Issue 221

Copyright 2011-2014 www.Propwise.sg. All Rights Reserved.

CONTENTS
p2

FROM THE

EDITOR

Are Executive Condominiums Still an

Welcome to the 221st edition of the

Singapore Property Weekly.

Attractive Investment? (Part 1)

p7

p10

Hope you like it!

Singapore Property News This Week

Mr. Propwise

Resale Property Transactions

(July 27 August 4 )

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SINGAPORE PROPERTY WEEKLY Issue 221

Are Executive Condominiums Still an Attractive

Investment? (Part 1)
By Gerald Tay (guest contributor)
The Executive Condominium (EC) concept
was an innovative public housing initiative
launched by the Government in 1997 for
Singaporeans and PRs to enjoy private
property without the huge price tag that
comes with it. With rising property prices in
recent years, more buyers have taken to ECs
with the government releasing ample land for
such developments.

But is buying an EC as attractive as before?

Or are ECs simply an over-hyped purchase?

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SINGAPORE PROPERTY WEEKLY Issue 221

Smaller unit sizes, higher PSF prices

unlike previous EC buyers of the early 2000s.

Some EC projects had penthouses that sold

at unrealistically high prices for buyers who
had to have an income ceiling of $12,000.
The Government thus decided in January
2013 to limit the maximum allowed apartment
size in ECs to 1,700 square feet.

Potential Oversupply of ECs

In the new EC launches, sizes like 860

square feet for a 3-bedroom and 1,200
square feet for a 4-bedroom flat are common.
The sizes include an oversized balcony and
A/C ledge, while the bedrooms can be small
as 66 square feet.

Today's unwitting EC buyers will thus pay

higher per square foot prices to compensate
for the developers loss of profit margins. Its
questionable whether buyers of flats with
such high per square foot prices will be able
to earn a reasonable profit when they sell,
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Owners hoping to sell their EC units in the

future have to contend with the large number
of units of both ECs and private property
projects that were launched in the last five
years.
From 1997 to 2004, only 14 ECs were built.
No EC was built between 2005 and 2009, as
the HDB phased out the EC scheme in favour
of the DBSS scheme. EC land sales only
resumed in 2010.
From 2010 to 2015, developers built and
launched a total of 41 Ecs!
In those five years, 23 out of the total 41
launches (56% of total launches) were
located in the Sengkang/Punggol and
Woodlands area.
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SINGAPORE PROPERTY WEEKLY Issue 221

2012 and 2014 registered the highest number
of ECs with 11 and 10 new launches
respectively.
Whether with the five year MOP (Minimum
Occupation Period) or ten year private
property conversion process, these ECs
entering the future resale property market will
face tough competition. Whos going to
absorb this supply?

ECs have lost the exclusivity they enjoyed in

the past decade, with so many such
developments sprouting up within a short five
year time span.
Potential oversupply of private properties
As at the end of 2nd Quarter 2015, there was
a total supply of 61,237 uncompleted private
residential units (excluding ECs) in the
pipeline, compared to the 68,201 units in 1st

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Quarter 2015. Of this number, 24,435 units

remained unsold as at 2nd Quarter 2015.
After adding the supply of 14,701 EC units in
the pipeline, there were 75,938 units in the
pipeline.

Based on expected completion dates

reported by developers, 13,191 units
(including ECs) will be completed in the
second half of 2015. Another 25,841 units
(including ECs) are expected for completion
in 2016. In comparison, 23,298 units
(including ECs) were completed in 2014.
In recent years, plenty of mass market suburban condos and apartments have been
sprouting up all over the Outside Central
Region (OCR). Like it or not, ECs that meet
the 10-year private property conversion status
will be facing tough competition from these
private mass market properties.
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SINGAPORE PROPERTY WEEKLY Issue 221

Home buyers will have plenty of choices.
Sellers cannot be choosy then.
Ageing population and low GDP growth
Singapore
has
enjoyed
favourable
demographics for the past five decades, with
a post-war baby boom. Within a generation,
the nation was able to educate baby
boomers, create enough jobs for them and
make them wealthier through rising home
prices. We saw how our parents generation
profited from rapidly rising HDB prices since
1965. This wealth was passed on
subsequently to the next generation.

Between 1965 and this year, Singapores

population grew from 1.9 million to 5.5 million.
However, the number of citizens aged 65 and
above is increasing rapidly, as population
growth slows. The size of this group of

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citizens doubled from 220,000 in 2000 to

440,000 today, and is expected to increase to
900,000 by 2030.
Last year, the total population here grew by
1.3 per cent, its slowest pace since 2005,
while the total fertility rate continued to fall
despite the Governments incentives and
encouragement.
This aging population will eventually have a
profound impact on every segment of the
property market and society as a whole.

