Last year the value of all the shophouse deals in Singapore reached the figure of S$655.6 million, an 8% rise from the S$606.2 million value of deals done in the year before for Clementi Ave 1 Condo. Whilst transactions increased in their total value, the number of deals that were made actually decreased in 2015. In total 103 caveats were recorded last year. That was down from the 2014 total of 112 completed deals. This suggests that the shophouses near Singapore Land Singland Homes that did change hands last year at greater amounts than they did in 2015.
Clementi Condo near NUS
A few Singapore based market watchers have told The Business Times that there have been rising levels of interest for this kind of property asset from from ultra high value investors as well as family funds. Some of these investors in Clementi Avenue One Condo are content to accept lower entry financial yields of around 2 to 3% (gross) with the hope of notable appreciation in the medium term through to the long term.
One of these Singland Homes Clementi Ave 1 Condo experts expects both the value and also the volume of shophouse transactions to remain at a constant level this year. Levels pretty similar indeed to the levels experienced in 2014 and 2015. Value and volume levels will remain similar mainly due to the majority of investors being in it for the longer term haul. Further more all the buyers will expect higher entry yields as they stay cautious in what they are willing to buy due to impending increases in interest rate levels in Clementi Site UOL Condo, which are lurking in the background.
Shophouses near Clementi Ave 1 Condo
However the pool of genuine, therefore also serious investors intent on exploring this type of property asset is set to broaden. That is with an anticipated entry of more institutional funds exploring shophouses, many for the first time. Those investment funds that like what they see are then more likely to add shophouses to their over all property portfolio. At the moment these properties are tempting purchases for buyers that would not have previously considered them at all.
Real estate analysts in Singapore note that despite a recent and rather slight pick up in interest concerning the shophouse market that both the vale as well as the volume of shophouse deals have declined sharply. That sharp decline in Clementi Ave 1 Condo is mostly due to the introduction of the total debt servicing ratio (TDSR) framework at the end of June 2013. Although this measure is designed to prevent people into too much debt it has had a negative impact on the sale of properties.
The data undoubtedly demonstrates the negative impact of TDSR. In the period between Q1 2012 and Q2 2013 the average number of caveats logged ranged from 61 through to 84 % per quarter. With TDSR in place that has fallen to between 22 and 33 transaction each quarter since Q3 of 2013.
Clementi Condo near NUS
Besides the volume of deals declining sharply, the value also fell drastically. Instead of ranging from S$287 to 464 million per a quarter prior to TDSR. However it fell to an average of between S$124 to 204 million a quarter since the introduction of TDSR.
Some of the shophouse deals of Q4 2015 include three sited in a row, namely the freehold shophouses at number 42, 43, 44 Joo Chiat Road. The combined price for all three properties was S$23 million. That price works out at S$1,552 per square foot on the total built on area.
These shophouses are located opposite the Joo Chiat Complex. Each of the shophouses is two stories high and has an attic at the front, and four stories plus an attic to the rear of the building. It is a relatively good location for retail properties to be located within. location without a doubt made it easier to sell these Singapore Land Singland Homes shophouses.