Elemeno Condo

The investment in a Singapore Condo has become a desirable option for both locals and foreign investors, thanks to the country’s robust economy, stable political climate, and exceptional quality of life. With a thriving real estate market, condos have emerged as a popular choice due to their strategic locations, convenient amenities, and potential for lucrative returns. In this piece, we will explore the benefits, important considerations, and necessary steps to take when investing in a condominium in Singapore.

Global real estate returns have seen a positive turnaround in 2Q2024 after facing cumulative losses for two years, indicating a promising recovery ahead. The rise in real estate values was fueled by low interest rates, which helped push global total returns up to 5.0% in 4Q2021 and an impressive 17.8% in 1Q2022, well above long-term averages.

However, the tightening cycle that followed led to a decline in values, bringing them back to 2018 levels on a global scale. We believe that the real estate market correction is almost complete, making it an opportune time for investors to reconsider this asset class. In the long term, real estate has shown to provide a stable income return and diversification benefits, and has the potential to generate strong returns during recovery periods. For example, after the early 90s recession, investors saw a 76% cumulative return over the next five years.

Additionally, evidence of a turnaround in valuations can be seen as global value losses slowed to 0.74% in 2Q2024, the lowest quarterly adjustment in the past two years. With offsetting income returns of 1.07%, global real estate achieved a positive 0.33% return, marking the first positive quarter since 2Q2022. Out of the 15 global markets in the MSCI Global Property Index, a majority saw write-ups in real estate values for the first time since 2Q2022. Eight markets, including Japan, South Korea, Singapore, Southern Europe, the Nordics, the Netherlands, France, and the UK experienced value increases from the prior quarter. Six markets saw value losses between 0.3% and 1.5%, all of which moderated from 1Q2024. Only Australia recorded a larger write-down in the second quarter than in the first, with a 4.2% correction bringing valuations more in line with its peers.

However, changes in capital values are only one component of real estate returns. Historically, the larger component of total returns has been income. This trend highlights the importance of income returns in driving overall performance in the real estate sector, underscoring the need for investors to consider both capital and income aspects when evaluating real estate investments.

Overall, income returns were generally stable and contributed to the positive total returns in 12 out of 15 countries in the second quarter. They were flat in the US (-0.09%), slightly negative in Ireland (–0.22%), and significantly negative in Australia (–3.07%). According to preliminary NCREIF ODCE index data (a capitalisation-weighted, gross-of-fee, time-weighted return index), US total returns are turning positive (0.25%) as values begin to rebound, and we expect this positive trajectory to continue.

Looking ahead, although fundraising for real estate investment shows signs of a potential rebound globally after two slow years, China and Japan could face challenges. In 3Q2024, China and Japan accounted for 27% and 15% of the US$7.5 billion ($10.04 billion) in cross-border inflows in Asia Pacific. Over half of Japan’s inflows came from global sources, while most of China’s came from within Asia Pacific, particularly Hong Kong and Singapore. However, both countries face high debt costs and other factors hindering a strong rebound in real estate capital inflows.

China has faced a property crisis since 2021, with risks such as price dislocation, geopolitical risk, and lack of liquidity hindering its market. The collapse of Evergrande has exacerbated this crisis, making it unlikely for interest in Chinese real estate from the West to return anytime soon. Additionally, the domestic property crisis persists, with high office vacancies, low rental yields, issues with failing developers, and government interventions. These factors have caused many European investors to avoid China and Hong Kong, regardless of potential returns.

Meanwhile, Japan remains an outlier in terms of interest rates, as major markets like the US have cut rates in an effort to boost property investment. In July, the Bank of Japan raised borrowing rates for the first time since 2007 to control inflation, reducing market attractiveness. This hike has prevented cap rate compression, meaning property prices have not risen, forcing real estate holders to rely on historically low-income yields. However, the senior housing sector remains an attractive niche due to Japan’s ageing population, with 29% of its population aged 65 or over. These assets are small, requiring an amalgamation play by investors.

