DREA 1H2016 Singapore Property Market Review

Singapore Property
1H 2016 Review
Your guide to the private non-landed residential market
DREA.SG
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Disclaimer
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This document does not constitute nor does it form part of an offer to sell any assets described
herein or an offer or recommendation to enter into any transaction described herein. The
Recipient is responsible for making its own independent investigation and appraisal of the risks,
benefits, appropriateness and suitability of any transaction or matter contemplated by this
document and DREA is not making any recommendation (personal or otherwise) or giving any
investment advice and will have no liability with respect thereto. The decision to proceed with
any transaction or action contemplated by this document must be made by the Recipient in
the light of its own commercial assessment and DREA will not be responsible for such
assessments.
This document was prepared on the basis of information and data, obtained from publicly
available sources. The information in this document has not been independently verified by
DREA. DREA has relied on the information provided by third party or public sources as
complete, true, fair, accurate and not misleading. DREA does not make any warranty or
representation, express or implied, as to the accuracy, completeness or reasonableness of the
information (including assumptions) contained in this document whether obtained from or
based upon third party or public sources or otherwise.
This document is given as at the date hereof and is based on information available to DREA as
at the date hereof, is subject to any assumptions set out therein and is subject to change
without notice. Accordingly, this document may be based on data and information that may
no longer be current and subjective assessments. It should also be understood that DREA does
not undertake any obligation to provide any additional information or to correct any
inaccuracies which may become apparent. Any data or information regarding, or based on,
past performance is no indication of future performance. Recipients should consider whether
any advice or recommendation is suitable for their particular circumstances and if,
appropriate, seek professional advice, including tax advice.
DREA Editorial Team
Yuet Whey Siah

Founder, CEO
DREA.sg
yuetwhey@drea.com.sg
Jing Yi Wang
Real Estate Analyst
DREA.sg
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Content
A. Singapore Property Market Overview 1H 2016 Update
Price trend, cooling measures and interest rates

Prices and demand for new sale and resale
Profitability of resale units
B. Property Market Outlook
A look at upcoming supply

Are Singaporeans overleveraged
C. For those looking to buy or invest
A guide on the buying process

Things to look out for when buying
Which properties should you look out for
Opportunities for property investors
New loans and refinancing deals
D. For those looking to rent
Rental price trends and opportunities

101 on rental contracts and negotiation
Appendix
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Executive Summary
The Singapore Property Market is softening under controlled cooling measures
However, regulators are of the view that it is still too early to lift the cooling measures
Local interest rates have remained low for a long time but are starting to creep up Coupled with cooling measures this may result in further softening of the property
market
That said, buyer demand seems to have recovered for the first 6 months of 2016
(1H16) at least; Private non-landed residential transaction volume is up 12%
compared to the same period last year
We see strongest demand for 500-1000 sqft units and a preference for new sale units;
59% of all transactions in 1H16 are for developer sale units
We estimate there to be ~17,200 unsold new units outstanding in the market today
and expect some pricing pressure from the supply overhang
Despite cooling measures and potential supply risk, median per-square-foot prices for
500-1000 sqft units increased in 18 out of 26 districts profiled across Singapore
For sellers, more and more resale units are being sold at a loss with 12% of all resale
transactions being sold at >5% loss in 1H16. This is particularly true in D9,D10 and D15
where we have also seen material decline in rental volume
Without tenants and with limited holding power, more and more people are opting to
cut losses and sell out
Proportion of loss making resale transaction has also increased for 4 straight years
now; This is surprising given that the household debt situation and other consumer
debt metrics have improved over the recent years
Given these improvements, we do not see material downside risk in the housing
market arising from mortgage defaults in the near term
Overall, this continues to be a buyers market and despite some near term supply
headwinds, the market remains healthy under prudent regulation
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URA Private non-landed residential property price index (Q4 1998 = 100)
ABSD
160
TDSR
LTV
150
140
130
120
110
100
90
80
70
60
50
00
01
02
03
04
05
06
Prices have softened since 2013
07
08
09
10
11
12
13
14
15
16
Sources: URA, DREA
Property prices in Singapore first took a dip in the first quarter of 2009 from the
fallout of the global financial crisis. Thereafter, a series of interest rate cuts and
efforts from governments to reenergize the economy led to a rapid increase in
property prices.
To avoid an overheated property market and to reduce the risk of a housing
bubble, the Singapore government put in place a series of cooling measures
(see next page) to curb price increases. Since then, prices have moderated in
a slow, controlled fashion which is healthy for the broader economy.
The most interesting point though, is that anyone sitting on properties bought in
2009 or before 2007 are sitting on potentially huge capital gains.
The Singapore Property Market is

softening under controlled
cooling measures
6
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Summary of Key Property Regulations

As property prices surged between 2009 to 2013, the Singapore government stepped in and
introduced several cooling measures. Two of the main objectives commonly cited, are to:
Prevent Singaporeans from over-leveraging by introducing limits on total loans
Prevent investors from overheating the market by introducing various stamp duties
The cooling measures have been effective in softening Singapores property prices. Many
Singaporeans had expected the cooling measures to be removed in 2016 after property prices
have stopped rising. In response to this, Minister for National Development Lawrence Wang
stated we dont want to risk a premature market rebound, indicating that the government has
plans to let the property prices fall further, and it is still too early to ease cooling measures1.
Singapore Citizens
Buyer's Stamp
Duty (BSD)
Additional
Buyer's Stamp
Duty (ABSD)
Total Debt
Servicing Ratio
(TDSR)
Seller's Stamp
Duty (SSD) on
higher of
market value
or actual price
*for properties
bought on or after
14 Jan 2011
Foreigners
First $180,000
1%
Next $180,000
2%
Remainder
3%
1st Property
Purchase
N/A
2nd Property
Purchase
7%
3rd and subsequent
Property Purchase
10%
Permanent Residents
1st Property
Purchase
5%
2nd and subsequent
Property Purchase
10%
15%
Maximum total debt limit of 60% (taking into account the monthly repayment of the
property loan being applied for + all other outstanding debt obligations)
Haircut of 30% applied to all variable income and amortise value of eligible
financial assets when computing TDSR
Holding Period
SSD
Less than 1 year
16%
More than 1 year & up to 2 years
12%
More than 2 years & up to 3 years
8%
More than 3 years & up to 4 years

More than 4 years
4%
NIL
Loan Limit
1st loan (<30 years)
80%
Loan-toValuation (LTV)
1st loan (31-35 years) and/or >65yrs borrowers retirement age
60%
2nd loan (<30 years)
50%
Max Tenure of
35 years
2nd loan (31-35 years) and/or >65yrs borrowers retirement age
30%
3rd loan (<30 years)
40%
3rd loan (31-35 years) and/or >65yrs borrowers retirement age
20%
1.
A complete timeline of cooling measures can be found in the appendices
Sources: IRAS, MAS, DREA
is not time yet to ease the property cooling

Itmeasures.
There is still some way to go, to
entrench the gains in stabilising the property

market and restoring household debt
sustainability.
7
- Ravi Menon, MAS Managing Director
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Singapore Mortgage Reference Rates (%)

4.0
Forward Rates(2)
Market expects
3-mth SIBOR to
be 1.425% in
3mths time
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
00
01
02
03
04
05
06
3-mth SIBOR (%)
07
08
09
10
11
12
13
14
15
16
DBS 18-mth Fixed Deposit Rate1 (%)

Source: Bloomberg
Singapores home loan / mortgage packages are based on a reference rate which
can be based on SIBOR or fixed deposit rates such as DBSs Fixed Deposit Rate. Any
change in these reference rates will impact monthly mortgage payments
Mortgage rates in Singapore are directly related to the state of the global economy. In
the recovery years following the early 2000s recession, SIBOR increased by as much as
~2.75% while fixed deposit rates (which are more stable) gained ~1%.
If history is to be an indicator, we should be mindful that the current low-interest rate
environment is unusual and rates are already starting to climb back up.
1.
2.
18-mth Fixed Deposit Rate calculated as the average of the 12-mth and 24-mth SGD Fixed Deposit Rate, as per
DBS original methodology for calculating the 18-Mth FHR
Forward rates are based on market expectations and is not a forecast. It is derived based on Association Banks of
Singapores published 3-mths and 6-mths SIBOR rates. With the current 3-month and 6-month rate, it is possible to
deduce market expectations of 3-mth SIBOR 3 months in the future
Local interest rates have remained

low for a long time but are starting
to creep up; Market expects rates
8
to be higher in 3-mths time
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Mortgage Rates
SIBOR and why it matters
SIBOR is the reference rate used by banks in Singapore when lending unsecured funds
to each other. It reflects how much it would cost banks to borrow from each other.
Why does it matter? It matters to home owners and home buyers as majority of
Singapores home loan packages are based on SIBOR.
In Singapore, there are no fixed-rate mortgages. While banks typically advertise both
'fixed-rate' and 'floating-rate' mortgages, the so-called 'fixed-rate' is only fixed for a
period of 2 to 5 years and eventually reverts to a floating rate.
'Floating-rate' mortgages are set in relation to a reference rate. Simply put:
Mortgage rate = Spread + Reference rate
Spread is a variable amount set by the bank

