Month: November 2024

Purchasing a Condo in Singapore provides numerous benefits, one of which is the potential for substantial capital growth. This is largely due to Singapore’s advantageous position as a leading global business hub and its strong economic foundation, which continuously drives demand for real estate. It is not surprising that the property market in Singapore has consistently shown an upward trend, with highly coveted Condos experiencing significant appreciation. By carefully timing their investment and implementing a long-term strategy, savvy investors have the opportunity to reap considerable returns in the flourishing real estate sector of Singapore. Therefore, a Condo serves as a valuable asset for individuals seeking a wise and enduring investment in Singapore’s ever-changing property market.

The latest Real Estate Sentiment Index (RESI) published by the National University of Singapore (NUS) suggests that property buying sentiment in Singapore has improved in the third quarter of 2024. The RESI, which measures the overall sentiment in the private real estate market, is compiled by surveying senior executives from real estate firms on a quarterly basis. The Department of Real Estate and the Institute of Real Estate and Urban Studies (IREUS) at NUS conduct this survey.

Based on the results, the current sentiment index has increased from 4.8 in the second quarter to 5.9 in the third quarter of 2024. The future sentiment index has also seen a positive growth, rising from 5.1 in the second quarter to 5.8 in the third quarter of the same year. Additionally, the composite sentiment index has risen to 5.9, up from 4.9 in the second quarter. This is the first time that all three indices have surpassed the neutral score of 5, indicating a growing optimism in the market.

IREUS director Professor Qian Wenlan credits the positive sentiment to the US Federal Reserve’s decision to cut interest rates in September 2024, the first rate cut since 2019, and another reduction in early November. She expects this trend to continue with more cuts in the coming months, which will improve credit availability and reduce business costs, ultimately boosting market sentiment.

Professor Sing Tien Foo, Provost’s Chair Professor at the NUS Department of Real Estate, also notes that the positive performance of the suburban residential, hotel/service apartments, and suburban retail segments have contributed to the overall market sentiment. Among these sectors, suburban residential and hotel/service apartments have recorded the highest current net balances of +35%, followed by suburban retail with +26%. The outlook for these segments is equally positive, with suburban residential scoring +29% and both hotel/service apartments and suburban retail scoring +35% and +19% respectively.

However, developers still express concern over global economic uncertainty, with 67.7% of respondents citing it as a potential risk. This is followed by job losses and a decline in the domestic economy, both of which were ranked at 41.9% as well as an excessive supply of new property launches.…

In the decision to invest in a Condo, one must take into account the responsibility of maintaining and managing it. Unlike traditional homes, Condos come with added costs in the form of maintenance fees that cover the upkeep of shared spaces and amenities such as pools and gyms. While these fees may impact the overall cost of owning a Condo, they also contribute to preserving its value. To simplify the management of a Condo, many investors opt to use the services of a property management company, providing a more hands-off approach to overseeing their Condo investment.

Singapore Takes its Place as Sixth Most Branded City in the World

In the recent Brand Finance Global City Index, Singapore has been ranked as the sixth highest city in terms of branding. This index, published by Brand Finance, a renowned brand evaluation and strategy consultancy based in London, measures cities based on their brand power and perceptions.

Conducted in September, the latest index is the result of a worldwide survey involving 15,000 individuals from 20 countries. The respondents were asked to rank 100 cities based on key performance indicators that showcase the city’s desirability for living, working, studying, visiting, retiring, and investing.

Moreover, the respondents were also requested to associate specific attributes with each city. They were presented with a list of 45 attributes that fall under seven pillars, including Business & Investment and Culture & Heritage.

Singapore’s impressive overall ranking can be credited to its strong performance in the business and investment pillar, securing the third spot globally. Under this pillar, the city’s attractiveness for doing business, economic strength, and supportive environment for start-ups were evaluated. Additionally, Singapore was also recognized for its low crime and violence rates.

According to Alex Haigh, the managing director for Asia Pacific at Brand Finance, Singapore stands out as the “crown jewel” in terms of city branding in the ASEAN region. “With its stellar economic expansion, investment appeal, and world-class infrastructure, Singapore solidifies its position as a leading global financial center,” he adds.

