Issue 166

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CONTENTS
p2 Top 5 Factors that Constitute a
"Good Location" Property
p5 Singapore Property News This Week
p12 Resale Property Transactions
(July 9 July 15 )
Welcome to the 166
th
edition of the
Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 166
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By SG Proptalk (guest contributor)
Someone asked us what we consider as
good locations when buying property in
Singapore. Below is our list of the top 5
factors that make a good location.
1. Located in Districts 9, 10 and possibly
11
Although prices are rather stagnant right now,
properties in these districts tend to maintain
their values better especially during the down
cycle.
2. Within 1 km of popular primary schools
This is a tried and tested formula, especially
for those without any affiliation with the school
Top 5 Factors that Constitute a "Good Location" Property
SINGAPORE PROPERTY WEEKLY Issue 166
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to allow registration in Phases 1 to 2B.
Although this does not guarantee admission,
your child will at least stand a chance to ballot
for any vacancies left after the initial phases.
For those who are buying for investment
purposes, properties within 1 km of popular
primary schools tend to be an easier let (and
possibly at higher rentals too). "Proximity to
International Schools" falls under this
category as well, in view of the better rental
potential.
3. Next to MRT stations
Whether you are talking about Newton or
Woodlands, properties within close proximity
of MRT stations are generally more sought
after, even from buyers who actually own
cars!
4. Proximity to amenities
We are talking about food, supermarkets and
even enrichment centers. Being the food
nation that we are, imagine having a selection
of food choices at your doorstep every time
you are hungry but dont feel like cooking. Or
imagine how all your childrens enrichment
needs can be available within walking
distance from your home, which means your
helper can possibly walk them to classes
rather than you having to drive them all over
the place.
5. Near to main roads
Although one may not wish to stay next to a
busy road, having to walk a fair distance just
to get to the main road may also be less than
ideal. My wife and I used to stay at Clementi
Park and while we loved the space of our
apartment and estate, we found it a tad far
from the main road. While we both drive and
there is a shuttle bus service for those who
dont, it is still quite a hassle especially
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if you have to depend on the shuttle bus.
Should you decide to walk the distance out to
the main road, you will probably be drenched
(either with sweat or rain) by the time you get
there.
The above are just our humble opinion as
always we can all agree to disagree (if
necessary). Please feel free to add to our list!
By The Folks @ SG Proptalk, a blog and
forum on buying Singapore property.
SINGAPORE PROPERTY WEEKLY Issue 166
Singapore Property This Week
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Residential
New ruling: HDB flat sellers will have
more time to move out of flats
To provide HDB flat sellers more time to
move out of their sold flats, the Housing &
Development Board (HDB) has eased current
rules. Previously, flat sellers need to vacate
their sold flats once the resale transaction
was completed. However, with the revised
ruling, flat sellers may stay in their sold flats
for up to three months. Under the new ruling,
flat sellers may request for a temporary
extension of their stay if they have already
been committed to buy a completed house.
Since a temporary extension will affect the
flat buyers minimum occupation period, any
request for an extension have to be
submitted to HDB. Nonetheless, flat buyers
and sellers may privately negotiate the details
of the extension. According to HDB, this will
help about 2,700 household a year to transit
into their new homes. Khaw Boon Wan,
Ministry for National Development said that
this may encourage more flat owners to sell
their flats. However, Mohd Ismail CEO of
PropNex Realty believes that this ruling is
unlikely to affect HDB resale prices.
(Source: Business Times)
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Number of private homes sold in Q2 up by
37.1%
According to DTZ, data from URA Realis
caveats database showed that 3,369 private
homes were transacted in Q2. This was a
37.1 per cent quarter-on-quarter jump in the
total number of private homes that were sold
in Q2 2014. Besides that, the resale market
for private homes has also perked up as the
number of private home units sold increased
from 386 units to 1,328 units in Q2. New
sales made by developers also increased by
36.8 per cent to 1,898 units. Up by 11.3 per
cent from Q1, 143 units were also transacted
in the subsale market in Q2. The data also
showed that buyers interest in the property
market has been increasing. In Q2, there was
a 45 per cent quarter-on-quarter increase in
the number of homes purchased by
Singaporeans. The number of homes
purchased by Singapore permanent residents
have also rose by 24 per cent and non-PR
foreigners have purchased 260 units in Q2.
Nonetheless, Lee Lay Keng from DTZ said
that due to the Total Debt Servicing Ratio
(TDSR) scheme, the overall transactions
made in H1 this year, compared to H1 last
year, is still lower.
(Source: Business Times)
Q2 URAs private home price index slips
1%
Following a 1.3 per cent dip in the private
home price index in Q1, the price index has
fallen by another 1 per cent in Q2, according
to the Urban Redevelopment Authority (URA).
