Singapore Property Weekly Issue 11

8/6/2019 Singapore Property Weekly Issue 11

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Issue 11 | www.Propwise.sg


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SINGAPORE PROPERTY WEEKLY Issue 11

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

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Contents

Singapore Property This Week Pg 2How to Invest in Property for YourRetirement Pg 5Non-Landed Residential ResaleProperty Transactions for the Week ofJuly 16-22 Pg 11Singapore Property Classifieds #1 Pg 14

From the Editor

Welcome to the eleventh edition of the SingaporeProperty Weekly. Weve added PropertyClassified ads in this edition, to help you find gooddeals in the market. The coming months couldpresent a great opportunity to invest in property ifthere is a significant correction!

Mr. Propwise
http://www.propwise.sg/mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:[email protected]://www.propwise.sg/


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Singapore Property This WeekResidential News

Sales update for Seastrand, Woodhaven,and Jool SuitesIn Pasir Ris, 232 out of the 269 released unitsat the 475-unit Seastrand condo project havebeen sold at an average of $895 psf. AtWoodlands, 202 out of the 242 released units

in the 337-unit Woodhaven condo project havebeen sold at an average of $957 psf. Over atSing Joo Walk, around 18 units have beensold in the 52-unit Jool Suites project at anaverage price of $1,500 psf.

About one-quarter of 748-unit euHabitatsold at the previewAt Jalan Eunos, 181 units were sold in the 99-year residential 748-unit euHabitat at apreview of the project. Located on a 444,000sq ft site, the project consists of suites, condo

apartments, SOHO units, and four-storeytownhouses with a roof terrace and basement.A 538 sq ft one-bedroom suite starts from$541,000, 517 sq ft one-bedroom SOHO-styled apartment starts from $593,000, 1,012sq ft two-bedroom condo apartment begins at$918,000, and 3,380 sq ft townhouses beginsat $2.94 million. The developers will bring forththe official launch of the project to Aug 19 dueto the positive responses from the preview.

6,488 sq ft redevelopment site at GeylangRoad up for saleA 99-year-leasehold 6,488 sq ft redevelopmentsite at 693 Geylang Road (GeylangConservation area) is up for sale via a tender.

The site, which has a gross plot ratio of 2.8,has a two-storey building that was a formerassociation clubhouse sitting on it.
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Given future developments in the area, suchas the implementation of Circle Line, ColliersInternational suggested that a successful buyer

could develop the plot into a seven-storeyresidential project with 30 units of about 600 sqft each. The tender for the site ends onSeptember 6.

URA will implement new home marketingrules for developers after receivingfeedbackResponding to respondents feedback from apublic consultation that aims to help potentialhome buyers to make better decisions, URAwill implement new rules that will change theway developers advertise and shareinformation about residential projects. One ofthe feedback from respondents is asking URAto list the developers that breached provisionunder the HDBLA or HDR on the URA website.URA is finalizing the details for some of the

proposals and will implement the changes bythe end of the year.

Grand Tower sold at $88.5 million in acollective saleLocated at Moulmein Rise, 21,742 sq ftfreehold Grand Tower was sold to 27MR PteLtd in a collective sale at $88.5 million(approximately $1,376 psf of potential GFA)with no DC payable. The 33-year-old site canbe redeveloped into a high-rise apartmentdevelopment that consists of over 70apartments of 800 sq ft on average, and amaximum GFA of around 64,310 sq ft. Thebreakeven cost for the new development isaround $1,900 psf to $2,000 psf. Currentowners of the 28 apartments of around 1,873sq ft will each receive around $3.16 million($1,688 psf) on strata area from the sale.


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Copyright 2011 www.Propwise.sg. All Rights Reserved. Page | 4

Commercial

Wheelocks net profit decreased 55.7% in

Q2Wheelock Properties (Singapore) reported a55.7% year-on-year decrease in net profit to$37 million, and a 61.8% decline in revenue to$67.6 million in Q2. Wheelocks H1 net profitimproved by 33.3% to $89.4 million, whereasrevenue decreased 40% to $170.4 million.

