singapore property weekly issue 134

7/27/2019 Singapore Property Weekly Issue 134

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CONTENTS

p2 Impact of the New EC Cooling Measures

p5 Singapore Property News This Week

p9 Resale Property Transactions

(November 27 – December 3)

Welcome to the 134th edition of the

Singapore Property Weekly .

Hope you like it!

Mr. Propwise

FROM THE

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SINGAPORE PROPERTY WEEKLY Issue 134

Page | 2Back to Contents

By Marcus Sim (guest contributor)

The Ministry of National Development have

introduced three new measures that will be

aimed to regulate the Executive

Condominium scheme. This is to ensure

greater parity to that of public housing and to

improve the viability and sustainability of the

EC market.

Details of the 3 measures

The first measure will involve fees imposed

when buyers cancel their EC purchase.

Cancellation fees have been decreased from20% to 5% of the EC purchase price. This is

to alleviate their financial strain. This will be in

effect for land sales launched on or after 9

December and will include those with tenders

Impact of the New EC Cooling Measures





that are not closed. The current cancellation

fee for ECs matches that of private housing –

20%. The difference lies in the inability of EC

buyers to sub-sell their units during an

incomplete purchase, which brings cause for the implementation of the fee.

The second measure will affect buyers who

are directly applying for EC units from

developers for the second-time. A new resale

levy will be imposed on this group of buyers.

The new ruling will be in effect for to land

sales launched on or after 9 December and

will include those with tenders that are not

closed. From current market practice, such

applicants will gain to benefit from reduced

prices due to the initial eligibility and

ownership restrictions imposed on the

purchase of ECs. Therefore, this new ruling

will ensure greater uniformity between buyers

applying for EC and BTO flats for the second

time.

The third measure will be implemented by the

Monetary Authority of Singapore (MAS).

Buyers of EC units whose housing loans are

granted by financial institutions will be

imposed with a cap on the loan’s MortgageServicing Ratio (MSR). This will concern units

that have been directly purchased from

developers at 30% of the debtor’s gross

monthly income. The new cap imposed is in

alignment with previous measures

implemented by the Housing DevelopmentBoard and Monetary Authority of Singapore.

The objective of this new measure is that of

strengthening financial austerity of buyers of

public housing units. It will serve to deter EC

buyers from over-straining their finances as

well, which will further spur an economicaland viable EC market. If the Option to

Purchase is granted on or after 10 December

for an EC purchase, the cap will be imposed.





Implications of the new EC measures

The introduction of new cooling measures to

regulate the Executive Condominium (EC)

scheme will encourage developers to bemore conscious of the income ceiling of its

potential buyers and their ability to afford the

EC purchase.

With the new Mortgage Servicing Ratio cap in

place, EC buyers will be affected the most.

The key question now would be their ability toafford the EC as the MSR caps at 30% of the

buyer’s gross monthly income. At the same

time, a new measure will see a resale levy

imposed on buyers who are directly applying

for EC units from developers for the second-

time.

These two measures will complement each

other and ensure greater uniformity between

the buyers of public housing and ECs. This

will encourage developers to fine-tune and

adapt more appropriate land bid prices as

well. The ensuing land bids on ECs will be

monitored closely; so as to observe and judge

the effectiveness of the newly introduced

measures in reducing the number of bids per

site and/or the size or amount of the

successful bids.

The new MSR cap for ECs is likely to cause a

significant decrease of 50% in the purchasingpower of EC buyers. Buyers who had held

earlier ambition of an EC upgrade would now

have to re-consider their decision. If the MSR

30% cap was to be imposed on current EC

units, affording the units would be practically

impossible. As a result, EC developers arelikely to construct smaller units in future, so

as to ensure affordability, even despite it

being at the expense of living space.

