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Issue 215

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

CONTENTS
p2

FROM THE

EDITOR

Dont Always Believe What You Read

Welcome to the 215th edition of the


Singapore Property Weekly.

in the News

Hope you like it!

p8

Singapore Property News This Week

p14

Resale Property Transactions

Mr. Propwise

(June 17 June 23 )

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SINGAPORE PROPERTY WEEKLY Issue 215

Dont Always Believe What You Read in the News


By Property Soul (guest contributor)
Did you notice when you flipped the
newspapers in 2012 and 2013, all the articles
on properties had headlines with keywords
likethe next hotspot, property boom
continues, robust sales in projects and
achieved record high?

Fast forward to 2014 and 2015 did you


notice that the same media had articles with
headlines
such
aslower
transaction
volumes, drop in property prices continues,
rental market continues to soften, more
bank sales and lowest in six years?

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SINGAPORE PROPERTY WEEKLY Issue 215


Have you asked why there were few articles
in 2012 and 2013 warning buyers to be
cautious of the overheated market?
Have you asked why there was almost an
absence of articles in 2014 and 2015
mentioning the pockets of opportunities in this
bleak property market?
Have you ever wondered why the media can
flip-flop on their opinion and outlook of the
market within such a short time?
Have you ever wondered why a project or a
district that used to be the medias favorite
can become a snub overnight?
A review of newspaper headlines on property
over the past three years can give you a
better idea on what is happening.

Iskandar properties: Once a cult, now a


doubt
1. Headlines with positive outlook
Iskandar condos now investors' darling (The
Straits Times, Jun 15, 2013)
Singaporeans snap up Danga Bay units
(TODAY, Aug 19, 2013)
Most foreign buyers of UEM's Iskandar
homes are S'poreans (The Straits Times, Sep
22, 2013) Iskandar property is hot commodity
for investors: Poll (The Straits Times, Oct 07,
2013)

2. Headlines with pessimistic view


Don't rush to buy into 'hot spots' (The Straits
Times, Mar 18, 2014)
Iskandar: Too many homes, too soon? (The
Straits Times, Jul 11, 2014)

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SINGAPORE PROPERTY WEEKLY Issue 215


Is Malaysia's Iskandar losing its shine as a
property hot spot? (The Business Times, Jun
26, 2014)

at $2.05m (The Straits Times, Dec 27, 2012)


Eyeing an EC? 'Golden period' to buy is here
(My Paper, Aug 18, 2014)

Oversupply by China developers sparks


uncertainty over Iskandars rental yield
(TODAY, September 30, 2014)

Jurong EC draws record number of


applications (The Straits Times, Oct 12, 2014)

Iskandar 'housing glut' may hit rents (The


Business Times, Oct 01, 2014)
Iskandar needs economic activity for housing
market to take off (TODAY, Oct 4, 2014)
Home prices in Johor slide in second quarter
(The Straits Times, Nov 4, 2014)
Housing glut worries over Johor's mega
projects (The Straits Times, Feb 23, 2015)
Executive Condominium: Good buy or
good-bye?
1. Headlines with positive outlook
Tampines EC 'presidential suite' to be priced
Back to Contents

2. Headlines with pessimistic view


EC upgraders may take big loan hit (My
Paper, Dec 11, 2013)
One in eight EC units left vacant in Q2 (The
Straits Times, Aug 18, 2014)
No one home as executive condominiums
wait for occupants (The Straits Times, Nov
17, 2014) Choices aplenty for EC buyers this
year (The Straits Times, Apr 18, 2015)
Commercial Property: Is it hot or not?
1. Headlines with positive outlook

Investors look into commercial property (The


Straits Times, Dec 25, 2011)
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SINGAPORE PROPERTY WEEKLY Issue 215


More switching to commercial property: banks
(The Business Times, Dec 14, 2011)
Strata commercial properties see record
sales (The Business Times, Jul 19, 2012)
2. Headlines with pessimistic view
Global economic uncertainty casts pall on
industrial property (The Business Times, Oct
10, 2013)
Occupancy rate of industrial properties falls to
lowest level since 2007 (The Straits Times,
Jul 24, 2014)
Prices, rentals of Singapore industrial space
continue to moderate in Q3 (The Straits
Times, Oct 23, 2014)
Shophouse deals continue to languish (The
Business Times, 14 Apr 2014)

