Singapore Property Weekly Issue 250

8/20/2019 Singapore Property Weekly Issue 250

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Issue 250Copyright © 2011-2016 www.propwise.sg. All Rights Reserved.

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CONTENTS

p2 How Buyers Get Squeezed like

Lemons by Developers

p6 Singapore Property News This Week

p10 Resale Property Transactions

(February 20 – February 26)

Welcome to the 250th edition of the

Singapore Property Weekly .

Hope you like it!

Mr. Propwise

FROM THE

EDITOR

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SINGAPORE PROPERTY WEEKLY Issue 250

Page | 2Back to Contents

By Gerald Tay (guest contributor)

In a far, far away land, there’s a town called

Lemon Tree. In Lemon Tree, you open a stall

selling lemons. Your cost of each lemon is $1.

If you sell a whole lemon for $1.50, your gross revenue is $1.50 and gross profit is

$0.50 per lemon. Nothing to boast about.

Getting more profits by selling slices

You wisely decide there’ll be better profits

selling by the slice than a whole lemon.

Therefore, you slice the lemons into 6 slices

and sell each slice for $0.50 each.

How Buyers Get Squeezed like Lemons by Developers


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This has effectively increase your gross

revenue from $1.50 to $3. Your gross profit

has gone up from $0.50 to $2. Now, we’re

talking…

Later, you realise the lemon can be sliced

further into 10 slices instead of six and if you

lower the selling price to $0.40 per slice, you’ll

make $4 revenue and $3 profit. Wow!

But wait…

In each instance of price inflation people paid

exorbitant amounts for lemons and lemon

slices that shouldn’t have been worth

anything like the going price.

The cost of a lemon rose from $1 to $1.50.

This time, 10 lemon slices will give a lower profit of $2.50 instead of $3 the last time.

There were fewer buyers to sell to and

smaller profit margins to be made.

You have to do creative selling to boost

flagging profits.

Instead of 10 slices, you decide to slice the

lemon into 20 slices and sell at a lower sellingprice of $0.30 per slice to entice more buyers.

Doing this will give $6 revenue and a gross

profit of $4.50. People are now calling you a

business sage!

For buyers, the quantum price of a lemon

slice may have gone down 40% (from $0.50to $0.30) but the size of each lemon slice has

also shrunk 70%!

It’s no longer a lemon slice. It’s bits and

pieces of a lemon.

Throw in some discounts and hype

Offer an 8% discount to sweeten the deal.

Create a ton of hype marketing for your

lemon slice and watch the buyers flow in!


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A $0.30 lemon slice is “sweetened” to $0.276.

Your gross revenue is $5.52 with a gross

profit of $4.02 for 20 slices. Hey look! This is

more profitable than selling 10 slices at $0.40

each!

Simply put, prices today in Lemon Tree are

set artificially low for a bigger mass market of

“financially-impaired” lemonade drinkers

eager to own an exclusive slice of lemon.

An allegory for how the world works today

It’s a perfect example of how the world and

the economy operate. The fools work, slave

and buy garbage, while the so-called winners

enjoy “the good life.”

It all starts at a subconscious level. Theyshow us something we want and charge us a

lot only to get a small piece of it. The best

marketers are those who know very well what

the people need and want, but instead of

giving it to them in its true form – they sell

garbage.

Just like how developers are cashing in on $1

million or under properties today. They knowthey can't sell high quantum units in the

current market.

One of the oldest tricks in the developer’s

book

One of the oldest tricks real estate developers

use is squeezing a piece of land to its

maximum allowable plot ratio for optimal

economic profit (theirs, not yours).

It’s not uncommon to see today's 3-bedroom

properties built with less than 1,000 square

feet and costing less than a $1 million pricequantum. It's also not uncommon to see less

than 500 square feet properties selling like

hot cakes either.


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They give the marginal buyer just enough

affordability to own a private property.

This technique increases the profit of the

developer significantly, and as you already

know, property showrooms are "The Greatest

Manipulation" of this world – you never know

how the end product will turn out to be when

you buy it.

Why I only buy resale properties of

meaningful sizes

That's the primary reason all of my successful

purchases over the last 15 years or personal

purchases are of resale properties of

meaningful sizes.

While a smaller price quantum won’t hurt younearly as much as a bigger price quantum,

it’s still a "scam" as the real value is much

less than the promised worth. In this case,

buyers bought a lemon (slice) and they don't

know it.

