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Local property market kept on a leash by Government says UBS Research

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Author: Ravi Philemon

With the additional buyer stamp duties (ABSD) for developers and purchasers of investment properties introduced last year, the Singapore Government has kept the local property market on a leash says a recent UBS Research

  • The UBS Global Real Estate Bubble Index 2019 analyzes residential property prices in 24 major cities around the world.
  • The local property market is stable again after prices stagnated with the number of transactions falling.
  • The risk of a price correction in the local property market is limited by sound market fundamentals.

The UBS Global Real Estate Bubble Index 2019, a yearly study by UBS Global Wealth Management’s Chief Investment Office, indicates bubble risk or a significant overvaluation of housing markets in half of all evaluated cities.

The report said that over the last four quarters, imbalances have soared particularly in the Eurozone, with Frankfurt and Paris the two most prominent new additions to the bubble risk zone when compared with last year. By contrast, valuations in Vancouver, San Francisco, Stockholm and Sydney have fallen sharply.

London’s property market has cooled down considerably, moving the financial hub out of bubble risk territory for the first time in four years. On the other hand, index scores in New York and Los Angeles are slightly lower than last year while Tokyo and Singapore remain almost unchanged.

Local property market

Image credit: UBS

The report pointed out that the brief housing boom in the local property market between mid-2017 and mid-2018 is over.

“Prices have stagnated since and the number of transactions fallen. The UBS Global Real Estate Bubble Index score for Singapore remains in the fair-valued zone. The market slowdown is attributable to several factors.

The government is keeping the market on a leash. The additional buyer stamp duties (ABSD) for developers and purchasers of investment properties introduced last year have put a lid on the price upside and curbed speculative demand. Population growth has also declined notably in the past two years. Finally, economic momentum is expected to deteriorate, limiting the willingness to pay. Overall, we expect prices to remain at current levels over the coming few quarters.

However, while regulatory measures still cap price growth expectations, the risk of a price correction is limited by sound market fundamentals, including a declining vacancy rate, good affordability, and a healthy employment market.”

The local property market is one the few among those UBS cover in which private housing affordability has improved in the last 10 years. Current prices are similar to those in 2008 while household incomes have climbed by 20%. Nonetheless, affordability is still stretched. The report noted that it takes 12 annual incomes to buy a 60m2 (650 sqft) apartment on the private market.

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Claudio Saputelli, Head of Real Estate at UBS Global Wealth Management, said: “The worldwide collapse in interest rates will not come to the housing markets’ rescue. Mortgage interest rates in many cities aren’t the major challenge for house buyers anymore. Many households simply lack the funds required to meet the banks’ financing criteria, which we believe poses one of the biggest risks to property values in urban centers.”

Matthias Holzhey, lead author of the study and Head of Swiss Real Estate Investments at UBS Global Wealth Management, said: “Investors should remain cautious when considering housing markets in bubble risk territory. Regulatory measures to curb further appreciation have already triggered market corrections in some of the most overheated cities. Real prices in all four top-ranking cities in the 2016 edition of the UBS Global Real Estate Bubble Index have fallen, for instance. On average they are down by 10% from their respective peaks and we don’t see this trend reversing.”

Owning residential property in global cities has been a sure road to wealth accumulation. However, the absence of economic viability leads to a deterioration in many cities’ attractiveness and favors a shift in jobs to the suburbs. Even though, the underlying factors favoring city properties, including urbanization, the digital revolution and artificial supply constraints, still hold good, real price appreciation can no longer be taken for granted.

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The report noted that in the Asia Pacific Region, the momentum in Hong Kong’s red-hot property market has stalled. The weaker economic outlook has cooled residential buyer sentiment. However, the market remains firmly in bubble risk territory. By the end of the first quarter of 2019, prices in Sydney were 15% lower than at the peak, and credit growth for housing had reached an all-time low. Singapore’s brief housing boom between mid-2017 and mid-2018 is over. Regulatory measures cap price growth expectations and keep the market in fair-valued territory.

In the United States of America, index scores have not risen in any of the cities in the UBS study for the first time since 2011. Regulatory changes and affordability issues have caused home prices in New York to lag the countrywide average. Similarly, affordability issues, trade tensions and diminishing foreign demand have capped price growth in San Francisco and Los Angeles for now. Boston is still in fair value territory and benefits from the appeal of the region for businesses and high income earners. Chicago is undervalued but continues to lag far behind given its increasing fiscal challenges.

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URA 3Q 2019 flash estimate suggests property prices will remain stable

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Author: Ravi Philemon

URA 3Q 2019 flash estimate showed private residential property index increased 1.4 points

The Urban Redevelopment Authority (URA) released the flash estimate of the price index for private residential property for 3rd Quarter 2019 on Oct 1. URA said that overall, the private residential property index increased 1.4 points from 150.8 points in 2nd Quarter 2019 to 152.2 points in 3rd Quarter 2019. This represents an increase of 0.9%, compared to the 1.5% increase in the previous quarter.

Prices of non-landed private residential properties increased by 2.9% in Core Central Region (CCR), compared to the 2.3% increase in the previous quarter. Prices in the Rest of Central Region (RCR) increased by 1.6%, after registering an increase of 3.5% in the previous quarter. Prices in Outside Central Region (OCR) increased by 0.7%, compared to the 0.4% increase in the previous quarter.

