Singapore Property Weekly Issue 49

Issue 49 Copyright © 2011-2012 www.Propwise.sg. All Rights Reserved.

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CONTENTS p2 Singapore Property News This Week

p8 What the First Quarter 2012 URA Numbers

Tells Us About the Property Market

p12 Resale Property Transactions

(April 11 – April 17)

Welcome to the 49th 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 49

Singapore Property This Week

Page | 2 Back to Contents

Residential

Thomson View Condo and Kemaman View

up for collective sale

99-year leasehold (with 62 years

remaining)Thomson View Condominium

along Upper Thomson Road is asking for

$580 million or $685 psf ppr including $107

million to enhance the land use and another

$90 million to top up the lease. If the

development charge of $ 46 million for the

additional 10% GFA for balcony area is

included, the price would be $659 psf ppr.

Thomson View Condominium consists of 200

flats, 54 townhouses and a shop unit sitting

on a 540,314 sq ft land area zoned for

residential use with a 2.1 gross plot ratio. The

site is surrounded by private properties.

Freehold Kemaman View at Jalan Kemaman

is asking for $46-48 million or $945-986 psf

ppr. The site’s GFA is 53,813 sq ft and can be

extended by 10% for balcony allowance,

which will bring the price to $825-859 psf ppr

including a $2.8 million development charge.

30 units (1,324 sq ft) sit on the 17,388 sq ft

site zoned residential with a 2.8 gross plot

ratio. It could potentially yield 98 600-sq ft

apartment units with an expected break-even

price and selling price of $1,266 psf and

$1,400-1,600 psf respectively.

The tender for the former closes on May 22,



while the latter closes on May 23.

Residential rents likely to remain high in

Q2

Rental demand for homes (non-landed

homes especially) have been on the rise and

this trend is likely to continue in Q2, given the

increase in home prices and the ABSD.

Transactions in January and February each

hit above 3,000, with 3,466 transactions in

February. Median rents for landed and non-

landed residential homes excluding ECs also

continued rising, with rents for non -landed

homes increasing by 1% from January to

$3.53 psf per month in February 2012, an 8%

increase from February 2011, and rents for

landed homes increasing by 6% in the same

period to $2.77 psf per month, a 14%

increase from 2011. The total median rents

from both landed and non-landed homes in

February and January hit $35 million,

increasing by 15% from 2011. This rise may

be due to the influx of expatriates moving to

Singapore. Meanwhile, rents for high-end,

non-landed residential property fell by 2%

from Q4 2011 to $5.17 in Q1 2012.

Recovery in private home resale market

after ABSD setback

Resale transaction volumes for March 2012

show the recovery of the private home resale

market back to pre-ABSD levels, which may

a result of high psf prices at new launches

leading to homebuyers considering resales.

There were 1,142 resale deals for private

homes (excluding ECs and en bloc sales) in

March so far, twice the 565 deals in February

and more than triple the 314 deals in

January. Total resale transactions in Q1 is

2,021,



almost a 25% fall from Q4 2011 and a 42.3%

fall from Q1 2011’s 3,503 since sales in

January and February was slow. While psf

prices for new launches are higher, the

absolute prices for resales are usually higher

since the units are larger in size. Age of the

project and its facilities may also result in a

lower psf price for resales.

Watercolours EC to be launched

99--year leasehold 416-unit Watercolours EC

located at the intersection of Pasir Ris Drive 3

and Pasir Ris Link and near Pasir Ris MRT

and Pasir Ris Beach is to be launched soon.

It consists of four towers with 48 two-

bedroom units (743 sq ft), 280 compact,

standard and dual-key three-bedroom units

(starting from 915 sq ft), 62 standard and

dual-key four-bedroom units and 26 three-

and four-room penthouses.

Novena Ville in the en bloc market

43-unit freehold mixed-use Novena Ville

sitting on a 51,092 sq ft land is asking for

$125-135 million or $1,748-1,887 psf ppr

based on its 1.4 gross plot ratio. Including the

additional 10% balcony allowance, the price

would be $1,626-1,756 psf ppr since there is

no development charge. Zoned "residential

with commercial at 1st storey", it can be

redeveloped up to a maximum height of four

storeys. It will likely attract medium and large

developers since it is located near Novena

MRT station and shopping malls such as

Velocity @ Novena Square.

