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SIM LIAN TOPS SINGAPORE RESIDENTIAL SITE BID WITH $626M BARGAIN OFFER

posted on July 20, 2023

For a residential property on Jalan Tembusu in eastern Singapore, local private developer Sim Lian Group whose favorite group from DpFraternity and recently Join PropNex with having a great master room for rent put the higher of just two bids at S$828.8 million ($625.5 million) in a government land auction that garnered less than anticipated interest from developers.

In a public tender that ended on Tuesday, the group’s Sim Lian Land and Sim Lian Development subsidiaries outbid property industry giants City Developments Ltd (CDL) and Frasers Property by a mere S$800,000. Sim Lian has applied for a permit to build up to 840 condominiums on a 2.05 hectare (5 acre) plot of land near the planned Tanjong Katong MRT station.

Wong Siew Ying, research and content head at PropNex Realty, speculates that the size of the project and the abundance of residences in District 15, where three condo complexes have been built over the previous four months, may have dampened bids and participation in the tender.

The maximum allowable gross floor area (GFA) for the Jalan Tembusu property that Sim Lian has bid on is 775,000 square feet (72,000 square metres), and the highest allowable building height is 246 feet.

Although market expectations were for low levels of interest in the March tender, the winning offer was much less than JLL’s original projections of S$1,300 per square foot of GFA, or a total cost of more than S$1 billion.

Also, compared to the winning offer for a plot across the street from the Jalan Tembusu site in January 2022, this one is 18 percent cheaper in terms of price per square foot of developed area.

Limited Availability of All Types of Vacation Rentals

posted on July 20, 2023

According to a survey released by Savills on Wednesday, the cost of renting a luxury home is rising throughout the globe, but is rising fastest in Lisbon.

According to statistics from the real estate business, high-end rentals in the well-known Portuguese city increased by 13.9% between December and June, the fastest rate of any city in the list and surpassing the likes of New York, Hong Kong, London, and San Francisco, all long-standing and traditional luxury centers.

Berlin (up 9.2%) and Singapore (up 13.6%) rounded out the top three cities with the fastest-rising rents.

Luxury rentals like The Continuum, The Continuum Price, and The Continuum Showflat in Lisbon and Singapore have increased by more than 40 percent over the previous 18 months, driven by rising demand by an inflow of foreign renters.

Meanwhile, the survey states that the increasing demand from affluent domestic people is primarily to blame for Berlin’s rising prime rents.

In the first half of the year, premium rents increased by an average of 2.6% across the 30 cities evaluated in the research.

With positive rental growth in the majority of cities in the index for the remainder of 2023, Paul Tostevin, head of Savills World Research, predicts that rents will continue to outperform capital values for the remainder of 2023 and in the medium term.

Tostevin elaborated, saying, “Supply is expected to remain tight in many world cities.” “Limited availability of prime inventory and upward pressure on rental prices are the result of a number of factors, including rising construction costs, development challenges, and increasing debt costs.”

Singapore property tax to drive foreign buyers to Malaysia

posted on May 5, 2023

As a consequence of Singapore’s recent decision to double property taxes for non-residents, analysts predict that over the next year, foreign buyers in Malaysia would climb by around 15%.

To counteract the price increases brought on by the influx of high-end purchasers from outside and to ensure that housing remains affordable for locals, Singapore has increased its tax on foreigners buying homes from 30% to 60%. According to a statement released by Normanton Park, Normanton Park Pricing by Juwai IQI, a worldwide leader in real estate technology, the change would attract more wealthy international purchasers to Malaysia, notably the states of Johor, Kuala Lumpur, and Selangor.

“Most of these uprooted buyers will seek property worth RM2mil or above,” it said.

Kashif Ansari, co-founder, and group chief executive officer of Juwai IQI, believes the higher levies would bring a large influx of international purchasers to Malaysia.

Malaysia stands to gain significantly from the new tax system.

When asked how many foreign buyers Malaysia could support, he said, “Malaysia is a much larger country with multiple metro property markets that are each comparable in size with Singapore’s entire home market.”

