Apparently, the reason to relocate to Singapore was in the interests of his daughter's education. They are expected to send her to the Singapore American School.
Monday, 2 April 2012
Jet Li's Singapore Bungalow
Apparently, the reason to relocate to Singapore was in the interests of his daughter's education. They are expected to send her to the Singapore American School.
The attraction of British Colonial black and white Bungalows
Expatriates have fallen hard for Singapore’s famous black and whites, with about 70 per cent of the stately bungalows owned by the Government rented out to foreigners. They have become a popular pick among executives and professionals looking for something different amid the high-rise life here.
Singapore Land Authority (SLA), which handles rentals, has almost 500 of the homes available for lease. They are allocated through a tender process. Like other state properties, they have an average lease of two years, though many tenants opt to extend their terms.
RealStar Premier Group managing director William Wong owns property around Singapore but has lived with his family in a single-storey black and white in Seletar’s Piccadilly Circus neighbourhood for almost 41/2 years. ‘It’s like a ‘little England’, with some of my neighbours having tree houses in their gardens. The house is very near to nature and there’s a lot of space. When I saw these houses, I thought they’d be a great place for my kids to run around and play,’ he said. The rents can be surprisingly afford-able as well, with Mr Wong noting that leases on black and white homes ‘in this neighbourhood range from $6,000 to $7,000 a month; it’s very attractive. Normal landed homes of a similar size can cost up to $20,000 a month’. The SLA said rents depend on location and prevailing market conditions, but bargains can be had by those eyeing less centrally located properties.
Last month, a black and white bungalow in Seletar with a land area of 2,260 sq ft was leased for $3,571, or $1.58 per square foot (psf) per month. A normal semi-detached 3,200 sq ft home in the same area is offered for a rent of $7,500, or $2.34 psf per month. But people expecting to snag a black and white in more central areas like Nassim Road or Orange Grove Road should be prepared to pay a premium.
A two-storey example at 10A Goodwood Hill near Orchard Road has a guide rent of $20,000 a month, which is at the higher end of the price spectrum. Tenders for that house ended yesterday and it is likely the final rent will be even higher. A recently leased black-and-white in Winchester Road in the Alexandra neighbourhood had a $14,000 guide rent but attracted a top offer of $18,500 a month.
The homes are characterised by their black and white finishings, spacious grounds and colonial ambience. They were built by the British from the late 19th century to before World War II, to house military officers, High Court judges and other members of the colonial society’s great and good.
Black-and-white properties, which can be found in areas like Bukit Timah, Alexandra Park, Orange Grove Road and Seletar Road, are regularly made available for rent, with details listed on the State Property Information Online website at www.spio.sla.gov.sg
Fewer PRs buying Landed Homes
The number of permanent residents (PRs) buying landed homes in Singapore fell in 2011, as tough measures discouraged them from entering that segment of the real estate market.
According to latest figures released by DTZ Research, PRs acquired 109 landed homes in 2011, down 53.6 percent from the 235 homes purchased in 2010. This means that PRs only contributed 3.4 percent of total transactions in the landed housing market last year, compared to the 5.4 percent share in the preceding year.
It is now harder for PRs to acquire landed property in Singapore, as strict criteria under the Residential Property Act prevents them from acquiring such a property type if they already own a condo unit. The government tightened the rules last year and at the time, Law Minister K. Shanmugam said that the number of approved applications was expected to decline by more than half.
Meanwhile, many experts believe the PR share in the landed housing market is being hit by two forces – the tougher criteria for obtaining approvals and the government’s tighter immigration policy.
Chua Chor Hoon, Research Head at DTZ Asia Pacific, said that while tougher criteria cuts down the number of PR buyers, the number of PRs in the country also fell by 1.7 percent year-on-year, or around 9,000 as of June last year. This came on the back of lengthened residency requirements for PRs and stricter eligibility requirements for obtaining homes.
William Wong, Managing Director of RealStar Premier Group, noted that the number of PRs viewing landed homes dropped by more than 50 percent, possibly due to their awareness of the tighter regulations.
“While PRs used to get approval for landed property of 13,000 sq ft to 15,000 sq ft in the past, they are being advised to buy smaller homes of about 10,000 sq ft now,” he said.
According to latest figures released by DTZ Research, PRs acquired 109 landed homes in 2011, down 53.6 percent from the 235 homes purchased in 2010. This means that PRs only contributed 3.4 percent of total transactions in the landed housing market last year, compared to the 5.4 percent share in the preceding year.
It is now harder for PRs to acquire landed property in Singapore, as strict criteria under the Residential Property Act prevents them from acquiring such a property type if they already own a condo unit. The government tightened the rules last year and at the time, Law Minister K. Shanmugam said that the number of approved applications was expected to decline by more than half.
Meanwhile, many experts believe the PR share in the landed housing market is being hit by two forces – the tougher criteria for obtaining approvals and the government’s tighter immigration policy.
Chua Chor Hoon, Research Head at DTZ Asia Pacific, said that while tougher criteria cuts down the number of PR buyers, the number of PRs in the country also fell by 1.7 percent year-on-year, or around 9,000 as of June last year. This came on the back of lengthened residency requirements for PRs and stricter eligibility requirements for obtaining homes.
William Wong, Managing Director of RealStar Premier Group, noted that the number of PRs viewing landed homes dropped by more than 50 percent, possibly due to their awareness of the tighter regulations.
“While PRs used to get approval for landed property of 13,000 sq ft to 15,000 sq ft in the past, they are being advised to buy smaller homes of about 10,000 sq ft now,” he said.
Sentosa Cove bungalow goes for record S$39m
The new record beats the previous high of S$36 million for a Paradise Island bungalow back in 2010. That price translated to S$2,403 psf on a 14,983 sq ft land area, according to a report by The Business Times.
Comparatively, the latest deal for the property at Cove Drive is S$2,448 psf, based on its 15,929 sq ft land area. Sentosa Cove residential properties have a 99-year leasehold tenure.
The completed bungalow, which includes five bedrooms, an entertainment room and a spacious living area, was sold by a Singaporean to an Indian buyer, with Newsman Realty representing the seller.
Sentosa Cove is the only area in Singapore which allows non-PR foreigners to acquire a landed home, subject to approval from the Land Dealings Approval Unit (LDAU).
Meanwhile, on mainland Singapore, another high price is said to have been set at a Good Class Bungalow Area (GCBA) involving a vacant plot at Jervois Hill. The agreed price for the 15,120 sq ft freehold site is said to be S$31 million which works out to about S$2,050 psf, a new record for the area.
The buyer is apparently applying to become a Singapore citizen.
Since the Chinese New Year period, property hunters have been returning to the bungalow market after initially stagnating when the additional buyer’s stamp duty (ABSD) was introduced in early December.
Banks must provide Borrowers with Mortgage Fact Sheets
The fact sheet aims to help potential borrowers get the basic information regarding mortgages, such as the repayment schedule and loan quantum.
The sheet will include notes informing the borrower that the bank reserves the right to charge for extra payments if the value of the property drops. Customers will also be informed that monthly repayments could rise if interest rates climb.
For example, the monthly repayment on a 20-year, S$1 million mortgage may rise by around S$1,500 if the interest rate edges up from two to five percent.
Banks are also mandated to provide fact sheets whenever there are changes to the proposed facility’s key features. This can be in printed, written or any electronic form, with the bank keeping a copy of it.
Moreover, the bank is required to obtain a written self-declaration from the borrower, which states that he has received the fact sheet prior to signing the mortgage agreement.
Consultants feel that the latest safeguards will also protect the interests of banks.
Meanwhile, Lui Su Kian, Head of Deposits and Secured Lending at DBS Bank, said that “mortgages are a long-term commitment... and customers should be aware of how the loan type will fit into their lifestyle and how interest rates are determined, as this will have a direct impact on their monthly budget.”
Foreigners 'own 30% of Thai land'
Thailand’s Auditor-General Siracha Charoenpanij revealed yesterday that 30 percent of land in the kingdom (pictured) is owned by foreigners.
Speaking at a seminar on disguised legal transactions and foreigners’ land ownership in Thailand held by the Senate committee on economic, commercial and industrial affairs in parliament, he expressed concern that more needed to be done to prevent foreigners from using nominees to own land.
The law in Thailand prevents a foreign entity from holding more than 49 percent of any land. However, since 2002 a foreigner is allowed to purchase a maximum of one rai (1,500 sq m) of land in Thailand for residential purposes if they bring at least US$1 million (S$1.26 million) into the country.
Siracha said, “Right now more than one third of land in Thailand is owned by foreigners,” adding that according to research most of the land in foreigners’ hands is in coastal resort areas.
According to a report in The Nation, National Institute of Development Administration (NIDA) lecturer Piyanuch Potawanich suggested the launch of the Asean Economic Community in 2015 would lead to more foreigners using nominees to own Thai land, especially Singaporeans, who the report said were smart, had money and needed to invest for profit. She urged the introduction of laws to punish nominees and deport any foreigners who break them.
Several industry watchers have already ridiculed the claim that 30 percent of Thailand’s land is owned by foreigners.
Andrew Batt, Regional Group Editor for PropertyGuru, said; “It’s simply unbelievable to suggest that one third of land in the country is owned by foreigners. Thailand is a huge country, and the widespread use of legal loopholes to circumvent the country’s land laws just isn’t happening.”
Batt added that with the news yesterday that Indonesia is mulling a relaxation in its foreign property ownership laws, Thailand should perhaps be doing more to make ownership easier rather that making it more unattractive.
Developers' bids for sites indicate Falling Home Prices
With concerns over a possible drop in private home
prices of up to eight percent this year, many developers are becoming
more cautious on how much they are willing to pay for private home
sites.
Deciding on the prices to offer for a plot on sale, developers need to take into account the possibly lower home prices into their sums.
According to a BNP Paribas report, which analysed about 100 government land sale bids from 2007 to last month, developers are lowering their bids on land sites because of the uncertainty on whether prices will hold up by the time they would have to sell the project.
When bidding for a site, developers consider the break-even figure – meaning how much they will pay for the project, taking into account the costs of building it as well as other finance, administration and marketing costs, plus a little extra in terms of profits.
The report revealed that beginning in mid-2011, the difference between developers’ expected break-even price and existing selling prices widened to 19.8 percent, way above the mean of 12.1 percent.
The 12.1 percent mean represents the profit margin which developers have achieved on average. The eight-percentage point difference likely reflects developers’ efforts to guard against possible increases in selling prices.
Chong Kang Ho, an analyst at BNP Paribas, noted that a similar pattern was observed in Q2 2008 before home prices tanked and when margin buffers widened in the same manner.
Deciding on the prices to offer for a plot on sale, developers need to take into account the possibly lower home prices into their sums.
According to a BNP Paribas report, which analysed about 100 government land sale bids from 2007 to last month, developers are lowering their bids on land sites because of the uncertainty on whether prices will hold up by the time they would have to sell the project.
When bidding for a site, developers consider the break-even figure – meaning how much they will pay for the project, taking into account the costs of building it as well as other finance, administration and marketing costs, plus a little extra in terms of profits.
The report revealed that beginning in mid-2011, the difference between developers’ expected break-even price and existing selling prices widened to 19.8 percent, way above the mean of 12.1 percent.
The 12.1 percent mean represents the profit margin which developers have achieved on average. The eight-percentage point difference likely reflects developers’ efforts to guard against possible increases in selling prices.
Chong Kang Ho, an analyst at BNP Paribas, noted that a similar pattern was observed in Q2 2008 before home prices tanked and when margin buffers widened in the same manner.
