Normanton Park Condo Review

Normanton Park is located in the RCR ( Rest of Central Region ). 
It is one of the better locations for sale.  It will be the biggest and grandest sale for District 05 in 2021. It is a 99-years leasehold condominium in District 5, off Ayer Rajah Expressway, Singapore.

This was a privatised HUDC development which was enbloc by Kingsford Huray Development, in October 2017 for a price of S$830.1 million. 

Former Normanton Park

It was S$30 million above the reserve prices for this site of 660,999 sqft.

This project will be developed into a total of 1862 units consisting of 22 terrace houses and 9 residential blocks of 24 storey, 1840 of residentials units comprising of 1-bedroom, 2-bedrooms, 3-bedrooms, 4-bedrooms and 5-bedrooms type.

About 60 % to 70% of the total units will be 1-bedroom and 2-bedroom types.

Normanton Park is scheduled for early preview in late December, with the official launch likely to be in early January 2021.

 

Normanton Park consists of 9 blocks of 24-storey, total 1862 units including 22 strata landed villas* and 8 shops.

These will be spread across the huge land size of 660,999 sqft. ( equivalent to 9 football fields ). Over 6 hectares of land size with more than 100 lifestyle facilities.

This development offers panoramic city or park views ( and sea view for some higher floor units)

  • * For strata villas, these can only be bought by Singapore citizens, or Singapore permanent residents who obtained the necessary approval from LDAU (Land Dealings Approval Unit of the Singapore Land Authority).

For the 1862 units, these are spread over 1 Bedroom to 5 Bedroom units  as well as strata terrace unit.

For the 8 retail shops, there is a row of seven shop units and one restaurant. This row of shops are located at the front of site, facing Science Park Drive, next to the main entrance to the development.

This is to facilitate public access to these shops and restaurant.

Project Details

Project Name

Normanton Park

Developer

Kingsford Huray Development Pte Ltd

Address

Normanton Park

District

D05 – Buona Vista / West Coast

Site Area

61,408 sqm / 660,999 sqft

Tenure

99 Years

No. Of Units

1862

Expected Date Of TOP

02.01.2023

Unit Distribution Chart

Normanton Unit Distribution Chart

The previous Normanton Park condo had been a landmark in this area. There are no other residential developments in the immediate vicinity, the nearest is either Heritage View or Rochester Residences up North or The Interlace in the East.

Kingsford’s new Normanton Park condo has the advantage of being the only condo next door to Science Park, it offers a good rental space for potential tenants working in science park, One North Business area or NUH / NUS.

Why is Normanton Park a good location.

Normanton Park is the only residential development in this Greater One North Area (The One-North Business District, Maple Tree Business City, Science Park ).

Science Park I is just beside Normanton Park, if you are working in Science Park, you can literally walk over to your workplace.

Normanton Park is very near to many business areas such as Science Park, One North , MediaPolis, Biopolis, Fusionopolis, Maple Business City as well as Alexandra Technopark.

Science Park beside Normanton
Alexandra Technopark

It is also close to National University Singapore as well as National University Hospital and Alexandra Hospital.

Being close to these industry and service sectors will provide a lucrative tenant pool.  Making this property ideal for investment, properties for rent.  Also ideal for home stay because of its huge size, landscaping and facilities.

Normanton is very easily accessible via AYE and CTE, making it highly connected to CBD and many places.

And with the upcoming Greater Southern Waterfront taking shape in late 2030, we expect to see Normanton growing to serve this new market.

 

Schools near Normanton Park

This condo is surrounded by various primary, secondary and tertiary institution.

For those families who want good education for their children, you can get it around here. There are also international schools catering to foreign students

This makes Normanton Park an excellent investment for your own stay or for rental.

Schools Include : –

  • Dover Court Preparatory School
  • The Fairfield Methodist Primary School
  • Queensway Secondary School
  • Anglo-Chinese Junior College (ACJC)
  • Anglo Chinese School (Independent)
  • ISS International School and Tanglin Trust School.
  • Global Indian International School (Queenstown Campus)
  • Management Development Institute of Singapore (MDIS)
  • National University of Singapore (NUS)
  • Singapore Institute of Technology
  • United World College of South East Asia
  • Singapore Polytechnic
  • YALE NUS College
  • INSEAD

 

Normanton Location Map

Another attractive feature of Kingsford’s new Normanton Park condo is its views.

Normanton Park is position beside much greenery and nature. It sits on a high point of Kent Ridge Hill, just beside Kent Ridge Park , this give access to the Southern Ridges Green belt, or HortPark, Mt Faber Park.

Normanton Breathtaking views

Amenities near Normanton Park

Normanton Park, provides its Residents with a peaceful, quiet, relaxing and luxurious living experiences. And all these is made possible via its extensive facilities as well as its proximity to many amenities.

For shopping pleasure, we are a short drive to Queensway Shopping Centre, Anchor Point Shopping Centre, West coast plaza and the Harbourfront Centre.

Distance to Amenities

Pros & Cons of Normanton Park Condo

As previously mention, Normanton Park is next to Nature reserves, gives residents lots of good view and comfort being near nature. 

Normanton Park is close to huge tenant pool so it helps to get rental.  Normanton Park has huge facilities which makes living here very comfortable. 

Normanton Park has 8 shops and it is very near to Star Vista, Holland village, Queensway, major shopping and recreational areas.

Because it is located so near to nature, Normanton Park is not located within comfortable walking distance to MRT station.

The nearest MRT station is Kent Ridge MRT, which needs about 15 min walk (1.3km) or 6minutes to reach by bus. 

This could be overcome with the intro of shuttle bus service.

As the front of the condo is facing AYE,  those units facing the AYE will get some traffic noise from AYE.

The developer has overcome this with double glazed windows for these units, as well as noise reduction panels in balcony.

Site Plan

Normanton Park Site Plan

The elevated ground around Kent Ridge gives Normanton Park a higher vantage point. This Normanton Park development is surrounded by lush greenery with Kent Ridge Park at the back.

Residents get to enjoy the park’s greenery and its tranquillity as well as the scenic view of the lower area surrounding Pasir Panjang’s private landed housing.

For those living on higher floors, you will get splendid panoramic views , depending on which direction your unit faces.

Example

Kent Ridge Facing – will see Pasir Panjang Terminal Port and the Greater Southern waterfront, Sentosa and maybe the CBD skyline

Portsdown Road Facing – will see One-north/Buona Vista, Holland Village, City view, and on clear days maybe Bukit Timah view.

Views from north of Normanton Park

Normanton Facilities

Normanton Park has more than 100 over facilities.

The block nearest to the AYE is about 105M away.

The whole development offers different views for you, depending on which facing.

The 2nd floor unit is elevated by 18 metres or about 6 storeys high, at this height is is way above all the building within Science Park 1.  The higher floors will be able to see the southern coastal line of Singapore.

All the terraces house have a large pool in front of its unit and there is a small garden porch (not part of your strata) in the door front, best of it is that this garden will be managed by MCST.

Normanton Park is built with the concept of a Garden Home, about 80% of the total area is dedicated to common areas, landscaping and facilities of the development.

Given the size of the site and the huge expanse of grounds, it is not surprising that there are lots of different facilities. Including 150m pool, 50m lap pool, kids pool, family pool, kids adventure playground, the usual clubhouse and gym, lawns and pavilions, cabanas and so on, set among many landscaped gardens.

There is also an sports area which include outdoor table tennis area, a basketball half court, 2 tennis courts, and a fitness pavilion.

Normanton Poolview
Normanton Pool View 2
Normanton Pool View 3

Normanton Park Floor Plan

Normanton Park offers 1 to 5 bedrooms and terrace houses for your selection. 

You can be assured of an ideal unit type for investment or for your own stay. All units are fitted with latest smart home technologies and digital locksets and CCTV.

Normanton Park 1 Bedroom

The 1 Bedroom has a very spacious layout. The bathroom (Jack & Jill concept) is accessible from the bedroom and the study.

Living room is spacious with a width of estimate 2.1M.

This two stack 43 and 52 is facing inwards into large activities pool

Ideal choice for you to choose.

Normanton Park 2 Bedroom

There are 3 types of 2-bedroom units

  • 2-bedroom compact (639sqft to 797sqft, 276 units)
  • 2-bedroom Premium (657 sqft to 893 sqft, 230 units)
  • 2-bedroom + Study (829 sqft to 980 sqft, 92 units)

The show flat unit is the larger 2 -bedroom Premium , size 829 sqft

Stacks 39, 40, 48, 49 at block 53 and block 55

Normanton Park 3 Bedroom

There are 2 types of 3-bedroom in Normanton Park

  • 3-bedroom Compact (904sqft to 1109sqft, 345 units)
  • 3-bedroom premium (1066 sqft to 1249 sqft, 184 units)

The show flat unit is the bigger type, 3-bedroom Premium, size 1098sqft.

This is found in stack 20 and 29 , at block 49 & Block 51.

Normanton Park 5 Bedroom

The 5-bedroom in Normanton Park layout is 1615 sqft to 1798 sqft, total 46 units.

The showflat unit is stack 38 and 47 located at block 53 and 55

Normanton Park Price Comparison

Nearest price comparison for Normanton park condo is the One North area condos.

Using Rochester Residences and One-North Residences we compare Normanton Park Condo.

For Normanton Park Condo, using estimated $1650 psf

  • 2 Bedroom Compact 667 sf would cost $1,100,550
  • 2 Bedroom Premium 775 sf would cost $1,278,750
  • 2 Bedroom + Study 850 sf would cost   $1,402,500

If we use this psf of $1650 , Normanton Park Condo would be very attractive in pricing vs One North or Rochester Residence.

Sales CMA of Normanton park

Normanton Park Rental Estimate

There has been no major new launch around Normanton Park, the nearest was One-North Residences in 2009 and Rochester Residences in 2011. Due to the limited new condo supply and big transformation in the One North area, rental demand has been kept strong.

 According to URA records here are the rental transactions

Rental CMA Normanton Park

We believe that Normanton Park condo will fetch roughly the same price as the One North area condos, although Normanton may not be as convenient as One-north condos. 

Eg. For 1BedRoom unit selling price is around $820,000, and if we assume rental to be at $2500,  then the gross rental yield is $2500×12 / $820,000 =  3.65 

This is a very good rental yield, much higher than the average rental yield in this area.

I have also attached the developer’s indicative price below

Normanton Indicative Prices

CONCLUSION

Normanton Park Condo will be the first and biggest launch in 2021, for district 5, with a total of 1862 units.

  • 9 Blocks of 24 storey residential, 1840 units of 1 Bed to 5 Bed
  • 22 terraces houses,
  • 1 restaurant and 7 shops on a land size of 660,999 sqft.

Normanton Park is located in an area undergoing rapid transformation and blending in with the Greater Southern Waterfront transformation, it gives tremendous potential value appreciation for future.

Being the only residential condo in this area, give assurance of tenants pool to all potential investors.

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It is very important to invest with confidence and have a peace of mind, when you buy your private residential condo. When you buy a home it has to be well-designed and in a superior location, and it must also offers value and quality workmanship, all these can be found in Garden Residence

Garden Residences Artist Impression

Garden Residence Project Details

Garden Residences is jointly developed by WING TAI and Keppel Land, two renowed developers in Singapore.

Garden Residences is located in Serangoon North Ave 1, District 19.  It overlooks the private estate of Serangoon Gardens – one of Singapore’s most well-known and loved suburban neighborhoods with lots of food and amenities.

This upmarket low rise private housing neighbourhood of Serangoon Gardens is a home to a wide array of good restaurants, cafes, pubs, and food centres and wet market.

If you prefer hawker food, there are 2 hawker centres, namely Serangoon Garden Market and Chomp Chomp food centre as well as many coffee shops around the roundabout.

Serangoon Gardens view

The Garden Residences, is a 99-year leasehold residential project.

It is located within the established neighborhood of Serangoon Gardens. The total site is 17,189.1 sq m comprising of five 15-storey towers yielding 613 units,  from 1- to 5-bedroom residences.

All 5 blocks are arranged in a North and South orientation to give maximum natural air flow ventilation, and to give unblocked views into the condo’s landscaped gardens and its surrounding estate.

The expected TOP date will be in Aug 2021 ,  construction is almost ready.

Garden Residences Project details

As seen from the siteplan below, almost all the units are arranged in a North South orientation to allow maximum wind flow into unit, as well as to position the condo to face the surrounding landed enclaves.

Garden Residences site plan

Accessibility & Convenience

It is only a short drive away to CTE, PIE & KPE, so travelling from Garden Residence to anywhere on the island is a breeze.

For residents who don’t drive , you can enjoy a free one-year shuttle service to and from Serangoon MRT station, a NE & Circle Line interchange station. From NEX ,  one of the biggest and busiest malls in Serangoon area, you can also board a bus from the Bus Interchange.

And in 2029 is the Cross-Island Line (CRL), will open its first phase and there will be a Serangoon North MRT station which is just 500 metres walk away from the condo.

Education Centres

Some of the best education centres are very near to The Garden Residences. 

From local to international schools, many educational institutions are located nearby.

Schools that are within the 1-2 km distance include

  • Serangoon Garden Secondary School
  • Bowen Secondary School
  • Rosyth School
  • Xinmin Primary & Secondary School
  • Monfort Junior & Secondary School
  • Serangoon Junior College
  • Zhonghua Primary School
  • Peicai Secondary School

International Schools that are nearby include

1)   Dimensions International College (Main campus school of preparatory)

2)  Lycee Francais De Singapour

Nearby Amenities

Living in Garden Residences is just like living in Serangoon Gardens.  There will be a sidegate at the back that leads out to Lichfield Rd, and you can walk to Serangoon Gardens in 5 minutes.

You can enjoy seafood at Jumbo , Serangoon Gardens Country Club.

Or You can enjoy the hawker centre Chomp Chomp or the fancy restaurants around the roundabout or head down to MyVillage in Serangoon Gardens for pubs , food or grocery.

The free shuttle bus will take you to Serangoon MRT which is at NEX shopping mall.  This is one of the busiest malls in Serangoon and you can find lots of shopping, F&B and recreational activities in this mall.

Alternatively, you may just take 2 stations ride Circle Line to Bishan Junction 8 to do your shopping or catch a movie.

Garden Residences Facilities

Garden Residences tag line is Your home in the Gardens.

Garden Residences was crafted from a vision of a home set within blooming gardens, designed with nature and balance.

 

Your home at The Garden Residences offers a holistic environment for your family’s well-being. 


It comes with a boardwalk and community garden with over a hundred different species of flora, with plenty of air-purifying trees and plants to also promote a calm ambience for the ultimate relaxation.

Most of the tower blocks are designed to maximise unblocked views of Serangoon Gardens estate from most of the units.

You can simply stroll along the Boardwalk to enjoy the trees and plants or you can relax at the many pavilions alongside the Boardwalk.  Enjoy the landscaping, marvel at sculpted landscaping and beautiful water features that were handpicked to create garden homes. 

There is a holistic mix of 55 luxurious facilities designed to invigorate the body, relax the mind, and to help you to completely unwind.

You can stir up your senses at the rejuvenating Hydrotherapy Pavilion, or whisk away to a world of relaxation at our Floating Pods and Swim-Up Spa. 

Enjoy Japanese style relaxation at the Garden Onsen, or laze up in the Tree Hammock.

Indulge in the Reflexology Garden, or centre yourself in the meditation pavilion while enjoying the calming trickling of water features. 

Treat your friends to an unforgettable al-fresco meal at the various outdoor dining facilities, or you can engage a professional chef to whip up a meal at our Gourmet Kitchen. 

If you have pets, you can spend a day at the Community Garden or take your furry pals out for a day of bonding at the Petscape.

You can work out at our 75m Swimming Pool, or in the Aqua Gym, or keep fit at the 24- Hour Gym that overlooks the pool, and other outdoor 3G Fitness areas.

Good Rental Yield

There are currently not many nearby residential condo rentals to do comparisons

Gardens Rental comparison

The best comparison is Kensington Park Condo, but it only have big units .

If we compare a 3Bedroom unit there, rental is $3700 per month.

The cost of this 3Bedroom if bought from developer in 1997 is only $920,000 but a resale unit bought in 2012 is $1,200,000

Lets use $1,200,000 as the cost, then rental yield is at 3.7%

For 2 Bedroom units we have to use other smaller projects nearby such as One Rosyth, 3@philips or Rosyth Residence.  The average rental is at $2,400 per month.

If we take 3@Philips 2018 resale transaction of $870,000 for a 2bedroom unit, then the calculated rental yield would be 3.3%

Or if you take Rosyth Residence resale in 2011, the 2bedroom 1033 sqft bigger unit cost $888,000 and the calculated rental yield would be 3.2%

Rental in this area is very healthy and units moved very fast. Still have a relatively strong demand here mainly from tenants prospects who worked in AMK industrial area or Paya Lebar Industrial area.

For Resale growth prospects,  Kensington Park 3 Bed units, no resale of smaller units in 2020, only 1 done in 2019 for 1485sqft unit was $1,650,000 ,  versus initial developer sales at only $808,000 in 1996, that was a 200% increase.  Or against a recent purchase in 2012 for $1,470,000,  they managed to achieve 12% growth over 7 years.

With a few more possible land sales for new condo development, we see potential growth prospect for Garden Residences. 

 

 

Conclusion

Comparing Garden Residence with another new launch nearby AFFINITY which was the previous Serangoon Ville,  we find the appeal for Garden Residence is better.

First, Gardens Residence will TOP in 2021 vs Affinity in 2024,  earlier means better rental income and better returns

Secondly, the current sale price of Garden Residence is better than Affinity now for smaller units.

Thirdly, Gardens Residence is developed by Wing Tai and Keppel Land, the quality of finish is definitely superior and the layout is also more useable.

If you are in the midst of selection, do contact me for a preview of Garden Residence unit, and let me show you why this is definitely worth buying.

You can whatsapp me at 9109 2177 or fill in a calendly appointment. Thank you

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Jalan Anak Bukit , this site was one of the confirmed list of First half 2020 Government land sales sites.

Jalan Anak Bukit New Condo is an mixed development leasehold property, it has a plot ratio of 3.0 with commercail retailon the lower floors and residentail units on the higher floors. It is estimated to house more than 

Government land sales

This new launch in Jalan Anak Bukit will add to the rejuvenation of Beauty World area, District 21. It is expected to be highly sought after because it is a mixed integrated development with retail on lower floors. A concept similar to the Bukit Timah Plaza concept.

Rejuvenation of Beauty World

Bukit Timah area has been attracting a lot of new launch buyers, especially with the
redevelopment of Beauty World area.

Some of the past developments in this area are

  • Sherwood Towers
  • Suites De Laurel
  • The Linq
  • The Forett Residences

 

 

With the construction of the Bukit Timah Integrated Transport Hub in this location, bus interchange, and the underground link to Beauty World MRT, this project Jalan Anak Bukit New Condo will see more investors aiming to capture the value of this project.

Bukit Timah Nature Reserve

Jalan Anak Bukit New Condo is also located just a hundred metres away from the prestigious Bukit Timah Reserve where residents can do their nature walks and hikes. The reserve offers a great greenery view to the area.

 To add to this nature outdoor recreational areas, you can also go to the new Bukit Timah-Rochor Green Corridor, or venture to nearby Bukit Batok Nature park, The Cage sports park or Turf City. 

With the older shopping developments such as Bukit Timah Shopping Centre and Beauty World Plaza nearby, residents here can enjoy the convenience of shopping with their own integrated shopping mall as well the adjacent Bt Timah Shopping area..

bt timah shopping

There are also several well know schools in the surrounding area that can provide excellent primary school education for the younger kids. To name a few we have Pei Hwa Presbyterian, MGS, Hollandse School etc.

Jalan Anak Bukit new condo artist impression

This is the artist impression of this lushly landscaped, pedestrian friendly and vibrant mixed use development of Jalan Anak Bukit New condo

This new condo in Jalan Anak Bukit is going to be a distinctive development.  It is located on higher elevated ground and is next to the nature reserve. This new development will offer unparalleled view of greenery and will become a prominent landmark that shapes beauty world area.

This new integrated development comes with a bus interchange and is directly conected to the MRT station and provides a good range of commercial, retail and public spaces in this landscaped and pedestrian friendly area.

Residents in this new condo will surely enjoy easy access of public transport to many destinations islandwide, which includes 4 station stops to Botanic Gardens or 7 station stops to Orchard area, and 10 station stops to Promenade Suntec City.

Aerial view
Distinctive Development of Beauty World

To know more about the launch date and sizes of the units available,  do leave me your contact details and I will arrange a special preview of the showflat for you.  THank you.

    ON-LINE ENQUIRY

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    Verdale Condo located along Jalan Jurong Kechil, District 21, it is in a fantastic area that is surrounded by nature and is within walking distance to Beauty World MRT Station, 816 metres.

    Verdale is close to Bukit Timah Nature Reserve and Bt Batok Nature Park

    The site is at the junction of De Souza Avenue and Jalan Jurong Kechil. It is just beside the older condo THE HILFORD, a 60years leasehold property.

    location of verdale

    This land parcel was part of Government Land Sales in 2018, the plot size is 1.49 hectares or 153,224 sqft of land. There were 3 bids for this land parcel and CSC Land and China Overseas Holdings emerged as the winner with their offer at $215 million. This translates into a land cost  of $1,002 per square foot per plot ratio.

    Verdale is about 3 bus stops away from Beauty World MRT, and there are many buses available to shuttle, 61, 66, 157, 174, 970, 985.  The bus stop is only 160 metres away from Verdale condo.

