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Recently had a discussion with a high rank civil servant (superscale and above)

 

He told me about how he bought a commercial property at the basement of somewhere.

I diplomatically smiled and said i wont follow.

 

5 yrs ago i told this same person to buy a landed house to stay if it suits but he didnt want choosing to rent and rent finally buying in early 2014 which was toppish still.

 

 

Conclusion?

Private sector folks got much better insights on these matters compared to civil service guys

post-29925-0-39441600-1461903101_thumb.jpeg

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hospitality results down today..

 

but i think it will take more than a couple of quarters to see distribution fall

 

due to nature of leases being 3-5 yrs and rental income will not be marked to market

 

REITs also have some room to play with operating expense and deferment of some capital expenditures

 

just interesting to note that pop up store concepts are becoming more common in retail these days.

 

few days ago found out that Shaw has quit Bugis for good last month. 

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Recently had a discussion with a high rank civil servant (superscale and above)

 

He told me about how he bought a commercial property at the basement of somewhere.

I diplomatically smiled and said i wont follow.

 

5 yrs ago i told this same person to buy a landed house to stay if it suits but he didnt want choosing to rent and rent finally buying in early 2014 which was toppish still.

 

 

Conclusion?

Private sector folks got much better insights on these matters compared to civil service guys

Is it a good time to factory lot for investment?
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Recently had a discussion with a high rank civil servant (superscale and above)

 

He told me about how he bought a commercial property at the basement of somewhere.

I diplomatically smiled and said i wont follow.

 

5 yrs ago i told this same person to buy a landed house to stay if it suits but he didnt want choosing to rent and rent finally buying in early 2014 which was toppish still.

 

 

Conclusion?

Private sector folks got much better insights on these matters compared to civil service guys

 

my conclusion is in MCF we Muayhahahaha

 

but in real life, we just smile  [laugh]

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For industrial there are many factors to consider which weigh in to the overall price. Instead of quantum best use psf to gauge, before the boom prices where hovering around the 250 to 350 range for new (60 yrs leasehold) and 200ish range for older units (assume leasehold 40 - 60 years) around 2010 which was reasonable given the rental yield. So for half a buck you would get a property of about 1600 sq feet (proper space no loft concept)

 

Adding to that one thing to note is now a days developers build a high ceiling and charge the consumer for "loft" space effectively increasing the shop space which lowers the psf price. Need to consider of that will suit the business you are trying to attract

 

nice to know that a buck = one million  [laugh]  [;)]

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Haha thanks but my knowledge is this sector still needs more brushing up.

 

1. What happens when lease expires? Any experience on how much or how they calculate top up?

- No experience in this, but Industrial having such short leases I would imagine govt would have plans to use the space.

 

2. Loft building after move in. Does this need approval from building management and authorities? Do we need to buy insurance when we rent it out?

 

- For my MCST any works (even air con) will need approval (and deposit) before works starts, I don't have a loft unit but I believe you need to engage a engineer (MCST contacts) to certify after the plans are submitted. Can't imagine too much issues if the developer sold it with that concept some might even built units with split levels so owners need not bother.

 

3. SME generally looking for what size units?

 

- This is pretty subjective, it really depends on the type of businesses targeted. Suitable light industry businesses have certain criteria to meet (i.e 70% production or storage, 30% office) so pending on the main activity that dictates the space. For example my current tenant which does car sales about 6/8 people to 1000 sq feet but my other tenant (engineering related) probably doubles that for same space. (btw the percentage I make up one but its about there)

 

https://www.ura.gov.sg/uol/guidelines/development-control/change-use-premises/sections/Permissible-Uses.aspx

 

 

 

 

Great info and very helpful.

if you can help with these questions

1. What happens when lease expires? Any experience on how much or how they calculate top up?

2. Loft building after move in. Does this need approval from building management and authorities? Do we need to buy insurance when we rent it out?

3. SME generally looking for what size units?


TIA

 


Just to add HDB shop houses are actually great investment, would consider those as opposed to a standard retail shopfront.


Reminds me of this article, saw the launch being advertised then I saw the price tag  [hur]

 

http://www.theedgeproperty.com.sg/content/strata-shop-blues

 

Recently had a discussion with a high rank civil servant (superscale and above)

He told me about how he bought a commercial property at the basement of somewhere.
I diplomatically smiled and said i wont follow.

