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Issue 207

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

CONTENTS
p2

FROM THE

EDITOR

5 Lessons Learned on Avoiding Buying

Welcome to the 207th edition of the


Singapore Property Weekly.

the Wrong Property

Hope you like it!

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Singapore Property News This Week

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Resale Property Transactions

Mr. Propwise

(April 21 April 28 )

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SINGAPORE PROPERTY WEEKLY Issue 207

5 Lessons Learned on Avoiding Buying the Wrong Property

By Property Soul (guest contributor)


I spent my Labor Day holiday spring cleaning
my wardrobe. How hard can it be? Well, any
lady will tell you that this is a labor-intensive
and mentally-draining chore, with lots of
surprises and heartbreaks along the way.It
took me almost two days to complete the job,
after endless rounds of repeating three tasks:
1. Keep pieces that are still in favor
To maximize the chance of wearing the good
ones, mix and match different pieces to try
various combinations and create new outfits.

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SINGAPORE PROPERTY WEEKLY Issue 207


2. Put aside pieces that need some work

up buying the wrong thing:

Many pieces need some work before they


can be worn again, like cleaning or ironing,
sewing missing buttons, fixing damage,
tailoring to make them fit, etc.

1. Buying on a whim

3. Throwing away pieces that I will never


wear again
These are pieces that havent been worn for
the past two years. Some are old clothes that
have seen better days and are now ready for
retirement. Others are simply not trendy
anymore.
For new clothes that are used just once or
even brand new, the strong feelings of guilt
and regret come every time I decide to throw
them away.
There are three common reasons why I end

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It looks nice in the catalog and fashion


magazine. Or I can imagine myself looking
fabulous in it.
2. Buying under pressure
There is peer pressure when a shopping
companion tells me that it looks nice on me. A
few times I fell for the flattery of a salesman
who is full of praise when I step out of the
fitting room.
3. Buying for the future

It is tempting to buy now and save it for a


future occasion. And I am not the only lady
who tries to buy clothes one size smaller,
thinking that one day I can fit in. But
somehow that day never comes.

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SINGAPORE PROPERTY WEEKLY Issue 207


Who are the third parties reaping the benefits
from my silly mistakes? They are my
domestic helper and my elder girl who turns
ten next month. They are excited by this
treasure hunt game to find gems from the pile
of my discarded clothes.
Property spring cleaning
During the previous property bear markets,
many investors had to deal with the long
overdue task of spring cleaning their property
portfolio.
How painful is the process? Well, any owner
selling at a loss can tell you that this is a timeconsuming and heart-wrenching chore, with
lots of headaches and disappointments along
the way.
It can take months or even years to decide
what to do, though it will still consist of the

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same three steps:


1. Keep the good quality properties
These are the properties that still have
positive cashflow during bad times. Measures
are taken to minimize costs and maximize
returns, such as refinancing to get a lower
interest rate, renting rooms rather than the
whole unit, etc.

2. Fix the properties that need some work


In a soft rental market, no one will rent a
place that needs repair. To secure good
tenants in a competitive market, its time to
touch-up old apartments and renovate
rundown houses.
3. Dump the
underperformed

properties

that

have

For properties that have low or negative net

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SINGAPORE PROPERTY WEEKLY Issue 207


rental returns, it make little sense for owners
to continue subsidizing tenants to stay there.
Owners have to cut loss in time before their
values drop further.
There are three common reasons why
investors end up buying the wrong thing:
1. Buying on a whim
The project looks nice in the advertisement
and the showflat. Everyone is buying now and
you cant afford to lose out in the property
game.
2. Buying under pressure

All your friends, colleagues and relatives stay


in a condo. It is such an embarrassment
telling people that you are living in an HDB
flat. Noises from every direction tell you to go
for it. And you find it very difficult to say no to
that persuasive property agent.
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3. Buying for the future


