Property TakeIs it time to recalibrate

policy measures?EP4

Market TrendSuccessful backdoor listing for Pacifi c Star Development EP9

OffshoreTan & Tan to launch KL’s Stonor 3 in Singapore

EP10

Gains & LossesSeascape unit suffers

$6.6 mil lossEP11

A PULLOUT WITH

MCI (P) 043/03/2016 PPS 1519/09/2012 (022805)

Visit TheEdgeProperty.com to find properties, research market trends and read the latest news THE WEEK OF FEBRUARY 20, 2017 | ISSUE 767

M A K E B E T T E R D E C I S I O N S

Revitalising Chip Eng Seng

Raymond Chia, executive chairman and group CEO of Chip Eng Seng Corp

SAM

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With the upcoming launch of Grandeur Park, new projects in Australia and a hotel in Maldives, the group is seeking to grow

its presence locally and abroad.See our Cover Story on Pages 6 to 8.

EP2 • THEEDGE SINGAPORE | FEBRUARY 20, 2017

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PROPERTY BRIEFS

The Prospex up for sale again at $70 milThe Prospex (above, left), a nine-storey commercial

building located next to Bugis+, has been put up for

sale by expressions of interest (EOI) again. This time

around, the indicative price is in excess of $70 mil-

lion, which translates to about $1,674 psf, based on

the existing gross floor area (GFA).

This latest guide price seems to be lower than the

$80 million indicative price when the building was

put up for sale through an EOI exercise that ended in

October 2015. However, there is a significant differ-

ence this time: The building is more than 80% leased,

unlike in the previous EOI exercise when it was being

offered for sale with vacant possession.

The site on which The Prospex sits has a 99-year

leasehold tenure starting from 1974, which translates

to a balance term of 56 years. The land area is ap-

proximately 5,263 sq ft and the total GFA is approx-

imately 41,806 sq ft. It is located at the busy corner

of Middle Road and Victoria Street, about 400m from

Bugis MRT Station.

The Prospex consists of a two-level retail podium

and seven levels of offices. The prospective new own-

er has the flexibility to either sell the entire proper-

ty or sell according to individual strata units as the

strata subdivision of the building has been approved.

According to JLL, the appointed marketing agent,

the EOI exercise closes on March 21.

Elite Building up for sale at $55 milElite Building (bottom, left), a freehold, six-storey

building at 20 Aljunied Road, has been put up for

collective sale by public tender. The indicative price

for the building is $55 million, or around $1,313 psf,

based on the GFA of 41,866 sq ft.

According to Edmund Tie & Co (ET & Co), the ap-

pointed marketing agent handling the collective sale,

the three owners which own all 16 strata-titled units

in the building have given their consent for the sale.

Elite Building, which sits on a site area of approx-

imately 14,274 sq ft, has a prominent 60m main road

frontage along Aljunied Road. Its use has been ap-

proved for a commercial school with shops on the

ground floor and car park facilities in the basement.

The property has an existing GFA of 41,866 sq ft, or

an equivalent plot ratio of 2.93.

Based on the URA Master Plan 2014, the land is

zoned “Residential/Institution”, with a plot ratio of

2.8 and building height of up to eight storeys. Ac-

cording to ET & Co, there is no development charge

payable if the potential new owner chooses to rede-

velop the site.

The public tender closes on March 21.

381 private homes sold in January Developers sold 381 private homes in January 2017,

up from the 367 private homes in December 2016 and

324 units in January 2016. These figures exclude ex-

ecutive condominiums (ECs).

Including ECs, developers sold 565 units in Janu-

ary 2017, down from the 580 units in December 2016

but higher than the 480 units in January 2016.

The only new launch in January was 12 on Shan,

a 78-unit development that released 30 units for sale.

Parc Riviera (above, right) led the pack with 38 units

sold at a median price of $1,270 psf. The Santorini

trailed with 30 units sold at a median price of $1,066

psf, followed by The Trilinq, with 25 units sold at a

median price of $1,339 psf.

Meanwhile, the bestselling EC was The Terrace,

with 41 units sold at $779 psf. This was followed by

Sol Acres (40 units at a median price of $797 psf) and

The Vales (17 units at a median price of $827 psf).

HDB launches 4,056 flats for sale in February BTO exerciseThe HDB has launched 4,056 flats for sale un-

der the February 2017 build-to-order (BTO) exer-

cise. The flats are in six projects in the non-mature

town of Punggol, and the mature towns of Clem-

enti and Tampines.

A project in Woodlands, originally planned for launch

this month, has been deferred due to site conditions,

the HDB said on Feb 14. A further review is needed

to better integrate it with surrounding developments.

According to HDB, the project will be launched after

the review is completed.

HDB plans to launch a total of 17,000 flats this year.

It will offer another 4,600 flats in Bidadari, Geylang,

Woodlands and Yishun in May, when it will also re-

lease 3,000 sale-of-balance flats.

Albert Hong takes up non-executive chairman role at RSPRowsley has announced that Albert Hong, 81, will step

down as executive chairman after helming Singapore’s

leading architectural, engineering and master planning

practice for more than five decades. Hong will take

on the role of non-executive chairman of subsidiary

RSP Architects Planners & Engineers from March 1.

RSP will continue to be led by managing directors

Lee Kut Cheung and Lai Huen Poh. Lai is also an ex-

ecutive director of Rowsley.

Hong, one of Singapore’s most eminent archi-

tects and businessmen, has built RSP since 1964

into one of the largest Singapore-based integrated

professional architectural and engineering consul-

tancies, with offices in six countries.

RSP, which became part of Rowsley in 2013, of-

fers a comprehensive range of professional services

including town and master planning, urban design,

architecture, interior design, civil and structural en-

gineering as well as mechanical and electrical en-

gineering.

CDL invests $186 mil in Shanghai commercial projectCity Developments Limited (CDL) through its whol-

ly-owned subsidiary, CDL China, has entered into an

equity transfer agreement to acquire a prime Shang-

hai office project for RMB900 million ($186 million).

The acquisition will be made through the pur-

chase of the entire equity stake in Shanghai Meidao

Investment Co — which owns the commercial devel-

opment known as Meidao Business Plaza in Shang-

hai’s Hongqiao CBD.

Meidao Business Plaza, with a total GFA of around

32,300 sqm, is in the final stages of construction and

is expected to be completed by 2H2017. The project

comprises five 9-storey office towers and two levels

of basement car park with about 351 parking spots.

Meidao Business Plaza has been approved for division

into strata-titled units ranging from 237 to 522 sq m.

CDL says the acquisition will boost its recurring

income stream.

15,285 sq ft strata commercial space up for saleA 15,285 sq ft prime strata commercial space at Big

Mac Centre (bottom, right), located in the heart of

Ang Mo Kio Central, has been put up for sale by EOI.

According to Knight Frank, the appointed marketing

agent handling the sale, the guide price for the com-

mercial space is $26 million ($1,700 psf), with the

sale subject to partial tenancy expiring next year end.

The prime commercial space spans the entire third

storey of Big Mac Centre and enjoys an efficient, col-

umn-free floor plate that is suitable for a learning

premises, a fitness or wellness centre, or an enter-

tainment outlet.

Big Mac Centre, which is situated next to Ang

Mo Kio Hub, currently houses a McDonald’s res-

taurant, S11 food court, Q&M Dental Surgery clinic

and Pet Lovers’ Centre, all of which attract a high

footfall. Other tenants include the Automobile As-

sociation Centre and a department store. The sub-

ject property is presently occupied by a billiard and

LAN gaming centre.

The EOI exercise closes on March 16. — Compiled by Michael Lim

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THEEDGE SINGAPORE | FEBRUARY 20, 2017 • EP3

EP4 • THEEDGE SINGAPORE | FEBRUARY 20, 2017

Time to recalibrate policy measures

New-home sales versus prices

35

30

25

20

15

10

5

0

-5

-10

25

20

15

10

5

0

4Q20

16

4Q20

05

4Q20

06

4Q20

07

4Q20

08

4Q20

09

4Q20

10

4Q20

11

4Q20

12

4Q20

13

4Q20

14

4Q20

15

Price change (%)

New sales in units Price change

7,300 to 10,000annual new sales lead

to price falls

New sales in units (’000)

Relationship between transaction volume changesand price changes

-20 -15 -5 0 5 10 15 20-10

% y-o-y change in total sales

% y-o-y change in prices

20

15

10

5

0

-5

-10

-15

-20

Falling total sales with falling prices

Rising total sales withfalling prices

Rising total sales with rising prices

Falling total sales with rising prices

Chart 1

Chart 2

Achieving an increase in transaction volume would merely require some adjustments to the current slate of cooling measures

Singapore’s private residential market— percentage change in transaction volume and price

200

150

100

50

0

-50

-10 -5 0 5 10 15 20 25 30 35

-100

% y-o-y change in total new sales

2009

2003

2011

20162015

% y-o-y change in prices

Chart 3

SAM

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When markets run amok, govern-

ment policies are expected to

provide stability. This was in-

deed the case when the policy

measures first kicked in, starting

from September 2009 and culminating in the

implementation of the total debt service ratio

(TDSR) framework on June 29, 2013. The mar-

ket then started to respond to these measures

and began the long process of detoxification.

The slew of measures has altered the real

estate investment landscape and effectively

constrained overspending. Consequently, the

private residential market is now behaving

in ways that are different from the heydays

of the past.

Here, we look at some of those changes.

The sequential imposition of the cooling meas-

ures has inadvertently created a live experi-

ment on its impact on new-home sales in con-

junction with housing prices. Over the past 14

quarters, with the measures in place, annual

new-home sales volume has hovered between

7,300 and 7,900 units, with price changes in

negative territory.

Spike in sales volume unlikely to trigger a rapid asset price inflation After TDSR came into force, new-home sales

totalled 4,998 units — just half the 9,950 units

sold in 1H2013. Prices also fell 0.5% from end-

1H2013 to end-2H2013. On an annualised ba-

sis, new-home sales volume post-TDSR should

then be 9,996 units (4,998 units x 2) and price

fall 1% (0.5% x 2). Therefore, even if new-

home sales were to increase to about 10,000

units, prices could still not increase.

If we want property prices to increase in

line with the 2% to 3% annual productivity

growth rate, then transaction volumes would

need to increase significantly before annual

price increases move beyond 2% to 3% a year.

There should be less fear of that now. If the

measures are recalibrated wisely, the spike in

transaction volume should not trigger a rapid

asset price inflation. The reason is that there

is enough headroom for transactions to in-

crease by 50% without triggering sharp price

increases unlike in the past.

In 2016, the new-home sales market im-

proved significantly, increasing 7.1% y-o-y.

Yet, at 7,972 units, it is still a far cry from the

least upper limit of X + 10,000 (X because we

do not yet know how much above 10,000 units

that prices would start to increase). So, even

if new-home sales were to rise 25.4% y-o-y

to 10,000 units in 2017, it is unlikely to lead

to price increases that are above the produc-

tivity growth rate of 2% to 3% (see Chart1).

The interim solution is a zero property price

increase objective. This can be achieved even

if new-home sales exceed 10,000 units a year.

Achieving an increase in transaction volume

would merely require some adjustments to

the current slate of cooling measures.

Relationship between price changes and sales volume changesIt is common to expect that whenever sales

volume increases, prices will react similarly.

