More Singapore companies are turning to student accommodation
As the area of One Pearl Bank lies close to Eu Tong Seng, Chinatown and Outram, Capitaland has developed different layouts to cater to requirements for the new development. One Pearl Bank will have a total of 18 sky allocation gardens with near 200 plots where homeowners can grow their own herbs, vegetables and fruits, CapitaLand said. One Pearl Bank sits on a prime piece of land that lies simply minutes far from the Central Enterprise zone along with Chinatown. The TALLEST Residential Atop Pearl’s Hill & Connected to the City Park. . Based on the market trends, although there has been a terrific pickup in the costs of locations like Punggol and Jurong, the lure of the Core Area is difficult to beat for home financiers looking for more bang for their financial investment dollar. The development of this Outram park MRT apartment is through the joint venture of architects and it is planned to have 774 apartment or condos. A freehold blended development situated at Prime District 02, Onze @Tanjong Pagar consists of 56 domestic units and 13 industrial shops unit. Singapore is categorized into three broad regions– Core Central Area (CCR), Rest of Central Area (RCR) and the Outside Central Region (RCR). In spite of the rising property rates previously this year (before the cooling procedures in July), the Singapore property rental market has actually not remained in good shape. Located atop Pearl’s Hill, the 178m tower will be the tallest residential development in the Outram-Chinatown district offering views extending from the Central Enterprise Zone to Sentosa. Situated right at the top of Pearl’s Hill, the 178-meter high One Pearl Bank condominium will be the tallest personal residential development within the Outram-Chinatown precinct – providing unparallel views from the CBD all the way to Sentosa.
More Singapore companies are turning to student accommodation due to the relative independence of the property sub-sector from factors that drive returns in other real estate types such as offices and malls, reported Nikkei Asian Review. Citing London-based Real Capital Analytics, the South China Morning Post earlier revealed that Singapore had emerged as the top foreign investor in US student housing from 2016 to 2018. Singapore Press Holdings was among the Singapore companies that have recently ventured in student accommodation after it acquired 14 purpose-built student accommodation properties in the UK for £180.5 million (S$320 million) in September. Far East Orchard also purchased three UK properties for £55 million (S$97.5 million) last week. Other prominent Singapore investors in student accommodation include Mapletree Investments and sovereign wealth fund GIC. Explaining the company’s interest in student accommodation, Far East Orchard Group CEO Lui Chong Chee said the UK purpose-built student housing sector has a track record of strong rental and occupancy growth that is unrelated to the overall economy.
He noted that universities in the UK usually partner with student housing operators by securing accommodation for new students and providing referrals – providing investors with a more predictable revenue stream as well as occupancy rates. While student accommodation properties offer higher returns than standard apartments, malls and offices, the risks have also grown. This comes as existing student accommodation are now being offered at a premium to standalone properties – mirroring the robust demand from large institutions looking to scale up quickly. Investors looking to enter the sector for the first time are possibly late in the game, and the risk of government intervention has to be considered also, said Kevin Gin, director of the fund manager Alpha Capital. Centurion Corp CEO Kong Chee Min said investors also have to understand individual markets as conditions could vary. The UK and US, for instance, are mature markets with existing student housing properties that can be acquired, while new entrants to the Australian market will need to develop and manage properties of their own. The Singapore-based company entered the student housing market five years ago and currently owns properties in the UK, Australia, the US, South Korea and Singapore. Looking ahead, Priyaranjan Kumar, regional director of Cushman & Wakefield’s Asia Pacific capital markets group said investors will need to pay more attention to the design as well as management of properties for students in order to extract higher returns. “Like with hotels, you would like to be with a robust operator because you would like to fill the rooms,” he said.