Singapore Property Weekly Issue 37

8/3/2019 Singapore Property Weekly Issue 37

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Issue 37Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTSp2 Singapore Property News This Week

p11How Will Singapore Property Fare in

the Year of the Dragon?

p16Resale Property Transactions(January 14 January 20)

p17Singapore Property Classifieds #25

Welcome to the 37th 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]


3/18

SINGAPORE PROPERTY WEEKLY Issue 37

Singapore Property This Week

Page | 2Back to Contents

ResidentialStrong sales at Parc Rosewood

99-year leasehold five-storey 689-unit Parc

Rosewood located along Woodlands Avenue

2/Rosewood Drive had sold 165 of its 236

released units. A good 120 of them (mainlyone- and two-bedroom units with a few three-

bedroom units and penthouses) were sold

during the first four hours of the preview

launch, and this may be due in part to its

lower price tag of $925-998 psf, 8-10%

lowered than that of recent transactions($1,030-1,100 psf). This is likely made in

anticipation of effects from the ABSD. With

the lower price tag, a one-bedroom unit start

from around $398,000, a two-bedroom unitfrom $568,000, and a three-bedroom unit

from $778,000.

2011 saw an increase in prices for small

apartments by 11.8%

In flash estimate figures released by theNational University of Singapore for its

Singapore Residential Price Index (SRPI)

series, it was shown that prices of small

apartments, defined as units up to 506 sq ft,

increased by 11.8% in2011. Prices for

apartments, other than small apartments,located in Non-Central Region increased by

11.7%, twice as fast as prices for those

located in Central Region, which had


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increased by 5.7%. The overall SRPI rose by

9.2% for the year of 2011, lower than that in

2010, which had an 11.7% increase. Between

November and December 2011, only the

prices for small apartments increased (by

3.4%) while prices of large Central and Non-

Central regions decreased by 0.4% and 1%

respectively.

Two freehold residential sites at Balestier

up for collective sale

Both sites, one located along 2 to 16 (even

numbers only) Kim Keat Lane, another along

1 to 19, 21 and 23 Kim Keat Close, have a

2.8 gross plot ratio and can be built up to a

maximum of 36 storeys.

One site can be amalgamated with a 1,439 sq

ft adjoining state land to form a plot with a

74,151 sq ft GFA which can potentially yield

88 800sq ft residential units. This site is

asking for $68 million or $940 psf ppr,

including a $745,000 development charge

and a $4.45 million land premium.

The other site can also be amalgamated witha 2,832 sq ft adjoining state land, yielding a

GFA of 90,179 sq ft that can in turn yield 107

800sq ft units. The asking price of the site

including a development charge and land

premium is $81 million or $940 psf ppr.

The two sites are expected to be popular

given their proximity to Toa Payoh MRT

Station, Novena MRT Station and Boon Keng

MRT Station, and developers can bid for

either or both sites by March 1.

Surprising strong private home sales inJanuary

Excluding ECs, the number of private homes

sold by developers in January may have


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reached 1,700-1,800, compared to the mere

632 in December. This figure is likely to

increase if ECs are included. Most of the units

contributing to this figure came from Far East

Organisations Watertown and The Hillier. The

two sold 771 units and 387 units respectively

at an average price of $1,224 psf. Including

units it sold at other developments, the total

came up to 1,253 private homes. Meanwhile,

another developer, City Developments sold

224 units including ECs. For other

developments, Parc Rosewood condo in

Woodlands had sold almost 200 units, The

Nautical in Sembawang sold 85 units, and

Riversound Residence in Sengkang 80 units.

The sales are surprisingly strong, and aredriven mainly by Watertown and The Hillier,

which were probably more popular because of

their proximity to MRT stations and their

integration with a retail section of the

developments. Sales figure in other

developments are much lower, despite having

steady sales and steady stream of visitors to

their show flats. Potential buyers are less

willing to commit because of the ABSD, the

uncertain economy and the expectation that

prices will fall.

ABSD is working as number of foreign

purchase have decreased

According to DTZ, the proportion of non-PRforeigners purchasing private homes has

decreased from 23% in December to a mere

3% in January 2012. This may be due to the

small number of caveats lodged so far.

