Issue 276

Copyright 2011-2016 www.propwise.sg. All Rights Reserved.

CONTENTS
p2

FROM THE

EDITOR

The MAS has Fine-Tuned the

Welcome to the 276th edition of the

Singapore Property Weekly.

TDSR Is it a Loosening or Not?

Hope you like it!

p6

Singapore Property News This Week

p8

Resale Property Transactions

Mr. Propwise

(August 22 August 26)

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SINGAPORE PROPERTY WEEKLY Issue 276

The MAS has Fine-Tuned the TDSR Is it a

Loosening or Not?
By Mr. Propwise

On 1 September 2016 the Monetary of

Authority of Singapore (MAS) announced a
fine-tuning of the refinancing rules under the
Total
Debt
Servicing
Ratio
(TDSR)
framework, in order to allow borrowers who
are unable to refinance their existing property
loans due to the application of the TDSR
framework to do so. The MAS says it is
making the changes in response to feedback
from borrowers who were previously unable
to refinance their existing property loans due
to this.

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SINGAPORE PROPERTY WEEKLY Issue 276

What changed?

the TDSR threshold will still apply.

For owner-occupied residential properties,

borrowers may now be exempted from the
TDSR framework when they refinance their
housing loan even if they bought it after the
introduction of the TDSR.

Only a small group of borrowers will be

affected by this fine-tuning it was reported
that only about 2.5 per cent of home loans
made after the TDSR rules were implemented
were currently above the 60 per cent
threshold.

For investment properties (i.e. second

property and above), borrowers can refinance
above the TDSR threshold of 60 per cent,
regardless of when the property was
purchased, if they meet two conditions:
i. They commit to a debt reduction plan to
repay at least 3 per cent of the outstanding
balance over a period of not more than 3
years; and
ii. They fulfil their financial institutions credit
assessment.

So is this a loosening?
Not officially.
In fact, the MAS is worried enough that
people
(read:
property
agents
and
developers) will see this action as a lifting of
the clampdown on the property market that it
included a line in their announcement to
emphasize that these tweaks do not
represent a relaxation of property market
cooling measures.

If they dont meet the above two conditions,

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SINGAPORE PROPERTY WEEKLY Issue 276

They further caution borrowers to exercise
prudence and reduce their debt burdens, as
the current low interest rate environment will
not persist indefinitely. Borrowers will face
higher mortgage repayments when interest
rates rise.
But these tweaks will take some pressure off
the property market by preventing any fire
sales of properties by marginal borrowers
who might have been caught under the
previous rules. As Ku Swee Yong, CEO of
Century 21 said when interviewed by Today:
I think (MAS) is responding to the fact that
there are more and more distressed cases on
the ground. Those who bought in 2011-2012
when the market is reaching its peak, they
are now collecting their keys and may not find
the rental income to support (their loan
repayments). Today, when interest rates are
still low, refinancing may relieve their burden.
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This fine-tuning should not significantly affect

the demand for property, so I dont believe
well see prices heading up because of it.
Dealing with a thirst
borrower complacency

for

yield

and

The extended period of low interest rates has

led to a thirst for any assets with a yield and
complacency among borrowers that the
current low interest rates will persist
permanently. If interest rates do rise
significantly, this might come as a shock and
put marginal borrowers at risk of defaulting on
their loans.
With property prices having corrected less
than 10% from the 2013 peak, I believe the
government still wants to see property prices
trend further downwards before lifting the
cooling measures.

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SINGAPORE PROPERTY WEEKLY Issue 276

And they might get to see that with the help of
weak economic growth, increased job losses
(as I write this Ive just seen the headline of
global bank Barclays Plc cutting about 100 IT
jobs in Singapore), and a possible Federal
Reserve interest rate hike later this year.
By Mr. Propwise, the founder of Singapore
property blog www.propwise.sg, which aims
to help people make better real estate buying,
selling, renting and investing decisions.

