Issue 191

Copyright 2011-2014 www.Propwise.sg. All Rights Reserved.

CONTENTS
p2

FROM THE

EDITOR

3 Property Investment Mistakes You

Welcome to the 191st edition of the

Singapore Property Weekly.

Should Avoid In 2015

Hope you like it!

p6

Singapore Property News This Week

p11

Resale Property Transactions

Mr. Propwise

(December 31 January 6 )

Contribute

Advertise

Do you have articles and insights and articles that youd like to share
with thousands of readers interested in the Singapore property
market? Send them to us at info@propwise.sg, and if theyre good
enough, well publish them here, on our blog and even on Yahoo!
News.

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.

SINGAPORE PROPERTY WEEKLY Issue 191

3 Property Investment Mistakes You Should Avoid In 2015

By Property Soul (Guest Contributor)

Mistake #1: Rush in and get burnt

According to the URA, there are 88,627
uncompleted
private
residential
units
(including ECs) in the pipeline. As at 3rd
Quarter 2014, 28,120 units (excluding ECs)
have been launched but remain unsold. For
public flats, the HDB will launch another
16,900 BTO flats this year.

No matter what your New Year resolutions

are, its time you said goodbye to your bad
habits in property investment. If you are
buying a private home in 2015, avoid making
these three common mistakes.

Back to Contents

Do the math. Ninety percent of resident

households already own their homes.
Population growth in Singapore is a recordlow 1.3 percent in 2014.

Page | 2

SINGAPORE PROPERTY WEEKLY Issue 191

For the past five years, the annual increment
in the number of resident households ranges
from 3,000 to 22,500. Assuming there are two
persons in each new household, every year
only 1,500 to 11,250 new homes are needed.
Among the 81.9 percent of HDB dwellers who
have plans to upgrade to condominiums, the
sale of their home is difficult due to falling
HDB resale prices. Furthermore, buyers of
HDB flats and ECs have to pass the 30
percent Mortgage Servicing Ratio, just like
many owners with multiple properties have
their hands tied by the Total Debt Servicing
Ratio.

Foreign buyers have to bite the bullet for a

higher Additional Buyer Stamp Duty and
lower Loan to Value. In 2014, the growth of
foreigners has slowed down to 2.9 percent.
Foreign employment growth also dropped to
3 percent.
Back to Contents

Even if you build, they wont come.

Let developers solve their own problem. But
dont let their problem become yours. You
dont want to be left holding a hot potato.
The property market slowdown is just starting.
Patience is key if you are looking for a real
bargain. Sit back and wait for the demand to
dry up.

Mistake #2: Be caught unprepared

We've heard the Fed talking about raising
interest rates too many times. Just when
everyone grows tired of the cry wolf game,
the untamable animal is getting ready to
attack in 2015. It stalks the prey silently in the
dark. And when it finally attacks, it bites
agilely and furiously, pouncing on it
repeatedly in a short period of time.
Take an example from one of my rental
properties.
Page | 3

SINGAPORE PROPERTY WEEKLY Issue 191

In mid-2005, I was still paying an interest rate
of 1.3 percent. After three to four rounds of
interest rate revisions, with the step-up rate of
a variable-rate loan, the rate had already
been raised to 4 percent by the end of 2006.
If you are contemplating buying a private
home, rather than using the arbitrary 3.5
percent interest rate from TDSR, you are not
being too conservative to use 4 percent for
your calculations.
For those who have an existing home loan,
call the banks now to ask for their latest
housing loan packages. Don't wait till your
bank sends you the letter on an interest rate
revision.
Paying higher interest takes effect the
following month, but repricing and refinancing
will take time to process. Even after approval,
it needs another three months to be effective.
Back to Contents

You have no choice but to pay higher interest

before the adjustment takes place.
Mistake #3: Expect to get rich quick with
properties
If someone tells you that you can buy
properties with little money or using other
peoples cash, dont be too carried away.
They promise to share with you where the
money is. But these profitable investment
opportunities and undervalued assets are
most likely unsold units of overseas property
projects being marked-up and marketed to
you.

I have received countless proposals from

overseas developers who want to market
these projects to my Property Club Singapore
members. Some even put forward the
commission they will offer right in their first
message.
Page | 4

SINGAPORE PROPERTY WEEKLY Issue 191

You can close one eye, buy any property and
still make a handsome profit in a growing
market. But prices in many foreign property
markets are currently at their all-time highs.
There are also countries with structural
economic problems but no turnaround in
sight.
Frankly, real property investors will keep quiet
about which projects they are buying. Instead
of buying jointly with complete strangers
without any background checks, they only
invest with people they know very well.

pill in property investment. And you really

dont have to pay so much for a course and
go around in circles to learn that.
Lastly, don't be distracted by all the noise
around you. Make sure that all the
fundamentals are sound before you make any
decision.
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.