Strata industrial units looking to fill the void


(The Straits Times, 9 May 2015)
Back to Contents

Shoebox units: When the hype fades


1. Headlines with positive outlook
The rise and rise of shoebox units (The
Straits Times, Sep 12, 2012)

Buyers with HDB addresses drive demand for


shoebox units: DTZ (The Business Times, 25
May 2012)
For many, the shoebox fits (TODAY, May 17,
2013)
Shoebox units lift resale home prices (The
Straits Times, Aug 31, 2013)
8,700 shoebox units for resale from now to
2017 (The Business Times, Oct 23, 2013)
2. Headlines with pessimistic view
Private home resale prices drop 0.4% in Feb,
dragged down by 'shoebox' units (The Straits
Times, Mar 28, 2014)
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SINGAPORE PROPERTY WEEKLY Issue 215


Suburban shoebox units: Bottom falling out of
sector? Experts say flood of new homes next
year likely to put pressure on rentals (The
Straits Times, Sep 2, 2014)
Shoebox units 'hit by weak leasing market'
(The Straits Times, Dec 1, 2014)
Rentals of shoebox units may fall 5%-10%:
Analysts (Channelnewsasia, Dec 27, 2014)
Gloomy outlook for shoebox units as their
numbers rise (The Straits Times, January 29,
2015) Measures to curb excessive shoebox
units yield mixed impact: study (Business
Times, February 2, 2015)
Lessons learned
1. Read with a pinch of salt
When developers are launching new projects,
they have to buy advertising time and space
from the media to get the desired publicity
Back to Contents

and attention. Wide media coverage is the


result of their efforts in advertising, public
relations and editorial contribution.
Nonetheless, the media has no loyalty to
anything or anyone they have reported
previously. When the tide reverses, or when
something gets out of favor, they can
immediately shift gear to cover the story in a
completely different angle.

2. Get first-hand information


The press is only capable of reporting what
has happened or what is happening. But they
are poor in predicting and are not in a position
to tell what is going to happen next.
As property buyers and investors, it is
important to step into the market to have a
feel of what is happening. It helps
tremendously if you are an active agent,
buyer, seller, landlord or tenant in the
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SINGAPORE PROPERTY WEEKLY Issue 215


marketplace.
Take the hints from your observations: Are
foreign investors losing interest in your
market? Do you see transaction volumes
increasing or decreasing at a slower pace?
Are owners taking longer or shorter to rent
and sell their properties in the market?

Savvy investors all think independently. They


know how to digest the news slowly and in
moderation. They understand that there is no
need to be too excited when the media says
something is hot. Similarly, it is not necessary
to be too pessimistic when the media says
the worse has yet to come.

3. Form your own judgment

Individual judgment is about the wisdom of


not believing everything you hear.

The job of the journalists is to look for news or


stories and report them. It is not their
obligation to do serious research, followed by
an in-depth analysis and a detailed report on
any subject.

By guest contributor Property Soul, a


successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.

Like what Jim Rogers said in A Gift To My


Children: The media often propagates
conventional wisdom. Judge the content of
stories in the media and turn their
inaccuracies to your advantage.

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SINGAPORE PROPERTY WEEKLY Issue 215

Singapore Property This Week


Residential
Q2 HDB resale prices fall by 0.4%
HDB resale prices have fallen in Q2 this year
by 0.4%, following a 1% drop in the previous
quarter. According to Chia Siew Chuin from
Colliers International, buyers may be
anticipating prices to fall even further, thus
they may not be willing to make purchases
now. Chia believes that property prices will
continue to fall as there are a large number of
unsold units in the recent projects. Not only
so, developers are pacing out their launches.
In Q2, non-landed private homes have fallen
in the core central region by 0.5%; this is
higher than the 0.4% fall that was recorded in
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the Q1. Prices of non-landed private homes in


the rest of central region also fell by 0.5%
while prices in the outside central region fell
by 1.2%. Despite the falling prices, market
experts are still uncertain if prices have
stabilised. For example, Eugene Lim from
ERA Realty believes that demand for BTO
flats will increase due to a potential increase
in income ceiling for new HDB flats.
(Source: Business Times)
GCB at Holland up for sale
A Good Class Bungalow that is located at
Holland Road is up for sale through
expression of interest.

