Issue 177

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CONTENTS
p2 How to Tell Good Property Agents from
Bad Ones
p6 Singapore Property News This Week
p13 Resale Property Transactions
(September 24 September 30 )
Welcome to the 177
th
edition of the
Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 177
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By Property Soul (Guest Contributor)
After I sold one of my properties exclusively
by my property agent, another agent who
used to lease that property for me learned
about it and said, "What? Only $XXX,XXX? I
could have easily sold thirty to fifty thousand
higher for you!"
I know how the deal can be pushed higher.
There are many agents and owners in this
market who will do anything to sell properties
at the top price.
But I am also aware that these transactions
almost always come with special conditions
that I dont think is worth taking the risk.
How to Tell Good Property Agents from Bad Ones
SINGAPORE PROPERTY WEEKLY Issue 177
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But even without any condition, I am not keen
to bag that extra tens of thousands from
another offer.
The peace of mind from engaging the
service of someone whom I can truly trust
is beyond money.
Over the years, my agent was the one who
coordinated between my tenants and her
contractors to get all the repair work done.
She could have added her 'management fee'
or inflated the repair costs. Instead, she
bargained hard to get a reasonable price,
settled the bill on behalf of me, and sent me
the invoices later.
If she doesnt mind forgoing the tips for all
her extra work, why do I have to chase that
extra thirty thousand?
When there is trust, there is business.
We all want to find a good property agent to
represent us when we are renting, leasing,
buying or selling our properties.
But how can you tell the good from the bad
ones?
Say 'no' to a bad agent
Bad property agents share similar attributes.
Like bad boyfriends, they are a big
disappointment.
It is not uncommon to see them glorifying
their past performance or exaggerating
their experience in the industry. But when
there are hiccups and you need their help,
they are nowhere to be found.
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Some agents have obviously mastered the
skills of playing a vanishing act. They
disappear after pocketing their commission,
leaving you alone to deal with difficult tenants,
late payments, neighbors complaints, etc.
Dont pick an agent out of convenience.
Dont use anyone just because the person
is a relative or an acquaintance. Dont use
anyone without strong recommendations
from a reliable source.
Forget about agents who dont put your
interests first. Its time you looked for a new
one when:
Your agent knows no better than you about
most of your property questions;
Your agent keeps marketing to you specific
projects that dont meet your requirements;
Your agent asks you to compromise on an
unreasonable offer just to close the deal;
Your agent always refers you to contact
someone else when there is any undesirable
task; or
Your agent presses you to do something
that you don't feel comfortable with.
Qualities of good agents
Always look out for the following qualities in
property agents:
1. Passion: Possess a burning fire of
enthusiasm even after many years in the
industry.
2. Experience/knowledge: Know current
market trends, project details, market prices,
etc.
3. Negotiation skills: Act calmly and patiently.
Target win-win for both parties.
4. Honesty: Never oversell. Tell both pros and
cons and let you make your own decision.
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5. Trustworthiness: Build trust by keeping
their word. Deliver what they promise.
6. Reputation: It is easy to speak highly of
themselves, but it is far better if former clients
speak highly of them.
A long-term relationship
As an investor, it worth spending the time to
find an agent that you can trust, someone
that you can work with in the long run.
When you are building your property portfolio,
your agent can be your assistant or advisor to
secure the good deals. When you need
someone to manage your properties, your
agent is your indispensable partner to ensure
that things run smoothly.
My property agent told me that she gets her
job satisfaction not from the compensation,
but her ability to help her clients in property-
related matters.
Good property agents understand the fact
that building a long-term relationship is
far more valuable than getting the highest
commission from a single deal. It is also
the close partnership with clients that
helps them ride though all the ups and
downs in a property cycle.
Know your rights and ways to protect yourself
when dealing with property agents.
Remember, successful investors get the edge
from using a good agent.
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.
