Singapore Property Weekly Issue 23

Issue 23 Copyright © 2011 www.Propwise.sg. All Rights Reserved.

http://www.propwise.sg/

Contribute Do you have articles and insights and articles that you’d like to share with thousands of readers interested in the Singapore property market? Send them to us at [email protected], and if they’re good enough, we’ll publish them here, on our blog and even on Yahoo! News.

Advertise Want 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 Singapore Property News This Week

p6 Recent Trends in the Singapore

Property Market

p11 Resale Property Transactions (October 8 – 14)

p13 Singapore Property Classifieds #13

Welcome to the 23th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise

FROM THE

EDITOR

mailto:[email protected]

http://www.propwise.sg/advertise/

http://www.propwise.sg/

SINGAPORE PROPERTY WEEKLY Issue 23

Singapore Property This Week

Page | 2 Back to Contents

Residential

EL Development launches DBSS project

Trivelis with high indicative pricing

888-unit Trivelis, developed under the Design,

Build and Sell Scheme (DBSS) at Clementi

Ave 4, consists of three 40-storey towers with

three-room to five-room flats, with more than

50 % being four-room flats. Prices of three-

room flats (646 sqft), four-room units (861 sqft

to 883 sqft) and five-room flats (1,130 sqft) will

range from $375,000 to $470,000, $530,000 to

$650,000 and$658,000 to $770,000

respectively. This is higher than the price of

resale flats, and rather close to executive

condominium (EC) prices. This may be due to

its location (proximity to MRT station and

schools), its height, the lack of competitors in

the area and the high demand in the HDB

market.

99-year leasehold Yishun EC site draws

$213.8m top bid.

MCC Land (Singapore) offered a top bid of

$213.78 million or $292.57psfppr for the

292,277.6 sqft site with a 730,693.9 sqft gross

floor area (GFA) and a 2.5maximum

permissible gross plot ratio at Yishun Avenue

7/ Canberra Drive, beating out seven other

bids. Just 4% above the $281 psfpprfor The

Canopy EC site located at Yishun Avenue 11,

the bid was reasonable and within market

expectations. Breakeven cost is estimated to

be around $600 psf, similar to the prices for

The Canopy.



Commercial

JLL’s study: Property investors turn their

attention to the industrial sector

Jones Lang LaSalle's study of URA Realis

caveats data shows that investors with an

under-$1.5 million budget have turned their

attention to industrial sector. The private

residential sector's share of caveats fell from

96.6% in Q2 2009 to 87.2% in Q3 2011 while

the caveats of strata private industrial units,

strata offices and strata retail increased from

2.2% to 8.8%, 0.4% to 1.4% and 0.8%to 2.6%

respectively. The increase may be even larger

if the size of the units is included in the data.

This increase is due to government measures

to cool the housing market as well as the

higher yields for industrial property. In

particular, the investors are drawn to smaller

units in industrial projects with affordable

prices and promises of high yields.

Two 999-year leasehold adjacent buildings

at Phillip Street sold to Royal Group.

Royal Grouphas bought two 999-year

leaseholds adjacent office blocks at 1 and 3

Phillip Street for nearly $283 million with an

average price about $2,350 psfbased on their

total net lettable area of about 120,000 sq ft. 1

and 3 Phillip Street are a 16-storey building

with 36,194 sqft net lettable area (NLA) and

a19-storey office block with 82,160 sqft NLA

respectively. The new corporate headquarters

for Royal Group will move to the latter, moving

out from the Royal Brothers Building, where

Royal Group’s 50% share of the total net

lettable area of around 59,000 sqft was sold at

a price of $3,050 psf.



The two adjacent blocks at Phillip Street are

likely to be redeveloped into a single project

with a larger floor plate.

In the market: Freehold 21-storey Robinson

Point

An expressions of interest (EOI) exercise is

being conducted for the freehold 14-year old

21-storeyRobinson Point with a total net

lettable area (NLA) of 133,214 sqft. Having

been redeveloped to its maximum potential, it

has a gross floor area of 169,250 sqft, a plot

ratio of 11.2 on the 15,111 sqft land area. It is

95% occupied and has 57 car park lots on the

third to fifth levels. The price is expected to

range around of $306.4 million to $313.1

million. The asset could either remain in its

present form or be strata-titled or converted to

hotel use, subject to approvals from the

authorities. The EOI will close on Nov 18.