ABSD the main cause of drop in foreign purchases
December’s property cooling measures have indeed affected non-permanent resident (PR) foreigners buying in the private housing sector.
According to The Straits Times, foreigners bought 385 units in November 2011, covering new sales, resales and subsales, which translate to a 16 percent slice of the entire market, excluding executive condos (ECs).
But figures dropped to just 53 and 96 units in January and February respectively, reducing their market share to only 6.5 percent, based on Savills analysis of data from the URA (Urban Redevelopment Authority).
Back in 2010, foreign buyers held a 12 percent share of the market, which rose to a record 17 percent last year.
Experts attribute the steep drop in foreign purchases to the 10 percent ABSD (additional buyer’s stamp duty). Foreigners may have had hesitations as to whether Singapore would remain an attractive investment destination despite the cooling measures.
The slew of policy changes may have also dampened demand, said Mr Ku Swee Yong, Chief Executive of International Property Advisor.
He added that some of his Malaysian clients plan to invest in commercial space or smaller homes that have lower prices to avoid the stamp duty or pay a lower fee.
Meanwhile, Tan Kok Keong, Research and Consultancy Head at OrangeTee, noted that the ABSD was clearly the main cause, given that no other major issue came in between November and February.
However, some experts hope the decline will only be a temporary lull as foreign purchasers adapt to the higher tax. Alan Cheong, Director of Research and Consultancy at Savills, said foreign demand will eventually move up in due time.
According to The Straits Times, foreigners bought 385 units in November 2011, covering new sales, resales and subsales, which translate to a 16 percent slice of the entire market, excluding executive condos (ECs).
But figures dropped to just 53 and 96 units in January and February respectively, reducing their market share to only 6.5 percent, based on Savills analysis of data from the URA (Urban Redevelopment Authority).
Back in 2010, foreign buyers held a 12 percent share of the market, which rose to a record 17 percent last year.
Experts attribute the steep drop in foreign purchases to the 10 percent ABSD (additional buyer’s stamp duty). Foreigners may have had hesitations as to whether Singapore would remain an attractive investment destination despite the cooling measures.
The slew of policy changes may have also dampened demand, said Mr Ku Swee Yong, Chief Executive of International Property Advisor.
He added that some of his Malaysian clients plan to invest in commercial space or smaller homes that have lower prices to avoid the stamp duty or pay a lower fee.
Meanwhile, Tan Kok Keong, Research and Consultancy Head at OrangeTee, noted that the ABSD was clearly the main cause, given that no other major issue came in between November and February.
However, some experts hope the decline will only be a temporary lull as foreign purchasers adapt to the higher tax. Alan Cheong, Director of Research and Consultancy at Savills, said foreign demand will eventually move up in due time.
Geylang sees boom in Home launches
According to a report by The Straits Times, nearly 1,900 new residential units across over 25 developments are expected to be completed over the next three to four years, and many of these units will be shoebox apartments, which is a new trend for Singaporeans, expats and investors.
These new private homes will range from less than 400 sq ft to approximately 600 sq ft, and many agents are confident that these small units will remain popular due to their location.
“Location-wise, going to the CBD (Central Business District) is five to seven minutes' drive. With the upcoming Paya Lebar commercial hub, this whole Geylang, Kallang area will be between the CBD and the hub,” said a property agent.
However, the main challenge is Geylang's seedy reputation. The report said that there were concerns that units in the area would draw a wrong crowd.
“I have had clients ask me why all the rooms (in Geylang units) have attached bathrooms. You could read more into that, in the sense that they may be used as serviced apartments, dormitories or budget hotels,” said Colin Tan, Research Head at Chesterton Suntec International.
He noted that banks may be unwilling to lend to investors due to the seedy reputation of the area.
“In official red-light areas, some banks won't want to lend their names to such projects, because they are considered high-risk,” he said.
“Second, you are not sure if the activities that occur in those units are legal or not. Another concern is the reputation of the bank; it may not want to be associated with such properties.”
Singapore luxury property continues to attract Ultra-Rich
Done in collaboration with Citi Private Bank, the report surveyed 4,000 individuals who have an average net worth of US$100 million (S$125 million).
The respondents cited Singapore as the fifth most favoured location for a second home, after the US, UK, France and Spain. As far as quality of life is concerned, Singapore came in second after London.
The results reflect a growing shift in focus towards the East, where ‘centa-millionaires’ (with assets of at least US$100 million) (S$125 million) are growing fast. At the same time, Singapore is ranked the fifth most important global city after London, New York and Hong Kong, while Shanghai and Beijing took eighth and ninth spots respectively.
Looking at a 10-year period, respondents expect Singapore to stay in fifth place, but Beijing and Shanghai will likely climb to third and fourth spots respectively.
The report added that property is still the most favoured asset for high-net-worth individuals with a 31 percent portfolio share, while equities and bonds each have a 31 percent share. In the Asia Pacific, property holds a higher portfolio share at 31 percent, while equities and bonds take 24 percent and 16 percent respectively.
In addition, 57 percent of ultra-rich individuals are planning to boost their residential property portfolio.
Higher possibility of new property curbs, says expert
Compared to two months ago, the possibility that the government will
implement a sixth round of cooling measures is now much higher,
according to a report by The Business Times.
However, such measures will likely come in Q2 2012, according to Png Poh Soon, Head of Consultancy and Research at Knight Frank.
“A few months doesn't really constitute a trend so naturally, the government will look - it may take one to two quarters to observe if this is a sustainable trend or if (the spike in sale volumes) is short-term,” said Png.
Recent data from the Urban Redevelopment Authority (URA) revealed that a total of 2,413 private homes were sold in February, excluding executive condominiums (ECs). This reflects an increase of 29 percent month-on-month and more than double the figure seen over the same period last year.
If ECs were included, the number soars to 3,138 units, 51 percent higher than the 2,077 units recorded in January.
Given the strong buying sentiment, the likelihood of a new round of cooling measures has increased. Over the last few years, a series of curbs have been introduced; the most recent being the ABSD (additional buyer's stamp duty) which took effect last December.
“When the sixth round comes in, it could be a refinement of the existing five rounds of cooling measures, or it could be something drastically new. The way I look at it, it's likely a tightening of existing measures,” noted Png.
“The market is actually in mixed flux. The resale market is quite dead, (but) new sales are doing very well. Is this (a sign of) a very stable and sustainable market? This is a question many people are interested in.”
However, such measures will likely come in Q2 2012, according to Png Poh Soon, Head of Consultancy and Research at Knight Frank.
“A few months doesn't really constitute a trend so naturally, the government will look - it may take one to two quarters to observe if this is a sustainable trend or if (the spike in sale volumes) is short-term,” said Png.
Recent data from the Urban Redevelopment Authority (URA) revealed that a total of 2,413 private homes were sold in February, excluding executive condominiums (ECs). This reflects an increase of 29 percent month-on-month and more than double the figure seen over the same period last year.
If ECs were included, the number soars to 3,138 units, 51 percent higher than the 2,077 units recorded in January.
Given the strong buying sentiment, the likelihood of a new round of cooling measures has increased. Over the last few years, a series of curbs have been introduced; the most recent being the ABSD (additional buyer's stamp duty) which took effect last December.
“When the sixth round comes in, it could be a refinement of the existing five rounds of cooling measures, or it could be something drastically new. The way I look at it, it's likely a tightening of existing measures,” noted Png.
“The market is actually in mixed flux. The resale market is quite dead, (but) new sales are doing very well. Is this (a sign of) a very stable and sustainable market? This is a question many people are interested in.”
Govt imposes additional tax for private property
The government has implemented additional cooling measures intended to curb excessive investment in the property market.
From today, foreigners and corporate entities will have to pay an additional 10 percent ‘Additional Buyers Stamp Duty’ (ABSD) , the government said in a statement issued last night. The extra levy will be three percent for Permanent Residents (PRs) purchasing a second home, as well as for Singaporeans buying their third residential property.
In a joint statement, the Finance and National Development ministries said the move is to promote a sustainable residential property market where prices move in line with economic fundamentals.
“We have always had open markets and must keep them that way,” said Finance Minister Tharman Shanmugaratnam. “However, the reality is that investment flows into our property market are now larger than before, and unlikely to recede as long as interest rates remain low. The additional stamp duty should help cool investment demand, and avoid the prospect of a major, destabilising correction further down the road.”
The ABSD will apply in addition to the existing buyer's stamp duty on property purchases, which will be applied at the following rates: one percent on first S$180,000 of purchase consideration or market value of the property (whichever is higher), two percent on the next S$180,000 and three percent for the remainder.
In the case of a joint purchase by Singaporeans who each already owns property, the ABSD of three percent will apply as long as one of the purchasers already owns two properties. Singaporean first-time buyers and upgraders, and buyers of HDB flats will not be affected by the new measure.
The Real Estate Developers Association of Singapore (REDAS) said it was disappointed at the lack of consultation, adding that the measures came as a surprise as the current market outlook is uncertain.
Colin Tan, Head of Research at Chesterton Suntec International, writing in TODAY, said: “Already people are asking me whether the new measures will induce a price correction? It really depends on the reaction of developers and how much of the current purchases are investment buys. If the majority of buyers have been investors, the measures have the equivalent effect of a sudden price increase of 3 percent or more on the market.”
Andrew Batt, Regional Group Editor of PropertyGuru, said the latest round of cooling measures which were introduced earlier this year had an immediate impact, and market watchers and analysts will be paying careful attention to the market over the coming days and weeks.
Bartley Gove Apartment, terrace houses sold for S$74.1m
Located in District 19, the combined freehold site has a total land area of 65,305 sq ft. It is zoned for residential development with a gross plot ratio of 1.4 and a maximum building height of five storeys under the 2008 Master Plan.
“This land price rate sets a new benchmark for low-rise residential land in District 19, reflecting developers' continued confidence in the residential market evidenced by the healthy sales figures at nearby projects such as Casa Cambio and Bartley Residences,” noted Tan Hong Boon, Deputy Managing Director at Credo Real Estate, which brokered the deal.
Credo said each apartment owner will likely receive between S$1.25 million and S$3.24 million from the sales proceeds, while the owners of the terrace houses will gain between S$2.34 million and S$4.76 million.
Launched jointly in the en bloc sales market in February, Bartley Grove Apartment has a land area of 55,286 sq ft with an indicative price of between S$62.35 million and S$64.04 million, while the three houses have a combined land area of 10,019 sq ft and an asking price of between S$10.65 million and S$10.96 million.
URA revises guidelines for strata landed housing
According to market watchers, the move will effectively close a loophole which has allowed foreigners to buy strata landed homes in such projects without gaining approval from Singapore’s Land Dealings Approval Unit (LDAU).
However, foreigners may still buy strata landed homes in condos which have already been approved by the URA.
“In recent years, there has been an increase in the number of condominium proposals comprising a mix of strata landed and apartment units within the same development,” the URA noted.
Some of the projects that have ‘condo’ status but feature strata landed homes include Thomson Grand, d'Leedon (pictured) in the Farrer Road area, Woodhaven in Woodlands, Archipelago at Bedok Reservoir and euHabitat at Jalan Eunos.
Developers have included these strata landed homes in their condo projects in response to strong demand from foreign buyers, without the need for LDAU’s approval.
Meanwhile, foreigners who wish to buy any other type of landed homes, such as units in pure strata landed housing developments, must secure approval from the LDAU.
To get approval, foreign buyers need to fulfil certain criteria that include being a permanent resident (PR) and significantly contributing to Singapore’s economy. However, with tighter controls imposed since last year, the number of approvals for PR buyers will likely decline.