5 yrs ago i told this same person to buy a landed house to stay if it suits but he didnt want choosing to rent and rent finally buying in early 2014 which was toppish still.


Conclusion?
Private sector folks got much better insights on these matters compared to civil service guys

 

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TOPed quite a few months already.

Practically 99% empty.

 

Good luck to those investors who bought these units in this mixed development at the peak in 2013.

Already lose until no pants on the high price and yet cant rent out and cant sell.

 

 

Aiyoyo

post-29925-0-99515100-1462005810_thumb.jpeg

post-29925-0-78458900-1462005821_thumb.jpeg

Edited by Throttle2
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Hypersonic

http://www.straitstimes.com/business/property/shophouses-draw-keen-investor-interest

Shophouses draw keen investor interest

MAY 2, 2016

 

Capital values have risen given scarce supply, growing demand from funds and foreigners

 

 

There is a dichotomy between shophouses that have been upgraded - where investors can enjoy an attractive yield - and older and more dilapidated ones, which do not garner as much interest.

 

The leasing market has softened over the past half year but there is still activity, said a seasoned investor, who recently rented out a Pagoda Street shophouse for over $18,000 a month, or about $12 psf, to a retail tenant in a medical field.

 

"We are seeing quite good leasing demand, especially if you renovate the unit. For tenants, rents are still at a discount compared with a shopping mall or Grade A office space."

 

While the number of shophouse deals fell slightly last year, total value of transactions rose 10 per cent, reflecting sustained interest in this asset class, said Ms Sammi Lim, associate director of investment properties at CBRE.

 

"This year, the pool of serious investors exploring this asset class will widen further with the entry of more boutique institutional funds (looking at) shophouses to add to their entire portfolio."

post-18880-0-49886800-1462180305.jpg

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Twincharged

Shophouses draw keen investor interest


 


Investment property sales activity may be generally quiet but a small corner of the market is still seeing healthy interest. Values of shophouses in the Central Business District (CBD) have jumped over the past two years, buoyed by their scarcity and demand from funds and foreigners.


 


In what is thought to be the priciest deal this year on a per sq ft (psf) basis, a shophouse in Ann Siang Road recently went for SGD10.8 million to a foreign investor, or about SGD3,750 psf in terms of gross floor area (GFA). The owner is believed to be Mr Zain Fancy of Clifton Partners.


 


But although capital values have risen, rents have not increased in tandem, said a property watcher. "Eight years ago, we were seeing 6 per cent rental yields. Today, yields are 3 per cent or even less than that."


 


This has not stopped some funds and foreigners from aggressively picking up units. Of the 16 CBD shophouse sales with caveats lodged from October 2015, nine were sold to funds or foreigners, a property title check showed. Just in April, investment group 8M Real Estate picked up a Craig Road shophouse for SGD6.5 million. The company also has five shophouses in Amoy Street and another in Gemmill Lane.


 


Transactions completed without caveats early this year included the sale of two shophouses in Pagoda Street to Rio International Investment - one for SGD12.2 million and the other for SGD12 million, or about SGD2,800 psf. The firm is owned by Mr Loi Keong Kuong, owner of Rio Casino in Macau.


 


The newer entrants to this space include Spanish tycoon Ricardo Peralta - chief executive of Luxembourg-based investment holding firm Ventos and a board member of Danone Spain. He has picked up six conservation shophouses from October 2015, the latest believed to be one in Amoy Street which went for SGD20.25 million or about SGD2,411 psf on GFA.


 


“While the number of shophouse deals fell slightly last year, total value of transactions rose 10 per cent, reflecting sustained interest in this asset class. This year, the pool of serious investors exploring this asset class will widen further with the entry of more boutique institutional funds (looking at) shophouses to add to their entire portfolio." said a property consultancy.


 


Link to the story:


http://www.straitstimes.com/business/property/shophouses-draw-keen-investor-interest

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Turbocharged

Wah the family that owned that Amoy shophouse must be laughing their way too the bank lol

 

 

Shophouses draw keen investor interest

 

Investment property sales activity may be generally quiet but a small corner of the market is still seeing healthy interest. Values of shophouses in the Central Business District (CBD) have jumped over the past two years, buoyed by their scarcity and demand from funds and foreigners.