In simple terms, the ideal picture of how real

estate prices and sales volumes behave are

those data points falling within the blue shad-

ed quadrants in Chart 2.

The message from Chart 2 is that both vol-

ume and prices are positively correlated in that,

when volume increases, prices increase and

vice versa. Thus, ideally, for any year, the re-

lationship between the y-o-y change in sales

transactions and y-o-y change in prices should

be one that falls within the blue shaded quad-

rants in Chart 2.

For Singapore, for the period of 2005 to

2016, the two metrics of the private residential

market were in the majority of observations

of behaviour within that positive relation, but

there were five instances or years in which the

market strayed from expectation: 2009, 2011,

2013, 2015 and 2016 (see Chart 3).

For 2009 and 2013, the data points strayed

because of the shocks from to the global fi-

nancial crisis and the implementation of the

TDSR respectively. That leaves 2011, 2015 and

2016, which did not face shocks, but displayed

anomalies. In 2011, the government introduced

two punitive measures: a hike in the seller’s

stamp duty in January and the additional buy-

er’s stamp duty in December.

The red arrow points to the quadrant

where these data points were in the quad-

rant where prices fell under the conditions

of rising volumes in 2015 and 2016. The last

CONTINUES ON PAGE EP8

PROPERTY TAKE

CHAR

TS: S

AVIL

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ESEA

RCH

& CO

NSU

LTAN

CY, R

EALI

SSA

VILL

S RE

SEAR

CH &

CO

NSU

LTAN

CY

| BY ALAN CHEONG |

THEEDGE SINGAPORE | FEBRUARY 20, 2017 • EP5

EP6 • THEEDGE SINGAPORE | FEBRUARY 20, 2017

Revitalising Chip Eng SengWith the upcoming launch of Grandeur Park, new projects in Australia and a hotel

in Maldives, the group is seeking to grow its presence locally and abroad

| BY CECILIA CHOW |

CEL Development, the property devel-

opment arm of listed construction

group Chip Eng Seng Corp, will pre-

view the 720-unit Grandeur Park Res-

idences on Feb 18. The 99-year lease-

hold condominium is located next to the Tanah

Merah MRT station at the corner of New Up-

per Changi Road and Bedok South Avenue 3.

The units in Grandeur Park Residences will be

priced at an average of $1,350 psf, says Ray-

mond Chia, Chip Eng Seng’s executive chair-

man and group CEO.

The developer purchased the site a year ago

with a bid of $419.38 million, or $761 psf per

plot ratio (ppr). This translates into a break-

even price of about $1,100 psf, according to

Desmond Sim, CBRE head of research for Sin-

gapore and Southeast Asia. While the average

selling price of $1,350 psf may not reflect a

bullish profit margin, Chip Eng Seng, being a

builder and developer, has better control over

construction cost than most mainstream de-

velopers, he points out.

In the vicinity of the Tanah Merah MRT sta-

tion, the latest project to be completed is the

726-unit The Glades, a 99-year leasehold condo

by Keppel Land and China Vanke. Last month,

15 units were sold at a median price of $1,424

psf. As at end-January, 628 units (86.5%) had

been sold, according to URA data. The project

was launched in September 2013 and initial

sales prices averaged $1,483 psf.

On the opposite site of New Upper Changi

Road is the 582-unit Urban Vista, developed by

Fragrance Group in a joint venture (JV) with

World Class Land, the property development

arm of Aspial Corp. Launched in March 2013

at an average of $1,481 psf, the project was

fully sold and completed last year.

Adjacent to Grandeur Park Residences is

eCO, a 748-unit development by Far East Or-

ganization, Frasers Centrepoint and Sekisui

House. The condo was completed late last year

and all except one unit, a townhouse, was still

available as at end-January. “We have very lit-

tle competition in the area, as most of the pro-

jects in the neighbourhood are already com-

pleted and either substantially or fully sold,”

says Chia. “And there’s no new competition

coming up in the near future.”

Although URA has indicated that there is

a “future residential development site” adja-

cent to Grandeur Park Residences, it has not

been released on the Government Land Sales

(GLS) programme for 1H2017.

Sized and priced to sellThe developer is riding on the success of its

last launch, the 1,390-unit High Park Resi-

dences on Fernvale Road in Sengkang. The

project was launched in July 2015 and sold

1,100 units (79%) in the first weekend at an

average price of $970 psf. As at end-January,

99% of the units were sold.

“Because of the size of [High Park Residenc-

es], we could achieve economies of scale, and

therefore lower our construction cost and sell-

ing price,” says Chia. “Price is always a deter-

mining factor, but the project design and life-

style facilities are also important.”

At least 55%, or 394 units, of Grandeur

Park Residences in Tanah Merah are one- and

two-bedroom units of 420 to 667 sq ft. Another

173 units (24%) are three-bedroom units of

882 to 979 sq ft. The remainder are four- and

five-bedroom units of 1,130 to 1,453 sq ft, as

well as penthouses.

“This project is similar to High Park Resi-

dences in that it has quite a high number of

compact apartments,” says Nicholas Mak, exe-

cu tive director of SLP International. “Given

its proximity to the Tanah Merah MRT sta-

tion, there should be some investor interest.”

Return to the foldIt has been 12 months since Chia’s return to

Chip Eng Seng. He left the company in April

2015 and founded a property development and

investment company called LGB Corp with sev-

eral investors a few months later. LGB acquired

two mixed-use project sites in Adelaide, Aus-

tralia. One of the sites is located in the heart

of the financial hub; the other is on the city

fringe, opposite a newly built public hospital.

Since Chia’s return to the fold, he has taken

on the role of executive chairman and group

CEO. His father-in-law and founder of Chip

Eng Seng Group, Lim Tiam Seng, 79, was el-

evated to the role of honorary chairman and

adviser last May. Lim’s brother, Tiang Chuan,

is executive deputy chairman.

Last year, Chip Eng Seng also entered into

a non-binding letter of intent with Chia on the

proposed acquisition of all or part of LGB. The

group is still “exploring” whether to purchase

the sites in Adelaide or to allow Chia to com-

plete the projects under LGB. In the meantime,

other parties have also expressed interest in

acquiring the sites, says Chia.

In recent years, several property veter-

ans have joined Chip Eng Seng. One is Chng

Chee Beow, who joined Chip Eng Seng as ex-

ecutive director of CEL Development in 2012.

Chng has more than 30 years’ experience in

Chia (centre) flanked by CEL Development executive directors Ng (left) and Chng (right)

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Preview of the 720-unit Grandeur Park Residences starts on Feb 18, with the launch a fortnight from now

COVER STORY

THEEDGE SINGAPORE | FEBRUARY 20, 2017 • EP7

CONTINUES NEXT PAGE

real estate and is the former property director

of Wing Tai Holdings.

Most recently, Michael Ng, 53, joined Chip

Eng Seng as executive director of CEL Devel-

opment in early January and will oversee the

regional business. Previously group general

manager of listed property group United Indus-

trial Corp, which he joined in October 2010,

Ng was managing director of Savills Singa-

pore from December 2004 to September 2010.

Overseas expansionChip Eng Seng is interested in expanding its

footprint in Australia. It has been active Down

Under since 2002, when it went into Ade laide

and purchased a commercial building followed

by a development project a year later.

The property group’s property development

arm, CEL Development Australia, entered Mel-

bourne seven years ago when it acquired a 20,000

sq ft land parcel at 33 Mackenzie Street, in the

eastern part of Melbourne’s CBD, for A$20.2

million in 2010. CEL Development Australia de-

veloped 33M, a 33-storey tower with about 350

apartments and other amenities such as shops.

The developer is currently building the 71-sto-

rey landmark Tower Melbourne on the corner

of Bourke and Queen Streets. One of its others

developments in Melbourne is the Williamsons

Estate in Doncaster.

In March 2015, Chip Eng Seng sold a 31,506

sq ft site on Victoria Street in Melbourne for

A$64.8 million to Hengyi, an affiliate of main-

land Chinese developer Shandong HYI Group.

The site was purchased in 2013 for A$32 million

and had already secured approval from the for-

mer Victoria government for the development

of a 72-storey residential tower prior to the sale.

Immediately after the sale of the Victoria

Street site, Chip Eng Seng purchased a 64,412

sq ft site at 15-87 Gladstone Street in South

Melbourne for A$52 million. The site has re-

ceived planning permit for the development

of three towers with a total of 746 residences.

Chip Eng Seng announced in November that it

would be launching the project at South Mel-

bourne for sale in 1H2017.

In November 2015, Chip Eng Seng paid

A$27 million for two properties with a com-

bined land area of 192,213 sq ft in the Northcote

suburb of Melbourne. The site can be redeveloped

into a project with 300 apartments and 15

townhouses.

The group is also interested in looking at

opportunities in Perth, Sydney and Adelaide.

Besides Australia, the group is also looking

to grow its presence in Maldives, Vietnam and

Singapore. Other markets that it intends to ex-

plore include China, Indonesia, New Zealand

and Malaysia, specifically Johor Bahru, Melaka

and Kuala Lumpur, says CEL Development’s Ng.

Meanwhile, in Vietnam, the group is look-

ing at Ho Chi Minh City. It purchased a 127,013

sq ft residential development land parcel in

Nha Be, Ho Chi Minh City in October 2015 in

a JV with other listed construction and prop-

erty development groups such as Keong Hong

Holdings, KSH Holdings, Lian Beng Group and

Chia’s investment vehicle, LGB. Chia is also

looking at even more substantial development

and investment opportunities in the city.

Hotel development and investmentLast October, Chip Eng Seng entered into a

70:30 JV with Park Hotel Group to purchase

Grand Park Kodhipparu, a 120-villa resort in

Maldives, for US$65 million ($92.4 million).

It is scheduled to open in 2Q2017 and will be

managed by Park Hotel Group. Chip Eng Seng

is open to exploring more development oppor-

tunities in Maldives, specifically villa develop-

ment and hotels, says Chia.

The Maldives resort is the second collabo-

ration between Chip Eng Seng and Park Hotel

Group. The first was the 442-room Park Ho-

tel Alexandra in Singapore, which opened in

2015 and was Chip Eng Seng’s first foray into

hotel development and investment. CEL De-

velopment won the 99-year leasehold hotel

site at the junction of Jalan Bukit Merah and

Alexandra Road in December 2011 in a GLS

land tender with a bid of $189 million ($789

psf based on gross floor area).

At the outset, Park Hotel Alexandra had an

occupancy rate of more than 80% and gener-

ated a healthy cash flow for the group, says

Chia. He sees Chip Eng Seng’s entry into the

hospitality sector as a way to grow its invest-

ment portfolio with assets that provide recur-

ring income.

Mixed-use developmentsThe Park Hotel Alexandra development in-

cludes a three-storey retail podium called Al-

exandra Central, adjacent to the hotel. It was

carved into 115 strata retail units for sale.

Launched in mid-January 2013, all but one

of the units were snapped up in one day at

$3,500 to $7,804 psf.

On the back of the successful launch of

Alexandra Central, CEL Development bid for

and won another mixed-use development site

on Yishun Ring Road with a top bid of $212.1

million ($794 psf ppr) in 2013. The 99-year

leasehold development comprises Junction

Nine, a two-storey retail podium; and Nine

Residences, consisting of twin 11-storey resi-

dential towers and six townhouses with con-

do facilities.