Ex-Ogilvy Centre to become Sofitel

Singapore in early 2013

The first Sofitel hotel in Singapore is set to

open in early 2013 with 135 rooms and suites

where the Ogilvy Centre used to be- a

landmark conservation property opposite Lau

Pa Sat. The existing four-storey conservation

building will stay, with the rear part being

redeveloped into a new five-storey extension.

The room sizes will range from 258 to 1,507

sqft, with a 70:30 ratio of suites (including loft

suites) to regular rooms with a blended

average daily room rate of $300. Royal Group

Holdings invested $130 million in the asset,

including the $86 million it paid for the site and

signed a 20-years management contract with

Sofitel Luxury Hotels under the Accor Group.



50% of Robinson Land sold to an offshore

fund

The partnership between Buxani Group and

offshore investors advised by Capital

Management Group sold a half-stake in

Robinson Land Pte Ltd to an offshore fund

controlled by a few high net worth individuals ,

retaining the other half. It has only one asset

under its name - 12-storey freehold Finexis

Buildingat 108 Robinson Road. The sale was

based on the Finexis Building’s latest

valuation of $110 million, about $2,043 per

square foot on its total strata area of 53,830

sq ft.It is more than 82%occupied and does

not have any immediate redevelopment

potential, its gross floor area of 64,766

sqfthaving exceeded the 11.2 maximum plot

ratio for the site. The net yield based on the

$110 million valuation is around 2.9% if the

building is fully occupied, given the average

monthly passing rental of $5.60 psf.

http://www.moneymatters.sg/



Worrying Trends in the Singapore Property Market

By Mr. Propwise

I’ve noticed some interesting and worrying

trends in the Singapore property market that

I’d like to share with you, and also delve into

what they mean for the property investor and

own-stay home buyer.

1. HDB prices are rising faster than private

property prices

Last week the URA reported that the private

residential price index grew 1.3% in the 3rd

quarter of 2011. Contrast this with the HDB’s

Resale Price Index (RPI), which rose 3.8%

from the previous quarter.



This increase in HDB prices is despite the

23,800 new units the HDB has pushed out in

the first three quarters. The impact was not felt

on prices but in the transaction volume for

resale flats, which fell 10% to 5,903 units in the

3rd quarter from 6,581 units in the 2nd quarter.

The HDB will launch another 4,200 BTO flats in

November, bringing the total number of flats

launched this year to 28,000. And don’t forget

that there is another 25,000 BTO flats to be

launched next year.

The puzzling thing for many is how the prices

of HDB flats are still rising despite the large

amount of supply being pushed out. A case in

point is the 888-unit Trivelis in Clementi, which

is being developed under the Design, Build

and Sell Scheme (DBSS). Prices of the 646

sqft three-room flat units ($375,000 to

$470,000), 861-883 sqft four-room flat units

($530,000 to $650,000) and 1,130 sqft five-

room flats ($658,000 to $770,000) are more

expensive than the surrounding resale flat

prices!

2. Private home buyers are in a cautious

mood, especially in the high end segment

The PPI’s 1.3% increase is the 8th consecutive

quarter of slowing growth, which many market

observers attribute to both demand (growing

uncertainty in global economic situation) and

supply (government ramping up supply of

public housing) factors.

Regardless of the cause, buyers are becoming

increasingly cautious, especially in the high

end segment. The URA reported a price

increase in non-landed properties in the Core

Central Region (CCR) of just 0.7%, and a fall

in transaction volume of 61% on a quarter-on-

quarter basis.



Given the upcoming launches in the 4th

quarter, many analysts expect a fall in the take-

up rate even if prices remain stable. So it’s

clear that the market is cooling down. The

million dollar question is – will prices fall?

3. Developers are turning cautious too

In the latest survey conducted by the National

University of Singapore and the Real Estate

Developers’ Association of Singapore

(READAS), the Current Sentiment Index for

property developers dropped from 4.6 in the

2nd quarter to 3.6 in the 3rd quarter, while the

Future Sentiment Index dropped from 4.4 in

the 2nd quarter to 3.4 in the 3rd quarter. This

dragged the Composite Sentiment Index down

from 4.5 to 3.5 respectively.

