July 2014 | Issue 14/07/02   

Editorial Article
Interest Rate Will Be Kept Low
Investors who bet on interest rate to go up from last year have lost out on a good year of commercial and industrial real estate investments capital gain and rental yield.

Remembering about the same time last year, I have an investor who said he is not investing because he agreed and is very confident that interest rate will rise soon. One year has passed and interest rate is still kept low. I think he has lost out quite a bit. I spent time explaining to him that it will be in the interest of USA for rate to be kept low but he thought otherwise.

Janet Yellen had said earlier that they will raise interest rate in the second half of 2015. Indeed, her latest indication is that she may want to keep interest rate low for the whole of 2016. Also, in Europe, ECB has adopted negative interest rate. Looks like the whole world wants to keep interest rate low. I strongly agree that the interest rate will still be kept low
for awhile and when it rises, it will do so slowly.

What’s next? Standing on the sideline for the next 1-2 years? Investors are already restricted with residential property investments due to the cooling measures. Of course, investors will and can continue to invest in other investment vehicles like commodities, equities etc. However, missing out on the real estate investments may not be the best because there are still plenty of opportunities in the commercial and industrial segments. There are still commercial and industrial investments with rental yield above 5% and 6% respectively excluding capital gain.

However, it is essential to learn how to invest in commercial and industrial
investments before plunging. Majority of investors are more familiar with the usual residential investments which are very different from commercial and industrial. Thus, getting familiar
with commercial and industrial requires proper guidance and training.

In view of the commercial market, the star performer this year should be the office sector. Office rental is increasing fast. CBD Grade A offices are enjoying a record high of about 97% occupancy. With rental expected to rise further, returns will rise in tandem making it attractive for investors. Also, office investments have lower barrier to entry. An investment budget (cash and loan) of about S$1 million will find you a good small office in CBD making it easier for investors to bite.

In general, commercial and industrial investments will continue to do well for the rest of the year.

