singapore property weekly issue 31

8/3/2019 Singapore Property Weekly Issue 31

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Issue 31Copyright 2011 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 Singapore Property News This Week

p10Property Market Outlook 2012 A Wrap Up

p15Resale Property Transactions

(December 3 December 9)

p17 Singapore Property Classifieds #21

Welcome to the 31th edition

of the Singapore Property

Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:[email protected]


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SINGAPORE PROPERTY WEEKLY Issue 31

Singapore Property This Week

Page | 2Back to Contents

Residential

A need for clearer ABSD guidelines

The Additional Buyer's Stamp Duty (ABSD) is

the latest governmental measure aimed at

cooling the residential market. The ABSD is

imposed on foreigners and companies buying

any residential property (including residential

land), permanent residents buying their

second and subsequent property and

Singapore citizens buying their third and

subsequent property at 10%, 3% and 3% of

the purchase price or market value, whichever

is higher, respectively. This measure to restrict

investment purchase of residential properties

is in addition to the extension of the Seller's

Stamp Duty (SSD) on residential properties

acquired on or after Jan 14, 2011 and sold

within four years of acquisition, with the duty

being 16%, 12%, 8% and 4%respectively for

properties sold in the first, second, third and

fourth year after acquisition.

The ABSD and SSD have different impacts on

licensed and non-licensed developers.Licensed developers need not pay an SSD

when selling residential properties developed

by them and if they complete and sell all the

residential units within five years, they need

not pay an ABSD either. Non-licensed

developers need not pay an SSD if they areregistered companies or businesses and are

lawfully carrying on the business of housing

development but non-licensed developers


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who buy land that is not capable of being

developed into at least five residential units

have to pay an ABSD.

Allowing remission by licensed developerseliminates the additional cost to the project

since the ABSD is targeting end-buyers; not

allowing remission for non-licensed developer

will increase the cost of developing small sites

of between two and four residential units,

disadvantaging owners of small land plot inboth landed and non-landed housing areas.

The latter would have been spared the ABSD

should there not be a minimum plot size

requirement of 1,000 sqm for new flat

development island-wide on Nov 23, 2011.

Whether the land plot will be affected by theABSD also depends on what form of landed

housing they have been safeguarded for. In

mixed landed housing and non-landed

housing areas for cluster terrace housing

development, landed housing areas for semi-

detached house and bungalow, the minimum

land area required to build five units are 750

sqm, 1,200 sqm and 2,000 sqm respectively.

Should the plot size be smaller, the developer

has to pay the ABSD. Good Class Bungalow

areas have an additional requirement of 34m

plot width in addition to the minimum plot area

of 7000 sqm.

Even when using one's personal name topurchase such property, one cannot avoid

paying the additional stamp duty since

individuals cannot apply for remission of the

SSD. As such projects usually take at least

two years for completion; the SSD he has to

pay is 8%, higher than the 10% ABSD he hasto pay. It is also possible to amalgamate the

plot with neighbouring plots so that it can be

developed into at least five residential units

but this depends on whether the owners of


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these plots are willing to cooperate.

The ABSD is likely to drive up the prices for

landed housing rather than lowering it, since

developers may be less willing to take on new

landed housing projects, leading to a smaller

supply.

ABSD aims to curb investment demand of

private residential properties and is targeted

at end buyers but owners of small land plotshave also suffered because demand for their

land comes from non-licensed developers

disadvantaged by the ABSD. Non-licensed

developers are not treated the same under

the SSD as a licensed developer under the

ABSD despite having the same conditionsattached - proof of piling and foundation works

within two years and all units to be disposed

of within five years.

Clearer guidelines on ABSD are also needed

for certain cases such as industrial properties

in Hillview and Jalan Ampas, commercial and

hotel properties which can be changed toresidential use. ABSD also needs to make

clear on what will be considered the material

date of acquisition if there is amalgamation

with land bought much later. There are also

questions of whether a piece of land

purchased by an individual is considered athird property. Developers may also find

themselves in a situation where they bought a

piece of land with a proposal for a five-unit

project but URA does not approve, resulting in

them owing the ABSD.

HDB resale prices to decrease by 1-5%

Despite the expected marginal decrease of

the COVs (cash-over-valuation) which could


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lead to a slight decrease of HDB resale prices

by 1-5%, the prices for HDB resale are likely

to be stable otherwise. However, there are

also analysts who believe that resale prices

are likely to increase by 5-6% for the first half

of 2012, given the limited supply in the

market.

