View
217
Download
0
Category
Preview:
Citation preview
8/10/2019 Singapore Property Weekly Issue 181
1/16
Issue 181Copyright 2011-2014 www.Propwise.sg. All Rights Reserved.
http://www.propwise.sg/http://www.propwise.sg/8/10/2019 Singapore Property Weekly Issue 181
2/16
ContributeDo you have articles and insights and articles that youd like to share
with thousands of readers interested in the Singapore property
market? Send them to us at info@propwise.sg , and if theyre good
enough, well publish them here, on our blog and even on Yahoo!
News.
AdvertiseWant to get your brand, product, service or property listing out to
thousands of Singapore property investors at a very reasonable
cost? Head over to www.propwise.sg/advertise/ to find out more.
CONTENTS
p2 Should You Buy a Property Before You Reach
55 to Use Up Your CPF?
p10 Singapore Property News This Week
p15 Resale Property Transactions
(October 22 October 28 )
Welcome to the 181st edition of the
Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
mailto:info@propwise.sghttp://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:info@propwise.sg8/10/2019 Singapore Property Weekly Issue 181
3/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 2Back to Contents
By Paul Ho (guest contributor)
For Singaporeans, reaching 55 years old
marks a major milestone from the perspective
of personal financial planning. At 55, you can
withdraw a portion of your Central Provident
Fund (CPF) savings. Yes, finally after years ofwaiting, you can use the money locked up in
your CPF!
But hang on before you start planning for
your next holiday destination or researching
your second property, reaching 55 does not
mean you can simply go to the CPF to
withdraw any amount you want. The CPF,
Singaporespension scheme, has other plans
for your funds.
Should You Buy a Property Before You Reach 55 to UseUp Your CPF?
8/10/2019 Singapore Property Weekly Issue 181
4/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 3Back to Contents
What happens to your CPF when you turn
55?
First, you need to make sure that you have
enough savings in your Special Account (SA)and Ordinary Account (OA) to make up the
Minimum Sum (MS) of $155,000 in your
newly set up Retirement Account (RA).
Up to 50% of the Minimum Sum (MS) can be
accounted for with your property if you had
used CPF savings to pay for your property.However, if you sell your property after 55,
any amount drawn down from the CPF
previously to purchase the property plus
accrued interest will now have to go back to
your CPF.
On top of that, there is still the Medisave
Account which has a mandated Minimum
sum of $43,500 which will have to be topped
up before any funds are withdrawn.
This means that the Total Minimum sum is a
whopping $198,500 (Minimum Sum (MS) +
Medical Minimum Sum (MMS) = $155,000 +
$43,500).
CPF Life a Compulsory National Annuity
Scheme
Most of the funds in your RA will be for a
compulsory national annuity scheme, also
known as CPF Life, which gives you a
monthly payout when you reach 65 for aslong as you live.
There are two plans:
a) CPF Life Standard Plan, which provides
higher monthly payouts and lower bequests;
and
b) CPF Life Basic Plan, which provides lower
monthly payouts and higher bequests.
8/10/2019 Singapore Property Weekly Issue 181
5/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 4Back to Contents
Under the CPF Life Standard Plan, the first
installment of your annuity premium of up to
$77,500 (or half the MS) will be deducted
from your RA.
And before you hit 65, the rest of your money
in the RA will go into the second installment of
your annuity premium.
This means that basically all the money in
your RA will go towards an annuity scheme
under this CPF Life Standard plan, whichhappens to be the default plan if you do not
select one.
Under the other plan, CPF Life Basic Plan, a
small portion of about 10% of your RA
savings will go into your first installment and
another portion will be made for the second
installment as you approach 65. The amount
of annuity premium deducted depends on
your age and gender.
Buy a Second Property Before 55 to
Protect Your CPF Money?
Many people have called us to enquire about
buying a second property using their CPF asthey are afraid that the money gets taken
away into Retirement account. Also the
controversies regarding how the CPF funds
are channeled by the government has
increased the anxiety of some.