Wheelock attributed the decrease in revenue inQ2 and H1 to the completion of Ardmore Twoand Orchard View, and lower revenuegenerated by Scotts Square due to ongoingconstruction works. However, WheelockProperties, which has began developing ashowflat for its Ardmore Three Project, had an

increase in revenue and profit frominvestments in Q2 and H1.

Singapore developers will be building moreoffice space in suburban area as

companies shift operations away fromdowntown to cut costsSuburban office space supply is estimated toincrease to 920,000 sq ft in 2014, five timesmore than the 190,000 sq ft that is going to befinished this year, as more companies such asCredit Suisse plans to shift its operation away

from downtown to reduce costs. By shifting itsoperation to One@Changi City, Credit Suissewill pay a rent of about $4 psf, which is aboutone-third the amount paid for its currentlocation at downtown. Government datashowed that rents in the CBD are 2.3 timesmore than those in the suburban areas.


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How to Invest in Property for Your Retirement

By Ku Swee Yong

Can the average Singaporean enjoy acomfortable retirement by investing inproperty? We recently caught up with Ku SweeYong, CEO and Director of InternationalProperty Advisor Pte Ltd, a real estate familyoffice, to find out his views on the Singapore

property market and how to do just that. Hehas just published his first book, Real EstateRiches Understanding Singapores propertymarket in a volatile economy.

What is your outlook on the Singaporeproperty market for the next 12 months?

I am mildly positive, especially for the mid-tierresidential and luxury residential segments. Iam seeing more activities and enquiries in thesegment of $2 to $5 million with prices in the$1,500 to $2,500 psf range.




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Two macro factors have also caused me toturn positive:

1. The unemployment rate remains very low,

currently at 1.9%. As Foreign DirectInvestment continues to be brought in byEDB, the MNCs will need to hire. MoreEmployment Pass holders will be needed,and this will result in more demand forhousing, albeit more renters than buyers.

2. The Investment PR scheme remains veryattractive to foreigners wishing to seek thecomfort and security of life in Singapore forthemselves and their children. This willfurther add to housing demand for buyingproperty.

For someone who has cash to invest, sayfrom getting a lump sum of CPF moneyupon hitting the retirement age, whatshould they invest in if they're planning fora comfortable retirement? Are property,

stocks or fixed deposits the bestinvestment?My general preference is for real estatebecause of the monthly rental returns. For a

retiree with bills and expenses they have topay monthly, it doesnt make as much sense toinvest in stocks, fixed deposits etc that do nothave regular payouts. Investing in REITs is acompromise as most listed REITs pay outquarterly dividends.

For someone close to retirement, shouldyou invest in a property for capital gain orrental yield?The focus has to be on a rental income stream,and also considering the handing over of theasset to the next generation and your lovedones. If we focused on yields alone, then 99-

year properties may be preferred. Yields for99-year leasehold properties are usually higher(3.5% to 5.0%) than freehold properties (2.5%to 3.8%).


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If you were considering wealth succession, thepreference would be for freehold properties.The compromise is to find an older freeholdproperty, say 15 years old, where you might be

able to get a yield of 3.5% or higher, but in thiscase, the land value does not depreciate.Chapter 18 of my book deals with how oneshould consider 99-year leasehold versusfreehold property.

Which areas and types of properties do you

think are more promising for propertyinvestment, and which areas should weavoid?This depends on what investors are familiarwith. Most investors would go for residentialbecause it is a sector which is straightforwardto understand, has a deep market, and

sufficient data for decision making.

In terms of geographical areas, I am positiveon the Holland area and negative on Bukit

Timah. I would also avoid the North-Southcorridor, including Upper Thomson Road,Marymount Rd etc. This is because of twomajor infrastructure projects: the Thomson

MRT line and the North-South Expressway.These projects are expected to complete in2019-2020 if there are no delays. But for thenext eight years, we can expect congestionand this would be negative for investorslooking for tenants for their apartments.

Would you recommend buying cheaperproperties overseas (e.g. in Johor) forinvestment? Why or why not?This is inconvenient unless you frequent thatcity (say Perth or Johor) and you are veryfamiliar with how things work in that city(leases, tenancy agreements, local agents).

