Issue 315

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

 CONTENTS FROM THE

p2 Keeping the Singapore Property Dream Alive

EDITOR
Welcome to the 315th edition of the
Singapore Property Weekly.
p8 Resale Property Transactions
Hope you like it!
(May 29 June 2) Mr. Propwise

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 SINGAPORE PROPERTY WEEKLY Issue 315

Keeping the Singapore Property Dream Alive

By Property Soul (guest contributor)

Business Times published a property feature

recently that highlighted the seven year itch
of Singaporeans investing in properties. The
property itch is in the DNA of Singaporeans
who like new launches and equate owning
properties with being rich.

Properties represent a significant portion in

the wealth of Singaporeans. The performance
of the local property market is a key indicator
for the health of our economy. It is the pride
of the nation and the self-esteem of the
citizens.

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 SINGAPORE PROPERTY WEEKLY Issue 315
The Singapore property dream
The Singapore property dream goes far
beyond housing and having a roof over our
head. To many of us, property is the source of
motivation to toil from dawn till dusk to save
for the down payment of the first flat, to pay
off the 30-year mortgage, or to reward
ourselves after years of hard work.
While Singapore has evolved from an
emerging market to a developed country,
there is no significant change in the
Singapore property dream.
What exactly is the Singapore property
dream?
It is applying for that government-subsidized
new flat, and years later, selling it to the
resale market for a handsome profit.
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It is upgrading from an HDB flat to a
condominium unit, with a high Cash-Over-
Valuation from the buyer of the flat.
It is buying a private property for investment
that can provide good passive income or high
capital appreciation.
It is putting the bet on an old property with the
hope that one day it will attract a high bid
from a developer and bag a windfall from the
en bloc sale.
If we ask people joining the long queue to buy
TOTO or Big Sweep what they will do if they
strike the jackpot, 9 out of 10 will say that
they are going to buy a nice home or a big
house. Try asking people outside Asia the
same question and 9 out of 10 will say that
they are going to take a long vacation to
travel around the world.
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 SINGAPORE PROPERTY WEEKLY Issue 315
Is the Singapore property dream still
relevant?
In my book No B.S. Guide to Property
Investment, I raise the question whether
exponential growth in the Singapore property
market can repeat itself.
Thanks to the stable government and robust
foreign direct investment, in the last 50 years
Singapores infrastructure and economy has
experienced exploding growth. Prices of
landed properties in Singapore have jumped
75 to 100 times during this period. Many
dream of history repeating itself when they
buy properties in the Little Red Dot with a
limited supply of land.
But in the last few years, the property
markets in developed countries around the
world are supported by money printing and
cheap financing, with little to do with real
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economic growth and market demand.
How sustainable is this in the long term?
In the Business Times article, Knight Franks
Head of Residential Services Tay Kah Poh
has this to say: Singapores economy is
projected to grow at only one percent to three
percent in 2017 and the annual average
overall unemployment rate in Singapore rose
to 2.1 percent in 2016 from 1.9 percent in
2015. These factors will curtail property
buying interest. All these considered, it may
therefore make more sense to view real
estate investment from a yield rather than a
capital gains perspective. Going forward, real
estate capital appreciation is likely to mirror
the growth trajectory of GDP and household
income. Against this backdrop, investors
would need to adopt a disciplined approach,
apply yield-based valuation methods to price
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 SINGAPORE PROPERTY WEEKLY Issue 315
their entry points into any deal and leverage
wisely.
