the renewal and rejuvenation of a neighbourhood.

The risk of development is undertaken by a private developer, they engage the residents, coordinate the activities required to carry through the en-bloc and ultimately help the government renew the neighbourhood.

There is no financial risk to the government at all.

One example of an en-bloc that took place near an area that is slated to be renewed is that of Raintree Gardens.

Sited beside a reserve site and a residential plot that is subject to detailed planing, there is a high chance that URA’s planners will look to develop the area over the coming years/decades.

Raintree gardens URA masterplanFor Raintree Gardens that is older and less well-built, it would look a little out of place once the surrounding areas are built up with swanky and spanking new condominiums over the next 5 to 10 years.

To the West of Raintree Gardens is Kallang which has been earmarked by the government for rejuvenation.

Given it’s riverside position, there is likely to be substantial financial gain for a developer to buy it en-bloc and tout it as a riverfront development as the entire area becomes rejuvenated.

Low number of units in development

According to PropEdge’s logit regression model, smaller developments have a higher success of en-bloc.

For example, between Jan 2017 and March 2018, projects with less than 50 units made up for over half of all succesful en-bloc transactions.

It is not difficult to see why projects with fewer number of units are more likely to undergo en-bloc.

With fewer stakeholders in a decision, it will be easier to achieve the desired 80% to go ahead with an en-bloc.

For other matters such as the consultant’s calculation of en-bloc proceeds, developer’s calculation of how much to offer, cost of engineering and building works etc., these can be done much quicker than a larger project with, for example, more than 500 units.

Also read: Life Sukhumvit 62 – a piece of Bangkok at S$1xxk for 1BR



All about DC rates and en-bloc deals

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Singapore residential property prices

Development charge (DC) rates has been in the news quite recently because of the spate of en-blocs going on around Singapore.

Even though someone may be familiar with the en-bloc market, DC rates may be something new.




DC rates are not something that is thrust into the spotlight but has a big role to play in how present owners of en-bloc’d properties are remunerated, how reserve prices are calculated and how developers make their money.

This post sheds some light on what DC rates are all about, how they figure in an en-bloc process, why the government tweaks the rates up and down and how they can affect you.

What are DC rates?

From URA’s website, the definition of DC rate is as follows –

“Development charge is a tax levied when planning permission is granted to carry out development projects that increase the value of the land (e.g. when a development is rezoned or has its plot ratio increased). The development charge rates are received in consultation with the Chief Valuer at the Inland Revenue Authority (IRAS) every six months (on 1 March and 1 September).”

Other news publications and research analysts covering the property market define DC as

JLL’s Tay Huey Ying: “The DC is a tax that is levied when planning permission is granted to carry out development projects that increase the value of the land.”




TodayOnline: “The development charge is a tax levied on developers when planning permission is granted to carry out development projects that increase the value of land, including rezoning to a higher value use and increasing the plot ratio of the property.”

How do you check DC rates?

DC rates can be checked from URA’s website.

As of writing, the latest DC rates are as of 1 March 2018.

URA dc rates

Alternatively, DC rates are available in a map provided by URA.

To find out the DC rates from the map, go here.

In the left toolbar, go to “Property use and Approval” and click on “Development Charge Rates”

URA dc rates mapAfter clicking through, you will notice that the map has been segmented into various districts by a grey line/boundary.

Click on anywhere in the map and you will see a red highlight and a number in the middle of the section you just clicked.

On the right is the DC sector, the effective date, use groups and dates.

The table on the right will also show the various use groups and their corresponding rates.

URA dc rates map detailed

What are DC use groups?

DC use groups are categories created by URA that correspond to various property asset groups.

The following table from URA shows the various use groups and the purposes for which development is permitted or to be authorized.

Most popular among property owners, investors and developers are use groups A, B1, B2 and D which correspond to shops/offices etc, residential landed, residential non-landed and industrial uses.

Use Group Purposes for which development is permitted or to be authorised
A Shop, office, association office, cinema, place of entertainment, clinic, medical suite, restaurant, petrol station, auto-service centre, commercial garage, market, sports and recreation building
B1 Residential (landed dwelling-house1)
B2 Residential (non-landed residential building)
C Hospital, hotel room and hotel-related uses
D Industrial, warehousing, science park, business park, transport depot, airport, dock, port uses, utility installation, telecommunication infrastructure, Mass Rapid Transit Station, Light Rail Transit Station
E Place of worship, community building, community sports and fitness building, educational and institutional uses, government building
F Open space, nature reserve
G Agriculture
H Drain, road, railway, cemetery, Mass Rapid Transit Route, Light Rail Transit Route



What are DC geographical sectors?

DC sectors are various areas of Singapore that has been classified by URA into numbers 1 to 118.

The breakdown of DC geographical sectors can be found here.

For example, DC sector 1 corresponds to a section of Raffles Place.

To the east of DC sector 1 is DC sector 6 which corresponds to a section of Collyer Quay and Esplanade Bridge.

URA makes it easy to find the various DC sector numbers with their mapping tool.

How do historical DC rates look like?

Yours truly has compiled historical DC rates since 1989.

They are available from URA’s website anyway.

The following chart shows the historical DC rates for use group B2 (non-landed residential).

The chart starts from year 2000 because prior to year 2000, both landed (presently use group B1) and non-landed (presently use group B2) were considered as use group B.

Historical URA DC ratesVery evidently, the trend of DC rates follows very closely with that of the URA property price index.

Click here to contact me for the full history of DC rates in an excel file.




The peak of prices in 2007/2008 corresponds to a peak in DC rates during that period, followed by a trough in 2009.

Thereafter, DC rates climbed till 2013 before falling, all these in tandem with the property price index.

Recently, DC rates have made a historical high not seen since 2007/2008.

URA property price indexWhy do DC rates rise and fall?

Naturally, a question would be why DC rates rise and fall?

It would be good to take a step back and understand how DC rates are used as a policy tool by the government.

When the market is hot and booming for example when there are many en-bloc sales (or high priced sales or increasing volume) happening, the government may be concerned that prices would run ahead of fundamentals and/or a bubble could form.

During en-bloc sales, developers buy land that is underutilized (meaning that the present built up area is not as much as what the land and its plot ratio can accommodate), and redevelop them.




In the process of redeveloping (and maximizing the plot ratio), developers will have to the government the development charge.

Remember I mentioned earlier that DC is payable when the value of land is increased?

In the process of redevelopment, the developer will have more units than in the past to sell (e.g. the apartment has 20 units, but the developer is maximizing the plot ratio and building 40 units – this is where value is increased).

The government won’t let the private developer take all the profit and not have a share.

Therefore, DC is payable by the developer to the government.

In an en-bloc sale, developers bid very bullishly and buy over older developments and give the present owners a windfall.

If a higher DC were payable to the government, the developer would have less profit to take home.

In this case, the developer would lower the amount they offer to present owners to preserve some profit for themselves.

Through this method of raising DC rates, the government has in effect made developers more cautious in their bidding.

This is how DC rates affect the ebb and flow of en-bloc sales.

How are development charges calculated?

This is a pretty technical question, so it would be best to refer to SLA’s document on the calculation of differential premium (DP).

The calculation of a DP and DC is similar. Both calculations are based off the DC rates table I pointed out earlier.

In the event there is a top up of lease from, for example, 60 years, to 99 years, there is also an increase in value of the land, and therefore DC or DP needs to be paid.




Generally, DC does not need to be paid if an applicant applies to pay for DP.

Whatever the case may be, any increase in the value of land will require the applicant to pay a sum of money to the government.

Other questions related to DC rates

How often are DC rates revised?

DC rates are revised every 6 months, in March and September of each year.

Who pays for development charges?

The owner of the land or the applicant for the planning permission is liable for payment.

What is the Bala’s table?

On the topic of DCs and increasing the value of land, since most properties in Singapore have a 99-year leasehold tenure, the Bala’s table (appendix 1) will be important to consider.

This is because there can be an increase in the value of land when a lease is topped up from, for example, 60 years, to 99 years.

And as mentioned earlier, when there is an increase in the value of land, DC needs to be paid.


Parkwood residences condominium at Yio Chu Kang by Oxley

2
House

Parkwood Residences is an upcoming condominium slated to be launched at Yio Chu Kang by Oxley.

Use the following quick navigation content page or contact us immediately to register your interest in Parkwood Residences.

Quick Navigation

  1. Condominium summary
  2. Condominium location
  3. Unit mix
  4. Floor plans
  5. Pricing
  6. Showflat location
  7. Site plan
  8. Gallery
  9. Condominium facilities
  10. Surrounding amenities i.e. Transport, education, healthcare, shopping/entertainment and outdoor/fitness amenities
  11. Government masterplan
  12. Macro-environment: Global and Singapore house prices; supply; vacancy
  13. Micro-market environment: Demand; supply; rents and yields; prices
  14. Interest rates
  15. Site background
  16. Developer background
  17. Contact us/register interest

Condominium summary

Project name Parkwood Residences
Developer Oxley Holdings
Tenure Freehold
Address 208 Yio Chu Kang Road
District 19
Unit mix 3 bedroom
4 bedroom
4 bedroom penthouse
5 bedroom penthouse
Total number of units 18
No of blocks 2
No of levels 4
Car park lots 18 (1 for each unit)
TOP TBA
Site area 14,136 sqft

Condominium location

Parkwood Residences sits on the former site of Toho Green at 208 Yio Chu Kang Road.

Nestled in between Serangoon and Hougang, with easy access to major roads Ang Mo Kio Ave 3 and Hougang Ave 2, Parkwood residences is highly accessible by key forms of transport.

Unit mix

Information will be out shortly. Contact us to stay updated.

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Floor plans

Information will be out shortly. Contact us to stay updated.

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Pricing

Information will be out shortly. Contact us to stay updated.

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Showflat location

Information will be out shortly. Contact us to stay updated.

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Site plan

Information will be out shortly. Contact us to stay updated.

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Gallery

Information will be out shortly. Contact us to stay updated.

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Condominium facilities

Information will be out shortly. Contact us to stay updated.

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Surrounding amenities

The following sections will provide an idea of the transport, education, healthcare, shopping/entertainment and fitness/outdoor amenities around Parkwood Residences.

Transport

Immediately outside Parkwood Residences is a bus stop that has bus services 43, 43M, 70, 73, 76, 103, 109, 116, 147, 156 and 534.

The nearest MRT station is Kovan to the East of Parkwood Residences.

For drivers, Exit 12A of the CTE is about a 3-5min drive from Parkwood Residences.

Quick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Education

According to OneMap, there are the following primary schools within a 2 km radius.

Within 1km:

  • Rosyth School
  • Xinmin Primary School
  • Zhonghua Primary School

Between 1-2km:

  • CHIJ Our Lady of Good Counsel
  • Holy Innocents Primary School
  • Hougang Primary School
  • Montfort Junior School
  • Xinghua Primary School
  • Yio Chu Kang Primary School

Other secondary schools, institutes of higher education/learning, private and international schools include

Secondary schools:

  • Serangoon Garden Secondary School
  • Bowen Secondary School
  • Xinmin Secondary School
  • Peicai Secondary School

Higher education:

  • Serangoon Junior College
  • Nanyang Junior College
  • ITE College Central and ITE Headquarters

Private and international schools:

  • Australian International School
  • Dimensions International College

Quick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Healthcare

The town centres of Kovan, Hougang and Serangoon provides healthcare facilities such as clinics, dentists and pharmacies.

Shopping/entertainment

There are a few nearby shopping malls from Parkwood Residences which are Heartland Mall at Kovan, Nex at Serangoon, Hougang Mall and Ang Mo Kio Hub.

Quick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Outdoor/fitness amenities

For fitness lovers, Serangoon Stadium and Hougang Stadium/Swimming Complex are nearby.

Punggol Park and Bishan Ang Mo Kio Park River Plains are slightly further away but within reach.

Government masterplan

Kovan MRT station, which is the nearest station to Parkwood Residences, is only 5 stops from Punggol, which is slated to be developed over the next 10 years into the Punggol Digital District.