S'pore among favourite cities of the super-rich
London took top spot in the ranking, followed by New York, Hong Kong and Paris.
The survey assesses the importance of key cities to HNWIs based on the state of world affairs, opportunities for wealth creation, economic risks and political stability.
When asked for their views on leading cities in 10 years' time, the respondents kept Singapore, London and New York in their current spots.
Beijing and Shanghai were viewed as the fastest-growing, reflecting the impact of the flourishing economies of the East. They were deemed to be the third and fourth most important cities in 10 years, knocking Paris and Hong Kong down the list.
HNWIs are keen on investing in prime residential and commercial properties in these top global cities because they are viewed as "safe havens" for long-term investments or as second homes, Knight Frank said.
"If you look at property investment, most of the HNWIs' attitudes have changed ... for the longer-term perspective and a longer holding period," said Mr Png Poh Soon, head of consultancy and research at Knight Frank.
"Nobody wants to make a loss. So certainly people are concerned about the impact of the market," he added.
Despite cooling measures, experts say luxury property prices here will remain resilient due to the continued interest among the global super-rich in Singapore properties.
The survey was conducted on 4,000 individuals worth an average of US$100 million (S$126 million) each.
Luxury properties in S'pore, HK 'most sought after by the super-rich'
Both markets are known as "super prime" destinations for the rich to buy properties worth at least US$20 million (S$25.14 million) each.
This is among the findings highlighted in The Wealth Report 2012, released by property consultancy Knight Frank and Citi Private Bank on Friday.
Knight Frank says HNWIs view residential and commercial properties located in prime locations as "safe havens".
These properties are acquired for long-term investments or as second homes.
Among the key factors that the super-rich consider when choosing a location for their second home are lifestyle (67 per cent), investment (55 per cent), safe haven for capital (40 per cent), education (12 per cent) and tax (6 per cent).
The report also highlighted that property investments occupy a large portion in the investment portfolio of the global HNWI.
Some 23 per cent of the portfolio consists of properties - the highest proportion compared with any other asset.
The proportion increases to 31 per cent in the investment portfolio of the super-rich in the Asia-Pacific region, which suggests that Asian HNWIs have a greater penchant for property investments.
The next most popular asset of global HNWIs are equities and bonds, with each accounting for 21 per cent in the investment portfolio.
This is followed by gold, making up 3 per cent of the portfolio.
The survey was conducted on 4,000 individuals with assets worth about US$100 million each.
Residential properties emerged as the most favoured type of investment among HNWIs last year.
Some 76 per cent of the respondents said they were keen to purchase residential homes compared with other property classes.
Office and retail properties are the other preferred types of properties for investment, coming in at 59 per cent and 31 per cent respectively. VENUS HEW
Making sense of the Singapore Residential Price Index
Every month, when the National University of Singapore (NUS) releases flash estimates for its Singapore Residential Price Index (SRPI), there will always be at least one reporter who will be feeling perplexed as to how he or she should read the indices. Are property prices heading upwards, downwards or trudging sideways?
Compared to the Urban Redevelopment Authority's (URA) quarterly price index, the SRPI is a lot more volatile as it is compiled on a monthly basis. It is also confined to completed non-landed properties.
The SRPI basket tracks the prices of 370 private residential projects (excluding executive condominiums) located across 25 postal districts here that were completed between October 2001 and September last year.
It is hard to analyse the numbers especially if the discussion is confined to indices for just two months. In the latest release, the figures are flash estimates for last month against finalised or revised figures for January.
It does not help that property prices are a lot more stable than they were compared to a year ago. As a result, it is not uncommon to find indices moving in opposite directions on alternate months and sometimes diverging within the same month.
The latest numbers ...
The SRPI release on Wednesday showed prices of completed properties softening by 0.8 per cent last month compared with the previous month. In particular, small apartments islandwide (up to 506 sq ft) and the Central Region (excluding small units) - comprising districts 1 to 4 and the prime residential districts of 9, 10 and 11 - saw the greatest decline, down 0.9 per cent month-on-month.
The sub-index for Non-Central (excluding small apartments) also appears to have finally caved in to negative sentiment, falling 0.6 per cent on a monthly basis.
Are we headed for a buyers' market over the next few months, a theory put forward by some analysts?
There is a real danger of reading too much into the numbers if we were to focus solely on data for just two months.
Instead, I find the accompanying chart on the NUS website (http://www.ires.nus.edu.sg/webapp/srpi/default.aspx) much more useful as it shows trends for the past few months stretching as far back as 2001.
My own interpretation of the chart is that prices of completed properties for the Central region are clearly on a downward trend. There is a small hint that prices of small apartments may follow likewise but the evidence is not as clear. As it covers small apartments in all locations islandwide, it could be a net effect of small apartments in Central and Non-Central areas. As for completed properties in Non-Central areas, prices look to be flattening out quite nicely.
The shoebox question
Another interesting feature I noted from the chart is that prices for small apartments significantly underperformed the market during the trough periods in 2004/2005 and in 2008/2009.
Investors of shoebox apartments or small apartments may want to take a closer look at this chart. The pattern could repeat itself in the next downturn. If it does, it is best to swiftly unload such properties before it reaches the bottom. The problem is, a significant proportion of private homes bought over the past year or so are small apartments.
Going forward, the consensus is that trends observed for completed properties in Central areas last month are likely to be repeated in the coming few months but opinions are not unanimous for small apartments or properties in Non-Central.
Is the recently introduced Additional Buyers' Stamp Duty (ABSD) responsible for the problems faced by properties in Central areas?
I doubt so because the ABSD was only imposed recently whereas the problems facing that particular niche market were already evident for more than a year.
As I pointed out in an earlier commentary, I feel it is because almost all of these properties were bought under the differed payment scheme. As such, changing market conditions had no impact as there was protection from the market for as long as they were under construction. Almost all of these properties would have been completed by now or would be completed within the next few months.
Once the buyers received their keys, they have to make a decision on whether to re-sell or take out a loan. The moment this is done, the protection the property used to receive is lifted. The softening of prices for this market segment is due to the unravelling of this market rigidity - the effect of investors who have chosen not to lease or occupy but to re-sell.
Going forward, there are more market rigidities to be unravelled. These would apply to properties bought after the introduction of sellers' stamp duty last January and the ABSD in December.
For the next three to four years at least, any weaknesses in private home prices would not come from these properties but mainly from properties bought before last year.
Colin Tan is the head of research and consultancy at Chesterton Suntec International.
Compared to the Urban Redevelopment Authority's (URA) quarterly price index, the SRPI is a lot more volatile as it is compiled on a monthly basis. It is also confined to completed non-landed properties.
The SRPI basket tracks the prices of 370 private residential projects (excluding executive condominiums) located across 25 postal districts here that were completed between October 2001 and September last year.
It is hard to analyse the numbers especially if the discussion is confined to indices for just two months. In the latest release, the figures are flash estimates for last month against finalised or revised figures for January.
It does not help that property prices are a lot more stable than they were compared to a year ago. As a result, it is not uncommon to find indices moving in opposite directions on alternate months and sometimes diverging within the same month.
The latest numbers ...
The SRPI release on Wednesday showed prices of completed properties softening by 0.8 per cent last month compared with the previous month. In particular, small apartments islandwide (up to 506 sq ft) and the Central Region (excluding small units) - comprising districts 1 to 4 and the prime residential districts of 9, 10 and 11 - saw the greatest decline, down 0.9 per cent month-on-month.
The sub-index for Non-Central (excluding small apartments) also appears to have finally caved in to negative sentiment, falling 0.6 per cent on a monthly basis.
Are we headed for a buyers' market over the next few months, a theory put forward by some analysts?
There is a real danger of reading too much into the numbers if we were to focus solely on data for just two months.
Instead, I find the accompanying chart on the NUS website (http://www.ires.nus.edu.sg/webapp/srpi/default.aspx) much more useful as it shows trends for the past few months stretching as far back as 2001.
My own interpretation of the chart is that prices of completed properties for the Central region are clearly on a downward trend. There is a small hint that prices of small apartments may follow likewise but the evidence is not as clear. As it covers small apartments in all locations islandwide, it could be a net effect of small apartments in Central and Non-Central areas. As for completed properties in Non-Central areas, prices look to be flattening out quite nicely.
The shoebox question
Another interesting feature I noted from the chart is that prices for small apartments significantly underperformed the market during the trough periods in 2004/2005 and in 2008/2009.
Investors of shoebox apartments or small apartments may want to take a closer look at this chart. The pattern could repeat itself in the next downturn. If it does, it is best to swiftly unload such properties before it reaches the bottom. The problem is, a significant proportion of private homes bought over the past year or so are small apartments.
Going forward, the consensus is that trends observed for completed properties in Central areas last month are likely to be repeated in the coming few months but opinions are not unanimous for small apartments or properties in Non-Central.
Is the recently introduced Additional Buyers' Stamp Duty (ABSD) responsible for the problems faced by properties in Central areas?
I doubt so because the ABSD was only imposed recently whereas the problems facing that particular niche market were already evident for more than a year.
As I pointed out in an earlier commentary, I feel it is because almost all of these properties were bought under the differed payment scheme. As such, changing market conditions had no impact as there was protection from the market for as long as they were under construction. Almost all of these properties would have been completed by now or would be completed within the next few months.
Once the buyers received their keys, they have to make a decision on whether to re-sell or take out a loan. The moment this is done, the protection the property used to receive is lifted. The softening of prices for this market segment is due to the unravelling of this market rigidity - the effect of investors who have chosen not to lease or occupy but to re-sell.
Going forward, there are more market rigidities to be unravelled. These would apply to properties bought after the introduction of sellers' stamp duty last January and the ABSD in December.
For the next three to four years at least, any weaknesses in private home prices would not come from these properties but mainly from properties bought before last year.
Colin Tan is the head of research and consultancy at Chesterton Suntec International.
Friday, 30 March 2012
Indian billionaire has Big Plans here (14 May 2009)
The founder and chairman of conglomerate Spice Group - it has interests in telecommunications, technology, financial services and entertainment - has set up two funds worth more than $100 million to invest here.
The tycoon also wants to open a 24/7 'Hollywood meets Bollywood' entertainment centre at one of two floating crystal pavilions coming up at the Marina Bay Sands integrated resort.
Speaking to The Straits Times at his 63rd storey apartment at The Sail @ Marina Bay, Dr Modi said he plans to spend 'tens of millions' on the project and is in talks with Sands to either buy or lease a pavilion.
'We are getting designers from Hollywood and from Bollywood to design it,' he said, adding that the IR could use his design or do its own.
But the idea is to entice Hollywood and Bollywood stars to entertain crowds here on a regular basis.
Dr Modi, 60, also owns a film production company and wants to attract directors. Indian star Anil Kapoor has been lined up to act in a movie to be shot here.
The businessman, who relocated the global headquarters of Mumbai-based Spice Corp to Singapore last year, said he is here to stay.
His new home sprawls across 5,834 sq ft and has spectacular Marina Bay views that match the apartment's colour scheme of cream and baby blue.
Everything in the apartment - from the interior design, custom-made furniture, prints, paintings and even the coffee-table books in the living room - was planned by a design team from Beverly Hills, where he was based previously.
An integrated high-tech system ensures round-the-clock entertainment at a click.
Dr Modi is moving here with his family, but says his son Dilip, 33, who is the group president for global operations at Spice Corp, wants to stay on his own at a family owned apartment in The Claymore, a condominium in the Orchard Road area.
Dr Modi bought the The Sail apartment last August, but his investment took a huge hit with the slump in the property market here.
Unfazed, he said: 'It is a home. I am not here to sell it. I will be using it also to entertain people. That way, I can justify the cost.'