Reference rate depends on the loan you choose and is either
based on SIBOR or deposit rates such as DBS FHR
While the reference rate has traditionally been the 3-Mth SIBOR, banks increasingly
prefer using their own fixed deposit rates as reference.
Forward Rates where SIBOR will be in the near term
The Association of Banks in Singapore publishes the 3-mth and 6-mth SIBOR rates. With
the current 3-month and 6-month rate, it is possible to deduce market expectations of
3-mth SIBOR 3 months in the future. Note: The Forward Rate for the 3-mth SIBOR is a
market expectation and not a forecast.
When the forward rate is higher than todays spot rate, it implies that the reference rate
(and hence the overall mortgage rate) will be higher 3 months in the future.
For those looking to refinance or to enter into a new mortgage, we have started to see
a slowdown in the rise of interest rates amid slower economic growth. The US Central
Bank signalled that it would raise rates more gradually given concerns around
employment and the US economic outlook, on the back of Brexit.
Current forward rates imply that 3-mth SIBOR is expected to be 1.425% in 3 months time
Find out more about market expectations for the SIBOR here
Property buyers should take note

of interest rates as they directly
affect monthly mortgage
9
payments
Email to enquire about latest mortgage packages here at

drea@redbrick.sg
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Mortgage Rates
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Demand for housing loans (1H16 vs 1H15)

Largely driven by demand from home upgraders; appetite for investment properties has
tapered out
Total outstanding housing loans attributed to owner-occupied properties has grown by
3.7% in comparison to housing loans taken out on investment properties of 0.7%
Mortgage advisory company, Redbrick saw a 26% increase in new home loan enquiries in
1H 2016 and majority of these enquiries came from upgraders wanting to move to a bigger
space or nearer to town
Outstanding Housing Loan in Banks (S$bn)
3.7%
Owner Occupied
Investment Property
140
97
147
152 157
162
171
177
214 214 215

208 209 210
204 205 207
201
199
194 197
184 189
158 157 159

147 149 150 152 153 154
137 140 142 144
133
131
122 127
114
110
102 106
0.7%
.
43
45
47
47
48
48
51
53
55
56
57
57
56
57
56
57
56
.
56
56
57
57
56
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016
Many believe that the market is close

to bottoming out and current pricing
is attractive enough for them to
10
10
make that switch
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11
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Did you know?
DREA shows you prices of properties immediately

around you. Simply flip out drea.sg on your mobile
with location services turned on the next time you
are in a housing estate which you like
12
*Refer to Appendices for name of districts
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Change in volume
(1H 2016 vs 1H 2015)
Volume of sale transactions by district (1H 2016)

19
726
589
12
+343
+287
442
23
-183
+93
420
15
376
-25
10
373
+1
27
344
20
-348
+85
327
16
+66
296
13
+169
269
261
+13
257
+145
14
256
-141
18
248
+32
243
+172
28
+101
194
21
163
11
136
22
134
+37
-2
-43
+9
78
17
51
-11
50
-35
25
36
26
31
+3
29
-1
7
6 0
24 0
+8
-110
19
0
Sources: URA, Realis, DREA
Buyer demand seem

to have recovered,
volume is up 12%
1H 2016: 6348 transactions

1H 2015: 5683 transactions
+11.7%
5,683
6,348
1H15
1H16
13
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Upcoming Supply
(2016 2020)
Demand for new sale vs. resale units

19
81.9%
18.1%
54.4%
12
45.6%
83.0%
23
17.0%
67.7%
32.3%
726 14569
589
1851
2079
442
420
4628
15
85.1%
14.9%
376
940
10
91
282
373
1184
27
83.0%
20
17.0% 344
20.1%
16
79.9%
21.9%
13
5
64.4%
3
14
84.6%
18
63.6%
71.2%
21
11 17%
22
83%
65.2%
6.7% 269
2745
1985
48.1% 257
2945
15.4%
36.4%
2760
256
7198
248
20.2% 243
1334
28.8% 194
89.9% 10.1%
163
2180
79.8%
28
2418
261
35.6%
51.9%
2422
327
296
78.1%
93.3%
5118
547
403
136
34.8% 134
2460
78
366
17
95.3% 51
454
66.7% 50
1552
4 21% 79%
25 100% 36
2
100%
100%
24
1632
29
369
19
1161
0
For 1H 2016, volume is

largely driven by new
launch sale
New Sale
Resale 2601
41%
Resale
3747
59% New Sale
1H 16 Total
Transaction Volume
14
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Price change by district (1H 2016 vs 1H 2015)
For private non-landed residential properties between 500-1000 SQFT

D21 Clementi Park / Upper Bukit Timah
D9 Orchard / River Valley
D20 Ang Mo Kio / Bishan / Thomson
33.0%
23.0%
17.1%
D13 Macpherson / Potong Pasir

D26 Mandai / Upper Thomson
D11 Newton / Novena
16.1%
14.5%
11.6%
D4 Harbourfront / Telok Blangah
11.4%
D10 Tanglin / Holland

D2 Chinatown / Tanjong Pagar
D28 Seletar / Yio Chu kang
7.1%
4.9%
4.6%
D5 Buona Vista / West Coast / Clementi New Town

D15 East Coast / Marine Parade
D19 Hougang / Punggol Seng Kang
4.3%
3.9%
3.5%
D23 Bukit Batok / Bukit Panjang

D12 Balestier / Toa Payoh
D25 Admiralty / Woodlands
2.2%
2.1%
1.3%
D3 Alexandra / Commonwealth
D14 Eunos / Geylang / Paya Lebar
D18 Pasir Ris / Tampines
1.1%
0.9%
-0.1%
D8 Farrer Park / Serangoon
-0.8%
D17 Changi Airport / Changi Village

D16 Bedok / Upper East Coast
D22 Boon Lay / Jurong / Tuas
-2.0%
-2.3%
-9.6%
D27 Sembawang / Yishun

-17.0%
D1 Boat Quay / Raffles Place / Marina
-20.5%
D7 Beach Road / Bugis / Rochor -27.7%
Volume. of Transactions by size

(1H2016)
2,625
2,016
603
SQFT
<500
547
501-1000 1001-1500 1501-2000
303
>2000
Demand for 500-1000 sqft units are the

highest; Median prices for most districts
have increased vs 1H 2015
Click here for district price trends
15
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Top 5 planning areas with highest growth in number of residents living in private non-landed homes
No. of households (2011 vs 2015)
2015
2011
5,290
Yishun
14.1%
8,970
14,420
Hougang
Sembawang
Property purchases in many

areas have been supported
by real household demand
19,450
1,460
2,040
10.4%
16,190
Pasir Ris
Sengkang
10.7%
21,340
8,110
9,620
8.7%
9.7%
Between 2011 and 2015,

many areas have seen HDB
upgraders
moving
into
condos and apartments.
There is no surprise that
heartlands such as Yishun,
Hougang, Sembawang, Pasir
Ris and Sengkang have had
HDB
upgraders
driving
transaction
volume
and
prices. The main question is
whether such a trend can be
sustained.
Planning areas with low private non-landed residential population

No. of households living in private non-landed properties (2015 vs Median for all planning areas)
Sembawang
Woodlands
Yishun
Sengkang
Bukit Merah
Sources: DREA, Singstat
Some areas will continue to

have appetite for private
properties
2.84%
4.02%
8%
4.44%
5.49%
5.84%
Median % across all
Planning Areas
Despite the shift in recent

years, some areas are still
very much HDB centric and
have low % private property
resident households.
Across different areas in
Singapore, the median is for
8% of households to be in
private non-landed homes.
Sembawang, Sengkang & Yishun still have

relatively low proportion of residents living in
private properties but has seen significant
increases
16
16
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Are people
selling at a gain
or at a loss?
17
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Profitability of Resale Transactions

7,999
Sold at a gain (> 5%)

