Singapore Real Estate Hot Property

Waterfront Isle at Bedok Reservoir doing good CNY Sales

Posted by Agent Tay on February 6th, 2011

Today is the 4th day of the Chinese Lunar New Year holiday, the holiday seems to zip past really fast, but the real estate market isn’t snoozing at all, unlike some of my colleagues (who are still in the holiday mood), developers – Far East Organization (in collaboration with) Fraser Centerpoint Homes developing the final parcel in the Bedok Reservoir district – Waterfront collection (waterfront waves, waterfront gold, waterfront key and now Waterfront Isle).

They launched a marketing blitz over the CNY holiday with big newspaper spreads drew renewed interest in the property. According to Channel News Asia, it is reported that a healthy crowd turned up at the Waterfront Isle showroom on Saturday, the third day of the Lunar New Year celebrations.

And as of 5.30pm, 29 of 59 units that were released on Saturday were sold. The number later rose to 37, as of 9pm.

Including sales from a preview last week, 125 out of 191 available units at the Bedok Reservoir development were snapped up so far.

This probably doesn’t mean that the recent property cooling measures didn’t work, but true long term investors and serious buyers who are not speculating that are coming in to buy property. Generally during such typical lull periods like the CNY holiday, developers throw in freebies, extra festive discounts etc thus bolstering sales.

Frivolous complaints made to CEA

Posted by Agent Tay on January 24th, 2011

When I read this article in the Today Newspaper, I felt that I really need to quote this entire article word-for-word. Let me hear what you guys think about it. Hope to hear your views about this.

Quoted from TodayOnline – [click here to see original article] by Ong Dai Lin, published 24 Jan 2011

SINGAPORE – The housing deal was almost completed when a misunderstanding arose. The buyer wanted to fix an appointment with the HDB so that he could move in soon as possible.

But the seller was not ready to move out yet. When told of this by the agent, the unhappy buyer emailed a complaint to the Council of Estate Agents (CEA).

The agent, who only wanted to be identified as Mr Tan, told MediaCorp: “I felt abused mentally by the buyer’s accusations … I felt disheartened. My integrity was at stake.”

However, after investigations, the CEA did not find Mr Tan at fault and did not take any action against him. But the incident, which happened last December, has scarred him, said Mr Tan, 44.

“We are like scum bags to some customers. But we are all professionals,” he said.

Some estate agencies told MediaCorp that since the watchdog was set up last November, they have seen frivolous complaints being made against their agents to CEA.

Associate director of ERA Singapore, Mr Eugene Lim, said: “They threaten the agents: If you don’t serve us properly, we’ll complain.”

When a complaint is filed against one of their agents, property firms have to carry out an internal investigation and submit a report to the CEA.

“If it is found to be frivolous, then we’ll state our stand and CEA will convey this to the customer. Once customers realise they are getting nowhere, they will stop,” said Mr Lim who noted that some customers filed complaints to try and get away with paying a lower commission.

Around 70 per cent of the complaints he has seen have been frivolous. “It doesn’t cost the public anything to complain,” said Mr Lim. The CEA, he felt, tend to entertain any kind of complaint.

PropNex CEO Mohamed Ismail said: “Complaints are being made because of the lack of education about the role of the CEA, the role of agents and the rights of consumers.”

The CEA, when asked how it protects the rights of estate agents, said that it investigates each complaint before concluding if a case warrants further action.

The complainant is also required to provide personal details and documents of the property deal when filing a complaint.

If the complainant chooses to be anonymous, the CEA is likely to treat the information as feedback, not as a complaint.

Examples of arguments which could be resolved amicably with the complainant include late response to the client’s phone calls or SMSes and miscommunications about the appointment date and time, added a spokesperson.

Holland Tower up for en bloc sale

Posted by Agent Tay on January 24th, 2011

Located at Holland Heights, in a good class bungalow area, but this condo has a height of 11 stories. The 21,879 sq ft site, zoned for ‘residential’ use, sits within the Holland Park Good Class Bungalow Area. Marketed by JLL, we hope to see what becomes of this sale, considering all the cooling measures that have been put in place, will it dampen the bids for such a prime piece of land?

China to expand property controls: report

Posted by Agent Tay on January 23rd, 2011

Quoting from AFP: BEIJING — China is to expand its limits on property purchases to second and third-tier cities, a report aid Sunday, as it steps up efforts to cool its real estate market.

Authorities have drawn up a list of cities that will have to implement the limits, the Chongqing Evening News quoted an unnamed high-level official at the Ministry of Housing and Urban-Rural Development as saying.

