Issue 277

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

CONTENTS
p2

FROM THE

EDITOR

4 Things Buyers Wish They Knew Before

Welcome to the 277th edition of the

Singapore Property Weekly.

Buying a Property
Hope you like it!

p9
p12

Singapore Property News This Week

Mr. Propwise

Resale Property Transactions

(August 29 September 2)

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SINGAPORE PROPERTY WEEKLY Issue 277

4 Things Buyers Wish They Knew Before Buying

a Property
By Property Soul (guest contributor)

The radio is playing Chers If I Could Turn

Back Time when an email from a blog reader
popped up on my screen.
Youve Got Mail
Its another message about a home buyers
remorse. Every week there are so many
messages on disappointment and regret after
buying properties. They all go like this:
I wish I hadbefore I bought
Why didnt anyone tell me
If only we knew,we wouldnt have
We should havebut we had no idea

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SINGAPORE PROPERTY WEEKLY Issue 277

So many regrets. Whats the use of crying
over spilled milk? The sad part is that these
messages all end with an inevitable request
for advice like What do you think I should do
now?or Do you think I shouldor
How do I know? I am not you.
I have been advocating for prudent
investment in private properties in my blog
since 2010. I am doing my job as a
nutritionist, not a surgeon. I take preventive
measures, not remedial actions.
Why dont buyers do some research on the
market? Why cant they check with the bank
first before placing a deposit? Why do people
let their impulse and greed take over?
If only they knew the following fourtips on
property investment before taking the plunge,
there would be less home buyer remorse, and

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I would receive far fewer regret purchase

messages.
Tip #1 The showflat is for display; the
bare unit is for your own stay
You thought the showflat in the sales gallery
was so nice. You couldnt help but imagining
yourself staying there too.
There is nothing wrong visiting new launches
over the weekends. There is also nothing
wrong dreaming about the high life and
staying in a posh condominium. But please
wake up and get back to life after you step
out of the showflat.
The truth is like an alarm clock. You might
not want to hear it ... but it will wake you up
from your dreams and bring you back to
reality.- Anonymous

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SINGAPORE PROPERTY WEEKLY Issue 277

Look beyond the bells and whistles. Things
that are glamorous on show are often humble
in reality. After you collect the key to your
bare unit, you suddenly realize that all the
nice views and for display only Interior
Designs at the showflat were all beautiful
misunderstandings. The space constraints,
developer defects, poor workmanship, etc.
are the reality you have to deal with.
Its like how lovers show their best side to
impress when they first meet. But after they
sign on the dotted line, they begin to show
their true colors.
You get the picture?
Tip #2 Properties are not
investments; fixed deposits are

safe

You wanted to develop a habit of regular

compulsory savings by putting your money

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into a property and paying the monthly

mortgage. All adults should put aside money
for a rainy day. If you lack that discipline,
consider giving a considerable monthly
allowance to your parents or better half.
Forget the BS saying that money left in
saving accounts will be eroded by inflation.
Stop saying how property prices have jumped
multiple times in the last few decades.
Singapore has long passed the exponential
growth stage in its evolution from an
emerging to a developed country.
Do your maths: Property prices have fallen 9
percent since September 2013. The inflation
rate in Singapore was 2.4 percent in 2013.
After 2013, it has been hovering around 1
percent. Which is eroding faster in value: your
property investment or your bank savings?

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SINGAPORE PROPERTY WEEKLY Issue 277

Just take a look at the performance of
currencies in our neighboring countries who
wouldnt wish that they were holding the
strong Singapore dollar?
Remember property prices dropped 44.8
percent from its peak in 1995? Would you
rather hold cash in a low interest rate
environment or jump on the bandwagon to
buy overpriced properties?
An article in the Edge Property pointed out
that in the last quarter 1 in 3 sellers of highend properties incurred losses, with the
majority bought in 2007 and 2010. The
average loss was $1 million for units
purchased in 2007.

