Month: November 2024

The latest Real Estate Sentiment Index (RESI) published by the National University of Singapore (NUS) indicates a positive change in the property buying sentiment in Singapore during the third quarter of 2024. This index, which measures the overall performance of the private real estate market, is based on surveys carried out by NUS’s Department of Real Estate and the NUS Institute of Real Estate and Urban Studies (IREUS) with senior executives of real estate firms. The current sentiment index has seen a growth from 4.8 in the second quarter to 5.9 in the third quarter. The future sentiment index has also seen an increase from 5.1 to 5.8 in the same period.

IREUS director, Professor Qian Wenlan, attributes this positive change in sentiment to the US Federal Reserve’s rate cut in September, which was the first since 2019, and another cut in November. This, she believes, will lead to improved credit availability and business costs, thus raising the overall market sentiment. Similarly, Professor Sing Tien Foo, Provost’s Chair Professor at the NUS Department of Real Estate, notes that the performance of suburban residential, hotel/service apartments, and suburban retail areas has also contributed to the positive sentiment in the market. These sectors have recorded the highest current net balances of +35%, +35%, and +26%, respectively. The future outlook for these sectors is also positive, with net balances of +29%, +35%, and +19%, respectively.

In Singapore, it is crucial for international investors to be familiar with the regulations and limitations surrounding property ownership. While foreigners can freely purchase condos, they face more stringent ownership rules when it comes to landed properties. Additionally, foreign buyers must also consider the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property acquisition. Nevertheless, the steady and promising growth of the Singapore real estate market remains a strong draw for foreign investment, making it a prime spot for New Condo Launches.

Despite the positive sentiment, global economic uncertainty remains the top risk concern for developers, with 67.7% of respondents indicating a decline in the global economy as a potential risk. This is followed by job losses, a decline in the domestic economy, and an excessive supply of new property launches, which are ranked at 41.9%.…

Singapore has been named the sixth highest city in the world for branding, according to the latest Brand Finance Global City Index. The index, published by London-based brand evaluation and strategy consultancy Brand Finance, ranks the top cities in terms of brand power and perception.

The latest index was compiled from a global survey of 15,000 individuals across 20 countries in September. The participants were asked to rank 100 cities based on key performance indicators, such as their perceived desirability as a place to live, work, study, visit, retire, and invest in. They were also asked to associate certain attributes with each city from a list of 45, grouped under seven pillars including Business & Investment and Culture & Heritage.

Singapore’s impressive performance in the Business and Investment pillar, where it ranked third globally, contributed to its high overall ranking. This pillar considered factors such as the ease of doing business, strength of the economy, and support for start-ups. The city also scored well for its low crime and violence rates.

Singapore boasts a dynamic urban landscape, characterized by towering skyscrapers and state-of-the-art infrastructure. One prominent feature of this landscape is the abundance of luxurious condominiums, strategically situated in prime locations. These sleek residential complexes offer the perfect combination of opulence and convenience, making them a highly sought-after choice among both locals and foreigners. With top-notch facilities like swimming pools, fitness centers, and round-the-clock security, these condos offer an elevated standard of living, making them incredibly desirable to potential tenants and buyers. Moreover, for investors, these alluring amenities translate into higher rental yields and escalate property values over time. Explore the latest Singapore projects at Singapore Projects, and experience the epitome of luxury living.

According to Alex Haigh, managing director for Asia Pacific at Brand Finance, Singapore stands out as the “crown jewel” of the ASEAN region in terms of city branding. Haigh also notes that Singapore’s strong economic growth, investment appeal, and world-class infrastructure solidify its position as a premier global financial center.

Globally, London maintained its top spot as the world’s leading city brand, followed by New York, Paris, Tokyo, and Dubai.…

EdgeProp | December 6, 2021

Singapore’s boutique development K Suites has set a new record for condos that saw new psf-price highs from Nov 1 to Nov 10. The freehold development achieved a new high of $2,443 psf from the developer’s sale of a 872 sq ft three-bedroom unit for $2.13 million on Nov 8. This is the first time that the condo has crossed the $2,400 psf mark, surpassing the previous high of $2,196 psf set in May 2023.

Located in District 15, K Suites is currently under construction and features a five-storey apartment block with 19 units. The project is a redevelopment of the former Ji Liang Gardens, which was purchased by the developer for $18.6 million in June 2021. Units at K Suites range from three to four bedrooms and have sizes ranging from 797 sq ft to 1,270 sq ft. The development has sold 42% of its units since it first started selling in April 2023, with an average price of $2,099 psf.