Dr Modi plans to hold meetings as well as parties at his penthouse. He even broached the idea of inviting girl band Pussycat Dolls to a party, although he does not know them personally.
While Dr Modi himself expects to spend about 100 days a year in Singapore, his penthouse - 'like a hotel suite' and a 24/7 entertainment zone - will be open 365 days of the year to friends, business associates and celebrities, he said.
Dr Modi said that his two new funds involve nuts and bolts investment strategy and their share of risk-taking.
One fund is a special-situation real estate vehicle. This will target half-completed projects here or projects that are delayed due to a lack of funds.
'The world is going through a special situation...you need people to take special risks,' he said. 'We are looking for 25 per cent returns...high risks, high returns. We are not looking for immediate returns. We are willing to wait two, three years.'
His team is assessing about 20 possible projects. Dr Modi said they are keen on joint ventures, and Marina Bay Sands is certainly on his radar screen.
He also said he is discussing a deal to buy a residential building in the eastern part of Singapore.
The other fund will focus on investment in entertainment.
'Singapore is very much the right place for me,' said Dr Modi. It is cosmopolitan, secular, very secure, has a growing population, well-connected.'
Weekend Launch for BelleRive off Bukit Timah (14 May 2009)
SING Holdings is launching its latest residential development, BelleRive, this weekend at indicative prices of between $1,325 and $1,464 per sq ft. The listed developer is also extending an interest absorption scheme to all buyers.
BelleRive, located off Bukit Timah Road between Balmoral and Robin roads, is a 15-storey apartment tower with a total of 51 units. Its two and three-bedroom units range from 958 sq ft to 1,679 sq ft.
The two penthouses, at 2,734 sq ft and 3,735 sq ft, each have a private roof garden, swimming pool and pool deck. The development boasts fittings and finishes from notable brands including kitchen appliances by Gaggenau and imported kitchens by Hoffen.
Project facilities include a swimming pool, barbecue area, children's playground and gymnasium. Project completion is scheduled for end-2010.
Sing Holdings chief executive Lee Sze Hao said yesterday that about 50 per cent of the freehold project was sold during a recent preview.
BelleRive is within walking distance of the upcoming MRT station in Stevens Road. It is also reasonably close to several schools including the Singapore Chinese Girls' School, Anglo-Chinese School (Barker Road), Raffles Girls Secondary School and St Joseph's Institution.
Sing Holdings' previous projects include 38 Draycott Drive, a high-end apartment block in the Ardmore Park area, and an office building named EastGate in the East Coast area.
Residential projects in the pipeline are Meyer Residence on the East Coast, an 85 per cent-owned project, and a joint-venture project called The Laurels at Cairnhill.
BelleRive, located off Bukit Timah Road between Balmoral and Robin roads, is a 15-storey apartment tower with a total of 51 units. Its two and three-bedroom units range from 958 sq ft to 1,679 sq ft.
The two penthouses, at 2,734 sq ft and 3,735 sq ft, each have a private roof garden, swimming pool and pool deck. The development boasts fittings and finishes from notable brands including kitchen appliances by Gaggenau and imported kitchens by Hoffen.
Project facilities include a swimming pool, barbecue area, children's playground and gymnasium. Project completion is scheduled for end-2010.
Sing Holdings chief executive Lee Sze Hao said yesterday that about 50 per cent of the freehold project was sold during a recent preview.
BelleRive is within walking distance of the upcoming MRT station in Stevens Road. It is also reasonably close to several schools including the Singapore Chinese Girls' School, Anglo-Chinese School (Barker Road), Raffles Girls Secondary School and St Joseph's Institution.
Sing Holdings' previous projects include 38 Draycott Drive, a high-end apartment block in the Ardmore Park area, and an office building named EastGate in the East Coast area.
Residential projects in the pipeline are Meyer Residence on the East Coast, an 85 per cent-owned project, and a joint-venture project called The Laurels at Cairnhill.
Singapore is Asia's Most Liveable City (26 Apr 2009)
SINGAPORE has risen six places in a global ranking of cities with the highest quality of living, overtaking cities such as Paris in France and Honolulu and San Francisco in the United States.
At 26th place, the Republic also surpassed all its Asian neighbours to be the region's best performer in the latest Worldwide Quality of Living Survey by human resource consultancy Mercer.
As the icing on the cake, Singapore also topped Mercer's list of cities with the best infrastructure in the world. It proved superior in various areas, including electricity and water supply, telephone and mail services, public transport, traffic congestion and range of international flights from local airports.
Although it is often taken for granted, infrastructure 'has a significant effect on the quality of living experienced by expatriates', said Ms Cathy Loose, Mercer's Asia Pacific global mobility leader.
The development of Marina Bay and Sentosa Cove as new waterfront living areas appear to have boosted Singapore's position in the rankings.
'Singapore already has excellent housing, but now its new ocean-front and seafront living options have allowed the ranking to move even higher,' said Mr Derrick Kon, Mercer's Singapore global mobility leader.
He added that the 'high-quality houses and apartments' that are available for rent and the 'excellent selection of appliances and furniture' for residents definitely helped elevate Singapore's quality of life.
The other factor that contributed to Singapore's higher ranking is the presence of 'many good schools' in the city, said Mr Kon.
'Singapore has always had a lot of good schools and international schools, but now there are also more private schools offering university degrees,' he said.
'If expatriates come here with their children, this is one area they would be looking at, and in Singapore they would have a lot of options, with international programmes and university programmes.'
Singapore's strong position in quality of life rankings such as these could stand the nation in good stead in the current financial crisis, said Mr Mark Ellwood, managing director of Robert Walters, another human resource consultancy.
With companies looking to cut costs, many are reducing the number of international assignments and localising their expat compensation packages where possible, which means not giving out the 'hardship' allowances or benefits that are offered to expats who have to live in cities with a lower quality of life.
'There is perhaps less of an argument these days that Singapore is a hardship posting, so you don't have to give many expat benefits in terms of additional bells and whistles,' said Mr Ellwood.
Singapore is the only Asian city on the top 100 list that managed to increase its ranking this year, with the rest largely maintaining their previous positions.
China's capital, Beijing, moved up three places from 116 to 113 due to public transport improvements stemming from the Olympic Games last year, but Bangkok in Thailand and Mumbai in India both dropped in the rankings amid worsened stability and security.
Globally, the Austrian city of Vienna overtook Switzerland's Zurich to boast the best quality of life this year. European cities continued to dominate the top positions in the ranking, amid a sprinkling of Canadian and American cities.
At 26th place, the Republic also surpassed all its Asian neighbours to be the region's best performer in the latest Worldwide Quality of Living Survey by human resource consultancy Mercer.
As the icing on the cake, Singapore also topped Mercer's list of cities with the best infrastructure in the world. It proved superior in various areas, including electricity and water supply, telephone and mail services, public transport, traffic congestion and range of international flights from local airports.
Although it is often taken for granted, infrastructure 'has a significant effect on the quality of living experienced by expatriates', said Ms Cathy Loose, Mercer's Asia Pacific global mobility leader.
The development of Marina Bay and Sentosa Cove as new waterfront living areas appear to have boosted Singapore's position in the rankings.
'Singapore already has excellent housing, but now its new ocean-front and seafront living options have allowed the ranking to move even higher,' said Mr Derrick Kon, Mercer's Singapore global mobility leader.
He added that the 'high-quality houses and apartments' that are available for rent and the 'excellent selection of appliances and furniture' for residents definitely helped elevate Singapore's quality of life.
The other factor that contributed to Singapore's higher ranking is the presence of 'many good schools' in the city, said Mr Kon.
'Singapore has always had a lot of good schools and international schools, but now there are also more private schools offering university degrees,' he said.
'If expatriates come here with their children, this is one area they would be looking at, and in Singapore they would have a lot of options, with international programmes and university programmes.'
Singapore's strong position in quality of life rankings such as these could stand the nation in good stead in the current financial crisis, said Mr Mark Ellwood, managing director of Robert Walters, another human resource consultancy.
With companies looking to cut costs, many are reducing the number of international assignments and localising their expat compensation packages where possible, which means not giving out the 'hardship' allowances or benefits that are offered to expats who have to live in cities with a lower quality of life.
'There is perhaps less of an argument these days that Singapore is a hardship posting, so you don't have to give many expat benefits in terms of additional bells and whistles,' said Mr Ellwood.
Singapore is the only Asian city on the top 100 list that managed to increase its ranking this year, with the rest largely maintaining their previous positions.
China's capital, Beijing, moved up three places from 116 to 113 due to public transport improvements stemming from the Olympic Games last year, but Bangkok in Thailand and Mumbai in India both dropped in the rankings amid worsened stability and security.
Globally, the Austrian city of Vienna overtook Switzerland's Zurich to boast the best quality of life this year. European cities continued to dominate the top positions in the ranking, amid a sprinkling of Canadian and American cities.
Lower-priced Landed Homes in Johor (26 Apr 2009)
Investors or people looking for retirement homes in Johor should be able to find attractive buys in the Malaysian state.
Mr Ivan Hoh, executive director of PropNex International, said Johor's proximity to Singapore makes it an attractive destination.
'Many aspire to own a landed property in Singapore which they can't afford, so the other alternative is to buy a house in Johor,' he said.
There is generally more demand for landed homes than condominiums in Johor, he added.
'As they have vast land, many prefer to live in a house with land versus paying a more hefty sum to live in a condominium. For about RM250,000 (S$104,000), you can get a decent terrace house of 1,500 sq ft. A condominium in a good location will cost at least RM350,000.'
Indeed, the lower prices compared with similar properties in Singapore are a huge draw.
Mr Lim Boon Ping, an agent with Johor-based Tiram Realty, said: 'Compared to Singapore or even other parts of Malaysia, Johor Bahru residential prices remain very attractive, thus making it a relatively cheap place to reside in.'
He cited the example of a single-storey terrace house in Taman Johor Jaya with a built-up area of 761sq ft.
'At its peak in 2006, transactions hit RM170,000 for a unit. Now, you can easily purchase one at around RM120,000.'
Knight Frank Research showed that 'movement of prices has been flat with no significant changes (in Johor's residential market)...the market is stable and does not show any sign of a 'bubble' scenario'.
Knight Frank also said rental rates and yields, which hover around 4 per cent to 5 per cent, are expected to come under pressure and show some downward adjustments in the near term.
Mr Hoh said: 'In terms of rental yield, a house in general will not be able to fetch as high a yield when compared to a condominium.
'As property prices have crept up over the years and rental rates stand still, the yields in Johor remain low, probably 3 per cent or 4 per cent.'
Malaysian property giant SP Setia has some projects in Johor.
Its Setia Indah project, for instance, has a range of units called the 180 Degree II. These are double-
storey terrace houses with a land area of 1,540 sq ft each.
Prices start from RM304,800. The development is expected to be completed in September.
SP Setia will soon launch Setia Eco Gardens, an eco-friendly development near the Second Link in Tuas. Its Visellia terrace units will have a built-up area of 1,926 sq ft onwards and are priced at $138,000 each.
Mr Eric Cheng, executive director of HSR Property Group, said of Johor: 'Singaporeans will have to drive only 10 or 15 minutes to get there on a weekend, and they will probably own a bigger land plot.
'But I think a true investor should wait and see. I think (they should) give themselves another good six months for the market to stabilise; I think it's still too early to judge.'
Mr Ivan Hoh, executive director of PropNex International, said Johor's proximity to Singapore makes it an attractive destination.
'Many aspire to own a landed property in Singapore which they can't afford, so the other alternative is to buy a house in Johor,' he said.