The limited supply might have been due to

new policies implemented. One policy

requires private property owners who buyresale flats to dispose of their private homes

within six months of the resale purchase. The

Minimum Occupation Period (MOP) of non-

subsidised flats was also increased from three

to five years, resulting in HDB upgraders

reluctance to sell their HDB flats for fear ofnot being able to purchase another in the

future. Instead, they will likely rent out their

flats, limiting the supply of resale flats.

With the raising of income ceiling and

increased supply for ECs and BTO flats,

many buyers (including first-time buyers) may

turn away from resale flats to ECs and BTOs

instead. However, home buyers may still opt

for resale flats as they are better accessibility

to amenities and larger floor area.

The ABSD which may cause prices for private

housing to drop may also result in less

transactions in the resale market when homebuyers who previously cannot afford private

housing now finding it affordable.

Two 99-year leasehold projects drawing

Singapore buyers

While developers are worrying over whetherthey ought to release new projects since the

introduction of the ABSD, the two developers

of The Hillier in the Hillview area and


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The Nautical in Sembawang have decided to

preview these two projects.

Far East Organization, the developer of The

Hillier has collected more than 100 chequesfor its 500 to 800-plus sq ft apartments with a

flexible floor plan and a 3.4-metre ceiling

height, mainly from Singaporeans. The mixed-

use development with 528 Soho apartments

above a two-storey retail and lifestyle podium

is located near the future Hillview MRTstation. It achieved an average price of $1,150

psf, after absorption of the standard

3%buyer's stamp duty and a furniture

voucher.

Hao Yuan Investment, developer of The

Nautical located at Jalan Sendudok in

Sembawang, have issued options for about

50-plus units. The buyers are mainly

Singaporean HDB upgraders. After a 5%

early-bird discount, the average price for the

435-unit five-storey project consisting of one,

two, three and four-bedroom units and

penthouses (including 32 dual- key units) is

about $860 psf. A typical unit without private

enclosed space or roof terrace will cost

between $850-880 psf on average. Absolute

prices range from $409,000 for a 420 sq ft

one-bedder t o slightly over $1.5 million for a

1,916 sq ft penthouse.

3 residential sites potentially yielding 1,325

units released by URA

The three sites released by URA could

potentially yield 1,325 units, bringing the total

number of units launched for sale under the

Government Land Sales (GLS) programme in

2011 to around 22,900 units and providing

developers and home-buyers more choices

for private housing.

SINGAPORE PROPERTY WEEKLY I 31


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The two 99-year leasehold sites - one at

Bedok South Avenue 3 and the other at

Jervois Road are released under the

confirmed list of the government land sales

programme for the second half of 2011.

The first site located next to Bedok Court and

near the MRT has a 647,491 sq ft maximum

gross floor area, and is expected to yield

about 595 units. The winning bid is predicted

to be around $470 to $500 psf with a potential

selling price of $1,000 to $1,050.

The latter located at Jervois Road has a

maximum gross floor area of about 135,000

sq ft, and is expected to yield 140 units. Being

smaller than the first site, it is expected to

garner good response with the winning bid at

$900 to $950 psf and a potential selling price

of $1,600 to $1,650.

The third site a 99-year leasehold site at Boon

Lay Way offered under the reserve list. It has

a maximum gross floor area of 523,879 sq ft

and could yield around 590 units. While being

an attractive site with its easy accessibility to

Jurong East MRT station, the ABSD may

deter developers from triggering the site.

Tender for sites at Jervois Road and Bedok

South Avenue 3 will close at 12 noon on Feb 2

and 9, respectively.

Commercial

JTC launched CPT for fifth phase ofFusionopolis

A concept and price tender (CPT) for the fifth

phase of Fusionopolis has been launched by

JTC Corporation. Based on a two-envelope

system where the price and non-price criteria

are evaluated separately, the tender for the

207,560 sq ft 60-year leasehold site located

above the one-north MRT station may not be

given to the highest bidder.

SINGAPORE PROPERTY WEEKLY I 31


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The site has a 3.5 plot ratio, with a maximum

of 15% of its 726,456 sq ft maximum gross

floor area allowed for commercial type

activities. The site is likely to draw good

response as a result of its location, being nearan MRT station and major expressways. It

also has a higher potential yield since it is a

mixed use site.