The Junction Nine/Nine Residences project

was launched in October 2013, with residential

units sold at an average price of $1,050 psf, and

strata retail units sold at an average price of

$3,606 psf. The project was fully sold and com-

pleted in December 2015. The latest resales at

Nine Residences were done at prices above $1,200

psf, whereas a 140 sq ft shop on the second level

of Junction Nine changed hands for $6,289

psf last October.

Privatisation not on the cardsChip Eng Seng was founded in the 1960s as

a construction group. It entered the proper-

ty development and investment business in

1991 when it acquired Chip Eng Leong Enter-

prise. Chip Eng Seng was listed on the Singa-

pore Exchange in November 1999. Currently,

Lim and his family members hold a 74.89%

stake in the company.

In the first nine months of 2016 ended Sep-

tember, the group announced that revenue from

property development declined 3.2% y-o-y and

construction revenue was down 12.6% y-o-y.

Meanwhile, property investment income was

up 14.1%. Earnings were down 60.9% over

the same period.

At market close on Feb 15, the group’s share

price was 70.5 cents; it had a market capitali-

sation of $437.8 million. Its net asset value as

at end-September 2016 was $1.20 a share. With

its price-to-book ratio now at 0.59, some inves-

tors are speculating about whether a privati-

sation is on the cards for Chip Eng Seng. Last

year, Sim Lian Group, another construction and

property development company, was delisted.

“The intention to list in 1999 was to raise

capital for future expansion,” says Chia. “The

Lim family has not indicated that they are mov-

ing in the direction of [privatisation].”

THE

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Park Hotel Alexandra marked Chip Eng Seng’s first foray into hotel development and investment

CEL Development Australia’s upcoming launch in 1H2017 is a residential development on Gladstone Street in South Melbourne, where it is developing three towers with a total of 746 residences

CHIP

EN

G S

ENG

COVER STORY

Chip Eng Seng acquired Grand Park Kodhipparu, a resort in Maldives, in a joint venture with Park Hotel Group

CHIP

EN

G S

ENG

EP8 • THEEDGE SINGAPORE | FEBRUARY 20, 2017

Policy measures lead to distortions in prices, volumes and rents

FROM PAGE EP4

Ideal vacancy rate

Vacancy rate Price change

9

8

7

6

5

4

3

2

1

0

35

30

25

20

15

10

5

0

-15

-10

4Q20

16

4Q20

05

4Q20

06

4Q20

07

4Q20

08

4Q20

09

4Q20

10

4Q20

11

4Q20

12

4Q20

13

4Q20

14

4Q20

15

Ideal vacancy rate is 5.6%

Long-run price increase = Productivity growth

Vacancy rate (%) Price change (%)

Ample supply in the pipeline

Units (’000)

-20

0

20

40

60

80

100

120

4Q2006 4Q2007 4Q2008 4Q2009 4Q2010 4Q2011 4Q2012 4Q2013 4Q2014 4Q2015 4Q2016

Unsold units in the pipeline

Supply in the pipeline

Current net yields are destroying value

%

-20

0

2

4

6

8

10

12

Chem

icals

Techn

ology

Insura

nce

Travel

& leisur

e

Basic

resou

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Const

ructio

n & m

ateria

lsRe

tail

Media

Person

al & ho

useho

ld go

ods

Healthc

are

Indust

rial g

oods

& servi

ces

Oil & ga

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Automob

ile & pa

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Finan

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rvices

Teleco

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Real e

state

Utilitie

sBa

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Privat

e resi

denti

al

Current private residential property net yield (ROIC)

Chart 4

Chart 5 Chart 6

two years saw a slowdown in the economy as

plummeting oil prices took a toll on the off-

shore and marine sector, and the unemploy-

ment rate climbed.

A possible reason for the negative corre-

lation could be the intensity of the proper-

ty cooling measures, especially in 2013. This

could put public and private policy decision

makers in an uncomfortable position should

immediate action for redress in the property

market be taken.

Ideal vacancy rateWhen we plot the movement of prices with va-

cancy rates for the period of 2005 to 2016 and

overlay an annual price growth of 2% over it

(the 2% is our long-term productivity growth

rate), either strangely or coincidentally, the

three intersection points of all three lines were

at a vacancy level of 5.6% to 5.7%. Let us take

5.6%, as an example. For 4Q2016, the vacan-

cy level for all local private residential prop-

erties was 8.1%, which is far above the 5.6%

lifted off the graph (see Chart 4).

With vacancy levels significantly above the

ideal level and expected to continue climbing

this year, the concern is on the level of unpro-

ductivity in the real estate asset class. Supply

from future land sales programmes should ide-

ally be tempered to cure this excess.

Today, the elevated supply, coupled with

slower rental demand arising from continuing

global economic headwinds, should be able

to alleviate fears that any tweaks to the cool-

ing measures would bring about a V-shaped

price recovery.

Although the stock of unsold units in the

pipeline has been falling, this should not be

used as a rationale for keeping the measures

in its current intensity because total stock of

units in the pipeline is still over 48,000 units.

Therefore, even if new supply is maintained

at current levels, the amount of slack created

by the high levels of uncompleted stock may

be enough to resist any upside price pressures

(see Chart 5).

Rents — more sensitive to supplyMuch of the talk about increasing economic

value-add would come to naught if one merely

focused on using supply to contain prices be-

cause prices tend to be less sensitive to sup-

ply. The supply mechanism is not effective in

constraining prices but rents.

Any supply measure is therefore counter-

productive when property yields fall too much.

Chart 6 shows that the current net yield or re-

turn on invested capital (ROIC) for non-land-

ed private residential property is 2.75% —

well below the sector’s weighted average cost

of capital of 5.74% (using the 3Q2016 aver-

age loan-to-value percentage of 52.6% and an

unlevered beta of 0.38).

ConclusionIn many discussions about the cooling meas-

ures, “recalibrate” has often been confused with

“removal”. And after witnessing 14 quarters of

consecutive decline in the URA price index, the

private residential market is starting to display a

strange behaviour. This needs to be addressed.

First, the vacancy rate is at an unhealthy level,

and by letting prices slide slowly, the overlooked

point is that rents are coming off even more, and

this destroys the economic value-add of real es-

tate as an asset class. Future supply will have

to take falling rental yields into consideration.

Second, the relationship between prices

and transaction volumes are now out of sync.

It should be an opportune time now to recali-

brate the appropriate measures to bring market

behaviour back to normal. As we are just out-

side the bounds of normal market behaviour,

one need only to make minor adjustments to

bring things back in line.

Alan Cheong is the head of research at SavillsSingapore

E

Chip Eng Seng cautious in bidding for development sites

PROPERTY TAKE

COVER STORY

One of the few projects in which

Chip Eng Seng still has available

units upon completion is 128-unit

Fulcrum, a private condo on Fort

Road. The freehold project was com-

pleted in January 2016 and is sub-

ject to the conditions of the Quali-

fying Certificate. Therefore, all units

have to be sold by January 2018 to

avoid incurring extension charges.

When Fulcrum was launched

in April 2012, units were sold at

an average of $1,960 psf. The pro-

ject obtained its Temporary Occu-

pation Permit in January 2016, and

was relaunched last April, with ave-

rage prices of units sold at $1,830

psf. The project is about half sold.

As the developer has no other

local launches after Grandeur Park

Residences, it is actively seeking

development sites in both GLS

tenders and collective sale sites

in the private market. Chia says,

however, that CEL Development

participates in GLS tenders on a

selective basis.

It was not among the nine bid-

ders at the close of the tender for

a residential development site on

West Coast Vale, which saw China

Construction (South Pacific) Devel-

opment submit the highest bid of

$291.99 million ($591.5 psf ppr).

Chia makes it a point to visit a

site, sometimes multiple times, be-

fore putting in a bid. For instance,

when it came to the tender for the

site of its MyManhattan condo pro-

ject seven years ago, he spent days

sitting at the MRT station or the bus

stop just to watch the people pass-

ing by, and to try and envision the

kind of development he could build

there. “It’s important to understand

the behaviour of the people in that

particular locale,” he says.

At the close of the tender in May

2010, Chip Eng Seng emerged the

winner of the site at Simei Street

3 with a bid of $152.69 million

($523 psf ppr). The site was hotly

contested with 18 bids, as it is lo-

cated across from East Point Mall

and the Simei MRT station on the

East-West Line.

FROM PREVIOUS PAGE

E The showflat of a five-bedroom unit at Grandeur Park Residences with private lift lobby

SAM

UEL

ISAA

C CH

UA/T

HE E

DGE

SIN

GAP

ORE

CHAR

TS: S

AVIL

LS R

ESEA

RCH

& CO

NSU

LTAN

CY, R

EALI

S

THEEDGE SINGAPORE | FEBRUARY 20, 2017 • EP9

MARKET TREND

ALBE

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PACI

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STAR

DEV

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Chan says Pacific Star will continue to focus on development projects in Asean to ‘diversify our revenue base and our risks’

CONTINUES NEXT PAGEArtist’s impression of a three-bedroom waterfront apartment at Puteri Cove Residences

Successful backdoor listing for Pacific Star| BY CECILIA CHOW |

The former Singapore-listed LH Group was

renamed Pacific Star Development on Feb

8 after it received shareholders’ approv-

al for the $140 million reverse takeover

(RTO) of the latter. The company started

trading on the Singapore Exchange on Feb 16.

Established more than a decade ago, Pa-

cific Star is a property development company

focused on investing in and managing prime

development projects in the Asean region. The

two projects currently under development are

Puteri Cove Residences in Iskandar Malaysia

and The Posh Twelve in Tiwanon, Bangkok.

According to Glen Chan, CEO and manag-

ing director of the newly listed Pacific Star De-

velopment, an RTO is a “shortened process”

compared with an initial public offering (IPO).

“There’s also more certainty,” he reckons. Un-

like an IPO, an RTO involves the acquisition

of a listed company, often one that has no sig-

nificant business operations or one whose ex-

isting business is on the decline.

Pacific Star first entered into a memoran-

dum of understanding with LH Group last

March. LH Group, a specialist contractor of al-

uminium works and vehicle parts, was listed

on the Mainboard of SGX in 1994. Pacific Star

will, however, be listed on Catalist instead of

the Mainboard.

In its FY2016 results, LH Group announced

that revenue was down 34.5% y-o-y. The com-

pany also reported a net loss for the second

consecutive year. “As the business is not do-

ing well and recording losses, we thought it

would be ideal for us to do an RTO via [LH

Group], as it’s also a construction company

and a property-related business,” says Chan.

Key investorsAs part of the RTO, LH Group raised $8.1 mil-

lion through the conditional placement of 10.1

million new shares. The amount was 35% more

than its minimum placement target of $6 mil-

lion. The placement was said to have been

“well supported” by Koh Brothers Group Ltd

(through its wholly-owned subsidiary); promi-

nent businessmen affiliated with the Tang Group

of Companies, owner and operator of the Dor-

set Hospitality chain; Home Fix DIY; and Food

Empire Holdings. Together, they represent an

aggregate of 5.825 million shares (57.5%) of

the total applications received.

