MAKE BETTER DECISIONS...MAKE BETTER DECISIONS Bracing for the next lap Knight Frank’s Tan Tiong Cheng and Danny Yeo talk about how the 77-year-old property consultancy has changed

Property TakeIs this the year to reinvigorate the

residential market? EP4

Eye on PropertyMaking sense of the

property index EP6

Eat, Play, LiveBeyond the Chinese Festive Street Bazaar

EP10

Gains & LossesMillion-dollar profi ts made in District 10

EP13

A PULLOUT WITH

MCI (P) 043/03/2016 PPS 1519/09/2012 (022805)

Visit TheEdgeProperty.com to find properties, research market trends and read the latest news THE WEEK OF JANUARY 30, 2017 | ISSUE 764

M A K E B E T T E R D E C I S I O N S

Bracing for the next lapKnight Frank’s Tan Tiong Cheng and Danny Yeo talk about how the 77-year-old property consultancy has changed and how it continues to stay relevant in Singapore’s changing

economy. See our Cover Story on Pages 8 and 9.

EP2 • THEEDGE SINGAPORE | JANUARY 30, 2017

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PROPERTY BRIEFS

Lian Beng-led group offloads 79,500 sq ft office space at Prudential TowerA Lian Beng-led consortium has announced the sale

of 17 strata office units, or about 79,460 sq ft of office

space, at Prudential Tower (above) for $206.6 million.

The sale price works out to about $2,600 psf based on

the strata area. Prudential Tower sits on a site with a

balance lease term of 78 years.

According to sources, the buyer is said to be One

Tree Partners, a private-equity fund management firm

founded by Tan Shern Liang and Roy Tan.

The space being sold by Epic Land is part of the

230,700 sq ft that the consortium bought from Keppel

REIT in 2014 for $512 million, or $2,316 psf on stra-

ta area. The 230,700 sq ft space is located on Levels

1 and 10 to 29 (excluding part of Level 16), which

works out to 92.8% of the 30-storey office building.

Epic Land has been selling some of the office space

over the past few years. Following the sale of these 17

strata-titled units, Epic Land still owns about 60,000

sq ft of office space in the building. Lian Beng owns

32% of Epic Land. The other consortium members

are KSH Holdings, with 28%; KOP, 25%; and Centu-

rion Global, 15%.

Alexandra Technopark to undergo $45 mil AEIFrasers Centrepoint Asset Management will be spend-

ing $45 million to spruce up Alexandra Technopark

(above). According to FCAM, the asset enhancement

initiative will create a campus-like environment for

the working community at Alexandra Technopark.

The AEI will provide Alexandra Technopark with

more community-friendly spaces, a refreshed and con-

temporary look, and greater connectivity and integration.

There are also plans to create a more enjoyable work-

place environment. New amenities such as an ameni-

ty hub, futsal courts, exercise areas, barbecue pits and

end-of-trip facilities for cyclists will also be introduced.

“The AEI is expected to boost the market profile,

leasing appeal and long-term competitiveness of Al-

exandra Technopark, as well as elevate the tenant

experience at the property. All these will ultimately

increase the property’s contribution to [Frasers Com-

mercial Trust] and create long-term value for the trust,”

says Jack Lam, CEO of FCAM.

The AEI is scheduled to commence in mid-2017

and expected to be completed by mid-2018.

CoAssets invests RMB1 mil in Chinese crowdfunder Da Xian BingCoAssets, a Singapore-based and Australian-listed in-

vestment crowdfunding company, has acquired a 10%

stake in China’s crowfunding company Da Xian Bing

Internet Technology for RMB1 million ($206,755).

CoAssets says there is good potential and synergy

for the overlap between users because Da Xian Bing

targets product crowdfunding, whereas CoAssets is in

investment crowdfunding. The investment will give

CoAssets access to Da Xian Bing’s rapidly growing

user base of more than 300,000 users, who are famil-

iar with the concept of crowdfunding.

“It is a synergistic relationship, as both platforms

can grow together faster and unlock greater value

to users of both platforms. From CoAssets’ perspec-

tive, this investment will help us significantly grow

our reach within China,” says CoAssets’ co-founder

Seh Huan Kiat.

The company conservatively expects to increase

its user base in China by 300,000 within six months

of its investment in Da Xian Bing. The investment is

in addition to the CoAssets’ operations in China, via

its 40% joint venture with Fujian Yaosheng.

Chinese investors invests record US$33 bil in overseas real estate last yearChinese investment into overseas commercial and res-

idential property hit a record US$33 billion ($47 bil-

lion) last year, a 53% y-o-y increase, according to the

latest data from JLL’s Global Capital Flows.

Investment in land, offices and hotels account for

90% of all Chinese outbound capital in the last three

years. In 2016, the hotel and industrial sectors showed

the largest increase, owing to significant transactions

in the US in the form of portfolio sales and Chinese

appetite for industrial parks.

One of the biggest hotel acquisitions was made

by Anbang Insurance when it bought Strategic Ho-

tels and Resorts from US-based Blackstone Group for

US$6.5 billion.

“China Life Insurance has secured assets across

the hotel and office sectors with portfolio purchases

from the Starwood Capital Group and an office tower

in Manhattan; sovereign wealth fund Chinese Invest-

ment Corp has been active in the office sector in New

York as well,” says David Green-Morgan, research di-

rector for JLL’s Global Capital Markets.

Land acquisitions by Chinese investors made a come-

back last year, rising 44% y-o-y, following significant

transactions in Hong Kong, Australia and Malaysia.

Overseas investment aside, Chinese investors fur-

ther deepened their investment domestically. They

accounted for more than 86% of transactions in Chi-

na in 2016, up from about 75% in the past few years.

Tier-1 cities such as Beijing, Shanghai and Shenzhen

were most attractive to these investors, says JLL. —

Compiled by Michael Lim E

Hilton to franchise Tapestry hotels, fifth new brand since 2009

| BY HUI-YONG YU |

Hilton Worldwide Holdings intro-

duced its fifth new hotel brand

since 2009 in the latest bid by the

world’s second-largest lodging opera-

tor to increase earnings by franchising

properties.

The Tapestry Collection by Hilton

will be upscale hotels, in the same gen-

eral segment as the company’s Double-

Tree locations. Tapestry properties might

include a bar with food service and a

gym, but not necessarily restaurants or

meeting space.

Seven hotels in cities including Chi-

cago, Indianapolis and Nashville, Ten-

nessee, have signed letters of intent to

convert to Tapestry sites, and 35 oth-

er deals are in progress, Hilton said in

a Jan 23 statement. The first site will

open by 3Q2017, with a goal of 50 Tap-

estry hotels by 2020.

Hilton, which spun off its real estate

and timeshare business into new pub-

licly traded companies in December,

has sought to expand through franchise

and management contracts, rather than

acquisitions. The company last year in-

troduced Tru, a line of low-cost, fran-

chised hotels with hip decor.

“It’s easier to grow franchises than

to grow managed hotels,” says Thom-

as Allen, an analyst at Morgan Stanley.

“You’re basically just putting your brand

on the building.”

Having more brands allows Hilton to

expand in desirable locations where it

already has a presence, Allen says. The

company says it might manage some of

the Tapestry hotels in addition to earn-

ing franchise fees.

Tapestry is the second so-called soft

brand that Hilton has developed, fol-

lowing Curio, a collection by Hilton,

in 2014.

Under soft brands, individual hotels

have their own name and image apart

from the corporate manager or franchis-

er. Soft brands typically involve convert-

ing an existing hotel, such as boutique

properties that want to maintain their

own identity but rely on a global res-

ervations system, frequent-guest pro-

gramme and sometimes management

expertise. Examples include the Boul-

ders Resort and Spa, part of the Curio

brand, and the Cosmopolitan of Las Ve-

gas, managed by Marriott Internation-

al’s Autograph Collection.

Hilton, set to be 25% owned by Chi-

na’s HNA Group later this quarter, had

its “best year ever” last year and there

are signs that business travel, which ac-

counts for about 75% of total guests,

is improving, CEO Christopher Nasset-

ta said in a Bloomberg Television in-

terview on Jan 18 from the World Eco-

nomic Forum in Davos, Switzerland. He

said Hilton sees potential for an urban

micro-hotel brand and is “incubating”

five brands for introduction after 2017.

“It’s about organic growth,” Mark

Nogal, global head of Hilton’s Tapes-

try and Curio brands, says in a phone

interview.