URA 3Q 2019 flash estimate

URA 3Q 2019 flash estimate shows that the upward trend in the index was contributed by the strong performance in the non-landed private residential segment

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-September. The statistics will be updated on 25 October 2019 when URA releases its full set of real estate statistics for 3rd Quarter 2019. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. URA advised the public to interpret the flash estimates with caution.

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Commenting on the URA 3Q 2019 flash estimate, CBRE noted that it registered a positive change of 0.9% q-o-q, marking the second consecutive quarter of increase. This brings the year-to-date change for 2019 to +1.7% – in line with CBRE Research’s forecast of 0%-3% increase for 2019, and the view that the price index will continue to increase on the back of rising land prices.

Mr Desmond Sim, CBRE’s Head of Research for Southeast Asia, commenting on the URA 3Q 2019 flash estimate said, “the increase of price index this quarter was contributed by the strong performance in the non-landed private residential segment.”

He added, “in particular, prices in the CCR and RCR climbed by 2.9% q-o-q and 1.6% q-o-q, respectively, in Q3 2019. This can be attributed to the handful of successful launches which continue to drive the bulk of transactions. According to REALIS data, there were 3,044 new homes sold in Q3 2019 which accounted for 65% of all sales, as compared to 2,144 units in Q2 2019 which accounted for 51% of all sales.”

CBRE said that despite the rise in per-sq-ft prices, the total price quantum tends to hover at the same range – implying that buyers continue to lean towards smaller unit sizes. In Q3 2019, median unit sizes for new homes maintained at 710 sq ft, while prices remained at a palatable quantum of S$1,265,000 – a similar trend observed in the past few quarters. In addition, 72% of new home sales are transacted below S$1.5 million, which continues to be the sweet spot for investors.

CBRE Research expects that the property price index to remain relatively stable or show moderate growth for the rest of the year. This is in lieu of the increase in project launches in Q4 2019, where sales from new projects is likely to continue to drive up the per-sq-ft price. Underlying demand will still support the property market, though downward pressure will possibly materialise when unsold inventory piles up in the mid to long term.

Ms Tricia Song, Colliers International’s Head of Research for Singapore, commenting on the URA 3Q 2019 flash estimate said, “private residential property prices in Singapore rose for the second straight quarter in Q3 2019, supported by the resilient underlying demand for homes. Flash estimates from the Urban Redevelopment Authority (URA) on Tuesday (1 Oct) showed that private residential property prices climbed by a higher-than-expected 0.9% quarter-on-quarter (QOQ) in Q3 2019, after a surprise 1.5% uptick in the previous quarter.”

“Cumulatively, private home prices have risen 1.7% in the first nine months of 2019. With the Q3 2019 estimates out, private home prices are now 1.7% above the most recent peak in Q3 2018 (149.7) and 1.6% below its all-time peak in Q3 2013 (154.6).

Based on caveats downloaded on 30 September 2019, developers sold 3,083 new homes in Q3 2019 – up by 31.2% QOQ (2,350 in Q2 2019) and 2.4% year-on-year (YOY) (3,012 in Q3 2018). Meanwhile, secondary transactions stood at 1,957 units in Q3 2019, down 19.0% QOQ (from 2,416 in Q2 2019) and down 28.9% YOY (from 2,753 in Q2 2018).”

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Ms Song added that the pace of price increase has slowed, coupled with a slower economy and that this was reflected in the URA 3Q 2019 flash estimate. “As such we do not expect the government to impose more cooling measures at this stage following two quarters of price growth.”

“For the full year 2019, Colliers Research now expects overall home prices to rise by 2% YOY, up from our initial growth forecast of 1%. We believe there is still some headroom for prices to rise – albeit it at a slower pace. That said, the cocktail of global risks and softer growth outlook will likely exert some pressure on pricing going forward, especially if there is a severe economic downturn.

There is still an ample launch pipeline which should keep prices stable. Potential launches include prime projects in CCR: Royalgreen (285 units, former Royalville), Pullman Residences (340 units, former Dunearn Gardens), Hylle on Holland (321 units, former Hollandia and The Estoril), One Holland Village (559 units), former Tulip Garden (672 units), Midtown Bay (219 units), former Pacific Mansion (376 units) etc.

In the city fringe, launches include: Verdale (258 units) and Amber Sea (132 units). Meanwhile, in the suburbs, potential launches include: Sengkang Grand Residences (682 units), Infini at East Coast (36 units), and Midwood (564 units).

The underlying demand for homes remains resilient and has supported sales and prices in recent months. In addition, the more benign interest rate environment is also favourable for the housing market.”

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What Recession Means for Properties

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https://i1.wp.com/www.propertysoul.com/wp-content/uploads/2016/12/cropped-heading.jpg?fit=32%2C32&ssl=1 Author: Property Soul

Last week, Minister in the Prime Minister’s Office Indranee Rajah told the media that Singapore hasn’t slid into recession yet. However, bad news keeps pouring in: Our manufacturing and exports contract sharply in August. Factory outlook from PMI falls to 3-year low in September. 2019 GDP growth is revised further down to between zero and… [read more]

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Raising cash the right way – price of the money is key element

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Author: Ravi Philemon

Determining the price of the money will help you in raising cash the right way.