Thomson Three, a 99-year leasehold condo in District 20, also achieved a new high during the period in review. The developer’s sale of a 1,033 sq ft three-bedroom unit on the 19th floor for $2.46 million on Nov 6 set a new record of $2,379 psf. The seller had previously bought the unit in a resale transaction for $1.86 million ($1,800 psf) in Nov 2021, making a net profit of $598,000.

On the other hand, luxury condo 19 Nassim saw a new psf-price low of $2,947 psf during the period in review. This came from the developer’s sale of a 646 sq ft one-bedroom unit on the fourth floor of the development for $1.9 million on Nov 9. This is the first time that the development has dropped below the $3,000 psf mark, setting a new record low.

Completed in 2023, 19 Nassim features 101 units ranging from 538 sq ft to 1,830 sq ft. Despite previously achieving a high of $3,001 psf, the condo has seen a decline in average prices this year, with 50 units sold at an average price of $3,397 psf, 3.7% lower than last year’s average price of $3,524 psf.

Overall, the condo market in Singapore has seen a mix of record highs and lows during the period in review, with K Suites breaking a new record and 19 Nassim experiencing a decline in average prices. It remains to be seen how the market will fare in the coming months.

The scarcity of land in Singapore is a major driver of the high demand for condos in the country. Being a small island with a rapidly increasing population, Singapore struggles with limited land for development. This has resulted in strict land use regulations and a cut-throat real estate market where property costs continue to rise. In such an environment, the option of investing in real estate, specifically condos, becomes highly enticing due to the potential for capital appreciation. With the introduction of new condo launches, the demand for condos in Singapore is expected to increase even further.…

The private residential market is currently experiencing a flurry of activity, but it may be wise for real estate investors to consider more stable, income-generating assets like HDB shophouses. In the mature neighbourhood of Toa Payoh, an opportunity has just arisen to acquire one such prized property.

Located at 125 Toa Payoh Lorong 1, this 1,478 sq ft HDB shophouse is situated in one of the most central estates in District 12. With an asking price of $2.88 million, it sits on a prime site bounded by Toa Payoh Lorong 1 and Toa Payoh Lorong 2, and is less than 200m from Braddell MRT Station on the North-East Line. According to LTA ridership statistics, this station serves approximately 13,000 MRT riders daily and is intrinsically linked to the nearby HDB flats.

The shophouse is also conveniently located 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 several rejuvenation plans in the works for the Toa Payoh estate and the influx of several thousand new households, the new owner of this shophouse stands to benefit from the transformation of the area. This is expected to increase pedestrian footfall and uplift capital values, making this property an attractive investment opportunity.

When compared to other HDB shophouses in the city fringe locations, this one stands out for its estimated return on investment (ROI) of approximately 4%. According to Aster See, Senior Marketing Director of ERA Realty, most HDB shophouses in these areas typically offer an ROI of 2-3% based on their sales price. This makes 125 Toa Payoh Lorong 1 an appealing option for investors looking for higher rental returns.

The cityscape of Singapore is characterized by towering skyscrapers and state-of-the-art infrastructure. In sought after locations, condominiums offer a combination of lavishness and practicality, appealing to both locals and foreigners. These residences boast a plethora of facilities, including swimming pools, fitness centers, and top-notch security services, elevating the standard of living and boosting their desirability among potential renters and buyers. For those considering investing, these attributes result in higher rental returns and a steady increase in property values over time. Keep an eye out for upcoming New Condo Launches at Homesearch for exciting opportunities in Singapore’s real estate market.

Moreover, this shophouse also presents a potential rental yield of 4%, which is competitive in the current market and offers a steady income stream for investors. As Toa Payoh continues to rejuvenate, there is also a strong potential for capital appreciation in the long run.

Toa Payoh is one of three neighbourhoods selected for rejuvenation under the government’s Remaking Our Heartland programme. Implemented progressively since 2015, the plans for Toa Payoh include enhancing commercial and recreational facilities. One of the most significant developments is the upcoming integrated project on the site of the former swimming complex, sports hall, and stadium along Toa Payoh Lorong 6.