Hilton now has 14 brands, including

one for timeshare properties. Hilton was

surpassed as the biggest hotel compa-

ny in September after Marriott acquired

Starwood Hotels & Resorts Worldwide

for US$14 billion ($20 billion), expand-

ing its brand roster to almost 30. —

Bloomberg LP E

FCAM

THEEDGE SINGAPORE | JANUARY 30, 2017 • EP3


PROPERTY TAKE

It has been an optimistic start to 2017 in

Singapore, as recent estimates from the

Ministry of Trade and Industry reveal that

the city state has sidestepped a technical

recession, posting 1.8% growth in GDP for

4Q2016, and an overall growth rate of 1.8%

for the year.

While this is gratifying news, we still face a

subdued economic outlook both globally and

domestically. In Singapore’s real estate sector,

the combination of slower employment, earn-

ings and population growth is impacting hous-

ing demand. Add to that expectations of rising

interest rates — thanks to likely hikes by the

US Federal Reserve — and the overall senti-

ment is fairly gloomy. Thus, house prices in

Singapore are under considerable downward

pressure. With this in mind, the residential

real estate market is likely to remain stagnant,

with cooling measures still in place alongside

ongoing slow economic growth.

In fact, according to flash estimates from

URA, private home prices in Singapore softened

further in 4Q2016 for the 13th consecutive

quarter, reaching their lowest level in six years.

This means homes today are at one of their

most affordable levels on record.

Based on JLL estimates, prime properties

have corrected 18% on average, while mass-

market prices have softened about 10%. Prices

for some residential projects, especially those

in prime districts, have corrected between 25%

and 30% since the height of the market in 2011.

Leading the way in cooling measures Since Singapore first introduced its policy

to cool the residential market in 2010, other

governments around the world have taken

similar steps to prevent rising prices caused

by low interest rates, high liquidity and the in-

creasing presence of overseas buyers. The in-

itiatives put in place here between 2010 and

2013 seek to reduce demand and increase sup-

ply by imposing transaction taxes on sellers

and buyers. The taxes, targeted at local specu-

lators, investors and overseas buyers, aim to

stop prices from escalating so they will remain

affordable for local residents, especially first-

time homebuyers.

The Additional Buyer’s Stamp Duty (ABSD)

has been effective in managing the inflow of

foreign capital and excessive local speculation.

It has greatly reduced demand, causing prices

to fall as household incomes increased. The

introduction of the Total Debt Servicing Ratio

in 2013 put a limit on the amount that could

be borrowed on all types of credit. TDSR has

significantly reduced the amount of debt avail-

able to finance the purchase of residential prop-

erty. Based on our analysis of household bal-

ance sheets, the level of mortgage liability to

a household’s cash holding has declined from

a record peak of 90% in 2002 and

2003 to 59% today.

Keeping housing available and

affordable for citizens is of criti-

cal importance, in the same way

as providing affordable education

and healthcare. Scarcity of land in

Singapore and its open economy

could easily drive home prices to

unaffordable levels if supply can-

not match demand.

But now, with smart policies

having delivered the desired effect,

it could be the right time to con-

sider measures that would allow

the residential market to resume a course that

will boost moderate growth.

Re-energising the residential marketMany potential homebuyers are clearly hold-

ing back because they believe the ABSD is

temporary and will be withdrawn or changed.

Reducing or removing ABSD for Singaporeans

and replacing it with a tax based on the in-

vestment period would be a sustainable way

to revive demand.

Raising the tax on residential investment

properties will steer buyers to evaluate their

capital investment against the long-term hold-

ing costs. Such costs in-

clude property taxes, asset

management and mainte-

nance fees and capital ex-

penditure on the property.

This will shift the invest-

ment decision towards the

longer term.

Adjusting ABSD would

remove a barrier, making it

easier for investors to return

to the residential market as

well as making it easier for

Singaporeans who are in-

terested in investing in the

local residential market to save for a rainy day

or retirement. With TDSR in place, we believe

it is unlikely that adjusting ABSD will create

excessive demand and cause prices to soar. It

will, however, bring some activity back into

the market and prevent prices falling further.

Overseas investmentOne of the consequences of the continued cool-

ing measures is that Singaporeans are looking

abroad for property investment in countries

such as Malaysia, Australia, Japan and the UK.

Data from the Monetary Authority of Singapore

indicates that the value of overseas property

purchases by Singaporeans reached a high of

over $2 billion in 2013, although it softened

to $400 million in 1H2015.

Investing in overseas residential markets can

offer good returns, but there is typically more

risk, relating to political, economic and cur-

rency factors. Investing in the country where

your existing and future liabilities are, and

where you will spend your retirement savings,

may be a less risky way to match assets with

liabilities. At the same time, the residential

market in Singapore is able to keep pace with

local inflation and offer real returns compared

with low-yielding bonds and fixed-income in-

vestments that are likely to struggle to offer

substantial returns in the foreseeable future.

Maintaining Singapore’s status as a global

city through an open and investment-friendly

environment — which includes encouraging

investment in residential real estate, while pre-

venting foreign capital from pushing up prices

to unaffordable levels — is a delicate balance.

But if some elements of the cooling measures

could be thawed, it would be particularly bene-

ficial for both the property market and the wider

Singapore economy.

Chua Yang Liang is JLL’s head of research for Southeast Asia

Is this the year to reinvigorate Singapore’s residential property market?

| BY CHUA YANG LIANG |

If some elements of the cooling measures could be thawed, it would be particularly beneficial for both the property market and the wider Singapore economy

JLL

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%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

6,000

5,000

4,000

3,000

2,000

1,000

0

Foreign buyers in Singapore residential market

0

2

4

6

8

10

12

14

16

18

20

Introduction of ABSD

Number of units purchased by foreignersProportion of foreign buyers

60

62

64

66

68

70

72

74

76

78

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

%

Singaporean buyers in local residential market

Number of units purchased by SingaporeansProportion of Singaporean buyers

Revision to ABSD and introduction of TDSR



EYE ON PROPERTY

Making sense of the price index

Actual q-o-q prices moved within a wide range*

URA could shed some light on which micro market led the rebound, or decline, in prices

* The q-o-q change in price was based on units located on the same stack with similar size and facing** After adjusting for floor level

Core Central Region

| BY FEILY SOFIAN |

The URA property price index may be

the official metric that monitors price

movements. However, property inves-

tors should be less preoccupied with

the price index, scrutinising for signs

of the market bottoming out.

First, an index that is bottoming out does

not imply an imminent market recovery. As

property prices are a function of income level,

price recovery would hinge on the prospects

of the Singapore economy. The latter should

be the primary concern of investors.

Conversely, history shows that the index

could rebound without showing signs of bot-

toming out. On several occasions, the index

had rebounded sharply without decelerating

to a slower decline. In 4Q1998, the price index

for private residential properties plunged 8.7%

q-o-q but rebounded 5.5% in the next quar-

ter. The same index spiked 15.7% in 3Q2009

following a 4.7% dip in the preceding quarter,

while many were still gripped by uncertain-

ties in the wake of the Lehman Brothers col-

lapse. Multiple factors such as interest rates,

population growth, occupancy rates and new

economic growth drivers would provide some

clues on the outlook of the residential market.

Price indices also do not reflect outliers that

are deep-value opportunities for investors. At

OUE Twin Peaks, a 1,399 sq ft unit on a high

floor was transacted at $3 million, or $2,150

psf, last November. The price was an outlier

as other buyers were willing to fork out up to

$3.8 million, or $2,698 psf, in December for a

mid-floor unit of similar size in the project. It

would likely have been a highly lucrative deal

for the buyer regardless of market conditions.

The index is also a broad indicator of price

movements. URA’s flash estimate shows the

price index for condominiums and apartments

in the high-end segment, or Core Central Region,

staying flat q-o-q in 4Q2016. However, based

on sale transactions in the CCR, the actual

price movements possibly had a wide range,

say between -5% and +4% q-o-q in 4Q2016

(see table).

