singapore property weekly issue 39

8/3/2019 Singapore Property Weekly Issue 39

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Issue 39Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 Singapore Property News This Week

p8 Tips on Working Well With Your

Property Agent

p13Resale Property Transactions

(February 1 February 7)

Welcome to the 39th edition

of the Singapore Property

Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
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SINGAPORE PROPERTY WEEKLY Issue 39

Singapore Property This Week

Page | 2Back to Contents

Residential

Freehold Tai Keng Court up for sale with

asking price of $130m

Tai Keng Court consists of 56 strata

apartments and 23 commercial units in the

two blocks sitting on the103,798 sq ft site with

a 1.4 gross plot ratio. It can potentially be

amalgamated with a 4,988 sq ft state land to

yield a site with a 152,301 sq ft GFA. This

combined site can built up to five stories,

yielding 121 950 sq ft residential units and 30

700 sq ft commercial units. The site is on the

market with a $130 million price tag and

$1.325 million for the development charge,

equivalent to $903 psf ppr based on the GFA

of the un-amalgamated site.

Developers can redevelop the site into an

integrated development that has proved to bepopular in recent launches with a commercial

component since the plot is zoned for

commercial and residential use. The site is

also well located, being near MRT stations

such as Serangoon MRT and shopping malls

like the NEX Mega Mall as well as schools

such as Cedar Primary and Cedar Girls

Secondary schools. The tender closes on

March 21.

Sharp increase in private home sales in

January

A total of 1,872 private homes, excluding ECs,

were sold in January, almost three times the

632 units sold in December in 2011.


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205 EC units were also sold in January,

around five times the 38 sold in the previous

month. The sharp increase in sales was a

surprise since there is a tendency for the sale

figures to fall in the Chinese New Year Month.

Furthermore, the ABSD is expected to deter

some buyers from purchasing private homes.

However, the strong sales could be due to the

demographics of the buyers, who are first-

timers or buyers investing in a second home,and therefore are not affected by the ABSD.

Furthermore, the strong sales are driven by

two mixed developments with locations

Watertown and The Hillier.

The market for homes in outside core region

(OCR) is doing well, with 1,975 units released

and 1,761 units sold in January, compared to

the 764 released and 489 sold in December

2011. The market for homes located in the

core central region (CCR), however, has no

launches and only 17 units sold in the same

month. The proportion of '$1,000 psf and

under' units sold decreased from 36.9 per

cent in November 2011 to 24.3 per cent in

January 2012, while the proportion of more

than $1,000 psf to $1,500 psf' units sold

increased from 51.9 per cent in November

2011 to 71.4 per cent in January. This may be

a result of developers increasing the prices asthe demand for such units is strong.

Three out of the four 99-year leasehold

sites released for sale are EC sites

The four 99-year leasehold sites which are

expected to yield a total of 2,070 units,consists of three EC sites (one under the

reserve list) and one site for strata landed

housing or condominium development.


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Some analysts feel that the increase in EC

supply will cause the prices to fall by around

5%, citing the predicted buyers shift to BTO

flats as a result of the increase in BTO supply

and potential increase in percentage allocated

to second-timers, and the multitude of choices

buyers now have that allow them to wait for

other EC launches as reasons. Others feel

that the increased supply may be to match the

expected increase in demand as the numberof eligible buyers increase with the raising of

the income ceiling from from $10,000 to

$12,000 in August 2011.

The first on the confirmed list is a 142,533 sq

ft site located at Punggol Central/Edgefield

Plains. Its 3.0 plot ratio allows for a maximum

GFA of 427,600 sq ft that can potentially yield

395 units. The site is expected to attract four

to eight bids with a top bid of between $280-

$320 psf ppr.

The 236,804 sq ft site located at Fernvale

Lane with its 3.5 plot ratio and 828,816 sq ft

GFA has a potential yield of 770 units. Thesite is expected to draw four to 10 bidders,

with a top bid between $270-$310 psf ppr.

The tenders for the sites at Punggol Central

and Fernvale Lane will close on March 29 and

April 3 respectively.

The third EC site is on the reserve list. The

201,327 sq ft site located at Punggol

Way/Punggol Walk has a GPR of 3.0 which

allows it to yield potentially 560 units.

However, with the abundant supply in the

market, the site may not be triggered.Nonetheless, if triggered, the site could go for

$157 million to $181 million, or $260-$300 psf

ppr.


