Singapore Property Weekly Issue 111

7/28/2019 Singapore Property Weekly Issue 111

1/13

Issue 111Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.
http://www.propwise.sg/http://www.propwise.sg/


2/13

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 [email protected] , 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 4 Impacts of the MAS Measures on

Mass Market Buyers

p7 Property Selling Tip #4: Seller Stamp Duty

p8 Singapore Property News This Week

p11 Resale Property Transactions (June 20 June 25)

Welcome to the 111th edition of the

Singapore Property Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:[email protected]


3/13

SINGAPORE PROPERTY WEEKLY Issue 111

Page | 2Back to Contents

By Gerald Tay (Guest Contributor)

After seven cooling measures and now

another shadow one again, I think many of

us are already immune by now, Another one

again! Whens the next one? From my

previous writings, Ive mentioned we do not

need a rocket scientist brain to comprehend

how hot we are in the property market cycle

with so many cooling measures from the

government.

As for the magic question To buy or not to

buy now, you should have known by now (I

hope you do) that if you are going to buy anyproperty today, you will be paying very

expensively. Unless you do really know how

to create value despite the high price you

paid for, oryoure drowning in cash,

4 Impacts of the MAS Measures on Mass Market Buyers


4/13



buying just about any property today is like

trying to walk across a field of landmines

without getting a leg blown off.

Poor returns for mass market buyers?

For many mass market buyers and investors

who bought into local new property launches

during the last two years to get better returns

than bank deposits, they would most likely be

disappointed with the pathetic rental yields

and capital gains if any in future, uponcompletion or T.O.P.

Some eager mass market buyers might say

that with all the strict property measures and

a tighter market, property developers today

are offering many freebies and discounts, so

they can benefit from a buyers market withlower prices. Surely, no logical mind will even

expect close to a good deal from a developer

in a hot market?! Buyers now might not know

what sucker looks like until they look at

themselves in the mirror.

Developers cashing in on mass market

frenzy

Property developers, like any other business,are in the business of making profits to

account to their shareholders they are not

some charity home dishing out free stuff for

nothing! Everything has a price to it and one

will be paying for it one way or the other. With

continued price increases from previousmonths and sell-outs of several property

projects, there is still a market for mass

market property developers to make good

money.

With strong holding power (especially for

large developers), coupled with low borrowingcosts for acquiring land and other capital

expenditures, there is no reason why any

property developer will want to miss out on

the tasty opportunity of cashing in on a


5/13



sucker mass buyer market, make easy

money and accumulate enough food before

the dreaded winter comes. Developers will

want to reap in as much profit as they can

now before a severe price correction, rise ininterest rates or market crash occurring. They

know it is not a matter of if it will happen, but

when.

Many middle class buyers will unfortunately

be slaving away in their jobs (if they still have

a job to keep later) to pay off their loans,

while the rich sellers and other vested interest

groups, will simply laze away in the Bahamas.

What it all means for mass market buyers

on the latest cooling measures:

1. Tighter credit availability meansrestriction in growth of future capital

gains, if any

Credit is the blood of any booming property

market. Like a blood transfusion, without

enough access to it, one is going to get blood

clots and heart attacks.

The MAS announcement even took pains to

emphasize that these rules are "structural in

nature", which means that they are here to

stay for the long term and will not be removed

even if there is a correction in the market

(unlike the LTV rules, which are flexible

depending on market conditions).

2. Retiring on future property gains is

nothing but a dream

If the latest measures are going to be

"structural in nature" for years to come, for

the many mass market property buyers

hoping to retire on their property gains, thismay turn out to be nothing more than wishful

thinking.


6/13



The concept of owning a home as an Asset

Enhancement for the middle class is no more

than mistaking lead for gold.