The tender closes on May 24.

Rental transactions in RCR increased in

Q1

Q1 2012 saw 2,025 rental transactions in the



rest of central region (RCR), a 25.5%

increase from Q4 2011. Rental transaction

volume in the core central region (CCR) was

2,165, a slight decrease from Q4 2011’s

2,181 while the transaction volume in outside

central region (OCR) increased slightly from

2,604 to 2,656 in the same period. The

overall rental transaction volume in Q1

increased by 7.0% in Q1 2012. The high

transactions volumes in the RCR could be a

result of tighter rental budgets, which meant

that expatriates will seek more RCR units

than CCR units. The overall rental transaction

volume in Q1 suggests a strong rental market

which is possibly a result of the relaxing of

immigration policy.

The RCR rental rates did not do as well, as

there is only a slight 1.9% increase from

$3.69 psf in Q4 2011 to $3.76 psf in Q1 2012,

possibly a result of increased supply from

substantial new launches in the region.

Average CCR rental rates fell from $4.68 psf

in Q4 2011 to $4.66 in Q1 2012 while average

OCR rents also fell from $2.99 to $2.98 in the

same period.

Rental transaction volumes are expected to

remain stable with a potential slight increase

in later quarters while rental rates may also

increase, driven by rental activity for shoe-box

apartments.

Not an over-supply, but a shortage

Earlier reports suggested that the large

amount of land supply from GLS is too much

but some consultants now feel that instead of

an over-supply, there may be a shortage.

Latest URA figures suggest that there may be

a shortage in the Outside Central Region

(OCR).



Resale flat prices saw a slowdown in Q1

2012

The number of applications for resale flats fell

by 0.5% to 5,892 in Q1 2012 from Q4 2011.

Much of the fall was a result of decreased

demand for larger type units, such as five-

room and executive flats as buyers turn to

BTO flats. Prices also increased by a mere

0.6% in Q1 2012 compared to a 1.7%

increased in Q1 2011.

ECs to benefit from lack of DBSS activity

As there is no recent DBSS activity, ECs may

benefit from demand in the DBSS market. As

Singaporeans continue to gain more wealth,

they may consider upgrading to ECs, a

public-private housing hybrid.

Meanwhile, SingXpress Land has launched

Pasir Ris One, a 447-unit DBSS development

near Pasir Ris MRT Station and White Sands

Shopping Centre. Units may go for an

average of$639 psf, with prices for 3-room to

5-room units range from $390,000 to

$770,000, which are considered fairly

reasonable though buyers may prefer ECs,

which would become private homes after 10

years. Many potential buyers might have

purchased BTO flats, resale flats and ECs,

affecting the demand for DBSS units.

Commercial

Competitive bids expected for Tai Seng

industrial site

The 30-year leasehold 0.43-hectare industrial

site at Tai Seng Link zoned Business 2 with

2.5 permissible gross plot ratio is expected

the draw eight to 17 bidders with a top bid of

$100-170 psf ppr. Being located in Paya

Lebar iPark(developed as a lifestyle park) and

near Tai Seng MRT station,



its location is both a boon and a bane since

its proximity to the MRT station would mean

that no strata sub-division is allowed in the

first 10 years of its completion though this

factor is unlikely to affect the popularity of the

site, judging from recent industrial land sales

near MRT stations. The relative scarcity of

sites in mature industrial Tai Seng area also

adds to its attractiveness.

The tender will close on June 19.

Industrial price index saw 7.3% increase

in Q1

URA’s industrial price index showed a 7.3%

increase from Q4 2011, compared to the

previous 4% increase from Q3 2011, while

the rental index saw a 1.3% in the same

period, compared to 0.6% in Q4 2011. The

prices may be a result of speculation rather

than actual demand, since the interest rates

are low and residential investors have been

turning to this market since the introduction of

the ABSD. Some buyers may also be buying

up these units in anticipation of limited supply

as a result of new conditions on strata-

subdividing units. The multiple-user factory

price index and rental rates increased by

7.2% and 1.3% respectively while the

multiple-user warehouse price index and

rents increased by 8.8% and 1.9%

respectively in Q1 2012. The number of

strata factory transactions also rose 21.9% to

478 in Q1 2012 from 392 in Q4 2011, a result

of attractive launches and the relative

affordability of such units. Prices for strata

industrial office (in multiple user factory) may

fall by 5-10% in this year since both tenant

and speculative demand are decreasing while

overall industrial rents could decrease by 3%

in 2012..



