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Too many First-time Singaporean property investment owners are more sentimental than realistic resulting in high vacancy rates. I hope real cases of other Owners and my personal encounters described below and illustrated by 3 brand new Condos will be beneficial to all first-time investors.

• 19 Shelford Condos. Brand new, with too many Owners and Agents sticking paper advertisements on too many windows, showing prospective Tenants that there are too many vacant units. Available for past 3 months but vacancy rates are still high. I was active in promoting this condo but most Owners seem to be unaware of competitors such as Maplewoods, Valley Park and UE Square which have full condo facilities and are located near main roads/near Raffles Place.

I was very active promoting a 19 Shelford   2-bedroom unit and this Condo to expatriates - singles/couples in November 1997. Expatriates in general are not interested. Owners in general appear well off with holding power to ask high rentals and therefore indecisive.

For example, ground floor units are extremely unpopular (First-time investors do not buy such units) but I got a $1,800 rental, unfurnished, 2 years w.e.f December 1, 1997 for an Owner.

The Owner wanted to rent furnished at $2,000 but her furniture was stored somewhere and it was inconvenient for the prospects to view them. Now she wanted at least $2,300 as other Agents had advised her not to "undercut" and that she could rent for more than $2,500.

Since the new UE Square and Harbourlights Condos are more marketable and Owners, it is not economcially feasible to spend so much time on condo rentals in the suburbs.

I got a $2,000 fully furnished offer for a one-bedroom unit with a small balcony on the second level, facing the pool and a small cascading waterfall. The Owner felt she could get more (unit is still vacant) but does not understand that it took me lots of time and ground work to convince this American lady (single) to take up 19 Shelford.

Her preference was Orchard Road area like all Americans since cars are so expensive. The Owner was indecisive thinking her weekend advertisement would bring her better offers. There were none but another Agent found a 2-bedroom above ground level in 19 Shelford for $2,000!.

I was not the exclusive housing agent as Owners seldom give exclusive rights nowadays nor do I ask for one as I know 19 Shelford does not attract prospects with its uncompetitive high rentals.

• Harbourlights Condos. Many Owners still feel that $3,500 to $4,000 for a 2-bedroom of around 900 sq. ft are in demand, forgetting that UE Square Condos which are better located, being near to Raffles Place have bigger 2-bedrooms of 1,100 sq. ft asking for $4,000. I rented one unit of Harbourlights Condos (7th floor) to an American Single at $2,600 partially furnished. Only the 7th floors of Blk B, facing the road have some sea and greenery views of Sentosa Island. The American’s budget was $2,500 and he would not pay the stamp fees and would pay only one month’s deposit.

The Owner was initially hesitant too wanting to consult the wife. I explained that December and January are quiet months for rentals and he would not have got $5,200 if his apartment is vacant for 2 months. For indecisive Owners, vacancy stretches to over 6 -12 months until all agents give up, except for the hungry ones/new-comers. Once the Owner is indecisive, I would contact the next choice or the prospect changes his mind. The Owner is a first-time property owner but he is investment minded and knowledgeable about market conditions. His wife was pro-active (this helps a lot as husbands are usually busy in the Office). When she saw me with the American in the condos, she invited us to view her place.

Another Owner’s wife missed the opportunity as she just wanted my name card to call me later (which she did after 10 days) but would not agree to viewing on the spot (Important for Owners to permit viewing on the spot when Agent has an "Ang Mo" - First time Buyers’ spouse to note as there may not be a second chance)

UE Square has full condo facilities. 2-bedroom apartments vary from 800 - 1,100 sq. feet in different layouts with some facing offices (unpopular) while others have city and Fort Canning views. Owners are asking $4,000.

Some early bird investment-minded Owners have rented (First time Buyers to be pro-active in getting the keys early so as to get Tenants before others and thereby recouping investment costs earlier) at $4,700 and $4,300 but most Owners are still getting their keys.

This week, I advertise "UE Square Owners" wanted in the Straits Times "Private Apartments Wanted. Rent/Buy" and so far got 3 UE Owners. (First-time Buyers should be pro-active in listing their properties with agencies and check out this Properties Wanted column). My conclusion is that most Owners are not pro-active/not-investment minded.

• King Albert Park Condos. As advised by professionals, Owners told me they should not undercut and want rentals for a 2-bedroom apartment at $5,000. My advice to all first-timers - do you have full condo facilities and are you near Raffles Place/Shenton Way or Orchard Road? Are your units facing the main Bukit Timah Road (very unpopular with expatriates). Who are your competitors and what rentals are they asking? Why should an expatriate with $5,000 rental budget choose a 2-bedroom condo which is in a secondary location when he can get 3-bedroom?

Below are examples of pro-active Owners.

The 19 Shelford Condo Owner faces intense competition from newer and older 3-bedrooms which comprise almost 90% of new developments. Older 3-bedrooms in Pandan Valley/Clementi have dropped their rentals to $2,500 with whatever furniture the prospects want and they have existing expatriate community. Most of my clients are the 2-bedroom types and therefore, it is difficult for me to refer any to her and unethical for me to show prospects who have no interest in 3-bedrooms.