Sold at a loss (> 5%)
6,952
0-5% gain/loss
6,351
Holding Period >10 years
5,732
3,899
3,496
4,807
4,694
2,808
2,756
3,598
3,462
313
227
182
3,366
Sold at>5%
gain
Sold at >5%
loss
0-5%
gain/loss
Holding
Period >10yrs
Total resale
2,853
2,276
158
195
1,649
1,497
192
1,815
3,267
2,035
2,145
1,872
1,144
127
100
985
87
523
2,422
2,169
2,671
2,601
1,446
1,190
1,219
1,395
130
226
281
322
660
620
677
754
1H10
2H10
1H11
2H11
1H12
2H12
1H13
2H13
1H14
2H14
1H15
2H15
1H16
49%
50%
56%
58%
59%
60%
62%
61%
61%
56%
58%
54%
46%
4%
3%
3%
3%
4%
3%
4%
5%
5%
6%
9%
11%
12%
5%
5%
5%
4%
5%
5%
4%
4%
6%
7%
7%
10%
13%
42%
41%
36%
34%
32%
32%
30%
30%
28%
30%
26%
25%
29%
8037
6965
6409
4808
4697
5732
3267
2145
1872
2169
2422
2671
2601
Top 10 districts with highest volume of loss-making resale transactions (1H16)

62
2
3
9
24
24
District
57
0
6
5
17
13
29
55
1 3
36
1 1
4
9
33
21
33
1
5
4
8
15
31
1
5
5
20
>50% loss
20-30% loss
40-50% loss
10-20% loss
30-40% loss
<10% loss
23
2
3
4
23
3 1
14
20
2
18
18
0
5
15
13
9
9
10
10
15
15
16
16
21
21
23
23
19
5
5
19
18
18
11
11
Resale Vol
305
282
316
145
142
151
158
107
92
113
% Txn Loss
making
20%
20%
17%
25%
23%
21%
15%
21%
22%
16%
Source: Realis, DREA Analytics
We continue to see more units being

sold at a loss; For 1H 2016, 12% of
resale units were sold at >5% loss
18
18
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Holding Period
For those transactions sold at a Loss
78
(24%)
61
(19%)
47
(15%)
47
(15%)
17
(5%)
4
(1%)
10
years +
Year of
Purchase
< 2006
25
(8%)
18
(6%)
20
(6%)
5
(2%)
8-9
years
2007
7-8
years
6-7
years
5-6
years
2008
2009
2010
4-5
Years
3-4
Years
2-3
Years
1-2
Years
< 1 Year
2011
2012
2013
2014
2015
Lowest number of loss-making transactions for homes bought before 2007 and
for homes bought in between 2008 and 2009 when property prices were
bottoming out
URA Property Price Index
160
140
120
100
80
2008
2009
Before 2007
60
40
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Lowest capital risk for those who

bought their house before 2007
and between 2008 - 2009
19
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20
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New Supply by Units (2016 - 2020)

(000)
15
Sold units
D19 Hougang / Punggol / Seng Kang

10
Unsold units
0
District 19 18 27 23
14 13 22 20 16 28 12
Total
Supply
14.6 7.2 5.1 4.6 2.9 2.8 2.7 2.5 2.4 2.4 2.2 2.1
1.9 1.6 1.6 1.3 1.2 1.2 0.9 0.5 0.5 0.4 0.4 0.4
Sold
12.3 6.5
Unsold
2.3 0.7 2.1 1.5 1.4 0.7 0.6 0.4 0.5 0.3 0.3 0.8 0.8 1.2 0.3 0.8 0.8 0.6 0.2 0.4
% Unsold 16
10
25
10
15 21 17 11
3.2 1.5 2.1 2.2 2.1 1.9 2.1 1.9 1.3 1.2 0.7 1.4 0.8 0.6 0.6 0.9 0.5 0.5 0.4 0.1 0.2 0.2
42 32
48
25
21
17
20
14 12 39
38
63 17 51
57
53
20
45
0
0
0.3 0.2 0.2
1.3 70
55 44
Sources: URA, DREA
There has been a surge in new private property construction, and this is especially so in
districts 19, 18, 27 and 23. Given the upcoming supply, market observers have highlighted
potential supply risk and potential price decline as supply volume outstrips buyers demand.
Today, there are ~17,230 unsold units in the new launch market. While there continues to be
demand from HDB upgraders and foreign investors, some developments have had poor
sales given unrealistic price expectations from developers. To win buyers, some developers
are offering very attractive sales commissions to agents while others have experimented with
innovative ways of lowering initial upfront cost as part of developer discount schemes
We estimate there are ~17,200

unsold units outstanding in the new
launch market today
21
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New supply unsold new units and units bought 4 years ago that might enter the market
10,000
9,000
8,000
7,000
D19 Hougang / Punggol / Sengkang

Units bought 4 years ago and

may potentially enter the market
Unsold new units
6,000
5,000
4,000
3,000
2,000
1,000
0
19 23 27 15 18 14 9 12 16 10 5
8 17 11 25 13 21 22 28 4
2 20 7 26
Sources: URA, DREA
Buyers and sellers today are equally concerned about supply risk
Buyers worry about potential losses if they buy today and the risk of their home value declining
because of the supply overhang. Sellers on the other hand face difficulties in selling their units
given the volume of units (new and resale) available for sale out there in the market.
On top of the new supply, units brought 4 years ago are no longer subjected to Sellers Stamp
Duty (SSD) should they enter the resale market.
Owners of these units face less restrictions and there are less barriers to selling their properties
now as they no longer have to pay a hefty tax on the sale. The chart above shows the total
number of unsold new units, and the number of units bought 4 years ago that might potentially
enter the market.
As potential supply risk affects both buyers and the sellers, this is a critical area to watch.
District 19 Punggol, Hougang and Sengkang has the highest volume of unsold units and also
the highest volume of units exiting the 4-year SSD lock-in period
This is a buyers market and buyers

should push hard for a good deal
Click here for analysis on supply
22
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A question which many

have asked, as they fear
a housing crisis sparked
by mortgage defaults
23
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Household Debt vs. Income Growth

S$ 000
250
Average
household
debt1
Growth
15%
Average Household Debt
200
10%
150
5%
100
0%
50
0
-5%
00 01 02 03 04 05 06 07 08 09
10 11 12 13 14 15
S$ 000
140
Average
Annual
Income
(000)
120
Growth
15%
Average Household income
10%
100
80
5%
60
0%
40
-5%
20
0
-10%
00 01 02 03 04 05 06 07 08 09
10 11 12 13 14 15
Multiple (X)
2.3 2.2 2.3 2.3 2.3 2.2
Debt-toIncome
Ratio
2.1 2.0
1.8
2.0 2.0 2.1 2.0

1.9 2.0 2.0
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
1.
Household debt includes mortgage loans, car loans, credit card debt, and other personal loans
Source: Singstat
While absolute household debt

has increased, debt-to-income
ratio in Singapore has moderated
24
24
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Household Debt vs. Income Growth

Household debt has been growing, but the increase was supported by income growth
Household debt includes mortgage and car loans, credit card debt, and other personal loans.
For Singapore, average household debt has been increasing steadily after the financial crisis.
The growth only started to slow since 2013 and debt levels stabilized between 2014 and 2015.
Although household debt level has been increasing, income has been growing as well.
Annual Income per household has been on the rise since 2011, and over the past fifteen years,
the overall household debt to annual income ratio has decreased. Debt-to-income ratio was
2.33 in year 2000, and 2.0 in 2015. In other words, on average, Singapore households are less
leveraged now as compared to year 2000.
This implies that Singaporeans are better able to pay off their debt today as compared to the
past. This is further validated by the decline in Non-performing Loans (NPL)
Majority of borrowers are capable of

paying off their mortgage loans
Housing non-performing loans refer to
mortgage loans on which the
borrower has not made payments
according to the schedule for more
than 90 days. There is a high risk of
default on these loans, and the odds
of the bank getting their money back
is substantially lower. The housing NPL
ratio is calculated by dividing the
number of non-performing housing
loans by the total number of
outstanding housing loans.
There has been a drastic decrease in
Housing NPL since 2000, and
mortgage default rates are at an all
time low.
Housing Non-performing Loan1 (NPL) Percentage
6%
1.0
5%
0.5
4%
0.0
3%
12
13
14
15
2%
1%
0%
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
DBS
OCBC
UOB
Sources: Annual Reports, DREA

