Singapore Property Weekly Issue 148

8/12/2019 Singapore Property Weekly Issue 148

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Issue 148Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 4 Upside Down Strategies to Build

Property Wealth

p9 Singapore Property News This Week

p14 Resale Property Transactions

(March 5 March 11)

Welcome to the 148th edition of the

Singapore Property Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
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SINGAPORE PROPERTY WEEKLY Issue 148

Page | 2Back to Contents

By Gerald Tay (guest contributor)

Being "upside down" is usually a negative

term when applied to financial matters. But in

my book there are two positions when it

comes to wealth: right side up and broke, or

upside down and rich. Personally, I prefer

upside down. The best way to build and

maintain wealth, -- once considered the "least

likely to succeed"-- is by adopting

unconventionalstrategies you never think and

hear fromexpertswhen building wealth.

Here are four upside-down (unconventional)

strategies employed by rich

4 Upside Down Strategies to Build Property Wealth


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successful investors in upside-down order of

course.

Strategy #4: Focus on ONE New Emerging

Location and Segment

Strategy #3: Become aLow-CostKing

Strategy #2: Build Your Property Portfolio on

a Mountain of Cash

Strategy #1: Remodel Your Thoughts to

Grow Positive Wealth

Note: The upside-down strategies should be

geared towards preparing yourself financially for

a property downturn or an economic chaos. Stay

wealthy and accumulate more wealth when that

happens!

Strategy #4: Focus on ONE New EmergingLocation and Segment

Understand Your Market and FOCUSstart with

a single area of knowledge and avoid going all

over the place like ants on a hot plate. You will

find this knowledge builds upon itself quickly.

Once you have acquired knowledge, you will

have a tremendous advantage andyoullbe able

to determine where you should focus your

investment efforts and what types of property

you should be looking to invest in. Naturally you

will have insight into how much you can pay for a

property as well.

Students who become successful real estate

investors take the time to learn their specific

market and are handsomely rewarded for their

efforts. One would be wise to follow the path of

those who have previously succeeded, and

learning about your specific market is a path that

can quickly start paying dividends.

Your chances of survival are MUCH better if you

focus on ONE new emerging location and ONE

property segment at the right point on the S-

Curve.


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Strategy #3: Become aLow-CostKing

Save like a pauper in good times, spend like

a king in bad times!

Youll need to become lean and mean forthe great economic shakeout. Whatever cash

you do spend today should go to strategic

assets such as continuing education, training

and personal development.

Most investors and buyers are often over-leveraged when borrowing costs are low and

times are good. They plan their expenses as

if their income will always stay the same. And

they have too many liabilities that produce

nothing.

These will be the type of people slaughtered

during an economic shakeout.

Living on a shoe-string budget during

good times will help you accumulate more

wealth in bad times:

Identify the unnecessary expenses thatdrain your income dry. Cut those fixed costs

and variable overheads that produces nothing

for you (branded cars, bags and expensive

vacations?)

Dump all non-strategic assets such as an

over-priced car. This will give you a huge leg

ahead many others and create more cash to

fight your strategic war ahead.

Strategy #2: Build Your Property Portfolio

on a Mountain of Cash

Now, you may have heard some financial

expertsbabbling about the importance of


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why you must remain invested during a

period of high inflation to protect your

retirement nest egg. And how some property

expertsin times of euphoria, urge you to buy

now or regret later. They have no interest in

making you rich, only themselves! During a

downturn, deflation makes cash the most

valuable asset in your possession.

The deflationary spiral will push down asset

prices, drive up the cost of repaying debt andslaughter thousands of over-leveraged

investors.

Most investors will unwittingly commit suicide.

Theyll tighten theirbelts in a race to the

bottom. But this is good news for you

because youllbe able to scoop up strategicassets at fire-sale prices!

Thatswhy you need as much cash on hand

as possible to gobargain-huntingin a major

property correction, instead of irresistible-

greedin a hot market.