Freehold MacPherson industrial site up for

sale

The 30,157 sq ft freehold site located at the

junction of MacPherson Road and Howard

Road is asking for between $33 million and

$35 million, or $438 to $464 psf ppr. With a

2.5 plot ratio of, the allowable gross floor area

is around 75,393 sq ft. It could beredeveloped into 66 industrial strata units,

assuming an average 1,000 sq ft unit size and

an 88% building efficiency. Zoned 'Business

1', the site near Tai Seng MRT

station is suitable for various uses, such as

light industry, clean industry or

telecommunications. Bids are expected to be

in the range of $350 to $450 psf ppr, with

potentially five or less bidders as a result ofthe sites long and narrow layout. However,

there may be a better response if the market

shows that the rental yield could be between 4

to 6%.

The tender for the site will close on Jan 12, at

3pm.

Landlords offering more incentives to

attract tenants

Given the slowing office leasing market as a

result of increased supply and decreased

demand from the global economic uncertainty,landlords are expected to offer more

incentives such as rent-free periods and fit-out

capital contributions in the first half of 2012.



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They may also offer more flexible lease terms.

Agent commissions for a two or three-year

lease have also been increased from one

month's rental to between 1.2 months and two

months' rent. Some may even adjust the rentsto market rates. There are different predictions

as to how the market would fare, with some

expecting a 15% contraction of rents while

others expecting a less dramatic change.

Prime retail rents to stay stagnant next

year

The retails rents have remained stagnant in

Q4 2011, and the prime retail rent is likely to

be flat the next year. The Q4 average gross

fixed rent of prime first-storey space in the

Orchard/Scotts Road area was $40.20 psf permonth, the same as Q3s and a 1% year-on-

year increase. There has been less demand

for retail spaces as retailers have more

considerations about expanding and selecting

new spaces as a result of the economic

outlook, but there are new tenants in the form

of international retailers seeking to expand in

Asia and escape the lower consumer demandin the West.

Stable rents are predicted for Q1 next year,

with a potential decrease after that, which may

be alleviated b y expected increased retail

sales, tourism and limited stock.

Rents in prime, first-storey retail space in other

city areas as well as suburban areas remained

unchanged in Q4, the latter as a result of

increased supply. The supply is expected to

continue to increase to around 4.6 million sq ft

of net lettable area from 2012 to 2016, withmore than 50% in suburban areas, restricting

the suburban retail rental growth next year.



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Property Market Outlook 2012 A Wrap Up

By Mr. Propwise

As 2011 comes to an end (how time flies!), we

polish our crystal ball, take stock of the key

takeaways from some of our previous articles,

and try and peer into 2012 to see what the

new year will bring for the Singapore property

market.

Worrying trends in 2011

In a previous article Worrying Trends in the

Singapore Property Market I highlighted four

disturbing trends in the Singapore market:

1. HDB prices are rising faster than private

property prices

2. Private home buyers are in a cautious

mood, especially in the high end segment

3. Developers are turning cautious too

4. Investors are going into industrial and

commercial properties

I think these trends are signalling that we are

near a turning point in the property bull

market. The insiders are turning cautious

while the man on the street averageinvestors are still rushing in. Middle income

families are rushing to buy high-priced HDB

flats and mass market residential properties

and small-time investors are snapping up

shoebox industrial units with a fairly

ambiguous rental market. At the same timethe wealthy and developers (the insiders)

are turning cautious on the market, and the

weakening global economic situation means

http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/http://www.propwise.sg/recent-trends-in-the-singapore-property-market/


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that the yields of the industrial and commercial

properties could be at risk. Which group do

you think has a better grasp of what is going

on in the market?

Property market turning point likely in 2012

The argument that we are reaching a turning

point in the market is also backed up by the

eight straight quarters of decelerating growth

in the URAs Property Price Index till 3Q11,

which is likely due to concern over the slowing

economy, worrying global economic situation

especially with the troubles in Europe and

weak growth in the US, combined with thedampening effect of the government

measures.

We had previously seen this decelerating

price growth trend preceding the property bearmarkets that began in 3Q2000 and 3Q2008

(but not the one in 3Q1996).

Property consultant and developer Getty Goh

is also calling for a property bear market

based on his proprietary Ascendant Assets

Indicator.

http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/property-outlook-for-the-next-few-months-%e2%80%93-an-update/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/http://www.propwise.sg/singapore-property-prices-still-rising-%e2%80%93-but-at-a-slowing-pace/


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To recap, the basic premises of the AAI are

(1) there is a lead-lag relationship between

the stock and property market and (2) we are

able to tell how the property market is

performing by analysing the correlation

between the stock and property market.

