Singapore Property Weekly Issue 13

8/4/2019 Singapore Property Weekly Issue 13

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Issue 13 | www.Propwise.sg


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SINGAPORE PROPERTY WEEKLY Issue 13

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

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ContentsSingapore Property News This Week Pg 2What the Raised Income CeilingMeans For the Property Market Pg 5What the Negative Swap Rate MeansFor You Pg 8Resale Property Transactions(July 30- August 05) Pg 11Singapore Property Classifieds #3 Pg 13

From the Editor

Welcome to the thirteenth edition of the SingaporeProperty Weekly. Weve added a Tenure column

to our property transactions in this issue based onreader feedback. Hope it is helpful!

Mr. Propwise
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Singapore Property This WeekResidential News

Government increasing income ceiling forHDB flats and EC unitsBesides introducing 25,000 BTO units in 2012and 8,000 flats in September 2011, theGovernment will be increasing the incomeceiling for HDB flats from $8,000 to $10,000

and ECs from $10,000 to $12,000. The$10,000 HDB income ceiling will be applicablefor the purchase of new flats, resale flats witha CPF housing grant, and the application of aHDB loan for a new or resale flat. However,the income ceiling for DBSS will remain at$10,000. This means that DBSS will facedirect competition from BTO flats as buyerswho earn at least $10,000 per month canchoose between BTO and DBSS flats. Theseadjustments will certainly affect flat sellers andsome private developers. JLL predicted that

the annual demand for new housing in theprivate market will likely decrease by 5% to15% (approximately 700 to 2,000 units). BothCredo Real Estate and Global PropertyStrategic Alliance believed that the resale flatmarket will not be affected significantly sinceunits in matured estates remain attractive.

After 2 months of gloomy results, privatehome sales finally see improvement in JulyThe number of private houses (excluding ECs)sold by developers in July was 1,386 units, a17.3% hike from the 1,182 units sold in June.The number of ECs sold by developers alsoincreased from 212 units in June to 569 unitsin July. Including ECs, developers private

home sales in July added up to 1,954 units, a40.2% month-on-month hike. Theimprovement in July home sales can be linkedto low home loan rates, home buyers returning
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after the June school vacation, and buyersspeeding up their home purchases to avoidbuying during the Hungry Ghost Month.

A top bid of $105 million obtained for alanded housing site at Serangoon GardenWayA 99-year, 305,711 sq ft landed housing site atSerangoon Garden Way received 16 bids at atender. The highest bid of $105 million ($343psf of land area) came from a joint-bid betweenCity Developments and Hong Realty. The topbid was 10.4% higher than the second highestbid of $95.13 million ($311 psf of land area)offered by ZACD Investments. Credo RealEstate linked the strong responses for the siteto the scarcity of landed sites. CityDevelopments is planning to use the site for aterraced-housing project which will belaunched next year.

Private home sales increased 21.6% in Q2,with Chinese nationals making up thehighest proportion of foreign buyers: DTZ

DTZs analysis of caveats lodged for both newand secondary sales revealed that the numberof transactions for private houses increased21.6% quarter-on-quarter in Q2 2011, from6,958 deals in Q1 to 8,458 deals in Q2.Chinese nationals still make up the greatestproportion of foreign buyers of residentialproperties in Singapore; the number of privateresidential units purchased by them increasedfrom the more than 527 units in Q1 to 640 inQ2. DTZ also noticed that the proportion ofbuyers with HDB addresses has been risingover the last three quarters; such buyerspurchased 38.7% of all private houses in Q2, ahike from the 37% in Q1.


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

Commercial News

URA launched a Woodlands industrial site

URA launched a 60-year leasehold industrialsite at Woodlands Avenue 12 (Parcel 3) underthe Reserve list after receiving an applicationfrom an interested bidder who offered to bid forthe site at not less than $56,150,000(approximately $111 psf ppr). The site, whichhas a site area of 202,362 sq ft and a

maximum gross plot ratio of 2.5, is zoned forBusiness 1 use and has a maximum buildingheight of 61m above mean sea level. URA willput the site up for sale via a public tender.

Alpha put up 135 Cecil Street and RobinsonCentre up for saleAlpha Core Real Estate Fund has put up twooffice blocks in the CBD, freehold 135 CecilStreet and Robinson Centre, up for sale viaseparate EOI. Marketed by DTZ and CBRErespectively, the two office buildings can

possibly fetch a total of near $500 million. The14-storey 135 Cecil Street, which has anexisting GFA of 100,900 sq ft, has a NLA of

83,076 sq ft and can potentially fetch $183million to $191 million. It is currently 92%occupied and its average monthly passing rentis $8.23 psf. The 20-storey Robinson Centrehas a NLA of 132,288 sq ft and can likely fetch$291 million to $304 million. It is currently96.5% occupied and has 71 car park lots.
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What the Raised Income Ceiling Means For the Property Market

By Dennis Ng

The news was expected as the then Ministerfor National Development (Mr. Mah) hadmentioned in the run-up to General Electionsin May 2011 that the income ceiling for HDBflats would be increased.