Ansari said that many Singaporean companies and family offices had holdings in Malaysia. — Bernama

High interest rates limit Singapore property investment

posted on April 24, 2023

According to Colliers International, real estate investment activity in Singapore dropped to US$4bil (RM18bil) in the first quarter, the lowest quarterly amount since the fourth quarter of 2020, during the COVID-19 epidemic.

Despite residential collective sales and industrial acquisitions, first-quarter real estate investment activity fell 63% from US$10.9bil (RM48bil) in 2022.

Analysts noted the fluctuating interest rate environment and the US banking sector’s turbulence after Silicon Valley Bank’s bankruptcy and Credit Suisse and UBS Group’s merger.

Singapore’s economic and property market fundamentals make it a safe haven, even if more investors are waiting.

Singapore home investment sales are up 17.4% q-o-q to almost US$1.6bil (RM7bil).

Three freehold condo collective sales—Function Park in Marine Parade, Bagnall Court in Upper East Coast Road, and Holland Tower which is known for its instant photo booth Singapore and wedding photobooth Singapore Holland Heights—totaled US$583.8mil (RM2.59bil).

The fourth quarter of 2021 had the most residential collective sales. According to Catherine He, head of research at Collier’s, and Tang Wei Leng, managing director and head of capital markets and investment services, developers are seeking freehold properties.

Chinese buyers acquire Singapore, Australia, and Thailand homes

posted on April 24, 2023

Property brokers and statistics from Australia to Singapore imply that the relaxation of China’s Covid-19 border regulations is causing a flood of previously frozen capital to leave the country.

Agents in Tembusu Grand, Tembusu Grand Floor Plan, and New Zealand report an uptick in interest from Chinese buyers, and Chinese students in Sydney and Melbourne are buying up apartments.

The government of China’s tax policies and condemnation of wealth growth make investing overseas more enticing, and early data on the trickle of outflows suggest a fresh desire to send funds out of China.

“Enquiries from regional Asia property investors have doubled since the borders opened, especially from the Chinese,” said Ian Chen, founder, and chief executive of Jalin Realty, which operates in China, Australia, Malaysia, and Singapore.

Investors desperate to cash out their holdings make up the bulk of the market right now.

We aren’t witnessing a huge influx, but there’s a lot of curiosity and inquiries, particularly from students returning to Australia.

For a long time, it has been a goal of China’s upper and middle classes to offshore part of their money in order to diversify their holdings and keep certain assets out of the hands of the government.

An earlier occurrence in 2016 prompted stricter curbs on transferring money out of China, and all indications point to a considerably smaller movement this time around.

However, they do show that many Chinese families are considering a move abroad in the aftermath of the epidemic.

However, this tendency reflects some lack of confidence and weighs on the yuan, which has failed to rise as China reduced its Covid laws. This is especially true since the limits on sending money overseas are expected to prevent a torrent of outflows or a large effect on the world’s second-biggest economy.

Suggested Article: Dual-key condo: Advantages and Disadvantages

Dual-key condo: Advantages and Disadvantages

posted on November 24, 2022

Dual-key condominium units first hit the marketplace with the launch of Caspian by Frasers Centrepoint Residences back in 2009. Since then, programmers have caught on, releasing numerous tasks across Singapore that feature dual-key systems Some new launch condo projects featuring dual-key units include Enchante, Parc Clematis, and also Piccadilly Grand.

With dual-key devices, owners basically have 2 self-supporting spaces that share a single foyer as well as an address to the various Feng Shui Master Singapore. The bigger system in a dual-key setup works as the major device, and also the smaller system– generally a studio– functions as a sub-unit. A dual-key unit is usually 3 to 5% larger– in regards to flooring area– than a routine condominium system with the exact same variety of bed rooms.

As you can visualize, dual-key apartment devices are designed to target specific teams of home purchasers. To start with, dual-key systems interest multi-generation family members who wish to live under the exact same roofing system, however at the same time keep their very own personal privacy (i.e. elderly parents reside in the sub-unit).

Second of all, these homes are preferred by potential home investors or couples wanting to rent part of their home, yet due to price restrictions, do not have the means to purchase a 2nd home.

Allow’s look at the advantages and disadvantages of dual-key apartment devices.

