Tag Archives: Vista Park

5 highest yielding rental properties in Singapore

Posted on 28 May 2015 | Comments Off on 5 highest yielding rental properties in Singapore

Overall gross rental yields of non-landed private homes in Singapore range from 2.7 percent to 3.9 percent, according to an OrangeTee report.

Based on developments tracked by the consultancy, average rental yields in the Core Central Region (CCR) are about 2.7 percent to 3.5 percent, while the Rest of Central Region (RCR) are around 2.8 percent to 3.6 percent. But projects in the Outside Central Region (OCR) command the highest rental yields of between 3.2 percent and 3.9 percent.

In addition, there are 34 non-landed developments in the city-state that have rental yields of at least four percent and these rental gems have common characteristics. First, the majority (19) are located in the OCR, given the lower prices of suburban properties.

“As prices are one of the main determinants for rental yields, and since prices in the suburbs are usually relatively lower compared to the central region, the rental yields for suburban projects tend to be higher,” noted OrangeTee.

Second, 29 or 85 percent of them are 99-year leasehold projects due to the relatively lower psf price versus freehold homes.

“As tenants are generally not concerned about the tenure of the property, leasehold properties tend to have an advantage as compared to freehold when looking purely at rental yields,” shared the consultancy.

Developments with a large proportion of shoebox units also have higher gross rental yields. Suites @ East Coast has a large proportion of units under 50 sqm and has the highest rental yield of 5.7 percent among the 34 non-landed projects.

“However, one should not blindly jump onto the shoebox bandwagon. The performance of shoebox units is not homogeneous across the market, one should consider the rental demand and available supply of such units in the vicinity,” stated the report.

Interestingly, 20 of the 34 non-landed private residential projects are not within walking distance of 400 metres or less from an MRT station.

“This is understandable because projects located near MRT stations command a premium over projects located further away,” said OrangeTee. Although some tenants are willing to pay higher rents for a convenient location, there may be differences in rental and sale premiums.

“This would explain why projects that are relatively inaccessible are still able to command high rental yields,” added the report.

The non-landed developments studied have more than 100 units, while the resale prices span from Q2 2014 to Q1 2015. To mitigate the effects of outliers that could skew rental yields, projects with fewer than 20 rental transactions and five resale deals were excluded. Privatised HUDCs and executive condominiums (ECs) were also omitted. Consumers should note that gross yields do not include other costs, such as maintenance fees and vacancy costs.

Below are the top five non-landed private residential projects with the highest gross rental yields.

1. Suites @ East Coast
Region: OCR
District: 15
Close to MRT: No
Tenure: Freehold
Average Rent: $5.42 psf
Sales Price: $1,140 psf
Estimated Gross Yield: 5.7 percent

2. The Clift
Region: CCR
District: 1
Close to MRT: Yes (Tanjong Pagar)
Tenure: 99-Year
Average Rent: $7.36 psf
Sales Price: $1,858 psf
Estimated Gross Yield: 4.8 percent

3. Vista Park
Region: RCR
District: 5
Close to MRT: No
Tenure: 99-Year
Average Rent: $3.44 psf
Sales Price: $886 psf
Estimated Gross Yield: 4.7 percent

4. Park West
Region: OCR
District: 5
Close to MRT: No
Tenure: 99-Year
Average Rent: $2.87 psf
Sales Price: $745 psf
Estimated Gross Yield: 4.6 percent

5. Rivervale Crest
Region: OCR
District: 19
Close to MRT: No
Tenure: 99-Year
Average Rent: $2.81 psf
Sales Price: $759 psf
Estimated Gross Yield: 4.4 percent

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En bloc sale market picking up

Posted on 11 May 2011 | Comments Off on En bloc sale market picking up

The en bloc sale market has been feverishly picking up activity this year.

Apart from more en bloc properties being offered for sale, analysts say that the average prices for the sites have also increased by more than 50 per cent compared to a year ago.

However, the offer prices have yet to surpass the levels seen by the market at the peak of the property boom in 2007.

Since the start of this year, some 20 collective sales have been announced.

Analysts say that 9 deals have been closed so far, worth a total of S$880 million.

This compares with 34 collective sales deals completed last year totalling S$1.7 billion.

Analysts say that average transaction sizes have increased, from S$52 million in 2010 to over S$80 million this year as property developers are bullish on the economy.

Donald Han, vice chairman of Cushman and Wakefield, said: “Bottom line (is) so long as the economy grows within the 4 to 6 percent, I think generally the confidence will be there in terms of investors coming into Singapore, looking to investing in this part of the world.

“It’s going to be a fairly active market. I think we’re beginning to see the sort of response as what we saw in the first quarter. Confidence will start coming back again, and if we’re beginning to see more cooling measures then that puts a hinder on project sales movement.

“Then developers might hold back again. So it’s a touch-and-go scenario depending on government measures, if any.”

Two sites were launched for collective tender on Wednesday.

Vista Park, a large leasehold residential redevelopment site off Pasir Panjang Road, has been put up for sale with a guide price of S$338 million. The tender will close at 3.00pm on June 30.

Separately, a post-colonial development in River Valley with a unique tenure of nearly a million years is expected to fetch a reserve price in the range of S$72 million to S$80 million. The tender closes at 2.30pm on June 9.

Analysts say the market for en bloc sales currently favours smaller developments as large land banks continue to be dominated by government land sales.

Mr Han said: “I think generally I tend to be a bit more bullish on the smaller ones because the more bite-sized (they are), the number of new players in the market will tend to be a bit more, compared to new entrance for large-sized projects.”

Analysts say the collective sale market for this year will be focused more on locations at city fringes such as Balestier and Katong. This is because the land banks offered for sale in these areas will likely be smaller in size.

Mr Karamjit Singh, managing director, Credo Real Estate, said: “Various en-bloc sites have different fortunes. Smaller ones are more successful because for smaller developers, en-bloc sites are their main source of land supply. Bigger developers, on the other hand, are more keen on government sites.”

Source : Channel NewsAsia – 11 May 2011

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Posted in En-bloc / Collective Sales, General, Property Market / Real Estate

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