singapore property weekly issue 52

7/31/2019 Singapore Property Weekly Issue 52

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Issue 52Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 Singapore Property News This Week

p8 Profile of the Typical Singapore

Property Investor

p14 Resale Property Transactions

(May 2 May 8)

Welcome to the 52th 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]


3/17

SINGAPORE PROPERTY WEEKLY Issue 52

Singapore Property This Week

Page | 2Back to Contents

Residential

Indications of cooling property market

After five rounds of cooling measures to

discourage speculative demand and the

increase in housing supply as part of the

measures to cool the property market, resultscan be seen in the slight decrease in private

home prices in Q1 2012, the fall in the

proportion of sub-sales (an indicator of

speculative demand) to 4%, as well as the fall

in the proportion of private residential

property bought by foreigners and companies

to 7%. The resale prices for HDB flats have

also slowed down, increasing by a mere

0.6% in Q1 2012.

However, the increasing number of shoebox

units and rising mass market prices remained

problematic. As of end-Q1 2012, the 2,500

completed shoe-box units made up 1.2% of

the 210,000 non-landed private housing units

and the figure is expected to hit 9,700 by

2015. 80% of these completed units are

located centrally, but many new units are

located in suburban areas where the demand

for such units is unknown. Mass market

property prices outside the Central Regionhave also sustained their rising trend despite

the moderation of prices in the central region.


4/17



Increased private home sales the current

trend

Judging from the sales figures from the past

few months, increased sales figures may bethe current trend in the market. There were

doubts that strong sale figures in February

and March could be sustained, but the strong

sales in April proved otherwise, with a total of

2,487 private homes excluding ECs sold in

April, a 4% increase from March, and a slightincrease from the 2,417 units sold in

February. It was also 38% higher than the

figure in April 2011. The demand for private

homes excluding ECs exceeded the supply in

April since the total number of units launched

is only 2,386. EC sales, however lookedmore dismal with no new launches, leading to

a sale figure of only 173 units in April,

compared to 639 units the previous month.

This results in the 12% decrease in the total

private sales volume (including ECs) to 2,660

units.

The core central region (CCR) showed the

highest increase in demand, with the 106units sold in the region in April almost twice

that of March. The median prices of new

sales in the outside central region (OCR)

have been increasing faster than that of

CCR, resulting in a smaller gap of 1.8 times

between the two compared to the 2.5 timesgap in June 2007 and prompting more buyers

to purchase homes in the CCR. Number of

units sold in the rest of central region (RCR)

has also increased by 70% from March to

April to 867 units while the sale figures for

mass market homes in the OCR fell by 17%to 1,514 in the same period.

The demand for private homes is likely to

continue to rise, driven by bumper supply,


5/17



and these may eventually lead to a record-

high sale figure of over 16,800 units for the

year of 2012.

5 residential sites released; 1 confirmed, 4reserve

The government is releasing a total of five

99-year leasehold private residential sites

under the GLS programme, out of which one

is on the confirmed list and the remaining on

the reserve list. The sites could potentially

yield a total of 2,100 units. On the confirmed

list is a parcel located at Pheng Geck Avenue

near Potong Pasir MRT Station. It is expected

to achieve a top bid in the range of $550-810

psf ppr out of 10-15 bids, with an expectedaverage selling price for the development at

around $1,450 psf. The tender closes on

June 28.

Located near the confirmed list site is a

reserve list plot at Tai Thong Crescent, which

is zoned for residential use with commercial

use on the ground floor. It is expected to

achieve a high psf ppr price since the project

developed on the site can be a mixed-use

development, meaning that the commercial

component can achieve a higher price than

the residential units, which can already fetch

higher prices if they are part of a mixeddevelopment. The top bid for the site is

predicted to be around $550-800 psf ppr from

10-15 bids, if the site is triggered in the

present market.

Also on the reserve list are the sites at Kim

Tian Road located near Tiong Bahru MRT

Station and Tiong Bahru Plaza, at Prince

Charles Crescent which is 400-500 metres


6/17



from Redhill MRT Station and at Sengkang

West Way near the H2O Residences condo

project.

The site at Kim Tian Road is expected to bethe most popular among the four reserve list

plots, given its central location and its

surroundings consisting of eateries, shops

and conservation apartments. If triggered

now, the site could possibly achieve a top bid

of $580-870 psf ppr.

Meanwhile, the site at Prince Charles

Crescent is expected to fetch a top bid of

$650-900 psf ppr while the site at Sengkang

West Way plot is expected to achieve a top

bid of $336-440 psf ppr. While the latter is notlocated near transport amenities such as an

MRT or LRT station, being located in a

growth area means it may see demand from

upgraders.

