Issue 316

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

 CONTENTS FROM THE

p2 Buying a New Executive Condo vs. a Resale

EDITOR
Welcome to the 316th edition of the
Singapore Property Weekly.
Condo A Case Study
Hope you like it!
p9 Resale Property Transactions
Mr. Propwise
(June 5 June 9)

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 SINGAPORE PROPERTY WEEKLY Issue 316

Buying a New Executive Condo vs. a Resale

Condo A Case Study
ByPropertyNet.SG (guest contributor)

Many people think Executive

Condominiums(ECs) are a good buy. Even
Minister Khaw Boon Wan likened the EC
scheme to offering buyers an upmarket Lexus
ata much lower price of a Toyota Corolla. But
are ECs really such a good deal?

With that question in mind and with

permission from our client, Rachel, we are
sharing with you the analytical process we
used in assessing if an Executive
Condominium was suitable for her, and how
we plan to help her achieve her goals of
moving into a bigger space and owning a
second property.

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 SINGAPORE PROPERTY WEEKLY Issue 316
We hope there will be a few good pointers in
this article you can use to assess if Executive
Condominiumsare suitable for you.
Background of the Buyer
Rachel currently owns a resale HDB 4-
bedroom flat purchased back in 2001 with a
CPF grant.
She is looking to move into a bigger home
(i.e. more rooms) for her growing family within
a year. With her HDB flat paid off, she is
deciding if she should purchase a private
condominium, move into it and rent out her
HDB flat, or if she should simply buy an
Executive Condominium. She intends to stay
in the northern part of Singapore as she
wants to minimize the disruption to her kids
studies.
Back to Contents
Financially, she is able to purchase a property
worth around SGD 1,000,000 and hopes to
own at least two properties before she retires.
Like most buyers, she hopes to have a
decent gain for this property purchase in five
years time. Lets start by figuring out how
much a Resale Private Condo and a New
Executive Condo in the Woodlands would
cost.
Estimated Price of a Resale Private Condo
in Woodlands
The average PSF of a private condominium
(resale) and executive condominium (resale)
(size around 1,000 sqft) that obtained its
T.O.P less than 10 years ago around
Woodlands is around SGD 966 PSF.
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 SINGAPORE PROPERTY WEEKLY Issue 316

Next, as she would be holding onto her HDB,

she is liable to pay an ABSD of 7%, bringing
up the cost of her property purchase to SGD
1,101,839. For discussion purposes, we will
round down the cost of purchase of the
private condominium to SGD 1,100,000.

Estimated Price of a New Executive Condo

in Woodlands

Based on the pricing of a nearby Executive

Condominium, Bellewoods, she can get a
1,066 sqft 3-Bedroom unit at SGD 918,000
(SGD 861 sqft). For discussion purposes, we
Note: The above table is based on the last 24 will round this up to SGD 920,000. (Also, at
months transaction. Source: URA, the time of writing, there is only one 3-
PropertyNet.SG Research. FYI: La Casa is bedroom 1,066 sqft unit available at
an Executive Condominium. Bellewoods).Luckily for her, a second timer
buying Bellewoods need not pay the resale
Based on the statistics above, a 3 bedroom of
levy.
size 1,066 sqft would cost around SGD
1,029,756.