 
David Poh, CEO
 
Recent Caveats
Address Project Sold On Sale Price (S$) S$ PSF Bought On Holding Period (m) Profit (S$)
36 Duxton Hill    11-12-13 11,000,000 8786 10-12-12 12 4,120,000
39 Duxton Hill    07-01-14 9,200,000 7337 - - -
60 Duxton Rd    17-03-14 5,900,000 5273 22-07-10 44 3,900,000
100 Peck Seah St #07-14   11-12-13 1,772,840 3436 09-04-12 20 333,540
47 South Bridge Rd    11-03-14 6,500,000 4461 - - -
4/5 Stanley St    09-04-14 16,000,000 5924 - - -
85 Tanjong Pagar Rd    08-01-14 8,350,000 6331 03-12-10 37 4,450,000
23 Teo Hong Rd    06-03-14 3,750,000 2563 16-08-12 19 1,000,000
54 Tras St    15-01-14 10,100,000 6250 13-02-13 11 2,400,000
34 Craig Rd #02-10 Chinatown Plaza 02-12-13 2,628,000 1732 07-11-97 193 1,328,000
133 New Bridge Rd #17-04 Chinatown Point 16-04-14 1,500,000 2022 01-08-07 81 550,000
150 South Bridge Rd #03-08 Fook Hai Bldg 10-03-14 588,888 1956 15-02-13 13 153,888
17 Phillip St #08-00 Grand Bldg 01-01-14 3,700,000 1764 - - -
10 Anson Rd #16-15 International Plaza 26-02-14 1,065,636 2253 22-06-07 80 378,893
10 Anson Rd #17-03 International Plaza 17-02-14 1,059,864 2241 09-11-12 15 155,264
10 Anson Rd #19-08A International Plaza 26-02-14 2,078,505 2147 01-06-12 21 418,505
10 Anson Rd #22-01 International Plaza 13-01-14 1,000,000 2114 16-07-07 78 375,600
10 Anson Rd #30-03 International Plaza 24-02-14 1,072,188 2,267 11-09-12 17 439,494
10 Anson Rd #30-03A International Plaza 24-02-14 1,047,306 2,267 - - -
10 Anson Rd #33-07 International Plaza 07-03-14 2,936,500 2021 - - -
10 Anson Rd #33-08 International Plaza 07-03-14 4,763,500 2021 - - -
10 Anson Rd #33-17 International Plaza 27-01-14 945,000 2311 17-05-13 8 127,000
20 Maxwell Rd #01-09 Maxwell House 19-12-13 620,000 2627 05-08-13 4 200,000
138 Robinson Rd #02-30 Oxley Tower 24-03-14 1,239,888 6424 01-05-12 23 211,688
138 Robinson Rd #12-04 Oxley Tower 26-12-13 3,620,000 3145 19-04-12 20 221,600
101 Upper Cross St #01-43 People's Park Centre 21-03-14 2,838,000 3469 - - -
101 Upper Cross St #03-37 People's Park Centre 01-04-14 790,000 2372 09-10-12 18 80,000
101 Upper Cross St #03-65 People's Park Centre 21-04-14 863,300 2231 - - -
101 Upper Cross St #04-23 People's Park Centre 14-04-14 488,000 1337 06-09-07 79 213,500
101 Upper Cross St #B1-03 People's Park Centre 11-02-14 935,000 2069 28-09-05 101 607,000
1 Park Rd #02-13 People'sPark Complex 12-03-14 1,588,000 3513 09-10-06 89 958,000
1 Park Rd #02-30 People's Park Complex 19-12-13 2,988,000 6949 - - -
1 Park Rd #02-31 People's Park Complex 11-12-13 1,500,000 3876 01-06-00 162 1,092,000
1 Park Rd #02-99 People's Park Complex 11-12-13 3,400,000 4942 25-07-12 17 780,000
1 Park Rd #03-24 People's Park Complex 27-12-13 1,280,000 4103 16-09-13 3 220,000
3 Church St #14-01 Samsung Hub 07-04-14 8,805,180 3,030 23-06-11 34 6,292,800
3 Church St #14-02 Samsung Hub 07-04-14 9,523,290 3,030 - - -
3 Church St #14-03 Samsung Hub 07-04-14 11,741,250 3,030 - - -
3 Church St #14-04 Samsung Hub 07-04-14 9,653,580 3,030 - - -
160 Robinson Rd #23-02 SBF Center 05-12-13 3,019,500 3188 - - -
160 Robinson Rd #26-04 SBF Center 12-12-13 2,581,000 3478 - - -
160 Robinson Rd #27-09 SBF Center 02-01-14 2,127,000 3470 - - -
160 Robinson Rd #31-01 SBF Center 27-02-14 35,000,000 3255 - - -
3 Shenton Way #02-11 Shenton House 11-02-14 2,088,000 1832 02-11-93 243 1,232,250
3 Shenton Way #02-15 Shenton House 14-01-14 800,000 1972 03-12-13 1 100,000
3 Shenton Way #02-15 Shenton House 25-12-13 2,250,000 2254 - - -
3 Shenton Way #15-08 Shenton House 27-03-14 1,680,000 1659 25-08-04 115 1,065,000
6 Eu Tong Sen St #06-12 Soho @ Central The 24-01-14 1,600,000 2646 27-09-07 76 918,200
6 Eu Tong Sen St #08-17 Soho @ Central The 18-12-13 1,670,000 2520 17-04-12 20 270,000
6 Eu Tong Sen St #08-19 Soho @ Central The 19-03-14 1,650,000 2630 30-01-13 14 150,000
6 Eu Tong Sen St #11-02 Soho @ Central The 04-04-14 1,798,000 2840 12-08-11 32 528,000
6 Eu Tong Sen St #11-16 Soho @ Central The 27-01-14 4,200,000 2832 05-12-06 86 1,898,250
8 Eu Tong Sen St #15-97 Soho @ Central The 05-12-13 2,750,000 2828 29-03-04 1317 990,600
8 Eu Tong Sen St #17-84 Soho @ Central The 20-03-14 4,722,250 2973 - - -
8 Eu Tong Sen St #18-89 Soho @ Central The 20-03-14 3,859,200 3250 - - -
8 Eu Tong Sen St #18-90 Soho @ Central The 28-03-14 2,807,940 3203 - - -
8 Eu Tong Sen St #18-91 Soho @ Central The 28-03-14 2,807,940 3184 - - -
8 Eu Tong Sen St #18-92 Soho @ Central The 28-03-14 2,807,940 3184 - - -
8 Eu Tong Sen St #18-93 Soho @ Central The 21-03-14 4,935,000 3184 - - -
8 Eu Tong Sen St #20-98 Soho @ Central The 21-04-14 1,900,000 2959 06-09-12 19 285,000
8 Eu Tong Sen St #21-88 Soho @ Central The 26-02-14 2,750,000 2946 23-03-04 119 1,587,950
12 Eu Tong Sen St #06-164/165 Soho @ Central The 03-03-14 1,520,000 2165 25-03-04 119 917,085
12 Eu Tong Sen St #06-171 Soho @ Central The 04-03-14 1,700,000 2394 25-12-07 74 154,560
12 Eu Tong Sen St #06-172 Soho @ Central The 26-12-13 9,664,560 2291 14-08-96 209 3,140,982
7 Temasek Blvd #22-03 Suntec City 17-12-13 6,100,000 2481 26-09-05 99 3,330,744
Source: Hiwire Data / URA
 