By: Hitesh Khan/

Whether you need $10 or $10 million, there are only two kinds of money: debt, which is borrowed, and equity, which is traded for ownership of the company. The first step to raising the right kind of money is to decide between debt and equity. Usually, the choice depends on personal preference.

If you are running a company with real estate or heavy equipment, and if you would prefer to pay interest rather than give up ownership, then debt financing is the way to go. This is because lenders like to see those kinds of assets. Purchasing such assets usually involves leases and loans backed by the equipment itself. Many equipment manufacturers offer built-in financing.

Traditional lenders like banks are good sources for loans backed by hard assets. Either way, the term, or duration, of a lease or loan should more or less match the expected life span of the asset backing it.

On the other hand, raising cash through equity offers serious advantages to businesses, in that if you issue equity, you reduce the amount of pie you own, but you potentially improve your creditworthiness.

4 reasons why successful businesses borrow money

Equity financing can come from individual angel investors, traditional venture capital or – most common for growing businesses – mezzanine financing.

Mezzanine financing is a hybrid of debt and equity financing that gives the lender the right to convert to an equity interest in the company in case of default, generally after venture capital companies and other senior lenders are paid. Mezzanine financing tends to be completed with little due diligence on the part of the lender and little or no collateral on the part of the borrower. It is treated as equity on a company’s balance sheet.

And therein lies one key to achieving maximum growth for your company and in raising cash: using equity and debt together. Equity provides an asset base that can facilitate bank borrowing, and with equity, you can leverage a little further.

Not only is the equity money itself an asset that a bank can use as collateral, but partners and shareholders may use their personal credit scores to enable additional borrowing, or in raising cash.

For commercial loans, however, growing businesses don’t typically qualify for loans with long tenure. Even when real estate is involved, businesses are likely to find that 5 – 10 year terms are the norm. For most other business purposes, five years is considered long term.

Of course, there are plenty of times when long-term money is exactly the wrong solution. If a fast-growing business needs cash to meet payroll or simply wants to purchase office supplies, taking out a loans with long tenure does not make any sense.

raising cash

Image credit: Pixabay

Credit cards, short-term loans, revolving credit lines and factoring are all much better options for freeing up cash to meet short-term needs. Banks are often the best sources of credit cards and small or revolving credit lines.

For more flexible financing, specialty lenders like licensed moneylenders or corporate finance companies will fit the bill.

Wherever you go looking for money, remember the golden rule: short-term loans for short-term needs; long-term loans or equity for longer-term needs. At the end of the day, a key element is the price of the money, and in the case of a loan, the price is the interest rate.

Credit cards and other short-term loans with no collateral have the highest rates, so they are the most expensive way to borrow – which is another reason not to use them for long-term needs. Longer-term loans, particularly those backed by assets, will be cheaper.

Calculating the price of equity is tricky, but don’t forget that even patient investors want a payday eventually. Since each investor receives a percentage of the total value of the company, equity is usually the most expensive financing option.

Whether the price of raising cash is 2 percent or 20 percent, it should always be lower than the return you expect from spending it. That is to say, don’t invest money in any project that won’t generate enough profit to more than cover the loan payments, including interest. To mix accurately the various loans into a recipe that preserves cash flow while keeping the average interest rate low is the trick.

Business financing requires full and thorough preparation

No matter which flavors of money you choose to finance your deal, building a successful business will give you new options for financing. As you prove to the world that you can use money to make money – -and pay back what you borrowed – you will be able to negotiate from strength.

How to Secure Personal Loans Quickly

If you have limited capital and are searching for personal loans to expand your business, the loan consultants at iCompareLoan can set you up on a path that can get you a it in a quick and seamless manner. Our loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. Find out money saving tips here.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

If you are looking for a new home loan or to refinance, our Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us for your business expansion needs.

Contact us for advice on a new home loan.

Contact us for home loan or refinancing advice.

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Bugis Cube launched for en bloc sale with reserve price of $230m

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Author: Ravi Philemon

Bugis Cube located at No. 470 North Bridge Road, has been put up for collective sale via a Tender exercise by the appointed marketing agent, Cushman & Wakefield. Owners holding not less than 80% by share values and strata area have collectively agreed to the sale by way of public tender.

Bugis Cube is situated in the vibrant eclectic Bras Basah-Bugis neighbourhood with a mix of our heritage past and modern skyscrapers. This area is undergoing an exciting transformation with the anticipated completion of upcoming projects such as Guoco Midtown, Shaw Towers and the future residential developments at Tan Quee Lan Street and Middle Road that were both recently sold under the Government Land Sales Programme.

Other large-scale mixed used developments in the area include South Beach and Duo which were both opened in the recent past. It is also just opposite Bugis Junction and adjacent to Liang Seah Street, a popular street filled with steamboat restaurants, bars and dessert cafes.

Bugis Cube

Image credit: C&W

Presently, Bugis Cube is a 6-storey building with a basement floor car park. It has 119 strata-titled retail shops boasting a mixed of select F&B outlets, beauty, hair, nail salons and family karaoke lounge.