In the city fringe, 1 out of 8 resale deals are in

the red. In the mass market, 9 percent of
secondary
market
transactions
are
unprofitable. A majority of the units were
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purchased in 2011.
It sounds ironic but how many investors can
survive a property downturn or a housing
bubble burst with profits higher than the
interest earned by an average Joe from his
fixed deposit? Tip #3 Income and
appreciation are not guaranteed; but fees
and taxes are certain
You said you joined the huge crowd of buyers
because it was rare for retail units in centrallylocated malls to be on sale.
You bought a unit at Alexandra Central, a 99year hotel and retail development next to
IKEA@Alexandra, during the launch on
January 21, 2013. It was just after the
government introduced the 7th round of
cooling measures on January 11 when
Additional Buyer Stamp Duties were raised to
7 percent across the board.
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SINGAPORE PROPERTY WEEKLY Issue 277

Didnt you read the signs?
Even though asking prices were a whopping
$4,300 to $7,000 psf, all except 2 of the 116
shop units were snapped up on the launch
day. One upper floor unit below 200 sq ft
even attracted 150 cheques from eager
buyers.
How much rent can you fetch from a 200 to
400 sq ft shop in a 3-storey shopping mall?
How many bowls of noodles do you need to
sell in a day to cover the rent? Are you aware
that the mall is not even accessible to any
MRT station?
I went there for dinner last month on a
weekday evening. A year after the mall was
opened in 2015, far more than half of the
shops at Alexandra Central are still vacant.
There are more shopkeepers than visitors. It
is that kind of mall that, after you see how
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quiet the ground floor is, you dont bother to

go up to the second and third floor.
Suppose you bought a 400 sq ft shop at $1.8
million and are paying a monthly loan of
$3,200.If you are lucky to find a tenant to pay
a rent of $3,200, your return is close to zero.
But wait, you havent taken into account the
high monthly maintenance fee and property
tax, on top of the stamp duties and legal fee
you already paid.
In this market, it is also not easy to find a
buyer to take over a vacant unit in a quiet
mall. Above all, commercial properties are
subject to a 5 to 15 percent Seller Stamp
Duty in the first three years.

Honestly I dont think any buyer benefited

except Chip Eng Seng Corporation. Because
of their best-selling project Alexandra Central,
the property developers quarterly net profit
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SINGAPORE PROPERTY WEEKLY Issue 277

jumped $167.6 million, a 383.9 percent
increase from the preceding year.
Think about generating income and capital
appreciation from property investment? Think
again. In properties, nothing is certain except
fees and taxes.
Tip #4 No Freehold is not a problem; no
holding power is
You said you paid more to buy a freehold
property because the value of freehold
properties can hold. Have you over-estimated
the investment value of freehold properties?
Just because developers bought the freehold
land at higher prices doesnt mean it is
justified for you to pay a premium too.
Afterall, the property game is all about
affordability and holding power. And did I not
mention buying the right property at the right

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time at the right price?

Dont complain that you cant finance or
refinance your properties because of the
restrictive Total Debt Servicing Ratio rules.
Before you place a deposit, read my 3-3-5
rule again please.
Both freehold and leasehold properties
appreciate in value during good times. The
reverse is also true.
Tenants rent a place for its location, quality
and value. They dont give a damn whether
your property is freehold or leasehold. No
freehold tenure is not a problem not having
a tenant is.
How long can you continue paying the
mortgage, maintenance and taxes when you
cant find a tenant?

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SINGAPORE PROPERTY WEEKLY Issue 277

If you have no holding power, youve got to
cut loss at certain point of time and let it go.
Regardless whether your property is
leasehold or freehold, it is not free to hold.
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.

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SINGAPORE PROPERTY WEEKLY Issue 277

Singapore Property This Week

Residential
HDB resale volume up by 19.5% in August
HDB resale transactions in August rose 19.5
per cent to 1,879 flats, compared to a month
ago as prices slipped 0.7 per cent, according
to estimates by SRX Property. The higher
resale volume could be due to the possibility
that owners who chose to sell in the lull lunar
seventh month are usually more desperate.
They might offload their existing flat urgently
as their new executive condominiums (ECs)
or build-to-order flats have been completed
for a while.
(Source: Business Times)