    Verdale is a relatively low density development with only 258 units over this 153,224 sqft of land.

    Nearby to Verdale are shopping and F &B outlets, and Bt Timah Market. And Bt Timah Community Club is just 500 metres away.

    Primary schools such as Pei Hwa Presbyterian and Bt Timah Primary are nearby.

    Shopping near Verdale

    Verdale is a quiet place and is designed with lots of space to allow you to rejuvenate, renew and revitalise after a long day work.  You can bask in the many facilities and relax in an elevated lifestyle, bask in the shimmering 50-metre Lap Pool with lush surroundings that frame the Sky Gardens, and the many themes in this condo such as the Sensory Park, The Retreat, the Veranda Club, the Forest Club, The Wellness Zone, Forest Bathing or Shinrin-yoku and many more.

    View Project Details

    Verdale Factsheet

    Verdale offers a wide range of units to suit different needs,  we have from 1 bedroom to 5 bedroom penthouses. The unit mix is as follows ;

    Verdale unit mix

    Key Selling Points of Verdale

    1) It is within the tranquil enclave of the Chun Tin Road and Lorong Pisang landed estate

    2) It is very near to nature parks, Bukit Batok Hillside Park, and Bukit Batok Nature Park

    3) Easy access to nearby bus stop , for connection to Beauty World MRT

    4) Just beside The Hilford where there is clinic, laundry and dining options

    5) 4 stations to Botanic Garden Interchange, 10 stations to SUNTEC City

    6) Great Connectivity via roads to PIE, KJE, BKE

    7) Close proximity to numerous reputable child care centre and primary school such as Pei Hwa Presbyterian School

    Price Comparison

    If you compare this other new launches in the nearby vicinity including Bt Batok. You will find that VERDALE pricing is relatively more attractive and reasonable.

    Guide Price for Launch Only.

    • 1 Br- from $788,000 for 463sf unit,  about $1708psf
    • 2BR – from $943,000 for 614sf unit, about $1625psf
    • 2BR Deluxe- from $1.1xx mil for 743sf unit , about $1550psf
    • 3BR – from $1.326 mil for 947sf unit, about $1640psf
    • 4BR  – from $2.110 mil for 1410sf unit about $1740psf
    verdale New Launch Price

    VERDALE Floor Plans

    SitePlan
    2 Bed Deluxe

    If you are unsure on what to select, please do contact me for a detail presentation on this new project.  I can guide you through the benefits of different stacks and guide you to select your choice unit.

    Please do call me or whatsapp on 9109 2177 .  I look forward to helping you. Thank you.

    Property Wealth Plan

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee..

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    WHY IS IT STILL A GOOD BUY DESPITE PAYING FOR HIGH PSF

    Property buying these days have all turned price sensitive as Singapore’s property price index and the new launch condo prices have been increasing almost daily. 

    We like to reminisced the good old days where property prices were more palatable, I still can remember in the 90s or early 2000s, new launch condo prices were below $1,000 psf.  The Sail at Marina Bay when it was launched in 2004 was only selling at $888 psf, River Place in Havelock, was launched in 2000 at only $921 psf and Heritage View in Dover , launched in 1998 was sold at only $520psf.

    Today, eversince the enbloc fever in 2018, that has brought up new launch condo prices to above $1600 psf even in the OCR area, eg. Sengkang Grand at $1686psf.

    RISING PSF PRICE

    So, is paying a high per square foot price for new launches the right approach to investing or is buying a property at high psf a bad idea ?

    One of the first factor that home buyers always do is to compare the price per square foot ($/PSF). Their assumption is that a high price per square foot is “bad”, and a low price per square foot is “good”.

    All along , there has been much debate over whether to buy a new or resale properties is better. Of course, new condo will always command a higher psf, and thus many will think about whether paying a higher psf for new launch is the right way to investing?

    So, in this article, I will highlight the reasons for the diminished effects of this Price Per Square foot in an investment decision.

    In recent times, many new launch projects are now selling at a high psf.

    Eg.

     

    ·       In CCR, Kopar at Newton is selling at averagely $2200psf , The M was sold at averagely $2450psf, Royal Green at Bt Timah is sold averagely at $2733 psf

    KOPAR HIGH PSF

    In RCR projects like Woodleigh, it is sold at $1750 psf averagely, or Stirling Residences at around $1929 psf,  Avenue South Residences averagely at $1975 psf.  

    ·        In OCR projects like Affinity at Serangoon is going for averagely $1533 psf, Dairy Farm Residences are averagely $1577 psf, and The Florence Residences is going at average $1510 psf.

    So why are buyers still going for these properties despite its high psf ?

    The answer is simple, they are more concerned over the overall amount to pay, or the quantum.

    In a research by DBS back in 2018, it was forecasted that new private homes prices will cost between $2,300 to $2,900 psf on average by year 2030.  This may sound absurd, but look at now, prices are already crossing the $2000 psf mark.

    But why are people still buying at such high psf.  As I mentioned earlIer, it is not just psf that they are looking at, there are many other reasons such as

    1. Quantum amount to pay for the unit
    2. Will the property fetch good returns and good rental yields
    3. The layouts of these new launch units (higher psf) versus older resale (lower psf)

    Reason 1 - Quantum amount to pay for the unit

    It has always been an industry practice that developers will price smaller property with a higher price per square foot, whereas for larger property, it will be at a lower price per square foot.

    So nowadays, the sizes of properties are getting smaller and more compact.

    1 bedroom units can go for 441 sqft, or 2 bedroom units can be 570 sqft. Although their price per sq foot may be high, but the overall quantum multiplied by area, will be more acceptable and affordable to the buyers.

    PENROSE 1 BEDROOM UNIT

    For example, The M Condo has 1 Bedroom units selling below $1 million.

    This is really low price for a Core central region property located along Middle Road, and within walking distance of Bugis MRT station.

    Or Parc Esta, at Sims Ave. They initially have 1 Bedroom 420 sqft sold at $1760psf or $739,000 or Jadescape, at ShunFu, 1 Bedroom 527sqft, sold at $1670psf or $881,000.

    Usually these high psf 1 Bedroom units start from a very affordable price range of $700,000 – $850,000; this is a quantum which one might not be able to get a new launch condo.

    Reason 2 - Will the property fetch good returns and good rental yields

    For those who are buying for rental, or intend to stay a short period then lease out, the rental yield factor is important. The psf price of the property has no bearing on rental yield

    WHAT IS A GOOD RENTAL YIELD

    Eg. If you buy a small unit in town 441sf at $2,300 psf, the cost is $1,014,300 , rental yield is 4% based on rental income of $3200

    But if you will to buy a bigger unit in suburbs 614sf at $1,850 psf, the cost is $1,135,900 rental yield at higher rental $3,300 is 3% only.

     Capital gain is also important for investors who buy for rental.  When you resell your new condo later at $1,200,000 , your capital gain is almost 18%  ($1,200,000/$1,014,300).  Hence your initial price psf is irrelevant.

     Buyers of this new launch condo know that they are buying at high psf, but they don’t mind because as long as it is affordable and a good investment prospect, and in a good location, they can rent out with good rental yield.

    Reason 3 - The layouts of these new launch units versus older resale​

    With the introduction of new URA regulations, most developers have designed more efficient layout of new condos.

    They have done away with bay windows, oversize aircon ledges, big balconies, bomb shelters, etc, and make the layout with more usable space.

    So new launch condo while higher in psf price, it does give a more efficient layout with less wastage, and more useable space and at a lower quantum.

    So new launch condo while higher in psf price, it does give a more efficient layout with less wastage, and more useable space and at a lower quantum.

    If you compare 2 projects at different locations, or compare new with resale, then price psf is not relevant or accurate.

    It is only fair and more accurate to compare psf of the same development  or at least adjacent developments, because locations does make a difference to the psf.

     

    Eg. If the psf of 1 unit is $1450 and another unit is at $1550 psf, it does not mean cheaper is better because there are many other factors such as

    ·        Facing of the unit – direction face N.S.E.W

    ·        Level of the unit  – high or low floors

    ·        View of the unit –  pool view, blocked view, face a road, face MRT track, etc

    ·        Layout shape of unit – L shaped , odd shaped, Columns in unit,

     

    Does lower PSF make it easier to make a profit?

    Does it mean that buying a resale property at a lower price per square foot automatically makes it easier to make a profit?

    The short answer is no.

    A low psf does not automatically mean a profit for resale buyers.

    To illustrate this, let’s take a look at some new launches compared to their neighbouring resale properties over the last few years.

    Trilinq , a 3bed 915sf unit #29-19 was transacted at $1403psf in 2016

    Recent sales of similar unit #27-19 was done at $1672 psf

     

    Regent Park, a resale unit #07-07 was transacted at $951 psf in 2018

    Recent sales of similar unit #05-07 was done at $1000psf

     

    Trilinq was launched in 2016 at a clearly higher price than Regent Park resale at that time, but it still make more profit than the resale.

    Both are 99 years leasehold.

     

    Sky Habitat was launch in 2012 at a high price

    Launch 2012, 2 bed , 710sf unit #03-02 was done at $1518psf or $1.078 mil

    Recently, a similar stack unit 710sf, #10-02 is done at $1576psf

    Compared to a resale RAFFLESIA Condo in Bishan

    In 2012, a resale unit #14-07 sold at $1093 psf

    Today a similar unit #18-12 was done at $1147 psf

    As shown, buying at lower psf does not mean you will make more money.

    In this final example, I will elaborate on the reasons why we see such a trend.

    The Total Debt Servicing Ratio (TDSR) was implemented in 2013, its greatly affected resale prices more than new properties.

    Because older properties are larger in size, it is less affordable and with TDSR, it makes it more difficult to get loan for bigger sums.

     

    Eg. In 2016

    Gem Residence, new launch, 3 Bed 936sf, unit cost $1.2 mil

    Trevista a resale property, 3 Bed 1141sf cost around $1.5 mil or $1297psf

    Using TDSR, max 60% of income, a buyer for Gem would need to make just $7500 monthly income to afford the unit while a buyer for Trevista would need to earn at least $9000 a month.

    And if you will to pro-rate the land tenure of GEM vs Trevista, it will show even more that Trevista don’t look such a good buy.

    Trevista tenure started in July 2008, and by Mid 2016, the remaining years of lease is only 91 years out of 99 years 

    If we were to pro-rate the 2016 price of $1297 psf to factor in this lease depreciation, the actual selling price we will arrive at is $1410psf ($1297psf divide by 91 remaining years multiply by 99 years).  This price of $1410psf is then good for fair comparison with a brand new lease at Gem Residences in 2016.

    Another set-back for resale property is that besides higher quantum and less efficient layout, the buyer has to put in additional renovation cost and also do not get a 1 year warranty on the existing fittings.

    With so many disadvantages, many investors do not see it as a total consideration, and only focus on one factor , that is psf of the property ( this is disappointing ).

     

    The Need For Space Vs Location

    If you are the  type who do not need alot of space then choosing new projects with a high price per square foot is not necessarily a big deterrent.

    Higher psf could mean you can live nearer the CBD, or to have condo facilities which complements the lifestyle you want.

    For investors, who buy for rental, they are only focus on getting the best value for their investment, than on the psf of the unit.

    Eg.

    If investor is on a lean budget, getting a

    • 3 Bed at $1600psf means a quantum of $1.7 million
    • 2 Bed unit at $1650psf means a quantum of $1.2 million
    • 1 Bed unit at $1700psf means a quantum around $800,000-$900,000

    This may be a more palatable investment sum for investors, even if the price per squarefoot is higher. After all, the affordability of the unit as well as the maximum bank loan 75% is based on the unit’s price, not it’s price per square foot.

    Conclusion

    In summary, it is best not to immediately assume that a higher PSF price is a bad deal.

    Brand new projects selling at a higher psf as a result of the systemic changes such as TDSR’s in 2013, and the fresh tenure that buyers will get.

    It is important to compare like for like (new condo with new condo and not with old condo) , when we compare psf prices.

    Comparing psf is a useful basis if you’re comparing units within the same development or about the same age (in which case, the psf edge may indeed tilt your winning odds).

     

    However, PSF is not the only important consideration, because sometimes paying a higher price per square foot could make you a smarter investor if you had considered all the other factors. 

    Do let me know your thoughts on this topic and if we can catch up over zoom or over coffee to discuss this, I would be most glad to meet you.  Do make an e-appointment here or whatsapp me your convenient time.  Thank you

     

    Get a 1-time free 30 min Property Wealth Planning (PWP) consultation.

    A PWP consultation includes:

    – An in-depth financial affordability assessment and timeline planning

    – Highly relevant investment insights

    – A clear and customised investment road map

    – A curated list of best buys in today’s market with good growth potential

    – Selecting units with the highest potential in a new launch project

    – Advice on marketing and getting a buyer for your property fast

    – Has your property stagnated in price? What options do you have?

     

    Free Consultation

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee..

    0
    New private home sales has been increasing since the COVID-19 lock down began.  From Apr 7 to June 1, there were 967 transactions and in June, there was a huge rebound to 998 new home sales.

     

    New Home Sales in Singapore

    There are many new launches in CCR, RCR and OCR.  Today’s review is on a new RCR condo named Penrose.

    Penrose is a new condominium development that is located along Sims Drive/Aljunied in District 14.

    It is a joint venture between Hong Leong Holdings Limited (HLHL) and City Developments Ltd (CDL). They won the top bid of $383.5 million for this 174,646 square feet of land, it works out to $732 ppr.

    This project will have 566 residential units, spread over 5 blocks of 17 or 18 storey high.

    Expected vacant possession or TOP period is around 2025.

    Developer's Profile

    Both the developers,  and Hong Leong Holdings Limited and City Developments Ltd  have over half a century of experience in the real estate industry and an impressive portfolio, making them one of the biggest providers in the market.

    Combined, the Hong Leong Group holds the largest non-government residential land bank, and is also ranked as one of the largest residential developers and biggest commercial landlords in Singapore’s core Central Business District.

    Both these real estate developments are established and well known household brands. Both of them, in their own rights, are rank amongst the top real estate companies in Singapore. Each of them has an established track record with reputation for its quality in various segments ranging from the mass market to the upscale developments.

    Reasons for considering Penrose

    1. The Aljunied MRT station (EW Green Line) is a short walk away, about 5 minutes walk. Good connectivity by driving , easy access to PIE and KPE.
    2. Penrose is relatively close to town, with CBD and Paya Lebar Regional Centre, the upcoming business hub.
    3. There are plenty of large bustling entertainment areas nearby Eg. Paya Lebar PLQ, Paya Lebar Square, Orchard Road and City Hall, and Bugis).
    4. Penrose has a large site area of 174,600 sq ft, in city fringe.
    5. Penrose is probably one of the most attractively priced new launch.
    6. Close to many good primary and secondary schools, ideal for home living.
    7. Developed by 2 of the most prestigious developers CDL and Hong Leong

    Location

    Penrose is located next to  Sims Urban Oasis, a 1024 units residential project which was completed in 2017. Other developments that are within Penrose Condo’s vicinity include TRE Residences, Central Grove, Simsville, Park Place Residences, Katong Regency, Sims Green, The Alcove, Rezi 35 and Sixteen 35 Residences.


    Location of Penrose
    Penrose is located at the city fringe, and it is very close to the Central Business District and Paya Lebar Regional Centre.

    According to the URA Masterplan, the Paya Lebar Regional Centre is being developed into one of Singapore’s business, tourism and industrial hubs.

    Residents in Penrose will be spoilt with choice retail, food and entertainment options. Also, we are very close to Geylang Serai Market where lots of Muslim food and items are available. 

    Penrose is located just 400 m away from the Aljunied MRT station (EWL), and it takes 5 minutes to walk there. 

    You can change to Circle Line at Paya Lebar interchange, which is just one stop away.

    Or you can use Downtown Line which is 3 stops away at Bugis Station (EW12/DT14).

     

    Otherwise, residents can opt to use the bus service to reach their destination. There is a bus-stop outside the condominium, buses available are 64, 125, 134, 137. If you were to walk to Aljunied Road, there are more buses 40, 62, 63, 64, 100, 125, 155, 158 that allows residents to go to Orchard or CBD.

    For drivers, you only need 5 minutes to reach PIE or KPE, and you can proceed to CBD or Orchard area.

     

    So for those going to work in CBD Marina Bay/Suntec area or Paya Lebar, or Kallang Basin area,  it is well connected. 

    Schools

    For Primary schools, you can choose Geylang Methodist School, Canossa Convent Primary or MacPherson Primary which is 1 km away.

     

    For Secondary schools, there are Geylang Methodist Secondary, Cedar Girls Secondary, Broadrick Secondary and Dunman High school, all within minutes drive from Penrose.

     

    There are 3 international schools in the vicinity, they are James Cook University,  Nexus International School and the Winstedt School

    Nearby Amenities

    All residents can enjoy the benefits of both wet market and supermarket.

    There is a wet market at Sims Place just opposite the condo. 

    sims vista market

    Both Fairprice and Sheng Siong are located at Aljunied Ave 2.

    Food options are plentiful, with a SP53 Food Centre at Sims Place as well as the Market & Food Centre, all within 3 minutes walk. Also nearby are the full stretch of Geylang eateries all within a short 5 mins drive away.

     

    Penrose is also surrounded by many shopping malls, from big to small malls eg. Paya Lebar Square, SingPost Centre, Paya Lebar Quarter, Kinex Mall, City Plazas.

     

    Penrose is also a short distance to Geylang East Neighbourhood Centre which hosts many amenities including Sheng Siong and Fairprice supermarkets

    Paya Lebar Central

    Since Penrose is situated near to Geylang Serai, one of Singapore’s oldest Malay 

    settlements that is rich in cultural heritage, it provided residents with the opportunity 

    to sample lots of Muslim food and get many other clothes and bags items.

     

    For sports enthusiast, Penrose is close to the Kallang River. Along the river between Kallang and Geylang lies the new Kampong Bugis, Kallang Distripark, Old Kallang Airport and the Kallang Alive (Sports Hub area). These are the areas that URA had planned for a major facelift to inject new leisure spaces. 

    Penrose Unit Types and Sizes

    Penrose Project Details
    Penrose Unit Mix

    Facilities of Penrose

    Penrose has 50 communal facilities, catering to all levels of the residents, from kids to senior citizen. It is spread out across 1st storey and Roof of Multi storey carpark.

    Facilities at 1st Storey

    A clubhouse with multi-purpose rooms, library, game rooms, music rooms and multimedia rooms.

    Penrose has specially designed a Kids Adventure Park, with playground, Aquaplay, and jumping waterjets to allow kids to have fun and move around.

    There are 5 green lawns surrounding the 50m lap pool, this allows different activities around the pool, such as leisure courtyards for social gathering, terrace pavilion for those who like to blend in with the green.

    Also, there is a cascading garden walk which allow residents to have evening walks after dinner.

    There are also Gyms, Yoga decks, fitness lawn and tennis court for the fit and active.

    One key important facility is the child care centre, this gives parents peace of mind as they can leave their kids within the condo child care centre when they go to work.

    Facilities at Roof of MCSP

    • Lap pool
    • Pool lounge
    • Gourmet Pavilion with BBQ pits
    • Dining Pavilion with BBQ pits
    • Wine and chill pavilions
    • Sky Mash Area with Boardwalk, Bioswale, Equisetum ponds
    • Look Out point

     

    For a better understanding of PENROSE,  do visit this youtube to preview PENROSE.

    Penrose Condo Price Comparison

    Penrose Sims Drive land bid came in below market expectation, the top bid price of SGD383.5 million (SGD732 psf ppr) was in fact the lowest land bid price since Feb 2018.

    The Break-even price is estimated at $1,300psf, and the launch price could potentially reach at $1,600-1,700psf.

     

    In comparison with the current new launches in D14, the average price ranging from $1700-1900psf, so Penrose could be the most attractively priced new launch condo in the area. This expected launch price is also supported by its next door condo, Sims Urban Oasis, which last transacted between $1,500psf to $1,600psf in the resale market.

    Buyers might prefer this mid-sized project (only 566 units) as large-sized 1000+ units projects might be too crowded or overwhelming.

    Penrose’s advantage is its easy accessibility to MRT Station, it is away from the noise but yet closeby. This is favourable to tenants who prefer ease and connectivity.

    With Penrose’s city fringe address, and its closeness to CBD, this project might seem to be undervalued as compared to other new launch projects that has similar convenience.

    Currently this area is still under-develop, other than the next door Sims Urban Oasis, the vicinity still lack development. This means there is upside potential when redevelopments start taking place.

    The winning tender price of $732 per square foot in March 2019 was a “bargain” for the developer, it is the lowest price for a city fringe project that is close to the MRT station in the last 2 years.

    Even the closest new project, Parc Esta, the land parcel was bought at $910 psf in 2017. The average selling price was $1,7xx psf which is deemed as a reasonable pricing for a city fringe location.

    Parc Esta was able to sell more than 1,000 units from its total 1,399 units in just 15 months from its preview in October 2018. The remaining 1Bed is now going for $1998psf, 2Bed for $1907psf, 3Bed for $1717psf, 4Bed for $1662psf.

    For those who are looking for investment in this region and with much of the choice units at the Parc Esta sold, and next door Sims Urban Oasis fully sold, potential buyers will be anticipating for the launch of the Penrose condo, particularity when its developers are well known Hong Leong Holdings and City Developments Limited.

    To see comparable potential gains and rental returns for Penrose, it is good to use Sims Urban Oasis as a yardstick.

