singapore property weekly issue 186

8/10/2019 Singapore Property Weekly Issue 186

1/14

Issue 186Copyright 2011-2014 www.Propwise.sg . All Rights Reserved.
http://www.propwise.sg/http://www.propwise.sg/


2/14


3/14

SINGAPORE PROPERTY WEEKLY Issue 186

Page | 2Back to Contents

By Property Soul (Guest Contributor)

I picked up a copy of The Star while travelingin Malaysia recently. The article on the frontpage titled 'Malaysia's property sector coolingoff' caught my attention. It quotes the findings

of the first half 2014 Property Industry Surveyconducted by the Real Estate and HousingDevelopers Association of Malaysia.

How bad are the numbers?

- Close to 90 percent of respondents

experienced a slowdown in property salesdue to cooling measures announced inBudget 2014.

Tough Times Ahead for Iskandar and Malaysia Properties


4/14



- While 84 percent of developers were able toget bridge financing for their projects, 53percent of their buyers faced challengesgetting financing to buy the properties.

- Properties priced below RM1 million wereleft unsold because of buyers difficulty to getfinancing and a glut of unreleased bumiputralots.

- 31 percent of properties priced between

RM500,001 and RM1 million, mainly inSelangor and Johor, were left unsold after completion in the past three years.

- 34 percent of properties priced betweenRM250,000 and RM500,000, mainly in Perak

and Pahang, were left unsold.- 10,189 units were launched in the first half of this year but only 49 percent were takenup.

- Over 80 percent of respondents held aneutral to pessimistic outlook for theproperty market in the first half of 2015.

How does the situation compare withSingapore?

In Singapore, according to the latest figuresfrom URA, as of end of 2nd quarter 2014, thevacancy rate of completed projects is 7percent for private residential units and 12

percent for Executive Condominiums. For projects under construction, 15 percent of private residential units launched were stillunsold while 34 percent of the total number of units were unsold as of August 2014.

Across the Causeway, the outlook of theproperty market looks even gloomier.It is thefirst time in recent history of the Malaysiaproperty sector that less than 50 percent of units launched can be sold in a half-year


5/14



period. For units completed in the past threeyears, over 30 percent are still left on theshelves.

What seem to be the problems?There are four reasons behind the coolingproperty sector in Malaysia:

1. Oversupply in the market

According to Malaysia s Valuation and

Property Services Department, land pricesand launch prices of residential propertieshave doubled from 2011 to 2013. With somany projects launched during this period,there will be a huge supply of completedresidential units flooding the property market

in the next two to four years.

From 2011, developers jumping on thebandwagon build upscale residential projectsin Johor, Selangor and Penang. Evenoverseas developers, including Chinadevelopers, rushed to the country to diversifytheir investment.


6/14


7/14



For Singapore investors, they also findthemselves at the mercy of the volatilerelationship between the two countries ondisputes over different issues like tolls,borders or water.

The weaker Malaysian currency is a double-edged sword. The current exchange ratemakes it look very attractive to own aproperty in Malaysia. But no one can

guarantee that the ringgit won t continue toweaken and will work against you when youwant to exit the market one day.

4. Where is the resale market?

According to Malaysia s Ministry of Finance,in the first half of 2013, only 1.5 percent of property transactions was above RM1 millionin the Johor state. Those bought before 2014with prices lower than RM1 million will have to

wait for their properties to rise above thatmagic value of RM1 million until they can sellto foreign buyers.

Unlike Singapore, Iskandar is a test bed butnot a tested market. Until recently, we haveseen active buying but not active selling.

If one day properties with prices over RM1million drop below the magic number of RM1million, with all foreigners ineligible to buy,even if the locals are interested to take over,


8/14



how many of them can afford the highquantum of these properties?

So stop asking me what I think of Malaysia or Iskandar properties. When everybody istalking about a hot market, it s not the time tobuy. It s time to sell.

And don t ask me again which project there isa good investment. Properties in any countrycan be a good investment. The key is the

time and the price you enter the market. Thatis exactly the homework property investorsneed to do before they buy anything in anymarket.

By guest contributor Property Soul, asuccessful property investor, blogger , and author of the No B.S. Guide to PropertyInvestment .

S GA O O 186
http://propertysoul.com/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://www.anthonyrobbinssg.com/propwisehttp://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://propertysoul.com/


9/14


Singapore Property This Week


ResidentialR en t s f a l l i ng a t P r i va t e C ondos and HDB

Flats

Rents of private condominiums continue tosoften and are expected to continue to do sonext year due to a looming excess of supply.SRX Property flash estimates indicate a 0.8%drop in rental prices, continuing the trend indecline of rental prices. The rental decline ismore severe in the suburbs at 1.2%; with adecrease of 0.3% for city apartments and

0.7% for fringe units. Accompanying thisrental decline is also a drop in the number of available units for rent, with older units beingaffected more than newer units.

On the other hand, the HDB rental market isperforming better due to shrinkage of expatriates' housing budgets, as well as therestriction faced by new Singapore PRs dueto a 3 years waiting period. SRX propertyshows HDB rents decreased by 0.1%, animprovement compared to the 0.5% fall inOctober.