Based on the URAs 3Q11 numbers the AAI

has dropped, indicating a change in market

sentiments. Simplistically speaking, we can

observe that the URA PPPI index in theyellow zone after each green zone has

contracted during the last two cycles (red

boxes), and it is probable that it will do so

going forward.

And I believe that the Governments recent

announcement of the Additional Buyers

Stamp Duty (ABSD) will be the straw that

breaks the camels back. The impact of the

ABSD is that the transaction cost for investors

http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/secretsofsingaporepropertygurus/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/http://www.propwise.sg/additional-buyer%E2%80%99s-stamp-duty-%E2%80%93-the-straw-that-breaks-the-camel%E2%80%99s-back/


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will increase substantially, killing investment

demand. Thus transaction volumes will fall

and prices are likely to be impacted.

Foreigners will shrink as a percentage of all

buyers, with the impact on the high-endmarket larger than for the other segments.

How much will prices fall?

Beyond just the price movement, we have to

worry about things like the large upcoming

supply of completed private and publichousing that may flood the market and

global economic uncertainty due to the

troubles in the U.S. and Europe.

So while Im pretty confident that property

prices will not increase significantly (if at all) in

2012, it is much harder to predict the amount

of downside in the market. There are also

supportive forces in the market, including the

current low interest rate environment, and

foreign investor perception of Singapore as a

safehaven to park their money in.

Thus while we can know with some certainty

what the medium term supply is going to look

like, the big unknown is demand. Demand is

influenced by many factors market

sentiment, unemployment levels, immigration

policy of the government etc. In fact, some

analysts have argued that the upcoming surge

in supply will not cause property prices to fall.

So if youre expecting prices to fall

significantly, dont hold your breath as it may

not happen.

Getty Goh thinks that the best-case scenario

is that private property prices remain stable

while non-residential property prices could stillincrease, but it is possible in the worst-case

scenario for Singapore property prices for all

sectors to tank.

http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/a-look-back-on-2011-and-looking-forward-to-2012/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/http://www.propwise.sg/will-the-upcoming-supply-cause-property-prices-to-fall/


15/18



As I have been doing for a while, I caution all

investors to study the market carefully before

and do your sums before committing your

hard earned cash and credit to a propertyinvestment. The outlook for 2012 may seem

especially uncertain, but for the well-prepared

investor, it may be a year of great bargains as

well!

http://www.propwise.sg/how-to-calculate-your-property%e2%80%99s-return-on-investment/http://www.moneymatters.sg/http://www.propwise.sg/how-to-calculate-your-property%e2%80%99s-return-on-investment/http://www.propwise.sg/how-to-calculate-your-property%e2%80%99s-return-on-investment/http://www.propwise.sg/how-to-calculate-your-property%e2%80%99s-return-on-investment/http://www.propwise.sg/how-to-calculate-your-property%e2%80%99s-return-on-investment/http://www.propwise.sg/how-to-calculate-your-property%e2%80%99s-return-on-investment/


16/18



Non-Landed Residential Resale Property Transactions for the Week of Dec 3 Dec 9

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 THE SAIL @ MARINA BAY 1,184 2,604,800 2,200 99