Lets take the scenario of Mr. Tan who iscurrently 54 years old and evaluating whether
to buy a property. He currently owns a private
property. This property is used as a pledge for
50% of the Minimum Sum. He has the
following savings in his CPF:
Ordinary Account = $120,000
Special Account = $55,000
Medisave Account = $23,500
8/10/2019 Singapore Property Weekly Issue 181
6/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 5Back to Contents
At 55 years old, a Retirement Account would
be created. All the monies will be transferred
from the Special Account (SA) into the
Retirement Account (RA) and his Medisave
Account (MA) will be topped up. After this
transfer his account situation will look like
this:
Retirement Account = $155,000
Ordinary Account = $0
Special Account = $0
Medisave Account = $38,500 (Medisave
Minimum Sum is $43,500)
Only a $5000 withdrawal is possible.
There is still a Medisave Account (MA)Shortfall of $5,000.
However, only $5,000 can be withdrawn at 55
years old. This means that between 55 and
65 years old, there is practically no additional
income.
Many people who are now in their early 50s
and who have some CPF monies are
approaching us to discuss using their CPF
Ordinary account to buy another house. If
they buy a second house, they only need to
meet 50% of the Minimum Sum, which is
$155,000 * 0.5 = $77,500. Anything in excess
of $77,500 can be used. We can see this rulefrom the CPF website:
C. USE OF CPF TO PURCHASE MULTIPLE
PROPERTIES
If you already own a property bought with
your CPF and wish to buy another property
with CPF, you should take note that you may
do so only after you have set aside half of the
prevailing Minimum Sum in your Ordinary and
Special Accounts.
8/10/2019 Singapore Property Weekly Issue 181
7/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 6Back to Contents
The maximum amount of CPF you and you
co-owner(s) may use for your second and
subsequent property is capped at its VL.
* The Minimum Sum changes every July.
Please refer to the CPF website fo
information on the prevailing Minimum Sum.
(Source: CPF)
Mr. Tan, has $120,000 in his OA and $55,000
in his SA. In other words, since he already
has a private property as a pledge towards
the Minimum sum of $155,000, he can use
any sum of money in excess of $77,500 for
his second property purchase, provided it is in
the Ordinary account (OA).
$120,000 + $55,000 - $77,500 = $97,500.
Thus Mr. Tan can use $97,500 for his second
property purchase.
If this money is used ahead of him turning 55,
it does not go into the Retirement Account.
However buying a second property has the
following implications:
The Additional Buyer Stamp Duty of 7%
(for the second property) is a whopping
$70,000 of tax if the cost of the property is
$1 million.
His first property is used as a pledge and
upon sale of the property, proceeds from
the sale will go into topping up his CPFaccount together with accrued interest.
He can only borrow up to a reduced
Loan-to-Value of 50% (i.e. only 50% loan
size and 50% downpayment) if his first
residential property has an outstanding
loan.
Mr. Tan is already 54 years old. Hence the
loan eligibility is lower as the Total Debt
Servicing Ratio criteria is tough.
SINGAPORE PROPERTY WEEKLY I 181
8/10/2019 Singapore Property Weekly Issue 181
8/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 7Back to Contents
His loan tenure will be short at 10 to 11
years tenure (max 65 years old for 80%
loan). If he earns $10,000 a month, he
can only pass the TDSR if his loan
amount is around $656,000. He will need
another borrower to join him if he wants to
buy a dearer property.
SINGAPORE PROPERTY WEEKLY I 181
8/10/2019 Singapore Property Weekly Issue 181
9/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 8Back to Contents
Issues you should consider if you are
approaching 55
While a monthly payout in your old age
sounds good, having a substantial portion of
your savings being tied down for this
compulsory annuity scheme raises a few
issues worth considering:
Am I better off reinvesting the money on
my own?
Will I live long enough to be able to use
my hard earned money?
What can I do now to better plan for
myself financially?
Should I downgrade to a smaller flat since
funds received from the sale of property
now goes into meeting the MS in my RA?
Should I take the opportunity to buy
another property now to use up my funds
before all the money goes into my RA
when I reach 55?
Should I use my CPF to pay down my
existing housing loan (if it is not paid up in
full)?
Each individuals needs and aspirations are
different. And it helps if you think about these
issues so as to prepare yourself for this majormilestone.