    I have compiled an estimated price chart for PENROSE based on the various PSF scenarios. Do use this table to estimate how much is your likely investment for the different type of room models.

    Penrose Estimated Launch Pricing

    Potential Upside for Penrose

    Penrose is in the middle of 3 growth areas as shown in diagram. You can see that we are near to Future Bidadari , Paya Lebar Regional , and Kallang Riverside. Penrose will be able to ride on the waves with the development of these growth areas.

    Since Penrose is so near to Kallang River, I like to emphasize on this point.

    Potential growth of the area around Kallang River is highlighted in URA Masterplan for urban transformation of Kallang.

    For Paya Lebar transformation, it started with the Paya Lebar Quarters along Sims Avenue/Geylang Rd. And there will be more development around this area starting with Paya Lebar Central and later Paya Lebar Airbase.

    The future Bidadari Estate is positioned as A Community in a Garden, a tranquil urban oasis, with a 10 hectare Bidadari Park, the Alkaff Lake, and many amenities. It is design as a place where residents can rest, relax, and connect with family and friends, in a garden setting. It will be developed with new commercial facilities around Woodleigh MRT, and there will be a new Junior College also in this Marymount area. Based on the masterplan 2019, it shows Penrose condo is located in an area with few condos, it is quite an under developed area, and there are many potential upside for new condos in this area which will push up the resale price of Penrose subsequently.
    MASTER PLAN PENROSE

    Site Plans and Floor Plans

    At this moment, the developer has yet to get BCA approval for their site plans and floor plans.  We are unable to comment on the choice units.

    Based on this draft plan, it shows all the units are almost North-South facing, good foor wind direction and no afternoon sun into the units.

    But this is still subject to BCA approval. Not the final plan.

    Penrose siteplan

    Conclusion :

    Penrose is a good buy because it is relatively attractive in pricing.

    It is in District 14, which has high rental demand, and because it is a mid size project you will not have high competition for tenants.

    If you want to know more on which unit to select, or is this project suitable for you, please do click on the e-appointment button to schedule a session with me.

    I could provide you with a property wealth planning session to first ascertain
    your financial condition and to recommend your course of actions, to buy it as
    second property or first property.  To sell your HDB or to keep it.

     

    Do contact me soon. Thank you.

    Property Wealth Planning

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

    0

    Dear HDB owners,

    Do you know that you are sitting on a GOLD Mine, which can unlock an early retirement with passive income ?

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    Have you ever wondered how did they do it ?

    When can you upgrade too ?

    What if I tell you that you are not alone in this search?

    Many HDB owners who earned $7,000 or more have approached me before with similar concerns.

    It is not new to see many of them in their late 20s to 40s, need assistance in this area.

    With my clear and fact based insights, we implement a step-by-step Property Wealth Planning™ strategy to guide them, and many of them have since upgraded comfortably to private properties, and some have even created passive income streams with a clear investment road map for the next 5 to 10 years.

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    In my sharing session, I will cover these topics :

    Some Past Case Studies for Your Reference

     

    Real Life Case Study #1
    (HDB Owner)

    Mr and Mrs Lim, both 34 years old, were owners of a 4 room HDB flat. They sought me out to sell their HDB to buy a resale Executive Maisonette.

    Upgrade to condo

    Property Wealth Planning™

    After doing a detailed financial analysis with them, and based on the results, we recommended some methods to help them accumulate wealth without just relying on income.

    Make Money Work For You

    With our proven Property Wealth Planning™ strategies, they have upgraded to a condominium without touching any of their savings.

    And they have also set aside $200,000 in a rainy day fund.

    With my systematic investment road map, they even managed to buy another investment property 6 months later.

    Upgrade to condo

    Real Life Case Study #2

    (Condominium Owner)

    Mr and Mrs Chai, with a combined income of $9K, sought my advice for selling their older 2 room condominium to upgrade to a newer 3 room condominium.

    sell hdb

    Property Wealth Planning™

    After a detailed analysing of the financial status, we found that they could achieve more than an upgrade, in fact they can buy 2 properties.

    Today, they own 2 condominiums and have $300K cash set aside in a rainy day fund.

    Smart Strategies Backed by Research

    By using low risk and systematic Property Wealth Planning strategies, they are now paying a smaller monthly installments than if they had chosen to just upgrade to a 3 room condominium.

    With 2 condos, they can now rent 1 out and get rental income from their investment property.

    My HDB is almost fully paid up. Why should I upgrade?

    The Right Method in Using Your CPF Can Make or Break Your Financial Future

    By putting all your CPF funds into your HDB, you are actually losing more of your wealth.

    With your CPF withdrawn and put into your HDB flat, you:

    Example:

    If $200,000 CPF funds was withdrawn to pay for your HDB, at the end of 5 years, you lose $26,600 in interest earnings. (2.5% compiled interest)

    In addition to that, if you sell your HDB after 5 years, you would have to return $226,600 to CPF instead of the $200,000 withdrawn earlier. This means you receive $26,600 less cash proceeds from your total sales proceeds.

    To summarize, the longer you hold on to a HDB flat paid using CPF funds, the less interest you would have earn AND less cash proceeds you will receive when you sell your HDB.

    Is this outcome preventable? Yes, do make an e-appointment with me to find out more!

    New Financial Possibilities Await You

    Many of my clients assume that their dream properties are out of their reach due to worries like age, income, risks etc.

    As a Property Wealth Planner™, I provide well-researched analysis to lower your risks and offer creative solutions customized for you.

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    Get this limited period 1-time FREE consultation where I will share with you how I have helped many clients, who were in the same situation, grow their wealth. Book an e-appointment with me now.

    0

    Daintree Residence Review

    The market for new launch condo sales is very HOT.

    Units are flying off showflats  everyday,  since the end of circuit breaker, more than 500 units of new launch condos are sold.

    Daintree Residences is my review today.  This project has sold many units since end of circuit breaker, in June 35 units sold, in July todate already 42 units are sold out of this 327 units project.

    Aerial View of Daintree Residence

    Why is it moving so fast in District 21.  There has been a few new launch sites in Bukit Timah area

    ·        Mayfair Gardens,  99 LH

    ·        Mayfair Modern, 99 LH

    ·        View at Kismis,  FH

    ·        Fourth Ave Residences,  99 LH,  Dist 10

    ·        Royal Green,  FH,  Dist 10

    ·        The Linq @ Beauty World (not launch yet)

    ·        Forrett @ Bukit Timah (not launch yet)

    Daintree Residence is a 99-year leasehold condominium developed on a GLS Govt Land Sales site.

    This GLS attracted many bidders and it was won by Setia, with a highest bid of $265 million or $939 psf,  an estimated breakeven price of around $1500.

    Daintree Residence is located along Toh Tuck Street off Jalan Jurong Kechil, Upper Bukit Timah in District 21.

    This 99 year Leasehold project  sits on a 201,511 square foot area, quite a big space for 327 residential units

    Daintree Residence is a short walk away from Beauty World MRT station that serves the Downtown Line 2 and it has many shopping complexes such as Bukit Timah Shopping Centre, Beauty World Center and Beauty World Plaza nearby.

    For nature lovers, Daintree is also very near to Bukit Batok Nature Park and Bukit Timah Nature Reserve.

    Daintree loc

    Daintree Residence is also closely located to many amenities such as Bukit Timah Market and Food Centre, as well as the rows of eateries F&B along Cheong Chin Nam Road.

    Supermarkets are available with NTUC in Bukit Timah Plaza and GIANT in Beauty World Centre.

    For schools, we are nearest to Pei Hwa Presbyterian Primary School, and Bukit Timah Primary School which are within 1km. Ngee Ann Poly, SUSS, SIM, Singapore Poly and NUS are all within short drive from Daintree Residence.

    Daintree Residence will have 327 units and consisting of

    • 22 one-bedrooms,
    • 182 two-bedrooms,
    • 114 three bedrooms and
    • 9 four bedrooms.

    Here is an overview of the Daintree Residence project’s information.

    Daintree Residence Project Info

    Rentability of Daintree Residence

    After analyzing the surrounding old resale condos, we check out the rental amount of 1 and 2 bedroom units

    Rental of other D21 resale condo near Daintree Residence

    Based on past records, 1 Bedroom can get around $1950 for new condo,  if we use this rate to calculate gross rental yield for a 1Bed unit #02-65, costing $930,720,  549 sqft, it will be 2.5% gross yield

    But for a 2Bed unit #02-03, costing $1,165,700, for 678sqft, the rental yield based on $2,800 we will get at least 2.8%.

    Bukit Timah area is very close to Bukit Batok, and Jurong business area, so it should have good rental potential from these sectors.

    We also did a comparison of prices of 1Bedroom units among the old resale condos as well as the recently launch projects

    Currently Daintree 1Bedroom unit, #02-65 is only asking for $930,720 or $1695 psf,  our 2Bedroom unit #02-03 is only asking for $1,165,700 or $1719psf

    The Key Selling Points of Daintree Residence

    The close proximity to the Downtown Line MRT, D15 Beauty World Station, is definitely a plus for Daintree Residence. It is only 600 metres away or about 7 mins slow walk.

    With this downtown line MRT route, it allows residents to travel very quickly, seamless connectivity to town.

    To CBD Raffles Place in 24 mins, 11 stations with 1 change at Bugis to Red line.

    To Orchard in a fast time of 18 mins or 7 stations with a change at Newton to Red Line.

    Bukit Timah is famous for having many good schools, and being in Daintree, it allows close proximity advantage for Pei Hwa Presbyterian Primary and 2km within Methodist Girls School.

    For those we enjoy nature and exercise, King Albert Park’s greenway corridor is a good place to run or cycle along the park connector. Bukit Timah nature park is also within walking distance , and Bt Batok Nature Park offers a panaromic view of Guilin Park too.

    If you have seen the other project developed by SETIA, Eco Sanctuary, you will agree that this developer pays a lot of attention to landscaping.

    You will also find this coming true in Daintree Residence, first we have an astounding feature that links several blocks with a TreeTop walk, about 330 meters in length.

    The treetop walk allows you go to any of the 12 towers via the roof as they’re all connected. This will give you a grand view of the surrounding area of landed and condos.


    Tree Top Walk

    There are so many facilities designed to entertain the residents and guests.

    Besides being able to enjoy the panoramic treetop walk, you could plan your activities such as working out at a fitness station, yoga deck, alfresco pavilion, star gazing garden, and a cabana bar.  The tennis court is located on the rooftop of Tower 11A, a rather cool way to play tennis.

    Other than the rooftop facilities, residents of Daintree also have many facilities to choose from on the 1st level. The facilities are divided into 2 zones, namely the Valley Wing and Rainforest Wing.

    The Valley wing will comprises of facilities for residents to relax and get some “me” time. You will find spa beds, an infinity pool, sun lawn, and a verdant garden, etc.

    The Rainforest wing are for the active ones who want to get workout. It has a 50-meter leisure pool, a gymnasium, an aqua gym, and steam rooms.

    Aerial view of daintree

    Developer of Daintree Residence

    The developer of Daintree Residence is S P Setia Bhd Group, a public-listed company in Malaysia, their Singapore office is in Harbourfront Tower 1.

    Their current tagline is “We’re constantly improving ourselves to bring you only the freshest developments”

    It started out as a construction firm back in 1974, and only in 1996 it change its focus to real estate development.

    Besides real estate, S P Setia is involved in wood-based manufacturing, trading, and infrastructure.

    Globally, the group has established itself in Singapore, Vietnam, Japan, Vietnam, China, and even the United Kingdom.

    S P Setia, made their debut in the Singapore market in 2012 with their launch of 18 Woodsville, in Potong Pasir. Since that debut, the group has continued to assert their confidence in their investments, their subsequent project was Eco Sanctuary in Bt Panjang.

    Daintree Residence Unit Types

    Daintree Residence Unit Types

    Daintree Residence has a total of 327 residential units spread over 11 blocks of 5-storey high.

    Daintree Residence 1 Bed

    My personal favourite stack to buy is stack 46. It is the unit that is furthest apart to the opposite unit, faces the pool, can see the full pool view, unit is NS facing.

    Unfortunately it is not released yet, but we expect the price to be slightly more premium ,  as it is also the biggest 1Bed at 560 sqft.

    Daintree Residence 2 Bed

    In my opinion I think Stack 56 and 57 are the best 2Bedroom stacks as it is pool facing and the windows are facing East.  Definitely bright unit yet no afternoon sun. Only 2 units of each stack is left.

    The other 2 Bed worth considering is stack 30 which is near the arrival hall. Windows faces out to North, Will not have afternoon sun too.

    The other 2 Bedroom units will have either slanting or direct afternoon west sun.

    Daintree Residence 3 Bed

    Most of the 3Bedroom face pool or opposite to other blocks.

    I would like to recommend Stack 25 for 3 Bed as it is a NS facing unit, no afternoon sun. Definitely bright and windy. Faces the entire pool view.  Only 3 units of this stack is left. #02-25 , Size 1055 sqft is $1,828,260 or $1733 psf only.

    Daintree Residence 4 Bed

    The 4 Bedroom units stack 22 and 26 are both equally good, windows face out to North, no afternoon sun.  Should be windy and bright. I like the design
    as the Junior Master is just outside the private lift, you can partition it up
    and make it into a dual key unit, and can rent out a junior master unit.

    In Daintree Residence, the developer has paid special focus on the interiors of the unit.

    Height of room and living room are 2.9 metres,  relatively high for condos.

    The living room & dining area is done up with compressed marble, the bedrooms are fitted with engineered wood flooring and the bathroom uses homogenous tiles.

    Built in wardrobe is provided with shelves and drawers in melamine

    All the appliances and equipment provided are of good quality brands.

    • Kitchen appliances from French brand, De Dietrich, which is popular amongst chefs.
    • Sanitary wares from German brand Duravit , and all taps and shower Hansgrohe
    • Smart Home system complete with Gateway with IP Camera, Digital lockset and WIFI doorbell

    Personally, I feel that the proposed architecture is brilliant and low-density living is suitable for people who appreciate privacy and exclusivity.

    This design really make Daintree stand out among the competition.

    Daintree Residence Price Guide

    This table shows the available unit type now and its pricing as at 19 July 2020

    The attractive and reasonable price point

    A quick comparison of other new launch in Dist 21 or 10, Bukit Timah Area

     If the price is the biggest concern for you, then you can be assured that Daintree Residence is competitively price and the lowest among the new launches here.

    From an investment point of view, there will be potential growth or capita gain for Daintree Residence from new development in this area.

    There is plan for a upcoming Integrated Transport Hub at the Beauty World area. This hub will bring along many commuters and help to hype out this area.

    integrated hub near Beauty World Centre

    Conclusion

    So is Daintree reasonably priced ?  Is it a good buy in 2020 ?

    If you are still hesitating in selection of a unit in District 21 Bukit Timah area, I can assure you that the 2 new launch in Bukit Timah namely Forrett Residence and The Linq at Beauty World will be very much higher price.

    Because they are freehold and it is on enbloc land that was bought at a high price.

    If you desired a beautiful place that is well designed and look gorgeous, then Daintree is for you, because the proposed architecture is brilliant and and it is low-density thus giving you more privacy.

    Just look at the pros and cons summary and you will agree that Daintree is a good choice.

    Pros

    • Close to Beauty World MRT station
    • Low density residential enclave – offers privacy & exclusive living
    • Designed with many condo facilities
    • Efficient and functional layouts
    • Easy access Major Expressways PIE , BKE
    • Attractive entry price, with good rental demand
    • Many amenities nearby, supermarket, shopping, F&B
    • Near Good Schools
    • Reputable Developer

    Cons

    • 99 years leasehold in an area with many freehold or 999 projects.

    If you still have queries or do not know how to choose an unit, do contact me on my mobile, 9109 2177  or if you are still unsure about buying a property now and would like to do a financial evaluation before deciding pls do contact me and book an e-appointment with me and we can discuss on ZOOM or in person.

    Schedule time with me


    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

    Other Articles to read

    Stirling Residences Review  Jadescape Review

    The Woodleigh Residence Review

    Parc Clematis, my ideal project that is really worth buying

    Why Singapore property remains resilient through this storm0

    STIRLING RESIDENCES REVIEW

    Stirling Residences View

    Stirling Residences is a joint-venture project between Logan Property and Chinese developer Nanshan Group.

    Logan Property and Nanshan Group won the bid for this 99-year leasehold, on a 227,220 sqft site along Stirling Road. They place a top bid of $1.003 billion, which translates into $1,051 psf per plot ratio (ppr), beating 17 other bidders in the tender last May. This high land cost translates into an estimated breakeven price of $1542 psf  (after adding in building cost, finance cost, admin cost, marketing cost and profit margin).

    Stirling Residences is located just behind Queens Condominium, it is only 270 metres away to Queenstown MRT station, and it will take about 3 minutes walk. From Queenstown MRT Station, it is just 5 MRT Stops away from Raffles Place MRT Station.

    Stirling MRT Map

    If you are driving, it would take about 9 mins to Orchard, or if by MRT, it is 9 stops away.

    Shopping and Dining

    When it comes to shopping and dining, Queenstown area has many to offer. Within a 5 min walk, residents have access to at least 5 coffee shops.

    It is also located near to many amenities near Mei Ling Street, where there are wet market, food centre, NTUC supermarket, and schools, clinics, education centres.

    Nearest shopping area is Anchorpoint, which is nearby, where
    you can find shops like Charles & Keith outlet, FOX outlet, Billabong outlet and others and a Cold Storage supermarket in the basement. Across the road you have IKEA and Queensway Shopping Centre.
     

    Stirling Residence is built with a childcare centre; this will facilitate lots of convenience for young married couples.

    Nearby to Queenstown are many popular areas such as Tiong Bahru, Alexandra, Buona Vista, Holland, where it has many interesting complements to the lifestyle of many residents.

    Hospitals and Clinics

    For healthcare needs, there are Alexandra Hospital, Gleneagles Hospital and National University Hospital, all within a short drive from Stirling Residence.

    Schools

    There are many good schools in close proximity to Stirling Residence. They include New Town Primary, Gan Eng Seng Primary, Queenstown Primary and Secondary, Crescent Girls’ Secondary, Anglo-Chinese School (International), National University of Singapore and Singapore Polytechnic.

    Parks and Recreation Areas

    Nearest to Stirling is the Alexandra Canal Linear Park [1], a quiet Riverside walk which is 5 minutes away from Queenstown MRT station.

    Stirling Residence Details

    Stirling Residence consist of two 40-storey towers and one 38-storey tower, which means those on very high floor above 25 storey will have a clear view of the city as well as the coastline.

    Stirling Residence Aerial View

    Also, all three towers will be raised 15m — equivalent to five storeys — above street level, which mean the 2nd floor is as high as 6 storeys.

    There will be a total 1259 units. The expected date of T.O.P, vacant possession is April 2022.

    This condominium offers a wide range of unit types — from one- to five bedroom (even penthouses), which will appeal to any type of buyers.

    Stirling Residences Project Info

    Stirling Residence was launch for sale in 2018, the day of the announcement of the 2018 cooling measures (increase in ABSD to 12%). It caused a huge rush on launch day, 200 units were sold that day.

     RENTABILITY OF STIRLING RESIDENCES

     If you were to do a search on rental contracts for May 2020, you will find that rental is quite good, for a 2 bedroom unit, average rental is $3300, if you take the cheapest 2bed avail now at $1,305,000 #20-09, 635 sqft, that works out to a gross yield of 3%.

    We expect Stirling Residence to have good rentability when it is TOP because being new and with more facilities, it will attract more tenants, and the expected rental amount should be around $3500 for 2bedroom.

    Key Selling Points of Stirling Residence

    The main selling point about this project is its location, and its close proximity to MRT stations that is just 5 stops away to CBD and 9 stops to Orchard.

    Queenstown is part of RCR, (rest of central region) and it is usually priced more than OCR properties.

    Being so near to CBD, One North and MapleTree Business, Orchard means the supply of tenants is more abundant, it is very convenient for tenants to stay close.

    As of today, 13 July, more than 84% of this project is sold, and now only high floor units are left for most bedroom types.

    The setback for this project is that it is not near to a mega mall unlike areas like Clementi or Tiong Bahru, it is always good to be near shopping area for convenience and lifestyle needs. Being near to a mall is always a draw for tenants as well as home owners.

    Stirling Residences Condo Facilities

    Stirling Residences features an abundance of condo facilities, about 80 different selections in total.

    This includes a 50-meter infinity lap pool. a state-of-the-art gymnasium, putting green for golf enthusiasts, a tennis court, BBQ pavilions, YOGA pavilion, and many outdoor dining and massage pavilions.

    Stirling Residences Site Plan

    There is also a kids’ club plus an adventure playground.  For other water facilities there are Aquafoot relexology, and Aqua Gym if you require some relaxation.

    In terms of landscaping, Stirling Residences is being designed with the nature-living concept, it is divided into three main themes: Fern Forest, Tropical Forest and Rainforest and all the facilities are split into these three zones.

    STIRLING RESIDENCES FLOOR PLAN

    There are three show units on display at the Stirling Residence showroom

    • 4-room (1,346 sq ft.),
    • 3-room Type 3BR-P (1,055 sq ft.)
    • 2-room Type 2BR-P2 (678 sq ft.)

    In this crowded new launch market, Stirling Residences stands out by offering a lavishly designed 4 Bedroom unit of good size 1346sqft.

    This 4Bedroom has a 135 sq ft. balcony, which provides depth and extra space for additional furniture while making the living area look bigger. Balcony also allows for natural ventilation to the unit..

