singapore property weekly issue 177

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CONTENTS

p2 How to Tell Good Property Agents from

Bad Ones

p6 Singapore Property News This Week

p13 Resale Property Transactions

(September 24 – September 30 )

Welcome to the 177th edition of the Singapore Property Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR

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SINGAPORE PROPERTY WEEKLY Issue 177

Page | 2Back to Contents

By Property Soul (Guest Contributor)

After I sold one of my properties exclusively

by my property agent, another agent who

used to lease that property for me learned

about it and said, "What? Only $XXX,XXX? I

could have easily sold thirty to fifty thousand

higher for you!"

I know how the deal can be pushed higher.

There are many agents and owners in this

market who will do anything to sell properties

at the top price.

But I am also aware that these transactions

almost always come with special conditions

— that I don’t think is worth taking the risk.

How to Tell Good Property Agents from Bad Ones



But even without any condition, I am not keen

to bag that extra tens of thousands from

another offer.

The peace of mind from engaging the

service of someone whom I can truly trust

is beyond money.

Over the years, my agent was the one who

coordinated between my tenants and her

contractors to get all the repair work done.

She could have added her 'management fee'

or inflated the repair costs. Instead, she

bargained hard to get a reasonable price,

settled the bill on behalf of me, and sent me

the invoices later.

If she doesn’t mind forgoing the ‘tips’ for all

her extra work, why do I have to chase that

extra thirty thousand?

When there is trust, there is business.

We all want to find a good property agent to

represent us when we are renting, leasing,

buying or selling our properties.

But how can you tell the good from the bad

ones?

Say 'no' to a bad agent

Bad property agents share similar attributes.

Like bad boyfriends, they are a big

disappointment.

It is not uncommon to see them glorifying

their past performance or exaggerating

their experience in the industry. But when

there are hiccups and you need their help,

they are nowhere to be found.



Some agents have obviously mastered the

skills of playing a vanishing act. They

disappear after pocketing their commission,

leaving you alone to deal with difficult tenants,

late payments, neighbors’ complaints, etc.

Don’t pick an agent out of convenience.

Don’t use anyone just because the person

is a relative or an acquaintance. Don’t use

anyone without strong recommendations

from a reliable source.

Forget about agents who don’t put your

interests first. It’s time you looked for a new

one when:

• Your agent knows no better than you about

most of your property questions;

• Your agent keeps marketing to you specific

projects that don’t meet your requirements;

• Your agent asks you to compromise on an

unreasonable offer just to close the deal;

• Your agent always refers you to contact

someone else when there is any undesirable

task; or

• Your agent presses you to do something

that you don't feel comfortable with.

Qualities of good agents

Always look out for the following qualities in

property agents:

1. Passion: Possess a burning fire of

enthusiasm even after many years in the

industry.

2. Experience/knowledge: Know current

market trends, project details, market prices,

etc.

3. Negotiation skills: Act calmly and patiently.

Target win-win for both parties.

4. Honesty: Never oversell. Tell both pros and

cons and let you make your own decision.



5. Trustworthiness: Build trust by keeping

their word. Deliver what they promise.

6. Reputation: It is easy to speak highly of

themselves, but it is far better if former clients

speak highly of them.

A long-term relationship

As an investor, it worth spending the time to

find an agent that you can trust, someone

that you can work with in the long run.

When you are building your property portfolio,

your agent can be your assistant or advisor to

secure the good deals. When you need

someone to manage your properties, your

agent is your indispensable partner to ensure

that things run smoothly.

My property agent told me that she gets her

job satisfaction not from the compensation,

but her ability to help her clients in property-

related matters.

Good property agents understand the fact

that building a long-term relationship is

far more valuable than getting the highest

commission from a single deal. It is also

the close partnership with clients that

helps them ride though all the ups and

downs in a property cycle.

Know your rights and ways to protect yourself

when dealing with property agents.

Remember, successful investors get the edge

from using a good agent.