SINGAPORE PROPERTY WEEKLY Issue 177
Singapore Property This Week
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Residential
HDB resale price falls again
For the eighth consecutive month, resale
prices of HDB flats have fallen in September,
according to flash estimates by the Singapore
Real Estate Exchange (SRX). Data from SRX
showed that HDB resale prices have fallen by
0.5 per cent from August to September.
Resale prices of three room flats fell by 0.2
per cent; while resale prices of four-bedders
fell by 0.2 per cent and five-bedders fell by
1.6 per cent. However, market experts believe
that the fall in prices is within expectations.
This is because of the recent implementation
of loan curbs and because of the increase in
supply of build-to-order flats. Eugene Lim
from ERA Realty said that price moderation is
gradual because buyers and sellers are more
cautious and realistic now. On the other hand,
executive flat prices have increased by 0.1
per cent from August to September. Overall
resale volumes for HDB flats have increased
by 10.7 per cent from the 1,327 units in
August to 1,469 units in September. Wong
Xian Yang from OrangeTee added that sales
in August were low due to the Hungry Ghost
Festival. The rental market, on the other
hand, has remained weak, according to SRX
estimates. Rental prices have fallen by 0.3
per cent in September from August. Ong Kah
Seng from RST Research added that HDB
owners are less inclined to sell their flats due
to low demand.
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As such, more owners are offering their flats
at competitive rental prices to attract tenants.
(Source: Business Times)
More than 300 units sold at Marina One
Out of the 372 units released at its launch,
more than 300 units have been sold at Marina
One Residences. Marina One Residences
comprises of 1,042 units, and two 34-storey
towers. One bedroom units start from $1.4
million and range between 657 square feet to
775 square feet. On the other hand, two
bedroom units, which are between 969
square feet and 1,130 square feet, cost about
$2 million each. The condominium is
expected to cost between $1,960 per square
feet to $3,100 per square feet after a 10 per
cent early bird discount. Since October 3,
buyers who are looking to purchase multiple
units have already balloted for their choice
units. On the other hand, the public launch of
Marina One has begun on October 11.
(Source: Business Times)
High demand for J urong EC
Since the launch of Lake Life, an executive
condominium located at Jurong Lake District,
more than 1,380 applicants have expressed
interest in the property. The e-application will
end on October 12. Market experts predict
that Lake Life will break the record for the
highest number of applications received for
an executive condominium launch. Given that
only 546 units were released for this project,
the project has been oversubscribed by 2.5
times. Lake Life, which is located at Yuan
Ching Road, is the second executive
condominium to be released this year. Not
only so, it is the first to be launched in Jurong
in the last 17 years.
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It has a 99-year leasehold tenure and has
129,135 square feet. Despite the high
demand for Lake Life, executive
condominium transactions have been slow in
2014, said the developer of Lake Life.
Nonetheless, a total of 1,758 units are
expected to be released this year. Two other
executive condominiums, Bellewoods in
Woodlands and Bellewaters at Anchorvale
Crescent will be released in the upcoming two
months.
(Source: Business Times)
Resale volume of condos fall
Resale volume of private condominiums has
not picked up in areas such as Yishun and
Sembawang. According to Business Times,
18 transactions were made in those districts
in Q2 this year. Yet, in Tampines and Pasir
Ris, resale volumes have risen by 5.6 per
cent in Q2 this year, compared to the same
period last year. Market experts believe that
sellers with strong holding power might have
been unwilling to let go of their properties at a
lower price, despite of the total debt servicing
ratio framework. A total of 1,314 private
condos were resold in Q2 2014. This
represents 31.9 per cent of all private non-
landed residential transactions. While the
total private condo resale volume in Q2 2014
is higher than in Q2 2013, it is about 9 per
cent lower than in Q4, 2012, before the
implementation of the total debt servicing
ratio framework. The fall in resale volume in
Q2 was led by condo units at Middle Road,
Golden Mile, Serangoon Garden, Hougang
and Punggol. Nicholas Mak from SLP
International said that the lack of new
launches in some districts might have an
impact on the resale market.
