Colliers traces land openings by referencing patterns during SARS episode

To evaluate how Singapore’s land markets will be affected because of the progressing infection flare-up, Colliers International’s new research report references showcase execution during the SARS flare-up in 2003.

That year, Singapore’s financial development saw a 0.3% y-o-y withdrawal in Q2, at the tallness of the SARS flare-up. In any case, the economy bounced back in Q3 and Q4 of 2003 with separate development paces of 5.3% and 8.9% y-o-y. Gross domestic product development in 2003 was 4.5% however recuperated as the upswing proceeded in 2004, when Singapore’s GDP developed by 9.9%.

Singapore’s property advertise was on the decay preceding the SARS episode, however office rents were up by 3.5%, retail leases by 3.7% and mechanical rents moved by 1.5% before the finish of 2004.

Generally speaking land venture deals recouped to $3.2 billion inside the second 50% of 2003, a 29% expansion y-o-y.

Taking a gander at patterns in 2003, head of Research for Singapore at Colliers International Tricia Song says: “Expecting the Covid-19 flare-up shows its course to June this year, we gauge that specific property areas, for example, speculation deals and office renting, could see quick recuperation in the second 50% of 2020.”

Be that as it may, she alerts that with the ongoing spread of the infection past East Asia, there is an expanded chance of a negative situation where interruption perseveres into the second 50% of 2020.

Colliers Research keeps up its gauges for the different property divisions for the time being. It prescribes different property areas to quicken innovation selection, be it growing disconnected to-online procedures for retailers or receiving productive stock and last-mile the executives procedure for distribution centers.

CBRE Named Sole Renting Operator in China

HDB to Offer More 2 Bedroom BTOs by Guocoland

For the latest BTO Exercise that is launched for sale, HDB will offer more two-room Build-To-Order (BTO) flats in Tengah, Choa Chu Kang and Woodlands as more singles applied for a new BTO Flat given that singles are now eligible for purchase.

There was a new ruling that was introduced in 2013 whereby singles above 35 years old are allowed to purchase as first timer applicants. Before that, singles are only allowed to buy resale flats in the open market as restrictions are being placed on their purchase.

A total 15,700 singles have decided to apply for a new flat via BTO and based on statistics, a total of 7,700 have already collected keys to their new unit. There were also buyers who are over 55 years old close to retirement who buy the flats under the 2 room flexi scheme. HDB note that the scheme caters to singles, families and the eldery who are in need of a new flat and have been searching actively in the market. New flats tend to be cheaper compared to resale which explains the popularity of these new BTO flats which stands to benefit many of the residents applying. Less money is also needed on renovation and therefore BTOs tend to be more popular among home seekers as there is also a fresh 99 years lease for the glat.

HDB note that the ramping up of building of 2 room BTOs has saw the applicants to unit ratio dropping from 37.6 in 2013 to 2.4 in 2019. This was also due to the fact that the backlog of buyers have been satisfied over the course of the years. Demand remain robust and roughly around the same for applicants that choose a BTO or a resale.

Those who acquire a new flat prior to 11 September 2019 received up to $40,000 in housing grants comprising up to $20,000 in Special CPF Housing Grant and up to $20,000 in Additional Central Provident Fund (CPF) Housing Grant.

ERA Apac Realty Expands to Overseas

Midtown Gardens Project Details by Guocoland Bugis

A recent review of ERA Realty Network which is listed as APAC Realty on the Singapore stock exchange has bring in good reviews among brokers due to the strong financing as well as the recovery of the real estate market. Yesterday, APAC Realty announced its 4Q19 earnings, which came in at $5.5 million, 33.3% higher than $4.1 million a year ago due to stronger revenue growth from new launches as well as better market share as the number of property agents that ERA now encompasses has increased. Please also see the latest new launch at Midtown Gardens Project Details by Guocoland located right at the heart of the city. The group also plans to expand overseas to gain more exposure in the real estate market. Though some companies may not be too optimistic, others are looking forward to the overseas expansion of Apac Realty.

Jack Chua, executive chairman and CEO of APAC Realty mentioned that ERA continues to be a leading property agency in Singapore and it is committed to providing more trainings to its real estate salesperson given that the real estate market has became more robust lately. Technological advances has made agents more productive in the quest to match owner’s listings with buyer’s expectations. The better 4Q performance was due to higher brokerage income contribution from new home sales, which jumped 79% y-o-y to $42.1 million.

