Singapore Property Weekly Issue 264

7/26/2019 Singapore Property Weekly Issue 264

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CONTENTS

p2 Think Singapore’s property market is

bottoming out? Think again

p7 Singapore Property News This Week

p9 Resale Property Transactions

(May 28 – Jun 3)

Welcome to the 264th edition of the

Singapore Property Weekly .

Hope you like it!

Mr. Propwise

FROM THE

EDITOR

mailto:[email protected]

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SINGAPORE PROPERTY WEEKLY Issue 264

Page | 2Back to Contents

By Property Soul (guest contributor)

It is common for international property

investors to compare how different property

markets perform across the world and take

their pick from the shortlisted countries.

LaSalle Investment Management recently

claimed that “Singapore‟s property market

may be closer to a bottom than Hong Kong”.

How true is that?

The peak and the pit

Prices of properties in Hong Kong have

jumped by370 percent since their last bottom

during the SARS period in 2003.

Think Singapore‟s property market is bottoming

out? Think again

http://propertysoul.com/

http://origin-www.bloomberg.com/news/articles/2016-05-26/singapore-property-closer-to-bottom-than-hong-kong-lasalle-says

































The market didn‟t show any sign of softening

until September last year. Since then housing

prices have fallen 13 percent.

On the other hand, home prices in Singaporehave increased 92 percent since 2003 but

have dropped 9 percent from their peak since

September 2013.

Here is a possible reason behind LaSalle‟s

statement: Since Hong Kong‟s property prices

have shot up much higher from their last

bottom, there should be more room to adjust

downwards.

The dangerous part of this conclusion is that

we are comparing two countries with totally

different fundamentals – the population,

housing demand, government housing policy,

and number of buyers and investors of the

two places are completely different.

But the most dangerous part is theassumption that Singapore property prices

are closer to the bottom because they have

already fallen 9 percent from the last peak.

What is 9 percent after a 92 percent surge?

Back in 2001, developers and investment

companies kept telling the media that theproperty market was bottoming out. In reality,

prices didn‟t really pick up until five years later

in 2006.

Pro-Hong Kong vs pro-Singapore property

campsSC Capital Partners told Bloomberg that

“recent price declines make investing in Hong

Kong property attractive”.

http://www.businesstimes.com.sg/real-estate/singapore-fund-likes-hong-kong-property

























The Singapore real estate private equity firm

expected the Singapore government to stay

firm on its cooling measures until the end of

next year. Compared with Singapore, homes,

offices and hotels in Hong Kong offer more

value after the recent drop in prices.

The truth is: SC Capital bought units at a

Singapore condominium project in bulk just

before the property curbs kicked in. It had to

offload the 18 units to Blackstone Group LP inJanuary 2015 and suffered a hefty loss of

S$12 million. It is not surprising that the

private equity firm won‟t be touching

Singapore property any time soon.

Meanwhile, Macau casino tycoon Stanley

Ho‟s Shun Tak Holdings has just set a new

record of property sale in Singapore by

paying $145 million (a big discount from the

listing price of $160 to $170 million) or $2,145

per square foot for a bungalow at 9 Cuscaden

Road. The 25,741 sq ft freehold land parcel is

formerly owned by the descendants of

philanthropist Tan Tock Seng. With the

company‟s track record in the hospitality

industry, the land is believed to be used for

hotel development.

My poison, your meat

The two cases are only one-off incidents that

do not represent the market sentiment.However, recently there are Singapore high-

end projects being marketed in Hong Kong.

The selling point is that luxurious apartments

in Singapore are now more affordable

because of the government‟s cooling

measures. Likewise, foreign buyers are told

that they can now own a piece of Hong Kong

at deep discounts.

http://www.straitstimes.com/business/property/gambling-tycoon-stanley-ho-buys-cuscaden-bungalow-from-descendants-of-tan-tock

































Do you know the story behind

Overstock.com? Founder Patrick Byrne

started the company based on the theory that

„products that cannot sell in one country can

be best sellers in another country‟. Instead of

letting retailers dump cancelled orders,

leftover stock and surplus merchandise out

the back door, he marketed the goods on the

internet where there was a lot of demand for

it. Overstock.com is now a $1.5 billion listed

company.

A marketer‟s job is to turn a disadvantage to

an advantage: to turn hot potatoes into hot

cakes. You find it excessive but I find it exotic.

One man‟s poison is another man‟s meat.

What a smart sales tactic to shift the supplyand demand equilibrium to the seller‟s

advantage!

Price drop signals opportunities to buy?

Analysts of the stock market often comment

that when stock prices drop below a certain

level, it signals a good opportunity to buy. But

to look at it in another way, when prices drop

below a certain level, it also signals an

opportunity to short.

