Issue 297

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 CONTENTS FROM THE

p2 4 Cooling Measure You Must Consider

EDITOR
Welcome to the 297th edition of the
Singapore Property Weekly.
Before Buying a Property
Hope you like it!
p7 Resale Property Transactions
Mr. Propwise
(January 22 January 26)

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 SINGAPORE PROPERTY WEEKLY Issue 297

4 Cooling Measure You Must Consider Before

Buying a Property

By Eugene Huang (guest contributor)

So you made your first foray into real estate

some years back and are now sitting pretty
on a property that has appreciated. You pride
yourself on that smart decision. With the
current depressed property market, as a
savvy and sophisticated investor, you have
the stamina to hold on to your current
property (or properties) but do not want to
lose out on the opportunity to buy low at this
point.

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 SINGAPORE PROPERTY WEEKLY Issue 297

So you want to buy another property, drawn Lets look at the four considerations any
in by what look like attractive prices. Why buyer should take note of before buying
not? Home values have dropped for more another property.
than 3 years now, posting the longest losing
Consideration #1 Additional Buyers
streak in 17 years. The view going forward
Stamp Duty (ABSD)
doesnt look like prices are going to rebound.
Also, cooling measures seem to be here to First announced in 2011 and revised on 12
stay. Jan 2013, the ABSD was introduced to slow
the growth of the property market. It is a tax
You should tread carefully. You may be
payable on top of the normal Buyers Stamp
familiar with the rules of the cooling
Duty when you purchase or acquire a
measures, but may not truly understand how
residential property, i.e. it is applicable to both
far reaching they are. You may face obstacles
HDB flats and Private Properties. This has
in getting a loan approved or lack adequate
significantly increased the initial capital
collateral backing. The worst case scenario is
outlay when you are purchasing your 2nd
to be caught in a situation where you have
and subsequent properties. One important
the financial means but still face with
point to note that if a Singaporean purchases
problems buying another property as you
the property with a PR or foreigner, the higher
have difficulty getting a loan.
rate will apply.

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 SINGAPORE PROPERTY WEEKLY Issue 297
Consideration #2 LTV (Loan To Value)
The LTV is the housing loan quantum a bank
or financial institution is willing offer as a
percentage of the valuation of the property in
question. Again, this was not spared from the
far reaching impact of the cooling measures
to curb property speculation and prices.
The highlights of the current rules are:
All residential property loans are now only
allowed a maximum loan tenure of 35
years
If you take up a loan of more than 30
years or if it extends past the age of 65,
you can either:
borrow up to 60% of property value if
you do not have an existing housing loan
borrow up to 40% of property value if you
have an existing housing loan
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The same rules will be applied to refinancing
residential properties. Non-individual
borrowers will now have a cap of 40% LTV.
We have not taken property valuation into
consideration. With a conservative approach
adopted by property valuers these days, the
cash portion to be paid upfront will also be
significantly increased if the valuation do not
meet the purchase price, adding to the
burden of an already reduced LTV.
Consideration #3 TDSR (Total Debt
Servicing Ratio)
It is not easy to understand the workings of
the TDSR, especially for first time applicants
of mortgage loans. However, the objective of
the TDSR is to prevent an individual from
being overextended because of a property
purchase.
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 SINGAPORE PROPERTY WEEKLY Issue 297

Whether the property is for investment
purposes or for owner occupation, it is to
safeguard you from purchasing a property
that is above your means. Just remember this
magic formula:
Total commitment / Total income <= 60%
fulfil the TDSR assessment of 60% where all
commitments will be included.
The logic of these measures are simple but
the impact to you as a property investor is
greater than the sum of the parts put
together.

Consideration #4 MSR (Mortgage By guest contributor Eugene Huang, who is a

Servicing Ratio) co-founder of Redbrick, an established
mortgage advisory that assists investors and
MSR caps the amount an individual can
homeowners in sourcing for the best
spend on mortgage repayments to 30% of a
financing option catered for their needs. They
borrowers gross monthly income (excluding
partner with major local and international
other commitments) and it comes into effect
financial institutions and deal with the banks
on 12 Jan 2013. Unlike the TDSR, which is
on the consumers behalf.
applicable to all housing loans, MSR applies
to HDB flats and ECs (Executive
Condominiums), including the refinancing of
these loans. After which, they also have to

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 SINGAPORE PROPERTY WEEKLY Issue 297

Having come from the local banking industry,

Eugene Huang possesses over a decade of
proven track record in providing financing
solutions for real estate owners. In addition,
the team at Redbrick has handled over 2,000
properties and over SGD$2 billion in
mortgages. More than just a local mortgage
advisory, they also structure and source for
both commercial and residential mortgages in
Asia-pacific including Singapore, Malaysia,
Thailand, Australia, as well as Japan, USA
and the UK.

