My Thoughts on Glendale Park and Property Talk

 

The recent Rail Corridor news has brought some interest to Hillview because its one of the access point. From Hillview MRT Station, you can walk a short distance to the Rail Mall, which is a small stretch of shops. From there, you can walk up a dirt path to a bridge along the Rail Corridor.

This might mean increase foot traffic to Rail Mall which is owned by SPH and Hillv2 mall(Far East Organisation). Which in turn might increase the vibrancy of this part of Singapore which is usually quiet and serene.

My unit at Glendale continues to be rented out with gradual rent step up. The demand is still prevalent. According to URA data. OCR has the lowest vacancy rate of 5.1% compared to RCR(7.3%) and CCR(11%). On a macro level residential property has an average vacancy rate of 7% compared to Office space at 11.8% and Retail space at 8.8%. This means residential space is a safer haven because people that live and work in Singapore needs a place to stay that is a basic necessity. The reason OCR has the lowest vacancy, is because there is a trend of decentralization for office space and now residential space. moving away from central to outskirt is more cost effective for tenants.

Price appreciation wise, if I use all the psf transactions done in 2021 and average them, I get 1,288.5psf. This means there is a 12.33% capital appreciation from my purchase price since 2019. This might not be totally accurate as there are only 4 transactions and the floor level and interior renovation might cause small discrepancy. But its a good gauge.

Singapore property index has been consolidating for 8 years since 2013. The demand is increasing due to low interest rates. Government has implemented 10 cooling measures to cool the market so far. This means private property owners here are long term holders and not speculative because tdsr, absd, seller stamp duty and ltv removes speculation and pump and dump motives completely. This is good because it makes the property prices here more stable, less likely for owners to force sell. Also gives move levers for government to control the market if there is a sharp correction. 

There is now a large price gap between new 99 years launches and old freehold condominiums. This is irrational and I believe this price anomaly should be closed over time. 99 years land no matter how new, cannot compare with freehold which is immune to the bala curve. Condominium is a global asset ie its the only asset in Singapore where Singaporeans and foreigners can buy freely. The recent news on Eden by Swire which sold the whole development to a Chinese at above 4.8k psf and UHNWs buying properties here in Singapore tell us that the demand from foreigners despite the 20% absd is strong. See how it goes.