Look at Japan. After the burst of the asset

price bubble, the Japanese lost decade that

started in 1989 is still ongoing after more than25 years. Companies marketing Japanese

properties keep persuading buyers that it‟s a

good time to buy now.

With a declining population and a vacancy

rate of 13 percent, are you ready to take the

plunge?

http://www.overstock.com/

http://overstock.com/











Jim Rogers said “bottoms in the

investment world don‟t end with four-year

lows. They end with 10- or 15-year lows”.

And I like this piece of wisdom from hisdecades of investment experience:

“ You do not buy unless it is cheap and

unless you see positive change coming

within the next 2 to 3 years.”

What exactly is the positive change in

Singapore and Hong Kong‟s property

market?

LaSalle Investment Management is

currently overseeing over $58 billion in real

estate funds. Whether it is a right bet thatthe Singapore property market has

reached its bottom matters less to such a

deep-pocketed fund. It can afford to take

the risk.

But can a retail investor or a first-timebuyer take the same risk?

By guest contributor Property Soul, a

successful property investor, blogger , and

author of the No B.S. Guide to Property

Investment.

SINGAPORE PROPERTY WEEKLY I 264


http://aktive.com.sg/store/no-b-s-guide-to-property-investment/




















Singapore Property This Week


Residential

Attractive commercial/residential site on

confirmed list for release

A choice commercial and residential site

along Upper Serangoon Road right next to

Woodleigh MRT Station will be launched on

the confirmed list in December this year. It is

for a mixed-use development that could yield

an estimated 825 private homes and about

15,000 square metres gross floor area (GFA)

of commercial space. A 0.4-hectare plot at the

unction of Perumal and Race Course roads,

next to the Farrer Park MRT Station was

another top choice as it can generate about

200 private homes.

(Source: Business Times)

HDB prices remain relatively unchanged in

May

SRX Property's price index for HDB resale

flats inched up 0.2 per cent in May 2016

compared to April. This follows a 0.1 per cent

month-on-month dip in April 2016. However,

year on year, the index is unchanged. The

price sub-index for resale flats in mature

estates dipped 0.1 per cent month-on-month

in May, while the sub-index for non-mature

estates increased by 0.5 per cent.

SINGAPORE PROPERTY WEEKLY I 264





n a year-on-year basis, however, prices in

mature estates have risen 0.6 per cent but

contracted 0.5 per cent in non-mature

estates.


Commercial

Singapore prime rental continues to fall

CBRE said average prime rents for the

suburban sub-market fell 0.7 per cent from

the first quarter of 2016 to S$29.45 per

square foot per month (psf/pm). Average

prime Orchard Road rents slipped 1.1 per

cent from Q1 to S$32.50 psf/pm. This was the

sixth consecutive quarter of decline for

Orchard Road since Q4 2014. Desmond Sim,

head of research, Singapore & South East

Asia at CBRE opines that malls which are

located near transport nodes, will have

continued demand for rents and occupancy

despite the current market conditions.



http://propertymarketinsights.com/





Non-Landed Residential Resale Property Transactions for the Week of May 28 – Jun 3

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE SAIL @ MARINA BAY 1,313 2,175,000 1,656 991 ONE SHENTON 2,271 3,406,500 1,500 99