Like private properties, ECs that reach their

10 year private property conversion status
between 2025 and 2030 will potentially
experience the negative impact of an aging
population:low population, consumption and
GDP growth will curb any price appreciation.

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SINGAPORE PROPERTY WEEKLY Issue 221

All of these will happen within the next couple
of decades. Notwithstanding any shocks to
the global economy, we shall see what luck
brings to buyers who have overpaid for
properties in recent years.

This is the end of part 1 of this article. In part

2 Gerald will examine further whether ECs
still represent an attractive investment
opportunity.
By guest contributor Gerald Tay, who is the
founder and coach at CREI Academy Group
Pte Ltd, an organization dedicated to
empowering retail property investors with
smarter investing philosophy and strategies.
He is a full-time investor with over 13 years of
solid experience in building his wealth
through Property Investment and is financially
wealthy today.

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SINGAPORE PROPERTY WEEKLY Issue 221

Singapore Property This Week

Residential
Julys private condo
increased by 0.3%

resale

prices

According to SRX Property, resale prices of

private condominiums have increased by
0.3% in July 2015 from the previous month.
However, market experts believe that the
private property resale market continues to
appear weak. Resale prices of condominium
units in the city and suburban areas have
increased by 1.7% and 1% respectively,
while, resale prices in the city fringe fell by
2.2%. Eugene Lim from ERA said that this
could mean that prices are stabilising. He
added that large changes in price levels are

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unlikely in the near future, provided there are

no economic shocks. Nonetheless, as the
government has made known that property
cooling measures will not be lifted soon, Lim
believes that it is too early to say if resale
prices will continue to rise. Ong Kah Seng
from RST Research agreed. He added that
with the Total Debt Servicing Ratio framework
in placed and with an oversupply of
residential property, buyers sentiments may
still remain weak. Year-on-year, resale prices
for condominiums have fallen by 0.9% this
July. Resale volume also fell from 575 units in
June to 515 units in Julya 10.4% fall in
resale volume.

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 221

Julys rental leasing volume increase by
15%
Data from SRX Property showed that in July,
leasing volumes for private condominium
units have increased by 15% year-on-year. In
the Core Central Region, rentals for private
condos fell less than those in the Outside
Central Region. This was also observed in
the HDB rental market where there was a
smaller drop for flats in mature estates than
those in the non-mature estates. Tan Tiong
Cheng from Knight Frank said that in mature
estates, fewer HDB flats were put up for
lease. This is likely because flat owners would
rather live in those prime locations than to
lease out the unit. As such, rental demand is
stronger for flats in mature estates. According
to SRX Propertys rental index for HDB flats,
rental for flats in mature estates have eased
1.1% year-on-year in July 2015. On the other
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hand, rentals for flats in non-mature estates

have fallen 1.4% year-on-year in the same
period of time. Market experts believe that
tenants are relocating from the suburbs
towards the city. This could have contributed
to the rise in leasing volumes for HDB flats,
said market experts.

(Source: Business Times)

Commercial
Two blocks at Dempsey Road to be
developed for F&B and retail use
In a joint announcement by Singapore Land
Authority (SLA) and Singapore Tourism Board
(STB), a tender to develop Blocks 17 and 18
at Dempsey Road for food and beverage and
retail use will be conducted. The tender aims
to strengthen the sites position as a unique
lifestyle enclave. The tender will be evaluated
according to its price and quality.
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SINGAPORE PROPERTY WEEKLY Issue 221

Currently, the asking rents for retail and F&B

units in the surrounding blocks range from
$6.50 to $8 psf. The two sites have a total of
5,268 sqm of land with a gross floor area of
3,086 sqm. Both sites will be tendered as a
single unit.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 221

Non-Landed Residential Resale Property Transactions for the Week of Jul 27 Aug 4

Postal
District
3
4
4
5
5
7
7
8
8
8
9
9
9
9
9
9
10
10
10
10
11
11
11
11

Project Name
QUEENS
THE INTERLACE
THE INTERLACE
BLUE HORIZON
BLUE HORIZON
CONCOURSE SKYLINE
THE PLAZA
CITYLIGHTS
KENTISH GREEN
CITIGATE RESIDENCE
MARTIN PLACE RESIDENCES
THE LIGHT @ CAIRNHILL
THE IMPERIAL
MIRAGE TOWER
CITYVALE
CAVENAGH GARDENS
GARDEN APARTMENT
BELMOND GREEN
JEWEL OF BALMORAL
CORONA VILLE
BUCKLEY CLASSIQUE
VIVA
L'VIV
CUBE 8

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Area
(sqft)
1,195
1,873
2,056
1,163
1,163
1,130
840
893
1,270
753
592
2,034
2,024
1,227
1,281
1,163
2,648
1,399
1,345
1,528
1,410
1,959
2,228
893

