Issue 303

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 CONTENTS FROM THE

p2 3 Reasons Why the Property Measure

EDITOR
Welcome to the 303th edition of the
Singapore Property Weekly.
Tweaks Are Not a Good Sign
Hope you like it!
p8 Resale Property Transactions
Mr. Propwise
(March 5 March 10)

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 SINGAPORE PROPERTY WEEKLY Issue 303

3 Reasons Why the Property Measure Tweaks

Are Not a Good Sign

By Property Soul (guest contributor)

On 10 March 2017, a press release was

jointly issued by Ministry of National
Development, Ministry of Finance and the
Monetary Authority of Singapore to make
adjustments to the Sellers Stamp Duty (SSD)
and Total Debt Servicing Ratio (TDSR)
framework, with effect from 11 March 2017.
The changes are as follows:

1) The holding period liable for SSD is revised

from 4 to 3 years. There is also a 4 percent
reduction every year on the original SSD
payable.

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 SINGAPORE PROPERTY WEEKLY Issue 303
2) TDSR is exempted for mortgage equity
withdrawal loans with LTV (Loan To Value)
ratios of 50 percent and below.
3) A new stamp duty, the Additional
Conveyance Duty (ACD), is introduced for
residential property transactions undertaken
via transfer of shares in property-holding
entities. The seller pays a flat rate of 12
percent for a 3-year holding period. On top of
that, a prevailing 0.2 percent stamp duty for
transfer of shares applies.
Contrary to those who celebrated by dumping
more money into new launches and property
stock counters, the sudden tweak of the
cooling measures is not a good sign for the
property market for the following three
reasons.
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Reason #1 If everything is going to be
fine, you dont have to do anything
Singapore introduced the first round of
cooling measures in September 2009. The
last round of cooling measures, the eigth and
the hardest round with the new TDSR
framework, was announced in June 2013.
After that, for a long 45 months, the
government stayed firm on its
implementation. The intention was to ensure
that there is a meaningful correction and a
soft landing of the property market. A pre-
mature lifting of the measures would undo the
governments efforts to make home prices
affordable. The government would monitor
the market and adjust when necessary.
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 SINGAPORE PROPERTY WEEKLY Issue 303

A necessary move was finally taken on the Reason #2 If it works so well, forget
10th of March. about the market going up any further

When the adjustment is on the Sellers Stamp Hong Kong property prices have increased
Duty but not the Additional Buyer Stamp Duty, more than 150 percent since 2009 and 370
this is not good. percent since 2003. The government has
announced borrowing restrictions and a 15
Relaxing the ABSD implies that the
percent hike in stamp duties. Still, prices
government wants to stimulate demand. But
continue to reach record high in new projects.
tweaking the SSD means that the
Similarly, countries like Australia, New
government perceives the market will go
Zealand and Canada have imposed tighter
through a tough time soon. When the group
rules for foreign investment in properties. Still,
of owners with less holding power decides to
their real estate market proves to be more
cut loss, we have to ensure that they can
resilient than ever. As economist John
afford to pay the SSD.
Maynard Keynes said, The market can stay
The Federal Reserve is expected to hike irrational longer than you can stay solvent.
rates at least three times this year. With the
slowdown of the economy and oversupply in
the current market, things are not going to be
fine.

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 SINGAPORE PROPERTY WEEKLY Issue 303
Singapore seems to be the only odd one out
that defied the norm for the effectiveness of
property cooling measures. Since the
enforcement of TDSR, prices have dropped
11.2 percent from the peak. While
governments in other countries are deciding
whether to impose new restrictions,
Singapore has already started fine-tuning
some rules without worrying about a U-turn in
the market. So, forget about any hope that
prices can recover any time soon.
Reason #3 If the obvious option is not
available, there is only one way out
Under the Qualifying Certificate (QC)
regulation, developers have to sell all their
units within two years of obtaining the
Temporary Occupation Permit, or pay
extension charges on the unsold units. If
developers cant sell all units in their project
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after five years, they have to pay ABSD on
the remaining units.
But developers have found a smarter way out
by moving their outstanding stock through
transfer of shares. In January, banker Wee
Cho Yaw used a company to buy over 45
remaining units of The Nassim for S$411.6
million, through the purchase of a 100 percent
stake in Nassim Hill Realty from CapitaLand.
Last July, City Developments forked out
$410.96 million for Wing Tai Holdings joint
venture Summervale Properties which owns
Nouvel 18 condo. Just three months later in
October, the unsold units were offloaded to a
group of Singapore investors via a S$977.6
million profit participation securities platform
with an annual payout. Out of that S$102
million was raised through issuing equity
shares.
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 SINGAPORE PROPERTY WEEKLY Issue 303