    There is a dry kitchen area in the living room, makes the living very conducive and warm.

    This 4 Bedroom unit also comes with an ensuite junior master on the right, it is complete with shower head and rain shower.  This unit can fit in a queen size bed, and is suitable for grandparents or house guest.

    The kitchen area is spacious comes with lots of storage cabinets and a store room.

    The common bedrooms, are 94 sq ft wide enough for queen size beds.

    The Master bedroom size is 208 sqft, big with no balcony. There are 3 types of 3 Bedroom avail in Stirling Residences, namely 893 sqft, 980 sqft and 1055sqft.

    At 1,055 sq ft., this 3 bedroom unit has a closed off kitchen separated by see-through glass to the living room, this gives a DIN TAI FUNG type of feel to the kitchen. This 91 sqft kitchen comes with a store room and a WC. And there are windows in the kitchen and in the WC that provides ventilation.  The kitchen is spacious and functional for 2 persons to cook in kitchen.  A full suite of kitchen appliances from fridge to oven to cooking hobs are provided.

    The design of the balcony is like an extension of the living room, it is great for relaxation and can even serve as an outdoor dining alfresco. This living and dining room is almost similar in size to the 4 bed except it does not have a dry kitchen.

    2 Bedroom Type 2BR-P2 (678 sq ft.)

    There are 7 types of 2Bedroom units , size from 624 sqft to 786 sqft.  The showroom model is the mid-size 678 sqft

    This dumb bell design of 2 bedroom is very conducive and offers lots of space. The open kitchen can be sealed off and enclosed with a sliding door. It is tugged in a corner and makes it look neat and contained.

    The common room can fit a queen bed, and like the master room , it all face out to the same direction of the balcony, so you should be able to get good view, especially those on higher floors.

    The master bedroom is 158 sq ft, and it can fit in a King Size bed. The full windows make the room brighter and feel larger.

    Overall this size of 2bedroom is well designed and should be popular among investors and small families.

    Stirling Residence Prices

    As mentioned, we are already 84% sold, and now mostly high floor units are left for most bedroom types.

    To-date 13 July 2020, based on the 1061 units sold, the average psf of this project is $1,815 psf, and because the remaining units are all higher floors, the psf will be higher too.

    Stirling Residences Prices

    Stirling Residences Developer

    Stirling Residences’ developer, Logan Property and Nanshan Group, are both established international developers. Logan is listed in HK, and most of their projects are in China. Stirling Residences is their pioneer project in Singapore.

    On the other hand, Nanshan Group is well established in Singapore, with their last project, Thomson Impressions, they have enjoyed profitable sales and earned quality reviews for its interior design.

    Conclusion

    We feel that Stirling Residence is a good buy because it is one of the few RCR properties available.  Its location is ideal for rental , and good for owner use as it is very centrally located and closely linked to CBD and Orchard.

    The price is a little high now because most of the remaining units are on higher floors. It is still a good buy with good rental yield of 3%, and potential capital appreciation once it is TOP.

    District 3 is full of HDB owners who are always on upgrading move to condo, and this will form a good potential buyer pool for resale when Stirling is TOP.

    If you are unsure of which floor to choose or which facing is best, do contact me for a full consultation over ZOOM or in person. All show flat viewing is only by appointment, so do let me know and I can arrange a visit for you.  Or if you want to do a financial evaluation before deciding on whether to buy a property, do reach out to me.

    Book an e-appointment with me now or call me at 91092177.  Thank you.

    Schedule time with me


    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

    Other Articles to read

    Jadescape Review

    The Woodleigh Residence Review

    Parc Clematis, my ideal project that is really worth buying

    Why Singapore property remains resilient through this storm

    How will COVID-19 impact Singapore’s property market and will it affect the property price.

    What is ReFinancing?

    Which is better? To engage an Exclusive agent or Multiple agents?

    How much does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

    0

    Jadescape Condo

    JADESCAPE REVIEW

    Jadescape, is the new condo that took over the site of former Shunfu Ville HUDC estate, and was launched at end September 2018. And out of 480 units that were launched, 300 units were sold at an average transacted price of $1,700 per sq ft.

    The prices at Jadescape has not risen much, the latest price for the balance units are as follows :

    • 1 Bedroom 527 sf unit is $920,816 or $1447psf
    • 1 Bedroom + Study 527 sf, is $986,922 or 1873psf,
    • 2 Bedroom Deluxe, 764sf, is $1,275,408 or $1669 psf,
    • 3 Bedroom Premium, 1152sf, is $1,875,000 or $1628psf,
    • 4 Bedroom, 1259sf,  is $2,156,428 or $1661psf,
    • 4 Bedroom Deluxe, 1421sf, is $2,450,000 or $1724psf
    • 4 Bedroom Suite, 1647sf, is $2,855,502 or $1734psf
    • 5 Bedroom Suite, 2099sf, is $3,460,825 or $1649psf

    Since the start of circuit breaker on 7 Apr , sales at Jadescape has been quite impressive. From April to June, a total of 95 units were sold during this COVID-19 period.

    It shows that buyers are still ready to buy Jadescape, as the price is right after the discounts.

    Jadescape Condo Review

    Jadescape is among the top 8 projects with high sales, the other projects are Parc Esta, Marina One, Treasure at Tampines, Florence Residence, Tapestry, Parc Clematis, Affinity, mostly mass market condominiums.

    Jadescape is built on the enbloc site of Shunfu Ville. A big development with up to 400,000 sqft of space. It is a luxurious condominium located in the RCR area of Thomson/Bishan. It is within walking distance of 250 metres or 3min walk to Marymount MRT.

    Map of Jadescape

    It is also near the upcoming Upper Thomson MRT Station. By 2030, residents can enjoy the accessibility of 4 MRT lines, namely, North South Line, Circle Line, Thomson East Coast Line and the Cross Island Line.

    Jadescape residents can also enjoy breathtaking panoramic views of the MacRitchie Reservoir, as well as the unblock views over the surrounding landed enclave.

    Ratings of Jadescape
    Aerial view of Jadescape

    Besides the proximity to nature, residents can enjoy the inhouse facilities, there are more than 95 facilities which include 2 Tennis Courts, 2 x 50m swimming pools, 2 club houses, gyms, and numerous pavilions. Qingjian has tried to put in as many facilities into this 400,000 sqft area, and there are many water features and trees everywhere.

    Jadescape offers a total of 1,206 Residential Units & 6 Shops, in 7 tower blocks, and there are choices from 1 Bedroom to 5 bedroom.

    Jadescape is well located and connected to many places.

    From Jadescape’s Marymount station to Dhoby Ghaut (Orchard), its only 6 stations away or about 14 mins.

    From Marymount to Jurong East, it is only 8 stations away or 22 mins

    From Marymount to Raffles Place, it is also 8 stations away or 18 mins

    The Circle line makes it quick to connect to other lines as there are many interchanges along Circle Line.

    If you are driving, you can enter major expressway PIE via Lornie Highway and CTE via Braddell Road.

    KEY SELLING POINTS OF JADESCAPE

    One of the key selling point to stay in Jadescape is the Location.  It is very near to mature estates like Bishan and Ang Mo Kio and Toa Payoh.

    Jadescape is located within close proximity to the serene MacRitchie Reservoir nature park as well as beside a landed private enclave.

    There are many amenities surrounding Jadescape, with Shunfu wet market & hawker centre opposite at Blk 320.  There is a Sheng Siong supermarket nearby along Thomson Road.

    The only setback is that there is no big shopping mall nearby, the nearest is either Thomson Plaza or Bishan Junction 8.

    Location 4/5

    The location of Jadescape helps in the rentability of the condo, and it improves the rental yield.

    Rental competition in this area are only from Boonview, Tresalveo, Seasons View and Marymount View, mostly quite old properties.

    Rental Comparison with Jadescape

    Even at $2500 rental, you would get a gross rental yield of 3% for a 1Bedroom unit costing $916,633.

    Also, with the construction of the NSC, North South Corridor, it will add more benefit to residents of Jadescape as it allows a smoother and faster drive to town, and smoother traffic along Marymount Road.

    North South Corridor Jadescape

    In terms of quality, I would say it is good, especially with the developer making it Singapore’s first fully smart home concept.

    Not only it has facial recognition at lift lobbies, QR code access for guests, it also offer a private condo maintenance app, called HiLIFE, which enable residents to unlock their doors, book classes, pay maintenance fees, as well as check for car washing bays.

    Jadescape is developed by a reputable developer Qingjian who has won many accolades with Bellewoods, Bellewaters. who won the Construction quality assessment system star by the Building and Construction Authority (BCA).

    Jadescape Developer Awards

    This Construction Quality Assessment System Star award is the highest accolade for construction quality and it is given only if the development surpasses 95% of BCA workmanship quality standards.

    Pricing 3.5 /5

    Jadescape is not the cheapest price condo in this region, in fact it is reasonably and correctly priced based on surrounding region and against other new launches.

    Prices of Other condos surrounding Jadescape

    If you compare this with other new launch in Dist 19, where none of these condo has a near distance of 250m to MRT station. Jadescape offers a bigger size unit as well as close proximity to MRT.

    Jadescape Prices of 1 Bedroom versus other projects

    Jadescape Price trends
    Price trends of Jadescape since launch in 2018

    Comparing Jadescape pricing of 1Bedroom unit, the average psf starts from $1739 psf, unit #03-58, 527 sqft at $916,633.

    The 1 Bedroom units in Jadescape are bigger in size , 527sqft.Space and layout is efficient with a wide living room space for TV to be placed further.

    The master room is spacious and can even accommodate a King Size bed.

    With modern technology incorporated in this apartment, Qingjian even provided an intelligent dishwasher which could even wash your vegetables.

    At the initial launch, Jadescape even catered some 1Bedroom units for the elderly which included features such anti-slip flooring, support bars fitted in the bathrooms, and kitchen cabinets to cater to wheelchair bound residents.

    jadescape 1bed floor plan
    Jadescape 2 Bedroom unit floor plan

    There are 3 types of 2Bedrooms available in Jadescape. The size are 646sf, 764sf Deluxe, and 775sf Premium.

    The deluxe model is the showroom model. Overall it is very squarish in design , with no odd corners. The living is very wide about 3m, comfortable for TV viewing. And it has a designated area for dining where you can put a 4seater dining set.

    Kitchen appliances are all SMEG brand and a FOTILE dishwasher is also provided.

    The flooring of the unit is porcelain tiles and ceiling is 2.9m making unit spacious looking.

    You can fit in Queen size beds in common room and no space is wasted in long walkway. Floor is engineered timber.

    As you can see, the 2 bedroom are good in layout and size. Now, all the smaller 2bedroom and the bigger 2bedroom Premium are sold out.  Only the 764 sqft units are left and most of them are higher floors.

    Jadescape Prices of 2 Bedroom Units

    What I like best in Jadescape is the 3Bedroom unit, it is one of the bigger 3bedroom you can find in the market today.

    Jadescape offers a few types of 3Bedroom , sizes are 904sqft, 1012sqft, 1055sqft, 1152 sqft, and 1141sqft.  It was so much in demand that now only 4 units of 3Bedroom premium is left.

    Jadescape Price of 3 bedroom

    Jadescape 3 bedroom floor plan
    3 Bedroom Premium 1152 sqft
    Jadescape 3 Bedroom Premium unit floor plan
    4 Bedroom Deluxe, 1421 sqft

    4 Bedroom units, 2 types

    D1 – 1259 sqft

    D2 Deluxe – 1421 sqft

    #02-08  D1, 1259sf,  $2,091,735

    #02-32, D2, 1421sf,  $2,342,755

    Jadescape 5 bedroom, size of 2099 sqft, it is very rare to find 5Bed of this size now.  It is a luxurious unit suitable for big family or multi generation family.  This 5 bedroom boast a huge living hall (6M width) with dry kitchen fully equips with SMEG brand appliances and a large wet kitchen and with a maid room.

    The lowest price for 5Bed, 2009 sqft is #02-46, at $3,190,612 or $1520psf.

    Jadescape 5 Bedroom floor plan

    All the unit are very well designed, with available space as a main constraint.

    Jadescape is marketed now at a good entry price, with discounts given for the circuit breaker period. It is being priced at one of the lowest price RCR project, to-date 69% is sold and the project will TOP in 4th quarter 2021.

    We expect good exit price when all the new URA master plan additions are completed, such as the opening of North South Corridor, The Cross Island Line, and also new developments around Jadescape.

    Only 7 new launches had happened in District 20 in the last few years and all these are sold out.  Most of these new launches have already received their Temporary Occupation Permit (TOP).

    They are

    • Panorama
    • Adana
    • Thomson Impressions
    • Thomson Three
    • 183 Longhaus
    • Sky Vue
    • Sky Habitat

    And there is not much new land for new development unless there are more enbloc sites. Possible sites for enbloc are Thomson View or Braddell View or Lakeview area. But enbloc activity has all stopped due to ABSD and other issues.

    The URA Master Plan of Bishan Estate will make Bishan into a sub-regional centre and it will transform it into an attractive and easily accessible employment node that is integrated with community facilities to serve residents.

    Bishan Sub Regional Centre Jadescape

    The master plan has made some changes to the growth of this area.

    There are 3 new plots of residential land seen in the new Master plan with plot 3.5 which means it can be develop into tall condos. And this new developments will surely be more expensive than Jadescape because of the land cost, thus this means growth in Jadescape capital appreciation.

    Master Plan Bishan Jadescape

    And last year, in Straits Times it was reported that plans are made to build another 1500 new BTOs in Bishan,  this new group of BTO owners will pave wave for MOP buyers who will upgrade after staying 5 years in their new flats. This will help the resale of condos in Bishan area.

    Bishan new BTO 1500 flats

    Rentability

    As mentioned with the new master plan to make Bishan as a sub-regional centre, jobs will be created, demand for a rented unit increase, tenants pool is secured.

    The current pool of rental tenants from Ang Mo Kio , Toa Payoh, and Pemimpin industrial areas, as well as from the many educational centres will continue to provide tenants in this region.

     Best Stacks to select

    All the 7 residential blocks in Jadescape is North-South orientated.  No direct afternoon sun

    • 1 bedroom – Cheapest stack is Stack 58, faces Shunfu Road (HDB direction) For pool view units Stack 38, and facing open stack 44, all these will not get afternoon sun.
    • 2 bedroom. – If you prefer pool view, we have stack 19,26,31,30. This pool will be quieter than the skyline pool. If you don’t like pool view, stack 35 and 41 will be good for you as it is quiet and faces the private landed enclave.
    • 3 bedroom No choice , only left with stack 61
    • 4 bedroom – For the smaller 4bed, 1259sf, stack 08 & 24 face pool, stack 36 & 42, face landed view. For the bigger 4bed 1421sf units, stack 17 & 32 face pool.
    • 5 Bedroom – Both stack 40 & 46 are facing the landed estate, it will be quiet, breezy and unblocked

    Conclusion :

    Jadescape is a very attractive condo with many positive attributes and with a right entry price and an expected exit strategy, Jadescape is a good property investment for both investors and home buyers.

    For buyers who are looking for new condos near to MRT, Jadescape will be a benchmark for all the upcoming new residential projects in the city fringe which are located near an MRT station.

    If you want to know about Jadescape, or which unit to select, do call me or make an e appointment with me.  I will be most glad to share more info with you.

    Thank you.

    Schedule time with me


    Other Articles to read

    Parc Clematis, my ideal project that is really worth buying

    Why Singapore property remains resilient through this storm

    How will COVID-19 impact Singapore’s property market and will it affect the property price.

    What is ReFinancing?

    Which is better? To engage an Exclusive agent or Multiple agents?

    How much does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

    0

    The Woodleigh Residence Review

    Buying a new launch condo is really a challenge.  You need to understand the dynamics of pricing as well as the attractiveness of this new investment.

    For me, as a real estate professional, I believe that in the assessment of a property purchase, I need to advise my clients first on the financial aspects, then on the suitability, and finally on the future potential based on URA masterplan.

    URA Masterplan is a statutory land use plan that guides Singapore’s development over a period of the next 10 to 15 years. URA Master Plan translates the broad long-term strategies of the Concept Plan into detailed plans to guide the development of the land and the property.

    I would like to propose this Woodleigh Residences Review for your investment consideration.

    The Woodleigh Residence is a landmark, an integrated development located in the heart of Bidadari. Woodleigh Residence has direct access to Woodleigh MRT Station and it has the first underground bus interchange located beside it.

    Besides its link to the transportation nodes, this integrated development also feature a shopping mall, called The Woodleigh mall, and a 6,000 square metre Community Club as well as 2,200 square metre Neighbourhood Police Centre within the project.

    Woodleigh Residence is designed to blend in with the natural greenery surrounding it.  It has a rustic and wooded park theme, with 350 mature trees, including TEMBUSU tree.

    Woodleigh Residence Location

    The 10 Hectare, Bidadari Park will feature a lake, and 6 kilometres of experiential trails for nature lovers who like flora and fauna to track and enjoy the nature. Residents can explore trails spanning 6km or walk along an 80m-long boardwalk across the marshland.

    To remind residents of the history of Bidadari, a 700m heritage walk will be introduced in the estate. This Heritage walk which will extend from the condo out to other public spaces within Bidadari Park.

    This close proximity to the park will allow residents to live right within a park.

    The park is a multi-agency collaboration between HDB, national water agency PUB and the National Heritage Board (NHB).

    Bidadari estate will also feature Singapore’s first underground service reservoir. This reservoir will store drinking water, helps to regulate supply to homes and boost water pressure during periods of high demand.

    The service reservoir tank will be built beneath the community lawn in Bidadari Park, this way it will optimize land use and create more greenery space for residents.

    The Bidadari park will also feature 2 green lawns of about 5,000 sq m. This lawn will provide area for residents to organise community activities such as picnics or dancing or taiqi. There will also be a playground called Adventure Playwoods, featuring a 5m-tall treehouse with slides and climbing nets for kids to play.

    Bidadari Park

    All this beauty and nature offered by Bidadari Park really adds value to living in Woodleigh Residence.

    Woodleigh Residences offers a mix of 2 / 3 / 4 bedroom units for investors and homeowners. Majority of the units are position in the North-South facing. Most of the 2Bedroom units are facing Upper Serangoon Road, where the lift to the MRT is located.

    Advantages of Woodleigh Residence

    1. Transport convenience – Woodleigh MRT,  Underground Bus Interchange
    2. Integrated Shopping Convenience – Supermarket, Medical, Educational, F&B, Shops
    3. Schools within 1km radius include Maris Stella High,  Cedar Primary, St Andrew’s Junior
    4. Nature Park with lake just beside
    5. Very near to big malls NEX  one station away (5mins), Orchard 5 stations away (16mins)
    6. Japanese Precision Craftsmanship included in project
    7. Near Paya Lebar business park, 5 stops away

    Disadvantages of Woodleigh Residence

    1. Noise level due to integrated mix use, with lots of people traffic
    2. Does not have exclusivity with no perimeter fencing to enclose property.
    3. The 2Bed units facing Upper Serangoon Road are West facing and will get more road noise from this main road.

    In our Woodleigh Residences Review, we would like to share URA plans for Bidadari to show the future development around this region.

    Master Plan of Bidadari

    As you can see from Masterplan, Woodleigh Residence is in blue meaning Commercial & Residential, the only other similar blue is in Potong Pasir, The Poiz Centre, this is a small shopping centre catering to the residents in Potong Pasir.

    Surrounding Woodleigh are all residential areas, plus some HDB with shops on 1st storey, the Bidadari Park and some outlying B1 light industries. This means growth potential is good for new condos along Serangoon road, this upcoming new developments asking price will surely be higher and will help push up the surrounding prices, including Woodleigh’s resale price.

    One exciting new mixed-use development next to Woodleigh Residences is the HDB development, called Woodleigh Village. This Housing and Development Board (HDB) project has shops on the first level and it will feature new amenities such as a hawker centre, childcare centre and resident’s committee centre, shops and grocery stores.

    Woodleigh Village is located on top of the Bidadari bus interchange, the island’s first underground air-conditioned interchange.

    The master plan also sets the stage for a regional park with a lake. And there will be lots of local recreational, social and commercial hub closely link to the lake.

    From the Masterplan, we can see that Woodleigh Residence enjoys the first mover advantage as being the first integrated mix development in Bidadari, and it is the jewel of Bidadari. It will enjoy the benefits of Bidadari and the park first before the other new condo plots in Bidadari is launched.

    Woodleigh Residence First Mover Advantage

    The Woodleigh Residence Details

    This project is jointly developed by SPH and KAJIMA ( one of the largest developer in Japan ). It offers units with Japanese style and concept in their design.

    Firstly, the balcony floor is designed as a seamless flooring, this allow the resident to extend its usable space from living space into the balcony.

    The living room walls are designed to be collapsible to enlarge the hall, and kitchen cabinets are fitted with extra Japanese cutting boards and extra drawer spaces.

    All the master bathroom are fitted with TOTO brand Electronic Washlet, and TOTO brand sinks.

    Almost all the kitchen appliances are De Dietrich brand, a famous French Brand.

    All the facilities are facing the Alkaff Lake Direction, with 3 swimming pools of different sizes

    • 22m x 6.5m x 1.0m
    • 50m x 7.5m x 1.0m
    • 25m x 6.5m x 1.0m

    Some of the facilities in this project include Japanese style too

    • BBQ pavilion by the pool
    • Chillout Deck
    • Cabana by the Pool
    • Pavilion BBQ by the lake
    • Pavilion Zen
    • Japanese Sunken Courtyard with BBQ
    • Alfresco Kitchen and Dining
    • Gym and study room
    • Tatami Room
    • Urban farming area, and BBQ by the Farm
    • Function Rooms
    • Gourmet Kitchen with Teppanyaki
    • Engawa
    • Children play deck and playground

    The whole project is located at least 66m away from the nearest Bidadari HDB blocks.