What should todays property buyers
know?
Times have changed. Home buyers and
property investors should wake up to the fact
that buying properties, in terms of risk and
return, is now no different from buying stocks
and bonds. Investors are expecting to earn a
realistic yield in a low digit percentage similar
to dividends and interest. Forget about
property investment in the past that offer
capital gains in multiples of your initial
investment.
Investments that had high growth in the past
do not guarantee high performance in the
future. On the contrary, it may signal that the
boom is over. After all, similar to the stock
market, the real estate industry has a cycle.
Once the fundamentals have changed, the
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trend will be reversed.
Although history often repeats itself and we
can expect ups and downs through the
cycles, there are things in life that,
unfortunately, do not work like that. Once they
are gone, they are gone forever.
There is no point regretting opportunities we
missed decades ago, and wish we had
bought properties at a certain time. Similarly,
it is unrealistic to say that property prices can
grow many times just like it had happened
before.
Remember what Jim Rogers said in his
book A Gift to My Children: A Fathers
Lessons for Life and Investing? Do not cling
to anything that will eventually cease to exist.
No matter how much time or energy or
money you invest in it, once something is
gone, it is gone forever.
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 SINGAPORE PROPERTY WEEKLY Issue 315
What happen when dreams become
nightmares?
A study conducted by The Edge
Property using URA caveat data shows that
there were 837 unprofitable non-landed
residential property transactions in 2016,
amounting to $236 million of loss. Owners of
properties in Sentosa Cove, the high-end
market, big penthouses and larger units
purchased near the peak of the market were
hit the hardest.
Sharon Lee, Knight Franks Head of Auction,
said that some owners who lost their jobs
have defaulted on their mortgages. Some
struggling business owners are trying hard to
hold onto their assets.
Many investors entered the market during the
property upturn between 2011 and 2013
before the introduction of the TDSR. When
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the market corrected, they were caught
unprepared. As Lee says, the properties on
mortgagee sale may have been vacant for a
prolonged time or the monthly rents were
unable to cover the mortgage payments.
The market is far from bottoming out. It is just
a matter of time before mortgagee sales
spread to properties bought after 2013, and
smaller-sized properties outside the central
region. Unemployment rates are going up.
Expatriates are leaving faster than they are
coming. The Fed has indicated three key
interest rate raise this year. Yet more new
projects are waiting for their turn to launch
this year.
Where can we find enough demand to catch
up with excess supply? Is demand ever going
to catch up with supply?
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 SINGAPORE PROPERTY WEEKLY Issue 315
Heres to the ones who dream
On the other hand, according to the property
agencies, there is still healthy interest and a
more sizeable-than-expected crowd at
recent new launches due to pent-up demand
for new projects in the neighborhood. Tiny
units are dissected into 2 or 3-bedrooms
selling at $1,350 to $1,700 psf. I dont think
anything is going to happen in the next one or
two years, so I decided to buy the unit, said
one buyer.
Do you know that Singapore is known as La
La Land? Sorry lah but this is the way we end
our sentences. No. Singaporeans are not
living in our dreams. We dream because we
still have hope. Every buyer who picks up a
property at the new launch believes that lady
luck will shine on him. City of Stars, are you
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shining just for me?
Heres to the ones who dream
Foolish as they may seem
Heres to the hearts that ache
Heres to the mess we make
She told me:
A bit of madness is key
To give us new colors to see
Who knows where it will lead us?
And thats why they need us.
(La La Land Audition/The Fools Who
Dream)
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 315