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A non-EC site released on the confirmed list is

a 251,036 sq ft site located at Elias

Road/Pasir Ris Drive 3. The site zoned for

strata landed housing or condominium/flats

has a plot ratio of 1.4 and can potentially yield

345 units. With its good location (near a

landed housing estate, Elias Mall and Pasir

Ris Park), a top bid of $420-$470 psf ppr with

eight to 12 bidders is predicted.

The tender for the site will close on April 11.

Ultra Mansion up for collective sale with an

asking price of $170m

The 13-storey residential development sitting

on a 45,512 sq ft site near Novena MRT

station is asking for $170 million or $1,334 psfppr based on the maximum GFA of 127,433

sq ft from its 2.8 gross plot ratio. If the

additional 10% balcony space and $8 million

development charge, the price will be $1,270

psf ppr. It is expected to be popular, since it is

located in Novena Hub and not too large. The

site could be potentially developed into a

lifestyle studio apartments development or

SoHo development since there are not many

such developments in the region.

The tender for this site will close on March 22.

Commercial

Competitive bidding for Aljunied industrial

site predicted

The 0.63-heactare industrial site at the

junction of Sims Drive and Aljunied Road is

expected to attract many developers despite

being next to Aljunied MRT, a location which

prevents strata sub-dividing of the

development in the first 10 years after the


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project is completed. Even after the 10 years,

the condition for strata sub-dividing requires a

minimum strata unit size of 1,615 sq ft gross

floor area (GFA). Without these newconditions, the site could have fetched $240

and $290 psf ppr, compared to the $160 to

$200 psf ppr it is predicted to fetch now.

Nevertheless, the good location of the site

(being near the MRT station and the Kallang

Distripark) and its size may still attract 10

bidders. The 67,944 sq ft site has a gross plot

ratio of 2.5 and is zoned 'Business 1'.

The tender for the site closes on April 10.

SINGAPORE PROPERTY WEEKLY I 39
http://www.propwise.sg/secretsofsingaporepropertygurus/


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SINGAPORE PROPERTY WEEKLY I 39
http://www.erc.com.sg/eblastimages/pptylanding/pptylanding.html


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Tips on Working Well With Your Property Agent

By Mr. Propwise

Your property agent is supposed to always

act in the best interests of the buyer and/or

seller but many of us know from personal

experience or anecdotal evidence that that is

not always the case. In order to protect

consumers, the Council for Estate Agencies

(CEA) has published a brochure titled

Consumer Tips for Engaging a Real Estate

Salesperson to help buyers and sellers get

the best possible prices or rents when looking

to enter into a property transaction.

To clarify the use of terminology, the CEA

defines EstateAgents as the estate agency

businesses that broker property while they

http://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdfhttp://www.cea.gov.sg/cea/content/binary/pdfFiles/CEABrochureFinalLowres.pdf


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refer to Salespersons as the individuals who

perform the estate agency work, i.e. people

we would typically refer to as property agents.

For the rest of the article I will use the phrase

propertyagents (as that is what most people

would call them) instead of the CEAs

salespersons but they mean the same thing.

What is a Property Agent Responsible

For?

Your property agent is responsible for the

following:

Give you professional and truthful advice

without making any unsubstantiated

claims (e.g. You will DEFINTELY make

money GUARANTEED etc) Help you negotiate based on your

instructions

Immediately notify you whenever any

offers come in (i.e. they should not

withhold any offers from you even if it is

detrimental to their own interests, e.g.

from co-broking agents)

Help you through the process of a

transaction and explain all documentation

to you

Follow your instructions and declare any

conflicts of interests in the transaction

Additionally, for HDB transactions the agent isrequired to:

Brief you on your eligibility to buy, sell,

lease and borrow

Guide you through the resale checklist

and check whether the renovations are

approved

Assist you in submission of forms and

documentation



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Your agent must also carry and display his

Estate Agent card whenever he is carrying out

estate agency work.

What a Property Agent is Not Allowed to

Do

A property agent is not allowed to represent

both the buyer and seller or landlord and

tenant to prevent any conflicts of interest. This

is called dual representation, and isprohibited even if both parties consent to pay

the agent commission.

Agents are also not allowed to make referrals

to moneylenders, and to hold on to any

transaction money (e.g. option fee,

downpayment, stamp duties, deposits and

sales proceeds). Note that valuation fees and

commissions are not included in this category.

Best Practices When Dealing With

Property Agents

Agents often want you to sign an exclusive

agreement with them, which means that you

agree not to appoint any other agent to

market your property for a set period of time.

If you do this, even if you sell the property

directly or through another agent, you will be

liable to pay commission to the agent you

have an exclusive agreement with so be

careful before you sign this.