1.
Housing loans include private loans from banks and HDB housing loans
Housing NPL is less than 1% and the

majority of borrowers are able to
pay off their mortgage loans
25
25
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Since 2013, there has been a
meaningful decline in credit card
loans as a % of household income
Credit card loans as a percentage of monthly household

income
90%
2009
GFC:
74.72%
80%
70%
Credit card loans as a percentage of

household income has historically
been on the rise. In 2013, it reached
a peak of 90%.
The introduction of the total debt
serving ratio in late 2013 was
unsurprising and may have been the
reason for the trend reversal.
60%
50%
40%
00 01 02 0304 05 06 07 08 09 10 11 12 13 14 15
Credit card charge-off rate is rising

The charge-off rate is an indicator of the
percentage of debt that cannot be
recovered. A higher charge-off rate
suggests that people are increasingly
dragging out their credit card payments.
We note that charge-off rate in 2014
and 2015 was even higher than that of
2009. This is unexpected because 2009
was the year when the global financial
crisis
hit
Singapore
the
hardest.
Unemployment rate was 3.2% in March
2009, and 1.9% in March 2015. This is a
concern because data suggests that
more people are unable to pay off their
credit card debt in 2015 even when
unemployment rate was lower.
Since the introduction of the TDSR, it is

common to hear of locals tightening
their credit card spend to maintain
flexibility and room for taking on
housing mortgage loans.
Credit card charge-off rate1

8%
7%
6%
5.20%
5%
2009
GFC
4%
3%
2%
000102 0304050607 0809101112 131415
It is critical to understand whether this is a trend across all segments of the resident population.
As seen in the US housing bubble, delinquency in consumer finance is often a leading indicator
of mortgage defaults. While not an immediate alarm bell, this is a critical metric to track. As the
credit card charge-off rates increase, what implications would it have on the real estate
property market?
Sources: Singstat, MAS
1. The charge-off rate is an indicator of the percentage of debt that will not recovered. Charge-off rate = amount of chargeoffs/average outstanding balance owed by issuer
Credit card loans as a percentage of

household income has declined but
charge-off rates have increased as more
people drag out payments
26
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Pawnshop business provide further guidance on consumer borrowing

People usually turn to pawn shops when they are looking for short-term and small-dollar
loan options that are not offered by banks. However, pawn shops only offer loans when
the borrower secures the loan with an item of value, such as jewellery, watches, and
gadgets. The pawnbroker will determine the value of the loan based on the value of the
item secured.
Pawn shops do not do a credit check on the borrower, hence the borrowing process from
a pawn shop is relatively shorter and easier as compared to banks and traditional lenders.
Borrowers who are unable to take a loan from banks might try to take a loan from
pawnshops by bringing in their assets which are of value.
Pawn shop gross amount of loans given out to borrowers
S$ b
8
7.1
6
4
2
0
5.5 5.3 5.4
4.9
1.6 1.8 2.0
1.1 1.1 1.2 1.3 1.4 1.4 1.6
2.7
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Pawn shop loan issuance - redemption

S$ m
200
192
100
50
0
-50
-100
-150
Net amount
borrowed and
not paid back
in time during
the year
141
150
60
43
78
90
69
30
50
44
6
-3
-34 -39
-56
-107
Net amount paid

back for claiming
items pawned in
prior periods
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Amounts borrowed from pawn shops had grown significantly since 2009 from the
aftershock of the global financial crisis but has started slowing down since 2012. More
importantly, people are starting to make claims for items pawned in prior periods. We view
this as a positive sign, but are cautious about it.
Sources: Singstat
Pawn shop loans have increased,

but borrowers are now paying off
loans in time and also claiming
items pawned in past years 27
27
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28
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Resale private property buying process

Steps
T-90
T-90
Obtain AIP (Approval In

Principal) from a bank
Valid for 30-90 days
Research on condos
Pay Option fee (1% of

property price)
Give banks a whole set of documents so you dont

get surprises when you raise an actual loan request
Understand cash flow requirements, deadlines,

mode of payment of different fees (e.g. ABSD has
to be paid in cash first) and the different policies
that may restrict you from getting a loan (e.g. TDSR,
LTV)
Do your research however note that some

intangible factors may not be quantifiable
DREA.sg provides various information in one place
so as to make it easier to research on homes
Confirm with your bank beforehand that they will
be able to issue a bank loan letter of offer within 14
days of exercise of option
Option to Purchase issued by

Seller and is valid for 14 days
T+14
Exercise Option to
Purchase and pay 4%
Exercise fee
T+28
T+84
T+ 108
Pay Stamp Duty and/or

Additional Buyers Stamp
Duty
Cash flow
Things to look out for
Decide on a condo and

make Offer to Purchase
Louis Neo
+65 9090 5898
Be careful not to download an Offer to Purchase

from unverified sources not all documents are
valid In Singapore, and not all terms and clauses
are in line with market norms in Singapore
Specify which fixtures are included and whether
you are buying with tenancy in the Offer to
Purchase
If buying with tenancy, it is advisable to review the
rental contract and look out for tenant escape
clauses
Hire an experienced lawyer
Lawyers will do title search for the buyer
Check for major external environment changes
before paying exercise fee
Buyers have the right to cancel Option to purchase
under specific circumstances
None
None
1%
Option
fee in
Cash
4%
Exercise
fee in
Cash
First 180,000: 1%
Next 180,000: 2%
Remainder: 3%
Stamp duty has to be paid in cash first
15% downpayment in
Cash and/ or
CPF
Pay Remaining down

payment
When buying a property in Singapore, do

take time to plan and take note of the
above
29
29
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New launch sale buying process
Louis Neo
+65 9090 5898
Cash flow
Things to look out for
T-90
Obtain AIP (Approval In

Principal) from a bank (valid
for 30-90 days)
T-90
Research on condos
T+14
to
T+21
Before
T+35
Decide on a new launch
None
Do your research however note that some

intangible factors may not be quantifiable
Confirm with your bank beforehand that they will
be able to issue a bank loan letter of offer within 14
days of exercise of option
None
Many buyers have already paid the option fee

before realizing that they are unable to get a bank
loan due to TDSR, LTV or other loan restrictions
AIP is very important, buyers are recommended to
fill out the actual application form and provide the
full set of documents
5-10%
Option
fee in
Cash
Sign Option to Purchase
Sale & Purchase Agreement

(S&P) to be delivered to
buyer
Sign S&P Agreement and

return to developer
If buyers decide to not exercise the option, they

can be refunded up to 75% of the option fee paid
(market norm)
Different developers require down payment to be

paid at different times buyers should check with
the developer of the condo
10-15% down
payment in Cash
and/or CPF
Stamp duty has to be paid in cash first
Pay Remaining down

payment (Some
developers may allow
payment to be made
within 8 weeks of signing of
OTP)
T+49
Give banks a whole set of documents so you dont

get surprises when you raise an actual loan request
Understand cash flow requirements, deadlines,
mode of payment of different fees (e.g. ABSD has
to be paid in cash first) and the different policies
that may restrict you from getting a loan (e.g. TDSR,
LTV)
Pay Stamp Duty and/or

Additional Buyers Stamp
Duty
Option to purchase is valid for 3 weeks from

delivery of S&P
First 180,000: 1%
Next 180,000: 2%
Remainder: 3%
COMPLETION
When buying a property in Singapore, do

take time to plan and take note of the
above
30
30
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Did you know?
DREA allows your to search for both information and

listings naturally just by asking.
Try the following:
Find me a 1 bedroom in novena with yield of >3%
32
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For buyers - Tips and things to look out for

AIP and Mortgage Loans Confirm loan eligibility before paying option fees
For buyers, it is recommended to fill out the actual AIP application and
provide the bank a complete set of documents. AIP can be conducted in
written format or verbally, and is only based on the information the buyer
provides the bank. The loan amount stated in the AIP is not a guaranteed
amount offered to the buyer. Banks may end up making very different
assessments on a borrowers eligibility if the original AIP is based on
incomplete information. Providing a complete set of documents allows for a
more accurate estimate of the amount that the bank is willing to lend.
There have been instances where buyers obtain an AIP based on verbal or
incomplete information that they provide. After paying the option fee, they
realize that they are eligible for a much lower loan amount than what was
stated in the AIP. These buyers may have to forfeit the option fee that they
have paid if they are not able to fully finance the house. Hence, buyers
should always ensure that they are truly qualified to secure a loan before
paying for the option fee and to avoid any unpleasant surprises.
Cash flow requirements and housing policies Plan your finances and budget
Buyers are also advised to work out all the cash flow requirements, deadlines,
modes of payment, and their ability to pay the relevant charges and loans.
For example, some buyers may not be aware that Stamp Duty has to be paid
in cash first, before getting a refund from their CPF (for Singapore Citizens and
Permanent Residents). In such cases, when cash needs cannot be met, the
buying process becomes problematic. Buyers should therefore read up on
housing policies, cash flow requirements and carefully plan their finances and
budget before committing to a home purchase
Research It is not just about prices and some things cannot be quantified
When researching on a property, there are many things to look out for. While
some information such as prices and distance to MRT stations can be
expressed in numbers, many other factors such as furnishing, facing, and
surroundings cannot be quantified. However, these factors are equally
important in determining whether a unit is a good deal. DREAs property
pages summarize everything you need to know, from prices to on the ground
reviews.
Remember to do your research on

cash flow requirements and
policies before committing to a
33
33
purchase
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For buyers - Tips and things to look out for

