View Full Version : 'Shoe boxes' here to stay
http://www.businesstimes.com.sg/sub/companies/story/0,4574,422005,00.html?
Published January 17, 2011
'Shoe boxes' here to stay
Catalist firm Oxley banks on affordability, reports VEN SREENIVASAN
THE demand for 'shoe-box' apartment is here to stay, says Ching Chiat Kwong, controlling shareholder and chief executive officer of Oxley Holdings.
'If you look at the way Singapore is developing - high economic growth, rising home-owning aspirations, more local and expatriate singles, young couples who prefer dogs rather than kids - you can see a very clear demand pattern emerging,' he noted. 'There is a market for good-quality, affordable private homes in good locations.'
And it is a demand which Catalist-quoted Oxley hopes to capitalise on. The company specialises in building private apartments sized at around 350-400 sq ft, with a living room, one bedroom and fully fitted kitchenettes.
In just three months following its October 2010 listing, the company has sold out five of its 'shoebox' apartment projects. Its Loft@Holland sold out within two hours of launch last week. This year it will launch at least nine more, and at least two commercial projects.
Mr Ching says the buyers of his apartments are not just singles and young couples, but also investors. 'The rental yields from these properties tend to be good, so they make attractive investments as well,' he said.
The market may have started noticing Oxley's potential, judging by the recent stirring of its stock price. The company launched its IPO in October 2010 at 38 cents to raise gross proceeds of about $85 million. But the shares soon slumped to as low as 31 cents. In recent weeks, the stock has rallied past the 40 cents level on strong buying interest, and remained there despite property market curbs unveiled last week.
Mr Ching does not appear to be overly concerned about the curbs. 'The key is affordability, and this becomes even more important under the new rules,' he said. 'The projects we will launch this year are in prime locations, and more importantly, they are affordable. We will also launch several major commercial developments which are not impacted by the residential property curbs.'
Oxley's business model is simple: Gear up to the maximum to acquire land, quickly launch units off the plans, maximise plot ratio, keep prices affordable, and keep project turnover short at around 7-9 months.
The company has used some $35 million of its IPO proceeds to date. But its gearing is some 300 per cent.
Analysts note that this model is similar to that of SC Global, at least in the latter's early days. Mr Ching acknowledges this, but added that Oxley occupies a different position on the private property spectrum.
'They are high-end luxury, but we are affordable luxury,' he quipped.
The company's five projects launched last year raked in sales of some $260 million. Given its 40 to 50 per cent margin, analysts reckon the profit from these could come up to over $100 million. This year it will bring to market almost $2.5 billion worth of projects.
These include nine apartment projects at prime urban and sub-urban locations like Holland Village (last week), Stevens Road, Devonshire, Telok Kurau, River Valley Road and Braddell Road.
It is also planning to launch its 35-storey office-cum-commercial centre on the 16,000 sq ft plot at 138 Robinson Road which it bought from City Developments for $215 million recently. The project has a saleable area of more than 200,000 sq feet, potentially worth over $600 million.
It is also building a one million sq ft high-tech industrial building at Ubi whose market value could be almost $700 million.
Another commercial project in the pipeline is 144 Robinson Road, which Oxley bought last week from City Developments for some $57 million.
Kevin Scully of NetResearch Asia reckons that if Oxley sells all the projects, excluding 144 Robinson Road, it could generate a profit stream of almost $1 billion over the next four to five years.
'The company only recognises profit on progressive completion,' he said. 'We are looking at a future RNAV of $900 million or about 62 cents per share. If we discount this future income to the present day using a discount rate of 8 per cent, we get a present value RNAV of 51 cents.'
Mr Ching says Oxley's business model can be sustained as Singapore's population increases towards the six million mark.
'As long as the HDB market is not breached (ie liberalised), we will always find a ready market,' he said.