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 SINGAPORE PROPERTY WEEKLY Issue 297

Non-Landed Residential Resale Property Transactions for the Week of Jan 22 Jan 26

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
1 THE CLIFT 527 960,000 1,820 99 10 D'LEEDON 1,356 2,020,000 1,489 99
2 ALTEZ 527 1,100,000 2,086 99 10 THE TESSARINA 1,367 1,800,000 1,317 FH
2 DORSETT RESIDENCES 689 1,240,000 1,800 99 10 DUCHESS CREST 1,345 1,675,000 1,245 99
2 THE BEACON 1,302 1,500,000 1,152 99 11 SOLEIL @ SINARAN 4,715 8,800,000 1,867 99
3 ALEXIS 689 950,000 1,379 FH 11 ALEGRIA 667 880,000 1,319 FH
3 RIVER PLACE 1,033 1,335,000 1,292 99 12 SKYSUITES17 366 600,000 1,639 FH
4 CARIBBEAN AT KEPPEL BAY 1,636 2,438,000 1,490 99 12 THE INTERWEAVE 388 560,000 1,445 FH
5 THE PEAK@BALMEG 1,507 1,826,000 1,212 FH 12 TRELLIS TOWERS 1,485 1,910,000 1,286 FH
5 DOVER PARKVIEW 1,249 1,190,000 953 99 12 AVA TOWERS 1,281 1,230,000 960 FH
8 MERGUI MANSIONS 1,432 1,408,888 984 FH 14 ASTORIA PARK 1,173 1,090,000 929 99
9 TWENTYONE ANGULLIA PARK 3,154 11,985,200 3,800 FH 14 SIMSVILLE 980 800,000 817 99
9 THE PEAK @ CAIRNHILL II 829 2,375,000 2,865 FH 14 ATRIUM RESIDENCES 1,991 1,300,000 653 FH
9 OUE TWIN PEAKS 1,055 3,017,300 2,860 99 15 THE MEYERISE 1,302 2,580,000 1,981 FH
9 OUE TWIN PEAKS 1,055 2,975,100 2,820 99 15 PEBBLE BAY 3,154 4,250,000 1,348 99
9 OUE TWIN PEAKS 1,399 3,763,480 2,690 99 15 PARKSHORE 1,367 1,650,000 1,207 FH
9 THE PEAK @ CAIRNHILL II 904 2,409,000 2,664 FH 15 WATER PLACE 1,281 1,490,000 1,163 99
9 OUE TWIN PEAKS 570 1,496,020 2,622 99 15 VERSILIA ON HAIG 2,293 2,380,000 1,038 FH
10 NASSIM PARK RESIDENCES 3,466 12,500,000 3,606 FH 15 FERNWOOD TOWERS 1,195 1,100,000 921 FH
10 ARDMORE THREE 1,787 6,286,005 3,518 FH 15 LAGUNA PARK 1,615 1,260,000 780 99
10 GRAMERCY PARK 2,637 7,268,800 2,756 FH 16 WATERFRONT KEY 1,442 1,300,000 901 99
10 GRAMERCY PARK 2,196 5,564,664 2,534 FH 17 AVILA GARDENS 603 540,000 896 FH
10 GRAMERCY PARK 2,174 5,469,930 2,516 FH 18 WATERVIEW 786 810,000 1,031 99
10 LEEDON RESIDENCE 1,044 2,480,000 2,375 FH 18 DOUBLE BAY RESIDENCES 1,259 1,260,000 1,000 99
10 LEEDON RESIDENCE 1,044 2,429,450 2,327 FH 18 NV RESIDENCES 764 738,000 966 99

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 SINGAPORE PROPERTY WEEKLY Issue 297

Postal Area Transacted Price

Project Name Tenure
District (sqft) Price ($) ($ psf)
18 LIVIA 1,270 920,000 724 99
18 ELIAS GREEN 1,518 840,000 553 99
18 ELIAS GREEN 1,507 825,000 547 99
19 THE MINTON 1,658 1,630,000 983 99
19 THE QUARTZ 1,421 1,290,000 908 99
19 EVERGREEN PARK 1,173 748,000 638 99
21 MAPLEWOODS 1,378 1,960,000 1,423 FH
21 SIGNATURE PARK 1,356 1,460,000 1,076 FH
21 HILLVIEW GREEN 1,292 1,228,000 951 99
21 MAYFAIR GARDENS 1,087 850,000 782 99
21 MAYFAIR GARDENS 2,153 1,513,000 703 99
22 THE LAKESHORE 1,141 1,200,000 1,052 99
22 LAKEHOLMZ 1,238 1,080,000 872 99
22 THE CENTRIS 1,561 1,270,000 814 99
23 HILLINGTON GREEN 1,927 1,748,000 907 99
23 THE MADEIRA 1,238 1,070,000 864 99
23 REGENT HEIGHTS 1,023 855,000 836 99
27 THE NAUTICAL 1,130 1,080,000 956 99
28 MIMOSA PARK 2,314 1,750,000 756 FH

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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