Singapore Property Weekly Issue 93 To 126 PDF

Issue 126
Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.
CONTENTS
FROM THE
EDITOR
p2
How to Value Strata-Title Commercial Property
p11
Singapore Property News This Week
p17
Resale Property Transactions
Welcome to the 126th edition of the

Singapore Property Weekly.
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(October 2 October 8)
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SINGAPORE PROPERTY WEEKLY Issue 126
How to Value Strata-Title Commercial Property

By Argus Software
On the back of low interest rates and strong
market liquidity, transaction volumes of
commercial strata-titled units in both the
primary and secondary property markets
have risen tremendously. Cooling measures
in the residential sector have also diverted
yield
hungry
investors
towards
the
commercial property sectors. As a result,
property developers have started to ride on
the wave of investor interest and strata-sell
units in commercial developments instead of
leasing them out for recurring income.
Back to Contents
Page | 2

Impact
of
the
TDSR
on
commercial
property sales
more concerned about the future cash flows
In June 2013, the Singapore government

announced the implementation of a Total
Debt Servicing Ratio (TDSR) framework,
which requires the application of a 4.5%
medium-term interest rate or the prevailing
market interest rate, whichever is higher, to
the
commercial
pipeline supply in the market, investors are
property
loan
that
the
borrower is applying for. According to DTZ

Research, the number of strata-titled shop
and factory resale transactions fell by around
67% and 50% quarter-on-quarter respectively
in Q3 2013, partly due to the TDSR
framework.
generated and the potential appreciation of

their investment. Likewise, property agencies
in charge of marketing such commercial

strata-titled projects also feel a stronger need
to provide more details in their analysis for
clients.
Case study: Nine Residences
Huttons
Group,
property
agency
in
Singapore, has been appointed to market

Nine Residences, an upcoming 99-year
leasehold mixed development located at
Yishun Avenue 9. The developer has

decided to strata-title the two-storey retail
As the operating environment becomes more
component (Junction Nine) into 146 units for
challenging
sale.
with
stricter
financing
rules,
potential higher interest rates and large
Back to Contents
Page | 3

The indicative pricing for the shop units is at
least $3,000 per sq ft and the project is
expected to complete in mid-2017.
which may not provide sufficient details to

make a rational investment decision. For
example, the snapshot does not include
projections of future cash flows of the
property, which is required for potential
buyers to assess their debt servicing abilities.
As a result, agent representatives may
expose investors to unintended future risk.
Predicting the future cash flows of the
property
Most marketing materials provide the

snapshot above for potential property buyers,
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In order to predict the future cash flows of the

property, an investor is required to make
calculations based on assumptions and
market trends (see Table 1 and 2 below). Just
like a stock market investment, property
investors need to develop basic valuation
skills in order to make rational purchase
decisions.
Page | 4

To value an investment property, it is
important to understand how the signed
leases determine cash flows. Operating
expenses such as service charges and
annual property taxes for strata units may
be borne by the landlord in certain
instances. All expenses pertaining to the
strata unit needs to be deducted from the
Back to Contents
revenues to determine net operating income

(NOI). Any additional capital expenses in
maintaining the property are deducted from
the net operating income to determine the
future cash flows. Finally, a future sales
price of the property is also projected in
order to determine the overall present value.
Page | 5

Table 1: An example of forecasting future cash flows
Forecast
Sep, 2014
Forecast
Sep, 2015
Forecast
Sep, 2016
Forecast
Sep, 2017
Forecast
Sep, 2018
Forecast
Sep, 2019
Forecast
Sep, 2020
Forecast
Sep, 2021
Forecast
Sep, 2022
Forecast
Sep, 2023
Rental Revenue
Potential Base Rent
Free Rent
Scheduled Base Rent
Total Rental Revenue
0
0
0
0
0
0
0
0
0
0
0
0
8,532
-2,844
5,688
5,688
34,128
0
34,128
34,128
35,195
0
35,195
35,195
38,483
-807
37,676
37,676
38,750
0
38,750
38,750
38,750
0
38,750
38,750
38,750
-807
37,942
37,942
Other Tenant Revenue

Total Other Tenant Revenue
28
21
32
32
32
Effective Gross Revenue
5,695
34,156
35,216
37,684
38,782
38,782
37,975
Operating Expenses
Service Charge
Property Tax
Insurance
Stamp Duties
Total Operating Expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
932
569
219
0
1,720
3,841
3,413
900
0
8,154
3,956
3,519
927
64
8,467
4,075
3,768
955
0
8,798
4,197
3,875
984
0
9,056
4,323
3,875
1,013
0
9,212
4,453
3,794
1,044
0
9,291
Net Operating Income
3,975
26,002
26,749
28,886
29,726
29,570
28,684
Leasing Costs
Leasing Commissions
Security Deposits
Invested Security Deposits
Distributed Deposit Investments
Deposit Refund
Total Leasing Costs
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,844
-5,688
5,688
0
0
2,844
0
0
0
0
0
0
1,600
-3,200
3,200
-5,688
5,688
1,600
3,229
-6,458
6,458
-3,200
3,200
3,229
0
0
0
0
0
0
0
0
0
0
0
0
3,229
-6,458
6,458
-6,458
6,458
3,229
Capital Expenditures
Renovation
Total Capital Expenditures
0
0
0
0
0
0
0
0
0
0
0
0
2,500
2,500
0
0
0
0
2,500
2,500
Total Leasing & Capital Costs
2,844
1,600
5,729
5,729
Cash Flow Before Debt Service
1,131
26,002
25,149
23,157
29,726
29,570
22,954
Debt Service
Interest
UOB Term Loan
Total Interest
10,982
10,982
11,254
11,254
18,762
18,762
27,592
27,592
27,101
27,101
26,581
26,581
26,036
26,036
25,460
25,460
24,853
24,853
24,213
24,213
Principal
UOB Term Loan
Total Principal
14,112
14,112
14,171
14,171
11,593
11,593
9,149
9,149
9,640
9,640
10,160
10,160
10,705
10,705
11,282
11,282
11,888
11,888
12,528
12,528
Total Debt Service
25,094
25,425
30,355
36,741
36,741
36,741
36,741
36,742
36,741
36,741
-25,094
-25,425
-30,355
-35,610
-10,739
-11,592
-13,584
-7,016
-7,171
-13,787
Junction Nine
Cash Flow After Debt Service
Source: ARGUS Software (Asia Pacific) estimates only

Back to Contents
Page | 6

Table 2: Analysing returns to make a Buy/Sell decision
Property Summary
Junction Nine - Yishun (Amounts in SGD, Measures in SF)
Oct, 2013 through Sep, 2024
Property Information
Property Name
Junction Nine - Yishun
Address
Yishun Avenue 9
City, State
Singapore
Property Type
Retail
Unit Area
237 sq ft
Analysis Begin Date
Oct, 2013
Length of Analysis
10 Years 0 Months
General Inflation
3.00%
Summary Cash Flow (Year 1)
Potential Gross Revenue
Vacancy & Adjustments
Effective Gross Revenue
Operating Expenses
Net Operating Income
Leasing & Capital Costs
Cash Flow Before Debt Service
Debt Service
Cash Flow After Debt Service
Sales Proceeds Calculation
Residual Sale Date
Net Operating Income (NOI)
NOI to Capitalize
Divided by Cap Rate
Gross Sale Price
Property Sale Commission
Net Sale Price
Less: Loan Balance
Proceeds from Sale
PV of Net Sale Price
Amount
$0
0
0
0
0
0
0
-$25,094
-$25,094
Per SF
$0
0
0
0
0
0
0
-$105.88
-$105.88
September, 2023
29,245
29,245
3.00%
974,840
-19,497
955,343
454,372
500,971
597,787
Purchase & Investment

$711,000
$14,220
$725,220
$569,600
$155,620
Purchase Price
Closing Costs (2.00%)
Total Purchase Price
Less Debt Amount (78.54%)
Equity
Present Value & Yield
Discount Rate
Unleveraged PV
Cap Rate
Gross Income Multiplier
Property Resale (Sep, 2023)
Unleveraged IRR
Recommended Hold End
IRR for Recommended Hold
Breakeven Date
NOI Yield
Cash On Cash Yield
Debt Financing
Loan Begins
Amount
Interest Rate
Term
Payment
Loan Costs
Loan to Present Value
Debt Coverage Ratio
4.80%
$709,137 [$2,992.14/SF]
3.00%
33.33
$955,343 [$4,030.98/SF]
4.56%
Sep, 2020
31.73%
N/A
0.00%
-16.13%
UOB Term Loan
Oct, 2013
$569,600
1.95%
360 Months
$2,091 Monthly
$800
CIMB Term Loan

Oct, 2013
$569,600
1.70%
360 Months
$2,021 Monthly
$1,200
80.32%
0

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Page | 7

Benefits of using cash flow projections
A projected cash flow statement will also
allow the bank to accurately assess the
income generating ability of the investment
property, and depending on the debt service
cover ratio (DSCR) achieved on the cash
flow, a favorable loan quantum for the
borrower could be considered by the lender.
The bank will also be able to review the
underlying assumptions used in these cash
flow projections and make necessary

adjustments,
resulting
in
greater
transparency of the loan review.
Another positive benefit of using cash flow
projections is that the property agent can also
track future leasing and sales activity and
resulting commissions (Table 3). As a result,
the agent can for example develop
customised leasing and marketing strategies
for their clients.
Table 3: An example of projecting leasing activity

Single Tenant / Lease
Status Details
Junction Nine #01-10
99-Years Leasehold
Tenant X
Tenant X (Option 1)
Tenant X (Option 1)
Final Totals
Lease
Type
Retail
Retail
Retail
Begin Lease
Date Term
1/7/2017 2y
1/7/2019 1y
1/7/2020 3y
Expiration Minimum Lease Lease

Date Term
Period Status
30/6/2019 2y
30/6/2020 1y
30/6/2023 3y
2y
Base
Contract
Option Option
Market Contract
Area
Base Base
Initial Rent/ Rent/
Leasing
Base
Area Area
Leasing Commissions/
Rent
(yr) (mth) Commissions
Area
237 34,128
237 38,394
237 38,750
711 111,272
144.00
162.00
163.50
156.50
12.00
13.50
13.63
13.04
2,844
1,600
3,229
7,673
12.00
6.75
13.63
10.79

Back to Contents
Page | 8

Using cash flow projections
traditional methods
versus
A major data source for the real estate

industry is historical transactional data
based on caveats which several market data
providers currently use. One limitation of
using historical data is that it may not be
indicative of future market trends and fails to
provide projections for the investor. Unlike
the cash flow analysis, comparing with
historical transactions does not allow an
investor to approximate the true value of the
investment property and assess if the
prospective sales price can be supported.
Another data source for the real estate
industry is the certified valuation which all
property transactions require. However, an
investors valuation may differ from that of an
approved valuer as they tend to lag the
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market, causing properties to be overvalued

when market fundamentals are deteriorating
and undervalued when property markets
strengthen. There may also be significant
differences in opinions among investors and
valuers about the assumptions used when
forecasting future earnings.
Creating a cash flow estimation and
valuation of an investment property
Unknown to many, it is possible to create an
accurate cash flow estimate and valuation of
an investment property with limited access to
sophisticated property valuation tools. The
basic investment model is the same for all
property types, although how income is
generated and expenses are incurred may
differ depending on the type of commercial
property.
Page | 9

The investor will be required to include local
market data in terms of rental rates, lease
structures, leasing commission, capital
allowances, tax rates and other market
standards into the cash flow model to
understand the market risk and achieve a
better estimate of value.
Once the intrinsic value of the property has
been determined, it can be compared with the
selling price and other transactional data to
arrive at a rational investment decision.
By ARGUS Software, which provides
software and services to real estate owners,
investors, developers, financial institutions,
estate agents and REITS. Argus Solutions
enable customers to improve visibility and to
better manage financial and operational
performance of their real estate portfolios.
Back to Contents
Page | 10
Singapore Property This Week

Residential
Freehold property not necessarily better
than 99-year leasehold
The two general types of property tenure in
Singapore 99-year leasehold property and
freehold property could be considered
similar. However, freehold properties could
hold a few advantages over leasehold
properties, including higher en-bloc potential,
slower pace of depreciation (as leasehold
properties value would diminish over the
course of their lease) and no restrictions on
the use of Central Provident Fund for home
purchases. Recent statistics have shown that
new
leasehold
condominiums
have
dominated the market in recent years, with
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new leasehold and new freehold condo sales

standing at 95 and 5 percent respectively for
the first half of 2013. On the contrary, 70
percent of new sales were freehold in 2006
and 2007. This could be due to the increase
of the government land sales programme in
recent years and the tightening of en-bloc
rules in Oct 2007.
(Source: Business Times)
Developers private home sales increases
in Sept
Developers private home sales, excluding
executive condominiums units, increased 65
percent to 1,246 units in Sept compared to
756 units in August.
Page | 11

However, Septs figure is a decrease of more
than half that in Sept 2012. For the third
quarter of 2013, developers have sold a total
of 2,484 private homes, which is the lowest
number since Q4 2009 with only 1,860 units
sold. The TDSR framework introduced in late
June has been attributed for this drop.
According to DTZs South-east Asia Chief
Operating Officer Ong Choon Fah, the ranks
of
property
investors
have
thinned
significantly and those still around are going
mostly for smaller units. The latest figures
from the Urban Redevelopment Authority
(URA) revealed an uneven performance
among the seven new projects (excluding EC
developments) that were launched last
month.
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GCB on Leedon Road up for sale

A 43,926 sq ft two-storey colonial-style good
class bungalow (GCB) at Leedon RoadBelmont Road junction is put on the market
with the guide price of about $1,700 to $1,800
psf on land area. The freehold site, zoned for
residential use and is within the designated
prime GCB area of Belmont Park, has a
swimming pool and a large garden. Having
dual frontages, its immediate neighbours
include other GCB estates such as Victoria
Park, Leedon Park, and Cornwall Gardens.
65% of 50 residential units released at The

Venue sold
About 65 per cent of the 50 residential units
released at The Venue Residences and
Shoppes have been sold.
Page | 12

The units were sold at an early bird average
price of $1,380 psf. In addition, around 60
percent of the 28 retail units at The Venue
Shoppes have been sold at $4,700 to $6,000
psf. The mixed development, along Tai Thong
Crescent and a three-minute walk from
Potong Pasir MRT station, is developed by
City Developments Limited and Hong Leong
Holdings with 266 apartments and 28 retail
and dining units.
DBS sells $200m property-linked bonds
DBS Bank has successfully sold $200 million
of five-year bonds on Skies Miltonia Property,
a property development in Yishun comprising
420 residential condominium units and two
commercial units. Private investors were the
buyers of the fixed rate notes due March
2018 issued and secured by Orchis Capital
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Pte Ltd, a special purpose company. The

bonds will be based on progress payments
and it is the first of its type since 2008.
Commercial
HDB to end assignment of tenanted
business spaces
The Housing & Development Board (HDB)
has acted to restrain the rising operating
costs and unhealthy speculation in the rental
commercial and industrial properties, which
would result in a fairer playing field for
genuine businesses seeking spaces in these
sectors. The new rule emerged after HDB
noticed rising average assignment fee and
tendered rent in the past few years which
would contribute to higher operating costs
and then would be passed on to residents
and consumers.
Page | 13

HDB would introduce a two-stage plan to stop
the practice of assignment in which tenants
pass on their tenancy to a new party for a
one-time fee. Currently there are 8,000
commercial tenants and 10,700 industrial
tenants with an average of 500 cases of such
assignment for each group per year.
remaining lease till Feb 29, 2088, and an

existing tenancy that will expire between Sept
14 in 2014 and Jan 15 in 2016.
Two industrial plots located at 9 Joo Koon

Road and 20 Joo Koon Crescent with
potential for additional gross floor area (GFA)
development has been put up for sale at
guide prices between $7.5 million and $10
million the latest industrial properties put up
for sale in recent weeks. They are zoned for
Business 2 use with a plot ratio of 1.4 each.
The two sites are within walking distance of
Joo Koon MRT station and are served by the
Ayer Rajah Expressway or Pan Island
Expressway. The marketing agent for the
plots is Jones Lang LaSalle (JLL).
Nam Cheong buys office space at Suntec

Tower Three for $30.3 million
Offshore vessel builder Nam Cheong will buy
office space of 10,097 sq ft at Suntec Tower
Three to house its Singapore corporate office
for about $30.3 million. The wholly owned
subsidiary Nam Cheong Offshore has been
granted an option-to-purchase (OTP) for
three office lots (units #41-01 to #41-03) at
Suntec Tower Three from Vista Realty, an
unrelated party. The leasehold property has a
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Two industrial plots in Joo Koon up for
sale between $7.5 and $10 million
Page | 14

5 Loyang Drive and Guang Ming Industrial
Building are the industrial plots sold this
month.
Singapore CBD is home to the worlds
largest vertical garden
Ocean Financial Centres green wall of
51,000 potted plants of 25 species standing
at 19 metres high and 110 metres wide - as
big as eight tennis courts is now the worlds
largest vertical garden. It is located in the
heart of Singapores Central Business District
(CBD). The pots of the the plants have been
arranged to make up a map of Singapore,
South-east Asia and the world. Not just for
aesthetic purposes, the wall is designed with
proprietary landscaping designs to reduce the
surface temperature of OFC's carpark behind
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the wall of green, and act as a green lung

which filters out vehicular emissions and
provides visual relief from the dense concrete
landscape of the CBD. The green wall is also
a show of support for the National Parks
vision of creating a City in a Garden out of
Singapore.
Far East places optimistic top bids for

Gambas Crescent industrial plots
Far East Organization has placed bullish top
bids for two 30-year leasehold industrial plots
in Gambas Crescent which are 700 metres
from Sembawang MRT Station. Its bids were
about 50 percent higher than the respective
second highest bids for each land parcel. Far
East offered about $44.78 million or $137.90
psf ppr for Parcel 1 of nearly 129,900 sq ft,
Page | 15

which was 48.5 percent more than the
BlackRock appoints agents to sell AXA
second highest bid of $92.85 psf ppr from
Tower, 8 Shenton Way
from Hock Lian Seng. Parcel 1 drew six bids.

Far East bid about $46.33 million or $127.19
psf ppr for the 145,710 sq ft Parcel 2, which

was 54.4 percent higher than the next highest
bid of $82.36 psf ppr from Eco-I Pte Ltd.
Parcel 2 drew nine bids, and is located next
to the future North-South Expressway. Strata
sub-division will be allowed for new projects

on the sites, with the minimum strata size at
150 sq metres (1,614.59 sq ft) gross floor
area.
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BlackRock, the New York Stock Exchangelisted and the world's largest asset manager,
has appointed CBRE and Jones Lang LaSalle
as agents to find a buyer for AXA Tower at 8
Shenton Way. This shows the group's serious
intention to sell the landmark circular building
opposite International Plaza and Tanjong
Pagar MRT Station. The price is expected to
be at least $2,000 psf based on the existing
net lettable area (NLA) of 674,000 sq ft, which
would amount to $1.35 billion in total.
Page | 16
Non-Landed Residential Resale Property Transactions for the Week of Oct 2 Oct 8
Postal
District
Project Name
2
4
4
5
9
9
9
9
9
10
10
10
10
10
10
10
10
10
11
11
11
12
12
12
CRAIG PLACE
REFLECTIONS AT KEPPEL BAY
CARIBBEAN AT KEPPEL BAY
THE STELLAR
THE RITZ-CARLTON RESIDENCES SINGAPORE CAIRNHILL
RIVERGATE
MARTIN PLACE RESIDENCES
PARC SOPHIA
WILKIE 87
GRANGE RESIDENCES
ONE CHATSWORTH
THE MONTANA
THE MONTANA
THE MONTANA
THE MONTANA
THE MARBELLA
DUKES RESIDENCE
HOLLAND HILL LODGE
NEWTON 18
THE LINCOLN RESIDENCES
MONTEBLEU
THE MEZZO
TRELLIS TOWERS
OLEANDER TOWERS
Back to Contents
Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
570
1,464
893
1,528
2,831
1,507
1,163
549
1,335
2,583
3,305
1,055
947
775
947
1,464
1,701
2,185
926
1,841
1,432
840
1,141
1,152
950,000
3,123,619
1,520,000
1,950,000
10,800,000
3,250,000
2,450,000
1,082,000
1,700,000
6,800,000
7,000,000
2,120,550
1,884,540
1,539,870
1,865,590
2,500,000
2,680,000
2,200,000
1,670,000
3,237,000
1,807,000
1,190,000
1,520,000
1,280,000
1,665
2,134
1,701
1,276
3,815
2,157
2,108
1,971
1,274
2,632
2,118
2,010
1,990
1,987
1,970
1,708
1,576
1,007
1,804
1,759
1,262
1,417
1,332
1,111
99
99
99
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
FH
99
Postal
District
13
14
14
15
15
15
15
15
15
15
15
16
16
16
16
16
18
18
18
18
18
18
18
19
Project Name
WOODSVILLE 28
SIMSVILLE
SIMS GREEN
PALM OASIS
RIVEREDGE
COSTA RHU
THE GLACIER
CASUARINA COVE
ELLIOT AT THE EAST COAST
PROSPERO VILLE
JC RESIDENCE
LUCKY COURT
AQUARIUS BY THE PARK
BAYSHORE PARK
THE BAYSHORE
THE TANAMERA
NV RESIDENCES
RIS GRANDEUR
EASTPOINT GREEN
TROPICAL SPRING
EASTPOINT GREEN
MELVILLE PARK
MELVILLE PARK
KOVAN RESIDENCES

Tenure
829
1,249
1,216
743
1,066
1,647
1,335
1,173
2,314
1,076
1,313
1,302
893
743
926
1,324
872
1,292
1,130
1,335
1,302
1,345
1,475
1,798
1,180,000
1,280,000
1,050,000
1,045,000
1,470,000
2,250,000
1,450,000
1,250,000
2,400,000
1,068,000
1,200,000
1,400,000
900,000
738,000
900,000
1,120,000
930,000
1,200,000
1,045,000
1,230,000
1,150,000
1,030,000
1,080,000
2,318,000
1,424
1,025
863
1,407
1,379
1,366
1,086
1,065
1,037
992
914
1,075
1,007
994
972
846
1,067
929
925
922
883
766
732
1,290
99
99
99
FH
99
99
FH
99
FH
FH
FH
FH
99
99
99
99
99
FH
99
99
99
99
99
99
Page | 17

Postal
District
19
19
20
21
21
21
22
23
23
23
23
23
23
23
Project Name
FONTAINE PARRY
THE SPRINGBLOOM
BISHAN PARK CONDOMINIUM
SIGNATURE PARK
LE WOOD
SHERWOOD TOWER
THE LAKESHORE
HILLVIEW 128
THE MADEIRA
REGENT HEIGHTS
THE WARREN
PARKVIEW APARTMENTS
REGENT GROVE
REGENT GROVE

Tenure
1,292
1,119
1,292
1,421
1,109
1,830
926
1,023
1,270
1,023
1,066
980
926
1,173
1,560,000
1,238,000
1,230,000
1,550,000
950,000
1,285,000
1,090,000
960,000
1,190,000
938,000
950,000
865,000
785,000
930,000
1,208
1,106
952
1,091
857
702
1,177
939
937
917
891
883
848
793
999
99
99
FH
99
99
99
999
99
99
99
99
99
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.
Back to Contents
Page | 18
Issue 125
CONTENTS
p2
FROM THE
EDITOR
Should You Apply For Multiple

Loans Before Buying a Property?
Hope you like it!
p6
p9
Mr. Propwise
(September 25 October 1)
Contribute
Advertise
News.

Should You Apply For Multiple Loans Before Buying a Property?

By Paul Ho (guest contributor)
Gone are the days when applying for a bank
loan was a breeze all thanks to the MAS
rules regarding the Total Debt Servicing Ratio
(TDSR) and stricter lending criteria,
especially with the clause pertaining to Proof
of Debt.
What does Proof of Debt mean?
Banks are required to enforce the MAS
TDSR limit set at 60%, which includes
housing loan servicing as well as that of other
debt. The burden is on the banks to make
sure that they impose the Proof of Debt on
potential borrowers.
Back to Contents
Page | 2

As a result, if your credit report shows that
you have several credit cards and if one of
the cards shows that payment is not made in
full, banks will then require you to print out
your credit card statements to ascertain the
outstanding loan amount. The banks will then
use this amount to impute the minimum sum
required by the credit card companies to work
out the required monthly servicing amount.
This monthly servicing amount affects your
TDSR score, and, hence, your total borrowing
amount.
How to make sure I have a property loan
before purchasing?
If you are buying a new property, you have to
make sure that you have a home loan or
commercial loan in hand prior to purchase,
just before you make your property buying
decisions. This is critical under the TDSR
Back to Contents
criteria as many people may not be aware of

their financial commitments. These property
buyers could end up paying the 1% Option to
Purchase (OTP) and then fail to obtain a
property loan.
Home loans or commercial loans approval-inprinciple (AIP) some call it In-PrincipleApprovals (IPA) are a necessary safeguard
prior to committing to a property purchase.
They are by no means 100% guaranteed, but
they do provide a good indication of
borrowing ability.
Why do bad mortgage brokers encourage
you
to
apply
for
multiple
loan
applications?
Some mortgage brokers suggest that you
should apply for an AIP from one bank first,
and sometimes even many banks at the
same time.
Page | 3

Generally up to three is considered okay.
Anything beyond that is bad in our opinion.
Some brokers suggest that once you have
the AIP in hand, you can then try to apply for
more bank loans when you make the property
buying decision. This, on the surface, sounds
like a fair statement to protect the buyer. But
is it really so?
What will abuse of the

Principle process lead to?
Approval-in-
Lets put it bluntly the AIP takes away

valuable resources from the banks as it
involves a huge amount of paperwork. By
applying for multiple AIPs, this piles on extra
workload on bankers, banks, and, especially
credit officers in the banks. Credit officers
have a thankless and stressful job. They are
also on the receiving-end of abuses and
Back to Contents
curses from customers (even though they do

not meet them, and, in most cases, are not
even allowed to meet with front-end bankers).
Abusing the system created to give you some
form of safety by wantonly applying to as
many banks as possible for AIP, and
subsequently not taking up loans from the
banks is not simply a matter of fairness. This
abuse has led banks to reduce or scrap AIP
outright. Some banks have even imposed or
are considering imposing a fee for AIP.
Credit officers are overworked and hold a
thankless job and the bank cannot easily find
sufficient credit officers to handle all the extra
workload. In the end, such irresponsible
behavior will lead to higher cost for
consumers.
Page | 4

What do excessive AIP and home loan
applications lead to?
When you make excessive AIP or home loan
applications, each of these applications
invoke a Credit Enquiry. According to the
credit bureau, Too Many Enquiries leads to
Marginally Increased Risk and degrades
your credit score.
A bad mortgage broker invokes your

greediness to take advantage of the system
to protect their own commission. They abuse
the goodwill of banks, leading to increased
costs for consumers. And worse still, by
making Too Many Enquiries, bad mortgage
brokers make your credit score worse,
demonstrating complete ignorance of credit
risks and disregard for your financial wellbeing.
In conclusion, you should only apply for an
AIP to the top one or two banks that you
intend to take up a home loan with after a
TDSR analysis.
By Paul Ho, holder of an MBA from a

reputable
university
and
editor
of
www.iCompareLoan.com, Singapores first
Cloud-based Home Loan reporting platform
used by Property agents, financial advisors as
well as Mortgage brokers.
Back to Contents
Page | 5

Residential
3 pilot HDB estates to have mechanised
carparks
Three HDB estates in Bukit Panjang, Yishun
and Changi Village have been chosen as pilot
sites to display mechanized parking systems
to see how carpark shortages can be
addressed in a pilot project by the
Government Parliamentary Committee (GPC)
for National Development. It was reported
that GPC and HDB have studied the
suitability and potential of mechanized
carparks as additional parking solutions
because they can provide additional parking
lots in estates with site constraints, especially
older estates with no space to build more lots.
Back to Contents
However, not all HDB estates are appropriate

for mechanized parking systems. The three
pilot sites, therefore, allow further evaluation,
including users acceptance before extending
it to other sites in the future. The new
mechanized carparks operate like an
automated multi-storey garage, with a lift for
cars. Once a driver parks his car and exits
the lift, the system will determine where to
take the vehicle and will move the car into
place. It is estimated that the cost of installing
and maintaining mechanized parking is higher
than that for multi-storey or surface car
parking.
Page | 6

Five houses and 506-unit EC up for sale in
Sembawang
Three terraced houses and two semidetached homes were launched for sale by
tender, while e-applications for SkyPark
Residences,
a
506-unit
executive
condominium (EC), were also open this week
in Sembawang region. The three terraced
houses in Kerong Walk range from 2,187 sq ft
to 2,946 sq ft in size. The pair of semidetached houses on Wak Hassan Drive are
3,775 square feet and 4,661 sq ft in size.
Together, the five houses in the Sembawang
Park neighbourhood have a guide price of
$15 million, or $943 psf. The guide price for
the semi-detached houses ranges from $850
to $900 psf, and the terrace houses guide
price are between $950 and $1,100 psf. The
owners will consider both individual bids and
offers for permutations of the properties. The
Back to Contents
tender exercise for the five houses closes at

3pm on Oct 31. The marketing agent for the
sale is CBRE, which said that the houses are
unique in design catering needs of modern
families with lush natural surroundings. As for
SkyPark Residences, market watchers expect
the project, the first EC with a 100m skypark,
to be around $750 and $820 psf. The
development will give a third of its groundlevel common space to water facilities. It has
nine 15-storey towers of apartments with
between three and five bedrooms and
maisonettes with five bedrooms. Most units
will have three or four bedrooms. Threebedroom units are available in 1,141-sq-ft and
1,152-sq-ft
sizes.
The
three-bedroom
premiums are 1,238 sq ft in size. Fourbedroom units range from 1,302 sq ft to 1,356
sq ft in size. The four-bedroom premiums are
1,528 sq ft and 1,582 sq ft sizes.
Page | 7

There are also 28 five-bedroom maisonettes
with 1,722 sq ft in area.
Commercial
Poyang factory building and leasehold
land to be sold for $11.8m
property deal would improve the ICPs cash

flow and earnings, including the $2.3 million
gain from the disposal. Proceeds would be
used for working capital, investment and
acquisition opportunities.
ICP Ltd announced on Oct 7 that it would be

selling its factory building and leasehold land
at 5 Loyang Drive of 6,931.2 sq m to Chang
Hua Construction Pte Ltd for $11.8 million.
For the financial year ended June 30, 2013,
the net book value of the property was $9.5
million. The sale was driven by continuous
losses for the last three financial years of the
groups electroplating business carried out in
the property. The electroplating business
would be stopped, while the proposed
Back to Contents
Page | 8
Non-Landed Residential Resale Property Transactions for the Week of Sep 25 Oct 1
Postal
District
2
3
5
5
5
8
9
9
9
9
9
9
9
10
10
10
10
10
10
10
10
10
10
Project Name
INTERNATIONAL PLAZA
TANGLIN VIEW
VILLA DE WEST
THE INFINITI
THE INFINITI
CITYLIGHTS
SCOTTS SQUARE
RIVERGATE
SCOTTS 28
SCOTTS HIGHPARK
ROBERTSON 100
BELLE VUE RESIDENCES
UE SQUARE
GRANGE RESIDENCES
THE MONTANA
THE MONTANA
THE MONTANA
THE MONTANA
DUCHESS RESIDENCES
THE MONTANA
BELMOND GREEN
GALLOP GABLES
THE BALMORAL
Back to Contents
Area
(sqft)
861
1,249
1,528
1,302
1,270
678
1,249
1,033
1,744
1,744
678
2,045
1,238
2,852
947
1,324
1,141
1,141
1,464
947
1,055
1,733
7,642
Transacted
Price ($)
1,020,000
1,640,000
1,660,000
1,368,888
1,328,888
1,100,000
3,871,900
2,360,000
3,750,000
3,662,400
1,280,000
3,800,000
1,800,000
8,570,000
1,875,070
2,600,000
2,169,900
2,159,600
2,760,000
1,754,670
1,940,000
3,100,000
12,000,000
Price
Tenure
($ psf)
1,185
99
1,313
99
1,086
FH
1,051
FH
1,046
FH
1,622
99
3,101
FH
2,284
FH
2,151
FH
2,100
FH
1,888
FH
1,858
FH
1,454 929
3,004
FH
1,980
FH
1,964
FH
1,902
FH
1,893
FH
1,885 999
1,852
FH
1,839
FH
1,789
FH
1,570
FH
Postal
District
10
10
11
11
14
14
14
15
15
15
15
15
15
15
15
16
16
16
16
17
17
18
19
Project Name
THE TESSARINA
MONTVIEW
BUCKLEY 18
ZEDGE
D'OASIA
LE CRESCENDO
THE SUNNY SPRING
THE SEA VIEW
ONE AMBER
HAIG RESIDENCES
THE MAKENA
PARK EAST
LAGUNA PARK
NEPTUNE COURT
MANDARIN GARDEN CONDOMINIUM
BAYSHORE PARK
THE CLEARWATER
CASAFINA
CARISSA PARK CONDOMINIUM
LOYANG VALLEY
MELVILLE PARK
COMPASS HEIGHTS
Area
(sqft)
1,033
1,227
1,055
1,238
861
1,539
1,410
1,518
1,302
452
1,152
1,722
1,615
1,636
1,572
1,076
1,227
1,356
2,024
2,110
1,991
936
1,109
Transacted
Price ($)
1,615,000
1,870,000
1,825,000
1,580,000
1,150,000
1,710,000
1,350,000
2,520,000
1,952,888
640,000
1,500,000
1,800,000
1,630,000
1,485,000
1,350,000
1,100,000
1,200,000
1,270,000
1,650,000
2,020,000
1,480,000
835,000
1,118,888
Price
Tenure
($ psf)
1,563
FH
1,524
FH
1,730
FH
1,276
FH
1,335
FH
1,111
FH
957
FH
1,660
FH
1,499
FH
1,416
FH
1,302
FH
1,045
FH
1,010
99
908
99
859
99
1,022
99
978
99
936
99
815
99
957
FH
743
99
892
99
1,009
99
Page | 9
Postal
District
19
19
20
20
20
21
21
23
23
27
27
Project Name
HOUGANG GREEN
REGENTVILLE
BRADDELL VIEW
LAKEVIEW ESTATE
FAR HORIZON GARDENS
GRAND REGENCY
CLEMENTI PARK
GUILIN VIEW
HILLVIEW REGENCY
SELETARIS
ORCHID PARK CONDOMINIUM
Area
(sqft)
764
1,152
1,615
1,615
1,948
818
1,873
1,259
1,119
1,647
1,249
Transacted Price
Tenure
Price ($) ($ psf)
720,000
942
99
935,000
812
99
1,450,000
898
99
1,348,000
835
99
1,450,000
744
99
1,007,000 1,231
FH
1,950,000 1,041
FH
1,180,000
937
99
1,000,000
893
99
1,430,000
868
FH
968,000
775
99

Back to Contents
Page | 10
Issue 124
CONTENTS
p2
How to Spot Overseas Property Scams
p9
p14
FROM THE
EDITOR

Hope you like it!
Mr. Propwise
(September 18 September 24)
Contribute
Advertise
News.

How to Spot Overseas Property Scams

By Getty Goh (guest contributor)
Recently, a mainstream newspaper wrote about
how some dodgy foreign property investment
schemes were recently sold in Singapore.
Being a co-founder of CoAssets, Singapore and
South East Asias first real estate bulk purchase
and crowdsourcing portal, I have come across
my fair share of dodgy investments. Hence, I
thought it would be useful for me to share some
of the tools I use to help me discern whether a
deal is genuine or a scam.
Looking through the news article, the deal was
eerily similar to something that I came across
just a few weeks ago.
Back to Contents
Page | 2

Some of the similarities are (1) the project is
located south of Batam and (2) more than
1,300 units were sold for $70 million.
The business model of CoAssets has been
likened to that of SouFun, a Chinese listed
company that provides targeted ad solutions
for property developers by aggregating
demand (i.e. bulk purchase). Hence, we were
approached to get aggregate bulk buyers for
this Indonesian project. After careful
consideration, we turned the collaboration
down and we found two key red flags that
made us cautious.
Red Flag #1: The numbers did not add up
One of the main things that made my team
wary was that the projected numbers did not
add up. In another news article, it was
reported that the developer was planning to
sell 900 units at US$90,000 (about
Back to Contents
S$117,000). There were different units and

the smallest unit was about 60 square meters
(about 646 square feet). Of the 900 units, 200
were already sold at a special pre-launch
price of about US$30,000 (about S$39,000),
which meant that a deep discount of about
66% had been given to the group of early
buyers.
Developers are after all in the business of
making money through the selling of
properties; hence the question we wanted to
answer was whether a discount of 66% was
reasonable.
When it comes to development, one key
component is construction cost. To find out
how much it costs to build a residential
property in Indonesia, construction cost
estimates for 2013Q3 from Rider Levett
Bucknall (RLB), an internationally renowned
quantity-surveying firm, were used.
Page | 3

Based on the report, the estimated
construction cost for Jakarta was between
RP6,161,000 per sq m (about S$62.36psf)
and RP9,839,000 (about S$99.62psf). Due to
the lack of more precise data for the Batam
region, construction cost for Jakarta was used
as an indication. Based on the estimated
cost, purely for construction, it would cost
between S$40,000 and S$64,000 to build the
smallest 60 square meter villa. Hence, at the
special price of US$30,000, the developer
may not be breaking even.
Compounding to the risk, the number of
people who received the special 66%
discount was also unclear. The project could
still be viable if the developer gave the special
66% discount to just a handful of close
business associates. However, if it gave it to
all 200 buyers, the total amount collected
would unlikely be enough to cover the
Back to Contents
construction cost for the 200 units.

Red Flag #2: The developer did not seem
to have the financial strength
Developments are generally hefty financial

undertakings and many developers do it with
some form of construction loans from banks.
While developers may not reveal the true
financial situation to the retail property
buyers, they will have to show their financial
reports to banks in order to secure
construction loans. Hence, developers that
can secure bank financing at the construction
stage tend to be in a good financial position
and are more secure. Conversely, developers
who do not have some form of bank financing
during the construction stage are not viewed
to be as attractive.
The 900 units in the Batam development falls
under the latter category.
Page | 4

That is not to say that all projects that do not
have bank financing during the construction
stage are doomed to fail. However, for this
specific case, the amount needed to build all
900 hundred units is at least S$36 million
(assuming all 900 units are 60 square meter
units that cost S$40,000 each to construct).
When we did an ACRA check on the
Singapore company, we found that the
company had only a paid up capital of
S$300,000 and the key appointment holders
of the company stayed in public flats.
What is your financial recourse?
When it comes to overseas property deals, a
key aspect that investors should look at is
financial recourse if things go awry, who will
be financially responsible to make the
investors whole. Based on HDBs website, it
states that Under the Housing &
Development Act, so long as one of the flat
Back to Contents
owners of the HDB flat is a Singapore Citizen,

the HDB flat (of any type) will not vest in the
Official Assignee ("OA") in the event of
bankruptcy of any or all of the flat owners and
the flat owners would not be compelled to
dispose of their flat. This means that
investors would have limited recourse should
the development fail to materialise, as the
directors assets could not be sold to repay
the debtors.
More troubling is that the amount raised from
the presale is about S$7.8 million. It is still
significantly less than the S$36 million
needed for the project, bearing in mind that
this is just a low end estimate as things like
land cost, developer profits and other
miscellaneous charges have not been
factored in. A S$300,000 company is unlikely
to have the type of financial muscle to deliver
on a S$36 million project.
Page | 5

And without bank financing, it is hard to
fathom how they will be able to deliver on
their promise.
Conclusion
Based on the two factors highlighted above,

the CoAssets team concluded that the deal
was too risky and we were not prepared to
endorse it. At this juncture, I must emphasize
that not all projects that fail are scams. Even
good developments with solid management
behind them have some risks of failing, as
real estate development is, by nature, a risky
endeavour.
To conclude, the Indonesian case study that I

have cited in this article could be a genuine
deal. The developer could also have the
financial muscle to take on a multi-million
project and be profitable selling their villa
units at S$39,000. However, I think that it is
always more prudent to err on the side of
caution. Even if I am wrong and this turns out
to be the next big financial deal, the market is
not short of genuine good deals, all we have
to do is look and do our due diligence.
To us, genuine business failures are realistic

plans that go awry due to a sudden change of
market conditions. On the other hand, scams
are fantastic promises made by those who
do not intend to keep them this means that
the plan is unrealistic at the onset.
I also must qualify that this article just

provides a brief analysis on two of the more
important red flags. There are many other
considerations that have not been listed and
a more detailed write-up will be beyond the
scope of this article.
Back to Contents
Page | 6

However, if you are currently looking at a deal
that seems too good to be true and would like
to get a second opinion, you can drop me an
email at SecondOpinion@CoAssets.com.
While it is not part of CoAssets core
business, we hope to add more value to you
by highlighting some of the blind spots that
you might have missed.
Ultimately, let me end off with this adage, if it
seems too good to be true, it often is. This
statement is pretty much applicable to
everything in life, overseas property scams
included.
Mr Getty Goh is the co-founder of CoAssets,
a spinoff company from Ascendant Assets
Pte Ltd, and Singapore and South East Asias
first real estate bulk purchase and crowd
funding site. For any queries, please drop him
an email at Enquiries@CoAssets.com.
Back to Contents
Page | 7
Back to Contents
Page | 8

Residential
CapitaLands Sky Vue sells 85% of units
Following CapitaLands reversal of its former
CEO Liew Mun Leongs stand against
shoebox units, the company succeeded in its
sales launch of Sky Vue at Bishan Central
with 430 units sold out of 505 units last
weekend. On the first day of sales, the
company sold 410 units for an average price
of $1,500 psf, with another 20 units more the
next day. One-bedroom and two-bedroom
units were the most popular. The optimistic
reception of the units gave more hopes of a
pick-up market sentiment after recent
property cooling measures. Savills Singapore
Back to Contents
research head Alan Cheong said Sky Vue

might revive the market by showing that
people could get around the TDSR if the price
is right. CapitaLand is now led by CEO Lim
Ming Yan.

Thousands of HDB homeowners turn to
new DBS loan
A new DBS loan has proven to be a hit as
thousands of HDB homeowners turned to it
for a mortgage product that guarantees
savings. Calculations from DBS showed
people taking up the April POSB HDB loan
could save as much as $1,600 by October.
Page | 9

According to DBS, the POSB HDB loan has
attracted five times more new customers than
that of 2012, making up for some of the slack
in the private-home loan market. DBS has
received a few thousand applications for the
past five months and the loan now makes up
25 percent of all new bookings.
HDB resale prices
declines predicted
decreases,
more
Flash estimates from HDB showed the resale

price index (RPI) at 205.1 in Q3, dropping 0.7
percent from Q2, the first decrease in more
than four years, since the first quarter of 2009
at the outset of the global financial crisis with
a 0.8 percent drop. Some analysts have
predicted further price declines for resale
HDB flats. However, consultants were not
surprised by the decline caused by recent
Back to Contents
cooling measures and new government

regulations such as a tighter Mortgage
Servicing Ratio (MSR) on HDB housing loans
and the TDSR introduced in June. According
to data from ERA Realty, the overall median
cash-over-valuation (COV) fell 33.3 percent to
$18,000 quarter-on-quarter, with executive
flats having the biggest fall. PropNex Realtys
data showed the $18,000 figure a 40 percent
drop from $32,000 median COV in early
2013. The number of transactions also fell
36.7 percent quarter-on-quarter to only 3,193
units in Q3, with the largest decline of 41.9
per cent from the executive flat segment.

TDSR framework
volumes to dip
causes
prices
and
According to the Urban Redevelopment

Authoritys (URA) flash estimate,
Page | 10

prices of private homes rose 0.4 percent
while certain segments showed a decline due
to the TDSR framework. Prices of non-landed
homes in the Core Central Region (CCR)
decreased 0.5 percent in Q3, following the
0.2 percent decrease in the previous quarter.
Prices of city-fringe homes decreased 1.1
percent, compared to the 0.2 percent rise in
Q2. Mr. Ong Teck Hui, national director at
Jones Lang LaSalle said Q3s price declines
are significant in the CCR and Rest of Central
Region (RCR) market segments as these two
segments rely more on investor demand and
these buyers are affected by cooling
measures including the TDSR framework.
City-fringe home prices are expected to see a
larger drop when the finalized index is
released. CBRE expects that the final Q3
2013 island-wide price index would be at the
same level as the Q2 2013 index, with recent
launches such as Thomson Three and Sky
Back to Contents
Vue included. Transaction volumes have

dropped in all market segments. Total volume
in the CCR and RCR decreased 61 per cent
and 72 per cent quarter-on-quarter. The
Outside Central Region (OCR)s transaction
volumes fell 50 per cent quarter-on-quarter.
Average prices of new sale private nonlanded homes in the OCR were around
$1,332 psf in Q3, compared with $1,096 in
Q2.
CEA studies courts findings in failed
Thomson View en bloc sale
The Council for Estate Agencies (CEA), the
regulator of estate agents, is studying the
High Courts findings of HSR International
Realtors role in the failed Thomson View en
bloc sale before deciding on necessary
follow-up.
Page | 11

The High Court has found HSR, the
marketing agent for the proposed $590
million condo en bloc sale, acted in bad faith
and breached its duty to avoid conflicts of
interest by not disclosing the incentive
payments to the condos collective sale
committee (CSC) and other owners. HSRs
incentive payments were also found to taint
the method of distribution of the sale
proceeds. According to CEA, in an en bloc
sale transaction, the estate agent is expected
to work closely with the CSC, taking
instructions from their clients, and acting
ethically during the process in compliance
with the laws and requirements governing en
bloc sale transactions
Back to Contents
Sentosa Cove sees more activity after

July deep-freeze
In July, after the authorities plugged
loopholes that property investors used to
avoid paying higher additional buyers stamp
duty (ABSD), the 99-year leasehold
bungalow market on Sentosa Cove saw a
slump in its activities. These investors had
made proxy purchases in the names of family
members who dont own properties here.
Activity, however, has now come back to
Sentosa Cove: a year-end pick-up in deals
led by Singapore PRs will take place. In
addition, the TDSR framework introduced in
June has filtered down to some buyers in the
upscale waterfront housing district. Even
high-net-worth buyers seek the maximum
Page | 12

loan to take advantage of current low interest
rates.
Commercial
Perennial drops TripleOne Somerset deal
It is reported that Perennial Real Estate
Holdings has aborted its proposed deal of
buying TripleOne Somerset for $980 million,
after its owner raised the asking price to $1
billion. Other potential buyers such as
Australias Lend Lease and US-based private
equity giant Blackstone Group have been
approached. TripleOne Somerset is a 17storey office-and-retail building owned by Asia
Real Estate Income Fund (AREIF) with funds
from Germany, local institutions and Qatar,
and is managed by Singapore-based Pacific
Star.

Back to Contents
Page | 13
Non-Landed Residential Resale Property Transactions for the Week of Sep 18 Sep 24
Postal
District
1
3
3
9
9
10
10
10
10
10
10
10
10
11
11
11
11
14
15
15
16
16
17
Project Name
EMERALD GARDEN
DOMAIN 21
EMERALD PARK
RIVERGATE
PARC EMILY
ST REGIS RESIDENCES SINGAPORE
THE MONTANA
DUCHESS MANOR
THE MONTANA
SOMMERVILLE GRANDEUR
GALLOP GABLES
JERVOIS LODGE
RIDGEWOOD
MIRO
PAVILION 11
THE LINC
SHELFORD 23
WING FONG COURT
THE ESTA
RICH EAST GARDEN
APOLLO GARDENS
EDELWEISS PARK CONDOMINIUM
Back to Contents
Area
(sqft)
1,033
1,033
1,130
1,776
549
2,756
549
829
1,141
1,830
1,755
1,238
1,399
1,959
958
1,281
1,313
958
1,399
1,787
2,605
1,841
1,023
Transacted
Price ($)
2,000,000
1,570,000
1,200,000
3,540,000
1,040,000
6,800,000
1,235,620
1,550,000
2,128,700
3,250,000
2,980,000
1,850,000
1,600,000
3,908,400
1,600,000
2,050,000
2,100,000
828,000
2,200,000
1,620,000
2,700,000
1,430,000
990,000
Price
Tenure
($ psf)
1,935 999
1,519
99
1,062
99
1,993
FH
1,894
FH
2,468 999
2,251
FH
1,870 999
1,866
FH
1,776
FH
1,698
FH
1,495
FH
1,143 999
1,995
FH
1,670
FH
1,600
FH
1,599
FH
864
FH
1,572
FH
907
99
1,037
FH
777
FH
968
FH
Postal
District
17
18
19
20
20
21
21
22
22
22
23
23
23
26
27
Project Name
SANDY PALM
MELVILLE PARK
EVERGREEN PARK
CLOVER BY THE PARK
FLAME TREE PARK
SPRINGDALE CONDOMINIUM
THE HILLSIDE
THE LAKESHORE
PARC OASIS
LAKEHOLMZ
PARKVIEW APARTMENTS
NORTHVALE
REGENT GROVE
SEASONS PARK
Area
(sqft)
1,249
1,561
1,173
1,733
1,593
1,119
1,776
1,184
1,378
1,238
980
1,259
1,195
1,249
958
Transacted
Price ($)
998,000
1,050,000
920,000
2,100,000
1,673,000
1,338,000
1,860,000
1,418,000
1,418,000
1,250,000
820,000
1,043,000
900,000
1,188,000
810,000
Price
Tenure
($ psf)
799
99
673
99
784
99
1,212
99
1,050
FH
1,195 999
1,047
FH
1,198
99
1,029
99
1,010
99
837
99
828
99
753
99
951
99
846
99

Page | 14
Issue 123
CONTENTS
FROM THE
EDITOR
p2
The Hong Kong-ization of Singapore Property
p6
p9

Hope you like it!
Mr. Propwise
Contribute
Advertise
News.

The Hong Kong-ization of Singapore Property

By Mr. Propwise
After slow sales at some projects in early
September,
market
commentators
were
pondering if the property market was starting

to buckle under the weight of the Total Debt
Servicing
Ratio
(TDSR)
framework.
It
appears that this pessimism was premature,

with developers racking up good sales at
some projects by going back to their favorite

playbook smaller, cheaper units.
Back to Contents
Page | 2

Sky Vue sells 60% of the project on launch
day
Artists impression of Sky Vue

Sky Vue, a 694-unit 99-year leasehold
residential project near Bishan MRT,
reportedly sold 410 of the 505 units released
on its first day, at an average price of $1,500
Back to Contents
per square foot this translates to a sellthrough ratio of around 80% of the units
launched and 60% of the entire project. Most
of the units sold were small one- and twobedroom units, with the average price of a
one-bedroom units around $750,000 while
that of a two-bedroom units being $933,000.
The developers, CapitaLand and Mitsubishi
Estate Asia, managed to keep the total cost
of the units under the magical $1 million (and
thus appeal to mass market investors and
upgraders) by shrinking the size of the units.
One-bedroom units ranged in size from 484
to 592 square feet, versus next door Sky
Habitats 635 to 958 square feet for onebedroom units. Sky Vues two-bedroom units
ranged from 678 to 915 square feet in size
versus the 721 to 1485 square feet of Sky
Habitats.
Page | 3

While CapitaLands ex-CEO had famously
called shoebox units almost inhuman, new
management seems to have reversed course,
with the smallest units at Sky Vue now
breaking below the 500 square feet shoebox
barrier.
a redefinition of what a bedroom stands for.

Whereas in the past a bedroom referred to
a room that was big enough to comfortably fit
a queen-sized bed, two side tables and a
wardrobe, bedrooms in some projects
cannot even fit a standard-sized double bed.
But its just business. Sky Habitat, with larger

unit sizes and a higher per square foot price,
has only sold ~30% of its units despite being
launched over a year ago. Clearly, total unit
cost and hence affordability is a key factor to
drive sales, even more so now given the
introduction of the TDSR. CapitaLand is just
responding to market forces.
With property prices rising faster than

incomes in recent years, and the
governments cooling measures and debt
curbs constraining affordability, this Hong
Kong-ization of Singapore property has
become an inevitable trend as developers
design units that people are willing and able
to buy (but perhaps not willing to live in),
while propping up their sales and margins.
Hong
Kong-ization
property
of
Singapore
Sky Vue is just the latest example of a trend

weve been seeing in new developments over
the past few years the shrinking of flats and
Back to Contents
I dont know if youve seen a Hong Kong

apartment before, but I once visited one
where you could only open the bedroom door
halfway as it was blocked by the single bed in
the room.
Page | 4

And there was nothing else that could fit into
the room just the single bed. And perhaps
youve heard of the toilets so small that you
could only enter it by reversing in.
Caveat Emptor
For buyers, I would caution you to see the
actual property before making any purchase
decision.
Properties
are
no
longer
comparable just by looking at the number of
bedrooms, or even the Gross Floor Area. A
three-bedroom apartment can range from
less than 1,000 square feet to close to 2,000
square feet. The mix of bay windows,
balconies, air-con ledges and PES space in a
unit could drastically alter how big two
different properties feel and the useable
area, even if they are of the same size.
For people who buy properties after looking at
an ingeniously-designed show flat or off the
plan, well, good luck.
Back to Contents
Page | 5

Residential
Residential sector most hit by TDSR
Following the introduction of the TDSR
framework in June, demand in all segments
of the property market sank in July. According
to property consultancy CBRE, residential
deals were hit the hardest with a decrease of
56.6 percent, while transactions of strata
industrial and commercial units went down by
20.9 percent and 31 percent respectively from
June. Transactions for commercial units were
supported by a relatively more resilient resale
market. New sales of private homes by
developers decreased by 73.3 percent to 482
in July compared with 1,806 in June. Resale
Back to Contents
private homes in July fell 14.3 percent to 539

based on caveats lodged. The number of
strata units developers sold in the commercial
segment went down by 57.6 percent to only
42, compared with 99 of June. Developers
strata sales in the industrial segment also fell
32.3 percent, with resales falling 19.7 percent
to 118 units in June.
Sideline income for property
squeezed by cooling measures
agents
After their bread-and-butter margins were

affected by cooling measures, a small
proportion of real estate agents are
witnessing the disappearance of their sideline
Page | 6

income which is by dabbling in property
investments themselves. According to the
Council for Estate Agencies, there are 31,040
registered property salespersons as of Jan 1,
2013. The number of agents who invest in
local properties is reported to be about 3
percent of the total number of buyers.
Property investment seminars on CEA
radar
As more and more property investors trying to
circumvent the successive rounds of cooling
measures attend seminars promising to teach
buyers to buy property with no cash outlay or
loopholes to owning multiple properties in
recent months, property experts urged that
these seminars be regulated by the
authorities. According to Mr. Mohamed Ismail,
PropNex Realty chief executive, such
Back to Contents
unregulated claims may be damaging to the

industrys
reputation
and
consumer
protection, especially with the TDSR, and as
more Singaporeans are looking for foreign
properties to invest in.
Commercial
Reit flotations bolsters
investment sales
Q3
property
Q3 property investment sales big-ticket

transactions of at least $10 million have
reached $13 billion with $9.3 billion from
deals originating from the private sector. This
quarters sale doubles the $6.4 billion of Q2
and is the strongest showing since the $8.7
billion of Q3 in 2007. The sale has been
supported by three real estate investment
trust flotations with nearly $5.7 billion in asset
Page | 7

sales, two government land sales sites of
$2.35 billion at Telok Ayer Street and Yishun,
and the sale of Grand Park Orchard hotel to
Bright Ruby Resources for $1.16 billion. Due
to the TDSR framework, the private-sector
deals have decreased from 90 in Q2 to only
58 this quarter. Savills forecasts that
investment sales would be $2-3 billion in the
October-December period, which will take the
full-year figure to $27-28 billion.
Back to Contents
Page | 8
Postal
District
1
2
9
9
9
9
10
10
10
10
10
11
11
11
11
12
14
14
15
15
15
15
15
15
15
Project Name
THE SAIL @ MARINA BAY
ICON
THE IMPERIAL
THE BAYRON
THE BAYRON
TRIBECA
REGENCY PARK
VIZ AT HOLLAND
SPANISH VILLAGE
HOLLAND PEAK
TANGLIN REGENCY
GLOUCESTER MANSIONS
NOVENA HILL
CHANCERY COURT
LA SUISSE
ROCCA BALESTIER
CITY PLAZA
THE ALCOVE
THE SEA VIEW
PEBBLE BAY
PEBBLE BAY
ONE AMBER
THE ESTA
SANCTUARY GREEN
IDYLLIC RESIDENCES
Back to Contents

Tenure
(sqft)
Price ($) ($ psf)
667
1,280,000 1,918
99
1,119 2,001,000 1,787
99
1,733 3,340,000 1,927
FH
1,432 2,310,000 1,614
FH
1,432 2,300,000 1,607
FH
1,195 1,600,000 1,339
FH
3,649 6,900,000 1,891
FH
1,259 2,100,000 1,667
FH
1,109 1,755,000 1,583
FH
2,551 3,650,000 1,431
FH
990
1,200,000 1,212
99
657
1,000,000 1,523
FH
710
1,030,000 1,450
FH
926
1,260,000 1,361
99
1,679 1,930,000 1,149
999
1,087 1,065,000
980
FH
915
970,000
1,060
FH
1,302 1,160,000
891
99
1,647 3,000,000 1,822
FH
2,745 4,350,000 1,585
99
1,894 2,940,000 1,552
99
1,259 1,940,000 1,540
FH
1,345 2,030,000 1,509
FH
1,119 1,360,000 1,215
99
1,109 1,308,000 1,180
FH
Postal
District
15
15
15
16
16
17
18
19
21
21
21
22
22
23
23
23
23
23
23
26
Project Name
CHELSEA LODGE
COSTA RHU
DUNMAN VIEW
EAST MEADOWS
THE BAYSHORE
THE GALE
NV RESIDENCES
THE CHUAN
GARDENVISTA
SHERWOOD CONDOMINIUM
SIGNATURE PARK
CASPIAN
PARC OASIS
GLENDALE PARK
YEWTEE RESIDENCES
CENTURY MANSIONS
REGENT HEIGHTS
PALM GARDENS
THE MADEIRA
THE CALROSE

Tenure
(sqft)
Price ($) ($ psf)
775
895,000
1,155
FH
1,851 2,088,000 1,128
99
1,216 1,300,000 1,069
99
1,464 1,500,000 1,025
99
947
965,000
1,019
99
1,345 1,415,000 1,052
FH
1,109 1,168,000 1,053
99
1,582 2,020,000 1,277
999
1,249 1,500,000 1,201
99
936
1,119,020 1,195
FH
1,421 1,550,000 1,091
FH
872
1,050,000 1,204
99
1,076 1,000,000
929
99
1,249 1,300,000 1,041
FH
1,206 1,200,000
995
99
936
860,000
918
FH
1,163 1,020,000
877
99
1,206
905,000
751
99
2,659 1,880,000
707
99
1,421 1,738,000 1,223
FH

Page | 9
Issue 122
CONTENTS
p2
FROM THE
EDITOR
4 Outrageous Claims Made by

Property Experts
Hope you like it!
p8
p11
Mr. Propwise
Contribute
Advertise
News.