The government has plans for the Punggol Digital District to bookend the North Coast Innovation Corridor, housing technology firms involved in key growth fields such as cyber-security, as well as fostering industry-academia collaboration at the new Singapore Institute of Technology Campus.

The Digital District will be created by extending the existing Punggol Town Centre towards the waterfront, and developed as a mixed-use district comprising residential, commercial and business park uses, alongside the new Singapore Institute of Technology (SIT) campus.

The district will be geared towards the digital and cyber-security industries cluster, and will be used to drive Singapore’s Smart Nation push through the incorporation of innovative technologies and ideas.

The district will create 28,000 jobs and open gradually from 2023.

This will be good news for those who own a property in the area considering the rental demand and wealth that will be created in the district.

Source: URA, Today

Quick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Macro-environment

The following sections will provide a snapshot on the global and islandwide property market health.

Global house prices

Compared to other countries in the region and globally, Singapore’s house prices as measured by The Economist is still on the lower end.

Parkwood Residences

As measured by the IMF, Singapore’s real house price growth on a yearly basis is on the lower end compared to the other countries tracked.

IMF Parkwood ResidencesThis shows that on a relative scale, Singapore house prices are still fairly affordable.

Quick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Singapore house prices

On a micro level, the property price index as measured by URA show that there has been a turn in property prices.

URA PPIQuick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Islandwide supply

While prices start their gradual recovery, the number of units expected to be completed over the next 5 years continue to remain low.

The following chart from URA shows a peaking of units to be completed in 2018 followed by a sharp drop all the way till after 2021.

URA pipeline supply 3Q2017

Islandwide vacancy

While the number of units that are expected to be completed over the next few years are declining, the vacancy of private residential units in the Outside Central Region (OCR) has been on the decline as measured by URA.

Falling from a high of 9.6% in 2Q 2016, the OCR vacancy rate now stands at 7.3% as of 3Q 2017.

URA OCR vacancyQuick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Micro-market environment

The following sections will provide a snapshot of the micro-market health where the development condominium is situated.

Demand

According to URA and SLA, Parkwood Residences which is located in the Hougang Planning Area has a total Singapore Resident population of 224,390 people.

Out of this total, about 171,470 are living in HDB with the remaining in condominiums and landed properties.

Hougang planning area total residentSource: Singstat

With a large number of HDB residents, there is a potential pool of upgraders that may be likely to purchase should you decide to sell Parkwood Residences.

Quick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Supply

Supply location scan 1) future completions 2) present rental competitors 3) Mention why condo can overcome supply

Rents and yields

Immediately around Parkwood Residences are the following projects with their respective rental yields based on transactions in the last 12 months.

On average, the developments in the area are commanding a rental yield of about 3 to 3.5%.

Project name Rental yield (%)
The Waterline 3.1
Nouvelle Park 2.7
Serangoon Ville 1.4
Terrasse 3.1
[email protected]
Rosyth Lodge
Rosyth Ville 4.2
One Rosyth 4.0
Fontaine Parry 2.9

Quick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Prices

Parkwood Residences is located in District 19 and according to Squarefoot, prices have risen from S$781 psf to S$1,130 psf from Mar 2010 to Feb 2018.

This represents an increase of 45% on an absolute basis or about 5% on an annualized basis.

If an investor had rented out the unit and taken leverage, the annualized returns would be much greater than 5%.

District 19 prices

According to Squarefoot, the table shows the condominiums and apartments around Parkwood Residences and their average transacted prices

Project name Avg $ psf
The Waterline 1,020
Nouvelle Park 849
Serangoon Ville 1,232
Terrasse 1,082
[email protected] 826
Rosyth Lodge 769
Rosyth Ville 757
One Rosyth 924
Fontaine Parry 1,057

Interest rates

For more information on interest rates, please visit this page to check what the banks are offering.

Quick links: 1) Quick navigation 2) Contact us to register your interest in Parkwood Residences at Yio Chu Kang by Oxley.

Site background

Previously known as Toho Green, the purchase of the development was made by Oxley.

View Fullscreen

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Developer background

Oxley Holdings Limited (“Oxley” or “the Group”) is a home-grown Singaporean property developer.

Oxley is principally engaged in the business of property development and property investment.

Since its inception, the Group’s accelerated growth has resulted in a burgeoning presence both locally and overseas. It now has a presence across twelve geographical markets.

The Group has a diversified portfolio comprising development and investment projects in Singapore, the United Kingdom, Ireland, Cyprus, Cambodia, Malaysia, Indonesia, China, Myanmar, Australia, Japan and Vietnam.

Oxley’s expertise does not lie solely in property development; the Group also renders project management and consultancy expertise in Myanmar.

Source: Oxley

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Property news round up 4th Mar 2018

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singapore property residential reit dividend

Few districts see chance of oversupply of homes: study

A NEW study on the upcoming supply of private residential units from development sites sold suggests that oversupply risks, if any, may be contained within certain districts.

Islandwide, only Districts 3, 5, 13, 18 and 19 appear to have a relatively high number of upcoming residential units in relation to the current completed units there – in the proportions of 12 to 34 per cent.




Each of these districts has at least 2,000 units that can be launched from sites sold to developers under government land sales (GLS) and collective sale sites, the study by Cushman & Wakefield shows.

Developers’ war chest of cash keeps collective sale party going

ARE developers still on a prowl for land? That question naturally cropped up when the public tenders of 10 or more collective sale sites closed without concluding a sale in recent months.

But four of such sites have since found buyers under private treaty, which market watchers were quick to attribute to developers’ sustained interest for land though they are proceeding more cautiously than before.

Also read: Pre-paying your home loan could be a good idea

Keeping this en bloc train going is their war chest of cash reserves built up by massive project completions in recent years.

Estimates from Cushman & Wakefield suggest that developers still have another S$18.9 billion for land acquisitions in the near term.

This is a conservative estimate since it assumes developers re-invest only profits from completed projects.

BCA orders developer to stop work on Kingsford Waterbay

KINGSFORD Development’s condominium project in Upper Serangoon View has hit a snag, after the Singapore authorities issued an order to the developer to stop building works because of its failure to meet certain requirements.

When contacted, the Building and Construction Authority (BCA) confirmed that an order has been issued to the Chinese developer under the Building Control Act for its 1,165-unit project Kingsford Waterbay.

BCA said it had on Nov 22 last year received feedback on suspected construction safety issues at the project.

Banyan Tree to bid for rest of Laguna Resorts & Hotels

BANYAN Tree Holdings Limited said on Monday that it intends to make an offer for the remaining shares it does not already own in its subsidiary Laguna Resorts & Hotels Public Company Limited, but has no plans to delist the Thai-listed unit.

The acquisition will be by way of a voluntary tender offer for 57.08 million shares in Laguna Resorts & Hotels at 40 Thai baht apiece by Banyan Tree and its subsidiary Banyan Tree Resorts & Spas (Thailand) Company Limited.




The offer price represents a 34 per cent premium to the last traded price of Laguna Resorts & Hotels of 29.75 baht immediately preceding the date of the tender offer.

The Estoril at Holland Rd up for sale with S$220m guide price

THE Estoril, a condominium project along 95 & 97 Holland Road, is up for collective sale with a guide price of S$220 million, reflecting a land price of about S$1,625 per sq ft per plot ratio.

Sitting on a freehold site of about 84,600 sq ft and zoned “residential” with a height control of up to 12 storeys, the development comes with a plot ratio of 1.6 based on the 2014 Master Plan.

It has a maximum allowable gross floor area of about 148,896 sq ft, including a 10 per cent bonus area on balconies.

China’s January home prices rise even as top cities post decline

CHINA’S new home prices grew in January although major cities saw early signs of softening, as the government continued its efforts to rein in speculative demand to fend off bubble risk.

Also read: Stay beside the river at Serangoon with Jui Residences

The acceleration in prices across the nation suggests moves by provincial governments to support first-time buyers and upgraders by relaxing some purchase restrictions may be further fanning price gains in a market where fear of missing out is strong and mortgage fraud is rampant.

Average new home prices in China’s 70 major cities rose 5 per cent in January from a year earlier and 0.3 per cent month on month, according to Reuters calculations based on the data from the statistics bureau on Saturday.

Pension funds bid for stake in Sydney road project: sources

AT least two Australian pension funds and one Canadian fund are participating in competing groups bidding for a majority stake in one of Australia’s largest infrastructure projects, people with knowledge of the sale told Reuters.

Australia’s New South Wales government is trying to sell a 51 per cent stake in Sydney Motorway Corporation (SMC), the company building the A$16.8 billion (S$17.4 billion) WestConnex project, which links Sydney’s centre with its fast-growing western suburbs.

Preliminary bids for a 51 per cent stake were due on Monday with final bids due by mid-year.

Three people familiar with the bidding process said local pension funds IFM Investors and AustralianSuper and Canada’s La Caisse de dépôt et placement du Québec (CDPQ) were each part of separate consortia bidding for the stake. The sources did not want to be identified because the details of the sale were confidential.

Windy Heights in Eunos launched for collective sale at S$806.2m

THE owners of Windy Heights in Eunos have put their property up for collective sale, billing it as one of the largest freehold residential redevelopment sites to come on the market in the area.

The property along Jalan Daud comprises four blocks of 192 apartment units, eight penthouses and two commercial units. Under the Government’s 2014 Master Plan, the 23,291 square metres (250,702 square feet) site is zoned “Residential” with a Gross plot ratio (GPR) of 2.1.

It can be redeveloped to accommodate 581 apartments of 100 sq m per unit, based on the current built-up gross floor area (GFA) of 58,150.74 sq m, said Knight Frank Singapore, the property’s marketing agent.




EC supply crunch powers Punggol site to record price

THE under-supply in the executive condominium (EC) market is so acute that all 17 bidders at a state tender for a site in Punggol have placed bids that are higher than the record for EC land set in July 2013, at the previous peak of the residential market.

The top bid for the Sumang Walk site at Tuesday’s tender closing, from a joint venture between wholly-owned subsidiaries of City Developments Ltd (CDL) and TID, was S$583 per square foot per plot ratio (psf ppr).

Also read: High class address at Orchard Road with 8 Hullet

This was 64 per cent higher than the top bid of S$355 psf ppr for the Anchorvale Lane site in August 2016, during the last EC tender.

JLL national director Ong Teck described this as “stunning” and “way above market expectations”.

Tulip Garden, Windy Heights join en bloc wagon

DEVELOPERS can add another two more freehold plots to the long list of en bloc projects being pitched to them, with Tulip Garden in Farrer Road and Windy Heights in Eunos launching collective sale tenders.

With seemingly no let up in the number of estates hopping onto the collective sale bandwagon, analysts expect the success rate of such deals to slow with developers getting more choosy as their landbanks fill up.

Residential en bloc sales in the first two months of this year have already topped S$3.1 billion, almost twice the S$1.66 billion seen in the last such market frenzy in 2007, according to Nomura analyst Sai Min Chow.

Sold in 12 minutes: House found with skeletal remains went for S$2.23m

THE Sembawang Hills Estate terrace house where two sets of skeletal remains were found has a new owner.

It was sold on Tuesday for S$2.23 million to a local contractor in a frenzied auction that lasted just 12 minutes.

The auction held by real estate agency Knight Frank was made on behalf of the Public Trustee’s Office, which comes under the Ministry of Law.




Cuscaden Road site up for tender under govt land sales programme

A SITE within the prime Orchard Road district has been launched for sale by public tender on Tuesday under the Urban Redevelopment Authority’s (URA’s) Confirmed List of the first half 2018 Government Land Sales (GLS) programme.

Also read: Stay in the upcoming Tampines district with Tapestry condo

The 5,722.5 square metre 99-year leasehold site is zoned for residential use under URA’s 2014 Master Plan and has a gross floor area of 16,023 sq m with a maximum building height of 100 m.

The site, which the URA said could potentially yield about 170 residential units, faces Regent Singapore along Cuscaden Road, and is a stone’s throw from Tanglin Mall and Camden Medical Centre.

