singapore property weekly issue 61

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CONTENTS

p2 June Home Sales Plunge – Reduced

Policy Risk Ahead?

p5 Singapore Property News This Week

p11 Resale Property Transactions

(July 4 – July 10)

Welcome to the 61st edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise

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SINGAPORE PROPERTY WEEKLY Issue 61

Page | 2 Back to Contents

June Home Sales Plunge – Reduced Policy Risk Ahead?

By Mr. Propwise

Total residential sales fell by an estimated

21% month-on-month in June, with new home

sales falling by 19% (excluding Executive

Condominiums) to 1,371 units while

secondary market sales fell by 29% to 1,010

units. This is the third month of contraction for

total residential sales and the second month

for new home sales (excluding ECs).

A clear trend of falling volumes and

decreasing liquidity in the housing market is

forming, likely caused by a pullback in

housing demand, as investor appetite for

property is satiated both by the large number

of launches in the recent months and also as



worries about sluggish economic growth start

to dominate.

Tougher times for developers ahead?

Only three projects generated sales of over

100 units in June, compared to four in May

and six in April. The top three projects were

River Isles in Punggol (263 units sold in June,

median price $835 PSF), Sea Esta in Pasir

Ris (255 units sold, $906 PSF), and

Watercolours in Pasir Ris (201 units sold,

$735 PSF).

And while the Monthly Sell-Through Rate

(excluding ECs), defined as the units sold in

the month divided by the units launched in the

month, shot up from May’s 69% to 105% in

June, this was due to a 47% drop in the

number of units launched (i.e. the

denominator shrunk significantly).

Developer inventory, while falling 1.1% in

June to 7,234 units, is close to a five year

high. If sales continue to fall significantly,

developers could be stuck with a lot of unsold

units, which would put pressure on either the

prices of new home sales (if developers

decide to cut prices to get rid of unsold units)

or their balance sheets (if they decide to hold

on to the unsold units and wait for better

times).

Sad state of the secondary market

Things are even worse in the resale market,

which saw an estimated 29% month-on-

month drop in transaction volumes. The

secondary market as a percentage of total

sales fell from 41% in May to 37% in June,

significantly below the five year average level

of 57%.



What this means is that homeowners looking

to sell their property will likely find it

increasingly difficult, despite their asking

prices typically being significantly below the

prices of new homes sold in the neighboring

areas. Property has always been an illiquid

investment – the drying up of transaction

volumes makes it more risky.

Weaker market reduces policy risk

One of the few bright spots in the market is

that the risk of further dampening policy

measures from the government has been

reduced. A statement by the Ministry of

National Development on the Additional

Buyer’s Stamp Duty suggests that the

government is satisfied that the market is

“moving towards a stable and sustainable

path”, given that the proportion of foreigners

and companies buying private residential

property had fallen from 20% in 2011 to 7%,

and that private home prices had only risen

0.3% in the first half of 2012 compared to a

6% increase in 2011.

As long as prices and volumes do not spike

up (the URA’s flash estimate of the 2012Q2

Private Property Index increasing 0.4% after

falling 0.1% in 2012Q1 is a risk factor if the

trend reversal sustains), the government is

unlikely to put further brakes on the market.

However, this is likely to be of little comfort to

both developers and investors in a market

where volumes are declining quickly.

http://app.mnd.gov.sg/Newsroom/NewsPage.aspx?ID=3671&category=Parliamentary Q & A&year=2012&RA1=&RA2=&RA3=














Singapore Property This Week


Residential

H1 2012 sales are higher than H1 2011’s

despite fall in June

Developers sold a total of 1,371 units,

excluding ECs, in June, a 19.5% fall from

May’s figures but a 16% increase from June

2011. Despite this, the total for H1 2012 is

12,098 units, up from H1 2011’s 8,039 units

and nearly the 15,904 units sold in the whole

of 2011. The total for 2012 is expected to hit a

record high of 18,000-22,000 units.

Meanwhile, Q2 2012’s private home price

index increased by 0.3% from Q4 2011, and is

expected to remain stable with 0.5-1%

increment, no change or just a slight fall in H2

2012, especially with competition from the

constant supply from new launches.

Competition also comes from the resale

market, as evident from the increase in

transaction volumes from 1,906 units in Q1

2012 to 3,402 units in Q2. The proportion of

homes sold in the below $1,000 range also

increased from 35.2% to 55% from May to

June, suggesting the stabilising home prices.

Prices are unlikely to fall, however, especially

if the demand is sustained with help from the

low interest rates and affordable lumpsum

investment size of shoebox units.