There is generally more demand for landed homes than condominiums in Johor, he added.
'As they have vast land, many prefer to live in a house with land versus paying a more hefty sum to live in a condominium. For about RM250,000 (S$104,000), you can get a decent terrace house of 1,500 sq ft. A condominium in a good location will cost at least RM350,000.'
Indeed, the lower prices compared with similar properties in Singapore are a huge draw.
Mr Lim Boon Ping, an agent with Johor-based Tiram Realty, said: 'Compared to Singapore or even other parts of Malaysia, Johor Bahru residential prices remain very attractive, thus making it a relatively cheap place to reside in.'
He cited the example of a single-storey terrace house in Taman Johor Jaya with a built-up area of 761sq ft.
'At its peak in 2006, transactions hit RM170,000 for a unit. Now, you can easily purchase one at around RM120,000.'
Knight Frank Research showed that 'movement of prices has been flat with no significant changes (in Johor's residential market)...the market is stable and does not show any sign of a 'bubble' scenario'.
Knight Frank also said rental rates and yields, which hover around 4 per cent to 5 per cent, are expected to come under pressure and show some downward adjustments in the near term.
Mr Hoh said: 'In terms of rental yield, a house in general will not be able to fetch as high a yield when compared to a condominium.
'As property prices have crept up over the years and rental rates stand still, the yields in Johor remain low, probably 3 per cent or 4 per cent.'
Malaysian property giant SP Setia has some projects in Johor.
Its Setia Indah project, for instance, has a range of units called the 180 Degree II. These are double-
storey terrace houses with a land area of 1,540 sq ft each.
Prices start from RM304,800. The development is expected to be completed in September.
SP Setia will soon launch Setia Eco Gardens, an eco-friendly development near the Second Link in Tuas. Its Visellia terrace units will have a built-up area of 1,926 sq ft onwards and are priced at $138,000 each.
Mr Eric Cheng, executive director of HSR Property Group, said of Johor: 'Singaporeans will have to drive only 10 or 15 minutes to get there on a weekend, and they will probably own a bigger land plot.
'But I think a true investor should wait and see. I think (they should) give themselves another good six months for the market to stabilise; I think it's still too early to judge.'
Sentosa Cove (25 Apr 2009)
CONSTRUCTION at Sentosa Cove is largely on schedule, but Sentosa Development Corporation (SDC) - which oversees the luxury residential enclave - has received a 'handful' of requests from developers to delay their upcoming projects, chief executive Mike Barclay told reporters yesterday.
SDC has granted an extension to one developer and it is reviewing requests from others. It will consider requests on a case-by-case basis, Mr Barclay said.
And in a few cases, land-owners have had to pay liquidated damages - which is essentially a penalty - for taking slightly longer than the maximum time allowed to develop the sites they bought. The penalty comes to 2 per cent of the land purchase price for each month's delay.
Buyers of land plots meant for landed homes are given four years to complete building on their sites, while buyers of condominium and commercial plots are given up to five years. So far, no major delays have been seen, SDC said. With most construction on track, Sentosa Cove should be home to some 2,100 condominium units and landed homes by 2014.
While some 2,500 homes could have been built on the Cove, some developers decided to combine land plots or build larger units, which means that the enclave will have fewer units than it could have.
To date, there are some 1,700 people living in Sentosa Cove in about 400 homes. More than 30 condominiums and landed properties have received their temporary occupation permits (TOPs).
This includes condominiums such as The Berth by the Cove and The Azure. Overall condo occupancy at projects that have achieved TOP now stands at about 70 per cent, according to data from SDC.
The number of people who have set up home in the Cove is expected to climb as another 60 projects are expected to get their TOPs over the next six months.
'With more TOPs on the way, our live-in population is set to swell to about 3,000 by the end of 2009,' said Mr Barclay.
About 840 homes - comprising 140 landed units and 700 condo apartments - will be ready by the end of this year, up from about 400 now.
Sentosa Cove comprises of North Cove and South Cove. Land parcels in the North Cove were launched first.
'By the end of the year, 85 per cent of the projects within North Cove will have obtained TOPs,' said Jason Yeo, general manager for Sentosa Cove Resort Management. 'As for South Cove, the land sale was completed in 2008 and it is envisaged to be fully developed by 2014.'
The masterplan for Sentosa Cove was finalised in 1996, and land sales kicked off in 2003. All land sites were sold by 2008, with the total investment from land sales for the Sentosa Cove project coming to some $5.1 billion in total. Some 60 per cent of all buyers were foreigners.
With all land plots on the island sold off, Sentosa's management has now turned its attention to building a cohesive residential community.
Right now, Sentosa Cove is home to people from 21 nationalities including Europe, the United States, China, India, Australia and neighbouring South-east Asian countries.
'We are actively building a community life now and are committed to fulfilling our vision of delivering the world's most desirable address,' said Mr Barclay.
'Are we on track with our vision? The answer is yes,' said Jennie Chua, chairman of the Sentosa Cove Council. In recent quarters, property prices across Singapore (including Sentosa Cove) have tumbled and reports of construction delays have emerged. But this is due to a global economic downturn, Ms Chua said. In the longer term, Sentosa Cove still offers an attractive residential enclave for locals and foreigners, she said.
SDC has granted an extension to one developer and it is reviewing requests from others. It will consider requests on a case-by-case basis, Mr Barclay said.
And in a few cases, land-owners have had to pay liquidated damages - which is essentially a penalty - for taking slightly longer than the maximum time allowed to develop the sites they bought. The penalty comes to 2 per cent of the land purchase price for each month's delay.
Buyers of land plots meant for landed homes are given four years to complete building on their sites, while buyers of condominium and commercial plots are given up to five years. So far, no major delays have been seen, SDC said. With most construction on track, Sentosa Cove should be home to some 2,100 condominium units and landed homes by 2014.
While some 2,500 homes could have been built on the Cove, some developers decided to combine land plots or build larger units, which means that the enclave will have fewer units than it could have.
To date, there are some 1,700 people living in Sentosa Cove in about 400 homes. More than 30 condominiums and landed properties have received their temporary occupation permits (TOPs).
This includes condominiums such as The Berth by the Cove and The Azure. Overall condo occupancy at projects that have achieved TOP now stands at about 70 per cent, according to data from SDC.
The number of people who have set up home in the Cove is expected to climb as another 60 projects are expected to get their TOPs over the next six months.
'With more TOPs on the way, our live-in population is set to swell to about 3,000 by the end of 2009,' said Mr Barclay.
About 840 homes - comprising 140 landed units and 700 condo apartments - will be ready by the end of this year, up from about 400 now.
Sentosa Cove comprises of North Cove and South Cove. Land parcels in the North Cove were launched first.
'By the end of the year, 85 per cent of the projects within North Cove will have obtained TOPs,' said Jason Yeo, general manager for Sentosa Cove Resort Management. 'As for South Cove, the land sale was completed in 2008 and it is envisaged to be fully developed by 2014.'
The masterplan for Sentosa Cove was finalised in 1996, and land sales kicked off in 2003. All land sites were sold by 2008, with the total investment from land sales for the Sentosa Cove project coming to some $5.1 billion in total. Some 60 per cent of all buyers were foreigners.
With all land plots on the island sold off, Sentosa's management has now turned its attention to building a cohesive residential community.
Right now, Sentosa Cove is home to people from 21 nationalities including Europe, the United States, China, India, Australia and neighbouring South-east Asian countries.
'We are actively building a community life now and are committed to fulfilling our vision of delivering the world's most desirable address,' said Mr Barclay.
'Are we on track with our vision? The answer is yes,' said Jennie Chua, chairman of the Sentosa Cove Council. In recent quarters, property prices across Singapore (including Sentosa Cove) have tumbled and reports of construction delays have emerged. But this is due to a global economic downturn, Ms Chua said. In the longer term, Sentosa Cove still offers an attractive residential enclave for locals and foreigners, she said.
Homebuyers of 2007 at Risk (25 Apr 2009)
The island-wide price index in property recorded a plunge of 14.1 percent in Q1, slightly higher than 13.8 percent flash estimate.
To date, this is considered the worst decline for a quarter. It is also worse than the quarter-on-quarter decline of 13.1 percent in Q3 of 1998 when the financial crisis in Asia affected the residential market.
Prices of private homes have now dived for three straight quarters, having a total drop of 21.2 percent since the peak in Q2 of 2008.
According to URA, the index of private home property is now close to the level it had in Q1 of 2007. Hence, home-owners who bought their flats after Q1 of 2007 may be at risk of having property valuation fall below the price of their purchase. For those owners who had their properties on deferred payment scheme and still have to make a loan would have the price ratio of loan-to-purchase limited, which they can get from financing companies.
However, anecdotal evidence has shown that these buyers were capable of paying up the purchase amount that was not supported by the valuation. This was necessary to control some distressed sales.
Furthermore, although prices of private homes are still expected to be depressed, the decline rate is expected to become moderate from the peak of Q1 of 2009, as home developers have substantially marked the down prices. Mass-market of homes could expect more gradually averaging price corrections in the region by up to 8 to 12 percent for the following three quarters, as developers of units that were not sold and secondary market sellers could adjust prices close to current levels.
The high-end and mid-tier segments could see larger declines in average price ranging from 10 to 15 percent over the same period.
To date, this is considered the worst decline for a quarter. It is also worse than the quarter-on-quarter decline of 13.1 percent in Q3 of 1998 when the financial crisis in Asia affected the residential market.
Prices of private homes have now dived for three straight quarters, having a total drop of 21.2 percent since the peak in Q2 of 2008.
According to URA, the index of private home property is now close to the level it had in Q1 of 2007. Hence, home-owners who bought their flats after Q1 of 2007 may be at risk of having property valuation fall below the price of their purchase. For those owners who had their properties on deferred payment scheme and still have to make a loan would have the price ratio of loan-to-purchase limited, which they can get from financing companies.
However, anecdotal evidence has shown that these buyers were capable of paying up the purchase amount that was not supported by the valuation. This was necessary to control some distressed sales.
Furthermore, although prices of private homes are still expected to be depressed, the decline rate is expected to become moderate from the peak of Q1 of 2009, as home developers have substantially marked the down prices. Mass-market of homes could expect more gradually averaging price corrections in the region by up to 8 to 12 percent for the following three quarters, as developers of units that were not sold and secondary market sellers could adjust prices close to current levels.
The high-end and mid-tier segments could see larger declines in average price ranging from 10 to 15 percent over the same period.
Mortgagee Sales Expects to Increase (25 Mar 2009)
MORTGAGEE sales - when repossessed homes are put on sale by financial institutions - have been few and far between so far but they are tipped to increase in the coming months.
The auction market remains weak but showed signs of life this month, said Colliers International yesterday.
There were 53 repossessed properties - 41 were residential - put up for sale in the first quarter, up 18 per cent from the fourth quarter last year.
Colliers said the rise may be small but it indicates an impending trend of continued growth, which is in tandem with the deteriorating economy.
Deputy managing director and auctioneer Grace Ng said a more significant number of mortgagee sales is expected later this year or next year.
'This is due to the lag time of approximately six months or more between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale,' she said.
Together with properties put up for sale by owners, there were 189 auctions in the first quarter but just 6 per cent were sold, up slightly from the low 5 per cent in the fourth quarter of last year.
Still, the value of deals rose and there were more transactions this month. Eight properties were auctioned off this month for a total of $12.955 million.
These transactions bring the total value done in the first quarter to $17.94million, up a striking 234 per cent from the fourth quarter.
