Singapore Property Weekly Issue 54

Issue 54 Copyright © 2011-2012 www.Propwise.sg. All Rights Reserved.

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CONTENTS p2 Singapore Property News This Week

p7 Developer Sentiment on Property

Market Unexpectedly Improves

p10 Resale Property Transactions

(May 16 – May 22)

Welcome to the 54th 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 54

Singapore Property This Week

Page | 2 Back to Contents

Residential

Latest CBS figures reflects effective

cooling measures

58.3% of the 15,410 Singaporeans/PRs

granted private home mortgages (including

refinancing cases) in Q1 2012 did not have

any outstanding home loans either for a HDB

flat or private residential property, compared

to the 56.4% and 53% for the whole of 2011

and 2010 respectively. This may be due to

effects of ABSD in deterring property

investment.

However, the data may not be very accurate

since some banks classify ECs as private

homes while others classify it as HDB flats,

which are excluded in the analysis. Also, as

some borrowers could be joint applicants for a

single loan, the total number of private home

mortgages granted in Q1 2012 to

Singaporeans and PRs is 10,741 but if

individual applicants were looked at, the

number would be a higher 15,410.

Furthermore, the data includes both both new

home loan and refinancing cases since the

cases uploaded on the CBS database are not

differentiated. However, since refinancing

cases may be due to the lower interest rates

and more attractive loan terms, the inclusion

of such cases may not affect the analysis

significantly.

The proportion of first-loan cases for non-PR

foreigners increased from 77.8% in 2010 to

82.5% in 2011 before falling to 79.7% in Q1



2012, compared to the proportion for

Singaporeans/PRs, which is around 60%,

suggests that the non-PR foreigners are

mainly buying their first property.

NUS Singapore Residential Price Index

shows a fall in prices for small apartments

The NUS Singapore Residential Price Index

(SRPI) sub-index for small apartments (up to

506 sq ft) fell by 1.2% in April while the overall

SRPI for April increased by 0.8%. The SRPI

sub-index for the Central Region (excluding

small units) increased by 1.6% but the sub-

index for the Non-Central Region (excluding

small units) remained unchanged. The

increase in the sub-index for the Central

Region was predicted since there was more

higher value transactions in April with a

median price for properties in the region at

$1,580 psf and 36 transactions of $2,000 psf

or higher, compared to a median price was

$1,500 psf and 20 transactions of $2,000 psf

or higher in March.

99-year leasehold Jurong Gateway condo

site draws 12 bids

The 99-year private residential site located

near Jurong East MRT Station attracted a

total of 12 bids, with the top bid from MCL

Land at $369.388 million or $705.10 psf ppr, a

mere 0.08% above the second highest bid of

$369.1 million or $704.55 psf ppr. The 12 bids

reflects the potential of the site, which is

located in the Jurong Gateway precinct, near

Jurong East MRT Station and bus

interchange and the upcoming malls Jem and

Westgate as well as the upcoming Ng Teng

Fong Hospital and Ng Teng Fong Community

Hospital. MCL plans to develop the site into a

part 25-storey and part 38-storey



development with almost 600 residential units

that comprises mainly one and two-bedroom

units with some three-bedroom and four-

bedroom units. The expected breakeven cost

is around $1,100 psf while the expecting

average selling price is around $1,300-1,500

psf.

4,627 new flats launched with six new BTO

projects

HDB is launching six BTO projects with 4,627

flats ranging from studio apartments to five-

room flats in three non-mature towns (Choa

Chu Kang, Punggol, and Sengkang), and one

mature town (Kallang/Whampoa). At least

95% and 85% of the flats (excluding studio

apartments) in mature towns and non-mature

towns respectively are reserved for first

timers and additional balloting chances for the

BTO projects at Compassvale Boardwalk in

Sengkang, Keat Hong Pride in Choa Chu

Kang, Punggol Edge and Waterway SunDew

(in Punggol Town) will be given to first-timers

who had been unsuccessful in previous

applications for two or more BTOs in non-

mature towns/estates.

