singapore property weekly issue 154

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CONTENTS

p2 5 Things to Do Before You Visit Any Showflat

p8 Singapore Property News This Week

p12 Resale Property Transactions

(April 16 – April 22)

Welcome to the 154th edition of the Singapore Property Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR

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SINGAPORE PROPERTY WEEKLY Issue 154

Page | 2Back to Contents

By Marcus Sim (guest contributor)

Before you make the trip to that swanky new

launch condominium showflat, it is useful to

first determine your financial strength. Your

purchasing power is not just limited by your

income, but also by the number of existing

properties under your name. Moreover, the

maximum amount of money you can loan

from the bank is also restricted by the

combined sum of your monthly financial

commitments.

5 Things to Do Before You Visit Any Showflat



To simplify matters, here is a comprehensive

to-do list before you make the trip to the show

flat.

1. Check on how much CPF you are able to

use for the property purchase

2. Speak to a banker to find out how much

you are eligible to loan based on your

current property portfolio and monthly

financial commitments

3. Know exactly which ABSD bracket you fall

into

4. Understand how the Normal Progressive

Payment Scheme works

5. Understand how the Balloting system

works

1. Check how much CPF you can use for

the property purchase

If you are a first time property buyer, the

maximum amount of CPF you can use is your

entire Ordinary Account (OA) funds. If you are

purchasing your second property, you will

have to ensure that you fulfill the minimum

sum of $75,000 (as of 01/07/2013) in your

combined OA and Special Account (SA).

Below is an illustration of your allowable CPF

usage for your second property.



2. Get Your Housing Loan Approval-in-

Principle

This is one of the most important things to do

that buyers often overlook. Getting a loan

approval-in-principle (AIP) is now one of the

most essential requirements when it comes to

purchasing a property. Without it, you will be

unable to properly set your property purchase

budget.

With an AIP, you will know exactly how much

the bank is willing and able to lend you for

your property purchase. Best of all, it is

absolutely free to get it done and takes

approximately three working days for the

bank to process your request.

Here are the set of documents you will

require.

Copy of NRIC or passports of all

purchasers

All your latest Credit Card Statements

Application form

Declaration form of all credit facilities

HDB page to show your HDB status (HDB

loan / do not own any HDB / did not take

up a loan with HDB)

Latest 3 months payslip and IRAS Tax

Assessment Return (For Employed)

Latest 12 months of CPF contribution (For

Employed)

Latest 1 year of IRAS Tax Assessment

Return (For Employed and Self

Employed)

3. Know Your ABSD Bracket

Knowing which Additional Buyer Stamp Duty

(ABSD) bracket you fall into is another

important consideration in today’s market.



For Singaporeans, your first property will be

free of any ABSD. However, your second and

third property purchases will be taxed 7% and

10% on the purchase price respectively.

For Permanent Residents (PRs), your initial

property purchase will be taxed 5% on the

purchase price. Subsequently, your property

purchases will be taxed 10% on the property

transacted price. For Foreigners and Entities,

your property purchases will be taxed 15% on

the price of each property.

Here is a helpful chart to illustrate which

ABSD bracket you fall into:

Figure 1: ABSD rates

4. Understand how the Normal

Progressive Payment Scheme (NPS)

works

The NPS is currently the standard payment

scheme used in almost all new launch

condominium projects. Understanding the

progression of payments will be helpful in

planning your cash-flow for your property

purchase.

Upon selection and confirmation of your

choice unit,

A payment of 5% in cash has to be made

in favor of the developer’s project account

in exchange for the Option To Purchase

(OTP)

Within 2 weeks, the developer will send

the Sales and Purchase Agreement (S&P)

to your correspondence address



Upon date of receipt of the S&P, you will

have 3 weeks to exercise the contract at

your solicitor’s office. If the contract is not

exercised, 75% of the initial Option Fee

paid will be refunded to your account.

After exercising the agreement, the

Stamp Duty and ABSD will be payable

within 14 days from the date of exercise.

The remaining 15% of the down payment

is payable within 8 weeks from the initial

OTP date

Here is a timeline to illustrate the payment

process.

Figure 2: Timeline of payments

5. Understand how the Balloting Process

works

Prior to the launch of a new condominium, a

preview period of one to two weeks will be

allocated for you to preview the showflat and

have a feel of the unit sizes and prices.

Buyers who preview the showflat during this

period are given the opportunity to register for

a non-obligatory seat during the launch date.

This registration allows you to be eligible to

ballot for units before the public launch where

units are sold on a first-come-first serve

basis. Very often, early bird discounts are

also given for purchasers who purchase

during the launch day.

To register for the balloting, a few documents

are required.

A copy of the registrant’s NRIC



An Expression of Interest form (EOI) filled

and signed

A cheque addressed to the developer

project account

• In the event that you decide not to

purchase any unit during the launch, the full

set of documents will be returned to you.

