Location: Rochor Center Level 2
Address: Rochor Road / Queen street (bugis area)

Remarks: Facing Fu Lu Shou, near connecting overhead bridge

Rental: $2.3K per month
Not inclusive of conservancy charges (maintenance fee)

For details please contact Yian Tay
81003493 or email yiantay@hot-property.com

Location: Rochor Center Level 2
Address: Rochor Road / Queen street (bugis area)

Remarks: Facing Fu Lu Shou, near connecting overhead bridge

Rental: $2.3K per month
Not inclusive of conservancy charges (maintenance fee)

For details please contact Yian Tay
81003493 or email yiantay@hot-property.com

But lets not digress from this thread. Park Regis hotel at New Market Street/Merchant Road near the Singapore River, which is said to have been sold for $218 million to Indonesian mining magnate Yusuf Merukh.

On a separate note, a 50 per cent stake each in the retail portion of Malacca Centre in the Raffles Place area and three shop units at Coronation Plaza have been sold to a single buyer (buyer’s details not disclosed to public at this moment) in a deal valuing the assets at about $40 million, and this deal involves a yield guarantee as well, which I find very interesting.

Another interesting deal involves Chow House, a six-storey freehold office block at Robinson Road, is believed to have been sold for slightly over $100 million. Chow House has redevelopment potential, and it is presumed that the buyers will have the intention of building up to reap greater returns.

A secretive deal involving a Singaporean buyer (who’s details are not revealed), has bought up Ibis Bencoolen. But according to Business Time’s sources, the 3-star hotel that opened last year has been sold for over $200million, and they claim that the buyers are a subsidiary of Singapore-based Grand Line International.

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Lian Beng received the S$119.5 million contract to build five towers (about 17-18 stories high).

Work on The Scala is expected to commence in October and be completed by the fourth quarter of 2013.

This is the second building contract Lian Beng clinched since June this year. In late June, Lian Beng  was awarded an S$88.3 million contract by UOL Development to build a 36-storey residential development at Spottiswoode Park Road.

Lian Beng seems to be getting quite a few jobs, and with the property market showing no signs of easing up, more is yet to come.

Singapore’s three-month interbank (SIBOR) loan rate fell the most in 11 months as record economic growth on the island and signs of expansion globally bolstered confidence in the nation’s lenders.

A few finance experts that I’ve communicated with (in confidence), said that with the U.S. state of economy, interest rates over there will remain low, this is in hope that the low interest rate environment will encourage expenditure, and reduce the burden by many companies, municipalities, and even state governments.

But to many Singaporeans, much of what’s going on in the US or Europe/London isn’t much of their concern (although it does have impact on our economy, many are apathetic about this). Most importantly, you and I would be interested in how this will influence our mortgage loans.

Stay tuned for more news on mortgage rates and bank loans – competition is just going to get stiffer (do you hear my hands rubbing)? Yes time to refinance for those that aren’t locked-in!!

China has been known for its efficiency as well. Its previous measures such as the restricted loans to real estate developers and imposed higher interest rates and down payments for second mortgages did help to cool surging property prices that rose by records in some cities in the second quarter. And these measures were introduced at a mere “snap of the fingers”. A directive from the top brass in the ruling party.

My view is that the market believes that this new property tax is a hoax as well. Why? Just look at some of the property counters on SGX, one of the most popularly traded Yanlord, is seeing high volume for sometime, and still shows signs of an upward trend, although it seems to be meeting resistance.

So stay tuned for this interesting bit of news. Its going to be quite a show for sure. Subscribe to us – and be connected.

An article was published in the Today newspaper discussing this issue, which I feel is a over discussed issue. But since they have raised some points and so lets look at it for the purpose of pure discussion. Read the article here – http://bit.ly/clhu3F

My view is that why discuss it when objectives for own stay or investment differs, and each property is unique, each estate has different value/positive attributes, there is no apple to apple comparison, hence why compare at all? But still people like to compare to make themselves feel good that their purchase decision was right.

The writers of the article stated that:  ”We studied resale prices of freehold versus leasehold properties and found that the difference was between 10 and 15 per cent. ” This situation of the price gap narrowing has only occurred since 2009, since our latest bull run, prior to this, the price gap has been higher. With new property launches at higher prices, leasehold properties in the vicinity enjoy (on paper) value appreciation, owners wanting to sell naturally use new launch prices as a benchmark for their property as well, and they sell at marginally cheaper than new launched projects.