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Ong Kah Seng from RST Research added
that interest for homes in Pasir Ris is due to
high leasing demand. On the other hand,
Christine Li from OrangeTee predicts that
there will be a drop in foreign purchases in
the core central region due to the additional
buyers stamp duty.
(Source: Business Times)
Property agencies affected by slow sales
Profit margins for property agencies have
fallen by 20 to 50 per cent this year, due to
the slump in the property market. Of the
1,425 registered agencies, more than half are
expected to have made a loss in the last one
year. While some agencies have looked to
overseas markets to regain sales, others
have merged or been acquired to share
resources. Mohammed Ismail from PropNex
said that sales have dipped by 3 per cent in
2014. Not only so, as property prices fell, the
total value of transactions also fell. This fall in
profits has also affected large agencies, said
Jack Chua from Era Realty. Market experts
expect the market to worsen. In July, SLP
International, OrangeTee, HSR and Dennis
Wee Realty have banded together to form the
Project Alliance Group to consolidate
resources. RE/MAX, C&H Group and More
Property have followed suit in August too to
form Real Alliance.
(Source: Business Times)
Private home index eases gradually
According to Moodys, the gradual decline in
private home index in Q3 this year can help
Singapore banks ease pressure on bank
asset quality. According to URAs Private
Residential Property Price Index, the price
index fell by 0.6 per cent quarter on quarter in
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Q3 this year; and the price index for Q3 this
year fell by 3.8 per cent year on year from
2013. Despite the fall in price index, market
experts expect the asset quality of housing
loans to remain robust in these two years due
to favourable economic conditions, such as
low unemployment. Moodys believe that the
fall in housing price index was due to the
cooling measures implemented by the
government. According to Business Times,
the increase in house loans slowed after the
implementation of the total debt servicing
ratio framework. In fact, the year-on-year
growth in housing loans for this year was the
lowest in five years.
(Source: Business Times)
Commercial
Samsung Hub fetches $3,175 psf
Level 19 of Samsung Hub, at Church Street,
has been sold for $41.7 million or $3,175 per
square foot. The floor has a strata area of
13,121 square feet and is said to have been
purchased by a foreign investor. In August,
the buildings 18
th
storey was sold for $3,225
per square feet. The lease of the 19
th
storey
of Samsung Hub has been renewed until
2017. Thus, the net yield for the buyer is
expected to be about sub-3 per cent. The 19
th
storey comprises of six strata units. Market
watchers believe that the total debt servicing
ratio framework will make it harder for strata
office investors to get loan approvals,
compared with those buying the space for
their own use.
(Source: Business Times)
Da Vinci Building sold for $58 million
Da Vinci Building, which is located at 191
Upper Bukit Timah Road, has been sold for
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$58 million to Sim Lian Holdings Pte Ltd.
According to Business Times, Sim Lian
Holdings will be leasing out the building after
Da Vinci Holdings Pte Ltd moves out of the
building. The Da Vinci Building is located
beside the Sim Lian Holdings headquarters
and is a freehold site that has a plot ratio of
1.4. It has been zoned for commercial use
under the Urban Redevelopment Authoritys
Master Plan 2014. It has a gross floor area of
about 30,000 square feet and has a land area
of 21,415 square feet. It also has a basement
car park and comprises four storeys.
(Source: Business Times)
Strata-titled industrial sales expected to be
slow
A report by Colliers International said that
replacement anchor sub-tenants will be
harder to find when secondary industrial
space becomes available from expiring sale
and leaseback transactions. Chia Siew Chuin
from Colliers expects rents and yield to be
impacted when leasing space from third-party
facility providers. Nonetheless, Chia believes
that rents for business parks and independent
high-specs buildings will remain constant from
Q3 to Q4 this year due to a slowdown in land
supply. Chia also predicts that the sale of
strata-titled industrial land will remain slow.
