Author: PropInvestSG

Why deflation hurts a real estate investor

Deflation is something many economists have made out to be an economic bogeyman, saying that it could be the worst possible outcome in any economy. Economists and investors would be rightly afraid, given the experience of Japan which is usually mentioned when deflation comes up. However, deflation is rare in the economies of today. This is largely due to the policies of central banks that have engaged in a campaign to create a consistent inflationary environment for their own economies. Japan is one example where deflation has had a severely negative impact. While it may sound scary, it isn’t...

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Feng Shui checklist when buying a house

Buying a house can be a life changing experience because of the amount of money, time and energy involved in choosing a perfect one. If you’re into Feng Shui, here are some tips to ensure that you choose the house that is best positioned to bring your family health, wealth and everything good in between. A home purchase is a long term investment decision. It is imperative to find the right house with good Feng Shui so that you and your loved ones can enjoy peace of mind. This is to make sure that all the boxes are ticked...

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House prices along MRT lines

How do MRT stations affect house prices? Are house prices much lower further out you go from the city than when you are nearer? I chanced upon the following few charts produced by SRX and found that some insights could be gained when location data combined with house prices was visualized in a manner that facilitiates a certain way of thinking. In summary, prices further out from the city (Raffles Place, City Hall, Bayfront areas) get progressively lower, which is to be expected, until they are about 40-50% of that in the city. While people intuitively know prices further...

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Robert Kiyosaki on how to get rich in property

  Watch Robert Kiyosaki speak on how he gets rich in property, and tips he has on investors new to the property market. Interesting points and insights on how he looks at real estate investments. Given his track record, it would be something to take note of and put into practice. Summary/transcript of video Being a real estate investor is really being an entrepreneur How young people can get into real estate at this point of time, given the market conditions and how the world is like, is to take a simple real estate investment course The best real...

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Best performing REITs year to date

Which are the best performing Singapore REITs since the beginning of this year? This post will answer that. First up, a chart speaks a thousand words. REIT performance Year to Date REITs returned an average of 20% since the beginning of 2017. That’s the dotted red line. Good for you and you did better than average if you were invested in CDL Hospitality Trust, Sabana REIT and Viva Industrial Trust. Not so good if you were invested in EC World REIT, Starhill Global REIT and OUE Commercial REIT as your returns are the lowest. It’s still high single digit...

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Shopping mall, office and hotel 2017 to 2020 future supply

To those interested, here are 3 tables that show the shopping mall, office and hotel buildings that will be coming up from 2017 to 2020. Investors can use this information in determining how REITs could be performing in future since property is the underlying asset driving the REIT’s revenue. Upcoming shopping mall openings as at 2017 Project Location Estimated NLA (sqft) Completion Marina One (The Heart) Marina Bay 140,000 2017 Singapore Post Centre Paya Lebar 177,000 2017 Paya Lebar Quarter Paya Lebar 340,000 2018 Northpoint City Yishun 330,000 2018 TripleOne Somerset Podium Somerset 70,000 2018 Jewel Changi Airport Changi...

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SPH REIT: Stable as is boring as is good

SPH REIT announced their financial results for the period ending 31 Aug 2017. This is a very stable counter that’s giving consistent distribution and yields. Has anything changed to affect its stability? Let’s take a look. All figures extracted from quarterly reports, financial statements and presentations. Gross revenue (blue line), net property income (orange) and distributable income (grey) have all been fairly stable since listing in 2014. Net property income has climbed faster than gross revenue, indicating that SPH REIT is able to control property level costs. That means unitholders have more distributable income, as evidenced by the slight...

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10 most commonly asked questions on Singapore REITs

REITs are a great investment tool given their income generating characteristics and tangible assets backing stock price valuations. In Singapore, there are now a total of 37 REITs, not counting the soon to be listed REIT that Keppel is bringing to market with US properties. For those interested in investing in REITs and getting a snapshot of how the market is performing, here are the top 10 most commonly asked questions that Phillip Capital get from retail and institutional investors. What is the impact of US rate hikes on REITs? Is it still safe to buy REITs? Apart from...

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23 charts showing 5 room resale flat prices across Singapore

Interested in seeing how 5 room resale flat prices have moved across Singapore since 2007? Here are 23 charts showing how they have trended across the last 10 years. Do check out an earlier post with 22 charts showing 4 room resale flat price trends. All information is taken from HDB’s website. If there are gaps in the chart, it means one of the following two things No resale transactions in the quarter Cases where there are less than 20 resale transactions in the quarter for the particular town and flat type. The median prices of these cases are...

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Lion-Phillip S-REIT ETF guide

This post will be a guide for those looking to invest in the Lion-Phillip S-REIT ETF. The ETF will be listed on SGX on 30th Oct 2017. The format of this post is that it will go through the key documents relating to the ETF. Lion Global Investors Limited, a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group, is one of the largest asset management companies in Southeast Asia. Established since 1986, Lion Global Investors are uniquely positioned to provide Asian equities and fixed income strategies and funds to both institutional and retail investors. Phillip Capital Management (S)...

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4 charts showing Singapore’s residential market supply peak might be over

For residential property investors, the upcoming supply pipeline is an important indicator to keep an eye on because of its impact on rents and prices in the market. Not long ago in 2013 and 2014, analysts were predicting that there would be doom and gloom in the Singapore residential market in 2016 and 2017 when the residential supply peak hit. They weren’t exactly wrong as prices has taken a tumble since 2013. It has however since picked up based on flash estimates provided by URA on 2 Oct 2017. The actual figures for 3Q 2017 will be released on...

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Would you like a shorter tenure home?

Prices in the Singapore property market has been on the decline lately, but this seems to likely only be a blip following large increases in the last few years. Rising home prices are not an issue faced in Singapore alone, with Hong Kong, Canada and Australia facing the same issue. How do policymakers respond to rising home prices that may put houses out of reach of most of the populace? One way is to tamp down on price increases by instituting measures meant to reduce demand and speculation, and at the same time increase the amount of land. Another...

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Improving office market in 2Q 2017

In the second quarter of 2017, island-wide office leasing activity had risen for two straight quarters. This is the strongest since 2015. Net new demand for office space in the first half of 2017 was about 780,000 sqft (about the size of CapitaGreen or MBFC Tower 1), higher than the 5 year average (2012-2016) of 710,000 sqft per annum. Grab moved into Marina One, taking about 100,000 sqft. Ocean Network Express also moved in, taking 50,000 sqft. Marina One has reached about 70% pre-commitment. Co-working space activity The Work Project’s 24,000 sqft space opened in OUE Downtown Gallery. Notable...

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2 signs the luxury residential market could be picking up

On the back of increased en-bloc sales activity and a bullish bid for a Beach Road site recently in Singapore, the overall residential market seems to be picking up. Here are 5 signs in the luxury market that show buyers slowly returning to the scene. Average price of luxury apartments rose in the first half of 2017 In the Core Central Region, the average prices of transacted apartments worth more than S$5m was S$2,446 in the first half of 2017. This is slightly higher than S$2,396 in the second half of 2016. CBRE believes that overall luxury prices should remain...

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Ascendas REIT’s latest annual report in 26 charts

For those lazy to look back into past annual reports to find out whether a REIT has performed well, here are a bunch of charts that show you how Ascendas REIT fared based on their latest 2016 annual report. As their portfolio consists of 100+ properties, I’ve split the charts into multiple ones so that it can be seen clearly. Decent property yields in the high single-digit range Property yields are important because they determine what yield level the REIT can trade at. Property yield here is calculated as gross income/valuation.   Healthy top line The main top line...

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