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Singapore Property Weekly Issue 11
Singapore Property Weekly Issue 11
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Contents
Singapore Property This Week How to Invest in Property for Your Retirement Non-Landed Residential Resale Property Transactions for the Week of July 16-22 Singapore Property Classifieds #1 Pg 2
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Grand Tower sold at $88.5 million in a collective sale Located at Moulmein Rise, 21,742 sq ft freehold Grand Tower was sold to 27MR Pte Ltd in a collective sale at $88.5 million (approximately $1,376 psf of potential GFA) with no DC payable. The 33-year-old site can be redeveloped into a high-rise apartment development that consists of over 70 apartments of 800 sq ft on average, and a maximum GFA of around 64,310 sq ft. The breakeven cost for the new development is around $1,900 psf to $2,000 psf. Current owners of the 28 apartments of around 1,873 sq ft will each receive around $3.16 million ($1,688 psf) on strata area from the sale.
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Commercial Wheelocks net profit decreased 55.7% in Q2 Wheelock Properties (Singapore) reported a 55.7% year-on-year decrease in net profit to $37 million, and a 61.8% decline in revenue to $67.6 million in Q2. Wheelocks H1 net profit improved by 33.3% to $89.4 million, whereas revenue decreased 40% to $170.4 million. Wheelock attributed the decrease in revenue in Q2 and H1 to the completion of Ardmore Two and Orchard View, and lower revenue generated by Scotts Square due to ongoing construction works. However, Wheelock Properties, which has began developing a showflat for its Ardmore Three Project, had an increase in revenue and profit from investments in Q2 and H1. Singapore developers will be building more office space in suburban area as companies shift operations away from downtown to cut costs Suburban office space supply is estimated to increase to 920,000 sq ft in 2014, five times more than the 190,000 sq ft that is going to be finished this year, as more companies such as Credit Suisse plans to shift its operation away from downtown to reduce costs. By shifting its operation to One@Changi City, Credit Suisse will pay a rent of about $4 psf, which is about one-third the amount paid for its current location at downtown. Government data showed that rents in the CBD are 2.3 times more than those in the suburban areas.
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What is your outlook on the Singapore property market for the next 12 months? I am mildly positive, especially for the mid-tier residential and luxury residential segments. I am seeing more activities and enquiries in the segment of $2 to $5 million with prices in the $1,500 to $2,500 psf range.
Copyright 2011 www.Propwise.sg. All Rights Reserved.
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Which areas and types of properties do you think are more promising for property investment, and which areas should we avoid? This depends on what investors are familiar with. Most investors would go for residential because it is a sector which is straightforward to understand, has a deep market, and sufficient data for decision making.
In terms of geographical areas, I am positive on the Holland area and negative on Bukit
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What is your book Real Estate Riches about and why did you decide to write it? Many real estate investors plunge into the market with a little bit of knowledge, calling a few agents they found on the internet, speaking with friends and reading articles here and there. But we know that a little knowledge is a dangerous thing, especially when we are not aware of what we do not know. Many investors live with decisions they regret, simply because they thought their research and understanding of the market was sufficient.
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I have come across many investors who received bad misleading advice from agents and from reading articles that were neither researched nor substantiated. As such, I am constantly approached to help troubleshoot the issues investors face,
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By Ku Swee Yong, founder of real estate agency International Property Advisor, which provides services to high net worth individuals. Real Estate Riches is available at major bookstores including Times, Kinokuniya, Popular, Page One, NUS, and the airport bookshops (Dufry and Relay).
Copyright 2011 www.Propwise.sg. All Rights Reserved.
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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.
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