    It has an exclusive main entrance located at Bidadari Park Drive, with condo residents car park entrance and shoppers car park entrance separately located.

    Now, only the green and blue units are released for sale, with the red zone still not released

    Maintenance fees are set at relatively low levels, only $371 for 3 bedroom or smaller, and $424 for 3Bedroom Deluxe and bigger.

    If we do a price comparison of Woodleigh Residence with other new launch, we see our 2bed unit are comparing quite favourably

    Woodleigh Residence 2 Bedroom

    If the 2Bed is for rental investment then you should be able to get about 3% gross rental yield.  Based on a purchase of 2 Bedroom Unit , 667 sqft , #03-19, at $1,204,000 and the monthly rental amount of $3000.

    This is a relatively attractive rental yield, and the rentability of The Woodleigh Residence is good because it is so near to Paya Lebar Business area as well as the many light industries in Kallang area, where many potential tenants are working.

    Woodleigh Residence rental price comparison

    For Woodleigh Residence, we are currently having a promo price of one price for all floors $1,796,000 for stack 07, 08, 11, 12, all 3 Bedroom standard 958 sqft.  This is a good entry price for 3bed units

    This is the standard 3bedroom unit that is available for preview at our showflat. All the rooms are more than 80 sqft, big enough to fit in a Queen size bed.

    It is very spacious and well layout , with a utility room for storage too.

    We are very confident of The Woodleigh Residence and we believe these 3 Key USP are really worth your consideration.

    1.       It has all the good project fundamentals such as

    ·         Good Location – Dist 13, near to City area,

    ·         Well connected by transport , MRT, Bus, Car,  only 1 station to NEX and 5 stations to Plaza Singapura,

    ·         Near to multiple educational facilities such Maris Stella, St Andrews Village, Cedar Primary, Paya Lebar Methodist Girls

    ·         Living within a Park, with the Alkaff Lake and Bidadari Park just outside the condo

    ·         Living in a mix integrated development offers all the convenience

    2.       First Mover Advantage, Good entry pricing

    ·         Being the first and integrated condo in Bidadari before the launch of other project locations in Bidadari

    ·         Attractive entry price , even better than Sengkang Grand

    3.       Able to be at the right exit strategy

    ·         The difference between staying in a mature estate versus a new town

    ·         HDB upgraders from the existing Bidadari HDB dwellers when they attain MOP

    ·       Have good capital appreciation after price is push up by the late entries Condo launch in Bidadari

    Conclusion :

    The Woodleigh Residence is well located, and it offers utmost convenience in terms of transport or amenities. It is very comfortable for both rental investment or home stay.

    If you are the buyer of the first property, you will be able to get 75% LTV and your cash outlay is small.

    If 2 Bedroom Unit , 667 sqft , #03-19, at $1,204,000.  Purchase with 25yrs loan

    Woodleigh Residence booking details

    It is a very comfortable amount for purchase as an investment or home stay, and many individuals with income of $6500 can afford.

    To find out more about how you can finance this with other means, do call me and I can share with you more options.

    Do book an e-appointment or call me now.

    Schedule time with me


    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

    Other Articles to read

    Parc Clematis, my ideal project that is really worth buying

    Why Singapore property remains resilient through this storm

    How will COVID-19 impact Singapore’s property market and will it affect the property price.

    What is ReFinancing?

    Which is better? To engage an Exclusive agent or Multiple agents?

    How much does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

    0

    Parc Clematis Review, my ideal project that is really worth buying

    We’re all expecting a potential recession in 2020, unless we can get out of this COVID induced market environment. Singapore has just embarked on a 3 phase approach to resume activities previously halted during circuit breaker.

    Singapore has reopened economic activities that do not pose high risk of transmission of COVID. Schools have reopened and more businesses are allowed to resume operations.

    Jem Shopping Centre

    People at Jem mall in Jurong, on June 11, 2020. ST PHOTO: MARK CHEONG

    This COVID-19 pandemic has prompted our Government to draw up an unprecedented combination of four Budgets containing wage subsidies, tax rebates and rent relief to help companies and workers tie over this difficult period. These 4 budgets add up to almost S$100 billion.

    But still, a worst-ever recession is on its way, with Singapore’s  economy expected to shrink between 4 and 7 per cent this year.

    By restarting the economy on June 1, we hope to start the economy and get out of this impending recession.

    US vs China

    Besides recession, there is another fear that is happening globally between US and China, these 2 superpowers need to sort out their differences and not engage in more trade war tactics.

    Because tension between these two countries will affect global trade and will affect Singapore’s road to recovery.

    This COVID crisis is different from SARS or the 2008 Financial Crisis.

    The 2008 Financial crisis only affects the financial and insurance related industries, but COVID 19 caused a national lockdown, bringing a stop to almost all industries and it cause stress to many sectors.

    But some new launches amid the Covid-19 outbreak in the first quarter still did pretty well.

    The M, launched in February, sold 380 out of 522 units or 73 per cent by the end of March, and Parc Canberra EC sold 65 per cent, and OLA EC sold 31 per cent of its units.

    The M sales

    More than 2,000 people visited The M’s sales gallery during the 522-unit condo’s preview on Feb 15-16.  PHOTO: WING TAI ASIA

    This suggests that projects that are reasonably priced will find buyers in this market.

    Usually, in a downturn or crisis, high end luxury condos which are not owner occupied, but rented out to well heeled expatriates, will suffer first.

    But based on data from URA, it is shown that CCR properties are the most active during this circuit breaker period.

    There were 102 units from CCR sold in April 2020.  Because many affluent buyers are seeing this as a good opportunity to grab a good purchase and they are confident the market will correct soon.

    We believe many investors had built up their reserves during the good years and hope to pick up bargains during crises.

    So, what is going to happen in the next few months? Is it a good time for those who have been waiting on the sidelines to jump into the market ?

    Singaporeans are still into purchasing property, whether it is for upgrading, own stay or investment, because property unlike other investment platforms, can be seen and rented out.

    I believe that it is a good time to enter market since developers are now very active and are giving good discounts to move their stocks.

    Currently, many projects such as Treasure at Tampines, Riverfront, Affinity, Garden Residences, Florence Residences and Parc Clematis are giving very good discounts.

    For me, my favourite is Parc Clematis.  This is because I grew up in Clementi, I know every eatery and every corner of Clementi. It is a place where I grew up from Primary school to University.


    I have previously applied for DBSS Trivelis at Clementi Ave 4, and also evaluated Trilinq but did not purchase it because of the loft layout.

    Parc Clematis is a 99 years leasehold development, comprising of 1468 units. There are a full range of 1 to 5 bedrooms in the towers, along with penthouses, bungalows, and terrace units.

    Parc Clematis is located along Jalan Lempeng, District 5, just beside other condos, namely Regent Park, Trilinq.

    Parc Clematis is indeed the place for both investment and home stay.

    For my own stay, I like the fact that it is only 6 minutes walk away to Clementi MRT station, the East West line, that covers many places. There will also be a sheltered walkway in the future that links the condo to the MRT.

    From the many news reports on the future Cross Island Line, it is reported that it will make a stop in Clementi, and the possible link up to the Green Line to form an interchange, so it should be located very near to Parc Clematis.

    With this new Cross Island Line it will add value to Parc Clematis, a good growth in capital appreciation is expected and a good exit strategy when the line is operational.

    cross island line 2029

    And being near MRT , also means it is near to lots of amenities, from NTUC supermarket to food courts, shops, hair salons, library, and many more. It is almost as if you are staying in an integrated development.

    Parc Clematis is situated in the middle of the education hub area stretching from Clementi to Dover. We have many good schools from Primary till University.

    Primary schools include :

    ·        Clementi Primary

    ·        Pei Tong Primary

    ·        Nan Hua Primary.

    For Secondary Schools there are

    ·        Clementi Secondary,

    ·        Commonwealth Secondary

    ·        Tanglin Secondary

    ·        New Town Secondary

    ·        Nan Hua High School

    ·        NUS High School

    ·        School of Science & Technology

    For Post Secondary, Poly,

    ·        Ngee Ann Poly

    ·        Singapore Poly

    ·        ACS Independent

    ·        Anglo Chinese JC

    International Schools around Parc Clematis include

    ·        International Community School

    ·        Dover Court International School

    ·        United World College SEA

    ·        Waseda Shibuya Senior High School

    ·        Nexus International School

    ·        The Japanese School

    Universities

    ·        National University of Singapore NUS

    ·        Singapore University of Social Sciences, SUSS

    With so many education places surrounding Parc Clematis, this offer rental potential from the school staff and students. Many tenants may come from this group of people from the education sector, thus increasing the rentability of Parc Clematis.

    Parc Clematis is near to many work places, such as Buona Vista (Greater One-North) in east and Jurong (2nd CBD) in the west.

    It is just one MRT stop away to Jurong East, the new CBD of the west. This new CBD has many offices and government departments as well as light industries.


    Parc CLematis near One NOrth

    Parc Clematis is also 2 MRT stops away to Greater One-North, Buona Vista MRT, the area where all the polis are, MediaPolis Metropolis, Biopolis, Fusionopolis.

    These work places offer lots of job opportunities and high potential tenant supply.

    Because Parc Clematis is so near to Jurong East, it will benefit greatly from the URA planning for Jurong Gateway

    Jurong Gateway is being planned to cater to the diverse needs of businesses and create job opportunities for people who live nearby. The future HSR High Speed Rail is targeted to be built in Jurong Gateway by 2026.  This will definitely add value to Parc Clematis and possibly increase its capital growth.

    This new Jurong Gateway is the new 2nd CBD and there will be more than 100,000 new jobs and as many as 20,000 new homes. It will offer new concepts of work-live-place with lots of tranquillity and recreation in store.

    With more HDB BTOs being built in Clementi, it also means future upgraders from this MOP (minimum occupation period) group will look for condos in the Clementi, and makes Parc Clematis a good choice because it is newer.

    Besides the connectivity offered by the cycling paths and park connectors, Parc Clematis is also near to many green areas, nearest being Faber Hill Playground.  Other green areas include West Coast Green and West Coast Place and Firefly Park along Clementi Ave 6.  Besides the West Coast Park, the residents of Parc Clematis can venture to these green areas for recreational purposes.

    What I like most as a driver, is the ideal location of Parc Clematis.  It is situated so near to major expressways AYE, CTE and PIE, and it allows me to go to any part of Singapore quickly.

    Now with COVID-19, developers are offering good circuit breaker discount.

    Parc Clematis Circuit Breaker discount

    My intention is to get a 3Bedroom unit since I am staying in a HDB 5Room unit, and I need 3 rooms. Parc Clematis towers are all elevated 16 m off the ground, that makes it 6 floors above. So getting a low floor unit in Parc Clematis is good as it is already 7 or 8 floor high.

    Parc Clematis 3 Bed room unit is at a good size, so making it more affordable.  The 915 sqft unit is about the size of a 4Room HDB new BTO flat. The layout is well organised, and here is my take on its appeal

    Pros :

    • Main Door is wellplace, with exclusivity and privacy in mind
    • Living Hall and Dining is well separated and spacious
    • All the rooms are big enough for Queen size beds
    • Balcony is not so big
    • Bathrooms are well ventilated with windows
    • Enclosed Kitchen is spacious and ventilated with windows

    Cons :   Overall size is only the size of a 4 Room HDB BTO flat.

    Parc CLematis 3Bed room

    Taking the price of $1,377,000 for a 829 sqft unit #03-53, or a 915sqft unit, #03-61 at $1,433,000, we did a comparative analysis with the surrounding resale properties

    Comparative Analysis of Parc Clematis

    It is almost on par with Trilinq,  it shows that being new it will have potential upside when it TOP in 2023.

    It is a good entry price, you only need to pay 25% downpayment of $344,250 (cash & CPF) and a monthly instalment of $5,225 if you will to take a 20 year loan at 75% LTV.

    What I like most about Parc Clematis is the layout and facilities.

    Parc Clematis Facilities

    Parc Clematis is designed with the Kindred Community feel, or Kampong Spirit feel.  It is the thoughtfulness of all the shared facilities which forms this kindred lifestyle community.

    Parc Clematis has many social areas to gather in, including a communal working space and communal kitchen space and there are a variety of stylish dining pavilions: Mediterranean, Caribbean, Greenhouse, Teppanyaki, Wok It and Tea Place, all great for hosting family and friends.

    This  development has a spacious area of 400,000 sqft. of facilities. It is designed to cater to a variety of property seekers.

    The resort-inspired facilities include three exclusive 50-metre lap pools, an aqua-therapy pool, and hydrotherapy pool, plus one of Singapore’s largest freeform beach-inspired pool, which is 100 m in length.

    This development also has 4 themed clubhouses (with entertainment room, games room, celebration halls), a gym, dance studio, 2 tennis courts and a basketball court.

    There are so many facilities to cater to everyone needs..

    Conclusion

    There are many good projects with attractive discounts in the market.

    And surely you will find one project that you really feel it is worth buying.

    But before you decide on which way to go, you must know which scenario you are currently in.

    If you are a first time buyer who has been waiting on the sidelines, then it is ideal for you because you can buy a private home without ABSD and can get highest Loan To Value 75% and you might be given priority if you opt for HDB or EC.

    If you are staying in a HDB and want to upgrade, then you may want to consider new launch condo because you can choose to sell your HDB flat within six months after you take delivery of the new home and get ABSD remission.

    But if you prefer to keep your HDB flat, then you have to decide if it is worthwhile to pay 12 percent ABSD, which is equivalent to 6 years of rental income from your HDB flat.

    If you already own a condo and want to buy another for investment, then you need to work out the sums with your rental income and projected future capital appreciation.

    You need to calculate after accounting for ABSD, mortgage repayments, property tax, maintenance and agent brokerage fees and miscellaneous expenses such as furnishing.

    You also need to prepare for the event where you cannot find a tenant. If all these calculations points to a good investment then you should proceed.

    To know if Parc Clematis fits your consideration of a new property , do give me a call and I can show you virtual tours of the project.  Do contact me or fix an e-appointment with me. Thank you.

    Schedule time with me


    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

    Other Articles to read

    How will COVID-19 impact Singapore’s property market and will it affect the property price.

    Which is better? To engage an Exclusive agent or Multiple agents?

    How much does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

    0

    Sales of new private home plunge 12% in the first quarter 2020, amid disruption from the COVID-19 pandemic.

    Many are of the opinion that it will deteriorate further as Circuit breaker restrictions are in force.

    According to URA sources, Developers sold 2149 homes ( excluding EC) in the first quarter ,  a 12% down from the 2443 units sold in 4th quarter 2019.

    One of the reasons why lesser units are sold is because developers released fewer new units for sale in first quarter versus last quarter 2019. Developers launched only 2,093 private property units (excluding ECs) for sale in 1st Quarter 2020, as compared with 2,226 units in 4th quarter 2019. 

    Along with the fall in sales, URA flash estimates also show private property prices declined by 1%.

    But this price fall is still not as severe as compared to past crisis.

    In 1996 start of Asian Financial crisis, the fall was 1.9 per cent and in 2008 Global Financial Crisis the fall was 2.4 per cent.

    Property Residential market - Singapore property remains resilient

    Ever since COVID-19 started, I find that most buyers became more opportunistic, more prudent and highly price-sensitive, and they will go for new launch that are attractively priced.

    A research by EdgeProp has shown that since Apr 7, when circuit breaker was announced,  a total of 573 new launch sales were transacted. This is quite a substantial number because all showflats are closed, and all meetings or viewing postponed, only virtual tours and zoom video conferencing are used.

    Singapore’s property market recovery may be slow as predicted by many research personnel.

    Christine Sun, our OrangeTee Head of Research has said that prices of private homes for the entire year could decline up to 4 per cent if COVID-19 continues to drag on.

    Although there is pent-up demand, I could possibly only see a rise in buying activity when the COVID-19 measures are eased.

    With changes in circuit breaker rules, and if viewing is restored, only then will you see more activities or sales after this prolong period of home isolation.

    Home Prices By Region

    The prices of non landed properties by region fell mostly across all market segments.

    • In CCR, it fell 2.2 percent in first quarter
    • In RCR, it fell 0.5 percent
    • In OCR, it fell 0.4 percent
    Comparison of Price Index - Singapore property remains resilient

    Supply in the Pipeline

    As reported in URA statistics, there will be a total supply of 48,868 uncompleted private residential units (excluding ECs) in the pipeline with planning approvals. This is less than the 49,173 units in the previous quarter.

    New private home sales in 2019 was very good, it rose to 10,104 units, or a 15% increase from 2018. This signals a resilient housing market as conditions in 2019 are favourable with a low unemployment rate.

    The new private home sales had a good run in 2019, due partly to HDB upgraders who upgraded and bought new inventory from developers. Many of these buyers of new property were previous HDB owners.

    Majority of these transactions were in the suburbs, outside of the central region as HDB upgraders usually look for properties near their previous homes or in neighbouring HDB estates

    But for 2020, some consultants, like JLL,  are projecting the whole 2020 sales to slump to about half of the 9,912 units sold in 2019 due to the COVID pandemic.

    Pipeline supply of pte residential units - Singapore property remains resilient

    Is it a good time to buy now ?

    Sales volumes for new private homes tumbled in April as developers were forced to shutter sales galleries and prospective buyers cannot view properties. New private home sales for April was down 58% as compared to March 2020.  Only 277 units were sold against  660 units in March.

    Of these 277 units, a 36% or 102 units are from CCR.

    Experts say the steady sales of units in the CCR is not a surprise because many many affluent buyers are seeing the weak economic outlook (due to COVID) as a good opportunity to grab a good purchase.

    These wealthy buyers are not affected by affordability but they are more concern on long term returns on their property investment.

    These buyers who buy during the pandemic, are opportunistic buyers who are confident of the longer term price growth of their investment after Singapore emerges from recession or out of this COVID downturn.

    The slight dip in prices and the special discounts offered by developers has motivated these wealthy buyers to seek out potential luxury homes to purchase.

    According to URA Realis, the number of luxury projects continued to move units after circuit breaker was implemented. This includes Boulevard 88, Midtown Bay, Van Holland, Kopar at Newton, and Neu in Novena.

    Strong sales for luxury homes is indeed a indicator that despite the pandemic, Singapore remains an attractive investment destination for the wealthy investors and a safe haven to park their funds.

    Foreign Buyers

    Foreign buyers contribute to a large proportion of buyers, 27% in 1st quarter 2020.  And Chinese buyers remained the top foreign group in Q1 2020, followed by Indonesians, Malaysians, and American.

    Chinese buyers have been very active in nearby Asian hot spots like Shanghai, Seoul, Sydney and Singapore.

    Hong Kong used to be a favoured destination for Chinese buyer due to its proximity to mainland China and fewer market restrictions. But recent mass protests have prompted many rich Chinese to consider Singapore as an alternative.

    But recently because of travel restrictions, these Chinese buyers cannot visit Singapore. Their usual practice is to do a final inspection before purchase. Hence foreign buyer has reduced.

    We expect demand from HongKong may flow in.

    Because on May 22, China announced plans to impose a national security law in Hong Kong, sparking mass protests, and prompting US to declare that Hong Kong had lost its autonomy.

    These developments have prompted renewed interest by many Hong Kong residents to seek relocation options or to seek property investment in Singapore.

    According to data from Singapore’s Urban Redevelopment Authority, buyers from HongKong bought 36 non-landed homes in the second half of 2019 after anti-government protests erupted in the city.

    This social unrest in Hong Kong have  cast a positive spotlight on Singapore again to be a good alternative investment destination.

    Local Demand

     Singaporeans continued to make up the bulk of the buyers, accounting for 78% in Q1 2020 and 81% in April 2020.

    During this months of April and May, buyers are getting more receptive to the virtual way of viewing new launch and many sales were made.

    May sales has shown encouraging signs, and it will likely exceed the April figure. This shows demand for property is still very resilient, and buyers are buying into the long term fundamentals of Singapore instead of focussing on the short term uncertainties.

    Many investors are streaming back into the market to pick up some value buys. As shown above, the number of luxury home sales in the Core Central Region (CCR) has been rising over the past few months.

    Those private condos with good location, attractive prices, near MRT or amenities or near to downtown core region will continue to attract investors.

    As mentioned, 573 new transactions were made since April 7, (when circuit breaker started), these transactions are across many postal districts from district 1, 2, 3, 5, 7, 9, 10, 13, 14, 18, 19, 20, 21, 26, 27.  Many RCR and OCR properties were sold during this circuit breaker period.

    Historically, I have seen private property housing sales volume or prices dip during crisis, but demand recovers shortly after in the next few quarters. This presents only a small window of opportunity for buyers to buy a property during a price correction period.

    Many investors who bought new private homes during a crisis downturn and resold them subsequently have made attractive profits .

    A good example is the Global Financial Crisis in 2008. Most people who bought during this financial crisis in 2008 made the highest gross profits as compared to other buyers who bought properties during other periods of time.

    Eg.

    New Launch Clover by the Park in 2008, bought at $750psf or $937,000 for a 1249sf 3Bedroom. Now they can sell at $1,800,000 or $1440 psf. That is a gain of $690psf almost 90% profit.

