Issue 252

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

CONTENTS
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FROM THE

EDITOR

Semi-Retired at 44 - 3 Steps a Wise

Welcome to the 252th edition of the

Singapore Property Weekly.

Propwise.sg Reader Took to Get There

Hope you like it!

p6

Singapore Property News This Week

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Resale Property Transactions

Mr. Propwise

(March 7 March 11)

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SINGAPORE PROPERTY WEEKLY Issue 252

Semi-Retired at 44 - 3 Steps a Wise Propwise.sg

Reader Took to Get There
By Mr. Propwise
A reader recently wrote in to share his story
of how he achieved semi-retirement at the
young age of 44. He no longer needs to work
for active income, and now spends his time
consulting for technology startups and
ferrying his three teenage kids to their
swimming, running and shot put training and
competitions.
How did he do it? He diligently followed a
plan for 20 years to invest and fully pay off his
housing mortgage and car loan.

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SINGAPORE PROPERTY WEEKLY Issue 252

Here is the plan he followed (I've taken the
liberty to add in some of my own thoughts on
his strategy in italics):
Step #1: Consistently buying Blue Chip
stocks over 20 years despite the ups and
downs of the market
Mr. Propwise: Equities has been one of the
best performing asset classes over the long
term. The key, though, is not being swept up
by waves of greed to buy at the market top,
and then panicking and selling out at the
market bottoms. Mass hysteria compels the
majority of investors to do exactly that, which
will hurt your long term returns.
One way to overcome this is to do what our
smart reader has done - ignore the market
cycles and just buy quality stocks through
market ups and downs. This is akin to an
investing strategy known as Dollar Cost
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Averaging, which involves buying a fixed

dollar amount into the market at regular
intervals - you will end up owning more during
market bottoms and less during market tops.
One final consideration is perhaps buying an
Index ETF (Exchange Traded Fund) instead
of individual stocks if you are not confident in
your stock-picking. This will help to diversify
your stock-specific risk. You might also want
to diversify country risk by buying a regional
or even global ETF.

Step #2: Fully paid up his HDB flat and

then rented it out for extra income
Mr. Propwise: HDB flats are how the majority
of Singaporeans and PRs come to own their
first home. Historically, they've been fairly
affordable and a typical working couple who
progress in their careers can aspire to pay
down the entire mortgage in perhaps
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SINGAPORE PROPERTY WEEKLY Issue 252

10 to 20 years.
HDB flats also tend to be one of the highest
yielding properties you can own given the
fairly resilient rentals.
Step #3: Finally moved to a condo and
then fully paid down the mortgage.

Mr. Propwise: If you've the financial means to,

buying a second property will turn you into a
bona fide property investor. When you've fully
paid off both properties, you now have an
investment property that is giving you an
extra income from the monthly rental. This is
a key retirement strategy - creating streams
of additional (not necessarily passive) income
for yourself beyond your job, and then
gradually making your way to Financial
Freedom when your additional income
supersedes your expenses.

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A variation of this strategy is to keep the

mortgages on your property (as home loans
are likely to be one of the cheapest loans you
will ever get), and then invest this into high
yielding assets such as dividend stocks. This
will help to maximize your return, but could
lead to increased anxiety as whatever assets
you buy (e.g. stocks) could experience a lot of
volatility.
Of course, skill and luck had a part to play as
well. Our wise reader had worked for a listed
Tech company in the United States, climbed
the corporate ladder to a fairly senior position,
and had received stock compensation that
performed well.
But by achieving financial freedom at a
relatively young age, our kindhearted reader
has also not forgotten the less fortunate - in
addition to spending his time on his
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SINGAPORE PROPERTY WEEKLY Issue 252

consulting projects and kids, he also serves
breakfast to one-room HDB dwellers in
Punggol, and together with a group of friends
gives stationery and bicycles to poor kids in
Cambodia twice a year.
He hopes that by sharing his story it will
inspire others (especially the younger
readers) to start their saving and investing
journey - with lots of discipline and a bit of
luck you too can semi-retire and spend your
time on activities you find worthwhile.

Do you know of others with an inspiring story

to
share?
Do
let
me
know
at
info@propwise.sg and I'll be happy to profile
them.

