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EVERYONE
QUOTING THE INTEGRATED RESORTS (I.R.) FOR
IMPROVING
SINGAPORE
'S FUTURE PROSPECTS.
The Resort World in Sentosa is expected to
open in Feb 2010 and The Las Vagas Sands
in
Marina
Bay
in April 2010.
Current
fad and much expectations have been quoted
that the
Singapore
economy
and
the
people
will
benefit from
much of the in-bound tourist traffic and
the spending spree on branded goods,
convention facilities, theme parks, hotels
& other leisure amenities and the
casinos.
Such
exuberance has influenced and convinced
many investors to invest / speculate in
the real estate market, especially in the
private residential properties market
which is at the crossroads of experiencing
present low interest rate, low rental
yield, potential capital appreciation, and
the probability of more government
intervention to cool the escalating bubble
and its increase in price over the last 1
year. The retail property market is just
starting to show signs of catching up.
For
selling or buying retail properties, 2
factors need to be taken into
consideration:
A.
More supply of shopping space.
Between
this year and next 2 years, a lot more
shopping space will be available in the
market. The increase in space and the
unique shopping concepts will impact
shopper preference and habits. For the
survival and continuous success of a
shopping centre, each should have a
specialised trade or product range. For
example,
Far East
Plaza
is known as a young fashion and lifestyle
centre, and a venue for new start-ups and
young entrepreneurs.
Sim Lim Square
is known as the best place to source and
bargain for the latest I.T. and
electronics products.
The
new shopping space supply include:
In
2009.
The
Iluma @ Bugis, Tampines One; Orchard
Central, 250,000 sq ft; The Ion Orchard,
710,420 sq ft with 355 shop units; City
Square Mall; 313@Somerset, 294,000 sq ft
with 177 shop units; Mandarin Gallery,
126,000 sq ft with 103 shop units, The
Verge ( revamped Tekka Mall ),
Next
2 years.
Clementi
Mall, 269,000 sq ft; Katong Mall, 282,000
sq ft, (revamped); Nex in Serganoon
Central, TripleOne Somerset ( former
Singapore Power Building or PUB Building
); The Hereen, (revamped); Former
Specialists' Shopping Centre & Phoenix
Hotel with a Skybridge to the newly
constructed ex-Orchard Emerald;
KnightBridge, 83,000 sq ft, next to Park
Hotel Orchard ( former Crown Prince Hotel
).
B.
Standard yield guideline or rental
returns.
As a
guide, the yield for freehold retail space
investment is 5% and for 99 leasehold is
6%. This is the gross yield and exclude
maintenance fees and the property tax.
Other
factors which are also important include:
1.
The vacancy rate ( how soon to be rented
out? ).
2.
The re-sale market ( how fast to sell out?
).
3.
The capital appreciation rate ( how fast
can price increase? ).
4.
The quality of tenants ( being good-pay
masters, default rate, etc. )
5.
After-sale service and marketing packages
like those offered by our company.
(We
have many rental packages to minimise your
risk and frustration over tenants' default
and rental income stability. Call us for a
confidential discussion if you have
problems with your tenants @ HP 96736477.
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