Singapore Property Weekly Issue 169

8/11/2019 Singapore Property Weekly Issue 169

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Issue 169Copyright 2011-2014 www.Propwise.sg . All Rights Reserved.
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CONTENTS

p2 4 Reasons Why the New Thomson-East

Coast Line Might Not Be Good for

Property Owners

p8 Singapore Property News This Week

p13 Resale Property Transactions

(July 30 August 5 )

Welcome to the 169 th edition of theSingapore Property Weekly .

Hope you like it!

Mr. Propwise

FROM THE

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


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SINGAPORE PROPERTY WEEKLY Issue 169

Page | 2Back to Contents

By Property Soul (Guest Contributor)

On August 15, the Land Transport Authorityand Singapore Land Authority issued a jointpress release that Singapore is going to have

a sixth MRT line known as the Thomson-EastCoast Line (TEL). This is a follow-up on theJan 2013 announcement about theconstruction of two new MRT lines previouslyknown as Thomson Line and Eastern RegionLine. The two are now grouped into one, with

the completion timeline changed from 2020-2021 to 2023-2024.

4 Reasons Why the New Thomson-East Coast Line Might Not BeGood for Property Owners
http://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7dhttp://app.lta.gov.sg/apps/news/page.aspx?c=2&id=3cc2e460-06ea-4245-a37f-df11b602ec7d


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Expect lots of work-in-progress MRT sites

From 2015 to 2030, there are countlessstations being added to the existing MRT

map:1. Construction of the new Thomson-EastCoast Line, Cross Island Line and JurongRegion Line;

2. Building of Downtown Line stage 2, Circle

Line stage 6 and possible station betweenYishun and Sembawang; and

3. Extension of North-East Line, North-SouthLine, Downtown Line and Tuas West.

In the next 16 years or so, no matter which

direction you take to travel across the island,you probably cant help walking or drivingpast an MRT construction site.

But on the other hand, if infrastructuredevelopment is key to economic growth, isntthat good news whenever we see the little reddot adding another terminal, a newexpressway, more ERPs and additional MRTlines?

Projects near to the Thomson-East CoastLine

Calvin Yeo, Managing Director of Dr Wealth,has written a post on projects in the East thatwill benefit from the new Thomson-EastCoast Line. However, I have reservationswhether owners of the nearby developmentare sitting on a goldmine, at least not in thecoming few years, for the following reasons:
http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/http://www.drwealth.com/2014/08/16/properties-east-coast-benefit-new-mrt-line/


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1. It is just another project next to the MRTstation

When all the new lines and extensions arecompleted, the MRT map will look like this:

The network includes 6 rail lines, 28interchanges, 146 MRT stations or 186

stations with LRT stations. (Gosh I hope theywon't include a compulsory test on thesequence and spellings of all MRT stations inthe PSLE, or the application for permanent

residence or citizenship.)

The fact is, by 2030, one can hardly find aresidential area in Singapore, regardless of whether it is in the CCR, RCR or OCR, notcovered by an MRT line or unreachable by an

MRT station. (Read more about the pros andcons of staying near an MRT station in myearlier blog post 'Should you buy near to thenew MRT lines? '.)

2. It must coincide with a property boom

In 2009, when the building of Downtown Linestage 2 was out, optimism coupled withspeculation drove the COV of HDB flats inBukit Panjang up by 10 percent in a yearstime.
http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/http://propertysoul.com/2013/01/18/should-you-buy-near-to-the-mrt-line/


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TODAY interviewed property agents whoclaimed that the COV was up from $25,000 to$40,000, with the highest COV escalating to$120,000 for a five-room flat. Developers also

launched a few condominium projects near the future Bukit Panjang station asking for premium prices.

But in February 2014, Bukit Panjang HDBflats led the drop with almost the biggest drop

in overall median COVs among all thedistricts, according to research by SRX.

It shows that property prices in the proximitymay have a short-live surge reacting to thenews of a new development plan, especiallyamid a booming market. But prices will still

drop together with properties in other districtsin a bear market.

And by the time the infrastructure is finallycompleted, the convenience of being situated

next to an MRT station may have alreadybeen reflected in the raised prices. Whether prices can climb higher depends very muchon the market sentiment and the performance

of the property market at that time.

3. It is affected by supply and demand

Do you notice that the East Coast is getting abit overcrowded these days? With developersunceasing construction of new

condominiums, landlords are beginning tofeel the keen competition in rental. It is gettingmore difficult to find new tenants now andvacancy rate is high for some projects.

On the other hand, traffic has worsened onthe East Coast Expressway over the years,especially during peak hours. The TEL ismeant to serve areas not near to any East-West Line station and to relieve overcrowdingin existing stations.


