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8/13/2019 Singapore Property Weekly Issue 140
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Issue 140Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.
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CONTENTS
p2 5 Facts You Probably Didnt Know About
the Singapore Property Market
p6 Singapore Property News This Week
p13 Resale Property Transactions
(January 8 January 14)
Welcome to the 140th edition of the
Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
mailto:info@propwise.sghttp://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:info@propwise.sg8/13/2019 Singapore Property Weekly Issue 140
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By Marcus Sim (guest contributor) Fact #1
Singapore Has a Higher
Population Density than Hong Kong
Many people regard Hong Kong as one of the
countries with the highest population density
in the world. To a large extent, this is true.
Based on their population of 7,182,724 (July2013 estimate) and their land size of 1,054
square kilometers (sqkm), the population
density works out to be 6,815 Residents per
sqkm!
However, did you know that Singapore has a
much higher population density?
Our 5,460,302 strong population is packed
into a mere 687 sqkm land size which means
that for every square kilometer,
5 Facts You Probably Didnt Know About the Singapore Property Market
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there are 7,948 people! Based on worldwide
statistics, Singapore is currently ranked as
the 3rd most densely populated country in the
world, followed by Hong Kong at a close 4th.
The top spot for population density goes toMacau with 20,069 residents for every square
kilometer.
It is no wonder that the Singapore
Government has ongoing plans to increase
land size via reclamation to refrain from
claiming the crown from Macau. Land scarcity
is a very real problem for Singapore which
explains the ever-increasing land costs and
property prices which are driven by pent up
demand.
Fact #2
If Singapore Reaches theTargeted 6.9 Million Population by 2030,
the Population Density Will Rise Above
10,000 Residents per SQKM
At the projected 6,900,000 population by year
2030, Singapore will hit an approximate
10,044 residents for each square kilometer.
That is a huge number of people!
Fact #3
ECs Have the Highest VacancyRate
Strangely enough, even with the high
population in Singapore today, there are still
unoccupied houses in Singapore!
Vacant units affect the property rental marketdirectly. Generally the higher the vacancy
rates, the weaker the rental market.
It is also interesting to note that Executive
Condominiums (ECs) have the highest
vacancy rates (10.38%) among the different
private property categories.
Perhaps, there is a disparity between the
rental expectations of EC owners and their
prospective tenants.
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Fact #4 The Average Household Size in
Singapore is Just 3.53
Did you also know that the average
household size of families in Singapore is amere 3.53? (In 1990 it used to be 4.25)
Shrinking household sizes affect the property
markets in a couple of ways.
Developer new launches are offering a
greater number of smaller units to cater to
this trend.
Developers are aware of this trend and will
likely continue to offer more shoe-box and
smaller sized units in their new launches
which are more affordable to the average
buyer in Singapore.
Demand for larger sized units will
decrease
Developers are less likely to build
condominium units with a larger square
footage as it will be too high in terms of price
quantum and generally not well received by
buyers.
Fact #5 Over 600 Thousand New
Residential Units Will Be Needed to House
a 6.9 Million Population
Currently, there are about 1,342,155
completed residential units in Singapore.
Based on the average household size of 3.53,these completed units cater to approximately
4,737,808 residents.
However this number is not entirely accurate
yet as we have to discount the number of
Work Permit Holders (Foreign Domestic
Worker and Construction) who have their own
accommodation. They add up to a combined
total of 517,500.
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As stated earlier, the current population of
Singapore at Jul 2013 is 5,460,302. This
suggests that in the current market, there is
still a strong demand of approximately
204,994 residents in search for properties to
rent or buy.
By 2030, a projected 6.9 million people will
reside in Singapore and assuming that the
average household size remains the same,
1,954,675 residential units will be needed tocater to the housing needs of the population.
By Marcus Sim ofSG Property Reviews.
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Singapore Property This Week
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Residential
H al f o f Panoramas un its s old in f i rs t
release
In its first release on Jan 19, half of the 120
units released for sale at The Panorama
condominium were booked. Prices of theunits were from $650,000 for the one
bedroom units to nearly $2.4 million for the
five bedroom units. Most of the units sold
were two and three bedroom types from 678
sq ft to 1,130 sq ft in size. The Panorama,
developed by Wheelock Properties, is locatedat Ang Mo Kio Avenue 2, and is Wheelock's
first 99-year suburban condo project here in
two decades. Most buyers were reported to
be owner-occupiers with young families aged
from thirties to fifties.
(Source: Business Times)
C o o l i n g m e as u r e s n o t l i k e l y t o b e r e la x ed :
p o l l
Although home sales and home prices have
dropped, a poll by the Business Times for
CEOs and industry-group leaders revealed
that cooling measures for the property sector
are unlikely to be rolled back. Data showed
that home sales dropped to the lowest since
Jan 2009, and URA's overall private housing
price index decreased 0.8 percent in Q4
2013. Yet it would be premature to say the
property market is stabilizing because more
time is needed to assess if the cooling
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measures have sustained their objective of
managing property speculation. Market
watchers also applaud the Total Debt
Servicing Ratio (TDSR) which has effectively
shown that low-cost financing has been acatalyst for property purchases.
