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In this issue:- Singapore Property News This Week- Are Shoebox Residential Units Profitable Investments? - Resale Property Transactions (October 15 – 21)- Singapore Property Classifieds #14
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CONTENTS p2 Singapore Property News This Week
p5 Are Shoebox Residential Units
Profitable Investments?
p10 Resale Property Transactions (October 15 – 21 )
p12 Singapore Property Classifieds #14
Welcome to the 24th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 24
Singapore Property This Week
Page | 2 Back to Contents
Residential
Laguna Park and Henry Park up for sale
The reserve price of 677,493 sq ft Leasehold
Laguna Park located along Marine Parade
Road is $1.25 billion, about $954 psf ppr
including a differential premium of about $560
million. Zoned for residential use at a plot ratio
of 2.8, it has a 1.9 million sq ft potential gross
floor area and is located near renowned
schools like Tao Nan School and the
upcoming Eastern Region Line expected to be
completed by 2020. Breakeven cost is
estimated at $1,400 psf.
64-unit Henry Park Apartments located
directly opposite Henry Park Primary School
sits on a 999-year-leasehold site with a land
area of 99,800 sq ft. It is zoned residential
with commercial at first storey, with a gross
plot ratio (GPR) of 1.4, and a maximum
building height of four storeys, allowing for
almost 140,000 sq ft of gross floor area if
redeveloped. A 1,395 sq ft state land lot could
potentially be amalgamated, subject to
approval and survey. The asking price is
between $170 million to $180 million, about
$1,200 to $1,275 psf ppr with the state land
and $1,216 to $1,287 psf ppr without.
Freehold Green Lodge at Toh Tuck Road,
71 and 73 Oxley Rise up for sale
151,075 sq ft freehold Green Lodge located
near Toh Tuck Garden and Eng Kong Park
and Pei Hwa Presbyterian Primary School is
asking for $195 million, or about $866 psf ppr.
SINGAPORE PROPERTY WEEKLY Issue 24
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It has a redevelopment potential of a five-
storey condominium project with a 1.4 gross
plot ratio. No development charge is payable
with its approved density of equivalent plot
ratio 1.4896. There could be potentially 210
residential units, assuming a 1,000 sq ft
average apartment size and 90% building
efficiency.
Meanwhile, an Expression of Interest exercise
is conducted for the site at 71 and 72 Oxley
Rise. The 25,630 sq ft site located in District 9
has a gross plot ratio of 4.2 and could
potentially be redeveloped into a 107,646 sq ft
mixed 20-80 commercial-residential project,
subject to approval from the authorities.
Top bid for 99-year-leasehold residential
site at Punggol at $215.87 million
The highest bid for the 218,034.6 sq ft site
with a maximum permissible gross floor area
of 654,103.9 sq ft comes from Chinese firm
Qingjian Realty (South Pacific) Group, at
$215.87 million or $330 psf ppr, narrowly
topping the $203.888 million bid from Soilbuild
Group Holdings. The company planned to
launch the project within six to eight months
with around 650 units of two to four
bedrooms. The breakeven cost is estimated to
be $700 psf.
Commercial
NTUC Income and Overseas Motors sold
Freehold Henderson Industrial Building for
$99.3 million
NTUC Income and Overseas Motors sold the
four-storey sold Henderson Industrial Building
located at the Henderson Road-Jalan Bukit
Merah junction to an entity that includes
Fission Group's Melvin Poh, Yi Kai Group and
other parties for about $99.3 million.
SINGAPORE PROPERTY WEEKLY Issue 24
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It is currently 75% occupied and is sold with
existing leases that will expire by 2013.
Zoned for Business 1 use with a 2.5 plot ratio,
URA had given the go for redevelopment into
a 20-storey light industrial project, with a
maximum gross floor area of 208,635 sq ft.
This new project could yield a net saleable
area of about 177,340 sq ft, with strata units
of around 1,200-1,500 sq ft for sale. The
breakeven cost is estimated to be around
$880 psf.
New mixed-used site at Marina Bay
released
The site located at the corner of Marina View
is offered under the reserve list and has a
maximum permissible gross floor area (GFA)
of 1.09 million sqf, 70% of which has to be set
aside for office use with the remaining to be
developed for additional office use or other
uses such as residential, retail or hotel. The
site is expected to be sold only next year
given the cautious outlook on the office rental
market.
