Issue 380

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 CONTENTS FROM THE

p2 Have We Learnt Our Lesson From the

EDITOR
Welcome to the 380th edition of the
Singapore Property Weekly.
Last Financial Crisis?
Hope you like it!
p10 Resale Property Transactions
Mr. Propwise
(March 19 – March 26)

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 SINGAPORE PROPERTY WEEKLY Issue 380

Have We Learnt Our Lesson From the Last Financial

Crisis?
By Property Soul (guest contributor) Are we heading for the next economic
disaster?

Rush in quick. Get out fast

Speaking to CNBC’s “Crisis on Wall Street:

The Week That Shook the World”
documentary, Warren Buffet commented that
another financial crisis is inevitable because
of human nature, jealously and greed.

“People start being interested in something

because it’s going up, not because they
More than ten years have passed since the understand it or anything else. But the guy
collapse of Lehman Brothers. Did the world next door, who they know is dumber than they
learn anything from the 2008 financial crisis? are, is getting rich and they aren’t.

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 SINGAPORE PROPERTY WEEKLY Issue 380
And their spouse is saying can’t you figure it
out, too? It is so contagious. So that’s a
permanent part of the system.”
Because of greed and fear of missing out,
Singapore bitcoin buyers crashed two bitcoin
ATM machines in December 2017. Two days
before they purchased the cryptocurrency,
Bitcoin prices peaked at USD19,340 on
December 6, 2017. (Read my blog post
“Lessons learned from the fall of bitcoin”.)
As I am writing this post, the price of Bitcoin is
USD6,446 – exactly three times lower than its
peak [Editor’s note: it is now USD4,154].
Analysts predict the price of Bitcoin will
continue to drop into 2019.
When an asset bubble is deflated, the people
can now see the emperor has no clothes on.
Where are the analysts who once claimed
that Bitcoin is Wall Street’s next big thing and
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the price will hit $400,000? It is the same
financial media with quotes from the same
group of “experts” then and now.
Who chased the price of bitcoins for fear of
missing the next big thing? Who couldn’t wait
to dump the cryptocurrency when prices
drop?
Who acquired land sites at record prices?
Who queued to buy new launch projects at
prices that set new highs in the district?
Who will dump their properties in the market
first the moment they sense the market slump
is coming?
Who lent generously to the housing and
construction industries? Who will suddenly
tighten borrowing and recall approved loans
to avoid non-performing loans and bad
debts?
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 SINGAPORE PROPERTY WEEKLY Issue 380
Those who rush in out of impulse, greed and
FOMO are often the ones who flee out of
panic, desperation and irrational fear.
The same stakeholders, developers,
agencies, banks, buyers and investors are
contributing to the boom and the gloom of the
property market.
We did nothing wrong
Warren Buffet told The Wall Street
Journal that there is an important lesson
learned from the 2008 financial crisis.
“Every company in the United States was a
domino, and those dominoes were placed
right next to each other … So when they
started toppling, everything was in line.”
When the value of inflated assets started to
fall, the house of cards collapsed.
The chain effect of Lehman Brothers’
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bankruptcy triggered a two-year global
financial crisis. A financial institution that was
perceived to be too big to fail wiped off almost
$10 trillion worth of global equities in one
month’s time.
“When the dust settled from the collapse, 5
trillion dollars in pension money, real estate
value, 401K, savings, and bonds had
disappeared. 8 million people lost their jobs. 6
million lost their homes. And that was just in
the USA.” – Big Short Movie
Warren Buffet said in the CNBC interview that
many Americans wondered what happened
during the subprime crisis.
“All they knew is they did nothing wrong and
their world was falling apart.”
Which investment banks were marketing
those toxic loans packaged into mortgage
bonds stamped with AAA ratings?
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 SINGAPORE PROPERTY WEEKLY Issue 380
Interestingly, none of the senior executives
behind these financial institutions were held
accountable. They got away with fat pays and
big bonuses, leaving six million Americans
homeless, their companies to face lawsuits
and (shareholders too) pay hundreds of
billions in fines.
It is not about seeing justice being served. It
is about getting other people to pay the price.
We can’t solve a big problem with no pain.
We can’t save the world with no sacrifice.
When somebody makes a mistake, someone
else is going to pay for it.
Every time when the top management make
a wrong decision and revenue tumbles, do
they resign collectively out of shame, or
announce an internal restructuring with mass
layoff?
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More than five years ago in September 2013,
at the press conference to announce the
selling of Nokia Mobile Phone to Microsoft,
Nokia’s then CEO Stephen Elop ended his
speech with tears in his eyes, “We didn’t do
anything wrong, but somehow, we lost.”
The Nokia employees did nothing wrong. But
somehow half of them lost their jobs. Anyway,
we are sure that Elop could swallow his
sorrow and recover from this setback much
easier with a €19 million (USD22 million)
package.
Let them pay the price
During the good old days of quantitative
easing, there is an infinite supply of cash at
ridiculously low interest rates. With cheap
money, developing countries can grow their
economy;
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 SINGAPORE PROPERTY WEEKLY Issue 380
investors can buy assets worldwide; big
corporations can acquire small companies;
and entrepreneurs can build new start-ups.
But interest rates have risen seven times
since December 2015. Borrowers start to feel
the pain when there are four hikes in a year.
Strengthening of the US dollar also means
higher borrowing cost for debt-ridden
countries and companies.
Economic turmoil often starts from emerging
countries. It doesn’t take long for investors to
sell off in these high-risk-high-return markets
and retreat to the safe haven of US dollars.
On the other hand, US has always positioned
itself as the world power by being a big
brother to offer generous financial assistance
to emerging countries. But not anymore. With
Trump’s America First policy, US is no longer
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giving away any trading benefits and tax
exemptions to them.
For the BRIC countries, the economy of
Russia, Brazil and India is already in bad
shape, leaving only China to fight a lonely
(trade) war.
Venezuela used to be one of the richest
countries with the world’s largest oil reserves
(and most winners in beauty pageants). With
falling oil prices, the country’s budget was
gradually under deficit.
Without support from the US, Venezuela
turned to China to borrow another USD5
billion to be repaid in oil or cash.
To save a sluggish economy, the Venezuela
government continues to print money until
there is serious hyperinflation in the South
America country.
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 SINGAPORE PROPERTY WEEKLY Issue 380
The government keeps issuing new
banknotes in higher amount. Banknotes with
highest value has gone up to 100,000. Even
so, the exchange rate of this banknote is
under US one cent in the black market.
Anything that costs one dollar at the
beginning of the year may go up to ten
thousand and one dollars at the end of the
year.
If shoppers in a department store don’t take
the merchandise to the cashier right away,
the price can be doubled in two to three
hours’ times.
Venezuelans are now resorted to bartering to
get the food and groceries they need. There
is serious shortage of food and children are
starving. Women who are teachers and
doctors in their country are now working as
prostitutes in Colombia to keep their families
fed.
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Who is accountable for all these mishaps?
When the government has made a mistake,
the people are left to foot the bill.
When somebody has messed it up,
somebody else has to clean it up.
Have we learned our lesson?
Are banks really safer compared with ten
years ago? Are they under stricter regulations
since the last crisis? Can we trust our banks
with our money?
The truth is: Banks in Europe haven’t quite
recovered from the collapse of Lehman
Brothers yet. The number of European bank
branches is down 21 percent from ten years
ago.
Under higher scrutiny in other continents,
Europe also becomes a new paradise for
money-launderers.
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 SINGAPORE PROPERTY WEEKLY Issue 380

