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Transcript of Singapore Property Weekly Issue 215.pdf
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CONTENTS
p2 Don’t Always Believe What You Read
in the News
p8 Singapore Property News This Week
p14 Resale Property Transactions
(June 17 – June 23 )
Welcome to the 215th edition of the Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 2Back to Contents
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
like“the 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 as“lower transaction
volumes”, “drop in property prices continues”,
“rental market continues to soften”, “more
bank sales” and “lowest in six years”?
Don’t Always Believe What You Read in the News
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 3Back to Contents
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 media’s 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)
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 4Back to Contents
Is Malaysia's Iskandar losing its shine as a
property hot spot? (The Business Times, Jun
26, 2014)
Oversupply by China developers sparks
uncertainty over Iskandar’s rental yield
(TODAY, September 30, 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
at $2.05m (The Straits Times, Dec 27, 2012)
Eyeing an EC? 'Golden period' to buy is here
(My Paper, Aug 18, 2014)
Jurong EC draws record number of
applications (The Straits Times, Oct 12, 2014)
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)
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 5Back to Contents
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)
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)
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 6Back to Contents
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
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
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 7Back to Contents
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?
3. Form your own judgment
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.
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.”
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.
Individual judgment is about the wisdom of
not believing everything you hear.
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.
SINGAPORE PROPERTY WEEKLY Issue 215
Singapore Property This Week
Page | 8Back to Contents
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
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.
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 9Back to Contents
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
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
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 10Back to Contents
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
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% year-
on-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)
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 11Back to Contents
Industrial project at Gambas Crescent to
be launched in July
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.
(Source: Business Times)
10 industrial sites launched on Confirmed
List for GLS
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 20-
year 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.
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 12Back to Contents
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.
(Source: Business Times)
Woodlands commercial site launched
under Reserved List for GLS
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
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)
Higher vacancy and possible undersupply
expected in business parks
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.
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 13Back to Contents
Rents for business park spaces in the city
fringes and the rest of island submarkets
have been maintained at $5.50 psf/month and