 

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This 999-year leasehold site has a land area of 1,079.1 sq m (11,615 sq ft approximately). According to the Master Plan 2014, the site is zoned “Commercial” with a plot ratio 4.2 and a maximum storey height of 6-storey. It has a verified Gross Floor Area of 6,188.67 sq m (66,614 sq ft approximately), equivalent to a plot ratio of 5.735.

En Bloc Sales Process Singapore – A Definitive Step-by-step Guide

It is a 250 metre walk to City Hall MRT and Bugis MRT station which is an interchange Station for the East-West Line and the Downtown Line, providing easy access to occupiers and retail customers. It also has easy access from other parts of the island via the East Coast Parkway (ECP) and Marina Coastal Expressway (MCE).

The owners’ reserve price for Bugis Cube is $230 million which works out to approximately $3,452 per sq ft per plot ratio on the verified gross floor area.

Ms Annalyn Ooi, Associate Director of Capital Markets at Cushman & Wakefield said: “Such a 999-year leasehold tenure site in prime location is rarely available for sale. As the sale is with vacant possession, the prospective buyer could take the opportunity to add value to the building through asset enhancement initiatives by introducing co-working space concepts, specialty services and clinics, or convert into a boutique office building with its own naming rights.”

Shaun Poh, Executive Director, Capital Markets said “The recent sales of two commercial buildings Bugis Junction Towers and DUO have definitely further added to the growing interest in the locality”.

The tender exercise for Bugis Cube closes on 14 November 2019 (Thursday), at 3.00pm.

With the winding down of the success of residential en bloc sales, commercial properties are now trying to join in the bandwagon. Many commercial en bloc sale attempts fail because the asking prices are often too high. Two critical factors affecting the success of commercial sites going en bloc are pricing and location. Older commercial buildings especially, may see a need to catch the current wave as an exit strategy as their rental yields come under pressure due to competition from newer commercial buildings.

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The biggest gainers following the new property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.

One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.

Commercial properties such as Bugis Cube may be bought under personal name, but total debt servicing Total Debt Servicing Ratio (TDSR) will apply on the individual’s income on such purchases. To buy a commercial or industrial property under company name, total debt servicing ratio TDSR also applies on the individual director’s income if the company is an investment holding company or an operating company that is loss-making or does not have sufficient cash flow to servicing the repayment.

To buy a commercial or industrial property under company name where the company is well established with an existing operating business with strong financials, TDSR may be waived on the individual. However director is usually required to become personal guarantors of the loan the company undertakes. Hence this may affect the director’s other purchases, such as for buying a residential property, due to the loading from the TDSR for guaranteeing a loan.

Some banks even advertise 100 to 120% loan. This is due to a combination of working capital as well as commercial/industrial property loan, but this only applies to company with strong cash flow position. Commercial property is different from residential property and the considerations are more complex and varied, though the payoff may be worthwhile for discerning investors.

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E-commerce sector is among top warehouse space occupier in Singapore

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Author: Ravi Philemon

– Logistics and e-commerce sector accounted for 44% of occupied warehouse space as tracked by Colliers
– Colliers ranks Changi as the top logistics micro-market in Singapore, ahead of Tuas and Boon Lay/Jurong West micro-markets
– Singapore has one of the highest warehouse space per capita in Asia, with overall vacancy rate remaining elevated
– Continued e-commerce sector growth and a more benign supply pipeline over 2019-2023 should lend support to the logistics property market

Colliers International on Oct 3 launched its latest research Radar report The Future of Logistics Real Estate, which tracks the performance and outlook for the logistics property sector, identifies the top logistics micro-markets in Singapore, and provides recommendations for occupiers, landlords and investors.

Warehouse occupiers in Singapore

The report noted that third-party logistics (3PL) and logistics companies are the top occupier sector, taking up 44% of occupied warehouse space in Singapore, based on industrial properties track by Colliers Research. 3PL and Logistics sector comprises freight forwards, transport agents, supply chain and logistics support companies, delivery service, storage service, and e-commerce.

Ms Tricia Song, Head of Research for Singapore at Colliers International, said, “Singapore is a top class logistics hub with the world’s busiest transshipment port, second busiest port in terms of total cargo tonnage handled, and the 12th busiest airport by cargo traffic as of 2018.

Ultra high net worth investors may see Singapore as a safe haven

As such, Singapore has been the location of choice for e-commerce sector players to establish their footprint when entering the region. The emergence of e-commerce in recent years has had a positive spillover to the 3PL and logistics sector in Singapore.”

e-commerce sectorApart from the 3PL and logistics sector, the other warehouse occupiers comprise: the manufacturing sector (which accounted for 30% of occupied warehouse space); distributors (10%); food, chemicals and pharmaceuticals (6%); oil, marine and energy (5%); and IT and technology (5%).

Colliers Research believes regional trade and growth in e-commerce should channel to stronger warehouse demand in the long term and benefit Singapore given its logistics hub status However, the small market size in Singapore as well as greater efficiencies in inventory forecasting and stock management could potentially moderate the need for drastic warehouse expansion.

Top logistics micro-markets in Singapore

In Singapore, there are about 117 million square feet of total warehouse space in Singapore – of which more than 80% are located in the East and West Regions of Singapore.

