Issue 145

Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.

CONTENTS
p2

FROM THE

EDITOR

A Bank Employee, a Property Purchase

Welcome to the 145th edition of the

Singapore Property Weekly.

and a Tragic Death

Hope you like it!

p6

Singapore Property News This Week

p12

Resale Property Transactions

Mr. Propwise

(February 12 February 18)

Contribute

Advertise

Do you have articles and insights and articles that youd like to share
with thousands of readers interested in the Singapore property
market? Send them to us at info@propwise.sg, and if theyre good
enough, well publish them here, on our blog and even on Yahoo!
News.

Want to get your brand, product, service or property listing out to

thousands of Singapore property investors at a very reasonable
cost? Head over to www.propwise.sg/advertise/ to find out more.

SINGAPORE PROPERTY WEEKLY Issue 145

A Bank Employee a Property Purchase and a Tragic Death

By Property Soul (guest contributor)
On 18 February 2014, a 33-year-old
employee of JPMorgan Chase jumped to his
death from the rooftop of the company's 30storey office building in Hong Kong. This was
the third suicide in three weeks for the
financial institution.
In January, a 39-year-old Vice President of
Corporate
and
Investment
Banking
Technology plunged to his death at the bank's
33-storey London office. He joined the
company since 2004.
Earlier this month, the body of a 37-year-old
Executive Director of the Global Equities
Group in the New York office was found in his

Back to Contents

Page | 2

SINGAPORE PROPERTY WEEKLY Issue 145

suburban home. The Harvard graduate had
been working in the company for the last 14
years.
The sad story of the victim
For the latest suicide, the victim studied in
Canada and had been working in Hong Kong
for a few years. In August 2011, he joined
JPMorgan Chase and became an Associate
in Asia Investment Banking Billing Liaison last
year.
Friends told the media that he was a cheerful
person but had been complaining lately about
stress at work. His colleagues believed that
he was informed about his retrenchment right
before his suicide. He had bought a unit in a
luxurious condominium just two years ago.
He wouldn't have imagined that his company
would fire him when he was paying the
mortgage on his single income.
Back to Contents

Being employed by the biggest bank in the

US may have given him a taste of career
success. Joining the circle of well-paid
bankers may have misled him into buying a
home at an unaffordably high price at the
peak of the property market. But he certainly
doesn't deserve to end his life at such a
young age for this common mistake that
many others make.

On the same day of his death, by

coincidence, CNN Money published an article
titled "Making 6 figures on Wall Street, but life
stinks", highlighting the problems of young
executives in investment banking long
working hours, a stressful environment, job
uncertainty and a guilty conscience. This is a
far cry from what we see in the movie The
Wolf of Wall Street, with the privileged few
making big money, driving fast cars, dating
sexy girls and taking drugs.
Page | 3

SINGAPORE PROPERTY WEEKLY Issue 145

To what extent is the bank responsible?
With new technologies displacing manpower,
JPMorgan Chase has announced its plans to
cut 4,000 jobs in its consumer banking
division. In addition, the plan to lay off 15,000
employees in the mortgage division has been
brought forward earlier than scheduled. The
bank now tops the list of the top ten jobcutting companies by trimming the most
headcount in the US.
Streamlining its workforce seems inevitable
with the Department of Justice asking the
bank to pay $13 billion as the settlement over
mortgage bond sales that went bad. It is also
facing the breach of antitrust together with
five other international banks and preparing to
pay another astronomical sum for the penalty.
Ironically, JPMorgan Chase has just given its
CEO a 74 percent raise or a whopping $20
Back to Contents

million for his 2013 compensation. This

phenomenon in the banking industry is best
summarized in that CNN Money article:
"Financial firms hold the power to write rules
that disproportionately benefit a rich minority."
That is why 46 percent of the world's wealth
is controlled by the richest one percent of the
world's population. That is what makes life so
unfair.
The metaphor of snails
That evening I went for a walk in my
neighborhood. A few children formed a circle
around a big snail. At first they did an
experiment to see how the snail would react
after they touched it. Feeling threatened, it
withdrew its whole body into its coiled shell.
After a few rounds, they intensified the game
by stamping and kicking it.

"Get out of your shell and run away silly,

Page | 4

SINGAPORE PROPERTY WEEKLY Issue 145

cried one child.
"No, it can't. It moves everywhere with that
bulky thing on its back. Snails die with their
shells." Another child explained.
The rest continued their bullying game. The
poor thing was unable to defend itself except
hiding inside its shell which was close to
being smashed.