Things you should do NOW before any

downturn:-

Itsthe best time to borrow money during

a downturn! Never make major capital

expenditures today that affects your

borrowing capacity tomorrow, i.e. a upgrading

of home and car, unpaid credit card dues, etc.

Understand your propertys real profit

margin and how to correctly identify the profit

potential. You can use this knowledge to

identify the truevalueof your property.

Identify if your property is funnelling

money out of your pocket today and whyitsextremely important you dump it now.

Take advantage of economic woes to

acquire properties at steep discountsstart


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studying world history and economic trends.

Education starts today, and not during a

downturn!Only invest money during chaos,

and only invest in education during good

times.

And ifyouredoing one or more of the above,

youremuch more likely to generatepositive

wealth,become rich. and stay rich!

Strategy #1: RemodelYour Thoughts to

Grow Positive Wealth

Always Buy to Rent, Never Buy to Sell

InorOut isnt an investment strategy its

gambling with time.

Popping in and out of markets trying to catchthe wave at just the right moment rarely

works for the vast majority of investors.

Neither get in nor get out are investment

strategies; theyregambling on a moment in

time.

Invest in Yourself

This might be the single biggest obstacle on

your path to riches. Ifyourenot investing incontinuing education, training and personal

development, youre limiting your ability to

make more money in the future. Your own

earning powerrooted in your education and

job skills is the most valuable asset you'll

ever own, and it can't be wiped out in amarket crash.

Follow Rules, Not Herds

Following the herd works when you shop for a

product. A car or washing machine thats

performed well in the past is likely to excel inthe future. The opposite is often true in

finance.Whatshot today is likely to be cold

tomorrow, and vice versa.

SINGAPORE PROPERTY WEEKLY I 148


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In fact, the herd tends to gather the most

strength right before the investment it is

chasing goes off a cliff.

These rules can be as simple as refusing tobuy or sell in response to news reports, or

making sure you follow your own rules no

matter what the market is doing. Resisting the

urge to follow the crowd can prevent you from

committing the sin of buying high and selling

low.

Positive Cash flow as Strategic Victory,

Not Capital Gains

Real estate, like business, is always about

cash flow. If you want the property as a rental

property, then you need to analyse theincome minus the expenses then minus the

debt service. I recommend that you have at

least a $1,000 per unit per month positive

cash flow after all expenses and debt service.

Now if the numbers are in the profit range

that you are looking for and/or have the ROE

(return on equity) that you want.make theoffer!

Eliminate Negativity

Many people self-limit. They get in their own

way sabotaging potential success BEFORE

theyve even tried. Its important to realizethat in everything we do, theres always a

chance thatwellfail. Facing that chance, and

embracing it, is not only courageousit also

gives us a fuller, more rewarding life.

A Final Note about Wealth

Personally, I believe even on the road to

wealth, it's important to have the right mind-

set and realize you're rich alreadywith

SINGAPORE PROPERTY WEEKLY I 148


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family, friends, health, freedom and

appreciation for what you have already and

the gifts that are yet to come.

By guest contributor Gerald Tay, CEO ofCREI Academy Group, and a professional

real estate investor whose real estate

portfolio is now worth over $8 million and

generates a 6-figure sum in rental income

annually. He exposes widely-held property

investment myths that are highly ineffective increating wealth and prevent a comfortable

retirement for the ordinary investor.
http://www.crei-academy.com/http://propertymarketinsights.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/


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Asia Square Tower 2 also saw its 200,000 sq

ft of space being committed in the past six

months. Mizuho and Westpac signed up for

105,000 sq ft and 38,000 sq ft, while Mercuria

Energy Trading, Scor RE, Nikko AssetManagement and Platinum Equity Partners

signed up for 21,000 sq ft, 20,000 sq ft,

17,000 sq ft, and 4,000 sq ft respectively.

Tower 2 had an occupancy rate of 60 percent,

while it was 90 percent for Tower 1. Six whole

floors of 30,000 sq ft each are available inTower 2, and three floors of 35,000 sq ft each

are left in Tower 1, with monthly asking rent

standing at $18 psf.