Developer sales are driven mainly by the

mass-market projects in the Outside Central

Region (OCR), which accounted for 81% of

the 1,371 units sold in June, excluding ECs,

though it fell by 8% from May’s figures.



Sales in the Rest of Central region fell by

67.1% to 119 units while sales in the Core

Central Region increased by 4.4% to 141

units in the same period. If ECs are included,

the total number of units sold in June is 1,725,

a 16.3% fall from May but a 23.7% increase

from June 2011.

Three freehold residential sites up for sale

The first are two adjoining sites at Upper

Serangoon, asking for $40 million. Including a

$6.1 million development charge, the price

comes up to $934 psf. The total combined

land area of 42,846 sq ft (20,228-sq-ft from 1

Surin Avenue and 22,618-sq-ft from 790

Upper Serangoon Road) can potentially be

redeveloped into 3,500 sq ft to 5,000 sq ft 26

cluster terrace houses, which are attractive to

investors because of the higher rental yield of

4-5% compared to 3% for conventional landed

housing. The tender closes on Aug 15.

The second freehold site up for sale is

Chancery Garden, a mixed landed site in

District 11 which is asking for $45 million or

$1,527 psf. It consists of 10 apartment and

townhouse units in a three-storey block sitting

on a 29,468 sq ft site. Zoned for two-storey

mixed landed housing, a total of 18 units of

strata terraces, six strata semi-detached and

10 strata terraces, or other configurations can

be built on the site, subject to approval. Given

the site’s regular configuration and location, it

is expected to be very popular. The tender

closes at 3pm on Aug 23.

The final site is Kismis Lodge located at Toh

Tuck Road, which is asking for $90-95 million

or $1,281-1,352 psf. No development charge

is expected to be payable for the site which

consists of 64 walk-up apartments on a

70,283 sq ft site. Zoned for three-storey mixed

landed housing, the site can be redeveloped



into a combination of conventional terrace

houses, semi-detached houses and detached

houses; or cluster landed housing with strata

terrace houses, strata semi-detached houses

and strata bungalows with communal

facilities. Since the site has a regular layout

with four frontages, it is expected to be

popular among developers. The tender for

Kismis Lodge closes at 2.30pm on Aug 15.

Roxy-Pacific Holdings Limited buys

Sophia Mansions for $43.3m

Freehold 19-unit Sophia Mansions at Mount

Sophia was sold was sold to Roxy-Pacific

Holdings Limited for $43.3 million or $1,175

psf ppr based on the 2.1 gross plot ratio on

the 17,545 sq ft land area. There can be an

additional GFA of 1,105 sq ft built for

balconies without any development charge,

resulting in a $1,140 psf ppr land price. The

site is close to the Dhoby Ghaut MRT station,

and shopping malls such as Plaza Singapura

and The Pomo.

28 of 40 terrace houses released at 99-year

leasehold Haus@Serangoon Garden sold

28 of the 40 terrace houses previewed at

Haus@Serangoon Garden had been sold.

Prices for an intermediate terrace unit with a

1,615 sq ft land area costs $2.4 million while a

corner unit with a 2,284 sq ft land area costs

$2.8 million. There will be a total of 18 corner

units and 79 intermediate terrace houses,

each with two storeys, a basement and an

attic. 40% of the buyers live in the

neighbourhood.

Strong competition expected for Farrer

Road reserve list site

The 99-year leasehold site private housing

site at Farrer Road, near Botanic Garden MRT

Station, has been triggered for release at



$28.888 million. The 0.27- hectare site could

potentially be developed into 41,323 sq ft of

gross floor area, which can support 40 new

homes. The expected winning bid is in the

range of $950-$1,000 psf ppr from 10 to 15

bidders, with an expected selling price at

$1,800 to $1,900 psf since it has a prime

address and has a lowland price quantum of

around $40 million.

UIC to launch residential segment of V On

Shenton

100 to 200 units of the 510 residential units at

V On Shenton, a 99-year leasehold

commercial and residential development

located at Shenton Way will be launched at an

indicative pricing of $2,200 to $2,300 psf, with

the cheapest unit (under 500 sq ft) at under

$1 million. Unit sizes range from 441 sq ft to

474 sq ft for a studio apartment, 484 sq ft to

506 sq ft for one-bedroom units, 689 sq ft to

743 sq ft for one-bedroom-plus-study units,

883 sq ft to 1,033 sq ft for two-bedroom units,

1,055 sq ft to 1,216 sq ft for two-bedroom-

plus-study units, 1,356 sq ft to 1,765 sq ft for

three-bedroom units, and 3,315 sq ft to 7,255

sq ft for penthouses. The 53-storey residential

tower also offers a lap pool, gym, laundromat

and outdoor island kitchens, and city and sea

views for many of the higher-floor units, as

well as 588 car park lots, and six handicap

lots and three power charging lots. The

development is located near the Raffles Place

and Tanjong Pagar MRT stations, the Marina

Bay Financial Centre, Gardens by the Bay,

Singapore Flyer and Esplanade Theatres on

the Bay. None of the units in the23-storey

office tower of the development will be put up

for sale.



