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CONTENTS
p2 4 Painful Lessons From a Loss-Making Property
p6 Singapore Property News This Week
p11 Resale Property Transactions
(July 25 July 31)
Welcome to the 64th edition
of the Singapore Property
Weekly. Hope you like it!
Mr. Propwise
FROM THE
EDITOR
NOTICE:
Please note that Propwise.sg is a
property of Aktive Group Pte. Ltd.,
which is not associated or
affiliated in any way with
Ascendant Assets Pte. Ltd. or
Getty Goh, who is a guest
contributor.
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4 Painful Lessons From a Loss-Making Property
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By guest contributor 2ycapital
My first foray into the property market was via
the most common route the HDB flat. There
werent any HDB grants during my time and
we couldnt afford one near our parents as we
had only started working. We couldnt afford
an Executive Condominium either, as my
starting pay was only $1,850 per month. At the
time, we had only three choices: Woodlands,
Jurong or Sengkang. We selected Woodlands,
the cheapest location in the north zone as
Sengkang was much more expensive.
The problem with picking Woodlands was thatit was very far from our parents place and
once the baby came, we had to move closer
to them. In the end, we hardly stayed in the
flat.
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The problem was that under HDB rules, we
could buy any property within five years and
could not lease out our flat either. The rules
were extremely strict. In the end, we kept it
empty for almost five years. And to top up our
stupidity, we spent $40,000 on renovations.
The graph above shows you the points where
we bought and sold our flat. We bought
exactly at the peak and sold at the bottom.
What perfect timing! We bought the HDB
executive flat for $380,000, and adding on the
$40,000 we spent on renovations, it cost us a
total of $420,000. We hardly stayed there.
You can see the market was in the doldrums
from 2001 to 2005.
Lesson 1 - Buy a property only if you
intend to stay in it or to rent it outWe couldnt stay in it due to the baby and we
couldnt rent it out due to the rules. It was
basically a white elephant. We could have
secretly rented it out but it was illegal to do
so. Having said that, if you own an HDB flat
today and are eligible to rent it out, my advice
is that you keep the goose that lays the
golden egg, unless the offer is too compelling
and you have better use for the proceeds.
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The yield from an HDB flat is one of the
highest you can find.
Lesson 2 Dont buy a property that
comes with so many restrictionsThe second lesson I learnt was that I should
buy a property with fewer restrictions. I could
not buy another property or sell my flat within
five years. The restrictions were imposed to
ensure that I did not abuse the market
subsidy I supposedly received when I boughtthe HDB executive flat.
Lesson 3 Dont be greedy when buying
an HDB flat
It is funny to see peoples reactions when I
tell them I lost money from buying an HDBflat. Most do not believe it. I was greedy and I
thought to myself, HDB sure can make
money if you buy directly from them. I could
not have been more wrong. I bought the
biggest flat available to me instead of the four
or five room flats, and the executive flat
received the lowest marketsubsidy from the
government.
After five years, I decided to sell my flat at a
loss and move on, but there were many
unsold units at my block even after five years.
At the time when I was selling my flat, the
HDB was selling the unsold units in my block
for between $220 thousand to $280thousand. It took me more than 10 months to
finally find a buyer, who was a PR family that
offered me $295 thousand for my HDB
executive flat.
The real joke was HDB writing a letter to me
wanting an explanation why I sold my flat for
$295 thousand when the valuation was $340
thousand. I replied that I would love to sell it
to them for $340 thousand if they were willing
to buy it.
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(As a side note, my brother-in-law bought a
four room flat in Sengkang and after five
years, sold it for a good profit.)
Lesson 4 - Cut your losses and move on
By 2005, I had lost enough money from the
stock market to know how to cut loss and
learn about market cycles. I wanted to free up
my CPF to buy properties at better locations
and catch the next property cycle. The factthat I didnt even stay there and couldnt rent
it out provided the catalyst for me to do
something about it.
As you can see, my first foray into the
property market was a painful one. I lost at
least $100 thousand including the cost ofrenovations. It was painful lesson which I will
never forget, but I will treat the $100
thousand as an expensive school fee. There
are no better schools to teach you about
reality.