With the new Additional Conveyance Duties,
the loophole was plugged. Developers with
projects that are approaching the deadlines
have no choice but to pay ABSD and
extension charges. CapitaLand just called for
an extension of timeframe for developers
liable to ABSD and QC. It is also asking the
government to relook the definition of a
foreign developer. So far CapitaLand have
paid $8.03 million for The Interlace and $2.56
million for dLeedon in extension charges.
This is not a big sum for a big developer.
good sign for the home buyers: There is no
rush for the new launch. Many good offers
are on the way.
As the saying goes, they always save the
best (bargains) for last.
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.

ACD should still be bearable for large

developers that are cash-rich and financially
sound. But this may not be true for smaller
developers holding onto unsold units in
projects that are fast approaching the
deadlines. When the option of share transfer
is not feasible, pricing cutting to move
leftovers off the shelves is the only way out. A

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 SINGAPORE PROPERTY WEEKLY Issue 303
Non-Landed Residential Resale Property Transactions for the Week of Mar 5 Mar 10

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
1 MARINA BAY RESIDENCES 732 1,450,000 1,981 99 9 TOWNHOUSE APARTMENTS 2,228 1,900,000 853 99
1 THE SAIL @ MARINA BAY 667 1,250,000 1,873 99 10 GRAMERCY PARK 2,562 6,570,704 2,565 FH
1 ONE SHENTON 581 950,000 1,634 99 10 ONE BALMORAL 969 2,219,000 2,291 FH
2 SKYSUITES@ANSON 1,012 2,680,000 2,649 99 10 LEEDON RESIDENCE 2,669 5,050,000 1,892 FH
3 RIVER PLACE 786 990,000 1,260 99 10 LOFT @ STEVENS 441 799,999 1,813 FH
3 QUEENS 1,184 1,430,000 1,208 99 10 ASTRID MEADOWS 2,583 4,280,000 1,657 FH
3 THE ANCHORAGE 1,647 1,938,888 1,177 FH 10 THE TRESOR 1,485 2,260,000 1,521 999
3 TANGLIN VIEW 1,152 1,310,000 1,137 99 10 MARTINA MANSIONS 1,259 1,880,000 1,493 FH
5 HERITAGE VIEW 969 1,100,000 1,135 99 10 THE TESSARINA 969 1,380,000 1,425 FH
5 BLUE HORIZON 1,163 1,190,000 1,024 99 10 THE SIERRA 667 820,000 1,229 947
5 CLEMENTIWOODS CONDOMINIUM 1,421 1,400,000 985 99 10 THE LEGEND 1,496 1,780,000 1,190 FH
8 CITY SQUARE RESIDENCES 1,216 1,642,000 1,350 FH 10 ONE TREE HILL MANSIONS 1,615 1,440,000 892 99
8 STURDEE VIEW 1,475 1,450,000 983 FH 12 REGENT RESIDENCES 409 700,000 1,711 FH
8 KENTISH COURT 1,055 970,000 920 99 12 TRELLIS TOWERS 710 1,010,000 1,422 FH
8 N.A. 2,928 1,820,000 623 FH 12 THE MEZZO 840 990,000 1,179 FH
9 OUE TWIN PEAKS 1,399 4,029,200 2,879 99 12 BLISS LOFT 829 920,000 1,110 FH
9 THE SUITES AT CENTRAL 1,410 2,883,388 2,045 FH 12 KINGSLEY MANSIONS 1,356 1,350,000 995 FH
9 RIVERGATE 2,110 4,000,000 1,896 FH 13 8@WOODLEIGH 958 1,225,000 1,279 99
9 ST THOMAS SUITES 1,819 3,350,000 1,842 FH 13 CLYDESWOOD 1,152 1,005,000 873 FH
9 CAIRNHILL RESIDENCES 1,163 2,098,000 1,805 FH 14 PALMERA EAST 431 615,000 1,428 FH
9 THE COSMOPOLITAN 1,679 2,900,000 1,727 FH 14 LEVENUE 463 650,000 1,404 FH
9 2 RVG 893 1,500,000 1,679 FH 14 RESIDENCES 88 431 565,000 1,312 FH
9 ROBERTSON 100 883 1,480,000 1,677 FH 15 FULCRUM 474 964,000 2,035 FH
9 LEONIE GARDENS 2,540 2,770,000 1,090 99 15 FULCRUM 829 1,410,750 1,702 FH

