Issue 245

Copyright 2011-2016 www.propwise.sg. All Rights Reserved.

CONTENTS
p2

FROM THE

EDITOR

3 Negotiation Tips for Property Buyers,

Welcome to the 245th edition of the

Singapore Property Weekly.

Sellers and Investors

Hope you like it!

p7

Singapore Property News This Week

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Resale Property Transactions

Mr. Propwise

(January 13 January 19)

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SINGAPORE PROPERTY WEEKLY Issue 245

3 Negotiation Tips for Property Buyers, Sellers

and Investors
By Property Soul (guest contributor)
In a tenants market, it is commonplace to see
tenants bargaining with landlords for a good
rental deal. I shared a private apartment with
two flatmates between the years 1999 and
2003. The 1,700 sqft flat was previously
tenanted at $2,500 was let go at $1,800 a
month after being left vacant for some time,
despite the fact the owner was paying $2,500
every month for the mortgage. When it was
time for renewal of the tenancy contract, the
rent was revised to $1,600 after some
negotiations. The following year, our rent was
further lowered to $1,500 a month.

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SINGAPORE PROPERTY WEEKLY Issue 245

My experience with tenants as a landlord

renting.

My fate was reversed when I became a

landlord from 2002. My 1-bedroom unit was
newly-renovated and rented out at $1,800 a
month for the first year. The next year the
tenant requested to lower the rent to $1,500.
She rejected my counteroffer of $1,600 and
was very firm that this was the market rate.

Below are some property negotiation skills I

have shared in my book No B.S. Guide to
Property Investment. As you already know
after reading many of my blog posts, I am
writing from the point of view of a fellow home
buyer, property investor and house owner
versus a property developer or a property
agent.

I felt the adjustment was too drastic. I was

sure I could find another tenant who would
offer something higher than that. But after
leaving the place vacant for a month, I
subsequently leased it at $1,500. I regretted
not accepting my first tenants offer and
missed one months rent.

In property, negotiation is not only the job of

property agents. If you want to get a good
offer, you can't avoid negotiations in situations
when you are buying, selling, leasing or
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When you need to bargain

How you do anything
everything. If you dont
things, you wont bargain
You tend to adopt the
approach.

is how you do
bargain in small
on big things too.
take-it-or-leave-it

You may consider bargaining an activity for

females only and negotiation a practice of
businessmen.

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SINGAPORE PROPERTY WEEKLY Issue 245

But in property investment, it is unavoidable
to avoid negotiating the terms and bargaining
on the prices. For example:
Talking to developers for purchase of one or
more units;
Placing an offer or counteroffer on the
asking price;
Discussing with property agents
commission and service scope; and

on

Reviewing the terms with tenants in the

lease contract.
Tell yourself that everything is negotiable and
always bargain for a better deal. Negotiation
is a skill you need to practice often in order to
master it. If you know the tips in negotiation,
you can have your cake and eat it too.

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Tip #1: Negotiation favors the prepared

Knowledge is king and information is power.

Never go to a flat viewing without learning

about it first. Find out the background of the
project and the market price of similar units
beforehand. You cant just take the facts from
the agent or seller.
Being informed can put you in an
advantageous position during negotiations.
Useful facts include why the owner is selling,
how motivated the seller is, how long the
property has been in the market, what and
when was the last offer, what price the seller
bought the property, whether the owner is the
real decision maker, etc.
Check the details you have are up to date
and have been verified.

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SINGAPORE PROPERTY WEEKLY Issue 245

Do the numbers before you start negotiating
with the seller.
Tip #2: Make a counteroffer
Use leading questions to probe the underlying
interests or bottom line of your opponent. The
agent representing the other party may not
disclose the details or a number, but he may
drop a hint or give a range if you make an
effort to probe.
If you can, try not to be the first one to make
an offer. The first offer is seldom accepted. It
will most likely be counter offered.
Likewise, never accept the owners asking
price or the buyers first offer. Always test the
waters with a counteroffer. The transacted
price will mostly likely reach somewhere in
between.
Give sufficient time for the other party to
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consider your offer. Resist the temptation to

present a second offer before a rejection.
When you receive an offer or counter-offer,
wait for a while before you reply to show that
you have given it some serious consideration.
In negotiations, a demanding style may not
yield a commanding result. However, you
should persist when they resist, and negotiate
long and tough on your original offer.
Tip #3: Use timing to your advantage
Talking too much will only give yourself away.
Know when to take a pause and when silence
is golden.
People tend to make concessions when they
feel uncomfortable waiting. If you dont
respond, you can pressure the other party to
break the silence and come back with a
compromise.

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SINGAPORE PROPERTY WEEKLY Issue 245

Author Bill Coleman had this to say about the

your target price is finally accepted, obey a

silence technique in negotiations:

salesmens golden rule: shut up, sign the deal

This is a classic negotiation technique. Its a

and leave as soon as courtesy allows.

gentle, soft indication of your disapproval and

By

a great way to keep negotiating. Count to 10.

successful property investor, blogger, and

By then, the other person usually will start

author of the No B.S. Guide to Property

talking and may very well make a higher

Investment.

guest

contributor

Property

Soul,

offer.
On the other hand, to avoid the seller not
getting back to you, you can set an expiry

time for every offer you present. Your offer

should look like this: I offer to buy (the
property) at (proposed price). The offer is
valid by end of (tomorrows date).

