Author: PropInvestSG

Buying property in Singapore as a foreigner

So you’ve decided to head to the little red dot that is Singapore to work, settle down and stay for the foreseeable future. If you’re looking to buy a house, that might be a good choice if you’re staying for more than a few years. With the money put into an appreciating asset, you would save more than, as they say in Singapore, coffee money over a period of a few years. But where do you get started since you’re not a Singaporean? What rules, regulations and laws do you need to observe? Here’s a quick guide on what...

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How is the SIBOR determined, calculated and set?

The SIBOR rate is one of the most widely followed interest rate benchmark in Singapore due to the fact that practically all mortgage loans are priced off it. A small move up or down in the SIBOR rate has the potential to impact not just a few hundreds of millions of Singapore dollar denominated loans but a few billion. Here’s a quick primer on the calculation methodology for those who are interested in knowing how the SIBOR is really set, and I’m sure the Monetary Authority of Singapore (MAS) keeps tabs on the banks to make sure none of...

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HDB resale prices continue falling

HDB released their fourth qurater 2017 property market information and the Resale Price Index tracked by them showed a fall of 0.2% on a quarter on quarter basis and a fall of 1.5% on a year basis. The quarterly decline is less negative than the -0.7% registered in 3Q2017, but the decline of 1.5% on a yearly basis is the most severe since 4Q2015 when prices fell 1.6% y-o-y. Between 4Q2013 and 4Q2017, there has been only one quarter of positive yearly increase in 3Q2016, and that was for only 0.1%. Between the peak index reading of 149.4 in...

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Property news round up 28 Jan 2018

Foreign interest seen returning to Singapore residential market Foreign demand is expected to return to the Singapore residential property market this year, Bank of Singapore (BOS) believes. This is backed by the prospects of a price recovery and better leasing environment, as well as the fact that home prices have fallen to a sweet spot after four years of decline to render the market more affordable compared to other global cities. BOS head of strategy Eli Lee said in a report last Friday that the recent bullishness in the housing market has so far been largely driven by domestic...

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Outlook for Punggol after the Digital District announcement

The government recently in Jan 2018 announced the creation of the Punggol Digital District and the creation of 28,000 jobs between now and 2023. This news is likely to get property investors up and about, much like the announcement of the High Speed Rail Terminus being at Jurong East a few years ago. With the addition of that many jobs to the district, there will likely be demand for housing , especially if a portion of the 28,000 are expatriates and foreign workers. Also read: HDB resale prices continue falling Before plonking a couple of hundred thousand into a property...

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Executive Condominium market update

Here are a few private Executive Condominium projects with sales worth nothing in Dec 2017. In general, median prices for ECs sold in Dec 2017 came in at between S$761 psf to S$861 psf. The EC which had a transaction with the lowest price was Singature at Yishun with S$722 psf. The highest was The Brownstone where a unit moved at S$962 psf. From lowest to highest average prices transacted in Dec 2017, we have Signature at Yishun, Sol Acres, Westwood Residences, The Criterion, northwave, Inz Residence, Parc Life, The Visionaire and The Brownstone. In total, there were 100...

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Best performing REITs year to date

For the year to date until 22nd Jan, REITs have returned on average 2.6%. On an annualized basis, returns would be close to 50%. However, that large number is but of course due to the short term positive return. Returns will likely be volatile over the next few months as the Fed signals their intention to return to a normalized interest rate level – impacting interest rate sensitive REITs. Those with higher gearing such as IREIT Global, Mapletree Greater China Commercial Trust, Soilbuild REIT and Viva Industrial Trust may be at risk due to higher interest burdens. The returns...

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Property news round up 14 Jan 2018

MAS puts more scrutiny on bank loans for property development A spate of aggressive land deals by developers last year has prompted the Singapore central bank to take a closer look at the way banks are financing development projects. The Business Times understands that the Monetary Authority of Singapore (MAS) is collecting more data from banks through a new survey sent out to them last month. Some of the information sought by the MAS includes the size of banks’ exposures and details of the loan facilities granted for each project such as the key covenants and loan-to-value (LTV) ratios,...

