Category: Investment

AMO Residence at Ang Mo Kio Avenue 1 by United Venture Development

The upcoming AMO Residence sits on a land 99-year lease and is anticipated to be developed with 370 luxury units. Urban Redevelopment Authority (URA) has granted a S$381.4 million or S$12,031 per square metre gross floor area tender to United Venture Development for private residential property at the location mentioned above.

Location of upcoming AMO Residence

United Venture Development is a joint venture between the UOL Group, the Singapore Land Group, and the Kheng Leong Company and was the top bidder in the tender. The land, which is 12,679.4 square metres and is located directly across from Bishan-Ang Mo Kio Park, was offered for sale with a 99-year lease. This is one of the better condominiums we’ve seen in years, and experts praised the land price.

AMO Residence is approximately 500 meters from the Thomson East Coast Line (TEL) Mayflower MRT Station. It aims to increase connectivity to the eastern half of Singapore while reducing commute time within the city. The project is also close to the AMK Hub shopping mall, the Ang Mo Kio MRT station and bus interchange.

Mayflower MRT is nearest to project

Mayflower MRT Station is part of the 2nd phase of the Thomson East Coast Line, which opened on 28 August 2021. The 2nd phase of the TEL line currently connects Caldecott MRT to Woodlands North MRT. When phase 3 opens tentatively in 2022, we can see the MRT line extending to Gardens by the Bay. With stage 3 of the line, future Ang Mo Kio Ave 1 condo residents can reach Orchard Road, Central Business District (CBD) and Marina Bay area with just a train ride. Thomson East Coast Line (TEL) trains will arrive at stations every five minutes during peak hours and nine minutes during off-peak hours.

When completed, the Thomson East Coast Line (TEL) will be 43 kilometres long and connects Woodlands North (TE1) to Sungei Bedok (TE31), passing Upper Thomson, Stevens, Orchard, Marina Bay, Tanjong Rhu and Marine Parade. TEL2 will be the name of the next six-station line, which will have two interchanges at the Caldecott Circle Line and Bright Hill, as well as a future island connection.

Suppose it is the final government-owned property in Ang Mo Kio in seven years. In that case, UOL Group expects great demand and wants to convert the site into a 24-to 25-story residential skyscraper with more than 370 residential units. According to the company, UOL plans to build a 24-to 25-story building with 370 residential units. Because this is the area’s first government-owned land auction in six years, the business anticipates strong interest in the project.

Recreational and educational amenities like Bishan Ang Mo Kio Park, Windsor Nature Park, Mayflower Secondary School, and Eunoia Junior College are located along the north and south corridors. The Ang Mo Kio Avenue 1 Condo is near Kebun Baru Landed Housing Estate and Shangri-La Park Landed Estate, both public housing estates.

Bishan Ang Mo Kio Park is just opposite of Ang Mo Kio Ave 1 condo

Mayflower Station, located on the Thomson East Coast Line (Level 2), will give future residents the best access to the Woodland Regional Center and the East Coast Central Business District. The forthcoming Mayflower MRT station, which will provide convenient access to the Cross Island Line and Bright Hill Interchange Station, is 400 meters away from the Ang Mo Kio Avenue 1 Condo. Residents may have to wait for another two to three years for a station.

At AMO Residence, about 370 new apartments are expected to be erected, luring new households to the region. Although there have been few new apartments erected in the neighbourhood in recent years, this project has piqued the curiosity of buyers, particularly HDB households in places such as Bishan looking to purchase a property. Another fantastic new private apartment development is located at 1 Ang Mo Kio Avenue, just minutes from the Thomson East Coast Line’s new Mayflower MRT Station.

This is one of the few developments that adhere to the most recent URA land and housing criteria. The business is well-known for its residential developments, including Principle Gardens, Ansley Avenue South Residences, Condo Hill Apartments, Eight Chuan Tudor, and Ten Eden. By the end of 2020, the government will have confirmed the sale of only two of these units on the GLS list.

It is 400 meters from the nearest MRT station on the Thomson East Coast Line (Mayflower), conveniently connecting the Cross Island Line and Bright Hill Interchange Stations. The Ang Mo Kio condominium is located on Avenue 1, 500 meters from the Ang Mo Kio MRT Station, which improves access to the city’s eastern sector and shortens commute times between the city and the state.