Punggol Edge near Edgedale Plains and

Tampines Expressway consists of five blocks

making up 688 flats and one block of 446

rental units. Prices for a three-room flat at

Punggol Edge and Waterway SunDew start

from $163,000 while prices for a five-room

unit start from $326,000. In Choa Chu Kang,

a three-room flat in in Keat Hong Pride start

from $138,000 while prices for a five-room flat

start from $284,000. Prices for studio

apartments at Bendemeer Light and McNair

Towers start from $124,000 while a four-room

unit in the same town starts from $467,000.



Top bid for 99-year Sengkang condo site

at $383.333m

The 99-year leasehold site located near

Sengkang MRT Station and Compass Point

mall attracted a total of five bids, with the top

bid at $383.333 million or $527.65 psf ppr

from EL Development. While the five bids

reflect the expected competition in the region

from upcoming supply, the top bid, which was

10% higher than the next highest bid

suggests EL Development’s thirst for land. EL

Development’s plan for the project includes

14 15-storey blocks making up a total of more

than 800 units ranging from one-bedroom to

four-bedroom and dual-key units. There will

also be an Olympic-sized pool and at least

one tennis court and a clubhouse. The

project, which may be launched by Q! 2013,

have an estimated breakeven cost and

average selling price of $900 psf and $1,000-

1,050 psf, respectively.

Commercial

99-year leasehold hotel site in Jurong on

reserve list

A 97,166 sq ft hotel site along Jurong Town

Hall Road has been released under the

reserve list. The first hotel site released in the

Jurong Lake district, its 2.1 plot ratio means

that it can yield a maximum GFA of 204,051

sq ft or 500-530 hotel rooms. Some believe

that the site would not be triggered since

there is no established hotel market in

suburban areas and the proposed Jurong

Lake District commercial hub is not fully

developed, despite the site’s proximity to

Jurong East MRT station. However, if the site

is to be triggered, the site may fetch a top bid



of $170-185 million or $833-907psf ppr.

House of Tan Yeok Nee said to be sold to

ERC Holdings

Two-storey freehold House of Tan Yeok Nee,

a gazetted national monument, is said to be

in the process of being sold to private

commercial-school operator ERC Holdings for

around $60 million. Located at the corner of

Penang Road and Clemenceau Avenue, its

58,000 sq ft of strata area is currently

occupied by The University of Chicago Booth

School of Business, which will likely continue

to lease the space for a few years.

http://www.moneymatters.sg/



Developer Sentiment on Property Market Unexpectedly Improves

By Mr. Propwise

Many observers of the Singapore property

market believe that based on a host of local

and external factors, sentiment towards

buying real estate should be weak. Locally,

we have a large amount of upcoming supply

coming on to the market in the next few

years, and greater caution on the part of the

government in letting too many foreigners in

due to political pressure. Externally, we have

plummeting stock markets worldwide, weak

employment numbers in the United States

and an uncertain situation in Europe. If any

crisis happens, Singapore will certainly not be

spared given the open nature of our

economy.



Based on the above laundry list of worries, a

rational person could be expected to come to

the conclusion that property sentiment and

sales should thus be weakening. But he’d be

wrong. Strong demand at some mass market

condo launches have led to increased

optimism among developers and has in turn

supported developer demand for landbank

replenishment outside of the central areas.

And you can’t blame the developers – despite

all the things they should be worried about,

what they see is buyers lapping up projects

they put up for sale, and record prices being

achieved for certain areas.

Developer sentiment index finally rises

after four declining quarters

The 1Q12 REDAS-NUS sentiment index

(composite), a quarterly survey that senior

executives of most major developers

participate in to gauge their sentiment

towards the market, after four declining

quarters, finally increased to 4.6 in the first

quarter (versus the trough of 3.3 last quarter).

