Singapore Property Weekly Issue 25
-
Upload
propwisesg -
Category
Documents
-
view
827 -
download
1
description
Transcript of Singapore Property Weekly Issue 25
Issue 25 Copyright © 2011 www.Propwise.sg. All Rights Reserved.
Contribute Do you have articles and insights and articles that you’d like to share with thousands of readers interested in the Singapore property market? Send them to us at [email protected], and if they’re good enough, we’ll publish them here, on our blog and even on Yahoo! News.
Advertise Want to get your brand, product, service or property listing out to thousands of Singapore property investors at a very reasonable cost? Head over to www.propwise.sg/advertise/ to find out more.
CONTENTS p2 Singapore Property News This Week
p5 How to Calculate Your Property’s
Return On Investment
p9 Resale Property Transactions (October 22 – 28)
p11 Singapore Property Classifieds #15
Welcome to the 25th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 25
Singapore Property This Week
Page | 2 Back to Contents
Residential
Indian citizens more likely to purchase
resale private homes than mainland
Chinese, Indonesians and Malaysians
DTZ's analysis showed that 82% of the total of
private homes that Indian citizens (PRs as
well as non-PR foreigners) purchased in Q3
2011 were from the resale market, twice of
what the other three major nationalities
(mainland Chinese, Malaysians and
Indonesians) who buy private homes in
Singapore bought. The other three are more
likely to purchase directly from developers,
suggesting that they might be investors and
specu-vestors, and hence have no need for
immediate occupation, unlike Indian buyers.
In Q3, 51% of what mainland Chinese bought
was from developers, with the remaining from
secondary market deals. Similarly, 48% and
49% of the private homes purchases by
Malaysians and Indonesians were directly
bought from developers.
DTZ : Foreign buyers loses interest in
subsales
Less foreigners (particularly non-PR
foreigners) are buying private homes in the
subsale market. The trend found across all
buyers (foreigners, PRs and Singaporeans) is
to buy directly from the developers. This is
due to the increase in launches from
developers as well as governmental
measures to deter short-term trading of
private homes.
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 3 Back to Contents
The percentage of private home sales by
foreigners in the subsale market has fallen
from 18-21 % in 2007-2009 to 11 % in the first
nine months of this year. The corresponding
figures for PRs and Singaporeans are 13-14%
to 10% and 11-13% to 8% respectively.
Lower asking price of $323m for Vista Park
319,248 sq ft leasehold Vista Park at South
Buona Vista Road is asking for $323m now,
lower than the $338m it asked for in May. The
site with a remaining lease term of 66 years
has a maximum gross floor area of 446,947
square feet, reflecting a 1.4 gross plot ratio.
The reserve price is equivalent to a land price
of $824 psf ppr including an estimated $45.3
million for topping up the site's lease to 99
years. The breakeven cost is estimated to be
$1,250 psf. The tender for Vista Park closes
on Dec 7.
Commercial
13-storey Paya Lebar Square to start
selling office units in December
Paya Lebar Development Pte Ltd is set to sell
its 550 office strata units in Paya Lebar
Square, located next to the Paya Lebar MRT
Station on the East-West Line in December.
Half of the units available will be about 480 sq
ft each with some larger units of 800 sq ft and
1,500 sq ft. Contiguous units can be bought to
combine them into larger offices and office
units on a single floor would add up to 43,000
sq ft. Indicative prices range from $1,650 to
$2,000 psf, with the cheapest being $800,000
for a 480 sq ft office on the fourth level. There
is a total of 430,000 sq ft of offices with the
remaining net lettable area of 95,000 sq ft in
the building for a retail podium in Basement 1
to Level 2.
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 4 Back to Contents
New industrial site at Sims Drive/Aljunied
Rd released under Reserve List
The 60-year leasehold 0.63 hectares site
zoned for Business 1 uses has a maximum
permissible gross plot ratio of 2.5. It will only
be released for sale if the criteria for the
triggering of the site are met.
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 5 Back to Contents
How to Calculate Your Property’s Return On Investment
By Mr. Propwise
People who are interested in investing in
property often get the well-meaning advice to
“do your sums” before making the leap. As
property is often one of the biggest purchases
that you will make in your lifetime, and usually
comes with a large mortgage that can result
in financial distress if not managed properly, I
completely agree that you should “do your
sums”. But what does that mean?
It’s an ambiguous term that I think covers
three essential components of analyzing a
property purchase:
1. The attractiveness of the property relative
to the surrounding units, projects and areas
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 6 Back to Contents
2. Your ability to service the mortgage
including all your other commitments and
accounting for some bad scenarios (e.g. your
falling sick or losing your job) 3. The potential
upside or downside of your investment based
on both the potential yield and capital
appreciation. In this article we will focus on the
third part – calculating your Return On
Investment (ROI)
ROI defined
ROI is simply the percentage gain of an
investment after deducting the associated
costs of that investment. A simple formula to
calculate this is as follows:
ROI = (Gain from investment – Cost of
investment) / Cost of investment
However, as you have probably guessed, for
property investments there are a large number
of variables that go into calculating each of the
above components, and the number will also
be distorted by the use of a loan.