4 Outrageous Claims Made by Property Experts

By Gerald Tay (guest contributor)
A Business Times article titled Property
Investment Seminars on CEA Rader was
recently published, where PropNex Reality
Chief Executive Mohamed Ismail said:
Theres a need for the authorities to regulate
the content and claims by these speakers. I
support Mr. Ismails call for the authorities to
tighten the content and claims made by these
speakers, be it in property, stocks, or
commodities investment.
More Singaporeans looking at overseas
property investments
With the implementation of multiple rounds of
cooling measures and the Total Debt
Servicing Ratio (TDSR) framework,
Back to Contents
Page | 2

more Singaporeans are looking at overseas
properties to invest in. From a business point
of view, it is enterprising for some seminar
providers to tap on this demand pool of
potential buyers with enticing claims in their
advertisements.
Having spent more than two decades in sales
with a majority of that in direct sales, Ive
known and used every sales trick in the book.
If youve been to free seminar previews, you
would know what I mean. Some speakers are
in fact more a salesman than the expert they
claim to be.
From my personal wealth background and
experiences, Ill share and debunk four
popular outrageous investment claims by
property experts.
Claim #1: Own Multiple Properties in
Multiple Countries
saying to invest in multiple countries is to

make themselves sound like jet setting
international tycoons. They advocate that
ordinary folks should invest in multiple foreign
countries, although they give no reason for
doing so other than their contention that it is
easy and the properties are cheap.
To invest overseas, you have to learn the real
estate tax framework of each country,
numerous real-estate laws and customs and,
worst of all, how to value properties in each
country. Its amazing how these speakers
know so much about so many different
countries they claim to invest in when they
neither live nor were born there.
My late multi-millionaire grandfather never
owned any overseas properties outside
Singapore. I mentioned this once and he
asked, What would be the point of investing
in different countries?
I suspect the real reason these speakers are

Back to Contents
Page | 3

You could get some diversification against
certain nationwide risks like adverse changes
in government policies, but the potential
losses could outweigh the gains.
Also, owning in different countries does not
protect you from multi-national risks like
higher global interest rates or worldwide
recession or depression. I know of a couple of
property investors who have a vacation home
or two in foreign countries, but no competent
investor wants to own rental properties in
multiple countries.
Some major developers have decided to
conquer the world by doing their thing
outside Singapore. Not everyone is
successful. About the only property investors
who should be in multiple countries are
owners of hotel chains and theme parks like
Disneyland.
Back to Contents
Your rental properties generally should be in

one specific country you know very well, i.e
Singapore and maybe two at most.
Claim #2: Own Multiple Overseas
Properties with Little or No Money Down
The main reason the mass market gurus
push nothing down is to overcome the
objection of I dont have any cash to invest
when they try to peddle their expensive boot
camps or mentoring services.
Gurus do not push little or no money down
because it makes sense for an investor.
Rather they push it because it helps them
market their products and services.
I mentioned this advice to one of my USA
friends who is a local multi-millionaire realestate investor and he said, In the USA, a
sound,
Page | 4

long-term investment, in other words, quality
properties in good neighbourhoods, is much
more important than finding a deal with 100%
financing. Even if its 100% financed, a bad
property is a bad property.
From experience, no money down is not the
bed of roses most people think, especially for
foreign investors. The type and quality of the
property offered by sellers willing to finance
you is rarely mentioned. Quality properties in
good markets rarely if ever can be bought with
little or no money down.
An example is my recent successful
acquisition of a US$2.2 million commercial
property in the USA which was financed
partially by a US bank with some cash downpayment. With tight credit financing in the US,
the only reason why banks are willing to
finance such deals is because it is a quality
property deal with a quality tenant.
Back to Contents
Unfortunately, many local gurus have made

buying overseas properties with no or little
money down more important than buying a
quality property. Ordinary folks would be better
off in most cases spending the extra time
working a second job and saving money for a
down payment instead.
Claim #3: Below-Market Value (BMV) Deals
are the Norm
This is an old chestnut of property gurus. In
the real world, below-market value (BMV) or
under-valued deals are very rare. Experienced
investors regard them with suspicion. They
typically mean the buyer overpaid or the
property is just worth what it is.
Competent investors always pay market price
if it meets their required yield returns. It is
much more time consuming to find BMV
deals, so it is mainly a strategy for those
whose time has little value.
Page | 5

If you always try to source for BMV deals, you
would be forced into a few niches where you
would wander the land as a sort of beggar
pleading with sellers to sell you their
properties at below-market price. You dont
become rich by being cheap to others.
Instead of trying hard to find that magical BMV
deal, try asking yourself this: Where can I find
under-valued areas to invest in instead? Also,
Have I acquired enough financial education
to know when that opportunity comes along?
Often, the answer lies in your own backyard.
Claim #4: Anyone Can Play the Property
Game and Become Rich/a Millionaire
When property gurus peddle their expensive
boot camps or mentoring services to the
masses, this makes a very compelling sales
pitch. But this is the opposite of the truth. As
long as anyone is holding on to a day job as
an employee, this dream is forever
Back to Contents
improbable. I do not know anyone attending

those expensive boot camps or mentoring
services who have become rich or a
millionaire. Have you?
You
can
become
wealthy
through
investments, but you might not become rich or
a millionaire. Theres a huge difference in
those terms. Becoming wealthy means being
financially free without having to work (if you
dont want to) as you have other recurring
income sources. And in property, it means
recurring net income after all debts and
expenses.
You dont need a large number of properties
to become wealthy. All you ever need as an
ordinary investor is learn to acquire one or two
really good quality properties that will put
money in your pocket every month and help
pay off your home mortgage and daily
expenses.
Page | 6

Bottom-Line
The more important problem is that the
novices
these
gurus
target
cannot
tell whether the sales pitch is a bad idea or a
good idea. There are no magic formulas,
secret techniques or fanciful investment
strategies to bring you quickly from rags to
riches.
By guest contributor Gerald Tay, CEO of

CREI Academy Group, who exposes widelyheld property investment myths that have
proven highly ineffective in creating wealth,
and prevent a comfortable retirement for the
ordinary investor.
For Property Wealth, as in any successful

business venture, theres only your hard
work,
constant
education
and
an
entrepreneurial mind-set with steep learning
curves to successes. I hope youll discard
sales advice and get sound advice on
property
investment
through
proper
education.
I welcome your comments if you are one of
those who have been ripped off with these
over-hyped claims disguised as wisdom.
Back to Contents
Page | 7

Residential
TDSR continues
developer sales
to
affect
August
Despite a recovery last month, new private

home sales were suppressed in August by
the double influence of the TDSR framework
and the Hungry Ghost month. According to
the data of the Urban Redevelopment
Authority (URA), there were 742 private
homes transacted in August, not including the
hybrid ECs, which was 54 percent higher than
that of July, but just over half of 1,427 sales of
last
August.
Mass-market
residences
dominated August property activities, with
Outside Central Region homes accounting for
Back to Contents
73 percent of sales and 76 percent of

launches. Rest of Central Region made up 15
percent of sales and 13 percent of launches,
and Core Central Region took up 12 percent
of sales and 10 percent of launches. 726 EC
units were sold in August, compared with 112
units sold in July. Developers launched 927
units for sale in August, compared with 557
homes of July. A Religare Capital Markets
report said this was the first time that sales
have lagged for two straight months since
January last year. It is said that TDSR caused
sales to take longer to go through due to
more detailed financial assessments.
Page | 8

HDB extends interim housing scheme
More families now can temporarily rent an
HDB flat while waiting for their new one to be
ready through a faster and more convenient
process.
Under
HDBs
Parenthood
Provisional
Housing
Scheme (PPHS),
couples engaged to be married, married
couples either as first-time or second-time
applicants, and divorced or widowed parents
with children are also eligible for applying for
these flats, with priority still reserved for
married couples. Monthly rentals for 800 flats
available are from $800 to $1,900 depending
on size and location. All eligible families can
now apply for PPHS flats on HDB's website or
at e-kiosks at any HDB Hub or branches.
They can also move in faster, as they can
apply for a PPHS unit right after booking a
new flat, instead of having to wait for an
Agreement for Lease, which could take a few
Back to Contents
months. HDB expects families to be able to

move into their interim homes by the following
month. Engaged couples can now apply for
the scheme provided that they must produce
their marriage certificate within three months
of moving into the PPHS flat. It was reported
that the latest changes are unlikely to impact
the overall housing market much. Since the
schemes introduction in January, 327 married
couples have moved into PPHS flats.
HDB 5-year bond issue sold for $1.45
billion
HDB had its largest bond sale ever last week,

when its $1.45 billion five-year bonds were
sold amid a volatile market. This proves that
demand is always strong for a solid
Singapore issuer. The HDB, a statutory board
and frequent issuer, initially wanted to put the
Page | 9

issue at $1 billion, but then increased it to
$1.45 billion given the strong demand. The
deal was priced at 2.365 per cent, 55 basis
points above the five-year swap offer rate
(SOR) at 1.815 per cent. HDB usually sells
tranches of $400 million to $500 million under
its $22 billion multi-currency medium term
note programme, but in January it had a $1.2
billion deal.

Commercial
Prime office rents increases by 1.4% in Q3
A report released by Knight Frank revealed
that prime office rents increased in Q3 amid
higher leasing enquiries. On contrary to
seven consecutive quarters of decreased or
flat growth, prime Grade A+ rents in Marina
Bay and Raffles Place went up by 1.4 percent
quarter-on-quarter, standing at between $9.90
Back to Contents
and $12.00 psf. In this sub-segment, smaller

office spaces received high demand from
smaller companies who were previously
located in serviced offices and are moving
back to traditional office space. CapitaGreen,
the latest premium Grade A office
development, is now open for interested
tenants with asking rents between $13 and
$14 psf. Other Raffles Place Grade A office
rents also increased by 0.6 percent quarteron-quarter to between $9.30 and $10.45 psf.
Outside the CBD, Orchard Roads average
office rents for Grade A space increased by
0.6 percent quarter-on-quarter, to between
$7.00 and $10.90 psf. Average rents in the
Suntec/Marina Centre/City Hall area rose 0.5
percent quarter-on-quarter, while rents in the
Beach Road/Middle Road decreased by 0.4
percent quarter-on-quarter.
Page | 10
Postal
District
3
8
8
9
9
10
10
11
11
12
15
15
15
15
15
15
15
15
16
16
16
16
17
18
Project Name
MERAPRIME
PARC SOMME
CITY SQUARE RESIDENCES
GRANGE INFINITE
ILLUMINAIRE ON DEVONSHIRE
VALLEY PARK
JERVOIS GROVE
NINETEEN SHELFORD ROAD
THE ARCADIA
TREVISTA
WATER PLACE
VILLA MARINA
SERAYA BREEZE
BLU CORAL
MOUNTBATTEN SUITES
HOMEY GARDENS
BLU CORAL
LAGOON VIEW
COUNTRY PARK CONDOMINIUM
THE CALYPSO
COUNTRY PARK CONDOMINIUM
BAYSHORE PARK
LIVIA
Back to Contents

Tenure
1,313 1,900,000 1,447
99
441
706,000 1,600
99
1,518 2,000,000 1,318
FH
2,680 6,378,000 2,380
FH
721 1,660,000 2,302
FH
1,216 2,050,000 1,685 999
1,410 1,900,000 1,347
FH
915 1,350,000 1,476
FH
3,810 4,000,000 1,050
99
1,281 1,800,000 1,405
99
1,227 1,600,000 1,304
99
1,249 1,410,000 1,129
99
1,001 1,128,000 1,127
FH
1,163 1,300,000 1,118
FH
700
750,000 1,072
FH
1,744 1,700,000 975
FH
2,056 1,680,000 817
FH
1,647 1,270,000 771
99
1,389 1,700,000 1,224
FH
764
933,888 1,222
FH
1,173 1,400,000 1,193
FH
1,292 1,448,000 1,121
99
1,378 1,298,000 942
FH
1,539 1,460,000 949
99
Postal
District
18
18
19
20
20
20
21
21
21
21
21
22
23
23
23
26
27
Project Name
DOUBLE BAY RESIDENCES
MELVILLE PARK
THE SPRINGBLOOM
THE GARDENS AT BISHAN
SIN MING PLAZA
FLAME TREE PARK
THE CASCADIA
SUMMERHILL
SIGNATURE PARK
CLEMENTI PARK
THE MAYFAIR
PARK NATURA
HILLINGTON GREEN
PALM GARDENS
BULLION PARK
EUPHONY GARDENS

Tenure
3,111 2,700,000 868
99
990
835,000
843
99
1,130 1,280,000 1,133
99
883 1,031,000 1,168
99
1,442 1,620,000 1,123
FH
1,862 2,080,000 1,117
FH
1,421 2,579,000 1,815
FH
1,604 1,815,000 1,132
FH
915 1,000,000 1,093
FH
1,690 1,760,000 1,041
FH
1,345 1,400,000 1,041
FH
1,163 1,120,000 963
99
1,378 1,600,000 1,161
FH
990 1,088,000 1,099 999
1,206 940,000
780
99
1,873 1,850,000 988
FH
732
668,000
913
99

Page | 11
Issue 121
CONTENTS
p2
FROM THE
EDITOR
3 Reasons Why Developers Can Sell
Welcome to the 121st edition of the

At High Prices
Hope you like it!
p7
p13
Mr. Propwise
(August 28 September 3)
Contribute
Advertise
News.

3 Reasons Why Developers Can Sell At High Prices

By Property Soul (guest contributor)
Have you ever wondered why new projects
from developers are able to command a
large premium in asking price, sometimes up
to fifty percent higher than recently
completed nearby projects?
An interview with a VIP property buyer
Below is an abstract from my interview with a
VIP property buyer (as compared to the
usual retail buyers).
Me: How do you manage to buy before
everyone else does?
VIP: After developers set the prices, easily
twenty to forty percent higher than nearby
projects,
Back to Contents
Page | 2

they need to test the water. They will invite us
to a project preview where we can pick our
preferred units. Whatever price we are willing
to pay, the developers can use it to convince
the market that it is a reasonable market
price.
Me: How do you make a profit?
VIP: Say, if we buy at $1,000 per square foot,
developers can sell at $1,100 during actual
launch. Phase two comes a few weeks later
with prices increased to $1,200, and so on
and so forth. Since we've chosen the best
units, we can offload with at least twenty
percent profit.
Me: And the developer has just successfully
set a new high for property prices in the
district!
There are three major factors that set the
stage for developers to market uncompleted
Back to Contents
projects at high future prices (i.e. prices that

already account for future price appreciation
expectations):
1. The advantages of market domination
The property developer industry is an
oligopoly. It is dominated by a few big players
which are often large conglomerates.
The entry barrier for new players in this
industry is exceptionally high. With limited
supply and high cost of land, it is not easy for
small developers to raise sufficient funds or
obtain financing from the bank. They also
cannot compete with the big guys in terms of
branding and their track record in past
projects.
Bigger players have stronger financial muscle
to build their own land bank. They can drive
construction of projects in time to capture a
booming market.
Page | 3

They enjoy the benefits of economies of scale
or cost leadership from a large number of
ongoing projects. They have a handsome
budget for marketing and for leverage to hire
a good marketing agent. They have enough
cash reserves to hedge against poor sales
during bad times.
It is therefore not surprising to see a high
percentage of private housing projects all
supplied by the top few developers. The
advantages of market domination allow them
to set their list prices at the highest possible
level and to reap a huge profit.
2. Collaboration among big players
The big players have good connections
amongst themselves to make the most of a
mutually beneficial partnership. They can
collaborate with each other by forming joint
ventures to bid for land parcels, to secure
Back to Contents
borrowings from banks, or to diversify their

investment.
Among the top property developers, they can
seek consensus and alignment on many
decisions, for instance:
When to launch or re-launch in a quiet or
recovering market;
Which type of projects to launch in different
locations; and
What projects to hold back to avoid
unnecessary competitions for similar projects.
When they are setting prices for a new
launch, they don't have to make reference to
the average transacted prices of existing
developments in the same district. They can
benchmark against each others list prices in
other districts in order to set their prices at a
new high in a hot market.
Page | 4

Of course, no developer can move new
properties off the shelves without the support
of local banks to provide buyers the
necessary financing. It is not uncommon to
see developers tying up with a few banks to
offer housing mortgage packages to buyers at
the sales galleries.
In order to secure business from home
buyers, banks work with their valuers to
ensure that the valuation of the uncompleted
property matches with the selling price, so
that they can disburse the exact amount of
housing loan required by the buyers.
materials have taken a toll on the bottom line

of developers.
It is arguable that developers have no choice
but to markup considerably to ensure their
profitability, although how big a safety margin
is reasonable is entirely up to their discretion.
After all, if they don't make hay while the sun
shines, who can tell what will happen when
market direction changes?
3. Willing sellers, willing buyers
In the end, the matter boils down to market

response
and
customer
acceptance.
Developers can't sell new flats at future prices
if buyers are unwillingly to pay a premium
price.
In the past few years, property developers

have paid a high price for land parcels sold by
the government or from en bloc sales.
Likewise, the tight supply and spiraling costs
of construction manpower and building
It doesn't matter whether the selling price is

twenty or fifty percent higher than the most
recent transacted price of a resale flat in the
same area, so long as everyone believes that
the market price will be even higher by the
Back to Contents
Page | 5

time the new flats are ready for occupation.
Believing in the future that is the magic pill
of getting buyers to pay future prices in a
booming property market!

By Property Soul, a successful property
investor and enthusiast who shares her
experiences and knowledge on her blog.
Back to Contents
Page | 6

Residential
TDSR weakens new private home sales
It is reported that the new loans curb curb in
the form of the Total Debt Servicing Ratio
(TDSR) has severely affected recent private
home launches of the Glades in Tanah Merah
and The Skywoods in the Dairy Farm area,
which saw weak and stalled sales since the
first day of booking. Keppel Land sold around
80 units at 99-year-leasehold The Glades
next to Tanah Merah MRT Station, with the
majority of the sales done on the first day.
The average price for the 200 units released
in this 726-unit development ranged from
$1,450 to 1,500 psf. However, the nearby
Back to Contents
Urban Vista condo, when released back in

March, saw 220 units being sold by
Fragrance and World Class Land with the
average price of $1,500 psf. The 99-year and
420-unit project Skywoods only sold 35 units
last Friday, then 10 units on both Saturday
and Sunday with the average price for the
first 150 units being $1,250 psf. Skywoods
CEO Neo Tiam Boon admitted that they had
not sold as much as they wanted due to the
TDSR, with many visitors not familiar with the
increased number of documents needed for
loans from banks.
Page | 7

Homeowners sue developer of luxury
Sentosa Cove condo
More than 100 homeowners of oceanfront
residential enclave, The Coast at Sentosa
Cove, have filed a lawsuit against its
developer and three contractors due to the
latters failure to fix defects in the common
areas of the 249-unit luxury residential
development. The defects include termite
infestation, flooded staircases, a rotting
timber pool deck, incorrect installation of
electrical fittings, faulty light fixtures, leakages
at walls and through electrical conduits, poor
finishes to walls at apartment entrances. The
developer is revealed to be Ho Bee Cove.
The Management Corporation Strata Title
(MCST) council, which filed suit on behalf of
108 owners, said that although more than
$93,000 was spent to fix minor defects,
rectification costs are estimated to be a few
Back to Contents
million dollars. In its official statement, Ho

Bee Group said it is a responsible developer
and is willing to fix any genuine defects, and
that the alleged defects were, in fact, caused
by the MCSTs negligence.
Belmont Road GCB up for sale at $50m
A good class bungalow (GCB) at 74 Belmont
Road is up for sale at about $50 million, or
$1,890 psf. The property is located on a land
area of 26,455 sq ft and is regular in shape,
with a 16,200 sq ft built-up area of a main
house and a self-contained guest house. The
main house includes formal dining and
entertainment areas, a family room, a master
bedroom and four well-sized bedrooms. The
guest house is linked to the main house by a
sheltered walkway. There is also a 20-metre
mineral water swimming pool.
Page | 8

The marketing agent for the property is
Savills Singapore, whose deputy managing
director Steven Mind said that the GCB
market remained the buying interest of the
ultra rich with limited supply, strong holding
power of GCB owners and steady GCB
prices. The average unit price based on land
area for GCBs transacted so far this year
increased by 1.1 percent to $1,387 psf
compared with the average unit price for the
whole of 2012, according to Savills.
Ho Bee criticizes defect claims by home
owners at Sentosa Cove
The developer of the oceanfront luxury Coast
at Sentosa Cove, Ho Bee Investment, has
criticized construction defect claims by more
than 100 home owners as frivolous and that
Back to Contents
their estimates of repair cost have been

grossly inflated. The MCST lawyers
previously sent Ho Bee Cove a letter on Feb
20 to demand defects in the common areas
be rectified, which was estimated by the
MCSTs building expert to cost more than $2
million. However, according to Ho Bee, its
own building expert, Robinson Jones
Associates (RJA) assessed the alleged
defects to cost no more than $200,000 to be
repaired. Ms. Monica Neo, secretary of the
MCST responded that the costs to repair
defects in the entire estate could now be as
high as $5 million. Ho Bee argued that its
consultants including RJA found many of
these alleged defects not genuine but only
due to fair wear and tear or the lack of
adequate and proper maintenance.
Page | 9

CapitaLands new Bishan condo to be
priced lower than neighbor Sky Habitat
CapitaLands new 694-unit condo project in
Bishan, whose name has not been known,
will be priced lower than its next-door Sky
Habitat. The project has a higher proportion
of smaller units to keep lump sum prices
within the reach of more buyers. The first
phase of units is to be priced from $1,380 to
$1,550 psf. However, CapitaLand declined to
reveal how many or what types of units there
will be or their psf average price until the
starting of the sales bookings. The project
had its showflat open this week. Sales
bookings are available two to three weeks
later. Sales at Sky Habitat took place in April
last year, with 131 units sold at a median
price of $1,583 psf, and at prices ranging
from $1,435 psf to $1,893 psf in that month.

Back to Contents
Commercial
Shophouse deals slow, but with steady
prices
Since the TDSR framework introduced in late
June, the volume of shophouse transactions
has slowed but their prices apparently are
holding up. According to Savills Singapores
analysis of URA Realis caveats data on Sept
9, the number of caveats lodged for
shophouses decreased from 34 in May to 22
in June to 11 in July and only 10 in August,
although more caveats for Augusts
transactions are expected in the next few
weeks. The 21 caveats for July and August
added up to $122.4 million. In Q2 of 2013,
there were 74 caveats lodged totaling $449.5
million. For the first eight months of 2013,
transactions reached $1.04 billion, while it
was $1.38 billion for 2012 and $1.15 billion for
2011.
Page | 10

Between January 2011 and August 2013, the
most active buyers of shophouses are
companies and Singaporeans, followed by
individual buyers from Malaysia. 72 percent of
shophouses acquired by companies were
priced at more than $3 million per transaction,
while about half of Singaporeans' purchases
were in the $1 million to $3 million range.
Centurion Corporation
Woodlands site
wins
bid
for
Mainboard-listed
Centurion
Corporation,
whose main businesses are in dormitories
and optical discs, has won the bid for a
103,000 sq ft site in Woodlands which will be
developed into a workers dormitory. The
dormitory is planned to have 4,100 beds for
workers in the marine, process and
Back to Contents
manufacturing industries when completed in

2015. Along with other developments, the
total bed count for the company is expected
to be 54,000 by the completion of the
Woodlands project, up from around 29,000.
The company had been awarded the tender
by JTC Corporation for the plot at Woodlands
Avenue 10. Centurions winning bid was
$80.8 million through an indirectly whollyowned subsidiary, beating 12 other bidders.
The acquisition will be funded through internal
resources and bank loans, and no material
impact on the net tangible assets and
earnings per share of the company is
expected for the financial year ending Dec 31.
Shares in Centurion closed one percent
higher at 49 cents on Sept 12.
Page | 11

Redas head sees opportunities for the
property sector
Speaking at the Real Estate Developers'
Association of Singapore's (Redas) midautumn celebration, its president, Chia Boon
Kuah said the future shines bright with
exciting possibilities for the property sector
even when the market takes its course
through the cycle of business. In spite of the
policy measures affecting the property market
introduced this year, interest from foreign
players, including both developers and private
equity players, in buying development land in
Singapore remains unabated as they believe
in the future of Singapore. Given this, Redas
would increase its public engagement in
areas such as offering ideas to the authorities
on new plans for Tanjong Pagar and Paya
Lebar.
Back to Contents
Page | 12
Non-Landed Residential Resale Property Transactions for the Week of Aug 28 Sep 3
Postal
District
1
5
5
5
8
9
9
9
9
9
9
9
10
11
12
12
14
15
15
15
15
16
16
17
Project Name
THE CLIFT
ONE-NORTH RESIDENCES
CARABELLE
CARABELLE
PARC SOMME
HELIOS RESIDENCES
VISIONCREST
SCOTTS HIGHPARK
THE BAYRON
THE BAYRON
THE BAYRON
THE BAYRON
HOLLAND RESIDENCES
BIRMINGHAM MANSIONS
AVA TOWERS
PUBLIC MANSION
GRANDLINK SQUARE
AALTO
RIVEREDGE
NEPTUNE COURT
NEPTUNE COURT
WATERFRONT KEY
THE BAYSHORE
FERRARIA PARK CONDOMINIUM
Back to Contents
Area
(sqft)
506
980
1,744
1,302
581
1,668
915
3,466
872
904
1,432
1,432
980
1,711
1,281
1,959
1,109
1,528
1,066
1,270
1,636
915
1,227
958
Transacted
Price ($)
1,190,000
1,530,000
2,337,000
1,620,000
860,000
5,280,000
2,100,000
6,800,000
1,500,000
1,545,000
2,330,000
2,320,000
1,870,000
2,220,000
1,166,000
1,480,000
1,120,000
2,550,000
1,510,000
1,150,000
1,450,000
1,235,000
1,280,000
950,000
Price
Tenure
($ psf)
2,352
99
1,562
99
1,340 956
1,244 956
1,480
99
3,165 FH
2,295 FH
1,962 FH
1,720 FH
1,709 FH
1,628 FH
1,621 FH
1,909 FH
1,297 FH
910
FH
755
FH
1,010 FH
1,668 FH
1,417
99
905
99
886
99
1,350
99
1,043
99
992
FH
Postal
District
17
18
18
19
19
21
21
21
21
22
22
23
23
23
23
26
27
27
Area
(sqft)
BALLOTA PARK CONDOMINIUM
1,281
LIVIA
915
LIVIA
1,259
FONTAINE PARRY
2,120
CHUAN PARK
1,173
THE CASCADIA
1,098
FREESIA WOODS
1,432
SIGNATURE PARK
1,055
ROYAL COURT
1,270
THE LAKESHORE
926
THE CENTRIS
1,313
CASHEW HEIGHTS CONDOMINIUM 1,658
HILLVIEW REGENCY
1,119
REGENT HEIGHTS
1,023
REGENT GROVE
1,173
CASTLE GREEN
1,173
1,206
YISHUN SAPPHIRE
1,378
Project Name
Transacted
Price ($)
960,000
950,000
1,260,000
2,238,000
1,148,000
1,725,000
1,965,000
1,145,000
1,298,000
1,158,000
1,480,000
1,700,000
1,120,000
935,000
900,000
1,030,000
950,000
1,020,000
Price
Tenure
($ psf)
749
FH
1,038
99
1,000
99
1,055 999
978
99
1,571 FH
1,373 FH
1,085 FH
1,022 FH
1,251
99
1,127
99
1,026 999
1,000
99
914
99
767
99
878
99
788
99
740
99

Page | 13
Issue 119
CONTENTS
p2
FROM THE
EDITOR
New HDB Rules Create Anomaly Cannot

Buy HDB But Can Finance Condo?

Hope you like it!
p6
p10
Mr. Propwise
(August 14 August 20)
Contribute
Advertise
News.

New HDB Rules Create Anomaly Cannot Buy HDB But Can Finance Condo?
By Paul Ho (guest contributor)
Under the HDBs new rules issued on 27th
Aug 2013 and effective on 28th Aug 2013,
Singapore Permanent residents will need to
wait three years before they can purchase a
HDB flat. This is welcome news for most
young Singaporean couples as less
competition will mean more stable prices, but
the specifics of the rules can create an
anomalous situation where a young couple
finds they cannot finance an HDB flat but are
able to finance a private condominium.
HDBs Monthly Servicing Ratio capped at
30% and loan tenure at 25 years
In line with the governments aim to impose
financial prudence, the monthly servicing ratio
Back to Contents
Page | 2

(MSR) for HDB flats has been set at 30%.
This means that the housing related servicing
must not exceed 30% of a persons or
households gross income. For example, a
household who earns $8,000 a month
(husband $4,000 and wife $4,000) can only
spend a maximum of $2,400 on property
financing for HDB.
While a $2,400 monthly repayment ceiling
sounds fine, dont forget that this is not based
on the actual interest rates charged by the
banks, but rather a rate of 3.5% mandated by
the MAS.
For HDB property buyers, they have to meet
two criteria to get a mortgage. First the MSR
must not be greater than 30%, and the Total
Debt Servicing Ratio (TDSR) must be not
more than 60%.
Back to Contents
The loan tenure plays a part as well. If the

loan tenure is 30 years, that means that the
couple will be able to afford a higher priced
HDB flat. If the loan tenure is shorter, that
means that the price of the HDB flat they can
afford will drop. With effect from 28th Aug
2013, the HDB loan tenure for an 80% loan is
now capped at 25 years (down from 30
years).
What is the impact of this rule?

Under the impact of this rule, young couples
will face greater difficulties in buying a HDB
resale flat as they have to pass the MSR rule.
Lets take the example of a young couple (30
years old) with $8,000 joint income and
$1,200 of car loans, with no credit card or
other debt.
Page | 3

BEFORE 28 Aug 2013
TDSR which they can pass easily.
Before the rule, a young couple earning a

total income of $8,000, with a car loan
servicing of $1,200 per month can only buy
an HDB flat cheaper than roughly $700,000,
as the MSR comes up to ~31.43% based on
80% borrowing. In other words, they can only
take a maximum of a $560,000 loan.
But in the governments aim for financial

prudence, it seems that an anomaly has
opened up. This couple would be able to
borrow up to $800,000 and still meet the
TDSR (at about 59.9%) to buy a private
condominium, as private property purchases
are not subjected to the MSR requirement.
ON OR AFTER 28 AUG 2013
So to conclude: a couple cannot borrow more

than $480,000 to buy an HDB flat but they
can borrow $800,000 to buy private property
or an Executive Condominium. How is
financial prudence served in this way?
On or after the 28th Aug 2013, the young

couple cannot even afford to buy a HDB flat
that costs $600,000 as the MSR comes up to
30.04% based on 80% borrowing, with a
maximum loan of less than $480,000. This is
due to the reduction of the loan tenure from
30 years to 25 years.
As the young couple cannot pass the MSR
criteria, there is no need to compute the
Back to Contents
By Paul Ho, holder of an MBA from a

reputable
university
and
editor
of
www.iCompareLoan.com, Singapores first
Cloud-based Home Loan reporting platform
used by Property agents, financial advisors
as well as Mortgage brokers.
Page | 4
Back to Contents
Page | 5

Residential
HDB pilots new multi-generation family

flats
PRs may go after private homes following

resale flat curbs
According to the Ministry of National

Development
and
the
Housing
&
Development Board, the government is
piloting a new type of flat to house multigeneration families, the 3Gen flats. 3Gen
flats will have an internal floor area of 115 sq
m, four bedrooms and three bathrooms, and
are slightly bigger than HDB five-room flats at
110 sq m. Applicants for 3Gen flats must
form a multi-generation family with a married
or courting couple and their parents.
Subletting of rooms is not allowed during the
five-year minimum-occupation period.
Permanent residents (PRs) are reported to

be likely to have more demand for rental and
private residential markets in the next three
years, following tighter housing loan limits
and restrictions on PRs for HDB flat
purchases. Among the latest restrictions is a
three-year wait before newly-minted PRs can
buy a resale flat. According to SLP
International, the demand for private housing
is expected to increase, and hence HDB
resale volumes are predicted to decrease
between 15 and 25 percent in the next one or
two quarters.
Back to Contents
Page | 6

The Urban Redevelopment Authority (URA)
data shows a record 82,500 private homes
are expected to make their way to the market
by 2016, while the government intends to
take in 30,000 PRs a year to maintain the
stable number of PRs. However, PRs may be
deterred from buying private residential
properties due to a 5 percent additional
buyers stamp duty (ABSD) on their first
property purchase; while other PRs who
cannot afford the high prices of private
properties will go into the rental market.
New PRs likely to buy private homes
under $1m
Property consultants claim that PRs, who
hold their residency status for less than three
years and are blocked from buying HDB
resale flat, are likely to eye private homes
Back to Contents
under $1 million. Despite this, it is unlikely

that the number of private-home transactions
will rise significantly. The HDB resale market
recorded 25,094 transactions in 2012, with a
fifth of resale flats bought by PRs.
Heeton looking
iLiv@Grange
for
single
buyer
for
Heeton Holdings is looking for a single buyer

for all 30 units of its project iLiv@Grange,
which is expected to receive Temporary
Occupation Permit (TOP) in October. Heeton
Holdings is seeking $2,200-$2,300 psf for an
en bloc sale of the 16-storey tower, which
translates to $129 million to $135 million
based on the freehold District 10
development's total saleable area of about
58,500 sq ft. Heeton bought the 20,325 sq ft
site for $72.8 million, or $1,700-plus psf ppr,
Page | 7

in 2007. But if Heeton cannot secure an
attractive price for an en bloc sale, it may
proceed to sell the units individually within
two years after TOP under Qualifying
Certificate conditions. Heeton's breakeven
cost for the project is estimated to be around
$2,000 to 2,200 psf.
Commercial
Development charge expected to go up
Due to higher land prices for the past six
months, development charges (DC) from
September onwards are expected to go up
with a possible conservative pace of hikes
with the objective of promoting a stable
property markets. On average, DC rates are
predicted to increase by 0 to 5 percent for
commercial sites. As for non-landed
residential use, DC rates predictions vary: 0
Back to Contents
to 3 per cent for Colliers, 3 to 5 percent for

Jones Lang LaSalle and 10 to 20 per cent for
CBRE. Regarding industrial use, DC rates
could rise by 10 to 15 percent according to
CBRE, sub-one percent for JLL and 0 to 3
percent for Colliers. DC rates are considered
the governments reading of property values
as they could affect redevelopment sites
when they are paid to the state in exchange
for the right to enhance the use or build
bigger projects on the sites. DC rates are
revised every six months, depending on
current market values.
FCL chief sees bottom for office rents
Frasers Centrepoint Ltd (FCL) chief executive
Lim Ee Seng said that office rents could hit a
bottom while suburban malls and hospitality
remain resilient.
Page | 8

FCL has benefited from stable rentals from
suburban mall space of 6.8 milion sq ft, even
during the SARS outbreak and global
financial crisis. Hospitality is also considered
stable by FLC, which is looking into a
possible listing of a hospitality Reit.
Four industrial sites up for tender
Four industrial sites two in Gambas
Crescent in Sembawang/Woodlands area
and two in Tuas South have been released
by the government for tender, the first four
plots under the confirmed list of 2013 H2
Industrial Government Land Sale (GLS)
Back to Contents
Programme. Property consultants expect the

Gambas sites, which are located 700 metres
from Sembawang MRT station, next to the
future North-South highway and mature
Woodlands and Senoko industrial estate with
residential
catchment
beneficial
to
businesses, to have higher winning bids than
the Tuas sites. In addition, the 30-year
leasehold Gambas sites are zoned for
Business 1 use on this year's Industrial GLS
Programme. The zoning typically allows light
and clean industrial use, and strata
subdivision, with the minimum strata size set
at 150 sq m gross floor area.
Page | 9
Non-Landed Residential Resale Property Transactions for the Week of Aug 14 Aug 20
Postal
District
4
5
8
8
9
9
9
9
9
10
10
10
10
11
11
11
12
14
15
15
15
15
15
Area
(sqft)
2,207
VISTA PARK
947
SUITES @ OWEN
366
URBAN LOFTS
667
LEONIE HILL RESIDENCES
1,141
THE IMPERIAL
1,808
KIM SIA COURT
1,421
WILKIE 80
560
ASPEN HEIGHTS
3,197
THE TESSARINA
1,324
FIFTH AVENUE CONDOMINIUM 1,615
SIXTH AVENUE VILLE
1,238
THE SERENADE @ HOLLAND
1,787
1,281
CHANCERY COURT
2,271
HILLCREST ARCADIA
915
KIM KEAT GARDENS
1,335
SIMS GREEN
1,238
CAMELOT BY-THE-WATER
3,294
THE ATRIA AT MEYER
3,261
COSTA RHU
1,399
EAST PALM
1,066
IDYLLIC RESIDENCES
1,798
Project Name
Back to Contents
Transacted
Price ($)
4,500,000
988,000
700,000
865,000
2,300,000
3,616,000
2,800,000
1,040,000
4,950,000
2,140,000
2,590,000
1,910,000
2,323,000
2,400,000
2,700,000
920,000
1,130,000
1,110,000
4,830,000
4,600,000
1,660,000
1,210,000
1,680,000
Price
Tenure
($ psf)
2,039
99
1,043
99
1,913
FH
1,296
FH
2,016
FH
2,000
FH
1,971
FH
1,858
FH
1,548 999
1,616
FH
1,604
FH
1,543
FH
1,300
99
1,874
FH
1,189
99
1,006
99
847
99
897
99
1,466
99
1,410
FH
1,186
99
1,135
FH
935
FH
Postal
District
16
16
16
16
16
16
16
17
18
18
19
19
20
20
21
21
21
21
21
22
22
22
23
Project Name
EAST COAST RESIDENCES
OPTIMA @ TANAH MERAH
WATERFRONT WAVES
THE SUMMIT
THE BAYSHORE
THE BAYSHORE
KEW GREEN
SANDY PALM
EASTPOINT GREEN
MELVILLE PARK
FONTAINE PARRY
GLASGOW RESIDENCE
GRANDEUR 8
GRANDEUR 8
JARDIN
THE CASCADIA
THE BLOSSOMVALE
GARDENVISTA
ENG KONG GREEN
THE CENTRIS
PARC VISTA
LAKEPOINT CONDOMINIUM
THE DAIRY FARM
Area
(sqft)
1,023
1,302
1,345
840
969
980
3,595
1,528
1,141
936
915
1,421
1,227
1,195
1,819
1,238
1,528
1,130
1,044
1,259
1,259
2,077
1,518
Transacted
Price ($)
1,460,000
1,838,800
1,578,888
960,000
1,060,000
910,000
2,550,000
1,280,000
1,070,000
815,000
1,130,000
1,250,000
1,390,000
1,348,000
3,665,800
2,142,360
2,050,000
1,400,000
1,250,000
1,508,000
1,220,000
1,200,000
1,800,000
Price
Tenure
($ psf)
1,428
FH
1,412
99
1,173
99
1,143
FH
1,094
99
929
99
709
99
837
99
938
99
870
99
1,235 999
880
999
1,133
99
1,128
99
2,015
FH
1,731
FH
1,341 999
1,239
99
1,197
FH
1,197
99
969
99
578
99
1,186
FH
Page | 10
Postal
District
23
23
23
23
26
27
28
28
Project Name
MI CASA
HAZEL PARK CONDOMINIUM
THE MADEIRA
HILLVIEW RESIDENCE
BULLION PARK
YISHUN EMERALD
MIMOSA PARK
SUNRISE GARDENS
Area
(sqft)
990
980
1,302
1,453
1,238
1,184
1,873
1,442
Transacted
Price ($)
1,113,000
1,100,000
1,200,000
1,220,000
1,320,000
883,000
1,670,000
1,230,000
Price
Tenure
($ psf)
1,124
99
1,123 999
921
99
840
999
1,066
FH
746
99
892
FH
853
99

Back to Contents
Page | 11
Issue 118
CONTENTS
FROM THE
EDITOR
p2
How to Be a Contrarian Property Investor
p7
p12

Hope you like it!
Mr. Propwise
(August 7 August 13)
Contribute
Advertise
News.

How to Be a Contrarian Property Investor

By Mr. Propwise
While the term Contrarian Investor is typically
used for someone who invests against the
crowd in the stock market, it is also
applicable for property investing. In this post
we'll look at how Contrarian Property
Investors think, why it makes sense to be
one, and how to think like one.
What is a Contrarian Investor?
Wikipedia defines a Contrarian Investor as
"one who attempts to profit by investing in a
manner that differs from the conventional
wisdom, when the consensus opinion
appears to be wrong.
Back to Contents
Page | 2

In other words, it's a way of thinking. This sort
of thinking can be applied across any
investible asset class. In stocks, a Contrarian
Investor will buy shares when excessive
pessimism about a company's prospects
drives its stock price to unjustifiable lows, and
sell when widespread optimism drives its
stock price to unjustifiable highs.
Similarly, a Contrarian Property Investor
will buy property when prices have been
driven
down
due
to
widespread
pessimism about the economy and the
market, and sell when there's overbullishness on the property market
despite a large run up.
The essence of being a Contrarian Investor is
captured in this famous Warren Buffett quote:
"We simply attempt to be fearful when
others are greedy and to be greedy only
Back to Contents
when others are fearful."

Why be a Contrarian Investor?
Simply put, Contrarian Investing is the most
reliable way over the long run to minimize the
risks and maximize the profits of investing.
Making money in investing is simple - Buy
Low and Sell High. Yes, we've heard that a
thousand times. But yet the majority of
investors do the opposite, driven by greed
during Bull Markets to buy after prices have
run up (and in their mind extrapolating this
increase into the infinite future), and then by
fear during Bear Markets to dump the asset
they had paid dearly for because everyone
else is doing so.
The skilled Contrarian Investor profits by
placing himself on the other end of this
trade, and makes money not by following
the crowd but by being ahead of it.
Page | 3

The Pain of Being on the Wrong Side of
the Cycle
There are painful consequences to being on
the wrong side of the cycle (i.e. buying at the
peak and then being forced to sell at the
trough). While this is bad when investing in
any asset class, it is especially traumatic in
property investing because of two factors:
1. The use of leverage
1996 just before the Asian Financial Crisis

and have only just broken even after 15+
years. If we factor in inflation, interest costs
and the value of lost opportunities, they've
had a negative return after all these years
despite the massive Bull Market in property
these last few years!
How to become a Contrarian Investor
Because of these two factors, a 10% fall in

property prices could mean wiping out 50% of
your equity due to the leverage, and years of
savings due to the large dollar quantum.
You should know that it's not easy being a

Contrarian Investor. It is far too easy to be
swept up by sentiment, whether euphoria or
despair. Sentiment is contagious, and you
can't escape it - you will get infected when
you read the papers, watch the news, or chat
over lunch with your colleagues.
It's not uncommon for ten years' worth of

savings to be wiped out by a bad property
decision. There are many people who
bought Singapore property at the peak in
Being a Contrarian Investor requires a

huge amount of courage. You need to
believe that you're right and everyone else is
wrong. You need to believe that you're the
2. The high total price of a property
Back to Contents
Page | 4

(investment) genius when everyone thinks
you're crazy.
The question is - how do you know you're not
crazy?
Get on the Right Side of the Cycle
I believe the answer lies in using facts and
data to guide your decisions, not hearsay,
rumours, opinions or gossip.
But it's not easy to wade through the

enormous amount of data out there to come
up with your own investing system. A simple
way to do so is to use the Property Market
Cycle Model (PMCM) created by Property
Market Insights (PMI) to help you time your
property investing and get the BIG picture
right.
Instead of being swept up by sentiment and
doing the wrong thing at the wrong time,
Back to Contents
understanding the property cycle will help you

get on the right side of the wave, potentially
adding hundreds of thousands of dollars (or
more) to your net worth over a cycle, and
saving you from disastrous mistakes.
Property Market Timing in Action
The PMCM is not some BS theory that
sounds good on paper but leaves you
scratching your head as to what to do next. It
tells you where we are in the current cycle
and guides your decisions by providing a
historical context of what happened during
similar parts of the cycle in the past.
And I eat my own cooking. When the PMCM
indicated that we were in the Late Bull stage
of the property cycle in late 2011, I put my
property on the market. I was asking for a
fairly high (but not unreasonable) price, but
due to the weak resale market
Page | 5

(all these insights and more are provided to
PMI subscribers), it took almost a year for the
property to be sold. Now I've locked in my
profit, and am eagerly anticipating the Bear
Market.
How will I know when to buy again? The
PMCM will be my guide.
While Contrarian Investing is not easy, and
requires courage and conviction, armed with
the right insights and analysis you can
maximize your investment returns over the
long run through multiple property cycles.
By Mr. Propwise, founder of top Singapore
property blog Propwise.sg, a Chartered
Financial Analyst and resident real estate
analyst at PropertyMarketInsights.com, a site
to help property owners and investors make
profitable decisions in uncertain times. Click
here to learn more
Back to Contents
Page | 6

Residential
BTO flat grant extensions for lower and
middle-income households
The government will be extending a variety of
grants for lower and middle-income
households to allow them to pay off their flats
in 25 instead of 30 years. The Special CPF
Housing Grant (SHG) for lower and lowermiddle-income first-timers will be extended
from two-room and three-room flats to include
four-room flats. In his annual National Day
Rally speech, Prime Minister Lee Hsien
Loong said that middle-income households
will also benefit, while a middle-income
household can get up to $20,000 more if they
Back to Contents
buy a new flat. Currently, the SHG is given on

top of the Additional CPF Housing Grant for
eligible first-timer families applying to buy a
two-room or three-room standard flat in a
non-mature estate. After the enhancements,
homebuyers using their CPF funds to pay
their loans should be able to pay off their flats
in 25 years instead of 30. Hence, their income
in later years can be used as their retirement
savings. It was reported that although the
grants would probably have no impact on the
private housing market, a small percentage of
people could be drawn away from the resale
market given that they can now get a grant if
they get a BTO flat instead.
Page | 7

Another type of grant, the Step-Up Housing
Grants will be extended to families who can
afford to buy only two-room flats to help them
upgrade to three-room flats later, which is to
ensure that every Singaporean family who is
working can afford a home. PM Lee said that
we could maintain the value of HDB flats over
the years, with flats kept affordable for future
flat buyers so that every Singaporean family
who is working can afford an HDB flat.
800 ha of land freed up for new homes
An 880 ha area will be freed up for new
homes, offices, factories and parks after Paya
Lebar Air Base relocates to a Changi site.
The land area, which is larger than Bishan or
Ang Mo Kio, will provide breathing space for
Singaporeans and rejuvenate a bigger area of
eastern Singapore, going all the way down to
Back to Contents
Marina and Marina South.

Luxury homes market still under pressure
The luxury homes market is reported to be
under pressure on rental and price fronts.
Specifically, Singapore was the only market
out of nine featured in the Asia-Pacific to
witness a decline in capital values. According
to the latest Jones Lang LaSalle (JLL)
Residential Index, values of Singapore luxury
homes fell 0.6 percent quarter-on-quarter for
the third consecutive quarter, and 2.1 per
cent year-on-year, as the rounds of cooling
measures continued to affect investor
sentiment. Although price dips have been
slowing in the last few quarters, the
introduction of the total debt servicing ratio
(TDSR) in June has brought in a degree of
downside risk,
Page | 8

according to Dr Chua Yang Liang, head of
research for Singapore and South-east Asia
at JLL. Dr Chua said he expected capital
values for luxury homes to correct a further 35 per cent in the second half of 2013.
Lim sold one in Leedon Park for $33 million.
Allgreen Properties is releasing its RV

Residences,
a
seven-storey
999-year
leasehold project on River Valley Road in
front of Valley Park, near the proposed Great
World MRT Station on the Thomson Line.
After early-bird discounts, the average price is
expected to be below $2,000 psf for the initial
batch of units, which are expected to number
50-80. The development is expected to
receive Temporary Occupation Permit in the
second quarter of 2014. With 248 units, RV
Residences have one-bedroom apartments to
five-bedroom penthouses. Absolute prices will
range from $833,000 for a 419 sq ft onebedder on the second floor. The most
expensive unit, a 1,539 sq ft penthouse,
OSIM founders GCB could set new psf

price record
OSIM founder Ron Sim is looking to sell his

Bin Tong Park home for $117 million. If
successful, he could set a new record price
on a psf basis for a property in a Good Class
Bungalow (GCB) area. The property is made
up of two plots of freehold land together
measured at 46,842 sq ft. The built-up area of
Mr Sim's home is about 22,000 sq ft. Mr
Sims asking price is about $2,500 psf, while
the record price for a property in a GCB area
currently stands at $2,110 psf, and was set
last October when bungalow investor George
Back to Contents

Allgreen Properties to start River Valley
condo sales
Page | 9

will cost about $2.8 million. The duplex unit
will have five bedrooms and a study corner.
The project also includes a gym, swimming
pool and garden. DTZ is the project's
marketing agent. Meanwhile, in Sengkang
West, City Developments Ltd (CDL) had sold
289 units or 76 per cent of its 380-unit EC
project Lush Acres with an average price of
$785 psf. Absolute prices range from
$704,000 to $1.275 million. The development
includes three to five-bedroom units. Unit
sizes are from 915 sq ft for a three-bedroom
apartment to 1,722 sq ft for a five-bedroom
apartment.

Commercial
CapitaLand could have strata sales at
Westgate Tower
Contrary to its announcement a year ago that

Back to Contents
it will be moving to Westgate Tower in Jurong

East, CapitaLand announced that it will retain
its corporate headquarters at Capital Tower in
CBD. However, CapitaLand was silent on its
plan for Westgate Tower, the 20-storey office
block which is part of a retail-office project on
a 99-year leasehold site near Jurong East
MRT Station set to be completed in late 2014.
CapitaLand could have occupied half of
Westgate Tower. But all 320,000 sf NLA in the
tower is now available.
CAG in new partnership with CapitaMalls
Asia for Project Jewel
Changi Airport Group (CAG) has decided to
embark on a partnership with CapitaMalls
Asia (CMA) for Project Jewel, after it
considered bids from six local and
international real estate firms.
Page | 10

Project Jewel is the development of a multiuse complex that will link Terminals 1, 2 and 3
when it is built by 2018. Its request for
proposal (RFP) had started in July last year.
The process closed this January, and
participants were notified of the outcome on
April 16. The finalisation of plans and the
exploration of a joint-venture partnership is
expected to be completed by the end of 2013.
2002, with a built-up gross floor area of about

327,574.70 sf, and is a JTC Corp leasehold
estate of 30+29 years' tenure starting from
April 16, 2001.

Sabana Reit to buy Chai Chee property
Sobana Reit is planning to buy a sevenstorey light industrial building with two
basement storeys in Chai Chee from
Advanced Micro Devices for $59.5 million.
The property is located at 508 Chai Chee
Lane off Bedok North Road and Bedok North
Avenue 1. It had been completed on Dec 2,
Back to Contents
Page | 11
Non-Landed Residential Resale Property Transactions for the Week of Aug 7 Aug 13
Postal
District
1
3
3
4
9
9
10
10
11
11
11
12
12
15
15
15
15
16
17
17
Area
(sqft)
THE CLIFT
527
THE METROPOLITAN CONDOMINIUM
721
REGENCY SUITES
980
THE RESIDENCES AT W SINGAPORE SENTOSA COVE 1,658
LEONIE STUDIO
936
CAIRNHILL PLAZA
2,293
ASTRID MEADOWS
3,800
HOLLAND PEAK
1,313
PARK INFINIA AT WEE NAM
1,421
28 SHELFORD
840
WATTEN HILL
2,626
THE TIER
495
THE ARTE
1,399
THE MAKENA
926
HERITAGE EAST
495
COSTA RHU
1,345
FORTUNE SPRING
2,390
THE TANAMERA
947
936
CHANGI GARDEN
1,475
Project Name
Back to Contents
Transacted
Price ($)
1,250,000
1,261,750
1,630,000
4,518,648
1,800,000
4,200,000
7,000,000
1,800,000
2,760,000
1,308,000
3,480,000
800,000
1,982,000
1,338,000
710,000
1,550,000
1,828,000
873,000
950,000
1,050,000
Price
Tenure
($ psf)
2,370 99
1,750 99
1,664 FH
2,726 99
1,922 99
1,832 FH
1,842 FH
1,371 FH
1,943 FH
1,558 FH
1,325 FH
1,616 FH
1,416 FH
1,445 FH
1,434 FH
1,152 99
765
FH
922
99
1,014 FH
712
FH
Postal
District
18
18
19
19
19
21
22
22
27
28
Project Name
SAVANNAH CONDOPARK
RIS GRANDEUR
CHUAN PARK
CHUAN PARK
EVERGREEN PARK
PINE GROVE
PARC OASIS
PARC VISTA
THE SENSORIA
SERENITY PARK
Area
(sqft)
1,023
1,356
710
1,173
1,023
1,927
1,227
1,281
1,001
1,098
Transacted
Price ($)
1,020,000
1,330,000
810,000
1,230,000
840,000
1,640,000
1,275,000
1,080,000
992,000
1,100,000
Price
Tenure
($ psf)
997
99
981
FH
1,140 99
1,048 99
821
99
851
99
1,039 99
843
99
991
FH
1,002 FH

Page | 12
Issue 117
CONTENTS
p2
FROM THE
EDITOR
Asking the What, Why and How

of Properties
Hope you like it!
p7
p11
Resale Property Transactions (July 31 August 6)
Mr. Propwise
Contribute
Advertise
News.

Asking the What Why and How of Properties

Time flies. My little girl recently turned two.
Happy birthday sweetheart! With a limited
vocabulary, her favorite words are what,
why and how. And she enjoys dragging the
vowels to show her emotions. Here is a
typical example:
"See what we have in the fridge."
"Whaaat?"
"Fresh milk or orange juice?"

