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SINGAPORE PROPERTY WEEKLY Issue 11

From the Editor

Welcome to the eleventh edition of the Singapore Property Weekly. Weve added Property Classified ads in this edition, to help you find good deals in the market. The coming months could present a great opportunity to invest in property if there is a significant correction! Mr. Propwise

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Do you have articles and insights and articles that youd like to share with thousands of readers interested in the Singapore property market? Send them to us at info@propwise.sg, and if theyre good enough, well publish them here, on our blog and even on Yahoo! News.

Contents
Singapore Property This Week How to Invest in Property for Your Retirement Non-Landed Residential Resale Property Transactions for the Week of July 16-22 Singapore Property Classifieds #1 Pg 2
Pg 5

Advertise
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Pg 11 Pg 14

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SINGAPORE PROPERTY WEEKLY Issue 11

Singapore Property This Week

Residential News
Sales update for Seastrand, Woodhaven, and Jool Suites In Pasir Ris, 232 out of the 269 released units at the 475-unit Seastrand condo project have been sold at an average of $895 psf. At Woodlands, 202 out of the 242 released units in the 337-unit Woodhaven condo project have been sold at an average of $957 psf. Over at Sing Joo Walk, around 18 units have been sold in the 52-unit Jool Suites project at an average price of $1,500 psf. About one-quarter of 748-unit euHabitat sold at the preview At Jalan Eunos, 181 units were sold in the 99year residential 748-unit euHabitat at a preview of the project. Located on a 444,000 sq ft site, the project consists of suites, condo apartments, SOHO units, and four-storey townhouses with a roof terrace and basement. A 538 sq ft one-bedroom suite starts from $541,000, 517 sq ft one-bedroom SOHOstyled apartment starts from $593,000, 1,012 sq ft two-bedroom condo apartment begins at $918,000, and 3,380 sq ft townhouses begins at $2.94 million. The developers will bring forth the official launch of the project to Aug 19 due to the positive responses from the preview. 6,488 sq ft redevelopment site at Geylang Road up for sale A 99-year-leasehold 6,488 sq ft redevelopment site at 693 Geylang Road (Geylang Conservation area) is up for sale via a tender. The site, which has a gross plot ratio of 2.8, has a two-storey building that was a former association clubhouse sitting on it.

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SINGAPORE PROPERTY WEEKLY Issue 11

Given future developments in the area, such as the implementation of Circle Line, Colliers International suggested that a successful buyer could develop the plot into a seven-storey residential project with 30 units of about 600 sq ft each. The tender for the site ends on September 6. URA will implement new home marketing rules for developers after receiving feedback Responding to respondents feedback from a public consultation that aims to help potential home buyers to make better decisions, URA will implement new rules that will change the way developers advertise and share information about residential projects. One of the feedback from respondents is asking URA to list the developers that breached provision under the HDBLA or HDR on the URA website. URA is finalizing the details for some of the proposals and will implement the changes by the end of the year.

Grand Tower sold at $88.5 million in a collective sale Located at Moulmein Rise, 21,742 sq ft freehold Grand Tower was sold to 27MR Pte Ltd in a collective sale at $88.5 million (approximately $1,376 psf of potential GFA) with no DC payable. The 33-year-old site can be redeveloped into a high-rise apartment development that consists of over 70 apartments of 800 sq ft on average, and a maximum GFA of around 64,310 sq ft. The breakeven cost for the new development is around $1,900 psf to $2,000 psf. Current owners of the 28 apartments of around 1,873 sq ft will each receive around $3.16 million ($1,688 psf) on strata area from the sale.