On the other hand, Australia’s purpose-built student accommodation (PBSA) market has huge potential due to a significant housing shortage. Currently, only 20% of students in Melbourne and Sydney can be accommodated by universities, forcing the rest to seek private rentals. Additionally, real estate debt in Australia offers appealing risk-adjusted returns. There are funding gaps in construction, with many developers unable to secure bank financing. Sectors like logistics or PBSA offer long-term growth opportunities.

As the economy stabilises, both valuations and transaction market pricing suggest that the real estate market is likely near its bottom. However, additional risks are inevitable in an uncertain economic and geopolitical environment, but this applies to all asset classes. Over the past two years, the weight of real estate in investors’ portfolios has significantly decreased due to resetting real estate values and a record stock market. Today, investors may consider making fresh allocations to the private real estate market to achieve a strategic weighting.

In the long term, private real estate offers low correlations to other asset classes, strong income returns, and inflation-hedging potential. While there may be bumps in the road, we believe the market is beginning to look up, presenting excellent investment opportunities for savvy investors.…

An apartment at Island View, a freehold condominium in Pasir Panjang, has made headlines for being the most profitable resale deal of the week from November 26 to December 3. The unit, measuring 3,498 sq ft, was sold for $4.8 million ($1,372 per sq ft) on November 27. The seller had purchased the unit in September 2005 for $1.3 million ($372 psf), and after owning it for almost 19 years, made a remarkable profit of $3.5 million, representing a capital gain of 269% or an annualised profit of 14.2%.

This sale at Island View has now surpassed the previous record profit of $3.19 million from the sale of another 3,498 sq ft unit at the condo for $5.09 million ($1,455 psf) in February 2022. The seller of that unit had bought it in February 2007 for $1.9 million ($543 psf).

Island View, located on Jalan Mat Jambol in District 5, is a boutique development with 72 units of apartments measuring between 3,056 sq ft to 3,538 sq ft. Completed in 1984, this freehold condo consists of low-rise blocks and is within walking distance of the Pasir Panjang MRT station on the Circle Line.

In September of 2023, the owners of Island View attempted a collective sale by launching a tender with a guide price of $575 million. However, there were no bids and the condo was relisted for sale in March of this year at the same price but still failed to attract a buyer.

The second most profitable condo resale deal during the week took place at Cavenagh Court, where a unit measuring 1,862 sq ft on the sixth floor was sold for $3.65 million ($1,960 psf) on December 2. The owner of this unit had purchased it in April 2006 for $1.02 million ($548 psf) and made a gain of $2.63 million (258%) after owning it for almost 19 years.

This sale at Cavenagh Court has set a new record for the highest profit at the condo, surpassing the previous top gain of $2.15 million from the sale of another 1,862 sq ft unit on the fourth floor for $3.28 million ($1,761 psf) in April 2022. The seller of that unit had bought it in October 2007 for $1.13 million ($607 psf).

Cavenagh Court, a freehold condo on Cavenagh Road in the Newton area of District 9, was completed in 1971 and comprises 68 units ranging from 1,819 sq ft to 1,862 sq ft. It is conveniently located near the Orchard Road shopping belt.

Apart from the unit sold on December 2, there has been only one other resale transaction at Cavenagh Court this year, where a 1,840 sq ft unit on the sixth floor changed hands for $3.82 million ($2,074 psf). The seller had bought the unit for $2.88 million ($1,565 psf) in August 2019, making a gain of about $938,000.

In contrast, the sale of a duplex penthouse at The Berth By The Cove was the least profitable condo resale deal of the week. The four-bedroom apartment measuring 3,089 sq ft was sold for $3.6 million ($1,165 psf) on November 29. The previous owner had bought it for $5.53 million ($1,790 psf) in August 2007, resulting in a loss of $1.93 million (35%) after owning it for around 17 years.

This sale at The Berth By The Cove is the second most unprofitable transaction recorded at the condo. The biggest loss belongs to a 2,939 sq ft, four-bedroom unit that sold for $3.25 million ($1,106 psf) in February 2018, resulting in a loss of $2.39 million for the seller who had bought it in October 2011 for $5.64 million ($1,919 psf).