Frequently Asked Questions (FAQ)

What if I am only eligible for a maximum loan

of 50% of the property price? When will the

loan start to take effect?

After your initial 20% down payment, the

developer will call for payment in cash or CPF

after each stage of the development is

completed.

10% after the foundation works

10% after the concrete framework

5% after the partition of walls

And another 5% after the completion of

roofing of the units

After which, the loan will start to take effect.

What if I don’t have a banker to work with?

Contact us for a list of recommended bankers

from the various banks by clicking here.

What are the other miscellaneous fees in the

transaction?

The only other miscellaneous fee is the legal

fees which are in the range of $2,500 to

$3,000 depending on your choice of law firm.

By Marcus Sim of SG Property Reviews.

http://sgpropertyreviews.com/contact/



http://sgpropertyreviews.com/






Singapore Property This Week


Residential

175 units at Commonwealth Towers sold

on launch day

Commonwealth Towers, a high-rise

condominium at Queenstown, sold more than

half of its 300 units on its launch day. Then,

its developer, Hong Leong Holdings added

another 100 units to the launch in view of the

175 units sold. The 99-year leasehold

condominium, which resides near shopping

malls like Anchorpoint, is selling from $1,635

per square foot for a 441 sqft one-bedroom

apartment to $1,690 for a 1,302 sqft four-

bedroom apartment.

(Source: Business Times)

Declining housing sales likely to push

down land prices

As housing sales slows, developers are more

wary and land prices are likely to cool in H2 of

2014 said Chong Kang Ho, BNP Paribas

analyst. DBS Research analyst, Lock Mun

Yee predicts housing sale transactions to fall

by 20 per cent and prices to dip by 5 per cent

this year. The Singapore Residential Price

Index that was released by NUS showed a

1.1 per cent month on month decline for

prices of completed condominiums. These

reasons are likely to push land prices down

as developers try to limit their risks.




Waterfront@Faber opens for preview

99-year leasehold development at Sungei Ulu

Pandan, WATERFRONT@FABER, which

consists of 199 units and 11 strata houses, is

on preview this May. Two-bedroom dual key

units, ranging from 753 square feet to 764

square feet are priced from $863,000; three-

bedroom dual key units, which are about

1,023 square feet, will cost about $1.125

million; and four-bedroom units, ranging from

1,173 square feet to 1,292 square feet are

priced from $1.32 million. The 2,799 to 3,035

square feet strata houses will cost at least

$2.48 million.


Potong Pasir site expected to draw bids as

high as $900 psf ppr

A 99-year leasehold tenure site near Potong

Pasir MRT station is expected to draw bids

from $650 to $900 per square feet per plot

ratio. Closing on August 19, the tenure is

likely to attract four to eight bids. The

commercial and residential site, which is

under the Government Land Sales

programme, may be developed into a 13 to

16-storey development to give 685 residential

units. Other sites on reserved lists, such as

an executive condominium site at

Sembawang, have also been launched for

application.


Housing plot at Sims Drive fetches lower

bid price than nearby site in Geylang East

GuocoLand won the bid for a private housing

site at Sims Drive for $687.88 per square foot

of potential gross floor area, which was lower

than a nearby site at Geylang East that was

sold in January for $775.96 per square foot of



potential gross floor area. There was higher

interest in the Geylang East site as it had a

superior location. Its maximum gross floor

area was also smaller and thus was more

attractive to developers. The Sims Drive site

will be developed into a 19-storey

condominium with 800 to 850 units and is

expected to be launched in 2015.


Commercial

Extension to 6-year grace period for

commercial & industrial tenants

The Housing & Development Board makes an

extension from three to six years for the

grace period for tenants, who have rented

HDB spaces for at least 15 years, affected by

the rule restricting the transfer of business

spaces. Under this new rule, introduced in

October 2013, tenants need to return their

spaces to HDB after exiting the business,

permitting new tenants to bid for those

spaces without paying “assignment fees” to

the ones moving out. An estimated 7,100

long-time tenants, or 40 percent of HDB

commercial and industrial tenants, will benefit

from the extension.


Singapore attracts US$ 217 billion in real

estate investments from the ultra-rich

Singapore beats New York to be among the

top four locations for real estate investments

made by ultra-high net worth individuals

(UHNWI). Singapore, which attracted US$217

billion, trails behind Hong Kong (US$ 798

billion), London (US$ 676 billion) and Moscow

(US$ 263 billion). According to Savills, global

interior design house Candy & Candy and

Deutsche Asset & Wealth Management, 40

per cent of all global real estate investments

come from the top five cities.



Also, 72 per cent of the world’s real estate is

owner-occupied residential property; and

residential property remains the hot favorite

for 200,000 UNHWIs according to Savills.


