Issue 58 Copyright © 2011-2012 www.Propwise.sg . All Rights Reserved.
Issue 58 Copyright © 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTS p2 Singapore Property News This Week
p6 Singapore Property Prices Defy
Gravity to Reach an All-Time High
p11 Resale Property Transactions
(June 13 – June 19)
Welcome to the 58th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 58
Singapore Property This Week
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Residential
Prices for high-end homes likely to fall by
10-20%
As the average price gap between the high-
end and the mass market residential market
narrows from 98% (from Q1 2004 to Q1 2012)
to 82% in Q1 2012, the high-end home prices
will likely fall a further 10-20% as a result of
the ABSD. The mass market and shoebox
units, however, are benefitting from the low
interest rates and increased liquidity, with the
mass market residential prices potentially
increasing up to 5% and the shoebox units
sustaining the higher price premium of 7-9%
over non-shoebox units though this may
change in 2015.
Signs of change have already been seen, with
transactions in the outside central region
(OCR) and rest of central region (RCR) in the
range of $1,200 - $1,300 psf and transactions
in the core central region (OCR) in the range
of $1,600 - $1,700 psf. The number of OCR
shoebox units could inflate by 450% by 2015,
potentially leading to a 10-20% fall in rents.
Six levels of AA Centre at River Valley
Road up for sale by expression of interest
Together, the first six levels of freehold AA
Centre at River Valley Road is asking for $90-
100 million. The 32 vacant serviced
apartments on these levels have a total strata
area of 55,574 sq ft and are part of a 14-
storey mixed-used development on a
SINGAPORE PROPERTY WEEKLY Issue 58
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33,751-sq-ft site with a 127,712 sq ft gross
floor area. The building also includes 90 car
parking lots located in the basement level for
common use. Zoned for residential use with
an allowable plot ratio of 2.8, the site can be
built up to 10 storeys. The expression of
interest closes on Aug 7.
Suburban condos above 506 sq ft saw
1.9% price increase
According to NUS's Singapore Residential
Price Index (SRPI) series, the sub-index for
the Non-Central Region (excluding small
units) increased by 1.9% from December
2011 to May 2012 while the sub-index for
small units (up to 506 sq ft) islandwide and
the Central Region (excluding small units) fell
by 0.1% and 2% respectively. This may be
due to the demand for completed suburban
apartments from owner occupiers and
investors catering to expats with a smaller
budget. Units in the Central Region, however,
are mainly catering to investors and foreigners
with deeper pockets affected by the ABSD
and the negative global economic outlook.
Shoebox apartments remain attractive since
their lump sum price is more affordable. The
overall SRPI increased 1.5% in May from
April, with the sub-index for small apartments
islandwide having increased by 0.9% and the
sub-indices for the Central Region and Non-
Central Region having increased by 0.8% and
2.2% respectively.
99-year Pheng Geck private condo site
draws $114.8m top bid
The site located at Pheng Geck Avenue near
Potong Pasir MRT Station attracted a total of
13 bids with the winning bid of $114.8 million
or $628.22 psf ppr from Santarli Corporation.
The high number of bids reflects the
developers' confidence in sustained demand
SINGAPORE PROPERTY WEEKLY Issue 58
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for developments near MRT stations. There is
also a parcel of land opposite the plot which is
zoned for commercial development and it
could support a shopping mall the size of Nex.
Santarli plans to launch a 240-unit 18-storey
development with mainly two and three-
bedroom units and some one- and four-
bedroom units in nine months. The estimated
breakeven cost and average selling price are
around $1,000 psf and $1,300 psf
respectively.
Faber Drive Bungalow up for sale at
$12.5m
A two-storey bungalow with a swimming pool
sitting on an 11,719 sq ft land at Faber Drive
is up for sale by expression of interest, with an
indicative price of $12.5 million or $1,067 psf.
Located near The Clementi Mall, Clementi
Bus Interchange/ MRT Station, and the
National University of Singapore, the plot
could be subdivided subdivided into two
smaller plots with houses of at least 4,305 sq
ft. The expression of interest will close on July
20 at 3pm.
Commercial
Bugis Cube units selling well
85% or 77 out of the 91 units launched at 999-
year Bugis Cube have been sold, with an
average unit size of 355.2 sq ft. The
remaining 14 units (27 sq m to33 sq m on
average) can be found on the second and
third floor. The development located opposite
Bugis Junction and near Bugis Junction offers
units ranging from 129 to 635 sq ft at $2,900
to $7,500 psf over six floors. Each unit offers
a water point while F&B units will come with a
grease trap.
