Issue 13 | www.Propwise.

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SINGAPORE PROPERTY WEEKLY Issue 13

From the Editor

Welcome to the thirteenth edition of the Singapore Property Weekly. Weve added a Tenure column to our property transactions in this issue based on reader feedback. Hope it is helpful! Mr. Propwise

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Contents
Singapore Property News This Week What the Raised Income Ceiling Means For the Property Market What the Negative Swap Rate Means For You Resale Property Transactions (July 30- August 05) Singapore Property Classifieds #3 Pg 2 Pg 5 Pg 8 Pg 11 Pg 13

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SINGAPORE PROPERTY WEEKLY Issue 13

Singapore Property This Week

Residential News
Government increasing income ceiling for HDB flats and EC units Besides introducing 25,000 BTO units in 2012 and 8,000 flats in September 2011, the Government will be increasing the income ceiling for HDB flats from $8,000 to $10,000 and ECs from $10,000 to $12,000. The $10,000 HDB income ceiling will be applicable for the purchase of new flats, resale flats with a CPF housing grant, and the application of a HDB loan for a new or resale flat. However, the income ceiling for DBSS will remain at $10,000. This means that DBSS will face direct competition from BTO flats as buyers who earn at least $10,000 per month can choose between BTO and DBSS flats. These adjustments will certainly affect flat sellers and some private developers. JLL predicted that the annual demand for new housing in the private market will likely decrease by 5% to 15% (approximately 700 to 2,000 units). Both Credo Real Estate and Global Property Strategic Alliance believed that the resale flat market will not be affected significantly since units in matured estates remain attractive. After 2 months of gloomy results, private home sales finally see improvement in July The number of private houses (excluding ECs) sold by developers in July was 1,386 units, a 17.3% hike from the 1,182 units sold in June. The number of ECs sold by developers also increased from 212 units in June to 569 units in July. Including ECs, developers private home sales in July added up to 1,954 units, a 40.2% month-on-month hike. The improvement in July home sales can be linked to low home loan rates, home buyers returning

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SINGAPORE PROPERTY WEEKLY Issue 13

after the June school vacation, and buyers speeding up their home purchases to avoid buying during the Hungry Ghost Month. A top bid of $105 million obtained for a landed housing site at Serangoon Garden Way A 99-year, 305,711 sq ft landed housing site at Serangoon Garden Way received 16 bids at a tender. The highest bid of $105 million ($343 psf of land area) came from a joint-bid between City Developments and Hong Realty. The top bid was 10.4% higher than the second highest bid of $95.13 million ($311 psf of land area) offered by ZACD Investments. Credo Real Estate linked the strong responses for the site to the scarcity of landed sites. City Developments is planning to use the site for a terraced-housing project which will be launched next year. Private home sales increased 21.6% in Q2, with Chinese nationals making up the highest proportion of foreign buyers: DTZ DTZs analysis of caveats lodged for both new and secondary sales revealed that the number of transactions for private houses increased 21.6% quarter-on-quarter in Q2 2011, from 6,958 deals in Q1 to 8,458 deals in Q2. Chinese nationals still make up the greatest proportion of foreign buyers of residential properties in Singapore; the number of private residential units purchased by them increased from the more than 527 units in Q1 to 640 in Q2. DTZ also noticed that the proportion of buyers with HDB addresses has been rising over the last three quarters; such buyers purchased 38.7% of all private houses in Q2, a hike from the 37% in Q1.

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SINGAPORE PROPERTY WEEKLY Issue 13 Commercial News

URA launched a Woodlands industrial site URA launched a 60-year leasehold industrial site at Woodlands Avenue 12 (Parcel 3) under the Reserve list after receiving an application from an interested bidder who offered to bid for the site at not less than $56,150,000 (approximately $111 psf ppr). The site, which has a site area of 202,362 sq ft and a maximum gross plot ratio of 2.5, is zoned for Business 1 use and has a maximum building height of 61m above mean sea level. URA will put the site up for sale via a public tender. Alpha put up 135 Cecil Street and Robinson Centre up for sale Alpha Core Real Estate Fund has put up two office blocks in the CBD, freehold 135 Cecil Street and Robinson Centre, up for sale via separate EOI. Marketed by DTZ and CBRE respectively, the two office buildings can possibly fetch a total of near $500 million. The 14-storey 135 Cecil Street, which has an existing GFA of 100,900 sq ft, has a NLA of 83,076 sq ft and can potentially fetch $183 million to $191 million. It is currently 92% occupied and its average monthly passing rent is $8.23 psf. The 20-storey Robinson Centre has a NLA of 132,288 sq ft and can likely fetch $291 million to $304 million. It is currently 96.5% occupied and has 71 car park lots.