Commercial

AEW said to be selling Robinson Point

The 21-storey freehold CBD office block is

said to be sold to a small group of Asian

investors through sale of shares at $284

million or $2,132 psf based on its 133,214 sq

ft net lettable area. Its GFA reflects an 11.2

plot ratio, meaning that it has been developed

to its maximum potential. It can however, be

strata titled into smaller units and resold and

a profit.

Record sales registered for strata

commercial properties

A record high of 669 strata shops and 632

strata offices were transacted in H1 2012 and

may remain so. The strong sales for the first

half of this year were driven by the primary

market, which accounted for 66% of the

former’s sales and 72% of the latter’s sales.

Strata shop supply was mainly in the suburbs

last year, unlike this year, which are mainly in

the central region, bringing the average unit

price up by 24% to $3,273 psf. New strata

shops with longer tenures and good locations

also attracted buyers since they are

considered good long-term investments.

Meanwhile, older resale strata shops also

attracted buyers with their lower prices,

bringing the average unit prices up by 23% to

reach $2,825 psf in the secondary market,

despite a fall in sales volumes.

The primary sales transactions for strata

offices increased by 19 times from 2011 to

$814.9 million while the average unit price

increased by 56% to $2,129 psf, driven by the

increase in new strata office projects in the

CBD and smaller-sized strata office units. The

secondary market, however, saw a 24% fall in

transaction volume and lower average unit



prices of $1,706 psf.

Transaction volumes of shophouses

decreased by 25% to 132 units from last year,

possibly a result of the increase in unit prices

by 34% to $2,804 psf, bringing the overall

value of sales up by 4% to $674.6 million.

The commercial sector is likely to continue

seeing brisk sales and price increments,

especially for strata shops and shophouses in

good locations. However, investors may be

more cautious since office rents have been on

the decline.

Two adjacent Chang Charn Rd sites up for

sale

The two sites, at 8 and 10 Chang Charn

Road, are asking for $45 million. A quality six-

storey building with a built-up area of 34,907

sq ft sits on the 12,519 sq ft site at 8 Chang

Charn Road, while the 8,762 sq ft site at 10

Chang Charn Road consists a single-storey

detached factory and a two-storey office block

in front. The latter site has a 2.5 plot ratio and

an existing built-up area of 5,274 sq ft. The

two sites have a remaining tenure of 45 years

and are zoned Business 1. Given its central

location (near Redhill MRT Station),

redevelopment potential, and the lack of

supply of similar plots, the site is expected to

be popular.

http://www.moneymatters.sg/



Non-Landed Residential Resale Property Transactions for the Week of Jul 4 – Jul 10

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE CLIFT 829 2,326,400 2,807 99