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 SINGAPORE PROPERTY WEEKLY Issue 316
Lets see what happens in 5 years time
based on the two scenarios: (1) Buy Resale
Private Condo and Rent-out HDB and (2) Buy
Executive Condo.
Scenario #1 Buy Resale Private Condo
and RentOut the HDB Flat
Rental income from an HDB 4-Room flat
Lets say Rachel decided to buy a private
condominium (resale) and rent out her HDB
4-room flat. Over the next five years, she
would collect close to SGD 108,000 of gross
rental income. Taking into consideration the
agents fee, repair costs, tax, and periods with
no tenants, she would collect about SGD
90,000. Not bad for a property with a market
value of around SGD 360,000 (the gross
rental yield will be around 6%).
Back to Contents
Value of HDB 4 Room flat
However, based on research done by
the Institute of Policy Studies, HDB flats,
being 99-year leasehold assets, will
depreciate in value as the lease reaches
expiration. Further, in a January 2014
exchange in Parliament, former National
Development Minister Khaw Boon Wan said,
Like all leasehold properties, HDB flats will
revert to HDB, the landowner, upon expiry of
their leases. And there is no guarantee you
will be offered SERS or a lease extension.
Given Rachels HDB flats lease
commencement is in the year 1985, its
remaining lease will be 62 years after the next
five years. Thus it is likely that the value of
her HDB 4-room flat would depreciate rather
than appreciate.
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 SINGAPORE PROPERTY WEEKLY Issue 316
Value of Resale Private Condo
We do not have a crystal ball to determine if
the value of the private condominium will be
heading upwards or downwards in the next
five years. So, lets skip this for now and
move on to the scenario that Rachel
purchase an Executive Condominium instead.
Scenario #2 Purchase an Executive
Condominium
By buying an Executive Condominium,
Rachel would make a potential paper gain
of approximately SGD 180,000. This paper
gain is the difference between the cost of
private condo (resale) (SGD 1,100,000) and
Executive Condominium (SGD 920,000). We
will discuss this paper gain in detail in the
following section.
Back to Contents
Comparing the two scenarios
By purchasing an Executive Condominium,
Rachel would be sitting on an additional gain
of approximately SGD 90,000 (the SGD
180,000 paper gain net of the estimated
rental income from Scenario #1). To arrive at
this paper profit, we have assumed that the
value of the Executive Condominium will be
on par with the value of the private
condominium in five years time. This is based
on studies by Orangetee that shows the price
gap between a private condominium and
executive condominium is approximately 9%
after MOP and 5% after privatization, and this
price gap is due to a newer development
typically commanding a better price.
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 SINGAPORE PROPERTY WEEKLY Issue 316
The value of the newly purchased Executive
Condominium could be further boosted by the
completion of the upcoming Woodlands
South station. Based on the study of
properties near Circle Line by three
researchers from NUS, it was discovered that
the value of non-landed private property
increases by approximately 6.3 percent by
the opening of the new rail station that is
within 600 meters.
Moving ahead
Apart from sitting on a comfortable gain, by
purchasing an Executive Condominium, after
fulfilling her MOP period, Rachel would be
able to unlock the value of her Executive
Condominium through an equity term loan at
a desired time to purchase her second private
property.
Back to Contents
If she has taken the option of buying a private
property and renting out her HDB, she may
face difficulties in cashing out her ageing
HDB. So, by buying the executive
condominium, it creates a better opportunity
for Rachel to achieve her dream of owning
two private properties a few years down the
road.
Factors to Consider
We do hope that the above case study
provides you with an excellent overview of the
thought process you should go through
before making your decision to purchase your
next property. You should not make your
purchasing decision based solely on the
above case study as each persons
circumstances are unique (be it family
circumstances, financial situation, future
plans, etc.).
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 SINGAPORE PROPERTY WEEKLY Issue 316

Nonetheless, here are some of the factors to the official developer sales team. They are
you may consider in your also a believer in empowering property
assessment/planning: buyers through education by sharing of
property guides and tips to help them make a
The purpose of your purchase
well-informed decision.
Your financial position now and
(expectation) a few years down the road

Value of your existing property now and

(expectation) a few years down the road

Your plans in the next 5 to 10 years

Location of the property you are looking

to purchase.

Article by guest contributor,

PropertyNet.SG. PropertyNet.SG is your
trusted network to Singapore Real Estate,
providing you with unrestricted access to
Project Information like Price, Availability,
Floor Plans, etc. and connecting you directly

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 SINGAPORE PROPERTY WEEKLY Issue 316

Non-Landed Residential Resale Property Transactions for the Week of June 5 June 9