She opens the freezer and points at the icecream.
"No, you can't have this for breakfast."
Back to Contents
Page | 2

"Whyyy?"
"Because you'll have a stomach upset."
"Hooow?"
"Er ..."
"No no," she shakes her head and walks
away.
A toddler asks what, why and how all the
time. But as we grow older, we gradually lose
our natural curiosity to question the things
around us.
Perhaps we are too lazy and don't bother to
know what is happening. Maybe it is too tiring
to find an explanation to everything. Or we
have tried but still have no answer to our
question.
Likewise, when people are buying or
investing in properties, many don't bother to
Back to Contents
ask questions. Some have asked, but they

haven't asked the right questions.
Asking the 'what' questions
This involves finding and comparing all the

offers and options in the market:
- What is available in the uncompleted and
resale market?
- What is the price difference for new and old
flats in the same district?
- What prices were people paying at the top
and bottom of the previous property cycles?
- What are local sellers offering compared
with what property seminars are marketing in
the same overseas market?
Asking the 'why' questions
Understand the reasons why things happen
the way they are.
Page | 3

This includes asking questions such as:
market conditions change?
- Why is there no choice but to buy at the

current market?
- How to look for good tenants for projects in

this area?
- Why are developers able to sell new

projects at future prices?
- How to find future buyers to offload

properties bought in an overseas market?
- Why the government has to constantly

announce new cooling measures?
Having the courage to say 'No'
- Why the current market is now made up of

first-time buyers and upgraders buying new
projects?
Asking the 'how' questions
This involves validating information you have
received to find out the truth, including
answering questions such as:
- How to generate a decent rental return
buying at the current market?
- How to maintain a positive cashflow when

Back to Contents
If you have asked yourself the right questions,

and have done your homework to find some
answers, you should be able to form your
own opinion.
Never go with the crowd blindly and make a
property decision based on the comments of
the people around you. Don't fall into the trap
of buying a place using the criteria of industry
analysts, property developers or marketing
agents.
Remember that this is your home and you are
the one paying for it.
Page | 4

As soon as you are not being unrealistic, you
should make decisions using your own set of
criteria. If your priorities are not met, you don't
have to buy.
Whether the property you bought is good or
bad, it is not your fate, it is your choice. You
should have the choice to say 'No', the
courage to walk away and stand by what you
believe in.
Dietrich Bonhoeffer, a German anti-Nazi
theologian, once said:
"It is the nature, and the advantage, of strong
people that they can bring out the crucial
questions and form a clear opinion about
them. The weak always have to decide
between alternatives that are not their own."
As I am writing this, my two-year-old is
Back to Contents
standing behind me, getting into a tub of icecream with a spoon she finds somewhere.
"What are you eating?" I ask.
"Whaaat?"
"Mommy says no ice-cream for breakfast."
"Whyyy?"
"So you're not listening to Mommy?"
"Hooow?"
I try to grab the ice-cream from her but in
vain.
"No no," she smiles mischievously and walks
away.
Page | 5
Back to Contents
Page | 6

Residential
Property market set for 2016 incident due
to abundant supply
It is reported that the sellers stamp duty
(SSD) should be relooked to prevent a
collision with a record number of private
homes released to the market in 2016.
According to Orange Tees data, a total of
33,555 units will make their ways into the
property market in 2016, compared to 15,503
units this year. Among those, 27,181 units
originate from newly launched projects, and
6,374 units are from the stash of previously
locked-up units with owners choosing to hold
onto their properties and not incurring any
Back to Contents
SSD. In 2011, the holding period for the SSD

scheme was raised from three to four years,
and rates increased steeply up to a maximum
of 16 percent.
More than 200 units sold at Tembusu

More than 200 units have been sold at The
Tembusu, Wing Tai's condo project in the
Kovan area. The average price for the 337unit freehold condo is between $1,400 and
1,500 psf. The project is believed to be the
first residential project to attract a good
reception after the Total Debt Servicing Ratio
(TDSR) framework took effect on June 29.
Page | 7

The project's showflat had already opened
of the Total Debt Servicing Ratio (TDSR),
two weekends before the sales officially
there has been an increasing interest towards
started. Entry to the showflat to VVIPs and
executive condominiums (ECs). Although no
those
by
new EC projects were launched, 112 ECs
balloting. Analysts estimated that developers
were sold out of the 593 units moved
could have sold fewer than 500 private
(including
homes last month. Len Siew Lian, general
percent of Julys total sales. On the other
manager for property of Wing Tai said that the
hand, ECs only constituted 14.8 percent of
encouraging response can be due to the
Junes total sales (313 ECs were sold, out of
comfortable sizing of the freehold apartments
total sales of 2,119 units) even though more
in the established Kovan area, the quality
than 600 ECs were released in June. SLP
design and finishes.
International executive director of research
who
had
pre-registered
was
ECs),
which
constituted
18.9
and consultancy Nicholas Mak said the

phenomenon proved that TDSR framework
Interest in ECs increases as private home
has shifted some home-buying demand,
sales drop
especially among HDB upgraders, to the EC
As sales of private homes dropped last month
projects.
due to limited launches and the introduction
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Page | 8

Commercial
the hassle-free property management, and
Local potential investors eye offshore

hospitality properties
Because
the
investment
Singapore
scene
is
real
becoming
estate
more
challenging, local potential investors are

eyeing
offshore
sale-and-leaseback
properties in the hospitality sector. For the
past few months, many investors have been

investing in such properties, which typically
guarantee returns of around 6 per cent per
annum for up to a decade or so. According to
Isabelle de Wavrechin, chief executive of
French tourism management company Pierre

& Vacances, the biggest benefits of investing
in offshore sale-and-leaseback hospitality
properties - mainly in Europe and Asia are
Back to Contents
numerous property sweeteners to entice retail

investors.
Sentosa Resort & Spa to be sold soon
Sentosa Resort & Spa (formerly known as
The Beaufort Singapore) is close to being
sold at around $1 million per room, which
translates to the transaction price past $200
million. The Sentosa has a gross floor area of
about 312,000 sq ft with 215 rooms including
the highly-acclaimed Spa Botanica , and a
remaining lease of about 60 years. The site is
believed to be the first resort hotel to be
transacted in Singapore in recent years.
Page | 9

CBD sites top bid at $1,112.44 psf
A 99-year leasehold commercial site at Cecil
Street/Telok Ayer Street has fetched the top
bid
at
$1,112.44
psf
ppr
by
Frasers
Centrepoint. This was 18.8 per cent higher

than the next highest offer by Far East
Organization. Frasers Centrepoint group chief
executive Lim Ee Seng said that he was
comfortable with the group's bid price which
would result in a breakeven cost of about
$2,000 psf for a new development. At least 80
percent of the sites 830,564 sq ft maximum
gross floor area must be set aside for office
use. Strata subdivision of the project is not
allowed.
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Page | 10
Non-Landed Residential Resale Property Transactions for the Week of Jul 31 Aug 6
Postal
District
3
3
8
8
8
9
9
9
9
9
9
9
9
9
10
10
10
10
10
10
11
11
12
12
12
Project Name
THE ANCHORAGE
QUEENS
CITYLIGHTS
KENT RESIDENCES
SCOTTS SQUARE
RESIDENCES AT EMERALD HILL
RIVERGATE
ROBERTSON 100
ASPEN HEIGHTS
THE QUAYSIDE
PARC CENTENNIAL
PARC CENTENNIAL
PARC CENTENNIAL
8 NAPIER
DUCHESS MANOR
ORANGE GROVE RESIDENCES
FIFTH AVENUE CONDOMINIUM
CASA JERVOIS
TANGLIN REGENCY
AMARYLLIS VILLE
M21
TREVISTA
TREVISTA
TWIN HEIGHTS
Back to Contents

Tenure
1,464 2,350,000 1,605
FH
1,195 1,603,000 1,342
99
560
990,000
1,769
99
1,216 1,790,000 1,472
FH
538
750,000
1,394
FH
624 2,779,920 4,453
FH
1,658 4,377,000 2,640
FH
2,088 4,150,000 1,987
FH
883 1,720,000 1,949
FH
1,313 2,133,000 1,624
999
1,550 2,380,000 1,535
99
1,572 2,400,000 1,527
FH
1,249 1,900,000 1,522
FH
1,550 2,230,000 1,439
FH
5,909 20,386,050 3,450
FH
1,066 1,930,000 1,811
999
3,143 5,600,000 1,782
FH
1,496 2,416,000 1,615
FH
1,227 1,870,000 1,524
FH
710
985,000
1,386
99
1,259 1,900,000 1,509
99
1,755 2,490,000 1,419
FH
1,012 1,470,000 1,453
99
1,130 1,600,000 1,416
99
1,421 1,650,000 1,161
FH
Postal
District
13
13
14
14
14
15
15
15
15
15
15
15
15
15
15
15
15
15
15
16
16
16
16
16
17
Project Name
8@WOODLEIGH
DAISY LODGE
CENTRAL GROVE
CAMELLIA LODGE
ASTOR
AALTO
AMBER RESIDENCES
PALAZZETTO
MABELLE
KING'S MANSION
ONE FORT
PALM OASIS
HAIG COURT
LE CONNEY PARK
KATONG PARK TOWERS
SHEBA LODGE
NEPTUNE COURT
NEPTUNE COURT
VILLA MARINA
CASA MERAH
THE BAYSHORE
THE TANAMERA
THE TANAMERA
BEDOK COURT
AVILA GARDENS

Tenure
1,098 1,600,000 1,457
99
689
770,000
1,118
FH
1,184 1,250,000 1,056
99
1,163 1,068,000
919
FH
1,130 1,020,000
902
99
1,550 2,600,000 1,677
FH
1,249 1,840,000 1,474
FH
818 1,135,000 1,387
FH
624
830,000
1,329
FH
1,604 2,100,000 1,309
FH
1,227 1,509,210 1,230
FH
883 1,075,000 1,218
FH
1,464 1,730,000 1,182
FH
1,109 1,130,000 1,019
FH
2,131 2,130,000
999
99
1,270 1,150,000
905
FH
1,636 1,295,000
792
99
1,636 1,250,000
764
99
2,013 1,450,000
720
99
947 1,230,000 1,299
99
1,012 1,100,000 1,087
99
1,324 1,280,000
967
99
1,324 1,240,000
937
99
2,271 1,850,000
815
99
1,324 1,180,000
891
FH
Page | 11

Postal
District
18
19
19
19
20
21
21
21
21
21
21
22
23
23
23
23
23
23
27
28
Project Name
CHANGI RISE CONDOMINIUM
OASIS GARDEN
ROSYTH VILLE
NOUVELLE PARK
RAFFLESIA CONDOMINIUM
JARDIN
JARDIN
MAPLEWOODS
THE BLOSSOMVALE
SIGNATURE PARK
MAYFAIR GARDENS
PARK VIEW MANSION
THE DAIRY FARM
GLENDALE PARK
MAYSPRINGS
GUILIN VIEW
HILLVIEW REGENCY
HILLVIEW APARTMENTS
SELETAR SPRINGS CONDOMINIUM

Tenure
1,130 1,040,000 920
99
1,227 1,550,000 1,263
FH
1,109 1,150,000 1,037 999
1,539 1,480,000 962
FH
1,324 1,560,000 1,178
99
1,711 3,550,000 2,074
FH
1,808 3,560,000 1,969
FH
1,324 1,965,000 1,484
FH
1,572 2,050,000 1,304 999
1,399 1,500,000 1,072
FH
2,153 1,860,000 864
99
1,335 800,000
599
99
1,507 1,700,000 1,128
FH
1,249 1,400,000 1,121
FH
818
800,000
978
99
861
835,000
970
99
1,109 1,070,000 965
99
1,302 1,150,000 883
FH
872
600,000
688
99
1,206 1,050,000 871
99

Back to Contents
Page | 12
Issue 116
CONTENTS
FROM THE
EDITOR
p2
When a Property Billionaire Turns Bearish
p7
p10
Resale Property Transactions (July 24 July 26)

Hope you like it!

Mr. Propwise
Contribute
Advertise
News.

When a Property Billionaire Turns Bearish

By Mr. Propwise
It is a rare occasion when a billionaire
property developer talks the market down.
Kwek Leng Beng, Chairman of City
Developments Limited (CDL), a leading real
estate developer in Singapore, did just that
recently when he called buying land in
Singapore at todays prices suicidal and
predicated an up to 5 percent fall in property
prices.
Buying land in Singapore at current prices

suicidal
Not one to mince words, he called buying
land from Government Land Sales suicidal,
especially given the requirement that the
Back to Contents
Page | 2

units must be sold within two years of
completion. His point was that it didnt make
sense to buy land at todays high prices, and
then give up the flexibility of being able to
time the sale of the units, especially if the
deadline to sell coincides with a downturn in
the market. Developers, would in effect have
to buy high and sell low, and potentially face
reduced margins or even losses.
Land prices have shot up in recent months as

developers continue to bid them up despite
the seven rounds of cooling measures and
the recent Monetary Authority of Singapore
(MAS) guidelines on the Total Debt Servicing
Ratio. Based on CBREs analysis of
government land sites that have been
recently sold, the majority of suburban
projects are expected to launch units for sale
at above $1,200 psf.
Back to Contents
Kwek: Up to 5 percent fall in prices over

the next year
And just to be clear, Kwekis looking for a
correction in the private residential property
market of up to 5 percent over the next year,
assuming the governments property cooling
measures remain. He sees a combination of
a fragile and unpredictable global economy
and the combined impact of the multiple
rounds of property cooling measures creating
stronger headwinds for the market (and for
property developers).
Personally, I think it is quite strange for Kwek
to be talking down the market when CDL is
still actively marketing units of its projects. But
a more cynical reading would be that he is
talking down the market in a bid to depress
land prices so that CDL can buy landbank at
more reasonable prices.
Page | 3

After all, CDLs projects such as the 616-unit
Jewel@Buangkok, 912-unit DNest and 868unit Bartley Ridge are mostly sold already.
Signs that property price growth is already
moderating
Despite the acceleration in the quarter-onquarter growth of the URA Property Price
Index in second quarter 2013 to one percent
versus the 0.6 percent increase in the
previous quarter, more timely (albeit
unreliable) indicators suggest that price
growth is already moderating as we enter the
second half of 2013.
According to the Singapore Real Estate

Exchanges (SRX) figures, island wide private
non-landed resale property prices were up
just 0.1 percent in July, a slowdown from the
Back to Contents
0.8 percent rise in June. Analysts blamed the

MAS Total Debt Servicing Ratio framework for
the slowdown (which limits borrowers to a
maximum 60 percent total monthly debt
repayment versus their gross monthly
income), which might well be the case, but
sentiment in general has already been hurt
since the uncertainty created by Fed
Chairman Bernankes talk about tapering,
which have markets pricing in a rise in
interest rates from as soon as 2014.
On the public housing front, weve also seen
the Cash Over Valuation (COV) of resale
HDB flats fall to a more than two year low to a
median of $20,000, based on figures from the
SRX. A weakening public housing market will
become an overhang for the private property
market.
Page | 4

Overleveraged buyers meet a supply
avalanche and weakening rental market
Orange Tee expects a total of 33,555 units to
hit the market in 2016, versus the 15,503
units available this year. This number
includes both units from newly launched
projects and those that have exited the fouryear Seller Stamp Duty (SSD) period. The
raised Seller Stamp Duty imposed rates of
16% for properties sold within the first year of
purchase from January 14 2011, which would
then gradually fade to 4% in Year Four. The
first batch of these properties that can be sold
without SSD will be hitting the market from
2015.
The SSD has led to a reduction in saleable
units in the market since 2011 as buyers have
held back from making their units available for
Back to Contents
sale in the market to avoid incurring SSD, and

thus has likely had the potential unintended
consequence of keeping property prices high
as buyers faced a reduced supply in the
resale market, and turned to the primary
market to buy up higher-priced new units
instead.
Furthermore, we are likely entering a period
of weakening rental demand. Over the past
few years, in the backdrop of a strong
economy and growing foreign workforce,
rental demand averaged around 42,000 units.
Going forward, given that Singapore is
looking at a slowing rate of GDP and foreign
workforce growth, the growth in rental
demand is likely to be lower than the growth
of rental supply (from the large increase in
completed units), leading to lower rental
yields and high vacancy rates.
Page | 5

Finally, the MAS has recently expressed
concern that Singaporean households are
overleveraged on property loans, having been
tempted by low interest rates and extended
loan tenures. Given most mortgage loans in
Singapore are floating rate packages, the
MAS has estimated that a 3 percent rise in
mortgage rates would put 10 to 15 percent of
borrowers at risk.
So going into 2014 and beyond, we have a
combination of a significant segment of
overleveraged buyers facing rising mortgage
rates and an avalanche of supply in a
weakening rental market. Sounds like a
recipe for a more than 5 percent correction in
the market, if you ask me.
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Page | 6

Residential
Allgreen Properties Ltd to launch River
Valley Condo
Allgreen Properties Ltd is launching River
Valley Residences, the 999-year project with
248 units in District 10 at River Valley Road,
at the end of August. The project includes
one-bedroom to four-bedroom units and
penthouses, with prices likely to be between
$2,100 psf and $2,300 psf. Marketing agent
DTZ said 85 percent of the available units will
be compact units below 850 sq ft. Onebedroom units start from 419 sq ft; while two,
three and four-bedroom units are between
678 sq ft and 1,270 sq ft. Penthouses are
Back to Contents
between 796 sq ft and 1,539 sq ft. The variety

of apartment types and a comprehensive set
of facilities provides RV Residences with the
versatility to reach out to a broad market,
from singles looking for a compact living
space, to nuclear and extended families.
GCB at Chancery Lane on sale for $39m
A one-storey freehold Good Class Bungalow
(GCB) at Chancery Lane is on the market for
around $39 million, or about $1,630 psf based
on its land area of 23,932 square feet, subject
to offers. This shows a sign of more interest
in the area with significant sales in recent
Page | 7

months. The house, which is located within
the Bukit Tunggal GCB enclave near Novena
and Newton MRT stations, is an old house
built in the 1980s and hence is expected to be
redeveloped. The site is also within a short
distance of Mt Pleasant MRT station which is
part of the Thomson Line, due in 2021. The
vicinitys schools include Anglo-Chinese
Primary School, St Joseph's Institution, and
Singapore Chinese Girls' School.
Sharp drop in approvals for PRs to buy
landed homes in Singapore
The number of approvals granted to
permanent residents to buy landed homes on
mainland Singapore has dropped greatly,
following the authorities tighter eligibility
Back to Contents
criteria in 2011 to ensure scarce properties

remain the primary preserve of Singapore
citizens. According to the Singapore Land
Authority, the number of such approvals
decreased from 145 in 2010 to 117 in 2011 to
just 31 last year (the first full year after the
tightening). In the first half of 2013, only six
applications were accepted. About two-thirds
of approved applicants are married PR
couples with children who are also PRs.
Where these couples have sons of National
Service-eligibility age, the sons are serving or
have served NS. In October 2011, Law
Minister K Shanmugam had indicated that the
number of approvals given to PRs to buy
landed homes would fall by more than half to
no more than 50 per year.
Page | 8

Home prices could fall with oversupply
expected
According to Kwek Leng Beng, executive
chairman of City Developments, the
Singapore residential sector could expect
some oversupply from next year unless the
global and domestic economies rebound
strongly and curbs on foreign buyers for
private residential property are reviewed. It
was reported that private home prices could
drop 5 per cent from now till next year if all
the cooling measures remain intact. Mr Kwek
said he did not believe that the market would
collapse, but it could go down. He also said
the government may possibly remove some
of the cooling measures by 2015, because
90.2 percent of Singaporeans own property
and it is not their intention to crash the
market.

Academic paper supports housing curbs
for PRs, foreigners
An academic paper of authors from the

Singapore Management University (SMU)
and Savills Singapore supports the curbs on
housing ownership and investments by
permanent residents (PRs) and foreigners to
manage demand in the property market. The
paper also includes suggestions on how
some of these policy tools might be expanded
for better tamping down demand and
runaway property prices. For example,
making it mandatory for foreigners to seek
permission to purchase housing and the
tweaking of existing property tax structures
could be effective in discouraging foreign and
multiple-unit residential ownership.
Back to Contents
Page | 9
Non-Landed Residential Resale Property Transactions for the Week of Jul 24 Jul 26
Postal
District
2
3
4
5
5
8
9
9
10
10
12
14
15
15
15
15
17
18
19
23
25
Project Name
ICON
THE COAST AT SENTOSA COVE
PARC IMPERIAL
THE INFINITI
KERRISDALE
THE TRILLIUM
8 @ MOUNT SOPHIA
8 NAPIER
ORANGE GROVE RESIDENCES
OPAL SUITES
CRYSTAL LODGE
ONE AMBER
COSTA RHU
SANCTUARY GREEN
KATONG VILLE
LIVIA
THE QUARTZ
REGENT HEIGHTS
ROSEWOOD

Tenure
581 1,180,000 2,030
99
1,066 1,700,000 1,595
99
3,100 4,500,000 1,452
99
420
720,000 1,715
FH
1,066 1,161,940 1,090
FH
1,270 1,285,000 1,012
99
2,217 4,657,800 2,101
FH
1,539 2,380,000 1,546 103
4,112 12,368,888 3,008
FH
2,002 3,780,000 1,888
FH
452
592,000 1,309
FH
1,141 950,000
833
FH
570 1,020,000 1,788
FH
1,647 2,060,000 1,251
99
1,399 1,610,000 1,151
99
1,184 1,215,000 1,026
FH
1,711 1,260,000 736
FH
1,539 1,400,000 910
99
1,076 1,150,000 1,068
99
1,023 890,000
870
99
1,012 880,000
870
99

Back to Contents
Page | 10
Issue 115
CONTENTS
p2
FROM THE
EDITOR
Top 3 Dangers of Buying Low-Cost

Single Family Homes in the USA
Hope you like it!
p7
p11
Mr. Propwise
Contribute
Advertise
News.

Top 3 Dangers of Buying Low-Cost Single Family Homes in the USA

I recently shared my insights on the USA real
estate market to local investors and readers.
Unsurprisingly, I received many emails from
them, in particular on buying low-cost USA
Single-Family Homes (SFH) for investment.
Some investors shared with me that they are
currently facing serious issues on these lowcost properties, and wanted to find ways to
resolve them. My direct answer was: If you
can find buyers for such properties, sell at
whatever price ASAP!
With our expensive local property market,
financing restrictions and low deposit rates,
many Singaporean investors are eagerly
Back to Contents
Page | 2

jumping on the wagon (like everyone else) to
buy low cost properties in foreign countries
such as USA for investment. But is this a
smart move?
Reasons these low cost properties look
enticing
Here are some reasons why these foreign
properties look enticing to investors:
1. Low purchase cost a Single-Family

home in the USA (landed property) can
be bought for USD$50,000 or lower
2. Potential double-digit investment returns
as high as 15%-20% a year (on paper)
3. The property will be in safe hands of a
property
manager
(a
terrible
misconception)
In this article, Ill explain some of the
problems youll have to deal with if youre
Back to Contents
intent on going ahead with your low-cost

foreign purchase.
Danger #1 Section 8 Properties are
rented to potentially undesirable tenants
Most low-cost properties are under the USA
government housing scheme called Section
8.
Section 8 provides housing assistance to
individuals with low or no incomes and the
high rental income is almost guaranteed to
landlords by the US government for a reason
these properties are avoided by most
American investors like the plague.
The king of Section 8 landlords is the US

housing authority. Other than the fact you
have absolute no say in dictating how much
you want to rent your property for, there are
potential trouble-making tenants to deal with,
complicated tenant application processes
Page | 3

which can sometimes take months to approve
by the housing authorities, and severe
property inspections landlords have to adhere
to every year.
Unless youre living near the property, owning
such low cost foreign properties is definitely
not worth your time and investment money.
Unlike Singapore, most USA states have
housing laws that favour tenants more than
landlords. Apart from Section 8 properties,
there are low-cost properties that are
tenanted by undesirable tenants who may
cause many legal problems and rental issues
for landlords.
Evicting undesirable tenants is like getting rid
of a leech as most will simply not leave. A
landlord may need to go through a lot of
trouble to apply for legal assistance that will
cost thousands of dollars in legal fees alone.
Back to Contents
I know of a Singaporean investor who was

shocked to find out he has a criminal as his
tenant. The problem is that the tenant is on
the state police wanted list, but the complex
housing regulations that protect tenants from
being homeless or evicted without going
through proper legal proceedings.
Danger #2 Potentially Huge Property
Maintenance Costs
Low-cost properties are often very old, some
as old as 50 years! Youll face expensive and
extensive property structural repairs for
broken
rooftops,
corroding
wooden
reinforcement pillars, old broken water pipes
and other potential damages that cannot be
easily assessed at first glance.
Even small repairs or replacement for broken
doors and choke sinks can get on your
nerves, especially as a foreign landlord.
Page | 4

Labour is very expensive in the USA, and
even finding a simple plumber can cause you
infuriating frustration with an inflated repair bill
on your hands.
Danger
#3
Negligence
Property
Managers
Hiring a property manager does not

guarantee that your property issues will go
away like magic.
Unless you are a local familiar with the real
estate market, finding a credible and
trustworthy property manager to manage your
foreign property in a large country like the
USA is equivalent to finding a needle in a hay
stack without any relevant property contacts
and network.
Even if you do find one, it does not guarantee
the property manager will be 100% focused
on your one small property.
Back to Contents
In the USA, a property manager easily gets

paid $1,000 a month or more for managing
much larger properties like apartments and
commercial buildings, while the same
property manager gets paid only $100 a
month for managing one small property with
so much trouble. Which property do you think
he would rather focus his time and effort on?
Advice for would-be foreign investors
Be smart about your investments. As Ive
repeatedly advised many buyers of foreign
properties, invest based on Partnership, not
Salesmanship. What this means is that if you
really intend to invest in a foreign country you
dont know well, find and partner a credible
knowledgeable local of that country who has
sufficient local investing experience to advice
you on the pros and cons of the market. This
partner will have skin in the game with you. If
you dont have access to such credibility
Page | 5

or partnership, my advice is to stay away
from
CREI Academy Group, who exposes widely-
that
foreign
investment
or
that
salesman.
held property investment myths that have
I see many local property seminars and

exhibitions cashing in on the overseas-buying
hype. Many of them are marketing and
selling
low-cost
foreign
properties

ordinary investor.
with
illusionary returns as high as 20% a year to

unwitting mass market buyers. If I may say
so, you should be careful when buying from
them as these marketing companies are not
regulated by our Monetary Authority of
Singapore (MAS) in selling investments to
the public. In other words, there is no
recourse or any financial protection for you
as an investor. If you are buying on your own
directly, do note the above inherent dangers
youll be facing by yourself.
Back to Contents
Page | 6

Residential
Jurong EC plot bid breaks record
An all-time record price for EC land has been
made for a plot in Jurong, which has long
been starved of new EC supply. The 99-year
leasehold plot near Jurong Country Club
received a top bid of $418.53 psf ppr with
strong participation of 16 bidders. The buzz in
the location after the strong sales at J
Gateway condo last month has also been
attributed to cause the strong demand for the
EC plot. However, two other EC sites in
Punggol did not bring about such good
bidding price they only fetched top bids of
Back to Contents
$355 psf ppr and $356 psf ppr, which was

slightly higher than the $351 psf ppr bid of
another plot at Punggol Field Walk / Punggol
East. It was reported that developers were
more mindful of a saturation of EC and 99year private condo projects in the
Punggol/Sengkang location. All three EC sites
had simultaneous tender closings thanks to
the governments efforts to temper tender
bids. Yet peoples opinions have been divided
on the similar tender closings time: some
believed the governments attempt has failed
to temper tender bids, while others suggested
it is too early to jump to conclusions.
Page | 7

HDB to help more singles and families buy
their first HDB flat
The Housing and Development Board will set
aside up to 30 percent of two-room flat supply
in the latest Build-to-Order (BTO) exercise to
help eligible singles to apply for their new
flats. A total of 519 flats in Yishun and
Sengkang will be offered, with 301 units in the
new BTO projects and 218 units from the
previous BTO exercise. It has been predicted
that these flats, although located in nonmature estates, will be well received by
singles who cannot afford the cash-overvaluation (COV) for resale flats in the open
market. BTO was first announced in March
this year to allow first-time single Singapore
citizens aged 35 years and above who earn
up to $5000 per month to buy new two-room
standard flats in non-mature estate directly
from HDB.
Back to Contents

HDB launches 3,861 BTO flats in Yishun,
Sengkang and Bukit Merah
The HDB has launched 3,861 flats in four
projects in Yishun, Sengkang and Bukit
Merah for sale under the July BTO exercise,
and another 218 units of two-room flats in
Yishun and Sengkang of the previous BTO
exercise. As for the four projects, two are in
Yishun: Angsana Breeze @ Yishun with 958
units of three- to five-room flats of starting
prices between $159,000 and $334,000; Vine
Grove @ Yishun with 696 units of two- to
four-room flats of starting prices between
$76,000 and $258,000. As for Sengkang,
Fernvale Riverwalk has 727 units of two- to
four-room flats with starting prices between
$76,000 and $251,000.
Page | 8

Freehold condo The Tembusu open for
preview
Property developer Wing Tai Holdings'
freehold condominium project The Tembusu
has been open for preview this week to those
who had indicated an interest earlier. The
337-unit development is situated at Wing Tai
Holdings' former headquarters at 105 and
107 Tampines Road, 400 metres away from
Kovan MRT station. The Tembusu has one to
four-bedroom apartments, dual-key units and
penthouses in five blocks that range from 474
sq ft to 3,886 sq ft for the penthouse units.
The price of a three-bedder, which is a
common apartment type at the condo, starts
from $1,388 psf.
Back to Contents
Real estate cycle to reach inflexion point

According to Real Estate Developers
Association of Singapores (Redas) head Mr.
Chia Boon Kuah, Singapores real estate
cycle is reaching an important inflexion point
with two trends increased market volatility
and a maturing property cycle. He said that
record low interest rates and sustained
inflation growth have driven buyers towards
property which is now a strong magnet as a
store of wealth. On the other hand, risks in
the real estate market still remain which
include a potential pullback on the US easy
monetary policy which will increase interest
rates, Chinas recalibration of domestic
policies which will affect the global economy,
and a steady supply of real estate which will
Page | 9

be available in Singapore in the next four
years.
Home prices and housing affordability

within reason
Contrary to Moodys assertion that rapid loan
growth and rising real estate prices have put
the health and stability of the resident
property market at stake, the Singapore Real
Estate Exchange (SRX) said that home prices
and housing affordability, measured by the
mortgage debt servicing ratio (MDSR), are
both within reason. This means Moodys
assertion could be highly questionable. Prices
of Singapore's non-landed residential homes
have increased by 104 percent between
January 2000 and June 2013.
Commercial
Chinese
increase
investments
in
Singapore
More and more Chinese capital is pouring

into Singapore real estate, and this is not only
in the residential segment. Data of investment
transactions above $50 million from CBRE
showed that Chinese capital invested in
Singapore was just short of $5 billion
following the global financial crisis. For
investments above $50 million, Chinese
capital also accounted for 69 percent of all
foreign capital invested in Singapore for the
first half of 2013, compared to only 27
percent in H1 2012 and 67 percent in H2
2012.

Back to Contents
Page | 10
Postal
District
2
3
5
5
5
5
5
8
9
9
9
10
10
10
10
10
10
10
10
10
10
11
11
11
Project Name
ICON
DOMAIN 21
BOTANNIA
WEST BAY CONDOMINIUM
THE MAYLEA
REGENT PARK
FABER CREST
RESIDENCES @ SOMME
HELIOS RESIDENCES
GRANGE HEIGHTS
WATERFORD RESIDENCE
VIZ AT HOLLAND
DUCHESS RESIDENCES
SOMMERVILLE PARK
BELLERIVE
SOMMERVILLE PARK
CASABELLA
HOLT RESIDENCES
VALLEY PARK
THE MERASAGA
DORMER PARK
SKY@ELEVEN
CHANCERY COURT
SHELFORD VIEW
Back to Contents
Area
(sqft)
969
560
1,270
893
1,722
915
1,335
420
1,281
1,905
1,399
495
1,615
1,948
1,001
1,302
1,313
2,056
1,658
1,356
1,270
1,851
926
2,669
Transacted
Price ($)
1,780,000
950,000
1,630,000
970,000
1,860,000
938,000
1,333,000
740,000
4,856,600
3,100,000
2,230,000
940,000
3,050,000
3,350,000
1,720,000
2,120,000
2,050,000
3,160,000
2,536,740
1,950,000
1,800,000
2,918,888
1,320,000
3,800,000
Price
Tenure
($ psf)
1,837
99
1,697
99
1,283 956
1,086
99
1,080
FH
1,025
99
999
99
1,763
FH
3,792
FH
1,627
FH
1,594 999
1,898
FH
1,889 999
1,719
FH
1,718
FH
1,628
FH
1,561
FH
1,537
FH
1,530 999
1,438
99
1,417
FH
1,577
FH
1,426
99
1,424
FH
Postal
District
12
14
14
14
15
15
15
15
15
15
15
15
15
15
18
19
19
19
19
19
19
20
21
21
Project Name
EURO-ASIA APARTMENTS
CENTRAL GROVE
ATRIUM RESIDENCES
THE ARIZON
MEYER RESIDENCE
STUDIOS@TEMBELING
VERSILIA ON HAIG
OCEAN PARK
COSTA RHU
HAIG COURT
COSTA RHU
BUTTERWORTH VIEW
THE BALE
VILLA MARINA
THE TROPICA
KOVAN MELODY
KENSINGTON PARK CONDOMINIUM
RIVERVALE CREST
RIO VISTA
EVERGREEN PARK
EVERGREEN PARK
GRANDEUR 8
THE CASCADIA
SYMPHONY HEIGHTS
Area
(sqft)
2,443
1,227
1,141
947
1,066
786
1,313
1,302
1,765
1,453
2,056
1,216
1,066
1,475
1,238
915
1,658
936
1,249
1,087
1,173
1,216
1,184
1,206
Transacted
Price ($)
2,403,000
1,193,000
1,100,000
760,000
1,660,000
1,150,000
1,755,000
1,678,000
2,268,025
1,850,000
2,550,000
1,460,000
1,208,000
1,263,000
1,090,000
1,190,000
1,920,000
830,000
1,080,000
920,000
945,000
1,338,000
2,185,000
1,380,000
Price
Tenure
($ psf)
983
FH
972
99
964
FH
802
FH
1,558
FH
1,464
FH
1,336
FH
1,288
FH
1,285
99
1,273
FH
1,240
99
1,200
FH
1,134
FH
856
99
881
99
1,301
99
1,158 999
886
99
865
99
846
99
805
99
1,100
99
1,845
FH
1,145
FH
Page | 11
Postal
District
21
21
22
22
22
22
23
23
23
25
25
27
28
Project Name
HILLVIEW GREEN
SIGNATURE PARK
THE CENTRIS
LAKEHOLMZ
PARC OASIS
PARC VISTA
CASHEW PARK CONDOMINIUM
GUILIN VIEW
ROSEWOOD
ROSEWOOD
SERENITY PARK
Area
(sqft)
1,593
1,389
936
1,033
1,507
1,615
1,152
1,335
1,259
1,173
2,153
980
1,324
Transacted
Price ($)
1,685,000
1,400,000
1,135,000
1,090,000
1,430,000
1,500,000
1,200,000
1,330,000
1,150,000
1,030,000
1,520,000
860,000
1,038,000
Price
Tenure
($ psf)
1,058 999
1,008
FH
1,212
99
1,055
99
949
99
929
99
1,042 999
996
999
913
99
878
99
706
99
878
99
784
FH

Back to Contents
Page | 12
Issue 114
CONTENTS
p2
FROM THE
EDITOR
Singapore Property Prices Reach All-Time

High Yet Again, But

Hope you like it!
p9
p13
Mr. Propwise
Contribute
Advertise
News.

Singapore Property Prices Reach All-Time High Yet Again But

By Mr. Propwise
From the URAs recent 2Q2013 Private
Residential Property Price Index (PPI)
release, property prices have continued to
defy gravity and have even accelerated the
2Q2013 Residential PPI was up 1.0% on a
quarter-on-quarter basis, versus the 0.6%
increase of the previous quarter.
Singapore property prices at an all-time
high
Based on analysis of the URA numbers done
by the Singapore property research site
PropertyMarketInsights.com, at the current
levels the price index is 21.4% above the
previous 2Q2008 peak,
Back to Contents
Page | 2

and 18.7% above the previous all time high in
2Q1996.
low interest rates, has outweighed concern

over the worrying economic situation in
Europe and China, and the prospect of rising
interest rates US (and hence globally) when
the Fed tapers. And not to mention the
dampening effect of multiple rounds of
government measures since 2009.
but is mainly supported by strength in
the Outside Central Region
Figure 1 URA Property Price Index

On the surface, it would appear that the
strength of property demand, supported by
Back to Contents
The rate of price growth differed widely across

the various market segments. In the Core
Central Region, prices of non-landed private
residential properties actually fell by 0.2%
versus a remarkable increase of 3.8% in the
Outside Central Region, an acceleration from
the 1.4% increase in the previous quarter.
This is the first time that the PPI in the
Outside Central Region has surpassed
Page | 3

that of the Core Central Region.
Singaporeans. Since 2009 Singaporeans

have been growing as a proportion of total
buyers, and made up 80.1% of buyers in
2Q2013.
Figure 2 URA Property Price Index for

the Different Regions
This unprecedented phenomenon begs the
question: who are buying these overpriced
properties in the fringes of Singapore? Well, it
turns out the answer is regular middle income
Back to Contents
Figure 3 Singaporeans as a percentage

of total purchasers
The pullback in non-Singaporean buying has

Page | 4

also been affected by the much harsher
Additional Buyer Stamp Duties imposed on
Permanent Residents and Foreigners in
January 2013 in the Seventh Round of
government cooling measures.
Will property prices correct?
Figure 4 Change in URA Property Price

Index
Back to Contents
The question now hanging on most peoples

minds is: when will property prices correct?
Prices have been defying gravity despite the
threat of a weak global economic
environment, propped up by close-to-zero
interest rates thanks to the multiple rounds of
Quantitative Easing by the US Federal
Reserve.
Figure 5 3-Month and 12-Month SIBOR

Page | 5

The continued resilience of property prices
despite the previous seven rounds of
government measures, and the MAS
measures on the Total Debt Servicing Ratio
framework to limit leverage, increases the
probability of further measures to cool
sentiment. But it is not clear what more the
government can do other than to refine the
current measures (e.g. increase ABSD
further?).
I believe that we will only see significant
levels of price declines if: 1. There is an
external crisis that causes a panic, which we
had in each of the previous three declines
(e.g. Asian Crisis, Dotcom Bubble, Global
Financial Crisis); or 2. If interest rates rise
significantly thanks to the Feds tapering,
which will happen when the US economy
strengthens and unemployment rates fall,
Back to Contents
potentially in late 2014. In the meantime the

abundant global liquidity situation and
sustained low interest rates will continue to
support Singapore property prices, although
at the margins I think we are fairly close to
the end game.
Where will property prices go going forward?
There are a couple of ways to think about this
question. First, based on the Property Market
Cycle Model of PropertyMarketInsights.com,
we are in the Late Bull Stage of the market.
This means that the upside potential risk is
limited while the downside risk is significant.
Second, while everyone believes that low
interest rates will continue to prop property
prices up, the large upcoming supply of more
than 100,000 units could depress prices if
demand is not able to keep up (and we are
already seeing fairly weak rental growth).
Page | 6

Third, as Ive mentioned before, unexpected
crises (black swans) tend to occur when we
least expect it, especially when everyone has
become complacent.
I believe property prices cannot continue to
defy gravity forever, and that investors looking
to buy property in this market should be very
cautious.

property
blog
Propwise.sg
and
PropertyMarketInsights.com, an essential
property market analysis site that helps
buyers and sellers make profitable investment
decisions. Visit his sites to download free
property reports.
Back to Contents
Page | 7
Back to Contents
Page | 8

Residential
Property cooling measures discourage
foreign buyers
According to a caveats analysis by DTZ,
Singapore PRs and foreigners continued to
buy fewer private homes for the second
consecutive quarter in Q2 2013, while
Singaporeans private home purchases
increased by 14.4 percent in Q2 compared to
Q1 2013. PRs bought just 348 units in the
secondary market in Q2, 30.3 percent less
than Q1; yet PRs bought 525 units in the
primary market in Q2, 4.2 percent more than
Q1.

Back to Contents
HDB data points to easing for resale

market
As the latest round of cooling measures take
effect, the pressure on the public housing
resale market has apparently eased with the
lowest price growth for the past four years.
HDBs data has showed the Resale Price
Index (RPI) increased by 0.5 percent to reach
206.6 in Q2, compared to the 1.3 percent
increase in Q1. Christine Li, head of research
and consultancy at OrangeTee, said that
despite the slight increase in the RPI in Q2,
market sentiment has been weighed down by
the January cooling measures.
Page | 9

CapitaLand warned of headwinds
residential property market
for
In its candid assessment of Singapore

residential property market, CapitaLand
predicted a moderation in prices and sales
volume of residential property due to
increasing impact of various property
measures, which include the 60 per cent cap
on total debt servicing ratio that financial
institutions must apply before issuing property
loans. CapitaLand was reported to be
responsive to market changes and had
introduced discounts at its projects d'Leedon,
Interlace and Sky Habitat in Bishan.
ECs could see surge in demand soon: SLP
According
to
property
agency
SLP
International, due to the three main reasons
of runaway private property prices, a new
Back to Contents
government policy, and supply issues could

unintentionally lead to a surge in the demand
of executive condominiums (ECs). More
demand is being channeled towards ECs as
the growth in private condominium and
apartment prices continued to outpace ECs.
Commercial
Pockets of weakness surfaced in firm
property market
The latest official stats on Singapores private
property markets have shown the appearance
of pockets of price falls, including industrial
space and some residential categories,
although the property market remains firm as
a whole. The once-hot industrial space
category fell substantially. Particularly, the
price index for multiple-user warehouse
space decreased greatly by 5.9 percent in Q2
Page | 10

from Q1 of 2013, compared to the 10.6
percent quarter-on-quarter increase in Q1.
This put a stop to a rally that had spanned 14
consecutive quarters after the index bottomed
in Q3 2009. Consequently URAs All Industrial
price index decreased by 0.6 percent in Q2,
in contrast to the 4.5 percent increase in Q1.
Big Hotel up for sale

The Big Hotel along Middle Road has been
put on the market and is expected to raise
$260 million, which translates to $844,000 per
room for the 16-storey freehold hotel with 308
rooms. So many offers have been received
that Colliers International has been appointed
the marketing agent for the property and is
conducting an expression of interest exercise
which closes at 3pm on August 6. The
Back to Contents
property group behind Big Hotel was reported

to have intentions to develop more hotels in
places like Malaysia, Vietnam, South Korea,
Australia and Japan, either from scratch or by
converting existing buildings into hotels.
Woodlands industrial site top bid draws
$72.7m
Urban Redevelopment Authority's tender for a
30-year leasehold industrial site in Woodlands
Industrial Park E9 has attracted ten bidders.
The highest bid was $72.69 million or
$161.02
psf
ppr
from
Incorporated
Woodlands Pte Ltd - a unit of Incorporated
Builders Group involved in construction and
property development. The second highest
bid was $107.17 psf ppr from Lian Beng
Group unit Wealth Land.
Page | 11

The lowest bid was $55.38 psf ppr from NSS
Development. The site is 1.68-hectare wide
and is zoned for Business 2 use with an
integrated heavy vehicle park for a minimum
of 80 heavy vehicle parking lots. The
minimum of 80 heavy vehicle parking lots,
which shall be excluded from the computation
of the development's maximum gross floor
area (GFA) of 451,422 sq ft, can be sold as a
single strata lot. It is also the first time the
state has sold an industrial site with the heavy
vehicle parking lots not counted as part of
GFA, and the first time the developer has
been allowed to have a separate single strata
lot for the heavy vehicle parking lots.
Back to Contents
Page | 12
Postal
District
2
3
4
4
4
4
4
5
5
5
5
5
5
9
9
9
9
9
9
9
9
9
10
10
Project Name
SPOTTISWOODE PARK
CENTRAL GREEN CONDOMINIUM
MARINA COLLECTION
THE BERTH BY THE COVE
THE PEARL @ MOUNT FABER
REGENT PARK
KENTVIEW PARK
WESTCOVE CONDOMINIUM
THE INFINITI
GRANGE INFINITE
THE TATE RESIDENCES
CITYVISTA RESIDENCES
LUMA
LEONIE STUDIO
WILKIE 80
LEONIE TOWERS
FOUR SEASONS PARK
THE GRANGE
Back to Contents

Tenure
1,270 1,150,000
905
99
1,292 1,700,000 1,316
99
2,185 6,336,500 2,900
99
850 1,550,000 1,823
99
1,012 1,710,000 1,690
99
1,356 2,220,000 1,637
99
1,389 1,680,000 1,210
99
1,033 1,700,000 1,645
99
1,130 1,250,000 1,106
99
1,345 1,463,000 1,087
FH
1,249 1,200,000
961
99
1,475 1,385,000
939
99
1,561 1,453,333
931
FH
2,680 6,432,000 2,400
FH
635 1,520,000 2,393
FH
3,240 7,500,000 2,315
FH
2,142 4,750,000 2,218
FH
904 1,935,000 2,140
FH
2,271 4,700,000 2,069
FH
689 1,345,000 1,952
99
560 1,072,500 1,916
FH
2,906 4,900,000 1,686
FH
3,821 11,600,000 3,036
FH
2,282 5,750,640 2,520
FH
Postal
District
10
10
10
11
11
11
12
12
14
14
15
15
15
15
15
15
15
16
16
16
16
16
17
19
Project Name
THE MARBELLA
EWE BOON REGENT
HOLLANDIA
MANDALE HEIGHTS
CHANCERY COURT
PRESTIGE HEIGHTS
TREVISTA
SIMS DORADO
CRYSTAL MANSIONS
AMBER RESIDENCES
IMPERIAL HEIGHTS
THE MAKENA
THE ARIEL
ARTHUR 118
UNITED MANSION
NEPTUNE COURT
COSTA DEL SOL
COSTA DEL SOL
EASTERN LAGOON
THE SUMMIT
THE BAYSHORE
SANDY PALM
OASIS GARDEN

Tenure
1,475 2,480,000 1,682
FH
1,044 1,500,000 1,437
FH
1,970 2,400,000 1,218
FH
1,884 3,223,000 1,711
FH
1,345 1,720,000 1,278
FH
2,271 2,780,000 1,224
99
344
660,000
1,916
FH
1,281 1,640,000 1,280
99
969 1,060,000 1,094
FH
1,259 950,000
754
FH
1,163 1,650,000 1,419
FH
1,033 1,438,000 1,392
FH
1,507 1,921,000 1,275
FH
915 1,150,000 1,257
FH
1,604 1,820,000 1,135
FH
1,367 1,220,000
892
FH
1,636 1,380,000
843
99
1,227 1,670,000 1,361
99
1,345 1,750,000 1,301
99
980 1,100,000 1,123
FH
1,249 1,380,000 1,105
FH
1,184 1,100,000
929
99
1,744 1,220,000
700
99
1,335 1,550,000 1,161
FH
Page | 13
Postal
District
19
19
19
20
20
21
21
21
21
22
22
25
27
28
Project Name
THE SPRINGBLOOM
VINA LODGE
ROSALIA PARK
BISHAN PARK CONDOMINIUM
THE CASCADIA
HIGHGATE
PARC PALAIS
SUNSET LODGE
THE MAYFAIR
PARC OASIS
ROSEWOOD
SEMBAWANG COTTAGE
SERENITY PARK

Tenure
1,130 1,240,000 1,097
99
1,313 1,160,000
883
FH
1,518 1,235,000
814
FH
1,206 1,305,000 1,082
99
1,270 1,080,000
850
99
1,216 2,124,000 1,746
FH
1,905 2,175,000 1,142
FH
1,270 1,380,000 1,086
FH
1,023 1,070,000 1,046
FH
635
750,000
1,181
99
1,539 1,260,000
819
99
1,173 1,030,000
878
99
1,884 1,790,000
950
FH
1,098 1,050,000
956
FH

Back to Contents
Page | 14
Issue 113
CONTENTS
p2
FROM THE
EDITOR
4 Must-Ask Questions Before You Buy

That Overseas Property
Hope you like it!
p6
Property Selling Tip #6: Notify your Tenant
p7
p11
Mr. Propwise
Contribute
Advertise
News.

4 Must-Ask Questions Before You Buy That Overseas Property

I have recently been getting messages from
my blog readers, asking whether they should
invest in overseas properties. Locations that
people are interested in include Iskandar,
Kuala Lumpur, Penang, Australia, UK, US,
Japan, Thailand and the Philippines.
There is only one reason to justify buying
an overseas property
Basically, I am not against the idea of
investing overseas if the pasture is really
greener on the other side. However, I believe
that it is only justified to put your money
overseas when the cashflow and profit are
much better than what you can find at home.
Back to Contents
Page | 2

I am not a property agent selling overseas
properties. I won't invite you to a free threehour property investment seminar, and push
overseas projects towards the end. I am also
not selling you a thousand-dollar three-day
get-rich-quick property course that promises
to turn you into a millionaire, and make sure
you place a deposit for that overseas project
before you leave the room.
Why I am not buying now

As a property investor, I have researched the
property market in selected countries, which
includes reading everything I can get my
hands on, talking to local developers and
property agents, interviewing sellers and
owners, and viewing new and old properties
on the actual sites.
Don't ask me where the potential investments
are. I won't buy in any hot and overpriced
Back to Contents
market, only in markets no one shows any

interest in yet, or where things are so
depressed you can see 'blood all over the
streets'.
And every time before I commit, I will ask
myself four key questions.
1. Who are the other buyers?
Look at the profile of the people who are
buying the same thing. That should give you
clues on the quality of the investment project.
Are they sophisticated buyers or just laymen
of the market? Are they savvy investors or
just an average joe like you?
Try to understand the rationale behind their

purchase. Are they just following the herd to
dump their spare cash after they faced buying
restrictions of local properties? Have they
calculated the net return and run through the
worst case scenario?
Page | 3

2. Can you trust them?
How much do you know about the developer?
Can you trust that it will complete the project
on time and with acceptable quality? Will it
run away when the market tanks?
Who is going to manage the property on your
behalf? Can you trust the local management,
security and laws of the country? Will they
ask you to pay and pay, but with you still
ending up having to travel there frequently to
clean up the mess?
3. Why are the locals not buying?
If the return of that overseas project is so
attractive, why are the units not already being
snapped up by the locals? Why does the
developer have to spend so much time,
money and effort to go overseas, repackage
and market to you?
Back to Contents
Look at the rental return promised by the

developer. Are the locals avoiding those
projects because of oversupply, bad location
or poor rental demand?
If even the locals are not attracted by the
potential of the project, what make you think
that you, as a foreigner, will be able to get
credit terms, government taxes, rental return,
etc. more favorable than the locals?
4. Is there a secondary market?
Do you know there are property projects built
only to target foreign buyers? Some areas in
the US, UK and Australia have properties
mainly targeted at Asian buyers. Similarly,
some high-end condos and landed properties
in Malaysia are only marketed to foreign
investors.
Page | 4

Developers can continue building new
projects and sell to foreigners at a premium.
But one day when you want to sell yours, who
will be your buyer? The locals are not
interested to stay where you bought. The
amenities are only suitable for foreigners.
They are not interested to invest there either.
Why would they buy overpriced properties
from a foreigner that comes with so many
restrictions?
something doesn't make it a good

investment... the words new venture sound
to me like a loan that will never get paid back
... They want your money, pure and simple,
so they'll have a chance to make money.
What about other foreign buyers? Can you

find anyone to take it over from you? What if
they have already lost confidence in the
market?
I am not saying that all overseas property

investments are unprofitable, or all overseas
property marketing projects are scams. But
before you plunge in, why don't you conduct a
thorough study on the property market in that
country and on that specific property project?
If you are using your hard-earned money to
invest, it's better to be safe than sorry. And
when in doubt, leave it out.
I completely agree with what Donald Trump

said in his book Trump: Think Like a
Billionaire:

Just
because
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you
don't
understand
Page | 5
Property Selling Tip #6: Notify your Tenant

Be nice to your Tenants and they will be nice
to you too, especially when you want to
arrange viewings which are disturbing to their
stay.
In the event the property is to be sold with

tenancy, do inform your Tenant about the
change of rental payment bank account
number to avoid incorrect payment issues.
You can have a short discussion with them to

let them know about your intention to sell the
property and find out if they intend to
continue to stay.You would then be able to
decide if you are selling the property with or
without tenancy.
The deposit that you have received from the

Tenant would be transferred to the Buyer.
This will be handled by your Solicitor when
they handle the sales proceeds.
If the property is to be sold vacant, do give

your Tenant ample notice (as per the
Tenancy Agreement) for them to source for
an alternative rental unit.
Back to Contents
By Eileen Tan and Ui Wei Teck, property

investors and authors of Enjoying Mid-Life
Without Crisis. This tip and dozens more are
from their book.
Page | 6

Residential
Sales at Vue 8 affected by new home loan
curbs
Only 50-plus units were sold at Vue 8
Residence, a 99-year leasehold project in
Pasir Ris, due to the general air of caution
and longer bank loan approval process after
the new total debt servicing ratio (TDSR)
framework took effect on June 29. The
average prices of the units are between $980
and $1,050 per sq ft, depending on unit types
and whether units face the sea. Absolute
prices start from $540,000 for a 474 sq ft
one-bedder. At 17 storeys high, the 463-unit
condo development would have been able to
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sell between 150 and 200 units in the first

weekend prior to the new framework,
according to OrangeTee research head
Christine Li.
July developer sales expected to slow

down following June surge
Developer sales increased by 23.8 percent
month-on-month in June to 1,806 homes
(excluding executive condominiums), thanks
to the 737 units sold at the J Gateway condo
in Jurong on a single day on June 28 as
developers and buyers raced before the new
Monetary Authority of Singapore (MAS)
regulations took effect the following day.
Page | 7

According
to
Urban
Redevelopment
Authority's (URA) latest figures, developers
have moved 10,061 units in the first six
months, which translated to a monthly
average of 1,677 units. As for ECs, which are
a hybrid of private and public housing,
developers' June 2012 sales stood at another
1,725 units. Despite the June surge, market
watchers expect sales in July to slow down
due to the new Total Debt Servicing Ratio
framework by MAS, as players need time to
adjust to the more rigorous framework for
banks to approve property loans. Savills
Singapore research head Alan Cheong said
developers' private home sales for July could
be as low as half the June figure. Colliers
International director Chia Siew Chuin said
that July sales could ease to 1,000 units
before recovering in the following months.
Back to Contents
Tender for Tampines Ave 10 plot draws

strong demand, surprising analysts
Tampines Ave 10 plot, the first private
residential site tender to close since a new
debt servicing framework for property loans
was introduced, drew strong demand with ten
bidders and surprised analysts who predicted
greater caution. The highest bid was from
MCC Land Singapore with $562.01 psf ppr, or
$289.7 million in absolute terms. The second
highest bid stood at $522.24 psf ppr, or
$269.2 million from a partnership of UOL
Venture Investments and Kheng Leong
Company.

The Quinn to get July launch
The
Quinn,
a
freehold
residential
development along Bartley Road, will be
launched at the end of July by TOP Global.
Page | 8

The development comprises 139 units over
four five-storey blocks, with apartments
ranging from one-bedroom units (starting
from 484 sq ft), two- and three-bedroom units
(646- 1,141 sq ft) to penthouses exceeding
2,000 sq ft. Prices are expected to start from
$1,500 psf. Located close to the upcoming
Bidadari Township, The Quinn is expected to
benefit from the rental demand of the working
population based at Paya Lebar iPark, the
Central Business District and Seletar
Aerospace Park.
Commercial
No more bank-developer tie-ups
The Monetary Authority of Singapore (MAS)
has put out a new rule that would stop banks
from offering preferential interest rates for
property loans to clients buying designated
Back to Contents
properties. In other words, this rule would

restrict a common practice where property
developers and agents tie up with banks to
sell property. With effect from June 29
onwards, all forms of tie-ups with property
developers and agents are not allowed. MAS
spokesman said that except for the granting
of property loans, financial institutions should
not offer any property-related services to
customers in general, including property
advertisements or tie-ups with property
developers, regardless of the location (in or
outside of Singapore) or the type of property
(residential, commercial, industrial).