In September 2018 the largest Dutch bank Investors have placed bigger bets in high-risk
ING was slapped with a €775 million markets.
(USD900 million) fine after admitting to
Global debt has jumped 40 percent since the
money laundering. Denmark’s largest bank
2008 financial crisis and reached a record
Danske Bank is under investigation for money
high of $247 trillion in July 2018. In the
laundering with inflow from Russia and other
second quarter of 2018, US household debt
countries. Brussels is under pressure to join
hit an all-time high of $13.2 trillion – half a
the crackdown on money laundering and
trillion higher than its previous peak in 2008.
terrorist financing in the country.
The Monetary Authority of Singapore has
In case anything happens, the banks believe
warned local banks to be careful and stress
that their government will bail them out.
test when underwriting. Property cooling
Because they are too big to fail. No one want
measures with borrowing restrictions, lower
to see the collapse of cards under domino
loan-to-value and higher entry cost are in
effect.
place to avoid overleveraging and
But the financial sector is more complicated overheating the property market.
than ten years back: Banks have grown larger
But buyers and investors continue to drive up
in size. Governments have printed more
prices. Banks argue that it is justified to
money. Buyers have created more asset
approve big housing and construction loans in
bubbles around the world with cheap money.
tandem with rise in property prices.

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 SINGAPORE PROPERTY WEEKLY Issue 380

With high liquidity and high margins, what

better ways can banks achieve higher
business targets and secure bigger market
shares than giving out more loans in a small
and competitive market?

