Issue 161

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CONTENTS
p2 The Great Singapore Property Sale: Buy
Now or Wait Till Later?
p7 Singapore Property News This Week
p12 Resale Property Transactions
(June 5 June 10 )
Welcome to the 161
st
edition of the
Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 161
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By Property Soul (Guest Contributor)
The annual GSS (Great Singapore Sale) may
have started only on May 25, but for property
new launches, the GSS started even earlier.
The sale is now on
With the steam of an overheated property
market dying down, the buzz has now shifted
to developers playing discount games to push
new projects or clear old stock. With so many
'great deals', buyers are spoiled for choices.
1. MCL Land cut prices for Hallmark
Residences in Bukit Timah and sold 39 units
in February and March.
2. CapitaLand's Sky Habitat in Bishan
managed to move over 100 units after
The Great Singapore Property Sale: Buy Now or Wait Till Later?
SINGAPORE PROPERTY WEEKLY Issue 161
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re-launching at 10 to 15 percent off its original
prices set two years ago.
3. Wheelock Properties put up 95 units of The
Panorama in Ang Mo Kio for balloting. With a
discount of 12 percent, they claimed to sell 80
to 85 units.
4. China developer Ximeng Land relaunched
the balance of 12 luxury villas on Pearl Island
in Sentosa Cove, offering an 8 percent
discount from a year ago.
It proves that 'early birds' enjoy no advantage.
We don't see developers giving rebates back
to early buyers who have paid at premium
prices.
Let's face it: It's a buyers' market now!
I am particularly amazed by the 180 degree
change of attitude at The Panorama. I visited
the sales gallery three months ago. A
developers representative was patrolling
there to ensure no photo-taking, and no
distribution of the sales brochure before
booking a unit.
Back in early January, a newspaper article
mentioned that "hundreds of people visited
the showflat" and "60 units out of the 120
units released were booked on the first day."
But the caveats show that only 56 units were
transacted by end of April. So what happened
to the units for the next 140 days after selling
like hot cakes on the first day?
Anyway, the project won't be completed until
2019. Who knows what the property market
will be like five years from now?
Developers are now trying to transfer the risk
of an unknown market to the buyers.
Nonetheless, many buyers, especially first-
time buyers and HDB upgraders,
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are excited by the new round of discounts
and can't wait to rush into the market.
More irresistible bargains on the way?
An HSR report revealed that 50 residential
projects sold less than half of their total units,
including Hillion Residences in Bukit Panjang,
Hillview Peak in Bukit Batok, Vue 8
Residence in Pasir Ris, The Glades in Tanah
Merah, Treasure in Balmoral, Victory Ville,
Devonshire 8, One Balmoral and 8 Raja.
Eight of these new projects sold less than 10
percent while two did not manage to sell any
unit since their launch last year.
A Straits Times article on June 7 highlights
the fact that 24 projects may be liable to
$55.1 million in extension charges.
Developers with foreign shareholders have to
pay 8 to 24 percent of the land price to the
government if they fail to sell their units two
years after TOP. Projects that have already
missed the deadline include Emerald Hill and
The Marq.
Just the tip of the iceberg
All these facts are only the tip of the iceberg:
1. Many luxury homes in prime districts like
Ardmore Park and Grange Road have been
completed but not yet launched.
2. According to URA, as of 1st quarter 2014,
there are a total of 6,733 private residential
units launched but unsold. On top of that, an
additional 80,261 private residential units are
in the supply pipeline from the rest of this
year to beyond 2018.
3. While developers are clearing their existing
stock, every month there are new projects
obtaining their TOP and new sites released
by the government to build more private
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housing.
4. New projects are not the only choice for
buyers. There is strong competition from
countless resale units whose owners are
more flexible to slash prices if they are
desperate to sell.
5. Local developers are competing with their
counterparts from Malaysia, Thailand,
Indonesia, Philippines, Australia, Japan, UK,
US, etc. targeting the same buyers to move
their current and future projects.
How can developers find so many buyers for
their new units if they are only giving a 15
percent discount? This is just the beginning of
the big sale!
Where are the foreign shoppers?
In the midst of this 'uniquely Singapore'
Property GSS, our most wanted foreign
shoppers are nowhere to be seen.
Can participating developers seriously look
into promotions targeting tourists from top-
spending destinations? How about partnering
with Singapore Tourism Board for organized
shopping tours with free sightseeing, flight
and accommodation bundled with booking a
luxury home, with the 15 percent foreigner
Additional Buyer Stamp Duty absorbed by the
developers?
After all, individual developers have already
stepped up their marketing efforts in overseas
countries. For instance, S P Setia is now
marketing Eco Sanctuary at Chestnut Avenue
to buyers in Hong Kong who are suffering
from Double Stamp Duty introduced by the
local government.
Lesson learned: Sales of any product not
meeting expectations at home can often find
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a new market in other countries.
The sale worth waiting for
This year the GSS is in its twentieth year
experienced shoppers like you and I have
long become savvy buyers.