Not bad for a company set up in 2009 by Mr Ching, who is an ex-police officer, and his two partners. Mr Ching controls 38 per cent of Oxley, while Eric Low, who owns building materials firm Hafary, has 27 per cent. A third partner, Tee Wee Sien, has 12 per cent.
bargain hunter
18-01-11, 09:55
liew mun leong whack him, he do full interview to counter. hahaha. :D
devilplate
18-01-11, 09:56
liew mun leong whack him, he do full interview to counter. hahaha. :D
hahaha....tink more such articles coming up...lets enjoy:D :cheers6:
bargain hunter
18-01-11, 10:00
a lot of articles and "clarifications" in the newspapers these days. unprecedented leh. from friday till today. hahaha
hahaha....tink more such articles coming up...lets enjoy:D :cheers6:
kingkong1984
18-01-11, 18:52
Dog fight lah..
Both are competitors. Both protecting their interest.
Without MM, bigger units can sell better, especially in the past..
But with MM, Smaller units can sell better.
Strange isn't it?
Open war of words is ok. Dark war is the one to be careful about.
I dun think MM is right for anyone but I agree it is here to stay.
Dog fight lah..
Both are competitors. Both protecting their interest.
Without MM, bigger units can sell better, especially in the past..
But with MM, Smaller units can sell better.
Strange isn't it?
Open war of words is ok. Dark war is the one to be careful about.
I dun think MM is right for anyone but I agree it is here to stay.
If you are a short-term visitor here with a reasonable budget to rent a place for your own stay, will you prefer a 500sqft hotel suite in a location like River Valley, or will you prefer a 1000sqft 4 bed-room apartment at Punggol?
devilplate
18-01-11, 23:17
If you are a short-term visitor here with a reasonable budget to rent a place for your own stay, will you prefer a 500sqft hotel suite in a location like River Valley, or will you prefer a 1000sqft 4 bed-room apartment at Punggol?
single yng and hip expat who loves to party will definitely choose shoebox in city or city fringe regardless of few mths or 1-2yrs stay:D
If you are a short-term visitor here with a reasonable budget to rent a place for your own stay, will you prefer a 500sqft hotel suite in a location like River Valley, or will you prefer a 1000sqft 4 bed-room apartment at Punggol?
If work in city and don't have car. definately, MM in city. Cannot imagine commuting everyday from punggol. Even got car also headache.... don't want to deal to CTE every morning....:scared-4:
If work in city and don't have car. definately, MM in city. Cannot imagine commuting everyday from punggol. Even got car also headache.... don't want to deal to CTE every morning....:scared-4:
I fly frequently and also have the same sentiments as you guys when it comes to deciding where to stay. It is not about the size of the unit but the location and quality of surroundings (malls, prominence of the place, etc). If we won't even want to stay in a 4-bedder in Punggol versus a 1-bedder in River Valley, how can we even compare 1-bedders in both places? Also, notice that this tiny island is developing an annoying traffic condition despite all the measures that were put in place? I will go for the suite in the city near MRT any day.
devilplate
18-01-11, 23:31
I fly frequently and also have the same sentiments as you guys when it comes to deciding where to stay. It is not about the size of the unit but the location and quality of surroundings (malls, prominence of the place, etc). If we won't even want to stay in a 4-bedder in Punggol versus a 1-bedder in River Valley, how can we even compare 1-bedders in both places? Also, notice that this tiny island is developing an annoying traffic condition despite all the measures that were put in place? I will go for the suite in the city near MRT any day.
but if its a family with kids and got budget constraint...they will hf no choice but to consider places like punggol
I fly frequently and also have the same sentiments as you guys when it comes to deciding where to stay. It is not about the size of the unit but the location and quality of surroundings (malls, prominence of the place, etc). If we won't even want to stay in a 4-bedder in Punggol versus a 1-bedder in River Valley, how can we even compare 1-bedders in both places? Also, notice that this tiny island is developing an annoying traffic condition despite all the measures that were put in place? I will go for the suite in the city near MRT any day.
half agree and half disagree..
months back in japan,on a business conference. i was stationed in a huge hotel room but in a rather deserted location Shinagawa rarely see any nitelife after 12am.
back to sgp, as announcement have made that business operations will shift out from city,sur-urban locations to Changi business park or Jurong park. with promising malls,hotels or nite entertainment.