By guest contributor Property Soul, a

successful property investor, blogger, and

author of the No B.S. Guide to Property

Investment.

http://propertysoul.com/

http://aktive.com.sg/store/no-b-s-guide-to-property-investment/















Singapore Property This Week


Residential

HDB resale price falls again

For the eighth consecutive month, resale

prices of HDB flats have fallen in September,

according to flash estimates by the Singapore

Real Estate Exchange (SRX). Data from SRX

showed that HDB resale prices have fallen by

0.5 per cent from August to September.

Resale prices of three room flats fell by 0.2

per cent; while resale prices of four-bedders

fell by 0.2 per cent and five-bedders fell by

1.6 per cent. However, market experts believe

that the fall in prices is within expectations.

This is because of the recent implementation

of loan curbs and because of the increase in

supply of build-to-order flats. Eugene Lim

from ERA Realty said that price moderation is

gradual because buyers and sellers are more

cautious and realistic now. On the other hand,

executive flat prices have increased by 0.1

per cent from August to September. Overall

resale volumes for HDB flats have increased

by 10.7 per cent from the 1,327 units in

August to 1,469 units in September. Wong

Xian Yang from OrangeTee added that sales

in August were low due to the Hungry Ghost

Festival. The rental market, on the other

hand, has remained weak, according to SRX

estimates. Rental prices have fallen by 0.3

per cent in September from August. Ong Kah

Seng from R’ST Research added that HDB

owners are less inclined to sell their flats due

to low demand.



As such, more owners are offering their flats

at competitive rental prices to attract tenants.

(Source: Business Times)

More than 300 units sold at Marina One

Out of the 372 units released at its launch,

more than 300 units have been sold at Marina

One Residences. Marina One Residences

comprises of 1,042 units, and two 34-storey

towers. One bedroom units start from $1.4

million and range between 657 square feet to

775 square feet. On the other hand, two

bedroom units, which are between 969

square feet and 1,130 square feet, cost about

$2 million each. The condominium is

expected to cost between $1,960 per square

feet to $3,100 per square feet after a 10 per

cent early bird discount. Since October 3,

buyers who are looking to purchase multiple

units have already balloted for their choice

units. On the other hand, the public launch of

Marina One has begun on October 11.


High demand for Jurong EC

Since the launch of Lake Life, an executive

condominium located at Jurong Lake District,

more than 1,380 applicants have expressed

interest in the property. The e-application will

end on October 12. Market experts predict

that Lake Life will break the record for the

highest number of applications received for

an executive condominium launch. Given that

only 546 units were released for this project,

the project has been oversubscribed by 2.5

times. Lake Life, which is located at Yuan

Ching Road, is the second executive

condominium to be released this year. Not

only so, it is the first to be launched in Jurong

in the last 17 years.



It has a 99-year leasehold tenure and has

129,135 square feet. Despite the high

demand for Lake Life, executive

condominium transactions have been slow in

2014, said the developer of Lake Life.

Nonetheless, a total of 1,758 units are

expected to be released this year. Two other

executive condominiums, Bellewoods in

Woodlands and Bellewaters at Anchorvale

Crescent will be released in the upcoming two

months.


Resale volume of condos fall

Resale volume of private condominiums has

not picked up in areas such as Yishun and

Sembawang. According to Business Times,

18 transactions were made in those districts

in Q2 this year. Yet, in Tampines and Pasir

Ris, resale volumes have risen by 5.6 per

cent in Q2 this year, compared to the same

period last year. Market experts believe that

sellers with strong holding power might have

been unwilling to let go of their properties at a

lower price, despite of the total debt servicing

ratio framework. A total of 1,314 private

condos were resold in Q2 2014. This

represents 31.9 per cent of all private non-

landed residential transactions. While the

total private condo resale volume in Q2 2014

is higher than in Q2 2013, it is about 9 per

cent lower than in Q4, 2012, before the

implementation of the total debt servicing

ratio framework. The fall in resale volume in

Q2 was led by condo units at Middle Road,

Golden Mile, Serangoon Garden, Hougang

and Punggol. Nicholas Mak from SLP

International said that the lack of new

launches in some districts might have an

impact on the resale market.