It is tempting to buy now and pay later.
Buying a project still under construction
means that you only have to pay years from
now. By then you will have enough savings
and a higher salary to support that pricey
property.
Who are the third parties reaping the benefits
from your silly mistakes? They are the
bargain hunters or value investors who have
been waiting for this day to come. They are
excited by your cutting loss and are busy
finding gems among the bulk of fire sales.
With the new properties in their arms, they
smile and hope there are more to come.
Lessons learned on avoiding buying the
wrong property
1. The most terrible feeling is the realization
that you have spent a lot of money buying the
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SINGAPORE PROPERTY WEEKLY Issue 207


wrong thing.
2. Good taste and good insight often have
nothing to do with money. Having money and
knowing how to pick the good stuff are two
different things.
3. Resist the temptation to buy something the
day you first see it. Put it on hold for a few
days in order to minimize the chance of
regretting the purchase later.
4. Buy only what fits your budget now, not
what is going to fit you in the future.
5. You cant make choices based on what
everyone says is good. Dont imitate others.
Dont follow the trend. Find your own style.
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.
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SINGAPORE PROPERTY WEEKLY Issue 207

Singapore Property This Week


Residential
Aprils HDB resale flat transactions
highest in 2 years while prices fall by 6%
According to flash estimates by SRX
Property, in April this year, the overall resale
prices of HDB flats have fallen by 6 percent
year-on-year. Based on those estimates,
resale prices of HDB flats in mature areas
have dropped by 4 percent year-on-year. On
the other hand, resale prices of HDB flats in
non-mature areas have fallen by 7.4 percent
year-on-year. Particularly in April, the overall
price index for HDB resale flats has increased
by 0.2 percent month-on-month. Also, the
resale transaction volume for HDB flats has
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also increased by 19.3 percent from 1,349 to


1,610 units in April from the previous month.
This has been the highest in two years.
Nevertheless, the transaction volumes in April
is still 55.9 percent below the peak in May
2010, where 3,649 HDB flats changed hands.
Eugene Lim from ERA Realty predicts that
around 18,000 to 20,000 HDB flats may
change hands this year. Lim believes that
transaction volumes will surge as there are
lesser build to order flats being released by
HDB this year. Lim added that he predicts
that the overall price fall for the HDB resale
market may be less than 5 percent. Ong Kah
Seng from RST Research added that resale
prices of HDB flats in mature estates have not
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SINGAPORE PROPERTY WEEKLY Issue 207


suffered a big price cut due to the appeal of
their locations. Also, there is a small supply of
flats put up for resale in mature estates, said
the Business Times.
(Source: Business Times)
Tenderreopens
for
temple
columbarium site at Sengkang

and

The Ministry of National Development (MND)


has reopened the tender for a temple and
columbarium site at Sengkang, after a mutual
termination agreement was signed between
Eternal Pure Land and the ministry. Eternal
Pure Land had previously been awarded the
tender. According to the Ministry of National
Development, Eternal Pure Land had
intended to use the site to test out its
automated
columbarium
system
and
operating model. A smaller plot of land may
be awarded to Eternal Pure Land to test its
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pilot project, said the ministry. According to


the Ministry of National Development, the site
has been zoned for cemetery use and will be
priced at market value based on columbarium
use as determined by the chief valuer.
(Source: Business Times)
Commercial
Market experts expect CBD office rents to
ease for rest of year
Market experts believe that office rents in the
CBD area is likely to decrease for the rest of
the year. The fall in office rental prices is due
to weak rental growth in Q1 this year, said
experts. Also, market experts said that the
office rents of Grade A offices in the CBD
area have been affected by an increase in
demand for office spaces in business parks.
Nonetheless, tenants may benefit from the
lowered office rents.
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SINGAPORE PROPERTY WEEKLY Issue 207


According to the Business Times, the office
market is expected to grow in the coming
year due to a few upcoming big leasing
transactions. Yet, CBRE predicts that the
rental prices of offices in the CBD area will
remain flat for the rest of the year, as rental
levels have only increased by 1.8 percent
quarter-on-quarter to $11.40 psf in Q1 this
year. Moray Armstrong from CBRE said that
despite the weak rental prices in Q1, there is
strong interest in offices that are located out
of the central region. Armstrong added that
office occupancy rates have also been high
this year. On the other hand, Savills
Singapore predicts that office rental levels will
drop to about $11.90 psf by the end of the
year. Not only so, Savills believe that there
will be a further drop in office rentals next
year.
(Source: Business Times)
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CPF Building to be put on market in Q3


Located at Robinson Road, the CPF Building
will be marketed by CBRE. According to the
Business Times, the CPF Building will be put
on the market in Q3 this year. This would be
done either through a tender or an
expression-of-interest exercise. The CPF
Building has a remaining lease of 52 years
and has a net lettable area of about 325,000
sq ft, and is expected to command a price
that is more than $450 million. The site has
been zoned for commercial use with a
maximum 50-storey height. The maximum
plot raio is 12.88. According to the Business
Times, the site has great redevelopment
potential. Market experts believe that
potential buyers need to consider the
authorities plan for the area.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 207

