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Issue 310

Copyright 2011-2016 www.propwise.sg. All Rights Reserved.


CONTENTS FROM THE

p2 Should You Rent or Buy a Property in


EDITOR
Welcome to the 310th edition of the
Singapore Property Weekly.
Singapore? 7 Factors to Consider
Hope you like it!
p8 Resale Property Transactions
Mr. Propwise
(April 17 April 24)

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SINGAPORE PROPERTY WEEKLY Issue 310

Should You Rent or Buy a Property in Singapore?


7 Factors to Consider
By Sherlyn Chua (guest contributor)

A real estate purchase is a huge financial


commitment, and is probably the biggest
purchase many of us will make in our lifetime.
This is especially so in Singapore where
homes do not come cheap; its one of the
main reasons why most of us continue to live
with our parents until the day we get married,
and only then step foot into our matrimonial
homes. Houses developed and sold by the
Housing Development Board also come with
certain eligibility conditions. For example, an
unmarried person cannot buy a flat unless
he/she is at least 35 years old.

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SINGAPORE PROPERTY WEEKLY Issue 310

We all come from different walks of life. months worth of rent. Putting the down
Perhaps you may currently be in a romantic payment on a property will set you back a lot
relationship, looking for a place to settle down more, at a figure that ranges between 20 to
with your partner. Perhaps you may be 30 percent of the price of the property.
embracing singlehood, aspiring to move out
For example, a property valued at $1 million
from your parents home to stay on your own.
will cost you approximately $3,000 to rent
Or maybe, you are currently living out of
(hence, $6,000 as a deposit). The same
Singapore, but have recently been offered an
property will require $200,000 to $300,000 as
opportunity to live and work here.
a down payment if you intend to purchase it.
In any of these above scenarios, one
Factor #2 Ongoing Costs
question you may find yourself asking is,
Should I rent or buy? The following are While paying off your mortgage brings you
some factors that analyses the pros and cons closer to the full ownership of your home,
of both sides, to hopefully help you make a paying rent is quite the opposite. In fact,
more informed decision. paying rent is equivalent to throwing money
out the window there are no opportunities
Factor #1 Upfront/initial payment
for capital gain since ultimately, you do not
When it comes to initial payment, renting is, own the property. Paying rent is comparable
without a doubt, the cheaper option. The to paying off a car loan, as your capital gain is
upfront cost to rent a property is usually two tantamount to nothing.

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SINGAPORE PROPERTY WEEKLY Issue 310

building equity, or renting it out and earning


passive (rental) income, this potential gain is
something you will miss out on should you
choose to rent instead.

With an average inflation rate of 2.7%, your


property value would double in about 25
years (compounded). To put it simply, a $1
million property will probably be worth about
Management fees and property taxes will cost $2 million in 25 years (if inflation is similar to
between 0.2-0.3% of the property value each the historical long term average).
year. These are the fees you would have to Factor #4 Subsidies, Grants and Duties
bear as a homeowner or landlord, but good
news for tenants they are off the hook for For those of you looking to buy an HDB flat,
this! the good news is that you can take advantage
of the subsidies and grants put in place by the
Factor #3 Capital Gains Government, especially if you are a first-time
Speaking of capital gain, owning a property buyer. That said, however, you can only
allows you to build up equity possibly a purchase an HDB flat if you are a Singapore
significant amount too! Owned property is an citizen or a Singapore Permanent Resident,
asset. Whether you are staying in it and albeit with certain conditions or requirements.

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SINGAPORE PROPERTY WEEKLY Issue 310

According to www.hdb.gov.sg, the HDB Factor #5 Level of Commitment


Resale Price Index moved from 88 to 133
The duration of your stay will also be a
over the last 20 years. This translates to a
determining factor when deciding whether to
51% gain in terms of the value of the HDB flat
rent or buy. If you consider yourself a nomad
if you have bought it in 1997 (i.e. a $300,000
and want to stay in a different part of
flat purchase then would be able to fetch
Singapore every few years, then the rental
$453,000 today)
option gives you the freedom to move around.
For foreigners, purchasing a property means
But if you are looking to settle down and are
incurring additional stamp duties, which might
ready to commit to something for the long
make it less costly to rent a property instead.
term, then buying would be the more suitable
Furthermore, foreigners are not eligible for
option.
subsidised HDB flats and grants. The good
news is that according to www.ura.gov.sg, the Factor #6 Structural Changes
Singapore Property Price Index saw an For many of us, our home is our personal
increase from 30 to 140 in the last 30 years sanctuary. We like to design the interiors of
(i.e. a $1 million property purchase would our homes, down to the colour of each wall or
translate into a whopping $4.6 million!) the look of each marble floor tile.