When financial institutions put up some of the repossessed homes on sale, it triggers to increase in coming months
According to Colliers International, auction market is still low but shows signs of increase for this month, and the rise of mortgagee sales are small but may affect the impending constant growth in the market which is pair with the weakening economy.
There are 53 repossessed properties put on sale during the first quarter of the year, 41 of these are residential homes and an increases of 18% from the fourth quarter of 2008.
Grace Ng, auctioneer and deputy managing director says that significant mortgagee sales are expected to increase later part of the year up to next year.
“This is due to the lag time of approximately six months or more between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale,” Ng said.
Including the properties that put on sale by owner, a total of 189 actions are recorded during the first quarter of the year but only 6% are sold, a 1% increase from 5% in the fourth quarter last year.
However, the value of deal still increases and more transactions are noted this month. There are eight properties auctioned off this month for a total sale of $12.955 million.
The deals bring up a total value of $17.94million, a striking 234% from the fourth quarter.
The auction market remains weak but showed signs of life this month, said Colliers International yesterday.
There were 53 repossessed properties - 41 were residential - put up for sale in the first quarter, up 18 per cent from the fourth quarter last year.
Colliers said the rise may be small but it indicates an impending trend of continued growth, which is in tandem with the deteriorating economy.
Deputy managing director and auctioneer Grace Ng said a more significant number of mortgagee sales is expected later this year or next year.
'This is due to the lag time of approximately six months or more between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale,' she said.
Together with properties put up for sale by owners, there were 189 auctions in the first quarter but just 6 per cent were sold, up slightly from the low 5 per cent in the fourth quarter of last year.
Still, the value of deals rose and there were more transactions this month. Eight properties were auctioned off this month for a total of $12.955 million.
These transactions bring the total value done in the first quarter to $17.94million, up a striking 234 per cent from the fourth quarter.
When financial institutions put up some of the repossessed homes on sale, it triggers to increase in coming months
According to Colliers International, auction market is still low but shows signs of increase for this month, and the rise of mortgagee sales are small but may affect the impending constant growth in the market which is pair with the weakening economy.
There are 53 repossessed properties put on sale during the first quarter of the year, 41 of these are residential homes and an increases of 18% from the fourth quarter of 2008.
Grace Ng, auctioneer and deputy managing director says that significant mortgagee sales are expected to increase later part of the year up to next year.
“This is due to the lag time of approximately six months or more between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale,” Ng said.
Including the properties that put on sale by owner, a total of 189 actions are recorded during the first quarter of the year but only 6% are sold, a 1% increase from 5% in the fourth quarter last year.
However, the value of deal still increases and more transactions are noted this month. There are eight properties auctioned off this month for a total sale of $12.955 million.
The deals bring up a total value of $17.94million, a striking 234% from the fourth quarter.
98% Drop in Property Investment Sales (25 Mar 2009)
SINGAPORE – Property investment sales have plunged since the start of the year, and could get even worst.
CB Richard Ellis (CBRE)’s latest figures show that sales to this point have only reached $184.6 million. This is a 98 percent drop on the same period for the past year and a 56.4 percent more depleted than the fourth quarter of 2008.
The consultancy warned the previous day that the total investment sales have the tendency to drop to levels not encountered for over a decade, with sellers and buyers held in an impasse and far apart in terms of price expectations.
The first quarter of 1998 is the sole quarter that encountered lower investment sales with just $49.28 million, as well as the Q3 during the same year as they reached $110.62 million. To date, isolated individual deals were seen by the market, though collective sales or public sales were zero.
During the period, 51.5 per cent of total sales came from residential sector sales.
Fragrance Properties spent $25 million for a freehold Pasir Panjang site, which they intend to cultivate into a residential apartment building. Besides this recent acquisition, the developer previously bought three good-class bungalows for $18.2 million as well.
This kind of development will be uncommon this year as the majority of the developers concentrate on their current projects and they seemed not to be interested to look for new sites, according to CBRE.
CB Richard Ellis also added that minimum bid applications from the developers for some of the Government land sale sites have been completely ignored.
So far in the present quarter, there have been $77.3 million total sales in the commercial market. With it, the $35.8 million deal for Le Mercier House in Mohamed Sultan Road is the only major sale, which is around $900 psf.
The Loyang Crescent site that went for $6.2 million (or about $74 psf) was the only transaction in the industrial sector. The report indicates that this year’s total investment sales could revert to the 1998 levels, when $1.35 billion was the total annual quantum.
CBRE said “The lack of volume will continue to feature until such time when price expectations between buyers and sellers meet”.
Making new acquisitions in the current year are also implausible for real estate investment trusts due to the significant increased in dividend yields. And it would be quite risky to make acquisitions that are yield accretive.
CB Richard Ellis (CBRE)’s latest figures show that sales to this point have only reached $184.6 million. This is a 98 percent drop on the same period for the past year and a 56.4 percent more depleted than the fourth quarter of 2008.
The consultancy warned the previous day that the total investment sales have the tendency to drop to levels not encountered for over a decade, with sellers and buyers held in an impasse and far apart in terms of price expectations.
The first quarter of 1998 is the sole quarter that encountered lower investment sales with just $49.28 million, as well as the Q3 during the same year as they reached $110.62 million. To date, isolated individual deals were seen by the market, though collective sales or public sales were zero.
During the period, 51.5 per cent of total sales came from residential sector sales.
Fragrance Properties spent $25 million for a freehold Pasir Panjang site, which they intend to cultivate into a residential apartment building. Besides this recent acquisition, the developer previously bought three good-class bungalows for $18.2 million as well.
This kind of development will be uncommon this year as the majority of the developers concentrate on their current projects and they seemed not to be interested to look for new sites, according to CBRE.
CB Richard Ellis also added that minimum bid applications from the developers for some of the Government land sale sites have been completely ignored.
So far in the present quarter, there have been $77.3 million total sales in the commercial market. With it, the $35.8 million deal for Le Mercier House in Mohamed Sultan Road is the only major sale, which is around $900 psf.
The Loyang Crescent site that went for $6.2 million (or about $74 psf) was the only transaction in the industrial sector. The report indicates that this year’s total investment sales could revert to the 1998 levels, when $1.35 billion was the total annual quantum.
CBRE said “The lack of volume will continue to feature until such time when price expectations between buyers and sellers meet”.
Making new acquisitions in the current year are also implausible for real estate investment trusts due to the significant increased in dividend yields. And it would be quite risky to make acquisitions that are yield accretive.
Prime Homes Price in Singapore Falls (24 Mar 2009)
The Knight Frank Prime International Residential Index (Piri) stated that there was around 15 percent drop in prime home prices in Singapore in the previous year, coming as the fifth largest fall worldwide.
The biggest fall in 2008 was seen by Hong Kong with 24.5 percent. It was followed by the United Kingdom Home Counties with -19.4 percent, London with -16.9 percent and Marbella in Spain with -15 percent.
Piri seemed to have made a dull image for prime home prices all over the globe.
Mr. Liam Bailey, head of residential research at Knight Frank, says that even several locations saw the rise on values in the past year, growth had either held up or dropped in three-quarters of locations.
“It is now clear that not even the most desirable property around the world will remain immune to the global financial downturn”, Mr. Bailey said.
“The fact that some locations did manage to show positive growth - even as much of the world slipped into recession - is more of a reflection that different regions are in different stages of the economic cycle, rather than any inherent ability to ride out the storm unscathed”.
Markets that have demonstrated outstanding growth have also fallen rapidly. The 10.8 percent increase in prices in Dubai swiftly plunged 19 percent during Q4 when investors pulled of a flooded market.
Performance in prime Asian locations has noticeably weakened recently, and drop of steep prices is rumoured as wealth creation weakens.
“The latest Piri results show that even the world's richest people have reined back their discretionary spending in light of the credit crunch and global recession”, Mr. Bailey said.
Singapore took the title as the world’s ninth most expensive city location, with S$2,340 (US$1,550) per square foot (psf) prime properties. The country was ranked eight for the past year.
Meanwhile, the top spot was garnered by Monaco having US$6,550 psf, followed by London at US$3,670 psf, and New York (Manhattan) at US$2,160 psf. The seventh spot was obtained by Hong Kong at US$2,070 psf and Tokyo, at US$2,080 psf, got the sixth spot.
Nevertheless, these locations that made it to the top ten most expensive places still experience falling prices. A 2.1 percent increase in prices was seen by Monaco this year, though it drop 10.7 percent during the final quarter of the year from the third quarter.
Looking on the brighter side, the rich remain devoted to property, according to the Wealth Report's attitudes survey. The hope to possess good property in the finest markets keeps prime residential sector to be motivated.
“We believe the quality of the best prime locations will still continue to attract buyers and will recover the quickest”, Mr. Bailey stated.
The biggest fall in 2008 was seen by Hong Kong with 24.5 percent. It was followed by the United Kingdom Home Counties with -19.4 percent, London with -16.9 percent and Marbella in Spain with -15 percent.
Piri seemed to have made a dull image for prime home prices all over the globe.
Mr. Liam Bailey, head of residential research at Knight Frank, says that even several locations saw the rise on values in the past year, growth had either held up or dropped in three-quarters of locations.
“It is now clear that not even the most desirable property around the world will remain immune to the global financial downturn”, Mr. Bailey said.
“The fact that some locations did manage to show positive growth - even as much of the world slipped into recession - is more of a reflection that different regions are in different stages of the economic cycle, rather than any inherent ability to ride out the storm unscathed”.
Markets that have demonstrated outstanding growth have also fallen rapidly. The 10.8 percent increase in prices in Dubai swiftly plunged 19 percent during Q4 when investors pulled of a flooded market.
Performance in prime Asian locations has noticeably weakened recently, and drop of steep prices is rumoured as wealth creation weakens.
“The latest Piri results show that even the world's richest people have reined back their discretionary spending in light of the credit crunch and global recession”, Mr. Bailey said.
Singapore took the title as the world’s ninth most expensive city location, with S$2,340 (US$1,550) per square foot (psf) prime properties. The country was ranked eight for the past year.
Meanwhile, the top spot was garnered by Monaco having US$6,550 psf, followed by London at US$3,670 psf, and New York (Manhattan) at US$2,160 psf. The seventh spot was obtained by Hong Kong at US$2,070 psf and Tokyo, at US$2,080 psf, got the sixth spot.
Nevertheless, these locations that made it to the top ten most expensive places still experience falling prices. A 2.1 percent increase in prices was seen by Monaco this year, though it drop 10.7 percent during the final quarter of the year from the third quarter.
Looking on the brighter side, the rich remain devoted to property, according to the Wealth Report's attitudes survey. The hope to possess good property in the finest markets keeps prime residential sector to be motivated.
“We believe the quality of the best prime locations will still continue to attract buyers and will recover the quickest”, Mr. Bailey stated.
Some Loss but Most Gain in Subsales (19 Mar 2009)
Even though it is a difficult property year in Singapore, an overwhelming 95 percent of the property sellers who dealt private condominiums and flats in the subsale market a year ago were able to turn a great profit.
However, the amount of subsales that ran up losses totalled above doubled - from 24 in H1 of 2008 to 52 in H2 - indicating the falling market conditions particularly in the Q4.
For the knowledge of those who incurred a loss, 2008’s average loss for each unit also increased, from 7 percent or $138,000 in the first half of 2008 to 12 percent or $188,000 in the second half.
However, not all are sad stories, as there were also positive ones. For instance, the owner at The Sail incurred a profit of nearly $6.7 million after keeping his property business for around three years.
Analysis of caveats by Savills Singapore presented that the amount of loss cases increased as 2008 flapped along, from only 6 in the first quarter, going up to 18 in the second quarter, and steadying slightly at 20 in the third quarter, before upping to 32 in the last quarter of 2008.