On a global scale, London maintains its top spot as the world’s most branded city, followed by New York, Paris, Tokyo, and Dubai. Singapore’s remarkable performance in this index further cements its reputation as a highly desirable and attractive city on the global stage.…

When it comes to investing in real estate, choosing the right location is essential, and this holds particularly true in Singapore. Condominiums situated in central areas or close to important amenities like schools, shopping malls, and public transportation hubs have a higher likelihood of appreciating in value. Prime locations, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently demonstrated strong growth in property values. Moreover, the demand for condos in these areas is further driven by their proximity to reputable schools and educational institutions, making them even more desirable for families. With the addition of new condo launches, these prime locations are set to continue their upward trend in property value, making them a highly attractive choice for real estate investors in Singapore.

From Nov 1 to Nov 10, K Suites, a freehold boutique development, achieved a new record of $2,443 psf for the sale of an 872 sq ft three-bedroom unit on the fourth floor, surpassing its previous high of $2,196 psf in May 2020. Located in District 15, K Suites is currently under construction and comprises 19 units. The project was redeveloped from the former Ji Liang Gardens, which was purchased en bloc for $18.6 million in June 2018.Freehold K Suites saw a new high of $2,443 psf from the developer’s sale of an 872 sq ft three-bedroom unit for $2.13 million on Nov 8 (Photo: Euro Properties)Thomson Three, a 99-year leasehold condo in District 20, also saw a new high during this period as a 1,033 sq ft three-bedroom unit on the 19th floor was sold for $2.46 million on Nov 6, translating to $2,379 psf. The seller had previously bought the unit for $1.86 million ($1,800 psf) in November 2014, making a net profit of $598,000. This surpassed the previous high of $2,204 psf achieved on Sept 26, from the sale of a similar-sized three-bedroom unit on the 19th floor for $2.28 million.Thomson Three reached a new high of $2,379 psf during the period in review (Photo: Samuel Isaac Chua/EdgeProp Singapore)19 Nassim, a luxury condo in prime District 10, observed a new low of $2,947 psf during this period, as a developer sold a 646 sq ft, one-bedroom unit on the fourth floor at about $1.9 million on Nov 9. This was the first time that the development’s prices had dropped below the $3,000 psf mark. It surpassed the previous low of $3,001 psf, achieved on March 22 when a 678 sq ft one-bedroom unit on the sixth floor was sold for $2.03 million.Based on caveats lodged, 50 units at 19 Nassim have been sold to date this year at an average price of $3,397 psf. This is 3.7% lower than the average price of $3,524 psf from the sale of eight units at the condo last year.Completed in 2023, 19 Nassim is a 99-year leasehold condo on Nassim Hill in prime District 10. The condo has 101 units housed in a 10-storey residential block. Units range from 538 sq ft to 1,830 sq ft and are a mix of one- to three-bedrooms. According to caveats lodged with URA, the condo has sold 61 (60%) of its units since it first launched for sale in 2020.Latest transactions at 19 Nassim (Photo: EP Buddy)…

In the bustling private residential market, it may be wise for real estate investors to consider more stable, income-generating assets such as HDB shophouses. A coveted opportunity has recently emerged for one such property in the well-established Toa Payoh neighborhood.

This particular HDB shophouse spans 1,478 sq ft and is situated at 125 Toa Payoh Lorong 1, in the heart of District 12. With a prime location along Toa Payoh Lorong 1 and Toa Payoh Lorong 2, as well as being less than 200m from Braddell MRT Station on the North-East Line, this property is highly desirable. Based on LTA ridership statistics, the station serves around 13,000 MRT passengers daily and is closely connected to the nearby HDB flats.

The shophouse is also conveniently near Toa Payoh West Market and Food Court, Kheng Cheng School, Toa Payoh West Community Centre, and the Singapore Federation of Chinese Clan Association Building on Toa Payoh Lorong 2. With ongoing rejuvenation plans for the Toa Payoh estate and a significant number of new households moving into the surrounding areas, the new owner stands to benefit from the transformation of Toa Payoh. This will lead to an increase in pedestrian traffic and boost the property’s capital value.