This 12ha integrated development is expected to be completed in 2030 and will include 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 house national training centres for aquatics, netball, and table tennis, as well as a polyclinic and library. This development is set to further enhance Toa Payoh’s appeal and drive up footfall for the area’s shops, including the HDB shophouse at 125 Toa Payoh Lorong 1.

In addition to the rejuvenation plans for Toa Payoh, the government also has plans for the neighbouring Caldecott estate. With several thousand new flats planned for these two estates, the upcoming BTO project, Toa Payoh Ridge, is located just 300m away from the shophouse for sale. This 920-unit project is expected to be completed in the first half of 2025 and is situated between Toa Payoh and the future residential development in Caldecott.

In February 2020, the URA rezoned a plot at the junction of Toa Payoh Rise and Braddell Rise to residential use with a gross plot ratio of 5.0. This suggests that a high-rise BTO development may be in the works for this site, further supporting the surrounding developments and increasing footfall for the area. This is good news for the new owner of the HDB shophouse at 125 Toa Payoh Lorong 1.

For more information on this property, interested parties can contact Aster See, Senior Marketing Director at ERA Realty at 98416930.…

for completion notificationThe award for the industrial GLS site at Kallang Way has been given to CapitaLand Development’s subsidiary, CL Savour Property, for its top bid price of $368.901 million. This bid was 14.9% higher than the second highest bid submitted by a consortium of Soon Hock Group, BHCC Construction and Evermega. The site, which was launched as part of JTC’s 1H2024 IGLS programme, is the first of its kind to be designated for adaptive reuse of a former industrial building. The existing terrace factory on the site will be retained and adapted for continued industrial use. According to Tang Hsiao Ling, director of JTC’s urban planning and architecture division, this integration of adaptive reuse is part of a strategic plan to sustainably rejuvenate the area while also reducing carbon emissions in the built environment. The 474,772 sq ft site is zoned Business 2 under the master plan and has a maximum gross floor area of 1.23 million sq ft. With a 33-year tenure, the site is part of a designated food zone and will feature food manufacturing spaces and retail uses in order to inject vibrancy into the surrounding industrial area.

To sum up, purchasing a Singapore condo can bring about numerous benefits, such as a strong demand, potential for increasing value, and competitive rental returns. However, it is crucial to carefully evaluate elements like location, financing options, governmental regulations, and market conditions. With thorough research and guidance from experts, individuals can make well-informed choices and capitalize on the dynamic real estate market in Singapore. Whether you are a local investor looking to diversify your investments or a foreign buyer searching for a stable and profitable opportunity, Singapore condos present an alluring prospect.…

A coffee shop located at 253 Choa Chu Kang Ave 1 has been put up for sale through an expression of interest (EOI) with a guide price of $11 million. The shop, occupying 2,540 sq ft, is situated within Keat Hong Shopping Centre, a two-storey HDB commercial development that also houses other amenities such as a supermarket and various shops and stalls.

Situated on the ground floor, the property is zoned for commercial use and offers a 99-year leasehold tenure, with a remaining balance of 68 years. Currently, the shop is leased to a coffee shop operator and features seven food stalls and a drink stall. (Insert map showing location of Keat Hong Shopping Centre)

According to Jervis Isaiah Ng, founder of JNA Real Estate, which is a team under PropNex Realty, potential buyers could either choose to operate the coffee shop themselves, renovate it and lease it out, or continue leasing it out to a coffee shop operator. JNA Real Estate has been appointed as the exclusive marketing agent for the property.

Ng also notes that the property does not come with any living quarters, therefore exempting it from Additional Buyer’s Stamp Duty.

Keat Hong Shopping Centre boasts of a convenient location, being within walking distance to 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 slated to be completed in 2027. Other amenities, including Choa Chu Kang Primary School and the recently renovated Choa Chu Kang West Market, are also in close proximity.

The demand for Singapore condos remains high due to the country’s limited land availability. As a small island nation experiencing rapid population growth, Singapore faces challenges in finding space for development. This has resulted in strict land use regulations and a highly competitive real estate market, where property prices continue to rise. As a result, investing in real estate, particularly Singapore condos, has become a highly profitable venture with the potential for significant capital appreciation.

The EOI is set to close on December 22 at 3pm.…

Read also: Keppel Land China names Jeremiah Lee as new CEO On November 19, Keppel announced that it will be selling its data centre joint venture to Keppel DC REIT (KDC REIT) for a total price of $1.38 billion.

