Singapore Property Weekly Issue 159

8/12/2019 Singapore Property Weekly Issue 159

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Issue 159Copyright 2011-2014 www.Propwise.sg . All Rights Reserved.
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CONTENTS

p2 The Great Singapore Property Sale: Buy

Now or Wait Till Later?

p7 Singapore Property News This Week

p11 Resale Property Transactions

(May 21 May 27 )

Welcome to the 159 th edition of theSingapore Property Weekly .

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
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SINGAPORE PROPERTY WEEKLY Issue 159

Page | 2Back to Contents

By Property Soul (Guest Contributor)

The annual GSS (Great Singapore Sale) mayhave started only on May 25. But for propertynew launches, the GSS started much earlier.

The sale is now on

With the steam of an overheated propertymarket dying down, the buzz has now shifted todevelopers playing discount games to push newprojects or clear old stock. With so many 'greatdeals', buyers are spoiled for choices.

1. MCL Land cut prices for Hallmark Residencesin Bukit Timah and sold 39 units in February andMarch.

The Great Singapore Property Sale: Buy Now or Wait Till Later?


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2. CapitaLand's Sky Habitat in Bishanmanaged to move over 100 units after relaunched at 10 to 15 percent off its originalprices set two years ago.

3. Wheelock Properties put up 95 units of ThePanorama in Ang Mo Kio for balloting. With adiscount of 12 percent, they claimed to sell 80to 85 units.

4. China developer Ximeng Land relaunched

the balance of 12 luxury villas on Pearl Islandin Sentosa Cove, offering an 8 percentdiscount from a year ago.

It proves that 'early birds' enjoy no advantage.We don't see developers giving rebates back

to early buyers who have paid at premiumprices.

Let's face it: It's a buyers' market now!

I am particularly amazed by the 180 degree

change of attitude at The Panorama. I visitedthe sales gallery three months ago. Adevelopers representative was patrollingthere to ensure no photo-taking, no salesbrochure before booking a unit ...

Back in early January, a newspaper articlementioned that "hundreds of people visitedthe showflat" and "60 units out of the 120units released were booked on the first day".

But the caveats show that only 56 units weretransacted by end of April. So what happenedto the units for the next 140 days after sellinglike hot cakes on the first day?

Anyway, the project won't be completed until2019. Who knows what the property market

will be like five years from now?

Developers are now trying to transfer the riskof an unknown market to the buyers.Nonetheless, many buyers,


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especially first-time buyers and HDBupgraders, are excited by the new round of discounts and can't wait to rush into themarket.

More irresistible bargains on the way?

An HSR report revealed that 50 residentialprojects sold less than half of total units,including Hillion Residences in Bukit Panjang,Hillview Peak in Bukit Batok, Vue 8

Residence in Pasir Ris, The Glades in TanahMerah, Treasure in Balmoral, Victory Ville,Devonshire 8, One Balmoral and 8 Raja.

Eight of these new projects sold less than 10percent while two did not manage to sell anyunit since their launch last year.

A Straits Times article on June 7 highlightsthe fact that 24 projects may be liable to$55.1 million in extension charges.Developers with foreign shareholders have to

pay 8 to 24 percent of the land price to thegovernment if they fail to sell their units twoyears after TOP. Projects that have alreadymissed the deadline include Emerald Hill and

The Marq.

All these facts are only the tip of an iceberg:

1. Many luxury homes in prime districts like Ardmore Park and Grange Road have beencompleted but not yet launched.

2. According to URA, as of 1st quarter 2014,there are a total of 6,733 private residentialunits launched but unsold. On top of that, anadditional 80,261 private residential units arein the supply pipeline from the rest of thisyear to beyond 2018.

3. While developers are clearing their existingstock, every month there are new projectsobtaining their TOP and new sites releasedby the government to build more private


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housing.

4. New project is not the only choice for buyers. There is strong competition fromcountless resale units whose owners aremore flexible to slash prices if they aredesperate to sell.

5. Local developers are competing with their counterparts from Malaysia, Thailand,Indonesia, Philippines, Australia, Japan, UK,

US, etc. targeting the same buyers to movetheir current and future projects.

How can developers find so many buyers for their new units if they are only giving 15percent discount? This is just the beginning of the big sale!

Where are the foreign shoppers?

In the midst of this 'uniquely Singapore'Property GSS, our most wanted foreignshoppers are nowhere to be seen.

Can participating developers seriously lookinto promotions targeting tourists from top-spending destinations? How about partneringwith Singapore Tourism Board for organized

shopping tours with free sightseeing, flightand accommodation bundled with booking aluxury home, with the 15 percent foreigner

Additional Buyer Stamp Duty absorbed by thedevelopers?

After all, individual developers have alreadystepped up their marketing efforts in overseascountries. For instance, S P Setia is nowmarketing Eco Sanctuary at Chestnut Avenueto buyers in Hong Kong who are sufferingfrom Double Stamp Duty introduced by thelocal government.