When the sale just starts, I am not in a hurry
to buy. It is different from a private sale that is
only open for privileged customers for one
day.
Every sale starts with a 10 percent end of
season discount. Then it increases to a 20
percent storewide discount, followed by a
further reduction of 50 percent, and ends with
a final reduction of 70 percent or more.
Sometimes there is even a warehouse sale or
moving out sale with massive mark-down of
prices for stock clearance.
By then, I may not be able to find the size,
color or style I want. But it doesn't matter. I
have a limited budget and will be very happy
spotting a few 'gems' from the leftovers!
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the newly released No B.S. Guide to
Property Investment.
SINGAPORE PROPERTY WEEKLY Issue 161
Singapore Property This Week
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Residential
More land for private homes in Central
Region up for tender
Up from 28.9 per cent in H1 2014, the
proportion of private housing supply in the
Central Region has increased to 33.2 per
cent in H2 this year for the Government Land
Sales (GLS) programme. This is an 18.1 per
cent increase from the private housing supply
land sales in H2 last year, which was at 15.1
per cent. It is also a substantial jump from the
low 8.6 per cent in H1 2012. According to the
Urban Redevelopment Authority (URA), the
sale and development of residential sites in
the Central Region will bring homes closer to
jobs in the city. This will ease pressure on the
transport infrastructure as commuting time
between home and work is reduced. Tan
Tiong Cheng, the chairman of Knight Frank
believes that this is the right time to reduce
the proportion of private housing supply
Outside Central Region (OCR) from the GLS
confirmed list as demand for suburban private
condos have fallen, with the adequate supply
of new BTO HDB flats.
(Source: Business Times)
Sale of private condos doubles in May
According to the Urban Redevelopment
Authority (URA), 1,470 private condos were
sold in May, which is almost 96 per cent more
than the 749 units sold in April.
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This is the highest recorded sales since June
2013. The increase in sales is likely due to
the increase in the number of condos
launched last month. In May, 1,790 condo
units were launched as compared to just 600
units in April. Ong Teck Hui, national director
of Research and Consultancy at JLL believes
that the strong showing and increased
launches reflects developers confidence in
the market and shows that buyers are still in
the market. However, market analysts believe
this positive trend will not persist in June, as it
is a seasonally slow period due to the school
holidays.
(Source: Business Times)
Commercial
Boutique hotel in Kampong Glam selling
for $17-18 million
A boutique hotel with a total land area of
4,275 square feet, in Kampong Glam
Conservation Area is up for sale. Its indicative
pricing is at $17 to $18 million. While the area
is zoned for commercial use, the site is
permanently approved for hotel use. The
boutique hotel which comprises of three shop
houses located at 9, 11 and 15 Jalan Klapa,
has a balance lease term of 92 years and a
gross floor area of about 7,911 square feet.
The hotel has 15 themed rooms of about 215
square feet, over two storeys and a
mezzanine level. It will be sold with vacant
possession said Shuan Poh, from Cushman
& Wakefield, the marketing agent for the
hotel.
(Source: Business Times)
Two hotels to spring up in J oo Chiat
It is believed that InterContinental Hotels
Group (IHG) has signed a memorandum of
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understanding to operate two new hotels in
Joo Chiat. Located next to 112 Katong, the
hotels are to be built on the former Joo Chiat
Police Station at East Coast Road. According
to the Urban Redevelopment Authority, the
building has to be restored due to its historical
significance. If the MOU leads to signed
management contracts, the two hotels will be
branded as Holiday Inn Express, and Hotel
Indigo. The 99-year leasehold site which was
won by Master Contract Services and Keong
Hong Construction for $352.8 million, or
$1,326.11 per square foot of potential gross
floor area, has a maximum gross floor area of
266,041 square feet and is expected to be
launched in 2017.
(Source: Business Times)
More shorter-tenure industrial sites
launching in H2
To keep prices affordable, more shorter-
tenure industrial sites will be released in H2
said the Ministry of Trade and Industry (MTI).
In mid-2012, the government shortened
tenures of sites sold under the Industrial
Government Land Sales (IGLS) programme
to a maximum of 30 years, down from the
previous 60-year maximum. According to
MTI, this will increase the flexibility for land
redevelopment. Among the 15 sites to be
launched in H2, 3 are 20-year leasehold
plots, which are the shortest leases ever
offered. The combined area of 15 sites stands
at 18.87 ha, and 9 of them are on the
confirmed lists.
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While the shortened leases will help
developers manage costs, Tan Boon Leong
from Colliers International believe that
developers will still bid highly for a good site.
Nicholas Mak from SLP International also
agrees that shortened leases may not ease
costs, land costs do not make up the bulk of
the development costs for industrial buildings.
(Source: Business Times)
Shorter leases have pros and cons
Shorter leases reduce speculations but
makes reselling and financing difficult.