Besides, what make you think that you too

can become a property millionaire, without
the punishing discipline to save, and the
enormous effort to do all the legwork?
The problem of these get-rich-quick property
seminars is that they tend to over-simplify the
strategies. There is no short-cut and no magic
Back to Contents

Page | 5

SINGAPORE PROPERTY WEEKLY Issue 191

Singapore Property This Week

Residential
230 private homes sold in December 2014
In December 2014, developers sold 230
private homes. This was significantly lower
than the 423 units that were sold in
November last year. According to the
Business Times, the lack of launches and
marketing effort could have affected sales of
private homes in December. Not only so,
weak market sentiments could have affected
demand of private homes, said Alice Tan from
Knight Frank. Nonetheless, the sale of new
homes in December last year was
comparable to the 259 units sold last year,

Back to Contents

year-on-year, according to the Urban

Redevelopment Authority. Market experts
predict that there will be fewer units sold this
year, and theyexpect developer sales to
reach 7,000 to 10,000 units this year. Prices
of private homes are expected to fall by 5 to 8
percent, compared to 2014. Nonetheless,
Ong Teck Hui from JLL is optimistic about the
property market in 2015 because he believes
that as the government ease the cooling
measures, buyers will attempt to time their
purchases.
(Source: Business Times)

Page | 6

SINGAPORE PROPERTY WEEKLY Issue 191

SRX: Decs non-landed private residential
rent falls by 0.8%

Decs private condos

increase by 0.1%

From November to December 2014, rents of

non-landed private residential properties have
fallen by 0.8 percent. According to Singapore
Real Estate Exchange, this is the 10th month
that non-landed private residential rents have
fallen. Ong Kah Seng from RST Research
believes that this falling trend will continue
into 2015. He expects rents to fall up to 8
percent by the end of 2015. As foreign labour
supply shrinks, demand for private residential
properties will likely weaken further, said Ong.
Residential rents in the core central region
have fallen by 1.2 percent in December from
November in the last year. On the other hand,
rents in the rest of central region and outside
central region had experienced a smaller fall
of 0.6 percent and 0.3 percent respectively.

According to SRX Property, there was a 0.1

percent rise in resale prices of private condos
in December. However, market experts
believe that this was a blip. Resale prices in
December had been driven by transactions in
suburban areas, according to the Business
Times. Resale prices from units in the outside
central region had increased by 0.5 percent in
December. Nonetheless, transactions in the
core central region and rest of central region
had fallen by 1.1 percent and 1.2 percent
respectively. The SRX non-landed private
residential price index has fallen by 4.2
percent in December, year-on-year. Prices
have fallen by 6.1 percent from January to
December 2014. Christine Li from OrangeTee
said that the current total debt servicing ratio
(TDSR) favours the mass market segment,

(Source: Business Times)

Back to Contents

resale

prices

Page | 7

SINGAPORE PROPERTY WEEKLY Issue 191

as buyers from that segment have a lower
quantum. Li said that the year-on-year
increase in sales volume could mean that
buyers and sellers are adjusting to the TDSR.
(Source: Business Times)
Property prices expected to fall by 3% per
year in 2015 and 2016
Residential property prices are expected to
fall in 2015 and 2016. According to Fitch
Ratings, private and public home prices are
likely to slip by 3 percent per year. On the
other hand, mortgage rates are expected to
increase from 1.5 percent to 2 percent.
Despite the increase in mortgage costs, debt
burdens are still considered low due to a
strong labour market. Singapores macroprudential policies are also likely to cool
demand in the property market.

URA: Geylang will be rezoned

commercial and institutional use only

for

Lorong 4 to Lorong 22 at Geylang will

undergo a rezoning exercise, according to the
Urban Redevelopment Authority (URA). The
rezoning exercise will stretch across 14 ha of
land. Under this exercise, residential projects
will no longer be approved for development
within the 14 ha stretch. Instead, the rezoned
section may only be developed for
commercial or institutional use. Nonetheless,
the maximum plot ratio remains at 2.8. Also,
existing residential projects will be allowed to
remain as they are. The rezoning is expected
to boost land values in the locale and
increase collective sales, said market experts.
URA believes that the rezoning exercise will
decrease friction on the ground between
residents and other users of the area.