    During this COVID stage, we expect developers to continue to sell their outstanding stock and take a measured approach to land acquisition.

    With most of the past enbloc properties already launch, we will see the number of new project launches to decline after 2020.

    New government land sales have also been fewer so not many new projects will be launch too.

    Expected Completion of Pte Resi Properties - Singapore property remains resilient

    With fewer private homes slated for completion after 2023, we predict that prices and rents of private homes will likely remain strong in the long term.

    We believe the housing market in Singapore is stable due to sound and sustainable housing policies, which has ensured continued affordability.

    Since 2010, Singapore has introduced numerous cooling measures to prevent home prices from rising to unsustainable levels and ensure affordability for the median household.

    The government has also set out to increase housing supply with government land sales for private condos as well as increase the Build To Order (BTO) supply.

    Singapore’s housing policy has addressed both demand and supply issues to prevent prices from increasing too rapidly.

    We see there is limited downside for the Singapore residential market as prices are affordable and the government will continue to track prices against income growth.

    So far, I have not seen many homeowners defaulting on mortgages because the past cooling measures such as TDSR has made most homeowners prudent in their mortgage loans. Their housing loans were capped by the borrowers gross monthly income, hence not many had overstretch their funds.

    In addition, the recent government budget announcement also offered help to these homeowners. They can apply to defer their principal sum or interest payments on their mortgages.

    I must also look at the rental market to establish the resilience of the Singapore property market.

    RENTAL MARKET

    Investors who are involved in Singapore real estate have long term view of their property investment.

    Singapore is still a safe haven for this investors despite the current economic slowdown.

    Our strong basic fundamentals have attracted foreign investors all these years, our ease of doing business here, the transparency, safety and political stability of the country will remain unchanged.

    Singapore’s private properties have yielded positive capital appreciation over the past years.

    Based on URA’s price index, the prices of properties have risen across all market segments. It has also undergone and improve after all the crises including SARS, the Asian financial crisis and the global financial crisis.

    So it is still a good market for those who intend to buy properties for rental income.  After many years of poor rentals, the trend was reversed in 2019 and the rental market has seen higher transaction volumes and occupancy rates.

    Despite the pandemic, rental demand is still strong, with more leasing transactions and rental renewals recorded in Q1 2020.

    Rental Transaction Volume -

    Conclusion

    Many economists have different views of the global economic outlook. Although there is a growing consensus of a protracted slowdown, with recovery gradual in the months ahead, all this still depends on how fast all the countries reopen their economies.

    For the real estate market in Singapore, however, buying activities may rebound in some locations when circuit breaker measures are halted.

    And after travel restrictions are lifted, some foreign buyers may return.

    Over the last past two years, Chinese buyers have formed the biggest foreign buyer group with 2,637 or 7.3 per cent for  non-landed private properties. Followed by Malaysians at 4.3 per cent, Indians at 1.9 per cent and Indonesians at 1.6 per cent.

    I expect more Chinese buyers will return especially those who want to divert their funds overseas as their currency continues to depreciate.

    With this foreign buyers returning and the improved local demand from both upgraders and wealthy buyers, I expect to see Singapore’s property market to remain resilient in the months ahead.

    If you want to know more about how Singapore Property market will stay resilient in future, please do contact me for a online zoom discussion.

    Schedule time with me

    Written by Rick Fok

    This image has an empty alt attribute; its file name is Virtual-Property-Tour-image-262x300.jpg

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

    Other Articles to read

    How will COVID-19 impact Singapore’s property market and will it affect the property price.

    Which is better? To engage an Exclusive agent or Multiple agents?

    Howmuch does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

    0

    My Journey into Real Estate

    Now, in this COVID 19 period, being a real estate salesperson is really very demanding. 

    Not only must you be good at your work (know all about the projects / resale matters); you must also be proficient in Info-Technology.

    Using zoom for virtual meetings with clients, doing virtual showroom tours with clients, and using zoom to show a resale unit. And salesperson must use Facebook, Instagram, LinkedIn, and even Pinterest to get more attention to their websites or what they are promoting now.

    During COVID period, when no face to face meeting with clients is allowed, so salespersons have been very busy with WHATSAPP clients, updating clients, as well as Zoom video conferencing.

    All these are needed from a real estate salesperson now.

    My first photo - My Journey into Real Estate
    My first photo in real estate

    How I started.

    I,  Rick Fok, am now a real estate salesperson with OrangeTee & Tie. 

    My love for real estate started way back in end of 2009.  At that time, I would find out all relevant info online to see how to be a real estate agent.

    I found out that you need to get a licence before you can practice any form of estate agency work.

    So I explore the option of being a runner to an existing agent so as to learn on the job.  But then, I was still working in MediaCorp as an Account Director, who is in charge of advertising sales.

    This makes it very difficult to mix the two roles.  Hence I took on part-time property agent role after I graduated from OrangeTee T-Off session and took a CES exam.

    My interest in real estate work drove me to try out property sales.  I have been a sales professional for more than 20 years, so I believe real estate work should not be any problem. 

    I still can remember my peers telling me real estate is such a big pie / big market. 

    As I drive along the road, my peer will tell me , “look on both sides of the road, there are so many HDB flats,  there are so many prospect who want to sell their units” such a big potential market available. 

    I was totally taken by that comment.

    I deeply remember my first HDB deal as a part time agent, because my up-line is very remote, always MIA, missing in action, I find it hard to reach him to ask questions. 

    HDB transactions at that time are very cumbersome, and require much more procedures and checks.  I had no choice but to turn to HDB Resale Portal online to look for answers and to get instructions on step by step approach…

    HDB logo - My Journey into Real Estate

    Really if HDB website is not available, I really cannot perform the HDB transaction.

    My struggles in my journey

    Then when I first started to do new project initial launch, there were so many activities to do; such as hyping, door knocking and roadshows. 

    I participated in the hyping activities and it was disastrous.  I stumbled when I tried to approach strangers on the streets to promote the new launch.

    After much practice,  I got more courageous and subsequently, I even tried to stop turning cars to pass a flyer.

    Those were my struggles as a part time agent, without much guidance from my up-line.  Through this I realized that it is important to get a more involved and supportive up-line.

    Through trial and error methods, I grew to become more daring, more vocal, and much more knowledgeable in real estate matters. 

    When I finally decided to jump from doing part time to full time real estate work,  I joined another real estate agency SAVILLS, to learn more and to earn more from project sales.

    New Launch condo - My Journey into Real Estate
    My focus is in new launch projects

    In Savills, I changed my focus, and concentrated my efforts in new property launches besides my resale activities.

    Because of my love for new projects, seeing the beauty of showroom, and understanding the process and results of new condos after TOP, this motivated me to focus on this area. 

    I am also motivated by this quote, Ella Jane Fitzgerald.

    “Just don’t give up trying what you really want to do. Where there is love and inspiration, I don’t think you can go wrong”

    It is here, that I started to improve myself with more skills set needed to do project sales.

    I started out learning website creation from Google. I would say, it was the most interesting thing that I have ventured into cyberspace.

    Internet website - My Journey into Real Estate
    Website creation & social marketing

    Going through YouTube tutorials on WORDPRESS, a platform for website creation was very exciting.

    I had to use 2 computers to try and learn and do at the same time.  One computer is on YouTube and another is in WordPress formatting so that I can practice together.

    Initially, when I place my website into Google Ads, I managed to secure several deals and made some good profits.

    At that time, competition was not strong, as many agents are still not into Google Ads web marketing.

    But gradually, it became so expensive; I remember I had to place a $15 bid for one click for D’Leedon launch, that finally slow me down in my pursuit of website marketing.

    I also attended several courses on Marketing in the Digital era, and learnt about FACEBOOK marketing and how to do Facebook business pages and how to do sponsored ads.

    I bought a SMS modem from BlueOcean that allows me to send sms broadcast to many numbers. That way, I could send out new launch marketing info to my list of prospects which I have accumulated from the years of using Proptools FSBO.

    I also purchased software from the web, SENDBLASTER that will allow me to do mass email broadcast to the list of prospects as well as property agents.

    Linkedin and Pinterest - My Journey into Real Estate

    I also took on digital platforms such as LinkedIn and Pinterest, and created some accounts for use.

    Although I cannot make full use of these platforms because of ignorance, so I only managed to use it for listings.

    In Singapore, property portals has always been the forefront of any property agents efforts to go digital. 

    Property Guru and iProperty has always been leading the race. Only recently many more big players has joined in SPH’s SRX, 99.co, Malaysia’s Media giant’s Edgeprop,

    Because Property Guru has been increasing price at exorbitant rate, all these new players are busy courting many agents to subscribe to alternative portal. 

    These made portal subscription very costly now, because agents are trying to cover as much ground as possible by having more portals.

    It is during this venture into the digital world that I started to incur a lot more costs to my real estate business.

    My google ads campaign can cost thousands of dollars plus my Facebook ads can also amount in thousands of dollars, this definitely made a huge impact to my expenses.

    And it does affect my profitability, because sales didn’t pick up as much to cover all my expenses.

    It’s how you deal with failure that determines how you achieve success. –David Feherty

    So I tried to do SEO, to get organic search results, this will minimize my ads expenses.  But it is a very tiring, time consuming thing, and it is very complex.

    I need to read so much online to do some simple SEO skills. This extra effort really slows me down in my work.

    Now, I have reduce my expenses by not using Google Ads or FB ads, in my digital marketing, only relying on traditional SMS and email blasting methods and SEO methods.

    In these present times of the COVID pandemic, digital skills is such a necessity.  Because we are unable to meet customers on a face to face environment, all agents have to resort to digital ZOOM, Google Meet, WhatsApp Video, to do digital meeting.

    Forms of communictions during covid - My Journey into Real Estate

    And in video conferencing, we also need to have digital presentation with Electronic Direct Mailers, PowerPoint slides as well as video all prepared.

    So going digital is still the way to go for real estate agents and I believe I am midway through it, and should be able to cope with the new changes.

    Presently, with so many things that I cannot do, or are restricted to do, I can only go back to basics to call and contact my previous owners and landlords, and to mail out letters for sourcing, and to make my website better.

    And to continue with basic SMS messages and electronic mails.

    Recently, in my digital class at Orange Tee, I have learned some basic SEO tricks, and also focus on building up a good blog site to attract traffic and searches to your site.

    All these did attract some good leads for enquiries.

    I am still working at a breakthrough in my real estate work, instead of doing all these work continuously; I need to find a more effective way to source for new leads.

    Quotes from these famous people do inspire me to continue on.

    1. “Stop chasing the money and start chasing the passion.” — Tony Hsieh
    2. “People who succeed have momentum. The more they succeed, the more they want to succeed, and the more they find a way to succeed” – Tony Robbin
    3. “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” — Colin Powell

    So, I have fine tune my sales approach more to helping clients fulfil their needs, instead of chasing after the commission for the deal. This requires me to make more preparation and focus on what I learnt from past mistakes.

    Conclusion

    I love real estate work and the possible fulfilment it can bring, and I hope to be able to sustain this momentum and continue till I retire at 75.

    I believe that in every transaction, I have made someone very satisfied with their action (buy or sell), and have added value to the outcome.

    This gives me a great sense of fulfilment.  It is this satisfaction that will continue to drive me in real estate work.

    Earning more from a business deal is important but it should not be the key factor that drives my action, hence I will not force a deal for a higher commission job and ignore the benefits of a better value job.

    Making my customer satisfied and getting the best value for each transaction will always be my goal.

    If you do have any needs for advice on real estate matters, do give me a call, and I will be able to share and discuss with you the various options available to you. Thank you.

    Schedule time with me

    Written by Rick Fok

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

    Other Articles to read

    How will COVID-19 impact Singapore’s property market and will it affect the property price.

    Which is better? To engage an Exclusive agent or Multiple agents?

    Howmuch does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

    0

    What is refinancing ? It is to get a new mortgage to replace the original mortgage.

    Refinancing is basically done to allow a borrower to get a better interest rate or maybe a longer term.

    In refinancing, the original loan is first paid off, then allowing the second loan to be created.

    Especially for borrowers with a good credit history, it is easier for refinancing to convert maybe a variable rate mortgage into a fixed rate mortgage at a lower interest rate.

    But for borrowers who had bad credit or too much debt, refinancing may be more difficult and more risky.

    In a difficult economic climate or now in COVID 19 stage, if you are in financial situations,  it can be difficult to make the payments or service your existing home mortgage.

    refinancing during crisis

    Then it is the right time to do refinancing.  The danger in refinancing is your ignorance, you ought to have the right advice or knowledge to do it, if not it might even hurt you more.

    Most people refinance their homes when they have equity on their home. This means there is a difference between the value worth of their home and the amount owed to the mortgage.

    Some things to do before you refinance your mortgage

    • Know your home equity value, this can be obtain by subtracting your mortgage balance from your home’s current market value.
    • Calculate your debt-to-income ratio. This can be calculated with your total debt payments divided by your total income. In Singapore,  TDSR limits you to 60% of your gross income.
    • Compare rates and terms. Besides the interest rates, it is very important to consider the loan duration, because a long payback period will minimize your monthly payments.
    • Reduce refinancing costs.  You need to know the cost in refinancing in order to compare the offer packages.

    An important point to check before refinancing, is to look at the interest rate outlook. Is it going to go down further or it will climb up again soon.

    Property owners who believe that rates will drop further should opt for floating interest rates or SIBOR pegged interest packages. Even if interest rates start to increase, it will take some time, and usually it will cross the usual 2 years lock-in period.

    For those who prefer a fixed rate home loan, the current fixed rate is at 1.55% for a 2 year fix rate package, this is very attractive.

    ocbc refinance rate
    REFINANCING
    Refinancing Options

    What Are The Advantages Of Refinancing?

    Main advantage of course is reducing interest rate. This will help those who want to use the savings into some other form of investment.

    It allow homeowners to stretch their current loan tenure. By refinancing you can stretch your loan tenure, although it will increase the overall cost (due to interest) but it will decrease your monthly instalment / repayment of loan.

    Homeowners can refinance for different reasons including:

    1. Cash out home equity – Homeowners can extract equity from the homes to pay for home repairs or major home improvements or for other purchases.
    • Change loan duration: This is taken to shorten duration of repayment in order to pay less interest over the life of the loan. Or to lengthen the duration of repayments to lower monthly payments.
    • Lower rates: Especially now when our SIBOR is only 0.63%, declining rates is good for homeowners to refinance so as to lower their monthly loan payments.
    Falling interest rates - What is ReFinancing,  how refinancing your mortgage loan can increase your cash flow.
    • Change loan structure: For borrowers who used variable SIBOR rates to make initial payments more affordable could now shift to a fixed-rate loan after they built up equity & have progressed along their career path.

    Example :

    If your current home loan package is pegged at 2.5% interest. You might want to consider doing a refinancing.

    By refinancing, you can reduce the monthly repayment amount outlay with a lower interest rate. You could achieve this by changing to another bank or simply by revising to a new loan package with the current bank.

    Eg. Mr Lim has an outstanding loan of $1,000,000. Has 20 years loan remaining and his current interest rate is 2.50%. He is now paying $5,300 per month.

    If he does refinancing at a loan package of 1.62% for 3 years, then his new monthly repayment will drop to $4,880 per month, that is $500 savings per month or $6000 savings a year or $18,000 savings over 3 years.

    Saving from refinancing - What is ReFinancing,  how refinancing your mortgage loan can increase your cash flow.
    Savings from refinancing

    By doing so, you could save some money in the future, it could be hundreds or even thousand depending on your loan amount.

    Usually, under normal circumstances, most homeowners can start to look for refinancing after 3 years. Because for most loan packages, the interest rates will increase after 3 years, or there may be some lock in periods stated in the contract.

    Singapore InterBank Offered Rate (SIBOR) and Swap Offered Rate (SOR) rates, these will determine the interest rates for most home loans.

    The SIBOR and SOR rates are closely monitored by The Monetary Authority of Singapore (MAS),  and currently, the SIBOR is at all time low 0.63%, this makes refinancing very attractive.

    When you are considering the refinance loan package, you must also consider the new lock-in period as well as other costs such as legal fees, valuations .

    You can refinance at any time but subject to rules on your existing loan mortgage.

    Is there any lock in period in previous contract? If there is, then you have to hold on till the lock-in expires before changing bank or loan package.  This is because if you execute during a lock-in period, there will be a penalty fee of about 1.5% on your outstanding loan amount, this can be quite hefty.

    Lock in period - What is ReFinancing,  how refinancing your mortgage loan can increase your cash flow.

    Do note that you need to give at least 3 months notice to your existing financing bank before you can refinance with another bank.

    As mentioned before, the other costs involved in refinance could be

    • Legal fees , about $2,000 to $3,000
    • Valuation fees , could range from $250 to $1,000 Pte or even higher depending on type of private housing.
    • Prepayment penalties for those who did refinancing during lock in periods

    Good news is that some of these cost may be subsidized by the new bank if the refinance amount is big, maybe above $500,000.  But such subsidies will also include a clawback condition. This is to prevent you from refinancing again with another bank without a penalty fee. It allows the bank to claw back the subsidies that was given to you previously.

    Another cost to note is the cancellation fee. This fee is impose for uncompleted or BUC properties. Because for BUC properties, the home loan amount is disbursed in stages according to progressive payment schedule, if you cancel contract, the cancellation fee is about 1.5% of the loan amount that has yet to be disbursed.

    By the way, if the new loan package has a lock in period, it is important for homeowners to note that there will be penalty cost if you are to sell the property within the next few years after getting the new loan.

    What Are The Risks of ReFinancing ?

    One of the risks of refinancing, is the possible penalties you may incur as a result of paying down your existing mortgage.

    In most mortgages, there is a condition that allows the mortgage company to charge a fee for early repayment of mortgage. This fee can amount to thousands of dollars so it is important to note that the benefits of refinancing covers the cost of penalty as well as the other additional fees such legal fees and valuation fees.

    Refinancing vs Repricing

    Is Refinancing The Same As Repricing? No, simply defined, refinancing involves a switch to another loan package offered by another bank. While repricing means you are taking  a different loan package within the same bank.

    Refinancing is simply defined as switching your mortgage loan from one bank to another.  Refinancing involves higher costs. There will be legal fees and costs of valuation, although many banks will subsidise these legal and valuation fees.

    Refinancing takes a longer time and it is a more tedious. You have to submit your income and debt documents, to meet the Total Debt Servicing Ratio (TDSR).

    Repricing is defined as switching your mortgage loan package within the same bank.  Repricing involves lesser costs. There is usually only a fixed conversion/admin fee which could range from $200 to $800.

    Many mortgage loan packages come with a one-time repricing option, so that you can change without incurring much cost.

    Types of mortgage rates typically offered by the banks?

    Housing loan packages are very dynamic, banks will always try to create attractive packages to match the demands of consumers.

    Usually a housing loan package will start with a super low rate during the first two to three years, then followed by a jump in interest rates in the subsequent years.

    Mortgage Rates - What is ReFinancing,  how refinancing your mortgage loan can increase your cash flow.

    Fixed Rates

    Fixed rate, this is typically between 1 to 5 years.

    Property owners who like stability and don’t like to monitor rates will go for this. Fixed rates is usually slightly higher than floating rates, by around 0.3% interest.

    For BUC projects (Building Under Construction), banks usually do not offer fixed rates.  Buyers can only use SIBOR pegged rates package before switching to fixed rates after their properties are completed.

    Board Rate

    Before bank rates are pegged to SIBOR or FHR, the bank use their own Board Rate. This rate is fixed by banks and we do not understand how this figure is derived.

    SIBOR Pegged Rate

    Now many mortgage loan packages are pegged to the SIBOR.

    The interest rate for these packages are made up of

    SIBOR + Spread = Interest Rates

    The spread is a percentage determined by banks and it is added on to the SIBOR rates to form the interest rate which property owners pay.

    Example Current Scenario .  SIBOR is 0.63% ,  Spread is 0.80%

    Then the interest rates charge to customer will be 1.43%

    It has been observed that historically when the SIBOR is lower, the spread will be higher.

    HOME EQUITY or TERM LOAN

    Another way to get cash out of your private property is by means of a home equity loan.  Home Equity loan or a term loan uses the equity of property as collateral.

    Home equity loan - What is ReFinancing,  how refinancing your mortgage loan can increase your cash flow.

    If your property has appreciated in value , you will be able to borrow money on the difference between the market value of your property and your existing loan.

    In Singapore, only private property homeowners can get Home Equity Loan, this is not applicable to HDB property owners.

    And the repayment of this home equity loan can only be done in cash, CPF is not allowed.

    How much can you draw out from a Home Equity Loan?

    As a general rule , you can use this calculation

    Term Loan / Home Equity Loan Amount  = 75% of Property Value – Outstanding Loan Amount – CPF Monies Used

    By not allowing you to borrow more than 75% of your property value, the banks have a buffer against your property should your property value drop below the amount loaned.

    The banks also factor in your CPF usage (with accrued interest) because this must be return to CPF account after a sale. This will bring your total eligible loan amount lower.

    The maximum loan tenure for Home Equity loan is 75 years minus your current age or not more than 35 years whichever is shorter.

    If you’re borrowing more than 50% of your property’s value, then Total Debt Servicing Ratio (TDSR) would apply .

    To get cash out of your property with a home equity loan is a good way to get the capital you need for business or other investment purpose or to handle some financial emergency.

    Home equity loan is sometimes confused with term loan. The difference between the two is that home equity loan allows you to draw money out of a fully paid property while term loan only allows you to draw from a property that has not been fully paid.

