Issue 159

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CONTENTS
p2 The Great Singapore Property Sale: Buy
Now or Wait Till Later?
p7 Singapore Property News This Week
p11 Resale Property Transactions
(May 21 May 27 )
Welcome to the 159
th
edition of the
Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 159
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By Property Soul (Guest Contributor)
The annual GSS (Great Singapore Sale) may
have started only on May 25. But for property
new launches, the GSS started much earlier.
The sale is now on
With the steam of an overheated property
market dying down, the buzz has now shifted to
developers playing discount games to push new
projects or clear old stock. With so many 'great
deals', buyers are spoiled for choices.
1. MCL Land cut prices for Hallmark Residences
in Bukit Timah and sold 39 units in February and
March.
The Great Singapore Property Sale: Buy Now or Wait Till Later?
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2. CapitaLand's Sky Habitat in Bishan
managed to move over 100 units after
relaunched at 10 to 15 percent off its original
prices set two years ago.
3. Wheelock Properties put up 95 units of The
Panorama in Ang Mo Kio for balloting. With a
discount of 12 percent, they claimed to sell 80
to 85 units.
4. China developer Ximeng Land relaunched
the balance of 12 luxury villas on Pearl Island
in Sentosa Cove, offering an 8 percent
discount from a year ago.
It proves that 'early birds' enjoy no advantage.
We don't see developers giving rebates back
to early buyers who have paid at premium
prices.
Let's face it: It's a buyers' market now!
I am particularly amazed by the 180 degree
change of attitude at The Panorama. I visited
the sales gallery three months ago. A
developers representative was patrolling
there to ensure no photo-taking, no sales
brochure before booking a unit ...
Back in early January, a newspaper article
mentioned that "hundreds of people visited
the showflat" and "60 units out of the 120
units released were booked on the first day".
But the caveats show that only 56 units were
transacted by end of April. So what happened
to the units for the next 140 days after selling
like hot cakes on the first day?
Anyway, the project won't be completed until
2019. Who knows what the property market
will be like five years from now?
Developers are now trying to transfer the risk
of an unknown market to the buyers.
Nonetheless, many buyers,
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especially first-time buyers and HDB
upgraders, are excited by the new round of
discounts and can't wait to rush into the
market.
More irresistible bargains on the way?
An HSR report revealed that 50 residential
projects sold less than half of total units,
including Hillion Residences in Bukit Panjang,
Hillview Peak in Bukit Batok, Vue 8
Residence in Pasir Ris, The Glades in Tanah
Merah, Treasure in Balmoral, Victory Ville,
Devonshire 8, One Balmoral and 8 Raja.
Eight of these new projects sold less than 10
percent while two did not manage to sell any
unit since their launch last year.
A Straits Times article on June 7 highlights
the fact that 24 projects may be liable to
$55.1 million in extension charges.
Developers with foreign shareholders have to
pay 8 to 24 percent of the land price to the
government if they fail to sell their units two
years after TOP. Projects that have already
missed the deadline include Emerald Hill and
The Marq.
All these facts are only the tip of an iceberg:
1. Many luxury homes in prime districts like
Ardmore Park and Grange Road have been
completed but not yet launched.
2. According to URA, as of 1st quarter 2014,
there are a total of 6,733 private residential
units launched but unsold. On top of that, an
additional 80,261 private residential units are
in the supply pipeline from the rest of this
year to beyond 2018.
3. While developers are clearing their existing
stock, every month there are new projects
obtaining their TOP and new sites released
by the government to build more private
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housing.
4. New project is not the only choice for
buyers. There is strong competition from
countless resale units whose owners are
more flexible to slash prices if they are
desperate to sell.
5. Local developers are competing with their
counterparts from Malaysia, Thailand,
Indonesia, Philippines, Australia, Japan, UK,
US, etc. targeting the same buyers to move
their current and future projects.
How can developers find so many buyers for
their new units if they are only giving 15
percent discount? This is just the beginning of
the big sale!
Where are the foreign shoppers?
In the midst of this 'uniquely Singapore'
Property GSS, our most wanted foreign
shoppers are nowhere to be seen.
Can participating developers seriously look
into promotions targeting tourists from top-
spending destinations? How about partnering
with Singapore Tourism Board for organized
shopping tours with free sightseeing, flight
and accommodation bundled with booking a
luxury home, with the 15 percent foreigner
Additional Buyer Stamp Duty absorbed by the
developers?
After all, individual developers have already
stepped up their marketing efforts in overseas
countries. For instance, S P Setia is now
marketing Eco Sanctuary at Chestnut Avenue
to buyers in Hong Kong who are suffering
from Double Stamp Duty introduced by the
local government.