Developers also turned cautious on the office

segment as shown by the future net balance

(the difference between respondents who

believe the office segment will do better and

those who think it will do worse), which staged

a dramatic turnaround from +42% in the 2nd

quarter to -57% in the 3rd quarter. This was

attributed to weakening demand from the

banking and financial services industry, which

in general is having a tough time this year with

weak markets and trading volumes.

Interestingly, 56% of developers expect prices

to remain unchanged while 37% predict a

moderate decline. The percentage of

developers expecting a decline more than

doubled from 17% in the previous quarter.

4. Investors are going into industrial and

commercial properties

Jones Lang LaSalle’s study of URA Realis

caveat data shows that investors



with a sub-$1.5 million budget are moving

away from residential properties into

commercial and retail properties. The private

residential sector’s share of caveats fell from

96.6% in 2nd quarter 2009 to 87.2% in 3rd

quarter 2011. Investors have both been driven

by push (government measures to cool the

residential market including the harsh stamp

duty) and pull (higher yields for these

properties) factors.

In particular, small industrial units with low

prices and PROMISES of higher yields are

very popular with investors. Have they thought

about what the real rental demand is going to

be once these units are completed? What sort

of businesses will be renting them?

My take on what these trends mean

All in all I believe that these trends are

worrying. Middle income families are rushing

to buy high-priced HDB flats and mass market

residential properties and small-time investors

are snapping up “shoebox” industrial units

with a fairly ambiguous rental market. At the

same time the wealthy and developers (the

“insiders”) are turning cautious on the market,

and the weakening global economic situation

means that the yields of the industrial and

commercial properties could be at risk. Which

group do you think has a better grasp of what

is going on in the market?

I caution all investors to study the market

carefully before committing your hard earned



I caution all investors to study the market

carefully before committing your hard earned

cash and credit to a property investment.

Make sure you know what you’re buying and

if you are expecting a yield, to do your due

diligence on what the real rental demand for

your property will be. If you’re buying for your

own stay, don’t just rush into the next new

launch and be impressed by the designer

showflats. If you spend a bit of time and

effort looking around in the same area, you

could find real “bargains” at 20% to 40% off

the price of a new flat.