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SINGAPORE PROPERTY WEEKLY Issue 310

Changes to the interior of our homes can be works are usually serviced by the landlord,
more important to us than we realise, and although with certain exceptions (e.g. air-con
having a limit put on it may have us yearning servicing).
for more. If you were to opt to rent a property,
the amount of structural and physical change
you can make to your home is limited,
compared to buying a property, where you
have complete freedom to alter the entire look
of your home, both inside and out.

Factor #7 Maintenance

Lets face it: some of us lead such busy lives


that we barely have the time to visit the
dentist on a regular basis, let alone maintain
At the end of the day, your decision boils
a home. This is where being a tenant would
down to these factors. Many of us chase after
be more suitable than being a home owner,
the Singapore dream of home ownership, a
as you have less obligations committed to
place where we can call home.
maintaining your home. Most major repair

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SINGAPORE PROPERTY WEEKLY Issue 310

We may also keep it around long enough for


us to retire in, or even pass it down to future
generations. But renting does come with its
advantages and may the right option for you.

Sherlyn is an Associate Director of Redbrick


Mortgage Advisory. Prior to joining Redbrick,
Sherlyn had experienced working in both
offshore and local financial institutions,
handling various products such as corporate
cards and secured loans. She previously
specialized in mortgage loans for commercial
and residential properties, but the dynamics
of real estate fascinated her and she was
keen to take on the role of helping customers
as an advisor instead. To get a free
consultation on your new loan or refinancing
needs, please head to
www.propwise.sg/mortgage/

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SINGAPORE PROPERTY WEEKLY Issue 310
Non-Landed Residential Resale Property Transactions for the Week of Apr 25 Apr 28

Postal Area Transacted Price Postal Area Transacted Price


Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
1 THE SAIL @ MARINA BAY 1,076 1,700,000 1,579 99 10 ROBIN RESIDENCES 1,830 4,347,000 2,376 FH
2 76 SHENTON 592 1,080,000 1,824 99 10 ROBIN RESIDENCES 1,593 3,728,000 2,340 FH
3 ASCENTIA SKY 947 1,350,000 1,425 99 10 ONE BALMORAL 969 2,258,000 2,331 FH
3 THE ANCHORAGE 1,830 2,300,000 1,257 FH 10 MADISON RESIDENCES 1,776 3,210,000 1,807 FH
3 LANDMARK TOWER 1,399 1,108,000 792 99 10 D'LEEDON 1,055 1,817,000 1,722 99
4 CARIBBEAN AT KEPPEL BAY 1,227 1,815,000 1,479 99 10 D' DALVEY 958 1,570,000 1,639 FH
4 CARIBBEAN AT KEPPEL BAY 1,206 1,750,000 1,452 99 10 LEEDON RESIDENCE 3,767 6,150,000 1,632 FH
5 ONE-NORTH RESIDENCES 592 845,000 1,427 99 10 GALLOP GABLES 2,648 4,220,000 1,594 FH
5 DOVER PARKVIEW 1,249 1,330,000 1,065 99 10 VALLEY PARK 1,109 1,630,000 1,470 999
5 THE INFINITI 1,249 1,210,000 969 FH 10 D'LEEDON 4,941 3,951,520 800 99
5 N.A. 1,389 1,080,000 778 FH 11 PARK INFINIA AT WEE NAM 560 1,010,000 1,804 FH
5 PARK WEST 1,894 1,335,000 705 99 11 PARK INFINIA AT WEE NAM 1,464 2,530,000 1,728 FH
7 CONCOURSE SKYLINE 1,098 1,615,000 1,471 99 11 MIRO 1,249 1,820,000 1,458 FH
9 OUE TWIN PEAKS 1,604 4,800,000 2,993 99 11 DUNEARN SUITES 1,324 1,900,000 1,435 FH
9 OUE TWIN PEAKS 549 1,616,500 2,945 99 12 BEACON HEIGHTS 1,109 1,000,000 902 999
9 OUE TWIN PEAKS 549 1,561,600 2,845 99 13 EURO-ASIA PARK 1,550 1,680,000 1,084 FH
9 ST THOMAS SUITES 2,013 3,750,000 1,863 FH 14 WATERBANK AT DAKOTA 484 720,000 1,486 99
9 THE PIER AT ROBERTSON 678 1,222,000 1,802 FH 14 D'WEAVE 420 607,000 1,446 FH
9 LUMA 904 1,620,000 1,792 FH 14 WATERBANK AT DAKOTA 883 1,255,000 1,422 99
9 VISIONCREST 947 1,680,000 1,774 FH 14 THE WATERINA 1,227 1,445,000 1,178 FH
10 GRAMERCY PARK 1,948 5,828,000 2,991 FH 14 LE REGAL 420 478,000 1,139 FH
10 TOMLINSON HEIGHTS 2,745 7,500,000 2,732 FH 14 THE CENTREN 1,012 1,125,000 1,112 FH
10 TOMLINSON HEIGHTS 2,745 7,500,000 2,732 FH 14 ASTORIA PARK 743 720,000 969 99
10 TOMLINSON HEIGHTS 2,745 7,500,000 2,732 FH 14 SIMSVILLE 980 940,000 960 99