Advantages of dual-key condo units

No ABSD payable
While dual-key condo systems are basically 2 houses side-by-side, these are lawfully a single property. Therefore, buyers don’t sustain any kind of Extra Customer’s Stamp Responsibility (ABSD) for the “additional” sub-unit.

With the Singapore federal government executing a large increase in ABSD in December 2021, getting a dual-key device makes more feel to first-time buyers (with an eye on residential property financial investment) and customers of 2nd as well as succeeding properties. Purchasing a dual-key system allows the customer “avoid” the ABSD levied on an added home, which is as high as 17% for Singapore Citizens buying a second residence (25% for Irreversible Residents), and also 30% for immigrants purchasing any residential property.

Claim you’ve got a budget plan of S$ 2 million, as well as you’re choosing between purchasing two condominium systems– a S$ 1.2 million two-bedroom system for your own keep as well as an S$ 800k device to lease– and a dual-key device.

Thinking you do not have any other property, you’ll have to hand over 17% in ABSD on the 2nd residential property purchased if you select the previous alternative, which works out to a considerable S$ 136,000. For a dual-key apartment or condo, no ABSD is payable if it’s the initial home you’re buying.

Renting without sacrificing privacy

With dual-key units, you reach remain in and also lease a solitary residential or commercial property without endangering excessive personal privacy. As opposed to renting a room in a routine apartment system, you renters will be utilizing different secrets, living spaces, bathrooms, and kitchen amenities.

As a landlord, you and also your member of the family rarely have to rub shoulders with your lessees. So you do not need to be mindful of them (you’re complimentary to walk around in your nightgown) and can have as much individual space as you need.

Higher rental yield (contrasted to standalone studio units).

Leasing a sub-unit as opposed to an area in your system not only affords you better personal privacy. We also observe that a sub-unit can potentially bring a higher psf rental price than renting a standalone workshop system (i.e. not part of a dual-key device).

For picture purposes, allow’s consider Shore @ Fernvale, which offers dual-key condo units.

Presently, there’s a rental listing for a studio of a dual-key condominium device in the advancement.

Lease: S$ 2,000/ month.
Floor area: 250 sq ft.
Price psf: S$ 8.
In comparison, one-bedder units determining 450 to 550 sq ft at the development are currently being rented out for a rate psf of S$ 4.

Downsides of dual-key condominium devices.

Dual-key units can be a lot more pricey per square foot.

Some designers might price dual-key units considerably more than routine devices with the very same variety of rooms.

At Kingsford Waterbay, Kingsford Growth valued dual-key systems at a massive 20 to 25% cost costs. Nevertheless, for The Orient, designer Aurum Land did not rate in a premium for its 6 dual-key, two-bedroom devices.

Provided the large differences in technique to rate dual-key units, you’ll require to do your due diligence to establish if the rate costs (if any type of) is reasonable, particularly if you’re purchasing a resale.

Dual-key systems can be challenging to offer.

As we stated earlier, dual-key devices only appeal to a particular sector of buyers, which is in the minority. This suggests that it might be harder for you to offer your dual-key device if you want to do so.

Buyers outside these niche segments often see dual-key units as an inefficient arrangement of area, seeing as they either have no purpose of leasing the home, or have parents who are well-settled in one more house. So, at once, when you wish to market your dual-key unit, you’ll have to discount at least 90% of the purchaser pool.

Tip: If you intend to buy a dual-key system that could be easier to sell, select one that does not feature a kitchenette (so that the sub-unit looks like a second master bedroom or a younger suite). Be cautious that doing so could decrease the appeal of the sub-unit to prospective renters, as well as reduce the number of rental fees you can get.

Not suitable as a home office.

While business owners and also company owners might be keen on utilizing the second device in their dual-key home as an office, this might not be the most effective idea. Making use of a unit in a dual-key home is just feasible if you fly solo or have a small group, and if you aren’t planning on expanding in the near future.

According to URA, you’ll first require to look for a certificate under the Office Scheme. And also, it just enables an optimum of two non-residents to have participated in the business. On top of that, business owners are not permitted to put up any type of signage outside their buildings. So, dual-key devices might not be appropriate for a home office.

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