At Soleil @ Sinaran, for example, an eighth

floor unit fetched $1,715 psf in 3Q2016. In 4Q, a

unit on the 13th floor was transacted at $1,660

psf, reflecting a 3% q-o-q decline. The price

PROJECT NAME 3Q2016 4Q2016

FLOOR PRICE FLOOR PRICE CHANGE LEVEL ($ PSF) LEVEL ($ PSF) (4Q VS 3Q)**

Duchess Residences 04 1,503 03 1,676 12

Zenith 09 1,246 06 1,345 9

Adria 03 1,675 10 1,814 6

Botanic Gardens View 07 1,489 09 1,560 4

Amaryllis Ville 12 1,350 27 1,469 4

Residences @ Evelyn 27 1,600 20 1,622 4

Amaryllis Ville 24 1,514 05 1,472 3

The Serenade @ Holland 13 1,161 19 1,210 2

Park Infinia At Wee Nam 09 1,725 05 1,741 2

Tomlinson Heights 20 2,866 30 3,014 2

Urbana 31 1,779 25 1,779 2

Ardmore II 21 2,520 30 2,619 1

Residences @ Evelyn 07 1,506 24 1,600 1

Newton 21 12 1,592 13 1,611 1

RV Residences 06 2,182 04 2,185 1

Thomson 800 14 1,223 12 1,220 0

Scotts 28 25 2,004 26 2,016 0

Cairnhill Crest 14 1,823 15 1,829 0

Tomlinson Heights 30 2,965 32 2,965 -1

Zenith 07 1,737 12 1,750 -1

Avalon 06 1,536 09 1,529 -1

Chelsea Gardens 04 1,535 05 1,515 -2

Orchard Scotts 03 1,438 07 1,427 -2

Icon 21 1,876 16 1,787 -3

Thomson 800 06 1,200 07 1,160 -4

The Sail @ Marina Bay 57 2,549 11 2,130 -4

Novelis 02 1,586 09 1,548 -4

Soleil @ Sinaran 08 1,715 13 1,660 -5

Soleil @ Sinaran 15 1,827 06 1,691 -5

Thomson 800 03 1,077 11 1,046 -5

Melrose Park 03 1,726 12 1,664 -6

Rivergate 25 2,234 18 1,990 -9

Leonie Suites 08 1,698 11 1,548 -10

Latitude 20 2,039 05 1,737 -11

PROJECT NAME 3Q2016 4Q2016

FLOOR PRICE FLOOR PRICE CHANGE LEVEL ($ PSF) LEVEL ($ PSF) (4Q VS 3Q)**

URA,

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decline would have been steeper — about 5%

— if the difference in floor level was taken into

account. The $1,660 psf was unlikely to be for

an inferior unit considering both units are locat-

ed on the same stack and hence, are similar in

size and facing. Perhaps there was a super stition

factor at play as the first unit was located on the

eighth floor while the latter was on the 13th floor.

At the other extreme, a seventh floor unit

in Botanic Gardens View changed hands at

$1,489 psf in 3Q2016. In 4Q, a unit on the

ninth floor of the freehold apartment in dis-

trict 10 went for $1,560 psf. This reflects a

price hike of 5% q-o-q. Again, both units are

located on the same stack. If the difference

in floor levels was taken into account, the

price hike would be slightly lower, about 4%.

Separately, the URA price index for apart-

ments and condos in the city fringe, or Rest of

Central Region, dipped 2% q-o-q in 4Q2016.

Actual transactions, however, showed pric-

es generally moving between -8% and +8%

q-o-q. In the mass-market segment or Outside

Central Region, actual transactions showed

prices moving between -7% and +3%.

As they are a broad indicator of price move-

ments, there had been occasions when price

indices were deemed inadmissible as a time

adjust ment factor in valuation for dispute re-

solutions, such as in determining land acquisi-

tion compensation. If the latest transaction in

the subject development had taken place some

years earlier, valuers might have to rely on the

price movements in comparable develop ments

rather than use the price index to adjust that

transaction to the current market value.

A robust index may be a good reflection

of market sentiment. How ever, any price

movement of less than 1% per quarter is

mild, regardless of whether it is moving in

a positive or negative direction. In 4Q2016,

the URA price index for apartments and con-

dos in the RCR dipped 2% q-o-q. Few mar-

ket watchers could offer insights into the

trend. In the event of a significant movement

in the price index, perhaps URA could offer

some insights on which micro market led

the rebound/ decline in prices.

SAM

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COVER STORY

| BY CECILIA CHOW |

In December, Knight Frank Singapore relocat-

ed from its office on the 30th floor of Hong

Leong Building. As it had been a tenant

there for 30 years, the move was captured

on video and uploaded to YouTube on Jan

11. Twin sisters and receptionists, Anne and

Irene Law, who have welcomed visitors to the

Knight Frank Singapore office for a decade,

shed tears as they left the premises.

A particularly poignant moment was when

Tan Tiong Cheng, Knight Frank Singapore’s

66-year-old executive chairman, took a lin-

gering look around before he switched off the

lights and bent down to lock the glass doors for

the final time. Tan had taken over the running

of Knight Frank Singapore in 1986 as manag-

ing director, the year the company moved to

Hong Leong Building.

“Thirty years ago, Hong Leong Building

was an attractive location — you could see the

port, and there was a clear view all the way

to the airport,” recounted Tan in an address

to his staff at the official move.

The 45-storey building at Raffles Quay was

developed by the Kwek/Quek family of Hong

Leong Group, one of Singapore’s richest fam-

ilies. Completed in 1976, it was a landmark in

the CBD for more than a decade.

‘A new start’The new Knight Frank office is now on the

eighth floor of Ocean Financial Centre. “It’s a

good number, good feng shui,” Tan said to his

staff when they moved in. “Let’s start [the new

year] on a positive note.” It also marked the

co-location of both the Knight Frank Singapore

and Asia Pacific headquarters, with the latter

moving from UOB Plaza 2.

The 43-storey Ocean Financial Centre is a

Grade A office tower completed in 2011 and

acquired by Keppel REIT for $261.6 million a

year later. It is a landmark at Collyer Quay and

Raffles Place, as it is the fourth generation of

the original Ocean Building, first built on the

same site at Collyer Quay in 1864.

Knight Frank’s new premises occupy a to-

tal of 14,000 sq ft and have all the trappings

of the modern-day workplace — open-plan

seating, hot desking, a communal area with

a state-of-the-art pantry, booth and lounge

seats, meeting rooms and video conferencing

facilities, as well as a quiet contemplation cor-

ner. “All Knight Frank’s offices in the region

— from Australia to Malaysia — are also pro-

gressively changing and updating their look,”

says Danny Yeo, 63, group managing director

of Knight Frank Singapore.

The office move in Singapore is also a sig-

nificant milestone, marking the change of

guard at the helm, with Tan stepping down

as executive chairman of Knight Frank Singa-

pore from March 31. He will then assume the

newly created position of president of Knight

Frank Asia Pacific, and adviser to Knight Frank

Singapore. Meanwhile, Yeo will become chair-

man of Knight Frank Singapore from April 1,

in addition to his existing role as group man-

aging director.

Preparing for the upturn“Apart from that, there’s very little change at

the top,” says Yeo. “We will continue to in-

ject new people who are very experienced in

the real estate business, and train and prepare

our staff for the next upturn.”

New additions to Knight Frank Singapore’s

senior management team include Tan Boon

Leong, who joined in March 2016 as execu-

tive director and head of industrial. A veter-

an of 23 years in the industrial space, he was

head and executive director of industrial ser-

vices at Colliers International.

Calvin Yeo also joined Knight Frank Singa-

pore last March as executive director and head of

office. Calvin, former deputy managing director

and head of office services at Colliers Interna-

tional, has 25 years of real estate experience, of

which 20 were spent in the office services sector.

Knight Frank’s new office hasan expansive clients’ lounge

KNIG

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Tan: There have been pretty aggressive bids at some of the recent land tenders, as most developers have depleted their land bank

Yeo: We will continue to inject new people who are very experienced in the real estate business, and train and prepare our staff for the next upturn

Bracing for the next lapKnight Frank’s Tan Tiong Cheng and Danny Yeo talk about how the 77-year-old property consultancy

has changed and how it continues to stay relevant in Singapore’s changing economy


COVER STORY

Wendy Low, former head of retail manage-

ment at Mapletree Investments, took on the

position of executive director and head of re-

tail at Knight Frank Singapore in April 2016.

Unexpected twistIn 2011, the seven shareholders of Cheong Hock

Chye & Co (CHC) divested 80% of their share-

holding in the company to Singapore-listed hos-

pitality and investment company LC Develop-

ment, later renamed LCD Global Investments.

Four years later, in February 2015, LCD Global

exercised its option to purchase the remaining

20% interest in CHC, giving it a 55% stake in

Knight Frank Singapore.

LCD Global itself became the subject of an

acquisition when Japan’s J Trust Group took

a 29.5% stake in the company in 2014. In Jan-

uary 2015, AF Global, a joint venture (JV) be-

tween listed jewellery retailer-turned-proper-

ty developer Aspial Corp and listed property

group Fragrance Group, controlled by brothers

Koh Wee Seng and James Koh Wee Meng

respectively, made a general offer for LCD

Global with a bid of $313.8 million.

AF Global and its various parties now hold

83.49% of LCD Global, and therefore have in-

directly become major shareholders of Knight

Frank Singapore. In April 2016, LCD Global

was renamed AF Global.

