Issue 248

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

CONTENTS
p2

FROM THE

EDITOR

Property Investment Strategy in the

Welcome to the 248th edition of the

Singapore Property Weekly.

Year of the Fire Monkey

Hope you like it!

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Singapore Property News This Week

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Resale Property Transactions

Mr. Propwise

(February 3 February 12)

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SINGAPORE PROPERTY WEEKLY Issue 248

Property Investment Strategy in the Year of the

Fire Monkey
By Property Soul (guest contributor)

Last year I wrote about The Property Market

in the Year of the Goat. Its time to review the
past year before talking about what to expect
in the Year of the Monkey.
Year of the Goat: Enough bad news?
The strong earth element in the Wood Goat
year posed a big challenge to the world
economy. The disturbance in the global asset
market in the last six months was not for the
faint-hearted.

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SINGAPORE PROPERTY WEEKLY Issue 248

It started with the crash of Chinas stock
market and the sudden depreciation of the
Chinese currency. Then the interest rate hike
by Federal Reserve caused a correction in
the emerging markets. The year ended with a
steep fall of commodity prices, especially oil.
And the Year of the Goat ended with the
sharp decline of stock prices in January.
Investors who were unprepared were like
lambs to the slaughter. Who can blame them?
Even Warren Buffetts Berkshire Hathaway
admitted they had the worst performance
since 2009.
Year of the Monkey: Who can tell whats
next?

When financial analysts give very diverse

views on what 2016 will look like, this is a bad
sign. It implies they are simply fulfilling their
duty to speak for their company, but deep in
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their heart, its likely they dont have a clue

either.
Those who make forecasts do not pledge to
take back their words when they make the
wrong guess. Thats why we prefer to talk
about observations here, not predictions.
What do the traits of monkeys mean for
the property market?
Monkeys have a few characteristics that can
perhaps give us a glimpse of the property
market in 2016.
Trait 1: Smart and Intelligent
According to URA, there are 5,736 launched
but unsold private residential units and a total
of 23,271 unsold units from projects with
planning approvals. In 2016, there will be
22,351 new units to be completed. Finding
the demand to clear the new and existing
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SINGAPORE PROPERTY WEEKLY Issue 248

stock in a lacklustre market is like mission
impossible, unless developers and marketing
agents possess supernatural powers to play
magic tricks like the Monkey King.
Like monkeys with high intelligence,
developers will be using more creative ways
to push projects this year. To stand out from
competition, they have to attract buyers with
superior
marketing,
more
aggressive
discounts and better unique selling positions.
To avoid incurring extension charges and the
ABSD, developers will continue to use clever
ways to tackle projects that still have unsold
units beyond the stipulated timeframe,
including selling to subsidiaries or corporate
buyers in bulk, or delisting from the local
stock exchange.
Advice from Property Soul:
The same applies to the resale and rental
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market. Owners and landlords have to be

realistic about their expectations. Smart ones
know how to attract eyeballs online with nice
photos after home staging which drives
buyers or tenants to send in their offers.
Dont think you can get rid of the middleman
during bad times. Dont skimp on
commissions paid to property agents.
Remember: When you pay peanuts, you get
monkeys.
Trait 2: Curious and Adventurous
The monkey year started with the plummeting
of oil prices and the Japanese stock market.
Lots of drama is still waiting to be unfolded.
Like monkeys which are adventure-loving
animals, the high volatility of the market
presents many opportunities for speculators.
Many will be tempted to rush in and make a
quick profit.
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SINGAPORE PROPERTY WEEKLY Issue 248

Others may be curious to know whether
alternative investment strategies can work.
Never mind the fact they are purely
speculative. Monkey see, monkey do.
Advice from Property Soul:
1) Avoid getting your hands into any property
you cant afford.
2) Avoid getting your hands into
investment you cant afford to lose.

sounds to warn others of a tiger so that all

monkeys run away and it can safely enjoy the
food all by itself faking at its best.
During uncertain times, people tend to look
for second incomes that appeal to the need
for security. This is when deceitful high-return
investments come into play.

any

3) Avoid getting your hands into any scheme

you dont understand.
Trait 3: Mischievous and Cunning
Monkeys are clever. But they can use their
intelligence in the wrong way.
Although monkeys live in groups, they are
also known to be selfish and possessive.
When a monkey finds good food, it produces
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SINGAPORE PROPERTY WEEKLY Issue 248

Advice from Property Soul:
Watch out for monkey business no matter
how privileged or exclusive the opportunities
sound. Beware of property projects or
investment schemes that promise unrealistic
returns. When they cannot pay out the high
dividends they guaranteed, they can only do
two things: go bankrupt or run away.