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SINGAPORE PROPERTY WEEKLY Issue 252

Singapore Property This Week

Residential
Healthy interest in Cairnhill Nine and The
Wisteria

Of the 268 units at Cairnhill Nine, 200 were

released for sale recently. Since its launch,
134 units have been sold. Located at Yishun,
116 of the 138 units at The Wisteria were sold
since they were launched. Market experts
believe that both developments appealed to
investors because they were priced
reasonably. At Cairnhill Nine, the units sold
ranged from 591 sq ft to 3,864 sq ft and they
were priced between $2,200 psf and $2,800
psf. Ranging between 732 sq ft and 969 sq ft,
the one-bedroom with guest units were the

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most popular, with about 80% of the 90 units

sold. Market experts believe that beyond its
price, its strategic location at Orchard Road
and a lack of major residential projects
launched in that area in the last two years
could have pumped up interest in the
development. Donald Han from Chesterton
Singapore added that based on an average
price of $2,500 psf, investors of Cairnhill Nine
could reap a yield of about 4%. At The
Wisteria, the units were sold for average
prices between $1,030 and $1,050 psf. Given
strong demand for its one and two-bedroom
units, market experts believe that there could
be a higher percentage of buyers who are

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SINGAPORE PROPERTY WEEKLY Issue 252

investors compared to a typical residential
project in a suburban area. Comprising three
9-storey towers, The Wisteria is part of a
mixed-use 99-year leasehold development.
(Source: Business Times)
6.8% month-on-month drop in private homes
sold in Feb
According to the Business Times, 301 private
homes (excluding ECs) were sold by
developers in February this year, down from
323 units in January. This was a 6.8% fall
month-on-month and a 22.8% fall year-onyear - the lowest since December 2014.
Inclusive of ECs, 430 units were sold in
February, down from the 479 units in the
previous month and 455 units in February last
year. Market experts said that this was not
surprising as developers had held off
launches last month due to the festivities and
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weak
market
sentiment.
Nonetheless,
property experts believe that private home
sales should increase this month due to the
launch of private homes like the Cairnhill
Nine, The Wisteria and Wandervale. JLLs
Ong Teck Hui said that those projects are
expected to do well due to their location and
pricing. However, this does not indicate that
the market is recovering. Wong Xian Yang
from OrangeTee believes that developers will
sell about 500 to 800 private homes in March.
He also predicted that there will be a total of
about 1,124 to 1,424 units sold in Q1 this
year, which is comparable to the 1,311 units
sold in Q1 2015. Nicholas Mak from SLP
International estimates that about 7,000
private homes will be sold by the end of the
year as developers have been selling more
units than they have been releasing them.

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SINGAPORE PROPERTY WEEKLY Issue 252

PropNexs Ismail Gafoor and JLLs Ong Teck
Hui both said that developers will likely to
adjust their pricing strategy so as to be able
to move units, given the challenging market
conditions.
(Source: Business Times)
MND: Cooling measures unlikely to be
lifted
The Ministry of National Development (MND)
has said that the government is unlikely to lift
cooling measures now as doing so may result
in a market rebound. The Real Estate
Developers
Association
of
Singapore
(Redas) had been lobbying for a review of the
cooling measures in recent years. Most
recently, a Member of Parliament had asked if
MND will consider removing the additional
buyers stamp duty for Singaporeans but
retain it for foreigners. Augustine Tan from
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Redas said that the association desires

stability in the market and does not want a
continued slowdown to have negative
spillover effects on the broader economy.
While experts believe that poor private sector
construction demand may slow the economy
in 2016, MAS believes that any impact of a
property slowdown on the economy will be
contained. MAS also added that the
construction workforce is generally able to
adjust flexibly to changes in demand without
discernible impact on local employment, as
the sector is made up of a transitory foreign
workforce.
(Source: Business Times)
Tanjong Katong bungalow up for auction
Located at Tanjong Katong, a freehold
bungalow has been put up for auction as a
mortgagee sale.
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SINGAPORE PROPERTY WEEKLY Issue 252

The indicative price of the property is about
$16 million or $1,213 psf on the land area of
13,189 sq ft. The property may be
redeveloped and the site has been zoned for
residential use within a two-storey bungalow
landed housing area. DTZ said that the plot
may be subdivided to give a pair of
bungalows
or
semi-detached
houses,
subjected to approval from authorities.
(Source: Business Times)
Commercial

Co-working
popularity

space

expected

to

gain

Cushman & Wakefield said that co-working

spaces can be a hedge for office landlords
against a wave of new office completions.
Undesirable or non-performing spaces may
be carved out for tenants to rent on a needs
basis. Developers may also consider bundling
a portion of the vacant space with committed
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space, rather than engage in a price war, said

market experts. Located at Keppel Towers,
Workspace, is a new business venture by
Keppel Land that offers both serviced offices
and co-working spaces that cater to small
startups. Cushman & Wakefield believes that
co-working spaces will allow business to
rescale their space requirements without
having to deal with rigid terms in existing
lease terms. These spaces also encourage
cross-pollination of ideas and promotes a
sense of community, as they tend to be large
open areas, unlike serviced offices with
private rooms. Given the stability of demand
from co-working and its profitability, Christine
Li from Cushman & Wakefield said that coworking operators should consider expanding
so as to take advantage of the current supply
of 3.6 million sq ft of Grade A office space,
that is entering the market this year.
(Source: Business Times)
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SINGAPORE PROPERTY WEEKLY Issue 252

