Oct 2014 | Issue 14/10/03   

Editorial Article
Commercial Real Estate Will Continue To Outshine Residential
We are approaching year 2015 and it has been a good year for most investors. The start of QE3 since last year and continuing into this year has push up assets price. In terms of real estate price in Singapore, commercial and industrial properties, especially commercial office sector, have seen prices rising in year 2014. However, residential prices locally continue to be depressed due to government’s cooling measure. Finally, the Fed has tapered and stopped QE3 totally.

The question now is will the end of QE3 affect property prices here. In my opinion, the effect will be very minimal. With 10 months of tapering, I believe the market has already discounted QE3 gradually. The next and more important question is “Will interest rate rise now?” My feel is “no”, interest rate will not rise now. Janet Yellen and the Fed have continually over various occasions stressed that they will keep interest rate low for a “considerable time”. Over at Europe, things are getting worse. The European Central Bank has just cut interest rate further. So there are no good reasons for interest rate to rise now. I think it would be
more likely in year 2016 than 2015 for interest rate to start rising. And when it rises, it will do so slowly.

Back to our local real estate market, in the last four months, the government has highlighted on at least 4-5 occasions that it is not time yet to lift the cooling measures. The latest occasion was in October 2014 by Mr. Tharman. The government will only lift the cooling measures after residential prices have made substantial corrections. This will only mean residential investment is quite “game over” in the near future whereas commercial will continue to shine.

Investors will have to make sense on their investments returns. With a very low savings rate, it only makes sense for investors to put their funds into commercial real estate market. We must understand that real estate is always a favoured basket in investors’ portfolios in local context.

Regarding commercial real estate market performance, I think strata-titled office and shop will continue to do well. Shophouses will find some 
resistance as prices have gone up quite a bit in the last 2 years. Many shophouses have gone beyond the reach of investors. I think shophouses that is about S$3m to S$5m can continue to do well. Prime shops will also continue to grow in prices.

The star performer for this year and continuing into next year will be the office sector. With both rental and prices rising, it is a very attractive investment.

I suggest investors should look out actively in the arena of commercial investments for good deals. It makes a lot of sense now as bank rates are too low to make a decent return. Commercial market will continue to be good especially in the office segment where income is still rising fast. Investors who are worried about rising interest rate in the future could manage their risks by taking on for a fixed rate loan for the next 2 years. Continue to grow your real estate investments...