As for commissions, contrary to what many

agents claim, there is no set commission (the

CEA does not prescribe this to allow

competitive market forces to work for theconsumers benefit). So you can negotiate the

rate. Of course, how much you are willing to



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pay depend on how much value you think the

agent brings property agents do play a

critical role in any transaction so they should

be compensated fairly.

When paying commissions, make sure that

you only pay it after the transaction is

completed, and this should be paid to the

Estate Agency and not directly to the property

agent. You should also clarify when fixing the

commission rate whether it includes orexcludes GST.

Tips on Working Well With Your Property

Agent

Engage only licensed property agents

you can check the Public Register atwww.cea.gov.sg

If you are appointing multiple agents, it is

good to inform them so their marketing

efforts do not overlap, which can work to

your disadvantage

Read and understand any documents

before you sign them. If you dont

understand anything, clarify it with your

agent or your conveyancing lawyer

At the end of the day, you are responsible

for making the final decision, not your

agent

If you have a dispute with your agent, you

can lodge a complaint with his or her

estate agency. If you are unable to get a

satisfactory resolution, you can go for

mediation/arbitration under the CEAs

Dispute Resolution Scheme (as long asyouve signed a prescribed Estate Agency

Agreement). You can also lodge a

http://www.cea.gov.sg/http://www.cea.gov.sg/http://www.cea.gov.sg/http://www.cea.gov.sg/http://www.cea.gov.sg/http://www.cea.gov.sg/http://www.cea.gov.sg/http://www.cea.gov.sg/


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complaint with the CEA.

If you are familiar with the property

transaction process, you can choose to

represent yourself. There is no legalrequirement for you to engage a property

agent.

Following the steps above will minimize the

probability of misunderstandings with your

agent that might only come up at a later

stage, and ultimately help you get the best

possible deal.

http://www.moneymatters.sg/


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

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

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

3 REGENCY SUITES 1,421 1,850,000 1,302 FH4 CARIBBEAN AT KEPPEL BAY 1,206 1,790,000 1,485 99

5 VARSITY PARK CONDOMINIUM 1,292 1,435,000 1,111 99

5 BOTANNIA 1,184 1,260,000 1,064 956

5 DOVER PARKVIEW 936 950,000 1,014 99

5 THE INFINITI 1,345 1,228,000 913 FH

8 MERA SPRINGS 1,292 1,650,000 1,277 FH

9 ELIZABETH TOWER 3,068 4,330,000 1,411 FH

10 GARDENVILLE 1,572 3,100,000 1,973 FH

10 PARC STEVENS 1,722 2,980,000 1,730 FH

10 JERVOIS JADE APARTMENTS 1,496 1,500,000 1,003 99

11 PARK INFINIA AT WEE NAM 1,582 2,780,000 1,757 FH

11 ORCHID APARTMENT 1,399 1,650,000 1,179 FH

11 THOMSON 800 1,625 1,860,500 1,145 FH

12 OLEANDER TOWERS 861 920,000 1,068 99

13 SENNETT ESTATE 1,033 650,000 629 FH

14 D' CASITA 538 630,000 1,171 FH

14 THE WATERINA 1,216 1,280,000 1,052 FH

14 CANNE LODGE 818 828,000 1,012 FH

14 WINDY HEIGHTS 2,476 1,980,000 800 FH

15 AALTO 1,550 2,350,000 1,516 FH

15 PEBBLE BAY 2,336 3,250,000 1,391 99

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

15 D'FOCUS APARTMENTS 1,765 1,508,000 854 FH

15 SUNSHINE REGENCY 1,733 1,260,000 727 FH

16 CASA MERAH 1,249 1,118,000 895 99

16 CASAFINA 1,206 1,050,000 871 99

18 THE TROPICA 1,615 1,313,800 814 99

18 ELIAS GREEN 1,550 908,000 586 99

19 FORTUNE PARK 1,270 1,050,000 827 FH

19 RIO VISTA 1,249 955,000 765 99

20 THE GARDENS AT BISHAN 883 888,000 1,006 99

20 THE GARDENS AT BISHAN 1,572 1,360,000 865 99

21 THE NEXUS 614 858,000 1,398 FH

21 SUMMERHILL 1,206 1,188,000 985 FH

21 PARC PALAIS 1,292 1,180,000 914 FH

21 SOUTHAVEN I 926 828,000 894 99

27 SELETARIS 1,528 1,160,000 759 FH

27 EUPHONY GARDENS 1,076 740,000 687 99

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