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SINGAPORE PROPERTY WEEKLY Issue 11

Commercial Wheelocks net profit decreased 55.7% in Q2 Wheelock Properties (Singapore) reported a 55.7% year-on-year decrease in net profit to $37 million, and a 61.8% decline in revenue to $67.6 million in Q2. Wheelocks H1 net profit improved by 33.3% to $89.4 million, whereas revenue decreased 40% to $170.4 million. Wheelock attributed the decrease in revenue in Q2 and H1 to the completion of Ardmore Two and Orchard View, and lower revenue generated by Scotts Square due to ongoing construction works. However, Wheelock Properties, which has began developing a showflat for its Ardmore Three Project, had an increase in revenue and profit from investments in Q2 and H1. Singapore developers will be building more office space in suburban area as companies shift operations away from downtown to cut costs Suburban office space supply is estimated to increase to 920,000 sq ft in 2014, five times more than the 190,000 sq ft that is going to be finished this year, as more companies such as Credit Suisse plans to shift its operation away from downtown to reduce costs. By shifting its operation to One@Changi City, Credit Suisse will pay a rent of about $4 psf, which is about one-third the amount paid for its current location at downtown. Government data showed that rents in the CBD are 2.3 times more than those in the suburban areas.

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SINGAPORE PROPERTY WEEKLY Issue 11

How to Invest in Property for Your Retirement

By Ku Swee Yong Can the average Singaporean enjoy a comfortable retirement by investing in property? We recently caught up with Ku Swee Yong, CEO and Director of International Property Advisor Pte Ltd, a real estate family office, to find out his views on the Singapore property market and how to do just that. He has just published his first book, Real Estate Riches Understanding Singapores property market in a volatile economy.

What is your outlook on the Singapore property market for the next 12 months? I am mildly positive, especially for the mid-tier residential and luxury residential segments. I am seeing more activities and enquiries in the segment of $2 to $5 million with prices in the $1,500 to $2,500 psf range.
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SINGAPORE PROPERTY WEEKLY Issue 11

Two macro factors have also caused me to turn positive: 1. The unemployment rate remains very low, currently at 1.9%. As Foreign Direct Investment continues to be brought in by EDB, the MNCs will need to hire. More Employment Pass holders will be needed, and this will result in more demand for housing, albeit more renters than buyers. 2. The Investment PR scheme remains very attractive to foreigners wishing to seek the comfort and security of life in Singapore for themselves and their children. This will further add to housing demand for buying property. For someone who has cash to invest, say from getting a lump sum of CPF money upon hitting the retirement age, what should they invest in if they're planning for a comfortable retirement? Are property, stocks or fixed deposits the best investment? My general preference is for real estate because of the monthly rental returns. For a retiree with bills and expenses they have to pay monthly, it doesnt make as much sense to invest in stocks, fixed deposits etc that do not have regular payouts. Investing in REITs is a compromise as most listed REITs pay out quarterly dividends. For someone close to retirement, should you invest in a property for capital gain or rental yield? The focus has to be on a rental income stream, and also considering the handing over of the asset to the next generation and your loved ones. If we focused on yields alone, then 99year properties may be preferred. Yields for 99-year leasehold properties are usually higher (3.5% to 5.0%) than freehold properties (2.5% to 3.8%).

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SINGAPORE PROPERTY WEEKLY Issue 11

If you were considering wealth succession, the preference would be for freehold properties. The compromise is to find an older freehold property, say 15 years old, where you might be able to get a yield of 3.5% or higher, but in this case, the land value does not depreciate. Chapter 18 of my book deals with how one should consider 99-year leasehold versus freehold property. Timah. I would also avoid the North-South corridor, including Upper Thomson Road, Marymount Rd etc. This is because of two major infrastructure projects: the Thomson MRT line and the North-South Expressway. These projects are expected to complete in 2019-2020 if there are no delays. But for the next eight years, we can expect congestion and this would be negative for investors looking for tenants for their apartments. Would you recommend buying cheaper properties overseas (e.g. in Johor) for investment? Why or why not? This is inconvenient unless you frequent that city (say Perth or Johor) and you are very familiar with how things work in that city (leases, tenancy agreements, local agents). Furthermore there is the currency to worry about, and also the differences in law, government policies etc.

