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Transcript of Singapore Property Weekly Issue 37
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Issue 37Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTSp2 Singapore Property News This Week
p11How Will Singapore Property Fare in
the Year of the Dragon?
p16Resale Property Transactions(January 14 January 20)
p17Singapore Property Classifieds #25
Welcome to the 37th edition
of the Singapore Property
Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
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Singapore Property This Week
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ResidentialStrong sales at Parc Rosewood
99-year leasehold five-storey 689-unit Parc
Rosewood located along Woodlands Avenue
2/Rosewood Drive had sold 165 of its 236
released units. A good 120 of them (mainlyone- and two-bedroom units with a few three-
bedroom units and penthouses) were sold
during the first four hours of the preview
launch, and this may be due in part to its
lower price tag of $925-998 psf, 8-10%
lowered than that of recent transactions($1,030-1,100 psf). This is likely made in
anticipation of effects from the ABSD. With
the lower price tag, a one-bedroom unit start
from around $398,000, a two-bedroom unitfrom $568,000, and a three-bedroom unit
from $778,000.
2011 saw an increase in prices for small
apartments by 11.8%
In flash estimate figures released by theNational University of Singapore for its
Singapore Residential Price Index (SRPI)
series, it was shown that prices of small
apartments, defined as units up to 506 sq ft,
increased by 11.8% in2011. Prices for
apartments, other than small apartments,located in Non-Central Region increased by
11.7%, twice as fast as prices for those
located in Central Region, which had
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increased by 5.7%. The overall SRPI rose by
9.2% for the year of 2011, lower than that in
2010, which had an 11.7% increase. Between
November and December 2011, only the
prices for small apartments increased (by
3.4%) while prices of large Central and Non-
Central regions decreased by 0.4% and 1%
respectively.
Two freehold residential sites at Balestier
up for collective sale
Both sites, one located along 2 to 16 (even
numbers only) Kim Keat Lane, another along
1 to 19, 21 and 23 Kim Keat Close, have a
2.8 gross plot ratio and can be built up to a
maximum of 36 storeys.
One site can be amalgamated with a 1,439 sq
ft adjoining state land to form a plot with a
74,151 sq ft GFA which can potentially yield
88 800sq ft residential units. This site is
asking for $68 million or $940 psf ppr,
including a $745,000 development charge
and a $4.45 million land premium.
The other site can also be amalgamated witha 2,832 sq ft adjoining state land, yielding a
GFA of 90,179 sq ft that can in turn yield 107
800sq ft units. The asking price of the site
including a development charge and land
premium is $81 million or $940 psf ppr.
The two sites are expected to be popular
given their proximity to Toa Payoh MRT
Station, Novena MRT Station and Boon Keng
MRT Station, and developers can bid for
either or both sites by March 1.
Surprising strong private home sales inJanuary
Excluding ECs, the number of private homes
sold by developers in January may have
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reached 1,700-1,800, compared to the mere
632 in December. This figure is likely to
increase if ECs are included. Most of the units
contributing to this figure came from Far East
Organisations Watertown and The Hillier. The
two sold 771 units and 387 units respectively
at an average price of $1,224 psf. Including
units it sold at other developments, the total
came up to 1,253 private homes. Meanwhile,
another developer, City Developments sold
224 units including ECs. For other
developments, Parc Rosewood condo in
Woodlands had sold almost 200 units, The
Nautical in Sembawang sold 85 units, and
Riversound Residence in Sengkang 80 units.
The sales are surprisingly strong, and aredriven mainly by Watertown and The Hillier,
which were probably more popular because of
their proximity to MRT stations and their
integration with a retail section of the
developments. Sales figure in other
developments are much lower, despite having
steady sales and steady stream of visitors to
their show flats. Potential buyers are less
willing to commit because of the ABSD, the
uncertain economy and the expectation that
prices will fall.
ABSD is working as number of foreign
purchase have decreased
According to DTZ, the proportion of non-PRforeigners purchasing private homes has
decreased from 23% in December to a mere
3% in January 2012. This may be due to the
small number of caveats lodged so far.