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SINGAPORE PROPERTY WEEKLY Issue 13

What the Raised Income Ceiling Means For the Property Market
By Dennis Ng The news was expected as the then Minister for National Development (Mr. Mah) had mentioned in the run-up to General Elections in May 2011 that the income ceiling for HDB flats would be increased. The changes announced by Prime Minister Lee during National Day Rally on Sunday night 14 Aug 2011 are as follows: 1. Income ceiling for purchase of new HDB flats and for HDB Resale flats will be raised to S$10,000 from S$8,000 previously. 2. Income ceiling for buying ECs (Executive Condos) will be raised to S$12,000 from S$10,000.

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SINGAPORE PROPERTY WEEKLY Issue 13

3. Income Ceiling for Singles will be raised from S$3,000 to S$5,000 to qualify for the HDB Housing Grant, and the housing grant will be increased from S$11,000 to S$15,000. Those earning up to S$10,000 will get S$30,000 CPF Housing Grant when buying new ECs. Those who earn between S$10,000 to S$11,000 would get S$20,000, while those earning between S$11,000 to S$12,000 would get S$10,000 instead. This is still better than before, where anyone earning more than S$10,000 cannot buy New ECs and will NOT get any Housing Grant at all. either buy new HDB flats or resale HDB flats and be entitled to a Housing Grant. 2. Demand for 3 room Resale HDB flats will go up. Many more singles will be given the Housing Grant to buy a Resale flat and many of them are likely to rush out to buy 3 room Resale HDB flats. 3. Some of the demand for Mass Market condos, especially those priced between S$1,000 psf to S$1,300 psf will drop, as part of the demand will shift to ECs and HDB Resale Flats. 4. With more higher income families (those earning above S$8,000 to S$10,000) qualifying to buy HDB Resale flats, this might push up demand for HDB Resale flats and there might be upward pressure on COVs (Cash Over Valuation).

What are the possible impacts? 1. Demand for DBSS (Design, Build and Sell Scheme) flats might drop. DBSS flats were previously for those whose income exceeded S$8,000 but are below S$10,000. There is NO longer this sandwiched class in the new ruling. People earning S$8,000 to S$10,000 can now

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SINGAPORE PROPERTY WEEKLY Issue 13

My outlook for property prices All in all, I do NOT see the possibility of Singapore property prices falling much in the next 6 to 12 months as we still have a tight supply situation within this period. Most of the 25,000 new HDB flats announced by Minister Khaw to be built in year 2011 would probably only be completed in year 2013 earliest. coincides with a slowdown in the Singapore economy as by 2013 we might be in the midst of a Global Financial Crisis that could hit the world in the next 3 to 10 months. Year 2013 and year 2014 will also see over 30,000 units of new condos being completed, so there might be an over-supply situation in condos during the same time period as well.

Next year, Minister Khaw again promised to build another 25,000 new HDB flats. So I worry that there might be an over-supply of new HDB flats in year 2013 and year 2014. Especially if it

By Dennis Ng, Director of Leverage Holding and Master Your Finance.

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SINGAPORE PROPERTY WEEKLY Issue 13

What the Negative Swap Rate Means For You

In a surprising development, the Singapore dollar Swap Offer Rate (SOR) turned negative for the first time on August 10th due to inflows into the Singapore dollar. In this article well explore what the SOR is, why it turned negative, and what impact that has on the banks, borrowers and depositors. What is SOR? SOR is the effective cost of borrowing SGD synthetically through borrowing USD for 3 months and swapping out the USD in return for SGD for the same maturity. The other commonly used benchmark is SIBOR (Singapore Interbank Offered Rate), which is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market). The Association of Banks in Singapore is the fixing authority for both rates. Some of the differences between the two: 1. SIBOR is determined by the demand and supply of funds in the Singapore interbank market, whereas SOR is more influenced by external factors such as USD interest and exchange rates. 2. SOR tends to be more volatile because exchange rates and USD money market rates are more volatile. Why did it turn negative? Singapore has been attracting large inflows of U.S. dollars from investors looking for a refuge
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SINGAPORE PROPERTY WEEKLY Issue 13

from the turmoil in the global markets. It also reflects market expectations of the exchange rate. But the expectation of a rapid appreciation will attract even more inflows from investors looking for a safe-haven currency in AAA-rated Singapore. With exports under pressure, there are also some arguing that the pace of appreciation should be slowed down. For banks, the low interest rates have been hurting them by compressing their already low margins. As SOR has strayed into negative territory while interbank rates have stayed positive, some argue that it has started to lose its usefulness as a benchmark for pricing various loans such as mortgages. Some banks have now started to abandon SOR as a peg and switched to SIBOR or board rates. Some banks have also invoked market disruption clauses in their loan agreements to reset or use another benchmark for their loans.

