Feb 2015 | Issue 15/02/04   

Editorial Article
Commercial Properties Are No Longer The Second Choice For Singapore Investors
For the last twenty years, residential investments have remained the top choice for real estate investment for the Singapore investors. “Condominiums” are so sunk into investor’s mind that it is as though “if you have not invested in one, you do not know much about investing in Singapore”. Commercial investments look alien in a property investor’s mind.

However, since three and a half years ago, the government started to introduce cooling measures to cool down the residential market. After seven major and a couple of small rounds of cooling measures, the residential market has come to a standstill. Indeed, residential price indexes have been dropping for the past few quarters. Investors have no choice but to turn to commercial and industrial real estate investments to continue growing their property 
portfolios. In the midst of pursuing commercial and industrial investments, they found gold mine.

Commercial property prices have been climbing steadily since three to four years back. Not only have prices been rising, rental is also sky rocketing. In additional, there are no cooling measures in the commercial sector. In comparison, commercial investments outshine residential at this moment.

With more and more investors crossing over to commercial, this sector will continue to outperform other real estate sectors. While learning the game of commercial real estate investments, investors realized a few hard facts. Firstly, rental yield in commercial investments (about 3%-4.5% ) double residential investments (about 2%-2.5%). Secondly, capital gain is never
anything less in commercial. On average, for the last 20-25 years, condominiums prices have gone up about 3-5 times. Landed properties prices have risen about 6-8 times. However, prices of shophouses have gone up by an astonishing 30-50 times. Investors who are financially savvy realize it makes more sense to grow their wealth in commercial than in residential.

Through learning and experiencing, investors recognize that in many aspects, commercial real estate investments are more superior to residential investments. Therefore, going forward, commercial investments will no more be a second choice for real estate investments in Singapore.
 
David Poh, CEO
 
Recent Caveats
Address Project Sold On Sale Price (S$) S$ PSF Bought On Holding Period (y) Profit (S$)
69 Boat Quay   16-12-14 9,280,000 7,884 12-08-09 5.3 5,080,000
13++ Duxton Hill   23-12-14 8,800,000 5,855 11-07-01 13.5 6,380,000
148 Neil Rd   23-01-15 10,100,000 6,368 25-12-12 2.1 3,800,000
48++ Peck Seah St   06-01-15 14,175,400 5,041 01-05-01 13.7 9,475,400
52++ Peck Seah St   06-01-15 15,238,000 5,549      
56 Peck Seah St   06-01-15 13,386,600 5,046      
161 Telok Ayer St   03-11-14 9,380,000 6,308 13-11-93 21.0 7,400,000
70 Anson Rd #26-01 Hub Synergy Point 16-12-14 9,971,770 2,401      
70 Anson Rd #27-01 Hub Synergy Point 16-12-14 20,000,000 1,512      
10 Anson Rd #15-14 International Plaza 13-11-14 1,000,080 2,165 25-05-07 7.5 333,574
10 Anson Rd #23-03 International Plaza 16-12-14 1,850,000 1,977 07-10-94 20.2 417,200
11 Collyer Quay #01-21 The Arcade 02-01-15 1,950,000 7,895      
6 Eu Tong Sen St #05-20 The Central 11-11-14 1,570,000 2,472 30-08-11 3.2 370,000
2 Havelock Rd #02-01 Havelock II 04-11-14 1,334,700 4,008      
2 Havelock Rd #02-10 Havelock II 08-12-14 938,000 3,636      
2 Havelock Rd #02-11 Havelock II 05-01-15 1,238,000 3,599      
2 Havelock Rd #05-05 Havelock II 18-12-14 1,136,000 2,459      
2 Havelock Rd #05-14 Havelock II 15-12-14 1,514,000 2,426      
2 Havelock Rd #05-15 Havelock II 15-12-14 3,337,000 2,095      
2 Havelock Rd #06-03 Havelock II 22-12-14 1,433,888 2,468      
2 Havelock Rd #B1-20 Havelock II 04-11-14 1,103,800 5,134      
20 Maxwell Rd #07-01 Maxwell House 08-12-14 528,000 1,963 01-06-95 19.5 223,000
1 Park Rd #01-35 People'S Park Complex 10-12-14 2,750,000 6,084 12-10-99 15.2 1,450,000
138 Robinson Rd #02-50 Oxley Tower 20-11-14 830,000 7,034 10-10-12 2.1 120,000
Source: Hiwire Data / URA
 
Latest Happenings
CET D&D Nov 2014 COM Jan 2015 Propertyguru Agent Summit Bi-annual Retreat
CET D&D Nov 2014 .COM Jan 2015 PropertyGuru Agent Summit Jan 2015 Bi-Annual Company Retreat Feb 2015

 Testimonials 
I am very impressed with the whole course. The course is very comprehensive and suitable for agents who want to become commercial agent and for those investors who want to invest in commercial property.

It covers basic essential knowledge to financial planning tools on how to select good investment property.

Alex Lim
Property Agent
First of all, I really liked how you taught the course in a very energetic and interesting way as I believe this has helped me to absorb the knowledge.

Second, I liked it that what you taught are very practical and not abstract, theoretical knowledge. I also liked the case studies that helped to illustrate the points you were trying to make.

Last but not least, I like it very much that there is a giving element i.e. World Vision, GIMC as ultimately, the biggest fortune and joy is to give generously.

Ang Wei Heong
Property Investor
This Competitive Online Marketing Programme has been most invaluable to property agents in current market environment where internet marketing is overtaking many marketing channels in effectiveness.

Thang Chze Lin Doreen
Property Agent
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: 2 Mar 2015 (Mon)
Time: 7.00pm to 10.45pm

Date: 17 Mar 2015 (Tue)
Time: 7.00pm to 10.45pm

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For Agents
Date: 3 Mar 2015 (Tue)
Time: 2.00pm to 6.00pm

Date: 11 Mar 2015 (Wed)
Time: 2.00pm to 6.00pm

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For Investors
Date: 5 Mar 2015 (Thu)
Time: 6.30pm to 10.30pm

Date: 6 Mar 2015 (Fri)
Time: 6.30pm to 10.30pm

Date: 7 Mar 2015 (Sat)
Time: 10.00am to 10.00pm
For Agents
Date: 13 May 2015 (Wed)
Time: 10:00am to 10:00pm

Date: 14 May 2015 (Thu)
Time: 10:00am to 10:00pm

Date: 15 May 2015 (Fri)
Time: 10.00am to 8.00pm
Competitive Online Marketing for Agents
  Workshop Dates

Date: 2 Mar 2015 (Mon)
Time: 2.00pm to 5.00pm

Date: 17 Mar 2015 (Tue)
Time: 2.00pm to 5.00pm

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Program Dates

Date: 20 Apr 2015 (Mon)
Time: 9.30am to 7.30pm

Date: 21 Apr 2015 (Tue)
Time: 10:00am to 7:30pm

Date: 22 Apr 2015 (Wed)
Time: 1:00pm to 6:00pm
 
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