 
David Poh, CEO
 
Recent Caveats
Address Project Sold On Sale Price (S$) S$ PSF Bought On Holding Period (m) Profit (S$)
6 Bukit Pasoh Rd    30-07-14 7,550,000 5,543 08-02-08 79 4,650,000
93 Club St    26-05-14 8,500,000 10,625 19-04-11 38 5,000,000
53 Craig Rd    07-07-14 10,000,000 6,684      
16++ Gemmill Lane    12-09-14 10,500,000 6,726 05-03-07 92 8,252,000
22 Gemmill Lane    02-10-14 14,250,000 6,384 21-10-02 145 11,200,000
43++ Keong Saik Rd    14-08-14 7,808,800 6,808 29-11-10 45 4,208,800
1 Marina Blvd    01-08-14 515,900,000 12,910      
25 Neil Rd    14-07-14 4,800,000 3,715 17-08-09 60 3,230,000
100 Peck Seah St #07-15   09-09-14 1,440,600 3,438 09-04-12 29 251,670
6 Raffles Quay #13-00   16-10-14 23,800,000 2,350 06-10-05 110 14,177,526
57 South Bridge Rd    16-06-14 7,100,000 5,186 18-01-13 17 1,600,000
64 South Bridge Rd    17-10-14 6,618,000 4,415      
16 Stanley St    24-06-14 10,500,000 6,696 03-03-03 138 7,350,000
122 Telok Ayer St    04-07-14 7,200,000 6,332 11-12-06 92 5,700,000
34++ Tras St    14-10-14 10,000,000 4,958 10-08-10 51 6,170,000
60 Tras St    15-10-14 11,150,000 5,963 13-06-12 28 4,050,000
62++ Tras St    15-10-14 20,850,000 5,407 18-05-12 29 7,650,000
133 New Bridge Rd #10-04 Chinatown Point 15-08-14 1,580,000 2,129 07-07-90 294 958,000
133 New Bridge Rd #14-06 Chinatown Point 15-07-14 1,700,000 2,358 01-04-95 235 690,600
133 New Bridge Rd #20-06+ Chinatown Point 26-06-14 5,000,000 2,011 01-06-07 86 2,514,000
31 Club St #03-01 Emerald Gardens 25-06-14 2,000,000 2,415 06-09-07 83 640,000
20 Cecil St  Equity Plaza 24-06-14 550,000,000 23,471      
150 South Bridge Rd #B1-20 Fook Hai Bldg 03-06-14 568,000 1,887 27-11-93 250 353,000
143 Cecil St #20-01+ Gb Bldg 22-08-14 31,688,000 1,973      
143 Cecil St #20-01+ Gb Bldg 05-09-14 31,688,000 1,973      
2 Havelock Rd #01-08 Havelock II 15-08-14 2,255,000 6,352      
2 Havelock Rd #01-13 Havelock II 13-08-14 1,695,200 6,571      
2 Havelock Rd #01-15 Havelock II 28-08-14 1,587,700 5,902      
2 Havelock Rd #01-19 Havelock II 22-09-14 1,397,700 5,659      
2 Havelock Rd #01-20 Havelock II 16-09-14 1,482,000 5,509      
2 Havelock Rd #01-21 Havelock II 18-09-14 1,627,500 5,407      
2 Havelock Rd #01-23 Havelock II 01-09-14 885,150 5,901      
2 Havelock Rd #01-32 Havelock II 02-09-14 1,338,400 4,975      
2 Havelock Rd #01-33 Havelock II 22-09-14 1,225,308 4,749      
2 Havelock Rd #01-39 Havelock II 28-08-14 1,041,800 5,398      
2 Havelock Rd #01-41 Havelock II 13-08-14 966,000 3,744      
2 Havelock Rd #01-47 Havelock II 25-08-14 824,000 4,791      
2 Havelock Rd #02-28 Havelock II 19-08-14 1,052,000 4,458      
2 Havelock Rd #02-30 Havelock II 14-10-14 772,073 4,000      
2 Havelock Rd #03-09 Havelock II 16-09-14 2,927,000 2,194      
2 Havelock Rd #05-06 Havelock II 09-09-14 1,192,000 2,360      
2 Havelock Rd #05-07 Havelock II 08-09-14 4,028,000 1,709      
2 Havelock Rd #05-08 Havelock II 08-09-14 2,303,000 2,206      
2 Havelock Rd #05-09 Havelock II 08-09-14 1,642,000 2,349      
2 Havelock Rd #05-10 Havelock II 17-09-14 2,771,000 2,220      
2 Havelock Rd #05-12 Havelock II 05-09-14 844,000 2,377      
2 Havelock Rd #06-04 Havelock II 02-09-14 753,000 2,413      
2 Havelock Rd #06-10 Havelock II 15-08-14 886,000 2,496      
2 Havelock Rd #07-07 Havelock II 09-10-14 1,203,000 2,486      
2 Havelock Rd #07-08 Havelock II 09-10-14 1,741,000 2,414      
2 Havelock Rd #07-12 Havelock II 18-09-14 1,563,000 2,505      
2 Havelock Rd #07-13 Havelock II 18-09-14 3,347,000 2,116      
2 Havelock Rd #07-21 Havelock II 16-09-14 974,000 2,517      
10 Anson Rd #09-22 International Plaza 01-10-14 1,900,000 2,030 21-06-12 28 383,680
10 Anson Rd #10-23 International Plaza 15-07-14 1,000,000 2,165 01-02-95 237 222,160
10 Anson Rd #14-01 International Plaza 01-09-14 1,000,000 2,114      
10 Anson Rd #14-01A International Plaza 01-09-14 1,000,000 2,165      
10 Anson Rd #14-21 International Plaza 27-05-14 4,950,000 2,100 01-04-05 111 3,980,000
10 Anson Rd #15-10 International Plaza 23-07-14 1,050,000 2,273      
10 Anson Rd #18-03 International Plaza 22-05-14 1,088,050 2,355 01-10-12 20 200,050
10 Anson Rd #24-02 International Plaza 03-09-14 1,850,000 1,977 29-08-06 98 1,280,000
10 Anson Rd #27-15 International Plaza 10-06-14 4,003,500 2,126 06-02-13 16 367,380
10 Anson Rd #28-02 International Plaza 20-06-14 1,966,582 2,101 19-06-07 85 683,621
10 Anson Rd #28-04 International Plaza 24-07-14 1,105,644 2,393      
10 Anson Rd #28-11 International Plaza 26-06-14 2,030,000 2,169 30-05-11 37 484,775
10 Anson Rd #32-11 International Plaza 02-07-14 2,059,200 2,200      