According to analysts, reducing lease from 60
to 30 years should lower its value by 25 per
cent. For example, a 60-year leasehold
Business-1 plot at Ubi Ave 4 sold for $2,333
per square metre per plot ratio (psm ppr) in
March 2011. However, a nearby plot was sold
for 21 per cent less at $1,851 psm ppr two
years later, when the government shortened
its lease by almost half. Yet, shorter leases
mean that construction and purchase costs
are spread over a short time. Not only so, it
may result in higher monthly mortgages and
thus reduce the liquidity and cash flow of the
company, said Mervyn Koh from UOB Group.
Reselling of the property is also a problem
with shorter leases as owners may struggle to
finance the property. Nonetheless, Ong Kah
Seng from RST Research believes that by
reducing lease periods, the government can
keep land speculation in check.
(Source: Business Times)
J urong Lake District to be largest
commercial centre outside of CBD
The Jurong Lake District (JLD) will become
the largest commercial centre outside of the
Central Business District (CBD) and it is used
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as a test bed for initiatives under the smart
nation scheme. JLD will comprise of a mixed-
use urban precinct for sustainable
development and connectivity, according to
the Minister for Communications and
Information, Yaccob Ibrahim. As identified in
the Urban Redevelopment Authoritys Master
Plan, JLD will be one of the new growth areas
that will be pushed for economic
developments in the coming 10 to 15 years.
Smart nation applications that improve the
quality of life and support sustainability will be
tested in JLD.
(Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of Jun 5 Jun 10
NOTE: This data only covers non-landed residential resale property
transactions with caveats lodged with the Singapore Land Authority.
Typically, caveats are lodged at least 2-3 weeks after a purchaser
signs an OTP, hence the lagged nature of the data.
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
1 THE CLIFT 818 1,580,000 1,931 99
3 RIVER PLACE 829 1,180,000 1,424 99
3 THE METROPOLITAN CONDOMINIUM 1,399 1,740,000 1,243 99
3 THE ANCHORAGE 1,206 1,400,000 1,161 FH
5 WEST BAY CONDOMINIUM 872 950,000 1,090 99
9 GRANGE INFINITE 2,702 6,684,800 2,474 FH
9 RIVERGATE 1,755 3,509,000 2,000 FH
9 EURO-ASIA COURT 1,055 1,570,000 1,488 FH
9 CAVENAGH GARDENS 1,550 1,630,000 1,052 FH
10 ARDMORE PARK 2,885 8,700,000 3,016 FH
10 VIZ AT HOLLAND 861 1,330,000 1,545 FH
10 BALMORAL RESIDENCES 1,453 2,000,000 1,376 FH
10 GLENTREES 1,991 2,380,000 1,195 999
11 NEWTON LODGE 1,216 1,780,000 1,463 FH
12 ONE ST MICHAEL'S 1,184 1,439,000 1,215 FH
12 AVA TOWERS 1,227 1,220,000 994 FH
14 LA BRISA 527 730,000 1,384 FH
15 D'ECOSIA 1,539 2,250,000 1,462 FH
15 GRAND DUCHESS AT ST PATRICK'S 1,970 2,700,000 1,371 FH
15 THE WATERSIDE 2,142 2,900,000 1,354 FH
15 IVORY 657 820,000 1,249 FH
15 THE MONTAGE 635 755,000 1,189 FH
15 MANDARIN GARDEN CONDOMINIUM 732 838,000 1,145 99
15 CUBIK 1,119 1,270,000 1,134 FH
16 WATERFRONT WAVES 2,992 3,360,000 1,123 99
16 THE BAYSHORE 947 971,000 1,025 99
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
16 PALMWOODS 915 915,000 1,000 99
16 SUNHAVEN 990 985,000 995 FH
16 THE BAYSHORE 1,184 1,128,000 953 99
17 FERRARIA PARK CONDOMINIUM 1,356 1,324,812 977 FH
17 EDELWEISS PARK CONDOMINIUM 1,055 938,000 889 FH
18 LIVIA 1,539 1,388,000 902 99
19 CHILTERN PARK 915 1,008,000 1,102 99
19 CHILTERN PARK 1,302 1,170,000 898 99
19 EVERGREEN PARK 1,173 830,000 707 99
20 BISHAN 8 1,163 1,340,000 1,153 99
21 THE CASCADIA 990 1,661,319 1,678 FH
21 THE NEXUS 947 1,500,000 1,584 FH
21 BROOKVALE PARK 1,679 1,480,000 881 999
22 THE LAKESHORE 861 1,000,000 1,161 99
23 HILLVIEW REGENCY 1,130 960,000 849 99
23 GUILIN VIEW 1,281 1,070,000 835 99
23 REGENT GROVE 1,163 918,000 790 99
23 PALM GARDENS 1,206 928,000 770 99
23 PALM GARDENS 1,206 900,000 747 99
23 THE MADEIRA 3,046 1,800,000 591 99
26 BULLION PARK 1,259 1,270,000 1,008 FH
27 EUPHONY GARDENS 1,216 855,000 703 99