Qingdao and Jinan in the nation’s east are among cities set to put the rules into effect, as reported by AFP.

This is to extend the controls to cities outside the immediate “danger zone” or popular cities. Despite all these cooling measures, the inflationary pressures on property prices continue unabated. To the extent that many observers are concerned that should this continue, it will surely affect

What this means to us:

The impact on property investors of China properties is immense. The government is bent on stronger cooling measures, but it seems that despite their efforts the earlier measures have yet to have any effect on the burgeoning property market. Concerns that the investments will flow out of the hot zones into 2nd and 3rd tier cities, it is wise that they have also capped regulations on those cities as well, and probably not a moment too soon.

Emerging markets for Real Estate Investments

Posted by Agent Tay on January 23rd, 2011

Without a doubt undervalued property (perceived or actual) is always a preferred choice of real estate investment for all savvy real estate investors. Emerging markets in developing countries have always been a lure for the savvy investor that is by no means risk averse, where sometimes information is not readily available except privy to the privileged and well connected.

According to the Association of Foreign Investors of Real Estate:

[click here to download report in PDF]

Sadly, Singapore is neither emerging nor attractive to be placed in the Top Global Cities for Real estate investment. Perhaps its too small to be interesting.

Emerging Markets for Investment in 2011

Since 2009, when it was first ranked as an emerging market of interest, Brazil has held either the first (2009 and 2011) or second (2010) ranking. The trio of Brazil, China, and India dominate this ranking. Russia, which has been among the top five emerging markets in the last two years drops into tenth place.

Brazil (#2, tied with India, in 2010)
China (#1 in 2010)
India (#2, tied with Brazil in 2010)
Vietnam (unranked in 2010)
Mexico (#4 in 2010)

Top Global Cities Rank for 2011

London, which held sway as one of investors’ top two cities every year since 2001, has been deposed into third place. Shanghai returns to fifth place after dropping into ninth place in 2009. Tokyo moves out of the top five into fourteenth position.

New York (#3 in 2010)
Washington, DC (#2 in 2010)
London (#1 in 2010)
Paris (#4 in 2010)
Shanghai (#9 in 2010)

Top Countries Targeted for Real Estate Investment in 2011

Although historically, investment targeted to the U.S. earns a substantial margin over other countries, in this year’s survey it ranked nearly five times higher than second place U.K. In 2010, it ranked less than three times higher.

US (#1 in 2010)
UK (#2 in 2010)
Germany (# 3 tied with France in 2010)
China (#5 in 2010)
France (#3 tied with Germany in 2010)

Countries Providing the Best Opportunity for Capital Appreciation in 2011

Consistent with other answers to this year’s survey, the U.S. claimed an historically disproportionate number of votes, more than six times than that for second place China.

U.S. (#1 in 2010)
China (#3 in 2010)
U.K. (#2 in 2010)
Brazil (#4 in 2010)
Australia (unranked in 2010)

Lakeside city centre in Jurong

Posted by Agent Tay on January 23rd, 2011

Though not new stuff, but rather rehashed, reminded with further details added is the new jurong lakeside improvements, making it the business hub of the west (similar to what has been created in Tampines). Calling it the “Remaking Our Heartland” programme, though I find the naming of the “programme” a trifling corny, but I do not in anyway doubt the importance of such an endeavour.

For Jurong has been the industrial area, which beats to help bring Singapore strong and economically powerful in the late 70s and all the way till the mid 1990s, though now, it still boasts of many manufacturing companies located there, but they no longer boast of large production facilities hiring throngs of hardworking industrious individuals, but the brain rather than brawn now holds the fort in our “wild west” (which aint that wild now).

The “modernization” of our western shore will soon be the largest commercial hub outside the Central Business District. It will be home to the Jurong General Hospital and Community Hospital, a mall with an Olympic-sized ice-skating rink, and office facilities. The existing heartland neighbourhoods in Jurong are also set for a thorough facelift: a 24km network of pedestrian and cycling tracks linking up the region will be completed in five years.

Two new iconic Housing Board estates in the mould of Pinnacle@Duxton will also spring up alongside Bukit Batok Avenue 1, providing some 1,200 homes for new families or upgraders.

So current properties in this district would soon see a price appreciation due to value creation by our government.

New North South expressway boon for many, bane for few

Posted by Agent Tay on January 20th, 2011

When the news broke, many disbelieved it to be some prank, but rumours started 2 years ago that the government may acquire land in the Marymount Terrace area to make way for a new highway. Residences in Marymount Terrace woke up when they received official notices on Wednesday morning giving them till January 2013 to move out.