Learn how to balance your investment

portfolio and build in redundancy like the
monkeys. All investors need an exit plan or
plan B to prepare for the worst. Be
conservative and ensure that you have more
than enough holding power for your property
investment.

Never test the depth of a river with both feet.

Trait 4: Defensive and Well-prepared

Dont think that the long tails of monkeys are
redundant. Tails are useful for monkeys to
balance themselves with while climbing the
trees or sitting on the branches.
Monkeys are known to use their cheek
pouches to store extra food so that enemies
have no way to steal it. Their two cheek
pouches can store up to a full stomachs
food.

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SINGAPORE PROPERTY WEEKLY Issue 248

Advice from Property Soul:
Dont waste time monkeying around with
unprofitable or money-draining properties.
Dont hesitate to cut loss if you need to. If you
have to get a monkey off your back, talk to
the bank first before you really need to.

May the Year of the Monkey be your Year of

"Money"!
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.

"Banks will lend you umbrellas on a sunny

day, but they will take them back when it is
pouring." This is my favorite line from
Hanzawa Naoki, a popular Japanese
television series released in 2013.
My property investment strategy in the Year
of the Monkey is to be defensive rather than
aggressive. The most important thing this
year is not return. It is to avoid losing money.
Less is more. Risk less and fail less.

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SINGAPORE PROPERTY WEEKLY Issue 248

Singapore Property This Week

Residential
Hougang EC site sold for $183.8 million
A 99-year leasehold site situated at Hougang/
Yio Chu Kang area attracted 10 bids in a
recently closed tender. The site was won by
Hoi Hup Realty with a winning bid of $183.8
million or $331.02 psf ppr. The breakeven
cost is estimated to be slightly above $700
psf and the targeted selling price will be close
to $800 psf on average, said market experts.
Last year, when the plot was launched,
property consultants had predicted that the
winning bid would be in the range of $260 to
$340 psf ppr. Market experts also predicted
that there would be 5 to 14 bids. The plot is

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projected to be developed into 560 units. Of

these units, about 70% will be three-bedroom
apartments, 15% will be four-bedroom
apartments and the rest will either be two- or
five-bedroom apartments. According to Ong
Kah Seng from RST Research, the results of
this tender do not reflect that developers are
becoming positive. Instead, Ong believes
that bid prices were higher due to the
location of the site. Ong Teck Hui from JLL
added that an absence of new EC supply in
that area and the significant potential
demand catchment from nearby HDB estates
could have encouraged bidders to view the
site positively.
(Source: Business Times)
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SINGAPORE PROPERTY WEEKLY Issue 248

At least 4 GCBs sold since start of year
According to the Business TImes, at least 4
Good Class Bungalows (GCBs) have been
sold since the start of this year. Among the
latest is a bungalow along Peirce Road that
changed hands for about $24 million or
$1,479 psf based on the freehold land area of
16,224 sq ft. The two-storey property which is
located near Ridout Park was previously sold
in 2006 for about $9.5 million. Other GCB
transactions include a property at Mount Echo
Park which changed hands for $22.25 million
or $1,322 psf on 16,826 sq ft of freehold land;
and another GCB along Yarwood Avenue was
sold for $15.7 million or $971.35 psf. In 2015,
more than $700 million of deals were
transacted in GCB areas. This exceeded the
$626 million that was transacted in 2014.
William Wong from Realstar Premier Group
estimates that GCB prices had fallen by 10 to
15% in 2015. He predicts that prices will
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continue to slip in H1 this year due to an

absence of positive stimulus. However, he
believes that GCB prices will stabilise in H2
this year.
(Source: Business Times)
TOP awarded to Tampines EC
The
first
hotel-inspired
EC
project,
CityLife@Tampines has been awarded the
temporary occupation permit (TOP). The EC
which was launched in 2012, consists of 514
units. About 90% of the units were fully sold
during its launch in March 2013. The EC will
offer hotel-inspired features such as home
concierge service, an infinity pool and even
complimentary WiFi at common areas.
Market experts believe that the hotel-inspired
facilities and the strategic location of the
condo had contributed to its appeal.
(Source: Business Times)
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SINGAPORE PROPERTY WEEKLY Issue 248