Shell firms cant circumvent new loan
regime
said that shell companies, or companies
Page | 9

set up by individuals to buy commercial and
industrial properties, are to be included in the
newly launched TDSR framework as well.
Financial institution were advised by MAS to
thoroughly assess the case in which
individuals set up local or offshore shell
companies but do not have substantive
businesses
with
genuine
commercial
activities. Entities not subjected to TDSR
framework include: existing companies
trading in property and/or holding investment
properties for rental income, and new entities
set up by an established property group or
fund if the FIs can establish the new entity's
parentage.
Back to Contents
Page | 10
Postal
District
1
2
5
5
5
5
8
9
9
9
9
9
9
9
10
10
10
10
10
10
11
11
11
11
Project Name
LUMIERE
THE PARC CONDOMINIUM
LE HILL CONDOMINIUM
VISTA PARK
CITYLIGHTS
HILLTOPS
HILLTOPS
PARC SOPHIA
THE INSPIRA
LUMA
PARC SOPHIA
ASPEN HEIGHTS
PARVIS
THE LEVELZ
SOMMERVILLE PARK
HOLT RESIDENCES
THE LEGEND
SHEARES VILLE
SOLEIL @ SINARAN
AMARYLLIS VILLE
AMANINDA
Back to Contents
Area
(sqft)
614
506
1,496
1,195
1,302
980
1,356
1,184
1,593
474
667
1,173
667
1,572
990
786
1,302
2,056
1,464
1,528
581
2,573
958
1,345
Transacted
Price ($)
1,400,000
1,105,000
1,720,000
1,360,000
1,480,000
890,000
2,200,000
3,629,000
4,816,500
980,000
1,360,000
2,165,000
1,175,000
2,515,000
1,938,000
1,330,000
2,171,000
3,160,000
2,180,000
2,185,000
1,250,000
4,305,000
1,600,000
1,930,000
Price
Tenure
($ psf)
2,282
99
2,184
99
1,150
FH
1,138
FH
1,136
FH
909
99
1,622
99
3,065
FH
3,023
FH
2,069
FH
2,038
FH
1,845
FH
1,761
FH
1,600
999
1,957
FH
1,693
FH
1,667
FH
1,537
FH
1,489
FH
1,430
FH
2,151
99
1,673
FH
1,670
99
1,434
FH
Postal
District
12
12
12
12
12
12
14
15
15
15
15
15
15
16
16
16
17
18
19
19
19
19
19
21
Project Name
D'LOTUS
TRELLIS TOWERS
DE PARADISO
THE ARTE
BALESTIER TOWERS
MOONSTONE RESIDENCES
ASTORIA PARK
AALTO
CASA MEYFORT
ST PATRICK'S LOFT
COSTA RHU
THE SUNNIDORA
NEPTUNE COURT
COSTA DEL SOL
CHANGI COURT
THE BAYSHORE
OASIS @ ELIAS
SANCTUARY @ 813
TANGERINE GROVE
THE SPRINGBLOOM
THE MORNING GLORY
EVERGREEN PARK
GARDENVISTA
Area
(sqft)
570
1,163
1,130
1,399
4,413
1,044
1,195
1,442
1,841
1,066
2,056
861
1,636
1,755
872
926
1,249
1,270
936
1,389
1,302
1,033
1,173
861
Transacted
Price ($)
835,000
1,600,000
1,535,000
1,850,000
4,975,000
1,063,880
1,170,000
2,588,000
2,600,000
1,350,000
2,575,000
1,010,000
1,200,000
2,500,000
1,060,000
920,000
1,250,000
1,235,000
1,080,000
1,560,000
1,420,000
1,030,000
890,000
1,160,000
Price
Tenure
($ psf)
1,464
FH
1,376
FH
1,358
FH
1,322
FH
1,127
FH
1,019
FH
979
99
1,794
FH
1,413
FH
1,267
FH
1,252
99
1,173
FH
733
99
1,425
99
1,216
FH
994
99
1,001
FH
972
99
1,153
FH
1,123
FH
1,090
99
997
FH
759
99
1,347
99
Page | 11
Postal
District
21
21
21
21
21
22
22
22
23
23
23
26
Project Name
THE BLOSSOMVALE
HIGHGATE
PARC PALAIS
SUNSET LODGE
HUME PARK I
THE CENTRIS
THE LAKESHORE
PARC VISTA
HILLVIEW REGENCY
PARKVIEW APARTMENTS
PALM GARDENS
THE CALROSE
Area
(sqft)
1,367
1,227
1,238
1,087
1,582
1,066
1,109
1,055
1,195
1,119
1,216
969
Transacted
Price ($)
1,780,000
1,380,000
1,350,000
1,130,000
1,460,000
1,400,000
1,380,000
990,000
1,135,000
895,000
935,000
1,180,000
Price
Tenure
($ psf)
1,302 999
1,125
FH
1,091
FH
1,039
FH
923
FH
1,314
99
1,245
99
939
99
950
99
799
99
769
99
1,218
FH

Back to Contents
Page | 12
Issue 112
CONTENTS
p2
FROM THE
EDITOR
The Singapore Property Wealth

Trap aka Capital Gains
Hope you like it!
p8
Property Selling Tip # 5: Completion of Sales
p11
p14
Resale Property Transactions (June 26 July 2)
Mr. Propwise
Contribute
Advertise
News.

The Singapore Property Wealth Trap aka Capital Gains

We can see many property investors on the
streets who dream to become millionaires.
They behave like the hilarious first round
participants of The Next Singapore Idol
contest who are thick-skinned enough to
believe they have it. My late multimillionaire
grandfather said, The Rich makes money
with control, while dreamers always make
money on hope and hope is their only
saviour.
Dreamers invest on capital gains and hope.
You dont need intelligence to make money in
a booming market, because anyone can
make money when the market is booming.
Back to Contents
Page | 2

But when the crunch time comes, many of
these dreamers lose control, and panic like
lab rats. They dont have the necessary skills
to prevent a financial disaster. All they have is
hope.
They have what I called herd intelligence.
They see the immediate situation just like
everyone else. They copy and paste. They
think narrowly and call it being focused. They
don't see the context. They don't see the
consequences. Thats how dreamers often
get ripped into pieces by the unforgiving
market.
A taste of success breeds complacency
After the recent MAS cooling measures, I
talked to an acquaintance whom I met. He
had made money selling off his first
investment property for a six-figure-profit
which he bought in 2009 and sold in 2011. As
Back to Contents
an ordinary employee of a local MNC, he felt

incredible with such profits in his pockets!
Now, believing that he can fly from the
success of his first investment, he proceeded
to buy two newly launched property units of
large developments in 2012. His objective: to
sell and make capital gains upon T.O.P in the
next few years.
When I asked him if he really believed that he
could sell higher then, he haughtily said, If I
cannot sell, I rent. If I cannot rent, I stay. He
proudly continued, Ive recently received
many calls from potential buyers for $1.8
million for one of my properties. Initially, thats
my asking price but I flatly rejected those
offers.
Why? I asked. You should have simply
accepted the deal and walked away with the
money now.
Page | 3

Because I wanted $2.2 million as I believe
my property will fetch this price due to its
location since other recent new launches in
other less strategic locations are already
asking around this price. I even asked my
wife not to entertain those calls unless the
buyers are willingly to negotiate at my price,
then we talk.
What if the market corrects in the next few
years? I asked.
I can still sell the property at $1.4 million from
the $1.6 million I bought. I can afford to lose
$200,000 in such situation.
Making assumptions that are out of your

control
This dreamer guy makes far too many
assumptions which he cannot control:
1. Believes prices will always go up
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2. Believes his properties have real buyers,

when in reality, the potential buyers are
no more than property agents marketing
gimmicks to entice buyers to sell.
3. Believes he can keep his job to service
his mortgage payments when a downturn
comes
4. Believes the market, if it corrects, will only
fall 12% and he will lose only $200,000
5. Believes interest rates will stay low in the
future
6. Believes he can rent out his unit easily
when it T.O.Ps (huge development)
7. Believes he can find buyers easily when it
T.O.Ps (huge development)
8. Believes property is a sure one-way-bet
to riches
9. Believes he can constantly make money
on capital gains easily
10. Believes he is a savvy investor and he
can now fly
Page | 4

Hes an amateur who invested with no
investment control. His only control was that
he felt he could afford to lose $200,000. If
youre investing on assumptions and beliefs,
good luck to your investments.
Capital Gains are like inherited wealth:
attained without discipline
Most kinds of power require a substantial
sacrifice by whoever wants the power. There
is an apprenticeship, a discipline lasting many
years. Whatever kind of power you want:
CEO of the company; Black belt in karate;
Spiritual guru; Property millionaire. Whatever
it is you seek, you have to put in the time, the
practice, the effort. You must give up a lot to
get it. It has to be very important to you. And
once you attain it, it is your power. It can't be
given away. It resides in you. It is literally the
result of your discipline.
Back to Contents
Now, what is interesting about this process is

that, by the time someone has acquired the
ability to kill with his bare hands, he has most
likely also matured to the point where he
won't abuse it. So that kind of power has a
built in control. The discipline of getting the
power changes you so that you won't abuse
it.
Capital Gains are like inherited wealth:
attained without discipline. You copy what
others have done, and you take the next step.
You can do it very young. You can make
progress very fast. There is no discipline
lasting many decades. There is no mastery;
risks are ignored. There is no humility before
nature. There is only a get-rich-quick, make a
name for yourself fast philosophy. No one has
any standards. They are all trying to do the
same thing: to do something big, and do it
fast.
Page | 5

Without discipline, something will go
wrong eventually
higher, sell lower? Its always a zero-sum

game.
A karate master does not kill people with his

bare hands. He does not lose his temper and
kill his wife. The person who kills is the
person who has no discipline, no restraint.
And that's the power that capital gains fosters
and permits. And that's why you think that to
build wealth like this is simple. But it is not,
and something will go wrong eventually.
The rich never buy and sell profitable assets.

They buy and keep forever for both income
and capital value. The dreamers always hope
to buy and sell to make that quick buck. Go to
the casino instead. In a casino, an amateur
gambler makes money on the first couple of
visits, only to lose even more eventually when
his luck runs out. Just like a casino, we can
never beat the market.
I question the conventional wisdom of

constantly buying and selling properties (or
any other assets for the matter) for capital
gains. If the taxman does not get you, the
market will eventually.
You buy low, then sell high. Then what do you
do with your profits at that point of time? Buy
Back to Contents
This is what happens to most amateur

investors who happen by chance to make
money in a boom time, only to lose it all in a
downturn. Real investors make the most
money during the downturn of the market,
and treat gains from a booming market as a
bonus.
Page | 6
You want to be an investor, not a trader. You

want to invest on income, not capital gains.
Capital gains should be treated only as a

bonus, and should never be a key priority in
your property investment decision.

ordinary investor.
Back to Contents
Page | 7
Property Selling Tip # 5: Completion of Sales

What if your Buyer requests to delay the
Sales Completion date?
The Sales Completion date is determined by
both the Buyer and Seller when they enter
into the Option to Purchase (OTP) contract.
The date for the Completion of Sales is
usually 8 to 12 weeks from the OTP date and
this can vary as long as both parties agree to
it upfront.
So, what if one party requests to delay the
Sales Completion after the OTP has been
exercised? This change will have to be
handled by the solicitors of both parties and
you have the liberty to accept or reject the
change request suggested by the Buyer.
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Page | 8

In the event that you are in no hurry to
complete the sales, then why not accept the
change as the other party would have their
reasons for such a request? You can request
for some level of compensation such as
interest or rent settlement via your solicitor.
We have seen a case where the Seller
agreed to delay the completion date and that
benefited her by preventing her from putting
her gain from the property transaction into the
stock market right before a major
correction.So be nice to people and you could
be rewarded in otherways!
Back to Contents
Nevertheless, if you have an urgent need to

complete the sale, you can decline the
change request to prevent disruption to your
plans.
When considering the completion date, dont
forget to give sufficient notice to the bank or
be prepared to pay a penalty upon your
mortgage redemption, if applicable.
from their book.
Page | 9
Back to Contents
Page | 10

Residential
Condo rental yields decrease
Rental yields for condominium apartments
have fallen below the psychological 4 percent
support level. Overall gross median rental
yield for the first half of 2013 stood at 3.9
percent, compared to 4.2 percent in 2012 and
4.4 percent in 2011, according to the
Singapore Real Estate Exchange. Areas
which experienced the sharpest fall include
Southern Islands (28.4 percent), Orchard (28
percent) and Jurong East (17.4 percent). The
Southern Islands have the lowest rental yields
of 1.7 percent, followed by Newton with 2.2
percent and Orchard with 2.6 percent.
Back to Contents
Rentals could be under continued pressure

as a record 16,000 completions are expected
this year.
Singapore is second priciest in the world
for foreigners to buy homes
According to property consultancy Knight
Franks Global Development Insights secondquarter report, Singapore is second priciest
place for foreign home buyers to buy newly
built prime residential property, only after
Hong Kong. The escalated costs are due to
increase in associated fees and taxes, while
actual property prices have dropped 3.3
percent since a year ago.
Page | 11

Regulatory measures to cool the property
market in January are also another factor to
cause the rise.
Commercial
S-Reits may pick up
According to UOB Kay Hian, interest in SReits could increase when investors realize
they are growth plays, not traditional yield
plays.
This
is
thanks
to
potential
improvements in rents, asset enhancements
and acquisitions in a broader global economic
recovery. Recently Reits have suffered a
broad sell-down in the markets with the
sharpest correction among all the yield
stocks.
Ten-year yields for Singapore
government securities have risen from 1.4
percent to 2.7 percent from May to June,
Back to Contents
while the average yield for Reits has risen by

90 basis points.
JP Morgan
footprint
to
boost
its
real
estate
Among financial institutions with slow pace of

office leasing in Singapore, JP Morgan was
reported to boost its real estate footprint by
40 percent. Under a front end-back end split,
it is to lease 130,000 sq ft of business park
space at One@Changi City. The bank is
operating out of two locations Capital Tower
and One@Changi City. JP Morgans chief
administrative officer for Singapore, Mr. Paul
Echart said the banks long term real estate
strategy needs efficient management to
provide desirable work environment.
Page | 12

AusGroup sold fabrication facilities for
$39.4m
AusGroup has sold its Singapore fabrication
facilities at 36 Tuas Road for $39.4 million to
Boustead Trustees Pte Ltd in a sale-andleaseback deal. The deal allowed AusGroup
to leaseback the property with no impact on
its operations of providing clients with high
quality fabrication and machining services in
timely delivery. The property has an area of
30,000 sq meters, with large enclosed
fabrication facility, machine shop and staging
areas. It has a JTC lease for 30 years starting
in May 6, 1995.
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Page | 13
Non-Landed Residential Resale Property Transactions for the Week of Jun 26 Jul 2
Postal
District
3
4
5
5
5
5
5
8
8
9
9
9
9
9
9
9
9
9
9
9
10
10
10
10
Project Name
TWIN REGENCY
HERITAGE VIEW
REGENT PARK
REGENT PARK
VISTA PARK
MERA SPRINGS
MERA SPRINGS
SCOTTS SQUARE
HILLTOPS
HILLTOPS
THE PATERSON EDGE
GRANGE INFINITE
THE COSMOPOLITAN
ASPEN HEIGHTS
SOPHIA 98
ASPEN HEIGHTS
PARC CENTENNIAL
PARVIS
STUDIO 3
STEVENS LOFT
ONE ROBIN
Back to Contents
Area
(sqft)
1,227
893
1,615
969
807
904
904
1,292
1,066
624
1,593
1,593
872
441
2,702
1,324
3,100
969
1,604
1,163
2,013
560
700
1,948
Transacted
Price ($)
2,150,000
1,550,000
2,550,000
1,250,000
931,000
990,000
880,000
1,860,000
1,360,000
2,300,000
5,285,000
4,798,000
2,280,000
1,150,000
6,484,800
2,730,000
4,950,000
1,530,000
2,380,000
1,700,000
3,980,000
1,070,000
1,300,000
3,300,000
Price
Tenure
($ psf)
1,752
FH
1,735
99
1,579
99
1,290
99
1,153
99
1,095
99
973
99
1,440
FH
1,276
FH
3,684
FH
3,317
FH
3,012
FH
2,615
FH
2,606
FH
2,400
FH
2,062
FH
1,597 999
1,579
FH
1,484 999
1,462
FH
1,977
FH
1,912
FH
1,858
FH
1,694
FH
Postal
District
10
11
11
14
14
14
14
15
15
15
15
15
15
15
16
16
16
17
18
18
19
19
20
20
Project Name
MONTVIEW
SOLEIL @ SINARAN
SKY@ELEVEN
LE CRESCENDO
STARVILLE
THE ALCOVE
COSY LODGE
ONE AMBER
COSTA RHU
BUTTERWORTH 33
AQUENE
TORIE MANSIONS
NEPTUNE COURT
CHANGI COURT
EAST MEADOWS
MELVILLE PARK
RIS GRANDEUR
RIVERVALE CREST
REGENTVILLE
BRADDELL VIEW
BRADDELL VIEW
Area
(sqft)
1,744
936
2,820
1,453
1,216
1,270
1,292
1,259
990
1,389
1,119
1,528
1,356
1,636
1,389
1,206
1,615
1,001
990
3,078
1,421
1,163
1,453
1,615
Transacted
Price ($)
2,725,000
1,830,000
4,940,000
1,635,000
1,220,000
1,070,000
1,020,000
1,880,000
1,300,000
1,575,000
1,250,000
1,650,000
1,100,000
1,200,000
1,438,000
1,140,000
1,500,000
970,000
770,000
2,050,000
1,100,000
900,000
1,375,000
1,450,000
Price
Tenure
($ psf)
1,563
FH
1,954
99
1,752
FH
1,125
FH
1,003
FH
842
99
790
FH
1,493
FH
1,313
99
1,134
FH
1,117
FH
1,079
99
811
FH
733
99
1,036
FH
946
99
929
99
969
FH
778
99
666
FH
774
99
774
99
946
99
898
99
Page | 14

Postal
District
21
21
21
22
22
22
22
23
23
23
23
23
23
26
Project Name
BUKIT REGENCY
MAYFAIR GARDENS
BEAUTY WORLD CENTRE
THE CENTRIS
PARC OASIS
PARC VISTA
PARC VISTA
THE DAIRY FARM
MI CASA
HILLVIEW REGENCY
MERALODGE
NORTHVALE
PARKVIEW APARTMENTS
SEASONS PARK
Area
(sqft)
1,399
1,798
1,873
1,087
1,076
1,259
1,044
1,281
1,259
1,195
1,916
1,356
1,119
1,066
Transacted
Price ($)
1,450,000
1,680,000
1,720,000
1,150,000
1,120,000
1,180,000
960,000
1,450,000
1,390,000
1,150,000
1,780,000
1,130,000
920,000
950,000
Price
Tenure
($ psf)
1,036
FH
935
99
918
99
1,058
99
1,041
99
937
99
919
99
1,132
FH
1,104
99
963
99
929
FH
833
99
822
99
891
99

Back to Contents
Page | 15
Issue 111
CONTENTS
p2
FROM THE
EDITOR
4 Impacts of the MAS Measures on

Mass Market Buyers
Hope you like it!
p7
Property Selling Tip #4: Seller Stamp Duty
p8
p11
Resale Property Transactions (June 20 June 25)
Mr. Propwise
Contribute
Advertise
News.

4 Impacts of the MAS Measures on Mass Market Buyers

By Gerald Tay (Guest Contributor)
After seven cooling measures and now

another shadow one again, I think many of
us are already immune by now, Another one
again! Whens the next one? From my
previous writings, Ive mentioned we do not
need a rocket scientist brain to comprehend
how hot we are in the property market cycle
with so many cooling measures from the
government.
As for the magic question To buy or not to
buy now, you should have known by now (I
hope you do) that if you are going to buy any
property today, you will be paying very
expensively. Unless you do really know how
to create value despite the high price you
paid for, or youre drowning in cash,
Back to Contents
Page | 2

buying just about any property today is like
trying to walk across a field of landmines
without getting a leg blown off.
Poor returns for mass market buyers?
For many mass market buyers and investors
who bought into local new property launches
during the last two years to get better returns
than bank deposits, they would most likely be
disappointed with the pathetic rental yields
and capital gains if any in future, upon
completion or T.O.P.
Some eager mass market buyers might say
that with all the strict property measures and
a tighter market, property developers today
are offering many freebies and discounts, so
they can benefit from a buyers market with
lower prices. Surely, no logical mind will even
expect close to a good deal from a developer
in a hot market?! Buyers now might not know
what sucker looks like until they look at
Back to Contents
themselves in the mirror.

Developers cashing in on mass market
frenzy
Property developers, like any other business,
are in the business of making profits to
account to their shareholders they are not
some charity home dishing out free stuff for
nothing! Everything has a price to it and one
will be paying for it one way or the other. With
continued price increases from previous
months and sell-outs of several property
projects, there is still a market for mass
market property developers to make good
money.
With strong holding power (especially for

large developers), coupled with low borrowing
costs for acquiring land and other capital
expenditures, there is no reason why any
property developer will want to miss out on
the tasty opportunity of cashing in on a
Page | 3

sucker mass buyer market, make easy
money and accumulate enough food before
the dreaded winter comes. Developers will
want to reap in as much profit as they can
now before a severe price correction, rise in
interest rates or market crash occurring. They
know it is not a matter of if it will happen, but
when.
Many middle class buyers will unfortunately
be slaving away in their jobs (if they still have
a job to keep later) to pay off their loans,
while the rich sellers and other vested interest
groups, will simply laze away in the Bahamas.
What it all means for mass market buyers
on the latest cooling measures:
1. Tighter credit availability means
restriction in growth of future capital
gains, if any
market. Like a blood transfusion, without

enough access to it, one is going to get blood
clots and heart attacks.
The MAS announcement even took pains to
emphasize that these rules are "structural in
nature", which means that they are here to
stay for the long term and will not be removed
even if there is a correction in the market
(unlike the LTV rules, which are flexible
depending on market conditions).
2. Retiring on future property gains is
nothing but a dream
If the latest measures are going to be
"structural in nature" for years to come, for
the many mass market property buyers
hoping to retire on their property gains, this
may turn out to be nothing more than wishful
thinking.
Credit is the blood of any booming property

Back to Contents
Page | 4

The concept of owning a home as an Asset
Enhancement for the middle class is no more
than mistaking lead for gold.
3. An even more limited pool of future
buyers in the market
If no one is going to buy or can afford to buy,
then who are sellers going to sell to? If
someone truly believes he/she can try their
luck and sell to some sucker foreign buyers
in the future, I suggest he/she goes to a
casino instead to avoid a painstakingly slow
death in servicing losses. At least its faster
there. With the internet, many foreign buyers
are a lot more knowledgeable and savvy
today.
For the many new property projects that are
due for completion soon, many will face a
very limited pool of buyers. Those
speculators, who assume they will sell at
Back to Contents
higher prices, will be sorely disappointed

when the current party ends.
For the mass market investors who cannot
sell or rent out their property at reasonable
yields and think that alternatively, they can
stay in it for themselves, they have to pray
hard they can remain in their jobs and be able
to afford to pay off the mortgage payments
and other expenses of the property when
interest rates rises.
4. Todays middle class consumers may
find it difficult to buy a good property
investment and grow their wealth when
the opportunity arises in future
The Total Debt Servicing Ratio is taken into
account when borrowing to buy a property. It
takes into account the monthly repayment
amounts for all (property and non-property)
loans of the borrower. In the case of joint
Page | 5

borrowers, the TSDR is computed based on
the total monthly debt obligations and total
gross monthly income of the borrowers.
A discount of 30% on all variable income (e.g.
bonuses and commission) and rental income
is applicable too.
For the middle class who have been spending
a large portion of their monthly income or
commissions to service their expensive car,
credit cards and other loans to lead
conspicuous lifestyles in good times instead
of prudent investing or spending for an
uncertain future (i.e. spending tomorrows
money), this ruling may prove to be the knife
in the back for many of them.
Will the latest property measures cause a
major price correction?
Not yet. Rather than a simple demand and
supply equation, the dynamics that fuel our
Back to Contents
unique property market works on many highly

complex and intricate factors, some of which
are unknown and not within the control of our
government policies.
These measures are implemented to

hopefully prevent any further price escalation
beyond reasonable levels and maintain a
stable property market. In the event of a
major price correction due to uncontrollable
economic factors, the government hopes to
prevent a market crash that may be
catastrophic to our fragile economy.
Well as they say, hope is not a guarantee.
ordinary investor.
Page | 6
Property Selling Tip #4: Seller Stamp Duty

At the time of this writing, a Seller Stamp
Duty (SSD) is applicable for the below
situations:
January 2011, the following SSD applies:
(1) If you property is bought between 30

August 2010 to 12 January 2011, the
following SSD applies:
12% of price or market value if the

property is sold within the second year.

property is sold within the first year.
property is sold within the second year.

property is sold within the third year.
No SSD when the property is sold after a
holding period of three years.
(2) If your property is bought on or after 13

Back to Contents

property is sold within the first year.

property is sold within the third year.
property is sold within the fourth year.
No SSD when the property is sold after a

holding period of four years.
from their book.
Page | 7

Residential
Private home prices increase in second
quarter
According to the Urban Redevelopment
Authority's second quarter flash estimates,
the private home price index increased by 0.8
percent from Q1, with a 3 percent increase
for non-landed home prices in suburban
areas. In Q1, the increase for private home
and non-landed home prices was 0.6 and 1.4
percent respectively. Property consultants
and analysts predicted a decrease in the
volume of transactions for private home in the
near future, but were reluctant to forecast any
drop in private home prices. At the same
time, the Monetary Authority of Singapore
Back to Contents
took action to prevent loopholes previously

used to circumvent tighter loan-to-value limits
on second and subsequent housing loans
and longer-tenure loans.
HDB resale price growth in Q2 lowest in

over four years
HDB flat resale prices in Q2 have the lowest
growth in over four years, signaling signs of
stabilizing. HDBs resale price index (RPI)
showed only an increase by 0.5 percent, the
lowest since Q1 of 2009. It was reported that
cooling measures introduced in January and
an abundance of new flats were the two main
reasons for the halt.
Page | 8

The Mortgage Servicing Ratio (MSR) for HDB
flats was cut in January to 35 per cent of a
borrower's gross monthly income for loans
from 40 per cent previously, which was
thought to have reduced purchasing power of
HDB buyers and deflated the price growth
momentum. Resale price in Q2 was also held
down by an abundance of supply.
Love for property drives up debt levels
Singaporeans love for property has driven up
their debt levels to 75 percent of GDP,
doubling that of 38 percent in 2000. This is
considered high compared to other countries
in the region, except for Australia, Korea and
Malaysia. Housing loans in Singapore make
up 74 percent of total consumer loans. The
government has announced that it would take
action to ensure more prudent borrowing,
Back to Contents
which, according to bankers, will have impact

on loan volumes yet its impact is to be
observed.
Commercial
Ying Li appoints group COO
Tan Kiang Hwee has been appointed as
group chief operating officer for Ying Li
International Real Estate Limited. Mr. Tan will
be based in Singapore first, before being
relocated to Chongqing next year, following
Ying
Lis
expansion
into
integrated
commercial
property
development
in
Chongqing, particularly in central business
districts and urban renewal projects. Mr. Tans
experience in real estate spans more than 25
years, with his previous position as group
chief executive of building consultancy
Page | 9

Surbana Corporation, appointments in the
Housing and Development Board and the
Ministry of National Development.
maintained their asking rents at $31.1 psf per

month. Orchard Road rents came in at $35.1
psf in Q2.
Rental gap in retail space narrows

The rental gap in retail space between the
regional centers and Orchard Road has
narrowed, as average monthly gross rents of
prime retail space in Orchard Road declined
0.9 percent while regional centers gained 0.1
percent in Q2. This mean the price gap
between Orchard Road and the regional
centers narrowed even more from 10.1
percent in Q1 to 9 percent in Q2. Non-luxury
and fast-fashion sectors were reported to
move from Orchard Road to more suburban
locations, which have been dominated by
food and beverage operators. Despite
looming supply in the suburbs, landlords still
Back to Contents
Page | 10
Non-Landed Residential Resale Property Transactions for the Week of Jun 20 Jun 25
Postal
District
1
1
4
4
4
5
5
9
9
9
9
10
10
10
10
10
11
11
12
12
12
12
13
13
Project Name
MARINA BAY RESIDENCES
THE OCEANFRONT @ SENTOSA COVE
REGENT PARK
THE SPECTRUM
GRANGE INFINITE
RIVERGATE
RIVERSIDE 48
PACIFIC MANSION
ARDMORE PARK
BELMOND GREEN
MELROSE PARK
WILLYN VILLE
THE TESSARINA
BIRMINGHAM MANSIONS
THOMSON 800
TREVISTA
CASA FORTUNA
SUITES @ TOPAZ
ST MICHAEL'S CONDOMINIUM
AVON PARK
EURO-ASIA PARK
Back to Contents
Area
(sqft)
2,379
667
1,711
1,711
1,335
818
1,367
2,702
1,744
904
1,356
2,885
958
1,313
861
990
1,066
1,399
463
506
1,152
1,432
2,174
1,604
Transacted
Price ($)
7,351,110
1,340,000
3,890,000
2,951,888
2,200,000
900,000
1,480,000
7,500,000
3,430,000
1,550,000
1,800,000
10,200,000
1,725,000
2,280,000
1,445,000
1,600,000
1,540,000
1,844,000
795,000
865,000
1,150,000
1,380,000
2,826,000
1,840,000
Price
Tenure
($ psf)
3,090
99
2,008
99
2,273
99
1,725
99
1,648
99
1,100
99
1,083 FH
2,776 FH
1,967 FH
1,714 FH
1,327 FH
3,536 FH
1,801 FH
1,736 999
1,678 FH
1,616 FH
1,445 FH
1,318 FH
1,718
99
1,710 FH
998
FH
964
FH
1,300 FH
1,147 FH
Postal
District
14
14
14
15
15
15
15
15
15
15
15
15
15
16
16
16
16
16
16
16
17
18
18
19
Project Name
NICOLE GREEN
CASA EMERALD
ASTOR
THE SEAFRONT ON MEYER
CALLIDORA VILLE
ONE AMBER
EMERALD EAST
VITRA
ONE @ PULASAN
CHELSEA LODGE
SIGLAP SHOPPING CENTRE
COSTA DEL SOL
LANDBAY CONDOMINIUM
CHANGI COURT
THE BAYSHORE
BAYSHORE PARK
CASAFINA
EASTWOOD GREEN
RIS GRANDEUR
EASTPOINT GREEN
GOLDEN HEIGHTS
Area
(sqft)
1,270
1,055
1,119
1,604
1,001
872
3,046
1,195
732
1,098
872
1,442
3,197
1,345
980
840
947
2,239
1,378
1,141
1,324
1,066
958
764
Transacted
Price ($)
1,493,000
970,000
970,000
2,900,000
1,350,000
1,100,000
3,800,000
1,480,000
860,000
1,280,000
938,000
1,500,000
3,250,000
1,730,000
1,200,000
960,000
985,000
2,140,000
1,220,000
1,000,000
1,190,000
1,060,000
905,600
1,050,000
Price
Tenure
($ psf)
1,175 FH
920
FH
866
99
1,808 FH
1,349
99
1,262 FH
1,247 FH
1,239 FH
1,175
99
1,166 FH
1,076 FH
1,040 FH
1,017 FH
1,286
99
1,225 FH
1,143 FH
1,040
99
956
99
885
99
876
99
899
FH
995
FH
945
99
1,374 FH
Page | 11

Postal
District
19
19
19
19
19
19
19
19
19
20
20
22
23
23
23
23
25
26
Project Name
KOVAN RESIDENCES
FONTAINE PARRY
SUNGLADE
KOVAN MELODY
THE SUNNYDALE
SUN ROSIER
SIMON PLAZA
EVERGREEN PARK
GRANDEUR 8
GRANDEUR 8
PARC OASIS
MI CASA
PARKVIEW APARTMENTS
PARKVIEW APARTMENTS
PARKVIEW APARTMENTS
CASABLANCA
FOREST HILLS CONDOMINIUM
Area
(sqft)
1,442
1,238
1,044
1,658
1,518
1,345
2,077
1,615
1,345
1,227
1,722
1,507
1,367
980
936
980
926
1,582
Transacted
Price ($)
1,850,000
1,525,000
1,245,000
1,900,000
1,700,000
1,340,000
1,940,000
1,480,000
1,180,000
1,400,000
1,400,000
1,400,000
1,470,000
875,000
820,000
850,000
895,000
1,180,000
Price
Tenure
($ psf)
1,283
99
1,232 999
1,192
99
1,146 999
1,120
99
996
99
934
FH
917
FH
877
99
1,141
99
813
99
929
99
1,075
99
893
99
876
99
868
99
967
99
746
99

Back to Contents
Page | 12
Issue 110
CONTENTS
p2
FROM THE
EDITOR
New Shadow Cooling Measures from

MAS the Leverage Killer?
p8
Who the New Total Debt Servicing
Hope you like it!
Ratio Will Kill
Mr. Propwise
p13
Property Selling Tip #3: Option Fees
p14
p22
Contribute
Advertise
News.

New Shadow Cooling Measures from MAS the Leverage Killer?

By Mr. Propwise
Its been less than six months since the
Seventh Round of Property Cooling
Measures and around four months since the
hike in high-end property tax rates in Budget
2013, but the property market has not cooled.
Developer sales, in particular, are still going
strong while the resale market has been
steadily recovering since March based on
transaction volumes. Prices also stubbornly
refuse to come down the just-released URA
flash 2nd Quarter 2013 quarter-on-quarter
increase of 0.8% is an acceleration of 0.6%
compared to the previous quarter.
Back to Contents
Page | 2

So while its not officially a cooling measure,
the introduction by the Monetary Authority of
Singapore (MAS) of the Total Debt Servicing
Ratio (TSDR) framework signals the
Governments continual concern about the
exuberant state of the property market and its
incremental
(though
so
far
mostly
unsuccessful) efforts to cool it down.
Introducing the Total Debt Servicing Ratio
Effective 29 June 2013, the TSDR covers all
property loans granted by financial institutions
(FIs)
to
individuals
(including
sole
proprietorships) and will require FIs to take
into account all of the borrowers other loans
when granting property loans. The TSDR will
comprehensively cover all types of property
loans, including those used to purchase
property, those secured by property, and the
re-financing of these loans (with some
Back to Contents
exceptions).
The TSDR is defined as:
Total monthly debt obligations / Gross
monthly income
The MAS has set the TSDR threshold at
60%, with the potential of lowering it in the
future, and considers any property loan made
that is in excess of a 60% TDSR to be
imprudent, and should only be done so in
exceptional circumstances. The FI will have
to jump through some hoops (e.g. get
approval from its credit committee) to make
property loans in excess of the 60% TSDR,
which means that very few of such loans will
be made. And while no specific punishments
have been laid out for banks that breach
these rules, most will not dare to.
Page | 3

Strict methodology to calculate the TSDR
must be applied
that are used to assess the borrowers debt

servicing ability
There is also a strict methodology for

calculating the TSDR. In particular FIs must:
5. FIs will also have to obtain and verify

documentation used to compute the TSDR
1. Take into account the monthly repayment

amounts for all (property and non-property)
loans of the borrower. In the case of joint
borrowers, the TSDR is computed based on
the total monthly debt obligations and total
gross monthly income of the borrowers.
The MAS hopes that the TSDR framework

will encourage prudence both among
borrowers and the banks making these loans,
and to protect against reckless speculation on
property and the potential fallout from a
crashing of the property market. The stated
inspiration for these rules was its discovery
of uneven practices in banks credit
underwriting practices, i.e. some banks were
too aggressive when making loans.
2. Use the higher of a specified medium-term

interest rate (set at 3.5% for housing loans
and 4.5% for non-residential property loans)
or the current market interest rate for property
loans to calculate the TSDR
3. Take a discount of at least 30% on all
variable
income
(e.g.
bonuses
and
commission) and rental income
4. Take a discount on other financial assets

Back to Contents
Impact of the new TSDR framework on the

property market
Simply put, the new TSDR framework will
reduce the maximum loan quantum that most
borrowers will be able to take,
Page | 4

and in particular should affect the high end
market and buyers looking for second
properties the most.
I think most borrowers will fall into one or
more of the following categories, and thus be
affected:
1. Anyone with existing loans (e.g. car loans,
unsecured credit etc) that some banks might
have turned a blind eye to previously
2. Anyone who gets paid a bonus or has a
variable component to his income (e.g.
commissions). In particular, people working in
certain sectors (e.g. Finance and Sales)
where bonuses and/or commissions are a
large proportion of total compensation will be
affected to a greater extent.
And the rule on using a 3.5% mortgage rate
to calculate the TSDR will affect everyone.
Lets take a look at a hypothetical example

Back to Contents
Mr. Tan, 30 years old, has a monthly income

of $6,000, a car loan of $1,500 per month,
and a bonus of $24,000 that year. Before the
application of the TSDR, Mr. Tan could
conceptually borrow up to $927 thousand with
a monthly mortgage repayment of $3,200
(assuming a 1.5% interest rate, 30 year loan,
40% mortgage repayment to gross income
including bonus).
With the new TSDR framework, his gross

monthly income would now be modified to
$6,000 + ($24,000 x 70%)/12 = $7,400
(versus the $8,000 previously). His maximum
monthly mortgage payment would now be
$4,440 minus the $1,500 car loan = $2,940.
And dont forget all FIs will now have to use a
3.5% interest rate to calculate the TSDR on
residential property. Taking this into account,
the maximum loan Mr. Tan can borrow will
now drop to less than $660 thousand.
Page | 5

Thus assuming this is his first property and
Mr. Tan wants to do an 80% LTV, the most
expensive property he can buy post the
implementation of the TSDR has dropped
from around $1.16m to just over $800
thousand, or a drop of close to 30 percent.
Further tweaking of rules relating to LTV
limits to close loopholes
The MAS has also tweaked the rules relating

to the Loan-to-Value (LTV) limits on
mortgages, in an effort to close loopholes that
people have been using to circumvent these
limits (e.g. parents guaranteeing loans for
their kids to escape the Additional Buyers
Stamp Duty), especially on their second and
subsequent housing loans. Gurantors for
loans will now have to be brought in as coborrowers if the original borrowers fail the
TDSR threshold.
Back to Contents
Additionally, FIs have to use the incomeweighted average age of borrowers when
applying the rules on loan tenure for joint
borrowers. This means that some joint buyers
can no longer rely on using the combination
of an older higher-income borrower and a
younger lower-income borrower to get the
best of both worlds combination of a large
mortgage with a long tenor. For example, in
the past joint borrowers who were 45 and 35
years old and earned $120,000 and $60,000
respectively could potentially still get a 30
year loan. Now with the new rules they would
only qualify for a 23 year loan.
New rules are here to stay fewer people

can pay up for property
The MAS announcement even took pains to
emphasize that these rules are structural in
nature, which means that they are here to
Page | 6
stay for the long term and will not be removed
40% to 50%), with the implementation of the
even if there is a correction in the market
TSDR framework, the strict rules now apply to
(unlike the LTV rules, which are flexible
all FIs.
depending on market conditions).
Will the TSDR finally cause the property
The overall impact of these rules is that
market to correct? Not necessarily, but the
property buyers will be able to borrow less. In
effective dollar value of property demand has
the past stretched home buyers, sometimes
been crimped, so when the day comes that
with the help of mortgage brokers, would
forced sellers need to dump their properties,
shop around for more lenient banks to get
there will be fewer buyers able to transact on
bigger loans to buy property. While some of
the other side, so a crash could be deeper
the bigger banks are already using a more
and more painful than before.
conservative threshold for the TSDR (e.g.
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Page | 7
Who the New Total Debt Servicing Ratio Will Kill

introduced the Total Debt Servicing Ratio
(TDSR) framework for all property loans
granted by financial institutions (FIs), with
effect from 29 June 2013.
In for the kill
Computations of the TDSR affects properties
that are residential or non-residential, owned
individuals or companies, new applications or
re-financed loans, and in or outside
Singapore. Declaration and calculation of
incomes and loans are also now very
detailed.
Back to Contents
Page | 8

TDSR may be a new term, with explanations
in the FAQs of the TDSR unnecessarily long
and difficult to read, but they are only
additional sub-clauses to address the
loopholes of the Loan-to-Value (LTV) limits
announced in the previous property cooling
measures.
total income.
It is also nothing new to see the government

once again adopting a reactive intervention
approach dispatch general guidelines to the
market, then await speculators to circumvent
the loopholes, before sending more stringent
rules in for the kill.
Calculate new loan repayments based on

medium-term interest rate of 3.5% for
residential properties and 4.5% for nonresidential properties, or prevailing interest
rate, whichever is higher.
2) 30% haircut
There is an arbitrary 30% cut of all variable
and rental income, and 30% to 70% cut for
the value of eligible financial assets.
3) 3.5% or 4.5% interest rate
4) Income-weighted average age

What are the killers?
There are four major killers in the TDSR
framework:
1) 60% threshold
Total debt obligations cannot exceed 60% of
Back to Contents
If a borrower cant meet the TSDR threshold,

the guarantor will be the co-borrower.
Use income-weighted average age of
borrowers rather than younger borrowers
age to determine loan tenure.
Page | 9

Who are the targets?
residence if they exceed the TDSR threshold.
It is clear that the TDSR is meant to target

three main groups of property buyers:
3) Two generation buyers
1) Marginal Buyers
Buyers who are highly leveraged with
property or non-property debts, and buyers
whose affordability depends on low interest
rates and betting that it wont go up too fast
too soon
Buyers hoping to benefit from a longer loan

tenure by putting the loan under a younger
joint applicants name, and multiple property
buyers hoping to benefit from higher LTV with
a joint applicant buying for the first time
Message to parents: its time we stopped
loaning loans on the next generation.
2) Multiple Property Buyers
Work that kills
Buyers who are buying their second, third or

more properties with high outstanding loans,
and buyers who bought properties recently at
a high price, with low rental returns.
1) Bonus or commission-based jobs
Note: Once interest rates go up, owners of

multiple properties may not be able to
refinance or repackage to lower monthly
repayment even for the loan of their own
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With a 30% cut on variable income,

salarymen relying heavily on bonus or
commission will be at a disadvantage. For
instance, salespeople who have the majority
or all of their income based on commissions,
or senior executives who have a high
proportion of their income based on bonuses.
Page | 10

2)
Self-employed,
retirees
unemployed
and
They have to declare all their eligible liquid

assets or other assets, amortize the value
over four years, and decide whether they will
be pledged or not for four years.
3) Staff working in mortgage departments
FIs are required to compute the borrowers
TDSR with a mountain of information:
- Monthly repayments of all property and nonproperty debt obligations;
- Gross, variable and rental income after
haircut; and
- Eligible assets declared with or without
pledge.
And all declarations and supporting
documents have to be obtained from
applicants and validated with relevant parties.
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Deviations are not allowed since all

exceptions have to be granted by the FIs
board of directors and credit committee.
The 60% threshold is just a start to get FIs
familiar with the computation of TDSR. The
LTV limits are also not permanent. They are
to be reviewed over time and revised at any
time. That means all calculations are only
temporary and may be required to redo all
over again.
Imagine the tremendous amount of extra
workload added on the housing mortgage
department!
4) Housing loan applicants
Before the TDSR rule, housing loan
applicants normally take one week to obtain
an approval-in-principal. With the new
computation of TDSR, applying for a housing
loan is now a long and tedious process.
Page | 11

It is a toil to submit details and proof for all
property and non-property debt obligations,
variable income and eligible financial assets.
Should owners ask tenants to renew their
lease well in advance to ensure that the
tenancy agreement has a remaining rental
period of at least six months?
Should non-property debt loans include, apart
from car loans, renovation loans, student
loans and credit card loans, all other
purchases paid by installment like electrical
appliances, overseas holidays, spa and
beauty packages?
Going through all these hassles is the last

straw that kills!
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Page | 12
Property Selling Tip #3: Option Fees

When selling your property, do note that once
you accept the 1% Option Fee and issue the
Option to Purchase (OTP) to the Buyer, you
have to fulfill your contractual duty to reserve
the unit to be sold to this Buyer.
As for you, the Seller, you cannot undo the

commitment in reserving the unit to sell to the
contractual Buyer during this period even if a
better offer comes along while you are
waiting for the Option to be exercised.
Your Buyer has anagreed upon period of

time, usually 14 days, to pay the balance 4%
to exercise the Option.The Buyer has a
choice not to exercise the Option, in which
casethe 1% Option Fee can be forfeited by
you.

from their book.
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Page | 13

Residential
YTL Land aims to create homes for
discerning buyers
According to its vice president Joseph Yeoh,
YTL Land and Developments projects in
Singapore aim to create one-of-a-kind
homes for discerning buyers before it can
expand its portfolio and commit the best
practices to add value to the company. The
first project of YTL Land in Singapore was
launched in 2008 at Sandy Island in Sentosa
Cove, which consisted of 18 villas of 7,5009,200 square feet. The unique design of the
villa with boat berths and underground
garages was by Claudio Silvestrin, the
Back to Contents
designer for Giorgio Armanis flagship stores,

and was awarded several design awards
including FIABCI Prix d'Excellence and the
Best Architectural Design (South East Asia) at
the South East Asia Property Awards. Another
project by YTL Land is Kasara the Lake in
Sentosa Cove, comprising 13 bungalows
between 9,000 and over 14,000 sq ft. The
next project will be the luxury condominium
project at Orchard Boulevard which used to
house Westwood Apartments. YTL Land
bought the site for $435 million or $2,525 psf
ppr in 2007, and will redevelop it into a 77unit apartment.
Page | 14

Court to decide fate of Thomson View's en
bloc sale
The $590 million collective sale of Thomson
View Condominium will be decided at a weeklong hearing in the High Court starting this
week. The issue is whether the sale of the
site to a joint venture of Wee Hur
Development and Lucrum Capital was made
in good faith and should be approved.
Owners of 215 units, translated to 84 percent
of share value, agreed to the sale for $590
million. However, 17 owners of 12 units
objected to the sale for the reason of
undervaluing the site. They cited a report that
valued the site at $728 million instead. They
also objected the sale because they believed
secret payments were made by marketing
agent HSR to owners of four units so that
those owners would sign the collective sale
agreement. HSR was alleged to have paid
$548,000 to those owners and also their
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travel expenses as an incentive, all of which

amounts to bad faith. Lawyers for Thomson
View Collective Sale Comittee chairman
Philomene Ngui and other CSC members
representing the consenting owners said the
CSC did not make any inducement payments,
nor was it aware of HSR's payment
arrangement with the four units' owners,
which was confirmed by HSR.

Two pairs of GLS sites have same tender
close
Under
the
Government
Land
Sales
Programme (GLS), tenders for a pair of
private housing sites in Upper Serangoon
View will close at the same time in
September. Similarly, tenders for a pair of
executive condominium (EC) housing sites in
Choa Chu Kang Grove will also close at the
same time.
Page | 15

This move is to encourage more prudent
bidding by developers, especially that the
sites in each pair are adjacent to each other,
of similar size and unit yield. The Choa Chu
Kang Grove EC sites can generate 575 units
for one and 580 units for the other. The Upper
Serangoon View sites are expected to yield
510 private home for one and 410 units for
the other.

Thomson View case looks at buyer option
The case of Thomson View en-bloc Collective
Sales Committee (CSC) being accused of
acting in bad faith continued to take place
when the court looked at the buyer option in
which the committee gave the buyer an
option to rescind if it has to pay more than
$95 million to redevelop the land. Lawyers
representing sellers objecting the $590 million
sale argued that the CSC should not have
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given the buyer the option of cancelling within

six months of accepting the tender because
valuer Chesterton-Suntec International had
put the lease upgrading premium to
redevelop the 255-unit site at $125 million at
the close of tender on Sept 4, 2012. However,
the CSC representative said that the
objection is a red herring, and that the
consenting owners of 84 percent of the share
value are happy with the purchase because
they have been waiting for the purchase since
2008 and this offer is better than selling in the
open market. Regarding the incentive
payments made by HSR International
Realtors to the owners of four units, it was
reported that HSR, under its terms of
engagement, isn't a fiduciary, and therefore
doesn't have a duty of evenhandedness.
Hence HSRs incentive arrangement has no
impact on the sale price.

Page | 16

No loophole for parents who
properties in their childrens names
buy
It is no longer possible for parents who try to

outsmart regulators by buying properties in
their childrens names. The loophole that
used to allow homebuyers to circumvent the
original intent of lowering the loan-to-value
(LTV) ratio and imposing the additional
buyers stamp duty (ABSD) is now closed.
has announced new rules that discourage
property loans resulting in borrowers using
more than 60 percent of their monthly
incomes to service debt, and now when
granting property loans, banks must consider
all of a borrowers' outstanding debt
obligations such as loans for cars,
renovations and credit cards. "Guarantors"
will now have to be brought in as coborrowers and one of the purchasers on the
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OTP (option to purchase). Consequently, this

will discourage investors who tried to avoid
paying the ABSD and obtain a higher LTV
ratio by using their children's names to
purchase a second property.
Central Region home prices perform best
According to NUS, prices of completed
private apartments and condos (excluding
small units) in the Central Region continued
to outperform the rest of the market for the
third consecutive month. This is in
accordance with investors caring more about
older apartments in the Central Region,
where prices are looking relatively attractive.
Central Region is defined as districts 1-4
(including the financial district and Sentosa
Cove) and the traditional prime districts 9, 10
and 11.
Page | 17

NUS' Singapore Residential Price Index
(SRPI) for Central Region increased by 1.5
percent in May over April, compared to a drop
of 1.6 per cent in the SRPI for Non-Central
Region.
three-bedders, 47 four-bedders and

penthouses. It will be completed in 2016.
Strata office market could see prices rise
Strong demand of J Gateway condo
Transaction volumes for the strata office

market only crossed a third of last years
levels in the first five months of 2013, and are
unlikely to match 2012s peak. Nevertheless,
the strata office market could see prices rise
by 5 to 8 percent. Strata office buildings
account for 12 percent of the total islandwide
office stock. 91 percent of these buildings are
in the CBD and fringe areas. 1.2 million sq ft
more of strata office will be completed by
2016, and strata office buyers are reported to
enjoy future better returns on investments if
the office rents take off from 2014 onwards.
Prices of new projects are reported to be 15
Before its official launch for sale on June 29,

MCL Lands J Gateway condominium already
attracted 1,400 blank cheques from
prospective buyers at its showflat. The
development comprises of 738 units located
beside shopping malls JCube and Jem, and
its price is expected to hit a record high. It is
estimated by marketing agent Huttons that
the average prices of homes in the
development can range from $1,650 psf for a
474 sq ft one-bedder to $1,450 psf for a
1,163 sq ft four- bedder. The development
has 259 one-bedders, 245 two-bedders, 181
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six

Commercial
Page | 18

to 20 percent higher than resale buildings in
the same locations.
Park Regis sold for $250m

Park Regis Singapore has been sold to a
China buyer at $250 million; the seller is Park
Regis Investments. The asset is located
along New Market Street/Merchant Road and
comprises a 203-room hotel and a sevenstorey office block. The hotel is managed by
Australia-based StayWell Hospitality Group.
The hotel room is expected to be value at
between $859,000 and $818,000 respectively
per room, while the office space can be
valued at $67.3 million or $1,600 psf.
18th floor of Samsung Hub to be on sale
The 18th floor of Samsung Hub at Church
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Street is now up for sale, following the recent

sale of six strata units on the 17th floor at a
record psf price for the building of $3,500 psf.
The marketing agent for the sale is CBRE.
The 18th floor is owned by Buxani Group and
a group of investors advised by Capital
Management Group. Average transacted
prices at Samsung Hub are said to have risen
14 per cent in the last two years. The guide
price for the 18th storey has been set at
$43.3 million, or $3,300 psf.
Resale strata factory units decreased by
17% in Q2
The number of resale strata factory units sold
decreased by 17 percent in Q2 from the first
quarter of the year to 266 units. This followed
a 26 per cent drop in Q1 to 320 units. Resale
prices of first- and upper-storey space
Page | 19

increased by 0.3 per cent and 0.6 per cent
respectively in Q2, compared to the 7.8 per
cent and 6.5 per cent growth in the second
half of last year. Buyers were reported to be
more cautious following the introduction of
sellers stamp duty (SSD), which might have
had a dampening effect on the industrial real
estate market.
Logistics Holdings steps into property
development
Logistics Holdings will go into property
development with its first acquisition of Minton
Court for $13.4 million, which translated to
$1,010 psf. The site is located at 21 Paya
Lebar Crescent, and will be developed into a
high-end cluster housing development
comprising six to eight units. The cost of the
acquisition and redevelopment will be
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financed by the group's internal funds and

bank borrowings.
Tuan Sing
$348.9m
buys
Robinson
Point
for
Tuan Sing has acquired Robinson Point for

$348.9 million, which translated to $2,579.5
psf. This is thought to be the most expensive
office this year. Tuan Sing would acquire the
entire issued share capital of Robinson Point
Limited which legally and beneficially holds
the entire issued share capital of 39 Robinson
Road Pte Ltd. This amounts to $346.3 million
after taking into account the agreed value of
Robinson Point and adding back balances of
a related bank loan and shareholder's loans.
Tuan Sing is understood to hold the asset for
long-term share value appreciation purposes.

Page | 20

PoMo sold for $336m
PoMo, a retail and office property on Selegie
Road, was sold to EH Property and
Investments Pte Ltd, a joint venture between
BS Capital Pte Ltd and Enviro-Hub Holdings
Ltd, for $336 million, or $1,894 psf based on a
net lettable area (NLA) of 177,381 sq ft.
Previously known as Paradiz Centre, PoMo is
on a remaining lease term of 69 years.
Education provider Kaplan is expected to
move into the offices later this year. Other
vacant retail space awaits new owners to
reposition the asset.
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Page | 21
Postal
District
3
4
5
5
5
5
7
8
9
9
9
9
9
9
9
9
10
10
10
10
11
11
11
11
Project Name
RIVER PLACE
HERITAGE VIEW
DOVER PARKVIEW
MONTEREY PARK CONDOMINIUM
PARK WEST
THE BENCOOLEN
RANGOON APARTMENTS
GRANGE INFINITE
GRANGE INFINITE
GRANGE INFINITE
URBANA
MIRAGE TOWER
THE REGALIA
WATERFORD RESIDENCE
THE TOMLINSON
BALMORAL HILLS
VALLEY PARK
SHEARES VILLE
LUCIDA
NINETEEN SHELFORD ROAD
NOVENA SUITES
SHELFORD MANSIONS
Back to Contents
Area
(sqft)
786
1,270
969
1,249
1,249
872
1,184
775
2,573
2,573
2,368
3,498
1,313
1,227
1,249
1,399
2,347
1,841
1,216
1,475
624
721
3,197
3,100
Transacted
Price ($)
1,280,000
2,006,600
1,258,000
1,500,000
1,450,000
820,000
1,800,000
825,000
6,046,550
5,982,225
5,008,320
6,843,000
2,400,000
2,148,000
1,970,000
2,190,000
5,600,000
3,750,000
2,100,000
2,130,000
1,190,000
1,160,000
4,800,000
3,500,000
Price
Tenure
($ psf)
1,629
99
1,580
99
1,299
99
1,201
99
1,161 999
940
99
1,520
99
1,065
FH
2,350
FH
2,325
FH
2,115
FH
1,956
FH
1,828
FH
1,750
FH
1,578
FH
1,565 999
2,386
FH
2,037
FH
1,727 999
1,444
FH
1,906
FH
1,608
FH
1,501
FH
1,129
FH
Postal
District
12
12
12
14
14
14
14
14
15
15
15
15
15
15
15
15
15
15
15
15
16
17
17
17
Project Name
THE ARTE
THE ELYSIA
SUITES @ TOPAZ
LE CRESCENDO
EUNOS PARK
ASTON MANSIONS
THE ALCOVE
LE CRESCENDO
ONE AMBER
THE ESTA
THE MAKENA
CELESTIA
COSTA RHU
COSTA ESTE
SUNNY PALMS
THE HACIENDA
KATONG PARK TOWERS
HUA XIN COURT
HEJI GARDENS
BAYSHORE PARK
DAHLIA PARK CONDOMINIUM
WATERCREST
Area
(sqft)
1,055
1,163
1,464
1,184
1,130
1,141
1,453
3,649
570
1,604
1,410
1,636
570
1,776
926
1,044
2,196
2,185
1,970
2,443
936
1,281
1,647
1,324
Transacted
Price ($)
1,605,000
1,170,000
1,380,000
1,440,000
1,144,000
1,034,000
1,200,000
2,730,000
1,050,000
2,830,000
2,115,000
2,340,000
770,000
2,368,000
1,200,000
1,190,000
2,400,000
2,141,300
1,800,000
2,100,000
1,025,000
1,175,000
1,470,000
1,015,000
Price
Tenure
($ psf)
1,522
FH
1,006 999
943
FH
1,216
FH
1,012
FH
906
99
826
99
748
FH
1,841
FH
1,765
FH
1,500
FH
1,430
FH
1,350
FH
1,333
99
1,296
FH
1,140
FH
1,093
FH
980
99
914
FH
859
FH
1,095
99
917
FH
893
FH
767
999
Page | 22

Postal
District
17
18
18
18
19
19
19
19
20
21
21
21
21
21
22
23
23
23
23
23
25
28
Project Name
BALLOTA PARK CONDOMINIUM
LIVIA
EASTPOINT GREEN
SAVANNAH CONDOPARK
GOLDEN HEIGHTS
THE QUARTZ
PALM GROVE CONDOMINIUM
CASA RIVIERA
BOONVIEW
PANDAN VALLEY
SELANTING GREEN
SIGNATURE PARK
THE CASCADIA
PARC PALAIS
THE CENTRIS
CHANTILLY RISE
THE WARREN
HILLVIEW 128
ROSEWOOD SUITES
SERENITY PARK
Area
(sqft)
1,862
1,744
969
1,227
1,238
1,152
1,345
1,679
1,518
1,335
1,302
1,367
2,885
1,076
1,561
980
1,389
1,733
1,216
969
926
1,324
Transacted
Price ($)
1,380,000
1,610,000
888,000
1,030,000
1,500,000
1,310,000
1,510,000
1,700,000
1,730,000
1,530,000
1,400,000
1,400,000
2,938,888
1,030,000
1,400,000
1,070,000
1,450,000
1,800,000
1,150,000
910,000
788,000
1,275,000
Price
Tenure
($ psf)
741
FH
923
99
917
99
839
99
1,212
FH
1,137
99
1,122 999
1,012
FH
1,140
FH
1,146
FH
1,075
FH
1,024
FH
1,019
FH
957
FH
897
99
1,092 999
1,044 999
1,039
FH
945
99
939
999
851
99
963
FH

Back to Contents
Page | 23
Issue 109
CONTENTS
FROM THE
EDITOR
p2
My Experience with Property Agents in a Haze
p7
Property Selling Tip #2: Increase the Value

of your Property

Hope you like it!
Mr. Propwise
p8
p14
Contribute
Advertise
News.