Hike in DC rates unlikely to derail en bloc fever soon

THE current collective sale market is unlikely to be derailed by the average 22.8 per cent hike in development charge (DC) rates for non-landed residential use in the next six months, say property consultants.

However, they say the latest set of DC rates, payable by developers seeking to enhance the use of a site or to build a bigger project on it, could tame developers’ land bids.

Some en bloc sellers may also need to rethink their price expectations.

JLL senior consultant Karamjit Singh said that generally, in about 20 per cent of en bloc sales, the DC quantum makes up more than 5 per cent of the total land cost.

CDL’s Q4 net profit falls 23% against ‘very strong’ 2016

CITY Developments (CDL) on Wednesday posted a 23 per cent fall in net profit to S$186.7 million for its fourth quarter, but the property developer put it down to an exceptionally strong 2016 that proved hard to beat on a year-on-year comparison.

In FY16, the group’s performance was boosted by a sizeable contribution from Hong Leong City Center (HLCC) in Suzhou, higher profit margin projects such as Coco Palms and D’Nest (which were built on cheaper legacy land bank) and Lush Acres executive condominium, as well as the divestment of its stake in City e-Solutions in Hong Kong, sale of Exchange Tower in Bangkok, and recapitalisation of a Profit Participation Securities (PPS) platform that holds the Nouvel 18 condominium.




CDL’s fund management platform targeting US$5b in assets by 2023

THOUGH admittedly “late to the game”, City Developments on Wednesday said it is planning to build its own fund management platform, with a target to manage US$5 billion in assets by 2023.

This is to tap into some US$5 trillion in private capital from institutional investors in the real estate industry.

Also read: 7 things to know about Viva Industrial Trust’s income support

Management also signalled that it will be “very different” from what they have done with their three Profit Participation Securities (PPS) platforms – which are versatile instruments that can achieve multiple objectives including fund-raising and structuring transactions to provide an attractive risk-return profile that investors are willing to put capital to.

GIC, global investors to take 4.4b euro majority stake in AccorInvest

SINGAPORE’s sovereign wealth fund GIC, along with a group of international investors, have signed an agreement to acquire a 55 per cent stake in AccorHotels’ property business arm, AccorInvest.

The majority stake will be sold by the French hotel chain to investors including Saudi Arabia’s sovereign fund, also known as the Public Investment Fund, as well as institutional investors Credit Agricole Assurances, Colony NorthStar, and Amundi, among others.

For AccorHotels, the sale would result in a cash contribution of 4.4 billion euros (S$7.1 billion).

HK warns potential home buyers to assess risks fully before jumping in

HONG KONG’S Financial Secretary Paul Chan said on Wednesday that the city’s red-hot property market will gradually come under pressure as more flats hit the market and interest rates are expected to rise.

Hong Kong is one of the most expensive housing markets in the world, where private home prices shattered historic records for the 15th month in a row in January, rising 1.27 per cent month-on-month and 15.4 per cent year-on-year, the latest government data showed on Wednesday.




Singapore Budget 2018: Constitution protects land & proceeds from its sale as past reserves: Swee Keat

INCLUDE a portion of land sales proceeds in the Budget, or use more of the returns from the reserves – these are tempting suggestions to raise government revenue and easier to swallow than hiking taxes.

But it would be “ill-disciplined and unwise” for the government to do so by amending the rules as a first resort, Finance Minister Heng Swee Keat told Parliament on Thursday.

Also read: Stone’s throw from East Coast Park – Amber 45

Singapore’s approach strikes a balance between present needs and preserving resources for future generations, said the minister in a speech rounding up the three-day Budget debate.

Singapore Budget 2018: Singapore’s population expected to be below 6.9 million by 2030

SINGAPORE is not expected to change its immigration policy, and its population is likely to be “significantly below” 6.9 million by 2030, said Josephine Teo, who is in charge of population matters in the Prime Minister’s Office.

The figure refers to a projection set out in the 2013 Population White Paper for planning purposes, but which had sparked a public outcry.

Mrs Teo also said that Singapore’s population is expected to be below 6 million by 2020, as she outlined the strategies to meet the challenges of a falling birth rate and slow population growth.

How OUE could craft its exit strategy for OUE Downtown

OUE’S full-year results released recently revealed that its revamped Downtown property in Shenton Way helped to contribute to an increase in the group’s revenue.

The mixed-development’s retail podium, Downtown Gallery, opened in May last year, followed by the 268-unit Oakwood Premier serviced residences the following month.

The remaining component, offices, are not a new addition, although the facade of OUE Downtown 1 tower (which includes some office space) was changed.

OUE Downtown has a total gross floor area of about 1.24 million sq ft and is the reincarnation of the former DBS Towers 1 and 2 and DBS auditorium.

OUE, previously known as Overseas Union Enterprise, acquired it in 2010 for S$870.5 million from Goldman Sachs real estate funds, which in turn bought it in 2005 for S$690 million from DBS.




Year’s first successful auction of Sentosa Cove home sold at S$2.4m loss

A TWO-LEVEL penthouse on the sixth storey of The Berth By The Cove has become the first mortgagee sale unit on Sentosa Cove to go under the hammer and be sold this year.

This took place at Edmund Tie & Company’s (ET&Co) auction on Thursday. The property received five bids, and was eventually sold for S$3.25 million, or S$1,105 per sq ft (psf).

This was about S$2.4 million lower than what the last owner paid for the unit in 2011 – at S$5.64 million, or S$1,919 psf. It translates into a 42 per cent loss.

CapitaLand acquires Hanoi site; sets up second fund in Vietnam

CAPITALAND has acquired a prime site for its first integrated development in Hanoi, Vietnam, and has set up its second commercial fund in the country – the CapitaLand Vietnam Commercial Value-Added Fund.

The land in Tay Ho district will be developed into a 25-storey mixed-use development worth roughly US$217 million.

Also read: Capture renters and the high speed rail upside with the Twin Vew condo

It will comprise of a 380-unit residence, including small office home office (SoHo) apartments, around 230,000 square feet of office space and over 208,000 sq ft of retail space, CapitaLand said.

The fund – with a lifespan of eight years – has closed at US$130 million. CapitaLand and MEA Commercial Holdings will each hold a 50 per cent stake.

The fund will focus on grade A commercial properties in Vietnam.

New Savills managing director forecasts ‘AAA’ office rental growth to hit 10% this year

BELLS are ringing for landlords amid a shortage in supply in the core CBD area and increased demand from various industry groups, Savills Singapore’s new managing director Marcus Loo told The Business Times yesterday.

He added that the global real estate service provider, which is listed in the London stock exchange, forecasts rental growth for ‘AAA’ grade office buildings to more than double to 10 per cent this year.

Mr Loo will succeed Chris Marriott, who will now focus on his role as the chief executive of Savills South-east Asia, with immediate effect.

Mr Loo was the executive director of Savills Singapore for close to three years.




Frasers Property’s Thai unit prices 3 more debenture offerings totalling up to 5b baht

FRASERS Property said on Friday that its subsidiary, Frasers Property Holdings (Thailand), is making three more offerings under its 25 billion Thai baht (S$1.05 billion) debenture programme.

They are expected to be issued on March 7.

In a filing to the Singapore Exchange, Frasers said that under the programme, Frasers Property Holdings (Thailand) has priced the offering of up to two billion baht in aggregate principal amount of 2.19 per cent debentures due 2021, up to one billion baht in aggregate principal amount of 2.55 per cent debentures due 2023, and up to two billion baht in aggregate principal amount of 3.54 per cent debentures due 2028.

Interest is payable on each series of debentures every six months throughout the tenor of the relevant series of debentures.

The debentures will be guaranteed by the company, Frasers added.

FEC Properties snags Hollandia collective sale site for S$183.4m

The sale price for Hollandia translates to a land rate of S$1,703 per square foot per plot ratio (psf ppr), said its marketing agent Savills Singapore.

In a regulatory filing with the Hong Kong stock exchange, Far East Consortium said it plans to redevelop the site into a high-end residential development with a total gross floor area (GFA) of about 10,000 sq m.

It said: “The acquisition is consistent with the company’s regionalisation strategy and is a great addition to the development pipeline in Singapore following Artra, which was successfully launched last year,” it said.

Australia home prices fall for fifth month in February

HOME prices across Australia’s major cities fell for a fifth straight month in February as tighter rules on investment lending chilled the once red-hot Sydney market, a relief to regulators but a weight on consumer spending power.

Also read: Technology taking over the property industry

Property consultant CoreLogic said on Thursday that its index of home prices for the combined capital cities slipped 0.3 per cent in February after it fell 0.5 per cent in January.

Annual growth in prices slowed to 2 per cent, from 3.2 per cent in January and 10.5 per cent in the middle of 2017.



Why Pre-Paying Your Home Loan Could Be Awesome

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Living room

Sometimes, I wish I were a 4th-century king in medieval England.

I would spend all day sitting on my throne, deep in thought, slowly sharpening my broadsword and staring out into the abyss. My subjects, fearful of breaking my concentration, would whisper amongst themselves. “Perhaps His Majesty is coming up with a way to reduce taxes? Maybe he’s planning an invasion of France?”

Also read: S$135,000 for a Bangkok property. You don’t want to miss this.

And then I would suddenly stand up, skewer an unsuspecting roast pig, and roar, “YES! IT TOTALLY MAKES SENSE TO PREPAY YOUR HOME LOAN!!!!”




Then I would sit back, smile, and tuck into my meal. Peace would return to the kingdom. No longer will my people be subject to the yoke of interest rate slavery ever again.

(Sorry – it’s been a long week and I had to let off some steam)

The Conventional Advice And Why I Think It’s Misguided

Maybe you’re like me: You met your soulmate, got married, settled down, and before you knew it, found yourself servicing a (ugh) home loan. Getting a home loan is like a fast track into adulting – you realise that you actually have to be responsible for stuff. Who would’ve known?

Most people simply pay their home loan over the standard 20-30 years and don’t think much about it. But weirdos like me often spend our Sunday afternoons pondering deep philosophical questions like, “Does it make sense to prepay your home loan?” (I actually DID spend a Sunday afternoon pondering over this question – I really need to get a life).

Prepaying simply means that instead of faithfully making your mortgage payments every month, you pay some of it upfront. So if you owe the bank $300,000, you could pay say, $10,000 right now and reduce your liabilities to $290,000.

Also read: The Jovell condominium at Flora Road by Hong Leong

Conventional advice says this is stupid. I Googled “Should you prepay your mortgage”, read the first 5 articles, and they all basically said: Instead of reducing your home loan which has a measly interest rate, you could take that $10,000 and invest it at a higher return. Then you’ll become rich and spend your days swimming in a jacuzzi and playing with beautiful (airplane) models”

However, I have a different view. Today, I wanted to share why it might make sense to make partial repayments of your home loan, if you fulfil 2 conditions:

  • You service all or most of your home loan using CPF
  • You have some spare cash every month to invest

Let’s math this shizz out!




Prepaying Your Home Loan Is Like An Investment

Let’s say that you took out a 20-year home loan of $300,000 at a 2.6% interest rate*. Using a mortgage calculator like this one, you calculate that you’ll need to pay $1,604 every month for the next 20 years. Like most Singaporeans, you decide to service your mortgage from your CPF account.

Now, let’s say that your boss was feeling especially generous this Chinese New Year, and decided to give you a $10,000 cash bonus. HUAT AHHHHHHH! Now let’s say that you used that $10,000 to make a partial repayment of your home loan, reducing your liability from $300,000 to $290,000.

Assuming you keep the same payment term of 20 years, your monthly payment has now been cut down from $1604 to $1,551, saving you $53 per month which you get to keep your CPF account (use the mortgage calculator again to get these figures). That means that you now have an additional $53 per month that will keep on earning that delicious 2.5% annual interest rate from CPF.

Over 20 years, you’ll end up with $16,628 more in your CPF account, compared to if you didn’t pre-pay your home loan.