Ownership Check Do so before paying the Option Fee
Before paying the 1% Option Fee, buyers should do an ownership check on
the property to ensure that the seller actually owns the property. While cases
like these arent very common in Singapore, its always better to be safe than
sorry. Ownership checks can be easily done through SLAs web portal.
Offer to purchase Be specific with what is required and get help if possible
We typically recommend getting a property agent to assist you with all the
paperwork however it is possible to do it on your own. For Buyers purchasing a
unit without an agents help, do a thorough read and review of your Offer to
Purchase letter. Some Offer to Purchase templates found online may not be
valid in Singapore. Even if these templates are valid, some clauses in the
templates may not be the norm for the Singapore property market, and
buyers may end up losing out.
The Offer to Purchase letter is also important because it specifies the wants
of the buyer. In the Offer to Purchase, buyers should state all the fixtures and
requirements that they want and expect to have. For example, the in-build
oven in the kitchen. It also sets the basis for negotiation.
Purchase of units with tenancy Always fact check the tenancy agreement
When purchasing a unit with tenancy, buyers are always advised to review
the tenancy agreement and look out for clauses that might potentially be a
problem. For instance, buyers should look out for any escape clauses which
would allow an existing tenant to terminate the contract at any time. In
addition, it is advisable to fact check the rental rate to see if it is inline with
market prices.
Pictures They can be helpful for resolving disputes
One tip for buyers when purchasing a resale property, is to take detailed
pictures of the unit before paying the option fee. This is useful in the event
that problems such as faulty power outlets or cracks in the wall are found
after moving in. With pictures as evidence, many arguments can be avoided.
Read through your Offer to

Purchase letter and review the
rental contact (if buying a unit
34
with tenancy)
34
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Top 15 most searched properties on Google as of July 2016

Condo Name
District
ICON
2 Chinatown/Tanjong Pagar
Gem Residences
12 Balestier/Toa Payoh
Zedge
11 Newton/Novena
Kingsford Waterbay
19 Hougang/Punggol/Seng Kang
Star of Kovan
D'Leedon
10 Tanglin/Holland
Cairnhill Nine
9 Orchard/River Valley
Lake Grande
22 Boon Lay/Jurong/Tuas
Sol Acres
23 Bukit Batok/Bukit Panjang
Eight Riversuites
12 Balestier/Toa Payoh
Sage
10 Tanglin/Holland
Leedon Residence
10 Tanglin/Holland
Sky Habitat
20 Ang Mo Kio/Bishan/Thomson
High Park Residences
Botanique at Bartley
Sources: Google Adwords,
DREA Analytics
We found a list of top 15

properties which are most
searched on Google
36
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Top 10 schools in Singapore and the price of properties within 1KM

Prices of properties within 1km radius of Top 10 Primary Schools1 in Singapore
(1,000 1,500 sqft unit)
Median
Paya Lebar
590
Methodist Girls
Pei Hwa
Presbyterian
990
590
1,010
St. Hilda Primary
670
970
Nan Hua Primary
740
1,050
Rulang Primary
805
1,040
Henry Park
Primary
940
Nanyang Primary
960
Tao Nan
1,000
Raffles Girls
(Primary)
1,040
ACS Primary
1,070
Min Yeley Building

Max Park Residences Kovan
1,820
Min Kismis Court

Max Gardenvista
1,420
Min Bedok Court

Max Riviera Residences
1,150
Min Park West

Max Freesia Woods
1,190
1,300
1,390
1,070
1,300
1,620
Min Parc Vista

Max The Lakefront Residences
1,310
1,630
1,790
1,430
1,630
3,240
Min Pandan Valley

Max The Trizon
Min DChateau @ Shelford
Max Gallop Green
Min The Hacienda
Max Bedok Residences
Min Dover Parkview
Max The Trizon
Min Ferrell Residences
Max Balmoral Heights
For families with children, one concern regarding home location would be the schools near it. In
Singapore, enrolment in top primary schools can get really competitive. In some cases, parents sign up to
volunteer for the school a few years before their children start their primary education. However, one key
factor that determines a childs eligibility and possibility of getting into a prestigious primary school would
be the Home-School Distance.
1. Top 10 schools determined based on extensive qualitative research across various Singapore
parenting forums
For parents, there are actually

many options for living within 1
Km from a top 10 school
37
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Best value private properties which are near to Top 10 Schools

PSF prices of homes within 1km radius of Top 10 Primary Schools in Singapore
(1,000 1,500 sqft unit)
1,115
0.88km to Raffles Girls
Dover Parkview
768
Faber Crest
778
957
0.65km to Nan Hua
Pandan Valley
829
1,032
0.73km to Henry Park

The Infiniti
851
DChateau @ Shelford
956
956
0.91km to Nanyang
2.77km to ACS Primary
Coronation Arcade
1,003
1,003
0.33km to Nanyang
Crescendo Park
1,050
Quinterra
1,134
1,287

Ridgewood
1,216
1,258

0.98 to Raffles Girls
1,095
1,069
0.68km to Nan Hua
0.93km to Tao Nan Sch
Sources: DREA Analytics
Here are some of the bestvalue properties near top 10

primary schools in Singapore
38
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For those looking to stay within the CBD

Properties within the Raffles Place / Shenton Way area
(500 1000 sqft units)
International Plaza 966
1,084
(13 min to Raffles Place)
ICON
1,532
1,930
The Sail @ Marina Bay
1,475
2,447
Marina Bay Suites
1,977
2,601
Marina Bay Residences
2,186
3,365
Sources: DREA Analytics
For buyers looking for 500-1000 sqft

units in the CBD area, it is possible to
live near Raffles Place for ~S$1000 PSF
39
39
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Properties that might be affected by the Qualifying Certificate

(QC) extension fees
Condo
Total Units %
TOP
Units Unsold Unsold
Deadline
to Sell
OUE Twin Peaks
462
392
84.8% 2015
Feb-17
Nouvel 18
10
156
156
100% 2014
Nov-16
Leedon Residence
10
381
158
41.4% 2015
Jun-17
Twentyone Angulia Park
54
45
83.3% 2014
Apr-16
Le Nouvel Ardmore
10
43
39
90.7% 2014
Apr-16
Ardmore 3
10
84
80
95.2% 2015
Dec-16
DLeedon
10
1715 193
11.3% 2014
Oct-16
The Interlace
1040 179
17.2% 2013
Sep-15
iLiv @ Grange
10
30
30
100% 2013
Oct-15
Goodwood Residence
10
210
37
17.6% 2013
Jun-15
Starlight Suites
105
31
29.5% 2015
May-16
Waterscape at Cavenagh
200
51
25.5% 2014
Sep-16
Tomlinson Heights
10
70
36
51.4% 2014
Mar-16
Lincoln Suites
11
175
11
6.3%
2014
Apr-16
Cityscape @ Farrer Park
250
25
10%
2015
Oct-16
Sources: Analyst reports, DREA Analytics, URA, Realis
Developers will have to pay QC extension

fees yearly if all units are not sold within
two years of completion. To avoid this
charge, some developers might offer
41
41
price discounts on unsold units
Powered by DREA
Rental PSF Price Change
3.3%
1H 16 vs 1H 15
1H 16 vs 1H 14
-5.7%
-5.4%
-6.2%
-8.6%
-9.1%
-8.8%
-9.9%
-12.1%
-15.4%
1BR
2BR
3BR
4BR
5BR/PH
Rental prices have generally declined across all condo sizes.
Rental Volume by number of bedrooms

9.433
10.751
5.157
2.463
83
No. of bedrooms
Sources: DREA, URA, Realis
Rental prices have declined, 2

and 3 bedroom units have the
highest rental liquidity
42
42
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Growth
(1H 15 VS 1H 16)
Rental Volume by district (2016)