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Freehold apartments in prime districts

might soon be up for sale
A BUNDLE of three smallish freehold
apartment developments in prime districts 9
and 10 may be put on the market soon. The
portfolio comprises 120 Grange Road,
Cuscaden Mansions at 3 Cuscaden Walk,
and 8 Hullet Road. The developments house
47 units in total. Their total strata area is
almost 40,000 sq ft. The current estimated
gross floor area (GFA) is believed to reflect a
2.2 plot ratio (ratio of GFA to land area). The
owner is said to be a trust operated out of the
United Kingdom.
(Source: Business Times)
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SINGAPORE PROPERTY WEEKLY Issue 277

Commercial
Two more Starwood brands to arrive in
Singapore
Two more Starwood brands, The Luxury
Collection and Tribute Portfolio, will make
their debut in Singapore within the next two
years, increasing the number of Starwood
properties in Singapore to eight. Rajit
Sukumaran,
senior
vice-president,
acquisitions & development, Asia Pacific at
Starwood Hotels & Resorts, said Starwood is
confident the two distinct brands will make
their mark in Singapore's "highly competitive
hospitality market".

Farrer Square's last 6 medical suites

offered for sale
The top two strata floors of medical suites,
comprising six units in the Farrer Square
development in Little India, are being offered
for sale through an expression-of-interest
(EOI) exercise. Farrer Square's remaining six
medical suites are available for sale on a bulk
or individual-unit basis with an indicative
asking price of about S$5,100 per square foot
(psf). A wide variety of buyers are expected,
including high-net worth investors and
medical group end-users.
(Source: Business Times)

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 277

Largest freehold automobile mega hub in
S'pore tops out
Boutique property developer BS Capital will
top out Carros Centre on Wednesday. It will
be the largest freehold automobile mega hub
in Singapore. The freehold strata-titled
industrial development has over 2.3 million
square feet of built-up area, spanning eight
floors, and comprises 383 strata units.
Scheduled for completion by the first quarter
of 2017, Carros Centre is an industrial
integrated development located at 60 Jalan
Lam Huat, within Sungei Kadut in the north
region.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 277

Non-Landed Residential Resale Property Transactions for the Week of Aug 29 Sep 2

Postal
District
2
3
3
4
4
4
4
4
4
4
4
4
5
5
5
5
7
8
8
9
9
9
9

Project Name
ICON
QUEENS
RIVER PLACE
SKYLINE RESIDENCES
REFLECTIONS AT KEPPEL BAY
THE INTERLACE
THE INTERLACE
THE INTERLACE
THE INTERLACE
THE INTERLACE
THE INTERLACE
THE INTERLACE
ONE-NORTH RESIDENCES
BOTANNIA
CARABELLE
VARSITY PARK CONDOMINIUM
SOUTHBANK
CITYLIGHTS
CITYLIGHTS
RIVERGATE
ONE DEVONSHIRE
YONG AN PARK
RESIDENCES AT 338A

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Area
(sqft)
581
915
1,970
1,292
1,733
2,465
2,120
2,056
2,056
2,056
2,120
5,328
1,335
1,550
1,292
1,292
614
560
1,851
1,023
1,335
1,023
1,206

Transacted
Price ($)
1,050,000
1,200,000
1,920,000
2,210,000
2,210,000
2,800,000
2,386,000
2,276,000
2,244,000
2,165,000
2,174,000
3,447,000
1,800,000
1,820,000
1,360,000
1,350,000
990,000
880,000
2,650,000
2,250,000
2,700,000
1,680,000
1,870,000

Price
Tenure
($ psf)
1,806
99
1,312
99
975
99
1,711
FH
1,275
99
1,136
99
1,125
99
1,107
99
1,091
99
1,053
99
1,025
99
647
99
1,349
99
1,174 956
1,053 956
1,045
99
1,614
99
1,572
99
1,431
99
2,200
FH
2,023
FH
1,643
FH
1,551
FH

Postal
District
9
9
10
10
10
10
10
10
10
10
10
10
10
10
10
11
11
12
12
12
12
12
12

Project Name
TIARA
ASPEN HEIGHTS
TOMLINSON HEIGHTS
THE NASSIM
CUSCADEN RESIDENCES
ONE JERVOIS
GALLOP GREEN
SHEARES VILLE
CHELSEA GARDENS
THE ASTON
VALLEY PARK
D'LEEDON
ONE JERVOIS
D'LEEDON
MONTVIEW
STRATA
D'CHATEAU @ SHELFORD
PRESTIGE HEIGHTS
THE ARTE
NOVA 48
THE MARQUE @ IRRAWADDY
RIVERSIDE MELODIES
OLEANDER TOWERS