By guest contributor 2ycapital, a CFA and
CPA who blogs about his Singapore property
experiences at2Y Real Estate Fund.
http://2ycapital.blogspot.com/http://www.moneymatters.sg/http://2ycapital.blogspot.com/http://2ycapital.blogspot.com/http://2ycapital.blogspot.com/http://2ycapital.blogspot.com/http://2ycapital.blogspot.com/http://2ycapital.blogspot.com/http://2ycapital.blogspot.com/http://2ycapital.blogspot.com/ -
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Singapore Property This Week
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Residential
Khaw cautions against buying beyond
means
Minister for National Development Khaw
Boon Wan advises against buying homes
against financial means and taking up loans
with 50-year loan terms. He also noted thatfirst-timers are more successful in their BTO
applications for flats in non-mature estates
and that second-timers can also rely on the
government for help, adding that he would be
focusing on second-timers and improving
their chances on getting new flats.
(Source: Business Times)
20,000 new flats to be launched in 2013
HDB will be building at least 20,000 new flats
in 2013, in addition to the 8,000 new flats and
3,000 balance flats that will be launched by
the end of 2012. First-timer application rates
for the July BTO launch was similar that of
Mays at 1.7, while the second-timer
application rate has increased from 9.5 to
11.4. Since the first-timer application rates
remained below 2.0, it meant that almost all
first-timers will get the chance to select a flat
when they apply, especially in non-mature
estates. 11,634 applications have been
submitted for the July BTO launch, including
studio apartments.
(Source: Business Times)
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99-year-leasehold Bright Hill Drive private
residential plot attract top bid of $291.5
million
The top bid of $291.5 million or $719.9 psf ppr
from UVD Pte Ltd, a joint venture company
between Singapore Land and UOL Group,
exceeded the earlier expectations of a $550-
$620 psf ppr top bid. The 144,635.6 sq ft site
with a maximum GFA of 404,979.7 sq ft is
zoned for condominium; or flats; or a
combination of flats and strata landed houses
subject to approval. Despite the high bid,
there were only a modest six bids for the site
(probably as a result of the irregular layout
and narrow access), though the site has
attractive attributes such as the view of
MacRitchie Reservoir, proximity to amenities
like Thomson Plaza and Ai Tong School, the
affluent neighbourhood, and the lack of
supply. UVD plans to build a 20-storey, 420-
unit condominium on the site with a
breakeven price of around $1,100 psf, and
possibly an average selling price of around
$1,250-$1,300 psf.
(Source: Business Times)
Commercial
Expression-of-interest exercise for 60-year
leasehold Toa Payoh industrial site
The 44,906 sq ft site located along Lorong 5Toa Payoh is asking for $23 - 25 million. A
four-storey light industrial building with an
83,342 sq ft GFA and a 58,194 sq ft NLA sits
on the site, which is zoned "Business 1" with a
2.5 gross plot ratio and a 112,265 sq ft
allowable GFA. The sites attractiveness lies inits proximity to the Toa Payoh MRT station
and bus interchange, and the residential
areas, as well as its 850m frontage along
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Lorong 5 Toa Payoh which can be used for
display purposes. The exercise closes at 3pm
on Sept 18.
(Source: Business Times)
Cautious market sentiment in Q2
According to the latest survey by the Real
Estate Developers' Association of Singapore
(Redas) and the National University of
Singapore (NUS), the market sentiment has
improved slightly. The Composite Sentiment
Index, which indicates the overall real estate
market sentiment, increased from 4.6 in Q1 to
4.7 in Q2, while the Current Sentiment Index
which compares the current overall Singapore
real estate market conditions with the
conditions six months earlier, and the Future
Sentiment Index which overall property
conditions over the next six months both
increased by 0.1 to 4.9 and 4.5 respectively in
Q2. The survey results also indicated the top
three potential risks that may adversely
impact market sentiments - a slowdown in the
global economy and oversupply of new
property launches and new developmentland. There is a general cautious market
sentiment though the hotel sector has a net
positive sentiment of 33% while the office
sector has a net negative sentiment of 31 per
cent.
(Source: Business Times)
Tuas South industrial sites popular with
bidders but Mandai Link site less so
The tender for the four plots zoned for
Business-2 development closed with mixed
results with the 30-year leasehold 240,745.62
sq ft plot with 2.5 GPR at Mandai Link
drawing only two bids and the three Tuas
South sites drawing eight to 13 bids.
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The top bid of $45.29 million or $75.25 psf ppr
for the Mandai Link site is from Soilbuild
Group.
Meanwhile, the three 23-year plots at Tuas
South Street 7 and 8 have done well.48,987.63 sq ft Plot 13 at Tuas South Street 7
attracted 12 bids, with the highest bid of $3.82
million or $77.84 psf ppr from Chip Eng Seng
Contractors. 32,680.31 sq ft Plot 15 on Tuas
South Street 8 attracted 13 bids with the top
bid of $1.79 million or $54.72 psf ppr fromTransco-Pac Transport & Environmental Pte
Ltd while the 32,679.23 sq ft Plot 17, also on
the same street, attracted eight bids with the
top bid of $1.49 million or $45.58 psf ppr from
P-One.