2 ICON 560 1,031,000 1,842 99

3 THE METROPOLITAN CONDOMINIUM 775 1,150,000 1,484 99

3 REGENCY SUITES 980 1,350,000 1,378 FH

4 CARIBBEAN AT KEPPEL BAY 1,485 2,300,000 1,548 99

5 ONE-NORTH RESIDENCES 1,421 2,000,000 1,408 99

5 VENTANA 1,206 1,650,000 1,369 FH

5 JUBILEE RESIDENCE 495 670,000 1,353 FH

5 THE PARC CONDOMINIUM 980 1,290,000 1,317 FH

5 CARABELLE 1,259 1,535,000 1,219 956

5 THE STELLAR 1,389 1,680,000 1,210 FH

5 PALM MANSIONS 1,098 1,030,000 938 FH

5 THE INFINITI 1,281 1,130,000 882 FH

7 THE BENCOOLEN 958 1,230,000 1,284 99

8 CITYLIGHTS 570 1,000,000 1,753 99

8 CITYLIGHTS 678 1,040,000 1,534 99

8 CITYLIGHTS 1,841 2,650,000 1,440 99

9 CAIRNHILL MANSIONS 2,024 3,500,000 1,730 FH

9 ASPEN HEIGHTS 883 1,355,000 1,535 999

10 DUCHESS MANOR 1,163 2,050,000 1,763 999

10 ASTRID MEADOWS 3,810 6,500,000 1,706 FH

10 DUKES RESIDENCE 926 1,530,000 1,653 FH

10 VALLEY PARK 1,808 2,780,000 1,537 999

10 SOMMERVILLE PARK 1,066 1,600,000 1,501 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

11 PARK INFINIA AT WEE NAM 1,001 1,855,000 1,853 FH

11 SOLEIL @ SINARAN 1,453 2,580,000 1,775 99

11 AMANINDA 614 888,888 1,449 FH

11 M21 710 1,020,000 1,436 FH

11 THE SPINNAKER 1,302 1,682,000 1,291 FH

11 THOMSON 800 1,625 1,960,000 1,206 FH

12 TRELLIS TOWERS 1,485 1,785,000 1,202 FH

12 THE BELLEFORTE 1,335 1,490,000 1,116 FH

12 PARC HAVEN 1,464 1,597,800 1,091 FH

12 KEMAMAN POINT 861 902,000 1,047 FH

12 THE MORNINGTON 1,259 1,160,000 921 FH

13 WOODSVILLE MANSIONS 1,916 1,630,000 851 FH

14 MILL CREEK 775 858,000 1,107 FH

14 ATRIUM RESIDENCES 947 955,000 1,008 FH

14 ASTOR 861 795,000 923 99

14 CENTRAL MEADOWS 1,001 910,000 909 FH

14 SUNNY GROVE 1,033 820,000 794 FH

14 WING FONG COURT 1,087 815,000 750 FH

14 WING FONG MANSIONS 1,227 830,000 676 FH

14 SIMS GREEN 2,056 1,215,000 591 99

15 ONE FORT 1,206 1,760,000 1,460 FH

15 KATONG PARK TOWERS 1,475 1,650,000 1,119 99

15 TEMBELING COURT 1,324 1,305,000 986 FH

15 MANDARIN GARDEN CONDOMINIUM 1,528 1,485,000 972 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.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

16 CASA MERAH 958 1,110,000 1,159 99

16 BAYSHORE PARK 936 895,000 956 99

16 SUNHAVEN 1,259 1,200,000 953 FH

16 CHANGI COURT 1,389 1,228,000 884 FH

16 AQUARIUS BY THE PARK 1,227 1,080,000 880 99

16 THE CLEARWATER 2,303 1,880,000 816 99

16 BEDOK COURT 2,271 1,850,000 815 99

16 TANAMERA CREST 1,206 970,000 805 99

17 COASTAL VIEW RESIDENCES 1,163 1,220,000 1,049 999

17 EDELWEISS PARK CONDOMINIUM 947 855,000 903 FH

17 CARISSA PARK CONDOMINIUM 1,324 1,125,000 850 FH

18 TAMPINES COURT 1,668 1,038,000 622 101

19 CENTRAL VIEW 1,259 1,050,000 834 99

19 REGENTVILLE 1,076 839,000 779 99

19 RIVERVALE CREST 1,206 888,000 737 99

20 BOONVIEW 646 810,000 1,254 FH

20 THE GARDENS AT BISHAN 1,227 1,210,000 986 99

20 BRADDELL VIEW 1,701 1,350,000 794 99

20 BISHAN PARK CONDOMINIUM 1,507 1,130,000 750 99

21 MAPLEWOODS 1,324 1,787,400 1,350 FH

21 THE NEXUS 1,335 1,668,750 1,250 FH

21 BINJAI PARK 1,033 1,255,000 1,215 999

21 SIGNATURE PARK 1,701 1,800,000 1,058 FH

21 SIGNATURE PARK 1,701 1,708,000 1,004 FH

21 SIGNATURE PARK 1,421 1,400,000 985 FH

21 HILLVIEW GREEN 1,593 1,480,000 929 999

21 REGIS MANSIONS 1,206 988,888 820 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

22 THE CENTRIS 1,152 1,250,000 1,085 99

23 CASHEW HEIGHTS CONDOMINIUM 1,658 1,638,000 988 999

23 MERAWOODS 1,938 1,880,000 970 999

23 CASHEW PARK CONDOMINIUM 1,819 1,568,000 862 999

23 REGENT HEIGHTS 1,173 885,000 754 99

25 CASABLANCA 947 765,000 808 99

26 SEASONS PARK 1,292 1,000,000 774 99

27 SELETARIS 1,636 1,300,000 795 FH

27 SELETARIS 1,636 1,280,000 782 FH

27 SELETARIS 1,636 1,260,000 770 FH