99-year leasehold Tampines site attracts

$252.78 m top bid

The 99-year leasehold residential site located

at Tampines Avenue 10 attracted a total of 3bids with the top bid at $252.78 million or

$417.86 psf ppr, within analysts expectations

of $350-465 psf ppr. The lukewarm

participation in the tender reflects the less-

than-ideal location of the plot, since it is not

located near the MRT station or the TampinesRegional Centre, though it is near Bedok

Reservoir Park and Temasek Polytechnic.

The possibility of the adjacent reserve-list site

being triggered would also have affected the

tender participation. The top bid was won

jointly by Far East, Frasers Centrepoint and

Sekisui House, which will develop the site

into a 670-unit condominium with eight 15-

storey blocks.


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The expected breakeven price and average

selling price ranges from $800-850 psf and

$900-1,000 psf respectively.

Commercial

Far East plans two new hotels in Far East

Square

As part of the collaborative effort with Frasers

Commercial Trust (FCOT) and Great Eastern

to revitalise the China Square area, Far EastOrganisation plans to develop a 37-room

designer boutique hotel from some offices on

the upper floors of the conservation

shophouses and a 28-storey 292-room hotel

on an empty part on the site. The

collaborative The China Square PrecinctMaster Plan also includes the development of

a $14 million covered linkway that will

connect the three properties together and to

the upcoming Telok Ayer MRT station. In

addition, there will be new building markers,

directional and circulation signs, and mural

artwork added to the region and activities,

events and promotions planned to rejuvenate

the area. There will also be a HeritageTrail

that showcases heritage sculptures.

Singapores office rents remains 3rd

highest in Asia Pacific

Singapores prime office rents in Q1 2012

remained the third highest among 28 cities in

the Asia-Pacific region at US$81.59 psf

despite the 1% fall in annual gross rent from

Q4 2011. CBD Grade A office spaces

average monthly gross rents dropped by4.3% from January to March this year

compared to the 1.6% fall from October to

December 2011, probably a result of the

uncertain economic outlook.

SINGAPORE PROPERTY WEEKLY I 52


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The fall in rents is predicted not to exceed

15% and may reach US$70 psf in 2013.

Meanwhile, supply of office space in 2012

and 2013 is expected to hit 745,246 sq ft and

141,759 sq ft respectively. This, together with

the likely increase in sub-leased shadow

space, is the reason for the decreasing rents.

The average vacancy rate is also likely to

remain around 8.5%.

Gemshine Investments bought Compass

Point at $519m or $1,925 psf

Compass Point mall located in Sengkang

was sold to Gemshine Investments (a joint

venture between Prudential's Asia Property

Fund (APF) and Frasers Centrepoint) at aprice of $519 million or $1,925 psf based on

the 269,546 sq ft net lettable area and a

5.6% net yield based on the estimated net

operating income of $29 million. The mall

which is five-storey high and located next to

Sengkang MRT Station is almost fully

occupied.

Separately, freehold 29-storey Tower 15 at

Cantonment Road was sold to Fragrance

Group at $360 million or $1,420 psf of GFA

based on its 253,455 sq ft GFA. No

development charge would be payable for a

new project on the 39,336.67 sq ft site if it

does not exceed this GFA. Klapsons The

Boutique Hotel occupies the second to fourth

levels while the offices occupies the fifth to

the 29th level.


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10/17



Very often, the difference between a

profitable deal and a non-profitable deal is

determined by an investors ability to hold on

to the investment, regardless the market

condition.

To better help my seminar participants, my

company, Ascendant Assets Pte Ltd, has

developed a proprietary Property Investor

Profile Survey (PIPS) to help our clients

better understand their individual investment

profile. After doing the survey, we will score

them based on a scoring system that ranges

between 1 and 50. Investors who score close

to 1 tend to be more most risk adverse while

those who score closer to 50 are generallymore aggressive. Based on out PIPS, we

were able to draw many interesting

conclusions on the typical Singapore property

investor.

Profile of the typical Singapore property

investor

The typical Singapore property investor has

an average score of 27.9. This would put

them in the Balanced Category. Investors

belonging to this profile are typically long

terms investors who are prepared to hold on

to their investments for more than 10 years.

The typical property investor has been

working for quite a while and has

accumulated some cash for his/her propertyinvestments.



11/17



The average age is 46 and 82% of the

respondent are married.

The typical Singaporean property investor is

fairly cash rich. Almost 42% are holding on to

between S$100,000 S$400,000 of cash on

hand. The breakdown of the amount of cash

they have is shown in Figure 1 below.

Source: Ascendant Assets Pte Ltd

Risk Appetite

In terms of risk appetite, typical Singapore

property investor is generally quite risk

averse. This can be inferred as more than

half (56%) feel that protecting against losses

was more important that earning high returns

(See Figure 2).