Nevertheless, this sharp drop is significant,

analysts say.

The sales at the recent launches show that

ABSD is working as foreign share in

purchases have decreased.


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Only 5% of the 771 units sold so far at

Watertown condo and 10% of the 387 units

sold at The Hillier were bought by non-PR

foreigners. Compared to the 23.2% bought byforeigners at The Tennery last year, this is a

sharp decline.

While some believe that the foreigners share

of purchase is going to decrease, others

believe that the full impact will only be

apparent in six months time. If prices stabilise

and the economy proved resistant, foreigners

may start buying property in Singapore again.

Freehold Crystal Tower and Seletar Garden

site up for en-bloc sale

Freehold residential Crystal Tower located

near Bukit Timah Road is back on the

collective sale market, and is asking for $150

million or $1,458 psf ppr, slightly below its

earlier asking price of $155 million, or $1,600

psf ppr. The 28-unit 11-storey residential

development sits on a 60,482 sq ft site with a

1.6 gross plot ratio (GPR). Including anadditional 10% balcony space, the plot ratio

will be increased to 1.76, after paying a $5.22

million development charge.

The freehold Seletar Garden development

located along Cactus Road is asking for $80-

85 million, or $712-751 psf ppr. The 30-unit

development sits on a 73,098 sq ft site with a

GPR of 1.4 and an allowable height of up to

four storeys. An amalgamation with adjoining

state lands will bring the total site area to

92,3111 sq ft and the GFA to 129,235 sq ft.

Any development on this site may prove

attractive to aviation professionals who want

the convenience of living near where they

work.


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The tenders for the two sites close on Feb 27

and March 7 respectively.

This trend of having several developments

being put up for en bloc sales is not expectedto continue for long as a result of the current

economy outlook. Analysts expect the

collective sale market to be quiet in the first

half of the year, and what happens in the

second half is dependent on the global

economy.

Since redevelopment of en bloc sites will take

around two-and-a-half years to two-and-three-

quarter years to complete, developers may

bid for these sites based on their prediction of

what will happen in 2013 to 2014. The ABSD

imposed on developers who did not build and

sell all units on the residential sites within five

years may also deter some developers from

purchasing some sites.

The Tampines Trilliant attract 1,000

applications

99-year leasehold 670-unit The Tampines

Trilliant, an EC located in Tampines, attractedaround 1,000 applications in its first

application period from Jan 27 to Jan 31, 60%

of whom lives in the East side. Another one-

third is by people already residing in

Tampines. The popularity of the project is

expected, it being located near shoppingmalls, Tampines MRT station and the future

Downtown Line 3 Interchange. The booking

for the development on Feb 4 will be

conducted using balloting and buyers can

either choose normal payment or a deferred

payment scheme. The development willinclude 12 residential blocks housing 127

units of 872-1,141 sq ft three-bedroom units,

397 units of 1,001-1,378 sq ft three-bedroom

SINGAPORE PROPERTY WEEKLY I 37


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plus utility units, 1,302-1,593 sq ft four-

bedroom units and 1,841-2,465 sq ft

penthouses.

99-year leasehold private residential site atJervois Rd draws 17 bids

The highest bid for the District 10 plot next to

the Chatsworth Park Good Class Bungalow

Area came from Singapore Land unit SL

Development, which bid $118.9 million or

$880.74 psf ppr. The earlier predictions for the

top bid ranged from $630 to $950 psf ppr. SL

Development said that the expected

breakeven cost is $1,300 psf and they intend

to sell units built at around $1,500-1,600 psf.

The developer plans to develop the site into a

130 to 140-unit five-storey project with one-

and two-bedroom units and some three-

bedroom units. The proposed development

also includes seven to eight strata three-

storey-plus-basement terrace houses.

More upcoming launches despite ABSD

Upcoming launches will include 99-year

leasehold Twin Waterfalls, an EC located nearPunggol MRT station, with e-applications

beginning on Feb 10. The prices will be lower

20% lower than that of the recently released

Watertown at around $720 to $750 psf.