Covid-19 impact on Japan and Singapore’s property market

Despite the economic impact of the COVID-19 pandemic, the Japanese real estate market has remained stable. According to the Land Institute of Japan, the national house price index increased to 0.7 percent in inflation-adjusted terms in Q3 2020, up from 0.6 percent in 2019, 2.1 percent in 2018, and 2.4 percent in 2017.

While the legacy of the Great Recession continues to be felt globally, housing markets continue to suffer, and potential homeowners are feeling the pinch.

The Real Estate Economic Institute, a Tokyo think tank, said in July 2019 that the average guide price for a new apartment in Greater Tokyo was Y = 567.6 million.

According to a survey by the Global Property Guide, house prices in Japan increased by 0.8 percent year on year in 2020, a meager gain in comparison to other advanced nations, such as the United States, which increased by 10.3 percent.

As a result, while the housing market in Japan continues to rise marginally, real estate is transitioning from a deflationary to a growth asset.

Price in Japan increases

According to the Japan Real Estate Institute, urban housing prices nationwide increased by 0.4 percent in 2020, following a 0.6 percent increase in 2019.

The Greater Tokyo residential real estate market is predicted to maintain its current growth trajectory, with luxury apartment prices unlikely to dip in the near future.

Japan’s rising prices, openness to foreign investors, excellent architecture and homebuilding infrastructure, and increased resources for agencies acquiring akiya (abandoned, ultra-cheap homes) contribute to the country’s attractiveness to non-Japanese looking to invest in real estate, whether primary or secondary residences.

Influx of Buyers from nearby countries

China, Hong Kong, and Singapore provide a massive pool of investors interested in Tokyo’s luxury real estate market.

Chinese investors seeking to invest in Singapore real estate hit a record high in the second quarter of 2019, owing to China’s increased use of the Internet as a platform for overseas property acquisitions.

I believe this trend will continue through at least the first half of 2020. According to analysts, the increased number of Chinese purchasers in Singapore will have little effect on the local property market.

Yukihiko Ito, managing partner of Tokyo’s Asterisk Realty Placement Agency, anticipates that total Japanese real estate outflows will exceed US $10 billion (8.3 billion euros) in 2017, with 60-70 percent of the total coming from direct purchases and the remainder from investment in real estate funds.

Although less than a third of Japan’s large insurance companies have began investing in global real estate, ito predicts that by 2018, 70-80% of them would.

While real estate developers continue to target high-income expats and Asian investors, as well as wealthy Japanese, the vast supply surplus creates an opportunity for Japan’s sizable middle class.

Concern over Japan’s ageing population

Despite concerns about Tokyo’s ageing population and economic deflation forecasts, many local and international investors are attracted to Japan’s real estate investment potential.

Japan has been the world’s most productive real estate investor in numerous worldwide markets since the 1980’s, but Singapore and China have overshadowed it in recent years. Japanese foreign investment in real estate is primarily indirect, instead of the $91 billion in direct real estate investment between 2012 and 2016.

Good Government leads to Singapore property growth

While Singapore offers excellent real estate investment opportunities, a cursory examination of the Japanese real estate market, particularly the luxury real estate market.

Some of the most rewarding investments can be made, revealing that returns are less impressive due to the country’s higher cost. A significant factor contributing to this disparity is Singapore’s more comprehensive housing regulation, which includes many measures designed to deter foreign investors and affluent individuals from driving up prices.

Due to the boom and high house prices, the housing market is unable to generate a significant portion of tax revenue.

Although the impact of Shinzo Abe’s deflationary policies on the general economy is debatable, they have helped to firm up Japan’s property market in recent years.

Because homes are viewed as a sound investment and a means for households to store wealth as it grows, a severe decrease in property values is unknown.

High house prices also act as a vehicle for wealth transfer from young to old, poor to rich, and people who do not own homes to those who do.

Shorter Property cycle

Economic and credit cycles come and go, but if the government is serious about increasing housing affordability, developers must make it easier to sell homes.

Japan’s combination of pro-growth economic policies, openness to international investment, and growing prices in the luxury real estate market has created an optimistic environment, while Singapore has an unmatched upstart dynamic.

Suppose you need assistance navigating the premium or ultra-luxury real estate market or acquiring a listing. In that case, you can read more and contact US Housing Japan for local experience and advice.