The changes announced by Prime MinisterLee during National Day Rally on Sunday night14 Aug 2011 are as follows:

1. Income ceiling for purchase of new HDBflats and for HDB Resale flats will be raised toS$10,000 from S$8,000 previously.

2. Income ceiling for buying ECs (ExecutiveCondos) will be raised to S$12,000 fromS$10,000.


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3. Income Ceiling for Singles will be raisedfrom S$3,000 to S$5,000 to qualify for the HDBHousing Grant, and the housing grant will beincreased from S$11,000 to S$15,000.

Those earning up to S$10,000 will getS$30,000 CPF Housing Grant when buyingnew ECs. Those who earn between S$10,000to S$11,000 would get S$20,000, while thoseearning between S$11,000 to S$12,000 wouldget S$10,000 instead.

This is still better than before, where anyoneearning more than S$10,000 cannot buy NewECs and will NOT get any Housing Grant at all.

What are the possible impacts?1. Demand for DBSS (Design, Build and Sell

Scheme) flats might drop. DBSS flats werepreviously for those whose income exceededS$8,000 but are below S$10,000. There is NOlonger this sandwiched class in the new ruling.People earning S$8,000 to S$10,000 can now

either buy new HDB flats or resale HDB flatsand be entitled to a Housing Grant.

2. Demand for 3 room Resale HDB flats will go

up. Many more singles will be given theHousing Grant to buy a Resale flat and manyof them are likely to rush out to buy 3 roomResale HDB flats.

3. Some of the demand for Mass Marketcondos, especially those priced between

S$1,000 psf to S$1,300 psf will drop, as part ofthe demand will shift to ECs and HDB ResaleFlats.

4. With more higher income families (thoseearning above S$8,000 to S$10,000) qualifyingto buy HDB Resale flats, this might push up

demand for HDB Resale flats and there mightbe upward pressure on COVs (Cash OverValuation).


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My outlook for property prices

All in all, I do NOT see the possibility ofSingapore property prices falling much in the

next 6 to 12 months as we still have a tightsupply situation within this period. Most of the25,000 new HDB flats announced by MinisterKhaw to be built in year 2011 would probablyonly be completed in year 2013 earliest.

Next year, Minister Khaw again promised to

build another 25,000 new HDB flats. So I worrythat there might be an over-supply of new HDBflats in year 2013 and year 2014. Especially if it

coincides with a slowdown in the Singaporeeconomy as by 2013 we might be in the midstof a Global Financial Crisis that could hit theworld in the next 3 to 10 months.

Year 2013 and year 2014 will also see over30,000 units of new condos being completed,so there might be an over-supply situation incondos during the same time period as well.

By Dennis Ng, Director of Leverage Holding

andMaster Your Finance.

SINGAPORE PROPERTY WEEKLY I 13
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What the Negative Swap Rate Means For You

In a surprising development, the Singapore

dollar Swap Offer Rate (SOR) turned negativefor the first time on August 10th due to inflowsinto the Singapore dollar. In this article well

explore what the SOR is, why it turned negative,and what impact that has on the banks,borrowers and depositors.

What is SOR?

SOR is the effective cost of borrowing SGDsynthetically through borrowing USD for 3months and swapping out the USD in return forSGD for the same maturity.

The other commonly used benchmark is SIBOR(Singapore Interbank Offered Rate), which is adaily reference rate based on the interest ratesat which banks offer to lend unsecured funds toother banks in the Singapore wholesale money

market (or interbank market).

The Association of Banks in Singapore is thefixing authority for both rates.

Some of the differences between the two:

1. SIBOR is determined by the demand andsupply of funds in the Singapore interbank

market, whereas SOR is more influenced byexternal factors such as USD interest andexchange rates.

2. SOR tends to be more volatile becauseexchange rates and USD money market ratesare more volatile.

Why did it turn negative?

Singapore has been attracting large inflows ofU.S. dollars from investors looking for a refuge

SINGAPORE PROPERTY WEEKLY I 13


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from the turmoil in the global markets. It alsoreflects market expectations of the exchangerate.

In its April statement, the central bank MAShad effectively signaled its intention to allowthe Singapore dollar to appreciate against abasket of currencies by re-centering thecurrencys band upwards, thus exacerbating

inflows from investors looking for a strongcurrency.

What is the impact for borrowers anddepositors?

