Issue 39

Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.

CONTENTS
p2 p8
Singapore Property News This Week Tips on Working Well With Your Property Agent

FROM THE

EDITOR

Welcome to the 39th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise

p13 Resale Property Transactions

(February 1 February 7)

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SINGAPORE PROPERTY WEEKLY Issue 39

Singapore Property This Week

Residential
Freehold Tai Keng Court up for sale with asking price of $130m
Tai Keng Court consists of 56 strata apartments and 23 commercial units in the two blocks sitting on the103,798 sq ft site with a 1.4 gross plot ratio. It can potentially be amalgamated with a 4,988 sq ft state land to yield a site with a 152,301 sq ft GFA. This combined site can built up to five stories, yielding 121 950 sq ft residential units and 30 700 sq ft commercial units. The site is on the market with a $130 million price tag and $1.325 million for the development charge, equivalent to $903 psf ppr based on the GFA of the un-amalgamated site.
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Developers can redevelop the site into an integrated development that has proved to be popular in recent launches with a commercial component since the plot is zoned for commercial and residential use. The site is also well located, being near MRT stations such as Serangoon MRT and shopping malls like the NEX Mega Mall as well as schools such as Cedar Primary and Cedar Girls Secondary schools. The tender closes on March 21.
Sharp increase in private home sales in January

A total of 1,872 private homes, excluding ECs, were sold in January, almost three times the 632 units sold in December in 2011.
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SINGAPORE PROPERTY WEEKLY Issue 39 205 EC units were also sold in January, around five times the 38 sold in the previous month. The sharp increase in sales was a surprise since there is a tendency for the sale figures to fall in the Chinese New Year Month. Furthermore, the ABSD is expected to deter some buyers from purchasing private homes. However, the strong sales could be due to the demographics of the buyers, who are firsttimers or buyers investing in a second home, and therefore are not affected by the ABSD. Furthermore, the strong sales are driven by two mixed developments with locations Watertown and The Hillier. The market for homes in outside core region (OCR) is doing well, with 1,975 units released and 1,761 units sold in January, compared to the 764 released and 489 sold in December 2011. The market for homes located in the
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core central region (CCR), however, has no launches and only 17 units sold in the same month. The proportion of '$1,000 psf and under' units sold decreased from 36.9 per cent in November 2011 to 24.3 per cent in January 2012, while the proportion of more than $1,000 psf to $1,500 psf' units sold increased from 51.9 per cent in November 2011 to 71.4 per cent in January. This may be a result of developers increasing the prices as the demand for such units is strong. Three out of the four 99-year leasehold sites released for sale are EC sites The four 99-year leasehold sites which are expected to yield a total of 2,070 units, consists of three EC sites (one under the reserve list) and one site for strata landed

housing or condominium development.

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SINGAPORE PROPERTY WEEKLY Issue 39 Some analysts feel that the increase in EC supply will cause the prices to fall by around 5%, citing the predicted buyers shift to BTO flats as a result of the increase in BTO supply and potential increase in percentage allocated to second-timers, and the multitude of choices buyers now have that allow them to wait for other EC launches as reasons. Others feel that the increased supply may be to match the expected increase in demand as the number of eligible buyers increase with the raising of the income ceiling from from $10,000 to $12,000 in August 2011. $320 psf ppr. The 236,804 sq ft site located at Fernvale Lane with its 3.5 plot ratio and 828,816 sq ft GFA has a potential yield of 770 units. The site is expected to draw four to 10 bidders, with a top bid between $270-$310 psf ppr. The tenders for the sites at Punggol Central and Fernvale Lane will close on March 29 and April 3 respectively.

The first on the confirmed list is a 142,533 sq ft site located at Punggol Central/Edgefield Plains. Its 3.0 plot ratio allows for a maximum GFA of 427,600 sq ft that can potentially yield 395 units. The site is expected to attract four to eight bids with a top bid of between $280Back to Contents

The third EC site is on the reserve list. The 201,327 sq ft site located at Punggol Way/Punggol Walk has a GPR of 3.0 which allows it to yield potentially 560 units. However, with the abundant supply in the market, the site may not be triggered. Nonetheless, if triggered, the site could go for $157 million to $181 million, or $260-$300 psf ppr.
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SINGAPORE PROPERTY WEEKLY Issue 39 A non-EC site released on the confirmed list is a 251,036 sq ft site located at Elias Road/Pasir Ris Drive 3. The site zoned for strata landed housing or condominium/flats has a plot ratio of 1.4 and can potentially yield 345 units. With its good location (near a landed housing estate, Elias Mall and Pasir Ris Park), a top bid of $420-$470 psf ppr with eight to 12 bidders is predicted. The tender for the site will close on April 11. Ultra Mansion up for collective sale with an asking price of $170m development charge, the price will be $1,270 psf ppr. It is expected to be popular, since it is located in Novena Hub and not too large. The site could be potentially developed into a lifestyle studio apartments development or SoHo development since there are not many such developments in the region.