Upon completion of the RTO, the company

had issued more than 11 million conditional

placement shares worth $8.5 million. The com-

pany also announced the successful acquisi-

tion of the entire share capital of the former

Pacific Star Development Pte Ltd.

Part of the acquisition was made in cash

($16 million) and the issue of 132.5 million

new shares at 80 cents each. The balance $18

million will be paid partly in cash and issu-

ance of new shares, according to a Feb 15 an-

nouncement. The total issued share capital

has increased to 158.43 million, including the

11 million placement shares and 132.5 million

conside ra tion shares.

Substantial shareholdersBased on the enlarged share capital, LH Group’s

stake will be diluted. One of the substantial

shareholders of Pacific Star is Chuan Hup Hold-

ings, which now owns 37.34% of the shares

via its wholly-owned subsidiary, CH Biovest.

Chuan Hup is a Singapore-listed invest-

ment holding company with investments in

electronics manufacturing services, offshore

support services to the oil and gas industry

as well as property development. Last May,

Chuan Hup’s wholly-owned subsidiary, CH

Biovest, entered into a loan agreement to lend

PSD Holdings US$7 million ($10 million). Prior

to that, it had granted PSD Holdings a US$10

million loan on April 24. PSD Holdings was an

investment holding company and sole share-

holder of Pacific Star.

In a supplementary announcement on Nov

30 last year, Chuan Hup said CH Biovest would

novate the two loan agreements with PSD Hold-

ings, and Major Star Holdings would now be the

borrower under the loan agreements. Following

that, Major Star Holdings owned a 50% stake in

PSD Holdings, with Glaxier City holding the rest.

Meanwhile, CH Biovest owns 77% of Ma-

jor Star Holdings based on its issued and paid-

up capital. Upon completion of the sale and

transfer of the shares in PSD Holdings to LH

Group, 59.1 million ordinary shares in the cap-

ital of LH Group were allotted to CH Biovest,

which translated into a 37.34% stake in the

new shares of Pacific Star.

The other substantial shareholder of Pacific

Star post-listing is a party acting in concert,

comprising Glaxier City, in which Glen Chan

has a 20% stake, and Double Blessing, a com-

pany wholly-owned by Chan. The parties

hold an aggregate of 48.44 million shares, or

a 36.6% stake.

Chan joined Pacific Star in March 2003 from

CBRE, where he was a member of the CBRE

Asia board of directors. He was appointed

senior vice-president of Pacific Star in 2004 to

drive its real estate investment and manage-

ment business. A year later, he was promot-

ed to president of Pacific Star, and he now as-

sumes the roles of CEO and managing director

of the new listed entity.

Spinning off developmentPacific Star’s privately held parent compa-

ny Pacific Star Holdings is involved in a wide

range of businesses, including fund manage-

ment, investment advisory services and asset

management. “Development was just one of

the subsidiaries and has now been spun off

into a separate listed platform,” says Chan.

He was involved in all the major investment

and development projects at Pacific Star from

the start. In June 2005, for instance, the com-

pany partnered Kuwait Finance House, a Sya-

riah-compliant financial institution in the Mid-

dle East, to launch the US$600 million Baitak

Asian Real Estate Fund in Malaysia.

In January 2006, on behalf of the fund, Pa-

cific Star invested US$300 million in Pavilion,

a prime mixed-use mega development com-

prising a retail mall, two luxury residential

towers, an office building and a hotel in Kua-

la Lumpur. The mall opened in March 2008.

Pacific Star also launched the US$650 mil-

lion Asian Real Estate Prime Development

Fund in December 2007. The closed-end real

estate development fund is invested in prime

projects in key gateway cities in China, Hong

Kong, Macau, Japan, South Korea, Thailand,

Malaysia and Singapore.

Through the fund, the group also invest-

ed in two freehold prime residential develop-

ment sites in Bangkok, called Rhythm Ratchada

and The Address Sathorn, through joint ven-

tures with Asian Property Development Co,

a residential property developer in Bangkok

that is listed on the Stock Exchange of Thai-

land. Both projects have since been complet-

ed and fully sold.

On behalf of Asia Real Estate Prime Develop-

ment Fund, Pacific Star acquired in June 2008

half of the apartments in Panorama, a prime

residential project less than a five-minute walk

from the landmark Petronas Twin Towers and

Kuala Lumpur City Centre complex.

Leveraging its track record, Pacific Star be-

gan to position itself as a “premier developer”

of luxury mixed-use projects in Asean in 2010.

PSD Holdings was incorporated in July 2010

as a 50:50 joint venture between Pacific Star

Holdings and Glaxier City. A month later, Pa-

cific Star Holdings’ stakes in Pacific Star were

transferred to PSD Holdings.

In 2011/12, Pacific Star ceased its real estate

investment management and fund manage-

ment businesses with the expiry of the Baitak

Asian Real Estate Fund and the Asia Real Es-

tate Prime Development Fund.

Site acquisitionsIn May 2012, Pacific Star purchased a prime

freehold waterfront site measuring 339,817 sq

ft in Puteri Harbour, Nusajaya in Iskandar Ma-

laysia. The group is in the midst of develop-

ing the site into a luxury waterfront mixed-use

project called Puteri Cove Residences, which

has three 32-storey tower blocks: The first two

comprise 658 luxury apartments and the third,

luxury serviced suites managed by Pan Pacific

Hotels & Resorts. There are also three-storey

EP10 • THEEDGE SINGAPORE | FEBRUARY 20, 2017

OFFSHORE

Tan & Tan Developments to launch KL’s Stonor 3 in Singapore

Pacific Star sees opportunities in resort hotels and villas

| BY MICHAEL LIM |

Kuala Lumpur-based develop-

er Tan & Tan Developments

will be launching its latest

high-end residential project,

Stonor 3, for sale in Singa-

pore on Feb 18 and 19. Stonor 3 is

being developed by Cipta Klasik, a

joint venture company in which Tan

& Tan owns a 70% interest and Mit-

subishi Jisho Residence holds the re-

maining 30%.

Located on Lorong Stonor within

Kuala Lumpur City Centre, Stonor 3

is a 41-storey, freehold, luxury de-

velopment. It comprises 400 units

in five different layouts — one-bed-

room units of 648 sq ft to 689 sq ft,

two-bedroom units of 871 sq ft and

three-bedroom units of 1,031 sq ft

to 1,232 sq ft.

Excluding the kitchen and wet

rooms, the entire floor of each unit

is laid with solid Burmese teak hard-

wood. The kitchen is equipped with

De Dietrich and Brandt appliances,

including an integrated refrigerator

as well as smart washing and bath-

room accessories.

Prices range from RM1.1 million

($351,077) — for one-bedders — to

RM1.45 million (two-bedders) and

RM1.63 million (three-bedders). All

prices are before a 5% rebate, says

the developer.

The developer of Stonor 3 has set

aside three floors — levels 1, 7 and

41 — for shared leisure spaces such

as a glass-enclosed cantilevered gym-

nasium, a 40m infinity-edge pool and

sun deck, a children’s playground

and wading pool, a mini theatre for

private movie screenings, as well as

large function rooms.

Tan & Tan Developments’ execu-

tive director Teh Boon Ghee reported-

ly said that he believes the property

market is currently “at the bottom”

and should be back in full swing by

the time the project is completed in

December 2019.

Tan & Tan Developments launched

Stonor 3 for sale in Kuala Lumpur in

November 2016. To date, about 30%,

or 120 of the units, have been sold,

with buyers comprising a good mix

of locals and foreigners working in

Kuala Lumpur.

Singapore will be its first overseas

stop and there are plans to market

the development to other cities in

Southeast Asia.

Tan & Tan’s Teh says he is con-

fident about the project’s gradual

take-up rate, adding that property

prices in Malaysia are still cheap

compared with other countries in

the region.

The KLCC area is still growing,

with a number of developments, in-

cluding new hotels and office build-

ings being developed and coming

onto the market, which reinforces

Kuala Lumpur as an attractive city,

notes the developer.

The estimated gross development

value for Stonor 3 is RM617 million.

Founded in 1971, Tan & Tan Devel-

opments is a wholly-owned subsidiary

of one of Malaysia’s largest listed real

estate developer, IGB Corp. Tan & Tan

Developments has a renowned track

record, having developed not just con-

dominiums but also landed properties

and gated communities, commercial

and residential buildings, as well as

a hospital development. Its projects

include Desa Kudalari Condominium,

G-Residence, Damai 33, Seri Ampang

Hilir and U-Thant Residence.

According to the company’s web-

site, Mitsubishi Jisho Residence is

one of Japan’s leading condominium

developers, with projects predomi-

nantly in Tokyo. It also has projects

in Sapporo, Sendai, Nagoya, Osaka,

Hiroshima and Fukuoka.

Stonor 3 is a 41-storey freehold luxury development comprising 400 units in five layouts ranging from one-bedroom units of 648 sq ft to three-bedroom units of 1,232 sq ft

The rooftop skydeck offers a 360-degree view of the KL skyline

PICT

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FROM PREVIOUS PAGE

Posh Twelve in Bangkok will be launched in April

PACI

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DEV

T

SOHO units, and a two-storey lifestyle retail

centre with 79 commercial units.

Since its launch in November 2013, 63%

of the apartments in the first two towers have

been sold at an average of $1,300 to $1,400

psf, says Chan.

Buyers at Puteri Cove Residences are for-

eigners from 28 countries, he adds. As the first

two towers are expected to be completed by

year-end, the company is continuing to em-

bark on “an aggressive overseas sales cam-

paign” in China, Japan and South Korea to

market the project.

Pacific Star will hold on to the strata retail

units in the retail podium for now. The plan

is to lease the units to supermarkets, special-

ty grocers and F&B outlets for the conveni-

ence of future residents, and to create a vi-

brant community.

As for the second development project, Posh

Twelve in Bangkok, Pacific Star

had purchased the freehold site

of 80,127 sq ft in September 2014

through its joint venture compa-

ny Kanakkorn Pattana Co. The site

can be developed into a mixed-use

complex with 1,373 apartments in

39- and 45-storey blocks, as well

as seven commercial units hous-

ing cafés, restaurants and a con-

venience store. The project is also

located within walking distance of

the Ministry of Public Health MRT

station on the Purple Line.

Chan intends to launch the

project in April. As the property is targeted

at middle-income homebuyers, units will be

priced from THB80,000 ($3,242) to THB90,000

sq m, which is less than a third of the luxury

apartments in the prime districts of Bangkok,

which are about THB300,000 psm.

Focus on three segmentsPacific Star will continue to focus on develop-

ment projects in Asean to “diversify our revenue

base and our risks”, says Chan. Besides Kuala

Lumpur and Bangkok, the group is also eval-

uating development opportunities in Jakarta.

One of the three segments that

the group wants to specialise in is

mixed-use projects with branded

residences in prime locations, like

what it has done in Kuala Lumpur,

Bangkok and Iskandar Malaysia.

The group also sees oppor-

tunities in resort hotel and villa

develop ments in resort islands

such as Bali, Langkawi, Phuket

and Phu Quoc.

A third segment it intends to

enter is resort retirement commu-

nities for the affluent, which will

offer medical facilities as well as

recreational amenities such as golf courses.

“Malaysia and Thailand are the best places in

Asean for the development of retirement com-

munities, as land cost is relatively low and be-

cause of the availability of skilled and semi-

skilled staff,” says Chan.