The change in ownership of LCD Global

itself was the unexpected twist in the plot for

the shareholders of Knight Frank Singapore

two years ago.

Tan and Yeo, the two biggest shareholders in

CHC, had agreed to stay on for five years until

end-2016, as part of the sale of their stakes to

the former LC Development in 2011. The re-

maining five shareholders in CHC were Lydia

Sng, Nicholas Wong, Mary Sai, Foo Suan Peng

and Low Kin Hon. Three of the five chose to

retire and they were Foo, managing director

of estate management; Sng, managing direc-

tor of advisory services; and Wong, executive

director of investment and capital markets.

Land acquisitionsKnight Frank Singapore will turn 77 this year.

Started by its eponymous founder in 1940 as

Cheong Hock Chye Pte Ltd, it was subsequent-

ly renamed Cheong Hock Chye & Co. In 1983,

CHC merged with Knight Frank to form Knight

Frank Cheong Hock Chye & Baillieu to carve

a bigger niche in the Singapore property mar-

ket. The company was renamed Knight Frank

Singapore in 1996, and was 55%-owned by

CHC and 45% by Knight Frank in the UK. The

latter still owns a 45% stake in Knight Frank

Singapore today.

The firm’s history has been closely en-

twined with that of Singapore’s for more than

half a century. When the Land Acquisition Act

was introduced in 1967, Knight Frank acted

on behalf of people whose properties were ac-

quired by the government to ensure that they

received adequate compensation. It was also

involved in the government’s first land sales

programme in 1967.

When URA conducted its first auction of

state land for residential development on Kew

Drive in the East Coast in 1992, Knight Frank

was the appointed agent. It was also the prop-

erty consultant to broker the first collective sale

in Singapore — Cosy Mansion, which was sold

for $24.7 million in 1994.

In 2012, when Pearls Centre was gazetted

for compulsory acquisition to make way for

the construction of the Thomson-East Coast

Line, Knight Frank represented the Singa-

pore Land Authority. In March 2013, SLA

announced that 241 of 243 of the owners

agreed to the compensation, and 174 out of

175 tenants accepted the government’s offer

of an ex-gratia payment.

Naturally, when Jurong Country Club was

acquired by the government two years ago

for the construction of the Singapore-Kuala

Lumpur high-speed rail (HSR) terminus, Knight

Frank was appointed to represent the club

members. Jurong Country Club has closed on

Dec 31, but it has filed an appeal over the

compensation amount that SLA offered last

year. The club wants $168.1 million, nearly

double the $89.8 million offer made by the

authorities for the acquisition of the 67ha site.

The appeal is still before the courts, with a

pre-trial conference fixed for Feb 15, according

to media reports.

Meanwhile, Raffles Country Club members

were equally taken by surprise on Jan 4 when

they learnt that the 143ha site with two 18-

hole golf courses would be acquired by the au-

thorities to make way for the Singapore-Kuala

Lumpur HSR project, the Cross Island western

depot and other transport-related uses.

According to sources, Raffles Country Club

members have also appointed Knight Frank to

represent them in the compulsory acquisition.

Picking up dealsWhile 2017 is expected to be a challenging year

for the real estate market, there are signs that

discerning investors have returned. “They are

already starting to pick up deals,” notes Yeo.

A case in point was Kheng Leong Co, the

private property company owned by former

banker Wee Cho Yaw and his family, who

paid $411.6 million for a 100% stake in Nas-

sim Hill Realty, the entity that owns the re-

maining 45 unsold units at The Nassim. The

purchase was made entirely in cash, accord-

ing to CapitaLand in an announcement on Jan

16. The Nassim is a 55-unit luxury freehold

condominium developed by CapitaLand and

completed in 3Q2015.

Jan 10 marked the close of the tender for

sale of the first residential site on the govern-

ment land sales (GLS) programme in 2017.

The residential site at Perumal Road, off Seran-

goon Road, has a land area of 41,417 sq ft

and maximum gross floor area of 173,953 sq

ft. It can be developed into a 200-unit condo

block with 5,382 sq ft commercial space on

the first level. At the close of the tender, there

were 11 bids, indicating strong participation

by developers. Listed construction group Low

Keng Huat won the site with a bid of $147.08

million, which translates to about $1,000 psf

per plot ratio.

Equally strong response was seen at the

close of the last two GLS tenders towards end-

2016: the sale of the site on Margaret Drive to

MCL Land in December, and the sale of the

site on Fernvale Road to a JV between listed

property groups Sing Holdings and Wee Hur

Holdings in September. The sites received

14 bids each.

“There have been pretty aggressive bids at

some of the recent land tenders, as most de-

velopers have depleted their land bank,” says

Knight Frank’s Tan. “They are therefore ac-

tively bidding at government land tenders.”

Developers in replenishment mode An alternative is to buy private redevelopment

sites via en-bloc purchases, but that can some-

times be a drawn-out process. Last May, for

instance, 82% of the owners of Shunfu Ville

had agreed to sell the 358-unit privatised HUDC

(Housing and Urban Development Co) estate

for $638 million, after the reserve price was

lowered from $688 million.

As five owners objected to the sale, the deal

had to obtain High Court approval. On Jan 4,

Qingjian Realty obtained High Court approval

to proceed with the en-bloc purchase of Shun-

fu Ville estate.

Other developers have chosen to pur-

chase redevelopment plots in private treaty

deals. Listed property developer UOL Group

announced on Jan 23 that it had been grant-

ed an option to purchase a 69,858 sq ft free-

hold site on Amber Road for $156 million

from privately held property developer Sin

Lian Huat Co.

Another listed property company, Roxy-

Pacific Holdings, said it has acquired a row

of five adjoining shophouses along Upper

Bukit Timah Road for $17 million. The free-

hold site with a land area of 10,256 sq ft and

plot ratio of 2.5 is zoned for residential de-

velopment.

Meanwhile, Knight Frank launched the first

collective sale of 2017. On Jan 17, it announced

that the owners of One Tree Hill Garden had

put it up for sale. It is a three-storey residen-

tial development with six maisonettes and

seven apartments sitting on a freehold site

of 39,063 sq ft. The site can be redeveloped

into a combination of 13 detached and semi-

detached houses.

Located within the exclusive housing area

of One Tree Hill, just off Grange Road, One

Tree Hill Garden is near the upcoming Orchard

Boulevard MRT station on the Thomson-East

Coast Line. The owners have indicated a price

tag of $72.8 million, which translates to $1,864

psf based on the land area. The tender will

close on Feb 28.

Local business sentiment remains weak, ac-

cording to a recent survey conducted by the

Association of Chartered Certified Accountants

and Institute of Management Accountants. “I

think most people are looking to see what the

Singapore Budget 2017 will bring,” says Knight

Frank’s Yeo.

KNIG

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Freehold One Tree Hill Garden, the first collective sale of 2017, is marketed by Knight Frank

Jurong Country Club, which was acquired by the government two years ago, is appealing the compensation by the authorities E


EAT, PLAY, LIVE

Chinatown — beyond the festive bazaar | BY MICHAEL LIM |

During the Lunar New Year, Singapo-

reans and tourists alike will head to

Chinatown to soak in the festive at-

mosphere: brightly decorated shops

selling Chinese New Year goodies,

the canopy of red lanterns hung across the

streets and the annual Chinatown Festive Street

Bazaar, which lasts for three weeks until the

eve of Chinese New Year.

This is the time when Chinatown — bor-

dered by North Bridge Road, Pagoda Street,

Temple Street, Smith Street, Sago Street and

Trengganu Street — is completely transformed,

and the whole area comes alive.

“You won’t feel the Chinese New Year fes-

tive spirit until you visit the annual China-

town bazaar,” says Mary Sai, Knight Frank

Singapore’s executive director of investment

and capital markets. “And this is the best time

for businesses located there — where they try

to capitalise on the crowd and gain as much

sales as they can.”

Several traditional shops in Chinatown have

been there for more than 20 years. They con-

tinue to remain popular today, says Sai, a fre-

quent visitor to Chinatown both in a personal

capacity and in the course of brokering sales

of shophouses there since the 1990s.

The shops include Lau Choy Seng, which

specialises in kitchen- and dinnerware, and

Mei Heong Yuen Dessert, both of which are

on Temple Street. Chop Tai Chong Kok Confec-

tionery, which specialises in mooncakes and

traditional Chinese New Year cookies, is locat-

ed on Sago Street. On New Bridge Road, there

are Thye Shan Medical Hall and the famous

Chinatown Festive Street Bazaar 2017 on the corner of Trengganu Street and Smith Street

Lau Choy Seng was established in 1948 and branched into supplying dining- and kitchenware in the 1970s

Chinatown Festive Street Bazaar 2017 in full swing on Temple Street

Lim Chee Guan bak kwa (sliced barbecued

sweet-and-savoury meat).