10 Anson Rd #32-12 International Plaza 02-07-14 2,059,200 2,200      
10 Anson Rd #32-13 International Plaza 02-07-14 2,178,000 2,200      
10 Anson Rd #32-18 International Plaza 10-10-14 403,650 2,507      
10 Anson Rd #33-18 International Plaza 13-05-14 510,000 3,168 21-05-13 12 106,300
10 Anson Rd #35-02A International Plaza 24-06-14 1,050,000 2,220 25-05-10 50 330,000
20 Maxwell Rd #02-15 Maxwell House 28-07-14 490,000 1,821 17-12-10 44 147,000
1 Tras Link #01-14 Orchid Hotel 20-10-14 2,550,000 6,986 12-04-11 43 1,272,000
138 Robinson Rd #03-16 Oxley Tower 09-05-14 1,100,000 6,044 23-10-12 19 120,000
138 Robinson Rd #03-61 Oxley Tower 21-05-14 870,000 6,259 01-06-12 24 90,000
138 Robinson Rd #15-02 Oxley Tower 08-10-14 4,500,000 3,701      
101 Upper Cross St #01-07 People'S Park Centre 10-07-14 1,680,000 4,108 08-10-07 82 350,000
101 Upper Cross St #B1-29 People'S Park Centre 23-09-14 600,000 2,069      
30 Cecil St #01-01 Prudential Tower 14-05-14 16,576,400 2,901      
30 Cecil St #10-01 Prudential Tower 14-05-14 10,420,000 2,000      
30 Cecil St #10-05 Prudential Tower 14-05-14 11,907,440 2,001      
30 Cecil St #11-01 Prudential Tower 14-05-14 10,306,040 2,020      
30 Cecil St #11-05 Prudential Tower 14-05-14 12,023,040 2,020      
30 Cecil St #11-05+ Prudential Tower 02-10-14 16,368,000 2,750      
30 Cecil St #12-01 Prudential Tower 14-05-14 10,408,080 2,040      
30 Cecil St #12-05 Prudential Tower 14-05-14 12,142,080 2,040      
30 Cecil St #13-01 Prudential Tower 14-05-14 10,510,120 2,060      
30 Cecil St #13-05 Prudential Tower 14-05-14 12,261,120 2,060      
30 Cecil St #14-01 Prudential Tower 14-05-14 10,612,160 2,080      
30 Cecil St #14-05 Prudential Tower 14-05-14 12,380,160 2,080      
30 Cecil St #15-01 Prudential Tower 14-05-14 10,714,200 2,100      
30 Cecil St #15-05 Prudential Tower 14-05-14 12,499,200 2,100      
30 Cecil St #16-01 Prudential Tower 14-05-14 10,816,240 2,120      
30 Cecil St #17-01 Prudential Tower 14-05-14 10,918,280 2,140      
30 Cecil St #17-05 Prudential Tower 14-05-14 12,737,280 2,140      
30 Cecil St #18-01 Prudential Tower 14-05-14 11,020,320 2,160      
30 Cecil St #18-05 Prudential Tower 14-05-14 12,856,320 2,160      
30 Cecil St #19-01 Prudential Tower 14-05-14 10,934,880 2,180      
30 Cecil St #19-05 Prudential Tower 14-05-14 12,975,360 2,180      
30 Cecil St #20-01 Prudential Tower 14-05-14 26,710,940 2,260      
30 Cecil St #21-01 Prudential Tower 14-05-14 26,363,780 2,270      
30 Cecil St #22-01 Prudential Tower 14-05-14 27,804,600 2,280      
30 Cecil St #23-01 Prudential Tower 14-05-14 27,926,550 2,290      
30 Cecil St #24-01 Prudential Tower 14-05-14 28,048,500 2,300      
30 Cecil St #25-01 Prudential Tower 14-05-14 28,048,500 2,300      
30 Cecil St #26-01 Prudential Tower 14-05-14 28,292,400 2,320 18-03-11 38 -3,392,670
30 Cecil St #27-01 Prudential Tower 14-05-14 28,292,400 2,320 18-03-11 38 -3,392,670
30 Cecil St #28-01 Prudential Tower 14-05-14 27,687,390 2,330 18-03-11 38 -3,184,510
30 Cecil St #29-01 Prudential Tower 14-05-14 27,806,220 2,340 18-03-11 38 -3,065,680
3 Church St #18-01+ Samsung Hub 02-09-14 42,350,700 3,225      
3 Church St #19-01+ Samsung Hub 01-10-14 41,659,175 3,175      
3 Church St #21-01+ Samsung Hub 16-10-14 42,118,480 3,280      
160 Robinson Rd #28-09 Sbf Center 27-08-14 2,050,000 3,463      
160 Robinson Rd #28-11 Sbf Center 12-09-14 2,286,151 3,485      
3 Shenton Way #10-03 Shenton House 27-06-14 1,080,000 1,932 07-04-10 51 240,000
3 Shenton Way #11-07 Shenton House 15-09-14 1,000,000 2,268 04-04-07 91 435,520
3 Shenton Way #13-04 Shenton House 29-05-14 1,515,200 1,600 18-09-06 94 814,420
6 Eu Tong Sen St #08-08 Soho @ The Central 27-06-14 1,820,000 2,866 21-04-04 124 1,159,388
6 Eu Tong Sen St #09-14 Soho @ The Central 17-07-14 1,740,000 2,740 15-03-12 28 271,104
8 Eu Tong Sen St #14-98 Soho @ The Central 09-09-14 4,780,000 2,866 13-06-07 88 526,600
8 Eu Tong Sen St #18-88 Soho @ The Central 05-06-14 1,757,000 2,724 10-05-13 13 -116,400
8 Eu Tong Sen St #20-88 Soho @ The Central 27-06-14 1,900,000 2,946 29-08-12 22 317,300
12 Eu Tong Sen St #05-166 Soho @ The Central 09-07-14 1,610,000 2,535 08-10-12 21 130,000
12 Eu Tong Sen St #08-169 Soho @ The Central 05-09-14 1,630,000 2,567 17-12-09 57 380,000
12 Eu Tong Sen St #08-172 Soho @ The Central 24-06-14 2,200,000 2,965 06-08-09 59 1,140,000
9 Battery Rd  Straits Trading Bldg 04-09-14 450,000,000 31,339      
11 Keng Cheow St #01-02 The Riverside Piazza 23-09-14 1,350,000 1,793 02-07-12 27 160,000
11 Keng Cheow St #01-08 The Riverside Piazza 06-10-14 1,420,000 2,276 09-08-11 38 370,000
Source: Hiwire Data / URA
 
