CKS PROPERTY CONSULTANTS – SINGAPORE REAL ESTATE NEWSLETTER NOVEMBER 2013

Highlights | On The News | Featured Properties | Events Calendar

HIGHLIGHTS

Tokyo Prime Residential Property Investment: Premist Akasaka Hinokicho
INVESTMENT HIGHLIGHTS
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Designed with luxury interior fittings Located in Akasaka- one of the top neighborhoods in Tokyo Surrounded by trendy neighborhoods such as Kasumigaseki, Roppongi, Aoyama Favored location for Grade A MNC offices and official offices such as embassies Bustling and stylish area with fine dining restaurants, night life and upmarket shopping plazas Price from SGD550,000 onwards

ON THE NEWS
Khaw sees light at end of property market tunnel Business Times, 13 Nov 2013 National Development Minister Khaw Boon Wan says that he is seeing "more light at the end of the tunnel" in the quest to achieve a sustainable property market in Singapore. However, more work remains to be done to achieve the national objective. Mr Khaw also cited data to show that the cooling measures have had their intended effect of dampening foreign demand and reducing speculation. Since 2011, foreign buying in Singapore's private housing market has shrunk, both in proportion and in absolute numbers. The private condominium market allows foreigner buying and the cooling measures have moderated their impact. The resultant trend is encouraging but we continue to closely monitor the market and we will not hesitate to act further when necessary." Good interest in 2 residential projects Business Times, 13 Nov 2013 Two residential projects are seeing good interest in the run-up to their launch this week. Talk in the market is that more than 1,000 cheques have been submitted in the first phase of sales at the 660 -unit Duo Residences, a project developed by Temasek Holdings and Khazanah Nasional. Apartments at the 99 -year leasehold development at Ophir-Rochor start from $2,214 per square foot (psf) for a studio apartment of about 420 square feet (sq ft) in size, while one-bedders (at least 538 sq ft) start at $2,045 psf. Two -bedroom units (from 807 sq ft) are priced upwards of $1,983 psf.

CKS Property Consultants | On The News

NOVEMBER 2013

ON THE NEWS (CON’T)
S’pore Q2 household debt at 77% of GDP Business Times, 13 Nov 2013 Fanned by easy money, household debt in Singapore has shot up to 77 per cent of gross domestic product since the 2008-09 global financial crisis, according to a report by Bank of America Merrill Lynch. The higher gearing ratio, which jumped from 66 per cent of GDP at end-2007 to 77 per cent in the second quarter of this year, was encouraged by easy global monetary conditions and low interest rates. Yet, the household debt ratio is still below the highs of the 2001-02 recession when it hit about 94% of GDP. CDL raises red flags on private housing market Channel News Asia, 13 Nov 13 City Developments Ltd (CDL), which posted a 10.4 per cent year-on-year drop in third-quarter net earnings to $120.6 million yesterday, has raised some red flags on the Singapore private residential property market. CDL pointed out that while developers are starting to cut their prices in existing and new projects, willing to take lower profit margins, land prices on the other hand are continuing to escalate. En bloc sale for The Arcade in the offing Business Times, 12 Nov 2013 A PRIME albeit small commercial site in Raffles Place, The Arcade, on a site of about 21,900 sq ft, could be put up for collective sale soon. Word on the street is that the price tag for the 20 -storey office-and-retail building is around $3,000 per square foot per plot ratio (psf ppr), inclusive of development charges of $100 million plus. This would suggest The Arcade's owners stand to pocket around $800 million. With a unit price of $3,000 psf ppr, inclusive of development charges of more than $100 million, owners stand to pocket around $800 million. While The Arcade is a rare 999 year -leasehold commercial site in the Raffles Place financial district available for sale, one drawback is the site's small area and narrow configuration. 47,273 HDB units, 50,841 non-landed private residential units built between 2008 and 2012 Channel News Asia, 12 Nov 13 A total of 50,841 non-landed private residential units were completed between 2008 and 2012. Over the same period, 47,273 dwelling units were completed by HDB, comprising 40,128 flats for sale and 7,145 flats for rental. The Urban Redevelopment Authority (URA) granted planning approval for the development of non landed private residential units on 385 hectares (53 per cent) of land and public housing units on 338 hectares (47 per cent) of land. Foreign buyers of private homes mostly mainland Chinese: Study TODAY Online, 6 Nov 2013 Mainland Chinese investors, followed by Indonesian, Malaysia and American buyers top the list of foreign buyers of private property in Singapore from January to October this year, research published yesterday (Nov 4) revealed. According to numbers compiled by OrangeTee Research, 34 per cent of foreign property -buyers (excluding permanent residents) in Singapore this year were from China. Buyers from China view Singapore as a favourable property investment destination despite the latest rounds of property cooling measures, such as the raising of the Additional Buyers’ Stamp Duty (ABSD). High-end homes: Some win, some lose Straits Times, 4 Nov 2013 Singapore's luxury residential market is presenting a mixed picture, with some buyers accepting hefty losses on upscale homes bought at the market peak. This comes as luxury home prices are markedly lower now, in relation to the mass market, than before the global financial crisis. OrangeTee Research said that luxury home prices were about 2.4 times that of mass-market homes before the financial. However, the gap has narrowed to 1.6 times in 2013, which is below the historical average of two times. This could be contributed by the sluggish sales in the high-end residential segment.