In its April statement, the central bank MAS had effectively signaled its intention to allow the Singapore dollar to appreciate against a basket of currencies by re-centering the currencys band upwards, thus exacerbating inflows from investors looking for a strong currency.
What is the impact for borrowers and depositors? The negative SOR rate complicates the MAS efforts to clamp down on inflation. It may cause the MAS to rethink its policy on allowing the Singapore dollar to appreciate quickly to curb inflation so far this year it has gained 6.5 percent versus the U.S. dollar.

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SINGAPORE PROPERTY WEEKLY Issue 13

Interest rates are likely to stay low for an extended period as the U.S. Federal Reserve has signaled its intention to keep U.S. interest rates low till the middle of 2013. For borrowers, this means your borrowing costs are likely to stay low in the medium term. As for depositors, it means you will get almost no return by keeping your money as deposits in the bank. MoneyMatters.sg is your guide on how to make more money, save smarter, invest intelligently, and enjoy your money like a pro. Visit our site to get our free report on financial freedom.

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SINGAPORE PROPERTY WEEKLY Issue 13

Non-Landed Residential Resale Property Transactions for the Week of July 30 - Aug 5
Postal District 1 1 2 3 4 4 4 4 5 5 5 5 5 5 5 7 8 9 9 9 9 9 9 9 9 Project Name THE SAIL @ MARINA BAY PEOPLE'S PARK COMPLEX ICON RIVER PLACE CARIBBEAN AT KEPPEL BAY CARIBBEAN AT KEPPEL BAY THE BERTH BY THE COVE TERESA VILLE ONE-NORTH RESIDENCES THE MAYLEA PARC IMPERIAL THE PARC CONDOMINIUM CLEMENTIWOODS CONDOMINIUM NORMANTON PARK WESTCOVE CONDOMINIUM THE BENCOOLEN KERRISDALE VIDA RIVERIA GARDENS CAIRNHILL CREST LEONIE STUDIO LUCKY PLAZA THE IMPERIAL ELIZABETH HEIGHT ROBERTSON EDGE Area (sqft) 1,647 463 581 829 926 893 1,884 1,959 614 495 570 1,421 1,679 1,270 1,206 1,044 990 861 969 818 936 1,647 980 2,530 474 Transacted Price ($) 3,630,000 495,000 1,088,000 1,050,000 1,500,000 1,400,000 2,900,000 2,010,000 920,000 720,000 828,000 1,563,100 1,780,000 1,230,000 985,000 1,380,000 1,088,000 2,210,000 2,102,512 1,750,000 1,880,000 3,250,000 1,888,000 4,750,000 885,000 Price Tenure ($ psf) 2,204 99 1,069 99 1,872 99 1,267 99 1,620 99 1,567 99 1,540 99 1,026 FH 1,499 99 1,454 FH 1,451 FH 1,100 FH 1,060 99 968 99 817 99 1,322 99 1,099 99 2,566 FH 2,170 FH 2,139 FH 2,008 99 1,973 FH 1,927 FH 1,878 FH 1,869 999
Postal District 9 9 9 9 9 9 9 10 10 10 10 10 10 10 10 10 11 11 11 11 12 12 12 12 14 Project Name TRIBECA LA CRYSTAL LA CRYSTAL WATERFORD RESIDENCE ASPEN HEIGHTS UE SQUARE OLEANAS RESIDENCE LATITUDE LATITUDE GARDENVILLE THE HERMITAGE SOMMERVILLE PARK PALM SPRING MONTVIEW VALLEY PARK DUCHESS CREST MEDGE NINETEEN SHELFORD ROAD WATTEN HILL NOVENA COURT THE ARTE THE CITRINE ONE ST MICHAEL'S DE PARADISO COSMO Area (sqft) 1,905 958 1,055 1,055 3,143 1,528 1,550 2,766 2,788 1,776 850 1,302 1,496 1,948 764 1,345 463 947 2,626 861 1,055 1,313 1,249 904 398 Transacted Price Tenure Price ($) ($ psf) 3,530,000 1,853 FH 1,530,000 1,597 FH 1,650,000 1,564 FH 1,646,000 1,560 999 4,550,000 1,448 999 2,068,000 1,353 929 2,030,000 1,310 FH 6,153,500 2,224 FH 6,104,000 2,189 FH 3,380,000 1,903 FH 1,500,000 1,764 FH 2,030,000 1,559 FH 2,300,000 1,537 FH 2,700,000 1,386 FH 1,040,000 1,361 999 1,640,000 1,219 99 785,000 1,696 FH 1,350,000 1,425 FH 3,250,000 1,237 FH 500,000 581 FH 1,370,000 1,299 FH 1,455,000 1,108 FH 1,350,000 1,081 FH 900,000 995 FH 645,000 1,620 FH

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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SINGAPORE PROPERTY WEEKLY Issue 13