Latest Happenings
Far East Event Competitive Online Marketing Long Ju Hai Wai Birthday Dinner
Far East Organization Talk at Oasia Hotel 13 Sep 2014
Competitive Online Marketing Graduates Sep 2014
 
Joint Event with Long Ju Hai Wai Oct 2014 Duo Birthday Celebration at Satay by the Bay 29 Oct 2014

 Testimonials 
Thanks for innovating this commercial & industrial course. The 3-day course while intensive has been exciting and very interesting. It has been most engaging. I truly enjoyed this course and feel inspired and charged up to begin my new real estate direction.

Kudos to the both of you. I will definitely recommend this course to anyone. It is also good to note that not all good things come to an end as I really appreciate the monthly and weekly meetings which are geared to further inform us of any latest updates and a good way to inspire and encourage us through the success stories of fellow members.


Lawrence Tan
Property Agent
Thank you for your sharing with me of your immense knowledge & experience in commercial property.

I do enjoy during this last 3 days learning from you.

I am sure what I have learnt will enhance my harvest in the rest of my life.

Big thank you again.

Chan Kim Ying
Property Investor

Thank you for your flexibility and dedication in ensuring that I understand and am able to follow the course materials despite my being late for all three days.

The materials in general are succinct and relevant. I like it that the programme is hands-on and that you provide support even after the course.

Thank you for staying back till 10pm to reinforce concepts and to answer the queries that we have. Salute you!

.COM Graduate
Property Agent
To share your testimonial, write in personally to David Poh at: davidpoh@dpgroupi.com
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Upcoming Events
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