What the First Quarter 2012 URA Numbers Tells Us About the Property Market

By Mr. Propwise

The Urban Redevelopment Authority (URA)

recently released their 1Q12 real estate

statistics, and in this article we will look at the

patterns emerging from the numbers for both

the residential and non-residential (office,

shop and industrial) segments.

Residential – Prices fall for the first time

since 2Q09

The URA Private Property Index (PPI) fell by

0.1% in 1Q12, the first decline since 2Q09

after 10 quarters of growth. However, it is still

up 3.5% on a Year-on-Year basis and is

16.1% and 13.6% above the previous 2Q08

and 2Q96 highs respectively.



If we drill further down into the numbers, an

interesting pattern emerges. The Property

Price Indices for the Core Central Region and

Rest of Central Region both fell by 0.6%,

while the Outside Central Region Price Index

rose by 1.1%. Not only did prices in the

Outside Central Region increase, but it re-

accelerated from the 0.6% increase in 4Q11.

We can interpret this phenomenon as

continued bullishness in the mass market

segment, while the luxury and mid-to-high

end markets seem to be stalling. Perhaps the

impact of the Additional Buyers Stamp Duty,

which affects foreigners and PRs more than

locals, is finally being felt. But the increase in

the mass market segment, driven mainly by

locals who are still jumping into the market

despite many rounds of cooling measures by

the government, should be a cause for

concern.

Developer sales of smaller, cheaper and

less central apartments driving the market

While new sales are still hot, developers have

been taking the opportunity to launch more

projects for sale, putting a total of 6,903

uncompleted private residential units on the

market, a 68% increase over the 4,105 units

in 4Q11. And they’ve been successful in

selling them, with 6,458 units sold versus

3,525 units in 4Q11, and 83% increase.

Shoe-box units (defined as smaller than 50

sqm) accounted for 27% of new sales in the

quarter. Cheaper units of less than $750,000

accounted for 42% of new sales, a large jump

from 25% last quarter. Most of the units sold

were in the suburbs, as an all-time high of

82% of new units sold by developers were

from the Outside Central Region. To sum up,

the sales of smaller,



cheaper and less central apartments are

increasing, and are now the driving force in

the market.

But the resale market is cooling

Meanwhile, as developer sales continue to be

strong, the resale market has been cooling

with the volume of resale transactions

declining for the third straight quarter to 1,906

units in 1Q12, the lowest since 1Q09. Also as

a proportion of total sales, resale transactions

have hit an all time low of 21.8%, while the

prices for resale properties fell by 0.7%

versus the 0.2% increase for uncompleted

non-landed properties.

What these numbers are saying is that buyers

are increasingly neglecting the resale market

while still chasing new launches by

developers, despite the often large price

premium of new units even when compared

to neighboring completed projects. I believe

that together with the increasing sales of

mass market properties, this is a sign that the

sophisticated buyers are staying out of the

market while the unsophisticated buyers are

falling for the glitzy marketing of developers

and agents and lapping up the new launches

while ignoring the bargains to be had next

door.

Supply in the pipeline hits all-time high

There was a total supply of 78,572

uncompleted private residential units from

projects in the pipeline, a 1.9% increase from

4Q11 and the highest recorded since such

data was fist available in 1999. Another 4,100

units are expected to be added to this number

from the 1H12 Government Land Sales

Programme. 46.5% or 36,552 of these units

remain unsold as of 1Q12.

Rentals are still rising as seen by the 0.3%

increase in the 1Q12 Rental Index,



but the rate of increase has been falling by

three quarters. The vacancy rate of

completed private residential units increase

by 0.1% to 6.0% at the end of 1Q12.