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Portfolio update Dec 2017 [DD]

Just got started recently helping some loved ones to invest and keep track of their portfolio. With more of my experience in REITs, I decided that I should help one of them buy some REITs. Here’s the maiden post and holdings. Lippo Mall REIT Capitaland Retail China Trust SPH REIT Present portfolio IRR of 6.2%. Return multiples between 0.97 and 1.03 for the different counters. Portfolio return multiple averages out to 1.0. Portfolio dividend yield is 6.4% which is within my comfortable range of 6 to 7%. I might consider stretching to buy REITs which are 5-ish or 7-ish%...

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Manulife US REIT review

As part of potentially investing in Manulife US REIT, I am writing a set of posts to determine whether this could be an addition to my stock portfolio. In the spirit of trying to be objective (though I already have some bias toward buying the stock), I am going to try to approach this investment decision to buy Manulife US REIT with a blank slate. I will try to let the REIT speak for itself, and at the end of the day determine if it’s worth the addition. What is Manulife US REIT Manulife US REIT has assets in...

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Top 3 Influences of Technology on Real Estate

There had been 118 cases of completed mortgagee sales involving HDB flats from January 2013 to November 2017, according to a parliamentary reply from the Ministry of National Development on Wednesday (10 January). It stated this in response to a question from Gan Thiam Poh, Member of Parliament (MP) for Ang Mo Kio Group Representation Constituency (GRC). Notably, mortgagee sales happen when people default on their housing loans, resulting in banks auctioning off the property to reclaim the amount they lent plus interest. Gan also asked how many flat lessees have approached the Housing and Development Board (HDB) with...

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Interior design for your home during Chinese New Year

PropertyInvestSG 2 hours ago China’s Ping An Insurance Group and Landsea Group have become the latest mainland investors to wager on the country’s emerging rental housing market, as steep home prices in major cities fuel enthusiasm for the asset class. Ping An Real Estate, a unit of the Shenzhen-based insurer, has partnered with Landsea Green Properties to set up a $1.5 billion fund that will support the development of rental apartment projects in major Chinese cities. Landsea Green Properties, the listed platform of Nanjing-based Landsea Group, announced the venture in a filing to the Hong Kong stock exchange. The...

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Property news round up 7 Jan 2018

Big property deals surge to 10-year high Sales of big-ticket property transactions of S$10 million and above in 2017 surged to their highest level in a decade. This, however, was short of the record achieved in 2007, show latest figures from Savills Singapore and CBRE released separately to The Business Times. According to Savills Singapore’s preliminary tally as at Dec 27, investment sales of property reached S$35.64 billion, up 57.3 per cent from the S$22.66 billion in 2016. This was the best since the record S$41.1 billion during the 2007 property boom. Based on JLL’s figures, the surge in...

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Capitaland’s sale of 20 China malls

Capitaland today announced their sale of 20 China malls to Vanke, SCPG (a subsidiary of Vanke) and Triwater, an affiliate of a fund. According to their presentation slides, Capitaland Mall’s move is based on 4 strategies. Active reconstitution efforts to optimize their portfolio Focus on dominant malls in core city clusters Grow strong recurring income combining quality owned assets and 3rd party management contracts Transforming their mall portfolio into “The Future of Retail” In their slides, they point out that the portfolio being divested comprises of the holding companies of 20 malls across 19 cities. The 20 malls are...

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Riskiest REITs based on their beta

The Singapore stock exchange has many REITs to choose from and investors usually base their buying decision on dividend yields. But how many have stopped to think of the risk of a REIT? What is risk? By risk, I mean how much the price of a REIT fluctuates. I.e. its volatility In the finance world, the term beta is used to measure how volatile a stock is. In this regard, volatility is synonymous with risk. Higher volatility = higher risk. The market used in this context is the STI index. In other contexts, it can be used to mean...

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