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SINGAPORE: WAIT-AND-SEE APPROACH
Most will find Singapore hard to beat because of its regional location. And, easily, the most talked-about luxury development in the affluent stronghold of District 10 is Goodwood Residence. Located just minutes from Newton MRT Station on Bukit Timah Road, it is a short walk away from the shopping district of Orchard Road. This is the latest property by award-winning GuocoLand – a listed company that boasts over 30 residential projects, not to mention integrated developments in China and Malaysia.

The 2.5ha property incorporates green features with a sleek, modern vibe. Your private lift takes you to your own lobby, while its 210 units, which span two-bedroom variants to penthouses, come with dual-frontage and impeccable décor. A real estate agent proudly trumpets it as “the most beautiful condominium in town” and that “prices for a four-bedroom unit starts from SGD6million”.

Up the road is Sing Holdings’ Robin Residences, which boasts designer fittings from De Dietrich, Hansgrohe and Duravit. Top-tier educational institutions such as Hwa Chong Institution and St Joseph’s Institution are all nearby. And yet, unlike architect renderings, not all is picture perfect in the Lion City.

“Historically, Singapore has been popular with Malaysian investors because of its proximity, familiarity and land scarcity,” says Knight Frank Malaysia’s Senior Manager of International Project Marketing, Dominic Heaton. “However, it has been two years of dwelling in the doldrums for Singapore’s private residential market. In contrast, record-low interest rates and increased foreign investment have propelled demand tremendously from 2009 to 2011. Property sales in the core central region have been battered by a slew of cooling measures. The most notable is the imposition of a 15 per cent additional buyer’s stamp duty on top of the existing three per cent stamp duty.

“Nevertheless, there still exists a pool of prospective buyers waiting on the sidelines. The lower property prices now present great value with reasonably stable rental income,” he elaborates. “Moving forwards, luxury property remains a good asset class because of their location, prestige and potential capital value upside. Investors could return to the high-end home market here as early as the second half of 2015 when prices have fallen to ‘acceptable levels’. Potential adjustments to cooling measures could be on the cards in a bid to restore demand levels.”

Judging from similar sentiments echoed by the Asia Pacific Property Digest, the weak demand is attributed to seasonality and the aforementioned cooling measures by the government. Oversupply is pushing rental income lower as capital values in prime areas continue to soften, suggesting that the trend has yet to bottom out.

There are less expensive options further out on the fringes of the island state, but they often carry a slim chance of yielding high rental profits and there are instances of landlords getting their apartments back in deteriorated conditions after tenancy. It is also worth noting that non-Singaporean residents are also generally unable to buy landed properties unless specifically allowed to do so.  Still, demand is sustainable for competitively priced projects.

AUSTRALIA: CHOOSING BETWEEN MELBOURNE AND SYDNEY
Both are established hubs of commerce, with flourishing urban developments, and vibrant local retail scenes. While buying low and selling high is the ideal scenario, at the current moment most will have to settle for buying high and selling higher as a viable option, taking into account investment potential versus the supply situation in view of the stable and transparent economy.

“As a result of concerns about the weakening ringgit, high net-worth Malaysians will hedge to maintain their wealth by investing overseas,” says Dominic Heaton of Knight Frank Malaysia. “The current economic climate will further see Malaysian capital moving towards property safe havens. In particular, those seeking out the best education abroad for their children will turn to London and Melbourne. This is evident with properties in both cities remaining as popular as ever, while we’ve seen a significant drop in the number of transactions for Singapore.”

In addition to assessing one’s financial situation and intention for buying a property in Australia, it is worth noting that government policy dictates that foreign investors can only buy off-the-plan properties (not existing ones) and that they must re-sell to an Australian or permanent resident. “They cannot re-sell the property to a foreign buyer,” says Heaton.

Boasting a buffet spread of choices in prime locations, Lend Lease’s Darling Square is the epitome of intimate living spaces in the heart of Sydney. Apartments in the first phase are already sold out, while registration for the second batch of apartments and ‘skyhomes’ are now available. They come with a huge residents’ deck replete with barbeque facilities, a heated swimming pool, an outdoor gymnasium and a private pavilion to shelter one away from the hustle-and-bustle of the city.

The deal-clincher may be the stunning harbour view and convenient access to Little Hay Street and Dickson Lane, including The Boulevard that looks to assimilate retail constituents amid the trendy abodes of well-heeled nest-seekers. “Sydney continues to drive apartment price growth (a rise of 12.9 per cent in 2014) across the country,” explains Heaton. “Weekly rents also rose by 3.9 per cent to AUD540 per week. The Sydney market outlook remains positive, with a 10 per cent growth rate predicted for this year.”

