Tenants drawn to West Coast's lower rents

[reporter2]

http://www.straitstimes.com/archive/...rents-20131012

HOT SPOT

Tenants drawn to West Coast's lower rents

Published on Oct 12, 2013

By Melissa Tan


THE West Coast Park area, largely built on reclaimed land, is mainly occupied by light industry, some recreational areas and older housing projects.

But the estate is undergoing a rejuvenation and remains attractive to renters, consultants say.

There is potential for collective sales, given many older developments on smallish plots in the West Coast Road and Pasir Panjang areas, said Chesterton Singapore research head Elaine Chow.

One recent launch is the NeWest mixed development on the site of the former Hong Leong Garden Shopping Centre.

The 12-storey residential and commercial development went on sale in May and 134 out of its 136 homes have been sold by the end of August, according to Urban Redevelopment Authority data.

Other recent condos in the area are Hundred Trees and Botannia.

The 396-unit Hundred Trees condo in West Coast Drive, completed this year, was built on the former Hong Leong Garden condo site and is next to NeWest.

Homes had an average sale price of $1,401 per sq ft (psf) from April to September this year, property portal STProperty data show.

The median rental at Hundred Trees is $4.44 psf per month, according to Singapore Real Estate Exchange (SRX) data.

At the 493-unit Botannia in West Coast Park, completed in 2009, the average selling price was $1,303 psf from April to September, according to STProperty. Median rent is $3.43 psf a month, SRX data show.

Other projects include the freehold The Parc Condominium in West Coast Walk with 659 units, completed in 2010, and the 616-unit, 99-year leasehold Blue Horizon condo in West Coast Crescent, completed in 2005.

Tenants in the area are mostly expatriates and people who work or study at one-north, Singapore Science Park, the National University of Singapore and Singapore Polytechnic, consultants said.

The presence of Japanese schools in West Coast Road leads to a significant Japanese tenant population, said PropNex chief executive Mohamed Ismail.

Ms Chow said the area is popular among expats working for multinational companies in Jurong and Tuas. It also appeals to those working at HarbourFront and Tanjong Pagar due to the ease of commuting to the Central Business District via the Ayer Rajah Expressway, she said, adding that rents are cheaper in West Coast Park compared with Buona Vista.

One downside to the area is the absence of an MRT line.

[email protected]

[Ringo33]

http://www.straitstimes.com/archive/...rents-20131012

HOT SPOT

Tenants drawn to West Coast's lower rents

Published on Oct 12, 2013

By Melissa Tan


THE West Coast Park area, largely built on reclaimed land, is mainly occupied by light industry, some recreational areas and older housing projects.

But the estate is undergoing a rejuvenation and remains attractive to renters, consultants say.

There is potential for collective sales, given many older developments on smallish plots in the West Coast Road and Pasir Panjang areas, said Chesterton Singapore research head Elaine Chow.

One recent launch is the NeWest mixed development on the site of the former Hong Leong Garden Shopping Centre.

The 12-storey residential and commercial development went on sale in May and 134 out of its 136 homes have been sold by the end of August, according to Urban Redevelopment Authority data.

Other recent condos in the area are Hundred Trees and Botannia.

The 396-unit Hundred Trees condo in West Coast Drive, completed this year, was built on the former Hong Leong Garden condo site and is next to NeWest.

Homes had an average sale price of $1,401 per sq ft (psf) from April to September this year, property portal STProperty data show.

The median rental at Hundred Trees is $4.44 psf per month, according to Singapore Real Estate Exchange (SRX) data.

At the 493-unit Botannia in West Coast Park, completed in 2009, the average selling price was $1,303 psf from April to September, according to STProperty. Median rent is $3.43 psf a month, SRX data show.

Other projects include the freehold The Parc Condominium in West Coast Walk with 659 units, completed in 2010, and the 616-unit, 99-year leasehold Blue Horizon condo in West Coast Crescent, completed in 2005.

Tenants in the area are mostly expatriates and people who work or study at one-north, Singapore Science Park, the National University of Singapore and Singapore Polytechnic, consultants said.

The presence of Japanese schools in West Coast Road leads to a significant Japanese tenant population, said PropNex chief executive Mohamed Ismail.

Ms Chow said the area is popular among expats working for multinational companies in Jurong and Tuas. It also appeals to those working at HarbourFront and Tanjong Pagar due to the ease of commuting to the Central Business District via the Ayer Rajah Expressway, she said, adding that rents are cheaper in West Coast Park compared with Buona Vista.

One downside to the area is the absence of an MRT line.