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SINGAPORE PROPERTY WEEKLY Issue 276

Singapore Property This Week

Residential
Victoria Park Villas semi-Ds priced at
S$4.4m to S$7.6m

CapitaLand is launching 106 semi-detached

houses for S$4.4 million to S$7.6 million each
and three bungalows for S$11 million to S$12
million each in Victoria Park Villas this
Saturday. Since the project's soft launch
about a month ago, some seven semi-Ds
have been sold to Singaporeans at an
average S$4.5 million. Based on useable
area, the average pricing for the project is
S$1,200 to S$1,400 per square foot (psf).

Former HUDC estate in Potong Pasir up

for collective sale
Raintree Gardens, a 175-unit residential
development in Potong Pasir, has just been
launched for collective sale. The tender was
put up by JLL on Wednesday, after more than
80 per cent of Raintree Gardens owners gave
their consent to the collective sale. The sales
is expected to reach a minimum price about
S$1.8 million per unit or S$759 per square
foot per plot ratio on the potential gross floor
area.

(Source: Business Times)

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 276

Small completed condo prices fall 4.4 per
cent compared to last year
Based on flash estimates for July 2016
released on Monday, the Singapore
Residential Price Index (SRPI) for small units
of up to 506 sq ft islandwide has contracted
4.4 per cent on a year-on-year basis. JLL
national director Ong Teck Hui the weak
performance can be attributed to new projects
being better able to meet the needs of smallunit buyers, drawing them away from the
resale market.
(Source: Business Times)

Commercial
Activity in strata office
shophouses remain low

market

and

Activity in the strata office market and

shophouse segments remained low as the
number and value of caveats continue to fall.
Strata office transactions fell to 115 deals
worth about S$400 million in the first half of
this year, compared to 119 deals worth S$501
million in the second half of last year.
Shophouse transactions also slipped to 35
deals worth about S$227 million, down from
47 deals worth some S$300 million. Both
strata office and retail markets continue to be
affected by softening economic and business
outlook and rising competition from landlords.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 276

Non-Landed Residential Resale Property Transactions for the Week of Aug 22 Aug 26
Postal
District
3
3
4
4
4
4
4
5
5
9
9
9
9
9
9
9
9
9
9
9
9
9
9
10

Project Name
ALEXIS
DOMAIN 21
CARIBBEAN AT KEPPEL BAY
THE INTERLACE
THE INTERLACE
THE INTERLACE
THE INTERLACE
THE ROCHESTER
FABER CREST
OUE TWIN PEAKS
OUE TWIN PEAKS
THE METZ
CAIRNHILL RESIDENCES
CAIRNHILL RESIDENCES
MARTIN PLACE RESIDENCES
THE PATERSON EDGE
SCOTTS HIGHPARK
WATERMARK ROBERTSON QUAY
UE SQUARE
UE SQUARE
THE QUAYSIDE
CAIRNHILL PLAZA
PEACE CENTRE/MANSIONS
ARDMORE THREE

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Area
(sqft)
398
883
1,227
1,873
1,873
2,056
2,056
1,302
1,270
1,399
1,055
570
904
1,238
1,044
1,281
4,209
947
1,152
1,173
1,130
2,820
2,605
1,776

Transacted
Price ($)
675,000
1,388,000
1,795,000
2,110,000
2,093,000
2,282,000
2,171,000
1,550,000
1,080,000
4,099,070
2,626,000
1,380,000
1,850,000
2,480,000
2,030,000
2,360,000
7,500,000
1,600,000
1,680,000
1,668,000
1,440,000
3,500,000
1,580,000
6,474,280

Price
Tenure
($ psf)
1,695
FH
1,573
99
1,463
99
1,127
99
1,117
99
1,110
99
1,056
99
1,190
99
850
99
2,929
99
2,489
99
2,419
FH
2,046
FH
2,003
FH
1,944
FH
1,842
FH
1,782
FH
1,689
FH
1,459 929
1,422 929
1,274
99
1,241
FH
607
99
3,645
FH

Postal
District
10
10
10
10
10
10
10
11
11
11
12
12
14
14
14
14
15
15
15
15
15
15
15
15

