Singapore Property Weekly Issue 22

8/3/2019 Singapore Property Weekly Issue 22

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Issue 22Copyright 2011 www.Propwise.sg. All Rights Reserved.
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CONTENTSp2 Singapore Property News This Week

p7 Overseas Property Investment Part Two:

Investment Considerations

p11 Resale Property Transactions (October 1 7)

p13Singapore Property Classifieds #12

Welcome to the 22th 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/http://www.propwise.sg/advertise/mailto:[email protected]


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SINGAPORE PROPERTY WEEKLY Issue 22

Singapore Property This Week

Page | 2Back to Contents

ResidentialNew projects by developers behind the

strong sales for private homes in

September

The new projects by developers in Outside

Central Region (where mass-market

developments are located), which includes

78.4% of the total 1,919 units and 81% of the1,631 units (excluding ECs) sold in the past

month, are behind the strong sales in the

private home market in September. Developers

sold 1,631 private homes excluding executive

condos (ECs) and 433 ECs, an increase of

20.7% and 49% from August. The increase inEC sales is likely due to the increase in income

ceiling for ECs. 2,064 units were sold in

September, including ECs, a month-on-month

increase of 25.8%. The launches in September

also accounted for the strong sales, with 2,493

private homes including ECs being released.

Government to release three land parcels

for private housing and one for EC

The four land parcels to be released in October

includes a 99-year leasehold plot on Alexandra

Road which can yield about 545 private

homes, two private housing sites at Bukit

Panjang and Punggol which can yield 35

landed homes and 540 apartments

respectively and an executive condominium

(EC) site in Sengkang which can yield 770

flats. The first (under the confirmed list of GLS)

was released on Oct 17 and the latter three

(the first two on the confirmed list and the last

on the reserve list) will be released on Oct 27.


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Land parcels on the confirmed list are sold

according to scheduled dates whereas those in

the reserve list will only be released if an

application with an acceptable minimum price

is submitted.

Dunearn Gardens, Newton Lodge, Dragon

Mansion and Faber Garden available en

bloc

Faber Garden which is zoned for residential

use and located near three MRT stations, St

Nicholas Girls School and Raffles Institution,

has a potential gross floor area of 958,748 sq

ft, including 10% balcony space. It is asking for

$830 million - $988 psf ppr based on maximum

gross floor ratio of 1.6 and a $31.2 million a

development charge.

Freehold Dunearn Gardens located near

Newton MRT station and the Central

Expressway (CTE) with a 33-storey potential,

lowered its asking price from $578.5 million to

between $550 million and $561 million. Given

its 95,442 sq ft land area and 2.8 maximum

plot ratio, it could cost between $2,180 and

$2,220 psf ppr including a $32 million

development charge.

39,176 sq ft freehold Dragon Mansion at 14

Spottiswoode Park Road near CBD has an

indicative price to between $132 million and

$142 million. The current $1,200 - $1,290 psfppr based on a maximum gross plot ratio of 2.8

from 2 plots of land (Dragon Mansion and a

substation) is lower than its previous asking

price of $1,340-1392 psf ppr.

21,409 sq ft Freehold Newton Lodge located at

41 Newton Road near Novena MRT andNovena Square is still asking for a $40 million

reserve price equivalent to $1,418 psf ppr,

based on a 1.4 gross plot ratio and a $2.5

million development charge.


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Khaw Boon Wan: Foreign buying of private

homes being monitored

In a response to MP Christopher de Souzasquestions on the foreign buying of private

homes in Singapore, National Development

Minister Khaw Boon Wan stated that while

over 80% of private homes available are

bought by Singaporeans and PRs, the

number of foreign purchases have increased

and that the government is monitoring the

situation and actions will be taken if

necessary. He also stated that the

government has tightened rules to control

foreign purchases. He also stated that the

foreign demand for private properties is not

the only factor for the increase in propertyprices; there are other factors such as the low

interest rate in play.

Commercial

Keppel Land sells 87.5% of Ocean

Financial Centre to K-Reit Asia at $1.57b

87.5% of recently developed 43-storey Ocean

Financial Centre (OFC) office building in

Raffles Place, with about 885,000 sqf of net

lettable area and a tenure of 999 years with

850 years remaining, is sold to K-Reit Asia at

$1.57 billion with a 99-year lease, meaningthat Keppel Land can regain OFC once the

lease ends. This price is equivalent to $2,600

psf including rental support of $170 million

and $2,400 psf without. OFC is 80% occupied

with average passing rent of about $9 psf per

month. K-Reit proposed a 17-for-20 rightsissue to raise $976.3 million, with the

remaining $602.6 million coming from new

debt.