Expats will live near,to their office. for sure,if they are working in changi,definately City is out for them.
ltherefore govt policy changes over the time,just like opportunities from unit trust fund, stocks, commodities, properties at different era.
wad was once a vibrant nitespot at mohd sultan,is a dead town today.
Neither you were wrong,nor im right.
half agree and half disagree..
months back in japan,on a business conference. i was stationed in a huge hotel room but in a rather deserted location Shinagawa rarely see any nitelife after 12am.
back to sgp, as announcement have made that business operations will shift out from city,sur-urban locations to Changi business park or Jurong park. with promising malls,hotels or nite entertainment.
Expats will live near,to their office. for sure,if they are working in changi,definately City is out for them.
ltherefore govt policy changes over the time,just like opportunities from unit trust fund, stocks, commodities, properties at different era.
wad was once a vibrant nitespot at mohd sultan,is a dead town today.
Neither you were wrong,nor im right.
I guess that applies to those working in Changi or Jurong as you said and true enough some spots around these areas have been attracting buyers too, but I am referring more to those big units at areas where (in chinese) birds don't shit. Perhaps there is a choice property for everyone afterall, but I prefer to base my opinion on just one type of expats - those who work primarily in the city or financial district, because of our economic expansion, although I don't deny that other sectors are also expanding.
devilplate
19-01-11, 00:19
I guess that applies to those working in Changi or Jurong as you said and true enough some spots around these areas have been attracting buyers too, but I am referring more to those big units at areas where (in chinese) birds don't shit. Perhaps there is a choice property for everyone afterall, but I prefer to base my opinion on just one type of expats - those who work primarily in the city or financial district, because of our economic expansion, although I don't deny that other sectors are also expanding.
jus to share, Citylights can even attract tenants working at changi biz park...i ask them y....they say they wana stay close to everything....they r fine with daily 30mins train ride to expo....:beats-me-man: :D
jus to share, Citylights can even attract tenants working at changi biz park...i ask them y....they say they wana stay close to everything....they r fine with daily 30mins train ride to expo....:beats-me-man: :D
in my earlier posts,i do have indian tenants staying in simei, working in shenton as bankers.
different ppl, got different needs.
devilplate
19-01-11, 00:29
in my earlier posts,i do have indian tenants staying in simei, working in shenton as bankers.
different ppl, got different needs.
i noe simei/east quite well....yes...lots of indian renters....
i aso realised ang mor r more willing to spend a bigger proportion of their salary on housing...i guess savings rate for them still low...hehe....indians r value hunters.....want cheap cheap+ full condo facilities...lol
in my earlier posts,i do have indian tenants staying in simei, working in shenton as bankers.
different ppl, got different needs.
Bottomline? EVERYWHERE has potential :) Property price is sure going to continue to increase. If we don't buy now, we just wait for the next round of measures. I think we all underestimated the liquidity and the huge number of cash rich people eyeing our island.
Bottomline? EVERYWHERE has potential :) Property price is sure going to continue to increase. If we don't buy now, we just wait for the next round of measures. I think we all underestimated the liquidity and the huge number of cash rich people eyeing our island.
bottomline: city tenants may cut down certain %, moving over to sururban. pushing opportunities to EVERYWHERE even HDB stands a chance due to the spillover shifting.