Property investors typically use an Out of
Pocket (or “Cash on Cash”) method to
calculate return. This method looks at how
much cash you put in, and then calculates
your return based on how much cash you will
get back after accounting for all expenses.
A case study example
The calculation is best illustrated by the use of
an example, and I will use one from the book
Real Estate Riches by Ku Swee Yong. In it he
goes through the example of an actual
property his firm International Property Advisor
Pte Ltd helped a client to source.
The property was a 3-bedroom (1,152 square
feet) mid-floor pool-facing unit at Blue
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 7 Back to Contents
Horizon (a condominium located at West
Coast Crescent). The transacted price of the
property was $1.02 million or $885 per square
foot. Taking into account the downpayment of
40% (we are assuming a 60% loan), stamp
duty of $25,200 and the legal fees of $2,500
(this is usually absorbed by the bank but we
will include it here to be conservative), the total
cash outlay is $435,700.
This particular property had a monthly rental of
$3,800 that was on a lease that would last till
November 2012, giving a gross annual rental
of $45,600.
Moving on to the expenses side, if we assume
an interest rate on the loan of 1% per annum,
then the annual interest costs on the 60% loan
will be $6,120 (this does not include principal
repayments). The owner will also have to
cover the $3,120 annual cost of the
maintenance fee plus the sinking fund, and a
property tax of $4,560 (10% of annual revenue
– we have not taken out expenses to keep it
simple). To keep things simple, we will assume
no additional costs for repairs etc. The total
expenses are thus $13,800.
Subtracting this from the gross annual rental
we get a net retained rental of $31,800. Note
that part of this will have to go towards
reducing the principal amount of the mortgage,
which is part of the monthly mortgage
payment that you make to the bank.
And thus the return on invested cash is the net
retained rental of $31,800 divided by the total
cash outlay of $435,700, which gives a return
of 7.3%. Not too shabby when compared to
deposit rates that are close to 0%,
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 8 Back to Contents
but note that the return has been enhanced by
leverage, and if interest rates rise this return
will fall. Also it doesn’t take into account any
gaps in the rental income when tenants move
out and the property is empty.
To recap, you can calculate your return on
invested cash using the following formula:
Net retained rental
(= Gross annual rental – mortgage interest
– maintenance fees – property tax – other
expenses)
Divided By
Total cash outlay (= downpayment + stamp
duty + legal fees)
Note that the above calculation looks at only
the yield of a property when owning it for
rental, and any capital appreciation you get
when you sell the property is extra, which you
can then add on top of this.
Happy investing, but don’t forget to do your
sums!
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 9 Back to Contents
Non-Landed Residential Resale Property Transactions for the Week of Oct 22 - 28
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
3 EMERALD PARK 926 985,000 1,064 99
3 EMERALD PARK 947 1,000,000 1,056 99
4 CARIBBEAN AT KEPPEL BAY 1,216 1,780,000 1,463 99
5 ONE-NORTH RESIDENCES 980 1,380,000 1,409 99
5 BOTANNIA 1,270 1,450,000 1,142 956
5 DOVER PARKVIEW 936 965,000 1,030 99
5 BLUE HORIZON 1,163 1,123,000 966 99
5 DOVER PARKVIEW 936 900,000 961 99
8 CITYLIGHTS 678 1,000,000 1,475 99
8 KERRISDALE 1,259 1,370,000 1,088 99
9 THE LIGHT @ CAIRNHILL 1,690 3,400,000 2,012 FH
9 THE PIER AT ROBERTSON 743 1,380,000 1,858 FH
9 THE IMPERIAL 1,410 2,600,000 1,844 FH
9 PARC EMILY 893 1,560,000 1,746 FH
9 MIRAGE TOWER 570 925,000 1,621 FH
9 CAVENAGH COURT 1,862 2,380,000 1,278 FH
9 8 @ MOUNT SOPHIA 2,174 2,588,000 1,190 103
10 NASSIM JADE 2,153 5,100,000 2,369 FH
10 THE ORANGE GROVE 2,777 5,672,000 2,042 FH