The Bank of Japan’s policy of zero interest rates has made it more difficult for businesses to manage their assets, notably residential real estate. In December, the Government of Japan Pension Fund (GPIF) launched its first domestic real estate fund, the Mitsubishi UFJ Trust Fund of Mandate in Japan (M-u’mizuma UFJ Trust).

The Ministry of Land, Infrastructure, Transport, and Tourism has placed abandoned houses and flats on the market in an effort to minimize the total number of abandoned houses and apartments. In Taiwan, the tax system has positioned real estate investment as an efficient means of avoiding taxes and saving money, encouraging capital to flow into the real estate sector. To promote the housing market, the property tax rate was halved in 2001.

Should You Invest In Commercial Real Estate?

Residential property includes structures reserved for human habitation rather than commercial or industrial use. As the name implies, residential property can be used for commercial purposes, but apartment buildings that serve tenants as “apartments” are classified by the landlord as commercial activities. 

Note that planning and licensing boards break down industrial properties (properties used for manufacturing and production of goods and heavy commodities) and consider most of them a subset of commercial properties. In the typical case, the property is leased. An investor or group of investors owns the building and collects rent from the business operating there. 

In commercial real estate, lease terms usually vary depending on the type and quality of the property. For example, a purpose-built, state-of-the-art industrial manufacturing facility may enter into a triple-net lease with an initial term of up to 25 years. For logistics properties, the lease term can range from 3 to 10 years, depending on the location, property type and tenant. 

We are investing in real estate funds focused on commercial properties. We are acquiring commercial real estate as a real estate investor: acquiring commercial real estate by selling or leasing it to an operator. Participation in syndicated commercial real estate deals through crowdfunding platforms. We are acquiring undeveloped land for industrial development. 

When buying commercial real estate, think of buying traditional real estate on a larger scale. Buying commercial real estate opens up the possibility of tripling net rent. The rental business has risks that are not available to investors in residential real estate. When buying residential real estate, you don’t have to deal with emotional and personal attachment factors.

The income potential is what attracts many real estate investors to commercial real estate. Commercial real estate is known to have a higher rate of return than residential real estate. Acquiring commercial real estate can be a wise investment if you know what to expect. The profitability of buying commercial real estate can lead to solid professional relationships, flexible leases, and limited business hours. 

Commercial real estate is a high-risk, high-return real estate investment. Investors are likely to be high net worth individuals, and CRE investments require a significant amount of capital. The strength of the local economy can affect the value of a CRE purchase. Ideal properties are located in areas with low CRE supply and high demand due to low rental rates. 

Commercial real estate is a type of commercial property that can be bought and sold for business purposes. As a rough definition of commercial real estate, it is a place that is used as a warehouse, investment property, factory, logistics or administrative area. Unlike retail or office property, it is a commercial property that is used for industrial purposes. There are tremendous opportunities, versatility, and increased demand, and these are the reasons that make purchasing this type of property easier than residential property. Commercial real estate can be part of a bigger picture. 

The best thing about commercial real estate is that it is not limited to a single purpose. Commercial buildings are not just offices but also manufacturing and logistics buildings. You can rent them out in threes or just to one company and use multiple tenants. 

Owners need to invest much capital to make the property available to other tenants. Oversupply Risk: Given the expected future demand for warehouse space, real estate investors build too many properties as speculation. They are producing too many in a slow market, which affects occupancy and rental rates, which depresses property values. 

Residential tenants are more likely to make repairs to their property in a breakdown or accident. However, this is not the case with commercial property tenants. Occupants of commercial buildings have a strong sense of responsibility for the property. 

When setting lease terms, it is vital to consider the average rent in a commercial property submarket. If the current rent tenants are receiving higher than the prevailing market rate, your property may perform poorly and require active management to bring it back up to the market. Suppose your property is more expensive than the market rate. In that case, it may take longer to find tenants, resulting in significant rent losses and potential vacancies, and you run the risk of not getting a favourable result if you want to sell the property in the future. If you decided to invest in residential real estate properties instead, it is wise to consider investing in new condos. For a list of new launch properties, please visit

Depending on the nature of commercial property you are looking to purchase, it is crucial to understand the different building classifications and what they mean to you as an investor. Class C properties bring cheaper rents than Class A and B properties. Other types of commercial property such as industrial buildings, hotels, and retail.