Mountbatten Road transitional office site
draws 11 bids, with a $15.01 million top
bid
There were 11 bidders for 1.17 hectares 15-
year lease transitional site at Mountbatten
Road, with the highest from an individual,
Chen Chew Yen, who offered $15.01 million
or $119 per psf ppr. The site which has a
maximum permissible gross floor area of
about 126,000 sq ft might be popular with
office users with lower budgets. These users
may currently be illegally operating in
industrial buildings. Affordable office space
would attract such users wants operate
without fearing enforcement checks.
SINGAPORE PROPERTY WEEKLY Issue 24
Page | 5 Back to Contents
Are Shoebox Residential Units Profitable Investments?
By Mr. Propwise
Shoebox apartments (aka “mickey mouse”
apartments) have become increasingly
popular in recent years, with caveats lodged
rising from fewer than 30 in 2004 to more
than 1,900 units in 2010. They are becoming
a more prominent feature in our private
housing landscape – they made up just 6% of
new private home sales in 2008, but that
figure has doubled to 12% in 2010.
While there is no industry accepted standard
definition of what constitutes a shoebox unit,
Minister Khaw Boon Wan has categorized
them on his blog as apartments that were
smaller than 500 square feet.
SINGAPORE PROPERTY WEEKLY Issue 24
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The natural choice for budding investors?
Due to their lower total costs (usually less
than $1m per unit), they have become the
vehicle of choice for budding investors who
only have a moderate amount of cash to put
to work, while promising decent potential
rental yields of 3% to 5%. For example, a
$500,000 unit (400 square feet at $1,250 per
square foot) would only require $100,000 (if
taking an 80% loan) to $200,000 (if taking a
60% loan) of cash plus CPF to buy. And if you
assume that you can rent it out at $1,500 per
month, then you’re looking at a gross rental
yield of 3.6%.
Based on the calculations above, it sounds
like shoebox units are potentially decent
investors, and the thought of picking up a unit
has indeed crossed my mind (and that of
other investors I know as well). But I’ve
always held back because of the high per
square foot prices, which instinctively tell me
that I’m not getting a great deal.
Can shoebox units be good investments?
So it was with great interest that I read a new
report released by local property consultancy
firm Ascendant Assets. The report, which was
recently covered by The Straits Times and
believed to be the first in-depth study of this
phenomenon, does a detailed analysis of
3,780 shoebox unit caveats lodged with the
URA from 1998 to 2010 of to reveal the trends
in the market and the profitability of shoebox
unit transactions.
SINGAPORE PROPERTY WEEKLY Issue 24
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One finding was that based on the
transactions of these units so far, sub-sales
(before the CSC was received) and re-sales
have generally been profitable, with an
average profit of $106,426 and only 4.4% of
owners selling at a loss. The maximum gain
recorded was $332,000.
However, there were a significantly higher
percentage of profitable sub-sale deals
compared to resale deals. Could this be
because it is easier to sell these units off the
plan as opposed to live as the buyers will
then see how small these units actually are in
reality?
I believe that this trend of the majority of sub-
sale and re-sale transactions of shoebox units
might not continue going forward given:
1. Property prices may not keep going up as
they have in the past two years
2. The total number of completed units will
increase from 1,100 to 3,800 by 2014,
creating more supply in the market (and
competition for buyers).
3. The harsh Sellers Stamp Duty imposed by
the government at the beginning of 2011
makes it unprofitable to flip the unit as a sub-
sale transaction, increasing the risks of being
stuck with a unit that might be difficult to rent
or sell upon completion.
Perhaps the real winners from the growing
trend of shoebox units are the developers,
who are able to bump up their per square foot
prices (and margins) by shrinking the size of
the units.
SINGAPORE PROPERTY WEEKLY Issue 24
Page | 8 Back to Contents
Indeed the Ascendant Assets’ report found
that only shoebox units sold by developers
were able to get top absolute and per square
foot prices.
So be careful if you’re considering investing in
such a unit!