After assessing the major logistics micro-markets in Singapore, Colliers Research ranks Changi as the top location for occupiers, followed by Tuas and Boon Lay/Jurong West.

Mortgage Broker Singapore – Should I use one?

The research team evaluated the logistics micro-markets against four criteria: (i) presence of an existing logistics cluster and supporting infrastructure; (ii) availability of quality warehouse stock with consideration of both existing and future supply, as well as vacancy rate; (iii) accessibility to airport or sea ports; and (iv) rent premium compared to island-wide average.

  • Changi stands out as a top location for logistics players owing to its proximity to the Changi Airport. However, there is limited supply of warehouse space and unit sizes are typically smaller than those in the West Region. Due to strong demand, this micro-market has the highest occupancy rate among major logistics locations in Singapore.
  • Tuas, in second place, boasts abundant supply of warehouse space amid double-digit vacancy rate. This location can offer new warehouse stock, typically with large unit sizes, big ramps, and high ceilings. Tuas would also be home to the world’s largest container terminal in a single location when the new mega port becomes fully operational in the 2040s.
  • Boon Lay/Jurong West, which is ranked third, is located amidst the matured industrial and manufacturing area from Tuas and Pioneer to Jurong East. It has an abundance of space, especially in Boon Lay where vacancy rate is currently at 10.5%. This location is supported by the upcoming Jurong Innovation District and the future Jurong Regional Line. However, the overall warehouse stock in Boon Lay are relatively older than those in Tuas.

Dominic Peters, Senior Director of Industrial Services at Colliers International, said, “We believe it is timely for tenants to review their lease and space requirements, and explore options. They can consider locating further away from the city centre to enjoy rental savings or opt for customised and build-to-suit warehouse facilities which would offer greater rental certainty. Meanwhile, landlords should continuously enhance and upgrade assets to adopt innovative and eco-smart systems in preparation for the new wave of industrial revolution, Industry 4.0.”

What is SIBOR and SOR?

Rents on decline for five years; e-commerce sector growth and benign supply pipeline should support rents and occupancies

JTC rental index showed that island-wide warehouse rent has been on a downward trend for more than five years, with Q2 2019 rental index declining by 19.4% from its peak in Q4 2013. This is possibly due to the influx of new supply averaging 6.3 million sq feet (equivalent to 7.6% of total warehouse stock) per year during the 2014-2018 period, bringing total warehouse stock to 117 million sqft as of Q2 2019.

Against a small population of 5.7 million, Singapore has one of the highest warehouse space in Asia at 20 sq feet per capita, but lower than its developed peers – US and Japan. However, Colliers Research does not think there is a sustained oversupply of warehouse stock as Singapore’s logistics hub status should benefit from both domestic and regional growth in e-commerce sector. In addition, it expects warehouse supply to ease, with annual expansion averaging 1.5% of warehouse total stock over 2019-2023.

Ms. Song added, “We forecast logistics rents to remain weak on the deterioration in global trade and the potential economic slowdown in the near-term. However, there are potentially some upside ahead, particularly from the rising e-commerce and logistics sector. In addition, with a more benign warehouse supply pipeline, we expect occupancies and rentals to improve from 2022 onwards.”

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SMART Expo opens its doors in Singapore for savvy property investors

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Author: Ravi Philemon

Touted as a smarter place to buy properties from top destinations SMART Expo opens in Singapore once again

SMART Investment & International Property Expo, one of the leading overseas property and investment sales platforms in Asia, opens in Singapore from Oct 5 – 6 at SUNTEC Convention & Exhibition Centre. Boasting a track record of over 50 shows in locations such as Singapore, Hong Kong, Malaysia and China, SMART Expo is a trusted source of first-hand property information and professional advice from the best in the market.

SMART Expo Ltd. specialises in property and investment related events, conferences and exhibitions. SMART Expo is Asia’s longest established expo of its kind that offers visitors global property options. It successfully provides buyers with the latest market information as well as a wide variety of investment options to meet various market needs.

In 15 years, SMART has produced in excess of 53 expos held in Hong Kong, Singapore, Malaysia, China (Shanghai and Guangzhou) and Thailand. More than 2,700 past exhibitors and 150,000 investors have used our channels to generate business opportunities.

smart expoSMART Expo is the property of REA Group, a multinational digital advertising business specialising in property. REA Group operates Australia’s leading residential, commercial and share property websites – realestate.com.au, realcommercial.com.au, Flatmates.com.au – as well as Spacely, a short-term commercial and co-working property site.

In Asia, REA Group owns leading portals in Malaysia (iproperty.com.my), Hong Kong (squarefoot.com.hk) and Indonesia (rumah123.com), and prominent portals in Singapore (iproperty.com.sg), and China (myfun.com), a leading property review site in Thailand (thinkofliving.com) and SMART Expo Ltd., a specialised organiser in property and investment related events, conferences and exhibitions.

REA Group owns Smartline Home Loans Pty Ltd, an Australian mortgage broking franchise group, and Hometrack Australia Pty Ltd, a leading provider of data property services. REA Group also holds a significant shareholding in property websites Move, Inc in the US and PropTiger in India.

The two-day SMART Expo offers quality overseas property selection in Singapore.

The expo is a whole range of overseas properties from best-in-class luxury to high-yield investment grade properties covering apartments, houses, resorts to student accommodations. Savvy investors would be able to directly meet overseas developers and their authorised agents from across the world.