(Source: Business Times)

Back to Contents

Page | 8

SINGAPORE PROPERTY WEEKLY Issue 191

Mary Sai from Knight Frank believes that in
the short run, residential value in Geylang will
not improve due to the rezoning. However,
when the commercial developments in the
area matures, residential property value may
increase.
(Source: Business Times)
Units at Marine Blue sold for $1,800$2,000 psf
Marine Blue, which is located near the Grand
Mercure Roxy Hotel at Marine Parade Road,
has been put up for sale. Of the 50 units
released, 31 have been sold for an average
price that is between $1,800 and $2,000 psf.
These include one-bedroom-plus-study, twobedroom units and a penthouse. According to
the Business Times, the average selling price
is about 10 percent lower than the listed
price. The 120-unit condominium is expected
Back to Contents

to attract young professionals and families

due to its proximity to amenities and schools.
(Source: Business Times)

Commercial
JTC: industrial space will be built to meet
demand
To ensure that supply will meet demand, JTC
Corporation will be building a new industrial
space.
The
site
will
target
niche
semiconductor firms, and will consist of
facilities to cater to corporations from the
aerospace,
biomedical
and
chemical
industries. JTC will work with trade
associations, industrialists and partner
agencies to design a ready-built facility to
cater to the specific needs of such
companies. The industrial building is
expected to be four stories high. It would
comprise of common utilities such as bulk
Page | 9

SINGAPORE PROPERTY WEEKLY Issue 191

gases and chilled water to help ease upfront
capital costs for companies, according to
JTC. The site will be located at Tampines
High Tech Park. It would have a total gross
floor area of 22,700 sqm and a plot ratio of
1.7. It is expected to be ready for use in 2017.
(Source: Business Times)
3 office floors at Anson Rd sold for $30
million
3 floors on Hub Synergy Point, a 28-storey
freehold office block on Anson Road has
been sold for $30 million. The 26th level was
sold for $9.97 million or $2,400 psf while both
levels 27 and 28 were sold for $20 million or
$1,512 psf. The 26th level had a strata area of
4,155 sq ft and the levels 27 and 28 had a
total strata area of 13,299 sq ft. With the sale
of these three levels, Donald Han said that
the building is now under a single ownership.
This would allow the owner to reposition or
Back to Contents

redevelop the building.

(Source: Business Times)
Fewer bids made for site at Yishun

A mixed-use site at Yishun attracted only five

bids. This was lower than expected.
Previously, market experts had predicted that
there would be between six and eighteen
bidders. Market experts also expected the
highest bid to be about $650 psf ppr.
However, the site was won by Northern Resi
and Northern Retail for $185.09 million or
$629.24 psf ppr. The site has a gross floor
area of 27,327 sqm, and uses prefabricated
prefinished volumetric construction (PPVC)
technology. Due to the mandatory use of
PPVC, most of the bidders were developers
with a construction arm, said Desmond Sim
from CBRE.
(Source: Business Times)
Page | 10

SINGAPORE PROPERTY WEEKLY Issue 191

Non-Landed Residential Resale Property Transactions for the Week of Dec 31 Jan 6

Postal
District
1
3
4
9
9
10
10
10
10
11
12
14
14
14
14
15
16
16
18
21

Project Name
THE CLIFT
ASCENTIA SKY
THE INTERLACE
THE COSMOPOLITAN
ASPEN HEIGHTS
THE HORIZON
THE TESSARINA
TANGLIN REGENCY
GLENTREES
THE ARCADIA
THE CITRINE
BLISS VILLE
THE WATERINA
THE TRUMPS
CENTRAL MEADOWS
STILLZ RESIDENCE
EASTWOOD REGENCY
THE BAYSHORE
TROPICAL SPRING
PARC PALAIS

Back to Contents

Area
(sqft)
1,076
1,012
1,055
1,679
1,109
1,561
1,615
1,292
1,991
3,810
1,141
1,163
1,130
1,356
969
1,001
452
969
1,528
990

Transacted
Price ($)
1,900,000
1,620,000
1,608,000
3,250,000
1,650,000
2,320,000
2,250,000
1,715,000
2,410,000
3,880,000
1,240,000
1,310,000
1,230,000
1,439,000
950,000
988,000
635,000
900,000
1,350,000
1,050,000

Price
Tenure
($ psf)
1,765
99
1,601
99
1,524
99
1,935
FH
1,488 999
1,486
FH
1,394
FH
1,328
99
1,210 999
1,018
99
1,087
FH
1,127
FH
1,088
FH
1,061
99
981
FH
987
FH
1,405
FH
929
99
883
99
1,060
FH

Postal
District
23
23
23
25
27

Project Name
HILLVIEW REGENCY
PARKVIEW APARTMENTS
NORTHVALE
ROSEWOOD
ORCHID PARK CONDOMINIUM

Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
1,119 995,000
889
99
1,119 900,000
804
99
1,087 860,000
791
99
1,173 950,000
810
99
893
712,000
797
99

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.

Page | 11