3. An even more limited pool of future

buyers in the market

If no one is going to buy or can afford to buy,

then who are sellers going to sell to? If

someone truly believes he/she can try their

luck and sell to some sucker foreign buyers

in the future, I suggest he/she goes to acasino instead to avoid a painstakingly slow

death in servicing losses. At least its faster

there. With the internet, many foreign buyers

are a lot more knowledgeable and savvy

today.

For the many new property projects that are

due for completion soon, many will face a

very limited pool of buyers. Those

speculators, who assume they will sell at

higher prices, will be sorely disappointed

when the current party ends.

For the mass market investors who cannot

sell or rent out their property at reasonable

yields and think that alternatively, they can

stay in it for themselves, they have to pray

hard they can remain in their jobs and be able

to afford to pay off the mortgage payments

and other expenses of the property when

interest rates rises.

4. Todays middle class consumers may

find it difficult to buy a good property

investment and grow their wealth when

the opportunity arises in future

The Total Debt Servicing Ratio is taken into

account when borrowing to buy a property. It

takes into account the monthly repayment

amounts for all (property and non-property)

loans of the borrower. In the case of joint


7/13



borrowers, the TSDR is computed based on

the total monthly debt obligations and total

gross monthly income of the borrowers.

A discount of 30% on all variable income (e.g.

bonuses and commission) and rental income

is applicable too.

For the middle class who have been spending

a large portion of their monthly income or

commissions to service their expensive car,

credit cards and other loans to leadconspicuous lifestyles in good times instead

of prudent investing or spending for an

uncertain future (i.e. spending tomorrows

money), this ruling may prove to be the knife

in the back for many of them.

Will the latest property measures cause amajor price correction?

Not yet. Rather than a simple demand and

supply equation, the dynamics that fuel our

unique property market works on many highly

complex and intricate factors, some of which

are unknown and not within the control of our

government policies.

These measures are implemented to

hopefully prevent any further price escalation

beyond reasonable levels and maintain a

stable property market. In the event of a

major price correction due to uncontrollable

economic factors, the government hopes to

prevent a market crash that may be

catastrophic to our fragile economy.

Well as they say, hope is not a guarantee.

By guest contributor Gerald Tay, CEO of

CREI Academy Group, who exposes widely-

held property investment myths that haveproven highly ineffective in creating wealth,

and prevent a comfortable retirement for the

ordinary investor.

SINGAPORE PROPERTY WEEKLY I 111
http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/


8/13



At the time of this writing, a Seller Stamp

Duty (SSD) is applicable for the below

situations:

(1) If you property is bought between 30

August 2010 to 12 January 2011, the

following SSD applies:

3% of price or market value if theproperty is sold within the first year.

2% of price or market value if the

property is sold within the second year.


property is sold within the third year.

No SSD when the property is sold after a

holding period of three years.

(2) If your property is bought on or after 13

January 2011, the following SSD applies:


property is sold within the first year.


property is sold within the second year.


property is sold within the third year.


property is sold within the fourth year.

No SSD when the property is sold after a

holding period of four years.

By Eileen Tan and Ui Wei Teck, property

investors and authors of Enjoying Mid-Life

Without Crisis. This tip and dozens more are

from theirbook.

Property Selling Tip #4: Seller Stamp Duty

SINGAPORE PROPERTY WEEKLY I 111
http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/http://aktive.com.sg/store/enjoying-mid-life-without-crisis/


9/13


Singapore Property This Week


ResidentialP ri v at e h o m e p r ic es i n c re as e i n s ec o n d

q u a r t e r

According to the Urban Redevelopment

Authority's second quarter flash estimates,

the private home price index increased by 0.8

percent from Q1, with a 3 percent increase

for non-landed home prices in suburban

areas. In Q1, the increase for private home

and non-landed home prices was 0.6 and 1.4

percent respectively. Property consultants

and analysts predicted a decrease in thevolume of transactions for private home in the

near future, but were reluctant to forecast any

drop in private home prices. At the same

time, the Monetary Authority of Singapore

took action to prevent loopholes previously

used to circumvent tighter loan-to-value limits

on second and subsequent housing loans

and longer-tenure loans.