Lesson learned: Sales of any product notmeeting expectation at home can often find anew market in other countries.


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The sale that worth waiting for

This year GSS is in its 20th year. Experiencedshoppers like you and me have long become

savvy buyers.When the sale just starts, I am not in a hurryto buy. It is different from a private sale openfor privileged customers for one day only.

Every sale starts with 10 percent discount for

end of season sale; changes to 20 percentdiscount storewide; follows by further reduction of 50 percent; and ends with finalreduction of 70 percent or more. Sometimesthere is even a warehouse sale or moving outsale with massive mark-down of prices for

stock clearance.

By then, I may not be able to find my size, or the color or style that I want. But it doesn'tmatter. I have a limited budget and I will bevery happy spotting a few 'gems' from theleftovers!

By guest contributor Property Soul, asuccessful property investor, blogger , and author of the newly released No B.S. Guide toProperty Investment .
http://propertysoul.com/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://propertysoul.com/


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Singapore Property This Week


Residential

HDB resale pr ices lowest in two years

In May, HDB resale prices have fallen for four consecutive months, hitting a new low in twoyears since April 2012. According to an HDBflash report by SRX, resale prices of HDBflats fell by 1.2 per cent in May as comparedto the previous month. HDB executive flatssaw the sharpest decline in its resale prices,with a 2.8 per cent fall. Ong Kah Seng fromRST Research believes that demand for executive flats have fallen due to lower mortgage limits, as the mortgage servicingratio is currently capped at 30 per cent of gross monthly salary. Besides the low resale

prices, transaction volumes have also beenlow. While there was a 4.4 per cent month-on-month increase in transaction volumes in

April, transaction volumes also fell by 11.1 per cent from April to May. Christine Li,OrangeTee research head believes thatpotential resale flat buyers could have turnedto Sale of Balance Flats (SBF) as they arecheaper and ready for occupation.

(Source: Business Times)

Fe w er H DB f la ts s o l d i m m e d iat el y a ft er

Min imum Occupa t ion Per iod

HDB said that fewer HDB flat owners areselling their flats immediately after meetingthe Minimum Occupation Period (MOP).

S GA O O 1 9


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Last year, only 470 HDB flats were sold withina year of their MOP. This was less than half of the 1,006 units sold in 2012. In 2010 and2011, 1,338 and 1,231 flats were sold upon

meeting their MOP respectively. Under theMOP scheme, flat owners cannot buy or invest in a private residential property duringtheir MOP. Not only so, the flat has to beoccupied for five years before they can subletthe unit, or sell it. According to Eugene Lim

from ERA Realty Network, the slowdown inflat sales shows that the market is moderatingand that flat owners may be waiting for thenext upturn to sell their flats.

(Source: Channel NewsAsia)

Analyst says developers may adjust priceto move sales in the near term

According to OrangeTee Research,developers may be adjusting prices of some

of their projects to encourage sales and toavoid paying an extension fees. Under thegovernments Qualifying Certificate (QC)rules, developers have to pay additional

charges to extend their sales period after twoyears of the projects temporary occupationpermit (TOP). 24 condo projects are still notfully sold, two years after receiving their TOP,between 2010 and 2012. Thus, developerswith unsold units may have to pay another

$80.7 million to extend sales for another year.This is in addition to the $55.1 million thatdevelopers have previously collectively paidto extend the sales period of their projectsfrom 2012. As such, analysts predict thatdevelopers may adjust prices to clear their stock by the deadline, in order to avoid heftyextension charges.


SINGAPORE PROPERTY WEEKLY I 159


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O n li n e s u r v ey b y M ND : S in g ap o r ean s i n

favour of more three-generat ion f la ts

According to an online survey by the Ministryof National Development, Singaporeanssupport the development of more three-generation flats, and are supportive of givingpriority to those who apply for a HDB flat thatis near to their parents. The survey which has1,927 participants since May 25 is part of thegovernments new housing conversation withSingaporeans to understand housingpreferences and to find out how thegovernment can encourage families to livetogether or close by. Also, the surveyrevealed that Singaporeans want higher

housing grants for those who live with their parents, or live close to them. 72 per cent of the 949 courting Singaporeans whoresponded to the survey said that they wantto live close to their parents. Also, 68 per cent

of the 41 seniors who currently live apart or plan to live apart from their children reflectedthat they want to live in the same town, or closer, to their children in future. However,

only 31 per cent of the 880 married couplessurveyed live in the same town with their parents. Dr Lee Bee Wah, chair of theGovernment Parliamentary Committee for National Development, said that this couldmean that there are insufficient BTO flats in

the same estates where parents are living.