(Source: Business Times)
Ch in es e b uy in g o f Si ng ap o re p ri vat e
h o m e s s t i l l h o l d s u p
Despite a 35 percent drop in private home
purchases by non-Singaporeans in 2013,
mainland Chinese buyers had the smallest
drop among the top four nationalities. DTZ
analysis showed that the Indians buying
dropped 54.5 percent from 2012, but the
mainland Chinese only bought 16.9 percent
fewer than that of 2012. The Malaysians
buying was also down 36 percent. DTZ
revealed that 65 percent of the 1,479 homes
bought by the mainland Chinese were priced
below $1.5 million, 62 percent were bought
from developers, and more than 80 percent
were outside the traditional prime districts of
9, 10 and 11.
(Source: Business Times)
Geylang si t e draw s $146m t op bid
A plot at Geylang East Avenue 1 has drawn
16 developersbids, with the highest bid at $
145.9 million, or $775.96 psf ppr from
Sustained Land's SL (Serangoon). Nicholas
Mak, executive director at SLP International
said that this is the second highest number of
bids that a government land sales (GLS)
tender has attracted until now in the GLS
programme for 2013. The top position is the
condominium site at Faber Walk in Clementi,
which drew 18 bids. The high number of bids
is because many developers are now more
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selective of the development sites they would
acquire, and they prefer well-located sites
that are relatively small.
(Source: Business Times)
H D B resale f lat pr ices hi t record low
Housing & Development Board (HDB) resale
flat prices hit a record low in Q4 2013, the
first annual price decline in eight years.
Transaction volumes of 2013 reached thelowest level since HDB started compiling the
data in 1997, and sales continued to weaken
in the last three months of the year. Property
consultants are expecting an even wider fall
in prices in 2014.
(Source: Business Times)
P r i v at e h o m e a n d i n d u s t r i a l s p a c e m a r k e t s
s an d w ic h ed b et w een r is in g s u p pl y an d
c o o l i n g d e m a n d
Nearly all indicators in the UrbanRedevelopment Authority's (URA) Q4 2013
figures for the private housing market point
towards weakening. Official statistics show
that the private residential property and
factory space markets have been affected by
both the weight of supply and the propertycooling measures including the total debt
servicing ratio (TDSR) framework. However,
the office market is appearing to witness a
gradual rent recovery.
(Source: Business Times)
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3,139 BTO f lat s u p f o r s ale
Some 3,139 new flats have been launched in
the HDBs first build-to-order (BTO) exercise
of 2014. These new flats are in six projects in
the non-mature estates of Bukit Batok,
Jurong West, Punggol and Woodlands and
the mature estate of Serangoon, and are
expected to be fairly well received, especially
from cost-sensitive applicants, young couples
who can afford to wait, and buyers
constrained by the cap on their mortgage
servicing ratio (MSR) from purchasing more
expensive resale flats.
(Source: Business Times)
Secondary-market deals low est s ince 2004
According to a caveats analysis by DTZ, the
number of resale private homes in the
secondary market dropped from 15,678 units
in 2012 to 7,695 units in 2013, the lowest
volume in 2004. This drop is much larger than
the 31.3 percent decrease in the number of
private homes sold by developers in the
primary market to 13,372 units in 2013. DTZ
said that the drop might be due to the factthat those who own multiple properties are
not in a hurry to sell their properties, as their
replacement cost is now higher, with the
higher additional buyer's stamp duty (ABSD)
and the total debt servicing ratio (TDSR)
framework in implementation. Individual
owners are also less able to offer incentives
or discounts to entice buyers.
(Source: Business Times)
Commercial
R ec o rd b i d f or f or m er J o o Ch iat p o li ce
s t a t io n s i t e
A new record bid for Government Land Sales
(GLS) hotel site has been established for a
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99-year leasehold site along East Coast Road
housing the former Joo Chiat police station.
Out of 8 bidders, a consortium comprising
Master Contract Services and Keong Hong
Construction had the highest bid of $352.8million, or $1,326.11 psf ppr. This record has
eclipsed the previous price of $1,303.24 psf
ppr for a plum site at Havelock Road last
November by an unnamed developer. Ong
Kah Seng, director at R'ST Research said
that this shows the implementation of theTDSR caused the private residential
sentiment to cool and investors are shifting
interest to hotel development.