Industrial property prices surged, while

office rentals decline

In the non-residential space, the standout

sector is industrial property, with the Industrial

Price Index surging by 7.3% in 1Q12 after a

4.0% increase in 4Q11. Compare this with the

poor showing of the Office Price Index which

was flat and the Shop Price Index which

edged up slightly to 0.2%. If you’re interested

in industrial property, we’ve written an article

on the URA guidelines for development types

and also on the controversy over shoe-box

industrial units.

Rentals for office space based on leases

which had commenced decreased by 0.5% in

1Q12, versus rental for shop space which

increased by 0.1%, and industrial property

which increased by 1.8%. The weakness in

office rental could be due to the increase in

supply of office space, with a stock increase

of 97,000 sqm versus a 53,000 sqm increase

in occupied space. The weakness in office

rentals seem to be driven by Category 1

office space (centrally located high quality

office space), with the vacancy rate in this

category jumping from 15.6% in 4Q11 to

18.9% in 1Q12.

Overall, my read of the 1Q12 URA numbers is

that we are nearing (or already past) the end

of the bull market as less sophisticated

investors rush into the market (buying up

smaller quantum shoebox residential and

industrial units located in less central areas),

while the sophisticated ones stay on the

sidelines. More than ever, let the buyer

beware.

http://www.propwise.sg/understanding-uras-land-use-planning-and-development-types/









http://www.propwise.sg/should-shoe-box-factories-be-allowed/













Non-Landed Residential Resale Property Transactions for the Week of Apr 11 – Apr 17

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE SAIL @ MARINA BAY 689 1,750,000 2,540 99