I was taken by a sudden sadness. We need a

roof over our head like snails need their
shells. The moment we take up a housing
mortgage we are carrying the financial burden
on our back wherever we go, and no matter
what happens.
We toil day and night, endure any hardship at
work, accept our boss' unreasonable
demand, and do everything we can just to be
able to keep that shell house on our back. But

Back to Contents

even if we compromise, we may still have to

sacrifice at the end. Some of us simply can't
escape our fate when the time comes. All
because the rules of this world are written by
the 'rich minority' who 'hold the power'.
The life of a snail is miserable. Given a
choice, I would rather be a cicada. It may not
own a shell, but at least it can shed off its skin
at the most critical moment to survive any
foreseeable
crises
or
unforeseen
circumstances. Above all, it has the freedom
to fly wherever it wants.
What do you choose to be? A snail or a
cicada?
By guest contributor Property Soul, a
successful property investor and enthusiast
who shares her experiences and knowledge
on her blog.

Page | 5

SINGAPORE PROPERTY WEEKLY Issue 145

Singapore Property This Week

Residential
Minister Khaw: more help for elderlys
housing
In a post-Budget dialogue with grassroots
leaders
on
February
23,
National
Development Minister Khaw Boon Wan was
reported to say that the ministry will consider
expanding the Lease Buyback Scheme which
can aid the elderly in monetising their housing
assets. The ministry is also reviewing
suggestions of expanding the scheme to four
and five-room flats, because as of now only
elderly people who own three-room and
smaller flats are eligible under the scheme.
(Source: Business Times)
Back to Contents

Forecast drop in stamp duty not negative

for property market
An analysis by The Business Times showed
that the Budgets forecast drop of 30 percent
in stamp duty revenues, which seemed
troubling at first, is not likely to predict a
terrible year for the property market.
Previously
Finance
Minister
Tharman
Shanmugaratnam's Budget announced that
revenue from stamp duties could decrease to
$2.8 billion for the year ending March 2015,
although it could be $4.1 billion for the year
ending March 2014. In addition, property
consultants are expecting a 10 percent
correction for the property market this year,
while DBS chief executive Piyush Gupta
Page | 6

SINGAPORE PROPERTY WEEKLY Issue 145

estimated a 10-15 percent drop.
(Source: Business Times)
MCL Land wins top bids for both Choa
Chu Kang EC plots
MCL Land (Brighton) has won the top bids for
both adjoining executive condominium (EC)
plots in Choa Chu Kang. MCLs top bid for
one site was $375.05 psf ppr, and was
$338.94 psf ppr for the other site, which
translates to a tender price of $232.5 million
and $210.1 million for Plot A and Plot B
respectively. The second highest bid for Plot A
was $373.26 psf ppr from JBE Holdings. The
second highest bid for Plot B was $333.14 psf
ppr from Verwood Holdings and TID
Residential.
(Source: Business Times)

Back to Contents

CDL chairman hopes

property timelines

for

easing

of

As the current rules on qualifying certificates

(QCs) require developers and foreign
stakeholders to have strict timelines for
completing and selling a residential
development,
QC
rules
may
cause
developers who purchase private land to
push their projects quickly and deplete their
land bank at the same time. Those
developers then would turn to Government
Land Sales sites with high bids to secure the
land to restore their land bank, said City
Developments (CDL) chairman Kwek Leng
Beng at the groups full-year results briefing.
Mr Kwek also expressed his hope that the
government will change or remove the rules
on QCs.

Page | 7

SINGAPORE PROPERTY WEEKLY Issue 145

With the QCs, bidding for sites will be
competitive, yet business has to bid at higher
prices and sell the units at high prices
although market conditions do not allow this
at the moment.
(Source: Business Times)
Singapore private home rental rates to
slide

Analysts currently have a consensus that

private home rental rates are expected to
decrease in the next two years. According to
official data, private home rental rates have
had the first quarter-on-quarter decline in four
years. As the government continues its
restrictions on the foreign labor force, the
hope that Singapores expatriate population
and resilient economic growth will support
housing rents is unlikely. Savills Research
said that demand in the residential leasing
Back to Contents

market will decrease as the pool of overseas

nationals is shrinking with employment
restrictions, and that rents in some locations
may see a correction, especially in the massmarket segment with strong competition and
the smaller rental budgets with rising cost of
living.
(Source: Business Times)
Prince Charles Crescent site up for sale
A residential site at Prince Charles Crescent
(Parcel B) is now up for sale in a public
tender by the government. The site has a 99year leasehold and is expected to yield 655
residential units under the confirmed list of
the
Government
Land
Sales
(GLS)
programme for the first half of 2014. It has an
area of 24,964 sq m with a permissible gross
floor area of 52,426 sq m. The sites prime
location is also reported to attract
Page | 8