    Therefore, if the value of your property has appreciated a lot, banks will be more willing to lend you more money because your home will be used as collateral for the loan.

    Example :

    Tom purchase a property in 2008 for $800,000, now it is worth $1,400,000.

    Assuming balance loan is $400,000 and $200,000 CPF was used.

    With home equity, you could borrow about 75% less remaining loan less CPF used.  You could get as much as $450,000 in loan. A good sum for investment or for other use.

    Good news, in view of the difficulties brought about by the COVID 19 pandemic, the Singapore government has issued this new rules

    • Borrowers are not subject to TDSR and LTV limits when they refinance their loans for owner-occupied residential properties.
    • Borrowers who take up home equity loans secured on their existing private residential or non-residential properties are not subject to TDSR if the LTV ratio does not exceed 50%

    Now is the best possible time for you to grab a good deal from banks, to refinance your housing loan because of the current pandemic situation happening around the world.

    Conclusion

    So do you say Yes or No to Refinancing?  I think the most important step will be to calculate how much is your new monthly instalment after taking a new package and compare it to your current monthly instalment, to see how much will you be able to save?

    Or to see if extending the loan tenure, how much money you can save by paying less.

    If this savings outweigh all the costs involved in refinancing, then it would be wise decision to save money.

    With so many different types of rates and different packages offered by different banks, you may be overwhelmed and do not know how to proceed.

    Do give me a call , 91092177, and I could assist you to work with the many bankers that have helped me in many refinancing deals.

    Do fixed a e-appointment with me now.

    Schedule time with me

    Written by Rick Fok

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

    If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

    Other Articles to read

    How will COVID-19 impact Singapore’s property market and will it affect the property price.

    Which is better? To engage an Exclusive agent or Multiple agents?

    Howmuch does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

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    Client :  Alvin and Doreen

    Current Residence :  Florence Regency, Executive Masionette, size 1647 sqft, this former HUDC was enbloc and my client was awarded $1.82 million.

    I met up with them shortly after the enbloc was announced,  they have about 9 months to 1 year to move out of the apartment.

    They are unsure of what to do next, whether to move into HDB, downgrade and keep the money. Or buy a condo or buy 2 properties with one for investment.

    I assessed their financial commitment, the Florence Regency unit was fully paid, so they can keep the full enbloc money.  Currently they do not own any other properties, so they can buy as first time house owner for their next property purchase.  No major debts to repay besides ongoing credit card bills and car instalments.

    A look into their income, to check income affordability,  Alvin, 60 is self employed, yearly income approximately $80,000 and Doreen, 53 is a housewife. This makes property financing a challenge because he can only get 5 years (till 65) or 15 years (till 75).

    However, they will have sufficient funds from the enbloc to purchase a new property up to $1.8 million

    Because they are unsure of where they would like to move into, I recommended several areas surrounding Hougang, their familiar territory. 

    Starting with HDB maisonettes, we search and viewed several units in the Serangoon/Hougang area.  But these maisonettes are quite old, about 33 years old eg. In Hougang, 1988 maisonette cost $745,000 or in Serangoon a 1985 Maisonette costs $800,000. Buyer is worried that old properties may have resale issue.

    Buyer also suggested HDB DBSS in Boon Keng, CityView@Boon Keng, I showed them both a 4 room, 2011 unit cost $840,000 and a 5room, 2011 unit that cost $1,035,000.  He backed out after realizing prices there is so high.

    I suggested that they consider buying a new launch condo, and rent a place in the interim period for 2 to 3 years. 

    I explained the benefits that buying new launch is better than resale properties

    • New launch is more profitable than resale
      • New launch buyers enjoy first mover advantage
      • New launch is more affordable, smaller size
      • New launch has better facilities and design
      • New Launch are easier to rent out
      • New launch has a lower monthly maintenance cost

    I brought them to preview The Tre Ver, 3 bedroom, 1098sqft, at $1,740,000. and highlighted this project’s remarkable ID finishing, facilities and landscaping.

    I also showed them other project to consider

    • Garden Residences, 3bedroom+study 1001sqft, at $1,631,000
    • Jadescape 3bedroom 1012 sqft at $1,749,694

    Client, Alvin consider this option carefully, he like the new condo facilities and landscaping but finally decided against it because rental for 3 years might cost him $90,000 for a HDB 5i type flat.

    Finally,  I advised him to consider resale condominium since he is hesitant on new launch and find HDB overprice.

    But I emphasized on certain pointers that he (buyer) should consider when selecting resale properties.

    1. Age of property –  Older properties need more repairs and maintenance, usually older unit will have pipes and wiring that is very old and may not be enough to fit your needs, it may require more repairs work. 
    2. Less remaining years – Older property have shorter balance shelf life , it will affect the value of the property if you do intend to resell it after a few years.
    3. Condition of the premises, facilities.  Old condos usually have worn out facilities and usually smaller gyms, less function area, less landscaping. May not be as beautiful as the new condos
    4. Maintenance and sunken cost –  Please note the maintenance costs is usually higher for older condos,  Do check on the sunken funds too because the condo façade and facilities may need upgrading and it can cost a lot, and owners have to chip in to upgrade later.

    We went through many areas because buyer do not know where to choose.

    In Hougang –  We showed Kovan Melody (2006), Kovan Residences (2011), Kovan Regency (2016).  Client said the condos are little old for Kovan Melody, although it is the best location.

    In Sengkang

    We viewed – The Quartz (2010) , Esparina Residences (2014), The Luxurie (2015)

    Near Potong Pasir area – 18 Woodsville (2015), Sant Ritz (2016), Sennett Residence (2016)

    Lastly, I decided to show him some very new condos that has just TOP recently, just to re-emphasize my point that you should consider the age of resale condo

    Bartley Residences (2016),  Tre Residences (2018), Kingsford Waterbay (2018). All these condos are near to Hougang.

    Out of all these, viewings , he selected Bartley Residence because  it is relatively new, TOP in 2016, and good size for a 3bedroom, and most importantly, it has a side gate to Bartley MRT station that is just beside the condo.

    I did a check on ownership with INLIS, as well as a bankruptcy check with Ministry of Law https://eservices.mlaw.gov.sg/io/

    Having confirmed all the details, and with the cheque, I submitted an offer for this unit.

    All these were done in a timeline to tie in with the move – out deadline set to all enbloc owners.

    I suggested that they should consider another property to get passive rental income since they are able to finance it with their enbloc money.  But client is conservative and prefer to keep money for retirement.

    Thats how I help this client secured their replacement home after a few months of searching various houses.

    If you need help to search for properties , do give me a call, I would like to help fulfill your needs and requirements of your new home.

    Article contributed by Rick Fok

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs. 

    If you have any queries on this topic or other , please do give Rick a call and he can meet you and discuss this over a cup of coffee.

    Schedule time with me

    www.newlaunchsales.com

    Other Articles to read

    Which is better? To engage an Exclusive agent or Multiple agents?

    How much does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

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    How will COVID-19 impact Singapore’s property market and will it affect the property price.

    Singapore’s residential property prices are set to tumble as a result of the COVID-19 pandemic. According to some analyst, prices are expected to correct by as much as 8 per cent this year, because of weak demand and a poor economic outlook.

    Prices could go lower if this coronavirus triggered economic slump worsens further, with more job uncertainties or another extension of the circuit breaker.

    Private home prices have already fallen, but industry players and experts believe that demand is now slightly muted until the end of the Covid-19 pandemic, and it will recover once normalcy is restored.

    On April 24, Urban Redevelopment Authority (URA) release results for first quarter 2020 (before circuit breaker measures were imposed), it showed that private residential prices dropped 1 per cent from the previous quarter. 

    Year on year, private residential prices are still up 2.4 per cent against last year March 2019.

    This is the first reversal or downturn after three consecutive quarters of price increase, and we expect to see prices trending lower as Singapore heads into a recession caused by this pandemic.

    Developers sold lesser units, 32.4% lower than in 976 in February. Or about 660 homes, excluding executive condominiums.

    According to a report by Knight Frank,  there were 1,081 home sales in March, that is 33% down from March 2019. Especially for high end properties, or those in the range of S$3,000 per sq ft or more,  there were only 11 sales, down from 53 a year before.

    Most of these high end properties are purchased by foreign buyers. Buyers from mainland China and Indonesia are crucial to Singapore’s top-end property market.  Usually these buyers will fly in with families to take a look at the area and the buildings before purchase. But with the current travel ban in circuit breaker period,  they were not able to come to view.

    We expect new sales volume to be worse off in April 2020 with circuit breaker measures  eg. show flats closed and viewings postponed.   And amid this situation, many buyer have become more cautious , more price sensitive and will only be opportunistic only when good deal arrive.  

    But once Circuit Breaker is over , and the situation stabilises, new homes sales will likely pick up when show flats reopen and house viewings can resume.

    Will COVID-19 cause our property market to collapse,  as it did in the financial crisis in 2008?

    Recessions usually have only a minor effect on the housing market, the main factors driving demand to property market is whether the inventory is low or is mortgage rates low, ultimately it is demand that sets prices.  The COVID-19 effect is only making life and markets not normal.

    Home sales dropped dramatically during an outbreak, home prices stayed about the same or suffered a slight decrease. Because it’s harder for prices to change when there are only a few transactions.

    This COVID-19 pandemic and the impending recession have caused many homebuyers to tighten their budgets, or delay their purchases. Also the drop in foreign buyers, especially from China and Indonesian, these foreign buyers constitute 20 per cent share of non-landed private properties purchases last year.

    In the study of past pandemics eg. SARS, it has shown that it only put the housing market on a pause mode. Home prices don’t fall that much, but COVID-19 may be different because of its wide economic fallout cause to the GLOBAL economy.

    There are some fundamental differences between what happened in Sars and now with COVID-19.

    1. First, prices before SARS was at a high base.
    2. Before SARS outbreak there was a lot more debt in the market, thus causing fire sales during outbreak.
    3. COVID-19 is global. Means more affecting elements to consider.

    Coronavirus broke the UK property market, will it break Singapore property market?

    Lets look at how COVID-19 affects our market here.

    1. Viewing are almost impossible to conduct so it leads to a slowdown in sales.

    As most agents are using technology or digital platform such as Matterport to conduct virtual viewing, it may not be as convincing as realtime showroom previews.  But such virtual viewings do get buyers to get hooked onto a property and it may help them make fast decisions once circuit breaker measures are lifted and they can inspect unit in person.

    2. Valuations of property is difficult to get

    All resale property need a valuation report to secure loans. Especially older properties need new valuation reports as most of the pre-existing valuations are dated.  Loan quantum or 75% of asking price, is pegged to the valuation of the old property, and without it, banks can’t work out how much they can lend you.

    For new condo developments (that includes BTO flats bought directly from HDB), the banks will generally accept the developer’s price as fair value. So no valuation report is needed.

    3. No foreigners due to Travel ban in circuit breaker

    As mentioned, high end properties are very dependent on foreign buyers, especially Chinese buyers. The travel bans are just getting in the way, and preventing them from coming to Singapore.

    4. Banks might lower the loan quantum if worse continues.

    Singapore has already implemented in the cooling measures many restrictions on loan and affordability, eg. LTV, TDSR. to prevent overleveraging.

    Our loan-to-value (LTV) ratios is now capped at 75%  for first property loan, and lower at 55% if there are existing outstanding home loans.

    Total Debt Servicing Ratio (TDSR), has kept total loan repayments to below 60% of borrower’s income thus ensuring that buyers are prudent in their finance planning when making property purchase.

    5. Buyers pull out of deal at the last minute as they fear commitment to a mortgage.

    No proof this is happening yet, because there is no proper records of why buyer pull out. (could be other reasons). So we cannot say buyers back out because of COVID-19.

    Most likely case for backout now especially for upgraders is that they fear retrenchment or loss of job or they are put on NO PAY leave.

    6. A Stop in the construction of new properties

    COVID-19 and the circuit breaker has put a stop to all construction activities. Also, many construction projects are facing supply shocks, eg. Prefab material are now not able to come in from Johor Baru.

    Labour shortage is another factor, as many workers , especially Chinese were previously not allowed back in Singapore because of COVID-19 in China.  And now with the high number of infections amongst foreign workers staying in dormitories, this will affect the supply when circuit breaker is over.

    So far, these factors have not pulled down the property market in Singapore, only dampening and restricting its progress.

    Government’s Help to the Property Market

    The Singapore Government has rolled out 3 supplementary budgets to ease the effects of COVID 19.  Among them these are the measures that will help the property market

    SINGAPORE BUDGET
    • Defer Repayment of Residential Property Loans – To cope with mortgage repayments timeline, Individuals can apply for deferment of property loans for either (i) principal repayment or (ii) both principal and interest repayments up to 31 December 2020. Interest will accrue on the outstanding loan principal. But If interest payments are also deferred, then no additional interest will be charged on the deferred interest payments. 
    • Borrowers can refinance without TDSR – Borrowers who want to refinance their loans for owner-occupied residential properties are not subject to TDSR and LTV limits. This will help borrowers with fixed rate mortgage packages that are out of the lock-in period who want to refinance their loans to obtain a lower interest rate.
    • Property Tax Rebates for Non-Residential Properties.- This rebate is intended to help businesses deal with the impact from COVID-19. All qualifying non-residential properties (“qualifying properties”) will be granted property tax rebate for the period of 1 Jan 2020 to 31 Dec 2020. And all property owners have to pass on to their tenants the full amount of property tax rebate received for each property tax account
    • Disposal of first property is extended by 6 months – Singaporean Married couples is now given one year lead time to sell their first matrimonial home to qualify for remission of additional buyer’s stamp duty (ABSD) for their second property
    • To Help with rental costs, the government will increase rental waiver for industrial, office and agricultural tenants of government agencies to 1 month.

    As Singapore interest rates are track to US interest rates, all property owners are enjoying the lower SIBOR rates here, many are either re-financing their homes or using this low rates for investment.

    On top of that we are aware that US has started QE4, this mass printing of money devalues the US dollar and bring along low interest rates.

    DEVELOPERS’ ACTION

    It was reported in the newspaper recently that half of developers likely to cut prices. Because sentiments have dived, these developers are likely to lower the selling prices of their next new launch.

    Rental market is also badly affected, with many anticipating that the occupancy rate to decline by 2 to 5 per cent.

    Developers will also either extend project completion time or postpone new launches to reduce the impact.

    In fact they are now petitioning to the authorities to ease the curbs.

    With constructions taking 3-4 years to complete, all the enbloc of 2017/2018 and GLS supply will see completions only in 2022-2023.  And most developers have up to 2022 to 2023 to completely sell out their projects, that means another 2 – 3 years of time.

    ABSD TAX

    There were also multiple calls by developers to ease the 5 years ABSD remission timeline for building and selling projects which otherwise would see them slapped with additional costs for their developments thus increasing their costs.

    We also can expect to see some developers (especially those who have not accumulated much land bank in 2017/18) to start their land banking initiatives between 2021-2022 ?     

    If that is true, then we can foretell it might be the next enbloc wave.

    FUTURE RECOVERY

    This are the likely scenarios that could unfold in this COVID situation

    1) Best case: V-shaped recovery 

    Covid-19 is controlled within the next 2 to 3 months with low new cases in Singapore and worldwide.  If this scenario happens we anticipate that investors and home-buyers will resume their property hunting activity in Singapore

    2) Worst case: U-shaped recovery

    If Covid-19 lingers on for an extended long term, and WHO didn’t reduce the pandemic status.  It could pose many problems starting with prolong disruptions in production and logistics supply chains, stopping the construction of property.

    Manufacturing activity if stopped for too long will in turn disrupt supply chain.

    All these industries, Manufacturing, Tourism, Retail, has an impact on economy which in turns affect the demand for industrial & commercial property space.

    Private residential sales performance will also suffer with poor economic outlook.

    Property sector will also influence other areas, eg. The financial sector, which does primarily mortgages and insurance, as well as other professions like lawyers, surveryors, valuers, etc

    Singapore has become limelight after this COVID-19 experience, this will attract many to consider staying in Singapore.  Many High-net-worth individuals from around the world may consider to invest here or migrate here once the storm is over.

    A report by by Morgan Stanley Research shows that HDB upgraders form 46% of private home sales.

    According to a report by DBS bank, it was reported that there will be about 20,000 HDB units that will attained their minimum occupation period (MOP) in year 2020.

    We can expect to have 17,000 to 19,000 units of flats to reach MOP annually over the next 10 years.

    This group of owners who attained MOP might upgrade to a condo, which means this group will soak up alot of private property supply.

    We hope with this new demand it will assist the recovery of the property market.

    CONCLUSION :

    Covid 19 has been slowing the property market currently, and many agents and developers have turn to digital and online marketing channels for now.

    These strategies are more effective to reach out to mass audience in the mass-market segment, but for high end markets, on-site showflat experience and dedicated face-to-face consultation are still the most effective means.

    Year 2020 could therefore be an opportunity for property developers, landlords, retailers, office occupiers and industrialists to change from their usual ways of doing business and to revamp and enhance their operations in future for long-term growth.

    China has open up eversince the lockdown is over, and property sales is very encouraging. The Residential home prices in China rose in March as pent-up demand after a period of lockdown. New-home prices in 70 major cities gained 0.13 per cent in March from February. Whether this slight home-price growth in March is a precursor to a full rebound or not remains to be seen.

    The country’s major developers have achieved better-than-expected online transactions by offering price discounts of between 5 per cent and 10 per cent

    In Singapore, last year there are more auction listings. But there are fewer transactions.  Auction success rate drops despite increase in mortgagee sale listings,  the auction success rate declined to 1.6% in 2019 from 3.8% in 2018.

    This means fewer fire sales

    For Investors who are looking for fire sales during this COVID-19 period will be disappointed, because prices are unlikely to crash the way they did in last recession after the global financial crisis in 2009.

    This is because right now there is no oversupply issues and not much debt in the market.

    If you want to know more about this current market and how you can capitalise on it, do click below to fix an e-appointment to discuss this in detail over ZOOM. I look forward to your appointment date.

    Schedule time with me

    Article contributed by Rick Fok

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs. 

    If you have any queries on this topic or other , please do give Rick a call and we can discuss this over a cup of coffee.

    www.newlaunchsales.com

    Other Articles to read

    Which is better? To engage an Exclusive agent or Multiple agents?

    How much does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

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    Which is better? To engage an Exclusive agent or Multiple agents?

    Many sellers and buyers still prefer to engage the services of a property agent although they can DIY, buy or sell property on their own. This is because many are unfamiliar with the procedures in a property transaction and it can sometimes be complicated and it is also very time consuming.

    which is better? Exclusive or Multiple agents

    The most important thing before appointing your property agent is to check with CEA, Council for Estates Agencies to see if the agent is registered with the council. It is illegal for anyone to carry out real estate work without a valid licence.

    The other important factors to confirm before you appoint the agent include

    1. Commission – You can first discuss the scope of work with your agent and agree on a fair commission rate that commensurate with the amount of work needed. You have to spell out how much commission will you be giving to the agent. This can be done via whatsapp or other forms of writing.

    2. Exclusive or non exclusive  – You have to decide if you want an exclusive or non-exclusive arrangement. It would be best to inform your agent of the arrangement.

    3. Responsibilities of your agents – It is important that you understand the responsibilities of your agents when you engage them.

    4. Conflict of interest situations – There can be possible areas for conflict of interest such as selling the property to agent’s family members, or the agent may be getting some fees from other parties for pushing the unit to them.

    5. Important documents –  Instead of verbal agreement, put everything that is discuss and agreed upon with your agent in writing. This can be documented in the esate agency agreement CEA form. Another form, called Customer’s Particulars Form is also compulsory, it is a government measures to prevent money laundering and to counter terrorism financing in Singapore.

    Using Multiple Agents

    Many sellers think that having multiple agents is better, they thought it means higher chance to promote the property and the property will be sold faster.

    But it does have many disadvantages.

    1.Worse if you have to open the door each time and makes you extremely busy with the schedule, because in case of multiple agents they do not screen the prospect, and will bring anyone to view unit regardless of how potential is the client. Also chances are very high that some of the booking schedules are duplicated by the same prospect arranging with different agents, making you waste trips to open doors.

    2. When unit is sold by multiple agents, there will be a scenario where every agent will try to use a different photo and may vary the price to attract customer. This sends out the wrong message to the buyer. Besides confusing the buyer, it will create a impression that the seller is desperate and may likely accept a lower price. It may likely lower the selling price of your property, as buyers will always refer to the lowest price advertised. It is like a scream of desperation, and this isn’t the message that sellers want to convey.

    Multiple Agent creates confusion

    3. Having many agents posting the same unit for sale, may scare off buyers. Buyers will be asking why are there so many agents trying to sell the same house, is there some underlying issues that they are not aware of.”

    4. With multiple agents, the agent will bring to seller the first offer they receive, which might not be the best offer, and this is because they want to get the offer to the seller fast before another agent does.

    5. Many sellers are not aware of the binding nature of accepting an offer to purchase. This can open the seller up to legal action in the case where multiple agents are marketing one property should the seller accept two offers from two different agents.

    6. Opening up your house for viewing do carry risk. The seller has to ensure that all valuables are secure and kept away. By having multiple agents the risk is higher because not all agents will accompany the buyers to walk around the house, and some agents might not even turn up and ask buyers to view on their own.

    Seller must remember that all buyers are not loyal to their agents, and all agents are actually tapping into the same pool of buyers, and using the same marketing portal like PROPERTYGURU or 99.co to source for buyers. This means having multiple agents do not mean you will get more potential buyers.