As overseas investments carry additional financial, regulatory and legal risks, investors are advised to do the necessary checks and research on the investment beforehand. Be also mindful that past performance is not necessarily indicative of future performance (even if the same strategies are adopted).

SMART Expo also offers free educational seminars, where world-class international property experts and investment gurus who have been invited share their investment perspectives. These first-hand information and expert insights, these seminars offer are not to be missed!

Mr Paul Ho, the founder and CEO of iCompareLoan.com, is one of the speakers at the SMART Expo. He graduated with a MBA from Macquarie University and is also the alumni president for the Singapore Chapter. Mr Ho writes regularly about property financing and macroeconomy with property market analyses is often interviewed and quoted in the media and has also spoken at property and investment events.

Mr Ho has also trained hundreds of agents and financial advisors in property financing. iCompareLoan assists homeowners find the best home loans and property agents to provide detailed home loan reports for their customers. He will be sharing in-depth insights on the topic of “The Difference Between Residential and Commercial Properties and Financing Strategies”.

There will also be a free investment and property market insight seminar, which will be useful if you need some advice on investment strategies on making property decisions. Free Admission to the seminar is available here: http://bit.ly/2M2Qp9D.

Other speakers at the expo include Ku Swee Yong (CEO, International Property Advisor Pte. Ltd), Khalil Adis (Director, Khalil Adis Consultancy Pte. Ltd, and Vina Ip (Blogger, PropertySoul.com & Director, Property Club Singapore Pte. Ltd).

Mr Ku is the CEO of International Property Advisor Pte Ltd. and co-founder of HugProperty.com. He was previously a director in the Real Estate Centre of Expertise at SocGen Private Bank, director of marketing at Savills and general manager at Far East Organization’s Indonesia office. He has an MBA in marketing from the University of Hull and a BSc from Imperial College, University of London and the Institut Louis Pasteur, France. He is regularly quoted in the media and has published five books on the property market. He also lectures at the SMU, Ngee Ann Polytechnic and NUS.

Khalil Adis Consultancy is founded by prominent property journalist Khalil Adis. He has written two bestsellers – Get It Right Iskandar and Property Buying for Gen Y. The firm presents a myriad of services which include property and market research, due diligence, editorial, content management and speaking engagements in the property market.

Vina Ip is a property enthusiast. In 2010, she set up a personal blog PropertySoul.com to share her experiences as a property investor.

In April 2014, she published her first book No B.S. Guide to Property Investment – Dirty Truths and Profitable Secrets to Building Wealth Through Properties. The book is now on its fourth print and is a bestseller at Kinokuniya and Times Bookstore.

Ip founded Property Club Singapore to provide a neutral platform for the learning and networking of like-minded private property buyers, investors and owners. Seminars, workshops and networking sessions are organised regularly for club members.

Visitors to the SMART Expo stand to win exciting shopping vouchers instantly (terms and conditions apply). For each day of SMART Expo, a shopping voucher in the amount of SG$300 will be given to:

  • The FIRST four investors who sign a deal and make a deposit payment for an overseas property with an exhibitor onsite, or
  • The FIRST investor who signs a deal and makes a deposit payment for an alternative investment with an exhibitor onsite.

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Small business risks – how to mitigate them by taking little steps

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for the source.
Author: Ravi Philemon

Small business risks are inevitable, but you can mitigate them if you take little steps

If you’re a small-business owner, you’re by definition a risk-taker. The danger, however, of being comfortable with taking leaps of faith is that you can sometimes overlook smart and simple ways to minimise small business risks which will damage your leap, ending in a fall.

small business risksHere are seven ways you can mitigate small business risks:

1. Be cash-conscious
The number one risk for most small businesses is improper cash-flow management. Calculate every month how much money you have on hand and how long it will last if your income dries up. Also evaluate monthly your total accounts payable and the number of days accounts are outstanding because a slowdown in accounts payable will lead to cash-flow crunches.

Avoid those crunches by creating a contingency plan and setting aside three to six months of operating costs in reserves. In the contingency plan, ask where your business would be three to six months from now if you lost your biggest client. Which expenses could you cut? Which would you have to keep paying? That number of three to six months is variable because you could have cash-flow problems for various reasons. Losing a key customer could take away 50 per cent of your revenue, but it might also take away 50 per cent of your expenses.

2. Insure against your specific risks
It’s not enough to purchase standard insurance policies. You must know the specific risks your business faces and insure against them. There are a lot of key risks that business owners don’t realize they’re not covered for. If your business includes an online component, determine how effectively your policies cover that aspect of your business.

3. If your business changes, your insurance should, too
Meet annually with a trusted insurance broker to determine whether your business has changed in significant ways that require modifying or adding coverage. Go through a checklist of coverages and have a discussion. What new things have you done in the last year? Have you acquired a company, introduced a new product, begun to do business in a new state or country, hired different people — all those things might trigger a new risk.

4. Insure key people
If key staffers leave or can’t perform their duties, your entire business could fail. You’ve got to have key-person insurance on anyone who’s mission-critical to your business. If you already have key-person insurance, review your policy quarterly because it may be outdated if your business has grown dramatically.