Ong Kah Seng from R’ST Research added

that interest for homes in Pasir Ris is due to

high leasing demand. On the other hand,

Christine Li from OrangeTee predicts that

there will be a drop in foreign purchases in

the core central region due to the additional

buyer’s stamp duty.


Property agencies affected by slow sales

Profit margins for property agencies have

fallen by 20 to 50 per cent this year, due to

the slump in the property market. Of the

1,425 registered agencies, more than half are

expected to have made a loss in the last one

year. While some agencies have looked to

overseas markets to regain sales, others

have merged or been acquired to share

resources. Mohammed Ismail from PropNex

said that sales have dipped by 3 per cent in

2014. Not only so, as property prices fell, the

total value of transactions also fell. This fall in

profits has also affected large agencies, said

Jack Chua from Era Realty. Market experts

expect the market to worsen. In July, SLP

International, OrangeTee, HSR and Dennis

Wee Realty have banded together to form the

Project Alliance Group to consolidate

resources. RE/MAX, C&H Group and More

Property have followed suit in August too to

form Real Alliance.


Private home index eases gradually

According to Moody’s, the gradual decline in

private home index in Q3 this year can help

Singapore banks ease pressure on bank

asset quality. According to URA’s Private

Residential Property Price Index, the price

index fell by 0.6 per cent quarter on quarter in



Q3 this year; and the price index for Q3 this

year fell by 3.8 per cent year on year from

2013. Despite the fall in price index, market

experts expect the asset quality of housing

loans to remain robust in these two years due

to favourable economic conditions, such as

low unemployment. Moody’s believe that the

fall in housing price index was due to the

cooling measures implemented by the

government. According to Business Times,

the increase in house loans slowed after the

implementation of the total debt servicing

ratio framework. In fact, the year-on-year

growth in housing loans for this year was the

lowest in five years.


Commercial

Samsung Hub fetches $3,175 psf

Level 19 of Samsung Hub, at Church Street,

has been sold for $41.7 million or $3,175 per

square foot. The floor has a strata area of

13,121 square feet and is said to have been

purchased by a foreign investor. In August,

the building’s 18th storey was sold for $3,225

per square feet. The lease of the 19th storey

of Samsung Hub has been renewed until

2017. Thus, the net yield for the buyer is

expected to be about sub-3 per cent. The 19th

storey comprises of six strata units. Market

watchers believe that the total debt servicing

ratio framework will make it harder for strata

office investors to get loan approvals,

compared with those buying the space for

their own use.


Da Vinci Building sold for $58 million

Da Vinci Building, which is located at 191

Upper Bukit Timah Road, has been sold for



$58 million to Sim Lian Holdings Pte Ltd.

According to Business Times, Sim Lian

Holdings will be leasing out the building after

Da Vinci Holdings Pte Ltd moves out of the

building. The Da Vinci Building is located

beside the Sim Lian Holdings’ headquarters

and is a freehold site that has a plot ratio of

1.4. It has been zoned for commercial use

under the Urban Redevelopment Authority’s

Master Plan 2014. It has a gross floor area of

about 30,000 square feet and has a land area

of 21,415 square feet. It also has a basement

car park and comprises four storeys.


Strata-titled industrial sales expected to be

slow

A report by Colliers International said that

replacement anchor sub-tenants will be

harder to find when secondary industrial

space becomes available from expiring sale

and leaseback transactions. Chia Siew Chuin

from Colliers expects rents and yield to be

impacted when leasing space from third-party

facility providers. Nonetheless, Chia believes

that rents for business parks and independent

high-specs buildings will remain constant from

Q3 to Q4 this year due to a slowdown in land

supply. Chia also predicts that the sale of

strata-titled industrial land will remain slow.