Most bids are from end-users who areactively bidding for these sites since such
sites are in limited supply. The relative lack of
developers is likely due to the shorter leases.
(Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of Jul 25 Jul 31
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 THE CLIFT 527 1,170,000 2,218 99
1 ONE SHENTON 581 1,190,000 2,047 99
1 THE SAIL @ MARINA BAY 893 1,720,000 1,925 99
2 THE ARRIS 980 1,665,000 1,700 FH
3 RIVER PLACE 1,033 1,380,000 1,335 99
3 TANGLIN VIEW 1,249 1,600,000 1,281 99
4 THE BERTH BY THE COVE 1,173 1,935,450 1,650 99
4 HARBOURLIGHTS 1,270 1,728,000 1,360 FH
5 VENTANA 1,302 1,585,000 1,217 FH
5 VILLA DE WEST 1,012 1,020,000 1,008 FH
5 NORMANTON PARK 1,270 1,275,000 1,004 102
5 PALM GREEN 1,109 940,000 848 FH
5 BUONA VISTA GARDENS 2,325 1,950,000 839 FH
7 SOUTHBANK 958 1,620,000 1,691 99
9 ORCHARD VIEW 2,530 8,020,000 3,171 FH
9 VISIONCREST 904 1,880,000 2,079 FH
9 THE INSPIRA 1,216 2,180,000 1,792 FH
9 THE INSPIRA 1,216 2,100,000 1,727 FH
9 2 RVG 689 1,160,000 1,684 FH
9 ROBERTSON 100 1,152 1,920,000 1,667 FH
9 TRENDALE TOWER 3,208 5,300,000 1,652 FH
9 BELLE VUE RESIDENCES 4,252 6,420,000 1,510 FH
9 ASPEN HEIGHTS 1,324 1,940,000 1,465 999
9 HORIZON TOWER 2,583 3,190,000 1,235 99
10 ZENITH 743 1,500,000 2,020 999
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
10 BALMORAL HEIGHTS 549 1,000,000 1,822 FH
10 THE MARBELLA 1,496 2,380,000 1,591 FH
10 THE MARBELLA 1,582 2,430,000 1,536 FH
10 THE TESSARINA 1,615 2,430,000 1,505 FH
10 RISING SUITES 1,432 2,100,000 1,467 FH
10 VALLEY PARK 1,216 1,775,000 1,459 999
10 D' DALVEY 1,668 2,250,000 1,349 FH
10 CHATELET 1,130 1,520,000 1,345 FH
10 DUCHESS CREST 1,733 2,230,000 1,287 99
10 THE ASTON 1,765 1,930,000 1,093 FH
11 RESIDENCES @ EVELYN 1,141 2,020,000 1,770 FH
11 1 MOULMEIN RISE 1,249 1,950,000 1,562 FH
11 1 MOULMEIN RISE 1,238 1,930,000 1,559 FH
11 SKY@ELEVEN 2,713 4,230,000 1,559 FH
11 EVELYN MANSIONS 883 1,325,000 1,501 FH
11 MANDALE HEIGHTS 1,345 1,530,000 1,137 FH
12 ECOVILLE 1,184 1,388,000 1,172 FH
12 PAPILLON 936 1,070,000 1,143 FH
12 THE CALLISTA 592 650,000 1,098 999
12 RITZ MANSIONS 1,593 1,600,000 1,004 FH
12 BALESTIER POINT 1,152 1,120,000 972 FH
13 BLOSSOMS @ WOODLEIGH 1,195 1,485,000 1,243 FH
13 BLOSSOMS @ WOODLEIGH 3,035 2,106,960 694 FH
14 D' PALMA 1,001 1,150,000 1,149 FH
14 CASSIA VIEW 2,411 2,650,000 1,099 FH
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Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
14 SIMS DORADO 861 900,000 1,045 FH
14 ASTORIA PARK 861 835,000 970 99
14 SIMSVILLE 980 910,000 929 99
14 STARVILLE 1,238 1,140,000 921 FH
14 CENTRAL GROVE 1,259 1,150,000 913 99
14 THE TRUMPS 1,109 890,000 803 99
14 MERA EAST 2,002 1,600,000 799 FH
15 THE WATERSIDE 2,174 3,280,000 1,509 FH
15 DE CENTURION 775 1,100,000 1,419 FH
15 THE BEACON EDGE 990 1,348,880 1,362 FH
15 WATER PLACE 1,281 1,480,000 1,155 99