Buying another residential property at 55 is a
major decision. The repayment commitment
is heavy given the short loan tenure. Apart
from that, you still have to do proper research
to make sure you are not overpaying.
SINGAPORE PROPERTY WEEKLY Issue 181
8/10/2019 Singapore Property Weekly Issue 181
10/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 9Back to Contents
Suggestions for the Government
While the governments plan to make
everyone compulsorily save for retirement is
legitimate, it places an undue strain on
citizens. Structural income inequalities need
to be sorted out. Part of the inadequacy in
retirement funds could be due to the low
returns from CPF funds. Hence the
government can explore ways to ameliorate
this shortfall this would ensure that
Singaporeans can live and age gracefully.
By Paul Ho, holder of an MBA from a
reputable university and editor of
www.iCompareLoan.com, Singapores first
Cloud-based Home Loan reporting platform
used by Property agents, financial advisors
as well as Mortgage brokers.
SINGAPORE PROPERTY WEEKLY Issue 181
http://www.icompareloan.com/http://propertymarketinsights.com/http://www.icompareloan.com/http://www.icompareloan.com/http://www.icompareloan.com/http://www.icompareloan.com/http://www.icompareloan.com/8/10/2019 Singapore Property Weekly Issue 181
11/16
SINGAPORE PROPERTY WEEKLY Issue 181
Singapore Property This Week
Page | 10Back to Contents
Residential
L u x u r y h o m e p r i c e s f e l l b y 1 0 % o v e r t h e
last year
According to Knight Franks Prime Global
Cities Index, luxury home prices in Singapore
have fallen by 10 percent, despite an average
of 4 percent growth in most other leading
cities, from September 2013 to September
2014. Nonetheless, luxury home prices have
also fallen in six other cities. For example,
luxury home prices in Hong Kong have fallen
by 1.1 percent. Market experts believe that
home prices in Singapore have fallen due to
the cooling measures that were implemented
in the recent years. Alice Tan from Knight
Frank predicts that prices for luxury homeswill continue to fall as transaction volumes are
typically low during the festive seasons at the
end of the year. Comparatively, in the United
States, annual prices have risen between 6.7
percent and 16.3 percent in cities such as Los
Angeles, San Francisco, Miami and New
York.
(Source: Business Times)
TR E R esidenc es pr iced at $1,560 psf
TRE Residences, which is located in
Geylang, will be sold at an average indicative
price of $1,560 psf when it is launched on
November 15. A 5 per cent early bird discount
will be offered during the launch.
SINGAPORE PROPERTY WEEKLY Issue 181
8/10/2019 Singapore Property Weekly Issue 181
12/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 11Back to Contents
With the discount, prices at TRE Residences
will start from $690,000 for a one bedroom
unit; $899,900 for a two bedroom unit; $1.179
million for a three bedroom unit and $1.38
million for a four bedroom dual key unit.Nicholas Mak from SLP International believes
that the average indicative pricing for TRE
Residences is steep compared to prices of
neighbouring projects. The condominium has
a 99-year leasehold and its unit sizes start
from 420 square feet to 947 square feet.
(Source: Business Times)
H D B r e s a le p r i c e s u p b y 0 .1 % m o n t h - o v e r -
m o n t h
In October, HDB resale prices rose by 0.1 per
cent from the previous month according to
SRX. Prices of executive flats increased by
0.8 per cent while prices of four room and five
room HDB flats fell by 0.4 per cent and 0.1
per cent respectively. Nonetheless, market
experts believe that the market will soften
further given that the governments cooling
measures have not been lifted. Yet, resale
volumes have improved in October from theprevious month by 5.7 percent as 1,553 HDB
flats changed hands in October this year.
According to SRX, this was the highest
monthly resale volume for 2014. Ong Kah
Seng from RSTResearch believes that high
resale volumes and the slight increase inprices show that buyers may be rushing to
close deals before the year ends.
(Source: Business Times)
The Terrace is launc hed
The Terrace which is located near Punggol
Waterway, has been launched at an average
indicative price that is between $770 and
$840 psf.
