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Ref: 807153

1.     Location near the city and/or the subway ensures a steady rental income for new condos but the cost is usually prohibitive for the ordinary person. UE Square is around 10-minute walk to the Dhoby Ghaut subway and the new Clarke Quay subway will be ready in the next 2 years. It is in great demand for rentals. The complaint is that it looks more like an office block but an almost full occupancy as at July 15, 1998 since keys were given to the Owners around November 1997 testified to the fact that a good investment property should be well located and near an MRT (subway). The Raffles Place and Shenton Way expats are the main source of Tenants and you may see various nationalities there. Usually a younger group of Tenants, mostly Caucasians and many blondes, less than 40 years old, providing an extremely interesting tenant mix.

2.      In reply to questions asked in Article No. 807151

Reasons to buy the 4-bedroom unit are:

• Rarity of 4-bedroom condos in Singapore. Therefore, easier to get tenants.
• Caucasians especially Americans and Europeans love balconies. Usually they want bigger living space and 4 bedrooms and can afford to pay the $6,000 rental asked since they are usually in senior management level. A higher quality of tenant will be expected.
• 4-bedroom condos in downtown are rare and therefore demand exceeds supply. Easier to get tenants than the common 3-bedroom.
• During recession, easier to rent out as it becomes more affordable.
• Only 6 units with balconies and therefore tenants cannot be fussy.

Reasons not to buy the 4-bedroom unit are:

• Cost more. Rental returns much lower than 2-bedroom condo and you need to have sufficient financial resources to wait for the high net worth tenants.
• Depreciate more during property downturn.
• Low floor usually avoided by most tenants because of road noise and lack of security concerns.
• Difficulty in finding buyers. Unaffordable to most people.

Reasons not to buy the 2-bedroom unit are:

• The glass windows facing the Istana (Presidential Palace) becomes foggy when one goes near the window. Such windows cannot be opened fully or are fixed. Main reason is that somebody may shoot the President/Ministers and therefore a high technology glass window which becomes cloudy when you go near and becomes clear when you go away, has been installed. This leads to lower rental and dislike by most tenants. Floors higher than 10^th are believed to have such windows.
• Facing main road (River Valley Road). Higher floors are noisier as traffic noise travel upwards.
• Indian temple below. Noise from chants and during festivals. Some expatriates dislike living near Indians or Chinese temples. Some dislike Indians.
• Tennis court below. May be noisy at night.
• Also bright lights of the tennis court may brighten up room if Landlord has provided thin curtains as had happened, making sleep difficult for some Europeans and Australians.

Reasons not to buy the 3-bedroom unit are:

• Facing West. Hot and glaring afternoon sun. May need sun-blocking curtains if Landlord will provide and will pay higher air conditioner bills.
• Noisy towards midnight as drinkers from the pubs hang around road side and chat.
• Lack of privacy, being low floor and facing shophouses.
• Road is minor road, relatively quiet.
• Lack of security as it will be easier to break into lower floors.

Click here to read more comments in 4-bedroom layout plan in "Affordable homes for expats" Article No. 807141.

Rent as at July 15, 1998: UE Square Condos:
3+1, $5,000 partially furnished, 1556 sq. ft., high floor, facing Shell Tower.
Maisonette 4+1, $6,000 partially furnished, 2,000 sq. ft, high floor, 2-levels, facing pool.

Total: 345 units. Few units left. Many Japanese and Caucasian tenants.  As at January 4, 2000, rent is lower for most units.
Email judy@asiahomes.com or tel: +65 9668 6468 if you wish to rent UE Square or other apartments.

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