12 Apr 2018
An Attractive Investment Opportunity
I expect a recovery in prices in the immediate future. Transactions figures for private properties are expected to grow on the back of pent-up demand, improved sentiments and upcoming launches by developers. With Singapore’s economic outlook looking rosier, investor confidence is on the road to recovery.
Local housing sector has recently rebounded. This is in contrast to major peer cities such as Hong Kong and Tokyo where home prices increased and housing affordability has worsened.
The recent en-bloc phenomenon might flush the property market with liquidity. I expect prime locations in Singapore to benefit greatly from this influx. According to Nov 17 ERA Research, the market could be flushed with liquidity in 2018; S$6.8billion to 2,839 household units in total.
A project worth considering for investors is M5 by Amara Holding. M5 is a freehold condominium located at Jalan Mutiara. The 33-unit M5 offers an exquisite collection of 1 and 2-bedroom apartments as well as penthouses at the edge of Orchard Road. Located near the upcoming Great World City MRT Station, within walking distance to Great World City and Valley Point Shopping Centre makes M5 an attractive investment opportunity.
I am fairly certain that The Total Debt Servicing Ratio (TDSR) is structural and will be here to stay. This makes lower quantum properties like M5 more attractive to investors.
Roxy-Pacific Holdings through its subsidiary, RH Capital Two Pte Ltd, has acquired a vacant freehold site near M5 for $110 million. This acquisition is at $1582psf/ppr. I expect the sale of the final product to be close to $3000psf.
With surrounding land prices achieving new heights and the upcoming MRT Station, plus the return of “foreign” demand in prime areas, M5 offers a great value proposition. It is my top pick as an excellent property investment.