Savills director (investment) Steven Ming said, “There were more owners cutting losses in the subsale market in H2 2008, especially in Q4, following the Lehman fallout and the global meltdown. Sales trickled and more people sold at losses”.
While the number of those who experienced losses from subsale deals have increased, the number of subsales that were able to produce income on the other hand dropped by 16.8 percent, from 757 during the first half of 2008 to 630 in the second half.
In general, the result only shows that it is much pleasing to keep someone’s property for a long time. Averagely, the largest profits of $785,000 each unit were bagged by those property buyers who bought homes in 2004 and sold them in the second half of 2008, followed by those who bought homes in 2005 and sold them in the first half of 2008, gathering an average profit of almost $666,000.
Those property buyers, who bought homes in 2006 and sold them in the first half of 2008, were the ones who incurred the largest average loss of $210,000.
Approximately 90 percent of the 76 investors, who incurred a big loss in the subsale market throughout 2008, had purchased units in 2007 during the peak in the property market.
Peter Ow, the executive director of (residential) Knight Frank, noticed that an investor would typically decrease losses in the subsale market once the time to pay the developer comes. “An investor exposed to a few properties bought on deferred payment scheme (DPS) may want to cut losses on the first one or two to improve his cashflow so when it is time to pay up for the third one, he can afford it”, he said.
As an addition to various home owners, who find it hard to acquire enough bank loans to complete acquisitions, Mr. Ming pointed out that those having a strike in the subsale market can admit “savvy investors seeking to diversify their investments and allocating a part of the exposure to other undervalued asset classes”.
However, the amount of subsales that ran up losses totalled above doubled - from 24 in H1 of 2008 to 52 in H2 - indicating the falling market conditions particularly in the Q4.
For the knowledge of those who incurred a loss, 2008’s average loss for each unit also increased, from 7 percent or $138,000 in the first half of 2008 to 12 percent or $188,000 in the second half.
However, not all are sad stories, as there were also positive ones. For instance, the owner at The Sail incurred a profit of nearly $6.7 million after keeping his property business for around three years.
Analysis of caveats by Savills Singapore presented that the amount of loss cases increased as 2008 flapped along, from only 6 in the first quarter, going up to 18 in the second quarter, and steadying slightly at 20 in the third quarter, before upping to 32 in the last quarter of 2008.
Savills director (investment) Steven Ming said, “There were more owners cutting losses in the subsale market in H2 2008, especially in Q4, following the Lehman fallout and the global meltdown. Sales trickled and more people sold at losses”.
While the number of those who experienced losses from subsale deals have increased, the number of subsales that were able to produce income on the other hand dropped by 16.8 percent, from 757 during the first half of 2008 to 630 in the second half.
In general, the result only shows that it is much pleasing to keep someone’s property for a long time. Averagely, the largest profits of $785,000 each unit were bagged by those property buyers who bought homes in 2004 and sold them in the second half of 2008, followed by those who bought homes in 2005 and sold them in the first half of 2008, gathering an average profit of almost $666,000.
Those property buyers, who bought homes in 2006 and sold them in the first half of 2008, were the ones who incurred the largest average loss of $210,000.
Approximately 90 percent of the 76 investors, who incurred a big loss in the subsale market throughout 2008, had purchased units in 2007 during the peak in the property market.
Peter Ow, the executive director of (residential) Knight Frank, noticed that an investor would typically decrease losses in the subsale market once the time to pay the developer comes. “An investor exposed to a few properties bought on deferred payment scheme (DPS) may want to cut losses on the first one or two to improve his cashflow so when it is time to pay up for the third one, he can afford it”, he said.
As an addition to various home owners, who find it hard to acquire enough bank loans to complete acquisitions, Mr. Ming pointed out that those having a strike in the subsale market can admit “savvy investors seeking to diversify their investments and allocating a part of the exposure to other undervalued asset classes”.
Interest Absorption Scheme (8 Mar 2009)
What does it mean?
This is a scheme that property developers offer in conjunction with banks at project launches.
It is similar to the deferred payment scheme, in that it allows you to defer the bulk of the purchase price until the project's temporary occupation permit period.
The big difference is that under the interest absorption scheme, you have to take a bank loan at the time of purchase. But the developer will absorb the interest payments on the loan until the project's completion.
The scheme may be offered at a premium. Some developers are now charging a 3 per cent premium over the buying price.
Why is it important?
This scheme allows genuine home buyers to commit to a purchase with just a small upfront payment.
More developers have been using this to help drive sales after the Government scrapped the deferred payment scheme in late 2007.
So you want to use the term? Just say...
'If I take up the interest absorption scheme, I won't have to worry about the monthly payments until the development is completed.'
This is a scheme that property developers offer in conjunction with banks at project launches.
It is similar to the deferred payment scheme, in that it allows you to defer the bulk of the purchase price until the project's temporary occupation permit period.
The big difference is that under the interest absorption scheme, you have to take a bank loan at the time of purchase. But the developer will absorb the interest payments on the loan until the project's completion.
The scheme may be offered at a premium. Some developers are now charging a 3 per cent premium over the buying price.
Why is it important?
This scheme allows genuine home buyers to commit to a purchase with just a small upfront payment.
More developers have been using this to help drive sales after the Government scrapped the deferred payment scheme in late 2007.
So you want to use the term? Just say...
'If I take up the interest absorption scheme, I won't have to worry about the monthly payments until the development is completed.'
Adam Khoo - Large Investor but Thrifty Spender
Regardless of becoming a wealthy man, entrepreneur-cum-motivational lecturer, Adam Khoo hesitates before he spends on products like iPhone.
However, in terms of investments, the founder of the Adam Khoo Learning Technologies Group will not even have a second thought when investing, supposing, $50,000 worth of stocks, since these are expected to possibly generate more cash.
As a long-term and conservative investor, he chooses to engage investment in cash-rich, large-capital firms that offer low debts and the possibility to constantly raise their earnings.
His group concentrates on education and consists of 16 companies in seven nations with a yearly $15 million turnover. In 1999, he also assumed an advertising firm, Adcom, which was previously owned by his father.
Mr. Khoo earned a degree in business administration from Singapore’s National University. He is also recognised for his famous books. Previously last month, he introduced his ninth book entitled Profit From Panic, which provides practical information regarding how to relate with the present economic crisis.
Ms. Sally Ong is Mr. Khoo’s wife, who acts as a director at one of his companies. They have two daughters namely Kelly and Samantha.
One factor that helped him to attain wealth is his frugality. He saved the half of his income and does not spend a lot on luxurious things. His clothes were bought individually once in a year, which shows his simple taste.
Mr. Khoo invests 100% of his savings systematically. However, when the market becomes overvalued, he holds a bigger amount of cash as his precautionary measure. He personally manage his portfolio, which is made out of several investments such as private businesses, Singapore stocks, property rent outs, exchange- traded funds (ETFs), and US stocks. Annually, his investments generate an average return of more than 20%.
Currently, he have approximately US$400,000 or S$611,000 in US stocks, such as Google, Boeing, Nike, ETFs, and Pepsico, and $400,000 in Singapore stocks, such as OCBC Bank, CapitaLand, the Singapore Stock Exchange, STI ETF, and Bestworld.
In 1998, Mr. Khoo purchased 1,300 square feet condominium located in East Coast worth $480,000 and placed it on lease for almost $3,000. He then sold it in 2004 for $650,000.
He also owns 5,000 square feet semi- detached residence situated in East Coast which he purchased for $1.3 million four years ago. Last year, he bought 900 square feet condominium worth $1.3 million, located at Robertson and placed it on lease for $4,000.
When he was 15 years old, his grandfather gives him hongbao with cash as well as Malaysian shares like Kuantan Flour Mill, Hicom, and Genting every Chinese New Year. At the army, he tried dabbling in shares and was inspired by a book entitled, Buffetology, which was based on Warren Buffett’s achievement and work.
Last October, he bought a red Lotus worth $230,000 as a reward for his hard works.
He can stop working anytime he wants with his passive book royalty incomes including business profits, which can cover all his expenses without working.
However, in terms of investments, the founder of the Adam Khoo Learning Technologies Group will not even have a second thought when investing, supposing, $50,000 worth of stocks, since these are expected to possibly generate more cash.
As a long-term and conservative investor, he chooses to engage investment in cash-rich, large-capital firms that offer low debts and the possibility to constantly raise their earnings.
His group concentrates on education and consists of 16 companies in seven nations with a yearly $15 million turnover. In 1999, he also assumed an advertising firm, Adcom, which was previously owned by his father.
Mr. Khoo earned a degree in business administration from Singapore’s National University. He is also recognised for his famous books. Previously last month, he introduced his ninth book entitled Profit From Panic, which provides practical information regarding how to relate with the present economic crisis.
Ms. Sally Ong is Mr. Khoo’s wife, who acts as a director at one of his companies. They have two daughters namely Kelly and Samantha.
One factor that helped him to attain wealth is his frugality. He saved the half of his income and does not spend a lot on luxurious things. His clothes were bought individually once in a year, which shows his simple taste.
Mr. Khoo invests 100% of his savings systematically. However, when the market becomes overvalued, he holds a bigger amount of cash as his precautionary measure. He personally manage his portfolio, which is made out of several investments such as private businesses, Singapore stocks, property rent outs, exchange- traded funds (ETFs), and US stocks. Annually, his investments generate an average return of more than 20%.
Currently, he have approximately US$400,000 or S$611,000 in US stocks, such as Google, Boeing, Nike, ETFs, and Pepsico, and $400,000 in Singapore stocks, such as OCBC Bank, CapitaLand, the Singapore Stock Exchange, STI ETF, and Bestworld.
In 1998, Mr. Khoo purchased 1,300 square feet condominium located in East Coast worth $480,000 and placed it on lease for almost $3,000. He then sold it in 2004 for $650,000.
He also owns 5,000 square feet semi- detached residence situated in East Coast which he purchased for $1.3 million four years ago. Last year, he bought 900 square feet condominium worth $1.3 million, located at Robertson and placed it on lease for $4,000.
When he was 15 years old, his grandfather gives him hongbao with cash as well as Malaysian shares like Kuantan Flour Mill, Hicom, and Genting every Chinese New Year. At the army, he tried dabbling in shares and was inspired by a book entitled, Buffetology, which was based on Warren Buffett’s achievement and work.
Last October, he bought a red Lotus worth $230,000 as a reward for his hard works.
He can stop working anytime he wants with his passive book royalty incomes including business profits, which can cover all his expenses without working.
Apartments for Rent in Vietnam Unscathed (24 Jan 2009)
The segment of serviced apartments remains untouched by woes of the property market, with high demand of apartments for rent in major cities despite the economic downturn, according to a report of Vietnam News Agency.
A representative of the Ascott International Management Vietnam said that over 800 high-class apartments were managed by his company in Ho Chi Minh and Hanoi City and many of them were rented. These apartments were popular to foreign people who had been working and living in Vietnam for more than three years, he added. Though foreigners were allowed by the government to purchase houses, effective from 1 January, most of them are not willing to do so, the representative said.
They were comfortable living in areas with good amenities and infrastructures, he explained, while many new houses were built in localities and do not have those factors.
Apartments located in developed areas were more costly, he added. TSQ Vietnam Company Vice Chairman Do Quan also said rentals were preferred by foreigners rather than buying apartments.
Few of them have the need and the financial means to have a property in Vietnam, Mr. Quan added.