4 THE PEARL @ MOUNT FABER 1,345 1,580,000 1,174 99

4 HARBOUR VIEW TOWERS 1,615 1,500,000 929 99

5 PARC IMPERIAL 388 680,000 1,755 FH

5 HORIZON RESIDENCES 1,023 1,506,888 1,474 FH

5 DOVER PARKVIEW 936 978,888 1,045 99

5 CLEMENTIWOODS CONDOMINIUM 1,658 1,700,000 1,026 99

5 BLUE HORIZON 1,152 1,150,000 998 99

9 OUE TWIN PEAKS 1,604 4,485,600 2,797 999 OUE TWIN PEAKS 1,399 3,635,035 2,598 99

9 OUE TWIN PEAKS 1,399 3,609,420 2,579 99

9 OUE TWIN PEAKS 549 1,356,030 2,470 99

9 MARTIN NO 38 1,130 2,495,000 2,208 FH

9 OUE TWIN PEAKS 570 1,227,650 2,152 99

9 BELLE VUE RESIDENCES 1,841 3,685,000 2,002 FH

9 VISIONCREST 915 1,735,000 1,896 FH

9 WATERFORD RESIDENCE 1,195 1,875,000 1,569 999

9 OLEANAS RESIDENCE 1,141 1,780,000 1,560 FH

9 8 @ MOUNT SOPHIA 1,453 1,980,000 1,363 103

10 LE NOUVEL ARDMORE 5,242 21,000,000 4,006 FH

10 ARDMORE THREE 1,744 5,780,340 3,315 FH

10 THE NASSIM 3,294 9,973,000 3,028 FH

10 TOMLINSON HEIGHTS 4,047 11,533,950 2,850 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

10 HOLLAND MEWS 1,281 2,000,000 1,561 FH10 PROXIMO 1,119 1,698,000 1,517 FH

10 STUDIO 3 883 1,330,000 1,507 FH

10 OLINA LODGE 2,766 3,320,000 1,200 FH

10 LUTHERAN TOWERS 1,916 1,680,000 877 103

11 NOVELIS 807 1,260,000 1,561 FH

11 ADAM PARK CONDOMINIUM 958 1,390,000 1 ,451 FH

11 THE ANSLEY 1,281 1,615,000 1,261 FH

12 IRESIDENCES 980 1,300,000 1,327 FH

12 ST MICHAEL'S PLACE 1,259 1,235,000 981 FH12 THE CITRINE 2,400 2,000,000 833 FH

13 8@WOODLEIGH 1,152 1,388,800 1,206 99

14 VIENTO 452 545,000 1,206 FH

14 THE WATERINA 1,625 1,825,000 1,123 FH

15 THE SEA VIEW 1,410 2,185,500 1,550 FH

15 THE ESTA 1,475 2,150,000 1,458 FH

15 THE SOVEREIGN 2,637 3,500,000 1,327 FH

15 WATER PLACE 1,281 1,680,000 1,312 99

15 PEBBLE BAY 2,336 2,998,000 1,284 99

15 HAWAII TOWER 2,239 2,600,000 1,161 FH

15 VILLA MARTIA 1,292 1,480,000 1,146 FH

15 KATONG GARDENS 1,948 2,228,000 1,144 FH

15 PARKSHORE 1,668 1,900,000 1,139 FH

15 FERNWOOD TOWERS 1,195 1,300,000 1,088 FH






NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority.Typically, caveats are lodged at least 2-3 weeks after a purchasersigns an OTP, hence the lagged nature of the data.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

15 VERTIS 3,703 3,700,000 999 FH

15 VERSAILLES 1,119 980,000 875 FH

15 AXIS @ SIGLAP 1,776 1,210,000 681 FH

16 BREEZE BY THE EAST 2,077 2,275,000 1,095 FH

16 CASA MERAH 980 1,060,000 1,082 99

16 CASA MERAH 1,238 1,300,000 1,050 99

16 LAGUNA GREEN 1,442 1,390,000 964 99

16 THE BAYSHORE 926 880,000 951 99

17 CASA PASIR RIS 2,207 1,350,000 612 946

18 DOUBLE BAY RESIDENCES 1,550 1,510,000 974 99

18 MODENA 1,399 1,250,000 893 99

18 DOUBLE BAY RESIDENCES 1,970 1,700,000 863 99

18 EASTPOINT GREEN 1,130 830,000 734 99

18 CHANGI RISE CONDOMINIUM 1,658 1,042,000 629 99

18 TAMPINES COURT 1,722 850,000 494 101

19 CARDIFF RESIDENCE 420 623,000 1,484 99

19 THE SCALA 1,044 1,355,000 1,298 99

19 KOVAN MELODY 1,292 1,400,000 1,084 99

19 THE QUARTZ 1,421 1,390,000 978 99

19 TERRASSE 1,453 1,420,000 977 99

20 CLOVER BY THE PARK 1,292 1,620,000 1,254 99

20 BISHAN 8 1,163 1,350,888 1,162 99

20 GRANDEUR 8 1,421 1,425,000 1,003 99

20 LAKEVIEW ESTATE 1,615 1,200,000 743 99

21 FLORIDIAN 1,345 2,188,000 1,626 FH

21 THE RAINTREE 1,270 1,285,000 1,012 99

21 THE HILLSIDE 1,765 1,535,555 870 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

21 THE BEVERLY 2,992 2,000,000 668 FH

21 PINE GROVE 1,668 1,050,000 629 99

22 THE LAKESHORE 861 920,000 1,068 99

22 CASPIAN 1,238 1,195,860 966 99

23 THE DAIRY FARM 1,518 1,350,000 889 FH

23 YEWTEE RESIDENCES 1,163 960,000 826 99

23 THE WARREN 1,206 960,000 796 99

23 PALM GARDENS 958 760,000 793 99

23 NICON GARDENS 1,991 1,200,000 603 99

25 ROSEWOOD 1,173 890,000 759 99

25 WOODGROVE CONDOMINIUM 2,433 1,490,000 612 99

27 EIGHT COURTYARDS 1,087 1,015,000 934 99

27 THE ESTUARY 1,195 1,050,000 879 99

27 EIGHT COURTYARDS 1,776 1,438,000 810 99

27 THE SENSORIA 1,098 850,000 774 FH

28 SELETAR PARK RESIDENCE 1,012 970,000 959 99

28 GRANDE VISTA 2,702 1,920,000 711 999

Documents

Singapore Property Weekly Issue 264