(Source: Business Times)

7 00 Be a ch u p f o r sa le a s a h o t e l

After acquiring the boutique office block 700

Beach earlier this year, Master Contract

Services has decided to sell it on a

completion basis including 300 hotel rooms

and an assignment of a management contract

with the United Kingdom's Whitbread group

that would operate the hotel under the

Premier Inn brand. Master Contract wasreported to expect $1 million per room for the

hotel, or a $300 million in total. The total

development cost of the hotel could be $180-

$190 million. 700 Beach is between Golden

Mile Complex and Golden Mile Tower, and is

near Nicoll Highway MRT Station.


R B C a p it a l t o r e n o va t e t w o o f i t s a sse t s

RB Capital is reported to be renovating its

Gallery Hotel along Robertson Quay and the

retail podium of The Quayside, which costs

about $50-70 million to bring more energy

and excitement along the Singapore River.



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This would result in 100,000 sq ft of prime

lettable retail space, 80 food and beverage

outlets with the twopropertiesriver frontage

of more than 200 metres. The renovation is

expected to finish in early 2016. RBCapitals442-room Holiday Inn Express Clarke Quay

will also start trading soon. All three assets

total $1 billion for the property group.


Vi s i o n E x c h a n g e o n s a l e

Sim Lian Groups integrated development

Vision Exchange has been put on sale on

March 22. Vision Exchange has a 99-year

leasehold, 25-storey office tower with two

levels of food & beverage (F&B) space and

medical suites, and is understood to be one

of the few strata offices in Jurong Regional

Centre. It will have 740 units sized 183-1,690

sq ft upon its completion in 2018 with a total

gross floor area of about 690,000 sq ft. 640

out of the 740 units are office units, 47 are

F&B units and 53 are medical suites. In this

first phase, 250 units will be released with

average prices of $2,150 psf for office units,$4,498 psf for medical suites and F&B units.


Tw o w a r eh o u s e i n T am p i n e s o n s a l e

Architecture and interior design firm HC

Design has put two adjacent multi-storey

warehouses at 21 and 23 Tampines along

Street 92 on sale by expression of interest

(EOI). The two slots are on a Government

Land Sales (GLS) site, with a 30-year

leasehold tenure from the Urban

Redevelopment Authority since July 9, 2007

and will be zoned forBusiness2or heavier

industrial use. The total indicative price for

these two properties is about $70 million.



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They stand on a site of about 214,880 sq ft,

with an allowable gross plot ratio of 1.4, or

$235 psf ppr.


M ed i c a l s u i t e s t o a t tr a c t m o r e i n v e s t o r s

Medical suites are reported to attract more

and more interest from property investors,

and are now seen as alternative asset

classes. These suites are meant for medical

usage and traditionally sold mainly to doctors.

Some developers said that about 30 percent

of new suites which are being developed will

go to investors, as they are not affected by

cooling measures and are good investment

assets in the long run. Knight Frank and

Jones Lang LaSalle (JLL) estimated that

there are about 1,400 medical suites in

Singapore. Their prices have been increasing

recently. For instance, the average price of

medical suites at Mount Elizabeth Hospital

was about $7,100 psf in 2013, compared with

only $5,000 psf in 2010.


Bla ckst o n e ma y se l l St a r H u b G r e e n

Theworldslargest alternative asset manager

Blackstone is reported to consider the sale of

StarhubGreen in Ubi Avenue 1 which it

bought two years ago for SGD$215 million.

StarhubGreen is now mainly occupied by

StarHub Ltd, Singaporesbiggest broadband

Internet and cable TV operator for 220,000 sq

ft out of its total 405,000 sq ft, alongside

engineering services company Boustead

Singapore and independent non-hospital

based Quest Laboratories. Rents at industrial

properties were reported to increase 5

percent in Q4 2013, and rentals of multiple-

user factory and warehouse space also went



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up 3.5 percent and 5.4 percent from last year.


