When I was shadowing my ex-boss as she made decisions on property investments, I slowly picked up some knowledge in uncovering the factors why a certain property was selected and why some do not.
One of those key factors was basically being able to ascertain who will be the potential tenants in the future. If it was a commercial property, a tenant mix was key – we won’t have bakeries side by side or similar verticals within the same area.
For residential properties, it would be a slightly different process. But similarly – the potential tenants would already have been identified way beforehand.
The Tenant Mix of Private Condos
As I service the rental market for private condos in Singapore, I have been able to identify the type of tenants who will be actively seeking a private condo unit to stay in.
The vast majority of these tenants are:
- working for a global MNC
- usually given some allowance for housing
- usually have a spouse and children – so they need a bigger space
- their children attend international schools so they prefer homes that are in the vicinity of such schools
- come from various backgrounds: Americans, Europeans, Korean, Japanese, Indians
- are on short contract positions of 1-2 years
- prefer to be staying in areas that are close to their offices for convenience
Not all have an expat package. Some might even share a unit with other tenants from similar backgrounds.
The common factor of all these tenants? They are employees and make up the headcount of some major global corporations.
Interested to get tenants easily for your investment residential property?
Make sure your property is located nearby major business and commercial buildings – the likely Singapore headquarters of these companies.
Properties near the CBD are NOT your only choice
We tend to think the Central Business District as a major commercial area. But the truth is the URA is developing more commercial locations in other parts of Singapore.
URA is currently developing a new waterfront location when they move the Pasir Panjang Terminal to Tuas.
Right now, the Mapletree Business City already has pulled in large MNCs to park their Singapore offices there.
A Potential Huge Tenant Source
Mapletree Business City has more than 10,000 people working in the offices there.
In addition to that, the place is highly accessible with the West Coast Viaduct that will bring you to MCE and to the old CBD area.
It takes less than 10 minutes to get to the CBD area.
It is very near when compared to Changi Business Park and International Business Park in Jurong.
Personally, I know of the strong demand for rental homes from the expat community working in this area. I have met Korean expats who are renting a condo near this potentially second CBD.
Some of the tenants at Mapletree Business City includes:
- Samsung Asia
- SAP Asia
There are various international schools located nearby – including the International School Singapore (ISS) High School.
Strong Rental Demand Even At Further Locations
Below are the recent rental rates of Skyline Residences – located at 1 MRT station down at Telok Blangah MRT.
Further up near Haw Par Villa MRT, there is another development that is also an indicator of the strong rental demand.
Below are the most recent rental transactions at The Peak @ Balmeg.
The frequency and size of the monthly rentals indicate there is robust demand.
My Thoughts on Greater Southern Waterfront
I believe there is an opportunity there for condo developments in these locations to appreciate higher as the Greater Southern Waterfront slowly gets developed.
I am reminded of another URA Masterplan – the Jurong Lake District. In that area, it houses the International Business Park.
One of the condo developments there – J Gateway – has seen strong demand and high appreciation in its resale value.
J Gateway – which was launched in 2013 has been recently transacting at $19XX PSF in 2018.
Potential Opportunity in an Upcoming New Launch
There is an upcoming new condo launch that is nearby this area – that can potentially feed the rental demand from people working at Mapletree Business City.
The launch price is at $17XX PSF – giving the opportunity for owners to gain if the property appreciates to $19XX PSF in the future – as the Greater Southern Waterfront becomes more developed.
As an investment, there is opportunity to gain passive income from renting out your unit to expats working at this currently-being developed future waterfront city.
Keen to know more? I invite you to contact me to arrange a discussion to check your financial suitability.
I recommend this place as future investment where you can park your CPF monies to reap better returns.
It is possible that you can invest into this property – without touching your cash savings.
Curious to find out more? I invite you to contact me for a 9-min Phone Assessment.