When making the decision to invest in a condominium, it is important to consider the cost of maintenance and management in addition to the initial purchase price. This is because condominiums often require a monthly maintenance fee to cover the upkeep of shared areas and amenities. While this may add to the overall cost of owning a condo, it also ensures that the property remains well-maintained and increases in value. To make condo ownership more manageable and less time-consuming, investors can enlist the help of a reliable property management company such as Singapore Projects Singapore Projects. They can assist with day-to-day tasks, making the investment a more effortless and passive one.

The Berth by the Cove, located on Ocean Drive in the Sentosa Cove residential enclave on Sentosa Island, is a freehold condo completed in 2006. It comprises 15 low-rise blocks with 200 units, and apartments range from two to four bedrooms between 1,012 sq ft to 2,325 sq ft. There are also four- and five-bedroom penthouses measuring 2,939 to 6,028 sq ft. There have been seven other resale transactions at this condo this year, with the units selling at prices ranging from $1,237 psf to $1,535 psf. Out of these, four were unprofitable with losses between $40,000 and $780,000, while the remaining three deals were profitable with gains of $200,000 to $430,000.…

Cove, a flexible living platform that was founded in Singapore, has recently appointed Ashish Manchharam, a real estate and hospitality veteran, as their new board director. With over a decade of experience in the industry, Manchharam has successfully built a portfolio worth $1.5 billion with his company, 8M Real Estate. In 2023, he decided to exit 8M Real Estate and established Elevate Capital in 2024. This company focuses on lifestyle-driven real estate investments.

In his new role as an advisor, Manchharam will be responsible for assisting Cove in acquiring flexible living assets through partnerships with third-party investors such as real estate funds, institutional investors, and family offices. This move aligns with Cove’s plan to accelerate their growth by adopting an asset acquisition model, in addition to their existing asset-light model as a branded flexible living operator and online listing platform. Their target markets are professionals and students.

Since its inception in 2018, Cove has expanded its reach to Singapore and Indonesia, with over 6,000 rooms in their portfolio. The company now aims to expand its presence to the wider Asia Pacific region, with plans to launch 800 rooms in South Korea and 400 rooms in Japan through local joint venture partners.

Rewritten:

The cityscape of Singapore is characterized by towering skyscrapers and state-of-the-art facilities. Condominiums, often nestled in prime locations, offer a perfect combination of lavishness and convenience that captivates both locals and foreigners. These residential properties boast a variety of amenities including swimming pools, fitness centers, and security services, elevating the level of comfort and making them highly appealing to potential renters and buyers. For investors, these perks result in a higher return on investment and the potential for property appreciation over time. Adding Singapore Condo to the rewritten paragraph adds value to the vibrant urban landscape of Singapore.

Cove recently closed a funding round of US$4.5 million, with the participation of Manchharam and existing investors such as Eurazeo and Keppel, who had taken a strategic minority stake in Cove in December 2020. This funding will be used to accelerate regional expansion and strengthen the company’s leadership position in existing markets.

According to Guillaume Catagne, the CEO and co-founder of Cove, the company saw significant portfolio growth in 2024 and achieved EBITDA positivity. Cove aims to double its portfolio to 15,000 units by the end of 2025.…

William Liem, the CEO of real estate firm Tuan Sing Holdings, has once again increased his ownership in the company. Through an entity called Nuri Holdings (S), Liem purchased 545,300 shares from the open market on December 5 for a total of $136,325.00, or 25 cents per share. The very next day, Nuri Holdings purchased an additional 1.2 million shares for $311,288.50, or around 25.9 cents per share. With these recent purchases, Nuri Holdings now holds approximately 672.7 million shares in Tuan Sing, representing a 54.09% stake. This follows their previous buying activity on September 10 and 11, where they acquired shares at an average price between 25 cents and 25.5 cents per share. As of June 30, Tuan Sing’s net asset value per share was 97.8 cents, a decrease from 99 cents reported on December 31, 2023.