Money saved is the same as money earned. Imagine 2 twin brothers who park their car illegally to buy some tauhuay:

  • Tim strolls back to his car, only to discover that the saman aunty has fined him $400
  • Tom gets back to his car in time, driving off as the saman aunty stares murderously at his departing car

Tom is now $400 ahead of Tim, simply because Tom avoided paying the fine. In the same way, saving $16,628 was the same as earning $16,628 on your $10,000 “investment”. Working backwards, that’s a return of 2.5% per year. Not bad, and definitely better than your savings account.

Also read: Jui Residences at Serangoon (Jui = Water. Geddit)

But as they say in those strangely addictive infomercials: But wait! There’s more!

Use Your Home Loan To Diversify Your Portfolio

At this point, some smart aleck will say, “This is stupid. If I had spare cash, I will invest it at 7% and become a gazillionaire while you losers are busy paying off your home loan.”

Okay, wise guy. Let’s examine this.




If you had say, $2,000 in spare cash every month, you could plonk it all down in stocks. But only overconfident amateurs do that. Smart investors understand the importance of diversification. Why? Because investing ALL your money in stocks is risky. You can’t predict the future, so it’s always a good idea to split your investible funds into a mix of high risk/high return and low risk/low return assets.

For example, you could split out your $2,000 in cash into:

  • $1,200 in stocks yielding 7%
  • $800 in bonds yielding 2%

Not bad, but can you improve this even further? Of course. The more asset types you have, the more diversified you are. Remember what we’ve learnt so far: 1) Prepaying your mortgage is like an investment, and 2) it earns you a guaranteed return of 2.5%*.

So here’s one possible way of diversifying your cash even further:

  • $1,200 in stocks yielding 7%
  • $400 to prepay your home loan “yielding” 2.5%
  • $400 in bonds yielding 2%

Boom! You’ve now diversified the conservative part of your portfolio into two parts: Bonds yielding 2% and your home loan payment yielding 2.5%. In this case, the difference isn’t that large, but I could see some savvy investors employing this as an investing tactic when interest rates are low.

Now, you’ve improved your overall returns, and have the added psychological advantage of reducing your debt, which makes you less fragile. Nassim Taleb would approve.

Optional: The Accrued Interest Benefit

There IS one less obvious benefit of prepaying your home loan. This will only apply if you sell your house before you turn 55, so if your brain hurts from all those numbers, feel free to skip ahead to the next section.

Also read: Stay near East Coast at the Cayman Residences

Still here? Okay, the subtle benefit of prepaying your mortgage is that you can convert some of your accrued interest into cash. Let me explain.

CPF has an accrued interest rule where 1) If you use CPF to pay for your house, and 2) you sell your house before you turn 55, you have to “refund” your own CPF account with what you would have earned if you left that money in CPF. This is easier to explain in numbers, so let’s go back to our original example.




In our original example, you took out $1,604 per month from your CPF to service your home loan. Had you kept this money in your CPF account, it would have compounded into $498,915 over 20 years. Now, suppose that you sold your house for say, $600,000 after 20 years. You now have to “pay back” that $498,915 into your CPF account, so you only get to keep $101,085 in cash.

This isn’t as bad as it sounds, since you’re paying it back into your own CPF account. However it DOES mean that you will have less cash proceeds from the sale of your house.

HOWEVER, if you prepaid your mortgage using your $10K bonus, you now only have to withdraw $1,551 from your CPF each month to pay for your home loan. Compounded over 20 years, that leads to $482,288 that you “owe” your CPF account. If you sell your house for $600,000, that means that you get to keep $117,712 – a difference of $16,628 – in cash.

In short, you sacrifice $10K in the short term for $16K in cash in the long term. Whether this is a suitable trade-off or not differs from person to person, but it’s a benefit to keep in mind.

Don’t Get Lost In The Numbers 

Okay, this post became a lot more number-y than I intended. My bad! If you’re lost, don’t worry too much about the numbers. Here’s the key message:

Pre-paying your home loan might make sense because:

  • It’s like making an investment
  • It helps diversify your investible funds
  • It frees up part of your accrued interest if you sell your house

And let’s not forget the main benefit of prepaying your loan: It just feels good to reduce your debt. It might make quantitative sense to simply invest the additional cash, but personal finance isn’t just about the numbers. It’s also about how you feel. And personally, I prefer to balance my cash between 1) Investing for the future and 2) paying down my debt.

Also read: Improving residential market according to Propertyguru Survey

My wife and I set aside some money each month and use it to prepay our mortgage once a year. By doing so, we’re hoping to clear our debt in less than half the time of our original mortgage. That puts us on a path towards early financial freedom, plus it’s just a super shiok feeling to see your debt shrink faster and faster each year.




If you’re on a HDB loan, it’s pretty easy to make partial repayments: Log into MyHDBPage, go to My Flat > Purchased Flat > Financial Info > Other Related Services. From there, you can make a payment via Nets, and boom – it takes away a chunk of your home loan.

Here’s A Joke Because I Feel Like It

Okay, because you’ve been so good at following this post all the way through, here’s a random joke I heard from the play Mama White Snake, which still gives me the chuckles sometimes:

A guy gets on a boat to cross the river. The boatman asks, “Do you have cash?”
The guy, checking his wallet, says, “Yep.”
The boatman, “Okay good. The other day some fisherman got into my boat and tried to pay me by giving me his net.
I had to tell him, ‘Cash only. No Nets.”

(Like I said – It’s been a long week)

—–

*PS: Of course, not everyone has a 2.6% interest rate on their home loan. Some of you might be on a lower interest rate of say, 1.8%. In that scenario, your effective “investment returns” might be lower. However, it might still make sense to do cash prepayments if you normally use CPF to service your loan, since you’re essentially sacrificing a 2.5% CPF interest rate to service a loan with a lower interest rate. 

PPS: You can also download my Prepayment calculator in Excel to see how I came up with these calculations. Also, I just learnt how to use the FV, PV, and RATE functions in Excel so I just wanted to share my little piece of geeky joy.

This article first appeared on Cheerfulegg



(How to) Passing the RES exam

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Living room singapore

In this post, James recounts his experience on passing the Real Estate Salesperson (RES) exam, which according to trainers, have had a 30% pass rate in the last few sittings.

At that rate, the percentage is even more abysmal than most finance and professional accreditation courses out there!

Need tips on passing your RES? Contact us and when there’s enough requests we can set up a help-group.




I don’t know how true that is, but having sat through the paper myself, it certainly isn’t easy. And I feel for those who have a hard time getting through the economics concepts, land law and stuff like that.

There was quite a bit of memorization, a little bit of financial calculator usage and knowing a lot about HDB, URA, BCA, Ministry of Law regulations etc (that change almost every half a year).

Anyhow, James will tell us how the whole experience went. And for those interested to take the exam that is only getting more difficult (it is only held 3 times a year and the official passing mark is 60%), this might be helpful.

Passing the RES exam

So I’ve passed my RES exam on the first try.

Many of you out there may be wondering how to pass the RES exam and I’ll share my experience with you.

I did my RES exam with Hastor and training was held at Braddell.

There are a lot of other RES exam providers out there for you to choose. A list of training providers can be found on the CEA website.

I was working full time while studying for the RES exam so there was a whole lot of rushing to finish work before heading to the class venue.

There was 2 months of doing this twice over the weekdays and once every weekend.

Read also: Free home reports for your buying and selling decisions. Need tips on passing your RES? Contact us and when there’s enough requests we can set up a help-group.

Needless to say, the rushing around, expenditure on cab fares and reading of the RES material was not easy.

CEA also requires minimum 75% of participation. And those who are more than 15 mins late will not get their attendance marked.

Talk about going back to school. This time in a real estate school.

So in the first few sessions, I madly rushed down to class hoping to meet the 15 min grace window.

But as you know in school, friends tap or sign in for each other 😉

Do try to be early, but if work, family or other commitments crop up, your trainer might be lenient and kind enough to overlook it (a few times).




In any case, do attend all the sessions because the trainers, at least in my case, give very good information.

The RES exam is split into two papers – very intelligently named Paper 1 and 2.

Paper 1 tests on Competency Units 1 and 2.

Paper 2 tests on Competency Units 3 and 4.

Also read: 3 analyst reports on CapitaCommercial Trust. Need tips on passing your RES? Contact us and when there’s enough requests we can set up a help-group.

Competency Unit 1 is titled Real Estate Agency Industry Overview & Basic Land Law Concepts while Competency Unit 2 is titled Dealings with Interests in Land.

Competency Unit 3 is titled Regulation of Real Estate Agency Industry & Real Estate Marketing while Competency Unit 4 is titled Property Transactions.

I took paper 1 on a Saturday from 9:30am to 12pm and paper 2 on a Sunday from 9:30am to 12pm.

I remember the evening before the exam, I was out with friends, playing games, enjoying myself without a care in the world regarding the RES exam.

Kidding. I was mugging quite a bit. Poring through the lecture notes, chatting with classmates and the trainer on WhatsApp (my trainer was good as he set up a WhatsApp group and was very responsive to questions) and cramming my brain with RES course material.

I had an eventful night. I didn’t sleep much.

The next day, when I woke up at 7:30am, I noticed 100+ messages on the RES chat group.

Some people didn’t sleep. Wait no, a lot of people didn’t sleep. They must have been out partying 😉

I quickly perused the messages, answering in my mind some of the questions posed by fellow students and making sure the answer was the same as the one our instructor gave.




Thankfully, most were similar. I had a good feeling about the exam.

Suiting up, I headed out for the exam venue at SMU.

NTUC tipped us to bring a jacket as the hall would be pretty cold. I checked my bag for my sweater and great, it was there.

Also read: Capitaland buys Pearl Bank apartments. Need tips on passing your RES? Contact us and when there’s enough requests we can set up a help-group.

Making sure I had 10 2B pencils (kidding, I had 2), a few erasers and my financial calculator, I scooted out for SMU.

Upon reaching the exam venue, I saw a counter manned by 3 staff, 2 sitting in front of their computer and a third asking passers-by if they were there for the RES exam.

Being a public venue, I reckon most of the exam takers wouldn’t be immediately certain the counter was for RES exam takers.

Nevertheless, I went up, produced my IC, and was told to double check my exam room and was given my table number.

Crunch time and no turning back.

It was still half an hour to the start of the exam and even though NTUC told us to be seated 30mins before the exam, I knew this was standard exam instructions and it wouldn’t matter if I went in 5 mins before the start.

I don’t recommend you doing what I did, but I like going through the exam material as much as I can before entering the exam hall.

Call me Kiasu but I like the RES material fresh in my mind.

Also read: Proptech taking over the property industry. Need tips on passing your RES? Contact us and when there’s enough requests we can set up a help-group.

You might want to try this strategy if you’re taking the RES exam. Just make sure you don’t go in 15 mins late.

NTUC is very very strict on later comers. I’ve not heard of any late comers being denied entry, but you don’t want to test this system, especially now that the RES exams only happen 3 times a year.




Pin drop quiet in the seminar room (SMU calls it that, but your venue may call it a training or lecture room or something similar).

The format is very similar to secondary school, poly, ITE, uni exams.

Before entering, the exam proctor checks that phones are turned off. Yes, turned off, not even silent or airplane mode.

I knew that CEA takes this very seriously.

Putting the brick (sorry, turned off phone) in my bag, I searched for my seat.

Seated like everyone else, I put my pencil, pen, eraser, calculator and identification documents on the table.

CEA is very strict and no calculator cases, eraser cases (the paper that wraps the eraser) are allowed.

The invigilator, one adult looking person who looks in charge and two other people who look like temporary staff gives out the papers.

One question book and one answer sheet.

Also read: Increasing number of property agents

The question book was about 20 pages thick. The answer sheet was only one sheet and 2 pages.

The first page of the answer sheet was all ovals that you circle with the right answer. The next page had more ovals and fill in the black spaces.

Seated down, I tried to remember the tax rates, HDB family nucleus requirements and what estate in fee simple means. Whatever, can’t remember much. I’ll just wing the RES exam.

Come 9:30, the invigilator calls us to start.

Flipping through, I realized everything I could remember was last night’s hanging out session with my friends. Not a good start.