Another launch to look out for is the release of

99-year leasehold Palm Isles, a 429-unit

condo development located at Flora Drive. It

will be launched around the first week of April

with prices set at around $900 psf.

However, whether prices in general will fall

remains to be seen. At the Redas (RealEstate Developers' Association of Singapore)

Spring Festival luncheon, developers were

unwilling to say for certain that prices will fall

SINGAPORE PROPERTY WEEKLY I 37


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since they feel that it is too early to determine

the impact of the ABSD. Even then, prices set

will depend on the target market and the

product itself. Nonetheless, foreign buying

had definitely decreased and a fall in prices by

3-5% is predicted.

Revisions to Conditions of Sale for

property transactions

The revisions made in the Law Society of

Singapore's latest edition of Conditions of

Sale 2012 for property transactions include

some addition and deletion of certain

conditions.

One new condition included the vendor giving

a warranty to the buyer stating that there wereno unauthorised additions or alterations to the

property. Another is a three-month maximum

postponement of the scheduled completion of

sale from the date of death, should the buyer

or vendor pass away. The risk of damage will

also only be transferred to the buyer when the

sale is completed or when the buyer takes

possession of the property, depending on

which is earlier. Sellers can also now rescind

the option or affirm it if there is dishonoured

cheque payment.

Other conditions were also revised or

removed in light of policy changes since the

last edition.

Commercial

JTC releases 58-year leasehold Business 1

industrial site in Serangoon

The site located at Serangoon North Avenue 4

has a site area of 0.8 ha and a 2.5 gross plot

ratio. Some analysts believe that the site will

not be very popular, attracting bids of $130 -

$140 psf ppr from developers intending to



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build small strata units. Others believe that it

will be popular since it has a good location,

and may draw bids $150-160 psf ppr before

the tender closes on March 13. Nevertheless,

this is below what the site could have fetched

last year. The new conditions on strata

subdivision for industrial sites are likely the

reason for the lower predictions.

99-year leasehold hotel site on reserve list

released for sale

The site located on Rangoon road was on the

government reserve list until an unnamed

developer applied for it to be released from

the list, after committing to bid for the site at a

minimum price of $56.5 million or $403.65 psf

ppr. The 4.2 gross plot ratio of the 33,326 sq

ft site brings the maximum GFA to 139,974 sq

ft. Despite the competition that it will likely

have from upcoming new hotels in the same

region, the site is expected to be popular,

drawing bids of $770 to 830 psf ppr.

However, the hotel property sector in general

is expected to be quieter this year, given theexpected fall in room rates from the increase

in supply by 1,400 in 2012 and 3,100 in 2013.

http://www.propwise.sg/secretsofsingaporepropertygurus/


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http://www.erc.com.sg/eblastimages/pptylanding/pptylanding.html


12/18



How Will Singapore Property Fare in the Year of the Dragon?

By Getty Goh

This is my first article for 2012. Before getting

down to business, I would like to take this

opportunity to wish everyone a successful and

prosperous 2012! To start off the year, I have

decided to write something on a lighter note

for your reading entertainment.

Some time back, I came across an article in

the Singapore Business Times titled Finance,

fengshui square off over this Dragon Year.

This article wrote that experts in the finance

industry and geomancy circle were having

different outlooks for the Singapore stock

market in the year of the Dragon. The former

saw a slight recovery while the latter held anopposing view.

After reading the article, I thought that it would

be interesting to see how the Singapore

property markets had performed in previous

Dragon Years and to use the past trends to

predict what 2012 was going to be like.

Intuitively, it seemed plausible that the

Chinese zodiac had some impact on the

property markets. After all, the Dragon is a

creature that is both feared and revered by

the Chinese. Just as many Chinese parents

want to have Dragon babies, I wanted to find

out if there was a Dragon Year effectfor the



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property markets as well?

Residential property market performance

in the Dragon Year

Using the URA Private Property Price Index

(PPPI) data from 1975 to 2011, a gain (or a

loss) for the respective year was worked out

by subtracting the index value of Quarter 1

from Quarter 4. If the difference was positive,

that year would be deemed a growth year.