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SINGAPORE PROPERTY WEEKLY Issue 215


The two-storey house was built in the 1950s
and is about 27,181 sq ft large. According to
Knight Frank Singapore, the guide price for
property along East Sussex Lane is
approximately about $1,200 psf on land area.
The vendors are open to offers, and the
expression of interest will close on July 30.
Knight Frank believes that the outlook for
good class bungalows will remain positive as
demand for them has been steady despite the
implementation of cooling measures.
(Source: Business Times)
More large non-landed homes up for
mortgagee sale in H1
In H1 this year, there has been an increase in
the number of large apartments that has been
put up for mortgagee sale. Large apartments
are defined as residential units that are larger
than 1,500 sq ft. Apartments of this size were
Back to Contents

popular during the market boom in 2007 and


2008. However, due to loan curbs and
affordability concerns, demand for such units
have been falling, said Grace Ng from
Colliers International. Both local and foreign
buying interest has fallen due to increasing
interest rates and also smaller housing
budgets among expatriates. Not only so, the
number of newly completed homes for rent
has been increasing. The weak rental market
has resulted in difficulties for owners to
service their mortgage loans; thus, resulting
in more non-landed homes being put for
mortgagee sales.

(Source: Business Times)


Non-landed private home prices fall by
0.6% in May from April
In May, the prices of completed non-landed
private homes have fallen by 0.6% from the
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SINGAPORE PROPERTY WEEKLY Issue 215


previous month according to the NUS
Singapore Residential Price Index (SRPI).
Shoebox units that are 506 sq ft or below
suffered the biggest blow with a 1.3% fall in
prices. Ong Kah Seng believes that the fall in
shoebox apartment prices is due to the
increase in supply of such apartments. Sales
have also been slow due to diminishing buyer
interest, said the Business Times.
(Source: Business Times)
Commercial

Transaction volumes in industrial units fell


by 35% year-on-year
According to caveat data by JTC, in the first
five months of 2015, the number of industrial
property transactions by Singaporeans fell by
35% year-on-year to just 55 transactions in
the first five months of this year. Also, there
was a 27% year-on-year fall in the overall
Back to Contents

industrial transactions which were made by


companies, Singaporeans and foreigners
during the same period last year to 435
transactions. According to the Business
Times, non-traditional industrial developers
have been less interested in bidding for
industrial plots in state tenders. On the other
hand, the office market shrank by 78% yearon-year in the first five months of this year,
while retail outlet transactions fell by 54%
year-on-year in the same period of time. The
Business
Times
believes
that
the
implementation of the cooling measures such
as the Total Debt Servicing Ratio framework
had affected Singaporeans appetite for
industrial and commercial properties. A lack of
launches this year could have also resulted in
the slow sales, said Alan Cheong from
Savills.
(Source: Business Times)
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SINGAPORE PROPERTY WEEKLY Issue 215


Industrial project at Gambas Crescent to
be launched in July

10 industrial sites launched on Confirmed


List for GLS

An industrial project, Proxima@Gambas will


be launched in July this year. The site has a
30-year lease. It was purchased by NSS
Group for $83.03 psf ppr, which is 19% lower
than what Far East had paid for an adjacent
land parcel. According to the Business Times,
the canteen unit at Proxima@Gambas had
already been sold for $2.05 million.
Subsequently, a total of 299 units for light
industrial use will be released. A 1,773 sq ft
unit that is located on the 9th floor has been
priced around $399,000 while a 1,841 sq ft
unit on the 10th level will be price from
$470,000.

According to the Business Times, all of the 10


industrial sites that are launched on the
Confirmed List for H2 Government Land
Sales have a 20-year lease. This has raised
questions on whether this will be considered
the new standard for industrial land tenures. A
spokesperson from the Ministry of Trade and
Industry said that the ministry aims to lower
upfront costs for industrialists who want to
custom-build their own facilities. With the 20year tenure, industrialists will have more
options for affordable industrial spaces.
Nonetheless, Nicholas Mak from SLP
International questioned this. Due to the short
land tenure, buyers may have difficulties
obtaining sufficient mortgage financing, said
the Business Times.