Analyst are also confident that the international real estate scene also contribute to ERA performance as the international real estate scene continue to be robust and there is demand for overseas real estate as well. With upcoming new launches that are due in Singapore and ERA being the real estate agency of choice from property developers, there is also an expected continual income stream from the property agency as well. The agency also expects overseas agent numbers to increase as well given that real estate markets such as Thailand and Vietnam receives good response from overseas investors as well. Also, developer sales and the resale market have so far been holding up despite fears of pullback due to the Covid-19 outbreak. The virus might be short-lived and recovery is expected.

The M Sells Almost 350 Units with Smaller Units Sold

Preview day at The M sees many buyers looking for a unit at the new development by Wing Tai Holdings. The M is a new development located at Downtown Bugis and is highly sought after by real estate investors. Almost 350 units were sold at The M and most of the units sold at the M are the smaller units with the studio and 1 Bedroom units highly popular among investors who are looking for a unit in the core city centre. Please see neighbouring Midtown Gardens location which is located right at the doorstep of Bugis.

The majority of buyers are in their 30s and 40s, comprising both owner-occupiers and investors. This demonstrates that home buyers have confidence in The M and in the precautionary measures we have taken to protect them from any spread of COVID-19. Such sales result is very good news not just for the developer of The M, but the industry as a whole as buyers still remain upbeat about the real estate market. We have not seen such good pace of sales for a core city centre new launch in the past year. Besides its location and design of the overall project, The M’s home/work concept resonated well with investors, many of whom bought the small units to rent out or for own stay.

Wing Tai note that they are encouraged by the response of buyers who are snapping up the units at The M and also the fact that property buying remains Singaporeans favourite past time and that core city centre developments remain highly popular. The prime location of The M in the Ophir-Rochor Corridor attract investors and homebuyers was the work-life (home/work) concept and reasonable pricing.

The M consist mainly of studio, 1 and 2 Bedroom with 3DK units available as well and therefore there are buyers who are buying a 2nd unit for own stay. As of booking date, all the studio units are sold and most of them are investors looking to rent out their studio unit right at the heart of the city. There are also a couple of 1 Bedroom units left with 2 Bedrooms still available for buyers to choose. Despite the new coronavirus, Wing Tai have announced that Property Prices are unlikely to drop given that there is still a core demand for smaller units in the core city centre. Sales at The M is also contributed due to luxurious finishes and super duper Smart Home System.

Hundreds of Buyers already secure their units today as they know surrounding new projects are already selling at an average of $2900ps. The idea is not to miss this opportunity before the VVIP discounts are taken away by Wing Tai Holdings. One of the unique highlights of The M is that there is Traffic light to Bugis Junction and MRT Interchange and a vverhead bridge to Suntec City Convention and Shopping Centre making it one of the most convenient new launch developments. It is no wonder why almost 350 units were sold on launch day with the smaller units almost fully sold. The M Sales Gallery is at Prinsep Street and parking is available at Sunshine Plaza

The M Sells More Than 300 Units on Preview Day

It is noted that despite the coronavirus that has since spread in January this year, The M at Bugis has sold more than 300 units today indicating that despite the recent spread in the virus, many buyers are still keeping a lookout for core city development properties that have huge capital upside and The M is one of them. This is because The M is located at Bugis and with prices that start from less than $1.0M making the new launch a very attractive pricing to enter from. More details on Midtown Gardens near to The M can be found here. Midtown Gardens is by Guocoland.

Analyst are surprised that new launch sales has attracted so many buyers given that there is now global uncertainty with regards to the virus. But property agents note that The M is located in the mature estate of Bugis where there are many attractions and eateries and therefore are very looking forward to owning a brand new development in the core city centre. The average selling price is more than $2,400 to $2,500 psf but The M features many extensive amenities to cater to the residents.Singapore’s District 7 may soon enter “unchartered territory” and unseat District 9 as the country’s most prime residential area given the wide range of amenities in Bugis. Bugis is changing from a “history-rich, predominantly commercial precinct” into a “hip and vibrant civic district” where many cosmopolitan individuals stay at and mingle and climb the social ladder.

Analyst also note that the good sales in The M is highly sought after and may set the trend to see more residential units will be for sale. District 7 looks set to become the most expensive residential district in Singapore and may surpass district 09 Orchard. District 7 has the essential attributes such as shopping and eateries for a good residential property purchase – culturally rich, high rentability and potential for capital appreciation.

Push for Cloud Manufacturing for Supply Chains

Following the latest outbreak of covid-19, supply chains have undergone tremendous pressure around the world. Recent official reports dictate how the supply chain of goods has been disrupted by factories in China and are shutting down on a massive scale systematically leading to a slowdown in production. For Midtown Gardens Official Registration website, please do contact us here. We will get back to you the soonest.