CKS Property Consultants | On The News

NOVEMBER 2013

ON THE NEWS (CON’T)
Buying by Chinese, Malaysians, Indonesians, Indians down by 40% Business Times, 25 Oct 2013 Chinese, Malaysians, Indonesians and Indians continued to remain the top four nationalities among the combined pool of foreigners and SPRs who bought private homes in the first 9 months of this year, which accounted for 81.3 per cent of the 4,028 private homes purchased by PRs and foreigners in Jan -Sept 2013, similar to 80.9% of the same period last year. In the third quarter, the number of units purchased by Chinese, Malaysians and Indonesians each dropped around 43% q-o-q to 238, 240 and 149 respectively. Household debt manageable: Credit Suisse Business Times, 24 Oct 2013 Credit Suisse economist said that the risk of a house hold debt crisis is very small. This is because at the macro level, households are wealthy enough to pay off their debt with liquid assets and shares in the event of an economic shock. However, discretionary spending from over -leveraged households might still drop once America tightens its monetary policies and causes interest rates to rise. 8,700 shoebox units for resale from now to 2017 Business Times, 23 Oct 2013 At least 8,700 shoebox units are expected to hit the the resale market between now and 2017, as the Seller’s Stamp Duty (SSD) lock-in period approaches expiry, While this figure is more than double the current completed shoebox residential stock of 3,472 units, statistics have showed that the proportion of shoebox units transacted in the resale market has been steadily increasing. In the first nine months of 2009, the percentage of resale shoebox units transacted has increased from about 0.4% to 2.5 % this year. Including 2013's annualised sales figures, some 10,674 units are expected to receive their TOP in coming years. This translates to an average of 2,668 shoebox units being completed annually between 2014 and 2017. Skypark Residences tops 2013’s electronic applications for ECs Business Times, 22 Oct 2013 The 506-unit SkyPark Residences received 1,604 applications– more than three times the number of units available– at the close of e-applications on Sunday. The executive condominium (EC), which is located in Sembawang drew applications from upgraders islandwide; a higher proportion of applicants hailed from Housing and Development Board (HDB) estates in Sembawang, Yishun, Woodlands, and Ang Moh Kio. 4,800 private homes may go on sale by year end Straits Times, 19 Oct 2013 New private residential launches could be back in full swing from this month to the end of the year as developers release some of the pent-up supply. A bumper crop of about 4,800 new units from 17 launches could go on the market from now till December, consultants estimated. This is much higher than the 3,342 new units put on sale in the third quarter, though it is still below the 5,564 units launched in the year’s first three months.

CKS Property Consultants | Featured Properties

NOVEMBER 2013

FEATURED PROPERTIES– SINGAPORE/ JAPAN
Helios Residences
Address Tenure Developer Completion Description 15 & 17 Cairnhill Circle (DISTRICT 9, Singapore) Freehold Wing Tai Asia 2011 Residential development on a site of approx. 79,642 sqft, comprises 140 residential units Newton Station (0.53KM) Orchard Station (0.72KM) 2-bedroom: 3-bedroom: Unit Available 4-bedroom: Penthouse: 1,281-1,313 sqft 1,668-1,916 sqft 2,002-2,002 sqft 3,918-4,564 sqft

MRT Station

Premist Akasaka Hinokicho Koen

Address Tenure Developer Completion

7-6-45 Akasaka Minato-ku, Tokyo Freehold Daiwa House Industry Co., Ltd. Mar 2013 Reinforced concrete 7-storey building with 2 basement levels

Description

Nearest Train Station

Akasaka Station (7 MINS WALK) Roppongi Station (9 MINS WALK)

Total Units

75

Unit Available

2LDK, 3LDK

Price Range

JPY43,900,000 - JPY98,800,000 (SGD550,000- SGD1,235,000)

CKS Property Consultants | Featured Properties

NOVEMBER 2013

For more information, kindly visit our facebook page (CKS International Launches) or contact: Singapore Office Foo Meng Wee (CEA Reg. No: R002852I) +65 6531 1769 or email - mengwee@cks.com.sg Lee Tang Keat (CEA Reg. No: R048660H) +65 6531 1662 or email - tangkeat@phillip.com.sg Simone Wong (CEA Reg. No: R048862D) +65 6531 1770 or email - simonewong@phillip.com.sg
CKS Property Consultants is a pioneer in Singapore ’s real estate landscape. Throughout the course of our history, we have witnessed the growth and transformation of Singapore ’s economy and its impact on the real estate industry. Founded in the 1920s as Cheong Koon Seng Auctioneers & Valuers, the company was renamed CKS Property Consultants in 1999 to reflect the diversification from its core businesses of valuation and auctioneering. While we continue to build on our traditional strengths in valuation and auctioneering, we are now a full-fledged property consultancy providing professional services in the residential, commercial, industrial and retail sectors. CKS is today part of the PhillipCapital Group, an integrated financial services group with a global presence. With offices located in the financial hubs of 16 countries, including Singapore, Malaysia, Cambodia, Indonesia, Thailand, Hong Kong, China, Japan, India, Sri Lanka, Dubai, United Kingdom, France, Turkey, Australia and USA, the Group’s total shareholders’ funds exceed USD 1 billion. Our affiliation allows us to leverage PhillipCapital’s considerable business network and to partner our sister companies in regional initiatives.

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DISCLAIMER: This document is prepared by CKS Property Consultants for marketing information only. While reasonable care has been exercised in preparing its contents, CKS Property Consultants makes no representation as to its accuracy or completeness, and cannot be held liable for any loss howsoever arising in reliance upon any part of this document We strongly recommend that you consult an appropriate professional advisor for legal, tax, accounting, or investment advice specific to your situation before entering into any investment decision in connection with the Content.