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CONTENTS p2 Singapore Property News This Week
p6 Recent Trends in the Singapore
Property Market
p11 Resale Property Transactions (October 8 – 14)
p13 Singapore Property Classifieds #13
Welcome to the 23th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 23
Singapore Property This Week
Page | 2 Back to Contents
Residential
EL Development launches DBSS project
Trivelis with high indicative pricing
888-unit Trivelis, developed under the Design,
Build and Sell Scheme (DBSS) at Clementi
Ave 4, consists of three 40-storey towers with
three-room to five-room flats, with more than
50 % being four-room flats. Prices of three-
room flats (646 sqft), four-room units (861 sqft
to 883 sqft) and five-room flats (1,130 sqft) will
range from $375,000 to $470,000, $530,000 to
$650,000 and$658,000 to $770,000
respectively. This is higher than the price of
resale flats, and rather close to executive
condominium (EC) prices. This may be due to
its location (proximity to MRT station and
schools), its height, the lack of competitors in
the area and the high demand in the HDB
market.
99-year leasehold Yishun EC site draws
$213.8m top bid.
MCC Land (Singapore) offered a top bid of
$213.78 million or $292.57psfppr for the
292,277.6 sqft site with a 730,693.9 sqft gross
floor area (GFA) and a 2.5maximum
permissible gross plot ratio at Yishun Avenue
7/ Canberra Drive, beating out seven other
bids. Just 4% above the $281 psfpprfor The
Canopy EC site located at Yishun Avenue 11,
the bid was reasonable and within market
expectations. Breakeven cost is estimated to
be around $600 psf, similar to the prices for
The Canopy.
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 3 Back to Contents
Commercial
JLL’s study: Property investors turn their
attention to the industrial sector
Jones Lang LaSalle's study of URA Realis
caveats data shows that investors with an
under-$1.5 million budget have turned their
attention to industrial sector. The private
residential sector's share of caveats fell from
96.6% in Q2 2009 to 87.2% in Q3 2011 while
the caveats of strata private industrial units,
strata offices and strata retail increased from
2.2% to 8.8%, 0.4% to 1.4% and 0.8%to 2.6%
respectively. The increase may be even larger
if the size of the units is included in the data.
This increase is due to government measures
to cool the housing market as well as the
higher yields for industrial property. In
particular, the investors are drawn to smaller
units in industrial projects with affordable
prices and promises of high yields.
Two 999-year leasehold adjacent buildings
at Phillip Street sold to Royal Group.
Royal Grouphas bought two 999-year
leaseholds adjacent office blocks at 1 and 3
Phillip Street for nearly $283 million with an
average price about $2,350 psfbased on their
total net lettable area of about 120,000 sq ft. 1
and 3 Phillip Street are a 16-storey building
with 36,194 sqft net lettable area (NLA) and
a19-storey office block with 82,160 sqft NLA
respectively. The new corporate headquarters
for Royal Group will move to the latter, moving
out from the Royal Brothers Building, where
Royal Group’s 50% share of the total net
lettable area of around 59,000 sqft was sold at
a price of $3,050 psf.
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 4 Back to Contents
The two adjacent blocks at Phillip Street are
likely to be redeveloped into a single project
with a larger floor plate.
In the market: Freehold 21-storey Robinson
Point
An expressions of interest (EOI) exercise is
being conducted for the freehold 14-year old
21-storeyRobinson Point with a total net
lettable area (NLA) of 133,214 sqft. Having
been redeveloped to its maximum potential, it
has a gross floor area of 169,250 sqft, a plot
ratio of 11.2 on the 15,111 sqft land area. It is
95% occupied and has 57 car park lots on the
third to fifth levels. The price is expected to
range around of $306.4 million to $313.1
million. The asset could either remain in its
present form or be strata-titled or converted to
hotel use, subject to approvals from the
authorities. The EOI will close on Nov 18.
Ex-Ogilvy Centre to become Sofitel
Singapore in early 2013
The first Sofitel hotel in Singapore is set to
open in early 2013 with 135 rooms and suites
where the Ogilvy Centre used to be- a
landmark conservation property opposite Lau
Pa Sat. The existing four-storey conservation
building will stay, with the rear part being
redeveloped into a new five-storey extension.