Nevertheless, I put my head down, got started and before I knew it, 12pm was here.

Handing in the paper, I knew I had to focus on tomorrow’s RES paper 2. Putting aside the thoughts on whether I did well for RES paper 1, I headed home to make sure I knew how to tackle paper 2.

I won’t go into anymore details on how I tackled the rest of the RES exam but it’s generally the same idea as paper 1.

So there, it wasn’t easy, but the journey is worth it.

And with the entry to the real estate industry getting tougher, it is definitely worth your time and effort to get past this obstacle!

Drop us a comment on this page or on PropertyInvestSG’s Facebook page if you would like to find out or ask me or James more about the exam!

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Free home reports and how they can help with your investments

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Property report

Home reports are an essential item in the toolkit of every home owner, investor and occupant.

Giving you great information on your home and surrounding neighbourhood, a home report is critical in your assessment of whether to sell your owner occupied or investment property.

In addition, if you’re a buyer, a home report gives you a low-down on what is happening in the neighbourhood in terms of prices, rents, amenities and historical transactions.

Here are a few ways a home or property report can help you.

Also read: Amber 45 condominium in the heart of East Coast

Price trends

A good home and property report will always provide you with a chart of historical prices.

These prices can be for new-launch or resale units. In any case, they usually give you a picture on how the market has moved in the neighbourhood.

For specific projects, the chart ideally should consist of transactions since day 1.

For example, the following chart show transacted prices since day 1 for The Sail @ Marina Bay.

The sail @ marina bayAt one glance, a homeowner or potential investor in the development can see where prices have been and where they are headed.

Some property reports such as those prepared by Squarefoot Research show the asking prices of units presently in the market.

These are indicated by the pink dots in the chart.

Historical transactions

Comprehensive home and property reports should also give the recipient a list of historical transactions.

In the following example, 15 historical transactions are provided.

The sail @ marina bay 2

In the home and property report that PropertyInvestSG provides, up to 6 months worth of historical transactions are provided.

Historical transactions provide more color than the price chart because size, price per sqft, absolute transacted price and purchaser address information is provided.

This facilitates deeper analysis of the data that one may want to conduct when doing a comparables study.

Also read: Real estate investment sales at 10 year high

A comparables study is the estimation of the price of one’s unit (subject unit) by looking at historical transactions of units that are comparable to the subject unit.

Buyer profile

Most homeowners and investors also appreciate the breakdown of buyer’s nationality in a home and property report.

This information is useful because when the owner or investor thinks of selling his or her unit, they can better target a segment of the market.

For example, in The Sail @ Marina Bay, about 60% of buyers are Singaporeans, 15% are permanent residents, 15% are foreigners and the remaining 10% are by companies.

The sail @ marina bay 3

When selling, the homeowner can use this information in the property report to target Singaporeans who form the bulk of buyers.

If the homeowner or investor would like to target permanent residents and foreigners, lesser resources should be spent there.

This is because the buyer profile based on historical transactions indicate that it may be less likely for permanent residents and foreigners to purchase a unit.

Also read: Increasing number of property agents in 2018

However, compared to a suburban condominium where the proportion of Singaporean buyers can be up to 90%, it may make sense for an investor to allocate more resources in targeting permanent residents and foreigners vis-a-vis a suburban condominium.

Rental yields

A good home and property report should also provide a snapshot of rental yields for previously concluded rental deals.

Using The Sail @ Marina Bay as an example again, the rental yield averages 3%.

This is based on the following table.

The sail @ marina bay 4Due to privacy reasons, the exact unit for which the rental transaction was concluded is not disclosed.

Rather, the rental yield is calculated based on a unit size range. The total number of rental contracts within that size range and the average price of units are taken and the rental yield deduced.

While not as accurate as having individual and granular rental transactions, this aggregation helps in providing a high level view of rental yields in the home and property report.

In this way, the homeowner and investor won’t be lost in the weeds of transactions, so to speak.

Price comparison with nearby properties

A home and property report won’t be complete without an analysis of the surrounding area.

Around The Sail @ Marine Bay are condominiums such as One Shenton, Marina Bay Suites, Marina Bay Residences and Marina One Residences.

The following table shows the overall average prices of all projects (including the subject – The Sail @ Marine Bay) and the minimum, maximum and average of each project.

The sail @ marina bay 5Homeowners and investors should look forward to having such information in the property report because it helps them determine where their property is in relation to surrounding projects.

For example, if one wants to sell The Sail @ Marina Bay, it would make no sense to price it similar to the surrounding projects.

A prospective buyer would look at The Sail and when compared with the surrounding projects, may find that prices are too high (or low, which would be good for the prospective purchaser but bad for the seller since the seller is not getting a ‘full’ price for his/her unit).

So the above chart in a home report would be helpful for the owner to find out the approximate range of prices his home can command.

Free home report

If you’re a homeowner or investor looking to sell your property/properties, or a potential purchaser, it would do you no harm to get a hold of a property or home report to assist you.

PropertyInvestSG has just the property report for you. Simply let us know the name of the condominium, apartment, HDB block number or name of landed estate you live in or are intending to buy, and we will provide you with a complimentary report.

If you want a free home report, contact us via the Home and Property Report page and you’ll be on your way to getting more out of your property sale/purchase.



News round up for 28 Feb 2018

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Property residential foreigners

Windy Heights in Eunos launched for collective sale at S$806.2m

THE owners of Windy Heights in Eunos have put their property up for collective sale, billing it as one of the largest freehold residential redevelopment sites to come on the market in the area.

The property along Jalan Daud comprises four blocks of 192 apartment units, eight penthouses and two commercial units. Under the Government’s 2014 Master Plan, the 23,291 square metres (250,702 square feet) site is zoned “Residential” with a Gross plot ratio (GPR) of 2.1.

It can be redeveloped to accommodate 581 apartments of 100 sq m per unit, based on the current built-up gross floor area (GFA) of 58,150.74 sq m, said Knight Frank Singapore, the property’s marketing agent.

EC supply crunch powers Punggol site to record price

THE under-supply in the executive condominium (EC) market is so acute that all 17 bidders at a state tender for a site in Punggol have placed bids that are higher than the record for EC land set in July 2013, at the previous peak of the residential market.

The top bid for the Sumang Walk site at Tuesday’s tender closing, from a joint venture between wholly-owned subsidiaries of City Developments Ltd (CDL) and TID, was S$583 per square foot per plot ratio (psf ppr).

This was 64 per cent higher than the top bid of S$355 psf ppr for the Anchorvale Lane site in August 2016, during the last EC tender.

JLL national director Ong Teck described this as “stunning” and “way above market expectations”.

Tulip Garden, Windy Heights join en bloc wagon

DEVELOPERS can add another two more freehold plots to the long list of en bloc projects being pitched to them, with Tulip Garden in Farrer Road and Windy Heights in Eunos launching collective sale tenders.

With seemingly no let up in the number of estates hopping onto the collective sale bandwagon, analysts expect the success rate of such deals to slow with developers getting more choosy as their landbanks fill up.

Residential en bloc sales in the first two months of this year have already topped S$3.1 billion, almost twice the S$1.66 billion seen in the last such market frenzy in 2007, according to Nomura analyst Sai Min Chow.

Sold in 12 minutes: House found with skeletal remains went for S$2.23m

THE Sembawang Hills Estate terrace house where two sets of skeletal remains were found has a new owner.

It was sold on Tuesday for S$2.23 million to a local contractor in a frenzied auction that lasted just 12 minutes.

The auction held by real estate agency Knight Frank was made on behalf of the Public Trustee’s Office, which comes under the Ministry of Law.

Cuscaden Road site up for tender under govt land sales programme

A SITE within the prime Orchard Road district has been launched for sale by public tender on Tuesday under the Urban Redevelopment Authority’s (URA’s) Confirmed List of the first half 2018 Government Land Sales (GLS) programme.

The 5,722.5 square metre 99-year leasehold site is zoned for residential use under URA’s 2014 Master Plan and has a gross floor area of 16,023 sq m with a maximum building height of 100 m.

The site, which the URA said could potentially yield about 170 residential units, faces Regent Singapore along Cuscaden Road, and is a stone’s throw from Tanglin Mall and Camden Medical Centre.

Life Sukhumvit 62 condominium in Bangkok

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Bangkok life sukhumvit 62

Life Sukhumvit 62 is a new condominium that is being launched for sale in Bangkok.

Prices start from SGD 135,000 and this is much cheaper than any form of housing in Singapore.

There are only 24 units for sale so you need to have fast-fingers on this one. All of the units are expected to be snapped up on the launch day.

To skip the niceties, go straight to our contact form or get in touch on WhatsApp to find out more about Life Sukhumvit 62.

VVIP preview on 11 and 18 Mar (at CT Hub) and hotel launch on 25 Mar.

Quick navigation

  1. Promotional video (2 mins)
  2. Location
  3. Key details
  4. Floor plan
  5. Surrounding area
  6. Comparative pricing
  7. Financing and tax
  8. Photos and videos
  9. Developer background
  10. Contact us

If you want to know more about Life Sukhumvit 62 and how you can get started investing in Bangkok, read on.

Life Sukhumvit 62 promotional video

The video is 2 mins long. Enjoy.

LIFE Sukhumvit 62 is an upcoming Freehold Development by Thailand’s Top Listed Developer AP (Thailand) and Top Japan Developer Mitsubishi Estate Group.

It is located in the Up and Coming Residential Development Zone popular with Expats and Locals and is ~200 metres from the nearest Bangchak BTS Skytrain station and 500 metres from the expressway.

The location allow easy access and convenience to the different parts of Bangkok. Life Sukhumvit 62 standing tall at 24th Storey will be the Tallest High-Rise Freehold Condo in the Vicinity.

It is a Low Density Development with only 438 Residential Units ranging from Studio, 1 and 2 Bedroom units. LIFE Sukhumvit 62 is designed under the concept of Life Space for the Future to bring living quality of urbanites to the next level.

It has a Digital Co-working Space and Cocoon Space in the common area that allows residents to work in the comfort with their apartments just downstairs.

There will be certain provisions set aside within the development for Green Landscape and with seats and walkways in shaded corners to ensure beauty and maximum privacy just like working in natural settings.

There will also be Luxury Rooftop Facilities such as Infinity Edged Pool that will offer views of Sukhumvit and Bang Kra Jao oasis and a Sky Fitness Centre for residents who likes to engage in Physical activities.

Location of Life Sukhumvit 62

Located 200m from Bang Chak BTS station and 500m from the expressway, Life Sukhumvit 62 is accessible by various forms of public transport.

For an interactive map, check out Google maps for directions to Life Sukhumvit 62.

Life Sukhumvit 62 Bang ChakLife sukhumvit 62 location

Life Sukhumvit 62 condominium details

  • Single tower development
  • 24 storeys
  • 438 residential units
  • 1 commercial shop
  • 176 parking spaces
  • Prices starting from THB 3m (SGD135,000) or THB 120,000 per sqm (SGD 5,054 per sqm or SGD 470 per sqft)
  • Unit types include 1) Studio at 25 sq. m. of function area 2) 1 bedrooms at 30 / 35 / 38 / 39sqm and 3) 2 bedroom units at 45 / 50 / 68 sqm
  • Freehold
  • Foreigners eligible
  • 6 to 7% property yields are possible
  • Only 24 units available for Singaporeans. Get it or be square!
  • No ABSD, stamp duties, agent or lawyer fee as you’re dealing directly with the developer
  • Facilities: reception hall, sunken lounge, ultra exploratorium, co-socialize space & cocoon, juristic office, mail room, shop space, aqua scape lap pool and odyssey pool, sauna room, sky fitness, theatre loung & sky bench, roof garden
  • Fully fitted residences including laminated flooring or ceramic tiles; white plastered walls or ceramic walls; kohler, grohe, sanwa sanitary fittings; panasonic split-unit system AC; down lights and wall lamp for lighting; built in cabinets with Franke or equivalent kitchen sink, electric cooker hob & hood

Get a piece of Life Sukhumvit 62 in Bangkok from SGD 135,000, contact us today or get in touch on WhatsApp.