Lesson learned: Sales of any product not
meeting expectation at home can often find a
new market in other countries.
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The sale that worth waiting for
This year GSS is in its 20th year. Experienced
shoppers like you and me have long become
savvy buyers.
When the sale just starts, I am not in a hurry
to buy. It is different from a private sale open
for privileged customers for one day only.
Every sale starts with 10 percent discount for
end of season sale; changes to 20 percent
discount storewide; follows by further
reduction of 50 percent; and ends with final
reduction of 70 percent or more. Sometimes
there is even a warehouse sale or moving out
sale with massive mark-down of prices for
stock clearance.
By then, I may not be able to find my size, or
the color or style that I want. But it doesn't
matter. I have a limited budget and I will be
very happy spotting a few 'gems' from the
leftovers!
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the newly released No B.S. Guide to
Property Investment.
SINGAPORE PROPERTY WEEKLY Issue 159
Singapore Property This Week
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Residential
HDB resale prices lowest in two years
In May, HDB resale prices have fallen for four
consecutive months, hitting a new low in two
years since April 2012. According to an HDB
flash report by SRX, resale prices of HDB
flats fell by 1.2 per cent in May as compared
to the previous month. HDB executive flats
saw the sharpest decline in its resale prices,
with a 2.8 per cent fall. Ong Kah Seng from
RST Research believes that demand for
executive flats have fallen due to lower
mortgage limits, as the mortgage servicing
ratio is currently capped at 30 per cent of
gross monthly salary. Besides the low resale
prices, transaction volumes have also been
low. While there was a 4.4 per cent month-on-
month increase in transaction volumes in
April, transaction volumes also fell by 11.1 per
cent from April to May. Christine Li,
OrangeTee research head believes that
potential resale flat buyers could have turned
to Sale of Balance Flats (SBF) as they are
cheaper and ready for occupation.
(Source: Business Times)
Fewer HDB flats sold immediately after
MinimumOccupation Period
HDB said that fewer HDB flat owners are
selling their flats immediately after meeting
the Minimum Occupation Period (MOP).
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Last year, only 470 HDB flats were sold within
a year of their MOP. This was less than half of
the 1,006 units sold in 2012. In 2010 and
2011, 1,338 and 1,231 flats were sold upon
meeting their MOP respectively. Under the
MOP scheme, flat owners cannot buy or
invest in a private residential property during
their MOP. Not only so, the flat has to be
occupied for five years before they can sublet
the unit, or sell it. According to Eugene Lim
from ERA Realty Network, the slowdown in
flat sales shows that the market is moderating
and that flat owners may be waiting for the
next upturn to sell their flats.
(Source: Channel NewsAsia)
Analyst says developers may adjust price
to move sales in the near term
According to OrangeTee Research,
developers may be adjusting prices of some
of their projects to encourage sales and to
avoid paying an extension fees. Under the
governments Qualifying Certificate (QC)
rules, developers have to pay additional
charges to extend their sales period after two
years of the projects temporary occupation
permit (TOP). 24 condo projects are still not
fully sold, two years after receiving their TOP,
between 2010 and 2012. Thus, developers
with unsold units may have to pay another
$80.7 million to extend sales for another year.
This is in addition to the $55.1 million that
developers have previously collectively paid
to extend the sales period of their projects
from 2012. As such, analysts predict that
developers may adjust prices to clear their
stock by the deadline, in order to avoid hefty
extension charges.
(Source: Business Times)
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Online survey by MND: Singaporeans in
favour of more three-generation flats
According to an online survey by the Ministry
of National Development, Singaporeans
support the development of more three-
generation flats, and are supportive of giving
priority to those who apply for a HDB flat that
is near to their parents. The survey which has
1,927 participants since May 25 is part of the
governments new housing conversation with
Singaporeans to understand housing
preferences and to find out how the
government can encourage families to live
together or close by. Also, the survey
revealed that Singaporeans want higher
housing grants for those who live with their
parents, or live close to them. 72 per cent of
the 949 courting Singaporeans who
responded to the survey said that they want
to live close to their parents. Also, 68 per cent
of the 41 seniors who currently live apart or
plan to live apart from their children reflected
that they want to live in the same town, or
closer, to their children in future. However,
only 31 per cent of the 880 married couples
surveyed live in the same town with their
parents. Dr Lee Bee Wah, chair of the
Government Parliamentary Committee for
National Development, said that this could
mean that there are insufficient BTO flats in
the same estates where parents are living.