A score below 5 (out of 10) reflects a belief

that property market conditions are

worsening, but the change in the index over

time is reflective of the trend of developer

sentiment.

The Composite Sentiment Index is made up

of the Current Sentiment Index and the

Future Sentiment Index. The Current

Sentiment Index, which asks survey

respondents to rate current conditions versus

six months ago, improved from 3.5 in 4Q11 to

4.8 in 1Q12. The Future Sentiment Index,

which asks survey respondents to rate their

expectations of market conditions over the

next six months, improved from 3.1 in 4Q11



to 4.4 in 1Q12.

Furthermore, 77% of developers surveyed

expected more residential property launches

over the next six months, up from 54% last

quarter. Only 35% of developers surveyed in

1Q12 expected moderately lower prices for

the next six months, versus 67% the last

quarter.

Strong demand for landbank remains

Developers’ optimism about the residential

market, and in particular the mass market

residential segment, has translated into

strong demand for suburban condo sites. The

recent tenders for condo plots in Jurong and

Sengkang, which were both sold for higher

PSF PPR prices than similar nearby plots

bought two years ago, show that developers

continue to believe in the strength of this

segment, and are betting with their wallets

that prices will not come down significantly (if

at all).

Are they justified in this belief? Only time will

tell…

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



Non-Landed Residential Resale Property Transactions for the Week of May 16 – May 22