Those who attend the VVIP launch and book a unit stand to receive special discounts.

Floor plans

The following floor plans show 3 types of studio units.

For a full listing of the floor plans comprising studio, 1 bedroom and 2 bedroom units, contact us today or get in touch on WhatsApp.

Studio 25 sqm

Life Sukhumvit 62 Studio 1

Studio 25 sqmLife Sukhumvit 62 Studio 2

Studio 25 sqmLife Sukhumvit 62 Studio 3

1 bedroom 30sqm Life Sukhumvit 62 1 bedroom 1

1 bedroom 35 sqmLife Sukhumvit 62 1 bedroom 2

1 bedroom 35 sqmLife Sukhumvit 62 1 bedroom 3

1 bedroom plus 38 sqmLife Sukhumvit 62 1 bedroom plus 1

1 bedroom plus 38 sqmLife Sukhumvit 62 1 bedroom plus 2

Extended 1 bedroom 39 sqmLife Sukhumvit 62 extended 1 bedroom 1

 

2 bedroom 45 sqmLife Sukhumvit 62 2 bedroom 1

2 bedroom 50 sqmLife Sukhumvit 62 2 bedroom 2

2 bedroom 50 sqm Life Sukhumvit 62 2 bedroom 3

2 bedroom 68 sqm Life Sukhumvit 62 2 bedroom 4

Surrounding area

The area around Life Sukhumvit 62 has plenty of lifestyle, shopping, entertainment and cultural amenities.

Also read: Amber 45 condominium by UOL in the heart of Amber Road and near East Coast Beach

From Terminal 21, to the EM district, to the Erawan Museum, there is no shortage of activities to cater to someone staying at Life Sukhumvit 62.

  • Asoke – Asoke CBD, BTS-MRT Exchange Station, Terminal 21 Mall
  • Phrom Phong – EM district, high-end expat area
  • Thonglo – High-end lifestyle area
  • Ekkamai – Lifestyle area, Gateway Ekkamai
  • Phra Khanong – Art & trendy area, upper & middle class expat area
  • Onnut – Asoke CBD, BTS-MRT Exchange Station
  • Bang Chak – Life Sukhumvit 62
  • Phnnawithi – Whizdom 101
  • Udom Suk – Soi Udom Suk street food and market
  • Bang Na – Ikea, Mega Bangna, Bangkok Mall
  • Bearing – Erawan museum, Bang Pu seaside
  • Samrong – Future green line extension, future yellow line exchange stations

life sukhumvit 62 vicinity surrounding amenities

Comparative pricing

Life Sukhumvit 62 has very competitive pricing compared to per sqm prices of comparable projects in the area.

Get a piece of Life Sukhumvit 62 in Bangkok from SGD 135,000, contact us today or get in touch on WhatsApp.

Those who attend the VVIP launch and book a unit stand to receive special discounts.

The following list shows the per sqm THB prices of comparable developments around Life Sukhumvit 62.

  • Asoke – 250k
  • Phrom Phong – 300k
  • Thonglo – 300k
  • Ekkamai – 250k
  • Phra Khanong – 190k
  • Onnut – 150k
  • Bang Chak (location of Life Sukhumvit 62) – 120k
  • Pnuuawithi – 150k
  • Udom Suk – 110k
  • Bang Na – 130k
  • Bearing – 80k

Life sukhumvit 62 average price psm

Payment schedule

  1. S$2,000 administration fee as reservation fee (refundable after first downpayment).
  2. 15% of purchase price within 5 days of reservation
  3. Balance 85% + 2% transfer duty payable on completion/handover (anticipated in 2020/2021 onwards)

This means that only S$2,000 is required to book a unit. I bet most of you put down even more for stocks that you buy!

What’s more, flipping is allowed. This means you can flip it to the next buyer who either missed out on the property during launch, or after 6 months when someone comes along deciding to buy a unit at Life Sukhumvit 62.

Get a piece of Life Sukhumvit 62 in Bangkok from SGD 135,000, contact us today or get in touch on WhatsApp.

Those who attend the VVIP launch and book a unit stand to receive special discounts.

Also read: The Tapestry condo at Tampines by CDL

Financing and tax for Life Sukhumvit 62

Up to 70% financing is allowed by UOB Thailand.

Category Sale of freehold land and property Liability to tax
Transfer fee 2% of official appraised value Seller/Buyer
Specific business tax (applicable only within 1st 5 years of ownership) 3.3% of official appraised value or the contracted sale price, whichever is the higher or N.A. Seller
Stamp duty (applicable from 6 years of ownership) 0.5% of official appraised value or the contracted sale price, whichever is the higher or N.A. Seller
Withholding tax If seller is company: 1% of official appraised value or the contracted sale price, whichever is the higher or N.A.If seller is individual: 5% – 35% of official appraised value or the contracted sale price, whichever is the higher or N.A. Seller

Payment schedule

Reservation: S$2,000 admin fee

Downpayment: 15% of payment price to developer’s bank account within 5 days of unit reservation

Balance: 85% of purchase to developer’s bank account upon completion (or so-called TOP)

Notes: All transfers must be in foreign currency, not in THB. Do not use a remittance company or purchase in THB.

life sukhumvit 62 payment schedule

Personal income tax rates in Thailand

For those who need reference, the following table lists out the personal income tax rates in Thailand.

Taxable income (baht) Tax rate (%)
0-150,000 Exempt
More than 150,000 but less than 300,000 5
More than 300,000 but less than 500,000 10
More than 500,000 but less than 750,000 15
More than 750,000 but less than 1,000,000 20
More than 1,000,000 but less than 2,000,000 25
More than 2,000,000 but less than 4,000,000 30
Over 4,000,000 35

Life Sukhumvit 62 photos

360 degree panoramic view

Life sukhumvit 62 panorama view

Life Sukhumvit Bangkok property illustration (8)Wide open entrancesLife Sukhumvit Bangkok property illustration (7)Landscape and greeneryLife Sukhumvit Bangkok property illustration (6)Landscape and greeneryLife Sukhumvit Bangkok property illustration (14)Rooftop facilities (fitness centre and infinity edged pool)Life Sukhumvit Bangkok property illustration (9)

Interested in Life Sukhumvit 62 with prices starting from SGD135xxx? contact us today or get in touch on WhatsApp. Life Sukhumvit Bangkok property illustration (21)Grand lobbyLife Sukhumvit Bangkok property illustration (5)Lounge areaLife Sukhumvit Bangkok property illustration (4) Life Sukhumvit Bangkok property illustration (3)Grand lobbyLife Sukhumvit Bangkok property illustration (23)Grand lobbyLife Sukhumvit Bangkok property illustration (16)

Also read: Rivercove Residences EC – one of the few remaining EC developments available for sale in 2018

Fitness centreLife Sukhumvit Bangkok property illustration (11) Life Sukhumvit Bangkok property illustration (20)Luxurious bedroomsHigh class furnishings and fitoutsLife Sukhumvit Bangkok property illustration (22)

Interested in Life Sukhumvit 62 with prices starting from SGD135xxx? contact us today or get in touch on WhatsApp. Life Sukhumvit Bangkok property illustration (17) Life Sukhumvit Bangkok property illustration (19)Stylish finishingLife Sukhumvit Bangkok property illustration (15) Life Sukhumvit Bangkok property illustration (12) Life Sukhumvit Bangkok property illustration (13) Life Sukhumvit Bangkok property illustration (18)Life sukhumvit 62 5th floor hover sphere

3 min walk from Life Sukhumvit 62 to Bang Chak BTS station

The developer

AP developer Life Sukhumvit 62 Bangkok (3) AP developer Life Sukhumvit 62 Bangkok (1) AP developer Life Sukhumvit 62 Bangkok (2)

Prices along Sukhumvit BTS Line

According to AP, the developer of life Sukhumvit 62, condominiums along the Sukhumvit BTS Line fall into one of three main sections

  • 1) Upper Sukhumvit (Nana station-Ekkamai station) where condominiums, built right the heart of prime central business district, are in the luxury segment at Bht 290,000-400,000/sqm price range
  • 2) Mid-Sukhumvit (Phra Khanong station-Nana station) where condominiums in the Bht 100,000-250,000/sq.m. price range for sale in high-potential locations surrounded by growing city trends. This section of Sukhumvit is also clearly affected by Upper Sukhumvit’s extended urbanization triggering demand for condominiums in the area. Developers are challenged to find the right plot of land and manage their price package to meet customer demand and price limitations. AP is looking to fill a gap in this section of Sukhumvit.
  • 3) Lower Sukhumvit (Bearing station-Erawan station) where condominiums are in the Bht 70,000-120,000/sqm price range.

Source: AP Development

An investment in Life Sukhumvit 62 in Bangkok offers fantastic capital appreciation and rental potential. Contact us today using the following form. We will be in touch shortly.

Contact us

List of downloadable documents

Life Sukhumvit 62 handbook



Improving Singapore residential market according to PropertyGuru survey

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singapore property residential reit dividend

According to PropertyGuru’s Consumer Sentiment survey conducted recently, buyer sentiment is at the highest level since 2013.




Together with other indicators such as the uptick in the URA price index, this suggests that the Singapore property market may be turning the corner.

Survey satisfaction

In the PropertyGuru survey, 37% of respondents indicated they are satisfied with the real estate climate in Singapore.

This is 3 percentage points higher than 34% recorded in 1H 2017’s survey.

The main drive for the higher level of satisfaction is, no surprise, anticipation of long-term capital appreciation and low mortgage rates.

Also read: What’s with Viva industrial REIT’s income support

(But be careful that low mortgage rates don’t stay low forever).

Additionally, 28% of respondents said that they felt Singapore has a stable and resilient real estate market.

Prices high, but expected to rise further

Some respondents were unhappy because they felt that property prices were high.

However, in the same vein, most respondents expected prices to continue climbing.

Specifically 72% of respondents indicated that they expect condominium price to increase. Among that, 26% expected prices to increase by more than 10%.

HDB market remains healthy

The survey shows that price perception of HDB flats have improved. 52% of respondents in this survey are satisfied with HDB prices, up from 47% in the previous survey.




However, 39% of respondents felt that HDB prices will increase in the next 6 months and this is lower than 54% in the previous survey.

Between private and HDB properties, respondents are more positive on private properties.

Also read: Singapore property market information at your fingertips

Most respondents expect HDB prices to increase less than 5%. This is lower than the range of 5-10% that most respondents this private property prices will increase by.

Rents not out of the woods

The rental market has been weak for the last few years, and the feedback from respondents show that the lackluster mood still prevails.

One reason cited for the poorer sentiment is the presence of disruptors in the market such as AirBnB which is contributing to uncertainty in the rental market.

51% of respondents feel that rents will increase in the next 5 years compared with 21% expecting them to fall.

Intention to buy

About half of the respondents intend to buy a residential property in the next 6 months.

Those who are intending to purchase private residential properties show the highest intention to buy.

According to PropertyGuru, this is due to returning optimism in the market and replacement demand from those whose previous homes were en-bloc’d.

By district, 15 (East Coast and Marine Parade) and 11 (Newton and Novena) are the most popular locations for purchase, with 44% of respondents planning to buy.

71% of these respondents who have an intention to buy have a budget of at least S$750,000.

Government playing a positive role

Despite the anticipated price increase, 35 percent of respondents think that the Singapore government is doing enough to make housing affordable, up from 32 percent in the previous survey.

On top of that, 50 percent of them agree with the government’s stance on maintaining the existing cooling measures.

Setting sights on overseas properties

21% of respondents indicated they own overseas properties.

Malaysia, India, UK and Australia were the most popular investment decisions given the country’s affordable domestic prices and potential for capital appreciation.




However, the intention to buy overseas has declined to the lowest since 3rd quarter of 2011. This is due likely to investors setting their sights on the local Singapore market which is beginning to see signs of a pick up.

Among those still keen to buy an overseas property for investment, Australia, Malaysia and Thailand are the three top destinations.