Nevertheless, this sharp drop is significant,
analysts say.
The sales at the recent launches show that
ABSD is working as foreign share in
purchases have decreased.
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Only 5% of the 771 units sold so far at
Watertown condo and 10% of the 387 units
sold at The Hillier were bought by non-PR
foreigners. Compared to the 23.2% bought byforeigners at The Tennery last year, this is a
sharp decline.
While some believe that the foreigners share
of purchase is going to decrease, others
believe that the full impact will only be
apparent in six months time. If prices stabilise
and the economy proved resistant, foreigners
may start buying property in Singapore again.
Freehold Crystal Tower and Seletar Garden
site up for en-bloc sale
Freehold residential Crystal Tower located
near Bukit Timah Road is back on the
collective sale market, and is asking for $150
million or $1,458 psf ppr, slightly below its
earlier asking price of $155 million, or $1,600
psf ppr. The 28-unit 11-storey residential
development sits on a 60,482 sq ft site with a
1.6 gross plot ratio (GPR). Including anadditional 10% balcony space, the plot ratio
will be increased to 1.76, after paying a $5.22
million development charge.
The freehold Seletar Garden development
located along Cactus Road is asking for $80-
85 million, or $712-751 psf ppr. The 30-unit
development sits on a 73,098 sq ft site with a
GPR of 1.4 and an allowable height of up to
four storeys. An amalgamation with adjoining
state lands will bring the total site area to
92,3111 sq ft and the GFA to 129,235 sq ft.
Any development on this site may prove
attractive to aviation professionals who want
the convenience of living near where they
work.
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The tenders for the two sites close on Feb 27
and March 7 respectively.
This trend of having several developments
being put up for en bloc sales is not expectedto continue for long as a result of the current
economy outlook. Analysts expect the
collective sale market to be quiet in the first
half of the year, and what happens in the
second half is dependent on the global
economy.
Since redevelopment of en bloc sites will take
around two-and-a-half years to two-and-three-
quarter years to complete, developers may
bid for these sites based on their prediction of
what will happen in 2013 to 2014. The ABSD
imposed on developers who did not build and
sell all units on the residential sites within five
years may also deter some developers from
purchasing some sites.
The Tampines Trilliant attract 1,000
applications
99-year leasehold 670-unit The Tampines
Trilliant, an EC located in Tampines, attractedaround 1,000 applications in its first
application period from Jan 27 to Jan 31, 60%
of whom lives in the East side. Another one-
third is by people already residing in
Tampines. The popularity of the project is
expected, it being located near shoppingmalls, Tampines MRT station and the future
Downtown Line 3 Interchange. The booking
for the development on Feb 4 will be
conducted using balloting and buyers can
either choose normal payment or a deferred
payment scheme. The development willinclude 12 residential blocks housing 127
units of 872-1,141 sq ft three-bedroom units,
397 units of 1,001-1,378 sq ft three-bedroom
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plus utility units, 1,302-1,593 sq ft four-
bedroom units and 1,841-2,465 sq ft
penthouses.
99-year leasehold private residential site atJervois Rd draws 17 bids
The highest bid for the District 10 plot next to
the Chatsworth Park Good Class Bungalow
Area came from Singapore Land unit SL
Development, which bid $118.9 million or
$880.74 psf ppr. The earlier predictions for the
top bid ranged from $630 to $950 psf ppr. SL
Development said that the expected
breakeven cost is $1,300 psf and they intend
to sell units built at around $1,500-1,600 psf.
The developer plans to develop the site into a
130 to 140-unit five-storey project with one-
and two-bedroom units and some three-
bedroom units. The proposed development
also includes seven to eight strata three-
storey-plus-basement terrace houses.
More upcoming launches despite ABSD
Upcoming launches will include 99-year
leasehold Twin Waterfalls, an EC located nearPunggol MRT station, with e-applications
beginning on Feb 10. The prices will be lower
20% lower than that of the recently released
Watertown at around $720 to $750 psf.