Ma p le t r e e I n d u st r ia l T r u st d e ve lo p s f a ci l i t y

f o r H P

Mapletree Industrial Trust (MIT) is reported to

be developing a built-to-suit (BTS) facility for

Hewlett-Packard Singapore. The facility will

be at MITs Telok Blangah Cluster property

and will cost $250 million including

construction and other costs but excluding the

book value. This will be MITs biggest BTS

development, which will reposition the

property to higher-value industrial use and

maximise current plot ratio as well as

strengthen MITshigh-tech building segment

and BTS track record.


http://www.moneymatters.sg/


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Non-Landed Residential Resale Property Transactions for the Week of Mar 5 Mar 11

NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority.Typically, caveats are lodged at least 2-3 weeks after a purchasersigns an OTP, hence the lagged nature of the data.

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

3 RIVER PLACE 1,582 2,500,000 1,580 99

3 ASCENTIA SKY 958 1,500,000 1,566 993 TANGLIN VIEW 1,152 1,600,000 1,389 99

4 CARIBBEAN AT KEPPEL BAY 1,270 1,860,000 1,464 99

5 REGENT PARK 1,141 1,275,000 1,117 99

5 REGENT PARK 807 850,000 1,053 99

8 KERRISDALE 1,281 1,438,888 1,123 99

10 TANGLIN PARK 1,604 2,750,000 1,715 FH

10 SIXTH AVENUE VILLE 2,486 3,231,800 1,300 FH

11 THE ARMADALE 1,033 1,580,000 1,529 FH

11 THOMSON 800 1,432 1,658,000 1,158 FH

12 OPAL SUITES 409 581,000 1,420 FH

12 THE VERVE 1,485 1,320,000 889 FH

14 SIMSVILLE 1,249 1,205,000 965 99

14 ATRIUM RESIDENCES 1,001 900,000 899 FH

14 ASTON MANSIONS 1,227 950,000 774 99

15 THE BELVEDERE 2,766 4,680,000 1,692 FH

15 MEYER RESIDENCE 904 1,425,000 1,576 FH

15 THE MAKENA 1,152 1,430,000 1,242 FH

15 EMERY POINT 1,324 1,525,000 1,152 FH

16 COSTA DEL SOL 1,755 2,225,000 1,268 99

18 NV RESIDENCES 743 870,000 1,171 99

19 SUMMER SCENT 1,711 1,650,000 964 999

19 PALM GROVE CONDOMINIUM 1,701 1,600,000 941 999

19 RIO VISTA 1,636 1,350,000 825 99

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

19 HOUGANG GREEN 1,141 858,000 752 99

19 REGENTVILLE 1,335 1,000,000 749 99

19 HOUGANG GREEN 1,141 850,000 745 99

19 RIO VISTA 1,679 1,220,000 727 99

20 BOONVIEW 646 880,000 1,363 FH

20 GRANDEUR 8 1,130 1,260,000 1,115 99

21 MAPLEWOODS 1,324 2,000,000 1,511 FH

21 SIGNATURE PARK 1,701 1,850,000 1,088 FH

21 CLEMENTI PARK 2,131 2,300,000 1,079 FH

21 PARC PALAIS 1,238 1,271,330 1,027 FH

21 PINE GROVE 1,679 1,420,000 846 99

22 PARC OASIS 1,076 998,000 927 99

22 IVORY HEIGHTS 1,701 1,320,000 776 100

23 GLENDALE PARK 1,313 1,425,000 1,085 FH

23 REGENT GROVE 926 780,000 843 99

23 PALM GARDENS 1,216 980,000 806 99

23 NORTHVALE 1,270 1,000,000 787 99

23 MAYSPRINGS 1,528 1,175,000 769 99

25 WOODGROVE CONDOMINIUM 2,486 1,460,000 587 99

27 THE ESTUARY 1,528 1,610,000 1,053 99

27 YISHUN SAPPHIRE 1,389 968,800 698 9 9

28 SUNRISE GARDENS 1,496 1,065,000 712 99

Documents

Singapore Property Weekly Issue 148