[email protected]

Might not be for long..

[thomastansb]

Ya, lower is an under statement. Rental will continue to slide. Those who got it lower will be happy they didn't got it even lower...

Might not be for long..

[newbie11]

I can't see how it can draw crowd when the previous building couldn't. It's down to tenant mix. The hawker didn't see more crowd after the parc top.

[kane]

lower compared to Prime and east coast lah. $4.44psf is not that low relatively.

[DKSG]

Ya, lower is an under statement. Rental will continue to slide. Those who got it lower will be happy they didn't got it even lower...

It will get even lower for West side. When more and more PCs TOP, many investors will realise one very fundamental fact in property investment.

The lesson is : "There are some PCs which you can HARDLY rent out. Put in market 3,6,9 months also got no offer." Hard truths in property investment.

So when buying a PC, when asking Location Location Location, always ask yourself if there is a good chance if cannot rent out.

Same question as asking, if Clementi same rental as Jurong, which will tenant pick ? If Novena same rental as Balestier, which one will tenant pick ?

The further you go away from the Central, the chances of rental goes down.

So, if we have 1,000 units and only 800 tenants, guess which 200 units cannot rent out ? Are these in Orchard Road ? Or Jurong ? Or Jurong West Extension ?

DKSG

[Singleton]

It will get even lower for West side. When more and more PCs TOP, many investors will realise one very fundamental fact in property investment.

The lesson is : "There are some PCs which you can HARDLY rent out. Put in market 3,6,9 months also got no offer." Hard truths in property investment.

So when buying a PC, when asking Location Location Location, always ask yourself if there is a good chance if cannot rent out.

Same question as asking, if Clementi same rental as Jurong, which will tenant pick ? If Novena same rental as Balestier, which one will tenant pick ?

The further you go away from the Central, the chances of rental goes down.

So, if we have 1,000 units and only 800 tenants, guess which 200 units cannot rent out ? Are these in Orchard Road ? Or Jurong ? Or Jurong West Extension ?

DKSG

With many MMs and 2 roomers units bought for investment purposes over the past few years, it is a worrying thought if the no of top units outstrip the no of people who are renting. Do u think this will happen within the next 2-3 years or the underlying demand for rental homes will still be more than supply?

Logical thinking suggests that there will be rentals whether in Jurong or Orchard or Punggol, bec people work in all these places, the question is whether which areas will have a relative oversupply, if at all.

[Rosy]

Rental at the west near mrt like boonlay, lakeside, jurong east mrt etc are quite strong in demand. U will be amazed by the rental transacted over at condos like centris, caspian, lakeshore or even older condos like parc oasis. Their rental is just slightly lower than some rcr condos.

The places where i feel there may be an oversupply of condos for rental in next 2-3years will be pasir ris and punggol. Currently, the rentals over there are already weak.

[Ringo33]

Rental at the west near mrt like boonlay, lakeside, jurong east mrt etc are quite strong in demand. U will be amazed by the rental transacted over at condos like centris, caspian, lakeshore or even older condos like parc oasis. Their rental is just slightly lower than some rcr condos.

The places where i feel there may be an oversupply of condos for rental in next 2-3years will be pasir ris and punggol. Currently, the rentals over there are already weak.

Thats because there are simply more jobs than supply of housing in the west. And for the east north and north east, its the opposite so you will need to be very selective when buying investment property in those region.

If you want to buy investment property to collect rent, just put your money in the west, you wont go wrong.

[heehee]

Retirees like me prefer to live far away from refineries & similar heavy industries. Really bad for health. I don't want to die cannot die, suffer from all kind of cancers due to pollution + drain all my money on medical expense. Soon, more than 20% in SG will be Retirees like me.

Thats because there are simply more jobs than supply of housing in the west. And for the east north and north east, its the opposite so you will need to be very selective when buying investment property in those region.

If you want to buy investment property to collect rent, just put your money in the west, you wont go wrong.

[yiguang2001]

The key to property is actually government.
- they control the cooling measures
- they control the FT numbers
- they control the land
- they control the development

When rental and vacancy rate go the wrong direction for Singaporean investors, chances of adjustment is very high. Election time is not the time to upset too many people.

[onglai]

The key to property is actually government.
- they control the cooling measures
- they control the FT numbers
- they control the land
- they control the development

When rental and vacancy rate go the wrong direction for Singaporean investors, chances of adjustment is very high. Election time is not the time to upset too many people.

they cannot control recession.