By Marcus Sim of SG Property Reviews.

http://sgpropertyreviews.com/









Singapore Property This Week


Residential

E C s c h e m e t o b e c h a n g e d

The executive condominium (EC) scheme

has been changed by the Ministry of National

Development to bring the terms for ECs

closer to public housing terms and to supporta stable EC market. Three changes will be

made following a review of feedback from the

Our Singapore Conversation, including the

adjustment of the Mortgage Servicing Ratio

(MSR) which is for EC housing loans from

financial institutions for units bought directlyfrom developers. The MSR will now be

capped at 30 percent of gross monthly

income and will apply to purchases with the

option-to-purchase is granted from December

10, 2013 onwards. This has been seen as aneffective move to cool demand for ECs, as

the MSR did not apply to ECs previously.

(Source: Business Times)

2 0 1 4 l i k e l y t o b e q u i e t e r y e a r f o r p r o p e r t y

ma r k e t

Compared with year 2013 which had policies

to cool the property market and a number of

firsts in public housing, 2014 may be a quieter

year. According to consultants, it is unlikely

that the government will roll out any new

policies in 2014, despite some possible

tweaking of existing measures. Chua Yang

Liang, head of research, South-east Asia, at

Jones Lang LaSalle said that any possible





policy changes will depend on the pace of

economic growth and the response from the

property market. He predicted that the

government would be comfortable with a

healthy long-term growth rate of 1-2 percent a

quarter on the Property Price Index.


E u n o s v i l l e a n d J e r v o i s G a r d e n s l a u n c h e d

f o r c o l le c t iv e s a le

After its maiden collective sales attempt was

thwarted by the introduction of the total debt

servicing ratio (TDSR) framework, the 330-

unit Eunosville opposite Eunos MRT Station

is now back on the market. In addition,

Jervois Gardens would join Eunosville to be

launched for collective sale by tender. Similar

to its collective sale attempt in June,

Eunosville is being put for a minimum price of

$688 million or about $806 psf ppr on the

potential gross floor area (GFA), which

includes estimated differential premiums of

$163 million payable to top up the site's lease

from a balance term of around 74 years to 99

years and intensification of use.


M ar in a B ay t o b ec o m e t h e n e w f in an c ia l

a n d r e s id e n t ia l d is t r ic t

According to the recent Urban

Redevelopment Authority (URA) Draft Master

Plan 2013, Marina Bay would soon become

the new financial and residential district in the

urban city centre. The Marina Bay Financial

Centre (MBFC) with its second phase

completed earlier this year is the only

development on the new Marina Bay site as

of now. MBFC includes two residential and

three commercial buildings, and is designed

as a landmark development that artistically

SINGAPORE PROPERTY WEEKLY I 134





merges the older part of the business district

with future developments by Marina Bay to

create a strong profile on the Singapore

skyline.


Commercial

Far Eas t is t op b id der f or t hir d s it e i n

G am b a s A v e n u e

Following its acquiring of Parcel 1 and Parcel2, property giant Far East Organization has

continued to win the bid for the third plot of

land in Gambas Avenue in the

Woodlands/Sembawang area at a state

tender. The group's unit Grow-Tech

Properties' winning bid for the third plot was$102.20 psf ppr, which is lower than the

$137.90 psf ppr it paid for Parcel 1 and

$127.19 psf ppr for Parcel 2 at an Urban

Redevelopment Authority tender in October.

As Parcel 2 is beside Parcel 3, the group is

expected to do a combined project for both

plots. Far East is planning to include a range

of industrial product types - such as ramp-up,

flatted and terrace factories - for sale andlease for all three sites. Parcel 4, currently on

the reserve list, is also highly expected to be

launched.


A t r i u m s h o p l o t a t S im L i m S q u a r e o n s a le

The only atrium shop space of 2,756 sq ft on

the ground floor of Sim Lim Square is now

launched for sale by expression of interest by

CBRE, the sole marketing agent for the sale.

CBRE is reported to expect strong offers in

excess of $48 million or $17,417 psf for the

shop lot. Previously in March, a ground floor

shop located along the second corridor was

transacted at $10,719 psf.

SINGAPORE PROPERTY WEEKLY I 134





As Sim Lim Square shops are under the

commercial property zoning, both locals and

foreigners are eligible to purchase it with no

additional buyers' stamp duty imposed.