5. Use contractual indemnification clauses
Seek indemnification for potential damages caused by other businesses and people your business relies on regularly. For example, if you distribute a piece of software to your customers, and if the provider didn’t have the rights to the software, and you get sued. That’s where indemnification comes in. But it’s only as good as the finances of the other party. If you’re worried the finances on the other side of the contract aren’t sufficient for the possible risk, you can contractually require the other company to maintain insurance.

6. Give yourself an out
If you launch a new venture or enter into a new contract, you need to be able to cut your losses if it goes bust. Your contract should cover how you can end the relationship, and what happens when you do.

7. Create separate entities
Any time you take on a new risk, consider creating a new legal entity. If a new risk involves the same market but a different set of customers, you probably don’t need a new entity. But if it adds additional risks from a monetary, lawsuit or partnership standpoint, you need a separate entity. Any time you cross state lines, add partners, or add legal risks your current business doesn’t already deal with and that you’re not insured for, look at separate legal structures.

Also use separate entities to prevent the loss of your assets. Whenever significant long-term assets exist, consider a separate holding entity. Real estate is the prime example. Put property into a separate entity, and rent it back to the business. Another example could be patents for your products.

Don’t shy away from creating new entities because of the cost. The key to minimising small business risks is foreseeing and preparing for them. Small-business owners can get off track by falling into the prediction trap. You assume that what happened yesterday is going to happen tomorrow. But you need to be really clear on the small business risks affecting your business model.

How to Secure a SME Loan Quickly

If you are searching for an SME loan, the loan consultants at iCompareLoan can set you up on a path that can get you a it in a quick and seamless manner. Our loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. Find out money saving tips here.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

If you are looking for a new home loan or to refinance, our Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us for your business expansion needs.

Contact us for advice on a new home loan.

Contact us for home loan or refinancing advice.

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Duxton Road conservation shophouses for sale at $11m

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for the source.
Author: Ravi Philemon

Pair of two-storey Duxton Road conservation shophouses facing the Six Senses Duxton up for sale with an indicative price in the region of $11 million

JLL, as the exclusive marketing agent, is proud to present for sale 39 & 40 Duxton Road – a pair of two-storey conservation shophouses nestled in the exclusive Duxton Hill enclave of Tanjong Pagar.

Duxton Road conservation shophouses

Image credit: JLL

Under the Draft Master Plan 2019, the Duxton Road conservation shophouses is zoned “Commercial” and is located within the Tanjong Pagar Conservation Area. The shophouses have a combined land area of 2,161 sf and an estimated built-up area of 3,929 sf. The property is fully leased and is currently used as a nightclub on the ground floor and offices on the upper floor.

The Duxton Road conservation shophouses are in close proximity to Tanjong Pagar MRT Station (550-metres) and the upcoming Maxwell MRT Station (350-metres), which is slated to open in 2021.

Tanjong Pagar is one of Singapore’s trendiest locales, characterised by its myriad of popular F&B, exclusive retail and dynamic lifestyle offerings. Hailed as a food haven, Tanjong Pagar is home to several highly acclaimed F&B concepts, including four Michelin Star Restaurants and 11 Michelin Bib Gourmand recommended eateries. Michelin Star restaurants in the area include Meta, Rhubarb, Ma Cuisine and Burnt Ends.

As part of the URA’s urban renewal efforts, the area is currently undergoing robust growth and rejuvenation. New developments including Tanjong Pagar Centre, the new Maxwell Chambers and Frasers Tower, will bring growth to the area and further cement the locale as a key commercial and lifestyle hub.

Mr Clemence Lee, Senior Director, Capital Markets, JLL, said: “39 & 40 Duxton Road presents an excellent opportunity for investors to acquire an asset in the highly sought-after Duxton Hill locale. Its multitude of offerings from fine dining restaurants, bustling bars, trendy retail boutiques to upscale fitness gyms and studios makes for a captivating and popular go-to spot for both visitors and locals. Furthermore, the recent opening of the six star boutique hotel, Six Senses Duxton, which is located just opposite the subject property has channelled further buzz to the area.

With 39 & 40 Duxton Road’s excellent location and attributes, such as its rare nightclub approval, stable rental income and efficient layouts, we expect to receive good interest from both investors and end-users.”

The guide price for the Duxton Road conservation shophouses are $11 million reflecting $2,800 psf on estimated GFA.

As the Duxton Road conservation shophouses sit on land zoned for commercial use, foreigners are eligible to purchase the property. There is also no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) payable for the purchase of the property.

39 & 40 Duxton Road is for sale via an Expression of Interest exercise that closes on Wednesday, 6th November 2019 at 3pm.

Mr Paul Ho, chief mortgage officer at iCompareLoan, said, “the location of the Duxton Road conservation shophouses makes it an attractive buy. From fine dining restaurants, bustling bars, trendy retail boutiques to upscale fitness gyms and studios, everything is within stone’s throw from the shophouses.”

Mr Ho added, “the six star boutique hotel, Six Senses Duxton, which is located just opposite the subject property, will also make the property an attractive buy.”