Non-Landed Residential Resale Property Transactions for the Week of Mar 7 Mar 11

Postal
District
1
2
2
3
4
4
5
5
5
8
8
8
9
9
9
9
9
9
9
10
10
10

Project Name
PEOPLE'S PARK COMPLEX
THE BEACON
CHINATOWN PLAZA
ALEXIS
CARIBBEAN AT KEPPEL BAY
THE INTERLACE
BOTANNIA
THE INFINITI
PALM MANSIONS
CITY SQUARE RESIDENCES
CITIGATE RESIDENCE
STURDEE VIEW
THE METZ
RIVERGATE
THE PATERSON
MARTIN PLACE RESIDENCES
BELLE VUE RESIDENCES
SUITES AT ORCHARD
ASPEN HEIGHTS
RV RESIDENCES
GRANGE RESIDENCES
THE TESSARINA

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Area
(sqft)
463
969
1,722
527
1,227
3,401
1,238
1,270
1,324
570
570
1,475
1,023
1,561
1,421
1,722
1,938
1,776
883
861
2,486
990

Transacted
Price ($)
525,000
1,388,000
1,880,000
838,000
1,780,000
4,080,000
1,450,000
1,188,000
1,170,000
955,000
700,000
1,398,000
2,488,888
3,100,000
2,620,000
3,135,000
3,400,000
2,912,250
1,360,000
1,830,000
4,800,000
1,515,000

Price
Tenure
($ psf)
1,134
99
1,433
99
1,092
FH
1,589
FH
1,451
99
1,199
99
1,171 956
935
FH
884
FH
1,674
FH
1,227
FH
948
FH
2,434
FH
1,986
FH
1,844
FH
1,820
FH
1,755
FH
1,640
99
1,541 999
2,125 999
1,930
FH
1,530
FH

Postal
District
10
10
10
10
11
12
14
14
15
15
15
15
15
16
16
16
17
17
19
20
20
20

Project Name
VALLEY PARK
HOLLAND PEAK
BELMOND GREEN
THE TRIZON
ADRIA
TREVISTA
VACANZA @ EAST
CASA SARINA
THE SEA VIEW
MOUNTBATTEN LODGE
AMBER RESIDENCES
COSTA RHU
LAGUNA PARK
RIVIERA RESIDENCES
EAST MEADOWS
THE BAYSHORE
CHANGI GARDEN
LOYANG VALLEY
A TREASURE TROVE
THOMSON V TWO
BISHAN 8
BISHAN 8

Area
(sqft)
1,109
1,905
2,411
5,737
1,281
1,109
807
1,184
560
377
1,518
2,056
1,615
786
1,216
1,238
1,475
1,873
1,130
689
1,163
1,173

Transacted
Price ($)
1,592,000
2,660,000
3,180,000
6,550,000
2,110,000
1,458,000
938,000
980,000
1,030,000
575,000
1,850,000
2,480,000
1,340,000
940,000
1,080,000
1,080,000
900,000
1,050,000
1,125,000
880,000
1,310,000
1,220,000

Price
Tenure
($ psf)
1,436 999
1,396
FH
1,319
FH
1,142
FH
1,647
FH
1,315
99
1,162
FH
828
FH
1,840
FH
1,526
FH
1,219
FH
1,206
99
830
99
1,196
FH
888
99
872
99
610
FH
561
99
995
99
1,277
FH
1,127
99
1,040
99

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SINGAPORE PROPERTY WEEKLY Issue 252

Postal
District
20
20
21
21
21
21
21
21
22
23
23
23
23
23
25
26
27

Project Name
MARYMOUNT VIEW
BRADDELL VIEW
THE NEXUS
JARDIN
CLEMENTI PARK
SIGNATURE PARK
ASTOR GREEN
THE CASCADIA
THE LAKESHORE
THE LINEAR
MAYSPRINGS
HILLINGTON GREEN
PALM GARDENS
THE WARREN
PARC ROSEWOOD
CASTLE GREEN
EUPHONY GARDENS

Area
(sqft)
1,259
1,615
1,485
1,808
1,873
1,421
1,528
2,336
861
1,249
915
2,347
1,206
1,227
506
947
1,044

Transacted
Price ($)
1,210,000
1,285,000
2,070,000
2,228,000
1,918,000
1,435,000
1,500,000
2,250,000
980,000
1,110,000
785,000
1,820,000
925,000
930,000
600,000
760,000
785,000

Price
Tenure
($ psf)
961
FH
796
99
1,394
FH
1,232
FH
1,024
FH
1,010
FH
981
99
963
FH
1,138
99
889
999
858
99
776
999
767
99
758
99
1,186
99
802
99
752
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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