Transacted
Price ($)
1,515,000
2,391,300
2,476,000
1,250,000
1,190,000
1,950,000
800,000
1,270,000
1,230,000
600,000
1,302,400
3,860,000
3,440,000
2,030,000
1,730,000
1,400,000
3,900,000
2,050,000
1,900,000
1,900,000
2,988,000
4,050,000
3,760,000
1,380,000

Price
Tenure
($ psf)
1,268
99
1,277
99
1,204
99
1,075
99
1,024
99
1,725
99
953
99
1,422
99
968
99
796
FH
2,200
FH
1,897
FH
1,700
FH
1,654
FH
1,351
FH
1,204
FH
1,473
FH
1,465
FH
1,412
FH
1,243
FH
2,119
FH
2,067
FH
1,688
FH
1,545
FH

Postal
District
11
11
14
14
14
14
15
15
15
15
15
15
15
15
15
15
15
16
16
16
16
16
16
17

Project Name
ROSEVALE
CHANCERY ESQUIRE
COSMO
VACANZA @ EAST
ASTORIA PARK
EUNOS PARK
THE MEYERISE
38 I SUITES
MEIER SUITES
MELROSE VILLE
EASTERN LAGOON
PARC ELEGANCE
SANCTUARY GREEN
BLU CORAL
LE M RESIDENCE
MARTIA RESIDENCE
MANDARIN GARDEN CONDOMINIUM
LANDBAY CONDOMINIUM
THE BAYSHORE
LIMAU PARK
THE BAYSHORE
BAYSHORE PARK
STRATFORD COURT
EDELWEISS PARK CONDOMINIUM

Area
(sqft)
1,518
1,206
398
807
850
1,389
2,056
463
2,228
592
893
721
850
1,173
969
1,582
1,572
1,238
980
1,518
1,184
936
1,507
1,055

Transacted
Price ($)
2,200,000
1,580,000
650,000
930,000
900,000
1,300,000
3,286,000
690,000
3,200,000
800,000
1,160,000
905,000
1,058,000
1,220,000
1,000,000
1,315,000
1,210,000
1,480,000
958,000
1,420,000
1,065,000
825,000
1,240,000
900,000

Price
Tenure
($ psf)
1,450
FH
1,311
FH
1,632
FH
1,152
FH
1,058
99
936
FH
1,598
FH
1,491
FH
1,436
FH
1,351
FH
1,298
FH
1,255
FH
1,244
99
1,040
FH
1,032
FH
831
FH
770
99
1,196
FH
978
99
936
FH
899
99
881
99
823
99
853
FH

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SINGAPORE PROPERTY WEEKLY Issue 221

Postal
District
18
18
18
19
19
19
19
19
19
20
21
21
21
21
21
21
22
22
22
23
23
23
23
23

Project Name
OASIS @ ELIAS
EASTPOINT GREEN
MELVILLE PARK
OASIS GARDEN
ROSALIA PARK
GRAND REGALIA
CASA ESPANIA
EVERGREEN PARK
RIO VISTA
GRANDEUR 8
MAPLEWOODS
SPRINGDALE CONDOMINIUM
GOODLUCK GARDEN
SELANTING GREEN
THE CASCADIA
SHERWOOD TOWER
PARC OASIS
LAKEPOINT CONDOMINIUM
LAKEPOINT CONDOMINIUM
FORESQUE RESIDENCES
PARK NATURA
TREE HOUSE
HAZEL PARK CONDOMINIUM
HILLVIEW RESIDENCE

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Area
(sqft)
980
958
990
1,475
1,119
1,206
1,658
1,087
1,249
1,227
2,702
1,109
1,948
1,658
1,970
1,421
1,076
1,001
2,217
667
1,442
1,249
1,324
1,259

Transacted
Price ($)
900,000
875,000
765,000
1,720,000
950,000
1,008,000
1,375,000
840,000
960,000
1,290,000
3,500,000
1,080,000
1,850,000
1,530,000
1,720,000
938,000
960,000
795,000
1,250,000
840,000
1,612,156
1,335,000
1,250,000
1,155,000

Price
Tenure
($ psf)
919
99
913
99
773
99
1,166
FH
849
FH
836
FH
829
FH
773
99
769
99
1,051
99
1,295
FH
974
999
950
FH
923
FH
873
FH
660
99
892
99
794
99
564
99
1,259
99
1,118
FH
1,069
99
944
999
917
999

Postal
District
23
23
23
23
25
26
27
27

Project Name
HILLVIEW REGENCY
PALM GARDENS
NICON GARDENS
NORTHVALE
PARC ROSEWOOD
BULLION PARK
YISHUN EMERALD
EUPHONY GARDENS

Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
904
800,000
885
99
1,216 920,000
756
99
1,938 1,320,000 681
99
1,798 1,105,000 615
99
431
530,000 1,231
99
807
830,000 1,028
FH
1,356 968,000
714
99
1,163 800,000
688
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.

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