[mermaid]

With many MMs and 2 roomers units bought for investment purposes over the past few years, it is a worrying thought if the no of top units outstrip the no of people who are renting. Do u think this will happen within the next 2-3 years or the underlying demand for rental homes will still be more than supply?

personally, I feel tat in the next 1-2 yrs, I expect supply to be more den demand. hence small units targeted for rental will face a certain degree of challenge if they r not so ideal ~ low floor, not near mrt, far fm amenities etc....

but with TDSR permanently there, I would tink tat gg fwd, quantum will be the main deciding factor. units having smaller psf/sizes will reign in demand.

[minority]

http://www.straitstimes.com/archive/...rents-20131012

HOT SPOT

Tenants drawn to West Coast's lower rents

Published on Oct 12, 2013

By Melissa Tan


THE West Coast Park area, largely built on reclaimed land, is mainly occupied by light industry, some recreational areas and older housing projects.

But the estate is undergoing a rejuvenation and remains attractive to renters, consultants say.

There is potential for collective sales, given many older developments on smallish plots in the West Coast Road and Pasir Panjang areas, said Chesterton Singapore research head Elaine Chow.

One recent launch is the NeWest mixed development on the site of the former Hong Leong Garden Shopping Centre.

The 12-storey residential and commercial development went on sale in May and 134 out of its 136 homes have been sold by the end of August, according to Urban Redevelopment Authority data.

Other recent condos in the area are Hundred Trees and Botannia.

The 396-unit Hundred Trees condo in West Coast Drive, completed this year, was built on the former Hong Leong Garden condo site and is next to NeWest.

Homes had an average sale price of $1,401 per sq ft (psf) from April to September this year, property portal STProperty data show.

The median rental at Hundred Trees is $4.44 psf per month, according to Singapore Real Estate Exchange (SRX) data.

At the 493-unit Botannia in West Coast Park, completed in 2009, the average selling price was $1,303 psf from April to September, according to STProperty. Median rent is $3.43 psf a month, SRX data show.

Other projects include the freehold The Parc Condominium in West Coast Walk with 659 units, completed in 2010, and the 616-unit, 99-year leasehold Blue Horizon condo in West Coast Crescent, completed in 2005.

Tenants in the area are mostly expatriates and people who work or study at one-north, Singapore Science Park, the National University of Singapore and Singapore Polytechnic, consultants said.

The presence of Japanese schools in West Coast Road leads to a significant Japanese tenant population, said PropNex chief executive Mohamed Ismail.

Ms Chow said the area is popular among expats working for multinational companies in Jurong and Tuas. It also appeals to those working at HarbourFront and Tanjong Pagar due to the ease of commuting to the Central Business District via the Ayer Rajah Expressway, she said, adding that rents are cheaper in West Coast Park compared with Buona Vista.

One downside to the area is the absence of an MRT line.

[email protected]

actually is quite true. know of quite a no. that are renewing their rent move West.

[minority]

they cannot control recession.

well many dont care. they cannot see beyond the borders of singapore. They will just blame if things go to shit.

[Ringo33]

personally, I feel tat in the next 1-2 yrs, I expect supply to be more den demand. hence small units targeted for rental will face a certain degree of challenge if they r not so ideal ~ low floor, not near mrt, far fm amenities etc....

but with TDSR permanently there, I would tink tat gg fwd, quantum will be the main deciding factor. units having smaller psf/sizes will reign in demand.

Do you think Bishan Sky Vue will have better capital gain and rental potential than J Gateway?

[minority]

Do you think Bishan Sky Vue will have better capital gain and rental potential than J Gateway?

I think its not the time to enter the market. the growth are at the end of the curve. be it BS or JG. I think its all with very limited upside.

hate to burst anyones bubble but thats the hard truth.

[RCT]

The key to property is actually government.
- they control the cooling measures
- they control the FT numbers
- they control the land
- they control the development

When rental and vacancy rate go the wrong direction for Singaporean investors, chances of adjustment is very high. Election time is not the time to upset too many people.

Upset rich people is ok, anyway this group of people is small anyway. Upset the poor, then u may see more and more seat loss... So do you think majority of the people want to see price up or price down? I think the last election have send out a clear signal.

[minority]

Upset rich people is ok, anyway this group of people is small anyway. Upset the poor, then u may see more and more seat loss... So do you think majority of the people want to see price up or price down? I think the last election have send out a clear signal.

Actually there is not a lot of poor. just the big group of middle class with very big aspiration.

[EBD]

I think its not the time to enter the market. the growth are at the end of the curve. be it BS or JG. I think its all with very limited upside.

hate to burst anyones bubble but thats the hard truth.