It makes you wonder why today's property

buyers still fall for the oldest marketing trick in

the world.

By guest contributor Gerald Tay, who is the

founder and coach at CREI Academy Group

Pte Ltd , an organization dedicated to

empowering retail property investors with

smarter investing philosophy and strategies.

He is a full-time investor with over 13 years of

solid experience in building his wealth

through Property Investment and is financially

wealthy today.

http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/


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Singapore Property This Week


Residential

Prices of non-landed private homes up by

0.1% month-on-month in Jan

Based on flash estimates by the National

University of Singapore for the Singapore

Residential Price Index (SRP), there was a0.1% month-on-month increase in prices of

completed non-landed private homes in

January from the previous month. This price

increase was led by small units and units in

the non-central region. In January, the

estimates were made based on a revisedbasket that consists of 574 private residential

projects. This was an increase from the 429

projects that were included previously. To

reflect changes in the completed privatehousing stock, the composition of the basket

is adjusted every two years. For the revised

basket with December 2015 as the base

year, prices of small units of 47 sqm or less

increased by 0.5% month-on-month. Price of

units in the non-central region, excludingsmall units had increased by 0.5% during the

same period. However, prices of units in the

central region had fallen by 0.5% in January,

after a 0.8% drop in December. Eugene Lim

from ERA Realty said that residential

purchases in the central region took a harder hit than non-central apartments due to

market volatility and the economic downturn,

SINGAPORE PROPERTY WEEKLY I 250


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as non-central apartments tend to draw more

owner-occupiers than investors.

(Source: Business Times)

HDB resale prices increase by 0.2% in Feb

According to the Business Times, resale

prices may be stabilizing for HDB resale flats

as prices have increased by 0.2% month-on-

month in February. This increase was seen in

both mature and non-mature estates. Year-

on-year, HDB resale prices are still 0.6%

lower than a year ago and 10.9% lower than

in April 2013. ERA Realty’s Eugene Lim said

that the recent increase in prices could

indicate that prices have bottomed out.

However, this does not mean that the market

has fully recovered or that sellers should up

their prices, he said. Ong Kah Seng from

R’ST Research agreed that HDB resale

prices have yet to stabilize entirely. He added

that buyers are unlikely to accede to higher

asking prices as cooling measures such as

the mortgage servicing ratio have not yet

been eased. For buyers that cannot wait for

BTO flats to be completed or do not qualify tobuy BTO flats, Lim believes that these buyers

will turn to the HDB resale market. As such,

he expects resale volumes in March to

increase.

(Source: Business Times)Wandervale EC set at average price of

$755 psf

Wandervale, the first EC to be launched this

year, will be selling at an average price of

$755 psf. Prices will begin from $655,000 for

a three-bedroom unit to $753,000 for a three-

bedroom premium unit and $896,000 for a

four-bedroom unit. Since its e-application

period ended, the development was

SINGAPORE PROPERTY WEEKLY I 250


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oversubscribed by 1.47 times. A total of 783

e-applications were made while only 534

units were available. Located at Choa Chu

Kang, the 99-year leasehold development is

expected to receive its Temporary OccupationPermit by 2019. The development will consist

of 130 three-bedders, 322 three-bedroom

premium units and 82 four-bedders that range

from 958 to 1,249 sq ft.

(Source: Business TImes)Commercial

Mixed sentiments seen for retail property

market

Market experts expect sentiment in the retail

property market to remain mixed this year asprime retail rents are expected to fall on the

whole. Nonetheless, in the regional centres,

prime rents are expected to remain resilient.

In Q4 last year, several retailers have

reported falling profits with some closing

down. Yet, several other major flagship stores

have been opened by foreign retailers during

that period. This included Hong Kong-basedPedder Group which opened an outlet at

Scotts Square last October and French label

Maje which opened a store at Marina Bay

Sands. In Q4 last year, the Orchard Road

micro-market experienced the steepest fall in

rents among retail submarkets as the average

monthly gross rent for ground-floor shop

spaces fell by 1.2% quarter-on-quarter to

$34.40 psf. Year-on-year, rents were down by

4.9% in 2015, which was higher than the

0.8% fall that was recorded in 2014. However,

due to a ready population catchment, the

average monthly gross rent of ground-floor

space in the regional centres maintained for 3

quarters at $33.94 in Q4 2015.