But I believe these studies done may not have taken into account that the comparison is going to be difficult as all properties are unique and the informed buyer of today takes this view to the fullest. Leasehold properties with very good amenities and connectivity to MRT has always maintained not only good rental yields, but consistent price value. In good times, its price appreciation will not fall behind freehold properties, in bad times, its depreciation will not be by too much, as compared to freehold properties in far flung locales.

The only point I strongly agree with the writer of the article is that:

“for leasehold properties – age is a factor. Once the tenure of a leasehold property goes below 30 years, its value declines sharply as prospective buyers will not be able to withdraw funds from their Central Provident Fund account or secure a loan for the property purchase. ”

When leasehold properties age, and as it is at the end of its life like a really old car without available spare parts, it doesn’t become and antique car, but something more suitable for the scrap heap, its intrinsic “scrap” value is quite low. But in all property investments, if you had gone in right at the beginning, you would have reaped the full benefit from the entire life of the property, even if it went for a song at the end of its life.

If you had a choice of a freehold property far away from MRT and a leasehold property walking distance to the MRT station, which would you choose if the price is similar, do share your views with us.

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International Plaza despite its age, is fetching about $1,400 psf  and rentals are still looking attractive at $7 to $8 psf per month. Since this new White Site is sitting squarely on top of Tanjong Pagar MRT, it is definitely a highly coveted; the 99 year leasehold site will generate nearly 1.7 million square feet maximum gross floor area (GFA), of which at least 60 per cent must be for offices and another 10 per cent for hotel use. Most market watchers expect the successful developer to put the balance 30 per cent GFA to residential use, cashing in on strong demand for inner-city apartments. Sales of apartments will help part-finance the development.

Of course even if they wish to sell the offices it will still be snapped up within days, as some smaller companies prefer the Tanjong Pagar area because of the amenities this area offers, and it lacks the “stressful” environment of Raffles Place, well the last comment is my personal opinion of the place (where I spent over 1 year there).

I would definitely be watching this space very closely.

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The estates are on Hougang North Avenue 7  from Block 344 to 350, Hougang North Avenue 2 from Block 713 to 720 and Potong Pasir Avenue 1 from Block 110 to 112.

Although privatized, not all of these go for successful en bloc attempts. Take Laguna Park for example, privatized in July 2007, its 2 failed en bloc attempts and its most recent 3rd attempt did not get a successful buyer.

Upon privatization, the chances for these estates to go en bloc is higher and hence any owner wishing to sell out their unit, would be able to get a higher price for their unit after this. Those who are buying into the property are also hoping to gain a win fall from the en bloc attempt.  Its a gamble some might say, but if you’re buying into an estate with a good location, it is still worth it.

Many are keeping their attention on remaining HUDC estates like in Braddel View, Neptune Court, Tampines Court, which have yet to be privatized. One of the main downside to privatization is the increased cost of estate maintenance.

Do you think its going to go BUST soon? If yes – why do you think so?

We all know that property prices move in cycles – that is, prices can and will eventually correct. I know of no mature economy which has seen an uninterrupted and sustained upward cycle. Cycles are part and parcel of the function of the modern economy.

Previous cycles have been in the range of about six to seven years, but now the cycles have been shortened, and the fluctuations are closer to the conditions and situation akin to the stock market. It is however to the relief of property investors (as well as property agents) to know that Singapore’s property boom & bust cycles follows an upward sloping long-term trend line – that is, each boom and bust is higher than the previous high and low points. But with each cycle, the rebound comes with alacrity that shocks market experts (and seasoned investors alike). Some experts attribute this to the rapid opening of our market and acceptance of Singapore as a safe haven for investment, and its tax structure has created that popularity amongst foreign investors.

The influx of foreign investors into Singapore is none that we have seen before. Investors are buying properties not by 1 unit at a time, but by bulk buying (and frequently negotiating for a better price).

Many are asking me – when is it going to go bust. Why are they hoping for it to bust? Because they are keen to snap up mortgagee sale. Yes many property investment vultures around, waiting for the party to end. We can’t be certain either, like I said, it is too soon to tell that the music has ended, those that are caught without a seat will be out of the game.

Is it because we’re doing something right? Or is the current path that we are taking to promote Singapore as a global investment hub with excellent lifestyle ammenities (new boating marinas and 2 Casinos & a Universal Studio theme park to boot), a path to pain and misery? This is the cry of Doom Sayers that I’ve met that have cried afoul at their inability to afford properties in the current market. To those that are already in it – I bet they’re adopting a wait and see attitude. Aren’t you? Let us know what you think

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