12/17



The conservative nature of property investors

is reinforced as 69% of respondents

disagreed to the following PIP survey

statement, I am comfortable with large

declines in value if there is a potential for

higher returns (See Figure 3). This indicates

that most investors are unwilling to accept

large declines in value even if it means the

potential for higher returns and property

investors are generally not the speculative

type.


Our findings are congruent to the fact that

unlike the more liquid assets (i.e. stocks,

commodities, Forex), property investors are

looking for a secure mechanism to grow their

wealth. For those of you who would like to

know what your investment profile is, please

drop us an email at

[email protected]. Wed gladly

provide you with a complimentary analysis so

that you will be able to make a more informed

decision for your next purchase.

To conclude, let me share a quotation from

Sun Tze, the military strategist and author of

the Art of War wrote, If you know your

enemies and know yourself, you will not be

imperiled in a hundred battles.

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


13/17



Similarly, apart from knowing the property

market, if you know yourself well, you would

be able to avoid peril in a hundred

investments.

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/http://www.ascendantassets.com/http://www.ascendantassets.com/


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15/17



Non-Landed Residential Resale Property Transactions for the Week of May 2 May 8

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

3 RIVER PLACE 786 965,000 1,228 99

4 CARIBBEAN AT KEPPEL BAY 893 1,495,000 1,673 995 PARC IMPERIAL 495 850,000 1,717 FH

5 BOTANNIA 1,259 1,378,000 1,094 956

5 THE PARC CONDOMINIUM 980 1,070,000 1,092 FH

5 ISLAND VIEW 3,498 3,630,000 1,038 FH

5 WEST BAY CONDOMINIUM 850 850,000 1,000 99

8 CITY SQUARE RESIDENCES 861 1,330,000 1,545 FH

8 OXFORD SUITES 893 1,200,000 1,343 FH

8 MERA SPRINGS 1,227 1,570,560 1,280 FH

8 KERRISDALE 990 1,100,000 1,111 999 PATERSON SUITES 1,679 4,750,000 2,829 FH

9 PATERSON SUITES 1,755 4,387,500 2,501 FH













Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure


9 RICHMOND PARK 1,259 3,000,000 2,382 FH9 RHAPSODY ON MOUNT ELIZABETH 1,044 2,240,000 2,145 FH

9 LUCKY PLAZA 829 1,702,000 2,054 FH

9 RIVERGATE 1,485 2,970,000 1,999 FH

9 CAIRNHILL CREST 1,733 3,250,000 1,875 FH

9 CAIRNHILL PLAZA 3,305 5,500,000 1,664 FH

9 WILKIE STUDIO 1,884 2,495,000 1,325 FH

9 OLEANAS RESIDENCE 1,227 1,550,000 1,263 FH

9 PEACE CENTRE/MANSIONS 2,347 1,558,000 664 99

10 8 NAPIER 2,013 6,450,000 3,204 FH10 THE ORANGE GROVE 2,153 4,955,580 2,302 FH

10 LATITUDE 2,659 5,756,200 2,165 FH

10 MILL POINT 527 983,000 1,864 999

10 ONE CHATSWORTH 3,401 6,300,000 1,852 FH

10 SPRING GROVE 1,389 2,280,000 1,642 99

10 THE MARBELLA 1,755 2,800,000 1,596 FH

10 DALVEY COURT 2,185 3,280,000 1,501 FH

10 PINEWOOD GARDENS 2,088 3,000,000 1,437 FH

10 THE HORIZON 1,561 2,200,000 1,410 FH

10 BEAVERTON COURT 3,229 4,150,000 1,285 FH

10 TANGLIN REGENCY 1,292 1,660,000 1,285 99

10 HOLLANDSWOOD COURT 2,131 1,930,000 906 99

11 NEWTON EURO-ASIA 1,066 1,690,000 1,586 FH

11 BIRMINGHAM MANSIONS 1,066 1,480,000 1,389 FH



16/17



Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

11 THE AXIS 1,141 1,500,000 1,315 FH

11 MEDGE 861 1,100,000 1,277 FH

11 1 MOULMEIN RISE 3,886 4,800,000 1,235 FH