On the other hand, if an extended stay is on the cards in Melbourne, check out Royal Como.  Located along Chapel Street, the property offers elegant one- to three-bedroom apartments with an impressive curved exterior of reflective glass that is inspired by the ripples of the Yarra River. Charlize Theron might also be able to entice you to pay above-the-asking price for a penthouse in the nearby Capitol Grand. Truly, the ‘Lead Me into Temptation’ tagline for the AUD500 million development headlined by the Hollywood actress is arguably the most exclusive project in Melbourne.

Located at the crossroads of Toorak Road and Chapel Street, the property boasts three levels of well-appointed luxury retail space and the flanking LK Tower houses lavish residences. Residents can expect a sheltered porte cochere upon arrival and a concierge to usher them to the inviting fire place during unpredictable Melbourne winters. One can also expect expansive floor-to-ceiling windows, which will feature uninterrupted vistas of Albert Park Lake, Port Philip Bay and the Dandenong mountain ranges.

“The metropolitan area of Melbourne will continue to remain resilient,” explains Heaton.  “Annual capital growth was recorded at 4.7 per cent for 2014. Rents increased by 3.9 per cent to an average of AUD400 per week and gross rental yields (as at December 2014) averaged 4.42 per cent across the metropolitan area, which is higher than the 10-year average of 4.39 per cent. Melbourne is set to continue to be the second-best performer across Australia (after Sydney) with sustainable capital growth.”

Jazmine Goh appears to agree with Heaton’s assessment. She is the head of international residential property services for JLL (Jones Lang LaSalle) Malaysia, an international firm that provides various real estate services, forecasts and research. Her division provides consulting services to developers on marketing and sales strategies in Malaysia and other parts of Asia. “Projects with impressive views, creative development features and a vibrant neighbourhood are usually good bets,” she says. “However, there is some concern on the upcoming supply situation in the central business district. The Australian banks are taking a more conservative stance and slashing their lending margins.”

Goh says that although most individuals with means are looking for property in the city, she thinks that venturing a little further out is also a smart idea. If you don’t mind being some distant away from the city and the confines of an apartment are not your idea of premium living, then a home in a closed-knit community such as The Haig might just be up your alley. La Trobe University is close by for retirees with children furthering their education.

“Suburbs with good schools in Melbourne will continue to fare well,” she adds, citing upcoming townhouses in growth suburbs such as Keilor East, Heidelberg, and Williamstown that are priced from AUD598,000 onwards. “There is healthy growth potential in all three as they have good amenities and are located less than 15km from the city. In Sydney, landed properties in prime satellite towns may be out of reach for many overseas investors and apartments have proven to be a relatively healthy choice instead.”

LONDON: TUG OF WAR BETWEEN BUYERS AND SELLERS
In a report published by international property consulting firm Cluttons, the long drawn-out economic recovery is decelerating even as unemployment rate is at its lowest since 2008. With both demand and supply establishing a market impasse, locals are patiently biding their time and waiting for prices to realign.

The firm’s projections of five to six per cent in annualised growth is a conservative stance, with prices expected to rise by 10 per cent in prime Central London – Islington and City Fringe will continue to fare well, with Southbank and Hyde Park likely second runner-ups. “The main theme last year was price growth rippling out from London into the surrounding regions,” says Heaton. “This growth story was underpinned by the improving job market coupled with continued low mortgage rates.”

However, the picture has shifted somewhat with all regions seeing reduced rates of growth this year. “The drivers for this weakening appear to be two-fold,” he explains. “Firstly, affordability constraints mean that it is difficult for buyers to keep pushing prices up without sustained higher earnings. Secondly, the Bank of England is looking to create a more stable lending environment, with tougher criteria being placed on mortgage applicants. In spite of this, property will remain a top investment asset class in London given its tangible nature.”

If one possesses the funds (or a favourable leverage position), by all means acquire an apartment in The Nova Building at Buckingham Palace Road. Its 170 units of the highest specifications combine airy living spaces and a roof garden with a view of Buckingham Palace, while the Houses of Parliament, Westminster Abbey and Victoria Station are all within walking distance. “Looking ahead, the market should remain supported by above-inflation wage growth and the new stamp duty, which has resulted in many buyers paying a reduced tax rate,” he adds. The telecommunications, media and technology industries are also giving the sector a boost with a rising number of Facebook and Google employees in London looking to buy homes in the vicinity.

There’s also the Royal Mint Gardens that comprises studio to three-bedroom units on Royal Mint Street, each progressively more lavish with the London skyline as a rewarding vista. Apart from the luxury of privacy, one can easily take a stroll to The Tower Bridge, St Katharine Docks and the Tower of London. “It is relatively more expensive to acquire a landed property in central areas of London, so the apartment scenario is a much more realistic approach to take,” says Goh.

“There is also a shift in interest from the traditional core markets due to supply and affordability factors,” she adds. “Areas with good infrastructure – such as those adjacent to the Crossrail stations (which are due to open in 2019) – will be the biggest winners in the next few years. Overall, there’s still a healthy demand due to strong underlying fundamentals, which will continue to support the market.”