Issue 206

Copyright 2011-2014 www.Propwise.sg. All Rights Reserved.

CONTENTS
p2

FROM THE

EDITOR

3 Tips to Prepare For the Coming Property

Market Winter

Welcome to the 206th edition of the

Singapore Property Weekly.
Hope you like it!

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Singapore Property News This Week

p13

Resale Property Transactions

Mr. Propwise

(April 15 April 21 )

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SINGAPORE PROPERTY WEEKLY Issue 206

3 Tips to Prepare For the Coming Property Market Winter

By Gerald Tay (guest contributor)
In a slowing property market, some experts
have shared why they think it is a good time
for investors to take action to invest in
Singapore properties right now.
The current property market is in hibernation
largely due to the Total Debt Servicing Ratio
(TDSR), but prices are not falling steeply due
to fear. In addition, other cooling measures,
still high property prices, falling rents and the
increasing supply and the investment
numbers dont make sense.

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SINGAPORE PROPERTY WEEKLY Issue 206

Guru argument #1: Downtrend does not
last forever buy now in preparation for
the recovery.
A lacklustre market is indeed the best time to
get into the property game. But is the current
market lacklustre enough?
A lacklustre market comes after a depressed
market when you see blood on the streets:

High levels of personal and corporate

bankruptcies

High repossession rates

Negative equity

High defaults on unsecured lending and

lenders suffer

Equity markets plunging

Highly leveraged borrowers being forced

to sell

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This happens during a major financial crisis

similar to the likes of the Global Financial
Crisis and Asian Financial Crisis. The years
between 2003 and 2005 had a lacklustre
property market hit by a series of unfortunate
world events after the Asian Financial Crisis
this was the best period to buy.
What we are seeing today does not warrant a
strong buy rating in my opinion. Equity
markets are still robust, interest rates are low
but rising and we are still seeing plenty of
expensive cars are on the roads.
The property market has indeed been on the
upward trend over the last 40 years. But
many investors suffer from short-term
memory loss.
The majority of the market gains were made
primarily during the rapid industrialisation
years of early Singapore from 1976 to 1996.
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SINGAPORE PROPERTY WEEKLY Issue 206

Thereafter, buyers who bought at the wrong
time could be sitting on negative real returns
after inflation.
Guru argument #2: The best time to
bargain hunt is during a quiet market
Lets look at the property market since end
2009
using
the
analogy
of
a
clock.

9pm 12am: Spring (Warm, 2009)

12am 3pm: Summer (Hot, 2010 to 2012)
3pm 6pm: Autumn (Cooling, 2013 to 2014)
6pm 9pm: Winter (Cold, 2015 - ?)
Winter is coming
Due to the severe property cooling measures,
strict lending restrictions and a market standoff between buyers and sellers, we are likely
at the beginning of a possibly long winter, say
Back to Contents

6.02pm now. Sellers have holding power and

Buyers are staying away.
There is no money to be made here. If you
own a property in a winter market and cannot
get out with a gain then you may experience
the following:
1. Having a property that is in negative
equity.

2. Having a property that is costing you

every month to own it.
I kind of hate to be the voice of doom, but I
think people have actually forgotten that
property prices have gone down that much in
the past. Theres this feeling that they just
wont fall dramatically, but, of course, thats
not true.
Property prices have only fallen 5% since last
year. This is only a small drop.
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SINGAPORE PROPERTY WEEKLY Issue 206

Dont expect cooling measures to be removed
anytime soon by the government.

Guru argument #3: Invest in alternative

property sectors such as offices

The best time to bargain hunt when the clock

hand is between 9pm to 12pm not right
now. Historically, this is the period where
cooling measures may be removed to prop up
the market and economy.

To enter into an unfamiliar investment

because there is no Additional Buyers Stamp
Duty (ABSD) and Sellers Stamp Duty (SSD)
is the same as telling Tiger Woods to switch
from playing professional golf to playing
football because its more lucrative.