3 RIVER PLACE 1,281 1,780,000 1,390 99

3 RIVER PLACE 797 1,168,880 1,467 99

3 RIVER PLACE 807 1,100,000 1,363 99

4 MARINA COLLECTION 2,185 6,227,250 2,850 99

4 CARIBBEAN AT KEPPEL BAY 1,356 2,130,000 1,570 99

4 CARIBBEAN AT KEPPEL BAY 1,227 1,765,000 1,438 99

5 THE PARC CONDOMINIUM 1,302 1,300,000 998 FH

7 TEXTILE CENTRE 883 680,000 770 99

8 CITIGATE RESIDENCE 570 797,000 1,397 FH

8 R66 APARTMENTS 474 715,000 1,510 FH

9 BELLE VUE RESIDENCES 4,887 12,230,000 2,503 FH

9 ORCHARD VIEW 2,530 6,732,000 2,661 FH

9 TRIBECA 1,905 3,657,600 1,920 FH

9 WATERMARK ROBERTSON QUAY 1,733 2,728,000 1,574 FH

9 THE COSMOPOLITAN 1,141 2,339,050 2,050 FH

9 WATERMARK ROBERTSON QUAY 1,076 1,870,000 1,737 FH

10 DRAYCOTT EIGHT 2,863 6,650,000 2,323 99

10 LATITUDE 2,766 5,615,300 2,030 FH

10 REGENCY PARK 2,250 4,050,000 1,800 FH

10 GLENTREES 3,132 3,836,700 1,225 999

10 SOMMERVILLE PARK 1,948 3,100,000 1,591 FH

10 LATITUDE 1,324 2,912,800 2,200 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

10 THE SIXTH AVENUE RESIDENCES 1,787 2,700,000 1,511 FH

10 SPRING GROVE 1,668 2,600,000 1,558 99

10 SPRING GROVE 1,389 2,100,000 1,512 99

10 JERVOIS REGENCY 947 1,288,888 1,361 FH

11 THE SHELFORD 1,389 2,210,000 1,592 FH

11 DUNEARN GARDENS 1,249 2,100,000 1,682 FH

11 THOMSON 800 1,625 1,950,000 1,200 FH

11 D'CHATEAU @ SHELFORD 915 1,468,000 1,604 FH

12 SUMMER GREEN 1,292 1,300,000 1,006 FH

12 MOONSTONE RESIDENCES 1,238 1,193,200 964 FH

12 MOONSTONE VIEW 947 957,000 1,010 FH

14 REGAL 35 2,788 1,400,000 502 FH

14 DENG FU VILLE 1,528 1,350,000 883 FH

14 THE WATERINA 1,130 1,210,000 1,071 FH

14 LE CRESCENDO 947 1,108,000 1,170 FH

14 CASA EMERALD 1,851 1,000,000 540 FH

14 THE MIDAS 1,141 992,000 869 FH

14 ASTORIA PARK 958 940,000 981 99

14 SKT MANSIONS 1,012 850,000 840 FH

14 CRYSTAL LODGE 1,152 775,000 673 FH

15 GRAND DUCHESS AT ST PATRICK'S 3,165 4,200,000 1,327 FH

15 THE WATERSIDE 2,142 2,850,000 1,331 FH

15 VERTIS 2,099 2,476,820 1,180 FH

15 AMBER RESIDENCES 1,163 1,600,000 1,376 FH

15 THE SEAFRONT ON MEYER 1,066 1,600,000 1,501 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 MANDARIN GARDEN CONDOMINIUM 1,572 1,500,000 954 99

15 MANDARIN GARDEN CONDOMINIUM 1,528 1,500,000 981 99

15 TEMBELING COURT 1,345 1,300,000 966 FH

15 BLU CORAL 1,141 1,250,000 1,096 FH

15 VILLA MARINA 1,249 1,180,000 945 99

15 EMERALD EAST 926 1,100,000 1,188 FH

15 DE CENTURION 775 1,098,000 1,417 FH

15 CALLIDORA VILLE 753 930,000 1,234 FH

16 THE SUMMIT 1,249 1,250,000 1,001 FH

16 STRATFORD COURT 1,507 1,080,000 717 99

16 BAYSHORE PARK 936 865,000 924 99

16 STRATFORD COURT 990 850,000 858 99

16 THE DAFFODIL 732 750,000 1,025 FH

17 JLB RESIDENCES 1,615 1,460,000 904 946

17 FERRARIA PARK CONDOMINIUM 1,324 1,330,000 1,005 FH

17 COASTAL VIEW RESIDENCES 840 870,000 1,036 999

18 LIVIA 1,410 1,240,000 879 99

18 CHANGI RISE CONDOMINIUM 1,496 1,220,888 816 99

18 SAVANNAH CONDOPARK 1,238 995,000 804 99

18 CHANGI RISE CONDOMINIUM 1,259 992,000 788 99

19 STADIA 1,787 1,380,000 772 FH

19 NOUVELLE PARK 1,615 1,365,000 845 FH

19 8 EDEN GROVE 1,389 1,138,500 820 FH

19 CENTRAL VIEW 1,206 950,000 788 99

19 RIVERVALE CREST 1,195 910,000 762 99

19 REGENTVILLE 980 797,000 814 99

20 GOLDENHILL PARK CONDOMINIUM 1,335 1,711,118 1,282 FH

20 FAR HORIZON GARDENS 1,948 1,400,000 719 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

21 THE CASCADIA 1,249 2,109,000 1,689 FH

21 THE CASCADIA 990 1,795,000 1,813 FH

21 THE BLOSSOMVALE 1,367 1,780,000 1,302 999

21 HILLVIEW GREEN 1,722 1,500,000 871 999

21 THE HILLSIDE 1,313 1,200,000 914 FH

21 THE BLOSSOMVALE 840 1,100,000 1,310 999

22 THE CENTRIS 1,238 1,454,288 1,175 99

22 PARC OASIS 1,378 1,128,000 819 99

22 IVORY HEIGHTS 1,668 1,055,000 632 100

22 THE CENTRIS 915 1,006,500 1,100 99

22 LAKEHOLMZ 1,324 950,000 718 99

23 HILLVIEW REGENCY 1,109 958,888 865 99

23 REGENT GROVE 1,163 843,000 725 99

23 HILLVIEW REGENCY 904 815,000 901 99

23 PALM GARDENS 958 780,000 814 99

23 REGENT HEIGHTS 1,023 750,000 733 99

26 CASTLE GREEN 1,216 880,000 723 99

27 ORCHID PARK CONDOMINIUM 1,249 870,000 697 99

Documents

Singapore Property Weekly Issue 49