10 REGENCY PARK 3,175 5,500,000 1,732 FH
11 PARK INFINIA AT WEE NAM 1,001 1,901,900 1,900 FH
11 1 MOULMEIN RISE 1,238 1,780,000 1,438 FH
11 AMARYLLIS VILLE 958 1,330,000 1,388 99
11 M21 1,345 1,776,720 1,320 FH
11 THE ANSLEY 1,292 1,650,000 1,277 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
11 THOMSON 800 1,399 1,600,000 1,143 FH
12 PARC HAVEN 1,313 1,420,000 1,081 FH
12 SUNVILLE 1,141 1,000,000 876 FH
14 ATRIUM RESIDENCES 1,259 1,105,000 877 FH
14 SIMSVILLE 1,528 1,195,000 782 99
14 EUNOSVILLE 1,701 1,270,000 747 102
14 SIMS POINT 1,227 875,000 713 FH
14 CARMI MANSION 1,313 600,000 457 FH
15 AALTO 1,528 2,850,000 1,865 FH
15 THE ESTA 1,475 1,945,000 1,319 FH
15 COTE D'AZUR 1,313 1,650,000 1,256 99
15 SANCTUARY GREEN 1,711 2,100,000 1,227 99
15 PARADISE PALMS 1,141 1,380,000 1,209 FH
15 OCEAN PARK 1,873 2,240,000 1,196 FH
15 TANJONG RIA CONDOMINIUM 635 726,800 1,144 99
15 TIERRA VUE 1,916 2,150,000 1,122 FH
15 HAIG COURT 1,076 1,190,000 1,106 FH
15 PARK EAST 2,024 2,120,000 1,048 FH
15 CADENCE LIGHT 850 878,000 1,033 FH
15 THE GERANIUM 947 960,000 1,013 FH
15 PARK EAST 1,292 1,285,000 995 FH
15 NEPTUNE COURT 1,636 1,300,000 795 99
16 COSTA DEL SOL 1,227 1,685,000 1,373 99
16 COSTA DEL SOL 2,045 2,460,000 1,203 99
16 THE SUMMIT 1,249 1,300,000 1,041 FH
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 10 Back to Contents
NOTE: This data only covers non-landed residential resale
property transactions with caveats lodged with the Singapore
Land Authority. Typically, caveats are lodged at least 2-3 weeks
after a purchaser signs an OTP, hence the lagged nature of the
data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
16 LAGUNA GREEN 1,475 1,333,000 904 99
16 CASAFINA 2,131 1,425,000 669 99
17 BLUWATERS 2 1,496 935,000 625 946
18 EASTPOINT GREEN 1,141 975,000 855 99
18 MELVILLE PARK 936 770,000 822 99
18 CHANGI RISE CONDOMINIUM 1,130 908,888 804 99
18 MELVILLE PARK 936 745,000 796 99
18 SAVANNAH CONDOPARK 1,453 1,150,000 791 99
18 MELVILLE PARK 936 740,000 790 99
19 THE QUARTZ 1,195 1,160,000 971 99
19 CHILTERN PARK 1,270 1,172,000 923 99
19 THE QUARTZ 1,206 1,100,000 912 99
19 CHILTERN PARK 1,270 1,150,000 905 99
19 CASA ROSA 1,130 875,000 774 99
20 CLOVER BY THE PARK 1,604 1,750,000 1,091 99
20 CLOVER BY THE PARK 1,572 1,650,000 1,050 99
20 THE GARDENS AT BISHAN 883 870,000 986 99
20 THE GARDENS AT BISHAN 1,227 1,145,000 933 99
20 GRANDEUR 8 1,227 900,000 733 99
21 MAPLEWOODS 1,378 1,800,000 1,306 FH
21 1 KING ALBERT PARK 1,281 1,600,000 1,249 FH
21 CLEMENTI PARK 1,539 1,510,000 981 FH
21 THE HILLSIDE 1,528 1,490,000 975 FH
21 SIGNATURE PARK 1,701 1,650,000 970 FH
21 SHERWOOD TOWER 1,518 1,050,000 692 99
21 SHERWOOD TOWER 1,755 1,115,000 635 99
22 THE MAYFAIR 1,184 958,000 809 99
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
22 LAKEPOINT CONDOMINIUM 2,217 1,280,000 577 99
23 THE JADE 1,012 940,000 929 99
23 MAYSPRINGS 807 740,000 917 99
23 THE MADEIRA 1,733 1,500,000 866 99
23 THE LINEAR 1,206 1,000,000 829 999
23 YEWTEE RESIDENCES 1,195 955,834 800 99
23 REGENT HEIGHTS 1,163 830,000 714 99
23 MAYSPRINGS 1,550 1,020,000 658 99
25 CASABLANCA 1,130 900,000 796 99
25 ROSEWOOD 1,173 867,700 740 99
25 WOODGROVE CONDOMINIUM 1,518 1,030,000 679 99
26 FOREST HILLS CONDOMINIUM 1,539 970,000 630 99
27 SELETARIS 1,087 845,000 777 FH
27 YISHUN SAPPHIRE 1,023 760,000 743 99
27 EUPHONY GARDENS 1,518 918,000 605 99
Singapore Property Classifieds #15 For Sale
SINGAPORE PROPERTY WEEKLY Issue 25
Page | 11 Back to Contents
Lavender St Office, 1000-sqft modern
renovation 999-yrs carpark nearby. Pictures:
www.limyumu.com. Mark Lim 9739-9985
R018154H DWG
North Point Bizhub (B1). 2669-sqft parking lot
mezzanine toilet TOP end 2012. Pictures:
www.limyumu.com. Mark Lim 9739-9985
R018154H DWG
Verdana Villas (FH Cluster Semi-Detach). 4370-
sqft Pool Lift Carpark TOP 2014. Pictures:
www.limyumu.com. Mark Lim 9739-9985
R018154H DWG
HDB BLK 112 SIMEI (5I), 122sqm, 7 min to
MRT, #02 Nicely Renovated Corner. Val $520k.
Main Door Face North East. Call Nelson Lim
83680693