SINGAPORE PROPERTY WEEKLY Issue 145

interest it is within an established residential
estate, 10-minute drive to Orchard Road, and
close to schools such as Crescent Girls'
School and Gan Eng Seng School.
(Source: Business Times)
220 of 300 units sold at RiverTrees
Residences
The condominium project in Sengkang
Rivertrees Residences has attracted great
interest from buyers including both HDB
upgraders buying the first private apartment
and investors. 220 out of 300 launched units
across all unit types have been sold, with twobedroom units and strata-titled landed homes
or Cove Houses selling especially well. The
two-bedroom units start from $618,000, while
the price of the eight duplex three-bedroom
"Cove Houses" is below $2 million.
Permanent residents have to get approval
Back to Contents

from the Land Dealings Unit under the

Singapore Land Authority to be eligible for the
landed homes.
(Source: Business Times)
Riviera Point up for en bloc sale
The 33-unit freehold residential project
Riviera Point has been launched for en bloc
sale by public tender for the fifth time for $68
million or $1,379 psf ppr on its gross floor
area by marketing agent Jones Lang LaSalle
(JLL). JLL has been the agent for Riviera
Point for two times. JLL first attempted to sell
the project last October when the Total Debt
Servicing Ratio interrupted the interest of
prospective buyers. In 2011, under the
marketing agent Knight Frank, the residential
development had an asking price of $70
million, or $1,420 psf ppr.

(Source: Business Times)

Page | 9

SINGAPORE PROPERTY WEEKLY Issue 145

Development charge rates increase
Development charge (DC) rates are the fee
applicable to the enhancement of the use of
sites or the building of bigger projects on
sites. DC rates were reported to have
increased by an average of 15 percent for
commercial use, 13 per cent for hotel/hospital
use, one percent for landed and non-landed
residential uses, yet remained the same for
industrial use. Property consultants said that
such rise in residential DC is in alignment with
decreasing home prices for the second half of
2013, while emerging moderation in the
industrial property market could be the reason
behind the unchanged DC rates for industrial
use.
(Source: Business Times)

No concern of a housing bubble in

Singapore
Citigroup said that since Singapores
household debt tied to the real estate market
is only a small part of property values, a
housing bubble is unlikely. Citigroups
analysis of government data showed that the
$203 billion of mortgages only accounted for
24.2 percent of the value of residential
properties in Q3. Michael Zink, Head of
Citigroup's operations in South-east Asia, also
said that 90 percent of households live in a
home they own, making a housing bubble
improbable. As the government has been
introducing more taxes and restrictions,
Singapores home prices in Q4 decreased 0.9
percent.
(Source: Business Times)

Back to Contents

Page | 10

SINGAPORE PROPERTY WEEKLY Issue 145

Commercial
JTCs five slots launched in Tuas
As JTC Corporation plans to offer affordable
land parcels to small and medium-sized
industrialists, it has launched five small
industrial sites on February 25. Plots 45 and
47 of 6,988 sq m each in Tuas South Street 6
were launched under the confirmed list of the
industrial government land sales (IGLS)
programme with a lease of 21 years and
three months. The two sites are also zoned
Business-2 and have maximum permissible
gross plot ratios of 1.0. Ong Kah Seng,
director at R'ST Research, said that the sites
could attract a minimum of five bids each and
predicted the top big to be between $80 and
$100 psf ppr.
(Source: Business Times)

Back to Contents

Page | 11

SINGAPORE PROPERTY WEEKLY Issue 145

Non-Landed Residential Resale Property Transactions for the Week of Feb 12 Feb 18
Postal
District
2
7
9
10
10
10
10
11
11
11
15
15
16
16
18
18
20
21
25
27

Project Name
SPOTTISWOODE PARK
BURLINGTON SQUARE
ST THOMAS SUITES
FOUR SEASONS PARK
CUSCADEN RESIDENCES
MARTINA MANSIONS
PALM SPRING
NEWTON SUITES
SKY@ELEVEN
HILLCREST ARCADIA
ONE AMBER
CRYSTAL RHU
COSTA DEL SOL
BAYSHORE PARK
EASTPOINT GREEN
LIVIA
RAFFLESIA CONDOMINIUM
PANDAN VALLEY
CASABLANCA
SUN PLAZA

Area Transacted Price

Tenure
(sqft)
Price ($) ($ psf)
1,270
923,400
727
99
840
1,200,000 1,429
99
2,605 4,928,000 1,892
FH
2,153 5,000,000 2,323
FH
1,442 3,000,000 2,080
FH
1,259 1,980,000 1,572
FH
2,131 3,100,000 1,455
FH
797
1,550,000 1,946
FH
2,271 3,827,000 1,685
FH
452
600,000
1,327
99
1,335 1,890,000 1,416
FH
1,281 1,580,000 1,233
FH
1,475 2,000,000 1,356
99
936
1,058,000 1,130
99
1,173 1,040,000
886
99
1,539 1,335,000
867
99
1,216 1,350,000 1,110
99
1,755 1,820,000 1,037
FH
1,130
915,000
810
99
1,023
860,000
841
99

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.

Back to Contents

Page | 12