$3.85 psf/month respectively. Michael Tay
from CBRE added that occupiers who require
business park space have very limited
options, thus affecting vacancy rates.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 14Back to Contents
Non-Landed Residential Resale Property Transactions for the Week of Jun 17 – Jun 23
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 MARINA BAY SUITES 2,691 7,700,000 2,861 99
1 MARINA BAY SUITES 2,691 6,900,000 2,564 99
1 MARINA BAY SUITES 2,691 6,700,000 2,490 99
1 THE CLIFT 506 1,050,000 2,075 99
2 ICON 570 1,028,000 1,802 99
4 THE COAST AT SENTOSA COVE 2,626 4,180,000 1,592 99
4 HARBOURLIGHTS 732 1,030,000 1,407 FH
4 THE INTERLACE 3,918 3,568,000 911 99
5 CARABELLE 947 1,125,000 1,188 956
5 HERITAGE VIEW 1,195 1,320,000 1,105 99
5 BLUE HORIZON 1,152 1,230,000 1,068 99
7 SOUTHBANK 1,313 2,000,000 1,523 99
8 KERRISDALE 990 1,090,000 1,101 99
9 SCOTTS SQUARE 635 2,095,805 3,300 FH
9 CAIRNHILL CREST 818 1,550,000 1,895 FH
9 CENTENNIA SUITES 2,303 4,300,000 1,867 FH
9 RIVERIA GARDENS 969 1,750,000 1,806 FH
9 ST THOMAS SUITES 2,013 3,560,000 1,769 FH
9 UE SQUARE 1,152 1,700,000 1,476 929
10 ARDMORE PARK 2,885 8,600,000 2,981 FH
10 TOMLINSON HEIGHTS 2,745 8,180,000 2,980 FH
10 TOMLINSON HEIGHTS 2,745 8,000,000 2,915 FH
10 TOMLINSON HEIGHTS 4,047 10,845,960 2,680 FH
10 GOODWOOD RESIDENCE 2,508 6,490,935 2,588 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
10 LOFT@HOLLAND 334 800,000 2,397 FH
10 GOODWOOD RESIDENCE 1,970 4,500,000 2,284 FH
10 DUCHESS RESIDENCES 1,905 3,450,000 1,811 999
10 THE CORNWALL 1,044 1,780,000 1,705 FH
10 THE SIXTH AVENUE RESIDENCES 969 1,640,000 1,693 FH
10 THE MERASAGA 1,356 1,980,000 1,460 99
10 WATERFALL GARDENS 1,830 2,653,500 1,450 FH
10 BEAVERTON COURT 2,056 2,900,000 1,411 FH
10 SPANISH VILLAGE 1,163 1,580,000 1,359 FH
10 BALMORAL GATE 1,259 1,700,000 1,350 FH
10 DUCHESS CREST 1,087 1,330,000 1,223 99
11 THOMSON EURO-ASIA 1,130 1,860,000 1,646 FH
11 PAVILION 11 1,485 2,330,000 1,569 FH
11 THE TREVOSE 2,325 2,600,000 1,118 99
11 ONE AKYAB 1,830 1,800,000 984 FH
12 THE MEZZO 775 1,160,000 1,497 FH
12 TREVISTA 1,119 1,492,000 1,333 99
12 ST FRANCIS COURT 1,270 950,000 748 99
14 WATERBANK AT DAKOTA 1,259 1,800,000 1,429 99
14 DAKOTA RESIDENCES 1,830 2,525,000 1,380 99
14 WATERBANK AT DAKOTA 1,981 2,250,000 1,136 99
14 CENTRAL GROVE 1,238 1,168,000 944 99
14 EUNOSVILLE 1,679 1,020,000 607 102
15 AALTO 1,528 2,880,000 1,884 FH
SINGAPORE PROPERTY WEEKLY Issue 215
Page | 15Back to Contents
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.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
15 THE SHORE RESIDENCES 915 1,550,000 1,694 103
15 SUITES @ EASTCOAST 366 595,000 1,626 FH
15 PARKSHORE 1,647 2,050,000 1,245 FH
15 PEACH GARDEN 2,766 3,100,000 1,121 FH
15 THE AMERY 2,024 2,080,000 1,028 FH
15 EAST VIEW 18 1,163 1,060,000 912 FH
15 NEPTUNE COURT 1,636 1,050,000 642 99
16 RIVIERA RESIDENCES 1,421 1,630,000 1,147 FH
16 COUNTRY PARK CONDOMINIUM 1,324 1,455,000 1,099 FH
16 BAYSHORE PARK 936 870,000 929 99
16 THE BAYSHORE 980 900,000 919 99
16 SUNHAVEN 1,259 1,125,000 893 FH
17 FERRARIA PARK CONDOMINIUM 1,711 1,485,000 868 FH
17 CELADON VIEW 2,874 1,418,000 493 999
18 WATERVIEW 936 1,010,000 1,079 99
18 EASTPOINT GREEN 958 860,888 899 99
18 SAVANNAH CONDOPARK 1,453 1,260,000 867 99
19 KOVAN MELODY 904 1,120,000 1,239 99
19 THE QUARTZ 1,141 1,138,000 997 99
19 THE SPRINGBLOOM 1,302 1,255,000 964 99
20 BISHAN POINT 1,184 1,310,000 1,106 99
20 THE GARDENS AT BISHAN 1,206 1,320,000 1,095 99
21 THE NEXUS 1,507 2,125,000 1,410 FH
21 SYMPHONY HEIGHTS 1,410 1,418,000 1,006 FH
21 SOUTHAVEN I 1,442 1,250,000 867 99
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
22 LAKEHOLMZ 1,518 1,358,000 895 99
22 THE MAYFAIR 1,195 1,010,000 845 99
22 THE MAYFAIR 1,173 985,000 840 99
22 IVORY HEIGHTS 1,701 1,170,000 688 100
23 FORESQUE RESIDENCES 1,130 1,300,000 1,150 99
23 THE WARREN 1,216 1,035,000 851 99
23 PALM GARDENS 958 780,000 814 99