devilplate
19-01-11, 00:41
bottomline: city tenants may cut down certain %, moving over to sururban. pushing opportunities to EVERYWHERE
tats y OCR hitting 1kpsf+
when i saw ppl r renting lakeshore/kovan melody 2bedders at 3-3.2k when they just TOPed, u noe the potential liao:D but right now, prices caught up to their value in OCR liao...so....ccr or ocr...both same to me liao...see pockets of undervalued projects islandwide will be the strategy......or simply just NATO...lol
Wild Falcon
19-01-11, 09:27
There was this day I tried to catch a bus at River Valley/Havelock (just to "test" how convenient it is and waited like 20 minutes for that Bus 16 or whatever to Orchard. Total journey = 45 min. It's not as convenient as you think and then traffic snarls to a crawl every night near Liang Court with perpetual fights amongst drunkard teenagers at night. It's quite a teenager haunt - those who buy the drinks at 7-11 and drink along the sidewalks of River Valley, Robertson Quay and puke everywhere etc. I think the "new" expats will almost always go to such places becos agents will always bring them to the city center. But there is a trend that after staying here for a few years, the expats become more streetwise and start to explore other parts of SG. But I agree with you that "short-term" expats will most likely end up at River Valley.
If you are a short-term visitor here with a reasonable budget to rent a place for your own stay, will you prefer a 500sqft hotel suite in a location like River Valley, or will you prefer a 1000sqft 4 bed-room apartment at Punggol?
A 10 min walk or 15 min bus-ride as advertised in condo launch will usually be intolerable given our hotter and wetter climate. It will only get worse due to climate change.
A 10 min walk or 15 min bus-ride as advertised in condo launch will usually be intolerable given our hotter and wetter climate. It will only get worse due to climate change.
i'll be squeezing (a family of 5) into a MM (400sqft) at Robertson this April while my new place is being done. So maybe end of April i can tell you guys what was my "live" experience.:D
i'll be squeezing (a family of 5) into a MM (400sqft) at Robertson this April while my new place is being done. So maybe end of April i can tell you guys what was my "live" experience.:D
to verify, are all your family members human beings :ashamed1:? some MM stayer here include cats as their family member, example family of 3 in MM - 1 human and 2 cats :doh:
Why not you highlight why the stretch of Upper Bukit Timah Road beside Beauty World going into PIE and Bukit Timah Road always so jammed? (until LTA need to put up an ERP gantry). Take me 30mins to drive just 1km! And mind you, this is not even morning or evening peak hours. It happened on a Saturday morning at about 10.45am. I thought this is 1-off thing but same thing happened again on Sunday morning! I will avoid that place once and for all!
There was this day I tried to catch a bus at River Valley/Havelock (just to "test" how convenient it is and waited like 20 minutes for that Bus 16 or whatever to Orchard. Total journey = 45 min. It's not as convenient as you think and then traffic snarls to a crawl every night near Liang Court with perpetual fights amongst drunkard teenagers at night. It's quite a teenager haunt - those who buy the drinks at 7-11 and drink along the sidewalks of River Valley, Robertson Quay and puke everywhere etc. I think the "new" expats will almost always go to such places becos agents will always bring them to the city center. But there is a trend that after staying here for a few years, the expats become more streetwise and start to explore other parts of SG. But I agree with you that "short-term" expats will most likely end up at River Valley.
to verify, are all your family members human beings :ashamed1:? some MM stayer here include cats as their family member, example family of 3 in MM - 1 human and 2 cats :doh:
all humans :D
bargain hunter
21-01-11, 14:51
that will be good info. :) err, but is it robertson edge? good luck for the construction on both sides of the development. hope u can tahan until ur rental lease is up. ;)
i'll be squeezing (a family of 5) into a MM (400sqft) at Robertson this April while my new place is being done. So maybe end of April i can tell you guys what was my "live" experience.:D
bargain hunter
21-01-11, 14:52
2 adults and 3 kids still possible lah for short term stay.
all humans :D
I think you need a schedule for toilet usage. No place for your kids to play or do homework. Better to rent out the MM and rent a proper 2 bedder at least for interim measure.
to verify, are all your family members human beings :ashamed1:? some MM stayer here include cats as their family member, example family of 3 in MM - 1 human and 2 cats :doh:
WHO CALLED ME?????????!