Furthermore there is the currency to worryabout, and also the differences in law,government policies etc.

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But if you were a seasoned real estate investorand feel overexposed to Singapore real estate,then go ahead and explore outside. Retiringwith an apartment that is rented out in Sydney,

London or even Japan could mean that youalso enjoy travelling to tend to your propertystaxes, tenant matters, bank mortgages etc.

What advice do you have for the averageSingaporean who would like to invest inproperty for a comfortable retirement?

For the average retiring Singaporean whoalready has an HDB flat that is fully paid up,some spare cash and his CPF moniesreleased in full, he can look for properties thatare better valued and well located. Forexample, instead of Katong in District 15, hecan consider Upper East Coast in district 16.

Note that the current rules prohibit HDBowners from purchasing private property if theyhave not completed the Minimum OccupationPeriod.

Get an apartment that is 5 to 10 years afterTOP and one that comes with a good, securetenant. Budget for a property that is $1 to 1.5million, which means you need cash plus CPF

of about $300,000 to $600,000, depending onyour ability to take an 80% LTV mortgage.Check that the tenant and the tenancy contractare good and valid before handing over yourcheque.

What is your book Real Estate Riches

about and why did you decide to write it?Many real estate investors plunge into themarket with a little bit of knowledge, calling afew agents they found on the internet,speaking with friends and reading articles hereand there. But we know that a little knowledgeis a dangerous thing, especially when we are

not aware of what we do not know. Manyinvestors live with decisions they regret, simplybecause they thought their research andunderstanding of the market was sufficient.

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There is so much to know and we have to becareful where we tread.

What this book is not: This book will not

promise to make you a millionaire, nor give youthe secrets to owning many properties on asmall budget, nor teach you how to make aquick profit by flipping. It will not give youmotherhood statements such as do notoverstretch your finances, do your duediligence etc. It is also not a discussion about

the property market from 30,000 feet in the airand making conclusions based on URAsquarterly price indices.

What this book is: The business model ofInternational Property Advisor Pte Ltd is basedon the family office concept, with a focus on

real estate assets. We represent the needs ofhigh net worth families and therefore we workclosely with private banks to take care of ourclients real estate portfolio.

We look at the details of transactions in theprivate property market. We try to understandthe reasons behind why a property tradedabove or below average prices. We try to

analyze trends in demographics, lifestyle,finances, the URAs Masterplan, infrastructuredevelopments etc.

This book captures our experience andknowledge from working with clients, bankers,fund managers and lawyers. It contains the

answers we have to research to respond totheir queries.

This book tells it as it is.

I have come across many investors whoreceived bad misleading advice from agents

and from reading articles that were neitherresearched nor substantiated. As such, I amconstantly approached to help troubleshootthe issues investors face,

SINGAPORE PROPERTY WEEKLY Iss e 10


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to help extricate them from investments theyregret.

I thus decided to write and educate more, and

to highlight certain erroneous publicperceptions. For example, investors have beenmisled about the en bloc potential of severalcondo projects. Upon helping them to check,we found from the URA Masterplan that thezoning for these projects were for a lowerdensity (lower plot ratio).

I hope readers can avoid painful decisions byusing the data and information I provide in mybook.

By Ku Swee Yong, founder of real estateagencyInternational Property Advisor, which

provides services to high net worth individuals.Real Estate Riches is available at majorbookstores including Times, Kinokuniya,Popular, Page One, NUS, and the airportbookshops (Dufry and Relay).

