Singapore Property Weekly Issue 12

8/6/2019 Singapore Property Weekly Issue 12

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Issue 12 | www.Propwise.sg


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SINGAPORE PROPERTY WEEKLY Issue 12

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

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Contents

Singapore Property News This Week Pg 2The Coming Singapore PropertyMarket Correction Pg 5

Property Transactions for the Weekof July 23-29 Pg 8Singapore Property Classifieds #2 Pg 11

From the Editor

Welcome to the twelfth edition of the SingaporeProperty Weekly. Were always on the lookout forgood property articles and stories so if you arekeen to write for us please drop us an email.

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

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Also, a South-East Asian tycoon bought a3,003 sq ft four-bedroom unit at The Marq for$5,842 sq ft, intending to use the unit as his

accommodation whenever he visits Singapore.

Developers are more cautious in biddingfor sites

Developers, who are positive about thedemand for private houses in selectedsuburban areas in the mid of economicuncertainties, are preparing for a possible pricefall. Just after the start of the stockmarket rout,a 99-year private condo site at Pheng GeckAvenue received 15 bids at a tender. The site,which has received a highest bid of $567.31psf of potential GFA, had a second highest bidof $548.11 psf ppr and a third highest bid of$536.16 psf ppr. Credo Real Estate mentionedthat the narrow differences between the bidsindicate that the bidding parties are looking atthe current market situation in a similarperspective.

Private houses near to MRT stations likelyto be more resilient

Kwek Leng Beng of City Developments

believed that developers may need to lowertheir prices by around 5% for residentialprojects that are not near to MRT stations overthe next six months to increase theircompetiveness. But developers with residentialprojects near to MRT stations are likely able tomaintain or increase their prices by 1% to 3%.With the market full of liquidity and in thecurrent low interest rate environment, CityDevelopments believed that the currenteconomic crisis in US and Europe will not havea strong impact on Singapore condo prices.

Leasing demand for luxury propertiesexpected to grow

Rentals for luxury non-landed propertiesincreased 3.7% to $4.45 psf pm in H1 2011;and, over the longer period from end-2000 toend-2010,
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Copyright 2011 www.Propwise.sg. All Rights Reserved. Page | 4

rentals have been increasing at a 5% yearlycompound rate. Despite an expectedslowdown in the increase of PRs and

foreigners in Singapore, leasing demand forluxury non-landed properties is expected toremain strong over the years. Analysts expectdemand for 3,350 units per year, whichequates to 16,750 units over the next fiveyears. Rentals for GCBs, which have a medianrent of $3.41 psf pm in Q2 2011, have beengrowing steadily at 1.7% per year. Rentals anddemand for GCB are also expected to increasedue to limited supply.

Commercial News

Office landlords are concerned about the

economic situation in the US and EuropeDespite the great demand for Grade A office,office landlords are now concerned with themarket situation due to the economicuncertainties happening in the US and Europe.

JLL is optimistic about the office demand inSingapore as MNCs that are retrenching staffworldwide are hiring staff in Asia, particularly

Singapore. Generally, the average CBD GradeA gross effective rent rose by 1.5% quarter-on-quarter to $10.15 psf pm in Q2 2011; this is ahike from the $10.00 psf pm in Q1 2011, and a27.7% year-on-year hike from the $7.95 psfpm in Q2 2010. JLL predicted that new supplyof office space in the CBD area over the nextsix months will moderate the rental hike.
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The Coming Singapore Property Market CorrectionBy Getty Goh

Not too long ago, I wrote two articles to remindreaders that the property market is cyclical andthat a correction was due.

In the recent weeks, we have been receiving aseries of bad news from the stock market aswell as the global economic outlook. Some of

the negative news includes the US debt ceilingdebacle, the downgrading of US credit ratingfrom AAA to AA+, Singapore governmentlowering its economic forecast and theincreasing concerns of a double dip recession.

With so much bad news presently in the

market, it seems like conditions are ripe forproperty prices to drop. If a property marketcontraction actually happens, the mainquestion on many investors minds
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would be how long the downturn will last andwhen they should jump into the propertymarket again.

How long did past downturns last?

To give you an idea of how long property downtrends can last, let us take a look at the URAPrivate Property Price Index (PPPI) shown inFigure 1. Based on past trend, the propertydownturn in late 1990s lasted from 1996Q3 to

1998Q4 (about 2 years). In the early 2000s,the down trend lasted from 2000Q3 to 2004Q1(about 3 years and 9 months). However, duringthe most recent Global Financial Crisis, thedownturn only lasted from 2008Q3 to 2009Q2(about 1 year) before staging a dramaticrebound.

Based on this, what are some of theconclusions we can draw?From the inconsistent duration of each

Source: URA

Figure 1: URA Private Property Price Index(PPPI) from 1996Q1 to 2011Q2

property market downturn, it seems apparentthat there is no standard period of recovery.

