http://www.todayonline.com/business/some...nd-silence
Mixed Developments are facing the brunt of the retail space woes and it is indeed true; personally went to Simpang Bedok and saw that East Village does not have much foot traffic segment despite being a weekend night. Another trend which I have noticed is the increasing rental by tuition/enrichment classes in suburban malls.
For East Village and other small malls, it is the problem of fragmented ownership. Cannot manage tenant mix or do joint marketing to generate traffic.
http://singaporeanstocksinvestor.blogspo...space.html
Interesting share by a reader of AK71.
Personally beside fragmented ownership, another problem is location. Lucky Plaza at orchard is also a fragmented ownership mall; the difference is the identity it was able to create and its location of being near Orchard MRT.
It is worth noting in the article, many of these malls (e.g East Village) are far flung from transportation landmarks such as MRT. It is not as if you can build a retail mall anywhere and expect business to prosper.
What to do, property is easy to get leverage on and seen as sure win by most people. people are always so bullish on property.
Usually new generation doesn't have experience of a painful correction/crash and have to learn things hard way.
A bit like stocks also, but at least with stocks u can't so easily leverage up as much and people see it as a risky asset so are more careful.
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(22-01-2017, 01:18 PM)CY09 Wrote: [ -> ]http://singaporeanstocksinvestor.blogspo...space.html
Interesting share by a reader of AK71.
Personally beside fragmented ownership, another problem is location. Lucky Plaza at orchard is also a fragmented ownership mall; the difference is the identity it was able to create and its location of being near Orchard MRT.
It is worth noting in the article, many of these malls (e.g East Village) are far flung from transportation landmarks such as MRT. It is not as if you can build a retail mall anywhere and expect business to prosper.
Agreed. Location is important for Malls and being near transportation hub can make a huge difference.
Common knowledge nowadays is not enough to excel in business and investment.
When a retail/commercial property is near a transport hub, it will naturally command a high price and thus has less investment merit. For myself the best way to go about learning about commercial property is to go around talking to the tenants/shop owners given a chance and to observe the crowd it attracts. To the point I asked them about their revenue, which is a very sensitive matter. Another indirect way of asking is to ask about average number of customers and the average spend.
Just yesterday I was in one of the most remote parts of Singapore. It was extremely crowded with bumper to bumper traffic at the carpark and within the supermarket located there, it was hard to move around, shoulder to shoulder. Granted it is the last weekend before CNY but I strongly believe that the crowd should still be there during normal weekdays/weekends.
Given its location, at first glance without digging in further, no one would even think of investing/renting a commercial property there. But upon further investigation, one realize that it is a gold mine but with no opportunity available, and no commercial units are available for sale or rent.
More than once I have learnt not to brush off any investment at face value. It always pay to dig a little deeper, and if primary findings turns out to be positive, dig deeper and find out everything within ones means. Would require foot work and thick skin. The good stuff are usually not easily found and once in a very long while, it can be totally rewarding.
I think there is 2 types of property investors.
1. Invest and hope that the property would continue to go up.
2. Invest and actively try to add value eg. fixer-upper, redevt, changing tenant mix, subdivide, combine, branding etc.
Most people are type 1 and most are in resi which dont have much leeway except partition and make into workers' dorm..haha.
Type 2 are rare. Esp in SG where the big ticket size for property. Examples: Simon Cheong, SunVenture guy (buys Westgate with LKH), Kwek LB (buys up all condos PIE-Balestier to amalgate the land), David Lawrence (Wheelock), Edwin Cheung (ITC Properties)
The opportunities that come too easily are usually the worst ones.
Agents will say anything and everything to make you buy that piece of property.
There is one that I came across recently that assumes 100% tenancy throughout the remaining leasehold and not only that
assumes more than double the actual market rent(yes, they do that) and worked out the 'true value' of the commercial property according to the assumptions.
Any person who even has the slightest clue about retail would have know a lot of shop space (especially in mixed development) in the market is grossly overpriced. Space is too small, shape is too odd to be usable and it is almost impossible for potential tenant to generate any meaningful profit. Residential is safer in a way that if the rent is dropped significantly, there will be tenants. Can't say the same for commercial properties, in a way, it is riskier.
List of Unsold Condo Units in Singapore 2019
To date, a projected number of 56,803 unsold condo units in Singapore till 2023
Last updated Aug 25, 2019
Due to the robust en sales that took place between 2017 till the 1st half of 2018, homebuyers and investors will likely be overwhelmed by the huge number of new launch (or uncompleted) projects which are available in the market right now.
According to the Urban Redevelopment Authority (URA) of Singapore,
the total number of uncompleted private homes (excluding executive condos) in the pipeline works out to be a whopping 53,284 by the end of Q1 2019.
In Q4 2018, the number was 51,498 – which means another 1,786 uncompleted homes have been added on to the impending supply.
The worrying part is that the take-up rates are not growing as fast and the supply piles up. By the end of Q1 2019, the number of unsold condo units tallies up to 36,839 – which is 2,015 units more than Q4 2018.
If you were to include the number of unsold executive condo units as well, here’s how the supply numbers will look like for the next couple of years.........
Read more :
https://newlaunch101.com/list-of-unsold-...pore-2019/