We haven’t learned much from the last

financial crisis. We haven’t done much to
prevent the resurgence of an economic
catastrophe. Are we waiting for another
financial system meltdown and a full-blown
recession before we will investigate our faults
seriously?

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 380

Non-Landed Residential Resale Property Transactions for the Week of Mar 19 – Mar 26

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
2 ALTEZ 603 1,280,000 2,123 99 9 SOPHIA RESIDENCE 1,432 2,400,000 1,676 FH
3 QUEENS 915 1,238,000 1,353 99 9 MACKENZIE 88 807 1,200,000 1,486 FH
3 TANGLIN VIEW 1,141 1,530,000 1,341 99 9 HORIZON TOWERS 2,314 2,950,000 1,275 99
3 QUEENS 1,184 1,530,000 1,292 99 10 8 NAPIER 2,013 6,200,000 3,080 FH
3 HARVEST MANSIONS 947 1,140,000 1,204 99 10 ROBIN SUITES 463 1,050,000 2,269 FH
4 CORALS AT KEPPEL BAY 1,475 2,800,000 1,899 99 10 ZENITH 560 1,015,000 1,813 999
4 MARINA COLLECTION 3,412 6,300,000 1,846 99 10 STELLAR RV 538 950,000 1,765 FH
4 THE OCEANFRONT @ SENTOSA COVE 1,711 2,800,000 1,636 99 10 SOMMERVILLE PARK 624 1,100,000 1,762 FH
4 THE OCEANFRONT @ SENTOSA COVE 1,905 2,476,500 1,300 99 10 THE DRAYCOTT 2,637 4,450,000 1,687 FH
4 THE PEARL @ MOUNT FABER 1,163 1,350,000 1,161 99 10 THE TESSARINA 1,313 2,159,000 1,644 FH
4 THE PEARL @ MOUNT FABER 1,389 1,570,000 1,131 99 10 WARNER COURT 1,195 1,960,000 1,640 FH
5 ONE-NORTH RESIDENCES 570 932,000 1,634 99 10 ONE ROBIN 1,948 3,150,000 1,617 FH
5 DOVER PARKVIEW 1,249 1,475,000 1,181 99 10 SPRING GROVE 1,012 1,610,000 1,591 99
5 CLEMENTIWOODS CONDOMINIUM 1,055 1,215,000 1,152 99 10 SPRING GROVE 1,389 2,200,000 1,584 99
5 THE TRILINQ 3,100 3,338,000 1,077 99 11 TRILIGHT 1,087 2,060,000 1,895 FH
5 BLUE HORIZON 1,216 1,295,040 1,065 99 11 PAVILION 11 958 1,730,000 1,806 FH
7 SOUTH BEACH RESIDENCES 1,593 5,348,888 3,358 99 11 RESIDENCES @ EVELYN 1,033 1,860,000 1,800 FH
8 KERRISDALE 1,270 1,328,000 1,046 99 11 TREVOSE PARK 1,830 2,780,000 1,519 FH
9 8 SAINT THOMAS 506 1,640,000 3,242 FH 11 THE AXIS 818 1,200,000 1,467 FH
9 HILLTOPS 829 2,678,000 3,231 FH 12 VISTA RESIDENCES 1,152 1,820,000 1,580 FH
9 PATERSON SUITES 2,185 5,000,000 2,288 FH 12 DE ROYALE 1,281 1,888,888 1,475 FH
9 THE TRILLIUM 2,217 5,000,000 2,255 FH 12 TREVISTA 1,733 2,338,000 1,349 99
9 THE PIER AT ROBERTSON 732 1,320,000 1,803 FH 12 THE MARQUE @ IRRAWADDY 883 1,185,000 1,343 FH
9 ASPEN HEIGHTS 1,119 1,900,000 1,697 999 12 AVA TOWERS 1,227 1,348,000 1,099 FH
9 CASA CAIRNHILL 1,572 2,650,000 1,686 FH 12 NADIA MANSIONS 4,747 3,880,000 817 FH

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 SINGAPORE PROPERTY WEEKLY Issue 380