The room sizes will range from 258 to 1,507
sqft, with a 70:30 ratio of suites (including loft
suites) to regular rooms with a blended
average daily room rate of $300. Royal Group
Holdings invested $130 million in the asset,
including the $86 million it paid for the site and
signed a 20-years management contract with
Sofitel Luxury Hotels under the Accor Group.
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 5 Back to Contents
50% of Robinson Land sold to an offshore
fund
The partnership between Buxani Group and
offshore investors advised by Capital
Management Group sold a half-stake in
Robinson Land Pte Ltd to an offshore fund
controlled by a few high net worth individuals ,
retaining the other half. It has only one asset
under its name - 12-storey freehold Finexis
Buildingat 108 Robinson Road. The sale was
based on the Finexis Building’s latest
valuation of $110 million, about $2,043 per
square foot on its total strata area of 53,830
sq ft.It is more than 82%occupied and does
not have any immediate redevelopment
potential, its gross floor area of 64,766
sqfthaving exceeded the 11.2 maximum plot
ratio for the site. The net yield based on the
$110 million valuation is around 2.9% if the
building is fully occupied, given the average
monthly passing rental of $5.60 psf.
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 6 Back to Contents
Worrying Trends in the Singapore Property Market
By Mr. Propwise
I’ve noticed some interesting and worrying
trends in the Singapore property market that
I’d like to share with you, and also delve into
what they mean for the property investor and
own-stay home buyer.
1. HDB prices are rising faster than private
property prices
Last week the URA reported that the private
residential price index grew 1.3% in the 3rd
quarter of 2011. Contrast this with the HDB’s
Resale Price Index (RPI), which rose 3.8%
from the previous quarter.
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 7 Back to Contents
This increase in HDB prices is despite the
23,800 new units the HDB has pushed out in
the first three quarters. The impact was not felt
on prices but in the transaction volume for
resale flats, which fell 10% to 5,903 units in the
3rd quarter from 6,581 units in the 2nd quarter.
The HDB will launch another 4,200 BTO flats in
November, bringing the total number of flats
launched this year to 28,000. And don’t forget
that there is another 25,000 BTO flats to be
launched next year.
The puzzling thing for many is how the prices
of HDB flats are still rising despite the large
amount of supply being pushed out. A case in
point is the 888-unit Trivelis in Clementi, which
is being developed under the Design, Build
and Sell Scheme (DBSS). Prices of the 646
sqft three-room flat units ($375,000 to
$470,000), 861-883 sqft four-room flat units
($530,000 to $650,000) and 1,130 sqft five-
room flats ($658,000 to $770,000) are more
expensive than the surrounding resale flat
prices!
2. Private home buyers are in a cautious
mood, especially in the high end segment
The PPI’s 1.3% increase is the 8th consecutive
quarter of slowing growth, which many market
observers attribute to both demand (growing
uncertainty in global economic situation) and
supply (government ramping up supply of
public housing) factors.
Regardless of the cause, buyers are becoming
increasingly cautious, especially in the high
end segment. The URA reported a price
increase in non-landed properties in the Core
Central Region (CCR) of just 0.7%, and a fall
in transaction volume of 61% on a quarter-on-
quarter basis.
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 8 Back to Contents
Given the upcoming launches in the 4th
quarter, many analysts expect a fall in the take-
up rate even if prices remain stable. So it’s
clear that the market is cooling down. The
million dollar question is – will prices fall?
3. Developers are turning cautious too
In the latest survey conducted by the National
University of Singapore and the Real Estate
Developers’ Association of Singapore
(READAS), the Current Sentiment Index for
property developers dropped from 4.6 in the
2nd quarter to 3.6 in the 3rd quarter, while the
Future Sentiment Index dropped from 4.4 in
the 2nd quarter to 3.4 in the 3rd quarter. This
dragged the Composite Sentiment Index down
from 4.5 to 3.5 respectively.