The Harbourlights Owner should be able to rent out his unit as he is a flexible and very active Owner. I would recommend to all first-time investors of studios and 2-bedroom apartments to spend a bit of money putting up a "big mirror" on the wall of the living room to "make the unit look bigger". This is a trick of Developers selling small units and it is an effective illusion of more space to buyers and prospective expatriates from Australia and USA. These expatriates are used to having more living space and cheaper rentals at home. Since they can’t do much about the high rentals asked, they can feel comfortable with illusions of space.

This article is sent to above 2 Owners and to thank them for the opportunity to market their units.

Internet Mail No. 1

To: Dr Sing Kong Yuen [SMTP:drsing@po.pacific.net.sg]
Sent: Tuesday, November 25, 1997 5:45 PM
From: .......

Subject: Re: APT FOR RENTAL IMMEDIATELY

L.... wrote:

Good morning.

Understand you have a stream of expats coming in during Nov-Jan period. I have a 3+1 condo in Bukit Timah (opposite Coronation Plaza), new, full facilities, available for rental immediately. Price negotiable. Interested, please drop me a line. Thanks. Regards,

Nov 25
Regarding expats, presently, I have one looking for a high rise, with balcony and gym at $4,000 fully furnished. Others are looking at $2,000 budget. The American couple with the $6,000 budget has not come yet. Pl let me know what are the details of your apartment. Is it the one facing Durnearn Road and the flyover? Bye.

.......wrote:

My apartment is on low floor with balcony, facing the cascading waterfall. Beautiful landscape, no afternoon sun, windy and no blockage. 3+1 bedrooms ideal for couple. Location: along Dunearn Road. I can provide you the map, if you can give me your fax # or contact no. The lighting and curtains are up and tenant can move in straightway. Interested, please contact or page ............Regards,

Internet Mail No. 2

From: Dr Sing Kong Yuen [SMTP:drsing@po.pacific.net.sg]
Sent: Wednesday, November 26, 1997 8:35 PM
To: .......

Subject: Re: APT FOR RENTAL IMMEDIATELY

Nov 26

My fax no. is 256 0501. Tel. 96686468.

1.   Please fax to me details of location, sq.ft, no. of bedrooms and whether you pay standard 1 month agency commission for 2 years' rental.

2.   I have an expat (couple), budget $2,000 fully furnished. 2 or 3 bedrooms. If your place is OK, please let me know immediately.

3. Whether you have 2-bedroom apartments?

From: Dr Sing Kong Yuen [SMTP:drsing@po.pacific.net.sg]
Sent: Thursday, November 27, 1997 5:04 PM
To: ......

Subject: Re: APT FOR RENTAL IMMEDIATELY

Nov 27

Hi

Pl accept my apologies for not being able to continue my conversation with you that day as I was in the midst of showing the apartment to somebody. Received your fax on accommodation off Dunearn Rd, but did not get name of condo. Now I presume it is 19 Shelford.

...... wrote:

Looking at your tel no, I think I've spoken to you before. Just curious, have you been to 19, Shelford before ? I will fax you a map to show the actual location. As for agency's fee, it is not a problem to pay 1 month agency for 2years' rental.

What about 1 year's rental, how much is the agency fee? Half a month.   And do you co-broke with other agency???

Yes. If yours is exclusively given to an agency, I will co-broke.
Naturally all agents prefer not to co-broke.

As for the Indian couple, I think the asking price is too low. We do not mind any nationality, as long as the rental price is reasonable. Would consider anything within 3.9K onwards as this a 3+1 bedrooms apt. The curtains and lighting are there already .

I understand. Will find suitable one within your budget.
How about the American couple you last mentioned. Any news??
Have not arrived yet. Regards,

Internet Mail No. 3

From: "......" <.......@COMPAQ.com>
To: "'drsing@pacific.net.sg'" <drsing@pacific.net.sg>

Subject: RE: APT FOR RENTAL IMMEDIATELY

Date: Thu, 4 Dec 1997 19:37:53 -0600

David,

Any latest development in the rental of my apartment? Have not heard anything from you yet.

Earlier on, you mentioned there is an expat, looking for high rise with balcony and with budget $4K, fully furnished. Have you secured a place for the expat yet ? Will he/she be interested in my area. No, as he does not have a car and it is very inconvenient to walk to the bus stops.. The gym is not available for viewing although occupancy permits have been issued, unlike other condos like UE Square or Valley Park.

Regards,

Internet Mail No. 4

Date: Fri, 05 Dec 1997 08:51:32 +0800

From: .......<l....@post1.com>

To: drsing@pacific.net.sg

Subject: 66, Harbourlights #....-....

Hello Dr Sing,

Thank you for your response. I hope there is good news from the Australian couple.

You had asked if I could be flexible. Well I think I have been accommodating, acceding to almost all your suggestions. I understand that the market is quiet.

By the way, did you manage to get any feedback from the Malaysian lady banker? I am prepared to rent out partially furnished at $2,600 per month to client who at least appear to take care of the apartment. But of course, given the choice, I would prefer higher rental, especially since my apartment is new and it is only new once.

By the way, I have diverted my h/p to my pager when my h/p is switched off.    My pager is a message pager with secretarial support, i.e., when you page you can choose to press "0" and a lady will answer the page. She will ask you for your message which will then appear on my pager. You can also choose to press "**" as with a normal pager. With diversion to pager, I can response to you earlier. Or you can contact me directly on my pager - .....

Thank for attention on my unit and hope to hear more news from you.

Regards

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