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

3 THE REGENCY AT TIONG BAHRU 926 1,370,000 1,480 FH

4 HARBOURLIGHTS 829 1,265,000 1,526 FH

4 CARIBBEAN AT KEPPEL BAY 1,216 1,825,000 1,500 99

4 HARBOUR VIEW TOWERS 797 1,120,000 1,406 99

5 ONE-NORTH RESIDENCES 603 970,000 1,609 99

5 CLEMENTIWOODS CONDOMINIUM 1,001 1,210,000 1,209 99

5 KENTVIEW PARK 1,184 1,350,000 1,140 FH

5 TREASURE PLACE 1,356 1,500,000 1,106 FH

5 THE FOLIAGE 1,141 1,250,000 1,096 FH

5 THE FOLIAGE 1,690 1,600,000 947 FH

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

5 VARSITY PARK CONDOMINIUM 2,228 2,045,000 918 99

5 BUONA VISTA GARDENS 1,647 1,368,000 831 FH

7 TEXTILE CENTRE 883 795,000 901 99

7 TEXTILE CENTRE 883 795,000 901 99

8 KERRISDALE 1,259 1,354,000 1,075 99

8 RACE COURSE 138 1,184 1,160,320 980 FH

8 RACE COURSE 138 1,141 1,117,200 979 FH

9 VIDA 517 1,180,000 2,284 FH

9 RIVERGATE 1,023 2,030,000 1,985 FH

9 WATERMARK ROBERTSON QUAY 1,055 1,900,000 1,801 FH

9 ROBERTSON 100 883 1,470,000 1,665 FH

10 REGENCY PARK 3,649 6,700,000 1,836 FH

10 DUCHESS MANOR 990 1,633,000 1,649 999

10 DLV. 743 1,138,000 1,532 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

10 THE TESSARINA 1,410 2,050,000 1,454 FH

10 VALLEY PARK 1,173 1,640,000 1,398 999

10 THE TESSARINA 1,324 1,850,000 1,397 FH

10 FAIRLODGE 1,313 1,630,000 1,241 FH

10 THE SERENADE @ HOLLAND 1,539 1,720,000 1,117 99

11 DUNEARN GARDENS 1,249 2,300,000 1,842 FH

11 MONTEBLEU 807 1,330,000 1,647 FH

11 NINETEEN SHELFORD ROAD 646 960,000 1,486 FH

11 M21 1,066 1,500,000 1,408 FH

11 THE ANSLEY 1,281 1,680,000 1,312 FH

11 PASADENA 1,410 1,850,000 1,312 FH

11 ADAM PARK CONDOMINIUM 1,109 1,365,000 1,231 FH

11 THE ARCADIA 3,735 4,200,000 1,124 99

12 TRELLIS TOWERS 549 850,000 1,548 FH

12 THE BELLEFORTE 1,023 1,250,000 1,222 FH

12 D'LOTUS 1,066 1,200,000 1,126 FH

13 MEYA LODGE 1,216 1,190,600 979 FH

14 ATRIUM RESIDENCES 947 940,000 992 FH

14 SIMSVILLE 980 865,000 883 99

15 THE SEA VIEW 1,647 2,650,000 1,609 FH

15 THE ATRIA AT MEYER 1,345 1,800,000 1,338 FH

15 HAWAII TOWER 2,239 2,860,000 1,277 FH

15 THE MEYER PLACE 1,367 1,728,888 1,265 FH

15 EASTERN LAGOON 753 940,000 1,248 FH

15 EAST VIEW 1,098 1,308,800 1,192 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 THE MAKENA 1,636 1,905,000 1,164 FH

15 FORTUNE JADE 1,087 1,150,000 1,058 FH

15 DE CASALLE 1,184 1,120,000 946 FH

15 LAGUNA PARK 1,615 1,520,000 941 99

15 MANDARIN GARDEN CONDOMINIUM 1,572 1,400,000 891 99

15 LEGENDA AT JOO CHIAT 1,238 1,080,000 872 99

15 THE PROMINENCE 1,970 1,480,000 751 FH

15 TELOK INDAH 1,399 975,000 697 99

16 COSTA DEL SOL 1,313 1,650,000 1,256 99

16 EAST MEADOWS 861 895,000 1,039 99

16 IDYLLIC EAST 1,033 998,000 966 FH

16 BAYSHORE PARK 1,292 1,230,000 952 99

16 CHANGI COURT 1,163 1,080,000 929 FH

16 PARBURY HILL CONDOMINIUM 1,206 1,060,000 879 FH

17 FERRARIA PARK CONDOMINIUM 883 860,000 974 FH

18 LIVIA 1,345 1,310,000 974 99

18 CHANGI RISE CONDOMINIUM 1,496 1,220,000 815 99

18 SAVANNAH CONDOPARK 1,733 1,230,000 710 99

18 MELVILLE PARK 1,335 920,000 689 99

18 MELVILLE PARK 1,399 959,000 685 99

19 KOVAN MELODY 904 1,065,000 1,178 99

19 THE SPRINGBLOOM 1,453 1,390,000 957 99

19 NOUVELLE PARK 1,173 1,085,000 925 FH

19 CHUAN PARK 1,528 1,340,168 877 99

19 ROSALIA PARK 1,690 1,380,000 817 FH

20 GOLDENHILL PARK CONDOMINIUM 1,561 1,980,000 1,269 FH

20 GRANDEUR 8 1,195 1,195,000 1,000 99

20 THE GARDENS AT BISHAN 2,411 2,000,000 829 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

21 THE CASCADIA 1,507 2,650,000 1,759 FH

21 PINE GROVE 1,744 1,550,000 889 99

21 PINE GROVE 1,755 1,500,000 855 99

21 SHERWOOD TOWER 1,485 995,000 670 99

23 HILLBROOKS 1,238 1,250,000 1,010 FH

23 HILLINGTON GREEN 1,528 1,528,000 1,000 999

23 HILLINGTON GREEN 2,669 2,120,000 794 999

23 PALM GARDENS 958 760,000 793 99

23 REGENT HEIGHTS 1,023 778,000 761 99

25 ROSEWOOD 1,023 820,000 802 99

26 SEASONS PARK 1,249 1,038,000 831 99

26 FOREST HILLS CONDOMINIUM 1,227 895,000 729 99

27 EUPHONY GARDENS 2,196 1,230,000 560 99

Documents

Singapore Property Weekly Issue 54