Comparison with the Market

Aster See, senior marketing director at ERA Realty, is exclusively marketing the HDB shophouse for sale. According to the seasoned industry professional, HDB shophouses in city fringe locations typically yield an ROI of 2-3% based on their selling price. However, the shophouse at 125 Toa Payoh Lorong 1 offers a higher estimated ROI of around 4%. With its competitive pricing and strong value proposition, this property stands out as a more attractive investment opportunity for those seeking better rental returns.

Insight into Finances

See also highlights that this property presents a promising investment opportunity with an estimated rental yield of approximately 4%. In the current market scenario, such yields are considered competitive and provide a stable income for investors. When coupled with potential future capital appreciation as Toa Payoh continues to revitalize, the long-term ROI of this property could be significant.

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Investors who are considering buying condominiums in Singapore should take into account an important factor – the government’s property cooling measures. These measures are in place to ensure a steady real estate market and discourage speculative buying, and have been implemented by the Singaporean government over the years. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. Although these measures may affect the short-term profitability of investing in condos, they ultimately contribute to the long-term stability of the market, creating a more secure environment for investors. This also applies to new condo launches as they are subject to the same measures. Thus, new condo launches offer a safer investment option for potential buyers due to the presence of these government measures.

Revitalizing Toa Payoh

Toa Payoh is set to benefit from several government initiatives and schemes aimed at rejuvenating this mature housing estate. It is one of three neighborhoods identified for revitalization under the government’s third phase of the Remaking Our Heartland program.

First introduced by then-Prime Minister Lee Hsien Loong in his 2007 National Day Rally speech, the program offers comprehensive rejuvenation plans for HDB towns and estates, ensuring their sustainability and vitality. Since 2015, the plans for Toa Payoh have been progressively implemented, with several projects aimed at enhancing commercial and recreational facilities. The most significant development is the upcoming integrated project at the site of the former swimming complex, sports hall, and stadium at Toa Payoh Lorong 6.

This integrated development will feature new sports facilities, a football stadium, a new swimming pool complex, indoor sports halls, sheltered tennis courts, futsal courts, netball courts, and fitness studios. It will also include national training centers for aquatics, netball, and table tennis, along with a polyclinic and library. The HDB shophouse for sale at 125 Toa Payoh Lorong 1 will benefit from this development, as it is located near Toa Payoh and Caldecott rejuvenation.

Rejuvenation Plans for Toa Payoh and Caldecott

The government’s plans for Toa Payoh and neighboring Caldecott are anchored by the construction of several thousand new flats in these two estates. One of the upcoming projects is Toa Payoh Ridge, a Build-To-Order (BTO) project situated at the junction of Toa Payoh Rise and Lorong 1 Toa Payoh. With 920 units, the BTO project was launched in the February 2020 exercise and is less than 300m from the HDB shophouse for sale.

Expected to be completed in the first half of 2025, Toa Payoh Ridge comprises four 40-storey residential blocks. It is located between Toa Payoh and the upcoming Caldecott estate, which has been earmarked for future residential development since 2017. During this time, the government announced plans to build new BTO flats on a 10ha plot next to Caldecott MRT Station on the Circle Line. These flats will be less than 500m from the HDB shophouse for sale at 125 Toa Payoh Lorong 1.

As seen, the government appears to be laying the groundwork for another BTO project in Caldecott, adjacent to Toa Payoh Ridge. Last February, the URA rezoned a plot at the junction of Toa Payoh Rise and Braddell Rise, changing its purpose from educational to residential use, with a high gross plot ratio of 5.0. This indicates that a high-rise BTO development could be in the pipeline.

Given the surrounding developments, the shophouse for sale could benefit from the increased footfall in the area as the consumer catchment broadens. As the government continues to construct new BTO flats in Caldecott and Toa Payoh, the area will attract an influx of new residents, boding well for the new owner of the HDB shophouse for sale.