THEEDGE SINGAPORE | FEBRUARY 20, 2017 • EP11

GAINS AND LOSSES

| BY LIN ZHIQIN |

On Feb 7, a 4,069 sq ft unit

at Seascape in Sentosa Cove

was sold at a $6.6 million

loss. The loss works out to

52%, or 10% annualised

over a holding period of 6.6 years.

The previous owner, a Russian na-

tional, bought the unit from the de-

veloper at $12.8 million, or $3,146

psf in June 2010. The unit was put

up for mortgagee sale at an auction

conducted by JLL in January 2017 at

an opening price of $6.8 million but

did not find a buyer. It was subse-

quently sold at $6.2 million, or $1,524

psf, by private treaty. According to

JLL head of auctions Mok Sze Sze,

the buyer is an investor.

The transaction marks the biggest

loss for condominiums at Sentosa Cove

so far. Based on the matching of URA

caveat data, the second- and third-big-

gest losses at Sentosa Cove were also

traced to Seascape. In May 2015, a

4,133 sq ft unit at Seascape was sold

at a $5.2 million loss. The unit was

bought at $11 million, or $2,661 psf,

in December 2011 and sold at $5.8

million, or $1,403 psf. The loss works

out to 47%, or 17% annualised over a

three-year holding period. The seller

was also liable for a 4%, or $232,000,

Seller’s Stamp Duty.

The third-biggest loss of $4.65 mil-

lion occurred in relation to a 4,241 sq

ft unit at Seascape that was bought

at $11 million, or $2,594 psf, in De-

cember 2011 and sold at $6.35 mil-

lion in October 2016. The loss works

out to 42%, or 11% annualised over

a holding period of nearly five years.

Seascape, which has a 99-year lease-

hold tenure, was completed in 2011

and comprises 151 units.

In total, 15 condo units at Sento-

sa Cove were sold at a loss last year.

The sellers sustained losses ranging

from $80,010 to $4.65 million, work-

ing out to an average loss of $1.35

million, or 23%.

For private non-landed homes

sold in the week of Jan 31 to Feb 7,

the next biggest loss, after the Sea-

scape unit, of $1.56 million occurred

in the sale of a 1,249 sq ft unit at

Scotts Square in prime District 9.

The seller bought it at $5.2 million,

or $4,171 psf, from the developer in

August 2007 and sold it at $3.65 mil-

lion, or $2,923 psf, on Feb 3. The loss

Private non-landed residential transactions with contracts dated Jan 31 to Feb 7

URA

, THE

EDG

E PR

OPE

RTY

Most profi table deals

Non-profi table deals

PROJECT DISTRICT AREA (SQ FT) SOLD ON (2017) SALE PRICE ($ PSF) BOUGHT ON PURCHASE PRICE ($ PSF) PROFIT ($) PROFIT (%) ANNUALISED PROFIT (%) HOLDING PERIOD (YEARS)

NON-LANDED

1 Sommerville Park 10 1,302 Feb 1 1,597 Aug 20, 2004 664 1,215,000 140 7 12.5

2 The Centris 22 1,442 Jan 31 1,144 Oct 30, 2006 524 893,619 118 8 10.3

3 The Merasaga 10 947 Feb 1 1,425 Dec 09, 2002 581 800,000 145 7 14.2

4 Thomson 800 11 1,625 Feb 3 1,125 Nov 25, 1998 675 731,100 67 3 18.2

5 Glendale Park 23 1,249 Feb 3 1,041 Feb 23, 2005 457 730,000 128 7 12.0

6 The Berth By The Cove 4 1,658 Feb 6 1,250 Aug 22, 2006 871 628,100 43 4 10.5

7 Symphony Heights 21 1,647 Feb 2 1,032 June 11, 1999 686 570,000 50 2 17.7

8 Double Bay Residences 18 1,367 Feb 2 1,061 March 24, 2009 656 552,750 62 6 7.9

9 Dunearn Gardens 11 1,238 Feb 1 1,454 May 01, 2000 1,030 525,000 41 2 16.8

10 Double Bay Residences 18 1,550 Feb 3 1,006 Sept 16, 2009 685 497,700 47 5 7.4

PROJECT DISTRICT AREA (SQ FT) SOLD ON (2017) SALE PRICE ($ PSF) BOUGHT ON PURCHASE PRICE ($ PSF) LOSS ($) LOSS (%) ANNUALISED LOSS (%) HOLDING PERIOD (YEARS)

1 Seascape 4 4,069 Feb 7 1,524 June 28, 2010 3,146 6,600,000 52 10 6.6

2 Scotts Square 9 1,249 Feb 3 2,923 Aug 24, 2007 4,171 1,558,330 30 4 9.5

3 Aspen Heights 9 1,604 Feb 3 1,403 Oct 18, 2012 1,590 300,000 12 3 4.3

4 8@Woodleigh 13 1,658 Feb 3 1,086 Dec 4, 2012 1,243 260,000 13 3 4.2

5 The Legend 10 1,453 Feb 1 1,270 Aug 22, 2007 1,445 255,000 12 1 9.5

6 Kovan Residences 19 2,400 Feb 6 1,000 Nov 9, 2011 1,100 240,000 9 2 5.2

7 Parc Somme 8 355 Jan 31 1,591 July 2, 2012 1,830 85,000 13 3 4.6

8 Rio Vista 19 2,465 Feb 6 730 May 25, 2012 755 60,000 3 1 4.7

Note: The profit and loss computation excludes transaction costs such as stamp dutiesURA caveat record downloaded on Feb 10 and 14

$6.6 million loss at Seascape mortgagee sale

E

works out to 30%, or 4% annualised

over a holding period of 9.5 years.

This transaction marks the biggest

loss at Scotts Square so far. All seven

units at Scotts Square transacted last

year, whose previous caveats could be

traced, were sold at a loss. The sellers

sustained losses ranging from $647,088

to $1.2 million, working out to an av-

erage loss of $910,579, or 24%.

The monthly rents for units of be-

tween 1,200 and 1,300 sq ft at Scotts

Square averaged $7,682 in 2H2016,

which implies a 3% gross rental yield

for the recently transacted unit. Scotts

Square is a mixed-use development

completed in 2011. It comprises 338

freehold apartment units and is lo-

cated within walking distance of Or-

chard MRT station.

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The three biggest losses for condos at Sentosa Cove, so far, were at Seascape. Find the most affordable unit in the project at bit.ly/SeascapeEdge.

Scotts Square has 338 apartment units and is within walking distance of Orchard MRT station. Find the most affordable unit in the project at bit.ly/ScottsSquareEdge.

EP12 • THEEDGE SINGAPORE | FEBRUARY 20, 2017

Singapore — by postal districtLOCALITIES DISTRICTSCity & Southwest 1 to 8Orchard/Tanglin/Holland 9 and 10Newton/Bukit Timah/Clementi 11 and 21Balestier/MacPherson/Geylang 12 to 14East Coast 15 and 16Changi/Pasir Ris 17 and 18Serangoon/Thomson 19 and 20West 22 to 24North 25 to 28

Residential transactions with contracts dated Jan 31 to Feb 7

District 3 ALEX RESIDENCES Apartment 99 years February 01, 2017 678 1,400,000 - 2,064 Uncompleted New SaleCOMMONWEALTH TOWERS Condominium 99 years January 31, 2017 753 1,288,000 - 1,709 Uncompleted New SaleCOMMONWEALTH TOWERS Condominium 99 years January 31, 2017 463 808,000 - 1,746 Uncompleted New SaleCOMMONWEALTH TOWERS Condominium 99 years February 02, 2017 753 1,288,000 - 1,709 Uncompleted New SaleCOMMONWEALTH TOWERS Condominium 99 years February 04, 2017 753 1,288,000 - 1,709 Uncompleted New SaleCOMMONWEALTH TOWERS Condominium 99 years February 04, 2017 904 1,473,800 - 1,630 Uncompleted New SaleECHELON Condominium 99 years February 01, 2017 861 1,678,950 - 1,950 2016 New SaleHIGHLINE RESIDENCES Condominium 99 years February 01, 2017 506 1,079,400 - 2,134 Uncompleted New SaleHIGHLINE RESIDENCES Condominium 99 years February 02, 2017 635 1,282,300 - 2,019 Uncompleted New SaleHIGHLINE RESIDENCES Condominium 99 years February 02, 2017 700 1,305,300 - 1,866 Uncompleted New SaleHIGHLINE RESIDENCES Condominium 99 years February 05, 2017 883 1,626,700 - 1,843 Uncompleted New SaleQUEENS PEAK Condominium 99 years January 31, 2017 441 767,000 - 1,738 Uncompleted New SaleQUEENS PEAK Condominium 99 years February 01, 2017 431 728,000 - 1,691 Uncompleted New SaleQUEENS PEAK Condominium 99 years February 02, 2017 775 1,166,000 - 1,505 Uncompleted New SaleQUEENS PEAK Condominium 99 years February 02, 2017 431 740,000 - 1,719 Uncompleted New SaleQUEENS PEAK Condominium 99 years February 04, 2017 441 747,000 - 1,693 Uncompleted New SaleQUEENS PEAK Condominium 99 years February 04, 2017 624 1,042,000 - 1,669 Uncompleted New SaleTHE ANCHORAGE Condominium Freehold February 02, 2017 1,507 1,780,000 - 1,181 1997 ResaleTHE ANCHORAGE Condominium Freehold February 02, 2017 1,507 1,800,000 - 1,194 1997 ResaleTHE CREST Condominium 99 years February 01, 2017 829 1,416,000 - 1,708 Uncompleted New SaleTHE CREST Condominium 99 years February 02, 2017 1,238 2,067,000 - 1,670 Uncompleted New SaleTHE METROPOLITAN CONDOMINIUM Condominium 99 years February 01, 2017 1,421 1,820,000 - 1,281 2009 Resale

LAND AREA/ NETT UNIT FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OFPROJECT PROPERTY TYPE TENURE SALE DATE (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE

