Date post: | 01-Jun-2018 |
Category: |
Documents |
Upload: | propwisesg |
View: | 218 times |
Download: | 0 times |
of 14
8/9/2019 Singapore Property Weekly Issue 209
1/14
Issue 209Copyright © 2011-2014 www.Propwise.sg. All Rights Reserved.
http://www.propwise.sg/http://www.propwise.sg/
8/9/2019 Singapore Property Weekly Issue 209
2/14
ContributeDo you have articles and insights and articles that you’d like to share
with thousands of readers interested in the Singapore property
market? Send them to us at [email protected] , and if they’re good
enough, we’ll publish them here, on our blog and even on Yahoo!
News.
AdvertiseWant to get your brand, product, service or property listing out to
thousands of Singapore property investors at a very reasonable
cost? Head over to www.propwise.sg/advertise/ to find out more.
CONTENTS
p2 Why Developer Defects Are the Off-Plan
Property Buyers’ Worst Nightmare
p7 Singapore Property News This Week
p12 Resale Property Transactions
(May 6 – May 12 )
Welcome to the 209th edition of the
Singapore Property Weekly .
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:[email protected]
8/9/2019 Singapore Property Weekly Issue 209
3/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 2Back to Contents
By Property Soul (guest contributor)
Residents of Trivelis, an 888-unit Design,
Build and Sell Scheme (DBSS) project in
Clementi, are disappointed about the quality
of their new flats.
Owners who collected keys to their new units
since January complained about defective
stove knobs, rusty dish racks, stain-prone
kitchen countertops, poor quality laminate
flooring, shattered shower glass panels,
wardrobes without shelves, rusty lift doors
and flooding corridors.
Why Developer Defects Are the Off-Plan PropertyBuyers‟ Worst Nightmare
http://propertysoul.com/author/propertysoul/http://propertysoul.com/author/propertysoul/http://propertysoul.com/author/propertysoul/http://propertysoul.com/author/propertysoul/
8/9/2019 Singapore Property Weekly Issue 209
4/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 3Back to Contents
What happened to Trivelis after TOP?
Ironically, „delivery of high-quality products‟ is
both the vision and the mission of the
developer EL Development, though the long
list of developer defects in Trivelis has proven
otherwise. The end products are also a big
contrast to „choice fittings‟ and „quality floor
finishes‟ as stated in the project‟s sales
brochure.
This was not an individual case of one owner
suing the developer for discrepancies of the
actual unit from the sales brochure, but from
the feedback of 300 emails from the
residents.
EL Development finally agreed on May 14
that, besides arranging repairs and replacing
defective items, it would look into giving
residents a goodwill package (Straits Times,
May 15, 2015, “DBSS flat owners at Trivelismay get goodwill package following slew of
complaints”)
Background of the developer
EL Development is not new in the local
property scene. The 9-year-old developer isbehind a few small residential projects in the
prime districts, including Stevens Suites, Parc
Centennial, Rhapsody on Mount Elizabeth
and Illuminaire on Devonshire.
http://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-complhttp://www.straitstimes.com/news/singapore/housing/story/dbss-flat-owners-trivelis-may-get-goodwill-package-following-slew-compl
8/9/2019 Singapore Property Weekly Issue 209
5/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 4Back to Contents
For mass market condominiums, there are
Trivelis, Rosewood Suites, La Fiesta and
SkySuites 17. Projects of industrial
development include Nordix, Eldix and Jurong
Food Hub.
With their higher price tags, flats built under
the DBSS scheme are supposed to be better
quality compared with Built-to Order or
normal HDB flats. For Trivelis, the most
expensive unit costs a hefty $800,000 whichis comparable to buying a unit in a mass
market condominium in the private market.
And it remains a mystery how the developer
managed to pass the inspections and checks
of the Housing Development Board to obtain
the TOP (Temporary Occupation Permit).
The bargaining power of off-plan property
buyers
If a buyer purchases a second hand property,
to the seller, the buyer is the only purchase
party. In this case, the bargaining power of
the buyer is high. If the buyer finds any defect
during flat viewing, he/she can specify in the
offer to purchase to instruct the seller to
rectify the problem before handover. If the
seller fails to do so, the buyer has the right to
seek compensation.
On the other hand, if a buyer purchases off-
plan from a project under construction, to thedeveloper, the buyer is only one of a few
hundred purchase parties. In this case, the
bargaining power of the buyer is low. If the
buyer finds any defect after collecting the key,
he/she can report to the developer and it is at
the discretion of the latter how it wants torectify the problem.
Although there is a one-year liability period
after project TOP for developers to fix all the
defects, in the past there are cases where
8/9/2019 Singapore Property Weekly Issue 209
6/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 5Back to Contents
the developer puts the blame on the
contractors and conveniently pass the
responsibility to them.
When developer defects become yours
For off-plan property buyers, they can only
pray that there is no major developer defect
when the developer hands over the new flats
to them.