However, the total transactions for private
homes has risen 46.4 per cent from Q1 to
Q2. Nonetheless, the price index in Q2 this
year is still 2.8 per cent lower than the price
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index in Q2 2013.On the other hand, HDB
resale flat price index has slipped 4 per cent
in Q2 while the number of resale applications
made for HDB flats rose by 16.1 per cent in
Q2, from the previous quarter. Market experts
believe that the release of more Build-To-
Order flats and the Sale of Balance Flats will
continue to shrink the market for resale HDB
flats. Eugene Lim from ERA Realty believes
that property prices are likely to fall as the
Total Debt Servicing Ratio framework is not
lifted. He also predicts that transaction
volumes will remain low. Property experts
have predicted that the full-year drop for the
HDB index to be between 4 to 8 per cent, and
they expect the URA index to fall between 5
to 8 per cent.
(Source: Business Times)
MAS not ready to ease cooling measures
While property prices are softening, the
Monetary Authority of Singapore (MAS) said
that it will not ease property cooling measures
as property prices are still high. According to
Ravi Menon, MAS managing director, over
the last three quarters, property prices have
fallen by 3.3 per cent. However, over the last
four years, prices have also climbed by 60
per cent. Ravi Menon said that if the cooling
measures are relaxed, property prices may
shoot up once again as the global interest
rates have been kept low. According to MAS,
the number over-leveraged households, who
have total debt servicing payments that
exceed 60 per cent of their monthly income,
to the number of property purchases has not
changed since last year.
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Thus in order for the market to stabilise, MAS
believes that it is too premature to relax
current cooling measures.
(Source: Business Times)
Kheam Hock Gardens launched for en
bloc sale
A 41,245 square feet private residential
development located at Kheam Hock Road
has been put up for en bloc sale at $1,430
per square foot or $59 million. The freehold
site which comprises of 19 apartments has a
gross plot ratio of 1.05 and a gross floor area
of 43,300 square feet. The site, which is
within walking distance from Botanic Gardens
MRT Station, can yield up to 25 strata terrace
units. The tender for Kheam Hock Gardens
will close on September 15.
(Source: Business Times)
Commercial
URAs Q2 growth in office rentals highest
in 3 years
Among all commercial property rentals, the
market for office rentals has been the most
optimistic. To date, this years office rents
have been up 5.2 per cent, which is higher
than last years 1.3 per cent full-year growth.
URA data showed that office rentals have
risen 2.8 per cent in Q2 this year, which is the
highest quarterly growth in three years.
Furthermore, market experts expect the
market for office rentals to continue
increasing. As office space supply remains
limited, market experts predict that Grade A
office rents at the Central Business District
will increase by another 7 to 15 per cent for
the rest of the year. Office rentals in the
Downtown Core and the Orchard Planning
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Area have also jumped by 3.2 per cent
quarter-on-quarter in Q2 this year to a
median price of $10.03 per square foot a
month. Yet, prices of office space have
remained unchanged in Q2. Desmond Sim
from CBRE said that the sale of office space
is not as affected by land supply as it is
affected by the level of investments. As such,
office prices may have remained unchanged
as transactions in Q2 were made at market
value. On the other hand, Chia Siew Chuin
believes that the Total Debt Servicing Ratio
could have affected the market for office
space and hence its price.
(Source: Business Times)
Telok Ayer shophouse asking for $20-22m
Located at No. 25 Boon Tat Street, near Telok
Ayer MRT station, a 999-year leasehold
shophouse is on sale for $20-22 million. The
shophouse, which is within the Chinatown-
Telok Ayer Conservation Area, is currently
undergoing renovation works and will be
completed in September this year. The 1,774
square feet land area has a gross floor area
of 4,555 square feet and an internal lift. Its
first and second storeys, along with its roof
terrace, have been approved for restaurant
use while its third storey has been zoned for
office use. The expression of interest for this
shophouse will cease on August 21.
(Source: Business Times)
J TC Industrial land prices up by 0.7 per
cent
According to JTC, prices of industrial land
space have increased by 0.7 per cent since
Q1 this year. However, prices rose 3.9 per
cent year-on-year in Q2 this year. This was
lower than the average growth
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of 18.8 per cent over the last four years. On
the other hand, rentals have slipped by 0.1
per cent in Q2, following a 0.4 per cent
increase in Q1. The year-on-year growth in
rentals is also less than the annual average
growth of 10.2 per cent in the last four years.