Project Name
D'LEEDON
THE DRAYCOTT
D'LEEDON
URBAN EDGE @ HOLLAND V
DUCHESS RESIDENCES
VALLEY PARK
D'LEEDON
NEWTON SUITES
RESIDENCES @ EVELYN
MINBU COURT
BEACON HEIGHTS
BEACON HEIGHTS
WATERBANK AT DAKOTA
REZI 26
D'WEAVE
ATRIUM RESIDENCES
THE MEYERISE
THE SHORE RESIDENCES
THE SHORE RESIDENCES
VIBES @ EAST COAST
IMPERIAL HEIGHTS
SILVERSEA
SILVERSEA
ONE AMBER

Area
(sqft)
635
2,637
1,076
958
1,464
1,701
2,228
1,238
2,250
1,991
926
1,948
624
452
581
1,227
1,313
893
1,292
366
452
1,496
1,518
1,335

Transacted
Price ($)
1,200,000
4,350,000
1,772,000
1,518,888
2,300,000
2,480,000
2,945,000
2,398,000
3,388,000
1,750,000
990,000
1,788,000
1,100,000
630,000
750,000
1,130,000
2,561,000
1,430,000
1,880,000
525,000
630,000
2,080,000
1,975,000
1,680,000

Price
Tenure
($ psf)
1,890
99
1,649
FH
1,646
99
1,585
FH
1,571 999
1,458 999
1,322
99
1,937
FH
1,506
FH
879
FH
1,069 999
918
999
1,762
99
1,394
FH
1,290
FH
921
FH
1,950
FH
1,601 103
1,455 103
1,435
FH
1,394
FH
1,390
99
1,301
99
1,259
FH

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SINGAPORE PROPERTY WEEKLY Issue 276

Postal
District
15
15
15
15
15
15
15
15
16
16
16
16
16
17
17
17
19
19
19
19
19
20
20
21
21
21

Project Name
PARADISE PALMS
COTE D'AZUR
EASTERN LAGOON
SUNSHINE RESIDENCE
GEMINI APARTMENTS
LIVINGSTON MANSIONS
COSTA RHU
VENTURA VIEW
BEDOK RESIDENCES
PARBURY HILL CONDOMINIUM
EAST MEADOWS
THE BAYSHORE
AQUARIUS BY THE PARK
AVILA GARDENS
FERRARIA PARK CONDOMINIUM
EDELWEISS PARK CONDOMINIUM
KOVAN RESIDENCES
FONTAINE PARRY
CHERRYHILL
CASA ROSA
RIO VISTA
THOMSON V ONE
RAFFLESIA CONDOMINIUM
FLORIDIAN
SUITES AT BUKIT TIMAH
SPRINGDALE CONDOMINIUM

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Area
(sqft)
1,184
1,313
1,378
958
1,625
2,034
1,442
764
678
1,464
1,216
1,184
1,206
603
1,378
1,281
1,281
1,184
1,023
1,281
1,378
420
1,195
1,658
377
1,130

Transacted
Price ($)
1,338,000
1,360,000
1,420,000
980,000
1,462,500
1,800,000
1,264,000
660,000
900,000
1,680,000
1,080,000
1,000,000
920,000
545,000
1,180,000
880,000
1,420,000
1,250,000
1,030,000
1,050,000
1,025,000
600,000
1,180,000
2,680,000
588,000
1,138,000

Price
Tenure
($ psf)
1,130
FH
1,036
99
1,031
FH
1,023
FH
900
FH
885
FH
876
99
864
FH
1,327
99
1,148
FH
888
99
845
99
763
99
904
FH
856
FH
687
FH
1,109
99
1,056 999
1,007
FH
820
99
744
99
1,429
99
988
99
1,617
FH
1,561
FH
1,007 999

Postal
District
21
22
23
23
26
26

Project Name
HILLVIEW GREEN
THE LAKESHORE
GLENDALE PARK
TREE HOUSE
BULLION PARK
SEASONS PARK

Area
(sqft)
1,173
861
1,033
1,959
1,259
1,249

Transacted
Price ($)
1,060,000
950,000
1,050,000
1,620,000
1,185,000
970,000

Price
Tenure
($ psf)
903
999
1,103
99
1,016
FH
827
99
941
FH
777
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.

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