The joint venture, which is owned 60% by Keppel’s connectivity division and 40% by Cuscaden Peak Investments Private Limited, holds the Keppel Data Centre Campus located at Genting Lane in Singapore. The campus includes two fully operational data centres, Keppel DC Singapore 7 (KDC SGP 7) and Keppel DC Singapore 8 (KDC SGP 8), which are utilized by global hyperscalers from various industries such as cloud services, internet enterprise, and telecommunications.

.

Investing in a condo requires careful consideration of financing. In Singapore, there are various mortgage choices available, but it is crucial to understand the Total Debt Servicing Ratio (TDSR) framework. This framework sets a cap on the loan amount that a borrower can take based on their income and current debt commitments. To navigate this system effectively, investors should seek guidance from financial advisors or mortgage brokers and make well-informed decisions about their financing options to avoid excessive borrowing. Furthermore, it is vital to keep in mind that the TDSR framework applies to all types of properties, including condos.

The construction of KDC SGP 7 and KDC SGP 8 was jointly funded by the JV, Keppel’s private fund Alpha Data Centre Fund, parallel fund (ADCF), and co-investors.

Upon the completion of the sale, KDC REIT will become the sole owner of KDC SGP 7 and KDC SGP 8. Keppel will continue to serve as the operator and facility manager for both data centres.

KDC REIT will gain a 49% ownership in the JV and will also subscribe to two new securities issued by Keppel JV for up to $1.03 billion. This will give the REIT a 99.49% economic interest in both data centres. KDC REIT will also have a call option to acquire the remaining 51% ownership from Keppel, which is expected to be exercised in the second half of 2025. The remaining 51% stake holds a 0.51% economic interest in the data centres.

KDC REIT will also pay an additional $350 million to the JV’s shareholders, including ADCF and co-investors, if the campus is granted a land lease extension until 2050.

This proposed acquisition is expected to increase KDC REIT’s distribution per unit (DPU) by 8.1%. It will also expand the REIT’s assets under management (AUM) by 36% to $5.2 billion, with a total of 25 data centres located in Asia Pacific and Europe.

Keppel will receive around $280 million from the divestment, which includes the estimated amount for Keppel’s 51% stake if the call option is exercised. It also includes additional consideration for the land lease extension. The total amount will be adjusted for debt repayment and completion adjustments.

The JV’s vacant land plot, which was originally planned for a third data centre, will not be included in the transaction, and will instead be sub-leased to Keppel’s private funds, Keppel DC Fund II and the upcoming Keppel DC Fund III. Keppel’s goal is to develop the third data centre, KDC SGP 9, with its two data centre private funds.

Manjot Singh Mann, CEO of Keppel’s connectivity division, says that this sale demonstrates the company’s ability to create value for its private funds and REIT. He adds that their integrated ecosystem provides access to vital resources, technology expertise, and strong customer relationships, which are essential for success in the data centre business. Keppel aims to continue developing a pipeline of AI-ready data centres that offer effective solutions for clients and attractive investments for their private funds and REIT.

Loh Hwee Long, CEO of KDC REIT’s manager, is excited about this landmark deal, which will occur during their 10th anniversary. He says that this acquisition will bring in strong cash flows and will immediately increase DPU. The inclusion of these assets will also improve the stability of their portfolio and allow them to capture potential upside from rental increases and capacity expansion. This transaction further cements Keppel DC REIT’s position as one of the largest owners of established data centres in Singapore, a market with high demand and limited supply.

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

.

Investing in a condo offers numerous advantages, including the opportunity to leverage the property’s value for future investments. In fact, many investors choose to use their condos as collateral to secure additional financing for new investments, enabling them to grow their real estate portfolio. This approach can greatly increase returns, but it also involves certain risks. It is therefore essential to have a solid financial plan in place and carefully consider the potential effects of market fluctuations. With the availability of new condo launches, investors have even more opportunities to expand their portfolio and maximize their returns.

Frasers Property and Sekisui House, longtime partners, have come together to revamp Robertson Walk and Fraser Place Robertson. Under the new joint venture, these properties, which are currently under a 999-year lease, will be transformed into a mixed-use development featuring residential units, dining options, and entertainment facilities. The anticipated completion date for this project is the end of 2028, with construction set to begin next year.