Non-Landed Residential Resale Property Transactions for the Week of Feb 6 Feb 12

Postal
District
2
4
9
9
9
9
9
9
9
9
9
10
10
10
10
10
10
10
10
11
12
12

Project Name
ALTEZ
THE INTERLACE
THE RITZ-CARLTON RESIDENCES SINGAPORE CAIRNHILL
TWENTYONE ANGULLIA PARK
THE RITZ-CARLTON RESIDENCES SINGAPORE CAIRNHILL
THE LAURELS
THE PATERSON
WATERSCAPE AT CAVENAGH
LEONIE SUITES
UE SQUARE
CASA NOVACREST
ST REGIS RESIDENCES SINGAPORE
THE LADYHILL
D'LEEDON
SPRING GROVE
JEWEL OF BALMORAL
BEAVERTON COURT
THE BALMORAL
DUCHESS CREST
CUBE 8
IRESIDENCES
THE ARTE

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Area
(sqft)
603
2,347
3,057
3,348
3,057
883
1,464
1,216
689
1,625
1,582
2,142
3,843
635
1,012
1,345
3,229
2,885
1,561
904
1,066
1,873

Transacted
Price ($)
1,210,000
2,730,000
11,600,000
12,052,800
10,600,000
2,388,000
2,780,000
2,288,555
1,195,000
2,250,000
2,000,000
4,700,000
7,400,000
1,085,000
1,550,000
1,950,000
4,250,000
3,650,000
1,900,000
1,450,000
1,330,000
2,200,000

Price
Tenure
($ psf)
2,007 99
1,163 99
3,795 FH
3,600 FH
3,467 FH
2,705 FH
1,899 FH
1,882 FH
1,735 99
1,384 929
1,264 FH
2,194 999
1,926 FH
1,708 99
1,532 99
1,449 FH
1,316 FH
1,265 FH
1,217 99
1,604 FH
1,248 FH
1,175 FH

Postal
District
12
12
12
14
14
15
15
15
15
15
15
15
15
15
16
18
18
19
19
19
19
19

Project Name
CRADELS
THE BELLEFORTE
KIM KEAT HOUSE
WATERBANK AT DAKOTA
STUDIO8
SUITES @ EASTCOAST
PARC ELEGANCE
SUITES @ AMBER
SANCTUARY GREEN
TANJONG RIA CONDOMINIUM
CRESCENDO PARK
PEBBLE BAY
EASTVILLE APARTMENTS
ALPHA APARTMENTS
THE BAYSHORE
NV RESIDENCES
TAMPINES COURT
A TREASURE TROVE
A TREASURE TROVE
A TREASURE TROVE
PARC VERA
THE QUARTZ

Area
(sqft)
1,313
1,658
1,066
1,130
495
366
431
840
1,711
1,399
1,345
1,378
1,001
1,152
1,259
743
1,690
1,130
1,335
1,206
1,141
1,163

Transacted
Price ($)
1,150,000
1,350,000
820,000
1,710,000
683,100
580,000
600,000
1,050,000
2,000,000
1,520,000
1,438,888
1,450,000
980,000
1,128,000
1,180,000
800,000
830,000
1,168,000
1,350,000
1,208,000
1,080,000
1,078,000

Price
Tenure
($ psf)
876
FH
814
FH
769
FH
1,513 99
1,380 FH
1,585 FH
1,394 FH
1,251 FH
1,169 99
1,086 99
1,069 FH
1,052 99
979
FH
979
FH
937
99
1,077 99
491 101
1,033 99
1,011 99
1,002 99
947
99
927
99

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SINGAPORE PROPERTY WEEKLY Issue 248

Postal
District
19
19
20
20
21
21
21
21
22
22
23
23
26
26
27
27

Project Name
CHILTERN PARK
RIVERVALE CREST
COUNTRY GRANDEUR
BISHAN POINT
JARDIN
SIGNATURE PARK
SOUTHAVEN II
HIGH OAK CONDOMINIUM
THE LAKEFRONT RESIDENCES
THE LAKEFRONT RESIDENCES
HAZEL PARK CONDOMINIUM
MAYSPRINGS
BULLION PARK
BULLION PARK
ORCHID PARK CONDOMINIUM
ORCHID PARK CONDOMINIUM

Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
1,249 1,110,000 889
99
1,668 980,000
587
99
1,442 1,520,000 1,054
FH
936
950,000 1,014
99
1,259 1,400,000 1,112
FH
1,033 1,145,000 1,108
FH
1,507 1,500,000 995
999
1,658 1,180,000 712
99
710
968,000 1,363
99
710
930,000 1,309
99
1,378 1,285,000 933
999
915
805,000
880
99
1,238 1,250,000 1,010
FH
807
810,000 1,003
FH
893
690,000
772
99
980
710,000
725
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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