If unfortunately, they turn out to be developer
defect victims like the Trivelis residents, they
can only cross their fingers that the developer
will take care of all the rectifying work so that
they don‟t have to dig into their own pocket.
For units bought for investment, owners may
choose to fix the defects themselves rather than waiting for the developer to take actions.
Time is money – the sooner they fix the
problems, the sooner they can rent out their
unit.
If the problem is minor, they may prefer not to
talk to the media for fear of affecting the value
of their property. Who will want to rent or buy
a second-hand unit from a project like
Trivelis?
Even if the owners decide to join together to
sue the developer, at most the court will order
the developer to fix the defects after they win
the case. There won‟t be any other form of
compensation for the owners. It is also likelyto end up to be a long battle that wastes time
and money.
Protection for buyers of uncompleted
projects
One reason why many first-time buyers like to
purchase off-plan properties is the flexibility of
the payment scheme. After putting down a
deposit at the sales gallery, buyers only need
to pay the down payment to exercise the
8/9/2019 Singapore Property Weekly Issue 209
7/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 6Back to Contents
option in 8 weeks‟ time. After that, they can
follow a payment plan according to the
building progress of the project.
Without the pressure to fork out a big lump
sum upfront, off-plan properties sound more
flexible and affordable to home buyers.
However, the biggest problem of buying off-
plan properties is „what you see is not what
you get‟. Misunderstandings and
misinterpretations often arise from picturesfor artists‟ impressions only and from the
unnoticeable fine print.
Except the 12-month defect liability period,
there is no law protecting the rights of home
buyers when they find sub-standard fittings,
furnishings, fixtures and building materials in
their new homes. There is also no fine
imposed on developers, builders and
contractors when they have unsafe structures
or fixtures in the project that may cause harm
or accidents to residents in the development.
In that sense, the terms of buying resale units
are much more favorable compared with
buying off-plan properties.By guest contributor Property Soul, a
successful property investor, blogger , and
author of the No B.S. Guide to Property
Investment.
SINGAPORE PROPERTY WEEKLY I 209
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/
8/9/2019 Singapore Property Weekly Issue 209
8/14
SINGAPORE PROPERTY WEEKLY Issue 209
Singapore Property This Week
Page | 7Back to Contents
Residential
P r o p er t y d e v el o p er s m a y b e c h a r g e d u p
t o $90m in ext ension f ees by end of year
From April to December this year, developers
may be charged up to $90 million in
extension fees for unsold condo units.
According to the Business Times, this
amount will be raised to $238 million in 2016
if current market conditions prevail. The large
increase in the extension charge is because
more projects received their temporary
occupation permit in 2014 as compared to
the previous year. Developers are given two
years to sell their projects. As such, more
developers may be incurring the extension
charges in 2016 than in 2015. Christine Li
from Cushman & Wakefield said that bulk
sales or project re-launches may be useful
strategies to help developers sell their unsold
units.
(Source: Business Times)
E C s i t e a t C h o a C h u K a n g l a u n c h e d f o r
t ender
Located at Choa Chu Kang, an executive
condominium site (EC) has been launched
for tender. The tender is expected to close onJune 30. The site is 4.9 hectares large and
has a 99-year lease. It may be developed
into 490 units according to HDB.
8/9/2019 Singapore Property Weekly Issue 209
9/14
8/9/2019 Singapore Property Weekly Issue 209
10/14
SINGAPORE PROPERTY WEEKLY Issue 209
8/9/2019 Singapore Property Weekly Issue 209
11/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 10Back to Contents
into four smaller plots of about 15,000 sq ft.
According to CBRE, from the start of the year
till April, 6 GCBs had changed hands. The
sales amounted to $125.82 million in total. In
2014, 28 transactions were made in the GCBarea, and that amounted to $626.14 million.
(Source: Business Times)
N ew r u l e s f o r s h o w u n i t s a n d s a l e s d a t a
Under the revised Housing Developers
(Control and Licensing) Act, developers will
have to provide detailed sales data on a
weekly basis and disclose the value of any
benefits to buyers in transaction documents.
According to MND, these new rules for
developers will provide more information to
prospective buyers of private residential
properties. Nicholas Mak from SLP
International said that not all developers are
thrilled by the changes as they may have to
redesign their show flats in order to comply
with the new regulations. Mak said that
developers may use optical tricks to make a
space look bigger. These tricks include the
use of the same tiles for the balcony and theliving room. With the new rules, developers
will have to submit a declaration. Not only so,
spot checks will be made to ensure that
developers have complied with the rules.
(Source: Business Times)
Commercial
C BR E: i nv es to r s c au t io u s o f t he h o tel
m a r k e t
Teo Junrong from CBRE Hotels said that
investors have become more cautious of thehotel market in the first quarter of this year. In
Q1 this year, the hotel market has attracted a
substantial amount of interest. However, only
one deal was recorded.