Despite strong leasing activities, Chia
believes that the outlook for the industrial
market will remain mixed. According to URA
Realis caveats, sale transactions of strata-
titled industrial properties have fallen by 36
per cent quarter-on-quarter in Q3 from Q2 this
year. According to DTZ, the decline in sales
volume is due to the implementation of the
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total debt servicing ratio framework. Not only
so, CBRE said that there is a widening gap in
rents between business parks located in the
city fringe and in the rest of the island.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 177
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Non-Landed Residential Resale Property Transactions for the Week of Sep 24 Sep 30
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
2 THE ARRIS 1,464 2,420,000 1,653 FH
2 INTERNATIONAL PLAZA 1,496 1,960,000 1,310 99
4 CARIBBEAN AT KEPPEL BAY 1,281 1,880,000 1,468 99
5 THE INFINITI 1,302 1,200,000 921 FH
5 VARSITY PARK CONDOMINIUM 2,293 2,100,000 916 99
8 SOHO @ FARRER 441 700,000 1,586 FH
9 ESPADA 355 970,000 2,731 FH
10 VILLA AZURA 1,604 2,080,000 1,297 FH
10 SOMMERVILLE PARK 624 700,000 1,121 FH
11 IRIDIUM 1,066 1,615,000 1,516 FH
11 ADAM PARK CONDOMINIUM 958 1,340,000 1,399 FH
11 THE ARCADIA 4,639 4,640,000 1,000 99
12 THE TIER 538 738,000 1,371 FH
13 ONE LEICESTER 915 1,150,000 1,257 FH
14 ASTORIA PARK 958 1,000,000 1,044 99
14 STARVILLE 1,216 1,120,000 921 FH
15 AALTO 1,550 2,800,000 1,806 FH
15 THE SHORE RESIDENCES 893 1,390,000 1,556 103
15 GRAND DUCHESS AT ST PATRICK'S 1,410 2,121,000 1,504 FH
15 COSTA RHU 2,228 3,050,000 1,369 99
15 THE ESTA 1,313 1,750,000 1,333 FH
15 WATER PLACE 1,227 1,590,000 1,296 99
15 FERNWOOD TOWERS 1,636 1,800,000 1,100 FH
15 BLU CORAL 1,141 1,220,000 1,069 FH
15 NEPTUNE COURT 1,636 1,380,000 843 99
15 TEMBELING CENTRE 1,959 1,600,000 817 FH
16 IDYLLIC EAST 1,281 1,400,000 1,093 FH
Postal
District
Project Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)
Tenure
16 THE BAYSHORE 936 900,000 961 99
16 SUNHAVEN 1,281 1,200,000 937 FH
16 AQUARIUS BY THE PARK 1,227 1,020,000 831 99
17 THE GALE 969 995,000 1,027 FH
18 WATERVIEW 1,324 1,480,000 1,118 99
19 SUNGLADE 1,044 1,080,000 1,034 99
19 EVERGREEN PARK 1,023 820,000 802 99
20 RAFFLESIA CONDOMINIUM 915 1,135,000 1,241 99
20 GRANDEUR 8 1,227 1,320,000 1,076 99
21 SUMMERHILL 1,206 1,320,000 1,095 FH
21 SOUTHAVEN II 1,507 1,620,000 1,075 999
21 SYMPHONY HEIGHTS 969 945,000 975 FH
21 SELANTING GREEN 1,658 1,600,000 965 FH
21 PINE GROVE 1,927 1,400,000 727 99
23 GUILIN VIEW 861 785,000 912 99
23 PARKVIEW APARTMENTS 980 838,888 856 99
23 REGENT HEIGHTS 1,023 868,000 849 99
23 REGENT HEIGHTS 1,173 931,000 794 99
23 MAYSPRINGS 1,410 1,070,000 759 99
23 PALM GARDENS 1,216 920,000 756 99
23 REGENT GROVE 1,173 860,000 733 99
25 WOODGROVE CONDOMINIUM 1,604 1,150,000 717 99
26 HONG HENG MANSIONS 1,302 1,000,000 768 FH
27 ORCHID PARK CONDOMINIUM 872 738,000 846 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.