Singapore Property Weekly Issue 231

8/20/2019 Singapore Property Weekly Issue 231

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Issue 231Copyright © 2011-2014 www.Propwise.sg. All Rights Reserved.

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CONTENTS

p2 How High Can Pigs Fly?

p6 Singapore Property News This Week

p10 Resale Property Transactions

(October 7 – October 13 )

Welcome to the 231st edition of the

Singapore Property Weekly .

Hope you like it!

Mr. Propwise

FROM THE

EDITOR

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SINGAPORE PROPERTY WEEKLY Issue 231

Page | 2Back to Contents

By Property Soul (guest contributor)

On October 17, National Development

Minister Lawrence Wong told the press that it

is still not time yet to unwind the cooling

measures. Price adjustments so far have

been moderate compared to the increase inprices in the past few years.

Price corrections have been moderate

So how “moderate” have the price

adjustments been? Have price corrections

been “meaningful” so far?

According to the URA, the Property Price

Index of private residential properties has

fallen almost 8 percent from

How High Can Pigs Fly?


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its peak of 154 (based on rebased PPI) in

third quarter of 2013 to 142.3 in the third

quarter of 2015.

However, based on the last bottom of 95.3(based on rebased PPI) in the second quarter

of 2009, prices are still 49 percent higheras of

third quarter 2015.

The conclusion is: price adjustments for the

past two years are still “moderate” compared

with the hike in property prices in the last fewyears.

Cooling measures are here to stay

There is a predictable request-response

pattern here: a spokesperson from a

stakeholder in the property industrycomments that it’s time the government

relaxed property cooling measures before it’s

too late. This will be followed by a Minister’s

reply through the press that it is still too early

to consider easing any of the cooling

measures.

The message from the government is very

clear: The cooling measures are here to stay – not before or after the election; not when

the economy slows down; not until prices

have achieved a “meaningful correction.”

When the wind changes direction

Yes, the worst has yet to come. The Total

Debt Servicing Ratio and Additional Buyer

Stamp Duty are only the tip of the iceberg.

The property industry is facing other

challenges such as a supply glut and a soft

rental market. And it is constantly under the

threat of an interest rate hike and another economic crisis.

Buying properties is like sailing in the open

waters. When the wind and waves are in your

favor, it doesn’t matter what you buy,


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that buying a property and investing in a

profitable one are two separate things; that

speculators and professional investors are

two different species.

If there is a probability formula of finding a

good deal, it may come one-third from the

buyer’s insight, another one-third from the

buyer’s discipline (hard work, patience,

persistence, etc.), and the last one-third

depending on market conditions and opportunities.

And of course, buying the right property at the

right time makes all the difference here.

By guest contributor Property Soul, a

successful property investor, blogger , and

author of the No B.S. Guide to Property

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

Q 3 P r i v a t e h o m e i n d e x f a l l b y 3 . 2 % y e a r -

on-year

According to URA’s private home index,

prices have fallen by 3.2% year-on-year in Q3

this year. HDB’s resale price index alsoshowed a 1.8% fall in prices from the start of

the year to date. Market experts believe that

HDB prices are stabilising, however Wong

Xian Yang cautions that resale prices may still

fall. Eugene Lim from ERA said that as the

income ceiling for BTO flats increases, the

resale market may shrink due to a switch in

demand for BTO flats. Ong Teck Hui from JLL

said that with a smaller Government Land

Sales quantum, development sales haveslowed in the private residential property

market. Thus, there are fewer new projects,

which could explain the fall in number of

unsold uncompleted private housing units to

22,456 at end-Q3 from 24,435 units in the

previous quarter.

(Source: Business Times)

H D B r e s a l e p r i c e i n d e x f a l l s b y a t o t a l o f

9.9% since Q2 2013

Based on the HDB resale price index, resale

prices have eased by a total of 9.9% since Q2

2013. In Q3 this year, the HDB resale price

index fell by 0.3% quarter-on-quarter,

SINGAPORE PROPERTY WEEKLY I 231


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the smallest fall in prices in 9 quarters. Not

only so, there was a 27.8% increase in the

number of resale flat applications in Q2 from

the previous quarter. According to the

Business Times, the increase in incomeceiling and the introduction of the Proximity

Housing Grant, whilst keeping the Mortgage

Servicing Ratio cap at 30%, is likely to

increase resale transaction volumes. While

sellers may feel inclined to sell off their

properties now, high asking prices maydiscourage sales, said market experts. In the

leasing market, a bumper crop of private

homes slated for completion is expected to

threaten the HDB rental market. Market

experts recommend keeping rental prices

reasonable and also giving the flat a

makeover to attract potential tenants.


A v e r a g e E C p r i c e s t r i m m e d t o $ 7 8 0 p s f i n

H2 2015

According to the Business Times, a cut in the

average EC price to $780 psf in H2 2015 has

boosted sales, thus mitigating the problem of

an oversupply. Market experts believe that

the prolonged sluggish sales in 2014 were

due to high EC prices which could no longer

be supported by the Mortgage Servicing

Ratio. According to URA, 752 uncompleted

ECs were sold by developers in H1 this year and the estimated median price was at $810

psf. As median prices were subsequently cut

to an estimated $785 psf in Q3, about 1,250

units were sold. This showed that buyers

were still very price-sensitive. To attract

buyers, market experts believe thatdevelopers should engage in product

innovation, in addition to a competitive pricing

strategy.


