Issue 299

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 CONTENTS FROM THE

p2 4 Reasons Why Hong Kongs New Stamp

EDITOR
Welcome to the 299th edition of the
Singapore Property Weekly.
Duty Cant Save Singapores Property Market
Hope you like it!
p8 Resale Property Transactions
Mr. Propwise
(February 5 February 10)

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 SINGAPORE PROPERTY WEEKLY Issue 299

4 Reasons Why Hong Kongs New Stamp Duty

Cant Save Singapores Property Market

By Property Soul (guest contributor)

Bloomberg recently published an article on

how Hong Kong Property Tax May Help End
Singapores Housing Slump (Bloomberg, Jan
19). The journalist cites the remarks of a
Cushman & Wakefield spokesperson that
foreign buyers may turn to Singapore after
the 15 percent increase (30 percent in total)
of stamp duty in Hong Kong. This can benefit
Singapore by ending the slide of property
prices this year, especially when the Chinese
are looking for a safe haven to park their
money due to a weakening Renminbi.

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 SINGAPORE PROPERTY WEEKLY Issue 299

The herd of local business and property Reason #1 - Foreigners are paying higher
media, including Business Times, Singapore in terms of total stamp duties.
Business Review, Yahoo News,
A foreigner buying a home in Singapore must
PropertyGuru, The Edge Property and
pay 15 percent Additional Buyer Stamp Duty
Property Report, immediately picked up this
on top of the existing Buyer Stamp Duty
piece of good news without much thought
(usually under 3 percent depending on the
and came up with similar headlines of
value of the property). However, there is a
Singapore to benefit from Hong Kong tax
Seller Stamp Duty between 4 to 16 percent
hike, Hong Kongs loss in overseas buyers
payable for the property sold within 4 years
may be Singapores gain, etc.
of purchase.
For people who have a habit of comparing
If the foreigner wants to dispose the property
with others, they often make the mistake of
within a year, he is liable to a Seller Stamp
benchmarking themselves against the wrong
Duty of 16 percent. In this whole buying and
parties while overlooking the root of the
selling process, he has paid a total of close to
problem.
34 percent in stamp duties to the Singapore
Could anyone not see that there are at least government.
four fundamental faults in Cushman &
Wakefields reasoning?

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 SINGAPORE PROPERTY WEEKLY Issue 299
Reason #2 There are plenty of property broker specialized in Chinese
investment choices in countries besides investors, for last year alone, the Chinese
Singapore have dumped a total of US$80 billion in
overseas properties. The top 10 favourite
With aggressive marketing efforts of
countries for Chinese property investors are
developers and agents targeting well-to-do
(in sequence).
overseas buyers, foreign property investors
are spoilt for choice. It is not only Singapore 1) USA
and Hong Kong which are seen as stable 2) Australia
economies that help to preserve capital. 3) Canada
Places like New York, London, Vancouver and 4) New Zealand
Sydney are also mature markets that promise 5) United Kingdom
stable returns in the long-term. 6) Thailand
7) Spain
In the case of China, the government has
8) Germany
constantly imposed property buying
9) Japan
restrictions in major cities in China. With
10) France
excessive liquidity and a depreciating
Renminbi, Chinese property investment in Do you notice that Singapore and Hong Kong
global markets remains robust. are not even in the top 10? How naive to
believe that overseas property investment is a
According to Juwai.com, an international
zero-sum game between two small countries.

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 SINGAPORE PROPERTY WEEKLY Issue 299
Hong Kong developers revealed that around
20 percent of buyers in new projects are from
mainland China. According to URA, the
Chinese only bought 230 homes in Singapore
(a drop from 243 deals a year ago) for the
first nine months in 2016.
Reason #3 There are many investment
options for the Chinese
Using spare cash to buy properties is most
popular for Singaporeans. But our
counterparts in China are far more creative.
Renminbi cannot be exchanged freely in
China and there is risk of currency
devaluation. There are many ways to transfer
money out of the country, both legally and
illegally. Lets talk about only the legal options
here.
When the Renminbi depreciated 6 percent
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against US dollars last year, the Chinese
rushed to the greenback to shield them from
the weakness of their local currency.
When the Shenzhen-Hong Kong Stock
Connect opened in Hong Kong last year, the
mainland Chinese know that there is a new
legal way to get money out of China.
When the Chinese rushed in droves to Hong
Kong to buy insurance, new premium sales
from the mainland Chinese hit HK$48.9 billion
(S$9 billion) in just the first 9 months of 2016.
Hong Kong insurance agents reportedly
swiped the credit cards of eager Chinese
customers till midnight every weekend before
they went back to China. Unlike properties,
these investment-linked insurance policies
are bought in a currency pegged with the US
dollar; with guaranteed return; no risk of price
fluctuation; and can cash out any time.
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 SINGAPORE PROPERTY WEEKLY Issue 299