The property is located within the heart of Kampong Glam historic district – once Singapore’s traditional Malay enclave that has been transformed into today’s bustling hub offering a diverse mix of cultural, entertainment, F&B and lifestyle attractions frequented by both locals and tourists. The 5 freehold conservation shophouses is expected to garner keen interest from savvy investors with a medium-to-long-term investment horizon who are seeking to benefit from future rental upside and capital appreciation, in addition to enjoying immediate rental income.

The biggest gainers following the 2018 property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.

One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.

Mr Ho said, “shophouses are perceived as attractive investments because they can hold their values because of their central locations and the freehold/999-year-leasehold of many of these properties. Shophouses are also valued because they give prominent presence to a business entity for them to be visible in a highly competitive environment.”

How to Secure a Home Loan Quickly

Are you planning to invest in private properties but ensure of funds availability for purchase? Don’t worry because iCompareLoan mortgage broker can set you up on a path that can get you a home loan in a quick and seamless manner.

Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out some of our money saving tips here.

Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan.

For refinancing advice.

 

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Cascadale relaunches en bloc sale tender with reserve price of $270m

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Author: Ravi Philemon

Cascadale is a freehold district 16 development strategically positioned within Changi City, Singapore’s upcoming aviation development hub

Cascadale, a 134-unit freehold residential development located near the Singapore University of Technology & Design (SUTD) and the Singapore Expo, is making its second attempt at a collective sale, announced marketing agent JLL.

The 167,528 sqft site is zoned ‘Residential’ under the 2014 Master Plan. With a gross plot ratio (GPR) of 1.6, the site has an allowable building height of up to 12 storeys or 45 metres Above Mean Sea Level (AMSL), subject to approval from the relevant authorities.

Located a short 350-metre walk to Upper Changi MRT station, Cascadale is only minutes’ from SUTD, Changi City Point, Changi Business Park, the Singapore Expo, Changi Airport and the Jewel.

According to Mr Karamjit Singh, Senior Consultant at JLL, “Major development plans are underway for Changi Airport and its surrounding locations. The iconic Jewel at Changi Airport continues to receive significant global attention amongst locals and tourists, with much anticipation over the future mega Terminal 5, which is set to cater to the doubling of tourist arrivals in Singapore.”

The recent unveiling of the draft 2019 Master Plan highlighted plans to transform the Changi East area into an innovative lifestyle and economic cluster, centred on aviation-related businesses and industries. Eventually, the area is poised to form a complete ecosystem where residents can work, live, play and learn.

In conjunction with these massive expansions and the introduction of the Cross Island MRT line, just last month the Land Transport Authority announced major plans to enhance connectivity in the area on all fronts. Plans include expanding and realigning existing roads and expressways leading to Terminal 5 and the building of a new 3.5 km cycling path along Xilin Avenue and the Tanah Merah Coast Road complementing existing park connectors.

“From a private housing supply perspective, there is no new yet-to-be-launched condominium project in District 16 in the pipeline. With the estimated 30,000 professionals working in Changi Business Park and as the plans for the Changi City take form, the demand and values for homes there are expected to rise by 10% to 20% over the next three to five years,” added Mr Singh.

Cascadale may be redeveloped into a condominium project comprising up to 292 units with an average size of 85 sqm per apartment, subject to approval and payment of development charges. The site’s proximity to the airport and an established business park also makes it attractive for redevelopment into serviced residences, subject to approval from the authorities.

cascadale

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The owners’ reserve price of $270 million translates to a land rate of approximately $1,065 psf ppr, after factoring an estimated development charge of about $15.5 million and before any bonus gross floor area.

Mr Singh continued, “Relatively strong sales achieved by new suburban projects in the second and third quarters of this year point to a resilient market for affordable homes. Some projects have been consistently selling between 50 and 100 units every month, well past their initial launch. The new project on Cascadale’s site fits such a profile nicely, where demand is expected to remain strong.”

The tender for Cascadale closes on Wednesday, 6 November 2019 at 2.30 pm.

The vibrant en bloc sale market was checked with the introduction of the property cooling measures introduced by the Government in July last year. The Government said the property cooling measures were necessary to check sharp increase in prices, which could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply.

Some observers said that the en bloc sales market will be dampened by the cooling measures. As developers become wary of end-demand and are hurt by the 5 per cent non-remittable Additional Buyers’ Stamp Duty (ABSD) on land purchase, it is expected to have an impact on their offer prices.

Before the introduction of the property cooling measures, overall private property prices rose across most market segments, with the largest price surge seen in the Core Central Region (5.5%) and Outside of Central Region (5.6%).

As developers’ existing stock continues to diminish and supply of completed homes remain low, many projects especially those in the CCR have raised prices of their unsold units, some by even double-digits this year. Private residential market continued to gain traction with individual re-sellers have also seized the opportunity of increasing their asking prices in light of the more positive market sentiment fueled by the recent collective sales frenzy.

The higher launch prices at some new projects have however slowed the buying momentum in the primary market and sales volume has dipped considerably quarter-on-quarter. While overall sales had slipped quarter-on-quarter, it rose marginally on a year-on-year basis.

How to Secure a Home Loan Quickly

Are you planning to invest in private properties but ensure of funds availability for purchase? Don’t worry because iCompareLoan mortgage broker can set you up on a path that can get you a home loan in a quick and seamless manner.

Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out money saving tips here.

Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan.

For refinancing advice.

 

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