View Full Version : Non-residential properties the next alternative?
With CM5, will we see more investors jumping into non-residential properties?
With CM5, will we see more investors jumping into non-residential properties?
long before cm5,some of us alrdy run out of residential assets.
we need not to die die wait see cm10, to be 100% sure of die-heart.
Office rentals dipping.....
More and more of these new commercial projects include swimming pool and gym, plus all units come with toilet and high ceiling. Anything to stop one from buying one to stay and live there actually?? Especially one who doesn't really cook and need just a pantry of sorts for very light food preparation...
With lower quantum and reasonable rental yield, it seems to be a better alternative to hedge against inflation.
More and more of these new commercial projects include swimming pool and gym, plus all units come with toilet and high ceiling. Anything to stop one from buying one to stay and live there actually?? Especially one who doesn't really cook and need just a pantry of sorts for very light food preparation...
Work-Live-Play.
Provided there are still electrical power and air-conditioning at night.
Geylang OKT
24-12-11, 08:17
Nope, too late for that already. Why now then consider commercial when the writing was on the wall since Aug 2010? - those savvy ah nehs amd local sgs folks, ah tiongs already bought in bulk in late 2010 and early 2011 waiting to cash out and sell to you :D :D :D
Work-Live-Play.
Provided there are still electrical power and air-conditioning at night.
Power - definitely, as stuff like servers or equipment to keep cool requires it. Aircon I can do without as long got good natural ventilation...
Nope, too late for that already. Why now then consider commercial when the writing was on the wall since Aug 2010? - those savvy ah nehs amd local sgs folks, ah tiongs already bought in bulk in late 2010 and early 2011 waiting to cash out and sell to you :D :D :D
tio la....Furthermore interest rate higher than residential and very likely those on sale in the market waiting to be taken over by potential buyer will be at the yeild less than 4%(already very good)...and watch out most will be less than 99 yrs lease...:o
cannot jump anyhow ...jump into sai hole than jialat...
Obviously the govt wants investors to switch into commercial sector. The rejection of the paya lebar bid was an obvious sign of the policy direction. They want hot money to flow in commercial properties for 2012. Very strategic move combined with cm5 I must say....
Obviously the govt wants investors to switch into commercial sector. The rejection of the paya lebar bid was an obvious sign of the policy direction. They want hot money to flow in commercial properties for 2012. Very strategic move combined with cm5 I must say....
In this case, does it mean that it may be worth considering investing in commercial properties - don't have to worry about SSD, ABSD and etc.... hence may be a better bet (though there is still inherent risk involved such as slower economy and global uncertainty) against inflation.
In this case, does it mean that it may be worth considering investing in commercial properties - don't have to worry about SSD, ABSD and etc.... hence may be a better bet (though there is still inherent risk involved such as slower economy and global uncertainty) against inflation.
The prospects of Singapore's GDP declining and huge supply of commercial properties are already very worrying. Unless you have plans to use the property yourself to conduct your business.
The prospects of Singapore's GDP declining and huge supply of commercial properties are already very worrying. Unless you have plans to use the property yourself to conduct your business.
i'm quite bullish about commercial sector as i believe the prices will be artificially propped by the government e.g. keeping land prices for commercial uses at a threshold like paya lebar.
with the right location, it is good time to pick up some commercial units from now to within then next few months (before hot money comes in to commercial) as my point of view is during recession it's the best time to enter commercial market. during boom time, no worries about no takers for rental if you are vested in hot locations like paya lebar, kallang riverside and marina bay.
In this case, does it mean that it may be worth considering investing in commercial properties - don't have to worry about SSD, ABSD and etc.... hence may be a better bet (though there is still inherent risk involved such as slower economy and global uncertainty) against inflation.
there is inherent risk of course, but i must say commercial property prices have more upsides than downsides. CM5 is specifically installed to channel hot money into commercial sector to prop our economy up even during recession. if you have holding power, i feel that there shouldn't be any fear to enter the commercial sector.
The prospects of Singapore's GDP declining and huge supply of commercial properties are already very worrying. Unless you have plans to use the property yourself to conduct your business.
Very likely he has already made up his mind to go into commercial property, just need to have someone to re affirm his view and support his action ....:p
i'm quite bullish about commercial sector as i believe the prices will be artificially propped by the government e.g. keeping land prices for commercial uses at a threshold like paya lebar.
with the right location, it is good time to pick up some commercial units from now to within then next few months (before hot money comes in to commercial) as my point of view is during recession it's the best time to enter commercial market. during boom time, no worries about no takers for rental if you are vested in hot locations like paya lebar, kallang riverside and marina bay.
I think u can afford to hold bcoz u have balanced portfolio with residential properties. Most importantly ia whether can find tenants, else it will b another costly mistake.
Getting a tenant is not good enough but got to be a good one who pays and does not involve in illegal business.