The tender for this site will close on March 22. Commercial Competitive bidding for Aljunied industrial site predicted
The 0.63-heactare industrial site at the junction of Sims Drive and Aljunied Road is expected to attract many developers despite being next to Aljunied MRT, a location which prevents strata sub-dividing of the development in the first 10 years after the

The 13-storey residential development sitting on a 45,512 sq ft site near Novena MRT station is asking for $170 million or $1,334 psf ppr based on the maximum GFA of 127,433 sq ft from its 2.8 gross plot ratio. If the additional 10% balcony space and $8 million

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SINGAPORE PROPERTY WEEKLY Issue 39

project is completed. Even after the 10 years, the condition for strata sub-dividing requires a minimum strata unit size of 1,615 sq ft gross floor area (GFA). Without these new conditions, the site could have fetched $240 and $290 psf ppr, compared to the $160 to $200 psf ppr it is predicted to fetch now. Nevertheless, the good location of the site (being near the MRT station and the Kallang Distripark) and its size may still attract 10 bidders. The 67,944 sq ft site has a gross plot ratio of 2.5 and is zoned 'Business 1'.

The tender for the site closes on April 10.

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SINGAPORE PROPERTY WEEKLY Issue 39

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SINGAPORE PROPERTY WEEKLY Issue 39

Tips on Working Well With Your Property Agent

By Mr. Propwise Your property agent is supposed to always act in the best interests of the buyer and/or seller but many of us know from personal experience or anecdotal evidence that that is not always the case. In order to protect consumers, the Council for Estate Agencies (CEA) has published a brochure titled Consumer Tips for Engaging a Real Estate Salesperson to help buyers and sellers get the best possible prices or rents when looking to enter into a property transaction. To clarify the use of terminology, the CEA defines Estate Agents as the estate agency businesses that broker property while they

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SINGAPORE PROPERTY WEEKLY Issue 39 refer to Salespersons as the individuals who perform the estate agency work, i.e. people we would typically refer to as property agents. For the rest of the article I will use the phrase property agents (as that is what most people would call them) instead of the CEAs salespersons but they mean the same thing. offers come in (i.e. they should not withhold any offers from you even if it is detrimental to their own interests, e.g. from co-broking agents) Help you through the process of a transaction and explain all documentation to you Follow your instructions and declare any conflicts of interests in the transaction

What is a Property Agent Responsible For?

Your property agent is responsible for the following: Give you professional and truthful advice without making any unsubstantiated claims (e.g. You will DEFINTELY make money GUARANTEED etc) Help you negotiate based on your instructions Immediately notify you whenever any

Additionally, for HDB transactions the agent is required to:

Brief you on your eligibility to buy, sell, lease and borrow Guide you through the resale checklist and check whether the renovations are approved Assist you in submission of forms and documentation

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SINGAPORE PROPERTY WEEKLY Issue 39 Your agent must also carry and display his Estate Agent card whenever he is carrying out estate agency work. What a Property Agent is Not Allowed to Do A property agent is not allowed to represent both the buyer and seller or landlord and tenant to prevent any conflicts of interest. This is called dual representation, and is prohibited even if both parties consent to pay the agent commission. Agents are also not allowed to make referrals to moneylenders, and to hold on to any transaction money (e.g. option fee, downpayment, stamp duties, deposits and sales proceeds). Note that valuation fees and commissions are not included in this category. Best Practices Property Agents When Dealing With

Agents often want you to sign an exclusive agreement with them, which means that you agree not to appoint any other agent to market your property for a set period of time. If you do this, even if you sell the property directly or through another agent, you will be liable to pay commission to the agent you have an exclusive agreement with so be careful before you sign this. As for commissions, contrary to what many agents claim, there is no set commission (the CEA does not prescribe this to allow competitive market forces to work for the consumers benefit). So you can negotiate the rate. Of course, how much you are willing to