The old guards of ChinatownLau Choy Seng

Lau Choy Seng was established in October

1948 by Lau Chew Tat. The company had its

origins as a maker of wooden clogs, with Lau

working out of a small shop on Temple Street.

As his business expanded, he moved to bigger

premises at 38 Temple Street in the 1960s. In

The shop selling The Adventures of Tintin comics by Hergé as well as memorabilia is located on Pagoda Street

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EAT, PLAY, LIVE

The 100m-long Chinatown Food Street on the pedestrianised section of Smith Street opened in 2014 after a $5 million facelift

Buyers queue to buy barbecued pork at Lim Chee Guan’s store located on New Bridge Road

Chop Tai Chong Kok Confectionery has been at its Sago Street location since 1935

1970s, the Lau family diversified into the sup-

ply of kitchen- and dinnerware. By 1993, the

kitchen and dinnerware business had grown

so large that the business had to relocate to

its current premises in two neighbouring shop-

houses at 23 and 25 Temple Street.

European brands that have appointed Lau

Choy Seng as their distributor include UK’s Athena

(which manufactures tableware for hotels and

restaurants); Italian brand Bormioli Rocco

(supplier of glassware); and French brand de

Buyer (which manufactures stainless steel and

aluminium kitchenware and pastry making

utensils). The company has supplied kitchen-

and dinnerware to F&B establishments such

as Din Tai Fung, Harry’s as well as those at

Marina Bay Sands and Sofitel So Singapore.

Mei Heong Yuen Dessert

Located on the other end of Temple Street

is Mei Heong Yuen Dessert. The business is

a spinoff from Mei Heong Yuen Food Indus-

tries, famous for its Farmer Brand Ground-

nuts, which has been in Malaysia and Singa-

pore since the 1940s. It was the brainchild of

founder Lee Chit Heng. The company is also

an agent of London Roll cakes and Fruit Plus

Chewy Candies.

The business is now run by Lee’s daugh-

ters, Connie and Clara. They have diversified

the business to include traditional desserts un-

der Mei Heong Yuen Dessert, which specialis-

es in traditional Chinese desserts and the fa-

mous “Snow Ice”. The flagship store has been

at its current Temple Street location for more

than 15 years. The business has also expanded,

and there are now six Mei Heong Yuen Dessert

shops in Singapore.

Chop Tai Chong Kok Confectionery

A stalwart in Chinatown is Chop Tai Chong Kok

Confectionery, which was established there in

1935. It was founded by Tham Kai Chee, who

migrated to Singapore from Guangzhou, China

with his wife in 1930 in search of a better fu-

ture. Although he had no baking experience,

Tham learnt to make mooncakes. Before long,

there was a long queue outside his shop on

Sago Street as people waited in line to pur-

chase his freshly baked mooncakes.

The business is now in the hands of the

third generation, specifically Ham Weng Seng,

and the company continues to make traditional

Cantonese mooncakes. The business has also

expanded to five outlets as at 2015, reportedly

selling up to 30,000 mooncakes a day during

the Mid-Autumn Festival. Chop Tai Chong Kok

Confectionery now also bakes Chinese New

Year cookies such as Kueh Bangkit, Kueh Kapit

(“love letters”), cashew nut cookies and pine-

apple tarts.

Mei Heong Yuen Dessert, brainchild of the daughters of Mei Heong Yuen’s founder, is located on Temple Street

Tak Po Dim Sum Restaurant on Smith Street

Thye Shan Medical Hall

Founded in 1955 by the late Chan Chak Poey,

who migrated to Singapore from Guangdong

province, Thye Shan Medical Hall continues to

provide Chinese medicine and physician servic-

es. The shop has been at its New Bridge Road

location since 1955. Over the years, as China-

town has been modernised, the shop has bene-

fited from its location near the China town MRT

station and the pedestrianised Pagoda Street.

The company has four retail shops today as

well as its own line of herbal supplements and

medicated oils under the Thye Shan and Pin

Li brands. Its range of products now include

premium tonics, health supplements, herbal

tea and other health products.

Lim Chee Guan

Established in 1938 by the late Lim Kay Eng,

the outlet on New Bridge Road continues to

draw crowds during the Chinese New Year

period. The business has since expanded to

two other branches at People’s Park Complex

and ION Orchard under the second generation

headed by Lim’s son, Rod Lim, 63. The main

shop is located on New Bridge Road.

Shophouses remain sought-afterDespite the historic Chinatown district coming

to life twice a year — during Chinese New Year

and the Mid-Autumn Festival — the shophous-

es in Chinatown continue to be sought after

by investors, says Knight Frank’s Sai.

Last September, for instance, Fragrance Food-

stuff paid $20.5 million to purchase two adjoin-

ing shophouses on the corner of New Bridge

Road and Pagoda Street. The price translated

to $3,535 psf, based on a total gross floor area

of 5,800 sq ft for both shophouses. The seller,

who had bought them in June 2001 for $4.1

million ($2,366 psf), realised a gain of 400%.

The properties sit on a 99-year lease with

effect from January 1995, and therefore have

78 years remaining on them. Fragrance Food-

stuffs, which specialises in Chinese bak kwa,

has been renting the ground-floor premises

for its flagship store for more than 12 years.

Besides business operators such as Fra-

grance Foodstuffs, these shophouses are also

sought after by private-equity funds, family of-

fices and high net worth investors, says Sai.

Many of them are holding on to these proper-

ties for the long term and are in no hurry to

sell. Thus, there have been few transactions of

shophouses in Chinatown, she adds.

A freehold, 1,076 sq ft shophouse located

on Smith Street was sold in September 2016 for

$8.8 million ($8,208 psf). The seller had bought

it for $7.5 million ($6,996 psf) in March 2013.

Ground-floor units of shophouses in China-

town that have been leased to bak kwa shops, E

F&B outlets or goldsmith shops tend to com-

mand rental rates of $10 to $12 psf per month,

notes Sai. “These days, a lot of the landlords

are quite mindful of keeping their rental rates

competitive to keep their tenants and ensure

that the business can be sustained.”


EVENT

Learn with Wine

On Jan 12, The Edge Property held the second Learn with Wine event at

the Alex Residences sales gallery by UIC-Singland. Functioning as a know-

ledge transfer platform, the event facilitated the sharing of valuable tips

by real estate professionals. Subra M Suppiah, an advocate & solicitor

from Subra TT Law LLC, gave a presentation on “How to Achieve Suc-

cess through Self-Motivation”, while Francis Tan, an economist from UOB, shared

his insights on the market outlook for 2017. The evening ended with a tasting of

sparkling wines with Etienne Croset, business development & marketing associate

of The French Cellar.

Tan of UOB giving his talk on the market outlook for this year

Guests speaking with Jonathann Galay, business development & marketing associate of The French Cellar

Guests exploring French sparkling wines with Croset of The French Cellar

Subra from Subra TT Law LLC giving a presentation on ‘How to Achieve Success through Self-Motivation’

The event ended with a lo hei (prosperity toss), which symbolises abundance, prosperity and vigour UIC-Singland hosted the event at the Alex Residences Sales Gallery

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GAINS AND LOSSES

Non-landed residential transactions with contracts dated Jan 10 to 17 U

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Most profi table deals

Non-profi table deals PROJECT DISTRICT AREA (SQ FT) SOLD ON (2017) SALE PRICE ($ PSF) BOUGHT ON PURCHASE PRICE ($ PSF) LOSS ($) LOSS (%) ANNUALISED LOSS (%) HOLDING PERIOD (YEARS)

1 Grange Residences 10 2,669 Jan 12 2,566 Dec 27, 2012 2,840 730,000 10 2 4.0

2 The Waterside 15 2,400 Jan 17 1,358 Jan 21, 2011 1,541 440,000 12 2 6.0

3 The Sail @ Marina Bay 1 861 Jan 16 1,997 Nov 17, 2009 2,206 180,000 9 1 7.2

4 Rio Vista 19 1,055 Jan 12 766 Jun 15, 2012 853 92,000 10 2 4.6

5 One Fort 15 1,055 Jan 12 1,213 Sep 30, 2011 1,268 58,000 4 1 5.3

6 Euphony Gardens 27 1,044 Jan 11 709 Jul 4, 2011 737 30,002 4 1 5.5

7 Castle Green 26 1,302 Jan 11 699 Dec 28, 2012 705 8,000 1 0.2 4.0

8 Tropical Spring 18 1,389 Jan 13 828 Mar 2, 2011 828 0 0 0 5.9

Note: The profit and loss computation excludes transaction costs such as stamp duties;URA caveat record downloaded on Jan 20 and 24

A 2,852 sq ft unit at Grange Residences was sold for a $1.3 million profit on Jan 11

Million-dollar profits made in District 10| BY LIN ZHIQIN |

The sellers of two separate private non-landed homes in

prime District 10 reaped profits of more than $1 million

each on Jan 11. The larger profit of $1.32 million accrued

to a 2,034 sq ft unit at The Boulevard Residence; the

smaller profit accrued to a unit at Grange Residences.