A lot of the impact is assessed on the grounds that manufacturing is still done in the old ways – that is, manufacturers produce goods of the same materials and components in bulk and distribute them through well-established supply chain networks around the world. This is good old ways as this would mean that there is economy of scale.

Footwear makes up a substantial portion of China’s exports. We have to forsee a future in manufacturing where shoes are produced when demanded. To reduce the reliance on goods and services offered in bulk from factories in China, manufacturers have to also embrace a radical shift in paradigm by harnessing cloud computing, the Internet of Things (IoT), virtualisation and advanced computing technologies. Goods are to be produced on demand and orders received through cloud computing rather than through bulk ordering.

Therefore, it is noted that automation is the key and therefore we companies need to digitize their manufacture process and how to embrace order processing and the migration of orders from consumers to the manufacturers in a seamless way such that orders are properly transferred.

With cloud computing available, goods producers operate within a smart factory environment, plugged into a network of manufacturing resources and services supporting the cycle of producing. A network that is shared between companies means manufacturers can look at the parts they require for a particular product needed and thus enabling them to diversify their sources without relying on a single company. The goodness of cloud manufacturing are excellent if one considers that should a global event like a pandemic comes into place, supply lines are left intact as there are different sources available.

 

The Grange 4 Bedroom at Orchard Boulevard Available for Sale

Freehold developments tend to be highly sought after especially in the core city centre. When it comes to larger units that are near to the core city centre, this becomes even more attractive as well as it is rarely available and the units usually comes from well to do families whose prices are very firm. However, there is a unit that will be available for sale soon and the property has been repossessed by the High Court, who has appointed Colliers to auction it and put it out for sale. Most likely, this could be due to the fact that the owners have issues settling the loan and therefore are looking for a property agency to sell it and acheive the highest possible price. Please also see Midtown Gardens Developer which is Guocoland. Midtown Gardens is located next to Bugis MRT Station.

Located between Grange Road and Orchard Boulevard, the freehold condominium is within the orchard luxury residential enclave and is next to upcoming Orchard Boulevard MRT Station on the Thomson-East Coast Line. Nearby developments include 3 Orchard-By-The-Park, Cuscaden Reserve and One Tree Hill Collection which are fully sold as well. The residential nits around the Orchard Boulevard vicinity are highly sought after because of their proximity to the Orchard Road shopping belt and easy access via public transport. It is just one MRT Stop away to Orchard Road as well as Ion Orchard making it a very convenient place to stay at.

The Grange is a freehold development which completed in 2008 and is a 95 unit development with large 3 and 4 bedders that are ideal for family stay. The unit for sale was purchased for $3.76 million ($1,642 psf) in November 2005. Currently, the market valuation is around $6 million, based on transactions lodged last year and therefore the owner has made a tidy profit on the unit.

With Covid-19 being in place, the auction market should see more of such units becoming available as business owners face tougher economic environments to function and this mean that owners might be looking to sell their units finance more cash flow.

Property Developers Left Out from Budget 2020 Despite Outbreak

The New Budget 2020 that was just released was aimed at helping Singaporeans to acquire more skills to stay employed in the midst of this crisis. This is because many companies are trying to stay afloat in this crisis due to lesser business and lesser human traffic which means less sales. As medical frontline is the key to defend against this crisis, the budget 2020 is dedicated to help in servicing the requirements needed to help companies stay afloat in these difficult times. This was the priority of the country and hence resources were dedicated to it. Please see Midtown Garden project details by Guocoland located at Bugis MRT.

With regards to properties cooling measures that were introduced previously in an effort to cool the property market, the government felt that there is no need to roll back any of the measures as the property is resilient to any shocks from external factors. Government’s main concern is housing for the majority of Singaporeans which refers toHDB flats and that has not been affected. HDB flats are not affected by property cooling measures as a person cannot own multiple HDB units. What will be most affected maybe residential property that is considered a discretionary purchase such as core city centre developments in Orchard with alot of vested interest from overseas clients such as China and Hongkong. These residents are affected as they are unable to return back to Singapore nor bring in cash flow to service their mortgage and therefore might put in the market to sell the property.

It is noted that the government will continue to monitor the situation and see if there is any measures or resources that are needed to pump into the property market to keep it going. So far, reviews note that Singapore properties remain robust and therefore there is no need for any intervention but more should be done to monitor closely. Desmond Sim, CBRE head of research for Singapore was not surprised that there were no goodies or incentives for developers as the budgetary measures are usually targeted at the masses who are looking for a play to stay and not playing with the property market.