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SINGAPORE PROPERTY WEEKLY Issue 39 pay depend on how much value you think the agent brings property agents do play a critical role in any transaction so they should be compensated fairly. good to inform them so their marketing efforts do not overlap, which can work to your disadvantage Read and understand any documents before you sign them. If you dont understand anything, clarify it with your agent or your conveyancing lawyer At the end of the day, you are responsible for making the final decision, not your agent If you have a dispute with your agent, you can lodge a complaint with his or her estate agency. If you are unable to get a satisfactory resolution, you can go for mediation/arbitration under the CEAs Dispute Resolution Scheme (as long as youve signed a prescribed Estate Agency Agreement). You can also lodge a

When paying commissions, make sure that you only pay it after the transaction is completed, and this should be paid to the Estate Agency and not directly to the property agent. You should also clarify when fixing the commission rate whether it includes or excludes GST. Tips on Working Well With Your Property Agent
Engage only licensed property agents you can check the Public Register at www.cea.gov.sg If you are appointing multiple agents, it is

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SINGAPORE PROPERTY WEEKLY Issue 39

complaint with the CEA. If you are familiar with the property transaction process, you can choose to represent yourself. There is no legal requirement for you to engage a property agent.

Following the steps above will minimize the probability of misunderstandings with your agent that might only come up at a later stage, and ultimately help you get the best possible deal.

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SINGAPORE PROPERTY WEEKLY Issue 39

Non-Landed Residential Resale Property Transactions for the Week of Feb 1 Feb 7
Postal District 3 4 5 5 5 5 8 9 10 10 10 11 11 11 12 13 14 14 14 14 15 15 Area Transacted Price Tenure (sqft) Price ($) ($ psf) 1,421 1,850,000 1,302 FH 1,206 1,790,000 1,485 99 1,292 1,435,000 1,111 99 1,184 1,260,000 1,064 956 936 950,000 1,014 99 1,345 1,228,000 913 FH 1,292 1,650,000 1,277 FH 3,068 4,330,000 1,411 FH 1,572 3,100,000 1,973 FH 1,722 2,980,000 1,730 FH 1,496 1,500,000 1,003 99 1,582 2,780,000 1,757 FH 1,399 1,650,000 1,179 FH 1,625 1,860,500 1,145 FH 861 920,000 1,068 99 1,033 650,000 629 FH 538 630,000 1,171 FH 1,216 1,280,000 1,052 FH 818 828,000 1,012 FH 2,476 1,980,000 800 FH 1,550 2,350,000 1,516 FH 2,336 3,250,000 1,391 99

Project Name REGENCY SUITES CARIBBEAN AT KEPPEL BAY VARSITY PARK CONDOMINIUM BOTANNIA DOVER PARKVIEW THE INFINITI MERA SPRINGS ELIZABETH TOWER GARDENVILLE PARC STEVENS JERVOIS JADE APARTMENTS PARK INFINIA AT WEE NAM ORCHID APARTMENT THOMSON 800 OLEANDER TOWERS SENNETT ESTATE D' CASITA THE WATERINA CANNE LODGE WINDY HEIGHTS AALTO PEBBLE BAY

Postal District 15 15 16 16 18 18 19 19 20 20 21 21 21 21 27 27

Project Name D'FOCUS APARTMENTS SUNSHINE REGENCY CASA MERAH CASAFINA THE TROPICA ELIAS GREEN FORTUNE PARK RIO VISTA THE GARDENS AT BISHAN THE GARDENS AT BISHAN THE NEXUS SUMMERHILL PARC PALAIS SOUTHAVEN I SELETARIS EUPHONY GARDENS

Area Transacted Price Tenure (sqft) Price ($) ($ psf) 1,765 1,508,000 854 FH 1,733 1,260,000 727 FH 1,249 1,118,000 895 99 1,206 1,050,000 871 99 1,615 1,313,800 814 99 1,550 908,000 586 99 1,270 1,050,000 827 FH 1,249 955,000 765 99 883 888,000 1,006 99 1,572 1,360,000 865 99 614 858,000 1,398 FH 1,206 1,188,000 985 FH 1,292 1,180,000 914 FH 926 828,000 894 99 1,528 1,160,000 759 FH 1,076 740,000 687 99

NOTE: This data only covers non-landed residential resale property transactions with caveats lodged with the Singapore Land Authority. Typically, caveats are lodged at least 2-3 weeks after a purchaser signs an OTP, hence the lagged nature of the data.

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