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 215


Of the 10 sites released under the
Government Land Sales, 9 are located in
Tampines or Tuas, while, 1 is located at
Tanjong Penjuru. All sites have been zoned
for heavier industrial use.

the coming year will create a downwards


pressure on prices, thus affecting sales of the
Woodlands site. Not only so, the Total Debt
Servicing Ratio framework is likely to affect
demand from retail investors.

(Source: Business Times)

(Source: Business Times)

Woodlands commercial site


under Reserved List for GLS

launched

Higher vacancy and possible undersupply


expected in business parks

Launched under the Government Land Sale


programme, a commercial site in Woodlands
has been slated to be released as part of the
Reserved List. According to URA, 60% of the
Woodlands site would be for office use. Up to
8,000 sqm or 10.2% of the site can be used
for retail and F&B uses. On the other hand,
23,504 sqm will be reserved for serviced
apartments or residential use. Nicholas Mak
from SLP International believes that the
expected supply of completed office space in

According to CBRE, with no developments


planned beyond 2016, there may be a
potential undersupply in the business parks.
Not only so, units within business parks may
face higher demand. In Q2 this year, the
vacancy rates for business parks have fallen
to 9.1% from 10.4% in the previous quarter.
According to the Business Times, the fall in
vacancy rates is due to an increase in
demand, especially in the pharmaceutical and
tech industry.

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SINGAPORE PROPERTY WEEKLY Issue 215


Rents for business park spaces in the city
fringes and the rest of island submarkets
have been maintained at $5.50 psf/month and
$3.85 psf/month respectively. Michael Tay
from CBRE added that occupiers who require
business park space have very limited
options, thus affecting vacancy rates.

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 215

Non-Landed Residential Resale Property Transactions for the Week of Jun 17 Jun 23
Postal
District
1
1
1
1
2
4
4
4
5
5
5
7
8
9
9
9
9
9
9
10
10
10
10
10

Project Name
MARINA BAY SUITES
MARINA BAY SUITES
MARINA BAY SUITES
THE CLIFT
ICON
THE COAST AT SENTOSA COVE
HARBOURLIGHTS
THE INTERLACE
CARABELLE
HERITAGE VIEW
BLUE HORIZON
SOUTHBANK
KERRISDALE
SCOTTS SQUARE
CAIRNHILL CREST
CENTENNIA SUITES
RIVERIA GARDENS
ST THOMAS SUITES
UE SQUARE
ARDMORE PARK
TOMLINSON HEIGHTS
TOMLINSON HEIGHTS
TOMLINSON HEIGHTS
GOODWOOD RESIDENCE

Back to Contents

Area
(sqft)
2,691
2,691
2,691
506
570
2,626
732
3,918
947
1,195
1,152
1,313
990
635
818
2,303
969
2,013
1,152
2,885
2,745
2,745
4,047
2,508

Transacted
Price ($)
7,700,000
6,900,000
6,700,000
1,050,000
1,028,000
4,180,000
1,030,000
3,568,000
1,125,000
1,320,000
1,230,000
2,000,000
1,090,000
2,095,805
1,550,000
4,300,000
1,750,000
3,560,000
1,700,000
8,600,000
8,180,000
8,000,000
10,845,960
6,490,935

Price
Tenure
($ psf)
2,861
99
2,564
99
2,490
99
2,075
99
1,802
99
1,592
99
1,407
FH
911
99
1,188 956
1,105
99
1,068
99
1,523
99
1,101
99
3,300
FH
1,895
FH
1,867
FH
1,806
FH
1,769
FH
1,476 929
2,981
FH
2,980
FH
2,915
FH
2,680
FH
2,588
FH

Postal
District
10
10
10
10
10
10
10
10
10
10
10
11
11
11
11
12
12
12
14
14
14
14
14
15

