My Glendale Park Property Update

 

Recently gotten a new tenant. The take up rate is pretty fast no vacant week. Did minor cleaning and some patch work for the house. Changed a tap and did servicing for the aircons. The aircon people even changed the whole aircon cover as well, quite efficient.

The previous tenant is pretty helpful too. He polished all bedroom flooring before the handover. The rental payment has gone up by another $100.

Capital appreciation wise for this month. If I based it on the latest July transaction which is of low flooring. The psf is $1,422. We bought our unit at $1,147 in 2019. That means a 24% capital gain in two years, excluding rental. Reason is likely due to low interest rates increases buyer demand and the large price gap between new 99 years launches and the old freehold as mentioned in my previous article.

URA released another set of 2Q 2021 data:

The price and rental index continues to inch upwards. 

(Prices of landed properties decreased by 0.3% in 2nd Quarter 2021, compared with the 6.7% increase in the previous quarter. Prices of non-landed properties increased by 1.1% in 2nd Quarter 2021, compared with the 2.5% increase in the previous quarter.

Prices of non-landed properties in Core Central Region (CCR) increased by 1.1% in 2nd Quarter 2021, compared with the 0.5% increase in the previous quarter. Prices of non-landed properties in Rest of Central Region (RCR) increased by 0.1%, compared with the 6.1% increase in the previous quarter. Prices of non-landed properties in Outside Central Region (OCR) increased by 1.9%, compared with the 1.1% increase in the previous quarter. 

Rentals of private residential properties increased by 2.9% in 2nd Quarter 2021, compared with the 2.2% increase in the previous quarter.

Rentals of non-landed properties in CCR increased by 3.1%, compared with the 2.9% increase in the previous quarter. Rentals in RCR increased by 2.8%, compared with the 2.0% increase in the previous quarter. Rentals in OCR increased by 3.6%, compared with the 2.1% increase in the previous quarter)

Again the market favors the Condo OCR assets more than the rest. Condo price growth qtq has slowed, but OCR price increase has accelerated qtq. Even rental in OCR has increased by 3.6% more than previous quarter. Among residential, office and retail. Residential again showing the lowest vacancy rate among the three. (6.3% vs 12.6% vs 8.5%). A 0.1% improvement in vacancy qtq for residential but office vacancy rate has gone up quite substantially, likely due to covid and wfh arrangements.

I continue to believe that there is a substantial price discrepancy in old freehold condos in good location. Some of these assets are not maximized to their full gfa/plot ratio potential yet. So price appreciation and enbloc potential are there as long as I don't time the market and hold it long term.

See how it goes.