Property tips and trends

When buying private property, real estate experts say some of the things to consider are location, proximity to transport nodes, towns, malls, amenities, good schools and landmarks.ST PHOTO: LIM YAOHUI

The local private housing market has been a hotbed of activity in recent years, with feverish collective sales and fast-rising prices that were put to a halt by the Government’s cooling measures last July. However, sentiment has picked up and sales have been relatively resilient this year, with strong take-up rates for new project launches. Where does this leave prospective home buyers? Industry experts share with Derek Wong their tips on buying property and what trends to look out for.

CHRIS KOH, DIRECTOR OF PROPERTY CONSULTANCY CHRIS INTERNATIONAL

TIPS
• Location is always the top priority in property investment. Private property in a good location, near amenities like transport nodes, business parks, shopping complexes and good schools, always commands higher prices. It is also easy to find tenants to lease to for rental income.

• One should also consider whether the property is freehold or leasehold. However, freehold properties come with a premium. If you are buying a leasehold property, it is important to ensure the lease is long enough for you to live in it till age 95 so that there are no Central Provident Fund (CPF) or loan restrictions.

TREND TO LOOK OUT FOR
Condominiums of the future will comprise more than 1,000 units. These larger projects will have an array of facilities and lifestyle themes to meet the preferences of the younger generation.

TRICIA SONG, HEAD OF RESEARCH FOR SINGAPORE, COLLIERS INTERNATIONAL

TIPS
• Home buyers who are owner-occupiers should check the transaction data and understand why some properties fetch a premium or discount. Go to Onemap.sg to check prices and rents of comparable properties, distance to transport nodes, schools, amenities and landmarks.

• Investors could look out for government initiatives. A boost in infrastructure in the area should boost property values. For example, in the Jurong East planning area, private residential prices have grown by about 70 per cent since Q1 2008 when the Jurong Lake District was first mooted, significantly more than the 17.3 per cent increase in the overall private residential price index over the same period.

TREND TO LOOK OUT FOR
We expect rents to go up 3 per cent in 2019, as more well-located projects are completed – which could help boost rents. The anticipated decline in new completions and potential demand for rental homes from those displaced by collective sales could also lend some support to the leasing market.

ISMAIL GAFOOR, CEO OF PROPNEX REALTY

TIPS
• Buyers should enter the market with a mid-to-long-term view of holding the property (beyond at least five years). They should not enter with a speculative mindset and wanting to have quick capital appreciation within five years.

• In any property investment, all capital appreciation is a by-product of rental yield over time. It is important to buy a property that has a strong hinterland of a workforce based on the rejuvenation of areas mapped out by the authorities in the masterplan, as well as the proximity of an MRT station.

TREND TO LOOK OUT FOR
For the first four months of the year, we have observed buyers and investors trending more towards the outside central region (OCR), compared with the core central region (CCR) and rest of the central region (RCR).

Projects such as Affinity At Serangoon, Parc Botannia, Treasure At Tampines and The Tre Ver have performed well in the OCR segment. Tricia Song, head of research for Singapore, Colliers International

GALVEN TAN, CBRE EXECUTIVE DIRECTOR OF CAPITAL MARKETS AND RESIDENTIAL SERVICES

TIPS
• If you are buying for occupation, you should know that sellers in the resale market are more realistic now, while for new projects, buyers have a plethora of choices and developers are cautious with their pricing.

• For resale units, do refer to the common noticeboard on the property for information on renovation or collective sale announcements. This is to avoid a situation you could be unaware of, and that may later incur a large impending levy, among other things.

TREND TO LOOK OUT FOR
Developers have been trying to differentiate their projects by the numerous amenities/facilities that they provide within the development.

Often, it is more important and practical to have a unit with functional areas than various fanciful amenities which are not really a must-have.

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