Alan Cheong from Savills Singapore believes
that JTCs price index is unable to reflect the
price differences between land spaces of
different lengths of tenures. As such Cheong
said that the index may not be the best
reflection of the market. Instead, she believes
that occupancy rates should be used to
determine the robustness of the market.
According to Chia Siew Chuin from Colliers,
multiple-user factories have seen a fall in
occupancy to 87.3 per cent in Q2, which is
the lowest occupancy rate in seven years.
According to Chia, this could be due to more
stringent rules on the permissible use of
factories. Also, JTCs new policy that restricts
the amount of space that could be sub-let
could also have impacted occupancy rates.
(Source: Business Times)
Developers less optimistic about property
market
In the next half of the year, developers are
less optimistic about the property market.
According to the NUS-Redas Real Estate
Sentiment Index Survey, there was a fall in
the Future Sentiment Index from 3.9 in Q1 to
3.4 in Q2. The Current Sentiment Index has
also fallen by 0.1 in Q2 from the previous
quarter. According to the survey, developers
may be wary of the rising cost of construction,
inflation and interest rates. Survey
respondents were also cautious of the excess
supply of new property launches.
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Thus, a majority of the developers have
expected unit prices to be moderately less,
especially in the prime and suburban
residential areas. Nonetheless, the survey
showed that developers were most optimistic
about the market for office space.
(Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of Jul 9 Jul 15
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
4 CARIBBEAN AT KEPPEL BAY 1,324 1,880,000 1,420 99
4 THE PEARL @ MOUNT FABER 1,356 1,520,000 1,121 99
5 THE INFINITI 1,561 1,500,000 961 FH
5 BUONA LODGE 1,647 1,580,000 959 FH
5 THE INFINITI 1,259 1,140,000 905 FH
8 CITYLIGHTS 893 1,333,000 1,492 99
9 HELIOS RESIDENCES 1,916 4,900,000 2,557 FH
9 NEWTON EDGE 915 1,450,000 1,585 FH
9 WATERFORD RESIDENCE 1,399 2,050,000 1,465 999
9 EURO-ASIA COURT 1,066 1,530,000 1,436 FH
10 ST MARTIN RESIDENCE 2,142 4,650,000 2,171 FH
10 VERDURE 1,421 2,650,000 1,865 FH
10 WATERFALL GARDENS 1,830 2,980,000 1,629 FH
10 MILL POINT 915 1,490,000 1,629 999
10 GLENTREES 1,991 2,757,000 1,384 999
10 QUINTERRA 1,787 2,400,000 1,343 99
11 THOMSON 800 1,421 1,738,000 1,223 FH
11 HILLCREST ARCADIA 915 980,000 1,071 99
12 THE INTERWEAVE 344 580,000 1,684 FH
12 TRELLIS TOWERS 549 850,000 1,548 FH
12 DOMUS 3,111 2,551,020 820 FH
14 LA BRISA 452 640,000 1,416 FH
14 WINDY HEIGHTS 2,476 2,280,000 921 FH
15 THE MAKENA 1,615 2,120,000 1,313 FH
15 DUNMAN VIEW 1,216 1,250,000 1,028 99
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
15 BUTTERWORTH VIEW 1,216 1,250,000 1,028 FH
15 THE AZZURO 1,098 1,120,000 1,020 FH
16 PARBURY HILL CONDOMINIUM 1,496 1,680,000 1,123 FH
16 TANAMERA CREST 1,195 1,050,000 879 99
17 FERRARIA PARK CONDOMINIUM 1,324 1,210,000 914 FH
17 CARISSA PARK CONDOMINIUM 1,238 1,040,000 840 FH
18 WATERVIEW 926 1,050,000 1,134 99
18 DOUBLE BAY RESIDENCES 1,313 1,480,000 1,127 99
18 TROPICAL SPRING 1,066 990,000 929 99
19 THE SCALA 829 1,240,000 1,496 99
19 REGENTVILLE 1,152 935,000 812 99
20 MARYMOUNT VIEW 883 1,100,000 1,246 FH
21 SYMPHONY HEIGHTS 926 1,100,000 1,188 FH
21 CLEMENTI PARK 2,045 2,200,000 1,076 FH
21 BUKIT REGENCY 1,421 1,520,000 1,070 FH
21 PANDAN VALLEY 3,122 3,150,000 1,009 FH
22 THE LAKEFRONT RESIDENCES 484 745,000 1,538 99
23 THE WARREN 1,227 1,040,000 848 99
23 PALM GARDENS 1,206 916,000 760 99
23 REGENT GROVE 1,163 868,888 747 99
25 PARC ROSEWOOD 431 580,000 1,347 99
25 CASABLANCA 893 800,000 895 99
26 MEADOWS @ PEIRCE 635 860,000 1,354 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.