Singapore Property Weekly Issue 113

7/28/2019 Singapore Property Weekly Issue 113

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Issue 113Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 4 Must-Ask Questions Before You Buy

That Overseas Property

p6 Property Selling Tip #6: Notify your Tenant

p7 Singapore Property News This Week

p11 Resale Property Transactions (July 3 July 9)

Welcome to the 113th edition of the

Singapore Property Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
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SINGAPORE PROPERTY WEEKLY Issue 113

Page | 2Back to Contents

By Property Soul (guest contributor)

I have recently been getting messages from

my blog readers, asking whether they should

invest in overseas properties. Locations that

people are interested in include Iskandar,

Kuala Lumpur, Penang, Australia, UK, US,

Japan, Thailand and the Philippines.

There is only one reason to justify buying

an overseas property

Basically, I am not against the idea of

investing overseas if the pasture is really

greener on the other side. However, I believe

that it is only justified to put your money

overseas when the cashflow and profit are

much better than what you can find at home.

4 Must-Ask Questions Before You Buy That Overseas Property


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I am not a property agent selling overseas

properties. I won't invite you to a free three-

hour property investment seminar, and push

overseas projects towards the end. I am also

not selling you a thousand-dollar three-day

get-rich-quick property course that promises

to turn you into a millionaire, and make sure

you place a deposit for that overseas project

before you leave the room.

Why I am not buying now

As a property investor, I have researched the

property market in selected countries, which

includes reading everything I can get my

hands on, talking to local developers and

property agents, interviewing sellers and

owners, and viewing new and old properties

on the actual sites.

Don't ask me where the potential investments

are. I won't buy in any hot and overpriced

market, only in markets no one shows any

interest in yet, or where things are so

depressed you can see 'blood all over the

streets'.

And every time before I commit, I will ask

myself four key questions.

1. Who are the other buyers?

Look at the profile of the people who are

buying the same thing. That should give you

clues on the quality of the investment project.

Are they sophisticated buyers or just laymen

of the market? Are they savvy investors or

just an average joe like you?

Try to understand the rationale behind their

purchase. Are they just following the herd todump their spare cash after they faced buying

restrictions of local properties? Have they

calculated the net return and run through the

worst case scenario?


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2. Can you trust them?

How much do you know about the developer?

Can you trust that it will complete the project

on time and with acceptable quality? Will itrun away when the market tanks?

Who is going to manage the property on your

behalf? Can you trust the local management,

security and laws of the country? Will they

ask you to pay and pay, but with you still

ending up having to travel there frequently to

clean up the mess?

3. Why are the locals not buying?

If the return of that overseas project is so

attractive, why are the units not already being

snapped up by the locals? Why does the

developer have to spend so much time,

money and effort to go overseas, repackage

and market to you?

Look at the rental return promised by the

developer. Are the locals avoiding those

projects because of oversupply, bad location

or poor rental demand?

If even the locals are not attracted by the

potential of the project, what make you think

that you, as a foreigner, will be able to get

credit terms, government taxes, rental return,

etc. more favorable than the locals?

4. Is there a secondary market?

Do you know there are property projects built

only to target foreign buyers? Some areas in

the US, UK and Australia have properties

mainly targeted at Asian buyers. Similarly,

some high-end condos and landed propertiesin Malaysia are only marketed to foreign

investors.


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Be nice to your Tenants and they will be nice

to you too, especially when you want to

arrange viewings which are disturbing to their

stay.

You can have a short discussion with them to

let them know about your intention to sell theproperty and find out if they intend to

continue to stay.You would then be able to

decide if you are selling the property with or

without tenancy.

If the property is to be sold vacant, do give

your Tenant ample notice (as per the

Tenancy Agreement) for them to source for

an alternative rental unit.

In the event the property is to be sold with

tenancy, do inform your Tenant about the

change of rental payment bank account

number to avoid incorrect payment issues.

The deposit that you have received from the

Tenant would be transferred to the Buyer.This will be handled by your Solicitor when

they handle the sales proceeds.

By Eileen Tan and Ui Wei Teck, property

investors and authors of Enjoying Mid-Life

Without Crisis. This tip and dozens more are

from theirbook.