Which areas and types of properties do you think are more promising for property investment, and which areas should we avoid? This depends on what investors are familiar with. Most investors would go for residential because it is a sector which is straightforward to understand, has a deep market, and sufficient data for decision making.
In terms of geographical areas, I am positive on the Holland area and negative on Bukit

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SINGAPORE PROPERTY WEEKLY Issue 11

But if you were a seasoned real estate investor and feel overexposed to Singapore real estate, then go ahead and explore outside. Retiring with an apartment that is rented out in Sydney, London or even Japan could mean that you also enjoy travelling to tend to your propertys taxes, tenant matters, bank mortgages etc. What advice do you have for the average Singaporean who would like to invest in property for a comfortable retirement? For the average retiring Singaporean who already has an HDB flat that is fully paid up, some spare cash and his CPF monies released in full, he can look for properties that are better valued and well located. For example, instead of Katong in District 15, he can consider Upper East Coast in district 16. Note that the current rules prohibit HDB owners from purchasing private property if they have not completed the Minimum Occupation Period. Get an apartment that is 5 to 10 years after TOP and one that comes with a good, secure tenant. Budget for a property that is $1 to 1.5 million, which means you need cash plus CPF of about $300,000 to $600,000, depending on your ability to take an 80% LTV mortgage. Check that the tenant and the tenancy contract are good and valid before handing over your cheque.

What is your book Real Estate Riches about and why did you decide to write it? Many real estate investors plunge into the market with a little bit of knowledge, calling a few agents they found on the internet, speaking with friends and reading articles here and there. But we know that a little knowledge is a dangerous thing, especially when we are not aware of what we do not know. Many investors live with decisions they regret, simply because they thought their research and understanding of the market was sufficient.

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SINGAPORE PROPERTY WEEKLY Issue 11

There is so much to know and we have to be careful where we tread. What this book is not: This book will not promise to make you a millionaire, nor give you the secrets to owning many properties on a small budget, nor teach you how to make a quick profit by flipping. It will not give you motherhood statements such as do not overstretch your finances, do your due diligence etc. It is also not a discussion about the property market from 30,000 feet in the air and making conclusions based on URAs quarterly price indices. What this book is: The business model of International Property Advisor Pte Ltd is based on the family office concept, with a focus on real estate assets. We represent the needs of high net worth families and therefore we work closely with private banks to take care of our clients real estate portfolio. We look at the details of transactions in the private property market. We try to understand the reasons behind why a property traded above or below average prices. We try to analyze trends in demographics, lifestyle, finances, the URAs Masterplan, infrastructure developments etc. This book captures our experience and knowledge from working with clients, bankers, fund managers and lawyers. It contains the answers we have to research to respond to their queries. This book tells it as it is.

I have come across many investors who received bad misleading advice from agents and from reading articles that were neither researched nor substantiated. As such, I am constantly approached to help troubleshoot the issues investors face,

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SINGAPORE PROPERTY WEEKLY Issue 10

to help extricate them from investments they regret. I thus decided to write and educate more, and to highlight certain erroneous public perceptions. For example, investors have been misled about the en bloc potential of several condo projects. Upon helping them to check, we found from the URA Masterplan that the zoning for these projects were for a lower density (lower plot ratio). I hope readers can avoid painful decisions by using the data and information I provide in my book.

By Ku Swee Yong, founder of real estate agency International Property Advisor, which provides services to high net worth individuals. Real Estate Riches is available at major bookstores including Times, Kinokuniya, Popular, Page One, NUS, and the airport bookshops (Dufry and Relay).
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SINGAPORE PROPERTY WEEKLY Issue 11