Prime spot retail rents expected to

increase

While retail rents are expected to fall by three

to five per cent this year, they have risen by

0.8 per cent in Q1 for prime locations such as

Marina, City Hall and Bugis. Furthermore, a

report by Knight Frank expects rents for

prime locations to increase by three to five

per cent this year. Nonetheless, data from

URA showed a marginal 0.3 per cent quarter

on quarter decline in rental index for the

Central region. This was due to an increase in

supply.


More industrial sites for tender under the

IGLS scheme

Two industrial sites at Tuas and one other at

Woodlands are open for tender till July 1, as

part of the Industrial Government Land Sales

(IGLS) scheme. The sites at Tuas Avenue 11

and Tuas South Street 11 are for B2 industrial

uses. While the Woodlands site is for B1

industries uses such as clean and light

industries. Nicholas Mak, executive director of

SLP International predicts that the Tuas

Avenue 11 site, which has a 30-year lease,

will attract bids as high as $95 per square foot

per plot ratio. However, the site at Tuas South

Street 11, which is on lease for only 20 years,

is expected to be less attractive to the other

sites.




Non-Landed Residential Resale Property Transactions for the Week of Apr 16 – Apr 22

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

2 ICON 581 1,110,000 1,910 99

3 TANGLIN VIEW 1,141 1,560,000 1,367 99

5 BOTANNIA 1,292 1,600,000 1,239 956

8 CITYLIGHTS 1,356 1,730,000 1,276 99

9 SCOTTS HIGHPARK 3,466 6,380,000 1,841 FH

9 MACKENZIE 88 484 792,000 1,635 FH

9 ORCHARD SCOTTS 2,282 3,700,000 1,621 99

10 NASSIM MANSION 3,412 9,500,000 2,784 FH

10 THE SERENADE @ HOLLAND 1,539 2,038,000 1,324 99

11 THE LINCOLN RESIDENCES 1,884 3,390,000 1,800 FH

11 PARK INFINIA AT WEE NAM 1,442 2,500,000 1,733 FH

12 NOVA 48 1,238 1,490,000 1,204 FH

14 CENTRAL GROVE 1,206 1,250,000 1,037 99

14 STARVILLE 1,238 1,200,000 969 FH

15 THE SEA VIEW 560 1,005,000 1,796 FH

15 THE SEAFRONT ON MEYER 1,066 1,580,000 1,483 FH

15 THE MAKENA 1,518 2,100,000 1,384 FH

15 COSTA RHU 1,776 2,300,000 1,295 99

15 AQUENE 915 1,128,000 1,233 FH

15 SANCTUARY GREEN 1,399 1,560,000 1,115 99

15 LE MERRITT 1,238 1,280,000 1,034 FH

15 MANDARIN GARDEN CONDOMINIUM 1,528 1,400,000 916 99

16 THE DAFFODIL 743 850,000 1,144 FH

16 AQUARIUS BY THE PARK 1,324 1,010,000 763 99

16 FAIRMOUNT CONDOMINIUM 1,894 1,430,000 755 99

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

18 MELVILLE PARK 1,044 825,000 790 99

18 SAVANNAH CONDOPARK 2,045 1,550,000 758 99

19 FONTAINE PARRY 915 1,180,000 1,290 999

19 SUNGLADE 1,152 1,350,000 1,172 99

19 KENSINGTON PARK CONDOMINIUM 1,658 1,900,000 1,146 999

19 KOVAN MELODY 1,292 1,450,000 1,123 99

19 KOVAN RESIDENCES 1,442 1,570,000 1,088 99

19 KOVAN MELODY 1,227 1,330,000 1,084 99

20 FLAME TREE PARK 1,862 1,962,500 1,054 FH

20 THE GARDENS AT BISHAN 1,948 1,900,000 975 99

21 PANDAN VALLEY 2,239 2,400,000 1,072 FH

21 HIGHGATE 1,905 2,000,000 1,050 FH

21 THE RAINTREE 1,378 1,430,000 1,038 99

22 THE LAKESHORE 926 1,022,800 1,105 99

22 PARC VISTA 1,066 1,000,000 938 99

23 HILLVIEW 128 1,044 960,000 919 999

23 THE WARREN 1,238 1,100,000 889 99

23 PARKVIEW APARTMENTS 936 810,000 865 99

23 CASHEW HEIGHTS CONDOMINIUM 1,658 1,400,000 845 999

23 PALM GARDENS 1,216 918,000 755 99

25 CASABLANCA 1,119 970,000 866 99

25 WOODGROVE CONDOMINIUM 1,184 838,000 708 99

27 ORCHID PARK CONDOMINIUM 1,141 840,000 736 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.

singapore property weekly issue 154

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