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
1 THE SAIL @ MARINA BAY 861 1,830,000 2,125 99 9 SCOTTS HIGHPARK 4,209 6,820,000 1,620 FH
2 ALTEZ 861 1,500,000 1,742 99 9 URBANA 2,314 3,520,000 1,521 FH
2 ICON 936 1,600,000 1,709 99 9 ASPEN HEIGHTS 1,324 2,000,000 1,511 999
3 QUEENS 1,184 1,445,000 1,220 99 9 EURO-ASIA COURT 1,668 2,280,000 1,367 FH
4 THE OCEANFRONT @ SENTOSA COVE 2,788 4,480,000 1,607 99 9 CAIRNHILL ASTORIA 3,035 4,000,000 1,318 FH
4 REFLECTIONS AT KEPPEL BAY 1,012 1,430,000 1,413 99 10 ARDMORE THREE 1,776 7,317,055 4,120 FH
4 CARIBBEAN AT KEPPEL BAY 1,216 1,700,000 1,398 99 10 ONE BALMORAL 1,410 3,236,000 2,295 FH
4 THE INTERLACE 3,714 4,200,000 1,131 99 10 ONE BALMORAL 1,410 3,139,000 2,226 FH
5 ONE-NORTH RESIDENCES 592 870,000 1,470 99 10 CYAN 1,130 2,269,000 2,008 FH
5 DOVER PARKVIEW 936 1,000,000 1,068 99 10 POLLEN & BLEU 1,163 2,149,650 1,849 99
5 THE SPECTRUM 1,281 1,280,000 999 FH 10 CYAN 657 1,200,000 1,828 FH
5 HERITAGE VIEW 1,324 1,280,000 967 99 10 BELMOND GREEN 1,302 2,300,000 1,766 FH
5 PARK WEST 1,249 976,000 782 99 10 LEEDON RESIDENCE 3,746 6,300,000 1,682 FH
8 MERA SPRINGS 1,044 1,420,000 1,360 FH 10 ORANGE GROVE RESIDENCES 2,002 3,333,000 1,665 FH
8 CITY SQUARE RESIDENCES 1,518 2,050,000 1,351 FH 10 VIZ AT HOLLAND 818 1,270,000 1,552 FH
8 MERA SPRINGS 1,227 1,580,000 1,288 FH 10 THE ASTON 667 980,000 1,468 FH
8 MERA SPRINGS 1,292 1,620,000 1,254 FH 10 AVALON 4,123 5,550,000 1,346 FH
9 TWENTYONE ANGULLIA PARK 3,154 10,500,000 3,329 FH 10 MUTIARA CREST 1,324 1,770,000 1,337 FH
9 SCOTTS SQUARE 635 1,905,000 3,000 FH 10 JERVOIS REGENCY 1,173 1,550,000 1,321 FH
9 RIVERGATE 1,055 2,530,000 2,398 FH 10 DUCHESS CREST 1,367 1,750,000 1,280 99
9 LEONIE HILL RESIDENCES 1,389 2,680,000 1,930 FH 10 QUINTERRA 1,679 1,900,000 1,132 99
9 THE LIGHT @ CAIRNHILL 1,658 3,100,000 1,870 FH 11 L'VIV 614 1,240,000 2,021 FH
9 ST THOMAS SUITES 1,819 3,250,000 1,787 FH 11 SKY@ELEVEN 2,820 4,570,000 1,620 FH
9 CITYVISTA RESIDENCES 2,809 4,728,000 1,683 FH 11 RESIDENCES @ EVELYN 2,250 3,600,000 1,600 FH

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 SINGAPORE PROPERTY WEEKLY Issue 316