9
3,305
15
3,171
10
3,042
14
2,271
19
-185
-29
-497
+342
+862
2,090
16
1,573
+310
11
1,561
-76
1,503
12
-8
1,434
+201
23
1,277
+1
21
1,255
+53
18
-262
1,227
1,186
+256
+12
891
-106
830
+1
796
22
728
-23
716
-249
20
17
+135
609
27
+55
479
433
13
7
+160
664
+50
+9
345
25
236
-40
28
217
+102
26
192
+5
+18
6 18
Rental demand
continues to grow,
volume is up 5.3%
+5.3%
30,428
1H15
32,049
1H16
43
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Rental Price change by district for 1-bedroom condos (1H 2015 VS 1H 2016)
18%
13%

3%
3%
D7 Beach Road / Bugis / Rochor
2%
0%
0%
-2%
-2%
-2%
-3%
-3%
-3%
-3%
-5%
-5%
-5%
-5%
-6%
-8%
-8%
D11 Newton / Novena
-9%
-9%
-10%
-10%
D18 Pasir Ris / Tampines -16%

Median rental prices for 1-bedroom

units in most districts have fallen, with
the exception of some districts
See Appendix for price trend of other unit types
44
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Rental Price change by district for 3-bedroom condos (1H 2015 VS 1H 2016)
-0.1%
-0.9%
-1.4%
-2.1%
-2.2%
-2.3%
-2.9%
-3.1%
-3.7%
-3.8%
-4.2%
-4.2%
-4.3%
-4.4%
-4.6%
-4.8%
-4.8%
-5.3%
-6.0%
-6.1%
D11 Newton / Novena
-6.8%
-8.6%
-8.6%

-9.9%
-10.7%
D7 Beach Road / Bugis / Rochor -12.8%

For 3 bedroom units, median rental

prices have fallen across all districts
See Appendix for price trend of other unit types
45
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Top 10 properties with high rental liquidity

Property
Last 12 Month Rental Volume

(As of 30 Jun 2016)
655
The Sail @ Marina Bay
503
Reflections At Keppel Bay
Bedok Residences
427
Gross Yield
3.7%
3.4%
3.5%
City Square Residences
400
3.3%
Bartley Residences
397
3%
DLeedon
362
2.7%
Caribbean At Keppel Bay
365
3.9%
A Treasure Trove
342
2.9%
Bayshore Park
343
4.0%
EUHabitat
335
3.6%
Investors may take comfort in some

of these properties which still offer
high rental yield
46
46
Email to enquire about latest mortgage packages at

drea@redbrick.sg
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Mortgage Rates Today
Deposit pegged mortgage rates (DPMR) which goes by different names across the major banks, first
came into the market as a solution to tackle rising interest rates specifically SIBOR.
As DPMRs gain popularity, the current FD rates may not remain attractive to potential depositors and
there may be pressure on the banks to increase these rates. This will result in increased FD rates and a
surge in DPMR schemes. Borrowers should take note that DPMR rates are still board rates and are
ultimately controlled and regulated by the individual banks
Bank
Rate Type
Lock-in
Initial Rate
Thereafter
18M FHR
(0.6%)*
18M FHR + 1.2%
18M FHR + 1.2%
36M FDMR
(0.65%)*
3 Years
36M FD + 1.13%
36M FD
+1.70%
36M FDPR
(0.65%)*
2 Years
FDPR
+ 1.15%
FDPR
+ 1.65%
48M FDR
(0.50%)*
FDR
+ 1.15%
FDR
+ 1.15%
Fixed
3 years
1.80%
Fixed 3 yrs
18mth FHR +
1.20%
2 years
1.80%
Fixed 1 yr
Year 2 & 3
36FDMR + 1.15%
Thereafter
36FDMR + 1.70%
2 years
1.68%
Fixed 2 yrs
Year 3
FDPR + 1.03%
Thereafter
FDPR + 1.15%
2 years
1.68%
Fixed for 2 yrs
Year 3
SRFR(1) 1.60%
Thereafter
SRFR 1.01%
Fixed
Fixed
Fixed
*Refers to reference rate as of 3 August 2016.

1. SRFR is currently 4.0%
Get the best rates in town from

more than 16 banks and lenders
Click here for the latest rates
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Median rental price trend for 1-bedroom condos (S$ PSF)

5.6
1 Bedroom
units
5.5
5.45 5.45
5.4
5.3
5.22
5.2
Mainly for
expats and
young working
professionals
5.11
-5.2%
5.1
5.0
4.92
4.92
4.9
4.8
4.73
4.7
4.6
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
4.67
4.67
1Q16
2Q16
1 bedroom units are a popular choice for young working professionals and expats.
On the other hand, families looking to rent a condo would tend to go for 3-4 bedroom
units, as they would need more space as compared to working professionals and
expats.
Median rental price trend for 3-bedroom condos (S$ PSF)

3.40
3.35
3 Bedroom
units
3.30
3.25
3.24
3.27
3.20
3.20
3.15
Mainly for
families
-5.0%
3.13
3.12
3.08
3.10
3.05
3.00
2.98
2.97
2.96
4Q15
1Q16
2Q16
2.95
2.90
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
Rent for larger units have declined

as much as smaller units, tenants
should expect a 5% discount when
49
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For 1 Bedroom Units

Top 10 District By Volume
Orchard,
River Valley
Eunos, Geylang,
Paya Lebar
Monthly Rental Range

(S$ /month)
Properties
Lowest
D9
7,300
1,900
Mackenzie 88
Highest
Two8One Studio
Lowest
D14
1,200
Treasures @ G20
3,800
Highest
Waterbank At Dakota
Lowest
East Coast,
Marine Parade
D15
Tanglin, Holland
D10
La vida @ 130
4,500
1,500
Highest
Cote DAzur
Lowest
5,700
2,000
Viz at Holland
Highest
The Holland Collection
Boat Quay, Raffles

Place, Marina
Chinatown,
Tanjong Pagar
Balestier,
Toa Payoh
Farrer Park,
Serangoon
Hougang, Punggol,
Sengkang
Lowest
D1
6,300
2,300
Pearls Centre
Highest

Lowest
D2
6,600
2,600
Spottiswoode Residences
Highest
Altez
Lowest
D12
1,500
3,350
Suites @ Topaz
Highest
Domus
Lowest
D8
1,700
4,050
Tyrwhitt 139
Highest
Residences @ Somme
Lowest
D19
1,500
Casa Cambio
3,000
Highest
The Chuan
Lowest
Newton, Novena
*Excludes outliers
D11
1,900
4,300
Zedge
Highest
Miro
Visit DREA.sg for the latest insights on rental

price trends for different districts
Click here for district rental trends
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For 3 Bedroom Units

Top 10 District By Volume
Monthly Rental Range

(S$ /month)
Properties
Lowest
Tanglin, Holland
D10
The Sierra
18,500
2,500
Highest
Nassim Lodge
Orchard,
River Valley
Lowest
D9
Hougang, Punggol,
Sengkang
D19
Clementi Park,
Upper Bukit Timah
D21
Buona Vista, West

Coast, Clementi
Harbourfront, Telok
Blangah
Highest
Lowest
D15
Bukit Batok,
Bukit Panjang
Oxley Mansion
20,000
Scotts 28
East Coast,
Marine Parade
Bedok
Upper East Coast
2,650
Coastarina
14,500
2,250
Highest
Coasta Rhu
Lowest
2,000
Glasgow Residence
7,000
Highest
Kensington Park Condominium

Lowest
2,000
Hume Park I
7,500
Highest
Pandan Valley
Lowest
D16
2,300
Bagnall Court
7,880
Highest
Riviera Residences
Lowest
D23
1,800
Montrosa
5,300
Highest
The Dairy Farm

Lowest
D5
2,400
Pasir Panjang Court
10,400
Highest
Island View
Lowest
D4
30,000
3,400
Harbour View Towers

Highest
Seven Palms Sentosa Cove

Lowest
Newton, Novena
*Excludes outliers
D11
2,700
10,300
Novena Lodge
Highest
Trilight
Visit DREA.sg for the latest insights on rental

price trends for different districts
Click here for district rental trends
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Things to take note of