The gross floor area for this redevelopment is estimated at 30,664 sqm (330,067 sq ft), according to Frasers Property. Soon Su Lin, CEO of Frasers Property Singapore, emphasizes that this redevelopment aligns with the company’s proactive asset management strategy, stating, “We saw the potential to maximize the value of our prime 999-year site in the heart of Robertson Quay.”

To facilitate this project, Frasers Property and Sekisui House have established a 51:49 joint venture. Until the redevelopment is complete, the Frasers Property Group will continue to manage Robertson Walk and Fraser Place Robertson. Operations at these properties are set to cease on May 31, 2025.…

Singapore’s Land Authority (SLA) has recently awarded tenders for two sites on Henderson Road and Scotts Road. The site at 98 Henderson Road was awarded to a joint venture between dormitory and accommodation provider TS Group and co-living operator The Assembly Place (TAP). The JV plans to develop the site into a senior co-living accommodation in partnership with Crawfurd Silver Care, the geriatric arm of Crawfurd Hospital. The tender includes an initial four-year lease, with the option to extend for a second three-year term.

When evaluating the prospect of investing in a condominium, it is crucial to also consider the potential rental yield. Rental yield refers to the annual rental income expressed as a percentage of the property’s purchase price. In Singapore, the rental yields for condominiums can vary significantly depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer better rental yields. To obtain a clear understanding of the rental potential of a specific condominium, conducting thorough market research and seeking advice from real estate agents can be beneficial. Interested in finding out more about potential Singapore Projects?

The price-quality tender for the state-owned properties was launched by SLA in June, inviting interested parties to submit senior co-living proposals to rejuvenate them. The tender closed in August with six bids, and the JV’s bid of $102,888 per month was 25.5% higher than the second-highest bid of $82,000 submitted by Eco Energy. Other bids came from ISG Marketplace, Red Crowns Senior Living, Viplas Engineering, and Samwoh Corporation.

The site was previously a student hostel operated by Yo:ha, and it comprises a four-storey building, a single-storey building, and a guardhouse over a total land area of 77,551 sq ft. The JV plans to fit the apartment units with sports and recreational facilities as well as hobby-focused spaces and programmes, according to SLA’s LinkedIn post on Nov 18.

In addition, SLA is exploring the adaptive reuse of more state properties for differentiated co-living environments. This includes a potential site with a cluster of heritage bungalows at Admiralty.

Meanwhile, the three single-storey heritage bungalows at 31, 31A, and 33 Scotts Road were awarded to Heritage At Scotts, a company that curates and manages F&B brands in Singapore. The company was the only one to submit a monthly rental bid of $50,000 at the close of the price-quality tender on Aug 7. The tender for the trio of bungalows, launched on June 14 in collaboration with the Singapore Tourism Board, seeks a creative lifestyle concept such as experiential retail, F&B, wellness, or beauty concepts.

The bungalows, with a total land area of 36,670 sq ft, have a five-year tenure with the option to extend for another four years. Heritage At Scotts currently operates lifestyle offerings within neighbouring black-and-white bungalows at 27, 29, 35, and 35A Scotts Road. The bungalows at 31, 31A, and 33 Scotts Road will be integrated with existing offerings to form a larger lifestyle enclave. The compound will include a dedicated walkway linking the various properties and landscaped social spaces.…

It is crucial to evaluate the potential rental yield when considering investing in a Singapore Condo. The rental yield is the annual rental income expressed as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can vary significantly based on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to offer higher rental yields. Conducting extensive market research and seeking advice from real estate agents can provide valuable insights into the rental potential of a particular Singapore Condo.

CBRE has recently named Hugh Macdonald as the new head of capital advisors for the Asia Pacific (Apac) region. With over 20 years of experience in the banking industry, Macdonald brings a wealth of knowledge and expertise in investment banking, as well as the real estate, gaming, leisure, and lodging sectors. He joins CBRE from his previous position at Deutsche Bank, where he served as the head of investment banking coverage and advisory for Australia and New Zealand.

In his new role, Macdonald will report to Leo van den Thillart, CBRE’s global head of investment banking, and Greg Hyland, head of capital markets for Apac. He will initially be based in Sydney before relocating to Singapore in the first quarter of 2025.

CBRE’s decision to appoint Macdonald is a strategic move to strengthen their presence in the Apac region. With his extensive experience and proven track record, Macdonald is expected to drive CBRE’s growth and provide valuable insights and advice to clients. This announcement comes shortly after Knight Frank’s appointment of Virginia Huang as managing director for north and east China.…