The length of each market downtrend willdepend on the market conditions as well as

investors sentiments then (there goes the 7year feast and 7 year famine theory).Nonetheless, if a correction does happen, youshould be prepared that it would not go away

100

120

140

160

180

200

220

1996Q1

1996Q3

1997Q1

1997Q3

1998Q1

1998Q3

1999Q1

1999Q3

2000Q1

2000Q3

2001Q1

2001Q3

2002Q1

2002Q3

2003Q1

2003Q3

2004Q1

2004Q3

2005Q1

2005Q3

2006Q1

2006Q3

2007Q1

2007Q3

2008Q1

2008Q3

2009Q1

2009Q3

2010Q1

2010Q3

2011Q1
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immediately and should let the down trend runits course before starting to look for a property.If we use historical data as a guide, a suitabletime for you to start looking for opportunities

would be 6 to 9 months from the point whenthe URA PPPI first contracts. I must qualifythat no one, including myself, knows for surewhen the bottom of the market will be.However, entering the property market duringthe maturing stages of a down trend willensure that you are not paying a premium for

the property you buy.

Will it reallyhappen?To end off, I must caveat that nothing in life,and especially investing, is certain. Despite theconcerns raised over a double dip recession,no one knows for sure if it will actually happen

as there are many measures that central banksas well as governments can take to arrest theflight of confidence.

Even if a recession were to happen, the

Singapore property market could still beresilient as the inflow of excess hot moneyfrom the West in search of investmentopportunities could bolster the market.

Conversely, even if there is ultimately norecession, it is still possible for the Singaporereal estate market to dip due to an increasedapprehension for long term investments.

In short, the market now is presently veryvolatile and it will take some time for a clear

trend to emerge. However, when banks start tolay off staff and developers start givingattractive discounts/renovation packages toentice buyers, it would not be toounreasonable to expect a market downturnsoon.

By Getty Goh, Director ofAscendant Assets, areal estate research and investmentconsultancy firm. Getty has a MSc (RealEstate) and BSc (Building) from the NationalUniversity of Singapore.

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Non-Landed Residential Resale Property Transactions for the Week of July 23-29

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)

3 TWIN REGENCY 1,216 1,850,000 1,521

3 MERAPRIME 1,130 1,500,000 1,327

3 RIVER PLACE 1,302 1,580,000 1,213

4 CARIBBEAN AT KEPPEL BAY 840 1,510,000 1,798

4 CARIBBEAN AT KEPPEL BAY 872 1,483,050 1,701

4 THE PEARL @ MOUNT FABER 2,045 1,950,000 953

5 PARC IMPERIAL 398 685,000 1,720

5 ONE-NORTH RESIDENCES 1,001 1,390,000 1,389

5 CLEMENTIWOODS CONDOMINIUM 1,625 1,900,000 1,169

5 BOTANNIA 1,561 1,750,000 1,121

5 MONTEREY PARK CONDOMINIUM 1,367 1,410,000 1,031

5 REGENT PARK 904 910,000 1,006

5 NORMANTON PARK 1,270 1,260,000 992

8 URBAN LOFTS 420 660,000 1,572

8 KERRISDALE 1,259 1,297,000 1,030

9 THE TATE RESIDENCES 2,185 6,708,000 3,070

9 THE METZ 570 1,430,000 2,507

9 ORCHARD SCOTTS 2,228 4,953,432 2,223

9 THE LIGHT @ CAIRNHILL 1,249 2,622,900 2,101

9 VISIONCREST 936 1,937,520 2,069

9 WATERMARK ROBERTSON QUAY 1,281 2,090,000 1,632

9 AA CENTRE 1,561 2,000,000 1,281

10 JUNIPER AT ARDMORE 3,520 8,400,000 2,386

10 THE TOMLINSON 2,347 5,150,000 2,195

10 LATITUDE 2,788 6,114,000 2,193

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)

10 THE LOFT 1,701 3,570,000 2,099

10 LATITUDE 2,928 5,838,300 1,994

10 THREE THREE ROBIN 1,711 3 ,300,000 1,928

10 DRAYCOTT EIGHT 1,798 3,350,000 1,864

10 DORMER PARK 1,238 1,818,000 1,469

10 PALM SPRING 1,873 2,750,000 1,468

10 THE SIXTH AVENUE RESIDENCES 2,454 3,386,520 1,380

10 THE PRINCETON 1,087 1,410,000 1,297

10 TANGLIN REGENCY 883 1,131,123 1,282

10 THE SIXTH AVENUE RESIDENCES 3,122 3,680,000 1,179

11 PARK INFINIA AT WEE NAM 560 1,220,000 2,180

11 SKY@ELEVEN 2,271 3,769,860 1,660

11 PAVILION 11 1,485 2,150,000 1,447

11 APLETON VIEW 1,206 1,610,000 1,335

11 THE TREVOSE 1,733 2,230,000 1,287

11 THOMSON 800 1,399 1,750,000 1,251

11 THOMSON 800 1,625 1,900,000 1,169

11 HILLCREST ARCADIA 2,745 2,900,000 1,057

11 ADAM PARK CONDOMINIUM 1,528 1,470,000 962

12 THE ARTE 1,873 2,290,000 1,223

12 THE MARQUE @ IRRAWADDY 1,087 1,230,000 1,131

12 OLEANDER TOWERS 1,152 1,020,000 886

12 AVA TOWERS 1,281 1,110,000 867

14 KEMBANGAN COURT 786 780,000 993

14 THE HELICONIA 1,335 1,228,200 920

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Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)