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Non-Landed Residential Resale Property Transactions for the Week of July 16-22

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price ($

psf)

1 THE SAIL @ MARINA BAY 893 1,786,000 1,999

2 ICON 657 1,168,000 1,779

3 RIVER PLACE 721 1,020,000 1,414

3 RIVER PLACE 797 1,110,000 1,394

3 THE ANCHORAGE 1,765 2,000,000 1,133

3 EMERALD PARK 1,206 1,300,000 1,078

4 CARIBBEAN AT KEPPEL BAY 1,281 1,980,000 1,546

4 TERESA VILLE 1,959 2,080,000 1,062

5 THE PARC CONDOMINIUM 1,302 1,570,000 1,205

5 THE STELLAR 1,421 1,680,000 1,182

5 DOVER PARKVIEW 1,249 1,245,000 997

5 WEST BAY CONDOMINIUM 893 760,000 8518 CITY SQUARE RESIDENCES 570 969,000 1,699

8 R66 APARTMENTS 452 700,000 1,548

8 KERRISDALE 1,270 1,300,000 1,023

9 VISIONCREST 947 1,910,000 2,016

9 THE COSMOPOLITAN 1,399 2,700,000 1,930

9 TRIBECA 1,033 1,750,000 1,694

9 TIARA 1,281 2,050,000 1,600

9 LA CRYSTAL 1,076 1,588,000 1,475

9 UE SQUARE 1,141 1,540,000 1,350

10 GRANGE RESIDENCES 2,583 7,200,000 2,787

10 THE GRANGE 4,424 8,700,000 1,967

10 THREE THREE ROBIN 1,636 3,100,000 1,895

10 MILL POINT 527 938,000 1,778

Postal


Area

(sqft)

Transacted

Price ($)

Price ($

psf)

10 VENTUNO BALMORAL 1,313 2,300,000 1,751

10 WATERFALL GARDENS 1,830 3,000,000 1,639

10 WING ON LIFE GARDEN 3,240 5,280,000 1,630

10 GALLOP GABLES 2,669 4,270,400 1,600

10 HOLT RESIDENCES 2,056 2,900,000 1,411

10 THE SIXTH AVENUE RESIDENCES 1,819 2,510,220 1,380

10 SIXTH AVENUE VILLE 1,238 1,700,000 1,373

10 GLENTREES 1,442 1,950,000 1,352

10 CASA JERVOIS 1,636 2,100,000 1,284

10 DUCHESS CREST 1,389 1,700,000 1,224

11 TEN @ SUFFOLK 1,184 1,590,000 1,343

12 TRELLIS TOWERS 549 800,000 1,45712 THE CITRINE 1,313 1,368,000 1,042

12 KEMAMAN VIEW 1,324 1,195,000 903

12 OLEANDER TOWERS 1,227 1,055,000 860

12 THE CALLISTA 1,302 1,100,000 845

12 AVA TOWERS 1,281 1,050,000 820

12 DE PARADISO 2,120 1,700,000 802

13 THE ACACIAS 1,270 1,220,000 961

14 LE REVE 936 985,000 1,052

14 VISTAYA VIEW 1,281 1,250,000 976

14 THE WATERINA 1,130 1,100,000 973

14 GROSVENOR VIEW 1,249 1,200,000 961

14 STARVILLE 538 500,000 929

14 THE SUNNY SPRING 1,066 891,000 836

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Postal


Area

(sqft)

Transacted

Price ($)

Price ($

psf)

14 SIMSVILLE 1,249 1,010,000 809

14 GUILIN COURT 1,173 760,000 648

14 EVER LODGE 1,776 950,000 535

15 ONE AMBER 570 935,000 1,639

15 THE MAKENA 1,744 2,460,000 1,411

15 PEBBLE BAY 1,894 2,560,000 1,351

15 SUITES @ AMBER 840 1,120,000 1,334

15 PARKSHORE 1,636 2,150,000 1,314

15 COTE D'AZUR 1,152 1,500,000 1,302

15 COSTA RHU 1,335 1,700,000 1,274

15 THE MAKENA 1,292 1,558,000 1,206

15 SUNSHINE LOFT 710 850,000 1,196

15 EMERALD EAST 1,109 1,220,000 1,100

15 SANCTUARY GREEN 1,572 1,650,000 1,05015 PARK EAST 2,024 2,100,000 1,038

15 GOLD LEAF MANSIONS 1,496 1,220,000 815

15 SHEBA LODGE 1,259 955,000 758

15 SHEBA LODGE 1,270 925,000 728

15 LE CONNEY PARK 1,216 839,000 690

16 COSTA DEL SOL 1,475 1,950,000 1,322

16 BAYSHORE PARK 936 920,000 982

16 THE BAYSHORE 947 865,000 913

16 THE CLEARWATER 1,259 968,000 769

16 EASTWOOD LODGE 829 572,000 690

17 ESTELLA GARDENS 657 660,000 1,005

17 JLB RESIDENCES 990 940,000 949

17 AVILA GARDENS 893 720,000 806

18 MODENA 1,561 1,310,000 839

18 EASTPOINT GREEN 958 800,000 835

Postal


Area

(sqft)