    In any sale, you want the buyers to compete to buy unit not the agents competing to get buyers. The agents are not the person who will buy unit, it is the buyers.

    What sellers don’t realise is that most agents will spend more effort and focus their time on sole exclusives and less time and focus on open jobs with multiple agents.

    This is because agents don’t want to spend too much time, money and effort in selling, only to lose the deal to another agent. Agents only earn on commission so they will focus their resources on the most likely outcome, i.e. exclusive deals.

    Most agents in “non exclusive” agreements will not do extras, as they view it as indirectly benefiting their competitors who is selling the same property.

    Use 1 agent on exclusive arrangement

    Selecting an exclusive agreement with one agent will give you the optimum chance of selling your home for the best price in the shortest time without the need to deal with so many different agents, and having so many risks.

    When the agent is a sole representative, he is likely to be in a stronger position to negotiate with other agents (co-broke) or parties in the transaction.

    Usually an exclusive rights agreement is valid for 3 months, after which the seller is free to approach another agent to market the property. 

    So if you prefer to use someone who is more motivated, and devoted to spend time and resource on your property, then giving exclusive right to an agent is the way to go.

    Motivated and committed

    In Singapore, the Council of Estate Agencies (CEA) provides a form, to allow a seller to engage an agent on an exclusive basis. This form Exclusive Estate Agency Agreement authorise only the agent or agency in question to introduce buyers or tenants for your property over a certain period. 

    And during the validity period, you are required to pay the exclusive agent a commission if you enter into any agreement for the sale of your property. The Agreement also states you are not to engage any other property agents while the contract is still in effect.

    If no suitable buyer is found by the end of contract, the seller may choose to renew the Exclusive Estate Agency Agreement.

    Advantages of Exclusive Agent

    Having an exclusive agent means that you only need to deal with one person instead of multiple agents. And having one person gives you these advantages

    • Dedication – The exclusive agent is more dedicated to promote your property because they know they are the only one who can earn the commission from the sale of your property. No need to fear commission may be hijack by other agents.
    • Better marketing – A dedicated agent will likely put in better pictures, stage the property in the best position to be sold with more quality furniture or props. Will use  more sophisticated marketing tools like videos, which could attract more and higher quality buyers.  In some exclusive Agreement, the seller may specify frequency of advertisements and type of ads as a term of contract.
    living room
    • Easier coordination – Less troublesome and less time consuming than having to deal with multiple agents
    • No duplicate listing of your property on the same marketing portal.– All agents use the same marketing portal eg. PropertyGuru, 99.co , so the reach to buyer is the same if you use one agent instead of many agents
    • Better control over the price – Seller can monitor the selling price of one agent easier than to watch out over multiple agents. When you hire too many agents, it is more difficult to control asking price, and seller will run a greater danger with many agents pressuring you to lower your asking price with many lower price offers.

    Most exclusive agents tend to be more committed to selling your property because there is a written certainty of collecting their commission once the deal is closed. And they would pump in additional marketing efforts to make the property stand out from other listings so that you can secure a serious buyer.

    Disadvantage of having one exclusive agent

    1. You are locked in with one agent for better or for worse

    2. You need to pay the agent’s commission even if you sell the property through any other means

    3. When you sign an Exclusive Estate Agency Agreement, you’ll also have to pay your appointed agent commission if you sell your property to someone referred by the said agent within three months AFTER the validity period expires.

    CONCLUSIONS :

    After listing out the pro and cons of both exclusive and multiple agents, we think you have a better idea which is better for you.

    Generally, if you are a new to selling, you might want to consider exclusive agent who will guide you through the sale process due to your lack of experience.

    But if you are a seasoned property seller, you may still prefer to use multiple agents to get more exposure to your property. As you do not need expertise advice from the agent on how to advertise your property.

    Will you consider giving your agent exclusive rights to market the property?

    Based on above points, it may point to a confirmation to use exclusive agent, but we still need to consider the most important point. That is to find someone who is a good agent and it is someone that you trust.

    At the end, this agent must be willing to put time and effort to market your property. Nowadays, most realtor company has establish internal links to help agents.

    Although you sign an exclusive deal with an agent, there will be a system that enable a team to support the agent in his marketing efforts and even connect prospective buyer to your property.

    Eg. In OrangeTee, we have fellow team mates to help you, plus an application call LINK UP to allow fellow OT colleagues to jointly market the property. In this way, the effects of Exclusive agency agreement is greatly amplified.

    In the event that you do not have a good agent to work with on exclusive basis and want to use multiple agents. You should be prudent and selective in the number of agents allowed to market your property and from there find one which is most trustworthy, to use as an exclusive agent.

    If you are still unsure about what to do, you may want to contact me, RICK, for a casual disussion and I could assist you in the process.

    Schedule time with me

    Article by Rick Fok

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 9 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs.  If you have any queries on this topic or other , please do give Rick a call and we can discuss this over a cup of coffee.

    Other Articles to read

    How much does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

     

     

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    HDB FLATS - HDB IS GETTING EXPENSIVE. WHAT CAN I BUY ?
    HDB Flats

    Is HDB still affordable or is it getting too expensive?

    Public housing has played an important role in holding Singapore’s society together.

    Based on 2018 survey, more than 78.7 per cent of resident households live in HDB flats.

    Built-To-Order (BTO) provides new public housing units at concessionary prices to eligible households.  BTO helps to fulfill the needs of low and middle income households. Or those whose household income does not exceed $14,000, it was raised from $12,000 in Sep 2019.

    For Executive Condominium, the income ceiling is also raised  from S$14,000 to S$16,000.

    RESALE APPLICATIONS REGISTERED - HDB IS GETTING EXPENSIVE. WHAT CAN I BUY ?

    HDB MARKET OVERVIEW

    According to URA reports, the number of resale applications in 1st quarter of 2020 dipped slightly (about 7%) against the last 3 quarters. This means there are fewer resale transactions in 1st quarter.

    But the resale property index recorded no change in 1st quarter and last quarter of 2019. It stayed at 131.5

    RESALE PRICE INDEX  - HDB IS GETTING EXPENSIVE. WHAT CAN I BUY ?

    Resale HDB transactions has been trending up since beginning of 2019, also partly because of the new HDB guidelines.

    1. Revised income ceiling for BTO application
    2. Enhanced Housing Grant  EHG.

    Ensuring housing remains affordable has been a key priority for the Singapore Government. By implementing many rules, they regulate the demand and supply of HDB flats. Although HDB is getting more expensive relatively, the government hopes to keep new flats affordable.

    NEW INCOME CEILING

    The income ceiling restriction is effective in filtering off those who do not qualify, and it can allow more targeted household to enjoy this public housing subsidies.

    The income ceiling for HDB has been raised from $12,000 to $14,000 in Sep 2019.

    This income ceiling revision benefitted the Sandwiched group most, because previously they can only buy EC and is kept out of the more affordable BTO market.

    This policy of income ceiling has been applied since 1964 to ensure public housing eligibility is broadbased and adjustments has been made periodically to reflect the changing market conditions.

    Another interesting research by the Department of Statistics, URA Realis and HDB resale data. It show the price-to-annual income ratio of buyers of new or resale HDB.

    The chart shows a healthy level of affordability.  To buy a new BTO or resale,  a household need to save 4 years of income including CPF contributions. And to buy a private non landed property , the buyer needs to save for 7 years.

    Enhanced CPF Housing Grant

    The affordability of HDB is further boosted by the new grant, Enhanced Housing Grant  EHG.

    Previously, grants are given through Additional CPF Houing Grants AHG and Special Housing Grants SHF, and it is given to help families make partial payments in their purchase of new flats.

    These two grants are now replaced by a new Enhanced CPF Housing Grant EHG. This grant is linked to the income of first time applicants families and they range from $5,000 to $80,000.

    The Enhanced CPF Housing Grant or EHG can be used for both new or resale HDB flats, and it places no restrictions on the buyers choice of flat types or its location. Under Enhanced CPF Housing Grant, families can get up to S$80,000 in grants when they buy a new BTO, and up to S$160,000 in all grants when they buy a resale flat in the open market

    To qualify, your income ceiling is cap at $9,000, this is higher than the ceiling cap of AHG ($5000 ) or SHG ($8500). And SHG has restriction to the flat type of 4Room or smaller in non matured estates.

    The new rule ensure that Singaporeans can live comfortably in their homes that can last them for life. Hence, the new rule states that flat buyers can only get the full EHG grant if the flat lease can cover them and their spouses to the age of 95.

    A graphic on the new Enhanced CPF Housing Grant. - HDB IS GETTING EXPENSIVE. WHAT CAN I BUY ?


    BUILD TO ORDER BTO MARKET

    From the supply side, BTO flats comes with concessionary pricing schemes , it is subsidized by the government. The amount of subsidies varies and depends on what flat type, this is to ensure smaller flats buyers will get more subsidies.

    Also, the government has delink the prices of BTO with HDB resale flats in 2011, Now, HDB sets new BTO flat prices based on a simple cost plus basis.

    This is an effort to stabilise the BTO price against the effects of  price volatility in the resale market.

    By doing the supply and demand curbs, HDB aims to keep BTO flat prices affordable.

    National Development Minister Lawrence Wong said more BTO flats will be built in 2020 to meet higher demand of public housing.

    There will be between 16,000 and 17,000 Build-to-Order (BTO) flats in 2020, much more than the 14,600 in 2019.

    BTO NEW LAUNCH IN MAY - HDB IS GETTING EXPENSIVE. WHAT CAN I BUY ?
    BTO NEW LAUNCH  AUGUST - HDB IS GETTING EXPENSIVE. WHAT CAN I BUY ?

    Even with this new BTO units available in the market, it may not dampen the resale HDB market as the government policies have help it, and new private properties have been increasing lately. Among the buyers, many of them are HDB upgraders and they will likely sell their HDB to recover the ABSD paid outfront.

    Hence, the overall HDB market is still well controlled and regulated.

    And property prices of BTO or Resale  HDB is well managed and make affordable to all via grants and supply.

    RESALE HDB MARKET

    The number of HDB resale flats changing hands increased by 2.7% to 23,714 units in 2019 as compared to 23,099 flat units in 2018.

    The cumulative effects of various new policies such as greater flexibility in using CPF to buy older flats, enhanced CPF housing grants, and increased income ceiling, have all proved effective to overcome the concerns around lease depreciation and economic conditions.

    With HDB resale flats, you might get more housing grants than a BTO.

    Eg. If you buy a HDB 4Room BTO in Woodlands it is $212,000 or in Toa Payoh $350,000 ( Feb BTO prices ). But if you buy a resale in Sembawang , $306,000 ( HDB resale Apr 2020),

    • If you are both SC , First Time Applicants earning combine income $7000
    • You get $50,000 from Family Grant
    • EHG, $7000 income gives you a grant of $25,000
    • Proximity Grant if you buy near parents, gives you a grant of $30,000
    • That makes your resale as good as BTO prices. ($306k – 105k= $201k, is better than BTO $212k)
    RPI - HDB IS GETTING EXPENSIVE. WHAT CAN I BUY ?

    For 2020, the resale prices started higher, it saw HDB resale prices

    • increase by 0.5% in January 2020 over December 2019.
    • increase by 0.7% in February 2020 over January 2020
    • decrease by 0.3% in March 2020 over February 2020

    The Housing Board resale market started this year on a promising note with more HDB flats changed hands in January compared with December.

    • Overall, there were 1,920 HDB resale flats sold in Jan, which translates into a 3.3 per cent increase over December,
    • Fewer HDB resale flats changed hands in February as compared with January, and prices also increased by 0.7 per cent.  In total , there were 1,668 HDB resale flats sold in February 2020, it was 13.1 per cent fewer than in January.
    • In March 2020, Housing Board resale prices fell by 0.3 per cent amid the Covid-19 outbreak. But according SRX research, more resale flats were transacted in March, with a 16.8 per cent higher than February. In total, there were 1,948 HDB resale flats sold in March 2020.

    With new LTV rules restricting loan to 75% of price of private property, this 25% cash input can mean a lot to the prospective buyers. But if they buy resale HDB, they can use HDB concessionary loans which can finance 90% of the flat price with remaining 10% using either cash or CPF or both.

    This reduce amounts of cash means a lot, and it may push them to seek for a resale HDB instead of condo , especially if they have tried repeatedly to apply balloting for BTO.

    We expect this lower cash outlay advantage will continue to attract many first time buyers, and upgraders thus keeping demand for HDB resale flats from falling.

    HDB will continue to look expensive especially with so many media news of high price transactions. Million dollar HDB transaction will continue and in fact may increase as many newly built HDB in matured estates are approaching the 5 year MOP.

    Million dollar Pinnacle
    Million Dollar Property – Pinnacle @ Duxton

    A record number of HDB resale flats were sold above $1 million for the whole of 2018,  in total there were 71 units that were sold above $1 million dollars. This is indeed an significant jump from just 2 units in 2014 and 46 units in 2017.

    • The most expensive resale flat in Dec 2019 was a four-room flat at The Pinnacle @ Duxton, which was sold for $1.06 million.
    • The most expensive resale flat that changed hands in January 2020 was an executive apartment unit in Lorong 2 Toa Payoh, which sold for $1.025 million.
    • The most expensive resale flat sold in February 2020 was a five-room type unit in Commonwealth Drive, it was sold for $1.1 million.
    • The most expensive resale flat done in March 2020 was a five-room type unit at The Pinnacle@Duxton,  it was sold for $1.2 million.

    CONCLUSION :

    HDB is still a much controlled and regulated form of public housing.

    Prices of HDB price is always monitored and managed by the Government through various policies or rules implemented.

    HDB will still continue to be affordable ( although it may have risen quite a fair bit ) . It is measured against our income level and hence should still be affordable and within the reach of most Singaporeans.

    To know more about whether you can qualify for HDB grants or what type of HDB resale property suits you, do contact Rick Fok, at 91092177  for a casual discussion.

    Schedule time with me

    Article by Rick Fok

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs.  If you have any queries on this topic or other , please do give Rick a call and he can meet and discuss this over a cup of coffee.

    Other Articles to read

    How much does it cost to upgrade from HDB to condo?

    When should I sell my Executive Condo?

    Is Your HDB an asset ?

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

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    HOW MUCH DOES IT COST TO UPGRADE FROM HDB TO CONDO ?

    It is the dream of so many Singaporeans to own a condo.

    Maybe it is to upgrade their social class or to enjoy the facilities provided in a condo, or to be in the plans of future capital gain, these motives have encouraged many to join in the process of upgrading from a HDB to a condo.

    To start, maybe you have saved for a long time, and is now ready to buy a condo. But do you know how much it cost to upgrade from HDB to condo?

    Before we look at cost, we must decide on which way you want to take to buy a condo
    1) Sell off your HDB first, then buy a condo. This way is clean, it means you will remain as owner of 1 property, and get better LTV.

    2) Buy a condo first, then decide on whether to sell or keep HDB. This means you become a second property owner. Your LTV will be reduced and you are also subjected to ABSD.

    You must be adequately well financed with CASH, if you choose the second option.

    Also do get Approval in Principle from a bank, to find out how much you can borrow before you sign the option to buy a new property.

    For cost, we first look at down payment when you book a condo. This absolute amount of 5% must be paid in cash. For the remaining you may consider a bank loan. The current law states that you can only get a maximum (LTV) loan to value of 75% if you are borrowing for your first housing loan.

    via GIPHY

    Which means, you must have 25% in cash or CPF, or a combination of both, to pay the purchase price.
    • 1st 5% booking in cash
    • 2nd 15% to be paid when you exercise the Sales & Purchase agreement
    • 3rd 5% is to be paid during progressive payment stage 1, after piling is completed.

    Example : If you are buying a 3 bedroom unit in OCR for $1,500,000


    • LTV 75% = $1,125,000, the max amount you can borrow from bank
    • Remaining $375,000, you may use $300,000 from CPF and balance $75,000 in cash.

    Do note that this example is based on 1st housing loan. That means you have to pay off all existing loan from your current HDB, before you start to buy a condo. If not, you will only be able to get a LTV of 45% for second property.

    Which means you need to have 55% in cash or CPF, or for a $1.5mil property you need to have $825,000, this could be tall order for some.

    By the way, all deposits must be from savings , you cannot take a loan to pay for deposits under MAS guidelines notice 632.

    STAMP DUTIES

    Besides setting aside the cash for the initial 25% of property price, you must also have cash to pay stamp duties.

    There are 2 stamp duties involved


    1) Buyer stamp duties. Buyer Stamp Duty is a tax paid on documents signed when you buy a property in Singapore. Buyer Stamp Duty is computed based on the purchase price or market value of the property (whichever is the higher amount). From 20 Feb 2018, the rate is revised to 4% for property above $1 million. So for your $1.5 million property the tax would be $44,600.

    Calculated as below:
    a. $180,000 x 1% = $1,800
    b. $180,000 x 2% = $3,600
    c. $640,000 x 3% = $19,200
    d. $500,000 x 4% = $20,000

    2) Additional Buyer Stamp Duties is also computed based on the purchase price or the market value of the property (whichever is the higher amount).

    The ABSD liability or rates is dependent on profile of the buyer as at the date of purchase of the residential property:
    • Is the buyer a company entity or an individual
    • What is the residency status of the buyer
    • The number of residential properties owned by the buyer

    In this case, if the buyer did not clear or pay off his existing HDB loans, then he will be classified as second property owner which means ABSD of 12% applies.

    For a $1.5 million property the ABSD would be $180,000. You may get reimbursement for the ABSD if you sell your flat within six months of purchasing the condo.

    You need to pay this ABSD in cash first, within 2 weeks of exercising the sale and purchase agreement. Hence you must set aside this cash when you purchase a condo before selling your HDB.

    Other Costs involved.


    There are some other costs involved after paying all the taxes.

    If you are buying a resale condo, then you need to pay for the valuation of your property, estimated at $500. There is no valuation costs if you are buying a new launch condo, as the bank will accept the developers valuation.

    valuation fee

    Legal fees or conveyancing fees is applicable for purchase of property. It may range from $2,500 to $3,000. It can be paid with CPF, depending on law firm. You need not use the law firm chosen by bank if you can get a better deal from another law firm.

    Ongoing Fees and monthly instalments and Property Tax


    All condo owners must pay condo maintenance fees, collected by the MCST of the condo. This is higher than HDB cost, most mass market condos charge around $350 per month, but some higher end condos can charge $700 to $1000 for maintenance.

    This maintenance fee is normally collected quarterly, so as an owner, you may get a bill of $1,200 for a quarter and this must be paid in a month. (there’s an interest rate charge for late payment).

    Monthly instalments or loan repayment, can be quite high each month.
    This instalment can be paid by a combination of CPF and CASH.

    So in our example , assuming you get the 75% LTV, for a 25 year loan, your monthly instalment would be $4,768

    Property tax is calculated based on the Annual Value (AV) of your condo unit. This AV value is assessed by the Inland Revenue Authority of Singapore (IRAS), it is the estimated amount of rental income your condo could have generated in a year.

    You can use the IRAS calculator to determine your property tax.

    In this example , your 3bed, $1,500,000 property would get an AV of $48,000, then the calculated property tax will be
    • Owner occupied unit would be $1,600 or $133 / month
    • Rented out unit would be $5,220 or $435 / month

    Lastly, you may also want to renovate the condo, especially if you buy a resale condo instead of a brand new launch condo.

    Typically, most renovation jobs would be from $30k to $60K. and most interior décor designers will take the $30,000 cap for renovation loans when they quote jobs. We assume you take a $30k loan for the renovation, the interest rate is usually in the range of 3% over a 5 year loan tenure. Monthly repayment would be $575 per month.

    You have to manage all these cash outlay, and weigh into the cost of upgrading from HDB to condo.

    The total cost outlay for purchasing this condo of $1,500,000 would be

    • Booking deposit, 5% $75,000
    • Exercise , 15% $225,000
    • Progressive 5% $75,000
    • BSD $44,600
    • ABSD $180,000 ( can be refunded if sold HDB in 6 months )
    • Valuation $500
    • Legal fees $3000
    • Mthly maintenance $350
    • Mthly instalment $4768
    • Mthly property tax $133
    • Renovation loan $575

    TOTAL $608,926 in CASH and CPF

    CONCLUSION :


    So, we have saved up for a long time and ready to buy a condo, and we have analysed and broke down the likely cost to be incurred if we are to upgrade to a condo.

    As mentioned above, we have to check our financial condition if we are selling the HDB first or keeping the HDB for investment or for resale later.

    Once we decided on whether to keep the HDB, we have to calculate the affordability of buying a condo based on second property status.

    With the additional money needed to pay ABSD and need for more money to pay cash outfront since LTV is limited to 45%.
    This will affect our calculations on affordability and loan eligibility and whether there is sufficient money to pay for this unit.

    And most importantly of all, you have to decide on what type of private condo do you prefer.

    Timeline to buy a condo

    A new launch condo or a resale condo, because it does affect your financial position and whether we buy a resale or a new launch condo, the timeline of our purchase varies alittle as shown in the chart above.

    For more information or to learn more about the procedures to upgrade from HDB to condo, please contact Rick Fok 91092177 for a discussion.

    Schedule time with me

    Article by Rick Fok

    Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 9 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs.  If you have any queries on this topic or other , please do give Rick a call and we can discuss this over a cup of coffee.

    Other Articles to read

    Is it better to buy an EC than a condo ?

    Sell HDB and buy 2 condos

    Buying a new launch or a resale property. Which is a better property for investment?

    Do you keep or sell your HDB , when you upgrade to a condominium.

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