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 SINGAPORE PROPERTY WEEKLY Issue 303

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
15 THE SEA VIEW 560 948,000 1,694 FH 19 OASIS GARDEN 1,238 1,300,000 1,050 FH
15 TIERRA VUE 947 1,340,000 1,415 FH 19 COMPASS HEIGHTS 667 695,000 1,041 99
15 THE SERENNO 484 668,000 1,379 FH 19 FIORENZA 1,345 1,380,000 1,026 FH
15 LAVERNE'S LOFT 441 590,000 1,337 FH 19 A TREASURE TROVE 1,044 1,070,000 1,025 99
15 THE ESTA 3,068 4,000,000 1,304 FH 19 THE MINTON 1,496 1,500,000 1,003 99
15 COTE D'AZUR 1,270 1,565,000 1,232 99 19 RIVERSAILS 947 818,000 864 99
15 THE CHERRYWOOD 667 822,000 1,232 FH 19 CHILTERN PARK 1,647 1,335,000 811 99
15 TEMBELING COURT 1,324 1,420,000 1,073 FH 19 CHERRY GARDENS 2,110 1,300,000 616 99
15 LAGUNA PARK 1,615 1,428,800 885 99 20 SKY VUE 678 1,148,300 1,693 99
15 NEPTUNE COURT 1,270 945,000 744 99 20 BRADDELL VIEW 1,701 1,388,800 817 99
16 COSTA DEL SOL 1,475 1,450,000 983 99 20 THOMSON VIEW CONDOMINIUM 2,024 1,530,000 756 99
16 BAYSHORE PARK 936 810,000 865 99 20 THOMSON IMPERIAL COURT 2,228 1,668,000 749 FH
16 BAYSHORE PARK 2,239 1,900,000 849 99 21 FLORIDIAN 915 1,550,000 1,694 FH
16 BAYSHORE PARK 1,173 938,888 800 99 21 THE RAINTREE 1,270 1,235,000 972 99
17 HEDGES PARK CONDOMINIUM 484 526,000 1,086 99 22 THE LAKEFRONT RESIDENCES 1,399 1,740,000 1,243 99
17 THE GALE 980 835,000 852 FH 22 CASPIAN 1,604 1,625,000 1,013 99
18 Q BAY RESIDENCES 1,119 1,208,000 1,079 99 23 THE JADE 1,615 1,560,000 966 99
18 RIPPLE BAY 775 760,000 981 99 23 HILLBROOKS 1,076 975,000 906 FH
18 NV RESIDENCES 764 720,000 942 99 23 MI CASA 1,313 1,100,000 838 99
18 TROPICAL SPRING 1,356 999,990 737 99 23 HILLVIEW GARDEN ESTATE 1,076 894,000 831 998
18 MELVILLE PARK 1,044 730,800 700 99 23 HILLVIEW REGENCY 1,109 850,000 767 99
18 ELIAS GREEN 1,550 880,000 568 99 23 MI CASA 1,259 900,000 715 99
19 CASA CAMBIO 667 1,030,000 1,543 FH 25 PARC ROSEWOOD 431 528,000 1,226 99
19 SUITES @ PAYA LEBAR 614 835,000 1,361 FH 25 ROSEWOOD SUITES 1,066 850,000 798 99
19 SUNGLADE 1,141 1,300,000 1,139 99 26 FOREST HILLS CONDOMINIUM 1,195 946,000 792 99
19 KENSINGTON PARK CONDOMINIUM 1,249 1,360,000 1,089 999 27 SKIES MILTONIA 527 570,000 1,081 99

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 SINGAPORE PROPERTY WEEKLY Issue 303

Postal Area Transacted Price

Project Name Tenure
District (sqft) Price ($) ($ psf)
27 CANBERRA RESIDENCES 904 860,000 951 99
27 EUPHONY GARDENS 980 730,000 745 99
27 EUPHONY GARDENS 1,141 720,000 631 99
28 GRANDE VISTA 2,702 2,080,000 770 999
28 SUNRISE GARDENS 1,270 880,000 693 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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