11 HILLCREST ARCADIA 1,798 1,850,000 1,029 99

12 CASA FORTUNA 926 1,130,000 1,221 FH

12 TRELLIS TOWERS 1,647 1,988,888 1,208 FH

12 CASA FORTUNA 926 1,100,500 1,189 FH

12 TRELLIS TOWERS 1,485 1,680,000 1,131 FH

12 CALARASI 1,152 1,040,000 903 FH

13 EURO-ASIA PARK 926 993,800 1,074 FH

14 D' PALMA 1,001 1,050,000 1,049 FH

14 THE SUNNY SPRING 1,109 1,000,000 902 FH

14 STARVILLE 1,238 1,080,000 872 FH

14 WINDY HEIGHTS 2,476 2,118,000 856 FH

14 SKT MANSIONS 1,119 918,800 821 FH

14 THE SUNNY SPRING 1,184 970,000 819 FH

14 SINGA COURT 1,668 1,298,000 778 FH

14 SIMS RESIDENCES 1,679 1,150,000 685 99

15 MEYER RESIDENCE 1,152 1,760,000 1,528 FH

15 WATER PLACE 2,228 3,280,000 1,472 99

15 THE BELVEDERE 1,238 1,795,100 1,450 FH

15 COSTA RHU 2,239 3,200,000 1,429 99

15 GRAND DUCHESS AT ST PATRICK'S 1,410 1,998,800 1,418 FH

15 SANCTUARY GREEN 850 1,100,000 1,294 99

15 COSTA RHU 5,253 6,660,000 1,268 99

15 WATER PLACE 732 911,000 1,245 99

15 EMPRADO SUITES 581 700,000 1,204 FH

15 COTE D'AZUR 1,539 1,800,000 1,169 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

15 SANCTUARY GREEN 1,399 1,580,000 1,129 99

15 COSTA RHU 2,056 2,300,000 1,119 99

15 TESSA LODGE 1,227 1,280,000 1,043 FH

15 MANDARIN GARDEN CONDOMINIUM 1,001 955,000 954 99

15 EASTERN RESIDENCE 1,173 1,050,000 895 FH

15 CRESCENDO PARK 1,711 1,490,000 871 FH

16 COSTA DEL SOL 1,313 1,650,000 1,256 99

16 PARBURY HILL CONDOMINIUM 1,453 1,480,000 1,018 FH

16 BAYSHORE PARK 1,173 1,120,000 955 99

16 TANAMERA CREST 1,604 1,120,000 698 99

16 KEW GREEN 3,843 2,500,000 651 99

17 FERRARIA PARK CONDOMINIUM 1,066 1,010,000 948 FH



17 LIGHTHOUSE 3,078 1,480,000 481 99

18 RIS GRANDEUR 1,066 980,000 920 FH

19 KOVAN MELODY 1,173 1,200,000 1,023 99

19 CASA ROSA 1,173 950,000 810 99

19 REGENTVILLE 1,076 815,000 757 99

20 SEASONS VIEW 969 950,000 981 99

20 THE GARDENS AT BISHAN 1,227 1,150,000 937 99

21 THE CASCADIA 570 1,032,000 1,809 FH

21 THE CASCADIA 1,249 2,095,000 1,678 FH

21 THE CASCADIA 883 1,423,000 1,612 FH

21 MAPLEWOODS 850 1,150,000 1,352 FH

21 GARDENVISTA 1,130 1,368,000 1,210 99

21 GARDENVISTA 1,109 1,300,000 1,173 99

21 SUMMERHILL 947 998,000 1,054 FH



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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


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

21 SYMPHONY HEIGHTS 926 968,000 1,046 FH

21 ASTOR GREEN 1,528 1,500,000 981 99

21 HIGH OAK CONDOMINIUM 980 945,000 965 99

21 SPRINGDALE CONDOMINIUM 1,152 1,100,000 955 999

21 SIGNATURE PARK 1,410 1,338,000 949 FH

21 HILLVIEW GREEN 1,507 1,350,000 896 999

22 THE LAKESHORE 1,109 1,150,000 1,037 99

22 THE CENTRIS 1,259 1,275,000 1,012 99

22 IVORY HEIGHTS 1,668 1,200,000 719 100

22 IVORY HEIGHTS 1,701 1,208,000 710 100

22 LAKESIDE APARTMENTS 1,518 850,000 560 99

23 HILLVISTA 1,152 1,400,000 1,216 FH

23 CASHEW PARK CONDOMINIUM 1,367 1,180,000 863 999

23 CENTURY MANSIONS 936 800,000 854 FH

23 ESPA 1,206 980,000 813 999

23 REGENT HEIGHTS 1,023 805,000 787 99

23 THE AMSTON 1,313 993,000 756 999

25 CASABLANCA 936 780,000 833 99

25 THE WOODGROVE 1,033 715,000 692 99

25 WOODGROVE CONDOMINIUM 2,433 1,550,000 637 99

26 CASTLE GREEN 947 785,000 829 99

27 ORCHID PARK CONDOMINIUM 1,249 880,000 705 99

28 MIMOSA PARK 2,153 1,700,000 790 FH
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singapore property weekly issue 52

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