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SINGAPORE PROPERTY WEEKLY Issue 310

Postal Area Transacted Price Postal Area Transacted Price


Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
15 FULCRUM 474 971,000 2,050 FH 19 SUN ROSIER 2,336 1,925,000 824 FH
15 THE MEYERISE 883 1,798,000 2,037 FH 19 FLORENCE REGENCY 1,625 905,000 557 103
15 FULCRUM 474 943,000 1,991 FH 20 THOMSON GRAND 1,356 1,638,000 1,208 99
15 THE MEYERISE 883 1,750,000 1,983 FH 20 FABER GARDEN CONDOMINIUM 1,572 1,850,000 1,177 FH
15 ONE EIGHTIES RESIDENCES 614 898,888 1,465 FH 21 GOODLUCK GARDEN 1,023 1,150,000 1,125 FH
15 TIERRA VUE 947 1,370,000 1,446 FH 21 THE HILLSIDE 1,313 1,420,000 1,081 FH
15 AMBER POINT 1,690 2,230,000 1,320 FH 21 CAVENDISH PARK 1,227 1,250,000 1,019 99
15 VERSILIA ON HAIG 1,335 1,650,000 1,236 FH 21 THE RAINTREE 1,270 1,280,000 1,008 99
15 VILLA MARTIA 1,281 1,500,000 1,171 FH 21 THE CASCADIA 2,207 1,750,000 793 FH
15 FORTUNE SPRING 1,033 1,200,000 1,161 FH 21 PINE GROVE 1,755 1,288,888 735 99
15 FORTUNE JADE 1,216 1,250,000 1,028 FH 22 THE LAKEFRONT RESIDENCES 2,099 2,100,000 1,000 99
15 MANDARIN GARDENS 1,528 1,270,000 831 99 23 HILLBROOKS 700 750,000 1,072 FH
15 NEPTUNE COURT 1,270 860,000 677 99 23 MERA WOODS 1,001 945,000 944 999
16 OPTIMA @ TANAH MERAH 1,195 1,300,000 1,088 99 23 HAZEL PARK CONDOMINIUM 1,335 1,230,000 922 999
16 VENEZIO 1,216 1,220,000 1,003 FH 23 HILLVIEW REGENCY 1,130 970,000 858 99
16 THE BAYSHORE 1,184 1,060,000 895 99 23 PHOENIX HEIGHTS 980 600,000 613 99
16 EAST MEADOWS 1,216 1,080,000 888 99 26 THE CALROSE 1,249 1,430,000 1,145 FH
16 STRATFORD COURT 1,152 915,000 794 99 27 THE MILTONIA RESIDENCES 517 588,000 1,138 99
16 STRATFORD COURT 1,410 1,110,000 787 99 28 MIMOSA PARK 1,894 1,560,000 823 FH
17 FERRARIA PARK CONDOMINIUM 646 622,000 963 FH
17 AZALEA PARK CONDOMINIUM 1,507 1,060,000 703 999
18 THE PALETTE 1,163 1,080,000 929 99 NOTE: This data only covers non-landed residential resale property
transactions with caveats lodged with the Singapore Land Authority.
18 TROPICAL SPRING 1,076 940,888 874 99
Typically, caveats are lodged at least 2-3 weeks after a purchaser
19 BARTLEY RESIDENCES 797 1,020,000 1,281 99
signs an OTP, hence the lagged nature of the data.
19 RIVERSAILS 506 605,000 1,196 99
19 THE FLORENTINE 947 935,000 987 947
19 FONTAINE PARRY 1,163 1,038,000 893 999

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