Transacted

Price ($)

Price ($

psf)

19 KOVAN MELODY 904 975,000 1,078

19 THE QUARTZ 1,109 1,100,000 992

19 KOVAN ESQUIRE 1,087 1,008,888 928

19 COMPASS HEIGHTS 1,055 935,000 886

19 KENSINGTON PARK CONDOMINIUM 1,668 1,470,000 881

19 CHUAN PARK 1,173 1,005,000 857

19 EVANIA 1,378 1,168,000 848

19 COMPASS HEIGHTS 1,292 1,085,000 840

19 COMPASS HEIGHTS 1,324 1,010,000 763

20 SEASONS VIEW 1,152 1,070,000 929

21 1 KING ALBERT PARK 1,421 1,850,000 1,302

21 MAPLEWOODS 1,410 1,762,500 1,250

21 GARDENVISTA 1,130 1,330,000 1,177

21 1 KING ALBERT PARK 1,195 1,360,000 1,13821 MEADOWLODGE 1,216 1,346,000 1,107

21 THE RAINTREE 1,292 1,288,000 997

21 CLEMENTI PARK 1,658 1,650,000 995

21 PARC PALAIS 1,238 1,220,000 986

21 PARC PALAIS 969 945,000 975

21 HUME PARK II 1,119 960,000 858

21 HILLVIEW GREEN 1,722 1,430,000 830

21 HIGH OAK CONDOMINIUM 1,206 983,000 815

21 HIGH OAK CONDOMINIUM 1,399 1,080,000 772

22 PARC VISTA 1,055 860,000 815

22 PARC OASIS 1,227 990,000 807

23 HILLINGTON GREEN 990 993,000 1,003

23 GLENDALE PARK 1,507 1,470,000 975

23 HILLINGTON GREEN 1,528 1,410,000 922

23 GUILIN VIEW 861 770,000 894

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NOTE: This data only covers non-landed residential resaleproperty transactions with caveats lodged with the SingaporeLand Authority. Typically, caveats are lodged at least 2-3weeks after a purchaser signs an OTP, hence the laggednature of the data.

Postal


Area

(sqft)

Transacted

Price ($)

Price ($

psf)

23 REGENT HEIGHTS 1,023 805,000 787

23 GUILIN VIEW 1,259 970,000 770

23 PARKVIEW APARTMENTS 1,130 850,000 752

23 MAYSPRINGS 1,292 960,000 743

23 HILLTOP GROVE 1,249 910,000 729

23 REGENT GROVE 1,475 1,030,000 698

23 REGENT HEIGHTS 2,185 1,500,000 686

25 CASABLANCA 1,184 900,000 760

26 BULLION PARK 807 770,000 954

27 YISHUN SAPPHIRE 1,173 828,000 706

27 ORCHID PARK CONDOMINIUM 980 690,000 704

27 EUPHONY GARDENS 1,216 840,000 691

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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 $2950neg. Spectacular view of Marina Bay Sands,vacant, $1800/quarter. Call S. Ganesh @

91732881 now!

Bliss Residences@Kembangan. FH 1500+sf3+1BR Penthouse. Only $1000+psf. 1 min toMRT, 15 min to CBD. Rooftop pool and BBQ.TK Tan 98206228.

For Rent

Luma, New 8F 1153sf 3br w/ balcony. Low rent$5,500 (neg). Partial furnished. Call S. Ganesh@ 91732881 for viewing!

Singapore Property Classifieds #1

Attention Agents & Owners

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seen by thousands of property buyers and

investors from only $10?

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Singapore Property Weekly Issue 11

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