Non-Landed Residential Resale Property Transactions for the Week of May 29 June 2

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 743 1,528,000 2,057 99 9 THE COSMOPOLITAN 1,324 2,730,000 2,062 FH
1 THE SAIL @ MARINA BAY 861 1,560,000 1,812 99 9 THE VERMONT ON CAIRNHILL 1,442 2,900,000 2,011 FH
3 DOMAIN 21 560 880,000 1,572 99 9 THE COSMOPOLITAN 1,324 2,580,000 1,949 FH
3 DOMAIN 21 560 860,000 1,536 99 9 RIVERGATE 2,077 3,900,000 1,877 FH
3 RIVER PLACE 797 980,000 1,230 99 9 THE WHARF RESIDENCE 1,033 1,900,000 1,839 999
3 QUEENSWAY TOWER 1,432 1,280,000 894 FH 9 THE TRILLIUM 2,390 4,300,000 1,799 FH
4 THE FORESTA @ MOUNT FABER 721 1,428,000 1,980 FH 9 CASA CAIRNHILL 1,572 2,650,000 1,686 FH
4 CARIBBEAN AT KEPPEL BAY 1,335 2,100,000 1,573 99 9 WATERSCAPE AT CAVENAGH 581 978,888 1,684 FH
4 CARIBBEAN AT KEPPEL BAY 1,227 1,880,000 1,532 99 9 PARC EMILY 753 1,150,000 1,526 FH
4 SKYLINE RESIDENCES 3,681 5,380,000 1,461 FH 9 LA CRYSTAL 1,076 1,600,000 1,486 FH
4 THE INTERLACE 1,044 1,380,000 1,322 99 9 ROBERTSON 100 1,313 1,935,000 1,473 FH
4 THE BERTH BY THE COVE 1,905 2,250,000 1,181 99 9 PACIFIC MANSION 1,528 1,888,000 1,235 FH
4 THE PEARL @ MOUNT FABER 2,347 2,150,000 916 99 9 WILKIE STUDIO 2,002 2,125,000 1,061 FH
5 CARABELLE 1,130 1,220,000 1,079 956 10 ARDMORE THREE 1,776 7,246,420 4,080 FH
5 DOVER PARKVIEW 1,249 1,310,000 1,049 99 10 GRAMERCY PARK 2,013 5,556,600 2,761 FH
5 BOTANNIA 1,076 1,124,000 1,044 956 10 ONE BALMORAL 969 2,316,000 2,391 FH
5 NORMANTON PARK 1,270 1,088,000 857 102 10 LEEDON RESIDENCE 2,110 4,925,000 2,334 FH
5 PARK WEST 1,894 1,280,000 676 99 10 THE BOULEVARD RESIDENCE 2,034 4,600,000 2,261 FH
8 KERRISDALE 990 1,010,000 1,020 99 10 ONE BALMORAL 969 2,155,000 2,224 FH
8 JALAN BESAR PLAZA 1,593 1,300,000 816 FH 10 FOUR SEASONS PARK 2,260 4,750,888 2,102 FH
9 THE RITZ-CARLTON RESIDENCES SINGAPORE CAIRNHILL 3,574 12,859,252 3,598 FH 10 LEEDON RESIDENCE 4,704 9,800,000 2,083 FH
9 THE RITZ-CARLTON RESIDENCES SINGAPORE CAIRNHILL 2,831 9,115,820 3,220 FH 10 LEEDON RESIDENCE 2,648 5,350,000 2,020 FH
9 PATERSON COLLECTION 1,389 3,300,000 2,377 FH 10 LEEDON RESIDENCE 4,704 9,100,000 1,935 FH
9 CAIRNHILL RESIDENCES 1,173 2,500,000 2,131 FH 10 LEEDON RESIDENCE 4,704 8,750,000 1,860 FH

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 SINGAPORE PROPERTY WEEKLY Issue 315