Office capital values to fall by 5% in 2012
The average capital values of Grade A office
space in the Raffles Place/New Downtown
SINGAPORE PROPERTY WEEKLY Issue 58
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micro-market fell by 0.5% from $2,459 psf in
Q1 to $2,447 psf by end June though the
market has been seeing much activity from
new releases and en bloc sales of strata
office units. The whole of 2012 could see a
5% fall in office capital values.
Meanwhile, rents of Grade A office space
islandwide fell by 1.2% in Q2, with the
average monthly gross rents in the Raffles
Place/New Downtown micro-market
decreasing by 3% to $9.47 psf from Q1 to Q2
and rents in other micro-markets adjusting in
the range of -2.4 - 0% in Q2. The rents are
likely to fall by up to 15% in 2012, especially
with the increase in supply of 150,000 sq ft of
space released upon lease expiry.
Shadow office space on the rise
The stock of shadow office space has
increased by 32% to 285,000 sq ft from Q1 to
Q 2012 and is expected to grow by 73,000 sq
ft to 360,000 sq ft at the end of this year. 48%
of the 285,000 sq ft shadow space in Q2 was
in Raffles Place where the average gross
face rent for prime office space fell by 3.1% to
$9.50 psf per month from Q1 to Q2. Rents on
Shenton Way, Robinson Road and Cecil
Street fell 2.6% to $7.55 psf per month in the
same period. The rents in the CBD are likely
to continue falling despite the below-average
net increase in supply of 1.1 million sq ft of
office space in 2012 since nearly 610,000 sq
ft of existing office space will become
available as occupiers vacate their current
premises. The average occupancy rate for
office space at Raffles Place fell 0.7
percentage points in Q2 to about 92% while
the average occupancy rate on Shenton Way,
Robinson Road and Cecil Street rose by 1.3
percentage points to 95% in Q2. The largest
increase of 4.5 percentage points came from
Marina Bay to 72%.
SINGAPORE PROPERTY WEEKLY Issue 58
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Singapore Property Prices Defy Gravity to Reach an All-Time High
By Mr. Propwise
From the URA’s recent flash estimate of the
2Q2012 Private Residential Property Price
Index (PPI), property prices have managed to
defy gravity and even managed to register a
slight increase in the quarter. The 2Q2012
URA PPI hit 206.8 and was up 0.4% on a
quarter-on-quarter basis.
At the current levels the price index is 16.5%
above the previous 2Q2008 peak, and 14.0%
above the previous all time high in 2Q1996.
This estimated increase of 0.4% comes after
the rate of growth of the PPI had slowed for
nine consecutive quarters (i.e. property price
growth had been decelerating continuously),
followed by a slight decline in 1Q2011.
Figure 1 – URA Property Price Index
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It appears that the strength of property
demand has outweighed concern over the
slowing economy, the worrying global
economic situation especially with the troubles
in Europe and weak growth in the US, and the
dampening effect of multiple rounds of
government measures.
The rate of price growth differed across the
various market segments. In the Core Central
Region, prices of non-landed private
residential properties increased by 0.6%
versus a decrease of 0.6% in the previous
quarter. Prices were flat in the Rest of Central
Region, while they increased by 0.4% in the
Outside Central Region, a slowdown from the
1.1% increase in the previous quarter.
Do note that the URA’s flash estimates are
compiled based on transaction prices given in
caveats lodged during the first ten weeks of
the quarter. The actual second quarter
statistics will be updated four weeks later, and
past data have shown that the difference could
be significant, especially when the change is
small.
Sharp Decline, Gradual Decline, or
Recovery?
Figure 2 – Change in Property Price Index
SINGAPORE PROPERTY WEEKLY Issue 58
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The uncertainty is whether we will see a
sharp decline as during the 1997-1998 Asian
Crisis and 2008-2009 Financial Crisis,
whether it will be a more gradual decline as
we saw during the 2000-2004 Post-Dotcom
Bubble and SARs era, or whether we will
have a continued property bull market.
I believe that we will only see significant
levels of price declines if there is an external
crisis to cause a sense of panic, which we
had in each of the previous 3 declines (e.g.