Postal District 14 14 14 14 14 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 16 16 16 16 16 16 16 16 17 17 Project Name CITY PLAZA THE SUNNY SPRING CENTRAL GROVE WINDY HEIGHTS WANG LODGE THE SEA VIEW THE COTZ ONE AMBER THE SERENNIA SANCTUARY GREEN SANCTUARY GREEN COTE D'AZUR PEBBLE BAY PEBBLE BAY THE SERENNIA TANJONG RIA CONDOMINIUM THE SERENNIA EASTERN LAGOON PALM VISTA GEMINI APARTMENTS COSTA DEL SOL PARBURY HILL CONDOMINIUM CHANGI COURT BAYSHORE PARK THE BAYSHORE EAST MEADOWS THE TANAMERA AQUARIUS BY THE PARK EDELWEISS PARK CONDOMINIUM BALLOTA PARK CONDOMINIUM Area (sqft) 915 1,023 1,023 2,476 1,012 560 452 1,615 646 775 1,119 1,679 1,367 1,367 980 1,378 1,119 1,076 1,055 1,270 1,238 904 872 1,173 1,227 1,216 1,324 1,227 1,335 1,421 Transacted Price ($) 915,000 890,000 885,000 1,850,000 670,000 950,000 630,000 2,200,000 839,800 975,000 1,400,000 2,050,000 1,608,888 1,585,720 1,082,900 1,520,000 1,232,000 1,160,000 950,000 995,000 1,510,000 925,000 870,000 1,160,000 1,110,000 1,070,000 1,090,000 968,000 1,100,000 965,000 Price Tenure ($ psf) 1,000 FH 870 FH 865 99 747 FH 662 FH 1,697 FH 1,394 FH 1,363 FH 1,300 FH 1,258 99 1,251 99 1,221 99 1,177 99 1,160 99 1,106 FH 1,103 99 1,101 FH 1,078 FH 901 FH 783 FH 1,220 99 1,023 FH 998 FH 989 99 905 99 880 99 823 99 789 99 824 FH 679 FH
Postal District 18 18 18 18 18 18 19 19 19 19 19 20 20 21 21 21 21 22 22 23 23 23 23 23 23 23 23 25 26 27 28 Project Name RIS GRANDEUR THE TROPICA TAMPINES COURT ELIAS GREEN RIS GRANDEUR TAMPINES COURT SUNGLADE COMPASS HEIGHTS KOVAN APARTMENTS CHERRYHILL RIO VISTA CLOVER BY THE PARK GRANDEUR 8 BUKIT REGENCY THE HILLSIDE SOUTHAVEN II PARC PALAIS PARC OASIS LAKEPOINT CONDOMINIUM HAZEL PARK CONDOMINIUM CASHEW HEIGHTS CONDOMINIUM MAYSPRINGS REGENT HEIGHTS HILLTOP GROVE REGENT GROVE PALM GARDENS HILLTOP GROVE ROSEWOOD BULLION PARK SELETARIS GRANDE VISTA Area (sqft) 1,292 1,572 1,690 1,528 3,111 1,722 861 1,066 1,485 1,033 1,238 1,281 1,421 1,432 1,302 1,841 1,378 1,227 1,884 1,012 1,647 904 1,163 1,485 1,163 1,216 1,647 1,173 1,259 1,647 2,024 Transacted Price Tenure Price ($) ($ psf) 1,220,000 945 FH 1,280,000 814 99 1,080,800 640 101 950,000 622 99 1,850,000 595 FH 955,000 555 101 952,000 1,106 99 950,000 891 99 1,250,000 842 FH 850,000 823 FH 970,000 784 99 1,600,000 1,249 99 1,280,000 901 99 1,338,000 935 FH 1,188,800 913 FH 1,550,000 842 999 1,130,000 820 FH 955,000 778 99 1,148,000 609 99 990,000 978 999 1,400,000 850 999 720,000 796 99 880,000 757 99 1,060,000 714 99 828,000 712 99 865,000 711 99 1,150,000 698 99 870,000 742 99 1,150,000 913 FH 1,300,000 789 FH 1,500,000 741 999

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SINGAPORE PROPERTY WEEKLY Issue 13

Singapore Property Classifieds #3

For Sale Soho@Central, 9F Soho 1BR loft, 635sf, tenanted till Jan 12@$5000. Mgt fee $975/quarter. Asking $2280psf+GST. Call S. Ganesh @ 91732881 now! Office space@Central, 19F 883sf, ask $2950 neg. Spectacular view of Marina Bay Sands, vacant, $1800/quarter. Call S. Ganesh @ 91732881 now! Breeze By The East, Upp East Coast Rd, FH, 2228sf 3+study. Future ERL MRT. Ask $10xxpsf. Call Val ERA @ 97638887 For Rent Luma, New 8F 1153sf 3br w/ balcony. Low rent $5,000 (neg). Partial furnished. Call S. Ganesh @ 91732881 for viewing!

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