Property Selling Tip #6: Notify your Tenant

SINGAPORE PROPERTY WEEKLY I 113
http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/


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Singapore Property This Week


Residential

S al e s a t V u e 8 a f fe c t ed b y n e w h o m e l o a n

c u r b s

Only 50-plus units were sold at Vue 8

Residence, a 99-year leasehold project in

Pasir Ris, due to the general air of cautionand longer bank loan approval process after

the new total debt servicing ratio (TDSR)

framework took effect on June 29. The

average prices of the units are between $980

and $1,050 per sq ft, depending on unit types

and whether units face the sea. Absoluteprices start from $540,000 for a 474 sq ft

one-bedder. At 17 storeys high, the 463-unit

condo development would have been able to

sell between 150 and 200 units in the firstweekend prior to the new framework,

according to OrangeTee research head

Christine Li.

(Source: Business Times)

J u ly d ev el op er s al es ex p ec ted t o s lo w d o w n f o l l o w i n g J u n e s u r g e

Developer sales increased by 23.8 percent

month-on-month in June to 1,806 homes

(excluding executive condominiums), thanks

to the 737 units sold at the J Gateway condo

in Jurong on a single day on June 28 as

developers and buyers raced before the new

Monetary Authority of Singapore (MAS)

regulations took effect the following day.

SINGAPORE PROPERTY WEEKLY I 113


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According to Urban Redevelopment

Authority's (URA) latest figures, developers

have moved 10,061 units in the first six

months, which translated to a monthly

average of 1,677 units. As for ECs, which area hybrid of private and public housing,

developers' June 2012 sales stood at another

1,725 units. Despite the June surge, market

watchers expect sales in July to slow down

due to the new Total Debt Servicing Ratio

framework by MAS, as players need time toadjust to the more rigorous framework for

banks to approve property loans. Savills

Singapore research head Alan Cheong said

developers' private home sales for July could

be as low as half the June figure. Colliers

International director Chia Siew Chuin saidthat July sales could ease to 1,000 units

before recovering in the following months.


Ten d er f o r Ta m p in es A v e 10 p l o t d r aw s

s t r o n g d e m a n d , s u r p r i s i n g a n al y s t s

Tampines Ave 10 plot, the first private

residential site tender to close since a new

debt servicing framework for property loans

was introduced, drew strong demand with ten

bidders and surprised analysts who predicted

greater caution. The highest bid was from

MCC Land Singapore with $562.01 psf ppr, or

$289.7 million in absolute terms. The second

highest bid stood at $522.24 psf ppr, or

$269.2 million from a partnership of UOL

Venture Investments and Kheng Leong

Company.


T h e Qu i n n t o g e t J u l y l a u n c h

The Quinn, a freehold residential

development along Bartley Road, will be

launched at the end of July by TOP Global.



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The development comprises 139 units over

four five-storey blocks, with apartments

ranging from one-bedroom units (starting

from 484 sq ft), two- and three-bedroom units

(646- 1,141 sq ft) to penthouses exceeding2,000 sq ft. Prices are expected to start from

$1,500 psf. Located close to the upcoming

Bidadari Township, The Quinn is expected to

benefit from the rental demand of the working

population based at Paya Lebar iPark, the

Central Business District and SeletarAerospace Park.


Commercial

N o mo r e b a n k- d e ve lo p e r t ie - u p s

The Monetary Authority of Singapore (MAS)

has put out a new rule that would stop banks

from offering preferential interest rates for

property loans to clients buying designated

properties. In other words, this rule would

restrict a common practice where property

developers and agents tie up with banks to

sell property. With effect from June 29

onwards, all forms of tie-ups with propertydevelopers and agents are not allowed. MAS

spokesman said that except for the granting

of property loans, financial institutions should

not offer any property-related services to

customers in general, including property

advertisements or tie-ups with propertydevelopers, regardless of the location (in or

outside of Singapore) or the type of property

(residential, commercial, industrial).


Shell f i r m s cant c i rc u m v e n t n e w l o an r e g i m e

The Monetary Authority of Singapore (MAS)

said that shell companies, or companies



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set up by individuals to buy commercial and

industrial properties, are to be included in the

newly launched TDSR framework as well.