Another launch to look out for is the release of
99-year leasehold Palm Isles, a 429-unit
condo development located at Flora Drive. It
will be launched around the first week of April
with prices set at around $900 psf.
However, whether prices in general will fall
remains to be seen. At the Redas (RealEstate Developers' Association of Singapore)
Spring Festival luncheon, developers were
unwilling to say for certain that prices will fall
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since they feel that it is too early to determine
the impact of the ABSD. Even then, prices set
will depend on the target market and the
product itself. Nonetheless, foreign buying
had definitely decreased and a fall in prices by
3-5% is predicted.
Revisions to Conditions of Sale for
property transactions
The revisions made in the Law Society of
Singapore's latest edition of Conditions of
Sale 2012 for property transactions include
some addition and deletion of certain
conditions.
One new condition included the vendor giving
a warranty to the buyer stating that there wereno unauthorised additions or alterations to the
property. Another is a three-month maximum
postponement of the scheduled completion of
sale from the date of death, should the buyer
or vendor pass away. The risk of damage will
also only be transferred to the buyer when the
sale is completed or when the buyer takes
possession of the property, depending on
which is earlier. Sellers can also now rescind
the option or affirm it if there is dishonoured
cheque payment.
Other conditions were also revised or
removed in light of policy changes since the
last edition.
Commercial
JTC releases 58-year leasehold Business 1
industrial site in Serangoon
The site located at Serangoon North Avenue 4
has a site area of 0.8 ha and a 2.5 gross plot
ratio. Some analysts believe that the site will
not be very popular, attracting bids of $130 -
$140 psf ppr from developers intending to
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build small strata units. Others believe that it
will be popular since it has a good location,
and may draw bids $150-160 psf ppr before
the tender closes on March 13. Nevertheless,
this is below what the site could have fetched
last year. The new conditions on strata
subdivision for industrial sites are likely the
reason for the lower predictions.
99-year leasehold hotel site on reserve list
released for sale
The site located on Rangoon road was on the
government reserve list until an unnamed
developer applied for it to be released from
the list, after committing to bid for the site at a
minimum price of $56.5 million or $403.65 psf
ppr. The 4.2 gross plot ratio of the 33,326 sq
ft site brings the maximum GFA to 139,974 sq
ft. Despite the competition that it will likely
have from upcoming new hotels in the same
region, the site is expected to be popular,
drawing bids of $770 to 830 psf ppr.
However, the hotel property sector in general
is expected to be quieter this year, given theexpected fall in room rates from the increase
in supply by 1,400 in 2012 and 3,100 in 2013.
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How Will Singapore Property Fare in the Year of the Dragon?
By Getty Goh
This is my first article for 2012. Before getting
down to business, I would like to take this
opportunity to wish everyone a successful and
prosperous 2012! To start off the year, I have
decided to write something on a lighter note
for your reading entertainment.
Some time back, I came across an article in
the Singapore Business Times titled Finance,
fengshui square off over this Dragon Year.
This article wrote that experts in the finance
industry and geomancy circle were having
different outlooks for the Singapore stock
market in the year of the Dragon. The former
saw a slight recovery while the latter held anopposing view.
After reading the article, I thought that it would
be interesting to see how the Singapore
property markets had performed in previous
Dragon Years and to use the past trends to
predict what 2012 was going to be like.
Intuitively, it seemed plausible that the
Chinese zodiac had some impact on the
property markets. After all, the Dragon is a
creature that is both feared and revered by
the Chinese. Just as many Chinese parents
want to have Dragon babies, I wanted to find
out if there was a Dragon Year effectfor the
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property markets as well?
Residential property market performance
in the Dragon Year
Using the URA Private Property Price Index
(PPPI) data from 1975 to 2011, a gain (or a
loss) for the respective year was worked out
by subtracting the index value of Quarter 1
from Quarter 4. If the difference was positive,
that year would be deemed a growth year.
Conversely, if the difference was negative,
that year would be deemed a contraction
year.