My Experience with Property Agents in a Haze

With no better suggestion from the
government, the only way Singaporeans can
deal with the haze from Indonesia is to stay
at home, with all the doors and window
closed. Despite poor visibility, through the
glass window we could still see a property
agent showing the house of our neighbor
living opposite us. And there he was, walking
his clients to the house in the midst of a
smog, with the PSI reaching 170 and the
worst haze hitting Singapore since 1997.
The potential buyers probably couldnt see
much of the houses exterior. But the smell of
smoke might help them better visualize
holding barbecue parties at the house
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Page | 2

during weekends. I could imagine our
neighbor shutting all the doors and windows
like us, while turning on the air conditioning in
full blast.
Property agents in a haze
The scene reminded me of a similar incident
that happened months ago. Well, it was not
exactly a haze the property agents were so
confused that they behaved as if they were in
a haze.
A friend was interested to see some houses
in my estate. Being a first time buyer, the
couple came to me for advice and I promised
to join them for house viewing. One fine
Sunday I rushed home after lunch for a joint
viewing just a few houses away from mine.
When I arrived, they were already half-way
through the viewing. Up on the third storey, I
overheard the couple asking about some
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crack lines on the walls and the ceiling.

The property agent was touching the lines on
the wall, trying to figure out what they were.
The owner mentioned that they were the first
owner of the house, with a look on his face
that said we have been staying here for 10
years so what do you expect. The couple, on
the other hand, had the usual worried buyer
look on their face.
Dont know the difference between a crack
and a hairline
I immediately told them that I had seen these
fine lines appearing in my apartment before.
They were the result of prolonged exposure
to direct sunlight. That explained why the
lines were only found on the highest floor
because it was the hottest under the sun. The
quality of the paint chosen by the developer
also contributed to it.
Page | 3

I also explained the differences between a
crack and a hairline. For the latter, you could
cover it by putting a fresh coat of paint over it
after you took over the house. I added that I
just stayed a few houses away. We didnt
have those lines in the house because we
repainted the whole house with good quality
paint when we moved in five years ago.
My friend was relieved after my explanation.
The property agent was also relieved that she
was able to move on to show other parts of
the house.
But the rest of the house was dark, stuffy and
gloomy. The place looked like it was waiting
for its weekly house-keeping. The curtains at
the windows were not drawn up and the airconditioning was not on, except for a small
fan in one of the bedrooms. That made us all
sweating like hell in a fiercely hot afternoon!
Back to Contents
Dont know anything about the property

The next house was a co-broke case. The
agent murmured the address and looked at a
loss. Then she turned to me and said, Since
you are staying here, can you show us the
shortest way to this house?
It didnt help that the property agent on the
other side was also in a haze. He was not
familiar with the layout of the corner terrace.
For most of the time, we were walking around
the house free and easy.
When my friend couldnt get the size of the
land and the floor area from the two agents, I
had to whisper to them the exact numbers. It
might be more than five years back, but I had
those numbers hammered in my mind after
viewing at least twelve houses in the same
estate.
Page | 4

Before we left, my friend asked for a layout
plan of the house. Both agents said that they
didnt have one. What about the floor plan of
the whole development? Sorry, we dont have
that either. I had to whisper again behind the
agents back. Yes, I keep those at my place
and please drop by for a copy after this.
This is the first house viewing experience of

the couple. They probably think that it is
normal not getting any answer or anything
you need from a property agent. This is one
of countless times doing a house viewing for
me. I just have one question in mind: If you
are selling a two million dollar house, will you
risk showing it in a haze?
Back to Contents
Page | 5
Back to Contents
Page | 6
Property Selling Tip #2: Increase the Value of your Property
Besides benefitting from the impact of

hedging against inflation, you can increase
the value of your property via some cost
effectivemethods.
One of them is to do some simple renovation
such as patching up cracks, re-painting,
epoxy-coating, and re-lamination,instead of
major renovation,to give the property a new
look.
You can also re-install fittings such as lights
and curtains to make the place more
pleasant and saleable.
Back to Contents
If your unit has a large un-used space, you

can partition it to have an additional room to
increase the value of your private
property.Note that his can be done with
private property only.For HDB flats, do check
the HDB Home Renovation Guidelines and
obtain a renovation work permit to ensure
compliance.
from their book.
Page | 7

Residential
Rising interest in city-fringe homes cause
May sales of private homes to increase
With the rising interest in city-fringe homes,

the sales of new private homes for May
increased by 5.4 percent with a total of 1,455
units sold, compared to the 50 percent drop
of the previous month. 41.4 percent of the
sales were taken by the Rest of Central
Region (RCR). In fact, transactions within
RCR have been on the rise since Q3 of 2012.
In addition, RCR projects such as Corals at
Keppel Bay, KAP Residences, and Bartley
Ridge accounted for the top five sellers by
volume for May. It was reported that the rise
Back to Contents
in sales of RCR was caused by the high

selling price of mass-market homes in the
Outside Central Region and the narrowing
price gap between RCR and OCR homes. On
the other end, the high-end market was bleak
with only 125 out of 144 units launched, the
lowest monthly sales recorded for the region
in 2013.

Government to release land parcels for
houses and commercial use
The government will release five sites that
can yield 3,600 private and executive
condominium (EC) housing units as well as
commercial development.
Page | 8

Four of the five sites have been confirmed
under
the
Government
Land
Sales
programme list. They consist of two EC sites
and Punggol Drive and Yuan Ching Road, a
residential plot at Mount Sophia and a mixeduse commercial and residential plot at Yishun
Central 1. All four sites have been or will be
launched for sale within next week. The fifth
site, a mixed-use site at Meyappa Chettiar
Road in Potong Pasir, will be on the reserve
list next week.
ppr) for the site. This was closely followed by

Keng Hoe Developments bid of $155 million
and Greatview Development with $153.8
million. Consultants said that the price
difference between the top bid and second
and third highest bidders is a mere 1.1 per
cent and 1.8 per cent showed confidence of
developers. Other factors could be the sites
exclusive location and a possible limited
supply of vacant land parcels within the area
for development in the future.
Residential site on Faber Walk draws 18

bids at tender close
Forestville EC is to be launched
A 99-year leasehold 162,808 sq ft residential

site at Faber Walk drew 18 bids at the close
of its tender. The top bid was $156.7 million
from Aspial Corps World Class Land, or
$687.42 per square foot per plot ratio (psf
Back to Contents
The Forestville executive condominium (EC)

project will finally launch for sale this week,
six months from its intended date, due to
delay in contravening regulations. Hao Yuan
Investment is the developer for the project.
Hao Yuan had launched the 653-unit project
Page | 9

in Woodlands for balloting on Dec 28, 2012
without having obtained the necessary
approvals for adjustments made to private
enclosed spaces (PES) in some units.
Following this, Controller of Housing (COH)
had instructed Hao Yuan to stop selling the
units, hence potential buyers could only make
an expression of interest instead. COH is now
satisfied that necessary approvals for the
project have been given. Public sales will be
open next Friday.
compared to the closet rivals bid by Far East

Organization unit Astor Properties at $313.3
million, or $777.49 psf of land. CapitaLand
Singapore claimed that it plans to develop a
prestigious landed development comprising
semi-detached houses and bungalows on the
site, which will be ready for launch around Q2
of 2014. The top bid was 17 per cent higher
than the second highest bid was reported to
illustrate CapitaLand's confidence in this
market.
CapitaLand bids $366m for Coronation

Road site, topping 11 others
Roxy-Pac buys freehold apartment block

for $136mil
Capitaland's Athens Residential Development

bid higher than 11 others at the close of
tender for the 99-year leasehold site at
Coronation Road. CapitaLand bid $366
million or $908.17 per square foot of land,
Roxy-Pacific Holdings was reported to have

acquired the freehold Yi Mei Garden in
Tampines Road through a collective sale for
$136 million, hence $856 per square foot per
plot ratio (psf ppr) including a development
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Page | 10

charge of $4 million-plus. In a statutory filing
with Singapore Exchange, Roxy-Pacific said
the acquisition is subject to approval of the
collective sale by the Strate Titles Board
(STB) or the High Court. Yi Mei Garden is a
14-storey residential block of 44 apartments
and four penthouses and is located 600
meters from Kovan MRT Station. RoxyPacific plans to redevelop the site into a
condominium project with 200 units.
Eunosville up for collective sale at reserve

price of $688mil
Located opposite Eunos MRT Station,
Eunosville has a land area of 376,712 sq ft
and is planned for residential use under
Master Plan 2008. Eunosville is now up for
collective sale at a reserve price of $688
Back to Contents
million. If the sale is successful, it will boost

up this years tally of en bloc sales and works
out to $799 per square foot of potential gross
floor area including an estimated sum of $155
million payable to the state regarding the
sites lease from a balance term of around
74.5 to 99 years and intensifying the sites
use. The reserve price for Eunosville is
expected to help Eunosville set the record to
become the second largest ex-HUDC
(Housing and Urban Development Company)
estate sold collectively in absolute price terms
as well as the largest en bloc sale in 6 years.
Jones Lang LaSalle consulting group is
marketing Eunosvilles collective sale through
a tender exercise until July 24.
Page | 11

Commercial
Yomas acquisition of Yangon site delayed
due to bureaucratic discussions
Bureaucratic discussions have delayed Yoma
Strategic Holdings 80 percent acquision of a
10-acre plot of land in Yangon. The land
acquisition was reported to be US$81.28
million and it would now be extended until
Dec 31 this year. Serge Pun & Associates,
vendor of the site, was still discussing with
authorities regarding the new leasehold title
of the land before the land deal could
proceed. Yoma announced that it would
develop the former site of the Yangon railway
headquarters into a landmark hotel,
condominium and commercial development
costing between US$330 million and US$350
million. On top of that, Yoma had also signed
a non-legally binding agreement with
Back to Contents
Hongkong and Shanghai Hotels to jointly

redevelop the former Burma Railway
Company building into a Peninsula Hotel.
(Source: Business Time)
22 industrial plots to be released in
second half of 2013
The Ministry of Trade and Industry launched

the Industrial Government Land Sales (IGLS)
programme for the latter six months of the
year. Under this programme, the government
will make 22 plots of industrial land available
to moderate land prices and provide space for
industrial end-users. 19 sites will be on
confirmed list and three will be on reserve list.
The 22 sites have a total area of 22.84
hectares. 14 confirmed plots are in Tuas, 4
other confirmed plots in Woodlands and one
at Tai Seng Street. The three reserve list sites
are at Woodlands Avenue 12, Tuas Bay Close
Page | 12

and Gambas Crescent.
Red House to become

residential project in 2016
commercial-
Investment sales of property continued to

drop this quarter with the tally for the second
quarter is around $4.5 billion and the final
number expected to be $4.9-5 billion. This is
10 percent lower than that of Q1s $5.6 billion,
which was a big drop from $8.3 billion and
$9.4 billion in Q4 and Q3 last year
respectively. Q3 and Q4 of last year witness
huge transactions such as the flotation of Far
East Hospitality Trust worth $2.1 billion, the
$825 million sale of a half-stake in Nex mall in
Serangoon and DBS $1.035 billion purchase
of 30 percent stake in Marina Bay Financial
Centre Tower 3. On the other hand,
investment sales for this year is pretty active
but relatively smaller.
Red House and its five adjacent shophouses

in Katong, collectively known as the Red
House, are to be reborn as an integrated
commercial and residential project in 2016
and managed by Muis investment arm,
Warees Investments. Red House will include
a new five-storey residential block with 42
units of between 441 and 1,206 sq ft, priced
from $1,499 psf. The commercial component
of the new development will be the ground
floor units at the six conserved shophouses.
One of the units will be used as a bakery to
reserve its heritage as the place of the former
Katong Bakery and Confectionary. Warees
was reported to spend much time and effort
to improve returns from the properties
because time has taken its toll on the six
shophouses.
Q2 property investment sales drop by 10%
Back to Contents
Page | 13
Postal
District
1
1
3
4
4
5
5
5
5
8
9
9
9
9
9
9
9
9
10
10
10
10
10
10
Project Name
THE RIVERSIDE PIAZZA
QUEENS
TERESA VILLE
BOTANNIA
VARSITY PARK CONDOMINIUM
CLEMENTIWOODS CONDOMINIUM
THE INFINITI
R66 APARTMENTS
THE RITZ-CARLTON RESIDENCES SINGAPORE CAIRNHILL
HILLTOPS
RHAPSODY ON MOUNT ELIZABETH
GRANGE INFINITE
LUMA
ESTILO
ORCHARD TOWERS
TOWNHOUSE APARTMENTS
THE BOULEVARD RESIDENCE
VOLARI
ONE JERVOIS
ASTRID MEADOWS
VENTUNO BALMORAL
THE SIXTH AVENUE RESIDENCES
Back to Contents
Area
(sqft)
2,379
1,012
1,195
1,485
1,959
1,572
1,012
1,679
2,497
538
2,831
1,335
1,044
2,573
904
581
1,970
2,368
2,034
1,324
1,701
3,800
1,313
1,356
Transacted
Price ($)
9,040,200
1,280,000
1,640,000
2,450,000
2,400,000
2,150,000
1,300,000
1,980,000
2,467,036
740,000
10,800,000
4,071,750
2,500,000
5,917,900
1,928,000
1,000,000
3,000,000
2,450,000
5,000,000
3,250,000
3,080,000
6,830,000
2,250,000
2,300,000
Price
Tenure
($ psf)
3,800 99
1,265 99
1,373 99
1,649 99
1,225 FH
1,368 956
1,285 99
1,179 99
988
FH
1,375 FH
3,815 FH
3,051 FH
2,394 FH
2,300 FH
2,132 FH
1,720 FH
1,523 FH
1,035 99
2,458 FH
2,455 FH
1,811 FH
1,798 FH
1,713 FH
1,696 FH
Postal
District
10
10
10
12
12
14
15
15
15
15
15
15
16
16
17
18
18
19
19
19
19
20
22
22
Project Name
CASA JERVOIS
SPANISH VILLAGE
RIDGEWOOD
THE ARTE
ST FRANCIS COURT
THE ALCOVE
PARADISE PALMS
THE WATERSIDE
THE MAKENA
THE MAKENA
CELESTIA
CHANGI COURT
TANAMERA CREST
OASIS @ ELIAS
MELVILLE PARK
KOVAN RESIDENCES
KOVANA
RIO VISTA
CHUAN PARK
GRANDEUR 8
THE CENTRIS
THE MAYFAIR
Area
(sqft)
1,593
2,056
1,744
1,625
1,270
2,336
2,088
1,141
2,400
1,152
1,636
1,389
872
861
1,195
1,249
1,302
1,442
1,163
1,249
2,045
1,421
1,238
753
Transacted
Price ($)
2,300,000
2,638,000
2,230,000
2,030,000
1,053,000
1,550,000
3,600,000
1,650,000
3,450,000
1,600,000
2,220,000
1,410,000
1,118,000
938,000
1,280,000
1,200,000
968,000
1,820,000
1,300,000
1,120,000
1,750,000
1,490,000
1,380,000
780,000
Price
Tenure
($ psf)
1,444
FH
1,283
FH
1,279 999
1,249
FH
829
99
664
99
1,724
FH
1,446
FH
1,437
FH
1,389
FH
1,357
FH
1,015
FH
1,282
FH
1,089
99
1,071
FH
961
99
743
99
1,262
99
1,118
FH
897
99
856
99
1,049
99
1,115
99
1,035
99
Page | 14
Postal
District
23
23
23
23
23
23
23
23
23
27
28
Project Name
HILLINGTON GREEN
MONTROSA
HILLINGTON GREEN
MI CASA
THE AMSTON
HILLTOP GROVE
REGENT HEIGHTS
REGENT HEIGHTS
REGENT HEIGHTS
YISHUN SAPPHIRE
SERENITY PARK
Area
(sqft)
1,356
1,184
1,356
1,324
1,313
861
1,163
1,023
1,163
1,206
1,313
Transacted
Price ($)
1,548,888
1,330,000
1,418,000
1,320,000
1,200,000
780,000
1,046,700
908,000
1,020,000
915,000
1,260,000
Price
Tenure
($ psf)
1,142 999
1,123 999
1,046 999
997
99
914
999
906
99
900
99
888
99
877
99
759
99
959
FH

Back to Contents
Page | 15
Issue 108
CONTENTS
p2
FROM THE
EDITOR
6 Tips to Help You Deal Successfully with

Renovation Contractors
p6
Property Selling Tip #1: All Markets are Cyclical

Hope you like it!

Mr. Propwise
p7
p11
Resale Property Transactions (May 29 June 4)
Contribute
Advertise
News.

6 Tips to Help You Deal Successfully with Renovation Contractors

Are you looking to renovate a property? I
have done four major renovations and
countless fixing projects for my properties in
Singapore. Over the years, I manage to find
at least one good electrician, plumber,
carpenter, handyman, etc. But for whatever
reason perhaps its because Im unlucky, or
maybe its simply the nature of the business
I have yet to find an honest contractor or a
reliable renovation company. Yes, not even
one.
Bad experiences with contractors
What I have had are some unpleasant
experiences that you may have encountered
before if you have commissioned any
Back to Contents
Page | 2

renovation project:
1. After placing a deposit, the salespersons
prompt responses become delayed or you
get no reply.
2. The contractors are very busy and you
have to bear with the fact that they are often
late for (or absent from) any appointment
with you.
3. Timelines agreed beforehand are almost

always delayed. As clients, you are expected
to be flexible to cater to all unforeseen
circumstances.
4. You can only expect 60 to 80 percent of
what was originally agreed to be done. Be
prepared to accept materials, end products
and workmanship different from your
expectations.
Of course there are some good contractors
who are different from the above. But they
Back to Contents
are not cheap. Those who provide good

customer service, quality workmanship and
acceptable completion timeframe usually
have reasonable prices missing from their
quotations.
Tip #1 Get good recommendations
I strongly recommend talking only to
renovation companies or individuals with
referrals from a trusted source. Dont just get
anyone from the local paper, the yellow
pages, a sales leaflet or a tradeshow. It is like
going for a blind date. You never know who
will show up. You really dont want to deal
with any surprise and disappointment.
For small tasks like fixing the lights, giving

the place a new coat of paint, repairing the
leaking roof, etc., ask your trusted property
agent for recommendations. Agents arrange
handymen to do fixes for landlords and
tenants every day. I am sure that they use
Page | 3

efficient and reasonably-priced ones to get
the job done. It allows them to rent or sell the
owners properties without any delay.
whether a contractor can get the job done,

differentiate
between
sociability
and
capability.
Tip #2 Be firm with contractors
Tip #3 Be clear and upfront about timing

and the inflexibility of your budget
I agree with the advice in Margaret

Heffernans The Naked Truth: A Working
Womans Manifesto on Business and What
Really Matters:
Once youve hired a contractor and
negotiated a budget, my best advice for
you is to be tough on them. If youre not,
theyll think youre soft and a pushover.
(Contractors) will try to get away with as
much as they possibly can. If you call
them on it, theyll shape up.
Even if your contractor is a good friend or
your close relative, having a friendly
relationship doesnt automatically mean that
you can trust a person. When evaluating
Back to Contents
If you need the job finished by a certain time,

hold the contractors to that date. If you keep
an eye on their work and act as
knowledgeable as possible, you increase the
chances that the contractors will respect you
and get something done.
Tip #4 Get at least three quotations from
different companies
Compare quotes item-by-item. Before you get

back to the selected one, draft your own
listing of work items with full descriptions. For
each item, add in what you think are the
reasonable prices. If there is an obvious price
gap of a work item between two contractors,
negotiate to see whether your selected
Page | 4

contractor can match the price.
Tip #5 Draft your own payment terms
For example, 10 percent deposit after signing
the contract, 30 percent of the fee payable
when job commences, and another 50
percent after job completion. Always leave 5
to 10 percent to be paid after fixing all defects.
Allow flexibility for delay in completion.
However, do add a penalty clause for delay at
the end of the contract.
Tip #6 Put everything in writing
In every subsequent meeting with the
contractor, put everything in writing and take
detailed notes. The notes can serve as both a
proof and a reminder for both parties. It will
also come in handy next time when there is
any argument on what has been agreed.
Good and bad times
busy. It is more difficult to bargain on prices.

Give a reasonable timeframe for completion
but stick to the major deadlines.
When times are bad, dont be too happy if you
get too good a bargain. Contractors tend to
cut corners to get your business.
Be careful of commissioning a project when
the market is recovering. Costs of raw
materials and manpower will be on their way
up when your place is work-in-progress. To
make ends meet, the contractor may ask you
to top up the difference so that they can afford
to pay their suppliers and finish your job.
Worse still, some contractors may go bust
because of their under-quoting in too many
projects.
When times are good, contractors are very

Back to Contents
Page | 5
Property Selling Tip #1: All Markets are Cyclical

Investing in real estate requires patience but
the rewards are immense.Once you have
invested a sum of money as downpayment
for a property, it is possible to have two-fold
gains from both capital appreciation and
rental income.
The rental income is a good source of income
to reduce or cover your monthly mortgage
loan repayments, maintenance fees, property
tax, fire insurance and all related expenses in
this investment.
During the investment period, you are actually
accumulating equity in an asset which is a
good hedge against inflation.
However, do be aware that all markets are
Back to Contents
cyclical, and the real estate market is of no

exception.In other words, if you have to sell
your property at the wrong time, you could
lose money!
Having holding power is therefore important
to ensure that you can hold the property till it
appreciates.While there is no guarantee how
much your property will appreciate, it does
offer long-term investors an opportunity to
earn a solid return when the property
appreciates due to inflation, population or
economic growth.
from their book.
Page | 6

Residential
Afiniti Residences sold out on first day of
launch
Afiniti Residences, a 147-unit condominium
project in Iskandar Malaysia, was sold out on
its highly anticipated launch by the 50:50 joint
venture between Temasek Holdings and
Pulau Indah Ventures. 25% of the buyers
were Singaporeans, while the rest were
mainly Malaysians. Some 88 units were open
to the public and the remaining 59 units were
for developers and partners. The residential
project includes 21-storey towers with studio,
1+study, 2 and 2+study units. The selling
price per square foot ranges from S$345 to
$406, and unit sizes range from 484 square
Back to Contents
feet to 1,064 square feet. Construction for

the residences is expected to finish in 2015.
Room rates eased, occupancies remained
strong
Singapore room rates have softened for the
first four months of 2013, yet occupancies
remained strong. The Singapore Tourism
Board (STB) estimates that the Average
Room Rate fell by 2.2 percent year-on-year
while the average occupancy only decreased
by 0.3 percent. STBs figures put the number
of visitor arrivals in Singapore in the first
quarter of 2013 at 3.8 million, increasing 6.4
percent year-on-year.
Page | 7

The strong occupancy is said to help prevent
any sharp fall in revenue per available room.
Private apartment resale prices decreases
in May
Resale prices of non-landed private
apartments decreased slightly in May due to
weak transaction volumes. The NUS
Singapore Residential Property Index showed
resale prices for May easing 0.5 percent from
April, while April increased by 0.1 percent
from March. Transaction volume for May is 40
percent lower than that of last May, which
could be explained by a mismatch in
expectations between buyers and sellers. The
index decreased by 0.5 percent in the Core
Central Region and 0.4 percent in the Rest of
Central Region, while the Outside Central
Region (OCR) gained 0.3 percent. The
reason for the gain in OCR is thought to be
Back to Contents
the narrowed price gap between private

residential homes and HDB resale flats to
only 5 percent.
Pasir Ris Chalets to be used as quarantine
housing
The Home Team NS (HTNS) Pasir Ris
Chalets will be on standby to be used as
possible
quarantine
housing
by
the
government from June 17. This is due to the
the Middle East Respiratory Syndrome
Coronavirus (MERSCoV) with 55 cases
confirmed worldwide, even though no such
case has been discovered in Singapore.
Members of HTNS can continue to use to
chalets but they will have to check out within
3 hours if the chalets are needed as a
quarantine facility. HTNS members who have
booked the chalets on or after June 17 may
choose to cancel the bookings.
Page | 8

In either cases, they will be given the full
refund and vouchers of $100.
Commercial
strata units in the Orchard Road area. Lower

floors are expected to attract flagship store
developers , while upper floors are suitable
for offices. The tender ends at 3 pm on July
15.
RMGs Thong Sia units up for tender sale
Raffles Medical Group (RMG) has put the

commercial podium at Thong Sia Building up
for tender sale, after its plan of building a new
medical centre failed. The podium consists of
8 strata-titled units from level 1 to 7. The retail
and office unit sizes range from 710 square
feet to 8,826 square feet, with their price
between $2,500 and $6,000 per square foot.
Thong Sia Building is opposite the Paragon
shopping centre, and is a freehold mix-use
commercial and residential property. Jones
Lang LaSalle (JLL) agent is the exclusive
agent handling the sale. JLL claimed that the
units can be up to $35 million in price and
would provide more freehold, retail and office
The Sail @ Marina Bays 22 retail units

sold for $105m
Back to Contents
The 22 retails units at the Sail @ Marina Bay

were sold for $105 million to Wen Way
Investments
Pte
Ltd,
a
Singaporeincorporated company controlled by China
interests. This makes one square foot of the
units priced at $4,582. All 22 units are leased
mainly to food and beverage establishments.
The units were reported to previously belong
to a Singapore couple who paid $32 million
for them in 2009. Upon acquiring the units,
Wen Way Investments was said to be looking
out for more strata retail units in Singapore
Page | 9

for long-term investment, not to subdivide and
sell. Wen Way is also embarking on joint
development of commercial and industrial
property projects in Singapore. Wen Way has
purchased about $200 million of real estate in
Singapore.
Singapore REITs retain competitive edge
amidst market volatility
now is the time to buy because most Reits

show strong returns and are trading at fiveyear highs on a year-on-year basis.
Singapore Reits have average returns of
about 6%. Industrial Reits offer the highest
yields, but office Reits are considered the
most attractive segment.
Despite Hong Kong being a strong contender

in the real estate investment trust (Reit) field,
Singapore Reits still have plenty of buying
opportunities. Singapore Reits are believed to
be more active in their managing asset
portfolio
through
asset
enhancement
initiatives and portfolio renewal, according to
John Stinson, executive managing director of
Cushman and Wakefield Asia-Pacific. Even in
the middle of market volatility, Mr Stinson said
Back to Contents
Page | 10
Non-Landed Residential Resale Property Transactions for the Week of May 29 Jun 4
Postal
District
1
1
3
4
5
5
5
5
5
5
5
5
8
9
9
9
9
9
9
9
10
10
10
10
Project Name
PEOPLE'S PARK COMPLEX
RIVER PLACE
THE PEARL @ MOUNT FABER
CARABELLE
PASIR VIEW PARK
PALM MANSIONS
CITYLIGHTS
PATERSON RESIDENCE
ONE DEVONSHIRE
VISIONCREST
LEONIE HILL RESIDENCES
LEONIE STUDIO
UE SQUARE
SOMMERVILLE PARK
AVALON
ASTRID MEADOWS
ONE JERVOIS
Back to Contents
Area
(sqft)
710
1,119
797
1,819
592
1,421
1,335
1,292
1,302
1,012
2,476
1,098
678
1,313
1,410
1,109
1,141
689
1,055
3,681
624
1,830
2,745
2,368
Transacted
Price ($)
1,739,500
1,010,000
1,180,000
1,966,000
990,088
2,028,000
1,850,000
1,744,200
1,738,000
1,275,000
2,308,800
1,000,000
1,000,000
3,282,500
3,313,500
2,343,000
2,290,000
1,380,000
1,700,000
5,889,600
1,260,000
3,300,000
4,800,000
4,120,000
Price
Tenure
($ psf)
2,449
99
902
99
1,481
99
1,081
99
1,672
99
1,427
99
1,386
99
1,350
FH
1,334 956
1,260
FH
933
FH
911
FH
1,475
99
2,500
FH
2,350
FH
2,113
FH
2,007
FH
2,003
99
1,612 929
1,600
FH
2,018
FH
1,803
FH
1,749
FH
1,740
FH
Postal
District
10
10
10
10
10
10
12
12
12
12
14
14
15
15
15
15
15
15
15
15
15
15
15
16
Project Name
THE ASTON
CLIFTEN
VALLEY PARK
DORMER PARK
RIDGEWOOD
BEAVERTON COURT
D'LOTUS
DE PARADISO
PARC HAVEN
CASA IRRAWADDY
LE CRESCENDO
CANBERLIN LODGE
MEIER SUITES
THE ESTA
PEBBLE BAY
CRYSTAL RHU
CENTRINA
SANCTUARY GREEN
GALLERY 8
CAMELODGE
EASTERN LAGOON
BLU CORAL
FORTUNE SPRING
COSTA DEL SOL
Area
(sqft)
667
1,066
1,701
1,238
1,981
4,349
570
904
1,249
1,119
1,313
1,152
2,207
1,313
2,336
1,055
721
1,356
1,163
990
2,024
1,195
2,088
1,313
Transacted
Price ($)
1,125,000
1,790,000
2,710,000
1,885,000
2,500,000
3,600,000
830,000
1,200,000
1,520,000
1,260,000
1,500,000
928,000
3,480,000
1,980,000
3,200,000
1,420,000
890,888
1,600,000
1,320,000
1,040,000
2,100,000
1,220,000
1,668,000
1,680,000
Price
Tenure
($ psf)
1,686
FH
1,680
FH
1,593 999
1,523
FH
1,262 999
828
FH
1,455
FH
1,327
FH
1,217
FH
1,126
FH
1,142
FH
806
FH
1,577
FH
1,508
FH
1,370
99
1,346
FH
1,235
FH
1,180
99
1,135
FH
1,050
FH
1,038
FH
1,021
FH
799
FH
1,279
99
Page | 11

Postal
District
16
16
16
16
16
16
17
17
17
18
19
20
21
21
21
22
22
23
26
27
27
27
Project Name
BAYSHORE PARK
THE BAYSHORE
THE BAYSHORE
BAYSHORE PARK
TANAMERA CREST
CASAFINA
AZALEA PARK CONDOMINIUM
CASA PASIR RIS
THE TROPICA
THE QUARTZ
CLOVER BY THE PARK
THE CASCADIA
ASTOR GREEN
CLEMENTI PARK
THE MAYFAIR
PARK VIEW MANSION
FOREST HILLS CONDOMINIUM
YISHUN EMERALD
THE SENSORIA
THE SENSORIA
Area
(sqft)
1,292
1,432
1,238
936
861
1,464
1,453
1,507
1,130
1,518
1,130
1,572
1,216
1,528
2,497
1,227
1,335
1,345
1,163
1,399
1,152
1,270
Transacted
Price ($)
1,380,000
1,520,000
1,280,000
950,000
840,000
1,380,000
1,370,000
1,388,888
950,000
1,400,000
1,300,888
2,000,000
2,150,000
1,628,000
2,620,000
1,180,000
918,000
1,360,000
960,000
980,000
715,000
715,000
Price
Tenure
($ psf)
1,068
99
1,062
99
1,034
99
1,014
99
975
99
943
99
943
FH
922
999
841
946
922
99
1,151
99
1,273
99
1,768
FH
1,065
99
1,049
FH
962
99
688
99
1,011 999
826
99
700
99
621
FH
563
FH

Back to Contents
Page | 12
Issue 107
CONTENTS
p2
FROM THE
EDITOR
Does the End of QE Mean the End of

the Property Boom?
p9
How to Invest in Philippines Property Asias
Hope you like it!
Hottest Market
p17

Mr. Propwise
Property Renting Tip #12: When Your

Property Value has Increased
p18
p24
Resale Property Transactions (May 22 May 28)
Contribute
Advertise
News.

Does the End of QE Mean the End of the Property Boom?

Financial markets have been on a highly
jittery state since the US Federal Reserve
announced that they are starting to unwind its
mega-monetary
easing
(known
as
Quantitative Easing, or QE) soon. The day of
reckoning may not yet be at hand, but given
the increased frequency of alerts, it may be
nearer than most people think.
What are the possible impacts this could have

on the Singapore property market? Lets
examine what could trigger a potential
downturn or crash in property prices from
both global-macro and country-micro warning
signs.
Back to Contents
Page | 2

The four-letter-word: exit
Is Mr. Bernanke just testing the impact his
words would have on financial markets, or is
he seriously considering cutting back on the
Feds mega-bond purchases (the main
instrument of its QE policies) soon? With
recent positive economic news in the US, has
the Fed decided that quantitative easing has
done its job and it is time to take away the
crutch?
If the Fed is serious in its intent, the current
fuel for the international flow of capital to
investors will be sluggish at best and this may
result in a fall of asset prices, including real
estate. But this may not happen overnight,
and may take another year or two before we
see a serious price correction.
Markets are under the spell of central
bankers
Recently,
many
Back to Contents
major
global
economic
financial institutions, like The International

Monetary Fund (IMF), The Institute of
International finance (IIF), and the Bank for
International Settlements (BIS) in Basel,
Switzerland have expressed concerns about
flooding Asia and emerging markets with
cheap money, which have been driving stock
and other asset prices like property to levels
not justified by economic fundamentals.
The International Monetary Fund (IMF) said it

might be time to consider pulling back this
cheap money created by key advanced
economies, while at the same time warning
that such a move will likely have adverse
impacts and create turbulence in global
financial markets.
As IMF managing director Christine Lagarde
recently put it, The persistence of easy
monetary policy increased the flow of capital
to emerging markets, especially in Asia and
Latin America.
Page | 3

Such flows can be beneficial to an economy,
but they can also lead to financial stability
risks. Even worse than the tide coming in is
the tide going out a possible sudden
reversal of large capital flows can overwhelm
an economy.
Robert Pringle, a member of the Group of
Thirty Bankers and other financiers said, the
risks and dangers for the global economy
from mega-monetary easing by central
bankers are like hidden reefs for a ship
invisible but deadly.
Bye-bye to bull market in bonds, hello to
higher interest rates
With the reduction of monthly bond buying
from the Fed, this might be the end of a 30year rally for bonds in USA.
The Feds stimulus programs have helped
flatten the yield curve, resulting in the lowest
rates in the history of the United States today.
Back to Contents
With a decrease in bond prices, investors will

be asking for higher yields to compensate for
lower bond prices. Thus, with the resulting
higher interest rates in the US, Singapores
interest rates will also rise, which will
ultimately create a slow death for many
property investors and buyers who are overleveraged or over-committed on illusionary
low rates.
China and Eurozones problems remained

the main area of concern
As for further risks, a severe correction for
Asian markets, i.e. Singapore, might come
from news of Chinese bad debts. Negative
sentiment could overflow to Asian equities,
followed by real estate, if one or two Chinese
local governments are allowed to go under.
The IMF has recently cut its GDP projection
for China, the main engine of the global
economy to around 7.75% from 8%.
Page | 4

Even then, we might want to question if all
economic data coming out from China are
simply a black hole in disguise.
The Eurozone is also entering a softer patch
and remains the main area of concern, with
the 17-nation Eurozone being in recession for
six consecutive quarters and operating at
zero speed. Going forward, the financial
indicators are not encouraging either.
Fall
in
property
prices
beyond
governments control and require a bit of
luck
The Singapore government is engineering a
soft-landing for the housing market. The
smart question for everyone is: will these
efforts be enough to withstand possible
external shocks that have similarly brought
down the Singapore property market
historically in the past years despite previous
cooling measures?
Back to Contents
The answer is a resounding no.

In his latest blog post, National Development
Minister Khaw Boon Wan said a soft-landing
in property prices would require a bit of luck
with factors beyond the governments control,
such as the global economic conditions. One
key strategy being taken is to ramp up supply
of public flats and private residential units.
A double whammy - oversupply with lower
rental growth
Singapores residential property supply is
expected to meet its target of 13,600 HDB
flats and 18,400 private homes this year.
As of 31 May 2013, the HDB has built 6,000

flats and is confident of delivering the
remaining 7,600 units by end 2013. 3,500
private housing units have also been
completed as of April, with the remaining
14,900 expected to be completed by this
year.
Page | 5

Coming closer to 2015 to 2016, we shall be
expecting at least 200,000 units to be
completed, coming from both HDB and
private.
Moving forward, investment demand is

expected to moderate due to stricter financing
restrictions and higher stamp duties from the
governments latest round of cooling
measures.
shores, it has driven our local stock and

property market fast and furious. This has
produced the wealth effect which is
supposedly to help buoy businesses and fuel
more consumer spending. To quote Anthony
Rowley,
a
prominent
Tokyo
News
Correspondent, The jury is still out on this,
however, and meanwhile asset prices like
property are looking over-rich.
Jury still out
Cheap money has drawn a lot of money out

of key advanced economies where yields are
low, into Asia and emerging markets, where
they are higher. Once these economies start
tightening financial policy, this money will
head home and where will Asia and emerging
markets be then?
Mega-monetary easing by many key

advanced economies has been remarkably
successful, especially for our Singapore
property market over the last four years. With
so much cheap money flowing into our
Singapore, Asia and other emerging markets

may be in for a rough ride, once the tide of
money that has flowed out of US, Europe and
even Japan, flows back out of these
temporary emerging market havens.
In addition, rental growth might continue to

slow down due to the substantial number of
completions this year and lower rental
demand as a result of the governments
restrictions on foreign labour inflow.
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Page | 6

Inflation An Angel or a Devil in Sheeps
Skin?
The recent years of too much easy money
flowing into our shores has fuelled inflation to
an unprecedented level. Affordable housing
and lower cost of living to the masses should
be the priority of any government policies. In
other words, inflation if needed should benefit
all classes of society as a whole, and not
simply provide that convenient ladder for the
rich to get richer, at the expense of the poor
and middle class.
Recently, I overheard a prominent CEO of a
local property agency saying to his seminar
participants, that anytime is a good time to
buy property, and even though the property
fetches a negative or marginal yield, buyers
will compensate their losses eventually
through future capital appreciation.
Either this already rich CEO is in serious
Back to Contents
disillusion of current affairs, or hes deepening

his personal pockets at the expense of the
average mass market buyers.
This article is written to educate the mass
market buyers/investors on the potentially
serious global financial issues we are
currently facing and how it will ultimately
affect everyone financially. As long as youre
not over-leveraged in mortgage debts or overcommitting financially because of illusionary
low interest rates, and able to service your
loan regularly, an imminent downfall in your
property value will not affect you.
If I may say so, I believe a fall in asset prices
and especially property, the deflating of the
balloon filled with cheap money over the last
four years, will tremendously benefit the
financial lives of the very people who have
been most prudent, especially for the poor
and the middle class.
Page | 7

They will be able to buy affordable homes
through enough savings, or grab ample
opportunities of investing in a downturn to
grow their wealth for retirement.
Perhaps this potential outflow of cheap
money may be the start of a time where the
poor and middle class steal back some of
the wealth stolen from them by some selfish
Rich.
Its payback time if you are savvy enough.
To sceptics who think Im trying to talk the
market down with this article because I have
Back to Contents
missed opportunities, heres my reply - Ive

bought three more local properties within the
last four years, with two of them currently
sitting on good capital appreciation with
decent cash flow and one of them sold with
solid profits in my pockets.
ordinary investor.
Page | 8
How to Invest in Philippines Property Asias Hottest Market
With the high property prices in Singapore,

many investors are looking overseas to find
attractive investment opportunities. Besides
the developed markets such as the US,
London and Australia, there has also been
interest in looking at fast-growing emerging
markets such as the Philippines. In this article
well take a look at the Philippines real estate
market, the type of properties you can invest
in, what investors should look out for, and
how to invest in it.
Why invest in Philippines real estate?
Given the difficulties in
economies of the world,
Back to Contents
the
developed
Page | 9

you might wonder why foreigners would want
to purchase a property in the Philippines. The
main reasons they have started to do so at an
accelerating pace include:
1. The rapidly growing Philippines
economy sets the context for rising property
prices. The Gross Domestic Product (GDP) of
the Philippines rose by 7.8% in the first
quarter of 2013, with expectations for strong
growth for the rest of the year. From 2002 to
2012 the average annual GDP growth rate of
the Philippines was 5%.
2. Property prices in the Philippines are
one of the lowest in Asia, up to 80% lower
than Singapore for premier city centre
properties (US$2,807 per square meter
versus $16,350 in
Back to Contents
Source: Global Property Guide
Page | 10

3. Rental yields in the Philippines are one
of the highest in Asia, at around 7%, versus
just 3% in Singapore.
4. The stable and strong growth of

Business Process Outsourcing (BPO) and
Information Technology Outsourcing (ITO)
industries in the Philippines increases both
the income of the locals and also the number
of expats, which creates demand for
apartment rentals.
What foreign investors should take note of
Foreign ownership of Philippines property can
occur under the following circumstances:
Source: Global Property Guide

Back to Contents
The foreign investor purchases a

condominium unit, where not more than
40% of the building is foreign owned (this
is the most common situation)
The foreign investor has a Filipino spouse
through which they buy the property
The
foreigner
holds
a
Special
Retirement/Investment Visa
Via forming a company. When buying
Philippines property via a company,
Page | 11

a minimum of five shareholders are
required, and the Filipino shareholding
must be at least a 60%.
Foreign ownership of Philippines property
requires payment of taxes. Taxes include a
documentary tax of 1.5%, a transfer tax of
0.5%, 10% Value Added Tax (VAT), and
income tax on rent of 5.13%, along with other
fees.
in the industry, CPG has built over 22

buildings (with over 4,200 units) and 720
homes, with a 100% completion rate of all its
projects. Century Property Management Inc.
can help unit owners manage their property
for rental and re-sale.
Mass Market Commonwealth
Types of properties you can invest in

We will now take a look at specific examples
of the range of residential properties that you
can invest in, and what pricing and quality is
like. Information on the following properties
are provided courtesy of Century Properties
Group (CPG), a leading property firm in the
Philippines that offers a full-range of services
including property development, sales and
marketing, and property management. One of
the most experienced real estate companies
Back to Contents
Located in Quezon City, near to a soon-to-be

Page | 12

Ayala Mall, Commonwealth consists of eight
towers (six of which have already been
launched) of a total of 3,190 units. It has full
facilities such as a clubhouse, two basketball
courts, sky garden and a swimming pool.
Launched in 2012, 50% of the units have
already been sold and the current pricing is
from around Php94,847 per square meter
(~S$284 per square foot). The eight towers
are expected to be completed from 2015 to
2017.
Mid-to-High End Azure
With an exclusive tie up with Paris Hilton,

Azure Urban Private Residences is located in
Paranaque City just beside the SM Bicutan
Mall.
Back to Contents
Page | 13

It features a man made beach and consists of
a total of 5,002 units spread over nine towers,
eight of which are already open for sale.
Launched between 2009 and 2012, the
completion dates for the different towers are
from 2013 to 2017. Around 84% of the units
have been sold and the current pricing is from
around Php110,204 (~$306 psf).
Luxury Acqua
Back to Contents
Acqua Private Residences is located right

across the Power Plant Mall in Mandaluyong
City. This project consists of six towers (five
of which are already open for sale) and a total
of 3,061 units. Launched between 2011 to
2012, the completion dates range from 2015
to 2018. More than 80% of the units have
been sold, and the remaining units are
currently priced at from around Php156,303
psm (~S$435 psf).
Page | 14

Super Luxury Trump Tower Manila
Trump Tower (licensed from Donald Trump) in

the Philippines and in South East Asia.
Launched in 2011 and scheduled to be
completed in 2016, most of the 238 units
have already been sold, and the few
remaining units are going from Php235,836
psm (~S$656 psf).
How to buy Philippines property
Depending on whether the developer you
would like to purchase a unit from has a
representative office in Singapore, buying a
Philippines condominium can be as easy as
making a simple reservation and putting down
a small deposit as a reservation fee.
The 56-storey Trump Tower Manila is located

in Century City, Makati City, and is the first
Back to Contents
Upon putting down a reservation fee (which

will be deducted from the contract price), the
buyer will be given a Reservation Agreement,
Buyers Information Sheet and Payment
Schedule. After one to two months, the
Developer will then provide a temporary title
Page | 15

called a Contract To Sell. Upon Turn Over
(the equivalent of TOP in Singapore) the
Owner will receive the Condominium
Certificate of Title (CCT).
Typically, the Developer will also offer various

financing and payment plans. For example,
Centuries Property Group offers eight
different payment options with discounts
ranging from 2% to 20% depending on the
payment terms. Down payments can range
from 0% to all cash, while mortgage loans of
20% to 70% of the purchase price are
available from banks.
This educational article has been prepared
with the kind assistance of Century Properties
Group. If youre interested in learning more
about any of their properties or investing in
Philippines properties for both rental yield and
capital appreciation, please click here to
contact their Singapore-based
representatives.
Back to Contents
Page | 16
Property Renting Tip #12: When Your Property Value has Increased
You can consider taking an equity or term

loan on the investment property when the
value has increased while still keeping the
property.
This can be done only with private properties
when the current Market Value of the property
is higher than the current loan outstanding.
Example below for Educational Purpose only:
Market Value of Property is S$1,500,000.
Loan
outstanding
is
S$500,000.
Additional loan of $1,050,000 - $500,000 =

S$550,000 can be obtained, subject to
approval.
In the event when CPF was utilized to pay for
the property, this amount, together with the
accrual interest, has to be deducted from the
loanable amount to work out the equity loan.
from their book.
Loan can be increased to 70% of Market

Value = 0.7 x $1,500,000 = S$1,050,000.
Back to Contents
Page | 17

Residential
Jewel@Buangkok draws strong response
203 out of the 280 units at 616-unit
Jewel@Buangkok were sold. Average selling
price was about $1,150 psf which includes an
early-bird discount. 84% of buyers are
Singaporeans, many were young couples,
PMEBs (professionals, managers, executives
and businessmen) and HDB upgraders. 16%
of buyers were foreigners and PRs from
Malaysia, China, Indonesia, Taiwan, Hong
Kong, Australia, the United States and
Japan. Jewel@Buangkok, the six towers with
heights of 15-17 storeys includes one to fivebedroom apartments, dual-key units and
penthouses with a size of 463 sq ft to 1,701
sq ft. 2 out of 5 penthouses of the project
Back to Contents
were sold. Jewel@Buangkok is conveniently

located near Buangkok MRT which is close
to various shopping malls, parks and schools.
Possibility of
housing land
oversupply
for
private
Some property consultants are expecting the

Ministry of National Development (MND) to
maintain the land supply for private housing
at a similar level to the current H1 2013 slate
as the demand from the sandwich class is
stable. Others anticipate MND to cut down
the land for executive condos (ECs) by
allocating a higher proportion of total private
housing land (including ECs) on the reserve
list than in the confirmed list to create
flexibility for land sales and avoid oversupply.
Page | 18

MND may release more commercial sites in
the suburbs for its decentralization plans in
Jurong East, Paya Lebar, Woodlands and
near to the Circle Line MRT stations. Its
unlikely for the state to release any large
office sites in the CBD through the confirmed
list. There may be release of hotel sites in the
reserve list.
Construction sector crucial in co-piloting

'soft-landing': Khaw
In his blog post, Mr Khaw (MND) wrote that
ramping up the supply of HDB flats and
private residential units is a key strategy in
achieving a "soft-landing" which needs the
cooperation
from
local
construction
companies. HDB's building contractors had
completed 6,000 units as at the end of last
month and the remaining 7,600 units by the
end of the year despite the tightening of
foreign labor. 3,500 private residential units
Back to Contents
were completed by end-April this year while

the remaining 14,900 private residential units
can be completed within this year. 13,600
HDB flats and 18,400 private residential units
are scheduled to be completed this year. HDB
has also arranged for BTO projects such as
Treegrove@Woodlands to be completed in
phases, which allows buyers to receive their
keys earlier by a couple of weeks. HDB will
launch another 25,000 flats this year and
deliver between 26,000 and 29,000 flats in
each of the next two years.
8,000 Sale of Balance Flats (SBF), Buildto-Order (BTO) flats up for sale
4,900 BTO units in 8 projects across 5 nonmature estates (Choa Chu Kang, Hougang,
Jurong West, Sembawang and Woodlands)
will be offered; 3,100 SBF flats are spread
across 26 mature and non-mature estates.
For the BTO projects, Keat Hong Crest
Page | 19

will offer 682 three-room to five-room flats
priced at $140,000 -$308,000. In Hougang,
Golden Mint will offer 292 studio apartments
priced from $76,000; Hougang Crimson will
have 314 three-room and four-room units
priced at $171,000 - $268,000. In Jurong,
Spring Haven@Jurong offers 478 two-room
to four-room flats priced at $94,000 $260,000. In Sembawang, three projects
were launched namely EastBank @
Canberra, EastBrook @ Canberra and
EastWave@Canberra where total of 2,116
two-room to five-room units are up for sale at
$82,000 - $314,000. The final project in the
latest BTO exercise is Woodlands Pasture I
and II offers 1,018 three-room to five-room
flats from $133,000 to $276,000. SBF flat
prices vary from a $145,000 two-room flat in
Pasir Ris to a $760,000 executive flat in
Queenstown alongside with 3 new updates.
First, the Parenthood Priority Scheme is now
extended to married couples expecting their
Back to Contents
first child and are buying their first flat.

Secondly, HDB has doubled the quota of twoand three-room flats in non-mature estates.
Thirdly, HDB will set aside half the studio
apartments from its launches for elderly
buyers who wish to downsize from their
current home nearby or to be near their
married children.
Developers
upbeat
Condominiums (EC)
for
Executive
The healthy participation rate and the robust

competition among the top bidders signify
that developers are still upbeat towards the
EC market. The range of bids was quite tight,
with the highest bid being only 24% above the
lowest. A 99-year EC site in Anchorvale
Crescent drew a top bid of $330.65 per
square foot per plot ratio (psf ppr) from
Qingjian Realty (South Pacific) Group.
Page | 20

Another Woodlands EC site plot concluded
with a top bid of $341.21 psf ppr amongst
seven bids. Qingjian's bid was 3.2% higher
than the next highest offer of $320.45 psf ppr
placed by City Developments unit Bellevue
Properties. Kheng Leong partnered Low Keng
Huat to bid at $316.68 psf ppr. Frasers
Centrepoint's unit FCL Place and Hytech
Builders joined forces, offering $308.30 psf
ppr. The two other bids were from EL
Development ($275.75 psf ppr) and
Teambuild Land unit Ecco Development,
which offered $266.59 psf ppr for the site,
which can yield an estimated 690 units. The
$331 psf ppr top bid surpassed the $296.48
psf ppr for the Sengkang West Way site last
November by 11.5%. With Qingjian's
breakeven cost at about $650 psf, the
average selling price for the project could be
in the $730-780 psf range. It will be launching
its next EC development, the 512-unit
Ecopolitan, at Punggol Way next month. The
Back to Contents
group has two earlier EC projects - RiverParc

Residence and Waterbay - both of which are
under construction in Punggol, and fully sold.
Johor property tax hike unlikely to affect
demand from S'pore
Despite higher taxes, properties in Johor will
remain a choice investment for Singaporeans.
Demand for the 147 new homes at Afiniti
Residences in Medini Iskandar Malaysia has
not been affected. As of 31 May, the
developer had received another 1,570
purchase applications, 60% come from
Malaysians, 32% from Singaporeans, 8%
from Indonesia, South Korea and the UK.
Units at Afiniti Residences are priced at RM
850 to RM 1,000 psf or at least RM 500,000
(S$202,000) for a 484-square-feet studio
apartment. In Johor, foreigners can only buy
properties above RM 500,000 and selected
Page | 21

buyers at the balloting session must put down
a RM 30,000 deposit.
(Source: CNA)
Significant drop in sub-sales of private
residential properties
The level of speculative activities has
dropped substantially in the past few years,
sub-sales of private residential properties hit
a six-year low of 4.5% in Q12013. The
governments increase of tax and holding
period have helped bring down sub-sales
over the last 3 years. The average holding
period of private homes has increased from 6
years to 10 years. The sub-sales number is
expected to remain low, unless there is a
severe economic downturn forcing owners to
sell.
Resale non-landed private property prices in
the city area dropped 0.5 % over the previous
month, those in the city fringes declined
Back to Contents
0.4%, while resale suburban private prices

increased 0.3 %. Rental prices for non-landed
private residential in May slipped 0.6% from
April. Cash-Over-Valuation (COV) for HDB
flats dropped S$4,000 to reach S$26,000 the lowest level since July 2012. HDB resale
prices dropped 0.1% in May. 1,300 HDB
resale transactions are expected to be closed
in May, a 10% drop compared to April, 35%
lower compared to the same period last year.
Overall HDB median rents dropped by S$50
to end at S$2,350 in May 2013, after
remaining constant at S$2,400 since June
2012.
(Source: CNA)
GCB transactions making a comeback
Knight Frank is selling a freehold bungalow in
Peel Road in the Ridout Park GCB Area. It
has also sold a bungalow at 82 Meyer Road
for $30.7 million via public tender,
Page | 22

with the price working out to $1,203 psf on its
25,525 sq ft land area. Simon Cheong, the
boss of high-end developer SC Global, is
selling his home in Cornwall Gardens for
$42.5 million which works out to $2,051 psf on
the land area of 20,719 sqft. Other recent
transactions in GCB Areas include a property
in Chancery Lane, which changed hands for
$28.5 million or $1,378 psf on about 20,688
sq ft, a nearby bungalow in Bukit Tunggal
Road fetched $17.5 million or $1,664 psf on
land area of 10,516 sq ft. In April, a bungalow
in Brizay Park was sold for $24.5 million or
$1,017 psf on land area of 24,090 sq ft, a
property in Oei Tiong Ham Park traded at $20
million or $1,445 psf on land area of 13,843
sq ft. A negotiation is underway for Wing Tai
chairman Cheng Wai Keung's 84,839-sq-ft
site in Nassim Road, with prices likely
between $2,500 and $3,000 psf.
Commercial
Back to Contents
Commercial site in CBD up for sale

The land parcel of 0.8ha was made available
for sale through the Reserve List system on
19 December 2012 at minimum bidding price
of $623,730,000. The land parcel is
strategically located at Cecil Street / Telok
Ayer Street near to Tanjong Pagar MRT
Station. It is allowed to be developed up to 50
storey height, has an office zoning with a
potential GFA of 77,000 square meters.
(Source: SBR)
CBD's office vacancy rate dropped to
10.2%
Office vacancy rate fell to 10.2% in 1Q2013,
the lowest level in more than three years, due
to strong demand from occupiers. Despite the
weaker business outlook, improving market
sentiment is likely to limit the decline in office
rents throughout 2013 to less than 5%.
(Source: SBR)
Page | 23
Non-Landed Residential Resale Property Transactions for the Week of May 22 May 28
Postal
District
1
2
2
3
3
4
4
4
5
5
8
9
9
9
9
9
10
10
10
10
10
11
11
11
Project Name
THE ARRIS
INTERNATIONAL PLAZA
QUEENSWAY TOWER
LANDMARK TOWERS
GOLD COAST CONDOMINIUM
HELIOS RESIDENCES
VIDA
CAIRNHILL CREST
ASPEN HEIGHTS
UE SQUARE
AVALON
VALLEY PARK
KELLOCK LODGE
DUET
VILLA AZURA
PAVILION 11
SOLEIL @ SINARAN
Back to Contents
Area
(sqft)
1,119
990
1,033
1,539
1,292
1,636
1,658
1,184
1,830
2,153
570
3,993
861
1,130
1,324
1,098
1,765
1,701
893
1,744
1,249
969
958
1,442
Transacted
Price ($)
960,000
1,700,000
1,150,000
1,560,000
1,250,000
2,700,000
2,600,000
1,780,000
2,062,410
2,020,000
1,025,000
12,000,000
1,950,000
2,250,000
2,130,000
1,600,000
3,150,000
2,800,000
1,280,000
2,400,000
1,528,000
2,040,000
1,657,340
2,320,000
Price
Tenure
($ psf)
858
99
1,717
FH
1,113
99
1,013
FH
968
99
1,650
99
1,568
99
1,503
99
1,127
FH
938
99
1,797
FH
3,005
FH
2,264
FH
1,991
FH
1,609 999
1,457 929
1,784
FH
1,646 999
1,433
FH
1,376
FH
1,224
FH
2,106
FH
1,730
FH
1,608
99
Postal
District
11
11
11
11
12
12
12
12
13
14
14
14
14
15
15
15
15
15
16
16
16
16
17
17
Project Name
ROCHELLE AT NEWTON
AMARYLLIS VILLE
AMARYLLIS VILLE
MOUNT ROSIE GARDEN
THE CITRINE
KEMAMAN POINT
TWIN HEIGHTS
THE ARTE
8@WOODLEIGH
STARVILLE
THE HELICONIA
SIMSVILLE
ASTON MANSIONS
ONE AMBER
OLA RESIDENCES
COSTA RHU
ST PATRICK'S LOFT
LAGUNA PARK
CHANGI COURT
CHANGI GREEN
THE TANAMERA
CASA PASIR RIS
Area
(sqft)
1,356
1,259
1,690
2,573
958
861
1,421
1,873
1,292
581
1,302
1,238
1,216
1,335
990
1,012
861
1,453
1,163
1,432
1,206
1,518
570
1,335
Transacted
Price ($)
2,080,000
1,930,000
2,535,000
3,350,000
1,250,000
1,046,000
1,668,000
2,139,900
1,500,000
720,000
1,388,000
1,280,000
980,000
2,013,000
1,430,000
1,300,000
1,100,000
1,220,000
1,230,000
1,460,000
1,100,000
1,310,000
630,000
1,250,000
Price
Tenure
($ psf)
1,534
99
1,532
99
1,500
99
1,302
FH
1,305
FH
1,215
FH
1,174
FH
1,143
FH
1,161
99
1,239
FH
1,066
FH
1,034
99
806
99
1,508
FH
1,444
FH
1,285
99
1,277
FH
840
99
1,058
FH
1,020
FH
912
99
863
99
1,104 946
937
FH
Page | 24

Postal
District
18
18
18
19
19
19
20
20
20
21
21
22
22
22
22
22
23
23
26
27
27
28
Project Name
CHANGI RISE CONDOMINIUM
EASTPOINT GREEN
EASTPOINT GREEN
KOVAN MELODY
RIO VISTA
EDEN VIEW
TRESALVEO
RAFFLESIA CONDOMINIUM
BISHAN POINT
THE CASCADIA
ROYAL COURT
THE LAKESHORE
THE CENTRIS
THE CENTRIS
THE LAKESHORE
THE LAKESHORE
MERAWOODS
GUILIN VIEW
THE CALROSE
SELETARIS
YISHUN EMERALD
SERENITY PARK
Area
(sqft)
1,496
1,130
1,550
1,216
1,378
1,948
1,668
1,302
1,270
2,368
2,357
861
1,066
1,238
1,109
926
1,615
1,281
1,238
1,119
1,399
1,313
Transacted
Price ($)
1,420,000
1,020,000
1,200,000
1,275,000
1,250,000
1,570,000
2,205,000
1,480,000
1,360,000
2,450,000
2,380,000
1,093,000
1,325,000
1,525,000
1,360,000
1,080,000
1,680,000
1,200,000
1,590,000
965,000
990,000
1,229,500
Price
Tenure
($ psf)
949
99
902
99
774
99
1,048
99
907
99
806
FH
1,322
FH
1,136
99
1,071
99
1,035
FH
1,010
FH
1,269
99
1,243
99
1,232
99
1,227
99
1,167
99
1,041 999
937
99
1,284
FH
862
FH
707
99
936
FH

Back to Contents
Page | 25
Issue 105
CONTENTS
p2
p8
FROM THE
EDITOR
All Property Developers are Liars?