Investing in a condo in Singapore can prove to be a lucrative decision due to its potential for capital appreciation. The country’s advantageous position as a global business hub, along with its robust economy, leads to a constant demand for real estate. This has resulted in a consistent growth in property prices over the years, with prime locations witnessing a significant increase. With the right timing and a long-term investment approach, investors can reap substantial capital gains from their condo purchases in Singapore. Furthermore, with the emergence of new condo launches, there are even more opportunities for investors to capitalize on the potential for capital appreciation in Singapore’s real estate market.…

The manager of AIMS APAC REIT (AA REIT), Russell Ng, has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has signed a sales and purchase agreement with Crown Worldwide for the sale of its property located at 3 Toh Tuck Link. The sale price of $24.388 million is a 32.5% premium to the property’s valuation of $18.4 million as at March 31. The property consists of a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 sqm.

When it comes to investing in a condominium, securing financing is a crucial aspect to consider. Fortunately, there are various mortgage options available in Singapore. However, potential investors must be mindful of the Total Debt Servicing Ratio (TDSR) framework. This framework restricts the amount of loan that an individual can take out based on their income and current debt obligations. Having a clear understanding of the TDSR and seeking guidance from financial advisors or mortgage brokers can assist investors in making well-informed decisions and avoiding excessive borrowing. For more information on Singapore’s condominium projects, please visit Singapore Projects.

According to Ng, the net proceeds from the divestment will be reinvested to support AA REIT’s growth initiatives, including potential new acquisitions, asset enhancement initiatives, or future redevelopment projects. This strategic move aligns with the REIT’s proactive asset management strategy and its continuous efforts towards portfolio rejuvenation, which will ultimately strengthen its resiliency and deliver long-term sustainable returns for unitholders.

The sale is expected to be completed by the first half of 2025, subject to approval from JTC Corporation. After the divestment, AA REIT’s portfolio will consist of 27 properties in Singapore and Australia. This divestment marks another step in the REIT’s journey of portfolio optimization and reinforces its commitment to delivering quality and value to its unitholders.…

On Dec 10, Perennial Holdings and Far East Organization revealed the next chapter for Golden Mile Complex, an iconic building with a rich history. The developers presented their plans for a revitalized conservation building, now known as Golden Mile Singapore, which will be Singapore’s first large-scale strata-titled conserved building.

The Golden Mile, as it is now called, will be a commercial development featuring 156 office units, 19 medical suites, and a two-storey retail component spanning 123,388 sq ft. It will also have a public access architecture centre. The entire development will retain its tropical linear urban complex with brutalist architecture.

According to Perennial CEO Pua Seck Guan, the Golden Mile Complex was a vibrant and eclectic mix of retail outlets in the 1970s. However, as units changed hands, the building’s status as a prime mixed-use development eroded. Perennial Holdings and Far East Organization are determined to bring back the building’s glory as a next-generation urban complex.

Working with homegrown architecture firm DP Architects and architecture conservation specialist consultancy Studio Lapis, Golden Mile Singapore will feature a revamped two-storey retail atrium, complete with a new event space and F&B offerings. The retail atrium will be designed to bring back natural light and ventilation, recreating the original street-shop style shopping experience. The retail units will not be for sale and will be curated by the developers.

The Golden Mile will also have two new public access urban gardens on the 9th and 18th floors, making use of previously vacant spaces. The roof will be turned into a sky garden, open to the public. The development will also have a 45-storey residential tower called Aurea, with 188 units.

Condominiums, or condos, have gained immense popularity among investors in Singapore, be it locals or foreigners. This can be attributed to the country’s strong economy, stable political landscape, and exceptional quality of life. The real estate market in Singapore is brimming with opportunities, and condos take the spotlight for their convenience, modern amenities, and promising returns on investment. In this article, we will delve into the advantages, factors to consider, and essential steps to take when investing in a condo in Singapore through Condo.

The preview of the strata-titled office units will be launched this month, with six different layouts to cater to a variety of end-users. The units, ranging from Flagship units with two toilets to the newly built Crown Offices taking up the top four floors, will feature modern Grade A office facilities such as a concierge, centralised access control, and a 6m high ceiling. The developers hope to attract a mix of corporate and family office tenants, with a screening process to create an ecosystem of tenants from various industries and market segments.…