The seller of The Boulevard Residence unit bought it at

$1,515 psf from the developer in 2005 and sold it at $2,163

psf. This translates into a 43% gain, or 3% annually over a

12-year holding period.

The Boulevard Residence is a freehold development locat-

ed near Orchard MRT station. It comprises 46 apartments and

was completed in 2005. Prices at The Boulevard Residence

peaked in 2007, when there were 12 transactions at an aver-

age of $2,911 psf. There were no transactions last year and

the sole transaction in 2015 was at $2,409 psf. Monthly rent

for three-bedroom units measuring between 2,000 and 2,100

sq ft at The Boulevard Residence averaged $8,571 in 2H2016.

Over at Grange Residences, the seller who reaped a $1.3

million profit bought the 2,852 sq ft unit at $2,454 psf in 2007

and sold it at $2,910 psf on Jan 11. This works out to a 19%

profit, or 2% annually over 10 years. The same unit fetched a

$2.75 million profit for a previous seller, who bought it from

the developer at $1,490 psf in 2004.

Grange Residences is a freehold condo located near the

upcoming Orchard Boulevard MRT station. It comprises 164

units and was completed in 2004. Prices at Grange Residences

peaked in 2013 when three units were transacted at an aver-

age of $2,858 psf. In 2016, six units were transacted at an av-

erage of $2,336 psf. Monthly rent for four-bedroom units sized

between 2,800 and 2,900 sq ft at Grange Residences averaged

$14,718 in 2H2016.

On Jan 12, another unit at Grange Residences was sold

at a $730,000 loss. The seller bought the 2,669 sq ft unit at

$2,840 psf in 2012 and sold it at $2,566 psf after a holding

period that just crossed the four years stipulated under the

seller’s stamp duty rules. The loss works out to 10%, or 2%

annually. The same unit fetched profits for its two prior sell-

ers. The first seller, who reaped a $4.12 million gain, bought

it at $1,230 psf from the developer in 2004; the second seller

made a $180,000, or 2%, profit in 2012.

Based on the matching of URA caveat data, there have been

103 profitable and seven unprofitable transactions at Grange

Residences so far. The unprofitable transactions resulted in

losses ranging between $100,000 and $800,000, or between

2% and 12%, for the sellers.

The lowest psf price available for sale at The Boulevard Residence can be found at http://bit.ly/boulevardedge

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PROJECT DISTRICT AREA (SQ FT) SOLD ON (2017) SALE PRICE ($ PSF) BOUGHT ON PURCHASE PRICE ($ PSF) PROFIT ($) PROFIT (%) ANNUALISED PROFIT (%) HOLDING PERIOD (YEARS)

1 The Boulevard Residence 10 2,034 Jan 11 2,163 Apr 28, 2005 1,515 1,318,555 43 3 11.7

2 Grange Residences 10 2,852 Jan 11 2,910 Jun 13, 2007 2,454 1,300,000 19 2 9.6

3 Tiara 9 1,302 Jan 11 1,574 Mar 8, 2006 921 850,000 71 5 10.9

4 Amaranda Gardens 19 1,163 Jan 13 1,377 Dec 20, 2001 675 816,104 104 5 15.1

5 Caribbean At Keppel Bay 4 1,270 Jan 16 1,338 Nov 17, 2005 697 815,075 92 6 11.2

6 Queens 3 1,195 Jan 11 1,180 Feb 19, 2002 572 727,000 106 5 14.9

7 Lagoon View 15 1,647 Jan 12 692 May 20, 2004 264 705,000 162 8 12.7

8 Kovan Melody 19 1,690 Jan 12 828 Nov 8, 2006 509 539,900 63 5 10.2

9 The Glacier 15 1,335 Jan 13 1,056 Sep 2, 2009 674 510,000 57 6 7.4

10 The Stellar 5 1,313 Jan 12 1,108 Jul 21, 2008 740 483,380 50 5 8.5


Singapore — by postal district LOCALITIES DISTRICTSCity & Southwest 1 to 8Orchard/Tanglin/Holland 9 and 10Newton/Bukit Timah/Clementi 11 and 21Balestier/MacPherson/Geylang 12 to 14East Coast 15 and 16Changi/Pasir Ris 17 and 18Serangoon/Thomson 19 and 20West 22 to 24North 25 to 28

Residential transactions with contracts dated Jan 10 to 17

District 1

THE SAIL @ MARINA BAY Apartment 99 years January 16 861 1,720,000 - 1,997 2008 Resale

District 2

ICON Apartment 99 years January 16 570 988,000 - 1,732 2007 Resale

District 3

COMMONWEALTH TOWERS Condominium 99 years January 15 1,302 2,159,700 - 1,658 Uncompleted New Sale

HIGHLINE RESIDENCES Condominium 99 years January 12 635 1,320,100 - 2,079 Uncompleted New Sale

HIGHLINE RESIDENCES Condominium 99 years January 13 915 1,812,200 - 1,981 Uncompleted New Sale

PRINCIPAL GARDEN Condominium 99 years January 12 2,347 3,998,000 3,993,000 1,702 Uncompleted New Sale

PRINCIPAL GARDEN Condominium 99 years January 12 484 775,000 770,000 1,590 Uncompleted New Sale

PRINCIPAL GARDEN Condominium 99 years January 12 484 786,000 781,000 1,612 Uncompleted New Sale

QUEENS Condominium 99 years January 11 1,195 1,410,000 - 1,180 2002 Resale

QUEENS PEAK Condominium 99 years January 11 431 732,000 - 1,700 Uncompleted New Sale




LAND AREA/ NETT UNIT SALE DATE FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OFPROJECT PROPERTY TYPE TENURE (2017) (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE



THE CREST Condominium 99 years January 10 1,690 2,900,000 - 1,716 Uncompleted New Sale

District 4

CARIBBEAN AT KEPPEL BAY Condominium 99 years January 16 1,270 1,700,000 - 1,338 2004 Resale

District 5

BIJOU Apartment Freehold January 11 753 1,445,760 - 1,919 Uncompleted New Sale

PARC RIVIERA Condominium 99 years January 10 463 574,000 - 1,240 Uncompleted New Sale





PARC RIVIERA Condominium 99 years January 14 667 665,000 - 996 Uncompleted New Sale

THE STELLAR Condominium Freehold January 12 1,313 1,455,000 - 1,108 2008 Resale

THE TRILINQ Condominium 99 years January 10 1,044 1,457,000 - 1,395 Uncompleted New Sale

THE TRILINQ Condominium 99 years January 11 710 1,076,000 - 1,515 Uncompleted New Sale



THE TRILINQ Condominium 99 years January 12 710 1,071,000 - 1,508 Uncompleted New Sale



WEST COAST GARDENS Semi-Detached 956 years January 13 4,801 4,100,000 - 854 1982 Resale

WEST COAST GARDENS Terrace 956 years January 16 2,002 2,450,000 - 1,222 1976 Resale

WESTCOVE CONDOMINIUM Condominium 99 years January 11 1,098 830,000 - 756 1998 Resale

District 8

FORTE SUITES Apartment Freehold January 13 678 1,234,400 - 1,820 2016 New Sale

KENTISH GREEN Apartment 99 years January 12 1,324 1,180,000 - 891 1999 Resale

STURDEE RESIDENCES Condominium 99 years January 10 721 1,118,000 - 1,550 Uncompleted New Sale

District 9

CAIRNHILL PLAZA Apartment Freehold January 13 2,820 3,660,000 - 1,298 1978 Resale

LIV ON WILKIE Apartment Freehold January 10 560 1,286,000 - 2,298 Uncompleted New Sale



SOPHIA HILLS Condominium 99 years January 10 700 1,403,150 - 2,005 Uncompleted New Sale




THE RISE @ OXLEY Apartment Freehold January 15 667 1,572,000 - 2,356 Uncompleted New Sale

– RESIDENCES

TIARA Condominium Freehold January 11 1,302 2,050,000 - 1,574 1995 Resale


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DONE DEALS

Bulk purchase of units at Ascent @ 456| BY TAN CHEE YUEN |

A fortnight ago, the nine re-

maining units in the 28-

unit residential block of

Ascent @ 456 on Bales-

tier Road were sold to a

single buyer, according to caveats

lodged on Jan 12. The total purchase

price of the freehold units amount-

ed to $6.66 million, or an average

of $1,021 psf. The buyer is believed

to be an individual investor who is

not directly related to the directors

or substantial shareholders of the de-

veloper, TA Corp.