Despite strong leasing activities, Chia

believes that the outlook for the industrial

market will remain mixed. According to URA

Realis caveats, sale transactions of strata-

titled industrial properties have fallen by 36

per cent quarter-on-quarter in Q3 from Q2 this

year. According to DTZ, the decline in sales

volume is due to the implementation of the



total debt servicing ratio framework. Not only

so, CBRE said that there is a widening gap in

rents between business parks located in the

city fringe and in the rest of the island.


http://propertymarketinsights.com/



Non-Landed Residential Resale Property Transactions for the Week of Sep 24 – Sep 30

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

2 THE ARRIS 1,464 2,420,000 1,653 FH

2 INTERNATIONAL PLAZA 1,496 1,960,000 1,310 99

4 CARIBBEAN AT KEPPEL BAY 1,281 1,880,000 1,468 99

5 THE INFINITI 1,302 1,200,000 921 FH

5 VARSITY PARK CONDOMINIUM 2,293 2,100,000 916 99

8 SOHO @ FARRER 441 700,000 1,586 FH

9 ESPADA 355 970,000 2,731 FH

10 VILLA AZURA 1,604 2,080,000 1,297 FH

10 SOMMERVILLE PARK 624 700,000 1,121 FH

11 IRIDIUM 1,066 1,615,000 1,516 FH

11 ADAM PARK CONDOMINIUM 958 1,340,000 1,399 FH

11 THE ARCADIA 4,639 4,640,000 1,000 99

12 THE TIER 538 738,000 1,371 FH

13 ONE LEICESTER 915 1,150,000 1,257 FH

14 ASTORIA PARK 958 1,000,000 1,044 99

14 STARVILLE 1,216 1,120,000 921 FH

15 AALTO 1,550 2,800,000 1,806 FH

15 THE SHORE RESIDENCES 893 1,390,000 1,556 103

15 GRAND DUCHESS AT ST PATRICK'S 1,410 2,121,000 1,504 FH

15 COSTA RHU 2,228 3,050,000 1,369 99

15 THE ESTA 1,313 1,750,000 1,333 FH

15 WATER PLACE 1,227 1,590,000 1,296 99

15 FERNWOOD TOWERS 1,636 1,800,000 1,100 FH

15 BLU CORAL 1,141 1,220,000 1,069 FH

15 NEPTUNE COURT 1,636 1,380,000 843 99

15 TEMBELING CENTRE 1,959 1,600,000 817 FH

16 IDYLLIC EAST 1,281 1,400,000 1,093 FH

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

16 THE BAYSHORE 936 900,000 961 99

16 SUNHAVEN 1,281 1,200,000 937 FH

16 AQUARIUS BY THE PARK 1,227 1,020,000 831 99

17 THE GALE 969 995,000 1,027 FH

18 WATERVIEW 1,324 1,480,000 1,118 99

19 SUNGLADE 1,044 1,080,000 1,034 99

19 EVERGREEN PARK 1,023 820,000 802 99

20 RAFFLESIA CONDOMINIUM 915 1,135,000 1,241 99

20 GRANDEUR 8 1,227 1,320,000 1,076 99

21 SUMMERHILL 1,206 1,320,000 1,095 FH

21 SOUTHAVEN II 1,507 1,620,000 1,075 999

21 SYMPHONY HEIGHTS 969 945,000 975 FH

21 SELANTING GREEN 1,658 1,600,000 965 FH

21 PINE GROVE 1,927 1,400,000 727 99

23 GUILIN VIEW 861 785,000 912 99

23 PARKVIEW APARTMENTS 980 838,888 856 99

23 REGENT HEIGHTS 1,023 868,000 849 99

23 REGENT HEIGHTS 1,173 931,000 794 99

23 MAYSPRINGS 1,410 1,070,000 759 99

23 PALM GARDENS 1,216 920,000 756 99

23 REGENT GROVE 1,173 860,000 733 99

25 WOODGROVE CONDOMINIUM 1,604 1,150,000 717 99

26 HONG HENG MANSIONS 1,302 1,000,000 768 FH

27 ORCHID PARK CONDOMINIUM 872 738,000 846 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 177

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