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
11 MIRO 1,249 1,960,000 1,570 FH 15 VILLA MARINA 1,152 1,030,000 894 99
11 MEDGE 861 1,180,000 1,370 FH 15 LAGUNA PARK 1,615 1,428,000 884 99
11 WATTEN ESTATE CONDOMINIUM 2,465 2,650,000 1,075 FH 15 TAIPAN GRAND 2,400 1,820,000 758 FH
12 THE MEZZO 840 1,038,000 1,236 FH 15 HAIG APARTMENTS 2,034 1,450,000 713 FH
12 KEMAMAN POINT 861 918,000 1,066 FH 16 COSTA DEL SOL 1,475 1,790,000 1,214 99
12 THE ABERDEEN 1,302 1,325,000 1,017 FH 16 EAST COAST RESIDENCES 1,023 1,180,000 1,154 FH
14 SINGA HILLS 667 947,720 1,420 FH 16 BAYSHORE PARK 1,173 1,000,000 852 99
14 SINGA HILLS 807 1,106,845 1,371 FH 16 THE CLEARWATER 1,206 990,000 821 99
14 SILVERSCAPE 560 682,500 1,219 FH 16 BAYSHORE PARK 936 750,000 801 99
14 VACANZA @ EAST 807 878,000 1,088 FH 16 CASCADALE 1,561 1,220,000 782 FH
14 THE SUNNY SPRING 1,044 1,028,000 985 FH 16 KEW GREEN 2,939 1,969,000 670 99
14 THE ALCOVE 1,378 1,057,500 768 99 17 THE GALE 1,464 1,280,000 874 FH
15 8M RESIDENCES 646 1,314,000 2,035 FH 17 FERRARIA PARK CONDOMINIUM 1,722 1,190,000 691 FH
15 FULCRUM 635 1,274,000 2,006 FH 17 SANDY PALM 1,399 930,000 665 99
15 AALTO 1,528 2,559,000 1,674 FH 18 THE PALETTE 1,066 985,000 924 99
15 THE SEA VIEW 1,647 2,678,000 1,626 FH 18 SEASTRAND 1,195 1,020,000 854 99
15 SUITES @ EASTCOAST 377 570,000 1,513 FH 18 SAVANNAH CONDOPARK 1,238 960,000 776 99
15 THE SHORE RESIDENCES 592 870,000 1,470 103 18 LIVIA 1,345 995,000 740 99
15 EASTERN LAGOON 893 1,288,000 1,442 FH 18 MELVILLE PARK 1,453 840,000 578 99
15 CASA MEYFORT 1,765 2,540,000 1,439 FH 19 THE TEMBUSU 1,701 2,418,000 1,422 FH
15 HERITAGE EAST 441 625,000 1,416 FH 19 AMARANDA GARDENS 1,163 1,640,000 1,411 FH
15 38 I SUITES 667 940,000 1,409 FH 19 VIBES @ KOVAN 441 550,000 1,246 FH
15 PEBBLE BAY 2,626 3,680,000 1,401 99 19 COMPASS HEIGHTS 667 700,000 1,049 99
15 VIBES @ EAST COAST 646 848,000 1,313 FH 19 KOVAN MELODY 1,421 1,480,000 1,042 99
15 NATURALIS 807 1,036,000 1,283 FH 19 RIVERSAILS 1,109 1,070,000 965 99
15 COTE D'AZUR 840 1,000,000 1,191 99 19 PARC VERA 1,141 1,070,000 938 99
15 SANCTUARY GREEN 786 920,000 1,171 99 19 AFFLUENCE COURT 1,259 1,050,000 834 FH

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 SINGAPORE PROPERTY WEEKLY Issue 316

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
19 RIO VISTA 1,249 918,000 735 99 25 PARC ROSEWOOD 431 540,000 1,254 99
20 CLOVER BY THE PARK 1,292 1,565,000 1,212 99 26 BULLION PARK 807 805,000 997 FH
20 BOONVIEW 1,518 1,738,000 1,145 FH 27 THE MILTONIA RESIDENCES 2,077 1,688,000 813 99
20 COUNTRY GRANDEUR 1,442 1,530,000 1,061 FH 28 H2O RESIDENCES 1,389 1,350,000 972 99
20 THE WINDSOR 1,830 1,900,000 1,038 FH 28 GRANDE VISTA 2,024 1,570,000 776 999
20 LAKEVIEW ESTATE 1,615 1,280,000 793 99 28 SELETAR SPRINGS CONDOMINIUM 2,110 1,350,000 640 99
20 LAKEVIEW ESTATE 1,615 1,250,000 774 99
20 LAKEVIEW ESTATE 1,615 1,225,000 759 99
20 FAR HORIZON GARDENS 1,948 1,380,000 708 99 NOTE: This data only covers non-landed residential resale property
transactions with caveats lodged with the Singapore Land Authority.
20 FAR HORIZON GARDENS 1,948 1,350,000 693 99
Typically, caveats are lodged at least 2-3 weeks after a purchaser
21 FLORIDIAN 936 1,592,000 1,700 FH signs an OTP, hence the lagged nature of the data.
21 THE CASCADIA 883 1,280,000 1,450 FH
21 MAPLE WOODS 1,485 2,050,000 1,380 FH
21 THE HILLFORD 398 495,000 1,243 60
21 SOUTHAVEN II 1,442 1,415,000 981 999
21 HIGH OAK CONDOMINIUM 1,227 950,000 774 99
22 THE CENTRIS 1,238 1,400,000 1,131 99
22 LAKEHOLMZ 1,238 1,058,000 855 99
22 LAKEPOINT CONDOMINIUM 915 765,000 836 99
23 THE DAIRY FARM 1,281 1,200,000 937 FH
23 HILLINGTON GREEN 1,776 1,600,000 901 999
23 CASHEW PARK CONDOMINIUM 1,367 1,200,000 878 999
23 HILLTOP GROVE 1,647 1,152,000 699 99

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