Area
(sqft)
1,345
1,324
4,047
3,089
1,485
635
3,509
1,475
2,508
667
1,216
2,260
1,496
2,228
1,948
840
775
409
1,055
1,152
872
1,421
1,141

Transacted
Price ($)
2,050,000
2,000,000
11,600,000
7,327,186
2,850,000
1,125,000
5,860,000
2,280,000
3,850,000
980,000
1,738,000
3,191,000
2,100,000
3,036,000
2,600,000
1,208,000
1,100,000
610,000
1,320,000
1,410,000
1,058,000
1,717,000
1,250,000

Price
Tenure
($ psf)
1,524
FH
1,511 999
2,866
FH
2,372
FH
1,919
FH
1,771
FH
1,670
FH
1,546
FH
1,535
FH
1,468
FH
1,429 999
1,412
99
1,404
FH
1,363
99
1,335
FH
1,439
FH
1,419
FH
1,491
FH
1,251
FH
1,224
FH
1,213
FH
1,208
FH
1,096
99

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SINGAPORE PROPERTY WEEKLY Issue 277

Postal
District
12
15
15
15
15
15
15
15
15
15
15
15
15
15
15
16
16
18
18
18
19
19
19
20
21
21

Project Name
SUITES @ TOPAZ
THE SEAFRONT ON MEYER
ONE AMBER
THE SOVEREIGN
PALM GALLERIA
WATER PLACE
COTE D'AZUR
WATER PLACE
FORT GARDENS
COSTA RHU
THE ELEGANCE @ CHANGI
ELLIOT AT THE EAST COAST
H RESIDENCES
THE MINT RESIDENCES
RESIDENCE 118
COSTA DEL SOL
PARBURY HILL CONDOMINIUM
LIVIA
EASTPOINT GREEN
THE TROPICA
THE SCALA
KOVAN RESIDENCES
COMPASS HEIGHTS
SIN MING PLAZA
SIGNATURE PARK
PARC PALAIS

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Area
(sqft)
958
1,604
1,701
2,637
495
1,281
1,109
1,216
1,345
1,776
1,012
2,605
1,066
1,130
2,465
1,313
840
915
1,130
1,238
474
883
1,066
2,142
1,701
1,206

Transacted
Price ($)
930,000
2,350,000
2,380,000
3,540,000
650,000
1,590,000
1,365,000
1,470,000
1,500,000
1,940,000
1,100,000
2,600,000
1,060,000
925,000
1,626,000
1,588,800
915,000
828,000
860,000
920,000
715,000
1,020,000
920,000
1,800,000
1,890,000
1,218,000

Price
Tenure
($ psf)
971
FH
1,465
FH
1,399
FH
1,342
FH
1,313
FH
1,241
99
1,231
99
1,209
99
1,115
FH
1,092
99
1,087
FH
998
FH
995
FH
818
FH
660
FH
1,210
99
1,090
FH
905
99
761
99
743
99
1,510
99
1,156
99
863
99
840
FH
1,111
FH
1,010
FH

Postal
District
21
21
21
21
21
22
22
23
23
23
23
23
23
27

Project Name
PARC PALAIS
SYMPHONY HEIGHTS
PARC PALAIS
ASTOR GREEN
PINE GROVE
THE CENTRIS
PARC OASIS
GLENDALE PARK
MI CASA
CASHEW HEIGHTS CONDOMINIUM
CASHEW HEIGHTS CONDOMINIUM
NORTHVALE
NORTHVALE
EUPHONY GARDENS

Area
(sqft)
1,485
1,798
2,799
1,475
1,690
1,238
1,076
1,249
1,259
1,658
1,647
1,270
1,270
1,044

Transacted
Price ($)
1,450,000
1,680,000
2,600,000
1,280,000
1,090,000
1,400,000
955,000
1,330,000
1,150,000
1,500,000
1,488,000
910,000
850,000
838,000

Price
Tenure
($ psf)
976
FH
935
FH
929
FH
868
99
645
99
1,131
99
887
99
1,065
FH
913
99
905
999
904
999
716
99
669
99
803
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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