15 AALTO 1,528 3,900,000 2,552

15 SUNSHINE RESIDENCE 775 830,000 1,071

15 HAIG COURT 1,582 1,650,000 1,043

15 PARK EAST 1,755 1,700,000 969

15 EASTSIDE LOFT 2,120 1,705,000 804

15 JOO CHIAT MANSIONS 1,808 1,400,000 774

15 VERANDA 2,099 1,240,000 591

16 COSTA DEL SOL 1,561 2,200,000 1,410

16 THE CLEARWATER 710 735,000 1,035

16 BAYSHORE PARK 936 925,000 988

16 EAST MEADOWS 1,227 1,175,000 958

16 BAYSHORE PARK 936 895,000 956

16 SUNHAVEN 1,281 1,200,000 937

16 BAYSHORE PARK 936 875,000 93416 AQUARIUS BY THE PARK 893 820,000 918

16 THE BAYSHORE 947 860,000 908

16 CHANGI COURT 1,389 1,200,000 864

16 TANAMERA CREST 1,206 960,000 796

17 DAHLIA PARK CONDOMINIUM 1,163 905,000 778

17 SANDY PALM 1,249 910,000 729

17 LOYANG VALLEY 1,841 1,192,800 648

17 EDELWEISS PARK CONDOMINIUM 2,465 1,450,000 588

17 LOYANG VALLEY 1,485 870,000 586

18 THE TROPICA 1,238 1,130,000 913

18 MELVILLE PARK 936 770,000 822

18 CHANGI RISE CONDOMINIUM 1,259 982,888 780

18 RIS GRANDEUR 1,701 1,310,000 770

18 MELVILLE PARK 1,302 900,000 691

19 KOVAN MELODY 1,216 1,350,000 1,110

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)

19 KOVAN MELODY 1,173 1,200,000 1,023

19 KOVAN MELODY 1,173 1,150,000 980

19 THE SPRINGBLOOM 1,948 1,530,000 785

19 REGENTVILLE 1,044 760,000 728

19 REGENTVILLE 1,152 815,000 708

19 PALM HAVEN 2,185 1,280,000 586

20 BRADDELL VIEW 1,615 1,200,000 743

20 SIN MING PLAZA 1,421 1,030,000 725

20 SIN MING PLAZA 1,475 910,000 617

21 THE STERLING 1,970 2,650,000 1,345

21 MAPLEWOODS 915 1,200,000 1,312

21 CAVENDISH PARK 926 1,106,888 1,196

21 MEADOWLODGE 1,324 1,436,000 1,085

21 CAVENDISH PARK 1,313 1,388,000 1,05721 ASTOR GREEN 1,087 1,118,000 1,028

21 SPRINGDALE CONDOMINIUM 1,119 1,150,000 1,027

21 PARC PALAIS 958 975,000 1,018

21 SUMMERHILL 1,389 1,350,000 972

21 SIGNATURE PARK 1,410 1,350,000 957

21 SOUTHAVEN II 1,485 1,370,000 922

21 GRAND CHATEAU 1,216 1,110,000 913

21 GRAND CHATEAU 1,270 1,040,000 819

21 HILLVIEW GREEN 1,582 1,280,000 809

21 SOUTHAVEN II 3,014 1,690,000 561

22 THE MAYFAIR 1,227 1,000,000 815

22 PARC OASIS 1,076 850,000 790

23 HILLBROOKS 1,238 1,288,000 1,041

23 THE JADE 1,012 935,000 924

23 THE JADE 1,475 1,330,000 902

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NOTE: This data only covers non-landed residentialresale property transactions with caveats lodged with

the Singapore Land Authority. Typically, caveats arelodged at least 2-3 weeks after a purchaser signs anOTP, hence the lagged nature of the data.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)

23 HILLVIEW 128 1,044 910,000 872

23 MAYSPRINGS 1,292 940,000 728

23 HILLTOP GROVE 1,647 1,180,000 717

23 NORTHVALE 1,087 765,000 704

23 PHOENIX HEIGHTS 1,335 675,000 506

25 CASABLANCA 947 780,000 823

26 BULLION PARK 807 810,000 1,003

26 CASTLE GREEN 947 775,000 818

28 NIM GARDENS 1,830 1,420,000 776

28 NIM GARDENS 1,830 1,360,000 743

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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 $1000psf. 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 #2

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Singapore Property Weekly Issue 12

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