The report covers several more interesting
findings with lots of graphs and figures,
including the psychological price ceiling for
sub-sale/re-sale shoebox units, profitable
locations of investing in shoebox units etc.,
and is recommended for anyone interested in
investing in this segment. Ascendant Assets
has kindly made it available for sale for a
modest price on this site. Click here to buy it.
SINGAPORE PROPERTY WEEKLY Issue 24
Page | 9 Back to Contents
SINGAPORE PROPERTY WEEKLY Issue 24
Page | 10 Back to Contents
Non-Landed Residential Resale Property Transactions for the Week of Oct 15 - 21
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 THE SAIL @ MARINA BAY 1,076 1,888,888 1,755 99
3 TANGLIN VIEW 1,755 2,200,000 1,254 99
3 QUEENS 2,336 2,000,000 856 99
4 CARIBBEAN AT KEPPEL BAY 893 1,480,000 1,657 99
5 HERITAGE VIEW 1,195 1,335,000 1,117 99
5 CLEMENTIWOODS CONDOMINIUM 1,819 1,988,000 1,093 99
5 BLUE HORIZON 1,163 1,100,000 946 99
5 WESTCOVE CONDOMINIUM 1,130 910,000 805 99
5 FABER CREST 1,389 1,100,000 792 99
5 WEST BAY CONDOMINIUM 1,292 955,000 739 99
7 MIN YUAN 1,453 2,050,000 1,411 999
7 SUNSHINE PLAZA 1,130 1,400,000 1,239 99
8 CITY SQUARE RESIDENCES 570 980,000 1,718 FH
8 CITYLIGHTS 872 1,430,000 1,640 99
8 CITY SQUARE RESIDENCES 1,216 1,788,000 1,470 FH
8 KERRISDALE 1,270 1,320,000 1,039 99
9 PATERSON RESIDENCE 1,313 3,050,000 2,323 FH
9 THE COSMOPOLITAN 1,141 2,282,000 2,000 FH
9 ASPEN HEIGHTS 1,324 1,980,000 1,495 999
9 LA CRYSTAL 1,249 1,848,520 1,480 FH
10 GRANGE RESIDENCES 2,852 8,100,000 2,840 FH
10 GRANGE RESIDENCES 2,583 7,000,000 2,710 FH
10 ARDMORE II 2,024 5,350,000 2,644 FH
10 THE LADYHILL 3,810 8,600,000 2,257 FH
10 THE EQUATORIAL 1,722 2,955,000 1,716 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
10 JAYA TOWERS 2,142 2,880,000 1,345 FH
10 GLENTREES 1,345 1,800,000 1,338 999
10 CHATELET 1,507 1,980,000 1,314 FH
10 DUCHESS CREST 1,345 1,660,000 1,234 99
10 LUTHERAN TOWERS 1,916 1,458,000 761 103
11 TEN @ SUFFOLK 1,184 1,600,000 1,351 FH
11 NINETEEN SHELFORD ROAD 936 1,255,500 1,341 FH
11 HILLCREST ARCADIA 926 860,000 929 99
12 ECOVILLE 1,184 1,370,000 1,157 FH
12 THE ARTE 1,625 1,800,000 1,107 FH
12 THE CALLISTA 592 630,000 1,064 999
12 OLEANDER TOWERS 1,152 978,000 849 99
12 MOONSTONE VIEW 1,184 900,000 760 FH
14 DAKOTA RESIDENCES 1,894 2,550,000 1,346 99
14 EVER LODGE 1,378 1,000,000 726 FH
14 FERN LODGE 1,023 712,000 696 FH
15 ARTHUR 118 1,001 1,330,000 1,329 FH
15 OCEAN PARK 1,302 1,632,500 1,253 FH
15 VERTIS 1,206 1,500,000 1,244 FH
15 ONE FORT 1,206 1,485,000 1,232 FH
15 COTE D'AZUR 1,109 1,340,000 1,209 99
15 SUNSHINE REGENCY 603 713,000 1,183 FH
15 PALM OASIS 753 868,000 1,152 FH
15 TANJONG RIA CONDOMINIUM 1,378 1,575,000 1,143 99
15 TG MANSION 1,270 1,000,000 787 FH
SINGAPORE PROPERTY WEEKLY Issue 24