1 THE SAIL @ MARINA BAY 667 1,334,000 1,999 99

1 THE SAIL @ MARINA BAY 861 1,584,240 1,840 99

1 PEOPLE'S PARK COMPLEX 1,119 800,000 715 99

3 THE METROPOLITAN CONDOMINIUM 721 1,100,000 1,525 99

3 TWIN REGENCY 1,776 2,532,800 1,426 FH

3 YONG SIAK VIEW 980 1,135,000 1,159 FH

3 THE ANCHORAGE 1,765 1,900,000 1,076 FH

4 CARIBBEAN AT KEPPEL BAY 893 1,405,000 1 ,573 99

7 BURLINGTON SQUARE 829 1,070,000 1,291 99

8 CITY SQUARE RESIDENCES 570 900,000 1,578 FH

9 VISIONCREST 915 1,820,000 1,989 FH

9 WATERMARK ROBERTSON QUAY 1,066 1,998,000 1,875 FH

9 CAIRNHILL PLAZA 3,305 5,575,000 1,687 FH

9 8 @ MOUNT SOPHIA 1,109 1,850,000 1,669 103

9 8 @ MOUNT SOPHIA 1,550 2,380,000 1,535 103

9 ASPEN HEIGHTS 1,593 2,280,000 1,431 999

9 TOWNHOUSE APARTMENTS 3,175 3,100,000 976 99

10 MELROSE PARK 1,701 2,866,185 1,685 999

10 STUDIO 3 549 900,000 1,639 FH

10 VALLEY PARK 818 1,170,000 1,430 999

10 VALLEY PARK 1,249 1,780,000 1,426 999

10 RIDGEWOOD 2,002 2,250,000 1,124 999

11 PAVILION 11 1,485 2,130,000 1,434 FH

11 THE TREVOSE 1,281 1,600,000 1,249 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

11 THE ARCADIA 3,757 3,980,000 1,059 99

12 PINNACLE 16 581 855,000 1,471 FH

12 THE BELLEFORTE 1,335 1,408,000 1,055 FH

12 ROCCA BALESTIER 1,109 1,060,000 956 FH

13 BLOSSOMS @ WOODLEIGH 1,195 1,365,000 1,142 FH

14 VISTAYA VIEW 1,076 1,165,000 1,082 FH

14 THE HELICONIA 1,345 1,224,860 910 FH

14 ESCADA VIEW 1,356 933,000 688 FH

14 WING FONG MANSIONS 1,130 760,000 672 FH

15 ONE AMBER 570 950,000 1,665 FH

15 OCEAN PARK 2,110 2,320,000 1,100 FH

15 CELESTIA 1,367 1,350,000 988 FH

15 MANDARIN GARDEN CONDOMINIUM 1,572 1,450,000 923 99

15 THE TREELINE 1,884 1,550,000 823 FH

16 COSTA DEL SOL 1,561 2,290,000 1,467 99

16 CASA MERAH 1,227 1,288,888 1,050 99

16 CHANGI COURT 969 940,000 970 FH

16 LAGUNA GREEN 1,701 1,585,000 932 99

16 CHANGI COURT 1,184 1,000,000 845 FH

16 TANAH MERAH MANSION 904 750,000 829 FH

16 EAST MEADOWS 1,335 1,080,000 809 99

16 EASTWOOD CENTRE 1,012 735,000 726 99

16 KEW GREEN 3,025 1,980,000 655 99

17 ESTELLA GARDENS 958 753,000 786 FH

17 ESTELLA GARDENS 1,259 945,000 750 FH



17/18


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

18 RIS GRANDEUR 1,356 1,220,000 900 FH

18 MELVILLE PARK 1,066 795,000 746 99

18 MELVILLE PARK 1,206 810,000 672 99

18 MELVILLE PARK 1,345 902,000 670 99

18 ELIAS GREEN 1,528 930,000 608 99

18 TAMPINES COURT 1,701 980,000 576 101

19 THE QUARTZ 1,195 1,185,500 992 99

19 THE QUARTZ 1,066 1,028,000 965 99

19 THE QUARTZ 1,163 1,080,000 929 99

19 HOUGANG GREEN 764 660,000 864 99

19 COMPASS HEIGHTS 1,550 1,295,000 835 99

20 BRADDELL VIEW 1,561 1,150,000 737 99

21 SUMMERHILL 1,259 1,310,000 1,040 FH21 ASTOR GREEN 1,066 1,080,000 1,013 99

21 SPRINGDALE CONDOMINIUM 1,130 1,055,000 933 999

21 PINE GROVE 1,755 1,580,000 901 99

21 SHERWOOD TOWER 1,561 1,250,000 801 99

23 NORTHVALE 1,259 980,000 778 99

23 THE MADEIRA 1,356 988,000 728 99

27 THE SENSORIA 1,076 908,000 844 FH

27 YISHUN EMERALD 990 758,000 765 99

27 SEMBAWANG COTTAGE 1,884 1,180,000 626 FH

http://www.propwise.sg/advertise/


18/18

Singapore Property Classifieds # 21

For Sale


D23 FREEHOLD TERRACE @ HILLVIEW2 sty, 4BR+maid room, Land 2222sf Buildin approx 2800sf. Move in condition. CallMd Alman 91090033 to view

Bliss Residences @ Kembangan. FH1500+sf 3+1BR Penthouse. Only$1000psf. 1 min to MRT, 15 min to CBD.Rooftop pool and BBQ. TK Tan 98206228.
http://www.propwise.sg/advertise

singapore property weekly issue 31

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