Asian Crisis, Dotcom Bubble, Global
Financial Crisis). This is because the
abundant global liquidity situation could
support Singapore property prices. Led by the
European Central Bank and Fed,
governments around the world have been
easing monetary policy and keeping interest
rates low to prevent another crisis triggered
by too much debt.
Figure 3 – Straits Times Index
We saw the Straits Times Index (STI) correct
in May to a low of 2,737 points, followed by a
recovery in June to 2,878. Even then, it is still
down 4% versus the last quarter. If you
believe that the stock market is a leading
indicator for the property market, then we
could see downward pressure on property
prices in the coming quarters.
SINGAPORE PROPERTY WEEKLY Issue 58
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Additional Rounds of Property Cooling
Measures?
The sales volume of new residential homes
by developers fell by 23% in May after a 12%
fall in April. This suggests that the prices of
new homes are likely under some pressure,
especially given that the NUS monthly resale
price index was up in April to May. Thus even
if the prices of new launches correct, the
strengthening prices of resale units could take
up the slack.
This resilience of property prices despite the
previous five rounds of government measures
increases the probability of a sixth round of
property measures to further cool sentiment.
This is especially so given that the harsh
Additional Buyer’s Stamp Duty (ABSD) put in
place in December 2011 seems to have not
dampened sentiment that much. It is not clear
right now whether a potential sixth round of
cooling measures would comprise merely of
refinements to the current measures (e.g.
increase ABSD?) or be something brand new.
Many analysts are still predicting a 10% drop
in property prices this year. Given that
property prices for the first half of 2012 are
still marginally up, these forecasts may not
come true unless there is a significant
correction in the coming months.
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SINGAPORE PROPERTY WEEKLY Issue 58
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Non-Landed Residential Resale Property Transactions for the Week of Jun 13 – Jun 19
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 EMERALD GARDEN 926 1,500,000 1,620 999
4 CARIBBEAN AT KEPPEL BAY 1,281 1,850,000 1,444 99
4 MOUNT FABER LODGE 3,703 4,520,000 1,221 FH
4 TERESA VILLE 1,356 1,528,000 1,127 FH
5 THE PARC CONDOMINIUM 667 880,000 1,319 FH
5 BOTANNIA 1,561 1,785,000 1,144 956
5 THE SPECTRUM 1,119 1,250,000 1,117 FH
5 BLUE HORIZON 926 968,000 1,046 99
5 VARSITY PARK CONDOMINIUM 1,894 1,920,000 1,013 99
5 FABER CREST 1,141 1,080,000 947 99
5 PARK WEST 872 825,000 946 99
5 VISTA PARK 710 670,000 943 99
7 THE BENCOOLEN 883 1,150,000 1,303 99
9 HELIOS RESIDENCES 2,002 6,961,100 3,477 FH
9 THE PATERSON EDGE 840 2,000,000 2,382 FH
9 SCOTTS HIGHPARK 1,744 3,900,000 2,237 FH
9 CAIRNHILL CREST 1,733 3,000,000 1,731 FH
9 URBANA 1,313 2,200,000 1,675 FH
9 RIVERSHIRE 1,690 2,780,000 1,645 FH
9 UE SQUARE 1,485 2,200,000 1,481 929
9 PEACE CENTRE/MANSIONS 2,605 1,775,000 681 99
10 CUSCADEN ROYALE 936 2,300,000 2,456 FH
10 BOTANIC GARDENS MANSION 1,399 2,500,000 1,787 FH
10 SPRING GROVE 1,668 2,620,000 1,570 99
