Archive for category: Misc

A new boutique bed and breakfast (B&B) property called Metro City Osaka has recently launched in Singapore. Developed, managed, and operated by Japanese company TY Properties Development, the property consists of 60 units and was officially unveiled on July 12 and 13.

According to Savills Singapore, the project’s marketing agency, over 30 units allocated for Singapore buyers were already taken up by 3pm on Sunday, July 13. Metro City Osaka is situated in Naniwa Ward, the heart of Osaka, and is a nine-storey building with 59 B&B-style residential units and one retail shop. It is conveniently located just a two-minute walk from JR Imamiya Station, seven minutes from Daikokucho Station, and one stop from JR Namba. The property is also in close proximity to popular tourist attractions such as Shinsaibashi, Kuromon Market, American Village, and several large department stores. Other amenities such as supermarkets and convenience stores are also within easy reach.

The residential units at Metro City Osaka include studio apartments ranging from 15 to 21 sq m (161.5 to 226 sq ft), as well as two-bedroom units of around 32 sq m (344 sq ft). The property has been refurbished by TY Properties and is being offered as a turnkey investment.

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Before launching in Singapore, Savills also showcased the project in Kuala Lumpur on April 26 and 27, and it was previously launched in Hong Kong by TY Properties.

The studio apartments at Metro City Osaka range from 161.5 to 226 sq ft and have a price range of $130,000 to $150,000 (Artist’s impressions: TY Properties Development). The majority of buyers at the Singapore launch were Singaporeans, making up 60% of buyers. Hong Kong buyers accounted for 37%, and Malaysians made up the remaining 3%. Even the sole retail unit was purchased by a Singaporean investor.

The residential units were sold fully furnished at prices between $130,000 to $150,000, which equates to approximately $700 psf. Currently, the property maintains an occupancy rate of around 70% to 80%. According to Ruben Koh, senior director and head of international residential sales at Savills Singapore, investors can expect net yields of around 8% to 12%, with payouts available on a quarterly, half-yearly, or annual basis.

Koh adds that the interest in Metro City Osaka was driven by the city’s bustling tourism economy, the ongoing World Expo 2025, and the unique appeal of a fully managed B&B model. Many buyers saw this as a timely and low-risk way to enter Japan’s hospitality market.

The two-bedroom units at Metro City Osaka are approximately 344 sq ft (Artist’s impressions: TY Properties Development). The World Expo 2025, which is currently underway in Osaka from April 13 to October 13, is expected to bring in an estimated 28 million visitors from over 160 countries. In 2024, Osaka welcomed nearly 14.6 million visitors, and the government is targeting over 16 million arrivals in 2025.

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Koh believes that the demand for short-stay accommodations is at an all-time high. According to Savills Research, Osaka’s central wards have experienced strong rental growth with a compound annual growth rate (CAGR) of 2.6% since 2019, along with an increase in condominium prices, limited supply, and growing foreign demand. These factors are further supported by long-term infrastructure projects, including the World Expo and the upcoming integrated resort development. All of these factors make Metro City Osaka an attractive fully managed, investment-grade B&B asset in a prime tourist hub, according to Savills.

In Other News:

– Wealthy Chinese investors are turning away from US real estate as the trade war between Beijing and Washington continues.
– Manulife US REIT is set to generate net proceeds of US$118.8 million from the sale of their Atlanta property.

As URA continues to shape the future of Singapore through strategic planning, it is clear that these developments will have a significant impact on property values in the long run. With a focus on growth nodes and key regions, properties within these areas tend to experience higher appreciation in value and increased demand for rentals. Miltonia Close EC, ideally located near transportation upgrades, major employment hubs, green spaces, and community amenities, is poised to benefit from this trend. For those interested in investing in a property with promising potential, Miltonia EC should be considered.