Financial institution were advised by MAS to

thoroughly assess the case in whichindividuals set up local or offshore shell

companies but do not have substantive

businesses with genuine commercial

activities. Entities not subjected to TDSR

framework include: existing companies

trading in property and/or holding investmentproperties for rental income, and new entities

set up by an established property group or

fund if the FIs can establish the new entity's

parentage.


http://www.moneymatters.sg/


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Non-Landed Residential Resale Property Transactions for the Week of Jul 3 Jul 9

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE SAIL @ MARINA BAY 614 1,400,000 2,282 99

2 LUMIERE 506 1,105,000 2,184 99

5 THE PARC CONDOMINIUM 1,496 1,720,000 1,150 FH

5 THE PARC CONDOMINIUM 1,195 1,360,000 1,138 FH

5 LE HILL CONDOMINIUM 1,302 1,480,000 1 ,136 FH

5 VISTA PARK 980 890,000 909 99

8 CITYLIGHTS 1,356 2,200,000 1,622 99

9 HILLTOPS 1,184 3,629,000 3,065 FH

9 HILLTOPS 1,593 4,816,500 3,023 FH

9 PARC SOPHIA 474 980,000 2,069 FH

9 THE INSPIRA 667 1,360,000 2,038 FH

9 LUMA 1,173 2,165,000 1,845 FH

9 PARC SOPHIA 667 1,175,000 1,761 FH

9 ASPEN HEIGHTS 1,572 2,515,000 1,600 999

10 PARVIS 990 1,938,000 1,957 FH

10 THE LEVELZ 786 1,330,000 1,693 FH

10 S OMMERVILLE PARK 1,302 2,171,000 1,667 FH

10 HOLT RESIDENCES 2,056 3,160,000 1,537 FH

10 THE LEGEND 1,464 2,180,000 1,489 FH

10 SHEARES VILLE 1,528 2,185,000 1,430 FH

11 SOLEIL @ SINARAN 581 1,250,000 2,151 99

11 THE LINCOLN RESIDENCES 2,573 4 ,305,000 1,673 FH

11 AMARYLLIS VILLE 958 1,600,000 1,670 99

11 AMANINDA 1,345 1,930,000 1,434 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

12 D'LOTUS 570 835,000 1,464 FH

12 TRELLIS TOWERS 1,163 1,600,000 1,376 FH

12 DE PARADISO 1,130 1,535,000 1,358 FH

12 THE ARTE 1,399 1,850,000 1,322 FH

12 BALESTIER TOWERS 4,413 4,975,000 1,127 FH

12 MOONSTONE RESIDENCES 1,044 1,063,880 1,019 FH

14 ASTORIA PARK 1,195 1,170,000 979 99

15 AALTO 1,442 2,588,000 1,794 FH

15 CASA MEYFORT 1,841 2,600,000 1,413 FH

15 ST PATRICK'S LOFT 1,066 1,350,000 1,267 FH

15 COSTA RHU 2,056 2,575,000 1,252 99

15 THE SUNNIDORA 861 1,010,000 1,173 FH

15 NEPTUNE COURT 1,636 1,200,000 733 99

16 COSTA DEL SOL 1,755 2,500,000 1,425 99

16 CHANGI COURT 872 1,060,000 1,216 FH

16 THE BAYSHORE 926 920,000 994 99

17 FERRARIA PARK CONDOMINIUM 1,249 1,250,000 1,001 FH

18 OASIS @ ELIAS 1,270 1,235,000 972 99

19 SANCTUARY @ 813 936 1,080,000 1,153 FH

19 TANGERINE GROVE 1,389 1,560,000 1,123 FH

19 THE SPRINGBLOOM 1,302 1,420,000 1,090 99

19 THE MORNING GLORY 1,033 1,030,000 997 FH

19 EVERGREEN PARK 1,173 890,000 759 99

21 GARDENVISTA 861 1,160,000 1,347 99



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NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after apurchaser signs an OTP, hence the lagged nature of the data.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

21 THE BLOSSOMVALE 1,367 1,780,000 1,302 999

21 HIGHGATE 1,227 1,380,000 1,125 FH

21 PARC PALAIS 1,238 1,350,000 1,091 FH

21 SUNSET LODGE 1,087 1,130,000 1,039 FH

21 HUME PARK I 1,582 1,460,000 923 FH

22 THE CENTRIS 1,066 1,400,000 1,314 99

22 THE LAKESHORE 1,109 1,380,000 1,245 99

22 PARC VISTA 1,055 990,000 939 99

23 HILLVIEW REGENCY 1,195 1,135,000 950 99

23 PARKVIEW APARTMENTS 1,119 895,000 799 99

23 PALM GARDENS 1,216 935,000 769 9926 THE CALROSE 969 1,180,000 1,218 FH
http://propertymarketinsights.com/

Singapore Property Weekly Issue 113

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