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After all, these are the two major objectives of the government building the new MRT line,which has nothing to do with helping resaleprices or rental rates of properties there.

4. It has to endure the pain before the gain

TEL stations are designed with moreentrances and exits. So expect more

construction sites on the ground. For thecoming eight years or so, residents stayingnear the planned MRT stations will have toput up with air and noise pollution from the

construction, coupled with unavoidable traffic jams from road diversions and moving of heavy vehicles. They also have to prepare for construction work continuing into the nightsand weekends.

For the next few years, you can imagine thedifficulties when owners are looking for tenants or buyers for their properties. Anddont forget that the year of completion is justan estimation. Construction work can bedelayed due to resident complaints, labor issues, etc.

Residents staying nearby can only pray that,while the new MRT line aims to shorten thetime to 'downtown' for commuters,


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the authority can shorten the property 'downtime' for owners too.

When the TEL line is finally completed, for theconvenience of an MRT station at your doorstep, it may still be worth the wait. But itwill be almost 10 years from now. Whoknows? By then we may have already seenone or even two property cycles.

If you are interested to buy near the

Thomson-East Coast Line, take note of thepitfalls and time your purchase strategically.

And make sure that you have the holdingpower to hold the property for the long-term.

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

S GA O O 169
http://propertysoul.com/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://www.moneymatters.sg/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://propertysoul.com/


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Singapore Property This Week


Residential

Sellers s t amp duty cu rbs specula t ion

According to a study by Ngee AnnPolytechnic, subsales for non-land high-endprivate homes that were lodged for H1 werefrom units that were bought between 2009and 2010. Similarly, in the mass-marketsegment, 73 per cent of subsale transactionsinvolved properties bought in 2009 and 2010.Since subsales reflect the level of speculationwithin the market, this trend which shows thatsubsales involve long-holding transactions,suggests that cooling measures such as thesellers stamp duty (SSD) have been effective

in reducing speculation. Following the SSDscheme, residential properties that werebought from 2011 onward and sold within four years had to incur a maximum of 16 per centstamp duty fee. According to the study byNgee Ann Polytechnic, 75 per cent of the 40subsales in the core central region madeprofits, while 97 per cent of the 142 subsalesin the outside central region profited. Marketanalysts believe that property sales willremain weak as long as cooling measures arenot eased.

(Source: Business Times)

SINGAPORE PROPERTY WEEKLY I 169


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Uni t a t Goodwood R es idence subso ld fo r

$11.5 mil lion

Located at Bukit Timah Road, a unit atGoodwood Residence was subsold for $11.5million or $2,456 per square foot this year.Previously, it was purchased by GuocoLandfor $8.5 million or $1,815 per square foot in

April 2010. With a $3 million net gain, the saleof Goodwood Residence is the mostprofitable subsale transaction in H1 this year.Data from Ngee Ann Polytechnics study of the property market showed that two other units at Centennia Suites at Kim Seng Roadalso profited from a subsale gain of about$500,000 each. On the other hand, 25 per

cent of the non-landed private homes in thecore central region suffered a loss. Accordingto Ong Choon Fah from DTZ, first-timebuyers may stand to gain from the currentweak market. Also, he predicts that subsale

transactions will continue to involve longholding properties.


Resale volume of p r ivate homes st i l l low

While private home resale prices have fallen1.3 percent in July from June, the number of units that have changed hands remained flat,according to Singapore Real EstateExchange (SRX). In June, 427 privateresidential units were transacted, while 431units were transacted in the following month.Data from SRX showed that high-endcondominiums, especially those located in thecore central region, experienced the largestdecline in resale prices as resale prices fell by4 per cent in that region. On the other hand,resale prices of private homes in the rest of central region fell by 1.1 per cent while thoseoutside central region were the least affected

SINGAPORE PROPERTY WEEKLY I 169


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as their resale prices dipped by just 0.6 per cent. Market analysts believe that both theTotal Debt Servicing Ratio framework and theimposition of stamp duties have negatively

affected demand in the resale market for private homes and have also weakened theleasing market. Ong Kah Seng from RSTResearch said that home owners need tolower their prices even further in order toattract buyers. Also, Eugene Lim from ERA

Realty said that buyers are less willing tomake purchases now as they expect prices tofall even further.


P roper ty consu l t an t s s ay its t im e t o l if t

cool ing m easures

Property consultants believe that thegovernments refusal to lift cooling measureswill result in an inflationary effect on the

property market as buyers and investorscontinue to speculate prices. Dennis Yeo,who spoke at the National Real EstateCongress, argued that cooling measures

such as the additional buyers stamp duty(ABSD) and the sellers stamp duty (SSD) areless relevant today and should be lifted toreduce property transaction costs. EugeneLim from ERA Realty, who also spoke at thecongress, echoed Yeos concerns. He said

that the SSD should be removed as subsalesacross all property types have been slow.