Take your time to negotiate. But once you are

given a counteroffer close to your target, you
should waste no time to close the deal.When

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SINGAPORE PROPERTY WEEKLY Issue 245

Singapore Property This Week

Residential
SPRI for shoebox apartment falls by 4.3%
in 2015

According to flash estimates by the National

University of Singapore, the Singapore
Residential Price Index (SRPI) for small units
of up to 506 sq ft has fallen by 4.3% in 2015,
making it the worst price performer that year.
Comparatively, the price indices for the
central region and non-central region have
fallen by 3.6% and 3% respectively. Overall,
the SRPI has fallen by 3.3% in 2015. Ong
Choon Fah from DTZ said that the size of
shoebox units and their locations may have
affected sales. Ong added that potential
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tenants may find that for the same rental

outlay, they can lease a much bigger HDB
flat. As such, the rental of shoebox units may
have been seen as less attractive.
(Source: Business Times)
Shunfu Ville relaunched for en bloc sale
Shunfu Ville, which is located near
Marymount MRT Station, has been put up for
en bloc sale again after a failed attempt last
year. The reserve price by owners remains
unchanged at $688 million or $791 per
square foot of potential gross floor area.
According to JLL, housing has been more
affordable since 2008,

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SINGAPORE PROPERTY WEEKLY Issue 245

when suburban private home prices were
equivalent to 9 to 10 years income. The
figure is about 5.6 years now. The recent
state land tender also suggested that
developers are still hungry for land. JLLs
Yong Choon Fah believes that the location of
Shunfu Ville and its proximity to facilities will
increase its attractiveness. Based on the
reserve price, the estimated breakeven cost
for the successful buyer should be around
$1,250 psf with new units expected to fetch
an average price of between $1,400 and
$1,450 psf.
(Source: Business Times)

Commercial
Site at Paya Lebar Central to be built into
mixed commercial-residential building
Located at Paya Lebar Central, a consortium

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has obtained provisional permission to build a

project that comprises of office, retail spaces
and 429 residential apartments. The
apartments are expected to be completed by
2018. However, market experts believe that
the development may be launched for sale as
early as next year. The development will
comprise of 91,240 sq m of gross floor area
of office space and 43,740 sq m of retail
space. The leasehold site was won by a
Lendlease-ADIA consortium in a tender that
closed in March last year. The winning bid
worked out to be $942.56 per square foot of
potential gross floor area. The site comprises
of four plots - two land parcels, an
underground area and an airspace - that may
be developed to a maximum of 164,794 sq m
of gross floor area.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 245

SBF Centre office deal inked
According to caveat information, an $85.46
million transaction of office space at SBF
Centre has been completed. The deal reflects
a price of $3,125 psf for a total of 27,350 sq ft
covering all of Levels 29 and 30; and 8
smaller units on Level 27 and 28. The SBF
Centre is expected to receive its Temporary
Occupation Permit in Q3 this year and is built
on a 99-year leasehold site. The site was won
in state tender in 2011 for $311.78 million or
$882 psf ppr. The projects total development
cost including land has been previously
reported to be around $520 million.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 245

Non-Landed Residential Resale Property Transactions for the Week of Jan 13 Jan 19

Postal
District
1
3
5
5
5
7
9
9
9
9
10
10
11
11
11
11
11
11
12
12
12
12

Project Name
THE SAIL @ MARINA BAY
QUEENSWAY TOWER
VENTANA
FABER CREST
VISTA PARK
CONCOURSE SKYLINE
THE ORCHARD RESIDENCES
THE LAURELS
THE WHARF RESIDENCE
ASPEN HEIGHTS
THE BALMORAL
RICH MANSION
RESIDENCES @ EVELYN
AMARYLLIS VILLE
M21
CUBE 8
THE TREVOSE
CHANCERY COURT
TREVISTA
CASA IRRAWADDY
VETRO
OLEANDER TOWERS

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Area
(sqft)
861
1,658
2,185
1,249
2,433
786
2,852
1,001
1,033
1,582
2,659
1,572
2,250
958
710
1,475
1,281
2,034
689
893
614
1,464

Transacted
Price ($)
1,480,000
1,530,000
2,400,000
1,060,000
1,900,000
1,150,000
9,200,000
2,300,000
1,900,000
2,325,000
4,200,000
2,400,000
3,600,000
1,450,000
1,005,000
1,980,000
1,595,000
1,825,000
940,000
1,138,000
730,000
1,450,000

Price
Tenure
($ psf)
1,719
99
923
FH
1,098
FH
849
99
781
99
1,464
99
3,225
99
2,298
FH
1,839 999
1,469 999
1,580
FH
1,527
FH
1,600
FH
1,514
99
1,415
FH
1,343
FH
1,245
99
897
99
1,365
99
1,274
FH
1,190 999
991
99

Postal
District
14
15
15
15
15
15
15
16
18
18
19
23
27
27

Project Name
THE SUNNY SPRING
EAST PALM
ESPIRA SPRING
SANCTUARY GREEN
DUNMAN VIEW
KOON SENG COURT
NEPTUNE COURT
LAGUNA 88
THE TROPICA
EASTPOINT GREEN
THE SCALA
REGENT GROVE
THE MILTONIA RESIDENCES
SUN PLAZA

Area
(sqft)
1,195
1,163
1,195
1,485
1,345
753
1,636
2,357
1,238
904
474
1,173
1,141
1,776

Transacted
Price ($)
1,180,000
1,280,000
1,275,000
1,560,000
1,340,000
715,000
1,380,000
1,520,000
980,000
700,000
685,000
810,000
1,100,000
1,215,000

Price
Tenure
($ psf)
988
FH
1,101
FH
1,067
FH
1,050
99
996
99
949
FH
843
99
645
99
792
99
774
99
1,446
99
690
99
964
99
684
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.

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