(Source: Business Times)

H D B r e s a l e p r i c e g r o w t h i n Q 2 l o w e s t i n

o ve r f o u r ye a r s

HDB flat resale prices in Q2 have the lowest

growth in over four years, signaling signs of

stabilizing. HDBs resale price index (RPI)

showed only an increase by 0.5 percent, the

lowest since Q1 of 2009. It was reported thatcooling measures introduced in January and

an abundance of new flats were the two main

reasons for the halt.



10/13



The Mortgage Servicing Ratio (MSR) for HDB

flats was cut in January to 35 per cent of a

borrower's gross monthly income for loans

from 40 per cent previously, which was

thought to have reduced purchasing power ofHDB buyers and deflated the price growth

momentum. Resale price in Q2 was also held

down by an abundance of supply.


L o v e f o r p r o p e r ty d r i v e s u p d e b t l e v e l s

Singaporeans love for property has driven up

their debt levels to 75 percent of GDP,

doubling that of 38 percent in 2000. This is

considered high compared to other countries

in the region, except for Australia, Korea and

Malaysia. Housing loans in Singapore make

up 74 percent of total consumer loans. The

government has announced that it would take

action to ensure more prudent borrowing,

which, according to bankers, will have impact

on loan volumes yet its impact is to be

observed.


Commercial

Yi n g L i a p p o i n t s g r o u p C O O

Tan Kiang Hwee has been appointed as

group chief operating officer for Ying Li

International Real Estate Limited. Mr. Tan willbe based in Singapore first, before being

relocated to Chongqing next year, following

Ying Lis expansion into integrated

commercial property development in

Chongqing, particularly in central business

districts and urban renewal projects. Mr. Tansexperience in real estate spans more than 25

years, with his previous position as group

chief executive of building consultancy



11/13



Surbana Corporation, appointments in the

Housing and Development Board and the

Ministry of National Development.


R e n t a l g a p in r e t a i l sp a ce n a r r o w s

The rental gap in retail space between the

regional centers and Orchard Road has

narrowed, as average monthly gross rents of

prime retail space in Orchard Road declined

0.9 percent while regional centers gained 0.1

percent in Q2. This mean the price gap

between Orchard Road and the regional

centers narrowed even more from 10.1

percent in Q1 to 9 percent in Q2. Non-luxury

and fast-fashion sectors were reported to

move from Orchard Road to more suburban

locations, which have been dominated by

food and beverage operators. Despite

looming supply in the suburbs, landlords still

maintained their asking rents at $31.1 psf per

month. Orchard Road rents came in at $35.1

psf in Q2.


http://8-media.net/cmd.php?Clk=5063734


12/13



Non-Landed Residential Resale Property Transactions for the Week of Jun 20 Jun 25

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 MARINA BAY RESIDENCES 2,379 7,351,110 3,090 991 THE SAIL @ MARINA BAY 667 1,340,000 2,008 99