District 4 CORALS AT KEPPEL BAY Condominium 99 years February 05, 2017 947 2,000,000 - 2,111 2016 New SaleSEASCAPE Condominium 99 years February 07, 2017 4,069 6,200,000 - 1,524 2011 ResaleTHE BERTH BY THE COVE Condominium 99 years February 06, 2017 1,658 2,072,500 - 1,250 2006 ResaleDistrict 5 BLUE HORIZON Condominium 99 years February 02, 2017 1,163 1,200,000 - 1,032 2005 ResaleDOVER PARKVIEW Condominium 99 years February 01, 2017 969 943,000 - 973 1997 ResaleONE-NORTH RESIDENCES Apartment 99 years February 01, 2017 517 828,000 - 1,603 2009 ResalePARC RIVIERA Condominium 99 years January 31, 2017 646 870,000 - 1,347 Uncompleted New SalePARC RIVIERA Condominium 99 years January 31, 2017 463 600,000 - 1,296 Uncompleted New SalePARC RIVIERA Condominium 99 years February 01, 2017 463 580,160 - 1,253 Uncompleted New SalePARC RIVIERA Condominium 99 years February 01, 2017 646 791,000 - 1,225 Uncompleted New SalePARC RIVIERA Condominium 99 years February 02, 2017 603 746,000 - 1,238 Uncompleted New SalePARC RIVIERA Condominium 99 years February 03, 2017 463 617,000 - 1,333 Uncompleted New SalePARC RIVIERA Condominium 99 years February 03, 2017 603 740,000 - 1,228 Uncompleted New SalePARC RIVIERA Condominium 99 years February 04, 2017 463 623,000 - 1,346 Uncompleted New SalePARC RIVIERA Condominium 99 years February 04, 2017 463 613,000 - 1,324 Uncompleted New SalePARC RIVIERA Condominium 99 years February 04, 2017 603 746,000 - 1,238 Uncompleted New SalePARC RIVIERA Condominium 99 years February 04, 2017 646 795,000 - 1,231 Uncompleted New SalePARC RIVIERA Condominium 99 years February 04, 2017 667 807,000 - 1,209 Uncompleted New SalePARC RIVIERA Condominium 99 years February 05, 2017 463 588,000 - 1,270 Uncompleted New SalePARC RIVIERA Condominium 99 years February 05, 2017 603 748,000 - 1,241 Uncompleted New SalePARC RIVIERA Condominium 99 years February 05, 2017 603 776,000 - 1,287 Uncompleted New SalePARC RIVIERA Condominium 99 years February 05, 2017 463 594,000 - 1,283 Uncompleted New SalePARC RIVIERA Condominium 99 years February 05, 2017 603 750,000 - 1,244 Uncompleted New SalePARC RIVIERA Condominium 99 years February 05, 2017 603 750,000 - 1,244 Uncompleted New SaleREGENT PARK Condominium 99 years February 06, 2017 904 818,000 - 905 1997 ResaleTHE ORIENT Apartment Freehold February 01, 2017 721 1,317,400 - 1,827 Uncompleted New SaleTHE PARC CONDOMINIUM Condominium Freehold February 06, 2017 980 1,180,000 - 1,205 2010 ResaleTHE TRILINQ Condominium 99 years February 01, 2017 1,044 1,449,000 - 1,388 Uncompleted New SaleTHE TRILINQ Condominium 99 years February 01, 2017 1,044 1,482,000 - 1,419 Uncompleted New SaleTHE TRILINQ Condominium 99 years February 02, 2017 1,055 1,416,000 - 1,342 Uncompleted New SaleTHE TRILINQ Condominium 99 years February 03, 2017 1,346 1,602,000 - 1,191 Uncompleted New SaleDistrict 8 CITY SQUARE RESIDENCES Condominium Freehold February 01, 2017 570 888,888 - 1,558 2008 ResaleFORTE SUITES Apartment Freehold February 05, 2017 603 1,084,600 - 1,799 2016 New SalePARC SOMME Apartment 99 years January 31, 2017 355 565,000 - 1,591 2012 ResaleSTURDEE RESIDENCES Condominium 99 years February 05, 2017 721 1,112,700 - 1,543 Uncompleted New SaleSTURDEE RESIDENCES Condominium 99 years February 05, 2017 1,044 1,601,200 - 1,534 Uncompleted New SaleDistrict 9 ASPEN HEIGHTS Condominium 999 years February 03, 2017 1,604 2,250,000 - 1,403 1998 ResaleKIM SIA COURT Apartment Freehold February 01, 2017 1,421 2,300,000 - 1,619 Unknown ResaleOUE TWIN PEAKS Condominium 99 years January 31, 2017 1,055 2,321,000 - 2,200 2015 ResaleOUE TWIN PEAKS Condominium 99 years January 31, 2017 1,604 4,619,999 - 2,881 2015 ResaleOUE TWIN PEAKS Condominium 99 years January 31, 2017 1,055 2,940,500 - 2,788 2015 ResaleOUE TWIN PEAKS Condominium 99 years February 03, 2017 1,055 3,217,500 - 3,050 2015 ResaleOUE TWIN PEAKS Condominium 99 years February 06, 2017 1,604 4,355,280 - 2,716 2015 ResaleOUE TWIN PEAKS Condominium 99 years February 07, 2017 1,399 3,491,400 - 2,495 2015 ResaleSCOTTS SQUARE Apartment Freehold February 03, 2017 1,249 3,650,000 - 2,923 2011 ResaleSOPHIA HILLS Condominium 99 years February 02, 2017 700 1,354,000 - 1,935 Uncompleted New SaleSOPHIA HILLS Condominium 99 years February 04, 2017 753 1,397,000 - 1,854 Uncompleted New SaleTHE COSMOPOLITAN Condominium Freehold February 06, 2017 1,141 2,270,000 - 1,990 2008 ResaleTHE PEAK @ CAIRNHILL II Apartment Freehold February 05, 2017 829 2,359,000 - 2,846 2015 ResaleTHE QUAYSIDE Apartment 99 years February 02, 2017 1,550 1,700,000 - 1,097 1998 ResaleTHE RISE @ OXLEY - RESIDENCES Apartment Freehold February 01, 2017 646 1,550,000 - 2,400 Uncompleted New Sale

LAND AREA/ NETT UNIT FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OFPROJECT PROPERTY TYPE TENURE SALE DATE (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE

One- and two-bedroom units at Queens Peak were sold at $728,000 to $1.17 million

DONE DEALS

Buyers return to Alexandra-Commonwealth | BY TAN CHEE YUEN |

Developments launched as far

back as 2013 have benefited

from the lack of new ones

so far this year. This was

most evident in the Alexan-

dra-Commonwealth neighbourhood,

where there have been six launches

with a total of 3,650 units since 2013.

The latest launch in the area was

in November — that of 736-unit

Queens Peak, a 99-year leasehold

condominium developed by Hao

Yuan Investment-MCC Land. The

project sold 11 units in January at

a median price of $1,684 psf. In the

first week of February, another hand-

ful of units were sold at prices rang-

ing from $728,000 ($1,691 psf) for a

431 sq ft, one-bedroom unit to $1.17

million ($1,505 psf) for a 775 sq ft,

two-bedroom unit, according to ca-

veats lodged with URA Realis. The

project is about 40% sold.

Adjacent to Queens Peak is 845-

unit Commonwealth Towers, a 99-

year leasehold condo by City Develop-

ments. It sold 12 units at a median

price of $1,709 psf in January, ac-

cording to URA data.

Property agents say the devel-

oper is offering special discounts

for selected one- and two-bedroom

units, whereby units will have a

flat psf price regardless of the lev-

el on which they are located. This

was seen in the transactions of two

753 sq ft, two-bedroom units on the

22nd and 23rd floors, which were

sold for $1,709 psf in February. Buy-

ers of selected three- and four-bed-

room units from the 20th floor are

also given discounts, which will

end later this month. Launched in

May 2014, Commonwealth Towers

is 56% sold.

Besides the recent launches, even

older condos in the Alexandra area

are seeing a revival in interest. Most

notably, 775-unit The Anchorage has

seen a pickup in transactions since

end-2016. The freehold project by

Frasers Centrepoint was complet-

ed 40 years ago. According to a ca-

veat lodged on Feb 2, two 1,507 sq

ft, three-bedroom units changed

hands: The unit on the 10th floor

fetched $1.78 million ($1,181 psf)

and the one on the 19th floor was

sold for $1.8 million ($1,194 psf). It

seems buyers are hunting for value

buys again. E

Two 1,507 sq ft units at The Anchorage on Alexandra Road changed hands at$1.78 million to $1.8 million

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THEEDGE SINGAPORE | FEBRUARY 20, 2017 • EP13

DISCLAIMER:Source: URA Realis. Updated Feb 14, 2017. The Edge Publishing Pte Ltd shall not be responsible for any loss or liability arising directly or indirectly from the use of, or reliance on, the information provided therein.

Residential transactions with contracts dated Jan 31 to Feb 7

LAND AREA/ NETT UNIT FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OFPROJECT PROPERTY TYPE TENURE SALE DATE (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE

District 10 ARDMORE THREE Condominium Freehold February 02, 2017 1,776 6,639,860 - 3,739 2014 ResaleARDMORE THREE Condominium Freehold February 02, 2017 1,776 7,069,875 - 3,981 2014 ResaleBELLERIVE Apartment Freehold February 03, 2017 1,539 2,520,000 - 1,637 2011 ResaleCHARMING GARDEN Condominium 999 years February 03, 2017 1,808 2,300,000 - 1,272 1984 ResaleCYAN Condominium Freehold February 01, 2017 1,001 1,975,000 - 1,973 2014 ResaleDALVEY COURT Apartment Freehold February 06, 2017 2,142 2,600,000 - 1,214 1976 ResaleD’LEEDON Condominium 99 years January 31, 2017 1,582 2,500,000 - 1,580 2014 ResaleGRAMERCY PARK Condominium Freehold February 01, 2017 1,981 5,442,390 - 2,748 2016 ResaleLEEDON RESIDENCE Condominium Freehold February 02, 2017 8,051 12,500,000 - 1,553 2015 ResaleJALAN KEBAYA Detached Freehold February 06, 2017 8,170 9,650,000 - 1,181 Unknown ResalePARVIS Condominium Freehold February 06, 2017 1,701 2,800,000 - 1,646 2012 ResaleRAINBOW MANSION Apartment Freehold February 06, 2017 1,453 2,000,000 - 1,376 Unknown ResaleROBIN SUITES Apartment Freehold January 31, 2017 829 988,888 - 1,193 2016 New SaleROBIN SUITES Apartment Freehold February 02, 2017 1,722 1,630,000 - 946 2016 New SaleSOMMERVILLE PARK Condominium Freehold February 01, 2017 1,302 2,080,000 - 1,597 1985 ResaleTHE LEGEND Condominium Freehold February 01, 2017 1,453 1,845,000 - 1,270 1996 ResaleTHE MERASAGA Condominium 99 years February 01, 2017 947 1,350,000 - 1,425 1995 ResaleDistrict 11 26 NEWTON Apartment Freehold February 02, 2017 484 1,100,000 - 2,271 2016 New Sale26 NEWTON Apartment Freehold February 04, 2017 484 1,100,000 - 2,271 2016 New Sale6 DERBYSHIRE Condominium Freehold January 31, 2017 474 1,086,654 - 2,294 2017 New SaleDUNEARN GARDENS Condominium Freehold February 01, 2017 1,238 1,800,000 - 1,454 1992 ResaleHILLCREST VILLA Terrace 99 years January 31, 2017 3,089 2,830,000 - 916 2009 ResaleNEWTON SUITES Apartment Freehold February 02, 2017 797 1,455,000 - 1,827 2007 ResaleNOVELIS Apartment Freehold February 02, 2017 807 1,250,000 - 1,548 2008 ResaleRESIDENCES @ NOVENA Semi-Detached 99 years February 03, 2017 2,637 2,600,000 - 985 2004 ResaleTHE SPRINGS Apartment Freehold February 03, 2017 1,076 1,500,000 - 1,394 2003 ResaleTHOMSON 800 Condominium Freehold February 03, 2017 1,625 1,828,000 - 1,125 1999 ResaleWATTEN HILL Condominium Freehold February 01, 2017 1,044 1,000,000 - 958 1979 ResaleDistrict 12 EIGHT RIVERSUITES Condominium 99 years February 07, 2017 700 1,050,000 - 1,501 2016 Sub SalePINNACLE 16 Apartment Freehold February 02, 2017 592 878,000 - 1,483 2006 ResaleDistrict 13 8@WOODLEIGH Condominium 99 years February 03, 2017 1,658 1,800,000 - 1,086 2012 Resale8@WOODLEIGH Condominium 99 years February 06, 2017 829 1,080,000 - 1,303 2012 ResaleHAPPY AVENUE NORTH Terrace Freehold February 02, 2017 1,819 2,133,000 - 1,170 1991 ResaleTHE POIZ RESIDENCES Apartment 99 years February 04, 2017 592 692,000 - 1,169 Uncompleted New SaleTHE POIZ RESIDENCES Apartment 99 years February 04, 2017 1,184 1,643,112 - 1,388 Uncompleted New SaleTHE VENUE RESIDENCES Apartment 99 years February 03, 2017 840 1,133,800 - 1,350 Uncompleted New SaleTHE VENUE RESIDENCES Apartment 99 years February 04, 2017 1,130 1,300,000 - 1,150 Uncompleted New SaleTHE VENUE RESIDENCES Apartment 99 years February 05, 2017 850 1,170,000 - 1,376 Uncompleted New SaleDistrict 14 ASTON MANSIONS Apartment 99 years February 06, 2017 1,012 760,000 - 751 1998 ResaleBEAU VISTA Terrace Freehold February 02, 2017 2,530 1,720,000 - 680 2008 ResaleCOSY 23 Apartment Freehold February 03, 2017 1,023 820,000 - 802 1999 ResaleCHANGI ROAD Apartment Freehold February 03, 2017 1,550 1,180,000 - 761 1983 ResaleSIMS URBAN OASIS Condominium 99 years January 31, 2017 667 934,092 - 1,400 Uncompleted New SaleSIMS URBAN OASIS Condominium 99 years February 05, 2017 1,033 1,398,100 - 1,353 Uncompleted New SaleDistrict 15 BUTTERWORTH VIEW Apartment Freehold February 03, 2017 1,216 1,350,000 - 1,110 1999 ResaleCOSTA RHU Condominium 99 years February 02, 2017 2,056 2,335,000 - 1,136 1997 ResaleEASTERN LAGOON Condominium Freehold February 01, 2017 893 983,000 - 1,100 1985 ResaleEASTWIND MANSIONS Apartment Freehold January 31, 2017 786 820,000 - 1,044 1992 ResaleJOO CHIAT PLACE Apartment Freehold February 02, 2017 1,163 980,000 - 843 1996 ResaleJOO CHIAT PLACE Apartment Freehold February 03, 2017 1,098 860,000 - 783 1979 ResaleONE AMBER Condominium Freehold February 07, 2017 570 990,000 - 1,735 2010 ResaleTHE MEYERISE Condominium Freehold February 06, 2017 883 1,638,888 - 1,857 2014 ResaleDistrict 16 BAYSHORE PARK Condominium 99 years February 03, 2017 2,196 1,630,000 - 742 1986 ResaleBEDOK RESIDENCES Apartment 99 years February 03, 2017 581 830,000 - 1,428 2015 ResaleLUCKY VIEW Semi-Detached Freehold February 03, 2017 3,358 3,200,000 - 952 Unknown ResalePICARDY GARDENS Detached Freehold February 02, 2017 4,338 4,800,000 - 1,108 2008 ResaleTHE BAYSHORE Condominium 99 years February 06, 2017 969 868,000 - 896 1996 ResaleTHE GLADES Condominium 99 years January 31, 2017 990 1,293,200 - 1,306 2016 New SaleTHE GLADES Condominium 99 years February 02, 2017 1,066 1,550,000 - 1,455 2016 New SaleDistrict 17 ESTELLA GARDENS Condominium Freehold February 06, 2017 1,259 955,000 - 758 1999 ResaleDistrict 18 DOUBLE BAY RESIDENCES Condominium 99 years February 02, 2017 1,367 1,450,000 - 1,061 2012 ResaleDOUBLE BAY RESIDENCES Condominium 99 years February 03, 2017 1,550 1,560,000 - 1,006 2012 ResaleNV RESIDENCES Condominium 99 years February 01, 2017 1,227 1,136,000 - 926 2013 ResaleOASIS @ ELIAS Condominium 99 years January 31, 2017 1,475 1,250,000 - 848 2011 ResaleTHE ALPS RESIDENCES Condominium 99 years February 03, 2017 700 714,000 - 1,020 Uncompleted New SaleTHE PALETTE Condominium 99 years February 01, 2017 883 870,000 - 986 2015 Sub SaleTHE SANTORINI Condominium 99 years February 03, 2017 1,238 1,175,105 - 949 Uncompleted New SaleTHE SANTORINI Condominium 99 years February 05, 2017 527 627,000 - 1,189 Uncompleted New SaleTHE SANTORINI Condominium 99 years February 05, 2017 1,119 1,191,960 - 1,065 Uncompleted New SaleTHE SANTORINI Condominium 99 years February 05, 2017 743 778,140 - 1,048 Uncompleted New SaleVUE 8 RESIDENCE Condominium 99 years February 04, 2017 1,249 1,030,000 - 825 Uncompleted New SaleDistrict 19 CHARLTON VILLAS Terrace Freehold February 03, 2017 3,649 2,000,000 - 548 2010 ResaleCOMPASS HEIGHTS Apartment 99 years February 01, 2017 1,238 1,030,000 - 832 2002 ResaleFLO RESIDENCE Condominium 99 years February 01, 2017 1,044 920,000 - 881 2016 Sub SaleFLO RESIDENCE Condominium 99 years February 06, 2017 1,227 1,065,000 - 868 2016 Sub SaleFLORENCE REGENCY Apartment 103 years January 31, 2017 1,679 915,000 - 545 Unknown ResaleFOREST WOODS Condominium 99 years January 31, 2017 980 1,354,000 - 1,382 Uncompleted New SaleFOREST WOODS Condominium 99 years February 04, 2017 1,281 1,776,000 - 1,387 Uncompleted New SaleFOREST WOODS Condominium 99 years February 04, 2017 743 1,028,000 - 1,384 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years January 31, 2017 689 866,478 - 1,258 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years January 31, 2017 1,033 1,231,000 - 1,191 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years January 31, 2017 1,109 1,302,112 - 1,174 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years January 31, 2017 883 1,027,000 - 1,164 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years January 31, 2017 883 1,021,112 - 1,157 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years February 01, 2017 980 1,107,000 - 1,130 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years February 01, 2017 883 1,016,000 - 1,151 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years February 02, 2017 980 1,135,000 - 1,159 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years February 02, 2017 1,023 1,120,000 - 1,095 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years February 02, 2017 1,109 1,306,000 - 1,178 Uncompleted New SaleKINGSFORD WATERBAY Apartment 99 years February 02, 2017 861 970,000 - 1,126 Uncompleted New SaleKOVAN RESIDENCES Condominium 99 years February 06, 2017 2,400 2,400,000 - 1,000 2011 ResaleLA FIESTA Condominium 99 years February 03, 2017 452 630,000 - 1,394 2016 Sub SaleLA FIESTA Condominium 99 years February 07, 2017 452 620,000 - 1,371 2016 Sub SaleRIO VISTA Condominium 99 years February 01, 2017 1,238 855,000 - 691 2004 ResaleRIO VISTA Condominium 99 years February 06, 2017 2,465 1,800,000 - 730 2004 ResaleSERANGOON GARDEN ESTATE Terrace 999 years January 31, 2017 2,153 2,230,000 - 1,034 Unknown ResaleSTARS OF KOVAN Apartment 99 years February 02, 2017 506 749,920 - 1,482 Uncompleted New SaleTERRASSE Condominium 99 years January 31, 2017 1,421 1,500,000 - 1,056 2014 ResaleTHE CHUAN Condominium 999 years February 03, 2017 1,464 1,880,000 - 1,284 2007 ResaleTHE LUXURIE Condominium 99 years February 03, 2017 1,109 985,000 - 888 2015 Resale

LAND AREA/ NETT UNIT FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OFPROJECT PROPERTY TYPE TENURE SALE DATE (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE

THE TERRACE EC 99 years January 31, 2017 1,001 770,600 - 770 Uncompleted New SaleTHE TERRACE EC 99 years January 31, 2017 1,076 801,200 - 744 Uncompleted New SaleTHE TERRACE EC 99 years January 31, 2017 1,076 780,100 - 725 Uncompleted New SaleTHE TERRACE EC 99 years February 03, 2017 1,001 818,600 - 818 Uncompleted New SaleTHE TERRACE EC 99 years February 03, 2017 1,001 790,600 - 790 Uncompleted New SaleTHE TERRACE EC 99 years February 04, 2017 1,001 758,600 - 758 Uncompleted New SaleTHE TERRACE EC 99 years February 04, 2017 1,001 803,700 - 803 Uncompleted New SaleTHE TERRACE EC 99 years February 05, 2017 1,001 818,600 - 818 Uncompleted New SaleTHE TERRACE EC 99 years February 05, 2017 1,076 785,100 - 729 Uncompleted New SaleTHE TERRACE EC 99 years February 05, 2017 1,001 795,700 - 795 Uncompleted New SaleTHE VALES EC 99 years February 02, 2017 904 745,888 - 825 Uncompleted New SaleWATERTOWN Apartment 99 years February 01, 2017 527 648,000 - 1,229 Uncompleted Sub SaleDistrict 20 CLOVER BY THE PARK Condominium 99 years January 31, 2017 1,281 1,600,000 - 1,249 2011 ResaleCLOVER BY THE PARK Condominium 99 years February 06, 2017 1,733 2,000,000 - 1,154 2011 ResaleFLAME TREE PARK Condominium Freehold February 06, 2017 1,765 1,750,000 - 991 1989 ResaleFULTON HILL Terrace Freehold February 02, 2017 1,862 2,450,000 - 1,319 1981 ResaleLAKEVIEW ESTATE Apartment 99 years February 06, 2017 1,615 1,200,000 - 743 1977 ResalePEIRCE VIEW Condominium Freehold February 01, 2017 936 950,000 - 1,014 1996 ResaleTHOMSON IMPRESSIONS Apartment 99 years February 01, 2017 1,055 1,475,900 - 1,399 Uncompleted New SaleTHOMSON IMPRESSIONS Apartment 99 years February 04, 2017 1,055 1,454,390 - 1,379 Uncompleted New SaleTHOMSON IMPRESSIONS Apartment 99 years February 05, 2017 1,195 1,608,700 - 1,346 Uncompleted New SaleDistrict 21 PANDAN VALLEY Condominium Freehold February 07, 2017 2,024 1,800,000 - 889 1978 ResalePARC PALAIS Condominium Freehold January 31, 2017 1,292 1,280,000 - 991 1999 ResalePINE GROVE Condominium 99 years February 01, 2017 1,755 1,400,000 - 798 Unknown ResalePINE GROVE Condominium 99 years February 02, 2017 1,690 1,268,000 - 750 Unknown ResaleSHERWOOD TOWER Apartment 99 years February 06, 2017 1,518 1,038,000 - 684 1980 ResaleSYMPHONY HEIGHTS Condominium Freehold February 02, 2017 1,647 1,700,000 - 1,032 1998 ResaleDistrict 22 LAKE GRANDE Condominium 99 years February 02, 2017 980 1,240,000 - 1,266 Uncompleted New SaleLAKE GRANDE Condominium 99 years February 03, 2017 818 1,085,000 - 1,326 Uncompleted New SaleLAKE GRANDE Condominium 99 years February 04, 2017 980 1,236,000 - 1,262 Uncompleted New SalePARC OASIS Condominium 99 years February 06, 2017 1,227 890,000 - 725 1994 ResaleTHE CENTRIS Apartment 99 years January 31, 2017 1,442 1,650,000 - 1,144 2009 ResaleTHE LAKESHORE Condominium 99 years February 01, 2017 1,184 1,225,000 - 1,035 2008 ResaleWESTWOOD PARK Terrace 99 years February 01, 2017 1,615 1,350,000 - 836 1998 ResaleWESTWOOD RESIDENCES EC 99 years January 31, 2017 947 703,100 - 742 Uncompleted New SaleWESTWOOD RESIDENCES EC 99 years February 01, 2017 947 733,300 - 774 Uncompleted New SaleWESTWOOD RESIDENCES EC 99 years February 02, 2017 1,152 952,300 - 827 Uncompleted New SaleWESTWOOD RESIDENCES EC 99 years February 04, 2017 1,033 857,000 - 829 Uncompleted New SaleWESTWOOD RESIDENCES EC 99 years February 05, 2017 1,033 816,100 - 790 Uncompleted New SaleYUNNAN GARDENS Terrace Freehold February 03, 2017 2,551 2,128,000 - 835 2000 ResaleDistrict 23 DAIRY FARM ESTATE Condominium Freehold February 01, 2017 2,196 2,025,000 - 922 1989 ResaleGLENDALE PARK Condominium Freehold February 03, 2017 1,249 1,300,000 - 1,041 2000 ResaleGLENDALE PARK Condominium Freehold February 07, 2017 1,216 1,249,000 - 1,027 2000 ResaleHILLION RESIDENCES Apartment 99 years February 03, 2017 474 647,680 - 1,368 Uncompleted New SaleKINGSFORD . HILLVIEW PEAK Condominium 99 years January 31, 2017 1,109 1,490,000 - 1,344 2017 New SaleKINGSFORD . HILLVIEW PEAK Condominium 99 years January 31, 2017 2,164 1,850,000 - 855 2017 New SaleKINGSFORD . HILLVIEW PEAK Condominium 99 years January 31, 2017 1,119 984,720 - 880 2017 New SaleKINGSFORD . HILLVIEW PEAK Condominium 99 years January 31, 2017 1,658 1,459,040 - 880 2017 New SaleKINGSFORD . HILLVIEW PEAK Condominium 99 years January 31, 2017 1,087 956,560 - 880 2017 New SaleMAYSPRINGS Apartment 99 years February 07, 2017 1,410 960,000 - 681 1998 ResaleMERA WOODS Condominium 999 years February 03, 2017 1,938 1,950,000 - 1,006 1999 ResalePAVILION PARK Terrace Freehold February 03, 2017 2,347 3,200,000 - 1,361 2014 ResaleSOL ACRES EC 99 years January 31, 2017 1,098 959,000 - 873 Uncompleted New SaleSOL ACRES EC 99 years January 31, 2017 1,044 861,000 - 825 Uncompleted New SaleSOL ACRES EC 99 years February 01, 2017 1,098 932,000 - 849 Uncompleted New SaleSOL ACRES EC 99 years February 01, 2017 850 661,000 - 777 Uncompleted New SaleSOL ACRES EC 99 years February 01, 2017 850 658,000 - 774 Uncompleted New SaleSOL ACRES EC 99 years February 03, 2017 1,066 826,000 - 775 Uncompleted New SaleSOL ACRES EC 99 years February 03, 2017 614 473,000 - 771 Uncompleted New SaleSOL ACRES EC 99 years February 04, 2017 1,066 866,000 - 813 Uncompleted New SaleSOL ACRES EC 99 years February 05, 2017 1,044 821,000 - 786 Uncompleted New SaleSOL ACRES EC 99 years February 05, 2017 872 679,000 - 779 Uncompleted New SaleSOL ACRES EC 99 years February 05, 2017 1,098 859,000 - 782 Uncompleted New SaleWANDERVALE EC 99 years January 31, 2017 1,098 833,000 - 759 Uncompleted New SaleDistrict 25 BELLEWOODS EC 99 years January 31, 2017 1,227 915,680 - 746 Uncompleted New SaleBELLEWOODS EC 99 years February 04, 2017 1,227 949,620 - 774 Uncompleted New SaleBELLEWOODS EC 99 years February 04, 2017 1,249 969,200 - 776 Uncompleted New SaleNORTHWAVE EC 99 years January 31, 2017 1,270 950,440 - 748 Uncompleted New SaleNORTHWAVE EC 99 years January 31, 2017 990 777,960 - 786 Uncompleted New SaleNORTHWAVE EC 99 years February 03, 2017 1,109 808,450 - 729 Uncompleted New SaleNORTHWAVE EC 99 years February 04, 2017 1,098 809,134 - 737 Uncompleted New SaleWOODSVALE EC 99 years January 31, 2017 1,292 825,000 - 639 2000 ResaleDistrict 26 CASTLE GREEN Condominium 99 years February 03, 2017 1,152 970,000 - 842 1997 ResaleTHE COUNTRYSIDE Detached Freehold February 02, 2017 5,500 5,000,000 - 909 1998 ResaleDistrict 27 PARC LIFE EC 99 years February 01, 2017 1,270 960,450 958,150 754 Uncompleted New SalePARC LIFE EC 99 years February 02, 2017 1,055 797,050 794,750 753 Uncompleted New SalePARC LIFE EC 99 years February 04, 2017 1,109 810,350 808,050 729 Uncompleted New SalePARC LIFE EC 99 years February 05, 2017 1,109 892,050 889,750 803 Uncompleted New SaleSIGNATURE AT YISHUN EC 99 years February 02, 2017 1,076 804,870 - 748 Uncompleted New SaleSIGNATURE AT YISHUN EC 99 years February 03, 2017 947 697,915 - 737 Uncompleted New SaleSIGNATURE AT YISHUN EC 99 years February 05, 2017 1,098 817,810 - 745 Uncompleted New SaleTHE BROWNSTONE EC 99 years January 31, 2017 915 734,400 - 803 Uncompleted New SaleTHE BROWNSTONE EC 99 years February 05, 2017 936 782,400 - 835 Uncompleted New SaleTHE CRITERION EC 99 years February 03, 2017 1,119 890,400 - 795 Uncompleted New SaleTHE CRITERION EC 99 years February 04, 2017 1,023 772,800 - 756 Uncompleted New SaleTHE SHAUGHNESSY Terrace 99 years February 02, 2017 3,283 1,380,000 - 420 2006 ResaleTHE VISIONAIRE EC 99 years January 31, 2017 1,109 823,000 - 742 Uncompleted New SaleTHE VISIONAIRE EC 99 years February 02, 2017 1,281 976,500 - 762 Uncompleted New SaleTHE VISIONAIRE EC 99 years February 05, 2017 872 710,000 - 814 Uncompleted New SaleTHE VISIONAIRE EC 99 years February 05, 2017 980 767,500 - 784 Uncompleted New SaleTHE WISTERIA Apartment 99 years January 31, 2017 1,173 1,170,200 - 997 Uncompleted New SaleTHE WISTERIA Apartment 99 years February 01, 2017 969 978,118 - 1,010 Uncompleted New SaleTHE WISTERIA Apartment 99 years February 02, 2017 969 985,412 - 1,017 Uncompleted New SaleTHE WISTERIA Apartment 99 years February 03, 2017 969 1,022,212 - 1,055 Uncompleted New SaleTHE WISTERIA Apartment 99 years February 05, 2017 1,173 1,308,500 - 1,115 Uncompleted New SaleTHE WISTERIA Apartment 99 years February 05, 2017 969 973,312 - 1,005 Uncompleted New SaleDistrict 28 NIM GARDENS Condominium Freehold February 01, 2017 1,830 1,400,000 - 765 1986 ResaleRIVERTREES RESIDENCES Apartment 99 years February 05, 2017 947 1,009,180 - 1,065 Uncompleted New SaleSELETAR HILLS ESTATE Terrace 999 years February 03, 2017 3,251 3,398,888 - 1,047 Unknown Resale

DONE DEALS

EP14 • THEEDGE SINGAPORE | FEBRUARY 20, 2017

DEAL WATCH

| BY TAN CHEE YUEN |

A1,399 sq ft, three-bedroom unit at

The Metropolitan Condominium was

recently put up for sale on TheEdge

Property.com for $1.8 million ($1,287

psf). The unit is currently tenanted

at a monthly rent of $4,300 with the lease ex-

piring in January 2019, according to Pamela

Lim, a property agent at ERA Realty who is

marketing the unit. That translates into a rent-

al yield of 2.9% a year, which is considered

attractive in the current market.

The Metropolitan Condominium is a 99-year

leasehold development located on Alexandra

View that was jointly developed by CapitaLand

and Lippo Group. The 382-unit high-rise devel-

opment with units spread over two 45-storey

tower blocks was completed in 2009.

The project is conveniently located, just a

100m walk from Redhill MRT Station on the

East-West Line, and in the vicinity of ameni-

ties in established HDB estates such as Bukit

Merah Town Centre, Redhill market and Tiong

Bahru Plaza.

Unit types consist of two- to four-bedroom

apartments measuring 721 to 1,894 sq ft, as

well as four-bedroom duplex penthouses with

roof terraces measuring up to 3,412 sq ft.

When The Metropolitan was launched for

sale in November 2006, average prices were

$780 psf. At the peak of the market, a 721 sq

ft unit changed hands for $1,750 psf in August

2013. Since then, as more new condo projects

have been launched in the vicinity and, owing

to the property cooling measures, prices have

softened to an average of $1,388 psf in 2014

and $1,292 psf last year.

The most recent transaction of a three-bed-

room unit was that of a 1,421 sq ft apartment

on the 28th floor that fetched $1.82 million

($1,281 psf), according to a caveat lodged ear-

lier this month.

For more information, visit tinyurl.com/

DealWatch-S767.

Recent transactions at The Metropolitan Condominium

CONTRACT DATE AREA (SQ FT) PRICE ($ MIL) PRICE ($ PSF)

Feb 1, 2017 1,421 1.820 1,281Jan 20, 2017 2,831 3.438 1,214July 29, 2016 1,733 2.200 1,269June 27, 2016 1,033 1.430 1,384June 22, 2016 1,744 2.220 1,273June 13, 2016 1,744 2.220 1,273June 2, 2016 1,421 1.849 1,301

TABL

ES: U

RA, T

HE E

DGE

PRO

PERT

Y

Recent rental contracts for 1,300 to 1,400 sq ft units at The Metropolitan Condominium

LEASE DATE MONTHLY RENT $ $ PSF

December 2016 4,400 3.30

December 2016 4,400 3.30

December 2016 4,400 3.30

November 2016 5,100 3.80

November 2016 5,400 4.00

Unit at The Metropolitan on the market for $1,287 psf

When The Metropolitan was launched for sale in November 2006, average prices were $780 psf

SAM

UEL

ISAA

C CH

UA/T

HE E

DGE

SIN

GAP

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E

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