Lam Van Chuc, chairman of property company Phuc Duc, said that many foreigners were not yet ready to purchase houses in cash, unlike the Vietnamese. Moreover, these foreigners would only pay mortgages for the apartments if there were extremely low interest rates, he added.
CBRE Vietnam, a property consultant, said that with the gradual decline in the global economy, many foreigners in Ho Chi Minh and Hanoi City would be glad to pay rental for apartments at prices ranging from US$1,000 to US$1,500 per month rather than spend US$200,000 in buying them.
A representative of the Ascott International Management Vietnam said that over 800 high-class apartments were managed by his company in Ho Chi Minh and Hanoi City and many of them were rented. These apartments were popular to foreign people who had been working and living in Vietnam for more than three years, he added. Though foreigners were allowed by the government to purchase houses, effective from 1 January, most of them are not willing to do so, the representative said.
They were comfortable living in areas with good amenities and infrastructures, he explained, while many new houses were built in localities and do not have those factors.
Apartments located in developed areas were more costly, he added. TSQ Vietnam Company Vice Chairman Do Quan also said rentals were preferred by foreigners rather than buying apartments.
Few of them have the need and the financial means to have a property in Vietnam, Mr. Quan added.
Lam Van Chuc, chairman of property company Phuc Duc, said that many foreigners were not yet ready to purchase houses in cash, unlike the Vietnamese. Moreover, these foreigners would only pay mortgages for the apartments if there were extremely low interest rates, he added.
CBRE Vietnam, a property consultant, said that with the gradual decline in the global economy, many foreigners in Ho Chi Minh and Hanoi City would be glad to pay rental for apartments at prices ranging from US$1,000 to US$1,500 per month rather than spend US$200,000 in buying them.
The Process of Renting a Place (18 Jan 2009)
The correct process of searching a rental house may be easy for some people, but terrible for others. Last month, a couple from Malaysia and an expatriate from Japan were fooled by a swindler pretending to be a manager-cum-landlord of a property terrace residence in Serangoon Gardens.
He rented the same residence to the two parties and ran off their money worth $10,300. Both parties reported to the police, but there is no assurance that they will obtain their money back.
A property agent said that lease scams happen most of the time and most of them include HDB residences. Although there are no possible foolproof ways to prevent these lease scams, there are still safety measures that tenants can assume to ensure they will not become a prey to a deceit.
On dealing with agents, tenants should primarily deal or engage with a certified property agent of an established or a reputable company, according to Mr. Mohamed Ismail, PropNex chief executive.
Even tough this is clearly not foolproof; it does give a protection if something will go wrong. ”At least there is a company to go to for help,” he said.
Companies like his will do investigations and take proper actions, such as ending the services of the agent if needed or assisting the tenant to obtain his money back, he said.
Secondly, check the property firm of the agent or the Internet site of the Institute of Estate Agents (IEA) to know if the person making a deal is a legitimate agent, advised Mr. Mohamed Ismail, the first vice-president of IEA.
Thirdly, tenants should not pay an agent with large cash. He added, “If you pay cash, he can misappropriate the money”. Instead, they should disburse with a use of a cheque or cashier’s order stating the name of the owner.
Before tenants sign the lease, the Property agency also recommends discovering the standard practises before entering a lease agreement.
These property agents should carry out due diligence to determine the property’s ownership they are managing, so tenants can see the documents. The property tax statement of the owner would be upright.
If tenants are dealing with a managing agent, one should ask for documented proof such as an authorisation letter from the property owner allowing the agent to take actions on his behalf or a power of attorney, according to Mr. Albert Lu, managing director of C&H Realty.
Mr Eric Cheng, executive director of HSR Property Group, said that tenants should negotiate for a lesser deposit and it is up to the property owner to agree, even if in the property market, the standard is a one month deposit for a year rental and two months deposit for two year rental.
He added tenants should only pay the advance lease upon the passing over of the keys to the property, to lessen their risk.
However, legitimate owners sometimes cheat, too. Therefore, tenants should pay their lease on a monthly basis, Mr. Cheng recommended. There were tenants who were satisfied to pay out 6 to 8 months in advance lease for a lower rental fee, only to discover later they were cheated.
In one situation, the lawful owner sold his apartment soon after the rent was closed and disappeared.
Tenants should have to be watchful, said Mr. Lu. ”If the rent is too good to be true, then you have to beware”.
He rented the same residence to the two parties and ran off their money worth $10,300. Both parties reported to the police, but there is no assurance that they will obtain their money back.
A property agent said that lease scams happen most of the time and most of them include HDB residences. Although there are no possible foolproof ways to prevent these lease scams, there are still safety measures that tenants can assume to ensure they will not become a prey to a deceit.
On dealing with agents, tenants should primarily deal or engage with a certified property agent of an established or a reputable company, according to Mr. Mohamed Ismail, PropNex chief executive.
Even tough this is clearly not foolproof; it does give a protection if something will go wrong. ”At least there is a company to go to for help,” he said.
Companies like his will do investigations and take proper actions, such as ending the services of the agent if needed or assisting the tenant to obtain his money back, he said.
Secondly, check the property firm of the agent or the Internet site of the Institute of Estate Agents (IEA) to know if the person making a deal is a legitimate agent, advised Mr. Mohamed Ismail, the first vice-president of IEA.
Thirdly, tenants should not pay an agent with large cash. He added, “If you pay cash, he can misappropriate the money”. Instead, they should disburse with a use of a cheque or cashier’s order stating the name of the owner.
Before tenants sign the lease, the Property agency also recommends discovering the standard practises before entering a lease agreement.
These property agents should carry out due diligence to determine the property’s ownership they are managing, so tenants can see the documents. The property tax statement of the owner would be upright.
If tenants are dealing with a managing agent, one should ask for documented proof such as an authorisation letter from the property owner allowing the agent to take actions on his behalf or a power of attorney, according to Mr. Albert Lu, managing director of C&H Realty.
Mr Eric Cheng, executive director of HSR Property Group, said that tenants should negotiate for a lesser deposit and it is up to the property owner to agree, even if in the property market, the standard is a one month deposit for a year rental and two months deposit for two year rental.
He added tenants should only pay the advance lease upon the passing over of the keys to the property, to lessen their risk.
However, legitimate owners sometimes cheat, too. Therefore, tenants should pay their lease on a monthly basis, Mr. Cheng recommended. There were tenants who were satisfied to pay out 6 to 8 months in advance lease for a lower rental fee, only to discover later they were cheated.
In one situation, the lawful owner sold his apartment soon after the rent was closed and disappeared.
Tenants should have to be watchful, said Mr. Lu. ”If the rent is too good to be true, then you have to beware”.
Hot Bargains for House Buyers (4 Jan 2009)
The property market is having a quiet start for 2009, with several developers now temporarily closing their flats in response to the decrease in the volume of customers.
However, as the housing prices continue to fall, many house buyers are attracted back to the market and their shopping business.
Some small development projects are coming back to the market, while others that are already launched earlier are now giving away discounts and several buying incentives.
In Balestier area, Roxy Homes is launching two boutique projects, the Nova 48 and Nova 88, both located at Balestier Road.
Nova 48 in Prome Road has 48 units while Nova 88 in Bhamo Road has 88 units. Both of them offer a price of $1,000 per square foot and a bedroom unit with a size of 506 square feet at a starting price of $500,000.
Another upcoming opening is the Alexis in Alexandra Road. Its freehold development is located at less than ten minute walk from Queenstown MRT Station and has around 300 units, according to a property agent.
Indicative prices ranges from $900 to $1,000 per square foot and developer offers a payment scheme more likely similar to a deferred payment whereas, buyers can able to pay 20 percent initial payment and then nothing until completion.
Another developer, the Heritage Group is now holding its private previews for the Vivace, a 99-year leasehold project plan, to be built at old Tong Watt Mansion near the Robertson Quay.
Its 85-unit development project consist mostly with small units and ranges from 388 square feet one-bedroom apartments to a 990 square feet penthouse. Price ranges from $580,000 to about $1,500 per square foot.
Several developers have cut prices and are now offering the lowest prices never seen before.
Just like the Novelty Group for instance, they decreased the price of their Lucida project along Thomson Road. The selling price of its 62-unit development project was around $1,600 per square metre when it launched earlier last year but now, its sells at around $1,200 per square foot. One-bedroom unit is 624 square feet while two-bedroom is 1,066 square feet.
In East Coast, the selling price for Mountbatten Suites has plunged from $1,100 per square foot when it launched to around $900 per square foot now. The developer is also offering a deferred payment scheme and legal fees.
The Frasers Centrepoint also gives renovation vouchers to their buyers on its Woodsville 28 project in Potong Pasir. A Two-bedroom apartment will get a $20,000 while three-bedroom unit gets $30,000 voucher.
For the rest of 2009, interested home buyers can check out offerings from City Developments, including the upcoming launch of Phase 2 of Livia in Pasir Ris, Quayside Isle in Sentosa Cove and The Arte in Thomson Road.
While price starts at $797,000 for Livia’s three-bedroom units, selling price for The Arte and Quayside Isle are not yet finalised.
Meanwhile, the Far East Organisation is also planning to launch its latest cluster of phased houses on their Greenwood landed housing development project as well as a 99-year leasehold project in Choa Chu Kang.
However, as the housing prices continue to fall, many house buyers are attracted back to the market and their shopping business.
Some small development projects are coming back to the market, while others that are already launched earlier are now giving away discounts and several buying incentives.
In Balestier area, Roxy Homes is launching two boutique projects, the Nova 48 and Nova 88, both located at Balestier Road.
Nova 48 in Prome Road has 48 units while Nova 88 in Bhamo Road has 88 units. Both of them offer a price of $1,000 per square foot and a bedroom unit with a size of 506 square feet at a starting price of $500,000.
Another upcoming opening is the Alexis in Alexandra Road. Its freehold development is located at less than ten minute walk from Queenstown MRT Station and has around 300 units, according to a property agent.
Indicative prices ranges from $900 to $1,000 per square foot and developer offers a payment scheme more likely similar to a deferred payment whereas, buyers can able to pay 20 percent initial payment and then nothing until completion.
Another developer, the Heritage Group is now holding its private previews for the Vivace, a 99-year leasehold project plan, to be built at old Tong Watt Mansion near the Robertson Quay.
Its 85-unit development project consist mostly with small units and ranges from 388 square feet one-bedroom apartments to a 990 square feet penthouse. Price ranges from $580,000 to about $1,500 per square foot.
Several developers have cut prices and are now offering the lowest prices never seen before.
Just like the Novelty Group for instance, they decreased the price of their Lucida project along Thomson Road. The selling price of its 62-unit development project was around $1,600 per square metre when it launched earlier last year but now, its sells at around $1,200 per square foot. One-bedroom unit is 624 square feet while two-bedroom is 1,066 square feet.
In East Coast, the selling price for Mountbatten Suites has plunged from $1,100 per square foot when it launched to around $900 per square foot now. The developer is also offering a deferred payment scheme and legal fees.
The Frasers Centrepoint also gives renovation vouchers to their buyers on its Woodsville 28 project in Potong Pasir. A Two-bedroom apartment will get a $20,000 while three-bedroom unit gets $30,000 voucher.
For the rest of 2009, interested home buyers can check out offerings from City Developments, including the upcoming launch of Phase 2 of Livia in Pasir Ris, Quayside Isle in Sentosa Cove and The Arte in Thomson Road.
While price starts at $797,000 for Livia’s three-bedroom units, selling price for The Arte and Quayside Isle are not yet finalised.
Meanwhile, the Far East Organisation is also planning to launch its latest cluster of phased houses on their Greenwood landed housing development project as well as a 99-year leasehold project in Choa Chu Kang.
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