I think you need a schedule for toilet usage. No place for your kids to play or do homework. Better to rent out the MM and rent a proper 2 bedder at least for interim measure.
it's ok. just a month and a half. My current place also only have 1 toilet so it's ok. But new place got 3 toilets :D so it's definitely a luxury compared to just 1 toilet and having 400 sqft.
Kids don't have homework this semester too :D so everything quite easy for this move.
As for the sound and construction, by end april i think will be able to give a "live" report on how i felt about staying there. :spliff:
stalingrad
21-01-11, 15:49
it's ok. just a month and a half. My current place also only have 1 toilet so it's ok. But new place got 3 toilets :D so it's definitely a luxury compared to just 1 toilet and having 400 sqft.
Kids don't have homework this semester too :D so everything quite easy for this move.
As for the sound and construction, by end april i think will be able to give a "live" report on how i felt about staying there. :spliff:
You will be able to report what it is like to live in a MM, only if you guys don't end up killing each other.:hornybastard:
it's ok. just a month and a half. My current place also only have 1 toilet so it's ok. But new place got 3 toilets :D so it's definitely a luxury compared to just 1 toilet and having 400 sqft.
Kids don't have homework this semester too :D so everything quite easy for this move.
As for the sound and construction, by end april i think will be able to give a "live" report on how i felt about staying there. :spliff:
you mean rent MM only for 2 months? how much is the rental?
You will be able to report what it is like to live in a MM, only if you guys don't end up killing each other.:hornybastard:
the last time i rented a room in whampoa, i wanted to kill the landlord but turned out my family became closer. So hope this experience is good too. Any way, stay near drunkards for 2 months, will be quite interesting if i live to tell the tale.:D
By the way, i didn't say i was renting the place, so there's not rental charge. :spliff:
the last time i rented a room in whampoa, i wanted to kill the landlord but turned out my family became closer. So hope this experience is good too. Any way, stay near drunkards for 2 months, will be quite interesting if i live to tell the tale.:D
By the way, i didn't say i was renting the place, so there's not rental charge. :spliff:
Maybe it turns out positive and you will stay for good renting out the new place instead! ... and kick off an MM fever here... :D
Maybe it turns out positive and you will stay for good renting out the new place instead! ... and kick off an MM fever here... :D
hmmm... i just took a look at the MM and my initial thoughts are not sure if i want to stay there long term, even if i'm single. Most probably i won't stay long term even if i'm a smashing single. But just an initial thought :D
bargain hunter
24-01-11, 11:07
but u will only be staying there for 2 months?
hmmm... i just took a look at the MM and my initial thoughts are not sure if i want to stay there long term, even if i'm single. Most probably i won't stay long term even if i'm a smashing single. But just an initial thought :D
but u will only be staying there for 2 months?
yes, just for 2 months.
The rental yield for this MM is the best so far and in fact, it's really really good.
But my initial thoughts is if i've to sell a MM, esp in a MM development, it will lack the capital appreciation that i am looking for.
So that's my initial thoughts :D
hmmm... i just took a look at the MM and my initial thoughts are not sure if i want to stay there long term, even if i'm single. Most probably i won't stay long term even if i'm a smashing single. But just an initial thought :D
think the definition of a MM is rather grey at the moment. I'll have problems staying in a 400sqft MM with balcony and planter etc. If it's a 600sq ft MM without MM, I'll be rather comfortable. :)
think the definition of a MM is rather grey at the moment. I'll have problems staying in a 400sqft MM with balcony and planter etc. If it's a 600sq ft MM without MM, I'll be rather comfortable. :)
it's ok for 2 months even with a family of 5 (including me :D ). Just that robertson is quite noisy with all the construction.
Now that double O is gone, i hear that the drunkard problems are also gone.
It's nice to "travel" around Singapore all these years to see different parts of singapore.:spliff:
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