Non-Landed Residential Resale Property Transactions for the Week of July 16-22
Postal District 1 2 3 3 3 3 4 4 5 5 5 5 8 8 8 9 9 9 9 9 9 10 10 10 10 Project Name THE SAIL @ MARINA BAY ICON RIVER PLACE RIVER PLACE THE ANCHORAGE EMERALD PARK CARIBBEAN AT KEPPEL BAY TERESA VILLE THE PARC CONDOMINIUM THE STELLAR DOVER PARKVIEW WEST BAY CONDOMINIUM CITY SQUARE RESIDENCES R66 APARTMENTS KERRISDALE VISIONCREST THE COSMOPOLITAN TRIBECA TIARA LA CRYSTAL UE SQUARE GRANGE RESIDENCES THE GRANGE THREE THREE ROBIN MILL POINT Area (sqft) 893 657 721 797 1,765 1,206 1,281 1,959 1,302 1,421 1,249 893 570 452 1,270 947 1,399 1,033 1,281 1,076 1,141 2,583 4,424 1,636 527 Transacted Price ($ Price ($) psf) 1,786,000 1,999 1,168,000 1,779 1,020,000 1,414 1,110,000 1,394 2,000,000 1,133 1,300,000 1,078 1,980,000 1,546 2,080,000 1,062 1,570,000 1,205 1,680,000 1,182 1,245,000 997 760,000 851 969,000 1,699 700,000 1,548 1,300,000 1,023 1,910,000 2,016 2,700,000 1,930 1,750,000 1,694 2,050,000 1,600 1,588,000 1,475 1,540,000 1,350 7,200,000 2,787 8,700,000 1,967 3,100,000 1,895 938,000 1,778 Postal District 10 10 10 10 10 10 10 10 10 10 11 12 12 12 12 12 12 12 13 14 14 14 14 14 14 Project Name VENTUNO BALMORAL WATERFALL GARDENS WING ON LIFE GARDEN GALLOP GABLES HOLT RESIDENCES THE SIXTH AVENUE RESIDENCES SIXTH AVENUE VILLE GLENTREES CASA JERVOIS DUCHESS CREST TEN @ SUFFOLK TRELLIS TOWERS THE CITRINE KEMAMAN VIEW OLEANDER TOWERS THE CALLISTA AVA TOWERS DE PARADISO THE ACACIAS LE REVE VISTAYA VIEW THE WATERINA GROSVENOR VIEW STARVILLE THE SUNNY SPRING Area (sqft) 1,313 1,830 3,240 2,669 2,056 1,819 1,238 1,442 1,636 1,389 1,184 549 1,313 1,324 1,227 1,302 1,281 2,120 1,270 936 1,281 1,130 1,249 538 1,066 Transacted Price ($ Price ($) psf) 2,300,000 1,751 3,000,000 1,639 5,280,000 1,630 4,270,400 1,600 2,900,000 1,411 2,510,220 1,380 1,700,000 1,373 1,950,000 1,352 2,100,000 1,284 1,700,000 1,224 1,590,000 1,343 800,000 1,457 1,368,000 1,042 1,195,000 903 1,055,000 860 1,100,000 845 1,050,000 820 1,700,000 802 1,220,000 961 985,000 1,052 1,250,000 976 1,100,000 973 1,200,000 961 500,000 929 891,000 836

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SINGAPORE PROPERTY WEEKLY Issue 11