I think u can afford to hold bcoz u have balanced portfolio with residential properties. Most importantly ia whether can find tenants, else it will b another costly mistake.
Very likely he has already made up his mind to go into commercial property, just need to have someone to re affirm his view and support his action ....:p
ya for 2012 i will go into commercial, prob will pick up one in Q1...i am definitely out of the residential market for now, unless CM5 is lifted. lol
Getting a tenant is not good enough but got to be a good one who pays and does not involve in illegal business.
yup, hence location and neighbors are very important.
I think u can afford to hold bcoz u have balanced portfolio with residential properties. Most importantly ia whether can find tenants, else it will b another costly mistake.
bro, yup i think it really depends on one's risk threshold. you are right about balancing one's portfolio. currently i think 2012-2013 i will be on shopping spree, starting with commercial first. bad times are quite rare....it'll probably be another 10yrs for the market to go into such crazy state....
of course, i don't advise to enter commercial property blindly. must study and do homework! don't anyhow listen to forummers (including me myself!) :)
Very likely he has already made up his mind to go into commercial property, just need to have someone to re affirm his view and support his action ....:p
Ya, i had picked up one industrial property near Tai Seng in May this year after downloading 1 residential property early this year. Had recently downloaded 1 more residential property before CM5. Now thinking where should I park the money to hedge against inflation.
Ya, i had picked up one industrial property near Tai Seng in May this year after downloading 1 residential property early this year. Had recently downloaded 1 more residential property before CM5. Now thinking where should I park the money to hedge against inflation.
yes i picked up one 2br from palette just before CM5 lol.
i think if u have much spare change, time to return to equities! i am preparing to whack equities after all the xmas and ny hangover. it's going to be exciting in 2012 Q1! can't wait man!
I think u can afford to hold bcoz u have balanced portfolio with residential properties. Most importantly ia whether can find tenants, else it will b another costly mistake.
Prime office occupancy, rents sliding
Published on Dec 27, 2011
By Cheryl Lim
AS THE year draws to a close, it looks as though occupancy levels of offices in Singapore's prime
areas are on the way down, along with rental levels.
Analysts said overall occupancy in the prime office sector for the full year is set for an 8 per cent slide, given that businesses have been putting expansion plans on hold amid the gathering economic gloom.
Prime office rents are likely to fall about 4 per cent in the final quarter of this year, according to Colliers International. But they performed strongly before that and are expected to have risen 14.6 per cent for the whole year.
Landlords of triple A grade buildings have taken the worst hit so far, say agents. Buildings like Asia Square have seen rents fall from about $14 per sq ft a month at the beginning of this year to the current rate of about $12 to $13. At another building, Ocean Financial Centre, rents have dipped from $12 psf a month at the start of the year to $11 now.
'While earlier deals at these triple A buildings have helped these landlords achieve higher rent rates, there are still some pockets of remaining space left and the lowering of rents could be seen as a defensive move to entice tenants to seal the deals in these uncertain times,' said Ms Agnes Tay, head of commercial leasing at Savills.
'Generally office-users are time-sensitive and driven by their lease expiry. Hence when approaching their lease expiry dates, they will take the opportunity to evaluate between renewal and relocation options,' she said.
When the economy is slowing, tenants typically become more sensitive about rental levels, said Mr Moray Armstrong, executive director of CBRE's office services department.
'There is some evidence that tenant decisions on new lease commitments are being rescheduled, which is partly down to expectations that rents will move favourably in their direction.'
Mr Calvin Yeo, executive director of Office Services at Collier International, said other factors are also at play in the shifting office rental market.
For instance, more companies, especially those looking to relocate their operations here, are being more conservative about their staff headcount, space requirements and overall leasing decisions.
Landlords too have reported a higher interest in smaller spaces.
A CapitaCommercial Trust (CCT) spokesman said the bulk of inquiries it has received in the last three months has been for small and mid-sized office space - from 1,000 sq ft to 15,000 sq ft, depending on the properties.
CCT is a real estate investment trust which owns office properties.
Ms Tay said: 'If the external factors remain uncertain, we would expect tenants to explore higher people density in terms of space usage - that is, to 'squeeze' the same amount of people within a smaller space, provided the space configuration allows for this.'
Market watchers also said that there is a growing trend of tenants giving up part of their leased space when contracts come up for renewal or subletting part of their space.
They say tenants are behaving this way because of the expected slowdown in business growth.
Smaller and medium-sized businesses are more active in the leasing market now, with many of the larger tenants shying away from leasing decisions, said CBRE's Mr Armstrong, adding that only a handful of large prospective deals by large tenants are in the works.
'We also see a 10 per cent to 15 per cent increase in the new start-up businesses which get into the serviced office first and buy short-lease terms before committing to a standard lease of two to three years,' said Savills' Ms Tay.
But some analyst are optimistic about the prospects of the office market.
They point to Singapore's quality of office stock and high delivery of new developments as key factors in why the city is well placed to attract new businesses.
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.