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Non-Landed Residential Resale Property Transactions for the Week of Feb 20 Feb 26

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

2 CRAIG PLACE 570 970,000 1,700 993 ALEXIS 388 725,000 1,871 FH

3 REGENCY SUITES 1,421 2,350,000 1,654 FH

4 CARIBBEAN AT KEPPEL BAY 840 1,490,000 1,775 99

4 CARIBBEAN AT KEPPEL BAY 1,647 2,240,000 1,360 99

4 MOUNT FABER LODGE 2,454 3,150,000 1,284 FH

4 THE INTERLACE 3,735 3,030,000 811 99

5 THE GRANDHILL 1,830 1,880,000 1,027 FH

9 URBAN RESORT CONDOMINIUM 4,715 8,500,000 1,803 FH

9 ASTORIA APARTMENTS 700 1,205,000 1,722 FH

9 MACKENZIE 88 452 750,000 1,659 FH

9 WATERMARK ROBERTSON QUAY 1,733 2,680,000 1,546 FH

9 THE REGALIA 1,216 1,760,000 1,447 FH

9 WHARTON VALE 624 861,000 1,379 FH

9 8 @ MOUNT SOPHIA 1,550 1,788,000 1,154 103

10 ST REGIS RESIDENCES SINGAPORE 5,543 15,000,000 2,706 999

10 GLENTREES 1,991 2,450,000 1,230 999

11 PARK INFINIA AT WEE NAM 1,001 1,801,800 1,800 FH

11 1 MOULMEIN RISE 1,259 1,950,000 1,548 FH

11 NINETEEN SHELFORD ROAD 1,722 2,020,000 1,173 FH

12 TREVISTA 1,281 1,550,000 1,210 99

13 AVON PARK 1,711 2,020,000 1,180 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

14 LA FLEUR 409 550,000 1,345 FH14 THE LATTIZ 1,249 1,365,000 1,093 FH

14 THE TRUMPS 1,421 1,340,000 943 99

14 THE HELICONIA 1,335 1,200,000 899 FH

14 D' CASITA 1,647 1,380,000 838 FH

15 THE ESTA 1,345 1,900,000 1,412 FH

15 THE MAKENA 1,152 1,480,000 1,285 FH

15 FERNWOOD TOWERS 1,636 1,630,000 996 FH

15 AXIS @ SIGLAP 1,572 1,330,000 846 FH

15 VILLA MARINA 2,024 1,650,000 815 99

16 COSTA DEL SOL 1,238 1,600,000 1,293 99

16 COSTA DEL SOL 1,313 1,550,000 1,180 99

16 COSTA DEL SOL 1,313 1,450,000 1,104 99

16 BAYSHORE PARK 936 972,000 1,038 99

16 BAYSHORE PARK 1,292 1,200,000 929 99

16 CHANGI GREEN 872 810,000 929 FH

16 THE BAYSHORE 947 815,000 860 99

17 LOYANG VALLEY 1,485 950,000 640 99

18 NV RESIDENCES 1,453 1,350,000 929 99

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

18 THE TROPICA 990 800,000 808 99

19 THE SCALA 1,044 1,410,000 1,350 99



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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 purchaser

signs an OTP, hence the lagged nature of the data.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

19 SUNGLADE 1,238 1,300,000 1,050 99

19 THE MINTON 1,173 1,050,000 895 99

19 FRAGRANT GARDENS 1,496 1,102,000 737 FH

20 BISHAN 8 1,173 1,300,000 1,108 99

20 THE GARDENS AT BISHAN 1,227 1,280,000 1,043 99

20 SEASONS VIEW 2,745 2,400,000 874 99

21 THE CASCADIA 1,496 2,505,000 1,674 FH

21 FLORIDIAN 1,851 3,080,000 1,664 FH

21 LE WOOD 1,141 1,000,000 876 99

22 THE CENTRIS 1,292 1,340,000 1,037 99

23 FORESQUE RESIDENCES 463 605,000 1,307 99

23 GLENDALE PARK 1,313 1,300,000 990 FH

23 NORTHVALE 3,197 1,580,000 494 9925 PARC ROSEWOOD 431 565,000 1,312 99

25 PARC ROSEWOOD 431 550,000 1,277 99

27 YISHUN EMERALD 1,539 960,000 624 99
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