The negative SOR rate complicates the MAS

efforts to clamp down on inflation. It may causethe MAS to rethink its policy on allowing the

Singapore dollar to appreciate quickly to curbinflation so far this year it has gained 6.5percent versus the U.S. dollar.

But the expectation of a rapid appreciation willattract even more inflows from investorslooking for a safe-haven currency in AAA-ratedSingapore. With exports under pressure, there

are also some arguing that the pace ofappreciation should be slowed down.

For banks, the low interest rates have beenhurting them by compressing their already lowmargins. As SOR has strayed into negativeterritory while interbank rates have stayed

positive, some argue that it has started to loseits usefulness as a benchmark for pricingvarious loans such as mortgages.

Some banks have now started to abandonSOR as a peg and switched to SIBOR or boardrates. Some banks have also invoked market

disruption clauses in their loan agreements toreset or use another benchmark for their loans.

SINGAPORE PROPERTY WEEKLY Iss e 13


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Interest rates are likely to stay low for anextended period as the U.S. Federal Reservehas signaled its intention to keep U.S. interestrates low till the middle of 2013. For borrowers,

this means your borrowing costs are likely tostay low in the medium term. As for depositors,it means you will get almost no return bykeeping your money as deposits in the bank.

MoneyMatters.sgis your guide on how tomake more money, save smarter, invest

intelligently, and enjoy your money like a pro.Visit our site to get our free report on financialfreedom.

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Non-Landed Residential Resale Property Transactions for the Week of July 30 - Aug 5Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE SAIL @ MARINA BAY 1,647 3,630,000 2,204 99

1 PEOPLE'S PARK COMPLEX 463 495,000 1,069 99

2 ICON 581 1,088,000 1,872 99

3 RIVER PLACE 829 1,050,000 1,267 99

4 CARIBBEAN AT KEPPEL BAY 926 1,500,000 1,620 99

4 CARIBBEAN AT KEPPEL BAY 893 1,400,000 1,567 99

4 THE BERTH BY THE COVE 1,884 2,900,000 1,540 99

4 TERESA VILLE 1,959 2,010,000 1,026 FH

5 ONE-NORTH RESIDENCES 614 920,000 1,499 99

5 THE MAYLEA 495 720,000 1,454 FH

5 PARC IMPERIAL 570 828,000 1,451 FH

5 THE PARC CONDOMINIUM 1,421 1,563,100 1,100 FH

5 CLEMENTIWOODS CONDOMINIUM 1,679 1,780,000 1,060 995 NORMANTON PARK 1,270 1,230,000 968 99

5 WESTCOVE CONDOMINIUM 1,206 985,000 817 99

7 THE BENCOOLEN 1,044 1,380,000 1,322 99

8 KERRISDALE 990 1,088,000 1,099 99

9 VIDA 861 2,210,000 2,566 FH

9 RIVERIA GARDENS 969 2,102,512 2,170 FH

9 CAIRNHILL CREST 818 1,750,000 2,139 FH

9 LEONIE STUDIO 936 1,880,000 2,008 99

9 LUCKY PLAZA 1,647 3,250,000 1,973 FH

9 THE IMPERIAL 980 1,888,000 1,927 FH

9 ELIZABETH HEIGHT 2,530 4,750,000 1,878 FH

9 ROBERTSON EDGE 474 885,000 1,869 999

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

9 TRIBECA 1,905 3,530,000 1,853 FH

9 LA CRYSTAL 958 1,530,000 1,597 FH

9 LA CRYSTAL 1,055 1,650,000 1,564 FH

9 WATERFORD RESIDENCE 1,055 1,646,000 1,560 999

9 ASPEN HEIGHTS 3,143 4,550,000 1,448 999

9 UE SQUARE 1,528 2,068,000 1,353 929

9 OLEANAS RESIDENCE 1,550 2,030,000 1,310 FH

10 LATITUDE 2,766 6,153,500 2,224 FH

10 LATITUDE 2,788 6,104,000 2,189 FH

10 GARDENVILLE 1,776 3,380,000 1,903 FH

10 THE HERMITAGE 850 1,500,000 1,764 FH

10 SOMMERVILLE PARK 1,302 2,030,000 1,559 FH

10 PALM SPRING 1,496 2,300,000 1,537 FH

10 MONTVIEW 1,948 2,700,000 1,386 FH

10 VALLEY PARK 764 1,040,000 1,361 999

10 DUCHESS CREST 1,345 1,640,000 1,219 99

11 MEDGE 463 785,000 1,696 FH

11 NINETEEN SHELFORD ROAD 947 1,350,000 1,425 FH

11 WATTEN HILL 2,626 3,250,000 1,237 FH

11 NOVENA COURT 861 500,000 581 FH

12 THE ARTE 1,055 1,370,000 1,299 FH

12 THE CITRINE 1,313 1,455,000 1,108 FH

12 ONE ST MICHAEL'S 1,249 1,350,000 1,081 FH12 DE PARADISO 904 900,000 995 FH

14 COSMO 398 645,000 1,620 FH

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

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Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