http://www.propwise.sg/secretsofsingaporepropertygurus/



Non-Landed Residential Resale Property Transactions for the Week of Oct 8 - 14

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

2 ICON 581 1,080,000 1,858 99

3 QUEENS 1,184 1,300,000 1,098 99

3 EMERALD PARK 1,173 1,280,000 1,091 99

3 EMERALD PARK 1,163 1,208,000 1,039 99

4 CARIBBEAN AT KEPPEL BAY 1,206 1,928,000 1,599 99

4 CARIBBEAN AT KEPPEL BAY 1,485 2,060,000 1,387 99

5 HERITAGE VIEW 1,163 1,270,000 1,092 99

5 BOTANNIA 1,281 1,388,000 1,084 956

5 DOVER PARKVIEW 1,249 1,150,000 921 99

5 DOVER PARKVIEW 1,249 1,150,000 921 99

5 WESTCOVE CONDOMINIUM 1,119 930,000 831 99

8 CITYLIGHTS 1,356 1,740,000 1,283 99

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

9 CAIRNHILL RESIDENCES 1,163 2,360,890 2,031 FH

9 MIRAGE TOWER 1,496 2,330,000 1,557 FH

9 CAIRNHILL HEIGHTS 1,281 1,750,000 1,366 FH

9 UE SQUARE 1,572 2,050,000 1,304 929

10 ST MARTIN RESIDENCE 592 1,360,000 2,297 FH

10 THE ORANGE GROVE 2,691 5,800,000 2,155 FH

10 THE FORD @ HOLLAND 614 1,100,000 1,793 FH

10 MONTVIEW 1,507 2,320,780 1,540 FH

10 VALLEY PARK 1,808 2,500,000 1,382 999

10 TANGLIN REGENCY 980 1,260,000 1,286 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

10 RIDGEWOOD 1,744 1,950,000 1,118 999

11 HILLCREST PARK 1,152 1,500,000 1,302 FH

11 THOMSON 800 1,625 1,980,000 1,218 FH

11 AMANINDA 2,842 2,900,000 1,021 FH

11 HILLCREST ARCADIA 1,711 1,547,500 904 99

12 TRELLIS TOWERS 1,647 1,780,000 1,081 FH

12 SUNVILLE 1,755 1,420,000 809 FH

13 THE SCENIC @ BRADDELL 452 590,000 1,305 FH

14 DAKOTA RESIDENCES 1,830 2,425,000 1,325 99

14 SIMSVILLE 969 852,000 879 99

14 ESCADA VIEW 775 677,700 874 FH

14 FUYUEN COURT 1,163 880,000 757 FH

14 CANBERLIN LODGE 1,152 800,000 695 FH

15 ONE AMBER 1,389 2,055,720 1,480 FH

15 THE SEA VIEW 1,216 1,740,000 1,431 FH

15 THE WATERSIDE 2,400 3,224,000 1,343 FH

15 SANCTUARY GREEN 786 1,000,000 1,273 99

15 COSTA RHU 1,970 2,255,650 1,145 99

15 THE MAKENA 1,636 1,850,000 1,131 FH

15 SANTA FE MANSIONS 1,163 1,300,000 1,118 FH

15 TANJONG RIA CONDOMINIUM 1,302 1,400,000 1,075 99

15 FINLAND GARDENS 1,722 1,780,000 1,034 FH

15 MARTIA 8 1,259 1,280,000 1,016 FH



NOTE: This data only covers non-landed residential resale

property transactions with caveats lodged with the Singapore

Land Authority. Typically, caveats are lodged at least 2-3 weeks

after a purchaser signs an OTP, hence the lagged nature of the

data.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

15 PARK EAST 2,024 1,970,000 973 FH

15 ONE @ PULASAN 1,087 1,024,000 942 FH

16 THE DAFFODIL 689 692,800 1,006 FH

16 EAST MEADOWS 1,216 1,110,000 913 99

16 BAYSHORE PARK 2,196 1,940,000 883 99

16 TANAMERA CREST 1,173 900,000 767 99

16 TANAMERA CREST 1,604 1,145,000 714 99

16 TANAMERA CREST 1,184 840,000 709 99

17 WATERCREST 1,302 1,048,000 805 999

17 WATERCREST 1,302 1,030,000 791 999

17 BALLOTA PARK CONDOMINIUM 1,701 1,122,000 660 FH

18 MODENA 1,410 1,269,000 900 99

18 EASTPOINT GREEN 1,130 940,000 832 99

18 MELVILLE PARK 1,206 845,000 701 99

18 MELVILLE PARK 1,475 988,000 670 99

19 GLASGOW RESIDENCE 409 600,000 1,467 999

19 COMPASS HEIGHTS 1,324 1,285,000 971 99

19 RIO VISTA 1,055 830,000 787 99

19 REGENTVILLE 1,152 855,000 742 99

20 LAKEVIEW ESTATE 1,615 1,240,000 768 99

21 GARDENVISTA 1,173 1,320,000 1,125 99

21 SPRINGDALE CONDOMINIUM 1,130 1,100,000 973 999

21 SHERWOOD CONDOMINIUM 904 845,000 935 FH

21 SUMMERHILL 1,604 1,480,000 923 FH

21 SOUTHAVEN II 1,539 1,400,000 910 999

21 SOUTHAVEN I 1,313 1,090,000 830 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

22 THE LAKESHORE 872 840,000 963 99

22 PARC OASIS 1,227 940,000 766 99

22 LAKESIDE APARTMENTS 1,518 835,000 550 99

23 THE MADEIRA 1,249 1,000,000 801 99

23 REGENT HEIGHTS 1,163 870,000 748 99

23 REGENT GROVE 1,163 805,888 693 99

23 THE MADEIRA 3,046 1,880,000 617 99

26 SEASONS PARK 1,690 1,138,000 673 99



Summerhill Condo, 3BR. Beautifully

furnished. New furniture, appliances, 42"

TV & electric piano. Don't miss, contact

Andrew Chee 82887632

For Rent

Singapore Property Classifieds #13

For Sale

Bliss Residences @ Kembangan. FH

1500+sf 3+1BR Penthouse. Only

$1000psf. 1 min to MRT, 15 min to CBD.

Rooftop pool and BBQ. TK Tan 98206228.

http://www.propwise.sg/advertise

Documents

Singapore Property Weekly Issue 23