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Pr iv ate r es id en tial s it e in Clem en ti

expect ed t o at t ract h igh bids

A 99-year leasehold private residential site at

Clementi is expected to garner strong

response from developers due to its location

in a mature estate and its proximity to several

good schools. The site, which is about 1.3 ha,

is expected to yield about 460 units. Placed

on the confirmed list for H2 2015 Government

Land Sales Programme, market expertsestimate that the site will attract about 5 to 16

bids with the winning bid falling between $480

and $692 psf ppr. Nicholas Mak from SLP

International said that a lack of competition

from new launches in the neighbourhood may

also increase the site’s appeal to bidders.(Source: Business Times)

Q 3 p r o p e r t y d e v e l o p e r s e n t i m e n t w o r s e n s

The Real Estate Sentiment Index showed that

in Q3 this year, sentiment among developers

has weakened, most likely due to the

expected slowdown in the economy and also

higher interest rates. Respondents of the

survey believe that the government should lift

or tweak existing cooling measures in the

coming 6 months. The Current Sentiment

Index, which tracks developer sentiments inthe past 6 months, had fallen by 0.2 points to

3.7 in Q3 from the previous quarter. Similarly,

the Future Sentiment Index had also fallen by

0.3 points to 3.7 in the same time period.




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Commercial

I ndust r ia l space prices and rent s f a l l in Q3

According to JTC, overall industrial prices fell

0.3% year-on-year in Q3 this year while rentsfell by 1.6% year-on-year in Q3 this year. This

fall in prices is likely to be due to a weak

manufacturing outlook and an oversupply of

industrial space. Furthermore, occupancy

rates have fallen 0.2% in Q3 from Q2. The fall

in occupancy rates was led by business parkswhere occupancies fell by 1.7% year-on-year

in Q3. Tan Boon Leong from Colliers said that

weaker economic growth and the anticipation

that interest rates may increase have

dampened buying and renting sentiments.



http://www.moneymatters.sg/


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Non-Landed Residential Resale Property Transactions for the Week of Oct 7 – Oct 13

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 PEOPLE'S PARK COMPLEX 1,173 850,000 724 993 THE METROPOLITAN CONDOMINIUM 786 1 ,180,000 1,502 99

3 ASCENTIA SKY 1,819 2,600,000 1,429 99

4 CARIBBEAN AT KEPPEL BAY 4,650 4,401,180 946 99

5 THE STELLAR 1,335 1,580,000 1,184 FH

5 CLEMENTIWOODS CONDOMINIUM 1,055 1 ,170,000 1,109 99

9 THE TRILLIUM 2,390 4,600,000 1,925 FH

9 TIARA 893 1,630,000 1,824 FH

9 RIVERGATE 1,507 2,650,000 1,759 FH

9 TRENDALE TOWER 3,208 5,500,000 1,715 FH

9 UE SQUARE 1,561 2,200,000 1,410 929

9 MACKENZIE REGENCY 1,109 1,300,000 1,173 FH

10 GOODWOOD RESIDENCE 1,970 5,000,000 2,538 FH

10 D'LEEDON 786 1,466,100 1,866 99

10 NATHAN SUITES 1,776 3,200,000 1,802 FH

10 CUSCADEN RESIDENCES 1,485 2,675,000 1,801 FH

10 D'LEEDON 2,110 3,282,200 1,556 99

10 PALM SPRING 1,496 2,200,000 1,470 FH

10 DUCHESS CREST 1,087 1,360,000 1,251 99

11 CUBE 8 904 1,390,000 1,537 FH

11 NINETEEN SHELFORD ROAD 1,668 2,050,000 1,229 FH

12 THE TIER 646 800,000 1,239 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

12 CALARASI 1,130 1,090,000 964 FH14 WATERBANK AT DAKOTA 883 1,335,000 1,512 99

14 LA FLEUR 431 565,000 1,312 FH

14 THE WATER EDGE 936 800,000 854 FH

15 PALMERA RESIDENCE 549 750,000 1,366 FH

15 THE MONTAGE 635 856,000 1,348 FH

15 CASA MEYFORT 1,765 2,200,000 1,246 FH

15 MANDARIN GARDEN CONDOMINIUM 1,001 1,050,000 1,049 99

16 COSTA DEL SOL 1,313 1,588,000 1,209 99

16 THE BAYSHORE 926 890,000 961 99

16 THE BAYSHORE 926 860,000 929 99

16 TANAMERA CREST 1,604 1,235,000 770 99

17 BALLOTA PARK CONDOMINIUM 1,432 950,000 664 FH

18 NV RESIDENCES 1,227 1,270,000 1,035 99

18 ELIAS GREEN 1,507 900,000 597 99

19 FONTAINE PARRY 1,238 1,410,000 1,139 999

19 CASA ROSA 1,098 1,020,000 929 99

19 CASA ROSA 1,098 970,000 883 99

19 RIO VISTA 1,238 890,000 719 99

19 SERANGOON VILLE 1,625 1,128,000 694 100

21 THE CASCADIA 570 1,030,000 1 ,805 FH

21 GARDENVISTA 1,109 1,385,000 1,249 99



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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.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

21 HUME PARK II 1,249 1,301,888 1,043 FH

23 HILLINGTON GREEN 1,528 1,650,000 1,079 999

23 HILLVIEW RESIDENCE 1,249 1,195,000 957 999

23 THE WARREN 1,216 1,160,000 954 9923 THE WARREN 1,066 860,000 807 99

23 MAYSPRINGS 1,292 900,000 697 99

27 SUN PLAZA 1,066 800,000 751 99

28 SUNRISE GARDENS 1,281 980,000 765 99
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Singapore Property Weekly Issue 231

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