When the market is hot or rising, developers

may hold on to some units to sell them at a
higher price later. But when the market is
cold, this strategy is going to backfire. Many
developers are currently under pressure to
sell off unsold units to avoid paying hefty
government fines.
Nevertheless, when one buys off-the-plan
properties only to make short-term profits, its
more of speculation and dumb-luck than
intelligent investing.

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Buying wine or art is not the same as buying

real estate. Buying real estate is not the same
as buying stocks and shares. Buying a
residential property is not the same as buying
a commercial property.
Buying into an alternative property segment
simply because prices are rising is irrational.
If you focus on the prospective price change
of a property, you are speculating.

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SINGAPORE PROPERTY WEEKLY Issue 206

For novice investors, get started first with a
mass market residential property. Its easier
to understand, purchase and manage than
other types of property. If youre a
homeowner, youve already got experience
here. Start close to home, so you can stay on
top of things.

2. Increase your income and save more of

what you earn

Conclusion

I can already hear you how do I increase

my income? Well this depends on you. You
need to be assertive, hardworking and just
that little bit cleverer than the rest! Work extra
hours, ask for a pay raise, increase
profitability, take on another job, etc.

I offer you my alternative 3 tips for investors

to capitalise on a property market in the
winter phase:
1. Liquidate any unproductive assets you
have

Sell or trade the car, jewellery, collections,

and other expensive items to raise cash for
future down payments.

Back to Contents

There are really only two ways of saving

money:
a. Going without i.e not spending
b. Cutting costs i.e spending less

3. Avoid the property market currently and

start educating yourself on real estate
If youre about to make the biggest purchase
of your lives, you need to understand the

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SINGAPORE PROPERTY WEEKLY Issue 206

basic concepts of real estate. Its not easy but
if you are patient and hardworking enough,
great opportunities lie ahead for you to
capitalise on them.
Relying on industry expert opinions is never
going to get you anywhere in your pursuit of
wealth.
By guest contributor Gerald Tay, who is the
founder and coach at CREI Academy Group
Pte Ltd, an organization dedicated to
empowering retail property investors with
smarter investing philosophy and strategies.
He is a full-time investor with over 13 years of
solid experience in building his wealth
through Property Investment and is financially
wealthy today.

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SINGAPORE PROPERTY WEEKLY Issue 206

Singapore Property This Week

Residential
5,000 ECs to be launched this year
According to the Business Times, about 5,000
executive condominium (EC) units will be
launched this year. Market experts believe
that this surge in supply may increase the
number of unsold inventory. According to
market experts, developers may not be able
to lower the prices of the upcoming EC units
as the EC sites were bought at high prices.
Data from the Urban Redevelopment
Authority showed that the vacancy rate of
available and completed EC units have
increased to 15.1 percent in Q1 this year,
from 11.5 percent in Q4 last year. Nicholas

Back to Contents

Mak from SLP International said that the

mortgage servicing ratio restriction and strong
competition from the HDB market may have
negatively affected the demand for EC units.
Market experts believe that it will take two to
three years for the market to absorb the
estimated 7,100 units from the unsold
inventory and upcoming launches.
(Source: Business Times)
Executive flat at Bishan sold for $1.05m

An executive flat at Bishan has been sold for

$1.05 million. The executive maisonette,
which is 149 sqm large, was built in 1987. It
occupies the 22nd to the 24th storey and has
71 years left on its 99-year lease.

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SINGAPORE PROPERTY WEEKLY Issue 206

Last year, a maisonette that was located in
Bishan also sold for a high price of
$1,088,888. According to the Business Times,
while HDB units within Bishan are known to
fetch high prices, they face strong competition
from the Pinnacle @ Duxton. This year, all
five-room flats at the Pinnacle @ Duxton
have been sold for more than $900,000.
While the resale price index for HDB flats has
fallen according to SRX, the price of larger
executive flats have increase by 1 percent in
Q1 this year from the previous quarter. The
Business Times added that the location of the
executive flats could be a deciding factor for
its resale price. For example, an executive flat
in Bedok that was 143 sqm, was sold for
$570,000. This is significantly lower than the
executive flat that was sold in Bishan, despite
the similarities in unit sizes.