Conversely, if the difference was negative,

that year would be deemed a contraction

year.

Based on this approach, the numbers of

growth and contraction years, according to theChinese zodiac animals, were worked out

(see Figure 1).

Figure 1: Number of profitable and

unprofitable years according to Chinese

Zodiac for private residential properties

(according to alphabetical order)

Source: URA and Ascendant Assets Pte Ltd

From the table above, 2 out of the 3 years

Dragon Years were contraction years. From

this analysis, some may infer that the


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Retail property market performance in

previous Dragon Year

From Figure 3, 2 out of 3 years Dragon Years

were found to be profitable. Hence, it mightbe inferred that the retail sector would be

generally favourable in the year ahead. In

comparison, the Rooster was the only zodiac

animal that had 3 rounds of price increases

and some might think that investors who

bought retail units in such a year would likelydo well..

Figure 3: Number of profitable and

unprofitable years according to Chinese

Zodiac for retail properties (according to

alphabetical order)

Source: URA and Ascendant Assets Pte Ltd



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To conclude, I must qualify that past

performances are not indicative of future

results. At present, there appears to be some

congruence between how people expect theproperty market to perform and the past

Dragon Years trend. To me, the distribution

appears to be totally random and the

congruence is simply by chance. To a

soothsayer, this may actually be the work of

divine forces. Ultimately, only time will tell

whether the property market will pan out as

predicted.

By Getty Goh, Director ofAscendant Assets,

a real estate research and investment

consultancy firm.

http://www.ascendantassets.com/http://www.moneymatters.sg/http://www.ascendantassets.com/


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Non-Landed Residential Resale Property Transactions for the Week of Jan 14 Jan 20

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

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

2 SPOTTISWOODE PARK 850 750,000 882 99

5 THE MAYLEA 969 1,180,000 1,218 FH

7 SOUTHBANK 958 1,460,000 1,524 99

9 RIVERGATE 2,077 4,340,930 2,090 FH

9 RIVERGATE 1,841 3,600,000 1,956 FH

9 SKYPARK 3,348 6,026,400 1,800 FH

10 FOUR SEASONS PARK 2,874 7,100,000 2,470 FH

10 GOODWOOD GARDENS 1,076 1,800,000 1,672 FH

11 NEWTON ONE 1,216 2,128,000 1,750 FH

11 MANDALAY TOWERS 2,497 2,350,000 941 FH

12 TRELLIS TOWERS 1,485 1,770,000 1,192 FH

14 ASTON MANSIONS 1,163 945,000 813 99

15 RIVEREDGE 1,593 2,000,000 1,255 99

15 OCEAN PARK 3,261 3,800,000 1,165 FH

15 HAIG COURT 1,442 1,550,000 1,075 FH

15 PARK COURT 958 900,000 939 FH

16 BLEU @ EAST COAST 1,012 1,040,000 1,028 FH16 LAGUNA GREEN 1,270 1,168,000 920 99

16 EAST MEADOWS 1,216 1,050,000 863 99

16 BEDOK COURT 2,411 1 ,580,000 655 99

17 BLUWATERS 1,184 1,160,000 980 946

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

19 PALM HAVEN 1,518 1,268,000 835 999

20 THE GARDENS AT BISHAN 883 892,000 1,011 99

20 LAKEVIEW ESTATE 1,615 1,370,000 849 99

23 CASHEW HEIGHTS CONDOMINIUM 1,658 1,398,000 843 999

23 MERAWOODS 1,055 868,000 823 999

23 MONTROSA 1,195 970,000 812 999

23 CASHEW PARK CONDOMINIUM 1,367 1,050,000 768 999

23 REGENT HEIGHTS 1,173 830,000 707 99

27 EUPHONY GARDENS 2,088 1 ,110,000 532 99

28 SERENITY PARK 1,313 1 ,080,000 822 FH



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Singapore Property Classifieds #25

For Sale


Near Bugis MRT! The Bencoolen $1.15mil2br 883sqft. Gd layout, excellentinvestment, no bay windows, gd rentalyield. Call Clinton 98512159

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.

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