SINGAPORE PROPERTY WEEKLY Issue 181
8/10/2019 Singapore Property Weekly Issue 181
13/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 12Back to Contents
More specific quantum prices will be provided
by the developer, Kheng Leong, when closer
to the start of its e-application on November
21. The executive condominium comprises of
a total of 747 units. Unit sizes range from1,001 square feet for a three bedroom unit to
1,711 square feet for a penthouse unit. Ong
Kah Seng from RST Research expects 40
percent of The Terrace to be sold within the
first two months as it is priced reasonably. Not
only so, it is conveniently located nearamenities such as the upcoming Waterway
Point shopping mall.
(Source: Business Times)
H olland Park GC B t o be sold f or $30m
A brand new Good Class Bungalow at
Holland Park will be sold for $30 million, or
$1,989 psf. The property has a built up area
of 11,368 square feet and is freehold. The
bungalow has a pool, lift, five bedrooms and
is two storeys high. It has received its
Temporary Occupation Permit a few months
ago. Market experts believe that the asking
price of the bungalow is slightly high, givencurrent market conditions. Not only so, the
property is not situated in the top-tier Good
Class Bungalow area.
(Source: Business Times)
23 GC Bs sold t h is year
According to the Business Times, 23 Good
Class Bungalows (GCB) were sold this year
for a total of $526 million. This was only
slightly lower than last years tally of 29
transactions. Ku Swee Yong from Century 21
said that there is a steady demand for GCBs
because high-net-worth Singaporeans prefer
the low density environment of GCB areas.
SINGAPORE PROPERTY WEEKLY Issue 181
8/10/2019 Singapore Property Weekly Issue 181
14/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 13Back to Contents
Thus, the sale of GCBs is less affected as
compared to the sale of properties at Sentosa
Cove. This year, only 2 bungalows located at
the Sentosa Cove waterfront have been
transacted for a total of $27.5 million. This issignificantly lower than the $367 million that
was amassed from the sale of 18 bungalows
at Sentosa Cove last year.
(Source: Business Times)
S i t e a t S e r a n g o o n t o b e l a u n c h e d a s f i r s t G L S u n d e r n e w p o l i c y
From November 1, new rules to improve
productivity in the construction sector will be
rolled out. Under the new ruling, government
land sale (GLS) sites have to higher building
design and constructability standards. Also,
developers have to meet certain levels of
prefabrication. A site at upper Serangoon
Road will be the first GLS site that will be
affected by the new ruling. The site has a 99-
year leasehold and has a plot size of about
10,000 square meters. It can yield about 340
homes. Market experts believe that the sitewill attract about 10 bidders. Besides the
Serangoon site, other sites at Yishun and
Jurong have also been selected for
prefabricated pre-finished volumetric
construction (PPVC), which involves
assembling whole rooms that aremanufactured off-site. The Building and
Construction Authority (BCA) has said that it
is still identifying more GLS sites for PPVC.
Nicholas Mak from SLP International believes
that the increase in construction costs may
push GLS tender prices down or be passed
on to property buyers.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 181
8/10/2019 Singapore Property Weekly Issue 181
15/16
SINGAPORE PROPERTY WEEKLY Issue 181
Page | 14Back to Contents
Commercial
Oxley H ot el on auct ion
Oxley Hotel, which is located at Lorong 6
Geylang, is a freehold site that has eightstoreys. It has a plot area of 3,725 square
feet and a total gross floor area of 12,238
square feet. Its indicative price is $25 million
and has been put up for sale on auction. The
hotel has 56 guest rooms and has a gross
plot ratio of 2.8. It has been zoned forresidential or institution use in 2008. The
auction will begin on November 21. Grace Ng
from Colliers International believes that the
auction will attract many bidders as it is
unlikely for new hotel sites to be approved in
the vicinity.