Postal District 14 14 14 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 16 16 16 16 16 17 17 17 18 18 Project Name SIMSVILLE GUILIN COURT EVER LODGE ONE AMBER THE MAKENA PEBBLE BAY SUITES @ AMBER PARKSHORE COTE D'AZUR COSTA RHU THE MAKENA SUNSHINE LOFT EMERALD EAST SANCTUARY GREEN PARK EAST GOLD LEAF MANSIONS SHEBA LODGE SHEBA LODGE LE CONNEY PARK COSTA DEL SOL BAYSHORE PARK THE BAYSHORE THE CLEARWATER EASTWOOD LODGE ESTELLA GARDENS JLB RESIDENCES AVILA GARDENS MODENA EASTPOINT GREEN Area (sqft) 1,249 1,173 1,776 570 1,744 1,894 840 1,636 1,152 1,335 1,292 710 1,109 1,572 2,024 1,496 1,259 1,270 1,216 1,475 936 947 1,259 829 657 990 893 1,561 958 Transacted Price ($ Price ($) psf) 1,010,000 809 760,000 648 950,000 535 935,000 1,639 2,460,000 1,411 2,560,000 1,351 1,120,000 1,334 2,150,000 1,314 1,500,000 1,302 1,700,000 1,274 1,558,000 1,206 850,000 1,196 1,220,000 1,100 1,650,000 1,050 2,100,000 1,038 1,220,000 815 955,000 758 925,000 728 839,000 690 1,950,000 1,322 920,000 982 865,000 913 968,000 769 572,000 690 660,000 1,005 940,000 949 720,000 806 1,310,000 839 800,000 835 Postal District 19 19 19 19 19 19 19 19 19 20 21 21 21 21 21 21 21 21 21 21 21 21 21 22 22 23 23 23 23 Project Name KOVAN MELODY THE QUARTZ KOVAN ESQUIRE COMPASS HEIGHTS KENSINGTON PARK CONDOMINIUM CHUAN PARK EVANIA COMPASS HEIGHTS COMPASS HEIGHTS SEASONS VIEW 1 KING ALBERT PARK MAPLEWOODS GARDENVISTA 1 KING ALBERT PARK MEADOWLODGE THE RAINTREE CLEMENTI PARK PARC PALAIS PARC PALAIS HUME PARK II HILLVIEW GREEN HIGH OAK CONDOMINIUM HIGH OAK CONDOMINIUM PARC VISTA PARC OASIS HILLINGTON GREEN GLENDALE PARK HILLINGTON GREEN GUILIN VIEW Area (sqft) 904 1,109 1,087 1,055 1,668 1,173 1,378 1,292 1,324 1,152 1,421 1,410 1,130 1,195 1,216 1,292 1,658 1,238 969 1,119 1,722 1,206 1,399 1,055 1,227 990 1,507 1,528 861 Transacted Price ($ Price ($) psf) 975,000 1,078 1,100,000 992 1,008,888 928 935,000 886 1,470,000 881 1,005,000 857 1,168,000 848 1,085,000 840 1,010,000 763 1,070,000 929 1,850,000 1,302 1,762,500 1,250 1,330,000 1,177 1,360,000 1,138 1,346,000 1,107 1,288,000 997 1,650,000 995 1,220,000 986 945,000 975 960,000 858 1,430,000 830 983,000 815 1,080,000 772 860,000 815 990,000 807 993,000 1,003 1,470,000 975 1,410,000 922 770,000 894

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SINGAPORE PROPERTY WEEKLY Issue 11

Postal District 23 23 23 23 23 23 23 25 26 27 27 27 Project Name REGENT HEIGHTS GUILIN VIEW PARKVIEW APARTMENTS MAYSPRINGS HILLTOP GROVE REGENT GROVE REGENT HEIGHTS CASABLANCA BULLION PARK YISHUN SAPPHIRE ORCHID PARK CONDOMINIUM EUPHONY GARDENS Area (sqft) 1,023 1,259 1,130 1,292 1,249 1,475 2,185 1,184 807 1,173 980 1,216 Transacted Price ($ Price ($) psf) 805,000 970,000 850,000 960,000 910,000 1,030,000 1,500,000 900,000 770,000 828,000 690,000 840,000 787 770 752 743 729 698 686 760 954 706 704 691

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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SINGAPORE PROPERTY WEEKLY Issue 11

Singapore Property Classifieds #1

For Sale Soho@Central, 9F Soho 1BR loft, 635sf, tenanted till Jan 12@$5000. Mgt fee $975/quarter. Asking $2280psf+GST. Call S. Ganesh @ 91732881 now! Office space@Central, 19F 883sf, ask $2950 neg. Spectacular view of Marina Bay Sands, vacant, $1800/quarter. Call S. Ganesh @ 91732881 now! Bliss Residences@Kembangan. FH 1500+sf 3+1BR Penthouse. Only $1000+psf. 1 min to MRT, 15 min to CBD. Rooftop pool and BBQ. TK Tan 98206228. For Rent Luma, New 8F 1153sf 3br w/ balcony. Low rent $5,500 (neg). Partial furnished. Call S. Ganesh @ 91732881 for viewing!

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