Commercial

Ov ers eas d ev elo p ers in c reas in g

marke t ing e ffo r t s in S ingapore

Due to continued interest in overseasprojects, more overseas developers areincreasing their marketing efforts in

SINGAPORE PROPERTY WEEKLY I 159


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Singapore. Overseas developers, CrownGroup from Australia and UMLand fromMalaysia have opened a sales office atSuntec Tower Two and a property gallery in

Anson House at Tanjong Pagar respectively. Also, Galliard Homes from London isexpected to open a sales office in Singaporesoon. HSR International Realtors analyst,Wong Shanting said that Singaporeans maybe encouraged to look elsewhere due to high

property prices and due to the implementationof cooling measures such as the Total DebtServicing Ratio, thus encouraging overseasdevelopers to step up marketing efforts inSingapore.


http://www.moneymatters.sg/


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Non-Landed Residential Resale Property Transactions for the Week of May 21 May 27

PostalDistrict

Project NameArea(sqft)

TransactedPrice ($)

Price($ psf)

Tenure

3 ALEXIS 603 1,105,000 1,833 FH3 ALESSANDREA 1,098 1,480,000 1,348 FH3 THE ANCHORAGE 1,830 2,350,000 1,284 FH3 TANGLIN VIEW 2,120 2,500,000 1,179 994 REFLECTIONS AT KEPPEL BAY 2,626 4,398,000 1,675 995 THE PEAK@BALMEG 1,507 2,168,000 1,439 FH5 THE PARC CONDOMINIUM 980 1,270,000 1 ,297 FH8 CITY SQUARE RESIDENCES 1,195 1,700,000 1,423 FH9 HELIOS RESIDENCES 1,281 3,500,000 2,732 FH

9 ILLUMINAIRE ON DEVONSHIRE 463 1,200,000 2,593 FH9 PATERSON LODGE 850 1,680,000 1,976 FH9 VILLE ROYALE 1,292 1,850,000 1,432 FH

10 GARDENVILLE 1,808 3,435,000 1,900 FH10 BELMOND GREEN 980 1,780,000 1,817 FH10 BALMORAL HILLS 1,389 2,000,000 1,440 FH10 THE SERENADE @ HOLLAND 1,787 2,200,000 1,231 9911 L'VIV 1,001 2,180,000 2,178 FH11 PAVILION 11 958 1,530,000 1,597 FH

11 AMARYLLIS VILLE 1,259 1,870,000 1,485 9912 THE CALLISTA 1,141 1,190,000 1,043 99912 MAR THOMA MANSIONS 1,528 1,200,000 785 99913 THE SCENIC @ BRADDELL 1,539 1,650,000 1,072 FH

PostalDistrict


TransactedPrice ($)

Price($ psf)

Tenure

14 THE SUNNY SPRING 990 963,000 972 FH15 PALM OASIS 743 950,000 1,279 FH15 DUNMAN VIEW 1,335 1,350,000 1,011 9915 MERLOT VILLE 1,744 1,665,000 955 FH15 LAGUNA PARK 1,615 1,420,000 879 9915 EAST MEWS 2,131 1,820,000 854 FH15 NEPTUNE COURT 1,270 960,000 756 9916 BAYWATER 1,292 1,380,000 1,068 9917 CARISSA PARK CONDOMINIUM 1,324 1,228,000 928 FH

18 NV RESIDENCES 764 890,000 1,165 9918 LIVIA 1,270 1,238,888 975 9918 THE TROPICA 1,518 1,360,000 896 9918 MELVILLE PARK 1,475 1,116,000 757 9919 THE CHUAN 1,281 1,820,000 1,421 99919 THE CHUAN 1,367 1,800,000 1,317 99919 REGENTVILLE 980 780,000 796 9920 BISHAN 8 1,173 1,360,000 1,159 9920 PEIRCE VIEW 1,270 1,315,000 1,035 FH

20 BRADDELL VIEW 1,798 1,380,000 768 9921 CAVENDISH PARK 1,313 1,570,000 1,196 9921 ASTOR GREEN 1,378 1,420,000 1,031 9921 HILLVIEW GREEN 1,302 1,330,000 1,021 999



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NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority.Typically, caveats are lodged at least 2-3 weeks after a purchasersigns an OTP, hence the lagged nature of the data.

PostalDistrict


TransactedPrice ($)

Price($ psf)

Tenure

21 THE RAINTREE 1,582 1,570,000 992 9921 PANDAN VALLEY 4,026 3,175,000 789 FH

22 PARC OASIS 1,227 1,170,000 953 9922 PARC OASIS 1,227 1,100,000 896 9923 THE JADE 1,475 1,600,000 1,085 9923 GUILIN VIEW 1,528 1,385,000 906 9923 REGENT HEIGHTS 1,023 870,000 851 9923 MAYSPRINGS 1,292 939,988 728 9927 YISHUN EMERALD 1,152 900,000 781 9927 ORCHID PARK CONDOMINIUM 1,152 835,000 725 9927 EUPHONY GARDENS 1,152 780,000 677 99
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Singapore Property Weekly Issue 159

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