Developers also turned cautious on the office
segment as shown by the future net balance
(the difference between respondents who
believe the office segment will do better and
those who think it will do worse), which staged
a dramatic turnaround from +42% in the 2nd
quarter to -57% in the 3rd quarter. This was
attributed to weakening demand from the
banking and financial services industry, which
in general is having a tough time this year with
weak markets and trading volumes.
Interestingly, 56% of developers expect prices
to remain unchanged while 37% predict a
moderate decline. The percentage of
developers expecting a decline more than
doubled from 17% in the previous quarter.
4. Investors are going into industrial and
commercial properties
Jones Lang LaSalle’s study of URA Realis
caveat data shows that investors
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 9 Back to Contents
with a sub-$1.5 million budget are moving
away from residential properties into
commercial and retail properties. The private
residential sector’s share of caveats fell from
96.6% in 2nd quarter 2009 to 87.2% in 3rd
quarter 2011. Investors have both been driven
by push (government measures to cool the
residential market including the harsh stamp
duty) and pull (higher yields for these
properties) factors.
In particular, small industrial units with low
prices and PROMISES of higher yields are
very popular with investors. Have they thought
about what the real rental demand is going to
be once these units are completed? What sort
of businesses will be renting them?
My take on what these trends mean
All in all I believe that these trends are
worrying. Middle income families are rushing
to buy high-priced HDB flats and mass market
residential properties and small-time investors
are snapping up “shoebox” industrial units
with a fairly ambiguous rental market. At the
same time the wealthy and developers (the
“insiders”) are turning cautious on the market,
and the weakening global economic situation
means that the yields of the industrial and
commercial properties could be at risk. Which
group do you think has a better grasp of what
is going on in the market?
I caution all investors to study the market
carefully before committing your hard earned
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 10 Back to Contents
I caution all investors to study the market
carefully before committing your hard earned
cash and credit to a property investment.
Make sure you know what you’re buying and
if you are expecting a yield, to do your due
diligence on what the real rental demand for
your property will be. If you’re buying for your
own stay, don’t just rush into the next new
launch and be impressed by the designer
showflats. If you spend a bit of time and
effort looking around in the same area, you
could find real “bargains” at 20% to 40% off
the price of a new flat.
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 11 Back to Contents
Non-Landed Residential Resale Property Transactions for the Week of Oct 8 - 14
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
2 ICON 581 1,080,000 1,858 99
3 QUEENS 1,184 1,300,000 1,098 99
3 EMERALD PARK 1,173 1,280,000 1,091 99
3 EMERALD PARK 1,163 1,208,000 1,039 99
4 CARIBBEAN AT KEPPEL BAY 1,206 1,928,000 1,599 99
4 CARIBBEAN AT KEPPEL BAY 1,485 2,060,000 1,387 99
5 HERITAGE VIEW 1,163 1,270,000 1,092 99
5 BOTANNIA 1,281 1,388,000 1,084 956
5 DOVER PARKVIEW 1,249 1,150,000 921 99