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
13 SENNETT RESIDENCE 818 1,205,000 1,473 99 19 THE MINTON 1,216 1,370,000 1,126 99
14 WATERBANK AT DAKOTA 1,141 1,908,000 1,672 99 19 THE MINTON 1,658 1,730,000 1,044 99
14 THE WATER EDGE 388 555,000 1,432 FH 19 CHILTERN PARK 1,345 1,380,000 1,026 99
14 EUHABITAT 1,582 1,780,000 1,125 99 19 CHILTERN PARK 1,270 1,282,000 1,009 99
15 AMBER RESIDENCES 2,217 3,900,000 1,759 FH 19 PARC VERA 1,141 1,150,000 1,008 99
15 SANCTUARY GREEN 1,356 1,700,000 1,253 99 19 PARC VERA 872 840,000 963 99
15 VILLA MARINA 1,636 1,505,000 920 99 19 CHUAN PARK 1,851 1,590,000 859 99
15 LAGOON VIEW 1,647 1,450,000 880 99 19 EVERGREEN PARK 1,012 760,000 751 99
15 LAGOON VIEW 1,647 1,420,000 862 99 20 CENTRO RESIDENCES 926 1,360,000 1,469 99
15 VENTURA VIEW 1,916 1,580,000 825 FH 20 FLAME TREE PARK 1,862 2,390,000 1,283 FH
16 BALCON EAST 829 1,135,000 1,369 FH 20 CLOVER BY THE PARK 1,765 2,011,800 1,140 99
16 OPTIMA @ TANAH MERAH 861 975,000 1,132 99 20 GRANDEUR 8 1,259 1,330,000 1,056 99
16 WATERFRONT ISLE 980 1,080,000 1,103 99 21 THE CASCADIA 1,216 2,188,000 1,799 FH
17 LOYANG VALLEY 1,873 1,330,000 710 99 21 THE CASCADIA 1,249 2,160,000 1,730 FH
18 Q BAY RESIDENCES 1,119 1,270,000 1,134 99 21 THE CREEK @ BUKIT 463 785,000 1,696 FH
18 DOUBLE BAY RESIDENCES 1,259 1,399,999 1,112 99 21 THE STERLING 1,539 2,520,000 1,637 FH
18 Q BAY RESIDENCES 1,163 1,280,000 1,101 99 21 MAPLE WOODS 1,324 2,150,000 1,624 FH
18 Q BAY RESIDENCES 797 870,000 1,092 99 21 MAPLE WOODS 850 1,380,000 1,623 FH
18 RIPPLE BAY 764 777,000 1,017 99 21 SUMMERHILL 1,561 2,030,000 1,301 FH
18 THE PALETTE 1,055 1,070,000 1,014 99 21 ASTOR GREEN 1,528 1,880,000 1,230 99
18 SEASTRAND 883 850,000 963 99 21 HILLVIEW GREEN 1,528 1,580,000 1,034 999
18 OASIS @ ELIAS 1,475 1,305,000 885 99 21 PINE GROVE 1,938 1,963,000 1,013 99
18 LIVIA 1,539 1,260,000 819 99 21 HIGH OAK CONDOMINIUM 1,259 1,230,000 977 99
19 JADE RESIDENCES 732 1,245,000 1,701 FH 21 BEAUTY WORLD CENTRE 1,873 1,500,000 801 99
19 CASA CAMBIO 657 980,000 1,493 FH 21 BEAUTY WORLD CENTRE 1,873 1,500,000 801 99
19 PARC CENTROS 764 955,000 1,250 99 22 LAKEVILLE 775 1,140,000 1,471 99
19 KOVAN RESIDENCES 1,259 1,500,000 1,191 99 22 THE CENTRIS 872 1,035,000 1,187 99
19 A TREASURE TROVE 1,044 1,236,888 1,185 99 22 THE LAKESHORE 872 920,000 1,055 99

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 SINGAPORE PROPERTY WEEKLY Issue 380

Postal Area Transacted Price

Project Name Tenure
District (sqft) Price ($) ($ psf)
22 IVORY HEIGHTS 1,668 1,530,000 917 100
22 THE MAYFAIR 1,227 1,102,000 898 99
22 THE MAYFAIR 1,227 1,080,000 880 99
23 NATURA@HILLVIEW 635 860,000 1,354 FH
23 ECO SANCTUARY 980 1,180,000 1,205 99
23 GLENDALE PARK 1,270 1,370,000 1,079 FH
23 MERAWOODS 1,507 1,350,000 896 999
23 GUILIN VIEW 1,259 1,090,000 865 99
23 REGENT GROVE 926 750,000 810 99
23 PARKVIEW APARTMENTS 1,119 840,000 750 99
23 REGENT GROVE 1,195 838,000 701 99
25 WOODGROVE CONDOMINIUM 1,184 825,000 697 99
26 MEADOWS @ PEIRCE 969 1,110,000 1,146 FH
27 CANBERRA RESIDENCES 1,324 1,050,000 793 99
27 ORCHID PARK CONDOMINIUM 1,141 850,000 745 99
27 YISHUN EMERALD 2,045 1,380,000 675 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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