singapore property weekly issue 64

7/31/2019 Singapore Property Weekly Issue 64

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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

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Ascendant Assets Pte. Ltd. or

Getty Goh, who is a guest

contributor.
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SINGAPORE PROPERTY WEEKLY Issue 64

4 Painful Lessons From a Loss-Making Property

Page | 2Back to Contents

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


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.


SINGAPORE PROPERTY WEEKLY I 64


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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.


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

SINGAPORE PROPERTY WEEKLY I 64


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Lorong 5 Toa Payoh which can be used for

display purposes. The exercise closes at 3pm

on Sept 18.


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.


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.


http://www.propwise.sg/secretsofsingaporepropertygurus/


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http://www.smartexpos.com/sg


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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


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


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


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


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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singapore property weekly issue 64

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