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One miserly bid for Paya Lebars second

99-year leasehold commercial site

The only bid for the site (from a UOL Group-

Singapore Land equal joint venture) was$529.3 million or $565.74 psf ppr, 35% lower

than what the first site, which drew 10 bids,

sold for earlier this year. This is due to the

technical difficulties of developing the site and

restrictions on strata units and lots which

affects returns from leasing and rentals. The

project plan includes a retail podium and two

towers - one for a hotel, another for offices

(with a 20,000 sq ft floor plate) with a

40:15:45 ratio for office, hotel and retail

purposes. The site will likely be awarded since

the offer is fair, despite being low.

60-year-leasehold industrial site up for sale

The 230,636 sqft 60-year-leasehold industrial

site near Gambas Avenue and Woodlands Ave

with a 2.5 plot ratio and a maximum gross floor

area of 576,590 sq ft is zoned for Business 1

use. On the reserve list earlier, a developer

has committed at least $57 million, amounting

to $98.86 psf ppr. The tender will close at noon

on Nov 17.

Discussions held over KeyPoints sale

Talks are being held over the sale of KeyPoint

at Beach road after the expression of interest

exercise closed. The $283 million 5.0maximum plot ratio asset can be redeveloped

to a commercial and residential project with a

maximum gross floor area (GFA) of about

391,209 sq ft, where at least 60% of the GFA

must be reserved for residential use and 20-

40% is allowed for commercial use. The site

which has a remaining lease term of 63 years

had been granted an in-principle approval to

top-up the current lease with another 99-year

term.


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The developer of the site will have to pay

premiums to upgrade the lease and enhance

the sites use to include residential use.

Tanjong Pagars Orchid Hotel asks for$250m or above

272-room Orchid Hotel Singapore built on a

site with a remaining lease of 95 years is

asking for $250m or above, about $920,000

per room with vacant possession. This means

that hotel owner-operators or investors canacquire and rebrand it. The sale price

excludes the nine strata office units on the

second floor, which includes three larger units

which could be converted into function rooms

depending on approval from the authorities.

The total area of these units is about 10,600

sq ft. The site also includes 19 strata retail

units were sold earlier and are therefore not

included in the sale, and carpark lots in two

basement levels.

SINGAPORE PROPERTY WEEKLY I 22
http://www.propwise.sg/secretsofsingaporepropertygurus/


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Overseas Property Investment Part Two: Investment Considerations

In Part One, Overseas Property Investment:

What You Should Know Before You Buy, I

discussed a number of steps a new investor

can take to ensure they know what they are

getting into before committing to an overseas

property purchase. In Part Two, I will cover

additional factors a buyer should think of when

deciding what kind of property would be mostsuitable for their own individual circumstances.

1) Should You Go For Rental Yield or

Capital Gains?

One of the first questions that agents will ask

investors is whether they are looking for rentalyield or capital gains. Ideally, the perfect

property investment would perform well on

both fronts, yielding both high rents as well as

strong year-on-year capital appreciation.

SINGAPORE PROPERTY WEEKLY I 22


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However, the more common case is where a

property performs stronger in one area

compared to the other. For example,

Australian properties benefit from a strongrental demand, as a result of the gradual

increase in the number of immigrants into the

country. Australian properties also appeal to

the more risk-adverse investor, as property

prices downunder have been stable over the

last several years.

On the other hand, distressed properties in the

USA, currently on the market at prices more

than 30% lower compared to their values in

2007, are likely to enjoy strong capital gains in

the next 4 to 5 years.

An investor with a long-term investment

horizon, and who is able to hold on to their

investment for more than 1 or 2 years, should

do well with picking up bargain-priced property

for a song during an economic slump.

2) The Risks & Benefits of Over-

Leveraging

While famous investment gurus may

encourage investors to maximize their

leveraging capacity in order to quickly turn a

massive profit, a cautious investor would bear

in mind the possibility of prices falling even

further from the levels at which they bought

their properties, should a prolonged economic

downturn occur.

Given the uncertainty of economic markets,

investors must be prepared to hold on to their

properties longer than what they previouslyexpected, and be able to waitout the market



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until prices to rebound. Should the investor

not be able to make the mortgage payments

in the meantime, he would be forced to sell

his properties at a loss.Hence, cautious investors with limited

experience would be well advised to adhere to

the general guideline of making sure their

monthly mortgage payments do not exceed

28% of their gross income.