The last exercise involving land acquisition for an expressway was for the Kallang-Paya Lebar Expressway (KPE), that saw a few cases of unhappiness, unwilling tenants some which needed to be forcefully evicted. The KPE now popularly used by those living in the North East of Singapore, namely those in the Hougang, Punggol and SengKang area.

The new North South Expressway which sees 25 terrace, nunnery, a nursing home, offices and industrial estates taken out to make way for its construction. Though a boon for businesses and residences living in the north of Singapore, and definitely easing the heavy strain on the CTE, reducing the traffic jams despite ERP charges.

What this means to you

Properties in the north of Singapore, will become more attractive, given that it is one of the last few areas of Singapore that isn’t too closeted by our ever expanding concrete landscape, but it seems soon that one of the last few frontiers may soon be lost as well. Residents of Marymount Terrace, my sympathies goes out to you, but as with all government acquisition exercises, they rather hurt a small group for the larger benefit of the many. For businesses in Sin Ming area – like the new Mid View City and the older industrial area of Jalan Peminpin, will see renewed interest due to greater convenience as a result of this connectivity.

For properties in the Yio Chu Kang area affected by this – namely The Seletaris in Sembawang, Nuovo, Bullion Park and Castle Green, its not that bad, well you won’t need to move out of your condo, unlike the residents of the 25 acquired terrace houses, the loss of some of the common areas and space, just means that when you go for enbloc sale, there is less for you to gain. But I doubt the effect on the overall share value per unit will differ to such great an extent, it will be more of a psychological impact than a real impact.

When work starts in 2013, be sure that there will be lots of inconvenience, unhappiness, traffic jams and disgruntled residents of houses in the vicinity of the construction. Slowly but surely all these unhappiness will disappear once the new expressway is completed and gone when it is fully operational. When that happens, the prices of property in the areas linked to the new North South Expressway will rise slowly.

Property market not cooling – sales of Waterline and Lakefront Residences very active

Posted by Agent Tay on November 23rd, 2010

The sales of recently launched Waterline – by Sim Lian Group in Tampines Ave 1, and Lakefront Residences located near Lakeside MRT (Lakeside Drive), has been good (if not excellent). Both sales were quite well done before its official launch day.

The sales figures surprised observers as well as some market analysts, that feel the markets will be slowing down soon for the year-end holidays.

With such heated action, market watchers as well as various real estate professionals believe that the government may step in further to cool the heated property market if the previous regulations did not seem to stem interest by property investors.

Some real estate professionals feel that additional regulations may just kill off interest by investors all together, which may be detrimental to the health of the Singapore economy. It will also hurt genuine buyers and upgraders who wish to upgrade from a smaller unit to a larger unit due to increase in family size, but also wish to keep the smaller unit for investment purposes.

Some market watchers have even gone to the extent of claiming that much of these regulations are to stem foreign “HOT MONEY” from speculating and investing in the property market causing unrealistic price inflation. Although this is a plausible explanation, we should continue to welcome foreign investors that are looking at investing in Singapore in the medium to long term.

In a bid to settle some of these disgruntled Singaporeans, without frightening away prospective foreign investors, some changes have been put in place by our govt.

In Singapore, only citizens and permanent residents (PRs) who make ’significant economic contribution’ can own landed property. These PRs can buy only one such property, must live in it and cannot sell it for three years.

As for foreign developers, they can buy land to build homes, but the project must be completed in five years and all units sold within two years of it receiving the temporary occupancy permit. This is to prevent hoarding.

When the deadlines are not met, they will forfeit their banker’s guarantee, pegged at 10 per cent of the land price. But with the new law, an extension charge will also be levied for the extended time taken beyond the project completion period.

Hot Investment Done Deals

Posted by Agent Tay on August 3rd, 2010

Just like Katie Perry’s California girls, our property market is pretty hot. Or like Katie Perry, our property is hot.

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.

New Property Tax in China For Real?

Posted by Agent Tay on August 2nd, 2010

If you do not know what I am talking about, you must be confused by the headline. The deal with the new property tax is this – China will impose an additional 1% property tax on properties that are 3 times more than the average market price. This is Baloney in my view. Its so unsubstantial to quantify a property tax based on such a flimsy qualification. And the idea is to TRIAL it in Shanghai first, and this “TRIAL” is only going to be going online in 2012 – well that’s a whopping 1.5 years to go.

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.