(Source: Business Times)

Private proper ty ren ts and pr ices forecas t

to fal l 5 to 10 percent in 2015

As it is unlikely for the property coolingmeasures to be removed anytime soon,market watchers have predicted that propertyprices could fall by another 5 to 10 percent in2015.


10/14

SINGAPORE PROPERTY WEEKLY I 186


11/14



This year, landed homes make up 11.9% of mortgage listings, while non-landed homesstill comprise the majority of mortgageelistings at 65.4%. While high-end properties in

the prime districts were hit hard by theproperty cooling measures, there have beensigns of shoebox apartments surfacing in theauctions as well.


Number but no t pr ices of shophouse deal s are fall ing

The number and dollar value of shophousetransactions have fallen by about half year onyear due to tighter loans, falling yields andinvestor interest. But prices in the CBD havenot fallen as sellers are not stressed.

A CBRE analysis shows that total shophousetransactions year to date have hit $548 million

over 101 caveats, versus $1.27 billion and206 caveats in 2013. Current prices inDistricts 1 and 2 in the CBD are between$2,200 and $2,500 psf of GFA, depending on

land tenure, up from the $1,800 to $2,200 psf around May to June last year. Net yields havefallen for such properties from the 3 to 3.5percent of 1Q13 to the current 2 to 2.5percent.


HDB to revise Resale Price Index

Starting from 4Q14, the HDB is expandingcoverage of its Resale Price Index (RPI) to alltowns and flat models, and adopting a newmethod called stratified hedonic regressionto calculate the RPI, which should moreaccurately measure price changes. JTC andURA are also looking into reviewing their indices.


12/14



13/14



The overall occupancy rate is above 80percent and the mall has Sheng Siong as ananchor tenant.

Submissions of Expressions of Interest aredue on Jan 27, 2015 at 3pm, and JLL hasbeen exclusively appointed for the sale.


http://propertymarketinsights.com/


14/14



Non-Landed Residential Resale Property Transactions for the Week of Nov 26 Dec 2

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 a purchasersigns an OTP, hence the lagged nature of the data.

PostalDistrict

Project NameArea(sqft)

TransactedPrice ($)

Price($ psf)

Tenure

3 DOMAIN 21 926 1,350,000 1,458 994 CARIBBEAN AT KEPPEL BAY 1,270 1,873,250 1,475 994 THE BERTH BY THE COVE 3,315 4 ,880,000 1,472 995 THE ROCHESTER 861 1,242,000 1,442 995 THE INFINITI 1,238 1,080,000 872 FH8 CITYLIGHTS 926 1,430,000 1,545 999 PATERSON RESIDENCE 4,123 6,400,000 1,552 FH9 EMILY RESIDENCE 721 1,068,000 1,481 FH9 CITYVALE 1,281 1,800,000 1,405 FH

10 MONTVIEW 1,744 2,500,000 1,434 FH10 THE LEVELZ 1,464 1,800,000 1,230 FH11 PARK INFINIA AT WEE NAM 1,442 2,980,000 2,066 FH11 L'VIV 2,002 3,880,000 1,938 FH14 EUNOSVILLE 1,733 1,140,000 658 10214 EUNOSVILLE 1,679 1,025,000 610 10215 RIVEREDGE 1,066 1,600,000 1,501 9915 HERITAGE EAST 506 750,000 1,482 FH15 THE ESTA 1,399 2,010,000 1,436 FH15 SANDALWOOD 872 1,070,000 1,227 FH15 RIVEREDGE 1,335 1,570,000 1,176 9915 FERNWOOD TOWERS 1,636 1,550,000 947 FH15 EVERITT GREEN 1,270 1,200,000 945 FH16 CASA MERAH 1,227 1,360,000 1,108 9916 CASA MERAH 1,550 1,660,888 1,072 99

PostalDistrict

Project NameArea(sqft)

TransactedPrice ($)

Price($ psf)

Tenure

16 SUNHAVEN 1,292 1,228,000 951 FH17 BALLOTA PARK CONDOMINIUM 1,432 980,000 685 FH17 LOYANG VALLEY 1,485 970,000 653 9917 LOYANG VALLEY 1,862 1,160,000 623 9918 NV RESIDENCES 1,184 1,180,000 997 9918 CHANGI RISE CONDOMINIUM 1,496 1,300,000 869 9918 CHANGI RISE CONDOMINIUM 1,259 1,070,000 850 9919 THE QUARTZ 1,066 1,018,888 956 9919 REGENTVILLE 1,335 1,080,000 809 99

20 BISHAN 8 1,173 1,300,000 1,108 9920 THOMSON V ONE 764 840,000 1,099 9921 SPRINGDALE CONDOMINIUM 1,345 1,450,000 1,078 99921 PARC PALAIS 1,335 1,320,000 989 FH22 THE MAYFAIR 1,206 1,000,000 829 9923 TREE HOUSE 1,410 1,530,000 1,085 9923 HILLINGTON GREEN 1,356 1,400,000 1,032 99925 CASABLANCA 1,119 935,000 835 9927 EUPHONY GARDENS 732 680,000 929 99

28 SUNRISE GARDENS 1,281 900,000 703 99

singapore property weekly issue 186

Documents