(Source: Business Times)

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March resale condo prices increase by

0.2%
The National University of Singapore index
showed that prices of completed non-landed
private homes increased by 0.2 percent in
March from February this year. According to
market experts, February is typically a lull
period as developers tend to cut back sales
due to the festivities. Ong Kah Sengfrom
RST Research added that the price increase
in March was subtle. Nicholas Mak from SLP
International said that the overall decline in
prices in the price index has been slowing.
However, Mak believes that there is still a
need to monitor price changes in the coming
months, in order to conclude that prices have
stabilised. Based on the NUS resale price
index, the sub-index for the central region has
increased by 0.1 percent in March from
February.
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SINGAPORE PROPERTY WEEKLY Issue 206

Ong believes that this increase in resale
prices for prime homes was an anomaly.
According to the Business Times, the
implementation of loan limits has resulted in a
surge in demand for smaller non-landed
private homes. This could have resulted in
the 0.3 percent increase in the resale price
sub-index for the non-central region, said the
Business Times.

(Source: Business Times)

Two land parcelsup for tender
Under the Confirmed List of Government
Land Sales Programme for H1 this year, two
land parcels will be released for tender. Of the
two sites, market experts believe that the site
located at Toa Payoh will attract more interest
than the other site at Dundee Road. Both
sites have a 99-year lease and will yield
about 1,180 residential units in total. Ong
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Teck Hui from JLL believes that the limited

supply of residential land parcels may create
an upwards pressure on the demand for such
sites. Therefore, market experts believe that
there will be an increase in the number of
bids for each residential site. However,
market experts added that the bid prices may
not increase significantly as developers
anticipate a shrinking market. Nicholas Mak
from SLP International predicts that the Toa
Payoh site will draw up to 25 bids and he
believes that the winning bid will be around
$680 to $725 psfprr. Mak believes that the
prime location of the site will be a key selling
point. Other experts predict that the land
parcel at Dundee Road will attract up to 10
bids and the winning bid will be around $700
to $851 psfppr.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 206

Tampines land parcel won for $227.8m
A 99-year private residential site at Tampines
attracted 12 bids. Despite its mediocre
location, the site attracted bids as high as
$227.8 million, or $485.29 psfppr. The land
parcel is located near large industrial
Business 2-zoned areas. According to the
Business Times, this reflects developers
strong demand for residential sites. The high
demand could be caused by a lack of supply,
said market experts. The Tampines land
parcel, which was won by MCC Land, will be
developed into a 500 unit condominium
project. According to market experts, the
break-even cost for the Tampines site would
be between $920 to $950 psf.
(Source: Business Times)

GCB at Binjai withdrawn from auction due

to lack of bids
A Good Class Bungalow located at Binjai
Rise was not well received at an auction held
by Colliers International. The bungalow was
priced at $19.5 million and comprises of
about 17,035 sqft of land. While there were
no bids for the bungalow, it is believed that
potential buyers will be negotiating the sale of
the bungalow privately with Colliers. The
bungalow
has
been
approved
for
redevelopment up to 13,378 sqft gross floor
area. It is located near the Pan Island
Expressway and is partially renovated. To
complete the renovations, market experts
believe that it would cost another $1 to $2
million.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 206

Commercial
Shophouse at JooChiat sold for $16.8m
Located at JooChiat Road, a freehold
shophouse block has been sold for $16.8
million, or $1,357 psf. The shophouse block
has a lettable area of 12,382 sqft and has
been zoned for commercial use. This
shophouse block was previously made up of
5 separate units. Currently, it has a gross
floor area of 15,800 sqft and is partially
leased. According to the Business Times, only
the front part of the building has to be
conserved. That section of the building
comprises of two storeys and an attic. The
rear of the building, which is four storeys high,
may be redeveloped.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 206