(Source: Business Times)
Japans Par c o t o v ac at e M il len ia W al k a f te r l o s i n g m i l l i o n s
Japanese mall and department store operator
Parco is reported to quit its 83,000-square
foot premises at Millenia Walk in Feb,
following its losses of millions there since it
moved to the mall in 2010. In 2011, it made a
loss of $8.7 million and in 2012, made
another loss of $3.4 million. Parcos lease
would end in March, and it is looking tocontinue its operations in another mall with
smaller scale of about 10,000 sq ft of space
to accommodate its food, cafe and restaurant
operationsthe only part that Parco is doing
well. Pontiac Land Group, which owns and
manages Millenia Walk, is working out plansfor the space that Parco will leave behind to
focus on a renovation and enhancement
exercise.
(Source: Business Times)
R af fl es M ed i c al b u y s R af fl es Hospitalsadjacent s i t e
Integrated private healthcare provider Raffles
Medical Group is reported to be acquiring
from the Singapore Land Authority
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a 1,978.1 sq ft site adjacent to Raffles
Hospital for $105.2 million by internal
resources and bank borrowings. The site has
a plot ratio of 5.6 and would yield a GFA of
11,077.36 sq m. The total development cost
of the project, including the purchase of the
site, construction costs and improvement
works, is estimated to be about $310 million.
(Source: Business Times)
In du st r ial s pac e p ric es an d r en tals
mo derat e in Q4 2013
Prices and rentals of industrial space were
reported to have moderated in Q4 2013, and
are expected to carry on for the next few
years, especially that JTC Corporation plansto double the yearly average supply of
industrial space to two million sq m between
2014 and 2016. JTC Corp has also released
the latest quarterly report on the industrial
property market the first time since it took
charge of collecting and disseminating
industrial property data from the Urban
Redevelopment Authority (URA) last October.
(Source: Business Times)
All 52 st rat a of f ice unit s at AR C 380 sold
All 52 strata office units for sale at the 16-
storey freehold ARC 380 project in Lavender
Street/Jalan Besar were sold, but only nine
out of 19 retail units were sold. Two office
floors were sold during a VIP preview before
that, one at $22.6 million and the other at
$23.1 million, or $2,410 psf and $2,464 psf
respectively. The ARC 380 project isundertaken by two companies associated to
Tong Eng Group, and will come up on the
current Eminent Plaza and next-door
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Lavender Food Square site, near the
upcoming Bendemeer MRT Station on the
Downtown Line.
(Source: Business Times)
T h e A r c a d e u p f o r s a l e b y t e n d e r
The 20-storey commercial development in
Collyer Quay, the Arcade, is now up for sale
through marketing agent Colliers International
by its owners including property developer
City Developments. The Arcade is a 999-year
leasehold development with a maximum
allowable gross floor area of 303,657 sq ft,
and the total existing strata area of 157,325
sq ft. The site is said to have huge
redevelopment potential as the existing plot
ratio has not been fully maximized. Under the
2008 Master Plan, the 21,909 sq ft site on
which the Arcade now sits is zoned for
commercial use with its allowable plot ratio
being 13.86, which allows a building up to 50
storeys high.
(Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of Jan 8 Jan 14
NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after apurchaser signs an OTP, hence the lagged nature of the data.
Postal
District
Project NameArea
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
1 ONE SHENTON 1,894 4,000,000 2,111 99
1 ONE SHENTON 1,507 2,720,000 1,805 99
3 YONG SIAK COURT 1,442 1,400,000 971 FH
5 CARABELLE 2,077 2,380,000 1,146 956
10 THE FORD @ HOLLAND 560 1,100,000 1,965 FH
10 STUDIO 3 549 1,060,000 1,931 FH
10 NATHAN PLACE 1,464 2,415,600 1,650 FH
11 SOLEIL @ SINARAN 1,722 3,525,000 2,047 99
11 THE ARCADIA 3,735 4,088,000 1,094 99
12 SUNVILLE 1,141 1,200,000 1,052 FH
13 ONE LEICESTER 1,066 1,400,000 1,314 FH
14 THE WATERINA 721 925,000 1,283 FH
15 ARTHUR 118 893 1,380,000 1,545 FH
15 ONE AMBER 1,378 2,000,000 1,452 FH
15 COTE D'AZUR 1,389 1,865,000 1,343 99
15 THE MAKENA 1,582 2,008,888 1,270 FH
15 SUNSHINE RESIDENCE 1,087 1,035,000 952 FH
16 CASA FLORA 1,561 1,358,000 870 FH
18 NV RESIDENCES 743 903,000 1,216 99
19 SUNGLADE 1,152 1,320,000 1,146 99
20 FAR HORIZON GARDENS 1,335 955,000 715 99
21 THE NEXUS 1,055 1,665,000 1,578 FH
Postal
District
Project NameArea
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
21 HUME PARK I 904 928,000 1,026 FH
21 HUME PARK I 1,356 1,200,000 885 FH
22 PARC VISTA 1,270 1,320,000 1,039 99
23 GLENDALE PARK 1,507 1,600,000 1,062 FH
23 REGENT HEIGHTS 1,023 930,000 909 99
25 CASABLANCA 1,184 1,065,000 899 99
27 THE ESTUARY 1,442 1,268,888 880 99