3) Off-Plan or Existing Property

As the majority of properties launched during

exhibitions in Singapore is off-plan, meaning

they will not be ready for move-in until 2 to 3

years down the road, investors have to look at

past trends, anticipate future demand, anddecide if government policy changes in the

pipeline will positively impact the value of the

property upon completion.

While off-plan has the obvious advantage of

being brand new, and may be sold at a lower

price during the launch to compensate for a

waiting period, investors should bear in mindthat the key drawback of off-plan investments

is that compared to completed properties,

there is zero rental income to be had during

the construction period. Investor funds also

become tied up for a number of years; and in

certain jurisdictions, off-plan property may not

be resold while construction is still

uncompleted.

4) Letting & Management Services

As an overseas investor would find it difficult

or impossible to make regular on-site visits

and manage their properties on their own,

they often hire a management company to

assist with drawing up rental contracts, rent

collection, responding to tenant calls, as well



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as the day-to-day business of maintaining a

property.

While letting and management fees inSingapore generally fall within the 5% to 8%

range, investors should be aware that these

fees can be much higher in overseas

countries. For example, it is not uncommon

for a property management company in the

USA or UK to charge 7% for letting fees and

an additional 8% for management fees,

making up a total of 15% of the rental a

landlord would expect to collect.

Hence, when calculating net income, it is

important to keep in mind that letting and

management fees, as well as unexpectedexpenses such as repair costs due to

vandalism, can take up a substantial portion

of the final net rental income receivable.

Given the sheer variety of overseas property

on offer, every investor should look at the

individual features of a property which they

are seriously considering, as well as their

appetite for risk, to determine if now would be

the right time for them to enter the overseas

property market. Singaporeans and PRs in

particular should also keep a close watch on

changes in government legislation which

currently prohibit HDB owners from acquiringoverseas property.

Harn Ho is a freelance journalist providing

professional services in Data Trend Analysis

and Economist Real Estate Insights.

mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Non-Landed Residential Resale Property Transactions for the Week of Oct 1 - 7

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE SAIL @ MARINA BAY 1,033 3,202,300 3,099 99