For more information, please contact Aster See at 98416930, Senior Marketing Director (R063006G), ERA REALTY NETWORK PTE LTD.

RELATED NEWS

Eight HDB shophouse units at Bras Basah, Geylang, and Kallang going for sale from $19.5 million.

Two HDB shophouses in Toa Payoh and Ang Mo Kio available for $51 million.

HDB shop at Teck Whye Lane on the market for $4.45 million.…

When it comes to investing in condos in Singapore, one cannot ignore the impact of the government’s property cooling measures. Through the years, the Singaporean government has implemented various policies to discourage speculative buying and maintain a steady real estate market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which enforces higher taxes for foreign buyers and those purchasing multiple properties. While these may affect the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a secure environment for investors. This is why Singapore Projects continue to be a popular choice for investors looking for a stable and reliable investment option.

SINGAPORE (EDGEPROP) – JTC has awarded the tender for an industrial site at Kallang Way to CapitaLand Development’s subsidiary, CL Savour Property, for $368.901 million. This marks the first time an industrial site has been earmarked for adaptive reuse, with the existing terrace factory being retained and adapted for continued industrial use. The top bid, which is 14.9% higher than the second highest bid submitted by a consortium, sets the tone for the rejuvenation of this industrial area. The strategic integration of adaptive reuse not only aims to rejuvenate the area sustainably, but also reduces carbon emissions in the built environment while preserving the industrial legacy of the site, according to Tang Hsiao Ling, director of urban planning and architecture division at JTC. The site, launched as the last of five Confirmed List sites in the 1H2024 IGLS programme, was launched on June 25 and received four bids at the close of the tender on Oct 1. With a total land area of 474,772 sq ft, the site is zoned Business 2 under the master plan and has a maximum allowable gross floor area of 1.23 million sq ft. It also has a 33-year tenure and falls under a designated food zone, with the new development set to feature food manufacturing spaces and retail uses to inject vibrancy into the industrial area.…

When it comes to investing in property in Singapore, it is crucial for foreign investors to have a good grasp of the regulations and restrictions in place. In comparison to landed properties, which have more stringent ownership guidelines, foreigners can purchase condos with less limitation. However, it is worth noting that foreign buyers are still required to pay the ABSD, which is currently set at 20% for their initial property acquisition. Nevertheless, despite this added cost, the stability and potential for growth in Singapore’s real estate market remains a strong draw for foreign investment. This is evident in the continued interest and involvement of foreign investors in various Singapore projects.

Located in the bustling area of Choa Chu Kang, a coffee shop at 253 Choa Chu Kang Ave 1 is now available for purchase through expression of interest (EOI) with a guide price of $11 million. The spacious shop covers an area of 2,540 sq ft and is situated within the popular Keat Hong Shopping Centre, a two-storey HDB commercial complex that houses numerous food stalls, a supermarket, and other shops.

This commercial property is zoned for commercial use and boasts a 99-year leasehold tenure with 68 years remaining. Positioned on the ground floor, it is currently rented out to a coffee shop operator and consists of seven food stalls and a drink stall. The location of Keat Hong Shopping Centre can be seen on the map below (Source: EdgeProp LandLens).

According to Jervis Isaiah Ng, the founder of JNA Real Estate, a team under PropNex Realty, potential buyers have the option to personally operate the coffee shop, renovate and lease it out, or continue leasing it to another coffee shop operator. JNA Real Estate has been appointed as the exclusive marketing agent for the property. It is worth noting that the property does not include living quarters, which makes it exempt from Additional Buyer’s Stamp Duty.

Keat Hong Shopping Centre is conveniently located within walking distance from South View LRT Station on the Bukit Panjang LRT Line and the upcoming Choa Chu Kang West MRT Station on the Jurong Region Line, which is expected to be completed in 2027. Other amenities, such as Choa Chu Kang Primary School and the recently renovated Choa Chu Kang West Market, are also in close proximity.