Source: PropertyGuru Consumer Sentiment Survey

Now you know what most respondents are thinking. If you’re interested to start investing, check out a whole bunch of upcoming condominium developments here or the following individual pages



Property news round up 25 Feb 2018

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Pearl bank singapore

GCBs remain a draw for Singaporeans

A FEW notable personalities from the corporate world have been involved in transactions in Good Class Bungalow (GCB) Areas since the start of the year.

The Business Times understands that Simon Israel, chairman of both Singtel and Singapore Post, is buying an old single-storey bungalow that is ripe for redevelopment along Binjai Park in District 21 for S$18.26 million.

This works out to S$1,300 per square foot based on the freehold site’s land area of 14,047 sq ft. The rectangular plot is at a cul de sac.




Last year, Mr Israel sold a bungalow in Andrew Road, which is part of the Caldecott Hill Estate GCB Area, for S$25.6 million or S$1,152 psf on a land area of about 22,220 sq ft. The freehold house was designed by Chan Soo Khian of SCDA Architects.

Singapore Budget 2018: Impact of buyer’s stamp duty hike to be felt most for big-ticket purchases

THE impact of the 1-percentage point hike in the top marginal buyer’s stamp duty (BSD) rate on the portion of a residential property’s value exceeding S$1million will be felt most for big-ticket purchases. JLL senior consultant Karamjit Singh said: “These include expensive condo units, bungalows and what is happening more rampantly nowadays – land and en bloc property purchases by developers.”

Property consultants generally said that as the bulk of residential property deals are below S$1.5 million, the change to the BSD is expected to have only a mild impact on property demand.

Singapore Budget 2018: Reit ETFs to enjoy tax transparency

TAX transparency treatment for Singapore-listed real estate investment trusts (S-Reits) will soon be extended to exchange traded funds (ETFs) invested in these Reits – a long-awaited move cheered by market watchers.

Taking effect on or after July 1, the tax concessions for Reit ETFs will ensure parity in tax treatments between investing in individual S-Reits and Reit ETFs.

Industry players noted that the much-lobbied move is positive for the growth of the Reits sector and will strengthen Singapore’s status as a Reits listing hub.

Singapore Budget 2018: New Infrastructure Office for projects in Asia

TO HELP firms tap infrastructure opportunities in Asia, such as those created by China’s Belt and Road Initiative, Singapore will set up an Infrastructure Office this year.

It will bring together local and international firms across the value chain – from developers and institutional investors to legal, accounting and financial services providers – to develop, finance and execute projects.

“As Asia’s growth will raise infrastructure demand, we seek to forge stronger partnerships in infrastructure development and enhance connectivity in the region,” said Finance Minister Heng Swee Keat.

Singapore Budget 2018: Bigger handouts under enhanced Proximity Housing Grant

SINGLES who buy a resale public housing flat to live near their parents will now receive S$10,000 under the enhanced Proximity Housing Grant (PHG) scheme.

The one-time grant is currently given only to singles who buy a resale flat to live with their parents.




Under the enhanced PHG, the grant for this category of singles is now increased to S$15,000. For families buying a resale flat to live with parents or children, the PHG grant is also raised from S$20,000 to S$30,000.

Frasers Property to buy German, Austrian logistics assets

FRASERS Property is set to acquire 22 logistics and light industrial assets in Germany and Austria mainly owned and managed by developer Alpha Industrial for 282.5 million euros (S$460.5 million).

The assets include 16 completed logistics and light industrial facilities, with a combined gross leasable area (GLA) of 393,800 square metres that are located in key industrial and logistics hubs in Germany and Austria.

With a tenant base of reputable national and international corporations and weighted average lease expiry of 6.2 years, the portfolio will contribute stable, recurring income to Frasers Property Europe (FPE), Frasers Property said.

Singapore developers seeing some en bloc fatigue?

A SPATE of en bloc sales, coupled with a rebound in the property market at the start of the year, may indicate that Singapore developers will be more cautious in adding to their landbanks and about their pricing strategies, analysts say.

Collective apartment sales in the first two months of 2018 totalled over S$3.1 billion, almost twice the S$1.66 billion seen in the last peak of the en bloc market in 2007, Nomura analyst Sai Min Chow wrote in a note dated on Monday.

The sales appear to be cutting into the willingness of developers to pay premium prices after three of four deals transacted last week were sold at asking prices, he said.

Singapore Budget 2018: Buyer’s stamp duty hike better than wealth taxes

WHILE some sort of tax on the wealthy had been expected in Monday’s Budget, few thought it would take the form of a hike in buyer’s stamp duty (BSD).

The move however, has received praise from tax consultants and other experts.

They say it’s less disruptive and easier to implement than alternatives such as capital gains tax or estate duty, which could hurt Singapore’s reputation for wealth management and its competitiveness as a financial hub.

“The introduction of any wealth tax – gift tax, inheritance tax – would run contrary to the initiatives that Singapore has rolled out over the years in successfully developing the wealth management industry,” said Goh Siow Hui, tax services partner at Ernst & Young Solutions.

Singapore Budget 2018: Implicit message in buyer’s stamp duty hike

THE surprise hike in the top marginal rate of buyer’s stamp duty (BSD) has been touted by officialdom and market watchers as a move towards a more progressive tax system, by placing a heavier burden on the wealthier.




While it is not expected to derail the nascent recovery of the residential market, it may still have a dampening effect on market sentiment, serving as a timely reminder to developers and potential homebuyers not to be too carried away in market euphoria.

Though industry players were already anticipating a move by the government to make taxes more progressive in Budget 2018, it came in the unexpected form of a hike in the top marginal BSD rate.

buyer stamp duty bsd singapore Budget 2018Developer stocks in knee-jerk reaction to change in buyer’s stamp duty

DEVELOPER stocks took a hit on Tuesday in knee-jerk reaction to news that the government is raising stamp duties on home purchases costing more than S$1 million.

But most analysts see any correction as a buying opportunity as they do not expect residential transactions and prices to take a significant hit.

Their selective “buy” calls on developer stocks following the Budget announcement, however, failed to stem their fall.

The FTSE Straits Times Real Estate Holding and Development Index, a weighted index tracking the sector’s performance, marked a 1.7 per cent drop on Tuesday.

Consumer, property in play post-Budget

IT was a subdued day for the region, with the Straits Times Index (STI) falling 11.35 points, or 0.33 per cent, to close at 3,476.53.

But as usual, a flatlining index belied intense volatility on the sidelines. Consumer and property stocks were in play after Budget announcements on a higher Goods and Services Tax (GST) and Buyers’ Stamp Duty (BSD).

There was some cheer when an expected GST whammy to the consumer will not be materialising as fast.

However, an unexpectedly higher BSD dealt a blow to the real estate sector.

Singapore residential developers like UOL (-3.3 per cent) and City Developments (-3 per cent) fell after it was announced that the top marginal BSD rate, for properties exceeding S$1 million, will go up by 1 percentage point.

For many residential transactions clustering at just over the S$1-million mark, the higher rate might be trivial.

Indeed, a number of brokers said the recent price dip was an opportunity to buy developers.

Court rules against S$17.5m collective sale of Beauty World Food Centre

A POTENTIAL S$17.5 million collective sale of the Beauty World Food Centre has been stalled, after the High Court on Tuesday declined to give three of its trustees the power to go ahead with the deal.

In a decision delivered in chambers, the court said the price may not be the best available because the option to purchase was granted to the interested buyer before a valuation was made.




However, this does not preclude the trustees from going back to court to ask for the power for another collective sale, their lawyer, Jimmy Yap, told The Straits Times on Tuesday.

Mr Yap said he will be discussing the options with his clients.

Trump Jr to give foreign policy speech on ‘unofficial’ India trip

THE US president’s eldest son, Donald Trump Jr, is making what’s been dubbed an unofficial visit to India to promote his family’s real estate projects.

But he’s also planning to deliver a foreign policy speech on Indo-Pacific relations at an event with Indian Prime Minister Narendra Modi. Beginning on Tuesday, the junior Mr Trump will have a full schedule of meet-and-greets with investors and business leaders throughout India where the Trump family has real estate projects – Mumbai, the New Delhi suburb of Gurgaon and the eastern city of Kolkata.

Spain’s property market recovers to pre-crisis levels

SPAIN’S real-estate market, hit hard when a bubble burst in 2008, has recovered transaction levels that were last seen before the economic crisis even if property prices still remain lower, official figures showed on Monday.

Boosted by strong economic growth, close to 465,000 property sales or purchases were recorded in 2017, “the highest annual figure since 2008”, a report by Spain’s national property register showed. That represents a rise of close to 15 per cent from 2016.

Singapore Budget 2018: Banks & developers eye imported services

GST Residential property developers too, will soon be charged for GST for such services sourced from abroad, tax experts said.

So home buyers may want to watch the price of name-dropping when it comes to residential properties.

“They (developers) do hire brilliant architects,” quipped Lam Kok Shang, head of global indirect tax services, Singapore, at KPMG. But what is clear is that in the business arena, the actual pinch should mainly be felt on financial services firms and property developers. Charities, as well as restructured hospitals, will also be affected, tax experts said.

This GST move only hits specific sectors because most other businesses buying imported services are eligible for a GST refund as long as the imported service is regarded as an input that is used to make taxable supplies of goods and services.




So the government levies GST on the final product or service sold here. But banks, insurers, and residential property developers are part of the minority that sell goods and services that are exempted from GST.

The taxman does not collect GST on bank loans sold to customers, on life insurance, or on homes sold.

EL Development buys Singtel’s Hill Street property

SINGTEL is selling its Hill Street property – for which planning approval has been granted for redevelopment into a hotel – to homegrown-property group EL Development.

The price is between S$115 million and S$120 million, which works out to about S$1,830 per square foot per plot ratio, The Business Times understands.

The unit land price is inclusive of a differential premium to change the use of the site, as well as a lease-upgrading premium; the total that EL Development will have to pay the state for these two premiums exceeds S$130 million.

9,999-year Guillemard site up for sale at indicative price of S$99m

A 9,999-year leasehold residential site in Guillemard Road/Jalan Molek has been put up for sale by a single, unnamed owner at an indicative price of S$99 million.

The tender for the site, located at 1 to 21A Jalan Molek and 217 to 223A Guillemard Road will close on March 20 at 3pm.

The site comprises 15 two-storey terrace houses that are within walking distance from the Mountbatten, Dakota and Aljunied MRT stations, said Cushman & Wakefield, which has been appointed as the exclusive marketing agent for the sale.

It is zoned “residential/institution” with a plot ratio of 2.8, with the terrace houses sitting on a land plot of about 37,131 sq ft, with a baseline gross floor area (GFA) of around 77,071 sq ft.

Pomex Court up for sale for at least S$37m

POMEX Court in 50 Lorong 101 Changi Road is set to be put up for collective sale, with a minimum price of S$37 million, or S$998 per square foot per plot ratio.

The tender will be launched on Feb 22, said Century21, which is handling the en bloc sale. It will close on March 21 at 3pm.

Built more than three decades ago in 1986, Pomex Court is a freehold residential site in District 15 that sits on 26,471 sq ft of land.

Its nearest MRT stations are Eunos and Paya Lebar.

The site is zoned for residential use with a 1.4 gross plot ratio, which means that it can be redeveloped into a building of up to five floors.

AccorHotels’ 2017 profits beat expectations

ACCORHOTELS, Europe’s largest hotel company, posted a forecast-beating 10.1 per cent rise in like-for-like operating profits for 2017, helped by cost controls and robust demand in all key regions except Brazil.




The French company said discussions about opening up the capital of its property unit AccorInvest to a group of French and international investors were in their final stages.

AccorHotels, which has more than 4,000 hotels ranging from the budget Ibis to the luxury Sofitel brand, competes with InterContinental, Marriott and Starwood.

Barangaroo: Sydney’s hot new district

IT’S almost impossible to think the Sydney Opera House, which receives more than eight million visitors each year, could ever be outdone by anything else on Sydney Harbour.