Project Name
LOFT@HOLLAND
GOODWOOD RESIDENCE
DUCHESS RESIDENCES
THE CORNWALL
THE SIXTH AVENUE RESIDENCES
THE MERASAGA
WATERFALL GARDENS
BEAVERTON COURT
SPANISH VILLAGE
BALMORAL GATE
DUCHESS CREST
THOMSON EURO-ASIA
PAVILION 11
THE TREVOSE
ONE AKYAB
THE MEZZO
TREVISTA
ST FRANCIS COURT
WATERBANK AT DAKOTA
DAKOTA RESIDENCES
WATERBANK AT DAKOTA
CENTRAL GROVE
EUNOSVILLE
AALTO

Area
(sqft)
334
1,970
1,905
1,044
969
1,356
1,830
2,056
1,163
1,259
1,087
1,130
1,485
2,325
1,830
775
1,119
1,270
1,259
1,830
1,981
1,238
1,679
1,528

Transacted
Price ($)
800,000
4,500,000
3,450,000
1,780,000
1,640,000
1,980,000
2,653,500
2,900,000
1,580,000
1,700,000
1,330,000
1,860,000
2,330,000
2,600,000
1,800,000
1,160,000
1,492,000
950,000
1,800,000
2,525,000
2,250,000
1,168,000
1,020,000
2,880,000

Price
Tenure
($ psf)
2,397
FH
2,284
FH
1,811 999
1,705
FH
1,693
FH
1,460
99
1,450
FH
1,411
FH
1,359
FH
1,350
FH
1,223
99
1,646
FH
1,569
FH
1,118
99
984
FH
1,497
FH
1,333
99
748
99
1,429
99
1,380
99
1,136
99
944
99
607
102
1,884
FH

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SINGAPORE PROPERTY WEEKLY Issue 215


Postal
District
15
15
15
15
15
15
15
16
16
16
16
16
17
17
18
18
18
19
19
19
20
20
21
21
21

Project Name
THE SHORE RESIDENCES
SUITES @ EASTCOAST
PARKSHORE
PEACH GARDEN
THE AMERY
EAST VIEW 18
NEPTUNE COURT
RIVIERA RESIDENCES
COUNTRY PARK CONDOMINIUM
BAYSHORE PARK
THE BAYSHORE
SUNHAVEN
FERRARIA PARK CONDOMINIUM
CELADON VIEW
WATERVIEW
EASTPOINT GREEN
SAVANNAH CONDOPARK
KOVAN MELODY
THE QUARTZ
THE SPRINGBLOOM
BISHAN POINT
THE GARDENS AT BISHAN
THE NEXUS
SYMPHONY HEIGHTS
SOUTHAVEN I

Back to Contents

Area
(sqft)
915
366
1,647
2,766
2,024
1,163
1,636
1,421
1,324
936
980
1,259
1,711
2,874
936
958
1,453
904
1,141
1,302
1,184
1,206
1,507
1,410
1,442

Transacted
Price ($)
1,550,000
595,000
2,050,000
3,100,000
2,080,000
1,060,000
1,050,000
1,630,000
1,455,000
870,000
900,000
1,125,000
1,485,000
1,418,000
1,010,000
860,888
1,260,000
1,120,000
1,138,000
1,255,000
1,310,000
1,320,000
2,125,000
1,418,000
1,250,000

Price
Tenure
($ psf)
1,694 103
1,626
FH
1,245
FH
1,121
FH
1,028
FH
912
FH
642
99
1,147
FH
1,099
FH
929
99
919
99
893
FH
868
FH
493
999
1,079
99
899
99
867
99
1,239
99
997
99
964
99
1,106
99
1,095
99
1,410
FH
1,006
FH
867
99

Postal
District
22
22
22
22
23
23
23

Project Name
LAKEHOLMZ
THE MAYFAIR
THE MAYFAIR
IVORY HEIGHTS
FORESQUE RESIDENCES
THE WARREN
PALM GARDENS

Area
(sqft)
1,518
1,195
1,173
1,701
1,130
1,216
958

Transacted Price
Tenure
Price ($) ($ psf)
1,358,000 895
99
1,010,000 845
99
985,000
840
99
1,170,000 688
100
1,300,000 1,150
99
1,035,000 851
99
780,000
814
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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