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 Testimonials 
Being new to the property industry (still awaiting the license approval), thank you for making this course easy to understand, even to the newcomers who have zero experience.

Thank you, for reinforcing that knowledge is power through the many examples that you have given (will be looking into a Wall Street Journal subscription this weekend). I do hope that as I read more, I will get more confident with the new found knowledge & convert this into money!!!

Jyen Ke
Real Estate Practitioner
Fabulous session. Enjoyed it thoroughly. My aim was to understand the commercial / industrial property dynamics better so that I can take action to invest. I must say the 3 day programme has provided me with practical knowledge, decision making ideas and clear motivation to invest.

Thank you for your clear, enthusiastic and colourful explanation. It has been a memorable 3 days & I am confident that I can start on my Commercial / Industrial journey soon.

Sharma Bhanu
Property Investor

I have attended 3 other investment training courses and I must applaud you and your team as yours is the best. The amount of detailed information you have given is exactly what I have been looking for.

I thank you for sharing from the bottom of your heart and truly giving us our money worth (the big picture on the Tanjong Pagar Waterfront city).

Jimmy Gan
Property Investor
To share your testimonial, write in personally to David Poh at: davidpoh@dpgroupi.com
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Upcoming Events
Commercial / Industrial Real Estate
Workshop Dates Program Dates
For Investors
Date: 5 Aug 2014 (Tue)

Time: 7.00pm to 10.45pm

Date:  11 Aug 2014 (Mon)
Time:
7.00pm to 10.45pm

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For Agents
Date: 8 Aug 2014 (Fri)

Time: 2.00pm to 6.00pm

Date:  13 Aug 2014 (Wed)
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For Investors
Date: 21 Aug 2014 (Thu)
Time: 6.30pm to 10.30pm


Date: 22 Aug 2014 (Fri)
Time: 6.30pm to 10.30pm

Date: 22 Aug 2014 (Sat)

Time: 10.00am to 10.00pm
For Agents
Date: 15 Oct 2014 (Wed)
Time: 10.00am to 10.00pm


Date: 16 Oct 2014 (Thu)
Time: 10.00am to 10.00pm

Date: 17 Oct 2014 (Fri)
Time: 10.00am to 8.00pm
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  Workshop Dates
Date: 5 Aug 2014 (Tue)
Time: 2.00pm to 5.00pm

Date:  25 Aug 2014 (Mon)
Time: 2.00pm to 5.00pm

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Program Dates
TBC
 
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