Based on this approach, the numbers of
growth and contraction years, according to theChinese zodiac animals, were worked out
(see Figure 1).
Figure 1: Number of profitable and
unprofitable years according to Chinese
Zodiac for private residential properties
(according to alphabetical order)
Source: URA and Ascendant Assets Pte Ltd
From the table above, 2 out of the 3 years
Dragon Years were contraction years. From
this analysis, some may infer that the
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Retail property market performance in
previous Dragon Year
From Figure 3, 2 out of 3 years Dragon Years
were found to be profitable. Hence, it mightbe inferred that the retail sector would be
generally favourable in the year ahead. In
comparison, the Rooster was the only zodiac
animal that had 3 rounds of price increases
and some might think that investors who
bought retail units in such a year would likelydo well..
Figure 3: Number of profitable and
unprofitable years according to Chinese
Zodiac for retail properties (according to
alphabetical order)
Source: URA and Ascendant Assets Pte Ltd
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To conclude, I must qualify that past
performances are not indicative of future
results. At present, there appears to be some
congruence between how people expect theproperty market to perform and the past
Dragon Years trend. To me, the distribution
appears to be totally random and the
congruence is simply by chance. To a
soothsayer, this may actually be the work of
divine forces. Ultimately, only time will tell
whether the property market will pan out as
predicted.
By Getty Goh, Director ofAscendant Assets,
a real estate research and investment
consultancy firm.
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Non-Landed Residential Resale Property Transactions for the Week of Jan 14 Jan 20
NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after apurchaser signs an OTP, hence the lagged nature of the data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
2 SPOTTISWOODE PARK 850 750,000 882 99
5 THE MAYLEA 969 1,180,000 1,218 FH
7 SOUTHBANK 958 1,460,000 1,524 99
9 RIVERGATE 2,077 4,340,930 2,090 FH
9 RIVERGATE 1,841 3,600,000 1,956 FH
9 SKYPARK 3,348 6,026,400 1,800 FH
10 FOUR SEASONS PARK 2,874 7,100,000 2,470 FH
10 GOODWOOD GARDENS 1,076 1,800,000 1,672 FH
11 NEWTON ONE 1,216 2,128,000 1,750 FH
11 MANDALAY TOWERS 2,497 2,350,000 941 FH
12 TRELLIS TOWERS 1,485 1,770,000 1,192 FH
14 ASTON MANSIONS 1,163 945,000 813 99
15 RIVEREDGE 1,593 2,000,000 1,255 99
15 OCEAN PARK 3,261 3,800,000 1,165 FH
15 HAIG COURT 1,442 1,550,000 1,075 FH
15 PARK COURT 958 900,000 939 FH
16 BLEU @ EAST COAST 1,012 1,040,000 1,028 FH16 LAGUNA GREEN 1,270 1,168,000 920 99
16 EAST MEADOWS 1,216 1,050,000 863 99
16 BEDOK COURT 2,411 1 ,580,000 655 99
17 BLUWATERS 1,184 1,160,000 980 946
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
19 PALM HAVEN 1,518 1,268,000 835 999
20 THE GARDENS AT BISHAN 883 892,000 1,011 99
20 LAKEVIEW ESTATE 1,615 1,370,000 849 99
23 CASHEW HEIGHTS CONDOMINIUM 1,658 1,398,000 843 999
23 MERAWOODS 1,055 868,000 823 999
23 MONTROSA 1,195 970,000 812 999
23 CASHEW PARK CONDOMINIUM 1,367 1,050,000 768 999
23 REGENT HEIGHTS 1,173 830,000 707 99
27 EUPHONY GARDENS 2,088 1 ,110,000 532 99
28 SERENITY PARK 1,313 1 ,080,000 822 FH
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Singapore Property Classifieds #25
For Sale
Page | 17Back to Contents
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Bliss Residences @ Kembangan. FH1500+sf 3+1BR Penthouse. Only$1000psf. 1 min to MRT, 15 min to CBD.Rooftop pool and BBQ. TK Tan 98206228.