10 TANGLIN RESIDENCES 4,930 7,700,000 1,562 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
10 THE TESSARINA 958 1,390,000 1,451 FH
10 VALLEY PARK 1,216 1,750,000 1,439 999
10 GLENTREES 1,345 1,815,000 1,349 999
10 DUCHESS CREST 1,367 1,835,000 1,342 99
10 KELLOCK LODGE 893 1,190,000 1,332 FH
10 CASABELLA 2,131 2,570,000 1,206 FH
10 JERVOIS JADE APARTMENTS 1,044 1,220,000 1,168 99
10 JERVOIS JADE APARTMENTS 1,141 1,310,000 1,148 99
10 JERVOIS JADE APARTMENTS 2,056 2,170,000 1,055 99
11 SOLEIL @ SINARAN 1,722 3,185,700 1,850 99
11 LION TOWERS 1,862 2,668,000 1,433 FH
11 AMANINDA 614 852,000 1,389 FH
11 MINBU VILLA 2,336 2,360,000 1,010 FH
11 THOMSON 800 1,787 1,780,000 996 FH
12 THE ARTE 1,873 2,290,000 1,223 FH
12 KIM KEAT LODGE 2,024 1,710,000 845 FH
12 BALESTIER POINT 3,961 2,710,000 684 FH
13 SENNETT ESTATE 1,033 750,000 726 FH
14 THE VINES 1,066 1,050,000 985 FH
14 ATRIUM RESIDENCES 1,044 970,000 929 FH
15 AMBER RESIDENCES 1,163 1,618,800 1,393 FH
15 VERSILIA ON HAIG 1,130 1,380,000 1,221 FH
15 SANCTUARY GREEN 1,399 1,600,000 1,143 99
15 COSTA RHU 1,345 1,380,000 1,026 99
15 NEPTUNE COURT 1,270 1,106,000 871 99
SINGAPORE PROPERTY WEEKLY Issue 58
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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
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
15 NEPTUNE COURT 1,636 1,355,000 828 99
15 LAGUNA PARK 1,615 1,328,000 822 99
16 COSTA DEL SOL 1,475 1,950,000 1,322 99
16 COSTA DEL SOL 1,238 1,510,000 1,220 99
16 BAYSHORE PARK 936 940,000 1,004 99
16 THE BAYSHORE 947 920,000 971 99
16 BAYSHORE PARK 936 890,000 950 99
16 THE BAYSHORE 1,012 953,000 942 99
16 LAGUNA GREEN 1,098 1,020,000 929 99
16 BAYSHORE PARK 936 850,000 908 99
16 BAYSHORE PARK 2,196 1,850,000 842 99
17 BLUWATERS 2 1,776 1,424,888 802 946
17 BALLOTA PARK CONDOMINIUM 1,066 820,000 769 FH
17 BLUWATERS 2 2,756 2,050,000 744 946
18 LIVIA 915 940,000 1,027 99
18 EASTPOINT GREEN 958 888,000 927 99
18 ELIAS GREEN 1,528 950,000 622 99
19 SUNSHINE LODGE 592 570,000 963 FH
19 KOVAN ESQUIRE 1,001 950,000 949 FH
19 KENSINGTON PARK CONDOMINIUM 2,250 1,950,000 867 999
19 RIO VISTA 1,055 900,000 853 99
19 RIO VISTA 1,249 970,000 777 99
20 GRANDEUR 8 1,259 1,245,000 989 99
20 SIN MING PLAZA 1,938 1,823,000 941 FH
20 THE GARDENS AT BISHAN 1,152 1,050,000 912 99
20 FAR HORIZON GARDENS 1,152 860,000 747 99
20 THOMSON IMPERIAL COURT 2,228 1,388,000 623 FH
21 GARDENVISTA 893 1,000,000 1,119 99
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
21 SIGNATURE PARK 1,367 1,380,000 1,009 FH
21 SIGNATURE PARK 1,055 1,020,000 967 FH
21 SHERWOOD TOWER 1,830 1,358,000 742 99
22 PARC OASIS 1,765 1,450,000 821 99
23 CASHEW HEIGHTS CONDOMINIUM 1,227 1,239,270 1,010 999
23 GUILIN VIEW 861 795,000 923 99
23 CASHEW HEIGHTS CONDOMINIUM 1,658 1,520,000 917 999
23 HILLVIEW RESIDENCE 1,238 1,075,000 868 999
23 CHESTNUT VILLE 1,658 1,340,000 808 999
23 NORTHVALE 1,270 970,000 764 99
23 PARKVIEW APARTMENTS 1,119 850,000 759 99
23 NORTHVALE 1,087 820,000 754 99
26 THOMSON GROVE 1,539 1,390,000 903 FH
26 CASTLE GREEN 1,152 930,000 807 99
27 YISHUN SAPPHIRE 1,206 840,000 697 99
27 YISHUN SAPPHIRE 1,184 800,000 676 99
27 YISHUN SAPPHIRE 1,313 845,000 643 99
28 MIMOSA PARK 1,755 1,430,000 815 FH
28 SUNRISE GARDENS 1,270 980,000 772 99