5 DOVER PARKVIEW 1,249 1,150,000 921 99
5 WESTCOVE CONDOMINIUM 1,119 930,000 831 99
8 CITYLIGHTS 1,356 1,740,000 1,283 99
9 CAIRNHILL CREST 818 1,750,000 2,139 FH
9 CAIRNHILL RESIDENCES 1,163 2,360,890 2,031 FH
9 MIRAGE TOWER 1,496 2,330,000 1,557 FH
9 CAIRNHILL HEIGHTS 1,281 1,750,000 1,366 FH
9 UE SQUARE 1,572 2,050,000 1,304 929
10 ST MARTIN RESIDENCE 592 1,360,000 2,297 FH
10 THE ORANGE GROVE 2,691 5,800,000 2,155 FH
10 THE FORD @ HOLLAND 614 1,100,000 1,793 FH
10 MONTVIEW 1,507 2,320,780 1,540 FH
10 VALLEY PARK 1,808 2,500,000 1,382 999
10 TANGLIN REGENCY 980 1,260,000 1,286 99
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
10 RIDGEWOOD 1,744 1,950,000 1,118 999
11 HILLCREST PARK 1,152 1,500,000 1,302 FH
11 THOMSON 800 1,625 1,980,000 1,218 FH
11 AMANINDA 2,842 2,900,000 1,021 FH
11 HILLCREST ARCADIA 1,711 1,547,500 904 99
12 TRELLIS TOWERS 1,647 1,780,000 1,081 FH
12 SUNVILLE 1,755 1,420,000 809 FH
13 THE SCENIC @ BRADDELL 452 590,000 1,305 FH
14 DAKOTA RESIDENCES 1,830 2,425,000 1,325 99
14 SIMSVILLE 969 852,000 879 99
14 ESCADA VIEW 775 677,700 874 FH
14 FUYUEN COURT 1,163 880,000 757 FH
14 CANBERLIN LODGE 1,152 800,000 695 FH
15 ONE AMBER 1,389 2,055,720 1,480 FH
15 THE SEA VIEW 1,216 1,740,000 1,431 FH
15 THE WATERSIDE 2,400 3,224,000 1,343 FH
15 SANCTUARY GREEN 786 1,000,000 1,273 99
15 COSTA RHU 1,970 2,255,650 1,145 99
15 THE MAKENA 1,636 1,850,000 1,131 FH
15 SANTA FE MANSIONS 1,163 1,300,000 1,118 FH
15 TANJONG RIA CONDOMINIUM 1,302 1,400,000 1,075 99
15 FINLAND GARDENS 1,722 1,780,000 1,034 FH
15 MARTIA 8 1,259 1,280,000 1,016 FH
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 12 Back 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 PARK EAST 2,024 1,970,000 973 FH
15 ONE @ PULASAN 1,087 1,024,000 942 FH
16 THE DAFFODIL 689 692,800 1,006 FH
16 EAST MEADOWS 1,216 1,110,000 913 99
16 BAYSHORE PARK 2,196 1,940,000 883 99
16 TANAMERA CREST 1,173 900,000 767 99
16 TANAMERA CREST 1,604 1,145,000 714 99
16 TANAMERA CREST 1,184 840,000 709 99
17 WATERCREST 1,302 1,048,000 805 999
17 WATERCREST 1,302 1,030,000 791 999
17 BALLOTA PARK CONDOMINIUM 1,701 1,122,000 660 FH
18 MODENA 1,410 1,269,000 900 99
18 EASTPOINT GREEN 1,130 940,000 832 99
18 MELVILLE PARK 1,206 845,000 701 99
18 MELVILLE PARK 1,475 988,000 670 99
19 GLASGOW RESIDENCE 409 600,000 1,467 999
19 COMPASS HEIGHTS 1,324 1,285,000 971 99
19 RIO VISTA 1,055 830,000 787 99
19 REGENTVILLE 1,152 855,000 742 99
20 LAKEVIEW ESTATE 1,615 1,240,000 768 99
21 GARDENVISTA 1,173 1,320,000 1,125 99
21 SPRINGDALE CONDOMINIUM 1,130 1,100,000 973 999
21 SHERWOOD CONDOMINIUM 904 845,000 935 FH
21 SUMMERHILL 1,604 1,480,000 923 FH
21 SOUTHAVEN II 1,539 1,400,000 910 999
21 SOUTHAVEN I 1,313 1,090,000 830 99
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
22 THE LAKESHORE 872 840,000 963 99
22 PARC OASIS 1,227 940,000 766 99
22 LAKESIDE APARTMENTS 1,518 835,000 550 99
23 THE MADEIRA 1,249 1,000,000 801 99
23 REGENT HEIGHTS 1,163 870,000 748 99
23 REGENT GROVE 1,163 805,888 693 99
23 THE MADEIRA 3,046 1,880,000 617 99
26 SEASONS PARK 1,690 1,138,000 673 99
SINGAPORE PROPERTY WEEKLY Issue 23
Page | 13 Back to Contents
Summerhill Condo, 3BR. Beautifully
furnished. New furniture, appliances, 42"
TV & electric piano. Don't miss, contact
Andrew Chee 82887632
For Rent
Singapore Property Classifieds #13
For Sale
Bliss Residences @ Kembangan. FH
1500+sf 3+1BR Penthouse. Only
$1000psf. 1 min to MRT, 15 min to CBD.
Rooftop pool and BBQ. TK Tan 98206228.