With the sale of these nine units,

the residential portion in the 12-storey

residential block of Ascent @ 456 is

now fully sold. Meanwhile, TA Corp

has decided to hold on to the 17 stra-

ta shop units in the retail podium for

lease. The mixed-use development lo-

cated at the junction of Balestier Road

and Jalan Rama Rama obtained Tem-

porary Occupation Permit recently.

Based on caveats lodged, four of

the nine units purchased were 689

sq ft, two-bedders sold for $665,488

($966 psf) to $703,910 ($1,022 psf).

The remaining five were compact

three-bedders of 753 sq ft that fetched

$769,338 ($1,021 psf) to $811,315

($1,077 psf).

The average price of $1,021 psf

reflects a bulk discount of about

30% relative to the earlier units sold

from 2014 to 2016, which averaged

$1,494 psf, according to caveats

lodged. For instance, 16 units sold in

2014 ranged in price from $987,500

($1,433 psf) to $1.2 million ($1,597

psf). Three units were sold last year

for $990,000 ($1,437 psf) to $1.2 mil-

lion ($1,593 psf).

Another project on Balestier Road,

VIIO at Balestier, saw an 840 sq ft,

two-bedroom unit sold for $1.27 mil-

lion ($1,516 psf) on Jan 11. VIIO at

Balestier is a redevelopment of the

former Leong On Building by con-

tractor-turned-developer Techkon,

which purchased the site for $92.3

million in December 2012.

When completed at year-end, VIIO

will have 56 residential units spanning

a seven-storey block sitting on top of

a three-storey retail podium with 22

strata shops. Most of the residential

units at VIIO are two-bedroom units,

with compact, standard and dual-key

options, and measuring 474 to 840

sq ft. The project also comprises 14

three-bedroom dual-key units meas-

uring 1,076 sq ft each. As at end-

December 2016, 24 units (43%) had

been sold at a median price of $1,559

psf, according to URA data. The sale of the nine remaining units at Ascent @ 456 means the 28-unit residential block is fully sold

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DISCLAIMER: Source: URA Realis. Updated Jan 24, 2017. The Edge Publishing Pte Ltd shall not be responsible for any loss or liability arising directly or indirectly from the

use of, or reliance on, the information provided therein.

EC stands for executive condominium

Residential transactions with contracts dated Jan 10 to 17


TIARA Condominium Freehold January 13 1,346 1,888,000 - 1,403 1995 Resale

URBAN SUITES Condominium Freehold January 13 2,045 5,150,000 - 2,518 2013 Resale

District 10

GRANGE RESIDENCES Condominium Freehold January 11 2,852 8,300,000 - 2,910 2004 Resale

GRANGE RESIDENCES Condominium Freehold January 12 2,669 6,850,000 - 2,566 2004 Resale

NAMLY AVENUE Semi-Detached Freehold January 16 3,229 4,800,000 - 1,488 Unknown Resale

THE ASANA Apartment Freehold January 11 764 1,668,000 - 2,183 Uncompleted New Sale

THE BOULEVARD RESIDENCE Apartment Freehold January 11 2,034 4,400,000 - 2,163 2005 Resale

THE EQUATORIAL Condominium Freehold January 16 1,249 1,800,000 - 1,442 2001 Resale

VIZ AT HOLLAND Condominium Freehold January 13 861 1,328,000 - 1,542 2008 Resale

District 11

6 DERBYSHIRE Condominium Freehold January 12 517 1,132,774 - 2,192 Uncompleted New Sale

HILL PARK Condominium Freehold January 12 5,942 10,600,000 - 1,784 2015 Resale

District 12

ASCENT @ 456 Apartment Freehold January 12 689 670,273 - 973 Uncompleted New Sale


ASCENT @ 456 Apartment Freehold January 12 689 703,910 - 1,022 Uncompleted New Sale







RIVERSIDE MELODIES Apartment Freehold January 12 1,076 1,377,000 - 1,279 2014 Resale

VIIO @ BALESTIER Condominium Freehold January 11 840 1,272,991 - 1,516 Uncompleted New Sale

District 13

JALAN BELANGKAS Semi-Detached Freehold January 16 3,757 3,050,000 - 811 1994 Resale

District 14

EUNOS MANSION Condominium Freehold January 12 1,292 1,050,000 - 813 1982 Resale

WING FONG MANSIONS Apartment Freehold January 10 700 400,000 - 572 1997 Resale

District 15

FIRST POINT SUITES Apartment Freehold January 10 1,819 1,700,000 - 935 2013 Resale

FLAMINGO VALLEY Condominium Freehold January 11 1,195 1,425,000 - 1,193 2014 Resale

IMPERIAL HEIGHTS Apartment Freehold January 17 452 600,000 - 1,327 2009 Resale

LAGOON VIEW Apartment 99 years January 12 1,647 1,140,000 - 692 Unknown Resale

MANDARIN GARDENS Condominium 99 years January 13 1,572 1,283,000 - 816 1986 Resale

MANDARIN GARDENS Condominium 99 years January 16 2,024 1,650,000 - 815 1986 Resale

LORONG M TELOK KURAU Detached Freehold January 12 8,977 7,100,000 - 791 1981 Resale

NEPTUNE COURT Apartment 99 years January 10 1,270 828,000 - 652 1975 Resale

ONE FORT Condominium Freehold January 12 1,055 1,280,000 - 1,213 2005 Resale

PALM OASIS Apartment Freehold January 12 753 880,000 - 1,168 2008 Resale

THE GLACIER Apartment Freehold January 13 1,335 1,410,000 - 1,056 2004 Resale

THE PALLADIUM Apartment Freehold January 17 2,034 2,550,000 - 1,253 2002 Resale

THE WATERSIDE Condominium Freehold January 17 2,400 3,260,000 - 1,358 1992 Resale

District 16

CHANGI GREEN Condominium Freehold January 11 1,335 1,280,000 - 959 1998 Resale

EAST MEADOWS Condominium 99 years January 16 1,227 1,080,000 - 880 2002 Resale

TANAH MERAH MANSION Condominium Freehold January 12 1,324 1,065,000 - 804 1984 Resale

THE BAYSHORE Condominium 99 years January 11 926 770,000 - 832 1996 Resale

THE GLADES Condominium 99 years January 10 990 1,388,000 - 1,402 2016 New Sale




THE GLADES Condominium 99 years January 15 624 980,000 - 1,570 2016 New Sale

District 17

FERRARIA PARK CONDOMINIUM Condominium Freehold January 17 1,195 955,000 - 799 2009 Resale

HEDGES PARK CONDOMINIUM Condominium 99 years January 10 872 825,000 - 946 2015 Resale

District 18

D’NEST Condominium 99 years January 12 1,410 1,322,880 - 938 Uncompleted New Sale

D’NEST Condominium 99 years January 13 1,270 1,292,460 - 1,018 Uncompleted New Sale

D’NEST Condominium 99 years January 14 1,410 1,330,000 - 943 Uncompleted New Sale

OASIS @ ELIAS Condominium 99 years January 12 1,302 980,000 - 752 2011 Resale

THE ALPS RESIDENCES Condominium 99 years January 13 1,066 1,079,000 - 1,013 Uncompleted New Sale

THE ALPS RESIDENCES Condominium 99 years January 14 700 722,000 - 1,032 Uncompleted New Sale

THE SANTORINI Condominium 99 years January 10 753 792,000 - 1,051 Uncompleted New Sale


THE SANTORINI Condominium 99 years January 11 1,421 1,477,000 - 1,040 Uncompleted New Sale








TROPICAL SPRING Condominium 99 years January 13 1,389 1,150,000 - 828 2002 Resale

VUE 8 RESIDENCE Condominium 99 years January 12 775 880,000 - 1,135 Uncompleted New Sale

District 19

A TREASURE TROVE Condominium 99 years January 12 1,044 1,070,000 - 1,025 2015 Resale


AMARANDA GARDENS Condominium Freehold January 13 1,163 1,600,888 - 1,377 2004 Resale