(Source: Business Times)
R eit as w i l l engage regulat ors
The Reit Association of Singapore (Reitas)
has been formed by several real estate
investment trusts to promote the growth of
SingaporesReit sector. The association will
be helmed by nine committee members that
are from major Reits and sponsors such as
Mapletree, CapitaLand and Keppel. Reitas
aims to engage regulators and to educate
investors. According to market experts,
SingaporesReit market is the third largest in
Asia pacific, and as such, it is important to
manage the sector. Reitas has been
engaging MAS and IRAS on issues such as
tax exemptions for foreign-sourced income as
well as stamp duty remission for properties
sold to S-Reits. According to the Business
Times, Reitas will officially launch on
November 17.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 181
8/10/2019 Singapore Property Weekly Issue 181
16/16
S G O O ssue 8
Page | 15Back to Contents
Non-Landed Residential Resale Property Transactions for the Week of Oct 22 Oct 28
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 MARINA BAY SUITES 2,691 7,263,000 2,699 99
3 QUEENS 915 1,200,000 1,312 99
4 THE INTERLACE 5,253 3,560,000 678 99
4 CARIBBEAN AT KEPPEL BAY 1,227 1,930,000 1,573 99
5 HERITAGE VIEW 1,163 1,350,000 1,161 99
5 HERITAGE VIEW 969 1,170,000 1,208 99
8 KERRISDALE 1,270 1,400,000 1,102 99
8 KENTISH COURT 1,227 1,200,000 978 99
9 THE TATE RESIDENCES 3,208 7,150,000 2,229 FH
9 VISIONCREST 1,152 2,200,000 1,910 FH
9 MACKENZIE REGENCY 990 1,335,000 1,348 FH10 HOLT RESIDENCES 2,067 3,400,000 1,645 FH
10 LUSH ON HOLLAND HILL 1,561 2,618,000 1,677 FH
10 GLENTREES 1,711 2,460,000 1,437 999
11 PARK INFINIA AT WEE NAM 1,464 2,600,000 1,776 FH
11 THE PARK VALE 1,701 2,350,000 1,382 999
12 VISTA RESIDENCES 1,313 2,065,000 1,572 FH
12 ECOVILLE 1,184 1,380,000 1,166 FH
12 CASA FORTUNA 710 780,000 1,098 FH
13 ONE LEICESTER 958 1,200,000 1,253 FH14 SIMSVILLE 1,528 1,250,000 818 99
14 EUNOSVILLE 1,679 980,000 584 102
15 MARINE MEADOWS 1,690 1,950,000 1,154 FH
15 WATER PLACE 1,216 1,500,000 1,233 99
15 PALMERA RESIDENCE 893 1,050,000 1,175 FH
15 SUITES @ AMBER 474 738,000 1,558 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
16 COUNTRY PARK CONDOMINIUM 1,227 1,230,000 1,002 FH
16 TANAMERA CREST 1,206 1,130,000 937 99
17 DAHLIA PARK CONDOMINIUM 1,862 1,380,000 741 FH
17 LIGHTHOUSE 1,841 1,230,000 668 99
17 BALLOTA PARK CONDOMINIUM 1,421 900,000 633 FH
18 ELIAS GREEN 1,518 980,000 646 99
18 CHANGI RISE CONDOMINIUM 1,130 978,000 865 99
19 CHILTERN PARK 1,518 1,270,000 837 99
19 COMPASS HEIGHTS 1,755 1,250,000 712 99
19 SUNGLADE 1,001 1,180,000 1,179 99
20 BRADDELL VIEW 1,453 1,100,000 757 9921 FLORIDIAN 1,862 2,850,000 1,530 FH
21 SIGNATURE PARK 1,421 1,480,000 1,042 FH
23 CASHEW HEIGHTS CONDOMINIUM 1,658 1,550,000 935 999
23 TREE HOUSE 1,292 1,300,000 1,006 99
23 PALM GARDENS 1,938 1,300,000 671 99
23 HILLVIEW REGENCY 1,130 920,000 814 99
23 REGENT GROVE 1,173 858,000 731 99
23 NORTHVALE 1,087 820,000 754 99
25 CASABLANCA 1,184 990,000 836 9926 MEADOWS @ PEIRCE 1,830 1,976,400 1,080 FH
27 YISHUN EMERALD 1,152 880,000 764 9 9
NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority.Typically, caveats are lodged at least 2-3 weeks after a purchasersigns an OTP, hence the lagged nature of the data.
Recommended