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Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
15 CANDEVILLE 1,851 1,350,000 729 FH
15 THE GLACIER 2,164 1,450,000 670 FH
16 COSTA DEL SOL 1,561 2,080,000 1,333 99
16 COUNTRY PARK CONDOMINIUM 1,098 1,210,000 1,102 FH
16 CASA MERAH 926 945,000 1,021 99
16 CASAFINA 1,281 1,190,000 929 99
16 EAST MEADOWS 1,216 1,126,000 926 99
16 CHANGI COURT 1,163 1,060,000 912 FH
16 THE BAYSHORE 926 825,000 891 99
16 EASTWOOD GREEN 1,012 780,000 771 99
17 FERRARIA PARK CONDOMINIUM 1,087 1,165,000 1,072 FH
17 EDELWEISS PARK CONDOMINIUM 1,281 990,000 773 FH
17 LOYANG VALLEY 1,033 742,000 718 99
17 LOYANG VALLEY 1,873 1,190,000 635 99
17 LOYANG VALLEY 1,862 1,058,000 568 99
18 EASTPOINT GREEN 969 785,000 810 99
18 MELVILLE PARK 1,044 830,000 795 99
18 TAMPINES COURT 1,690 960,000 568 101
18 TAMPINES COURT 1,658 935,000 564 101
19 KOVAN MELODY 904 1,010,000 1,117 99
19 THE SPRINGBLOOM 1,432 1,380,000 964 99
19 CHILTERN PARK 936 900,000 961 99
19 KENSINGTON PARK CONDOMINIUM 1,582 1,450,000 916 999
19 CHILTERN PARK 1,518 1,330,000 876 99
19 SUN ROSIER 1,593 1,330,000 835 FH
19 COMPASS HEIGHTS 1,550 1,220,000 787 99
19 RIO VISTA 1,249 970,000 777 99
19 CHUAN PARK 1,410 1,080,000 766 99
20 GOLDENHILL PARK CONDOMINIUM 1,561 1,888,000 1,210 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
20 GOLDENHILL PARK CONDOMINIUM 1,313 1,580,000 1,203 FH
20 RAFFLESIA CONDOMINIUM 1,324 1,528,000 1,154 99
20 CLOVER BY THE PARK 1,604 1,775,000 1,107 99
20 GRANDEUR 8 1,259 1,280,000 1,016 99
20 THE GARDENS AT BISHAN 883 850,000 963 99
20 THE WINDSOR 2,164 1,760,000 813 FH
21 GARDENVISTA 1,130 1,388,000 1,228 99
21 SIGNATURE PARK 1,055 1,110,000 1,052 FH
21 PARC PALAIS 1,582 1,495,000 945 FH
22 LAKEPOINT CONDOMINIUM 1,001 750,000 749 99
23 CASHEW HEIGHTS CONDOMINIUM 1,851 2,000,000 1,080 999
23 MAYSPRINGS 915 755,000 825 99
23 PARKVIEW APARTMENTS 936 758,000 809 99
23 REGENT HEIGHTS 1,023 825,888 808 99
23 CASHEW PARK CONDOMINIUM 517 405,000 784 999
23 CASHEW PARK CONDOMINIUM 506 395,000 781 999
23 PALM GARDENS 1,216 900,000 740 99
23 PARKVIEW APARTMENTS 1,119 800,000 715 99
23 NORTHVALE 1,087 760,000 699 99
25 THE WOODGROVE 872 671,000 770 99
26 BULLION PARK 1,873 1,620,000 865 FH
27 YISHUN SAPPHIRE 1,152 805,000 699 99
27 YISHUN EMERALD 1,206 828,000 687 99
28 SERENITY PARK 1,098 900,000 820 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.
SINGAPORE PROPERTY WEEKLY Issue 24
Page | 12 Back to Contents
Singapore Property Classifieds #14
For Sale
5I HDB, Blk 671 woodlands, 111sqm,
high floor, move in cond. valuation $435k,
view to offer, mrt/amenities. Ibrahim
Dawood 93360375
HDB BLK 112 SIMEI (5I), 122sqm, 7 min
to MRT, #02 Nicely Renovated Corner.
Val $520k. Main Door Face North East.
Call Nelson Lim 83680693