15 SANCTUARY GREEN 1,356 1,550,000 1,143 99
15 THE AMARELLE 1,615 1,800,000 1,115 FH
15 SPRING @ KATONG 1,195 1,290,000 1,080 FH
15 MALVERN SPRINGS 1,625 1,730,000 1,064 FH
15 TAIPAN GRAND 1,227 1,220,000 994 FH
15 MANDARIN GARDEN CONDOMINIUM 1,528 1,500,000 981 99
15 GALAXY TOWERS 1,421 1,280,000 901 FH
15 NEPTUNE COURT 1,270 1,020,000 803 99
16 CASA MERAH 1,249 1,395,000 1,117 99
16 CASA MERAH 1,345 1,460,000 1,085 99
16 THE BAYSHORE 1,012 1,050,000 1,038 99
16 EAST MEADOWS 1,195 1,155,000 967 9916 BAYSHORE PARK 936 905,000 966 99
16 THE CLEARWATER 1,270 1,220,000 961 99
16 THE BAYSHORE 947 910,000 961 99
16 AQUARIUS BY THE PARK 893 848,000 949 99
16 THE BAYSHORE 1,184 1 ,100,000 929 99
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
16 BAYSHORE PARK 2,196 2,038,800 928 99
16 CHANGI GREEN 1,216 1,100,000 904 FH
16 THE CLEARWATER 1,475 1,280,000 868 99
16 SUNHAVEN 1,292 1,120,000 867 FH
16 THE CLEARWATER 1,345 1,155,000 858 99
16 STRATFORD COURT 1,152 980,000 851 99
16 AQUARIUS BY THE PARK 1,227 1,000,000 815 99
16 APOLLO GARDENS 1,830 1,412,888 772 FH
17 EDELWEISS PARK CONDOMINIUM 1,453 1 ,270,000 874 FH
18 LIVIA 2,680 2,100,000 784 99
18 MELVILLE PARK 1,206 842,000 698 99
18 TAMPINES COURT 1,701 1,050,000 617 101
19 KOVAN MELODY 1,249 1,300,000 1,041 99
19 RIVERVALE CREST 947 810,000 855 99
19 HOUGANG GREEN 1,141 780,000 684 99
19 REGENTVILLE 1,163 770,000 662 99
20 THE GARDENS AT BISHAN 861 860,000 999 99
20 THE GARDENS AT BISHAN 1,227 1,195,000 974 99
20 BRADDELL VIEW 1,453 1,240,000 853 99
20 THOMSON VIEW CONDOMINIUM 2,024 1,650,000 815 99
21 GARDENVISTA 947 1,168,000 1,233 99
21 PANDAN VALLEY 1,335 1,450,000 1,086 FH
21 THE RAINTREE 1,335 1,400,000 1,049 9921 SPRINGDALE CONDOMINIUM 1,130 1,150,000 1 ,018 999
21 HIGHGATE 1,227 1,230,000 1,002 FH
21 SIGNATURE PARK 1,399 1,400,000 1,000 FH
21 PANDAN VALLEY 2,325 2 ,320,000 998 FH
21 SIGNATURE PARK 1,055 1 ,020,000 967 FH
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NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after apurchaser signs an OTP, hence the lagged nature of the data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
21 SIGNATURE PARK 1,421 1,325,000 933 FH
21 PINE GROVE 1,755 1,490,000 849 99
21 REGIS MANSIONS 1,206 950,000 788 FH
21 SHERWOOD TOWER 1,830 1,350,000 738 99
22 THE CENTRIS 1,066 1,268,888 1,191 99
22 THE CENTRIS 936 1,055,000 1,127 99
22 THE LAKESHORE 1,109 1,150,000 1,037 99
22 LAKESIDE TOWER 1,970 960,000 487 99
23 GLENDALE PARK 1,033 1,080,000 1,045 FH
23 MERAWOODS 1,345 1,300,000 966 999
23 MAYSPRINGS 904 775,000 857 99
23 THE WARREN 1,238 998,000 806 99
23 REGENT HEIGHTS 1,163 900,000 774 99
23 MAYSPRINGS 1,399 1,050,000 750 99
23 MAYSPRINGS 1,302 972,000 746 99
23 MONTROSA 3,122 2,000,000 641 999
25 CASABLANCA 893 770,000 862 99
26 THE CALROSE 1,259 1,463,800 1,162 FH
27 YISHUN EMERALD 1,001 800,000 799 99
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