 

In what is thought to be the priciest deal this year on a per sq ft (psf) basis, a shophouse in Ann Siang Road recently went for SGD10.8 million to a foreign investor, or about SGD3,750 psf in terms of gross floor area (GFA). The owner is believed to be Mr Zain Fancy of Clifton Partners.

 

But although capital values have risen, rents have not increased in tandem, said a property watcher. "Eight years ago, we were seeing 6 per cent rental yields. Today, yields are 3 per cent or even less than that."

 

This has not stopped some funds and foreigners from aggressively picking up units. Of the 16 CBD shophouse sales with caveats lodged from October 2015, nine were sold to funds or foreigners, a property title check showed. Just in April, investment group 8M Real Estate picked up a Craig Road shophouse for SGD6.5 million. The company also has five shophouses in Amoy Street and another in Gemmill Lane.

 

Transactions completed without caveats early this year included the sale of two shophouses in Pagoda Street to Rio International Investment - one for SGD12.2 million and the other for SGD12 million, or about SGD2,800 psf. The firm is owned by Mr Loi Keong Kuong, owner of Rio Casino in Macau.

 

The newer entrants to this space include Spanish tycoon Ricardo Peralta - chief executive of Luxembourg-based investment holding firm Ventos and a board member of Danone Spain. He has picked up six conservation shophouses from October 2015, the latest believed to be one in Amoy Street which went for SGD20.25 million or about SGD2,411 psf on GFA.

 

“While the number of shophouse deals fell slightly last year, total value of transactions rose 10 per cent, reflecting sustained interest in this asset class. This year, the pool of serious investors exploring this asset class will widen further with the entry of more boutique institutional funds (looking at) shophouses to add to their entire portfolio." said a property consultancy.

 

Link to the story:

http://www.straitstimes.com/business/property/shophouses-draw-keen-investor-interest

 

 

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(edited)

Bro, conservation shophouses in such strategic locations are a different class

Just like GCBs

 

Buyer likes

Buyer buys

Money is seldom the key consideration.

 

Its like a rare Rolex or cigar for that matter

I know that if i sell it, i may not be able to buy it back.

I know that if i buy it, i need to find another person who really appreciates it to sell to

Otherwise keep for life. Enjoy

 

People who use such cases to wrongfully misrepresent the general market are either stupid or crooks.

Edited by Throttle2
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Twincharged

Hehe, you've really got a lot of time (and money) at hand.

 

Looking into this sector now?

 

 

TOPed quite a few months already.
Practically 99% empty.

Good luck to those investors who bought these units in this mixed development at the peak in 2013.
Already lose until no pants on the high price and yet cant rent out and cant sell.


Aiyoyo

 

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TOPed quite a few months already.

Practically 99% empty.

 

Good luck to those investors who bought these units in this mixed development at the peak in 2013.

Already lose until no pants on the high price and yet cant rent out and cant sell.

 

 

Aiyoyo

 

Every thread you post, you have to take a photo with your watch

 

please stick to the watch thread for such posts

 

Moderators should note

 

if you have opinions to contribute, please do so constructively, instead of showing off your watch, or your money, or how 'poor' you are.

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Every thread you post, you have to take a photo with your watch

 

please stick to the watch thread for such posts

 

Moderators should note

 

if you have opinions to contribute, please do so constructively, instead of showing off your watch, or your money, or how 'poor' you are.

 

Oh you mean like this?

 

Aiyo dont be upset, your nick is Aventador.

Maybe you want to change it to LP760?

post-29925-0-81319100-1462344527_thumb.jpg

post-29925-0-81319100-1462344527_thumb.jpg

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Twincharged

what nonsense abt conservation shophouse where $$ is seldom the consideration. 

 

buyers like zain fancy, 8M are trying to make a return on their investment. they have no intention to keep for life LOL. 

 

there are reasons why so much attention was turned to conservation shophouses from 2013 onwards

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(edited)

went to friend's shophouse at emerald hill and saw this lying on his tv console

 

Muayhahahaha

post-29925-0-72571000-1462356438_thumb.jpeg

Edited by Throttle2
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Hypersonic

Oh you mean like this?

 

Aiyo dont be upset, your nick is Aventador.

Maybe you want to change it to LP760?

If you nice nice to him, @throttle2 throw in Property Deal when you buy his Lolex [:p]  

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