4 REFLECTIONS AT KEPPEL BAY 1,711 3,890,000 2,273 99

4 THE OCEANFRONT @ SENTOSA COVE 1,711 2,951,888 1,725 99

4 CARIBBEAN AT KEPPEL BAY 1,335 2,200,000 1 ,648 99

5 REGENT PARK 818 900,000 1,100 99

5 THE SPECTRUM 1,367 1,480,000 1,083 FH

9 GRANGE INFINITE 2,702 7,500,000 2,776 FH

9 RIVERGATE 1,744 3,430,000 1,967 FH

9 RIVERSIDE 48 904 1,550,000 1,714 FH9 PACIFIC MANSION 1,356 1,800,000 1,327 FH

10 ARDMORE PARK 2,885 10,200,000 3,536 FH

10 BELMOND GREEN 958 1,725,000 1,801 FH

10 MELROSE PARK 1,313 2,280,000 1,736 999

10 WILLYN VILLE 861 1,445,000 1,678 FH

10 THE TESSARINA 990 1,600,000 1,616 FH

11 BIRMINGHAM MANSIONS 1,066 1,540,000 1,445 FH

11 THOMSON 800 1,399 1,844,000 1,318 FH

12 TREVISTA 463 795,000 1,718 99

12 CASA FORTUNA 506 865,000 1,710 FH

12 SUITES @ TOPAZ 1,152 1,150,000 998 FH

12 ST MICHAEL'S CONDOMINIUM 1,432 1,380,000 964 FH

13 AVON PARK 2,174 2,826,000 1,300 FH

13 EURO-ASIA PARK 1,604 1,840,000 1,147 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

14 NICOLE GREEN 1,270 1,493,000 1,175 FH14 CASA EMERALD 1,055 970,000 920 FH

14 ASTOR 1,119 970,000 866 99

15 THE SEAFRONT ON MEYER 1,604 2,900,000 1 ,808 FH

15 MANDARIN GARDEN CONDOMINIUM 1,001 1,350,000 1,349 99

15 CALLIDORA VILLE 872 1,100,000 1,262 FH

15 ONE AMBER 3,046 3,800,000 1,247 FH

15 EMERALD EAST 1,195 1,480,000 1,239 FH

15 MANDARIN GARDEN CONDOMINIUM 732 860,000 1,175 99

15 VITRA 1,098 1,280,000 1,166 FH15 ONE @ PULASAN 872 938,000 1,076 FH

15 CHELSEA LODGE 1,442 1,500,000 1,040 FH

15 SIGLAP SHOPPING CENTRE 3,197 3,250,000 1,017 FH

16 COSTA DEL SOL 1,345 1,730,000 1,286 99

16 LANDBAY CONDOMINIUM 980 1,200,000 1,225 FH

16 CHANGI COURT 840 960,000 1,143 FH

16 THE BAYSHORE 947 985,000 1,040 99

16 BAYSHORE PARK 2,239 2,140,000 956 99

16 CASAFINA 1,378 1,220,000 885 99

16 EASTWOOD GREEN 1,141 1,000,000 876 99

17 CARISSA PARK CONDOMINIUM 1,324 1,190,000 899 FH

18 RIS GRANDEUR 1,066 1,060,000 995 FH

18 EASTPOINT GREEN 958 905,600 945 99

19 GOLDEN HEIGHTS 764 1,050,000 1,374 FH



13/13



NOTE: This data only covers non-landed residential resale property

transactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after apurchaser signs an OTP, hence the lagged nature of the data.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

19 KOVAN RESIDENCES 1,442 1,850,000 1,283 99

19 FONTAINE PARRY 1,238 1,525,000 1,232 999

19 SUNGLADE 1,044 1,245,000 1,192 99

19 KENSINGTON PARK CONDOMINIUM 1,658 1,900,000 1,146 999

19 KOVAN MELODY 1,518 1,700,000 1,120 99

19 THE SUNNYDALE 1,345 1,340,000 996 99

19 SUN ROSIER 2,077 1,940,000 934 FH

19 SIMON PLAZA 1,615 1,480,000 917 FH

19 EVERGREEN PARK 1,345 1,180,000 877 99

20 GRANDEUR 8 1,227 1,400,000 1,141 99

20 GRANDEUR 8 1,722 1,400,000 813 99

22 PARC OASIS 1,507 1,400,000 929 99

23 MI CASA 1,367 1,470,000 1,075 9923 PARKVIEW APARTMENTS 980 875,000 893 99

23 PARKVIEW APARTMENTS 936 820,000 876 99

23 PARKVIEW APARTMENTS 980 850,000 868 99

25 CASABLANCA 926 895,000 967 99

26 FOREST HILLS CONDOMINIUM 1,582 1,180,000 746 99
http://propertymarketinsights.com/

Documents

Singapore Property Weekly Issue 111