Property Renting Tip #10: Rental Income
from Property
p9
p11

Hope you like it!

Mr. Propwise
(May 8 May 13)
Contribute
Advertise
News.

All Property Developers are Liars?

I was reading Seth Godins book All
Marketers are Liars. Although I am a veteran
marketer myself, being a liar has never
crossed my mind. In his book, Godin talks
about the power of telling authentic stories in
a low-trust world. I know not everyone who
read my posts agree with what I say. But Im
not a property developer, real estate
marketer, property agent, conveyancing
lawyer or mortgage banker. Im not selling
you a get-rich-quick book, or a property
investment seminar. Thats why I am free to
say what I believe, without having to look at
the bottom line or worrying too much about
being liked.
Back to Contents
Page | 2

Have
you
been
brainwashed
conventional property wisdom?
by
Of course, I understand what kind of

messages can please the largest audience,
drive the most traffic and sign up the most
followers. You know the conventional
wisdoms that you always hear from people
such as:
- Buy HDB first, then upgrade to a condo,
before settling in a landed home
- Freehold is better than leasehold
- Anytime is a good time to buy
They may not be the truth. But they make up

the average Singaporeans view on properties
Marketers lie
Godin said in All Marketers are Liars,
Identify a population with a certain
worldview, frame your story in terms of
that worldview and you win.
A worldview is not what you are. Its
what you believe. Its your biases.
A worldview is not forever. Its what the
consumer believes right now.
- Properties prices will always go up in the

long-term
Thats why you see property ads on TV or in

the local papers with images completely
irrelevant to the development:
- The market cannot collapse because of

demand from foreigners
- A young family running at the beach

- A sexy lady swimming or resting by the pool
- Mickey mouse units are the trend of the

future
Back to Contents
Page | 3
Fantasy vs. reality in property ads
And because its a consumers fantasy, they

are not obliged to tell just the boring facts, but
are inclined to expand your imagination with
an artists impression in an abstract
wonderland.
Whereas the reality is:
As Godin said:
- The condo is most likely far from the beach,

with a pool too small and frequented often by
too many noisy kids.
Successful marketers are just the

providers of stories that consumers choose to
believe.
- Your unit most likely comes with a blocked

view. Its size makes it unrealistic to fit in a bar
counter.
Property ads: then vs. now
- A group of yuppies sipping wine in a bar

- Two well-dressed Caucasians overlooking
the fantastic night view
- Expatriates are most likely not interested to

move into an area inhabited mostly by locals.
I would like to end this post with a comparison

of property launch advertisements in the
Singapore papers in 1985-6 versus 2012.
But developers are selling you a dream, not a

commodity.
Back to Contents
Page | 4

Take a look and let me know what you think.
Back to Contents
Page | 5

Back to Contents
Page | 6
Back to Contents
Page | 7
Property Renting Tip #10: Rental Income from Property

(Reference: www.iras.gov.sg)
Rental
income
is
taxable
in
Singapore.However, there are expenses that
you can deduct from your rental income:
Interest on mortgage loan
Property tax
Fire insurance
Commission paid on getting a subsequent

Tenant
Cost of renewing a lease or getting a new

Tenant and
General repairs and monthly maintenance

charges paid to the Management
Committee
Back to Contents
Below are expenses that cannot be deducted

from your rental income:
Any expenses
tenancy period
Mortgage or bank loan repayment i.e. the

principal repayment
Agents commission, advertising, legal

costs for getting the firstTenant
Depreciation of furniture and fittings and
Cost of renovation, additions

alterations to the property
incurred
outside
the
and

Without Crisis. This tip and dozens more
are from their book.
Page | 8

Residential
Private home deals
foreigners share
see
slip
in
Foreigners
share
in
private
home
transactions slipped to 20.8% in April,
following the recovery to 26.7% in March
from Febs 23.3% and Jans 28%.
Conversely, Singaporeans share saw the
highest monthly share in a year an increase
from 72.5% in March to 78.3% in Apr. On a
quarterly basis, the total number of private
home caveats lodged fell 34.4% (8,725 in
4Q12 to 5,721 in 1Q13). Caveats by
Singaporean buyers declined 36.6% quarter
on quarter to 4,153 in Q1 while those by
foreigners only fell by 25.3%. It is predicted
Back to Contents
that there will be more Singaporean buyers

for 2Q and 3Q13. Knight Frank noted that
China buyers retained their no.1 position in
their share of the foreigner buyer pie (from
25% in 4Q12 to 29.6% in 1Q13).
2 housing projects ready for preview
Two north-eastern properties in Singapore
are set for preview this Vesak Day weekend.
One is a condominium project by CDL at
Jewel @ Buangkok, within walking distance
to Buangkok MRT station. The development
has 99-year leasehold 15-17-storey towers
totaling 616 units with one bedroom (463 sq
ft) to five bedrooms (1,701 sq ft), and plush
penthouses (2,067-2,540 sq ft). CDL plans to
market the development at an average
Page | 9

of $1,250 psf. The other is a Charlton 27 a
clutch of 27 landed homes (16 corner units
and 11 intermediate terraces) near Kovan
MRT station, developed by Surindipity Pte
Ltd. The smallest unit takes up 3,900 sq ft
priced at $800 psf or $3.3 mil. The largest
unit, 6,000 sq ft will cost $600 sqf or $3.9 mil.
Each unit consists of at least 5 bedrooms,
apart from a lounge/study, a private lift and
direct pool access. Both developments, with
their strategic locations, are expected to
attract strong attention from buyers.
Measures discourage
multiple properties
ownership
of
1Q13, 65% of the 16,208 Singaporeans and

PRs granted private home mortgages did not
have any outstanding home loans. On the
other hand, the proportion of second and third
loan cases of the same group has been
dropping. Among the 1,392 non-PR
foreigners granted private housing loans,
79.6% are first loan cases. Also, the 11,423
private home mortgages to Singaporeans and
PRs in 1Q13 translated to a higher 16,208
individual applicants due to the possibility of
married couples to be joint applicants for a
single loan, according to CBS.
Theres been a rise in the proportion of

private housing loan applicants without any
outstanding mortgages in 1Q13, according to
Credit Bureau (Singapore), thanks to the
January measures that discourage multiple
property ownership. CBS data shows that in
Back to Contents
Page | 10
Postal
District
3
4
5
5
8
9
9
9
9
9
9
10
10
11
12
12
12
12
12
14
14
14
15
15
15
Project Name
RIVER PLACE
HERITAGE VIEW
PASIR VIEW PARK
D'CAMBRIDGE
THE COSMOPOLITAN
THE COSMOPOLITAN
LEONIE STUDIO
WATERFORD RESIDENCE
PEACE CENTRE/MANSIONS
THE MONTANA
BEAVERTON COURT
ROCHELLE AT NEWTON
SHAN COURT
SHAN COURT
THE RIVERINE BY THE PARK
SUITES @ TOPAZ
EURO-ASIA APARTMENTS
CITY PLAZA
CITY PLAZA
GUILIN COURT
CUBIK
THE MAKENA
THE MAKENA
Back to Contents

Tenure
1,033 1,520,000 1,471
99
2,605 5,200,000 1,996
99
1,195 1,470,000 1,230
99
990 1,200,000 1,212
FH
732 1,010,000 1,380
FH
1,679 3,700,000 2,203
FH
1,399 2,950,000 2,108
FH
926 1,800,000 1,944
99
5,425 10,500,000 1,935
FH
980 1,710,000 1,746 999
2,605 1,735,000
666
99
700 1,230,000 1,758
FH
3,229 4,500,000 1,394
FH
1,507 2,433,000 1,615
99
1,916 3,600,000 1,879
FH
1,916 3,600,000 1,879
FH
980 1,600,000 1,633
FH
388
618,000
1,595
FH
1,281 1,400,000 1,093
FH
1,615 1,638,000 1,014
FH
1,615 1,600,000
991
FH
1,216 950,000
781
FH
484
750,000
1,548
FH
1,152 1,625,000 1,411
FH
926 1,280,000 1,383
FH
Postal
District
15
15
15
15
16
16
17
19
19
20
21
23
23
23
26
Project Name
COTE D'AZUR
EBONY MANSIONS
DE CASALLE
LAGOON VIEW
PARBURY HILL CONDOMINIUM
CHANGI COURT
BLUWATERS 2
KOVAN RESIDENCES
SUNGLADE
THE WINDSOR
THE JADE
GUILIN VIEW
THE LINEAR
CASTLE GREEN

Tenure
1,313 1,605,000 1,222
99
1,302 1,320,000 1,013
FH
1,184 1,190,000 1,005
FH
1,647 1,320,000
802
99
2,196 2,650,000 1,207
FH
1,389 1,450,000 1,044
FH
872
872,000
1,000 946
947 1,400,000 1,478
99
1,238 1,438,000 1,162
99
1,647 1,700,000 1,032
FH
926 1,054,000 1,139 999
1,087 1,200,000 1,104
99
840
880,000
1,048
99
1,249 1,192,000
955
999
947
905,000
955
99

Page | 11
Issue 104
CONTENTS
p2
EDITOR
The Truth About Buying a USA

Investment Property
p9
FROM THE
Property Renting Tip #8: Late Payment
from Your Tenant
p10
p16

Hope you like it!

Mr. Propwise
(May 1 May 7)
Contribute
Advertise
News.

The Truth About Buying a USA Investment Property

The success of my overseas property
investments in the last three years is due to coinvesting with trustworthy foreign partners,
whom themselves have decades of property
investment experience in that particular country
both as a local and investor. I have never
bought an overseas investment property from
property seminars or exhibitions, simply
because I dont trust salespeople with hard-sell
tactics for investment advice. This article is
written to educate you how to invest in
overseas property safely, especially for those
of you keen to invest but would like an
independent third party view.
The context is specifically for the USA real
estate market which Im familiar,
Back to Contents
Page | 2

thanks to three years of education and
experience from my USA partners, but I
believe these basic pointers should serve a
useful guide for other similarly mature real
estate markets like Australia, Western Europe
or Japan.
Can I really buy a USA or Overseas
Property with No Money Down?
You have to understand what no money
down really means. It simply means that the
property is 100% leveraged. In other words,
the purchaser has borrowed the entire
amount, including the down payment, to buy
the property. The term Seller Financing for
example is referred as financing offered by
the seller. From experience, seller financing or
no money down is not the bed of roses most
people think, especially for foreign investors.
Just because its possible does not make it
probable.
Back to Contents
The type and quality of the property offered

by sellers willingly to finance is rarely
mentioned. Quality properties in good
markets, rarely if ever, have motivated sellers.
Unfortunately, many local property gurus and
exhibitions have made buying USA or other
overseas properties with no money down
more important than buying a quality property.
A property that will make a sound, long-term
investment will be a quality property in a good
neighbourhood. Even if its 100% financed, a
bad property is a bad property
What are the different USA properties and
how much do they cost?
There are two primary segments favoured by
experienced American investors:
Residential
Single-Family Homes/Duplex/Triplex/4-plexes:
These are similar to Singapore landed
Page | 3

properties, but the key difference with
property valuation lies in the building structure
itself and not the land. Good quality SFH
investments in good middle-class markets
range
between
USD$100,000
to
USD$180,000 based on the current market.
Condominiums: Typically range between
USD$60,000 to USD$100,000 for two to three
bedroom unit.
Single-Family Homes are the stuff of which
the American Dream is made of. More than
any other type of real estate, SFH are always
in demand, and are therefore the most liquid.
Again, this will depend heavily on the type of
property and location of market.
Commercial
Multi-Family Large Apartments (100 units &
above): Depending on market location, the
price ranges from as low as USD$500,000 to
Back to Contents
USD$2 million. (And yes, just for the price of

a re-sale HDB flat or condo in Singapore, you
can boastfully tell your ignorant friends youre
also a property guru owning 100 properties
in ONE building that is!)
Large Commercial Buildings with one or
multiple business tenants: The tenants are
generally small to large-scale businesses.
Prices range from USD$1 million onwards
depending on the market.
Where should I buy or invest in overseas
markets like the USA?
Most novice property investors are told to
invest only within 30 minutes of the city or
train station when buying overseas properties
like in Singapore. This advice can be fatal! In
high priced markets, this doesnt make sense
especially when mortgage payments are
higher than your rental income.
Page | 4

Unlike Singapore, experienced local investors
in the USA or other countries, seldom, if ever,
invest a property near the city or train station
especially in matured real estate markets.
Break the 30 minute rule and buy where it
makes sense to buy!
The 5 Essential Criteria of a Good
Overseas Property Market (Example: USA)
The importance of location cant
overestimated. What is a good market?
be
1. Big City
Economic diversity ensures investment
stability. Source large cities with multiple
employment sources to ensure rental
profitability.
2. A Good Rental Market Where the
Numbers Work
A good rental market in the USA has

properties that will yield a reasonable cash
Back to Contents
flow. Note the word reasonable, and not

over-promised! Any number that seems
overly high should be questioned by any
savvy investor.
The rule-of-thumb used by USA investors for

good quality Single-Family Home is 1% rental
income a month versus the purchase price.
So, a USD$100,000 home should rent for
USD$1,000 a month.
I believe you can safely apply this rule for
most other mature overseas property
markets.
3. Not a booming Market
A booming market is NOT where you want to

invest, especially for overseas property.
Its IMPORTANT to buy in a market where
prices are only steadily going up, but not one
in which prices are escalating rapidly.
I dont just mean that prices are rising rapidly.
Page | 5

Booming also implies a kind of frantic public
mind-set, in which buyers feel they must buy
right away, before prices rise higher. It also
implies inflated prices.
4. Low Median Price
High priced markets in USA such as San
Francisco, Los Angeles, New York or even
London, Tokyo or Manila may not be good
places to buy, especially for residential
properties. First, the investment numbers
dont work: rental prices are too low in
comparison with the monthly mortgage
payments. And second, expensive properties
require jumbo loans, which means the downpayment can be as high as 25% in the USA.
A good market in the USA for quality SingleFamily Home investments will have median
prices of USD$100,000 to USD$180,000.
Back to Contents
5. Sun Belt
The Sun Belt is the fastest growing region in
the USA. With its warm weather, growing
employment and lower housing costs, it is an
attractive region for many USA investors.
Buying a property in the Sun Belt markets will
help ensure that your investment will continue
to grow over the long-term.
As foreign investors, AVOID properties that

are located in the cold northern regions of
USA, namely Michigan, Detroit, Dakota, the
Niagara Falls region etc.
Some of the best residential markets in the
Sun Belt Region include:
Phoenix, Arizona
Orlando, Florida
Tampa, Florida
Page | 6
Jacksonville, Florida
San Antonio, Texas
The Truth about Buying Cheap Overseas

Property
Bargain overseas properties such as
foreclosures or those with little or no money
down, are the classic real estate lure. Go to a
couple of local popular property seminars and
you will see Own multiple properties with
little or no money down fever in action.
Instant wealth! Overnight Success! Ordinary
people can now realise their dreams to live
the life of the rich by simply owning many
properties at just a fraction of what it takes to
own one in Singapore. You have to think
logically. If you dive into this can buy cheap
mentality for overseas property, you may find
that instead of you plucking, youre the one
whos getting plucked!
Back to Contents
Doesnt it stand to reason that if theres really

a good deal out there, the savvy locals and
professional investors will get to it long before
you do as a foreign investor? Of course they
will! So whats left over for you, the busy
foreign part-time investor? I can tell you
whats left over: the junk that no one else
wants.
Youve to be careful. Its too easy for more
experienced business people to manipulate
and sway the ordinary guys on the streets.
You think you may have gotten a great
overseas property deal. You know what the
seller thinks? What a sucker! Ive been trying
to get this white elephant off my hands for two
years!
The pros are going to beat you to the best
stuff and youll get the leftovers.
Page | 7

Invest in foreign markets with partners, not
salesmen
Invest in unfamiliar markets with foreign
partners who understand the game well and
are willing to put their money in the deal with
you. Use a little common sense and invest only
when it makes sense.
Dont simply invest overseas because you think
the grass is greener there or you believe you
can buy cheap with high returns. From my
experiences, its often the I know it all investor
who buys on hearsay and takes investment
advice from experienced salespeople, and
guess whos getting plucked instead?
By guest contributor Gerald Tay, CEO of CREI
Academy Group, who exposes widely-held
property investment myths that have proven
highly ineffective in creating wealth, and
prevent a comfortable retirement for the
ordinary investor.
Back to Contents
Page | 8
Property Renting Tip #8: Late Payment from Your Tenant

It is important to know what you can and
cannot do when your Tenant is not able to
pay the rental on time.
First of all, convince your Tenant to use GIRO
(General Interbank Recurring Order) or a
Standing Order with the bank to transfer the
rental payment to your bank account monthly.
You can indicate this requirement in the
Tenancy Agreement (TA) and explain to them
that this will free them from the hassle of
having to do rental payment transactions
every month, and they will not forget to pay
the rent when they are travelling.
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Nevertheless, if your Tenant still chooses not

to pay on time and is late for more than seven
days, you can impose a late interest charge
of up to 12% annually and are also entitled to
enter the property and terminate the tenancy.
This should be indicated in the TA and
discussed prior to entering into the contract.
from their book.
Page | 9

Residential
Luxury home markets hit by cooling
measures
According to JLL, the average capital values
for luxury homes fell by 0.6% in Q1 as a
result of cooling measures such as a higher
ABSD and a tighter LTV ratio. This is
compounded by the slower slower population
and economic growth. Similarly, a CBRE
report stated that despite a 1.8% increase in
prices of luxury homes to US$2,297 psf,
transaction volumes have fallen as a result of
the cooling measures. Looking ahead,
demand and prices are expected to remain
stable, with capital values falling by up to 5%.

Back to Contents
Developer sales of private homes fell by

50% to 1,375 units in April
Developer sales of private homes excluding
ECs fell by 50% from 2,793 units in March to
1,375 units in April as a result of the fall in
launches from 3,489 units in March to 1,158
units in April. Most of the sales were from
earlier launches and it was also noted that
developers has lowered their prices in April
when compared to March in response to
increased
competition
from
increased
completions as well as lower demand as a
result of the cooling measures. Meanwhile,
172 EC units were sold in April down from
279 units in March. There were no new EC
projects were launched in April. The resale
market also saw only 539 transactions.
Page | 10

Looking ahead, sales volume is expected to
stabilise at 1,500 to 2,000 units (excluding
ECs) each month, with a full-year total of
15,000-18,000 private homes, compared to
22,197 units in 2012.
Five 99-year plots yielding 2,700 homes
released under GLS programme for H1
2013
The first is a plot at Tampines Avenue 10
which is under the confirmed list. The site
with a maximum GFA of 515,000 sq ft that
can yield 530 units is expected to draw three
to six bidders with a top bid of $400-470 psf
ppr. It is considered less attractive than the
other four sites on the reserve list since it is
not near an MRT station, and faces
competition from nearby Q Bay Residences
and another six other nearby sites which have
yet to be launched. The tender will close at
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noon on July 2.
The second is the Toa Payoh Lorong 6 site
which has a maximum GFA of 458,000 sq ft
that can yield about 550 units is expected to
draw five to 12 bidders with a top bid of $680920 psf ppr if triggered for sale since it is near
Braddell MRT station and schools such as
CHIJ Toa Payoh and Pei Chun Primary
School in addition to being located in a
mature estate.
Next, the Siglap Road site which has a
maximum GFA of 737,000 sq ft that can yield
around 780 units is expected to attract at
least seven bids with a top bid of $550-860
psf ppr if triggered for sale given its proximity
to East Coast Park and Victoria School.
The Geylang Avenue 1 site which has a
maximum GFA of 188,000 sq ft that can yield
215 units is expected to attract seven bids
with a top bid of $570-690 psf ppr since it is
Page | 11

located near Aljunied MRT station and there
are few private developments in the area.
Lastly, the site at Prince Charles Crescent
with a maximum GFA of 564,000 sq ft that
can yield 650 homes is expected to attract
three to five bidders with a winning bid of
$850-1,070 psf ppr since it faces competition
from other GLS sites in the region which has
been recently sold as well as another
Alexandra View site available on the reserve
list.
Corals at Keppel Bay to be launched at
$1,800-3,000 psf
The first 100 units at Corals at Keppel Bay
condo, a 99-year leasehold 366 unit
condominium project, is said to be priced at
$1,800-3,000 psf. It will consist of one, two,
three and four-bedroom units (600-3,600 sq
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ft) and eight penthouses (4,800-7,800 sq ft) in

11 four-to-ten-storey blocks. The first two unit
types constitute 45% of the units in the
project. Absolute prices start from $1.31
million for a 624 sq ft one-bedroom unit to
$10.7 million for a four-bedroom unit around
3,600 sq ft.
99-year Stratum
launched for sale
condo
at
Pasir
Ris
170 units of the 380 units at the 99-year

leasehold Stratum condo project at the corner
of Elias Road and Pasir Ris Drive 3 has been
launched at $900 psf, with absolute prices
starting from $540,000 to $550,000 for a
studio unit. The five-storey condo project
consists of studio units, one to five-bedroom
apartments, penthouses with three to five
bedrooms and four-bedroom dual key units in
Page | 12

14 blocks. Sizes range from 432 sq ft for a
studio unit to 2,446 sq ft for a five-bedroom
penthouse.
Commercial
Reits not the sole reason for increasing
retail rents
While increasing retail rents have often been

attributed to Real estate investment trusts
(Reits) in the retail sector given their
ownership of many prime malls in Singapore,
market demand may be another reason for
the increasing retail rents. Furthermore, it is
not only malls owned by Reits that have seen
increased retail rents. Reits can also offer
tenants benefits in doing promotions or
upgrading facilities.
Looking ahead, the retail Reit sector may be
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affected by the fall in retail sales by 2.7% in

February despite the growth in tourist arrivals
by 9.1% in 2012 from 2011, the growth in
consumer price index by 3.5% from February
2012 and the growth in population by 2.5% in
2012. This can be seen in how the retail and
office property prices increase are not
matched by corresponding increase in rents.
Other factors that may affect the sector is
also an increase in supply of malls, and retail
problems of labour given the tighter foreign
manpower policies.
Marina Bay Financial Centre, the first

integrated development in the CBD sees
success
Being the first integrated development in the
CBD
which
offers
a
work-live-play
environment, MBFC sees success with its
Page | 13

Towers 1 and 2 being 100% pre-let upon
completion, and its Tower 3 over 85% leased.
48.9% of Tower 3s total NLA is taken up by
financial institutions, 14.9% by legal firms and
7.5% by energy and natural resources firms.
Its anchor tenant DBS which occupies 18 of
Tower 3s 46 storeys is also a stakeholder in
the tower. The residential component is also
successful with all 428 units at Marina Bay
Residences and 88% of the 221-unit Marina
Bay Suites sold. MBFCs success can be
attributed to MAS's liberalisation of the
banking sector, its waterfront location, the
179,000 sq ft retail component of MBFC as
well as its proximity to attractions such as the
Singapore Flyer, Esplanade-Theatres on the
Bay and the Marina Bay Sands integrated
resort.
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Net allocation of JTC land and facilities

falls in Q1
JTCs net allocation of prepared industrial
land (PIL) fell by 51% in Q1 2013 to 29.8ha
from 61.1 ha from Q4 2012. The fall in net PIL
allocation is accompanied a 22% fall in gross
allocation to 62.1 ha and a 77% increase in
returns to 32.3 ha. The logistic sector makes
up the biggest proportion of gross allocation
in PIL in Q1, with 30% or 18.9 ha while
manufacturing sector make up12.5 ha of land
of 39% in returns.
Meanwhile, the net allocation of ready-built
facilities (RBF) fell from -3.3 ha in Q4 2012 to3.8 ha in Q1, accompanied by a fall in
occupancy rates by 0.2% to 95.3%. Gross
allocation saw a 65% increase to 16.1 ha in
Q1 while returns rose by 52% to 19.8 ha.
Page | 14

The net allocation for the flatted factory
segment fell to -0.47 ha from 0.4 ha in Q4
2012 while the standard factory segment saw
an increase to 0.17 ha from -0.83 ha in Q4
2012.
49-room Berjaya Hotel in Duxton Road
sold at $50m
The property at Nos 80-87 Duxton Road,

which includes the 49-room Berjaya Hotel, an
office and a restaurant housed in eight
adjoining three-storey-plus-loft conservation
shophouses with a total GFA of 32,000 sq ft,
has been sold with vacant possession at $50
million. The 9,558 sq ft site has remaining
lease tenure of 74 years.
cooling measures which targeted the

residential and industrial sector. This is likely
to continue in Q2 2013, with four shophouses
with a 12,000 sq ft GFA sitting at Nos 97, 98,
99 and 100 Duxton Road on a 4,000 sq ft site
being sold for $21.6 million and 999-year
leasehold three-storey-plus attic 82 Amoy
Street with a 8,200 sq ft GFA sitting on a
2,770 sq ft site being sold for $16 million.
There has been increase in shophouse

transactions by 34% from Q4 2012 to $460.1
million in Q1 2013 as a result of the January
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Page | 15
Postal
District
1
2
3
4
4
5
5
7
8
9
9
9
9
9
9
9
10
10
10
10
10
10
10
10
Project Name
ICON
QUEENS
TERESA VILLE
THE GRANDHILL
BLUE HORIZON
BURLINGTON SQUARE
CITYLIGHTS
THE PIER AT ROBERTSON
GRANGE INFINITE
THE IMPERIAL
CAIRNHILL CREST
MACKENZIE 138
PACIFIC MANSION
THE SOLITAIRE
GALLOP GABLES
ONE JERVOIS
PALM SPRING
STUDIO 3
GLENTREES
GLENTREES
CORONATION SHOPPING PLAZA
Back to Contents
Area
(sqft)
861
904
1,184
1,335
1,959
1,841
1,163
732
560
721
678
2,368
3,918
1,733
807
1,528
1,561
1,141
990
1,862
1,302
1,345
3,412
1,109
Transacted
Price ($)
1,650,000
1,552,000
1,610,000
2,183,000
2,275,000
2,340,000
1,315,000
1,028,000
988,000
1,700,000
1,461,000
4,980,000
7,700,000
3,098,000
1,268,888
2,100,000
3,120,000
2,100,000
1,800,000
3,000,000
1,750,000
1,716,800
4,100,000
1,263,000
Price
Tenure
($ psf)
1,916
99
1,716
99
1,360
99
1,636
99
1,161
FH
1,271
FH
1,131
99
1,404
99
1,765
99
2,357
FH
2,154
FH
2,103
FH
1,965
FH
1,788
FH
1,572
FH
1,374
FH
1,999
FH
1,841
FH
1,818
FH
1,611
FH
1,344
FH
1,276 999
1,202 999
1,139
FH
Postal
District
11
11
11
11
11
13
14
15
15
15
15
15
15
16
16
16
16
17
17
18
18
18
19
19
Project Name
NEWTON SUITES
THE TREVOSE
APLETON VIEW
SKY@ELEVEN
CLYDESWOOD
GROSVENOR VIEW
ONE AMBER
TIERRA VUE
COSTA RHU
ST PATRICK'S LOFT
MARINE MEADOWS
EAST GROVE
RIVIERA RESIDENCES
BLEU @ EAST COAST
THE SUMMIT
CASAFINA
AVILA GARDENS
WATERCREST
EASTPOINT GREEN
MELVILLE PARK
ELIAS GREEN
KOVAN MELODY
CHUAN PARK
Area
(sqft)
797
1,001
1,841
1,206
5,490
1,249
1,313
1,658
1,055
1,012
1,324
1,690
1,033
1,593
1,216
1,249
1,270
1,324
1,324
1,130
969
1,518
1,292
1,173
Transacted
Price ($)
1,550,000
1,830,000
2,775,000
1,750,000
7,850,000
1,140,000
1,400,000
2,400,000
1,480,000
1,300,000
1,670,000
2,080,000
1,000,000
2,000,000
1,350,000
1,380,000
1,238,888
1,100,000
1,030,000
1,060,000
800,000
1,100,000
1,400,000
1,160,000
Price
Tenure
($ psf)
1,946
FH
1,828
FH
1,508
99
1,452
FH
1,430
FH
913
FH
1,066
FH
1,448
FH
1,403
FH
1,285
99
1,261
FH
1,231
FH
968
FH
1,255
FH
1,110
FH
1,105
FH
975
99
831
FH
778
999
938
99
826
99
725
99
1,084
99
989
99
Page | 16

Postal
District
19
19
20
21
21
21
21
22
23
23
23
23
23
26
26
28
Project Name
CHILTERN PARK
REGENTVILLE
FABER GARDEN CONDOMINIUM
THE CASCADIA
GOODLUCK GARDEN
SOUTHAVEN I
SHERWOOD TOWER
THE LAKESHORE
REGENT HEIGHTS
CASHEW PARK CONDOMINIUM
THE WARREN
NORTHVALE
HILLTOP GROVE
THE CALROSE
CASTLE GREEN
SERENITY PARK
Area
(sqft)
1,518
1,152
2,766
990
1,701
1,539
1,561
1,173
1,023
1,475
1,066
1,033
1,184
1,238
1,152
1,109
Transacted
Price ($)
1,450,000
990,000
2,920,000
1,796,000
1,880,000
1,388,888
1,083,000
1,345,000
958,000
1,380,000
958,000
880,000
948,000
1,570,000
1,000,000
1,100,000
Price
Tenure
($ psf)
955
99
860
99
1,056 FH
1,814 FH
1,105 FH
902
99
694
99
1,146 99
937
99
936
999
899
99
852
99
801
99
1,268 FH
868
99
992
FH

Back to Contents
Page | 17
Issue 103
CONTENTS
p2
EDITOR
Hidden Dangers in Mixed Development

and Mature Estates
p6
FROM THE
Property Renting Tip #7: Lease Period
p7
p11

Hope you like it!

Mr. Propwise
(April 24 April 30)
Contribute
Advertise
News.

Hidden Dangers in Mixed Development and Mature Estates

Recently I got a shocking message from my
sister: A strong fire broke out in our
hometown in the estate where my mother
stays.It was built around 15 years ago a
five-block residential development and each
block comes with 21 storeys. It is also a
mixed development with one of the blocks
housing a wet/dry market and a food court on
the lowest three storeys.
The cause and consequences of the fire

The blaze first started in a dry product store
in the wee hours of the morning at around
three a.m. (the police are still investigating
whether it was arson or an accident).
Back to Contents
Page | 2

The fire quickly spread to all the other stores.
The whole estate was soon surrounded by
dense smoke. Amid the sound of a few
explosions, 140 firefighters spent seven hours
to put out the fire. Close to 700 residents
were evacuated and eight people were
admitted to the hospital to treat for smoke
inhalation.
My mother saw the block on fire just next to
hers. She was being evacuated to an open
space where she waited with others for many
hours with no wallet, no phone and nothing
until they were finally allowed to go home
by climbing up the stairs (no one was allowed
to use the lift).
The dangers of staying in a mixed-use
development
The incident reminds me of the concerns
about staying in a mixed-use development.
Back to Contents
Similar to my mother, people choose to stay

in a mixed commercial and residential project
for the daily convenience it provides.
However, the residents also have to
compromise in terms of tranquility, security
and safety.
According to the Urban Development
Authority, mixed commercial and residential
buildings in Singapore can use up to 40
percent of its total gross floor area for
commercial activities. A common design can
be an apartment block built on top of a
shopping
mall.
Some
residential
developments may only have shops or
shophouses on the ground floor.
However, the main activities, human traffic,
security concerns, fire regulations, etc. are
very different between residential and
commercial premises.
Page | 3

Most people are not aware of the implications
behind or the hidden dangers until accidents
happen.
In the case of this terrible fire, the market was
originally built for the convenience of
residents in the estate. With affordable rent,
goods in the market can be sold at lower
prices. It soon became the most popular wet
market in the city famous for its cheapest,
freshest and biggest variety for shoppers.
Although the estate was not near to any train
station, people from different corners of the
city still flock there to buy food and
ingredients.
In order to keep stock overnight, many stores

were locked up with iron gates after closing
for security reasons. And it was the stock and
the gates that accelerated the spread of fire
in the market. Firefighters had to blow them
open one by one to put out the fire.
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Residents at the blocks also complained that

they couldnt hear the fire alarm at all. The
sound of the alarm was so weak that some
residents thought it was just another lift
malfunction.
The
management
office
explained that the fire alarm of the market
was separate from the ones at the residential
blocks. Fire alarms at the latter was not
triggered by the fire in the market.
Mature estates also have

concentration of the elderly
high
Another potential risk comes from the high

concentration of elderly in mature estates.
The estate on fire was situated in an old
district with predominantly senior residents.
During the fire evacuation, the firefighters
found many residents unable to escape on
their own due to old age or immobility. The
firefighters spent a lot of time and effort
carrying the elderly to safety.
Page | 4

The passers-by asked my mother whether it
was the home for the aged that caught fire.
Even she herself was unaware that there
were so many elderly folks staying in the
blocks. She could imagine that many seldom
leave home on normal days.
Like my mother, the elderly prefer to stay in
an old district where they are close to old
friends and everything they are familiar with.
Even when they move to new homes, they
still choose to stay in the same area. With an
aging population, the concentration of old
folks in mature districts can only increase
over time.
In Singapore, according to the Census of
Population 2010, the top five planning areas
with the highest number of elderly are Bedok,
Bukit Merah, Ang Mo Kio, Hougang and Toa
Back to Contents
Payoh.
HDBs building of 30-year-lease studio
apartments are meant to cater to the housing
needs of the aging population. Although
singles can also apply for the studios, it is
obvious that they are more popular among
the seniors, especially when the interior of the
studios is designed for the needs of the
elderly.
With the concentration of old people in studio
apartments and mature estates, is there
anything that can be done in planning to
avoid the damage caused by fire or an act of
God?
Page | 5
Property Renting Tip #7: Lease Period
It is common to have a one to two year lease
another one year at a re-negotiated rate (this
period in Singapore, typically two years if it is
elaboration can be included in the Option to
a comfortable duration for both the Landlord
Renew clause in the TA).
and Tenant.In the event you want to have a

longer lease term but are not sure if you want
to keep the same rental rate, you can have a
1+1 lease term in the Tenancy Agreement
(TA).

from their book.
The +1 lease term gives the Tenant the first

right to extend the lease of the property for
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Page | 6
Residential
Freehold Yi Mei Garden at Tampines Road
site up in collective sale market
The 78,030.38 sq ft site located at Tampines

Road near the Kovan MRT and Heartland
Mall is asking for $132-135 million or $805810 psf ppr including a$4 million development
charge. It has a 2.1 GPR and can be
potentially redeveloped into two towers with a
total GFA of 163,863.79 sq ft. The tender
closes on June 6 at 4pm.
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99-year The Siena at Farrer Road opens

for preview
The SOHO project consisting of 54 one to
three-bedroom apartments units with sizes
ranging from 538 to 980 sq ft has been
opened for preview at prices starting from
$1.28 million or $2,380 psf for a 538 sq ft unit.
Features include high ceilings, unique layout
and space planning concepts. It is located
near schools such as the Nanyang Primary
School and St Margaret's Secondary School
as well as the Botanic Gardens and MRT
station.
Page | 7

Meanwhile, seven out of the 30 released units
at the 103-year leasehold 104-unit Ferra has
been sold at prices starting from $3,160 psf
or $2.3 million for a 732 sq ft unit.There are
32 units of 732 sq ft in size, 70 units of 883893 sq ft in size and two penthouses of 2,013
sq ft. The most popular are units in the range
of 883-893 sq ft. Buyers can customise their
unit layout or choose from a selection of predesigned layouts.
99-year leasehold Woodlands EC site
draws $216m top bid
The 99-year leasehold EC sitebetween
Woodlands Avenue 5 and 6 which can
potentially yield 590 homes attracted a total of
seven bids, with the top bid of $216 million or
$341.21 psf ppr from Qingjian Realty (South
Pacific) Group. The high bid price and
number of bidders in this tender is despite the
Back to Contents
cooling measures in January, indicating

developers confidence in demand for ECs in
the region as well as developers demand for
lands to replenish or stock up their land bank.
The pent-up demand from the lack of EC
sites released since December 2012 as well
as the location of the site (being in
Woodlands which was set to be developed
into a commercial hub) might also have been
contributing factors. In addition, the amenities
in the in the region will be enhanced by the
upcoming Thomson MRT line and the
planned rapid transit system between
Woodlands and Johor Baruv. A breakeven
price of $650- $700 psf ppr is expected.
Fall in home resale volume and prices in
April
There were 572 non-landed homes resale
deals transacted in April, down from
Page | 8

614 deals in March 2013 and down by 53.9%
from the 1,240 deals in April 2012. This is
attributed to the difference in buyer and seller
price expectation. The fall in sales volume is
accompanied by a 0.4% fall in price from
March. Specifically, prices for resale homes in
the CCR and the RCR fell by 1.9% to $1,772
psf and $1,267 psf respectively while the
prices of home in the OCR saw a 1.0%
increase to $1,022 psf in April. The rise is
largely due to the pent-up demand from firsttime buyers, the low unemployment rates and
interest rates. Nevertheless, this is expected
to change when the demand is being met,
coupled with the cooling measures, increased
supply and the buyer preference for new
homes over resales.
Meanwhile, the overall rents fell by 1.0% in
April, with rents in the RCR and OCR falling
by 4.4% and 0.9% respectively and rents in
the CCR increasing by 2.1% to $4.79 psf.
Back to Contents
This lead to a fall in rental yields in both RCR

and OCR to 3.73% and 3.68% respectively
and an increase in rental yields in CCR to
3.25%. Looking ahead, rents are expected to
fall further given the increase in supply.
The COV for resale HDB flats also fell by
$1,000 to $30,000, though the median resale
prices continued rising by 1.1% to $465,000.
There were 1,271 flats resold in April,
compared to 1,355 in April.
Commercial
180-suite Pan Pacific Serviced Suites
Beach Road launched
The new property near Arab Street would
cater to the corporate sector, offering a team
of 24/7 personal assistants, complimentary
Wifi access, a meeting room facility and
shuttle services to the various business
Page | 9

districts. Sizes of the serviced apartments
range from 45 sq m for a one-bedroom unit to
66 sq m for a two-bedroom suite. Unlike most
other serviced apartments, the Pan Pacific
Serviced Suites Beach Road offers both
single-night stays (from $300/night) and
extended stays (from $8,000/month).
Zhongshan Park integrated development

completed
The 190,000 sq ft hotel-cum-commercial
development in Zhongshan Park off Balestier
area has been completed. The development
consists of a shopping mall, a commercial
tower and two independently owned hotels the three-star Days Hotel Singapore which
opened last December and thefour-star
Ramada Singapore at Zhongshan Park which
Back to Contents
will open on May 18. Combined, they will offer

nearly 800 rooms. The 50,000-sq-ft
Zhongshan Mall will feature tenants such as
FairPrice Finest, Guardian, BreadTalk and
Crystal Jade Steamboat Restaurant.
30-year Loyang Way industrial site attracts
$61.6m top bid
The222,092 sq ft site with a 2.5 GPR and

zoned for B2 development attracted a total of
six bids and a top bid of $61.6 million or $111
psf ppr from OKH Global. Despite its irregular
L-shape, it is attractive to bidders since it can
be strata-subdivided when few other sites in
the area can be, and also since there is a
limited supply of flatted factory in the region.
Page | 10
Non-Landed Residential Resale Property Transactions for the Week of Apr 24 Apr 30
Postal
District
1
2
4
4
4
4
5
5
5
5
9
9
9
9
10
10
10
10
10
10
10
10
10
10
10
Project Name
ICON
HARBOURLIGHTS
BLUE HORIZON
VISTA PARK
THE OXLEY
THE COSMOPOLITAN
RIVERGATE
THE INSPIRA
LATITUDE
NATHAN PLACE
SUI GENERIS
SIGNATURE AT LEWIS
GALLOP GABLES
THE TESSARINA
SPANISH VILLAGE
CASA JERVOIS
THE MERASAGA
BALMORAL POINT
VALLEY PARK
Back to Contents
Area
(sqft)
1,119
786
1,539
1,076
893
1,270
1,055
904
947
2,293
775
1,324
2,077
936
2,659
1,044
1,572
635
1,163
1,367
775
1,227
1,367
3,358
1,550
Transacted
Price ($)
910,000
1,420,000
3,200,000
1,920,000
1,350,000
1,900,000
1,320,000
1,100,000
947,000
2,030,000
1,690,000
2,840,000
4,257,850
1,808,000
5,902,980
2,080,000
3,020,000
1,210,000
1,930,000
2,240,000
1,270,000
1,900,000
2,109,425
4,900,000
2,180,000
Price
Tenure
($ psf)
813
99
1,807
99
2,079
99
1,784
99
1,511
FH
1,496
99
1,251
99
1,217
99
1,000
99
885
99
2,181
FH
2,145
FH
2,050
FH
1,931
FH
2,220
FH
1,992
FH
1,922
FH
1,905
FH
1,660
FH
1,639
FH
1,639
FH
1,548
FH
1,543
99
1,459
FH
1,406 999
Postal
District
10
10
11
11
11
11
11
11
11
12
12
12
12
13
14
14
15
15
15
15
15
15
16
16
17
Project Name
HOLLAND HILL PARK
ORCHARD BEL AIR
SKY@ELEVEN
SUITES @ SHREWSBURY
NEWTON 18
AMARYLLIS VILLE
THE SPRINGS
SHELFORD 23
MANDALE HEIGHTS
SCENIC HEIGHTS
NADIA MANSIONS
BALESTIER PLAZA
KIM KEAT HOUSE
PLATINUM EDGE
CASA SARINA
WING FONG MANSIONS
WATER PLACE
MELROSE VILLE
PARKWAY MANSION
11 AMBER ROAD
CHELSEA LODGE
LAGOON VIEW
COSTA DEL SOL
EAST MEADOWS
LOYANG VALLEY
Area
(sqft)
1,658
3,229
2,713
366
926
958
1,012
1,421
1,216
2,443
2,282
1,001
1,432
1,055
1,184
1,227
732
592
1,819
1,345
1,227
1,647
1,238
1,216
1,528
Transacted
Price ($)
2,200,000
4,250,000
5,150,000
673,000
1,670,000
1,480,000
1,530,000
1,950,000
1,580,000
3,050,000
2,488,000
1,050,000
1,480,000
1,395,000
1,200,000
820,000
1,120,000
880,000
2,700,000
1,750,000
1,275,000
1,400,000
1,450,000
1,280,000
960,000
Price
Tenure
($ psf)
1,327
FH
1,316
99
1,899
FH
1,839
FH
1,804
FH
1,545
99
1,512
FH
1,372
FH
1,299
FH
1,248
FH
1,090
FH
1,049
FH
1,034
FH
1,322
FH
1,013
FH
668
FH
1,530
99
1,486
FH
1,484
FH
1,301
FH
1,039
FH
850
99
1,171
99
1,052
99
628
99
Page | 11

Postal
District
18
19
19
19
19
20
20
21
21
21
21
21
21
22
22
22
23
23
23
23
25
27
28
Project Name
SAVANNAH CONDOPARK
8 EDEN GROVE
THE QUARTZ
TREASURE MANSIONS
RIO VISTA
GOLDENHILL PARK CONDOMINIUM
FAR HORIZON GARDENS
THE CASCADIA
MAPLEWOODS
GRAND REGENCY
PARC PALAIS
HIGHGATE
THE CENTRIS
CASPIAN
CASPIAN
PARK NATURA
MAYSPRINGS
CENTURY MANSIONS
REGENT HEIGHTS
CASABLANCA
GRANDE VISTA
Area
(sqft)
1,227
990
1,066
990
1,378
1,561
1,152
1,216
1,787
1,119
1,119
1,550
1,378
936
1,195
1,001
1,023
915
915
1,023
1,119
872
1,647
Transacted
Price ($)
1,200,000
1,170,000
1,220,000
1,050,000
1,280,000
2,200,000
898,000
2,133,000
2,670,000
1,378,888
1,268,888
1,680,000
1,360,000
1,050,000
1,325,000
1,100,000
1,330,000
870,000
800,000
890,000
1,030,000
770,000
1,520,000
Price
Tenure
($ psf)
978
99
1,181
FH
1,145
99
1,060
FH
929
99
1,410
FH
780
99
1,754
FH
1,494
FH
1,232
FH
1,133 999
1,084
FH
987
FH
1,121
99
1,109
99
1,099
99
1,301
FH
951
99
874
FH
870
99
920
99
883
99
923
999

Back to Contents
Page | 12
Issue 102
CONTENTS
p2
p8
FROM THE
EDITOR
Building a High Return UK Property Portfolio

Property Renting Tip #6: Who are
your Tenants?
p9
p14

Hope you like it!

Mr. Propwise
(April 17 April 23)
Contribute
Advertise
News.

Building a High Return UK Property Portfolio
With the high property prices in Singapore,

many investors are looking overseas to find
attractive investment opportunities. In this
article we interview Matthew Snedden, one of
the United Kingdoms most recognized real
estate experts and a speaker at the National
Achievers Congress 2013, on both his
failures and successes in building his
property portfolio, and how investors can
build a high return UK property portfolio with
little capital.
Back to Contents
Page | 2

Could you share your stories of how you
began your property investing journey and
achieved the success that you have
today?
changed my strategy to suit my style, I gained

the confidence to do larger scale
developments and refurbishments. I now love
what I do this is a huge driver for me!
My journey began when I became

desperately unhappy with the job that I was
doing. I had spent 12 years as a property
manager and felt that although the wages
were not bad I was no longer enjoying it.
What does your property portfolio look

like today? What steps did you take to
build up that portfolio?
I attended all the Tigrent courses and met and

became good friends with a lot of the
speakers and mentors that the company had.
This was the major breaking point for me these people helped me gain the tools
required and the education to help me
overcome the fears I had built up.
Once I had purchased my first property, I saw
this as a massive sign that I was going to do
this as big as I could. Over the years as Ive
Back to Contents
The property portfolio I have built over time is

far greater than I ever expected having. I
have bought and sold well over 100
properties in the past 10 years. Throughout
this process, I bought a number of buy to let
properties which range from two bedroom
houses to six bedroom houses, and one to
three bedroom flats as well. The majority of
my property portfolio held to today are from
the developments that I have taken on in
recent years (converting large buildings into
one, two or three bedroom flats/apartments).
Page | 3

I have found this method better for my ROI
(Return On Investment) and also for the ease
of property management.
People looking to generate wealth from
the markets are faced with a wide range of
options that include trading and investing
in property, stocks, options, futures and
foreign exchange. Which of them do you
think would be more suitable for a
beginner looking to build his or her
wealth?
The beauty of property for me is that you can
add value to it and it can be seen. I can drive
past it and know that I have turned something
that was completely run down and neglected,
into a place that somebody would love to live
in. This gives me massive satisfaction and will
continue to drive me. For this reason, a
beginner, with the right leadership, can make
a good return on their investment much more
Back to Contents
simply in property in my opinion.

What property types (e.g. residential,
commercial etc) do you recommend
investing in and why?
For a beginner, residential property is where
most investors will start and perhaps even
finish. There are a few factors I would take
into consideration with this. Firstly, most
people understand residential property
because they grew up in one. We understand
what people want to live in. Secondly, price is
a consideration. While not always the case,
commercial property is typically seen as a
more expensive and more for the
experienced investors. Thirdly, lenders look at
investors in the commercial world as more
experienced. The lending criteria are defined
differently to residential and this may
persuade the investor to stick with residential
rather than commercial.
Page | 4

I believe purchasing residential property is a
much easier and simpler strategy than
commercial. However, commercial property
has scope for higher returns.
over the others is that its population size is

large relative to its geographic size. This
allows for the market to be strong even when
the economic outlook seems bleak.
Which global property markets do you

think have the greatest profit potential for
an investor and why? Which markets do
you think investors should avoid?
What pitfalls should a global property

investor be wary of?
I personally have purchased property in both

the UK and Australia. I have gone back and
forth to both countries because I believe in
both markets. Australia still has strong capital
growth, whilst UK has very strong rental
demand and high rents, thus strong cash
flow. I believe in the UK market for people
who are looking to build a sizeable portfolio
which can generate a large cash flow base. I
look into other countries that have good cash
flow and feel that the advantage the UK has
Back to Contents
As an investor, no matter what market,

country or entity they are looking to invest in,
they need to understand the pitfalls!
An investor needs to be aware of the areas
they purchase in, types of finance available to
them for their strategy, and understanding the
demand level for either sale or rent.
Understanding the employment status of an
area will determine types of tenants or buyers
as well as the potential sale prices that can
be achieved. Looking at the average income
in the area will determine peoples ability to
get mortgages.
Page | 5

How much capital do you need to have to
build a property portfolio and what sort of
rental yield and capital gains can you get?
Could you share with us some of your
best and worst property investments?
This is a really difficult question to answer
however London typically achieves a yield of
say 4% to 8%, whereas the North of the
country typically achieves 10% plus.
Understanding the strategy is the key. My
main aim is to purchase property, then add
value to it and either sell or refinance at a
higher level to pull out a large part of the
capital I originally put in. To build a sizable
portfolio very fast, cash is required however
this can be borrowed for the short term. There
are many lenders out there who offer this and
so the main point here is to find a property
that fits well with the lenders. Once this has
been identified, lenders are more than happy
Back to Contents
to lend to you.
My worst property investments were the ones
I did based on what everybody else does,
when I ignored the rules and skills I learnt and
bought property based on a sales pitch
delivered by a new build company. I put my
money in the deal, the market dropped, and
the rents did not achieve what was sold to
me.
The best ones are the rest... buy below
market value, change the use and add value
to achieve high ROI and yields.
What are the most important lessons
youve learnt about living a happy,
successful and meaningful life?
For me, living a happy, successful, and
meaningful life means understanding who you
are, what gifts you have and how that fits in
with rest of the world.
Page | 6

Success is to me is measured by my overall
happiness. This can be measured through
wealth, ability to spend time with love ones,
and how much you are living life on your own
terms. I often think how I would do things
differently if given a second chance. This
allows me to make better decisions the first
time round.
Matthew Snedden will be going in depth on
the strategies he has used to build his UK
property portfolio with little capital and add
value to achieve high returns at the National
Achievers Congress 2013.
Back to Contents
Page | 7
Property Renting Tip #6: Who are your Tenants?