Non-Landed Residential Resale Property Transactions for the Week of Apr 15 Apr 21
Postal
District
2
2
4
5
5
5
5
9
9
10
10
10
10
11
12
12
14
14
15
15
15
15
15
15
15

Project Name
76 SHENTON
THE ARRIS
CARIBBEAN AT KEPPEL BAY
THE VISION
HUNDRED TREES
THE VISION
DOVER PARKVIEW
URBAN RESORT CONDOMINIUM
THE PIER AT ROBERTSON
D'LEEDON
VENTUNO BALMORAL
D' DALVEY
SOMMERVILLE PARK
PARK INFINIA AT WEE NAM
PRESTIGE HEIGHTS
PINNACLE 16
COSMO
EUNOSVILLE
THE ESTA
THE WATERSIDE
BUTTERWORTH 8
SANTA FE MANSIONS
KING'S MANSION
COSTA RHU
FERNWOOD TOWERS

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Area
(sqft)
592
980
1,270
1,302
915
1,313
969
4,941
1,044
635
1,313
1,711
2,325
1,464
344
592
710
1,733
1,561
2,142
1,313
1,076
1,808
1,776
1,636

Transacted
Price ($)
1,150,000
1,700,000
1,790,000
1,700,000
1,150,000
1,641,250
1,000,000
11,680,000
1,950,000
1,080,000
1,990,000
2,280,000
2,938,000
2,630,000
580,000
890,000
970,000
1,150,000
2,232,230
2,910,000
1,580,000
1,285,000
2,118,000
2,050,000
1,725,000

Price
Tenure
($ psf)
1,943
99
1,736
FH
1,409
99
1,305
99
1,257 956
1,250
99
1,032
99
2,364
FH
1,868
FH
1,701
99
1,515
FH
1,332
FH
1,264
FH
1,797
FH
1,684
FH
1,503
FH
1,365
FH
664
102
1,430
FH
1,359
FH
1,203
FH
1,194
FH
1,171
FH
1,154
99
1,054
FH

Postal
District
15
16
16
17
19
19
20
21
21
22
22
22
23
23
23
23
28
28

Project Name
THE VESTA
COSTA DEL SOL
BAYWATER
BALLOTA PARK CONDOMINIUM
KOVAN MELODY
SUNGLADE
RAFFLESIA CONDOMINIUM
THE RAINTREE
PARC PALAIS
THE LAKESHORE
CASPIAN
THE CENTRIS
FORESQUE RESIDENCES
GLENDALE PARK
HILLVIEW REGENCY
PARKVIEW APARTMENTS
H2O RESIDENCES
SUNRISE GARDENS

Area
(sqft)
1,582
1,313
1,410
1,399
904
1,152
1,195
1,270
1,582
1,109
1,399
1,259
1,518
1,206
1,130
1,163
1,389
1,281

Transacted
Price ($)
1,438,000
1,570,000
1,115,000
860,000
1,030,000
1,220,000
1,225,000
1,200,000
1,465,000
1,200,000
1,470,000
1,313,000
1,620,000
1,200,000
975,000
805,000
1,500,000
940,000

Price
Tenure
($ psf)
909
FH
1,196
99
791
99
615
FH
1,139
99
1,059
99
1,025
99
945
99
926
FH
1,082
99
1,051
99
1,043
99
1,067
99
995
FH
863
99
692
99
1,080
99
734
99

NOTE: This data only covers non-landed residential resale property

transactions with caveats lodged with the Singapore Land Authority.
Typically, caveats are lodged at least 2-3 weeks after a purchaser
signs an OTP, hence the lagged nature of the data.

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