Have a good understanding of the rental market
Landlords are typically represented by agents and are more often than not, familiar with market
prices and norms. You are likely to be on the losing end if you enter a rental negotiation without
any view on prices in the area, price trends or demand for a particular property.
To get started, you can get access to rental information from Singapores Urban Redevelopment
Authority (URA). For those who would like easy access to property insights on the go, DREA.sg
provides you instant real estate insights on past transactions, prices in the area, trends and even
a comparison of properties to help you shortlist the right homes for you.
It would also be advantageous for both landlords and tenants to know the market norm. Prior to
signing the contact, landlords, tenants, and agents should sit down and go through the tenancy
agreement. It would be useful to highlight any clause that is out of the norm so that all parties are
fully aware of what the contract entails.
Letter of Intent - Agree on furnishing items and itemize them where possible
A letter of intent is typically provided by the tenant to the landlord before a rental contract is
issued. Tenants are the ones providing the Letter of Intent, and they should try to be as detailed
as possible in the letter to achieve mutual agreement with the landlord from the onset on which
items and fixtures are provided. For example, if there is verbal agreement for landlord to provide
a television and a fridge, these should be itemized and reflected in the Letter of Intent.
Tenants renting a unit without the help of their own agent should thoroughly review their Letter of
Intent before sending it across to the landlord. Do note that templates for Letter of Intent found
online may not always reflect rental norms in Singapore.
Take pictures likely to come in handy when resolving disputes
It is advisable for tenants to take detailed pictures of the rental unit prior to moving in. This is
helpful if tenants end up finding fault with the unit after moving in for a period of time. e.g. a
cracked ceiling. With pictures as evidence, it is easier to determine who is responsible for the
repair fees and arguments over minor issues can be avoided.
Negotiation Research matters and dont just negotiate on rental prices
One way to negotiate for a discount is to offer to pay several months worth of rent upfront.
However, this may not necessarily work on all landlords. The best way to get a good rental price
would be to research on past rental transactions in the property and in the area, and use that as
a base for negotiation. DREAs instant negotiation tool provides you with key points for
negotiation as well as data to back you up.
Aside from prices, tenants may also negotiate for a warranty period on furnishing items. This way,
if items such as the Television were to break down soon after moving in, they will be covered by
the landlord.
Minor repair fees Agree on the amount and the process for getting quotes
Minor repair fees refer to the amount a tenant would have to pay out of pocket. Any repair cost
above this amount should be paid by the landlord unless it is a case of damage caused by the
tenant. It is therefore important for tenant and landlord to agree on this and have in in the rental
contract.
Separately, it is also important to agree on the process for getting a quotation for repair. Will the
landlord be the one to get a quotation or should the tenant be getting a quotation? Landlords
will always want to get the cheapest quote so they dont have to pay as much; tenants will
always want to get a quote higher than the agreed minor repair fee so they dont have to pay
for the repairs and get the best quality possible. Hence, landlords and tenants should agree on a
procedure for getting quotes to avoid arguments in the future.
53
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Things to take note of

Tenancy Agreement
The Tenancy Agreement is actually a standardized agreement that is commonly

used for all rentals. This is a template that real estate agents would use. If there are
clauses that the tenants and landlords would like to include or remove, the agent
should edit the agreement before having both the landlords and tenants sign it.
More tips on saving money when renting a condo

1.
Start apartment hunting early - Always allocate 1-2 months to do your

research on the condos that will fit your requirements
2.
Know your landlord - Understand if the landlord has had multiple enquiries
and find out if the apartment or condo has been on the market for a while
3.
Identify your needs - Identify the things that matter to you from the onset so
you dont end up paying a premium for things that matter to others but not
to you.
4.
Be sure of what youre asking for - Do not show hesitation or weakness as

the landlord might sense that and you will lose bargaining power.
5.
Be creative with your asks - If you tried lowering the rent but failed, dont
give up. Try for something else. Be creative with your asks and you might just
get it.
6.
Find the right agent to represent you - The right agent will recommend the
right homes and provide additional input to help you get the best deal
possible.
Visit DREA.sg to find out about

market norms and negotiation
points
54
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Monthly rental prices of condos within 1km radius of Top 10 Primary Schools
(1,000 1,500 sqft unit)
Southaven I
2,400
Pandan Valley
2,500
Crescendo Park
2,500
Kellett Court
2,750
Freesia Woods
2,900
Astor Green
3,100
4,300

1.02km to Pei Tong
Ridgewood
3,000
4,400

0.98 to Raffles Girls
4,400

Quinterra
3,600
3,200
0.91km to Pei Hwa

3,800
3,400
0.93km to Tao Nan Sch
0.85km to Nanyang
2.73km to ACS Primary
3,900
4,800
0.81km to Nan Hua

0.90km to Pei Tong
Sources: DREA, URA, Parenting forums
Here are some of the bestvalue rental properties near top

primary schools in Singapore
56
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Rental Properties within walking distance to Raffles Place
International Plaza 2,600
5,700
The Sail @ Marina Bay 2,800
13,000
ICON 2,900
7,200
(4 min to Raffles
Place)
3,900
17,568
Marina Bay Suites
6,300
15,800
Sources: DREA, URA
For tenants looking at units in Raffles

Place, there are options going for
less than S$ 3000 / month
57
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Rental - Top 10 Most Value For Money condos with the most amenities
(across all sizes and time periods)
4,060
D2 Chinatown Plaza 1,300
D23 Glendale Park
2,100
D27 Sun Plaza
2,100
D20 Thomson View

Condominium
2,300
D15 Tembeling Centre
2,600
D20 Thomson Imperial

Court
2,600
D14 Sims Residences
2,800
D10 Botanic Gardens

Mansion
3,100
D20 Boonview
3,200
D21 Meadowlodge
3,200
<10-minute walk to
MRT
3,400
4,250
4,400
Supermarkets
Food
Courts
2,600
Shopping
Malls
2,600
4,000
Search condos by
amenities with
DREA here
4,700
3,900
4,200
For those who are not concerned with the distance to schools and CBD, and are just
looking to rent a value-for-money condo located near amenities, we compiled a list
of the Top 10 most value-for-money condos that are under a ten minute walk to the
MRT, a supermarket, a shopping mall, and a food court.
Sources: DREA, URA
For rental properties near

amenities, the above offer good
value-for-money options
58
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Districts in Singapore
D6 Cityhall / Clarke Quay
D7 Beach Road / Bugis / Rochor
D11 Newton / Novena
60
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Cooling Measures
Feb10
Introduced Sellers Stamp Duty (SSD) for private residential property

Lowered Loan-to-Valuation (LTV) from 90% to 80% for private
property
Aug10
Further increased holding period of SSD from 1 to 3 years with

graduated stamp duty
Increased minimum cash payment to 10% for buyers with >1 loan
Decreased LTV for multiple mortgage holders from 80% to 70%
Jan11
Increased SSD period from 3 to 4 years and increased rates (1st yr 16%
(from 3%), 2nd yr 12% (from 2%), 3rd yr 8% (from 1%) and 4th yr 4%
(from 0%)
Lower LTV for non-individual purchasers (50%) as well as individuals (60%)
Dec11
Introduction of Additional Buyers Stamp Duty (ABSD)

10% for foreigners and non-individual buyers
3% for PRs buying 2 properties and Singaporeans buying 3
properties
Sep12
Issuance of new guidelines for shoebox units
Oct12
Further LTV restrictions:

Loan tenure capped at 35yrs for individual and non-individual buyers
LTV for non-individual buyers lowered to 40%
For 2nd mortgage loan borrowers and above, LTV lowered to 40% for
loans >30 years or extend beyond 65
LTV of 60% for first time borrowers beyond 65
Jan13
Increased ABSD for Singaporean buyers (1st home 0%, 2nd home 0%
to 7%, 3rd home 3% to 10%)
Increased ABSD for Singapore PRs (1st home 0% to 5%, 2nd home 3%
to 10%)
Increased ABSD for Foreigners ( 1st home: 10% to 15%)
1st loan LTV 80%, 2nd 50%, 3rd 40%; LTV will be even lower for loan
tenure of more than 30 years or where borrower is >65 years
Increased cash downpayment for 1st property to 5% - 10% and 2nd to
10% - 25%
Jun13
New total debt servicing ratio (TDSR)