Bukit Sembawang Sells 65% of Final Phase of Luxus Hills

Despite the latest virus outbreak, Bukit Sembawang Estates has sold 25 units from the final sales phase of its Luxus Hills which is located at Seletar Hills indicating that buyers are still keeping a lookout for landed properties. 999 Years leasehold developments tend to be more popular and it is indicated that prices for Luxu Hills start from $3.29 million for inter-terraces, which translates to an average selling price of $2,060 psf. Please see the latest launch at Bugis. The location can be found at Midtown Gardens location here at Bugis MRT Station Guocoland.

There are different sizes available and five-bedroom properties for larger familites have land sizes that are ranging from 1,615 sq ft to 6,092 sq ft, and have built-up areas of 3,703 sq ft to 6,028 sq ft.

Through private previews send to prospective buyers, Bukit Sembawang had offered a release of 39 houses and strong interest were received from buyers especially with regards to the signature collection. The developer is encouraged by the good response from the ground and has indicated that more units will be released for sale given the good response.

Prime CBD Redevelopment Site Launched for Sale

Chip Eng Seng Q4 net profit down by half

Singapore Listed property developer Chip Eng Seng recent earnings have nosedived as earnings from its core business drop. This is the results released today after findings note that there is a significant drop in earnings for the property developer due to sluggish residential sales as well as higher borrowing cost. Net profit for Chip Eng […]

Latest Return on CPF Interest Rates

Based on the latest recent release by CPF Board and HDB Board, it is note that CPF Members can continue to earn up to 2.5% in interest rates from their Ordinary Accounts and up to 5% in their Specila and Medisave Accounts in the 2nd quarter of 2020. Interest rates will be paid an extra 1% for the 1st $60,000 of a citizen’s CPF account in an effort by the government to improve the CPF Savings of its members. Many note that the returns of CPF are higher than property returns over the long term. Please see the latest investment decision and project details for Midtown Gardens. Midtown Gardens project details by Guocoland can be found here.

There will be also higher interest earned for members above 55 years of to enhance their CPF savings as this is to acertain their contribution to nation building. This is paid over and above the current extra 1% interest that is earned on the first $60,000 of their combined balances. The extra interest will go to the SA account to prepare members for their retirement.For a member who is above 55 years old and participates in the CPF LIFE scheme, the extra interest accumulated will still be earned on balances, which includes the savings used for CPF LIFE till date.

It is interesting in the sense that the OA interest rate is kept at 2.5% and this did not increase comparatively to what analyst has anticipated as the OA rates normally match with SA rates. HDB loans are still pegged to the standard 2.6% interest rate though.

The Special and Medisave interest rate will be maintained at 4% per annum from 1 April 2020 to 30 June 2020, as the computed rate of 2.91% is lower than the current interest rate floor of 4% per annum. It is note that SA accounts tend to have the highest interest rates.

Profits Gained by Property Sellers Recently

The owner of a unit at Camelot By-The-Water located at Tanjong Rhu Road made a profit of $1 million after its sale recently. The 4,801 sq ft unit located on the 14th floor was bought for $5.6 million ($1,166 psf) in February 2008 and sold for $6.6 million ($1,375 psf) just recently.The seller made a profit of $1.0m over a span of 12 years making it one of the most profitable deals for a leasehold development. There are many property gains that can be made if one buys a lower than expected launch price development. Please see Midtown Gardens prices located at Tan Quee Lan Street.
Located in District 15 near to East Coast, Camelot By-The-Water was completed in 2000 and consist of 99 units on a 99-year leasehold land next to many amenities. It is just a five-minute walk to the upcoming Tanjong Rhu MRT Station on the Thomson East-Coast Line which is due to complete in 2023.
In another top gain for property sale this week,  a 102% profit of $984,705 was done at Caribbean at Keppel Bay, along Keppel Bay Drive near to sentosa. The 1,421 sq ft unit on the first floor was purchased for $965,295 ($679 psf) in September 2005 and sold for $1.95 million ($1,372 psf) on Jan 31. The seller made an annualised profit of 5% over 14 years. While most owners along sentosa might have lost money over their investment, the owner here made a cool $1.0M over the course of 14 years.
A unit sold at One Leicester, along Leicester Road in District 13, made the third largest gain over the week. The sale resulted in gaining a 109% profit of $914,900 for the seller. The 1,249 sq ft unit on the 18th floor was bought in April 2006 for $840,100 ($673 ) and sold for $1.76 million on Jan 31. The seller therefore made an annualised profit of 5% over almost 14 years.