I think you could well be correct.
Looks like developers reeling in the last few suckers.

[mermaid]

it's time for the developers to lower their bids!

[thomastansb]

I think majority of the people want to buy low and sell high (who doesn't?). If they are sellers, they want prices to go up. IMO, I feel people f the government for anything. Even if they own properties, they still kpkb high prices even though that benefit them. But if prices will to come down, which I think there is a very extremely high chance that it will, at least the Government can say they have done their part to moderate the prices. Yes, people will be tu lan, people will still kpkb, but people have nothing more to say. They get what they asked for. The government just fulfilling people's wishes.

Upset rich people is ok, anyway this group of people is small anyway. Upset the poor, then u may see more and more seat loss... So do you think majority of the people want to see price up or price down? I think the last election have send out a clear signal.

[walkthetiger]

I think majority of the people want to buy low and sell high (who doesn't?). If they are sellers, they want prices to go up. IMO, I feel people f the government for anything. Even if they own properties, they still kpkb high prices even though that benefit them. But if prices will to come down, which I think there is a very extremely high chance that it will, at least the Government can say they have done their part to moderate the prices. Yes, people will be tu lan, people will still kpkb, but people have nothing more to say. They get what they asked for. The government just fulfilling people's wishes.

Give the less wealthy group a chance to buy low now, give everyone a chance to enter the game, if the price doesn't drop and still going up a fast and furious pace, this group of people will be deprived in the property game forever. Especially the younger ones have just started and live on salary. Think for them too.

[walkthetiger]

it's time for the developers to lower their bids!

...hah...It does remind me of Centerpoint making a famous record bid for Yishun.. Good luck to them.

[mermaid]

...hah...It does remind me of Centerpoint making a famous record bid for Yishun.. Good luck to them.

tat one special case, cos it is yishun gateway

[minority]

Give the less wealthy group a chance to buy low now, give everyone a chance to enter the game, if the price doesn't drop and still going up a fast and furious pace, this group of people will be deprived in the property game forever. Especially the younger ones have just started and live on salary. Think for them too.

Well it depends. Less wealthy will always have chance to enter the market. Thats what HDB has provided the 1st timer.

Done mean market crash the less wealthy can enter. coz why? usually in those scenario interest rates will spike. TDSR caps the amount that they can come in as investment.

The other factor is human factor in a crash these players usually dont have the guts for risk.

Some will benefit from a price drop but not all the KPKBs.

I am not complaining. but if it drops I am not complaining either

[walkthetiger]

Well it depends. Less wealthy will always have chance to enter the market. Thats what HDB has provided the 1st timer.

Done mean market crash the less wealthy can enter. coz why? usually in those scenario interest rates will spike. TDSR caps the amount that they can come in as investment.

The other factor is human factor in a crash these players usually dont have the guts for risk.

Some will benefit from a price drop but not all the KPKBs.

I am not complaining. but if it drops I am not complaining either

Surely not HDB.
Market crash.. but no one knows when...

[Shanhz]

Give the less wealthy group a chance to buy low now, give everyone a chance to enter the game, if the price doesn't drop and still going up a fast and furious pace, this group of people will be deprived in the property game forever. Especially the younger ones have just started and live on salary. Think for them too.

but forever there will be a "younger one" after the younger one has gotten their house. that's why govt help you to buy your first house. but beyond that, it is indeed getting more and more difficult with the prices and policies. takes a major crash to change that.

[thomastansb]

They have BTO to enter the game. Buy 250k, sell 500k. But ironically, the younger ones are screwing themselves. They want resale prices to come down - which take away their chance to enter the game. But they deserve it since this is what they want.

Give the less wealthy group a chance to buy low now, give everyone a chance to enter the game, if the price doesn't drop and still going up a fast and furious pace, this group of people will be deprived in the property game forever. Especially the younger ones have just started and live on salary. Think for them too.

[thomastansb]

Nowadays, the younger generation want the resale prices to come down. So if they buy at 250k, they prefer to sell at 300k. Seems like the intelligence level of our Gen Y is going downhill.

Well it depends. Less wealthy will always have chance to enter the market. Thats what HDB has provided the 1st timer.

Done mean market crash the less wealthy can enter. coz why? usually in those scenario interest rates will spike. TDSR caps the amount that they can come in as investment.

The other factor is human factor in a crash these players usually dont have the guts for risk.

Some will benefit from a price drop but not all the KPKBs.

I am not complaining. but if it drops I am not complaining either