Maximum total debt limit of 60% taking into account monthly
repayment for property loan and other debt obligations
Apply a haircut of 30% to all variable rental income and amortise
value of eligible financial assets when computing TDSR
The Singapore government has

introduced several cooling
measures over a period of 3
61
years
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Appendices
Sale Transactions - Price change by district (1H 2016 vs 1H 2015)
For private
non-landed
residential
properties
<500 SQFT
For private
non-landed
residential
properties
between
500-1000
SQFT
D28
D15
D11
D10
D20
D14
D18
D8
D3
D2
-0.9%
D21
-2.5%
D19
-3.9%
D25
-5.8%
D16
-6.6%
D23
-7.3%
D13
-7.6%
D9
-9.7%
D12
-11.7%
D17
-12.3%
D5
-13.4%
D1
-18.6%
D27 -22.4%
26.4%
22.8%
21.7%
14.7%
8.5%
4.3%
2.6%
2.1%
0.5%
D21
33.0%
D9
23.0%
D20
17.1%
D13
16.1%
D26
14.5%
D11
11.6%
D4
11.4%
D10
7.1%
D2
4.9%
D28
4.6%
D5
4.3%
D15
3.9%
D19
3.5%
D23
2.2%
D12
2.1%
D25
1.3%
D3
1.1%
D14
0.9%
D18
-0.1%
D8
-0.8%
D17
-2.0%
D16
-2.3%
D22
-9.6%
D27
-17.0%
D1
-20.5%
D7 -27.7%
Sources: DREA, URA
Powered by DREA
For private
non-landed
residential
properties
between
1000-1500
SQFT
For private
non-landed
residential
properties
between
1500-2000
SQFT
D7
D9
D3
D1
D26
D8
D22
D21
D16
D13
D18
D10
D23
D12
D20
D19
D28
D5
D4
D25
D11
D14
D17
D15
D27
D2 -26.3%
D10
D3
D8
D7
D9
D21
D13
D26
D16
D18
D23
D4
D1
D15
D5
D17
D19
D27
D20
D28
D11
D25
D22
D12
D14
D2 -70.2%
32.4%
28.7%
20.4%
14.9%
14.5%
11.5%
11.1%
10.1%
7.0%
6.4%
4.6%
4.0%
3.1%
2.2%
1.6%
-0.2%
-1.2%
-1.8%
-2.0%
-2.3%
-2.5%
-2.7%
-7.4%
-8.6%
-12.3%
25.9%
25.9%
24.7%
18.5%
5.0%
3.3%
1.3%
1.3%
-1.1%
-1.2%
-2.2%
-2.6%
-3.4%
-5.7%
-5.9%
-9.7%
-10.0%
-11.6%
-12.8%
-13.1%
-16.1%
-18.6%
-20.5%
-23.5%
-38.1%
Sources: DREA, URA
Powered by DREA

D1
15.4%
D3
14.6%
D18
13.8%
D11
7.5%
D16
7.2%
D28
For private
non-landed
residential
properties
>2000 SQFT
3.4%
D5
3.3%
D14
3.1%
D10
2.2%
D20
0.9%
D17
0.7%
D19
0.4%
D23
-2.8%
D21
-4.9%
D9
-6.9%
D27
-9.0%
D15
-9.8%
D4
-11.3%
D25
-12.4%
D22 -25.6%
Number of sale transactions by unit size

2,625
2,299
2,164
1H14
1H15
2,016
1H16
1,842
1,776
747
482
603
411
526 547
367
244
<500
500-1000
1000-1500
1500-2000
303
>2000
Sources: DREA, URA
Powered by DREA
Rental Transactions - Price change by district (1H 2016 vs 1H 2015)
For 1bedroom
private nonlanded
residential
properties
For 2bedroom
private nonlanded
residential
properties
D4
D21
D27
D2
D7
D17
D23
D22
D20
D12
D25
D16
D15
D28
D9
D19
D1
D8
D3
D26
D5
D11
D13
D14
D10
D18 -15.9%
18.2%
12.7%
3.2%
2.6%
1.9%
0.0%
0.0%
-1.5%
-2.2%
-2.2%
-3.0%
-3.3%
-3.3%
-3.3%
-4.5%
-5.0%
-5.3%
-5.3%
-5.6%
-8.3%
-8.3%
-8.9%
-9.1%
-9.5%
-9.5%
D1
D2
D22
D23
D15
-1.3%
D27
-2.0%
D11
-2.6%
D3
-2.8%
D21
-3.0%
D16
-3.1%
D19
-3.5%
D9
-4.0%
D14
-4.4%
D5
-4.6%
D10
-4.8%
D4
-5.2%
D7
-5.4%
D18
-6.2%
D12
-6.5%
D17
-6.9%
D26
-7.4%
D25
-7.6%
D28
-8.2%
D13
-8.4%
D8
-8.7%
D20 -9.5%
1.6%
0.1%
0.0%
0.0%
Sources: DREA, URA
Powered by DREA

D22
D23
D20
-0.1%
-0.9%
-1.4%
-2.1%
D12
D1
D8
D13
D10
D9
For 3bedroom
private nonlanded
residential
properties
-2.2%
-2.3%
-2.9%
-3.1%
-3.7%
D28
D19
D5
D27
D15
D16
D14
D3
-3.8%
-4.2%
-4.2%
-4.3%
-4.4%
-4.6%
-4.8%
-4.8%
D26
D21
D2
D11
D17
D18
D4
D25
D7 -12.8%
For 4bedroom
private nonlanded
residential
properties
D28
D22
D5
D25
D17
D14
D27
D3
D16
D13
D20
D9
D18
D12
D15
D21
D10
D23
D1
D11
D4
D26
D8
D19 -19.7%
-5.3%
-6.0%
-6.1%
-6.8%
-8.6%
-8.6%
-9.9%
-10.7%
9.0%
6.8%
4.7%
3.8%
3.2%
2.9%
1.4%
-0.4%
-1.8%
-2.1%
-2.8%
-3.4%
-4.3%
-4.7%
-5.0%
-5.7%
-6.2%
-6.6%
-6.7%
-7.5%
-7.8%
-8.3%
-9.3%
Sources: DREA, URA
Powered by DREA

D15
For 5bedroom
private
nonlanded
residential
properties
13.3%
D10
6.4%
D4
5.6%
D9
2.6%
D16
-1.0%
D5
-13.8%
D11
-41.7%
D12 -52.0%
Number of rental transactions by unit size

10,751
10,220
9,433
1H14
7,927
1H15
1H16
5,157
3,773
3,413
2,462
2,351 2,463
1,003
702
20
97
83
No. of bedrooms
Sources: DREA, URA

DREA 1H2016 Singapore Property Market Review

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DREA 1H2016 Singapore Property Market Review

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Singapore Property

DREA Editorial Team

Yuet Whey Siah

Price trend, cooling measures and interest rates

B. Property Market Outlook

A look at upcoming supply

C. For those looking to buy or invest

A guide on the buying process

D. For those looking to rent

Rental price trends and opportunities

The Singapore Property Market is softening under controlled cooling measures

Prices have softened since 2013

Sources: URA, DREA

The Singapore Property Market is

Summary of Key Property Regulations

Less than 1 year

More than 1 year & up to 2 years

More than 2 years & up to 3 years

More than 3 years & up to 4 years

1st loan (<30 years)

1st loan (31-35 years) and/or >65yrs borrowers retirement age

2nd loan (<30 years)

2nd loan (31-35 years) and/or >65yrs borrowers retirement age

3rd loan (<30 years)

3rd loan (31-35 years) and/or >65yrs borrowers retirement age

A complete timeline of cooling measures can be found in the appendices

Sources: IRAS, MAS, DREA

is not time yet to ease the property cooling

entrench the gains in stabilising the property

Singapore Mortgage Reference Rates (%)

3-mth SIBOR (%)

DBS 18-mth Fixed Deposit Rate1 (%)

Local interest rates have remained

Spread is a variable amount set by the bank

Property buyers should take note

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Demand for housing loans (1H16 vs 1H15)

Outstanding Housing Loan in Banks (S$bn)

214 214 215

158 157 159

Many believe that the market is close

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DREA shows you prices of properties immediately

*Refer to Appendices for name of districts

Volume of sale transactions by district (1H 2016)

Buyer demand seem

1H 2016: 6348 transactions

*Refer to Appendices for name of districts

Demand for new sale vs. resale units

For 1H 2016, volume is

Price change by district (1H 2016 vs 1H 2015)

For private non-landed residential properties between 500-1000 SQFT

D13 Macpherson / Potong Pasir

D4 Harbourfront / Telok Blangah

D10 Tanglin / Holland

D5 Buona Vista / West Coast / Clementi New Town

D23 Bukit Batok / Bukit Panjang

D8 Farrer Park / Serangoon

D17 Changi Airport / Changi Village

D27 Sembawang / Yishun

Volume. of Transactions by size

Sources: URA, Realis, DREA

Demand for 500-1000 sqft units are the

Property purchases in many