CHILTERN PARK Condominium 99 years January 16 1,098 1,010,000 - 920 1995 Resale

CHUAN PARK Condominium 99 years January 10 1,851 1,650,000 - 891 1984 Resale

FOREST WOODS Condominium 99 years January 14 743 1,036,000 - 1,395 Uncompleted New Sale

FOREST WOODS Condominium 99 years January 14 743 1,032,000 - 1,389 Uncompleted New Sale

KOVAN MELODY Condominium 99 years January 12 1,690 1,400,000 - 828 2006 Resale

PHILLIPS AVENUE Semi-Detached 999 years January 10 5,630 4,030,000 - 717 Unknown Resale

RIO VISTA Condominium 99 years January 12 1,055 808,000 - 766 2004 Resale

RIVERSAILS Condominium 99 years January 10 1,109 1,075,000 - 970 2016 Resale

SERANGOON GARDEN ESTATE Terrace 999 years January 11 2,799 2,600,000 - 928 Unknown Resale

SUITES @ PAYA LEBAR Apartment Freehold January 17 366 500,000 - 1,366 2013 Resale

THE MINTON Condominium 99 years January 12 1,216 1,220,000 - 1,003 2013 Resale

THE TEMBUSU Condominium Freehold January 13 1,367 1,878,500 - 1,374 2016 New Sale

THE TERRACE EC 99 years January 10 1,001 754,600 - 754 Uncompleted New Sale








THE VALES EC 99 years January 11 904 729,888 - 807 Uncompleted New Sale




VALVISTA Terrace 99 years January 11 1,733 1,800,000 - 1,037 2004 Resale

District 20

SKY VUE Condominium 99 years January 11 495 800,000 - 1,616 2016 Resale

THOMSON IMPRESSIONS Apartment 99 years January 11 732 1,062,500 - 1,452 Uncompleted New Sale

THOMSON IMPRESSIONS Apartment 99 years January 14 1,055 1,469,853 - 1,393 Uncompleted New Sale

District 21

SYMPHONY HEIGHTS Condominium Freehold January 13 926 950,000 - 1,026 1998 Resale

THE RAINTREE Condominium 99 years January 11 1,281 1,256,888 - 981 2008 Resale

District 22

LAKEVILLE Condominium 99 years January 13 1,442 1,719,638 - 1,192 Uncompleted New Sale

WESTWOOD RESIDENCES EC 99 years January 15 1,152 921,000 - 800 Uncompleted New Sale

District 23

GUILIN VIEW Condominium 99 years January 13 1,259 985,000 - 782 1999 Resale

HILLVIEW HEIGHTS Condominium Freehold January 11 1,432 1,500,000 - 1,048 1996 Resale

SOL ACRES EC 99 years January 14 710 601,000 - 846 Uncompleted New Sale


SOL ACRES EC 99 years January 14 1,044 841,000 - 805 Uncompleted New Sale



THE WARREN Condominium 99 years January 11 1,238 1,002,000 - 809 2004 Resale

VILLA VERDE Terrace 99 years January 13 2,637 1,850,000 - 702 2000 Resale

District 25

BELLEWOODS EC 99 years January 13 1,227 968,200 - 789 Uncompleted New Sale

District 26

CASTLE GREEN Condominium 99 years January 11 1,302 910,000 - 699 1997 Resale

District 27

EUPHONY GARDENS Condominium 99 years January 11 1,044 739,998 - 709 2001 Resale

PARC LIFE EC 99 years January 10 1,270 991,800 989,500 779 Uncompleted New Sale




SIGNATURE AT YISHUN EC 99 years January 12 1,184 997,000 - 842 Uncompleted New Sale

SYMPHONY SUITES Condominium 99 years January 10 689 759,000 - 1,102 Uncompleted New Sale




THE BROWNSTONE EC 99 years January 14 947 754,400 - 796 Uncompleted New Sale

THE BROWNSTONE EC 99 years January 15 883 731,200 - 828 Uncompleted New Sale

THE VISIONAIRE EC 99 years January 12 1,023 839,520 - 821 Uncompleted New Sale

THE VISIONAIRE EC 99 years January 12 872 701,910 - 805 Uncompleted New Sale

THE VISIONAIRE EC 99 years January 12 1,206 908,000 - 753 Uncompleted New Sale

THE WISTERIA Apartment 99 years January 14 969 1,082,312 - 1,117 Uncompleted New Sale

THE WISTERIA Apartment 99 years January 15 1,173 1,168,000 - 996 Uncompleted New Sale

District 28

FLORAVILLE Apartment Freehold January 11 818 910,000 - 1,112 Uncompleted New Sale

RIVERBANK @ FERNVALE Condominium 99 years January 14 1,044 1,052,000 - 1,008 Uncompleted New Sale

RIVERBANK @ FERNVALE Condominium 99 years January 15 1,012 980,000 - 969 Uncompleted New Sale

SELETAR HILLS ESTATE Semi-Detached Freehold January 12 3,068 2,330,000 - 760 1993 Resale

SELETAR PARK RESIDENCE Condominium 99 years January 10 872 1,060,000 - 1,216 2015 Resale

DONE DEALS


DEAL WATCH

Recent transactions at Spring Grove

CONTRACT DATE AREA (SQ FT) PRICE ($ MIL) PRICE ($ PSF)

Dec 16, 2016 1,012 1.400 1,384

Nov 20, 2016 1,012 1.528 1,510

Nov 14, 2016 1,012 1.380 1,364

Oct 18, 2016 1,012 1.470 1,453

Sept 21, 2016 1,012 1.380 1,364

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Recent rental contracts for 1,000 to 1,100 sq ft units at Spring Grove

LEASE DATE MONTHLY RENT

$ $ PSF

December 2016 3,000 2.90

December 2016 3,600 3.40

November 2016 3,900 3.70

November 2016 4,400 4.20

November 2016 4,000 3.80

October 2016 3,350 3.20

October 2016 3,400 3.20

The 325-unit Spring Grove was completed in 1996

Spring Grove unit going for $1,374 psf| BY TAN CHEE YUEN |

In the prestigious neighbourhood

of Grange Road, Spring Grove is

a rare 99-year leasehold condo

among freehold developments be-

cause the site has an interesting

history. The private condo, located

on a sprawling 263,513 sq ft site, was

once the residence of the US Ambas-

sador to Singapore.

The site was sold to property giant

City Developments in 1991 for $80

million on a 99-year lease for devel-

opment into Spring Grove. The US

government continues to own the

underlying freehold title on the site.

Spring Grove, which comprises

three 20-storey blocks with a total of

325 units, was completed in 1996. In

July 2014, the owners of the strata-

titled condo launched a collective

sale of the site, with Knight Frank

as the marketing agent. The reserve

price was set at $1.39 billion and in-

cluded $245 million payable to the

US government for topping up the

lease to 103 years. The reserve price

translates into a land price of $2,512

psf per plot ratio based on the maxi-

mum permissible gross floor area of

553,377 sq ft, according to Knight

Frank. The tender closed in Septem-

ber 2014 without any takers.

There was no resale of units dur-

ing the collective sale period in 2014.

The following year, however, some

owners of units at Spring Grove de-

cided to offload them in the resale

market. Prices of low- to mid-floor

units sold in 2015 ranged from $1,346

psf for a 1,787 sq ft, four-bedroom

unit to $1,680 psf for a 1,012 sq ft,

two-bedroom unit on the 15th floor

in separate blocks, according to ca-

veats lodged from April to December.

More units were offered for sale

in 2016. All five transactions cap-

tured by URA Realis from Septem-

ber to December were that of 1,012

sq ft, two-bedroom units. Transac-

tion prices ranged from $1.38 mil-

lion ($1,364 psf) for a unit on the

10th floor to $1.53 million ($1,510

psf) for one on the 18th floor.

Another 1,012 sq ft, two-bed-

room unit was listed for sale on The-

EdgeProperty.com at $1.39 million

($1,374 psf). “The owner wants to

exit in order to have options on the

market as more developers dangle

sweeteners to homebuyers,” says

Pearl Wong, a property agent from

PropNex Realty, who is marketing

the unit. It is tenanted at a monthly

rental rate of $3,500, which translates

into a gross yield of 3.8%, based on

the asking price.

The rental rate is in line with

market rates, which have ranged

from $3,000 to $4,400 per month,

based on leasing transactions over

the past three months, according

to URA data.

Visit tinyurl.com/DealWatch-S764

for more information. E

SAM

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Documents

MAKE BETTER DECISIONS...MAKE BETTER DECISIONS Bracing for the next lap Knight Frank’s Tan Tiong Cheng and Danny Yeo talk about how the 77-year-old property consultancy has changed