14 CITY PLAZA 915 915,000 1,000 FH

14 THE SUNNY SPRING 1,023 890,000 870 FH

14 CENTRAL GROVE 1,023 885,000 865 99

14 WINDY HEIGHTS 2,476 1,850,000 747 FH

14 WANG LODGE 1,012 670,000 662 FH15 THE SEA VIEW 560 950,000 1,697 FH

15 THE COTZ 452 630,000 1,394 FH

15 ONE AMBER 1,615 2,200,000 1,363 FH

15 THE SERENNIA 646 839,800 1,300 FH

15 SANCTUARY GREEN 775 975,000 1,258 99

15 SANCTUARY GREEN 1,119 1,400,000 1,251 99

15 COTE D'AZUR 1,679 2,050,000 1,221 99

15 PEBBLE BAY 1,367 1,608,888 1,177 99

15 PEBBLE BAY 1,367 1,585,720 1,160 99

15 THE SERENNIA 980 1,082,900 1,106 FH

15 TANJONG RIA CONDOMINIUM 1,378 1,520,000 1,103 99

15 THE SERENNIA 1,119 1,232,000 1,101 FH

15 EASTERN LAGOON 1,076 1,160,000 1,078 FH

15 PALM VISTA 1,055 950,000 901 FH

15 GEMINI APARTMENTS 1,270 995,000 783 FH

16 COSTA DEL SOL 1,238 1,510,000 1,220 99

16 PARBURY HILL CONDOMINIUM 904 925,000 1,023 FH

16 CHANGI COURT 872 870,000 998 FH

16 BAYSHORE PARK 1,173 1,160,000 989 9916 THE BAYSHORE 1,227 1,110,000 905 99

16 EAST MEADOWS 1,216 1,070,000 880 99

16 THE TANAMERA 1,324 1,090,000 823 99

16 AQUARIUS BY THE PARK 1,227 968,000 789 99

17 EDELWEISS PARK CONDOMINIUM 1,335 1,100,000 824 FH

17 BALLOTA PARK CONDOMINIUM 1,421 965,000 679 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

18 RIS GRANDEUR 1,292 1,220,000 945 FH

18 THE TROPICA 1,572 1,280,000 814 99

18 TAMPINES COURT 1,690 1,080,800 640 101

18 ELIAS GREEN 1,528 950,000 622 99

18 RIS GRANDEUR 3,111 1,850,000 595 FH18 TAMPINES COURT 1,722 955,000 555 101

19 SUNGLADE 861 952,000 1,106 99

19 COMPASS HEIGHTS 1,066 950,000 891 99

19 KOVAN APARTMENTS 1,485 1,250,000 842 FH

19 CHERRYHILL 1,033 850,000 823 FH

19 RIO VISTA 1,238 970,000 784 99

20 CLOVER BY THE PARK 1,281 1,600,000 1,249 99

20 GRANDEUR 8 1,421 1,280,000 901 99

21 BUKIT REGENCY 1,432 1,338,000 935 FH

21 THE HILLSIDE 1,302 1,188,800 913 FH21 SOUTHAVEN II 1,841 1,550,000 842 999

21 PARC PALAIS 1,378 1,130,000 820 FH

22 PARC OASIS 1,227 955,000 778 99

22 LAKEPOINT CONDOMINIUM 1,884 1,148,000 609 99

23 HAZEL PARK CONDOMINIUM 1,012 990,000 978 999

23 CASHEW HEIGHTS CONDOMINIUM 1,647 1,400,000 850 999

23 MAYSPRINGS 904 720,000 796 99

23 REGENT HEIGHTS 1,163 880,000 757 99

23 HILLTOP GROVE 1,485 1,060,000 714 99

23 REGENT GROVE 1,163 828,000 712 9923 PALM GARDENS 1,216 865,000 711 99

23 HILLTOP GROVE 1,647 1,150,000 698 99

25 ROSEWOOD 1,173 870,000 742 99

26 BULLION PARK 1,259 1,150,000 913 FH

27 SELETARIS 1,647 1,300,000 789 FH

28 GRANDE VISTA 2,024 1,500,000 741 999

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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!

Breeze By The East, Upp East Coast Rd, FH,2228sf 3+study. Future ERL MRT. Ask$10xxpsf. Call Val ERA @ 97638887

For Rent

Luma, New 8F 1153sf 3br w/ balcony. Low rent$5,000 (neg). Partial furnished. Call S. Ganesh@ 91732881 for viewing!

Singapore Property Classifieds #3

Attention Agents & Owners

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Singapore Property Weekly Issue 13

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