(Source: Business Times)
Commercial
Overseas developers increasing
marketing efforts in Singapore
Due to continued interest in overseas
projects, more overseas developers are
increasing their marketing efforts in
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Singapore. Overseas developers, Crown
Group from Australia and UMLand from
Malaysia have opened a sales office at
Suntec Tower Two and a property gallery in
Anson House at Tanjong Pagar respectively.
Also, Galliard Homes from London is
expected to open a sales office in Singapore
soon. HSR International Realtors analyst,
Wong Shanting said that Singaporeans may
be encouraged to look elsewhere due to high
property prices and due to the implementation
of cooling measures such as the Total Debt
Servicing Ratio, thus encouraging overseas
developers to step up marketing efforts in
Singapore.
(Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of May 21 May 27
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
3 ALEXIS 603 1,105,000 1,833 FH
3 ALESSANDREA 1,098 1,480,000 1,348 FH
3 THE ANCHORAGE 1,830 2,350,000 1,284 FH
3 TANGLIN VIEW 2,120 2,500,000 1,179 99
4 REFLECTIONS AT KEPPEL BAY 2,626 4,398,000 1,675 99
5 THE PEAK@BALMEG 1,507 2,168,000 1,439 FH
5 THE PARC CONDOMINIUM 980 1,270,000 1,297 FH
8 CITY SQUARE RESIDENCES 1,195 1,700,000 1,423 FH
9 HELIOS RESIDENCES 1,281 3,500,000 2,732 FH
9 ILLUMINAIRE ON DEVONSHIRE 463 1,200,000 2,593 FH
9 PATERSON LODGE 850 1,680,000 1,976 FH
9 VILLE ROYALE 1,292 1,850,000 1,432 FH
10 GARDENVILLE 1,808 3,435,000 1,900 FH
10 BELMOND GREEN 980 1,780,000 1,817 FH
10 BALMORAL HILLS 1,389 2,000,000 1,440 FH
10 THE SERENADE @ HOLLAND 1,787 2,200,000 1,231 99
11 L'VIV 1,001 2,180,000 2,178 FH
11 PAVILION 11 958 1,530,000 1,597 FH
11 AMARYLLIS VILLE 1,259 1,870,000 1,485 99
12 THE CALLISTA 1,141 1,190,000 1,043 999
12 MAR THOMA MANSIONS 1,528 1,200,000 785 999
13 THE SCENIC @ BRADDELL 1,539 1,650,000 1,072 FH
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
14 THE SUNNY SPRING 990 963,000 972 FH
15 PALM OASIS 743 950,000 1,279 FH
15 DUNMAN VIEW 1,335 1,350,000 1,011 99
15 MERLOT VILLE 1,744 1,665,000 955 FH
15 LAGUNA PARK 1,615 1,420,000 879 99
15 EAST MEWS 2,131 1,820,000 854 FH
15 NEPTUNE COURT 1,270 960,000 756 99
16 BAYWATER 1,292 1,380,000 1,068 99
17 CARISSA PARK CONDOMINIUM 1,324 1,228,000 928 FH
18 NV RESIDENCES 764 890,000 1,165 99
18 LIVIA 1,270 1,238,888 975 99
18 THE TROPICA 1,518 1,360,000 896 99
18 MELVILLE PARK 1,475 1,116,000 757 99
19 THE CHUAN 1,281 1,820,000 1,421 999
19 THE CHUAN 1,367 1,800,000 1,317 999
19 REGENTVILLE 980 780,000 796 99
20 BISHAN 8 1,173 1,360,000 1,159 99
20 PEIRCE VIEW 1,270 1,315,000 1,035 FH
20 BRADDELL VIEW 1,798 1,380,000 768 99
21 CAVENDISH PARK 1,313 1,570,000 1,196 99
21 ASTOR GREEN 1,378 1,420,000 1,031 99
21 HILLVIEW GREEN 1,302 1,330,000 1,021 999
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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.
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
21 THE RAINTREE 1,582 1,570,000 992 99
21 PANDAN VALLEY 4,026 3,175,000 789 FH
22 PARC OASIS 1,227 1,170,000 953 99
22 PARC OASIS 1,227 1,100,000 896 99
23 THE JADE 1,475 1,600,000 1,085 99
23 GUILIN VIEW 1,528 1,385,000 906 99
23 REGENT HEIGHTS 1,023 870,000 851 99
23 MAYSPRINGS 1,292 939,988 728 99
27 YISHUN EMERALD 1,152 900,000 781 99
27 ORCHID PARK CONDOMINIUM 1,152 835,000 725 99
27 EUPHONY GARDENS 1,152 780,000 677 99