(Reference:www.ica.gov.sg,
www.mom.gov.sg)
The Immigration Act declares that it is an
offence for any person to harbor illegal
immigrants.
Do your due diligence to ascertain that your
Tenants hold a valid permit or passto let them
stay in Singapore.
The Act sets out the threefold test of due
diligence:
The defendant has required the person to
produce the original employment pass or
work permit or passport or travel document
Back to Contents
for inspection;
The defendant has checked that the
particulars of the permit or pass correspond
with the particulars of the passport or travel
document; and
Where the employer is identified, the
defendant has verified that the particulars of
the person employed correspond with the
employers record.
from their book.
Page | 8

Residential
March sees 0.9% increase in non-landed
private home prices
According to NUSs overall Singapore
Residential Price Index (SRPI), the prices of
completed
non-landed
private
homes
excluding ECs saw a 0.9% rise in March,
compared to a 1.2% fall in February. This was
largely due to the Central Region sub-index
(excluding small units), which saw a 2.2%
increase in March, after a 3.7% fall in
February. Nevertheless, there is still a large
supply of unsold units in the Central Region
(both completed and under-construction). The
Non-Central Region sub-index (excluding
Back to Contents
small units) remained stable with a slight

0.1% decline in March, after a 0.1% gain in
February.
Meanwhile, the sub-index for
prices of completed shoebox units (up to 506
sq ft) islandwide saw a 0.7% gain in March,
after a 0.9% fall in February.
Non-landed private home owners made
$107 million profit from resales
According to OrangeTee, non-landed private

home owners made a total of $107 million in
gross profit from quick resales in the period of
Q1 2012 to Q1 2013. This is attributed to the
high property prices.
Page | 9

In addition, it was also noted that only newly
completed homes that were resold after
receiving the TOP yielded good profits. There
were 348 transactions which were sold within
one quarter from which the TOP was
obtained, of which only one was unprofitable.
Each unit offered a 33% average gain in
profit, with the most profitable being units in
the OCR, which offered a 41% gain,
compared to 31% and 25% gains for the RCR
and CCR, respectively. Generally, shoebox
units (no more than 50 sq m) were less
profitable than non-shoebox units in all
regions, with an average profitability per unit
of $132,000 or 25%. The highest average
gross profitability of 43% per unit in the period
studied was in Q3 2012; this has fallen since
given the cooling measures.
30% of 99-year Eden Residences Capitol

sold
12 of the 39 residential units at Eden
Residences
Capitol,
the
residential
component of the mixed development at the
junction of Stamford and North Bridge roads,
have been sold at an average of $3,000 psf.
Unit sizes in the residential component range
from 2,100 sq ft to over 6,500 sq ft. The
project also features an 800-seat Capitol
Theatre which will offer both movies and
performing arts, Capitol Building and
Stamford
House,
a
four-level
retail
component and 157-room The Patina, Capitol
Singapore hotel. Rooms in the hotel will
range from 45 to 65 sq m.
Back to Contents
Page | 10

30 units of 103-year leasehold Ferra
launched for sale
30 units of the 104-unit 22-storey Ferra, a
luxury condominium development at 1 Leonie
Hill have been launched for sale, at prices
from $2.3 million for a 732 sq ft unit, or
$3,160 psf. Units in the development ranges
from 732 to 893 sq ft, in addition to two 2,013
sq ft penthouses which have yet to be
launched. Buyers can customise their unit
layout or choose from a selection of predesigned layouts. It is expected to draw some
interest given the smaller and therefore more
affordable units, its design and the small
number of units released.
Back to Contents
Commercial
Three 22-year industrial sites at Tuas
South St 6launched for sale
The three sites include a 0.45 ha corner plot

(Plot 1) and two other 0.30 ha plots. All three
sires have a maximum GPR of 1.0 and are
zoned for Business 2 development. They will
likely attract industrialists, given the zoning,
the short lease term and the size of the plots.
The first plot is expected to attract seven to
11 bidders with bids of $75-$90 psf ppr while
the other two plots are likely to attract five to
nine bidders with bids of $70-$80 psf ppr. The
tender for the sites will close on June 11 at
11.00am.
Page | 11

Plans for Tanjong Pagar Centre revealed
Plans for Tanjong Pagar Centre, an
integrated mixed-use development located
above the Tanjong Pagar MRT station, have
been released by its developer, GuocoLand.
It will consist of Guoco Tower, a 38-storey
Grade A office block, six levels of retail and
F&B space, a luxury business hotel, a
sheltered event space in Tanjong Pagar City
Park and residential units in a 1.7 million sq ft
Back to Contents
floor space. The offices block will offer large

floor plate and column-free spaces of 25,00029,000 sq ft while the 100,000 sq ft retail mall
will offer largely F&B outlets. There will also
be 200 one- to four-bedroom units and
penthouses in TP180, the residential
component.
Page | 12
Postal
District
1
3
3
3
3
4
5
5
7
7
9
9
9
9
9
9
9
9
10
10
10
10
10
11
Project Name
THE CLIFT
DOMAIN 21
RIVER PLACE
PEARL BANK APARTMENT
PEARL BANK APARTMENT
THE COAST AT SENTOSA COVE
HERITAGE VIEW
BUONA VISTA GARDENS
THE BENCOOLEN
THE PLAZA
PATERSON SUITES
GRANGE INFINITE
GRANGE INFINITE
THE OXLEY
THE COSMOPOLITAN
MAKEWAY VIEW
THE IMPERIAL
WILKIE STUDIO
ARDMORE PARK
MILL POINT
MILL POINT
THE LEVELZ
DUCHESS CREST
STRATA
Back to Contents
Area
(sqft)
807
560
1,033
1,755
1,324
2,024
1,195
1,572
958
807
2,196
2,573
2,702
549
1,324
1,453
2,024
1,227
2,885
527
538
786
4,295
840
Transacted
Price ($)
2,119,000
910,000
1,480,000
1,535,000
1,100,000
3,620,000
1,450,000
1,505,000
1,456,160
1,080,000
5,700,000
6,200,000
6,388,000
1,190,000
2,750,000
2,860,000
3,870,000
1,570,000
8,398,000
1,010,000
1,010,000
1,336,200
4,750,000
1,400,000
Price
Tenure
($ psf)
2,625
99
1,626
99
1,432
99
875
99
831
99
1,789
99
1,214
99
958
FH
1,520
99
1,338
99
2,596
FH
2,410
FH
2,364
FH
2,168
FH
2,077
FH
1,968
FH
1,912
FH
1,279
FH
2,911
FH
1,915 999
1,877 999
1,700
FH
1,106
99
1,667
FH
Postal
District
11
12
12
14
14
14
14
15
15
15
15
15
15
15
16
16
16
16
16
17
17
19
19
19
Project Name
THE LINC
GALLERY FIFTEEN
OLEANDER TOWERS
THE WATERINA
ESCADA VIEW
CASA SARINA
SIMS RESIDENCES
THE SEA VIEW
AMBER RESIDENCES
ESTIQUE
THE MAKENA
THE WATERSIDE
HAIG COURT
THE MEDLEY
THE BAYSHORE
BAYSHORE PARK
EAST MEADOWS
THE CLEARWATER
TANAMERA CREST
DAHLIA PARK CONDOMINIUM
SUNGLADE
CHILTERN PARK
HILLSIDE MANSIONS
Area
(sqft)
1,281
1,442
1,464
1,302
775
1,109
1,356
1,518
1,249
603
1,518
2,142
1,550
1,302
1,259
3,477
1,195
1,378
1,647
1,281
1,679
1,141
915
1,141
Transacted
Price ($)
2,050,000
1,620,000
1,488,000
1,750,000
800,000
1,100,000
1,100,000
2,428,800
1,908,888
888,000
2,200,000
3,100,000
2,030,000
1,470,000
1,249,000
3,408,000
1,168,000
1,310,000
1,400,000
1,180,000
1,500,000
1,370,000
1,050,000
1,150,000
Price
Tenure
($ psf)
1,600
FH
1,123
FH
1,016
99
1,344
FH
1,032
FH
992
FH
811
99
1,600
FH
1,529
FH
1,473
FH
1,450
FH
1,447
FH
1,310
FH
1,129
FH
992
99
980
99
978
99
951
99
850
99
921
FH
893
999
1,201
99
1,148
99
1,008
FH
Page | 13

Postal
District
19
19
20
20
21
21
21
21
21
21
21
21
21
22
23
23
23
25
26
27
28
28
Project Name
CENTRAL VIEW
CHARLTON CORNER
LAKEVIEW ESTATE
JARDIN
GARDENVISTA
GARDENVISTA
SUMMERHILL
SIGNATURE PARK
SOUTHAVEN II
BUKIT REGENCY
HIGH OAK CONDOMINIUM
SHERWOOD TOWER
IVORY HEIGHTS
MERAWOODS
REGENT GROVE
THE WARREN
CASABLANCA
CASTLE GREEN
YISHUN EMERALD
GRANDE VISTA
GRANDE VISTA
Area
(sqft)
1,216
1,044
1,582
1,615
1,701
872
872
1,604
1,399
818
1,055
1,658
1,421
1,668
1,345
1,163
1,195
1,119
1,173
1,023
1,238
1,238
Transacted
Price ($)
1,095,000
910,000
1,700,000
1,396,000
3,040,000
1,100,000
1,030,000
1,882,000
1,520,000
870,000
1,050,000
1,590,000
1,198,000
1,200,000
1,330,000
935,000
948,000
980,000
980,000
835,000
1,218,000
1,180,000
Price
Tenure
($ psf)
900
99
872
FH
1,074
99
865
99
1,787
FH
1,262
99
1,181
99
1,173
FH
1,086
FH
1,063 999
995
FH
959
99
843
99
719
100
988
999
804
99
793
99
875
99
835
99
817
99
984
999
953
999

Back to Contents
Page | 14
Issue 101
CONTENTS
p2
EDITOR
The Difference Between How Successful

and Average Property Investors Think
p8
FROM THE
Property Renting Tip #5: Rental Rate
p9
p14

Hope you like it!

Mr. Propwise
(April 10 April 16)
Contribute
Advertise
News.

The Difference Between How Successful and Average

Property Investors Think
By guest contributor Gerald Tay
I recently ran across this book titled How Rich
People Think by Steve Siebold. I was
immediately struck by the differences
between the thoughts and actions of the
World Class investor and the Middle Class
investor.
In the book, Steve listed 21 ways that the
wealthy think differently from average people,
categorizing them as World Class and
Middle Class thinkers. In this article, I will
call the two investor groups the 99% and the
1%.
Back to Contents
Page | 2

Ill list nine of his 21 Rules here (you can read
his book and educate yourself on the rest)
and briefly explain the similarities on some of
the rules in the arena of property investment.
1. The 99% have a lottery mentality. The

1% have an action mentality.
I hear the 99% say all the time: Prices will
sure go up. If I can simply invest on some
expert opinions Ill be rich. If my big break
would come in. If I could just win the
lottery. Until they realize that lottery is a
tax on people who don't know how to do
math, they'll never get it.
The 1% dont expect anything to be given to
them. If they want it, they go and get it
themselves. The 99% stupidly play the lottery,
buy stupid investments on hopes of capital
gains, make stupid investment decisions
sitting in front of the TV, and make stupid
excuses.
Back to Contents
2. The 99% think the road to riches is

paved with formal education. The 1%
believes in acquiring specific knowledge.
Universities are leftist indoctrination facilities.
And they are full of deluded morons. You
must educate yourself financially. You can
learn anything you want to learn about on
money and investments. Almost everything is
on the internet, for free. If you want to learn
about it the only thing stopping you is you. I
will say it again: Everything you learn in
school might be less useful if you want to be
an entrepreneur/investor. Its up to YOU to
learn your craft.
3. The 99% would rather be entertained

than educated. The 1% would rather be
educated than entertained.
Television, magazines, celebrity websites,
sports pages the mark of the average. If
you cant learn or earn from it, burn it.
Page | 3

I spend my free time learning about global
economics, world history, the history of
money and government, doing intense
property diligence, doing cash flow analysis,
etc.
Rather than looking forward to weekends,
playing Xbox and getting drunk, spend some
hours investing in yourself. Join a course,
read marketing or finance books, learn to
invest, think of how you can provide others
with value.
4. The 99% plays not to lose. The 1%
swings for the fences.
You hear about property cooling measures

and hot media reports. You often hear people
rushing to queue up at property showrooms
and seminars to buy that property because
everyone is doing so and worrying that the
Back to Contents
price will go up further, and not doing so will

make one look like a fool.
Whos really the fool? Investing in property
because the price wont go down or
everyone is buying are such crappy
reasons. Unless of course, thats your only
reason? Then all the best in your investment.
5. The 99% believe the markets are driven
by logic and strategy. The 1% knows
they're driven by emotion and greed.
Personally, Ive no time for people who
constantly talk about logic and strategy. I
often hear these people say, Price will go up
because of limited land and MRT. Tell me
about
your
strategic
buy/hold/sell
recommendations. Tell me specifically or a
range, where prices will be in the next four
years.
Page | 4

I like logic. I deal with things logically. But,
logic is only one part of the picture. If you look
at everything logically, you arent looking at
the big picture and Ill tell you why. Most
people in the world do not think logically, they
think emotionally. When you speak to them
logically, you are not getting through to them.
But these Im so logical types always
assume that everyone else also thinks
logically.
Logical thinking is only half the puzzle.
6. The 99% live beyond their means. The
1% live below theirs.
Why do the 99% always complain theyve no

money to invest?
One of the habits that are common between
all wealthy people is that they live below their
means. This means that they buy a small car
when then can afford a medium sized car,
Back to Contents
then buy a medium sized car when they can

afford a big car. They buy a big car when they
can afford a small helicopter, and they buy
the helicopter when they can afford the
private jet. They dont own expensive toys to
boast to the world Ive arrived.
When the 1% makes money, they plough the
profits back to buy more investments that will
put more passive money into their pockets.
The 99%, after making their profits will first
think what bigger car to drive and which
bigger house to live in.
When youre rich, you can have a lot of stuff
and still be rich enough to afford more stuff.
When youre middle class or working class,
you cannot. If you live within your means,
youd be surprised by how much you
ultimately have to invest when the opportunity
comes to be financially free.
Page | 5

7. The 99% believe you need money to
make money. The 1% use other people's
money.
beautifully decorated property show rooms,

sit in a nice air-con room and be served like a
king by the property salesman.
I made my first bunch of money using only a

LITTLE of my own money. The 1% makes
money with NO money. If you want it bad
enough, as in you are obsessed with it, you
will get it. Even if you only have $12 to your
name, it makes no difference. Its the idea
that makes money, NOT money to make
money!
The 1% love to rough it out in the hot sun,

walk-the-ground, buy old resale properties the
99% will shun, convert them and offer
massive value to tenants with extraordinary
returns.
I cant make money because I dont have

any money. Sounds pretty stupid doesnt it?
I have to make money because I dont have

any money sounds much better.
8. The 99% love to be comfortable. The 1%
find comfort in uncertainty.
The 99% often loves to buy properties from
Back to Contents
9. The 99% play it safe with money. The

1% know when to take risks.
What I have found is that when I take certain
risks, the kind of risks that give others
nausea, diarrhoea and anxiety for days, they
tend to be a payoff for me.
Risks come from ignorance and zero control
over the investment. The 99% only know how
to invest in REITS, gamble in stocks, buy offplan properties and let others manage their
investments.
Page | 6

They have a Follow-the-Leader mentality,
without the receiver doing anything with what
and will invest in something if only someone
was given besides using it for their own
is also doing it.
leisure.
Risks cannot be totally ignored but they can
Help requires giving to someone else but this
be managed well. The 1% follow a strict
time the receiver uses what was given to gain
personal investment system and criteria.
ground and stand upright on their own two
They will only invest when the investments
feet instead of relying on constant future
meet those requirements. And they always
hand-outs.
have absolute control over their investments

to manage risks.
So don't seek hand-outs, seek help for good

financial education and you will find it. Once
Conclusions
you do, try your best to make it work.
If you want to be financially free, youve to get
it yourself. No one gets anything for you or
offers you a chance of becoming rich the free
and easy way. You see, theres a difference
between a Hand-out and Help.
A Hand-out requires giving over and over
Back to Contents
ordinary investor.
Page | 7
Property Renting Tip #5: Rental Rate

Would you rather accept a lower than
expected rental or leave the rental unit vacant
when you are not able to find a Tenant who
can pay your expected rental?
Tenant appears.You can do a simple

renovation and/or include nice furniture,
fixtures and fittings to attract a higher rent for
your investment property.
Besides looking at the rental yield, which is

dependent on the purchase price, another
element to help in making such a decision is
to understand the future plan of this rental
property.
If you do not plan to sell it in the near future,

then having positive cash flow is important
and you would want to rent it out as soon as
possible to have uninterrupted rental
income.You can start arranging with your
Tenant to allow for viewings about two
months prior to the expiry of the Tenancy
Agreement.
Do you plan to sell it in the near future for

capital gains OR do you regard this as a long
term passive income vehicle?
If you are looking for capital gains, you have
to rent the property at an attractive yield to
appeal to the next Buyer.This means that you
may leave the unit vacant until a suitable
Back to Contents

from their book.
Page | 8

Residential
Twin Fountains at Woodlands 2.3 times
subscribed
Twin Fountains, the first EC launched in
Woodlands since 2005, saw a total of 963 eapplications for its 418 units, making it 2.3
times subscribed. One third of the subscribers
are first-time buyers, the rest are second-time
buyers. Its appeal lies in its location, being
near the upcoming Woodlands South MRT
station and expressways such as the Seletar,
Tampines
and
upcoming
North-South
expressways. Units range from two-bedroom
suites to three- and four-bedroom units. 104
dual- key units are also offered in the
development. There will also be a "Fountain
Back to Contents
Villa" for residents to host private functions or

to accomodate visiting guests.
Freehold Versailles at Paya Lebar up for
collective sale
Versailles, a 55-unit four-storey condominium
freehold
condominium
located
near
Guillemard Road and Paya Lebar Road has
been put up for collective sale. The 53,073 sq
ft site with a 2.1 GPR is asking for $105-110
million or $1,088-$1,133 psf ppr including
development charge. It has a potential GFA of
122,598 sq ft which could yield potentially 148
units and has a maximum height of 24
storeys.
Page | 9

Any new development on the site is expected
to be popular since there is a general lack of
new residential projects in the area and it is
located near the upcoming Paya Lebar
Central, Paya Lebar MRT station and schools
such as Kong Hwa School, Haig Girls'
School, Tanjong Katong Primary School, and
Chung Cheng High School. The tender will
close at 2.30 pm on Thursday, May 30, 2013.
Increase in private home price slows in Q1
In Q1 2013, private home prices saw a mere
0.6% increase from Q4 2012, compared to
the 1.8% increase then. This is attributed to
the cooling measures in the residential sector
in January. 5,412 private homes were sold in
the primary market Q1, compared to 4,353
units in Q4. The secondary market, however,
saw a fall in transactions from 3,447 units to
Back to Contents
1,871 units in Q1. The overall rental index

saw a 0.8% increase, slightly higher than the
0.7% increase I Q4 2012, while the vacancy
rate fell to 5.2% from 5.4% in Q4. The
number of rental transactions, however, fell
by 33% to 7,676 deals in Q1.
Meanwhile, the URA's All Industrial price
index increased by 4.5% in the same period,
compared to a 0.7% fall earlier. This is
despite the 51.4% fall in transaction volume
of strata industrial units since the proportion
of transactions involving freehold/999-year
leasehold industrial properties which have
higher values more than doubled from 11% in
Q4 2012 to 24% in Q1. The price indexes for
multiple-user warehouse space and multipleuser factory space also increased by 10.6%
and 2.9% respectively. The price index for
office space also increased by 2.1% in Q1,
Page | 10

compared to a 0.3% increase in Q4 while the
price index for shop space also increased by
2.1% in Q1 after 0.2% fall in Q4.
Commercial
Office leasing market expected to bottom
out in 2013
The office leasing market is expected to
bottom out towards the end of 2013 despite
the fall in rents in Q1 and the expectation of
rents to remain flat. Even if there is any
increase, it would be marginal increases of
around 0.5% at the end of the year. There
had been a 2.5% fall in rents for grade A+
office space in the Marina Bay and Raffles
Place area from Q4 2012 to Q1 2013. Rents
in the Shenton Way/Tanjong Pagar and
Robinson Road area are also expected to fall
given the ongoing construction of buildings in
Back to Contents
the area. Meanwhile, rents in the suburbs are

expected to remain stable given the
development of new good quality office
buildings and their high pre-committed rates.
Bright Chambers sold for $46 million
Bright Chambers, a nine-storey eight-unit
commercial development located at 108
Middle Road next to Bugis+ near Bugis MRT
station is said to have been sold via a tender
exercise for $46 million. The development
with a total strata area of 34,972 sq ft sits on
a 5,263 sq ft site zoned for commercial use
which has a balance lease term of about 60
years. It can be refurbished and further
strata-subdivided for sale or retained by the
new owner for rental income.
Page | 11

65 retail units at 99-year The Midtown at
Hougang sold at preview
one-bedroom unit on a low level to $2.1

million for a four-bedroom penthouse.
60% of 65 of the 107 retail units at The

Midtown, a 12-storey mixed-development in
Hougang, have been sold. Of the retail units,
there are 55 F&B units, 51 shop units and a
supermarket space. The F&B units (721-969
sq ft) are sold at an average of $4,039 psf, or
between $3,588 psf and $5,013 psf while the
shop units (258-893 sq ft) at an average of
$5,800 psf or between $4,687 psf and $6,737
psf.
In addition, 40 of the 160 residential units at

Midtown Residences have also been sold at
an average price of $1,400 psf. Unit sizes
range from 441 sq ft for a one-bedroom
apartment with a study to 1,572 sq ft for a
penthouse. Prices start from $660,000 for a
Back to Contents
Vacancy rate of office space falls in Q1

The net absorption of office space increased
to 269,098 sq ft in Q1, up from 183,000 sq ft
in Q4 last year. This resulted in an office
vacancy rate stood at 9.2%, compared to
9.4% in Q4 2012. There has also been an
increase in non-CBD office rents while the
gross average monthly rent for Grade A office
space fell by three cents to $9.55 psf in Q1
this year while the gross effective monthly
rent for prime Grade A offices in Raffles Place
remained at $8.90 psf.
Page | 12

30-year Tuas Bay
Crescent industrial
highest bidders
Walk and Buroh

sites awarded to
The first is the 0.58-hectare site zoned for

Business 2 (Food only) use located at Tuas
Bay Walk plot. The top bid out of the four the
site attracted was $8.988 million or $84.57 psf
ppr from Yee Lee Development Pte Ltd. The
second is the 1.77-hectare site at Buroh
Crescent in Jurong which attracted a total of
five bids. The top bidder OKH Holdings Pte
Ltd bid $39.017 million or S$82 psf ppr for the
site zoned for Business 2 use.
Back to Contents
Page | 13
Postal
District
1
1
3
4
4
4
5
5
5
8
8
9
9
10
10
10
11
12
12
14
14
14
14
14
15
15
Project Name
EMERALD GARDEN
THE ANCHORAGE
BLUE HORIZON
WESTCOVE CONDOMINIUM
CITIGATE RESIDENCE
KERRISDALE
THE PIER AT ROBERTSON
ASPEN HEIGHTS
ALLSWORTH PARK
ASTRID MEADOWS
VILLA AZURA
RESIDENCES @ EVELYN
TREVISTA
THE ABERDEEN
LE CRESCENDO
NICOLE GREEN
MERA EAST
SIMSVILLE
ASTON MANSIONS
AALTO
THE BELVEDERE
Back to Contents
Area Transacted Price ($

Tenure
(sqft) Price ($)
psf)
710 1,750,000 2,463
99
980 1,810,000 1,848
999
1,173 1,500,000 1,278
FH
1,442 3,200,000 2,219
99
883 1,550,000 1,756
99
1,076 1,850,000 1,719
99
1,163 1,328,000 1,142
99
1,206 1,155,000
958
99
1,927 1,710,000
888
FH
614
975,000
1,589
FH
1,927 1,935,000 1,004
99
743 1,475,000 1,986
FH
1,130 1,820,000 1,610
999
1,959 3,080,000 1,572
999
1,023 1,570,000 1,535
FH
1,356 1,810,000 1,335
FH
2,250 4,130,000 1,836
FH
1,130 1,708,000 1,511
99
1,399 1,620,000 1,158
FH
947 1,180,000 1,246
FH
1,238 1,480,000 1,196
FH
1,033 1,180,000 1,142
FH
980
980,000
1,000
99
1,012 888,000
878
99
1,550 3,472,000 2,240
FH
2,583 4,370,000 1,692
FH
Postal
District
15
15
15
15
16
17
18
18
19
20
20
21
21
21
23
23
23
23
23
23
23
26
27
Project Name
ARTHUR 118
SERAYA 9
WATER PLACE
SANTA FE MANSIONS
LAGUNA 88
CELADON VIEW
RIS GRANDEUR
RIS GRANDEUR
SUNGLADE
COUNTRY ESQUIRE
KINGSGROVE
THE RAINTREE
HILLVIEW GREEN
PINE GROVE
HILLVIEW HEIGHTS
MERAWOODS
MONTROSA
HILLBROOKS
MERALODGE
HILLTOP GROVE
PHOENIX HEIGHTS
SEASONS PARK
Area Transacted Price ($

Tenure
(sqft) Price ($)
psf)
990 1,450,350 1,465
FH
850 1,200,000 1,411
FH
1,281 1,720,000 1,343
99
1,163 1,500,000 1,290
FH
1,119 1,180,000 1,054
99
1,442 812,000
563
999
1,292 1,322,000 1,023
FH
3,111 1,980,000
636
FH
1,109 1,130,000 1,019
99
1,270 1,610,000 1,268
FH
1,615 1,460,000
904
FH
926 1,088,000 1,175
99
1,593 1,675,000 1,051
999
1,755 1,580,000
901
99
958 1,100,000 1,148
FH
1,345 1,400,000 1,041
999
861
890,000
1,034
999
1,238 1,260,000 1,018
FH
1,819 1,650,000
907
FH
1,184 980,000
828
99
1,335 792,888
594
99
1,109 945,000
852
99
1,733 1,350,000
779
99

Page | 14
Issue 99
CONTENTS
p2
FROM THE
EDITOR
Will the Sea Change in HDB Policy

Drag Property Prices Down?
p6
Property Renting Tip #3: Rental Approval
p8
p14
Hope you like it!

Mr. Propwise
(March 27 April 2)
Contribute
Advertise
News.

Will the Sea Change in HDB Policy Drag Property Prices Down?
By Mr. Propwise
Over the weekend Housing Minister Khaw

Boon Wan gave an interview to the Straits
Times, where he spoke about what I believe to
be a radical shift in policy for the pricing of
new Housing Development Board (HDB) flats.
In this article well look at the potential
changes and how they could negatively affect
property prices, especially in the mass market
segment.
HDB to be price-setter, not follower
Historically, the prices of new HDB flats have

been pegged to the movements of resale HDB
prices, i.e. they followed market-based pricing.
This created a vicious (or virtuous, depending
on whether you were a potential buyer or a
home owner) cycle where rising private
Back to Contents
Page | 2

property and resale HDB prices would push
up the pricing of new HDB flats, which would
then serve to further bolster pricing in the
secondary market.
Over the past six years, resale HDB prices
rose by 80 percent, dragging new flat prices
up with it, and making them less affordable to
new buyers. Rising new HDB prices then set
the floor for resale prices, and increased
expectations that prices would only keep
going up.
But going forward, HDB will no longer be a
price follower, but instead act to be a price
setter as the chief supplier of homes. As
Minister Khaw puts it, HDB will no longer let
the tail wag the dog. Instead, new HDB
prices will now be based on affordability
benchmarks instead of market prices of
resale flats.
Back to Contents
Build to Order (BTO) flats to be priced

based on affordability
This de-linking of prices seeks to break the
cycle of self-reinforcing price increases
between the new and resale HDB flat
markets. One possible mechanism that
Minister Khaw spoke about was to price BTO
flats based on a multiple of median income.
Specifically, he referred to pricing new flats in
non-mature estates at four times the annual
median income of applicants, which would
imply a 30 percent fall from current pricing.
However, the exact implementation will be a
sensitive issue, as the government has to do
it without affecting the larger existing base of
flat owners asset values. To get feedback
and buy in, these ideas will be opened up for
debate to Singaporeans in a national
conversation.
Page | 3

It will not be easy to balance the interests of
home buyers versus those of home owners.
Impact on private property prices
While the government cant set private
property prices, they can influence them via
HDB policy. By flooding the market with lowpriced public housing, this will certainly serve
as an overhang on private property prices if
the price disparity is too great.
Previously, there was some segregation
between the public and private housing
markets, primarily through the use of the
income ceiling as a way to restrict access to
public housing. But even this sacred cow may
be slaughtered. Minister Khaw has suggested
doing away with the income ceiling for BTO
flats so that anyone could apply for them
(although there are still likely to be other
restrictions, such as the concurrent ownership
of private property).
Back to Contents
If this really happens, then the private property

market will be under threat from public
housing as first-time home buyers of all
income levels will now be able to make their
purchase decision while comparing across the
entire spectrum of housing types.Practically
speaking, the mass market private property
segment will be most affected as high income
earners are less likely to consider HDB flats.
Of course, for this to have an impact, the
government also has to ramp up the supply of
HDB flats.
Government continues to talk the market
down
The government clearly wants to send a signal
to the market that prices should come down.
In the interview, Minister Khaw made several
ominous remarks, including saying that
judging from the crowded showrooms, it has
not sunk in for buyers that the era of large
capital gains are at an end, and then
Page | 4

what goes up must come down. To further
drive in his point, he suggested that there is
still scope for prices to fall in some market
segments. I believe he is referring to the
currently overheated mass market property
segment, where per square foot prices of
certain developments have almost closed the
gap with more centrally located projects.
feed investor hunger for any asset with yield,

thus pushing up their prices, dont forget that
in the Singapore housing market the
government ultimately holds the keys.
As Ive previously discussed, controlling the

property market and even bringing down
prices have now become a policy aim for the
government. The fact that private home prices
have risen 60% since 2Q09 despite seven
rounds of property measures has become an
embarrassment for the government.
Property buyers have shrugged off the

previous seven rounds of property control
measures, pushing prices and volumes
higher.But with the government controlling
both the longer term supply of public (through
BTO launches) and private (through
Government Land Sales) housing, and the
means to curb demand (through taxes and
financing), I wouldnt bet against the house,
especially one that is determined not to lose
any more face.
Worse, the high level of developer sales in

March (from a huge 4,000 plus units newly
launched) is likely to accelerate a potential
new round of policies to curb investor
enthusiasm for property. While the sustained
low level of interest rates have continued to
By Mr. Propwise, founder of Propwise.sg, a

Chartered Financial Analyst and resident real
estate analyst at PropertyMarketInsights.com,
a site to help property owners and investors
make profitable decisions in uncertain times.
Click here to learn more
Back to Contents
Page | 5
Property Renting Tip #3: Rental Approval

(Reference:
www.hdb.gov.sgwww.subcourts.gov.sg)
policy for Permanent Residents to rent out

their HDB after the MOP.
For renting of an HDB flat, you have to apply

for rental approval or renewal (this can be
done online) before you lease the unit, and
after meeting the Minimum Occupation Period
(MOP).
For Singaporeans, the approval is granted

for three years per application with no cap on
the number of renewals and the total period
of subletting.
If the unit is not approved for rental renewal

and the Tenants have to move out, the
Landlord has to refund the deposit as well as
the pro-rated rent already paid by the Tenant.
If there is any dispute during the process, the

Tenant or Landlord can lodge the case
withthe Small Claims Tribunal. The Tenancy
Agreement (TA) would become evidence for
such disputes.
At the point of this writing, there is a tighter
Back to Contents
For PRs, the approval will be granted for

one year per application and the extension
will be assessed on a case-by-case basis. It
will be granted only if there are extenuating
reasons. The total period of subletting during
the flat owners entire duration of the flat
ownership is capped at five years.
from their book.
Page | 6
Back to Contents
Page | 7

Residential
BTO flats construction not delayed by
tighter foreign workers policies so far
To ensure that the construction of BTO flats
will not delayed by the tighter foreign worker
policies, HDB may replace contractors unable
to cope. However, the impact of the tighter
policies on HDB is likely to be small since
60% to 70% of the super-structure of HDB
projects is constructed with precast parts.
Another possible impact of the tighter policies
is an increase in construction costs. However,
the government will increase the subsidy and
absorb the additional subsidy if the costs
increased.
Freehold Nassim Road GCB up for sale by

tender
The bungalow which sits on an 84,839 sq ft
freehold site at No 33 Nassim Road with a
nearly 100-metre road frontage is asking for
$250-300 million or $2,947-3,536 psf. The
seller is also willing to sell it in two parcels of
31,647 sq ft and 53,192 sq ft, the first of
which can be subdivided into two GCB plots
and the second three. It is expected to see
much interest given the size of the plot, its
rectangular shape, location, and the scarcity
of freehold sites over 80,000 sq ft. The tender
will close on May 16.

Back to Contents
Page | 8

99-year Twin Fountains EC at Woodlands
launched
authorities plan to develop the town into a

regional hub.
99-year leasehold Twin Fountains, an EC

development located at the junction of
Woodlands Avenue 6 and Woodlands Drive
16 has been launched at a price of $660-790
psf. It consists of 418 units housed in eight
14-storey blocks, of which 53% or 221 units
are three bed-room units, with the rest being
two-bedroom and four-bedroom units, and
two penthouses. Prices start from $580,000
for an 828 sq ft two-bedroom unit to $1.26
million for a 1,593 sq ft four-bedroom unit. It
is expected to be popular, with draws such as
its affordable pricing, proximity to the
Woodlands and Admiralty MRT stations and
the upcoming Woodlands South MRT station
as well as the Seletar and Tampines
expressways and the future North South
Expressway. Another draw would be the
Back to Contents
Resale prices of non-landed

residential properties rose in Q1
private
According to the SRX, resale prices of units in

the CCR, RCR and OCR increased from
$1,816 psf to $1,837 psf, $1,208 psf to
$1,259 psf and $958 psf to $1,010 psf
respectively, despite the fall in transactions
from 3,271 to 1,982 units. This is a result of
the low interest rates, and as well as buyers
confidence in high returns from property
investment. The fall in transactions can be
attributed to the lack of supply as a result of
the cooling measures which deter owners
from selling.
Page | 9

99-year Sengkang West Way private
residential site attracts $262.1m top bid
The above site attracted a total of eight bids,
with the top bid of $262.1 million or $488.84
psf ppr from UOL Group unit Secure
Development. The 179,900 sq ft site has a
3.0 GPR and a 536,000 sq ft GFA. The
popularity of the site is attributed to the
popularity of sites with water views amongst
developers and home owners and the need
for developers to replenish their land banks. It
also reflects confidence of demand for massmarket homes despite recent cooling
measures. A 20-storey development with 600
units in planned for the site near Sungei
Punggol, Sengkang Sports and Recreation
Centre and Sengkang Riverside Park. The
expected breakeven price and average
selling price are $900 psf and $1,000-1,100
psf respectively.
Back to Contents

Commercial
Park Hotel Group said to be selling Grand
Park Orchard Hotel
After the sale of 336-room Park Hotel Clarke
Quay for $300 million or $893,000 per room,
it is said that the Park Hotel Group is
intending to sell its two remaining Singapore
hotels - Grand Park City Hall in Coleman
Street and Grand Park Orchard (along with its
retail podium Knightsbridge). It is said to be
asking for $1 million per room for the Grand
Park City Hall which sits on a site with a
remaining lease of about 79 years and over
$1 billion or a per-room price in the high-$1
million range for the freehold 308-room Grand
Park Orchard. The latter also includes about
74,000 sq ft NLA of retail space.

Page | 10

Q1 sees fall in sales of industrial property
The sales volume of industrial property fell by
62.3% from847 lodged in Q4 2012 to 319
caveats in Q1 2013, as a result of the cooling
measures. Specifically, new sale and subsale transactions slid by 71.3% from 480 to
138 transactions in Q1 while resale
transactions of strata-titled factory units fell by
50.7% from 356 to 181 transactions. The fall
in prices is not as great, as seen in the 4.2%
fall in prices of 30-year leasehold new strata
factory units to $345 psf, the 4% fall in prices
of units with a 60-year lease to $425 psf, and
the 1.6% fall to $876 psf for 99-year leases,
and 3.5% to $956 psf for freehold units. For
resales, however, prices of strata-titled
factory units with 30-year leases saw a 10.7%
to $219 psf, and prices of units of 99-year
leases fell by 0.6% to $551 psf while prices of
units with 60-year leases and freehold units
Back to Contents
increased by 3.8% to $390 and 3.3% to $634

psf respectively. Islandwide industrial gross
rents also saw a 5% increase to $2.13 psf in
Q1, though this is unlikely to rise by much in
2013 given the upcoming supply of 24.12
million sq ft of new factory spaces.
Looking ahead, demand is expected to slow
in the near term as a result of the cooling
measures and the slowing manufacturing
activity. As a result of this, prices are also
unlikely slow.
Flight to quality trend in business parks
As more tenants shift to new buildings with

quality specifications and in better locations
with competitive rents, there had been a
positive net absorption in Q1 2013, with a fall
in vacancy rate from 7.2% in Q4 2012 to
6.4%.
Page | 11

Average rents have also stabilised at $3.80
psf per month. Such a trend will also lead to
the creation of 800,000 sq ft of secondary
space in Q2 and Q3 2013. This, coupled with
the upcoming supply of 750,000 sq ft space
which are not pre-committed, the expected
supply of 1.55 million sq ft and competitive
rents in the Grade B office market and light
industrial markets, are likely to prevent sharp
rental increases. It may even lead to a fall in
rents in business parks and force older parks
to
undergo
asset
enhancement
or
redevelopment to compete with newer ones.
approved anchor tenants, with a minimum

GFA 3,000 sq m each. The figure has now
been reduced to 1,500 sq m. This is a
welcomed move since it would make it easier
for landlords in floor planning. Nevertheless,
the impact is likely to be small outside of
Reits and only felt when there are lease
renewals since it is easier to find replacement
tenants for smaller spaces. The change
would also mean that spaces can also
possibly be leased to SMEs, and rents may
also rise since smaller anchor tenants have
less bargaining power.
Sub-letting rule for third-party facility

providers relaxed
30-year Tuas Bay Close industrial plot

attracts $37.1m top bid
Previously, lessees of JTC property intending

to sub-let their GFA must sub-let at least 50%
of the building's GFA to one or more JTC-
The 30-year leasehold 2.5 ha site located at

Tuas Bay Close has attracted four bids, with
a top bid of $37.1 million or $81.19 from a
Back to Contents
Page | 12

joint bid by ZACD Investments and Bohai
Investments (Sengkang). Zoned for Business
2 development, it has a plot ratio of 1.7. The
lack of active participation in the tender is
attributed to the narrow shape of the plot and
the requirement that the at least 12 factory
units, with 10 contiguous 1,000 sq m units,
and two 3,000 sq m factory units be build.
Units in any development on the site are
expected to be sold at $350-400 psf for
ground floor units and $250-300 psf for units
on the upper floors.
Back to Contents
Page | 13
Non-Landed Residential Resale Property Transactions for the Week of Mar 27 Apr 2
Postal
District
3
8
9
9
9
9
10
10
10
10
10
10
10
10
11
11
11
12
12
12
14
14
15
15
Project Name
RIVER PLACE
STUDIOS @ MARNE
PATERSON SUITES
GRANGE INFINITE
TRIBECA
LE WILKIE
THE GRANGE
ONE TREE HILL RESIDENCE
BOTANIC GARDENS VIEW
AVALON
WATERFALL GARDENS
PROXIMO
PROXIMO
RIDGEWOOD
SUITES @ SURREY
NOVENA HILL
IRIDIUM
PRESTIGE HEIGHTS
CITY REGENCY
CALARASI
GRANDLINK SQUARE
CASA EMERALD
THE ATRIA AT MEYER
THE WATERSIDE
Back to Contents
Area
(sqft)
721
517
2,196
2,594
1,033
829
1,765
1,130
1,410
1,582
1,830
1,119
1,119
1,722
926
710
2,573
334
484
1,227
1,109
1,055
1,345
2,142
Transacted
Price ($)
1,150,000
760,000
6,094,500
6,000,000
1,900,000
1,210,000
4,000,000
2,380,000
2,750,000
2,750,000
3,028,000
1,830,000
1,760,000
2,250,000
1,481,600
1,030,000
3,250,000
707,000
695,000
1,360,000
1,146,600
980,000
1,880,000
2,800,000
Price
Tenure
($ psf)
1,595
99
1,471
FH
2,775
FH
2,313
FH
1,839
FH
1,460
FH
2,266
FH
2,106
FH
1,950
FH
1,738
FH
1,655
FH
1,635
FH
1,572
FH
1,306 999
1,601
FH
1,450
FH
1,263
FH
2,119
FH
1,435
FH
1,108
FH
1,034
FH
929
FH
1,397
FH
1,307
FH
Postal
District
15
15
15
15
15
16
16
16
16
17
18
18
18
19
19
19
19
19
19
19
19
19
20
20
Project Name
COSTA RHU
D'ECOSIA
CASTLE LOFT
LAGOON VIEW
THE BAYCOURT
BAYSHORE PARK
CASA MERAH
TROPICANA CONDOMINIUM
ESTELLA GARDENS
SAVANNAH CONDOPARK
EASTPOINT GREEN
ELIAS GREEN
KOVAN MELODY
THE QUARTZ
KOVAN MELODY
THE QUARTZ
KOVAN MELODY
SUNGLADE
COMPASS HEIGHTS
REGENTVILLE
CLOVER BY THE PARK
GRANDEUR 8
Area
(sqft)
2,239
1,755
1,528
1,173
1,647
1,658
936
1,442
1,658
657
1,453
1,173
1,550
1,991
1,302
1,066
1,216
1,216
1,227
1,281
1,033
1,152
1,281
2,314
Transacted
Price ($)
2,700,000
1,810,000
1,545,000
1,150,000
1,330,000
1,800,000
950,000
1,460,000
1,408,888
705,000
1,350,000
1,080,000
1,023,800
2,250,000
1,450,000
1,180,000
1,300,000
1,280,000
1,275,000
1,288,000
990,000
970,000
1,700,000
1,990,000
Price
Tenure
($ psf)
1,206
99
1,032
FH
1,011
99
980
FH
808
99
1,086
FH
1,014
99
1,012
99
850
999
1,074
FH
929
99
920
99
661
99
1,130 999
1,113
99
1,107
99
1,069
99
1,052
99
1,039
99
1,006
99
958
99
842
99
1,327
99
860
99
Page | 14
Postal
District
21
21
21
21
21
21
22
23
23
23
23
25
26
27
Project Name
THE CASCADIA
GARDENVISTA
CAVENDISH PARK
ENG KONG GREEN
SIGNATURE PARK
THE LAKESHORE
HILLVIEW REGENCY
THE WARREN
NORTHVALE
HILLTOP GROVE
WOODGROVE CONDOMINIUM
SEASONS PARK
Area
(sqft)
883
861
1,313
1,044
926
1,087
936
1,195
1,572
1,087
1,184
2,626
1,292
1,206
Transacted
Price ($)
1,527,000
1,180,000
1,650,000
1,200,000
1,000,000
1,160,000
1,170,000
1,150,000
1,500,000
903,800
960,000
1,680,000
1,100,000
1,020,000
Price
Tenure
($ psf)
1,730
FH
1,370
99
1,256
99
1,149
FH
1,080
FH
1,067
FH
1,249
99
963
99
954
99
831
99
811
99
640
99
852
99
846
99

Back to Contents
Page | 15
Issue 98
CONTENTS
p2
EDITOR
What Should Property Investors Do

With Their Money Today?
p6
FROM THE
Property Renting Tip #2: Stamping
the Tenancy Agreement
p7
p11

Hope you like it!

Mr. Propwise
(March 20 March 26)

Contribute
Advertise
News.

What Should Property Investors Do With Their Money Today?
By guest contributor Gerald Tay

Dear Readers,
I want to share some personal thoughts and
investment decisions based on the 2013Q1
URA PPI flash estimate and what it means for
the property market.
The 2013Q1 estimate of 213.1 represents a
0.5% quarter-on-quarter increase, which is a
moderation from the 1.8% q-o-q pace we saw
in 2012Q4, but suggests that the market
prices are still rising, albeit slightly, despite
seven rounds of government cooling
measures.
Back to Contents
Page | 2

Today, were at the record peak of the
property cycle since 1965. It does not take a
lot of common sense to tell us we need to
tread extremely carefully, especially in the
current uncertain economic climate.
Prices likely to continue to increase, but
My personal predictions (I personally hate to
invest on predictions), if you may, is that there
might be further price increases in all
segments of the property market. The
residential market is still being supported by
local first-time buyers (though we dont know
for how long yet), while the commercial and
industrial sectors have experienced continued
hot money inflows resulting from the severe
cooling measures on the residential sector.
However, this does not mean investors
should simply rush out to buy that new launch
property today and hope to cash out in the
Back to Contents
next few years. The potential downside is

much greater than the upside, and based on
the price-rental index which indicates a 57%
over-valuation (based on The Economist),
buyers and investors today are already
paying for future price increases for years
down the road.
I have done my personal investment
calculations for the residential market,
comparing price versus rental. Even with the
current low interest rates , most properties
(resale and new) are already fetching
negative yields, not to mention when these
rates start to rise back to normal levels in
future.
Phoney money supporting the market
Today, the Asian property market (especially
in Singapore, Hong Kong and China) is being
supported by phoney money.
Page | 3

Money is printed endlessly in the trillions of
dollars by irresponsible governments for
political motives. Banks are either lowering
their reserve rates or cutting interest rates
and these have fuelled the inflow of more hot
money. The money is finding its way into
Asian markets like Singapore, in the hopes of
so-called higher returns and inflating many
asset bubbles.
When a financial crisis erupts (e.g. a Europe,

USA, or China crash), this phoney money
would find its way back home faster than a
speeding bullet, resulting in severe price
deflation and chaos.
A word of caution to investors
I personally urge you, if you are an investor
who is still in the midst of growing your wealth
for your retirement, to be very careful where
you are putting your money today. If you are
investing in overseas property, make sure you
Back to Contents
know that country inside out. When I mean

inside out (NOT as a tourist), I mean you
have been living in that country for years and
are very familiar with the local real estate
market.
Or, you have credible partners who are locals
in that country who are willing to invest
together with you. If you are simply investing
in an overseas property and expecting good
returns based on a piece of paper, some
cocktail champagne, a nice sales talk or
because you think you spent one full month to
do some due diligence, I have to candidly say
best of luck to your investment.
As for local properties, invest on cash flow
and never capital appreciation.
For myself, Ive stayed away from our local
property market since 2011 and have
expanded to the USA real estate market.
Page | 4

I work with experienced local USA investors
who are more familiar with the terrain and
have invested their own money with me.
If you do not have that kind of connections or
expertise, then my best wealth advice for you
TODAY is to leave your money in the bank,
despite the low interest rate on deposits. Be
patient to take advantage of massive
opportunities to grow your wealth within the
next few years when prices start tumbling
down again.
Please Remember: The Return of Money is
more important than the Return on Money in
any investment.
ordinary investor.
Back to Contents
Page | 5
Property Renting Tip #2: Stamping the Tenancy Agreement

Stampingthe Tenancy Agreement (TA) is an
important protection to both the Tenant and
the Landlord.This document binds both
parties until the end of the lease.
Evasion of stamp duty is a serious offence in

Singapore.In most TAs, this cost is borne by
the Tenant. The TA is the only contractual
document given to the Tenants for their rights
to stay in the said premise and also gives
rights to the Landlord to take action for any
breach of the covenant with the forfeiture
clause (e.g. when the Tenants have not paid
the rental on time).
The stamp duty rates are as follows (for every
$250 or part thereof of the average annual
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rent), applicable for annual rents exceeding

$1,000:

from their book.
Page | 6

Residential
Slowdown in HDB resale prices growth in
Q1
The Resale Price Index (RPI) for HDB flats
saw a 1.2% increase to 205.4 in Q1 2013,
compared to the 2.5% increase in Q4 2012.
Reasons for the slowdown include the
capping of MSR at 30% and 35% of gross
monthly income for loans granted by financial
institutions and HDB, respectively, the large
supply of alternative housing options in the
forms of BTO flats and ECs. Another possible
reason was a fall in demand from singles,
who are now eligible to purchase new 2-room
BTO flats in non-mature estates. However,
Back to Contents
supply of HDB resale flats could remain

limited since singles are not eligible for ABSD
concessions and PRs may be reluctant to sell
their flats given the increased ABSD rates
and the new rule that require them to sell their
HDB flats within six months of buying a
private home. Looking ahead, resale prices
are expected to grow by 3-7% in 2013.
Commercial
Strata retail space popular in Q1
As a result of the cooling measures in the
residential sector diverting investment to the
commercial sector, the average capital values
Page | 7

for prime strata-titled retail space in Orchard
Road saw a 3% increase from Q4 2012 to
$6,806 psf in Q1 while the average capital
values for retail spaces in regional centres
saw a 5% gain to $4,276 psf. The frequent
rental revisions, coupled with limited supply
are other factors for the increased interest in
strata retail space. However, rents for both
regions fell in Q1 2013, as a result of retailers
resistance against increased rents.
Looking ahead, retail rents are expected to
remain stable with falls of no more than 5%.
Strata-titled retail sales are also expected to
continue to see demand, with average capital
values in the Orchard Road region to
increase by at least 5% and those in other
non-central regions to increase by even more.
Back to Contents
Rising speculative activity in strata retail

units
Of the total of 3,315 caveats of strata retail
units (excluding collective and bulk sales)
between 2008 and Q1 2013, there were
2,045 caveats for resale transactions, with
1,127 which previous caveats can be traced.
Of these, the proportion of those which were
transacted within 3 years of the previous
transaction has increased from 42% in 2012
to 55% in Q1 2013 while the proportion of
those sold within a year increased from 16%
in 2012 to 25% in Q1 2013. This has led to a
fall in average holding period in resale deals
from5.8 years in 2012 to 4.7 years in Q1
2013. There were also 54 subsale
transactions from projects launched from
2010 to Q1 2013,
Page | 8

of which 45 were sold within a year of their
purchase from their respective developers.
The rise in properties sold within one to three
years of the previous transaction points to an
increase in speculative activities, which may
eventually result in cooling measures in the
retail market.
Increased supply leads to fall in CBD

office rents in Q1
As a result of increased office spaces from
upcoming projects and increased vacancies
from existing developments in the CBD, the
average monthly gross rents for Premium and
Grade A office spaces fell by 0.7% to $8.41
psf from Q4 2012 to Q1 2013. Rents in the
city fringe and suburban micro-markets, on
the other hand, remained stable at $7.60 psf
and $4.53 psf respectively. The fall in
Back to Contents
occupancy rate for Grade A space in the CBD

from 93.3% in Q1 from 94.5% in Q4 2012 at
the same time as the increased occupancy
rate for Premium space from 88.5% to 90.2%
also points to a tenant shift from Grade A
office spaces to Premium spaces, probably
as a result of a fall in rents of Premium office
space. Capital values of both Grade A and
Premium office spaces in Raffles Place/New
Downtown remained steady at $2,390 psf and
$2,640 psf respectively in Q1 as a result of
strong demand driven by the low interest rate
and cooling measures in the residential and
industrial sectors. Looking ahead, capital
values are likely to continue rising while rents
fall. This is since supply is expected to
increase to 9.3 million sq ft by 2017, with 6.4
million sq ft in the CBD.
Page | 9
Retail resales proved profitable

96-100% of the 260, 291 and 51 resale
transactions in 2011, 2012 and Q1 2013
respectively made an average percentage
gain of 72%, 91% and 75% in profits
respectively. Of those that made a profit,
the most profitable was a sixth-floor unit in
Lucky Plaza which was first bought for
$17.6 million in 2007 and sold in 2012 for
$32.6 million or a profit of $15.05 million.
The biggest loss of $600,000 was from a
fourth-floor Sim Lim Square unit which was
first sold in 2011 at $1.7 million and sold
again in 2007 at $2.3 million.
Back to Contents
For subsales, all but three of the 54

subsale transactions in the same period
made a profit. The most profitable was a
ground-floor unit in Parc Elegance in Telok
Kurau which was sold in 2010 for $1.13
million and sold again in 2012 for $1.95
million or a 73% gain. The three losses
were from a third-floor unit at Oxley tower,
which was purchased at $670,000 in June
2012 before being sold for $567,600 in
August, a unit at Viva Vista in South Buona
Vista Road and another at The Arizon in
Geylang Road.
Page | 10
Non-Landed Residential Resale Property Transactions for the Week of Mar 20 Mar 26
Postal
District
3
3
3
3
4
4
4
4
5
5
5
5
5
9
9
9
9
10
10
10
10
10
11
11
Project Name
MERAPRIME
QUEENS
RIVER PLACE
BLUE HORIZON
LE HILL CONDOMINIUM
THE INFINITI
MONTEREY PARK CONDOMINIUM
HELIOS RESIDENCES
WHARTON VALE
PARC CENTENNIAL
MILL POINT
BALMORAL HILLS
GOODWOOD GARDENS
ASTRID MEADOWS
RIDGEWOOD
BUCKLEY 18
Back to Contents

Tenure
1,173 1,680,000 1,432
99
1,195 1,670,000 1,398
99
1,970 2,700,000 1,371
99
1,399 1,870,000 1,336
99
2,626 6,300,000 2,399
99
1,216 1,980,000 1,628
99
1,335 2,150,000 1,611
99
3,208 3,750,000 1,169
99
958 1,150,000 1,200
99
1,130 1,260,000 1,115
FH
1,238 1,310,000 1,058
FH
1,421 1,500,000 1,056 999
2,293 2,150,000 938
99
1,281 3,458,700 2,700
FH
624 1,100,000 1,762
FH
3,563 5,522,650 1,550
FH
1,163 1,610,000 1,385
FH
527 1,030,000 1,953 999
1,841 3,500,000 1,902
FH
1,076 1,930,000 1,793
FH
3,800 6,500,000 1,711
FH
2,002 2,580,000 1,289 999
1,884 3,548,000 1,884
FH
1,055 1,810,000 1,716
FH
Postal
District
11
11
12
12
12
13
14
14
14
15
15
15
15
16
16
16
16
17
18
18
19
19
19
19
Project Name
ZEDGE
SHELFORD REGENCY
CITY REGENCY
VETRO
THE BELLEFORTE
PARC MONDRIAN
THE WATERINA
SIMSVILLE
ESCADA VIEW
THE SEA VIEW
THE SEA VIEW
IMPERIAL HEIGHTS
ONAN COURT
COSTA DEL SOL
THE BAYSHORE
THE CLEARWATER
THE BAYSHORE
EASTPOINT GREEN
THE TROPICA
SANCTUARY @813
OASIS GARDEN
WEMBLY RESIDENCES
RIO VISTA

Tenure
915 1,530,000 1,672
FH
990 1,399,888 1,414
FH
484
680,000 1,404
FH
474
643,000 1,358 999
1,432 1,770,000 1,236
FH
936 1,245,000 1,329
FH
1,324 1,660,000 1,254
FH
969
980,000 1,012
99
753
750,000
995
FH
1,647 2,800,000 1,700
FH
1,647 2,800,000 1,700
FH
775 1,068,000 1,378
FH
1,776 1,820,000 1,025
FH
1,884 2,300,000 1,221
99
1,345 1,498,888 1,114
99
1,195 1,177,000 985
99
947
880,000
929
99
1,399 1,400,000 1,000
FH
958
938,000
979
99
1,507 1,220,000 810
99
936 1,196,888 1,278
FH
1,572 1,590,000 1,012
FH
947
891,000
941
FH
1,055 928,000
880
99
Page | 11
Postal
District
20
20
21
22
22
22
23
23
23
23
23
25
25
Project Name
GRANDEUR 8
CLEMENTI PARK
PARC VISTA
THE CENTRIS
LAKEPOINT CONDOMINIUM
HILLVIEW REGENCY
MAYSPRINGS
REGENT GROVE
CASABLANCA
CASABLANCA
Area
(sqft)
1,249
1,227
1,722
1,259
1,572
3,401
904
980
1,378
904
926
1,109
1,195
Transacted
Price ($)
1,360,000
1,330,000
1,820,000
1,109,000
1,360,000
1,900,000
1,000,000
1,028,000
1,400,000
830,000
765,000
980,000
975,000
Price
Tenure
($ psf)
1,089 99
1,084 99
1,057 FH
881
99
865
99
559
99
1,106 99
1,049 999
1,016 999
918
99
826
99
884
99
816
99

Back to Contents
Page | 12
Issue 97
CONTENTS
p2
EDITOR
How to Build a Global Property

Portfolio with Little Capital
p10
FROM THE
Property Renting Tip #1: Are You
Landlord Material?
p12
p20

Hope you like it!

Mr. Propwise
(March 13 March 19)

Contribute
Advertise
News.