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
10 PARVIS 1,701 2,880,000 1,693 FH 15 PEBBLE BAY 2,174 2,780,000 1,279 99
10 ZENITH 775 1,285,000 1,658 999 15 THE MAKENA 1,292 1,650,000 1,277 FH
10 VIZ AT HOLLAND 818 1,280,000 1,565 FH 15 COSTA RHU 990 1,250,000 1,262 99
10 SHANGHAI ONE 883 1,310,000 1,484 FH 15 THE SERENNO 1,044 1,300,000 1,245 FH
10 D'LEEDON 3,520 4,996,000 1,419 99 15 THE ATRIA AT MEYER 1,615 2,000,000 1,239 FH
10 DUCHESS RESIDENCES 2,756 3,800,000 1,379 999 15 FERNWOOD TOWERS 1,647 1,900,000 1,154 FH
10 D'LEEDON 3,810 3,253,000 854 99 15 PARK EAST 1,701 1,900,000 1,117 FH
11 26 NEWTON 474 1,110,000 2,344 FH 15 CASA MEYFORT 4,230 4,600,000 1,087 FH
11 TRILIGHT 1,087 1,925,000 1,771 FH 15 EBONY MANSIONS 1,302 1,330,000 1,021 FH
11 NEWTON ONE 1,808 3,200,000 1,770 FH 15 CALLIDORA VILLE 1,862 1,881,000 1,010 FH
11 D'CHATEAU @ SHELFORD 893 1,385,000 1,550 FH 15 LEGENDA AT JOO CHIAT 1,055 970,000 920 99
11 NINETEEN SHELFORD ROAD 926 1,245,000 1,345 FH 15 VILLA MARINA 1,130 1,035,000 916 99
11 THE AXIS 818 990,000 1,210 FH 15 VILLA MARINA 1,679 1,420,000 846 99
11 HILLCREST ARCADIA 1,421 1,150,000 809 99 15 THE GERANIUM 1,755 1,400,000 798 FH
12 REGENT RESIDENCES 409 670,000 1,638 FH 15 NEPTUNE COURT 1,636 1,240,000 758 99
12 THE INTERWEAVE 388 580,000 1,497 FH 16 BEDOK RESIDENCES 3,218 3,378,510 1,050 99
12 TRELLIS TOWERS 1,163 1,700,000 1,462 FH 16 EAST COAST RESIDENCES 1,668 1,700,000 1,019 FH
12 THE ARTE 1,873 2,150,000 1,148 FH 16 THE BAYSHORE 980 820,000 837 99
12 THE BELLEFORTE 1,023 1,150,000 1,125 FH 16 BAYSHORE PARK 1,292 1,015,000 786 99
12 BALESTIER PLAZA 1,023 1,000,000 978 FH 17 RIZ HAVEN 1,076 1,180,000 1,096 946
14 CENTRA HEIGHTS 431 650,000 1,510 FH 17 THE GALE 1,485 1,400,000 942 FH
14 E7 LODGE 1,335 1,400,000 1,049 FH 17 FERRARIA PARK CONDOMINIUM 958 790,000 825 FH
14 CENTRAL MEADOWS 969 875,000 903 FH 18 RIPPLE BAY 484 565,656 1,168 99
14 SIMSVILLE 1,238 1,100,000 889 99 18 LIVIA 915 810,000 885 99
14 CENTRO MANSIONS 1,195 950,000 795 FH 18 LIVIA 1,259 980,001 778 99
15 THE CAPE 850 1,600,000 1,882 FH 18 MELVILLE PARK 1,561 1,050,000 673 99
15 FULCRUM 829 1,451,000 1,751 FH 18 SAVANNAH CONDOPARK 1,367 915,000 669 99

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 SINGAPORE PROPERTY WEEKLY Issue 315
Postal Area Transacted Price
Project Name Tenure
District (sqft) Price ($) ($ psf)
18 OASIS @ ELIAS 1,496 970,000 648 99
18 ELIAS GREEN 1,518 830,000 547 99
19 ISUITES @ PALM 635 760,000 1,197 999
19 A TREASURE TROVE 1,044 1,070,000 1,025 99
19 THE LUXURIE 1,249 1,232,000 987 99
19 THE MINTON 1,841 1,660,000 902 99
19 KOVAN MELODY 1,442 1,243,000 862 99
19 SUNGLADE 1,367 1,156,000 846 99
19 COMPASS HEIGHTS 2,336 1,520,000 651 99
20 GOLDENHILL PARK CONDOMINIUM 1,313 1,768,000 1,346 FH
20 GOLDENHILL PARK CONDOMINIUM 1,313 1,700,000 1,295 FH
20 THOMSON VIEW CONDOMINIUM 2,024 1,710,000 845 99
21 MAPLE WOODS 915 1,240,000 1,355 FH
21 CAVENDISH PARK 958 1,050,000 1,096 99
21 SPRINGDALE CONDOMINIUM 926 980,000 1,059 999
21 CLEMENTI PARK 1,755 1,850,000 1,054 FH
21 SIGNATURE PARK 1,399 1,475,000 1,054 FH
21 SHERWOOD TOWER 1,518 1,010,000 665 99
22 THE LAKESHORE 1,152 1,230,000 1,068 99
23 HILLVIEW APARTMENTS 1,206 1,020,000 846 FH
23 MAYSPRINGS 1,292 846,000 655 99
25 PARC ROSEWOOD 431 488,000 1,133 99
26 BULLION PARK 807 805,000 997 FH
28 SELETAR PARK RESIDENCE 1,604 1,560,000 973 99
28 SELETAR SPRINGS CONDOMINIUM 980 765,000 781 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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