SINGAPORE PROPERTY WEEKLY Issue 209
8/9/2019 Singapore Property Weekly Issue 209
12/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 11Back to Contents
According to the Business Times, investors
are more cautious as the tourism industry has
been negatively affected by the strong
Singapore dollar. Room rates and occupancy
rates have also been affected by an increasein hotel room supply, said the Business
Times. According to the Business Times, the
average occupancy rate fell by 1 percent to
84 percent year-on-year in January and
February this year. The average room rate
also fell by 5 percent to $249. Despite the fallin occupancy rates, market experts believe
that the occupancy rate is still considerably
high.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 209
http://www.moneymatters.sg/
8/9/2019 Singapore Property Weekly Issue 209
13/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 12Back to Contents
Non-Landed Residential Resale Property Transactions for the Week of May 6 – May 12
Postal
District
Project NameArea
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
3 EMERALD PARK 947 1,020,000 1,077 99
4 REFLECTIONS AT KEPPEL BAY 2,616 4,500,000 1,720 99
4 CARIBBEAN AT KEPPEL BAY 1,227 1,845,000 1,504 99
5 THE STELLAR 947 1,255,000 1,325 FH
5 THE PARC CONDOMINIUM 1,421 1,850,000 1,302 FH
5 THE FOLIAGE 1,690 1,488,000 881 FH
5 VARSITY PARK CONDOMINIUM 2,271 1,880,000 828 99
5 FABER HILLS 1,668 1,350,000 809 FH
8 KERRISDALE 1,259 1,200,000 953 999 THE TRILLIUM 2,217 4,950,000 2,232 FH
9 WILKIE 80 431 820,000 1,904 FH
9 RESIDENCES @ KILLINEY 1,625 2 ,880,000 1,772 FH
9 CAIRNHILL PLAZA 2,852 3,800,000 1,332 FH
10 FOUR SEASONS PARK 3,821 10,500,000 2,748 FH
10 THE TRIZON 1,195 1,955,000 1,636 FH
10 WATERFALL GARDENS 2,196 3,388,000 1,543 FH
10 THE SIERRA 710 888,000 1,250 947
11 THE SHELFORD 1,227 2,200,000 1,793 FH
11 NEWTON 21 1,066 1,755,000 1,647 FH
11 NEWTON ONE 1,916 3,060,000 1,597 FH
12 TRELLIS TOWERS 1,485 1,890,000 1,272 FH
12 THE ARTE 1,528 1,825,000 1,194 FH
Postal
District
Project NameArea
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
14 DAKOTA RESIDENCES 1,313 1,880,000 1,432 99
14 VIENTO 452 600,000 1,327 FH
14 THE WATERINA 1,238 1,450,000 1,171 FH
14 THE SUNNY SPRING 1,001 1,000,000 999 FH
14 ASTORIA PARK 1,195 1,185,000 992 99
15 THE MAKENA 1,152 1,520,000 1,320 FH
15 WATER PLACE 904 1,130,000 1,250 99
15 COSTA RHU 1,647 2,020,000 1,227 99
15 SANCTUARY GREEN 1,572 1,710,000 1,088 9915 VERSAILLES 700 750,000 1,072 FH
15 SANCTUARY GREEN 1,572 1,680,000 1,069 99
16 CASA MERAH 1,249 1,350,000 1,081 99
16 EAST MEADOWS 1,378 1,280,000 929 99
16 BAYWATER 1,055 950,000 901 99
16 RIVIERA RESIDENCES 2,411 2,150,000 892 FH
16 TANAMERA CREST 1,163 938,000 807 99
17 FERRARIA PARK CONDOMINIUM 1,195 1,130,000 946 FH
17 DAHLIA PARK CONDOMINIUM 1,098 845,000 770 FH
17 ESTELLA GARDENS 1,507 1,120,000 743 FH
19 SUNGLADE 1,830 1,800,000 984 99
19 CHILTERN PARK 1,270 1,168,000 920 99
19 ROSALIA PARK 1,475 1,270,000 861 FH
SINGAPORE PROPERTY WEEKLY Issue 209
8/9/2019 Singapore Property Weekly Issue 209
14/14
SINGAPORE PROPERTY WEEKLY Issue 209
Page | 13Back to Contents
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
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
19 EVERGREEN PARK 1,173 855,000 729 99
19 EVERGREEN PARK 1,173 830,000 707 99
20 SEASONS VIEW 969 920,000 950 99
21 SUMMERHILL 1,948 2,088,800 1,072 FH21 MEADOWLODGE 1,206 1,138,000 944 99
21 THE HILLSIDE 1,528 1,350,000 883 FH
22 CASPIAN 1,238 1,300,000 1,050 99
22 LAKEHOLMZ 1,249 1,150,000 921 99
23 PARK NATURA 2,314 2,310,000 998 FH
23 THE LINEAR 1,227 1,080,000 880 999
23 PARKVIEW APARTMENTS 926 785,000 848 99
25 PARC ROSEWOOD 431 570,000 1,324 99
26 CASTLE GREEN 1,410 1,180,000 837 9927 CANBERRA RESIDENCES 883 818,000 927 99
27 THE SENSORIA 1,152 832,000 722 FH
http://propertymarketinsights.com/