Who cares about buying properties in Japan are printing money like nobodys
Singapore? business, the banks find no better way than
making more loans to large corporations. But
With shortage of the Chinese currency in
these big companies all know that the market
local banks, especially approaching the Lunar
is suffering from over-capacity with declining
New Year, the 6 to 12-month fixed deposit
consumer demand. There is no point to invest
interest rate had gone up to 6 percent per
in improving productivity or cost-efficiencies.
annum. Facing a similar risk of a decline in
value, is there any Singapore investment The only way to spend that huge amount of
property selling in this market able to offer 6 cash is through endless acquisitions
percent net return in the next 6 to 12 months? through buying investment properties and
acquiring profitable or unprofitable
Reason #4 Money from QE is not
companies.
benefiting the real home buyers
Both activities are not helping the economy:
Thanks to QE (Quantitative Easing), there is
Acquiring properties at top prices further
so much liquidity and hot money flowing
increases prices of the already overheated
around, and many people have no idea what
property market. Buying companies leads to
to invest with their excessive cash and hence
unavoidable restructuring after the merger
resort to following the crowd.
with more workers losing their jobs.
When the government of US, UK, Europe and

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 SINGAPORE PROPERTY WEEKLY Issue 299
The actual end users of the residential
properties are further priced out of the
market. With high property prices and high
unemployment rate, where can we find HDB
upgraders and real home buyers to clear
those 21,000 unsold units in Singapore?
Somebodys pain is not necessarily your
gain
Two months after the announcement of the
increased stamp duty in Hong Kong, buyers
continue to snap up new projects at record
prices. Last Friday, 400 units at a project
launch in Tsuen Wan priced at a record of
over HK$20,000 per square foot were all sold
out by the end of the day.
When was the last time we saw this in
Singapore?
Foreigners may be deterred from buying
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Hong Kong properties with a 30 percent
stamp duty, and Hong Kong property prices
may face a correction. But that wont benefit
the Singapore housing market in any way.
For developers, agents, sellers and landlords,
its time they went back to work harder on
attracting buyers and tenants if they want to
stop the continuous slump of the property
market.
For fellow property buyers and investors, this
is a perfect example why we need to read the
news from the media with a pinch of salt,
especially from industry stakeholders with
vested interest.
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 299
Non-Landed Residential Resale Property Transactions for the Week of Feb 5 Feb 10

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
3 ASCENTIA SKY 1,475 2,198,000 1,491 99 10 LEEDON RESIDENCE 4,704 10,550,000 2,243 FH
4 SKYLINE RESIDENCES 1,475 2,680,000 1,817 FH 10 ST MARTIN RESIDENCE 603 1,295,000 2,148 FH
4 THE COAST AT SENTOSA COVE 2,820 4,880,000 1,730 99 10 HOLLAND RESIDENCES 1,356 2,550,000 1,880 FH
4 THE COAST AT SENTOSA COVE 2,357 3,720,000 1,578 99 10 PARVIS 1,701 2,800,000 1,646 FH
4 SEASCAPE 4,069 6,200,000 1,524 99 10 THE TRIZON 1,044 1,690,000 1,619 FH
4 THE BERTH BY THE COVE 1,658 2,072,500 1,250 99 10 BELMOND GREEN 1,550 2,150,000 1,387 FH
5 THE PARC CONDOMINIUM 980 1,180,000 1,205 FH 10 RAINBOW MANSION 1,453 2,000,000 1,376 FH
5 REGENT PARK 904 818,000 905 99 10 DALVEY COURT 2,142 2,600,000 1,214 FH
8 MERA SPRINGS 1,292 1,570,000 1,215 FH 10 DUCHESS CREST 1,711 2,068,000 1,208 99
9 SCOTTS SQUARE 947 2,800,000 2,956 FH 11 SKY@ELEVEN 2,271 3,100,000 1,365 FH
9 THE PEAK @ CAIRNHILL II 829 2,359,000 2,846 FH 11 AMARYLLIS VILLE 1,259 1,630,000 1,294 99
9 OUE TWIN PEAKS 549 1,508,800 2,748 99 11 THE ARCADIA 3,735 3,375,000 904 99
9 OUE TWIN PEAKS 1,604 4,355,280 2,716 99 11 THE ARCADIA 3,778 3,060,000 810 99
9 OUE TWIN PEAKS 1,399 3,533,340 2,525 99 12 TREVISTA 915 1,200,000 1,312 99
9 OUE TWIN PEAKS 1,399 3,491,400 2,495 99 12 CHELSEA GROVE 980 1,080,000 1,103 FH
9 THE TATE RESIDENCES 3,218 7,800,000 2,424 FH 12 CALARASI 1,184 1,250,000 1,056 FH
9 ESPADA 721 1,650,000 2,288 FH 12 BEACON HEIGHTS 1,076 1,130,000 1,050 999
9 OUE TWIN PEAKS 570 1,227,650 2,152 99 12 AVA TOWERS 1,281 1,150,000 898 FH
9 THE COSMOPOLITAN 1,141 2,270,000 1,990 FH 13 8@WOODLEIGH 829 1,080,000 1,303 99
9 THE WHARF RESIDENCE 1,076 1,908,000 1,773 999 14 ASTON MANSIONS 1,012 760,000 751 99
9 8 @ MOUNT SOPHIA 1,464 2,130,000 1,455 103 15 THE MEYERISE 883 1,638,888 1,857 FH
9 ORCHARD SCOTTS 2,088 2,900,000 1,389 99 15 ONE AMBER 570 990,000 1,735 FH
9 8 @ MOUNT SOPHIA 861 1,110,000 1,289 103 15 PEBBLE BAY 1,894 2,200,000 1,161 99
10 ARDMORE PARK 2,885 9,500,000 3,293 FH 15 SANCTUARY GREEN 1,119 1,230,000 1,099 99