1 THE SAIL @ MARINA BAY 990 2,029,500 2,049 99

2 INTERNATIONAL PLAZA 1,604 1,550,000 966 99

3 THE METROPOLITAN CONDOMINIUM 1,076 1,550,000 1,440 99

3 THE METROPOLITAN CONDOMINIUM 1,356 1,762,800 1,300 99

3 EMERALD PARK 947 1,040,000 1,098 99

4 THE BERTH BY THE COVE 2,939 5,638,824 1,919 99

4 CARIBBEAN AT KEPPEL BAY 1,668 2,600,000 1,558 99

5 ONE-NORTH RESIDENCES 980 1,400,000 1,429 99

5 BOTANNIA 915 1,120,000 1,224 956

5 THE PARC CONDOMINIUM 1,216 1,380,000 1,135 FH

5 THE STELLAR 1,851 1,580,000 853 FH

5 WESTCOVE CONDOMINIUM 1,518 1,200,000 791 99

5 WEST BAY CONDOMINIUM 1,292 1,020,000 790 99

5 WESTCOVE CONDOMINIUM 1,098 830,000 756 99

7 SOUTHBANK 969 1,480,000 1,528 99

7 SUNSHINE PLAZA 1,109 1,405,000 1,267 99

8 CITYLIGHTS 560 1,020,000 1,822 99

8 PRISTINE HEIGHTS 732 970,000 1,325 FH

9 PATERSON SUITES 1,765 5,378,000 3,047 FH

9 RIVERGATE 1,841 3,956,000 2,149 FH

9 RIVERGATE 1,539 3,231,900 2,100 FH

9 URBANA 1,012 1,800,000 1,779 FH

9 PARC EMILY 549 970,000 1,767 FH

9 THE BAYRON 872 1,480,000 1,697 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

9 PARC MACKENZIE 850 1,243,800 1,463 FH

9 VILLE ROYALE 1,044 1,450,000 1,389 FH

9 EURO-ASIA COURT 1,658 2,300,000 1,388 FH

9 UE SQUARE 840 1,120,000 1,334 929

10 PARKVIEW ECLAT 2,895 9,300,000 3,212 FH

10 NASSIM MANSION 3,412 10,000,000 2,931 FH

10 ARDMORE II 2,024 5,360,950 2,649 FH

10 THE LADYHILL 3,520 7,600,000 2,159 FH

10 ST MARTIN'S APARTMENT 926 1,600,000 1,728 FH

10 THE TESSARINA 980 1,372,000 1,401 FH

10 TANGLIN REGENCY 1,421 1,810,000 1,274 99

11 SHELFORD SUITES 1,442 2,595,600 1,800 FH

11 NEWTON ONE 1,916 3,280,000 1,712 FH

11 NEWTON ONE 1,916 3,200,000 1,670 FH

11 THOMSON 800 1,399 1,800,000 1,286 FH

12 THE BELLEFORTE 1,432 1,568,000 1,095 FH

12 DE PARADISO 1,238 1,280,000 1,034 FH

12 M OONSTONE RESIDENCES 1,238 1,178,800 952 FH

12 AVA TOWERS 1,281 1,180,000 921 FH

14 SIMSVILLE 969 898,000 927 99

14 ATRIUM RESIDENCES 1,044 888,000 850 FH

14 CASA EMERALD 1,044 828,000 793 FH

14 BOUGAINVILLA APARTMENTS 1,152 810,000 703 FH

15 THE SEA VIEW 1,410 2,300,000 1,631 FH

15 THE SEA VIEW 1,647 2,680,088 1,627 FH



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Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

15 MEYER RESIDENCE 904 1,420,000 1,570 FH

15 PEBBLE BAY 1,894 2,600,000 1,372 99

15 PALMERA RESIDENCE 560 668,000 1,193 FH

15 SANCTUARY GREEN 1,141 1,235,000 1,082 99

15 PARK EAST 1,701 1,680,000 988 FH

15 THE ESPIRA 1,109 1,018,000 918 FH

15 THE GRANDIFLORA 1,087 980,000 901 FH

15 SIGLAP LODGE 1,292 1,101,000 852 FH

15 LEGENDA AT JOO CHIAT 1,238 980,000 792 99

15 CASTLE LOFT 1,173 870,000 742 FH

16 COSTA DEL SOL 1,324 1,820,000 1,375 99

16 THE SUMMIT 1,238 1,190,000 961 FH

16 THE BAYCOURT 1,206 1,122,000 931 FH

16 BAYSHORE PARK 936 850,000 908 9916 BAYSHORE PARK 1,076 880,000 818 99

16 BEDOK COURT 1,195 845,000 707 99

17 FERRARIA PARK CONDOMINIUM 883 880,000 997 FH

17 BALLOTA PARK CONDOMINIUM 1,679 960,000 572 FH

18 EASTPOINT GREEN 958 880,000 919 99

18 EASTPOINT GREEN 969 845,000 872 99

18 CHANGI RISE CONDOMINIUM 1,130 925,000 818 99

18 EASTPOINT GREEN 1,141 900,000 789 99

19 THE CHUAN 1,367 1,850,000 1,353 99919 MINT RESIDENCES @ JANSEN 936 1,020,000 1,089 999

19 KOVAN MELODY 1,442 1,410,000 978 99

19 HOUGANG GREEN 764 630,000 824 99

19 REGENTVILLE 1,152 880,000 764 99

19 EVERGREEN PARK 1,367 980,000 717 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

20 GOLDENHILL PARK CONDOMINIUM 1,335 1,635,000 1,225 FH

20 CLOVER BY THE PARK 1,744 1,900,000 1,090 99

20 THE GARDENS AT BISHAN 1,227 1,186,000 967 99

20 BISHAN POINT 2,626 2,350,000 895 99

21 SPRINGDALE CONDOMINIUM 1,119 1,150,000 1 ,027 999

21 CHARISMA VIEW 1,496 1,428,000 954 FH

21 GOODLUCK GARDEN 1,130 1,060,000 938 FH

21 SHERWOOD TOWER 786 575,000 732 99

23 THE JADE 1,475 1,400,000 949 99

23 YEWTEE RESIDENCES 1,421 1,320,000 929 99

23 HILLBROOKS 1,066 980,000 920 FH

23 HILLVIEW HEIGHTS 980 888,000 907 FH

23 HILLVIEW REGENCY 1,119 920,000 822 99

23 PARKVIEW APARTMENTS 1,119 830,000 741 9923 PARKVIEW APARTMENTS 1,130 820,000 726 99

26 BULLION PARK 1,238 1,230,000 994 FH

26 BULLION PARK 807 800,000 991 FH

26 BULLION PARK 1,873 1,545,000 825 FH

26 CASTLE GREEN 947 765,000 808 99

27 YISHUN EMERALD 1,195 800,000 670 99

28 SELETAR SPRINGS CONDOMINIUM 1,582 1,200,000 758 99

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.



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Singapore Property Classifieds #12

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.

For Sale

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