Non-Landed Residential Resale Property Transactions for the Week of Apr 22 Apr 28

Postal
District
1
3
5
5
5
5
5
8
10
10
10
10
11
11
13
14
14
14
14
15
15
15

Project Name
MARINA BAY SUITES
DOMAIN 21
THE FOLIAGE
WESTCOVE CONDOMINIUM
GLORIA MANSION
FABER CREST
PARK WEST
KERRISDALE
NASSIM PARK RESIDENCES
DUKES RESIDENCE
THE TESSARINA
TANGLIN REGENCY
NEWTON 21
SHELFORD 23
THE ACACIAS
CENTRA SUITES
SIMSVILLE
SUNFLOWER REGENCY
WING FONG COURT
CORALIS
PEBBLE BAY
WATER PLACE

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Area
(sqft)
2,045
926
506
1,216
1,227
2,088
1,249
1,259
6,878
926
1,324
1,044
1,227
1,755
1,249
452
969
1,152
947
1,281
2,626
1,281

Transacted
Price ($)
4,900,000
1,296,400
688,000
1,020,000
1,000,000
1,648,000
970,000
1,540,000
22,500,000
1,560,000
2,070,000
1,303,750
1,920,000
1,950,000
1,260,000
630,000
870,000
850,000
680,000
2,000,000
3,790,000
1,598,688

Price
Tenure
($ psf)
2,396
99
1,400
99
1,360
FH
839
99
815
FH
789
99
777
99
1,223
99
3,271
FH
1,685
FH
1,563
FH
1,249
99
1,565
FH
1,111
FH
1,009
FH
1,394
FH
898
99
738
FH
718
FH
1,561
FH
1,443
99
1,248
99

Postal
District
15
15
15
15
15
15
15
15
16
16
16
16
16
16
16
18
18
18
18
19
19
19

Project Name
COSTA RHU
COSTA RHU
WATER PLACE
VENTURA VIEW
THE MAKENA
ESTERINA
DONG XING COURT
CALLIDORA VILLE
COSTA DEL SOL
LANDBAY CONDOMINIUM
EAST MEADOWS
COUNTRY PARK CONDOMINIUM
EAST MEADOWS
EASTWOOD GREEN
KEW GREEN
MODENA
LIVIA
THE TROPICA
ELIAS GREEN
FONTAINE PARRY
EVANIA
EVANIA

Area
(sqft)
990
1,970
1,356
753
1,615
1,206
1,012
1,141
1,313
1,249
1,216
1,561
1,356
1,173
2,842
969
1,539
1,195
1,528
1,023
1,227
1,227

Transacted
Price ($)
1,230,000
2,380,000
1,625,000
865,000
1,850,000
1,340,000
980,000
1,060,000
1,500,000
1,380,000
1,110,000
1,400,000
1,210,000
975,000
1,850,000
885,000
1,360,000
970,000
936,800
1,150,000
1,230,000
1,220,000

Price
Tenure
($ psf)
1,242
99
1,208
99
1,198
99
1,148
FH
1,146
FH
1,112
FH
969
FH
929
FH
1,142
99
1,105
FH
913
99
897
FH
892
99
831
99
651
99
914
99
884
99
812
99
613
99
1,125 999
1,002
FH
994
FH

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SINGAPORE PROPERTY WEEKLY Issue 207

Postal
District
19
19
20
20
21
21
21
21
22
23
27

Project Name
KOVAN MELODY
THE SPRINGBLOOM
CLOVER BY THE PARK
LAKEVIEW ESTATE
GARDENVISTA
PANDAN VALLEY
ASTOR GREEN
ASTOR GREEN
PARC VISTA
REGENT HEIGHTS
ORCHID PARK CONDOMINIUM

Area
(sqft)
1,238
1,130
1,281
1,615
1,163
1,173
980
1,475
1,281
1,163
958

Transacted
Price ($)
1,220,000
1,050,000
1,490,000
1,300,000
1,388,000
1,200,000
960,000
1,445,000
1,072,800
900,000
712,000

Price
Tenure
($ psf)
986
99
929
99
1,163
99
805
99
1,194
99
1,023
FH
980
99
980
99
838
99
774
99
743
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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