But take a five-minute taxi ride west of the harbour’s iconic bridge, and you’ll find Barangaroo, a new waterfront development that’s proving to be quite the competitor.

At 22 hectares, Barangaroo is about half the size of Vatican City – a former wasteland in the middle of the city that’s now filled with restaurants, shops, offices, residential buildings, and a gleaming urban park.

It’s one of Sydney’s largest and most ambitious regeneration developments since the 2000 Olympics, with a US$6 billion price tag that the New South Wales government has justified in the name of sustainable urban renewal.

Gerald Crescent bungalow on offer at over S$35m

A HOUSE that was at the centre of a high-profile dispute – between a former tour guide from China and a Singaporean widow who owns it – has been put up for sale with an expected price of above S$35 million or S$1,100 per square foot on land area.

Madam Chung Khin Chun’s bungalow in Gerald Crescent sits on a plot that is about half the size of a football field.

Her niece Hedy Mok, the appointed deputy public trustee for the estate’s administration, reportedly said earlier that the bulk of the proceeds from the land sale would go to charity.

Australia’s Westfield says ‘No Plan B’ as Unibail deal shrinks

AUSTRALIAN shopping mall giant Westfield Corp ruled out trying to increase a US$16 billion buyout from France’s Unibail-Rodamco after a decline in the European firm’s shares drove down the deal’s value, saying there was no Plan B.

The refusal by the world’s No 4 mall owner to recut the deal may frustrate investors, with analysts estimating they will get A$2.5 billion (S$2.64 billion) less than when the companies announced the offer in December.

Unibail’s Paris-listed shares were down 15 per cent after the announcement. “There’s nothing in anybody’s hands today,” Westfield co-chief executive officer Peter Lowy said on an analyst call on Thursday, referring to likely moves in both companies’ stock prices before shareholders vote on the deal in mid-2018.

Li Ka-shing unit is buyer of City Towers

JAPURA Development, linked to Hong Kong tycoon Li Ka-shing’s Cheung Kong empire, is the party that clinched City Towers in Bukit Timah Road through a collective sale this month, The Business Times understands.




The award of the freehold collective sale site was announced by its marketing agent Colliers International late on Feb 7, hours after the tender for the en bloc sale had closed, but the buyer’s identity was not disclosed.

This marks the Cheung Kong group’s first acquisition in the ongoing wave of collective sales in Singapore that began last year.

Redas chief: BSD tweak unlikely to derail housing recovery

SHOULD buyers be expecting higher home prices with the recent hike to the top marginal rate for buyer’s stamp duty (BSD)?

The answer may be “yes”, going by comments from Augustine Tan, president of the Real Estate Developers’ Association of Singapore (Redas). He said on Friday: “In the purchase of sites from the Government Land Sales (GLS) programme or private collective sites, the substantial premiums paid by developers for residential sites, together with the one per cent hike in the buyer’s stamp duty may translate into higher prices for new projects in the future.”

But though the new revised buyer’s stamp duty “may add some friction to transaction volumes as buyers remain price-sensitive, it is unlikely to derail the recovery”, he told some 620 guests at Redas’ annual Spring Festival lunch.

EL Development plans a hotel with over 300 rooms on Hill St

EL Development is planning to develop a mid- to high-end business hotel with more than 300 rooms on the Hill Street site that it is buying for S$118 million from Singtel.

“We have not finalised on the concept for the hotel and are also in the process of sourcing for an operator,” said EL Development managing director Lim Yew Soon.

He added that the price works out to about S$1,855 per square foot per plot ratio inclusive of an estimated S$140 million that is payable to the state, comprising a differential premium (to change the use of the site) and a lease upgrading premium (for one of the site’s two land lots).

Oxley blocks UE’s bid to buy WBL shares from Yanlord Perennial

IN a surprise turn of events, minority shareholders of United Engineers (UE), including property developer Oxley Holdings, have foiled a bid by UE’s new shareholder, Yanlord Perennial Investment (YPI), and UE’s former shareholder OCBC to sell their WBL shares to UE.

Voter turnout was low – only 27 per cent of UE shares were voted during an extraordinary general meeting (EGM) on Friday.

Of the votes cast, 67.44 per cent rejected the deal. Oxley, which has a 15 per cent stake in UE, cast the swing vote. Excluding Oxley’s stake, about 74 per cent of the votes were cast in favour of the resolution.

APAC Realty Q4 net profit up 60% to S$7.9m

PROPERTY broker APAC Realty reported net profit of S$7.9 million for the three months ended Dec 31, up 60 per cent year-on-year, in a Singapore Exchange filing last night.




Revenue that quarter rose to S$128.7 million, up 63 per cent.

Fourth-quarter earnings per share were 2.22 Singapore cents, up from 1.59 Singapore cents a year before.

Abandoned Upper Thomson house with grim past to be put up for state auction on Feb 27

HOW much will property-crazed Singaporeans pay for an abandoned house where skeletal remains were found? The answer may be revealed next week.

One of Singapore’s most storied houses at Sembawang Hills Estate, where two skeletal remains were found about 10 years apart, will be put up for sale by auction by the government next Tuesday.

The Public Trustee’s Office (PTO) took ownership of the house in 2015 after it remained in a dilapidated state for more than a decade.

It has appointed real estate company Knight Frank to auction the house at 17 Jalan Batai next Tuesday.

The house belonged to a pair of reclusive sisters, former civil servant Pearl Tan Leen Hee, and Ruby Tan. They would have been 81 and 68, respectively, in 2006.


7 things to know about Viva Industrial Trust’s income support

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Viva industrial trust

Viva Industrial trust is an industrial REIT listed on the Singapore stock exchange that has performed fairly well since 2017.

One thing investors should look out for even though the counter has performed fairly well over the last 2 years is the presence of income support.




Viva Industrial Trust’s share price rose from about S$0.7 to a peak of S$0.97 late 2017. It closed at a trading price of S$0.88 on 23 Feb.

The last close price is also higher than IPO of S$0.77.

Viva industrial share price

Income support

In Viva Industrial Trust’s financial statements, the income support comes in the form of a “rental support / rental arrangement”.

In Viva Industrial Trust’s FY2017 financial statements, on page 4, they specifically mention the details of the income support.

The term rental differential is used in the financial statements and can be used interchangably with rental / income support.

Why use such technical terms and make it difficult for the layman to understand? -.-

UE Business Hub income support

For UE Business Hub (UEBH), the rental arrangement works as such. The vendor (seller) of UEBH agreed to pay Viva Industrial Trust the rental differential (where the actual net rental income derived from UEBH (excluding the Hotel Leased Premises) is less than an amount of S$26m for each of the first two years, with a step-up of 5% in each of the third and fifth year) for a duration of five years from the listing date.

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So when did Viva Industrial Trust list? 4 Nov 2013.

So in year 1, Viva Industrial Trust is guaranteed actual net rental income of S$26m, in year 2, S$26m is guaranteed, in year 3, S$27.3m (S$26m x 1.05) is guaranteed, same in year 4, and in year 5, S$28.7m is guaranteed.

Rental income support will therefore expire in Nov 2018, 5 years after listing on 4 Nov 2013.

Jackson Square income support

For Jackson Square, the income support is described in Viva Industrial Trust’s 2017 statements as such.

The JS rental support arrangement, pursuant to which the vendor (seller) of JS, Jackson International Private Limited (“JIPL”), agreed to pay Viva Industrial Trust for the rental differential where the actual aggregate gross rental income derived from JS is less than S$58m over the period of five years commencing from the date of acquisition of JS on 21 Nov 2014.

According to the edge Singapore, JIPL will guarantee Viva Industrial Trust an income of about S$11.6m per year (S$58m / 5 years).




The support will start from Nov 2014 and end in Nov 2019.

How much did the income support total up to?

So how much did the income support for these 2 components of Viva Industrial Trust total up to?

In their FY2017 statements, the total amounted to S$14.7m.

This was made up of

  1. UEBH – Business Park component (gross revenue of S$25.7m and a rental differential of S$8.98m)
  2. UEBH – Hotel component (gross revenue S$9.0m and a rental differential of S$486,000)
  3. Jackson Square (gross revenue of S$8.8m and a rental differential of S$5.3m)

This is compared to FY2016, where the total rental differential was S$12.7m, made up of

  1. UEBH – Business Park component (gross revenue of S$23.8m and a rental differential of $10.9m)
  2. UEBH – Hotel component (gross revenue of S$9.2m and a rental differential of S$280,000)
  3. Jackson square (gross revenue of S$10.0m and a rental differential of S$1.6m)

Rental support in FY2017 has increased by 15.7% from FY2016. From S$12.7m to S$14.7m.

How would results have looked like without income support?

For FY2017, Viva Industrial Trust’s total distribution (including income support) declared for the period/year is S$72.3m, higher than FY2016’s S$60.9m.

On a distribution per stapled security basis, the amount is 7.47 Singapore cents in FY2017, higher than 6.96 Singapore cents in FY2016.

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However, without the income support, the distribution per stapled security amount would be 6.44 Singapore cents in FY2017 and 5.77 Singapore cents in FY2016.

This is a marked decrease compared to the amounts with income support.

I heard about the Jackson Square default

So what’s the Jackson Square default all about?

JIPL, a key tenant in Jackson Square (a building) has gone into liquidation.

This means that JIPL is no longer able to honor the income support pledge it gave to Viva Industrial Trust.

Remember the income support is about S$11.6m per year. How will JIPL be able to pay this if they’re in liquidation (bankrupt), and have no money?

It will be tough.

First some background on Jackson Square.

Jackson Square has a GFA of 418,586 sqft and valuation of S$73.2m as of writing.

This means Jackson Square makes up about 10.7% of VIT’s portfolio by GFA, and 5.7% by portfolio valuation.




The largest building by GFA is Viva business Park at 1.5m sqft; The largest building by valuation is UE Business Hub at S$518m.

Furthermore in the “Receipt of Liquidation Notice from Jackson International Private Limited”, the announcement states that three of the tenants in Jackson Square are subsidiares of JIPL.

Talk about concentration risk!

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These three tenants take up approximately 24% of the net lettable area of Jackson Square and contribute monthly gross rental income of S$161,692 or approximately 19% of the total gross rental income of Jackson Square for the month of March 2017.

Even though these subsidiaries of JIPL have not filed for liquidation or defaulted on payment, it’s not a good sign that they are related to the parent company, JIPL.

Viva Industrial Trust made some calculations with the following assumptions.

  1. Viva Industrial Trust keeps the Rental Support Bank Guarantee of approximately S$3.87m
  2. The operating expenses of Jackson Square do not increase significantly above S$2.0m per annum

With the above assumptions, Viva Industrial Trust says they do not expect the matter to have a material impact on the financials of distributions.

Will it?

Fall off in distribution per unit after income support expiry

Based solely on VIT’s FY2017 financial statements, it can be seen that the income support props up a fair bit of the distributable income and distribution per stapled security.

Viva industrial trust distribution and income support

As mentioned earlier, the distribution per stapled security for FY2017 will fall from 7.47 Singapore cents to 6.44 Singapore cents if there were no rental support.

What happens after Nov 2018, when UEBH’s rental support falls off, and Nov 2019, when Jackson Square’s rental support falls off?

Imagine it is now end 2018. The numbers on the financial statements are showing that FY2017’s distribution per stapled security is 7.47 Singapore cents (with income support, because it was really taken).

If FY2017’s differental were taken as a guide (7.47 Singapore cents with income support vs 6.44 Singapore cents without income support; or a 14% differential), FY2018’s results will show a large decline in distribution per stapled security against FY2017.

The difference in distribution per stapled security with and without income support isn’t just obvious in FY2017.




In FY2016 financial statements, the numbers also show that distribution per stapled security with income support for VIT is higher than without it.

FY2016’s distribution per stapled security was 6.96 Singapore cents with income support, and 5.77 Singapore cents without income support.

Apparently this hole may be a little too big to be dug out of.

Nevertheless, Viva Industrial Trust has received a proposal for the merger of the REIT and ESR-REIT.

That is a topic for another day.