Interested parties can submit their expressions of interest by Dec 22 at 3pm.…

‘s main structure to push sales timing

On November 19, Keppel announced the divestment of its data centre joint venture (JV) to Keppel DC REIT (KDC REIT) for a total gross divestment price of $1.38 billion. The JV, which is owned 60% by Keppel’s connectivity division and 40% by Cuscaden Peak Investments Private Limited, owns the Keppel Data Centre Campus situated at Genting Lane in Singapore. The campus comprises two fully contracted and completed data centres, namely Keppel DC Singapore 7 (KDC SGP 7) and Keppel DC Singapore 8 (KDC SGP 8). Both data centres are fully contracted to global hyperscalers from various sectors, including cloud services, internet enterprises, and telecommunications, on a colocation basis. The JV, together with Keppel’s private fund Alpha Data Centre Fund, its parallel fund (ADCF), and co-investors, funded the construction of both data centres.

Rewritten:

Investing in a condo has multiple advantages, including the opportunity to leverage the property’s value for other investments. It is common for investors to use their condos as collateral in order to secure additional financing for new ventures, which can lead to the growth of their real estate portfolio. While this approach can potentially increase profits, it also carries some risks. It is important to have a well-thought-out financial plan and to carefully assess the potential effects of market fluctuations. Additionally, keeping an eye on New Condo Launches can provide opportunities for further investment.

After the proposed transaction is completed, KDC REIT will become the sole owner of KDC SGP 7 and KDC SGP 8. Keppel will continue to operate and manage the two data centres. KDC REIT will acquire an initial 49% interest in the JV and subscribe to two new classes of securities issued by the Keppel JV for up to $1.03 billion. This will give the REIT 99.49% of the economic interest in both data centres. KDC REIT will also have a call option, which it plans to exercise in the second half of 2025, to acquire the remaining 51% stake in the Keppel JV from Keppel. This remaining stake has an economic interest of 0.51% in the data centres. As part of the proposed transaction, KDC REIT will pay an additional $350 million to the JV’s shareholders, ADCF and co-investors, if the campus is granted an extension of its land tenure lease to 2050.

The proposed acquisition by KDC REIT is expected to increase its distribution per unit (DPU) by 8.1%. Additionally, it will expand the REIT’s assets under management (AUM) by 36%, reaching $5.2 billion with a total of 25 data centres across Asia Pacific and Europe. Keppel will receive around $280 million from the divestment. The gross divestment price encompasses the estimated consideration for Keppel’s 51% stake in the JV if the call option is exercised, as well as additional consideration for the extension of the campus’s land tenure lease for 10 years, assuming the call option is exercised. The gross divestment price will also be adjusted for debt repayment and completion adjustments.

The JV also possesses a vacant plot of land intended for a third data centre, which is not part of the transaction. The plot will be leased to Keppel’s private funds, Keppel DC Fund II and the upcoming Keppel DC Fund III. Keppel intends to develop the third data centre, KDC SGP 9, with the two data centre private funds.

Manjot Singh Mann, CEO of Keppel’s connectivity division, says that the injection of KDC SGP 7 and KDC SGP 8 into Keppel DC REIT showcases their ability to structure deals that offer strong value creation for the company, its private funds, and the REIT. He adds that their integrated ecosystem provides access to essential resources like power, technology expertise, and customer relationships with hyperscalers worldwide, which are crucial to success in the data centre business. The company can work with multiple pools of capital to create a strong pipeline of AI-ready data centres that provide effective solutions for customers while offering attractive investments for their funds and REIT.

Loh Hwee Long, CEO of KDC REIT’s manager, says that the REIT is thrilled to embark on this landmark deal on its 10th anniversary. KDC REIT launched its initial public offering (IPO) in 2014. He adds that the transaction will provide substantial positive cash flows and immediately increase DPU. The inclusion of these assets will not only enhance the portfolio’s income resilience but also allow them to benefit from potential rental uplifts and capacity expansion. This transaction further solidifies Keppel DC REIT’s position in the market as one of the largest owners of stabilized data centres in Singapore, where there is a strong demand and limited supply.

The proposed transaction will be executed in stages and is expected to be completed by the end of 2025.…