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 SINGAPORE PROPERTY WEEKLY Issue 299

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
15 THE ARIEL 872 938,000 1,076 FH 21 SHERWOOD TOWER 1,518 1,038,000 684 99
15 LAGUNA PARK 1,615 1,420,000 879 99 22 THE LAKESHORE 936 995,000 1,063 99
16 WATERFRONT WAVES 1,378 1,300,000 944 99 22 THE MAYFAIR 1,227 1,030,000 839 99
16 THE BAYSHORE 969 868,000 896 99 22 LAKEHOLMZ 1,249 1,038,000 831 99
16 LIMAU PARK 1,270 1,112,000 875 FH 22 THE MAYFAIR 1,184 980,000 828 99
16 THE CLEARWATER 1,442 1,200,000 832 99 22 PARC OASIS 1,076 820,000 762 99
16 KEW GREEN 3,025 1,875,000 620 99 22 PARC OASIS 1,227 890,000 725 99
17 ESTELLA GARDENS 1,259 955,000 758 FH 23 GLENDALE PARK 1,216 1,249,000 1,027 FH
17 BALLOTA PARK CONDOMINIUM 1,249 840,000 673 FH 23 CASHEW HEIGHTS CONDOMINIUM 1,658 1,520,000 917 999
18 CHANGI RISE CONDOMINIUM 1,259 950,000 754 99 23 THE MADEIRA 1,302 1,145,000 879 99
18 LIVIA 1,152 868,000 754 99 23 HILLVIEW REGENCY 1,130 920,000 814 99
19 RIVERSAILS 1,184 1,262,000 1,066 99 23 MAYSPRINGS 1,410 960,000 681 99
19 KOVAN RESIDENCES 2,400 2,400,000 1,000 99
19 THE QUARTZ 1,367 1,150,000 841 99 NOTE: This data only covers non-landed residential resale property
19 RIO VISTA 2,465 1,800,000 730 99 transactions with caveats lodged with the Singapore Land Authority.
19 RIO VISTA 1,249 815,000 653 99 Typically, caveats are lodged at least 2-3 weeks after a purchaser
20 GOLDENHILL PARK CONDOMINIUM 1,335 1,830,000 1,371 FH signs an OTP, hence the lagged nature of the data.
20 CLOVER BY THE PARK 1,733 2,000,000 1,154 99
20 FLAME TREE PARK 1,765 1,750,000 991 FH
20 THE WINDSOR 2,174 2,050,000 943 FH
20 THOMSON VIEW CONDOMINIUM 2,024 1,580,000 781 99
20 LAKEVIEW ESTATE 1,615 1,200,000 743 99
21 THE CASCADIA 883 1,300,000 1,473 FH
21 CAVENDISH PARK 958 1,066,000 1,113 99
21 SUMMERHILL 1,259 1,360,000 1,080 FH
21 SIGNATURE PARK 1,421 1,350,000 950 FH
21 PANDAN VALLEY 2,024 1,800,000 889 FH

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