How to Build a Global Property Portfolio with Little Capital

With the skyrocketing property prices in
Singapore, many investors are looking
overseas to find attractive investment
opportunities. In this article we interview Dr.
Rohan Weerasinghe, one of the United
Kingdoms most recognized wealth creation
experts and a speaker at the National
Achievers Congress 2013, on both his
failures and successes in building his
property portfolio, and how investors can
build a global property portfolio with little
capital.
Dr. Rohan Weerasinghe
Back to Contents
Page | 2

Could you share your story of how you
began your property investing journey and
achieved the success that you have
today?
I started my journey in 2001 when my
business partner and I purchased our first
property using money we had saved up. Over
the next 10 months we viewed properties and
read books and magazines on property but
found we had a limited understanding of how
to grow our property portfolio.
Because of my PhD and experience in
Engineering I was a little cautious and almost
overly analytical, which I believe held us back
for a short period. I believed we could do it
on our own. But we werent growing as fast
as we wanted.
Finally in 2002 my business partner literally
dragged me to a two hour presentation which
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changed the direction of our attitude towards

property. From there we took a three-day
property training course with Tigrent Learning
UK and it was like somebody had put a rocket
engine on our backs. We then took a variety
of classes and worked with a professional
property Mentor who kept us focussed.
We discovered creative ways to finance
property deals, how to negotiate with sellers
and to buy multiple properties at the same
time. We realised that we were not limited by
how much we had available in our bank
account and that there were many strategies
we could apply as the market conditions
changed.
With these new tools, over the next year or so
we purchased and traded around 40
properties and my business partner was able
to set up a property sourcing business
Page | 3

which allowed him to buy almost 100
properties in 14 months.
What does your property portfolio look
like today? What steps did you take to
build up that portfolio?
Our success was based on a team effort, with
the two of us working together to develop a
portfolio with our mentors and support from
Tigrent. We bought, sourced and traded over
150
properties,
which
allowed
the
development of both passive income and
cash generation, which I will teach at the NAC
when I speak.
We started with a strategy to acquire buy-tolet property producing a positive income. We

started with smaller properties that were
cheaper to purchase and which we could
refinance and pull our money back out.
properties, buying land for development and

also buying properties that can be rented to
multiple tenants to produce a higher income.
Today this last strategy is one that I am
particularly focussed on.
People looking to generate wealth from
the markets are faced with a wide range of
options that include trading and investing
in property, stocks, options, futures and
foreign exchange. Which of them do you
think would be more suitable for a
beginner looking to build his or her
wealth?
Over the past 12 years I have not only
invested in property, but have also built
businesses and traded the stock market. As I
travel the world I see people attempt to juggle
multiple businesses and strategies at the
same time.
Over time we expanded into renovating

Back to Contents
Page | 4

It is my belief that property underpins all other
What property types (e.g. residential,
wealth vehicles simply because it has the
commercial
ability to produce a passive income from
investing in and why?
tenants who live in your properties.
etc)
do
you
recommend
This is a great question and it must be
Even if the market is flat and not increasing in
addressed when understanding the investors
value, your property will still produce income
primary needs.
for you whether you are fit and healthy or

unable to work or to run your business.
For example international investors buying in

the UK have opportunities to create yields at
Another great benefit to property is that
10%, 15% and in excess of 20% on
during a recession many people are unable to
residential properties. A good place to start
purchase properties so they must rent which
would
increases the possibility of renting.
properties where the access to financing is
As an international investor you have the

ability to purchase properties in countries
be
income
generating
residential
simpler and interest rates enable the property
to produce a high positive cash flow.
where there are high yields, generate an
Property can be purchased below the market
income and still bring the income back into
value and then refinanced 6 to 12 months
your home country that you can then live off.
later enabling investors to withdraw the initial
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Page | 5

investment capital and start buying another
property. This can be repeated to build a
multi-million pound portfolio.
Most importantly do not focus on just one
area. For example, some countries or cities
do not produce the correct yield and you
cannot make the properties work. Therefore
as an investor you must be prepared to
diversify and move out of your location in
order to create the income that youre
seeking, and this may involve investing in
other countries.
Which global property markets do you
think have the greatest profit potential for
an investor and why? Which markets do
you think investors should avoid?
I have been privileged to teach investors in
nine different countries and I personally
believe that there is no market currently that
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matches the United Kingdom. The USA does

have some strong strategies, but one must be
exceptionally careful in view of their economy
and you must be very specific on the location
of where you have your investments.
The UK has the benefit of financing available
to
overseas
investors,
interest
only
mortgages, a growing population with not
enough properties available and therefore
high demand for rental properties. The yields
in the United Kingdom at present vary from
5% at the low end to over 20%.
There is also the ability to purchase
properties below market value from
distressed sellers and then later refinance the
property without having to sell other
properties that you own.
Be careful about developers and countries
where there are a lot of new developments,
Page | 6

apartments and large blocks of properties
being developed over a five year period or so.
These properties are often incorrectly valued
and rents are overinflated for a short period
under guarantee and then drop away, causing
the investor a lot of problems further down
the line.
What pitfalls should a global property
investor be wary of?
There are several indicators you can look at
when it comes to buying properties in
different countries. It is important to buy
properties in marketplaces where there is a
high demand for rental if your long-term
strategy is to produce passive income. Be
careful of properties where the market has
overinflated prices and where you do not
have an exit strategy.
For example, if you are for whatever reason
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finding it difficult to sell a property because

you havent done your research properly, then
you should at least have the ability to rent the
property out and produce income.
I believe the greatest pitfall is ignorance. The
lack of education, lack of knowledge and the
belief that you can try and do this on your
own.that is one of the greatest pitfalls Ive
seen for investors that have lost money.
How much capital do you need to have to
build a property portfolio and what sort of
rental yield and capital gains can you get?
Could you share with us some of your
best and worst property investments?
This question really needs to be answered in
conjunction with a question about the
investors strategy. I teach people that you do
not have to own a property to make money
from it, which means you dont have to put
Page | 7

any money down at all.
However, if you're typically looking at a
property for rental income then you might
initially want to put aside 20 to 25 percent of
the purchase price to buy into the deal. If
financed correctly with the right discount on
entry you have the ability to pull this capital
back out six months or 12 months later, which
means ultimately it can become what is
known as a no money down deal.
Where this becomes very creative is when
you start to work with other peoples money to
buy properties which means that you can
invest into deals using external funding and
then pull that money back out which means
you never had to use any money at all.
One of my worst deals was when we
purchased a property without doing the
correct due diligence and research. We did
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not plan our exit strategy properly and

therefore it took a lot longer to sell the
property than expected. This was many
years ago and that one experience taught me
to always be clear on having several
strategies to exit the deal whether you are
holding it or selling it.
The best deals that we have done always
revolve around purchasing the property at a
sufficiently low price to enable you to create a
great income even after you have refinanced
the property and released the equity back out.
What are the most important lessons
youve learnt about living a happy,
successful and meaningful life?
My father died when I was 13 years of age
and he was just 46 years of age. From an
early age I learned how important it was to
value every minute and to get the most out of
Page | 8

life and the experiences that you have.
I have also learned that success is not about
chasing money it is about doing what you
love and being passionate about what you do.
For example, property for many people may
simply be a vehicle. But if you can be
passionate about building a vehicle that
creates freedom then you can truly live your
purpose and go and do the things you enjoy
most. I also believe in living a healthy life,
which creates more vitality to enjoy the
special and magical moments that occur
every day.
Dr. Rohan Weerasinghe will be going in depth
on the strategies he has used to build a
global property portfolio with little capital at
the National Achievers Congress 2013.
Back to Contents
Page | 9
Property Renting Tip #1: Are You Landlord Material?

Do you have what it takes to be a Landlord?
The responsibilities of a Landlord are

considerable. Its not just about providing a
space for your Tenants.There are rents to
collect, repairs to attend to and maintenances
to deal with. You also have to handle
unsatisfactory Tenantsand consider the
relevant laws.
As a Landlord you have to recognize that your
Tenants are your Customers and they are the
ones paying or covering part of the mortgage
loan for you.So do treat your Tenants nicely
and provide a clean, safe and functional
house for them to enjoy their stay.
It is a good practice to stay engaged with your
Tenant regularly to be aware of the condition
of the house they are staying in. Regardless of
how well-built the house is, there is bound to
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be wear-and-tear and it may need repair and

rectification from time to time. Bad weather
tends to lead to more wear-and-tear and may
even cause some structural problems to your
house. Address the problems early and rectify
it as soon as possible.Spending some money
upfront will help to avoid expenses on big
ticket items in the future.
We are not saying you have to check on your
Tenant on a monthly basis once a quarter is
more than sufficient. It is necessary to keep a
safe distance with your Tenants.Being too
close may give your Tenants a chance to
delay or avoid paying rent!
from their book.
Page | 10
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Page | 11

Residential
Freehold Kismis Lodge sold for $84m
Kismis Lodge located near Toh Tuck Road
has been sold collectively at $84.18 million, or
$1,198 psf based on its 70,283 sq ft land
area. Zoned for a three-storey mixed landed
development, it has can potentially be
redeveloped into 43 terrace houses or 32
semi-detached houses, subject to approval.
There are currently 64 units in the two blocks
of walk-up apartments.
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PRs share of private property purchases

fall in February
Following the latest increase in ABSD rates,
PRs share of private home purchases (both
primary and secondary markets) have fallen
by a 5.7 percentage point to a 12.7% share of
789 caveats lodged for private home
transactions in February from 18.4% of the
total 2,876 caveats in January. Singaporeans
share of purchases, however, saw a 5.5
percentage point increase to 76.6% in
February from 71.1% in January while nonPR foreigners share remained similar at
10.1% in February, a mere 0.1 percentage
point increase from 10% in January.
Page | 12

The number of caveats lodged by PRs, nonPR foreigners and Singaporeans fell by
81.1%, from 530 in January to 100 in
February, 72.3% from 289 to 80 and 70.5%
from 2,046 to 604, respectively. Nevertheless,
PRs share of purchases is expected to
recover for those buying for occupation.
Freehold Meyer Rd bungalow up for sale

The freehold bungalow sits on a 25,525 sq ft
regular-shaped site located at Meyer Road
near East Coast Park is asking for $35 million
or $1,371 psf ppr. Zoned for "residential - twostorey bungalow" use, it can be potentially
redeveloped into conventional or strata
bungalows. The tender will close on April 23.
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Prices of
February
completed
condos
fall
in
According to NUSs SRPI, prices of

completed
non-landed
private
homes
excluding ECs fell by 1.4% in February from
January. Specifically, the sub-index for
Central Region (excluding small units) fell by
3.7% while the sub-index for Non-Central
Region (excluding small units) increased by
0.5%. This may a result of some investors
shifting their interest from the Central to NonCentral Region. Meanwhile, the sub-index for
prices of completed small apartments and
condo units (up to 506 sq ft) islandwide fell by
0.1% in February.
While both the primary and secondary market
was affected by the cooling measures and
Chinese New Year season in February,
Page | 13

the primary market is recovering faster than
the secondary market since developers are
offering attractive incentives and buyers do
not have to make an upfront payment unlike
in the secondary market. Further, owners in
the secondary market are less willing to settle
for a lower price since they may be affected
by the ABSD or lower LTV limit if they were to
purchase a replacement property. Resale
transactions excluding ECs fell from 879 in
January to 248 in February.
Three 99-year leasehold residential sites
released
THREE 99-year leasehold sites with a
potential 845 private homes and ECs have
been released for sale, this include a site at
Coronation Road and a site at Woodlands
Avenue 5 under the reserve list and a site at
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Jalan Bunga Rampai under the Reserve List.

The 403,000 sq ft site at Coronation Road in
a private landed estate near Nanyang
Primary School and Hwa Chong Institution
can yield 140 landed homes and is expected
draw 5-17 bidders with bids around $1,400
psf ppr given its location and the scarcity of
such sites.
The Woodlands Ave 5 EC plot, however, can
yield 590 units with its 633,000 sq ft
maximum GFA, and is expected to draw 4-8
bids of $300-340 psf ppr. While any project on
the site can only be launched 15 months from
the award of the sites or after foundation
works are completed, whichever is earlier, it is
likely to benefit from being part of the future
North Coast Innovation Corridor, an area of
economic growth in the recent Land Use
Plan.
Page | 14

The Jalan Bunga Rampai site with a
maximum GFA of about 105,000 sq ft can
yield around 115 units and is expected to
draw 5-12 bids of $520-575 psf ppr.
The tenders for the Coronation Road and

Woodlands Ave 5 sites will close on June 20
and May 9, respectively.
Commercial
Q1 sees 42% fall in property investment
sales
The investment sale of properties has fallen
by 42% from $8.88 billion in Q4 2012 to $5.13
billion in Q1 2013 so far. Nevertheless, the
year-end total is expected to be at the same
level as 2012s or even higher, with $31.39
billion or more. The fall in this quarter can be
attributed to the traditional slower Chinese
New Year season, fall in state land tender
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awards, and response to the latest cooling

measures. Investment sales in the residential
sector fell by 31% to $2.3 billion with
transactions falling from 50 deals ($835
million) in Q4 to 27 deals ($456 million) in Q1.
Three collective sales have also been
transacted at a total of $247.8 million. The
commercial sector saw a 46% fall to $1.6
billion in Q1 while the industrial sector aw an
8% increase to $608 million in Q1.
7th and 8th floor of One Sims Lane up for
sale
The seventh and eighth floors of eight-storey
One Sims Lane, a freehold Business 1 zoned
development located along Lorong 23
Geylang has been put up for sale by
expressions of interest. Each offers a 22,500
sq ft strata floor area, with a combined strata
area of 48,739 sq ft.
Page | 15

The building offers parking on the first two
levels, three passenger lifts, two goods lifts
and two loading bays. It is located near
Aljunied MRT station, and fairly accessible
from the CBD and the airport, making it also
fairly accessible. It can also potentially be
strata-subdivided in the future. The two floors
are currently fully leased $3 psf. The
expressions of interest exercise will close at
4pm on April 26.
Minimum average size of retail units set at
50 sq m
To prevent the rise of small units that may not

serve their intended purpose and cause
disamenities, URA has set the minimum
average size for retail units at 50 sq m (538
sq ft). In addition, the minimum corridor
widths for retail developments were also set
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at two to 2.4 m for single loaded corridors,

and 2.4 to three m for double-loaded
corridors. These measures were not meant to
cool the strata retail market but to ensure a
good shopping environment since small
shops may be targeted at investors rather
than most retailers that need a bigger space.
A narrow corridor may also not be able to
handle pedestrian traffic at busy times. The
new guidelines are welcomed since the small
units may not be a sustainable investment.
The latest guidelines are likely to result in a
fall in rental rates and rental returns, since
smaller units usually fetch a higher psf rent.
Land bids for mixed-use developments may
also fall as a result.
All 93 Pavilion Square retail units sold
All 93 retail units in Pavilion Square, a mixed
Page | 16

development in Geylang Road has been sold
at a range of prices from $2,000-2,400 psf for
third-floor units with open terraces and "flat
roof" space above to $10,879 psf for a 118 sq
ft street-fronting F&B unit on the first level.
Six other F&B units at the same level were
sold at above $10,000 psf, with other units at
the same level sold at above $8,000 psf. Unit
sizes range from 86 to 926 sq ft with most at
108-129 sq ft. Its apartments, however, has
not one as well, with only 15 of the 42
apartments sold at prices ranging from
$1,400 to $1,600 psf. Sizes start from 398 sq
ft for a one-bedroom unit, with the biggest
unit being an 818 sq ft two bedroom-plusstudy unit.
Office demand supported by lower rents in
Q1
Supported by lower rents, vacancy rates for
offices fell by 0.7 percentage points to 5.1%
Back to Contents
in Q1 from 5.8% from the last quarter, with

net absorption increasing from 272,000 sq ft
in Q4 2012 to 375,000 sq ft in q1 2013.
Grade A offices saw a 0.3 percentage point
fall to $9.55 psf per month in Q1 while
vacancy rates inmproved to 7.1% from 8.8%.
For Grade B offices, rents also fell by 0.3
percentage points to $7.09 psf per month
while vacancy rates improved to 5.4% from
5.9%. In the pipeline for 2013 are around 2.5
million sq ft of office space supply from
Metropolis and Nexus@ one-north, JEM in
Jurong East and Asia Square Tower 2 in the
CBD among others. As projects such as
Metropolis and JEM have pre-commitment
levels of 70% and 100% respectively, rents
are expected to remain steady in
decentralised areas while rents in the CBD
are likely to fall in 2013, given the much lower
pre-commitment levels of 12% at Asia Square
Tower 2.
Page | 17

Restored
three-storey
Chinatown
shophouse up for sale

The three-storey restored shophouse sits on
Lian
Beng
unit
Wealth
Development
bought Changi Road freehold commercial

plot
a 999-year 1,316 sq ft site at 81 South Bridge
Wealth
Road, near the junction with North Canal
subsidiary
Road.
Zoned for commercial use with the
purchased a freehold commercial plot at
first storey for activity-generating uses, it has
Changi Road for $68 million and is intending
a 5,656 sq ft GFA. It features include a
to redevelop the property with two partners
mezzanine floor and an open roof terrace,
Kim Seng Heng Realty and Development 16 -
and a column-free design and en-suite
wholly owned subsidiaries of KSH Holdings
bathrooms on every floor after restoration.
Ltd and Tee International, respectively. The
The currently vacant property is asking for
developer is said to be developing the 17,974
$13.8 million. It is expected to see strong
sq ft site with a GPR of 3 into a mixed-use
demand given its location and the scarcity of
development that will have both office and
such property. The expression of interest will
retail space.
close at 3pm on April 25.
Development,
of
Lian
a
Beng
wholly
owned
Group,
has
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Page | 18

30-year Loyang Way industrial site up for
sale
The 222,092 sq ft industrial site located at
Loyang Way for sale by public tender. Zoned
for Business 2 development, it has a 2.5 GPR
and can be strata-subdivided. It is expected
to see much interest given the scarcity of
such sites in the area and assuming no
restrictions on the strata title. Some expect
top bids of $100 psf to over $130 psf ppr
while others predict a top bid of $50-70 psf
ppr, citing its irregular L-shape and narrow
length. The tender will close on May 9 at
11am.

Property auctions market picks up
The total sales value of the property auctions
market excluding those sold by statutory
boards in Q1 2013 was $76.08 million from a
total of eight properties, more than the fullyear figure of $62.44 million in 2012. At least
$150 million worth of transactions is expected
to be completed by this year. The strong
performance was despite the latest round of
cooling measures in the secondary market,
since there were four high-value sales
accounting for a total sales value of $70.1
million or 92.1% of total sales value in Q1.
These include two shophouses which usually
offers yield of 2-4% per annum, and a GCB
plot at Chee Hoon Avenue near Botanic
Gardens MRT station which was sold for
$22.9 million. More high-value properties are
expected to be put up for auction since it
reaches out to more buyers with generated
publicity though transactions are likely to be
mainly from the industrial and commercial
segment given the cooling measures in the
residential segment.

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Page | 19
Non-Landed Residential Resale Property Transactions for the Week of Mar 13 Mar 19
Postal
District
2
3
3
4
5
5
5
5
5
5
8
8
8
9
9
9
9
9
10
11
11
12
13
14
Project Name
LUMIERE
CENTRAL GREEN CONDOMINIUM
MARINA COLLECTION
VISTA PARK
PARC IMPERIAL
NORMANTON PARK
PRISTINE HEIGHTS
CITYLIGHTS
CAIRNHILL CREST
THE OXLEY
ASPEN HEIGHTS
8 @ MOUNT SOPHIA
WATERFORD RESIDENCE
MARTINA MANSIONS
THOMSON 800
MINBU VILLA
CITY REGENCY
THE ACACIAS
ESCADA VIEW
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Area
(sqft)
506
775
2,906
2,390
1,410
689
1,195
1,270
2,669
2,196
861
732
1,410
1,733
549
1,324
872
1,701
1,259
1,625
2,336
484
1,378
861
Transacted
Price ($)
1,087,900
1,168,000
3,640,000
7,050,500
1,688,000
738,000
1,280,000
1,300,000
2,450,000
1,932,480
1,495,000
1,100,000
1,750,000
3,800,000
1,200,000
2,250,800
1,480,000
2,551,500
2,000,000
2,100,000
2,400,000
700,000
1,600,000
850,000
Price
Tenure
($ psf)
2,150
99
1,507
99
1,252
99
2,950
99
1,197
99
1,071
99
1,071
FH
1,023 102
918
99
880
FH
1,736
FH
1,503
FH
1,241
99
2,193
FH
2,186
FH
1,700 999
1,697 103
1,500 999
1,588
FH
1,292
FH
1,027
FH
1,445
FH
1,161
FH
987
FH
Postal
District
14
15
15
15
15
15
15
15
15
15
15
15
16
16
16
16
16
17
17
17
18
19
19
19
Project Name
SIMSVILLE
THE COTZ
PALM GALLERIA
THE ATRIA AT MEYER
WORTHINGTON
COSTA RHU
FERNWOOD TOWERS
KATONG GARDENS
COSTA RHU
SERAYA BREEZE
LE CONNEY PARK
THE BAYCOURT
THE BAYSHORE
CHANGI GREEN
FAIRMOUNT CONDOMINIUM
THE BAYSHORE
COASTAL VIEW RESIDENCES
EASTPOINT GREEN
KOVAN GRANDEUR
CHUAN PARK
COMPASS HEIGHTS
Area
(sqft)
1,249
388
495
1,475
893
1,776
1,163
1,948
1,012
1,001
1,572
1,044
1,658
980
1,001
1,227
1,001
1,163
1,195
1,507
1,130
366
710
753
Transacted
Price ($)
1,230,000
570,000
718,000
2,050,000
1,160,000
2,268,000
1,480,000
2,337,600
1,200,000
1,100,000
1,660,000
1,045,000
1,805,600
980,000
988,000
1,150,000
910,000
1,280,000
1,255,000
1,350,000
900,000
590,000
830,000
810,000
Price
Tenure
($ psf)
985
99
1,471
FH
1,450
FH
1,390
FH
1,298
FH
1,277
99
1,273
FH
1,200
FH
1,186
99
1,099
FH
1,056
99
1,001
FH
1,089
FH
1,000
99
987
FH
937
99
909
99
1,101 999
1,050
FH
896
999
796
99
1,612
99
1,168
99
1,075
99
Page | 20

Postal
District
19
19
19
20
21
21
21
21
21
23
23
23
23
25
25
26
27
Project Name
TREASURE GARDENS
FONTAINE PARRY
CHUAN PARK
LAKEVIEW ESTATE
THE STERLING
HIGHGATE
SOUTHAVEN II
HUME PARK I
SHERWOOD TOWER
HILLBROOKS
GUILIN VIEW
PARKVIEW APARTMENTS
REGENT HEIGHTS
ROSEWOOD
ROSEWOOD
HONG HENG MANSIONS
YISHUN SAPPHIRE
Area
(sqft)
818
1,270
1,851
1,615
1,442
1,227
1,335
1,270
1,539
700
1,281
1,119
1,033
1,184
1,173
1,302
1,206
Transacted
Price ($)
860,000
1,290,000
1,680,000
1,408,000
2,100,000
1,330,000
1,368,375
1,270,000
1,258,000
795,000
1,115,000
920,000
800,000
1,026,888
995,000
960,000
860,000
Price
Tenure
($ psf)
1,051 FH
1,016 999
907
99
872
99
1,456 FH
1,084 FH
1,025 999
1,000 FH
817
99
1,136 FH
870
99
822
99
774
99
867
99
848
99
737
FH
713
99

Back to Contents
Page | 21
Issue 94
CONTENTS
p2
HDB New Flat Prices to Fall by 30%?
p7
Property Buying Tip #10: Co-Ownership
p8
p15

(February 20 February 26)
FROM THE
EDITOR

Im glad to announce that the 2012Q4

URA data has been updated for
PropertyMarketInsights.com members.
>> Click here to find out more <<
Hope you like it!
Mr. Propwise
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HDB New Flat Prices to Fall by 30%?

By Mr. Propwise
In a recent parliamentary speech, Minister
Khaw Boon Wan suggested that his Ministry
is looking at ways to bring Build-To-Order
(BTO) flat pricing in non-mature estates down
to four years of salary, where it was before
the current property bull market started more
than six years ago, down from the current 5.5
times. The media has suggested that this
means a potential fall of 30% for BTO prices,
which would be disastrous for both HDB
resale flat and mass market private property
prices.
Back to Contents
Page | 2

New flat prices unlikely to fall by 30% on
an apples-to-apples basis
However, I believe such an outcome is very
unlikely to happen.
First, it is unclear what combination of
household income base and flat type Minister
Khaw is referring to. Even currently, most
households earning the median household
income can afford 4-room BTO flats in nonmature estates. Over the last two years, there
has been a gradual de-linking of BTO prices
from the resale market by increasing
subsidies and keeping BTO prices stable
even as resale prices rise. Now almost all
HDB first-timers buy new flats instead of
resale flats, reflecting the current attractive
pricing of BTO flats, at least on a relative
basis.
Also, the characteristics of such cheaper flats
could be different from the current HDB flats.
Back to Contents
They could be smaller, have shorter leases or

be located in less desirable estates. Thus it
would
not
be
an
apples-to-apples
comparison.
We should not forget that home ownership

has crossed 90% in Singapore, one of the
highest levels in the world. Policies that are
implemented will have to avoid negatively
impacting the majority of Singaporeans who
already own a home. Thus while drastic
policies such as reinstating a pre-1971 rule
that HDB flats can only be sold back to the
Housing Board have been suggested, I
believe that they are highly unlikely.
I also believe that its unlikely that we will see
new BTO launches of flats at prices that are
30% lower than those of recent neighboring
launches. Imagine the angry outcry from
those who had previously bought! The whole
point of these changes to the housing policy
Page | 3

is to placate angry Singaporeans, and not
piss off the silent majority who already own
property.
Deflating the property bubble
Instead, the governments focus is on
controlling
the
property
market
and
preventing prices from rising further to create
(or more accurately, inflate) a property
bubble. Even the media has been
admonished for their role in highlighting
resale flats that go for record high prices.
One way the government hopes to cool the
market is by increasing supply. Minister Khaw
announced that 25,000 BTO flats would be
launched in 2013, a slight increase from the
23,000 previously announced by the HDB in
January. Compared to the roughly 25,000 in
2011 and 27,000 in 2012, the pipeline of BTO
flats in 2013 has been kept stable, higher
Back to Contents
than the 15,000 or so marriages each year, in

order to clear the demand backlog.
There is also the hope that the large
upcoming supply of homes 30,000 units to
be completed this year, 50,000 in 2014,
54,000 in 2015 and 63,000 in 2016 will help
to moderate price and rental increases.
Minister Khaw also pointed out that as
Singapores years of high GDP and wage
growth in the 7% to 10% range are over,
property prices (and especially HDB flat
prices) are unlikely to rise as quickly in the
future as they have done so as in the past.
But is the property market out of control?
The problem is that property prices in
Singapore are not being driven by purely
fundamental factors such as wage growth,
but also by the sustained low interest rate
environment which the government has no
Page | 4

control over due to Singapores monetary
policy.
The affordability of property is a function of
not just property prices and income, but also
by the cost of financing (i.e. mortgage rates).
Add to that Singapores open economy and
attractiveness to foreigners as a place to park
their wealth (due to factors such as the low
tax rates, stability, strong Singapore dollar
etc), and the result is the continuing strong
demand for property.
Thus despite seven (!) rounds of property
cooling measures since September 2009
(and various tweaks such as those
announced in the Budget 2013), both
volumes and price growth have remained
strong. If we really think about that, we can
only come to two conclusions.
First, government policy on the housing
Back to Contents
market is reactive and incremental they

watch the data on housing prices and
volumes and try to put in place incremental
policies to try and control the future direction
of the market.
Second, the measures have not been terribly
effective transaction volumes in the past
few years have been much higher than
previously, and prices have grown strongly
(the URA Property Price Index has risen by
37% since 2009Q3). So either the
government simply cannot do much to control
the market, or they have severely
underestimated the demand for property and
have introduced measures that are too weak
to tame the animal spirits in the market.
More cooling measures on the way?
The market seems to just shrug off each new
round of measures, while developers and
Page | 5

agents introduce gimmicks (such as ABSD
rebates, furniture vouchers and other forms of
hidden discounting) and play on buyer
psychology (e.g. using the 6.9 million
population target) to drum up demand for new
launches, which remains strong.
I believe that the strong property market
despite the multiple rounds of cooling
measures has now almost become an
embarrassment to the government, and thus
the risk of a new draconian set of property
measures is significant. If we make it to the
tenth round of cooling measures and the
property market is still going strong, would the
cooling measures become just a joke? So
every time prices and/or volumes make a new
high, brace yourself!
Back to Contents
Page | 6
Property Buying Tip #10: Co-Ownership

In Singapore, there are two forms of coownership for residential property.
(1) Joint Tenancy [right to survivorship]
Two or more parties have rights to the land as
if they were a single owner. It also implies the
right to survivorship i.e. when one party dies,
his or her share automatically passes on to
the other parties, over-riding any disposition
by a Will or the rules on intestacy, and the
process continues until the sole survivor
becomes the absolute owner.
(2) Tenancy-In-Common
survivorship]
[no
right
of
Unlike joint tenancy, interests in this form of

co-ownership contain no right of survivorship,
where land is held by two or more persons
Back to Contents
but words of severance are used in the

grant to show their intention to hold separate
(even if they are equal) shares in the land.As
such, if you are the sole owner or having a
Tenancy-In-Common
Ownership,
it
is
important to have a Will indicating the
property distribution.
When you buy a property with your friends
and/or relatives, besides discussing on the
shares, it is also vital to determine the exit
strategy of the investment property prior to
entering into a co-ownership contract.
from their book.
Page | 7

Residential
Slew of launches expected in March
With a slew of launches expected in March,
sales figure for the month is expected to be
strong. The launches expected include The
Trilinq in Clementi, Sennett Residence in
Potong Pasir, Urban Vista in Tanah Merah,
Bartley Ridge and Kingsford.Hillview Peak; all
are 99-year leasehold projects.
The Trilling, which is located near The
Clementi Mall and Clementi MRT Station, will
offer 200-250 of its 755 units for the initial
phase at an early-bird average price of about
$1,400-1,500 psf after discounts. There will
be two 36-storey towers with an attic, and a
Back to Contents
33-storey block housing 112 one-bedroom

units (538-603 sq ft), 192 two-bedroom units,
346 three-bedroom units, 94 four-bedroom
units and 11 penthouses (2,573- 4,456 sq ft),
some of which offer a double-volume, sixmetre floor-to-ceiling height in either the living
room or the master bedroom. Facilities
include a tennis court and three swimming
pools.
Meanwhile, Sennett Residence near Potong
Pasir MRT station is expected to be launched
at an average price of $1,400 psf, with the
absolute prices starting from $700,000 for a
485-sqft one-bedroom unit and ending at
$5-6 million for the most expensive
penthouse.
Page | 8

It offers a total of 332 residential and three
shop units in four blocks linked by a sky
terrace which will house a 50-metre infinity
pool and a sky-gym. Sizes of the one, two,
three and four-bedroom apartments and
duplex penthouses will range from 485 sq ft
to 4,252 sq ft.
Also expected for a March launch are the
582-unit Urban Vista in Tanah Merah
(expected average price of $1,300-1,400 psf),
868-unit Bartley Ridge near Bartley MRT
Station ($1,300 psf) and Kingsford.Hillview
Peak, which has around 500 units named.
Public housing policies under review to
bring down BTO prices
To ensure the affordability of public housing,
the housing policy would need to be reviewed
with the changing demographics and
Back to Contents
economy in mind. In addition to cooling

measures such as increasing the BTO flat
supply from 23,000 to 25,000 flats, HDB will
also be looking into designing alternative
housing options.
Meanwhile, first-timer singles aged 35 and
above who earn up to $5,000 per month will
be able to buy new two-room flats directly
from the HDB with effect from the July BTO
exercise, with the first BTO exercise in
Sengkang. They will get to choose between
35-sq-m and 45-sq-m flats in non-mature
estates.
Other changes announced also include the
extension of the Parenthood Priority Scheme
to pregnant mothers with effect from the May
BTO launch. This will be further extended to
cover those already married but without
children next year. The Parenthood
Provisional Housing Scheme, previously only
Page | 9

an option for first-timer married couples with a
child, will be extended to married HDB firsttimers without children. Second-timers
intending to downgrade will also benefit from
the increased quota for two-room and threeroom flats in non-mature estates doubled
from 15% to 30%. Of the 30%, 5% will be
reserved for divorcees or widows with below
16 years. The debarment period from
subsidised flats for divorcees will also be
shortened from five years to three years.
In addition to building more studio
apartments, a new Studio Apartment Priority
Scheme (SAPS) where half of the supply of
studio apartments will be set aside for seniors
who apply for one near their current flat or
near where their children live will be
introduced. This will replace both the Ageingin-Place Priority Scheme, and the Married
Child Priority Scheme.
Back to Contents
Measures to prevent growth of foreigner

enclaves in some HDB blocks such as a cap
on approvals for all new and renewal of HDB
tenancy agreements, involving non-citizens,
to one-and-a-half years will also be
introduced.
Freehold Kovan Lodge
collective sale market
back
on
the
After an unsuccessful earlier attempt, Kovan

Lodge, a freehold four-storey development
with 16 apartments of 1,200 sq ft to 1,800 sq
ft has been put up for collective sale by
tender again, with an asking price of under
$30 million or around $790 psf of potential
GFA with no development charge. This is
lower than the earlier asking price of $31.5
million. Zoned for residential use, the 27,090
sq ft site has a 1.4 GPR. Buyers of Koan
Page | 10

lodge may be able to buy an adjoining 505 sq
ft plot of state land. The tender will close on
March 26.
near Potong Pasir MRT and The Trilinq at

Clementi showed a marked difference as a
result of their locations.
332-unit Sennett Residence near Potong

Pasir MRT station had sold 175 units at an
average price of $1,450 psf after upfront
discounts of 10% plus 8%. Units sold include
a 2,600 sq ft penthouse and a 3,600 sq ft
penthouse at $3.5 million and $5.2 million
respectively. Absolute prices start from
$734,000 for a 485 sq ft one-bedroom unit.
Freehold residential project the Maisons in

Braddell to be launched by months end
The Maisons consist of the twin residences R
Maison and E Maison are are expected to be
priced at around $1,350-1,450 psf, 10-15%
from what was originally planned in response
to the recent hike in ABSD rates. There will be
a total of 175 units in the project, ranging from
570 sq ft for a one-bedroom apartment to
2,357 sq ft for a two-storey penthouse.
Steady sales at Sennett Residence brisk;
less so at The Trilinq
Despite the similar average pricing of $1,400$1,500 psf, the sales of Sennett Residence
Back to Contents
On the other hand, 755-unit Trilinq at

Clementi is said to have sold around 85 units
of its 200 released units at an average price
of $1,400-$1,500 psf. The prices for each unit
vary from $1,200 psf to $1,800 psf depending
on whether the units have void space which
would usually mean a lower psf price. 38% of
the units offer a double-volume, six-metre
floor-to-ceiling height. One reason for the
slower sales is the plan to sell the project over
Page | 11

its construction period rather than selling all
within a month and another is that they only
process options only for buyers who were
physically present. The lowest absolute price
was $855,000 for a 538 sq ft one-bedroom
unit and the lowest absolute price for a 1,518sq-ft unit four-bedroom unit with void space
was $1.82 million.
Freehold Ultra Mansion sold in collective
sale for $149.13 m
13-storey Ultra Mansion which sits on a
45,512 sq ft site at 4, Derbyshire Road near
Novena MRT station, has been sold for
$149.13 million or $1,170 psf of potential GFA
with no development charge payable. Zoned
for residential use, the site has a 2.8 plot ratio
and 140,000 sq ft potential GFA, including a
10% bonus gross floor area allowance, which
can generate 170 one- and two-bedroom
Back to Contents
units ranging from 600 sq ft to 900 sq ft each.

Commercial
2HR at 2 Havelock Road sold to Guthrie at

$283m
Seven-storey commercial building 2HR which
sits on a 54,560 sq ft site with a remaining
lease of about 69 years has been sold at
$282.88 million, or $1,626 psf based on its
current NLA of 173,912 sq ft (36,992 sq ft
retail and 136,920 sq ft offices). Located near
Clarke Quay MRT station and the future
Chinatown MRT station on the Downtown
Line, the building offers 95 basement carpark
lots. It offers a net yield of 3.2% based on its
current average monthly rental of about $6
psf. Outline approval for redevelopment into a
12-storey hotel has been given.

Page | 12

Steady sales for 99-year SBF Centers
small offices; sales slower for medical
suites
60% of the 196 small strata office units (5901,500 sq ft) on the 10th to 28th levels on the
10th to 28th levels at SBF Center at Robinson
Road/Cecil Street near Tanjong Pagar MRT
Station is said to have been released, of
which most of which have been sold. The
units are said to be priced at $3,200 psf after
100 of them had been sold. It is believed that
the top-three levels consisting of whole-floor
office units of 10,850 sq ft have yet to be
released.
On the other hand, sales for the 48 medical

suites (680-1,300 sq ft) located on Levels 3 to
5 and priced at $3,800-$4,000 psf are slower.
This could be due to the lack of an existing
hospital or key medical facility nearby.
Back to Contents
Four strata retail units at freehold

Queensway Shopping Centre up for sale
The four retail strata units totalling 10,388 sq
ft in size is asking for at least $32 million or
$3,080 psf. The four units include the streetfacing second-floor 2,734-sq-ft unit currently
leased to McDonald's and three adjacent
units on the third-floor totalling 7,654 sq ft that
are leased to Sports Link. The monthly rental
of $50,000 would mean a nearly 2% net yield
based on the price of $32 million. The four
units make up 11% of the share value in the
overall
development
which
includes
apartments. While the sellers prefer to sell to
a single buyer, they are open to selling in two
lots (one on second-floor, another on the
third) if it brings in more profit. The
expression-of-interest exercise will closes on
April 2.

Page | 13

Freehold Ibis Novena sold for $150m
The 241-room Ibis Novena at Irrawaddy Road
has been sold for $150 million or $622,000
per room. This will mean substantial profits
for the owner, the Kum family, which bought it
at $118 million less than two years ago. While
the hotel faced competition from two new
hotels in the area - the 405-room Days Hotel
Singapore and the the 384-room Ramada
Singapore, both at Zhongshan Park, the
buyer, Alpha Investment will gain from the fact
that the hotel is managed by the wellestablished Accor group and the resilience of
such three-star hotels in weathering market
cycles.
Back to Contents
Page | 14
Non-Landed Residential Resale Property Transactions for the Week of Feb 20 Feb 26
Postal
District
5
5
5
5
9
9
10
10
10
10
10
10
10
12
12
13
15
15
15
15
15
15
15
16
Project Name
PARC IMPERIAL
THE GRANDHILL
HERITAGE VIEW
PASIR PANJANG COURT
LEONIE PARC VIEW
THE INSPIRA
ARDMORE PARK
GALLOP GREEN
GALLOP GREEN
LATITUDE
SOMMERVILLE PARK
BALMORAL HEIGHTS
BOTANIKA
THE ARTE
THE CALLISTA
D' ALMIRA
ONE AMBER
THE ESTA
CASERO @ DUNMAN
ARTHUR MANSIONS
AQUENE
STILLZ RESIDENCE
COSTA DEL SOL
Back to Contents

Tenure
388
698,000 1,801
FH
926 1,313,000 1,418
FH
1,195 1,440,000 1,205
99
1,378 1,280,000 929
FH
2,013 4,850,000 2,409
FH
1,259 2,168,888 1,722
FH
2,885 10,500,000 3,640
FH
3,692 7,310,160 1,980
FH
3,563 7,054,740 1,980
FH
2,788 5,322,500 1,909
FH
1,948 3,200,000 1,642
FH
1,163 1,885,000 1,621
FH
2,605 4,200,000 1,612
FH
1,399 1,835,000 1,311
FH
1,109 1,080,000 974
999
947 1,130,000 1,193
FH
1,335 2,020,000 1,513
FH
1,066 1,600,000 1,501
FH
1,345 1,860,000 1,382
FH
646
875,000 1,355
FH
1,227 1,650,000 1,345
FH
753
935,000 1,241
FH
1,012 1,110,000 1,097
FH
1,475 1,965,000 1,333
99
Postal
District
16
16
16
17
20
21
21
21
21
23
23
28
Project Name
THE DAFFODIL
CASAFINA
CASAFINA
GOLDENHILL PARK CONDOMINIUM
JARDIN
THE CASCADIA
JARDIN
REGIS MANSIONS
MAYSPRINGS
REGENT GROVE
SERENITY PARK

Tenure
732
700,000
956
FH
1,528 1,460,000 955
99
1,345 1,253,500 932
99
1,302 1,130,000 868
FH
1,335 1,850,000 1,386
FH
1,701 3,146,850 1,850
FH
581 1,068,000 1,837
FH
1,722 2,910,000 1,690
FH
1,023 970,000
949
FH
915
825,500
902
99
1,259 1,018,888 809
99
1,324 1,280,000 967
FH

Page | 15
Issue 93
CONTENTS
p2
The 3 Critical Impacts of Budget

2013 for Property Owners
p9
p10
p16
Property Buying Tip #8: Property Tax

FROM THE
EDITOR

Im glad to announce that the 2012Q4

URA data has been updated for
PropertyMarketInsights.com members.
>> Click here to find out more <<
Hope you like it!
Mr. Propwise
(February 13 February 19)

Contribute
Advertise
News.

The 3 Critical Impacts of Budget 2013 for Property Owners

By Mr. Propwise
The recently announced Budget 2013 was full
of controversial measures such as the Wage
Credit Scheme and higher Additional
Registration Fees for expensive cars. One of
the key themes was a system of more
progressive taxes targeting the rich, and
nowhere was this clearer as in the
announcement of the new tiers of property
taxes.
1. Increase in property taxes for the top 1%

of owner-occupied homes
The tax structure for owner-occupied homes
will be revised so that roughly 950,000 of
Back to Contents
Page | 2

these homes that have an Annual Value of
less than $59,000 will enjoy tax savings of up
to $80.
The following new property tax structure will

be phased in over two years:
In contrast, the top 1% or about 12,000

owner-occupied homes will pay higher
property taxes, with the very high end hit
exponentially harder.
The current property tax structure for owneroccupied homes is as follows:
Back to Contents
Page | 3

The following table was presented to illustrate
the impact of the different types of properties:
Will this lead to a correction in GCBs? I dont

think so. While the percentage increase is
large, the absolute quantum of increase
(around $5,000 a year based on the
illustration) is barely noticeable for someone
who is able to shell out $20 to $30 million for
a home.
2. Increase in property taxes for the top
one-third of investment properties
The message is clear most owner-occupied

homes will have flat to lower property taxes,
but for the very richest who live in centrally
located landed properties or Good Class
Bungalows (GCB) their property taxes could
go up by 70% or more.
Back to Contents
The impact of the increase in property taxes

for non-owner-occupied homes is more
broad-reaching, with an estimated top 33% of
such properties facing higher taxes from the
new structure, while therell be no change for
the other 67% or 112,000 non-owneroccupied properties.
The current flat property tax rate of 10% of
Annual Value for investment properties will
Page | 4

be increased for properties with an Annual
Value of more than $30,000. The new
property tax rates will be phased in over two
years starting from 1 January 2014 based on
the following rates:
Back to Contents
The property tax rate for land and nonresidential properties remains unchanged at
10%.
The following table was presented to illustrate
the impact of the different types of properties:
Page | 5

From this table we can see that even
investors of a centrally located condominium
unit will be hit with a 20+% increase in
property taxes. If we assume the Annual
Value is equivalent to the rental received (the
Annual Values generally tend to be lower than
the market rentals), that means 12% of your
rentals will be going to pay taxes (versus 10%
currently).
For centrally located landed properties,

property taxes could soak up 16% of your
rental versus 10% previously, a large
increase.
3. Removal of tax refund for vacant
properties means higher effective taxes
for investment properties
One other change announced was that
vacant properties would no longer enjoy
property tax refunds with effect from 1
January 2014.
Back to Contents
Currently, vacant properties or those

undergoing repairs to get them fit for
occupation can get refunds for the periods
they are vacant for.
This will be removed and the net impact is

that the effective property taxes for investors
will increase as all investment properties will
experience vacant periods when they are
looking for tenants or between the end of one
tenancy and the beginning of another.
The impact of Budget 2013 on the property
market
I believe that the two bottom-line impacts of
the new property tax structure in Budget 2013
are:
#1 Soak the very rich Singaporeans who
live in expensive landed properties
#2 Discourage the ownership of high end
properties for investment by increasing the
Page | 6

holding costs
Whats the purpose of these measures?
I think 99% of the homeowners will have no

issues with #1, as its basically a redistribution
of wealth from the top 1% to the bottom 50%
who will get slightly lower property taxes of up
to $80 per year. I dont think itll have any
impact on the property market either as the
wealthiest Singaporeans will hardly notice the
$5,000 per year difference in property taxes
of their homes.
In a way, these measures seem strange to

me as the bubbly segment of the market
seems to be the mass market as opposed to
the luxury segment, but these measures do
not affect the mass market at all. While #2
could lead to a softening of luxury home
prices, conceivably only the top 10% to 20%
of households will be able to afford them
anyway.
#2, though, could adversely impact the high

end market as the top one-third of private
properties is affected. Together with the
removal of the refund for vacant properties,
the impact on property investors could be
significant, with the lowering of the potential
return of the property. This will discourage
property investors from buying, leading to a
reduction in demand for such properties.
Some pundits have suggested that shoebox

homeowners could benefit as they will likely
have a lower Annual Value, but I imagine that
most buyers of these homes are investors
and not owner-occupiers, so on the margin
there will be no difference to them.
Furthermore, the tighter foreign worker
policies including higher levies, cuts in the
Dependency Ratio Ceiling and tougher
Back to Contents
Page | 7

requirements to get an S Pass or
Employment Pass would mean that the
potential pool of renters for these units could
be shrinking.
On the whole, it seems to me that the new
property-related policies announced in
Budget 2013 are less about controlling the
property bubble and more about pleasing the
masses.
property blog Propwise.sg, a Chartered
Financial Analyst and resident real estate
analyst at PropertyMarketInsights.com, a site
to help property owners and investors make
profitable decisions in uncertain times. Click
here to learn more
Back to Contents
Page | 8
Property Buying Tip #8: Property Tax

In Singapore, property tax on the ownership
of property is based on the gross annual
value of the property.
For brand new property, it is liable for

property tax from the date of issue of the
Temporary Occupation Permit (TOP).
The gross annual value is determined on the

hypothetical assumption that the property is
vacant and to be let.

from their book.
In most instances, the lawyers would

apportion the tax liability for the seller and the
buyer during the completion of sale of the
property.
Back to Contents
Page | 9

Residential
Chee Hoon Ave GCB site sold for $22.9m
The 15,184 sq ft GCB plot located at 8 Chee
Hoon Ave had been sold for $22.9 million or
$1,508 psf of land area. It has a square
shape and a frontage of around 37m along
Chee Hoon Avenue. It is located near Botanic
Gardens, Cluny Court and Serene Centre,
and schools such Anglo-Chinese School,
Nanyang Primary and Raffles Girls' Primary.
Private home
upgraders
sales
driven
by
HDB
48% or 17,590 of the 36,887 home sales

were made by HDB upgraders in 2012, a
Back to Contents
17% increase from 2011s figure. This was

largely driven by sales in the primary market.
The increase in private home sales was
despite loan curbs in October 2011 and
mainly a result of the low interest rates and
the demand for private homes by HDB
upgraders.
Looking ahead, transaction volume is likely to
fall in the short term as a result of the latest
cooling measures, but will likely moderate in
the short term. Nevertheless, transaction
volumes is expected to hold since demand is
likely to remain strong as Singaporeans are
currently allowed to own both HDB flat and
private residential property, a policy which
may change in the future.
Page | 10

While mass-market private homes are likely
to remain affordable, rental yields may fall by
2-3% which may result in a fall in demand
from buyers looking for a high-yield
investment.
Two 99-year confirmed list residential
sites yielding 1,100 homes released
The first, a site at Kim Tian Road near Tiong

Bahru MRT station, can yield a potential of
500 units on its 473,000 sq ft maximum GFA.
The site with a maximum GPR of 4.0 is likely
to see five to 10 bids given its location, with a
top bid of $870-920 psf ppr or $411-435
million.
The second is a site with a maximum GPR of
3.0 at Sengkang West Way. It can potentially
yield 555 units on its 536,000 sq ft maximum
GFA. It is located along Sungei Punggol and
Back to Contents
near Layar and Fernvale LRT stations, and

enjoys a waterfront location. Four to eight
bids are expected for the site, with a top bid
of $400-450 psf ppr, or $214-241 million.
The tenders for the sites close on April 18 and

April 11 respectively.
Prices of non-landed private homes rise in
January
According to NUSs Singapore Residential
Price Index (SRPI), prices of non-landed
private homes saw a 0.3% increase in
January from December, with the prices of
small units (up to 506 sq ft) islandwide
increasing the most by 2.6%, compared to a
0.7% in December. This is likely a result of
the recent cooling measures, which may have
led to an increase preference for the more
affordable small units.
Page | 11

Resale prices of homes (excluding small
units) in the Central Region saw a 0.7%
increase in January, while the resale prices in
the Non-Central Region (excluding small
units) fell by 0.1%. The RPI is expected to fall
by 1-3% in 2013 as a result of the cooling
measures
and
weaker
demand.
Nevertheless, the sub-index for the NonCentral Region is likely to increase in the next
few months given the strong demand and
demand for resale homes will be supported
by the low interest rates and price gap
between resale homes and new homes.
Shoebox units to benefit from new tax

policy
The latest tax structure announced on Feb 25
could benefit shoebox units. Under the new
structure, the first $8,000 annual value (AV)
will not be subject to taxes compared to the
Back to Contents
current threshold of $6,000 AV and the tax

rate for the next $47,000 AV will remain at
4%. Since most such shoebox units have
annual gross rental of less than $55,000, they
are likely to be subject to lower taxes under
the new policy. However, homes bought for
investment purposes will see higher taxes
imposed since the property tax rate for nonowner-occupied residential properties and
vacant residential properties is now more
than twice the rate for owner-occupied
properties, assuming similar AV. High-end
homes will see not only higher property tax
rates since most have a gross annual income
exceeding $55,000 but also the increased
ABSD rates. Most HDB flats however, are
unlikely to be affected by the new tax rules
given that gross annual rental income are
usually under $30,000.
Page | 12

Commercial
Four more strata office units in Samsung
Hub up for sale
Following Church Street Holdings offer of six

strata units recently, four more strata office
units on the 14th floor of 999-year leasehold
30-storey Samsung Hub in Raffles Place
have been put up for sale at $3,300 psf or
$43.3 million, a gross yield of more than 3%
per annum. The strata area of these four units
ranges from 2,906 sq ft to 3,875 sq ft, with a
total of 13,110 sq ft. The tender will close on
March 28.
Punggol F&B site attracts nine bids
The 15-year leasehold 11,606.6 sq m site at
Punggol Point zoned for food and beverage
(F&B) use has attracted a total of nine bids,
Back to Contents
with the top bid of $11.4 million or $352 psf

ppr or $3,789.6 per sq m of GFA from
Fragrance Group. Its maximum permissible
GFA which includes the outdoor refreshment
area is 3,000 sq m.
Yio Chu Kang Rd Freehold space up for
sale
The 13,394 sq ft freehold space at 158 Yio

Chu Kang Road which can be used for
transport facilities and parking of vehicles
such as transport depots, carparks and petrol
kiosks has been put up for sale. The owner is
also willing to consider the sale on a 30-year
leasehold basis. It has a frontage located on
a main arterial road between Serangoon
Gardens and Serangoon Central. It could
potentially be developed for other usage but
that would require approval from the
Page | 13

authorities. The EOI exercise ends on March
27 at 4pm.
Hotel and Commercial DC rates saw
highest increase in recent revision
In the latest revision of development charge
(DC) rates, the average DC rate for
residential landed use increased by 4% while
the rate for non-landed use remained
unchanged. The average DC rate for
industrial use increased 0.6%. The highest
increase came from the 26% increase in the
average DC rate for commercial use, followed
by 26% for hotel use, likely in response to
strong land bids at state tenders in the past
half year.
Specifically,
the
highest
increase
in
commercial DC rate of 39% was in
geographical sectors 114 and 115 (which
Back to Contents
include Yishun, Sembawang, Woodlands,

Choa Chu Kang and Jurong West), followed
by a 33% increase in sector 60 (which
includes Thomson Road, Irrawaddy Road and
Moulmein Road), sector 106 (which includes
Seletar) and sector 107 (which includes
Upper Thomson and Sembawang Hills). The
smallest increase of 9% came from Sector 42
(near Orchard MRT Station). 116 of the 118
geographical sectors saw an increase in DC
rates while the two remaining sectors had DC
rates left unchanged.
The highest increase of 46% for the hotel DC
rate was in Sector 112 (which includes the
Jurong Lake District), followed by 42% in
Sector 60. Sectors 58, 61 and 62 each saw a
34% increase in DC rates. Like the above,
116 sectors saw an increase in the DC rates
while the remaining two sectors were left
unchanged.
Page | 14

4 sectors had their industrial DC rates
changed; of which there are sector 115 (26%)
and sector 114 (16%). The rest were
unchanged. For the landed residential DC
rates, there were increases of 7-15% in 41
sectors with no changes in the rest. The
highest increase of 15 per cent was in
Sectors 92, 93, 95, 96 and 97.
Back to Contents
Page | 15
Non-Landed Residential Resale Property Transactions for the Week of Feb 13 Feb 19
Postal
District
3
3
4
5
5
5
8
9
9
9
10
10
10
10
10
10
11
11
11
12
14
14
14
15
15
Project Name
THE ANCHORAGE
ENG HOON MANSIONS
MARINA COLLECTION
GOLD COAST CONDOMINIUM
VILLA DE WEST
CLYDES RESIDENCE
THE METZ
RESIDENCES AT 338A
ASPEN HEIGHTS
LATITUDE
SOMMERVILLE PARK
VALLEY PARK
THE CORNWALL
VIZ AT HOLLAND
RIDGEWOOD
CITY EDGE
NOVENA COURT
THE ARCADIA
D'LOTUS
COSMO
BLISS VILLE
SIMSVILLE
MEYER RESIDENCE
AMBER RESIDENCES
Back to Contents

Tenure
1,765 2,150,000 1,218
FH
1,421 1,400,000
985
FH
2,390 7,050,500 2,950
99
1,808 2,038,445 1,127
FH
1,378 1,520,000 1,103
FH
1,442 1,300,000
901
99
1,023 1,210,000 1,183
FH
581 1,600,000 2,753
FH
1,313 2,180,000 1,660
FH
1,582 2,430,000 1,536 999
2,680 5,219,800 1,948
FH
1,302 2,108,000 1,618
FH
1,109 1,680,000 1,515 999
2,110 2,700,000 1,280
FH
1,141 1,450,000 1,271
FH
1,744 2,000,000 1,147 999
1,152 1,750,000 1,519
FH
861 1,240,000 1,440
FH
6,566 7,650,000 1,165
99
807 1,050,000 1,301
FH
420
615,000
1,465
FH
1,249 1,450,000 1,161
FH
1,249 1,250,000 1,001
99
1,152 2,000,000 1,736
FH
1,249 1,990,000 1,594
FH
Postal
District
15
15
18
19
19
20
20
20
21
21
21
21
22
23
23
23
23
25
27
Project Name
EAST VIEW 18
EAST BAY GARDENS
LIVIA
BREEZY MANSIONS
RIO VISTA
SEASONS VIEW
THE WINDSOR
BRADDELL VIEW
HIGHGATE
SIGNATURE PARK
SHERWOOD TOWER
PARC OASIS
HILLVIEW RESIDENCE
THE MADEIRA
CASHEW HEIGHTS CONDOMINIUM
REGENT GROVE
CASABLANCA
NORTHWOOD

Tenure
1,173 1,050,000
895
FH
1,711 1,260,000
736
99
2,680 2,110,000
787
99
1,012 1,080,000 1,067 999
1,378 1,250,000
907
99
1,141 1,200,000 1,052
99
1,798 1,680,000
935
FH
1,615 1,450,000
898
99
1,636 1,750,000 1,070
FH
1,389 1,405,000 1,012
FH
1,152 1,050,000
912
999
1,830 1,320,000
721
99
1,227 1,190,000
970
99
1,249 1,300,000 1,041 999
1,270 1,223,000
963
99
1,658 1,500,000
905
999
1,259 1,068,000
848
99
1,119 960,000
858
99
1,335 1,235,000
925
FH

Page | 16

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Issue 126

Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.

How to Value Strata-Title Commercial Property

Singapore Property News This Week

Resale Property Transactions

Welcome to the 126th edition of the

Want to get your brand, product, service or property listing out to

SINGAPORE PROPERTY WEEKLY Issue 126

How to Value Strata-Title Commercial Property

SINGAPORE PROPERTY WEEKLY Issue 126

more concerned about the future cash flows

In June 2013, the Singapore government

pipeline supply in the market, investors are

borrower is applying for. According to DTZ

generated and the potential appreciation of

in charge of marketing such commercial

Singapore, has been appointed to market

Yishun Avenue 9. The developer has

As the operating environment becomes more

component (Junction Nine) into 146 units for

potential higher interest rates and large

SINGAPORE PROPERTY WEEKLY Issue 126

which may not provide sufficient details to

Most marketing materials provide the

In order to predict the future cash flows of the

SINGAPORE PROPERTY WEEKLY Issue 126

revenues to determine net operating income

SINGAPORE PROPERTY WEEKLY Issue 126

Other Tenant Revenue

Effective Gross Revenue

Net Operating Income

Total Leasing & Capital Costs

Cash Flow Before Debt Service

Total Debt Service

Cash Flow After Debt Service

Source: ARGUS Software (Asia Pacific) estimates only

SINGAPORE PROPERTY WEEKLY Issue 126

Purchase & Investment

CIMB Term Loan

Source: ARGUS Software (Asia Pacific) estimates only

SINGAPORE PROPERTY WEEKLY Issue 126

flow projections and make necessary

Table 3: An example of projecting leasing activity

Expiration Minimum Lease Lease

Source: ARGUS Software (Asia Pacific) estimates only

SINGAPORE PROPERTY WEEKLY Issue 126

A major data source for the real estate

market, causing properties to be overvalued

SINGAPORE PROPERTY WEEKLY Issue 126

SINGAPORE PROPERTY WEEKLY Issue 126

Singapore Property This Week

new leasehold and new freehold condo sales

SINGAPORE PROPERTY WEEKLY Issue 126

GCB on Leedon Road up for sale

65% of 50 residential units released at The

SINGAPORE PROPERTY WEEKLY Issue 126

Pte Ltd, a special purpose company. The

SINGAPORE PROPERTY WEEKLY Issue 126

remaining lease till Feb 29, 2088, and an

(Source: Business Times)

Two industrial plots located at 9 Joo Koon

Nam Cheong buys office space at Suntec