St a b le o u t lo o k f o r S- R eit s in 2 0 14

As Moody's 13 rated S-Reits are expected to

grow by 4 percent along with a larger asset

base and rent increases on existing

properties, the outlook for Singapore realestate investment trust sector is stable for

2014. Overall occupancy and rental rates are

expected to remain stable, but the

warehousing segment may have weakness

from a spike in the supply of new warehouse

space, although 40 percent has been pre-committed by end-users and thus may

mitigate the impact of the enlarged supply.

Office landlords are expected to have more

pricing power due to a limited supply of new

office space in the core central business

district (CBD).


In d u s tr ial s eg m e n t t h e h a r d es t h i t i n S - Reit fall

According to MayBank Kim Eng’s latest

report, the industrial segment was the hardest

hit in the recent decline of the Singapore-

listed real estate investment trust market. The

industrial segment decreased 3.4 percentover five days, while the overall S-Reit market

fell 2.7 percent. In addition, healthcare Reits

decreased 3.2 percent, both office and retail

Reits decreased 2.8 percent, and hospitality

Reits decreased 0.4 percent. The increase in

industrial property prices over the past four years to reach record levels since the global

financial crisis of 2007-2008 is probably an

unintended consequence.







Non-Landed Residential Resale Property Transactions for the Week of Nov 27 – Dec 3

NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority. 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

2 INTERNATIONAL PLAZA 1,604 1,818,000 1,134 99

3 ASCENTIA SKY 1,475 2,065,000 1,400 99

4 REFLECTIONS AT KEPPEL BAY 2,508 5,000,000 1,994 99

4 REFLECTIONS AT KEPPEL BAY 1,076 1,700,000 1,579 99

5 PARC IMPERIAL 1,044 1,300,000 1,245 FH

9 THE ORCHARD RESIDENCES 2,852 12,300,000 4,312 99

9 NOMU 474 1,100,000 2,323 FH

9 THE REGALIA 1,238 1,920,000 1,551 FH

9 LEONIE GARDENS 3,617 4,750,000 1,313 99

10 NASSIM PARK RESIDENCES 3,466 13,170,800 3,800 FH

10 ZENITH 560 1,110,000 1,983 999

10 GALLOP GREEN 4,402 8,500,000 1,931 FH

10 SOMMERVILLE GRANDEUR 1,841 2 ,750,000 1,494 FH

11 SHELFORD SUITES 1,249 1,890,000 1,514 FH

12 OLEANDER TOWERS 893 1,090,000 1,220 99

12 THE ABERDEEN 1,475 1,515,000 1,027 FH

13 WOODSVILLE 28 1,195 1,400,000 1,172 99

13 BELLA VISTA 1,173 1,112,450 948 FH

15 IMPERIAL HEIGHTS 452 740,000 1,637 FH

15 MEYER RESIDENCE 1,152 1,790,000 1,554 FH

15 TIERRA VUE 2,056 2,480,000 1,206 FH

15 LAGUNA PARK 1,453 1,290,000 888 99

15 VILLA MARINA 2,024 1,660,000 820 99

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

15 FORTUNE SPRING 2,131 1,648,000 773 FH

17 FERRARIA PARK CONDOMINIUM 1,722 1,550,000 900 FH

19 AMARANDA GARDENS 1,163 1,550,000 1,333 FH

19 REGENTVILLE 980 835,000 852 99

19 RIO VISTA 1,238 1,050,000 848 99

21 THE CASCADIA 1,496 2,380,000 1,591 FH

21 SIGNATURE PARK 1,399 1,485,000 1,061 FH

22 THE LAKESHORE 1,281 1,200,000 937 99

23 THE MADEIRA 936 983,000 1,050 99

23 CHANTILLY RISE 947 905,000 955 FH

23 MI CASA 1,098 1,000,000 911 99

23 THE WARREN 1,249 1,080,000 865 99

23 PARKVIEW APARTMENTS 1,163 935,000 804 99

27 YISHUN EMERALD 1,195 918,000 768 99

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