Also, he added that while the ABSD imposesa higher tax on foreigners, Singaporeans arestill affected by it and may be less able toinvest in additional properties. Market expertsexpect the demand in overseas properties toincrease as the cost of local propertyincreases. Nonetheless, Sing Tien Foo fromthe National University of Singapore believes



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that it is still unclear how the upcomingincrease in residential land supply will affectthe consumer behaviour.


Commercial

O ff ic e an d r et ai l s p ac e w i ll c o n ti nu e t o

at t ract investors

Since the commercial market is not affected

by cooling measures such as the additionalbuyers stamp duty (ABSD) and sellersstamp duty (SSD), investors are more likely toinvest in the office and retail market, saidmarket analysts. According to Mary Sai fromKnight Frank, Singapores low unemployment

rate and the strength of its dollar are amongthe many pull factors that have attractedforeign investors. Also, she said thatcommercial properties are popular amonginvestors as the absolute sum of capital to be

paid is often affordable. She added that 43per cent of transactions made for the strata-titled retail space at Alexandra Central werebelow $1 million. Furthermore, data from

Knight Frank showed that in H1 this year,strata-titled office transactions had picked upas the number of transactions rose from 204to 248 from H2 2013. Nonetheless, theaverage price for office space has fallen from$2,957 per square foot to $2,331 per square

foot. However, Tan Hong boon from JLLpredicts that investment activities in thecommercial market will continue to grow asoffice land supply remains limited.


Singapores o f f i ce r en t a l ga ins h ighes t i n As i a

Data from JLL showed that in Q2 of 2014,Singapore had the highest quarterly gains in



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office rentals in Asia. Trailing behind HongKong Central and Beijings Central BusinessDistrict, Singapore average rental for Grade

A office space is US$828 per square metre

per year. Chua Yang Liang from JLL said thatrentals have risen due to the limited supply of office spaces in Singapore. However, Chuasaid that rental growth is expected to slowdown as more offices are expected to becompleted by 2016. Nonetheless, Chua

believes that growth in the Asian economy willcontinue to drive the office rental market inSingapore. According to JLL, Singapore hasexperienced a 4.6 per cent increase in officerentals this quarter as compared to theprevious quarter. Not only so, Singapores

office rentals have increased 15.9 per centfrom Q2 2013.


http://propertymarketinsights.com/


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Non-Landed Residential Resale Property Transactions for the Week of Jul 30 Aug 5

NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority.Typically, caveats are lodged at least 2-3 weeks after a purchasersigns an OTP, hence the lagged nature of the data.

PostalDistrict

Project NameArea(sqft)

TransactedPrice ($)

Price($ psf)

Tenure

3 ASCENTIA SKY 958 1,668,000 1,741 99

4 REFLECTIONS AT KEPPEL BAY 2,530 4,700,000 1,858 995 GOLD COAST CONDOMINIUM 1,572 1,735,000 1,104 FH5 VILLA DE WEST 1,012 1,050,000 1,038 FH8 CITY SQUARE RESIDENCES 861 1,300,000 1,510 FH8 TYRWHITT 139 495 671,650 1,356 FH9 ASPEN HEIGHTS 1,582 2,450,000 1,548 9999 WILKIE 87 1,281 1,610,000 1,257 FH

10 BELMOND GREEN 1,550 2,680,000 1,729 FH10 THE MARBELLA 1,496 2,520,000 1,684 FH

10 REGENCY PARK 3,649 6,000,000 1,644 FH10 CHIVERTON 1,292 1,888,000 1,462 FH10 VALLEY PARK 1,216 1,700,000 1,398 99911 SOLEIL @ SINARAN 936 1,720,000 1,837 9912 THE ARTE 1,873 2,368,000 1,264 FH12 ST FRANCIS LODGE 1,227 1,088,000 887 FH13 8@WOODLEIGH 1,098 1,418,000 1,292 9913 BLOSSOMS @ WOODLEIGH 1,001 1,270,000 1,269 FH14 LA BRISA 441 620,000 1,405 FH

14 PALM LODGE 1,658 1,368,000 825 FH14 TORIEVIEW MANSIONS 1,238 950,000 767 FH15 KING'S MANSION 1,604 1,951,000 1,216 FH15 DUNMAN VIEW 1,173 1,130,000 963 9916 COSTA DEL SOL 1,475 2,070,000 1,404 99

PostalDistrict

Project NameArea(sqft)

TransactedPrice ($)

Price($ psf)

Tenure

16 COUNTRY PARK CONDOMINIUM 1,087 1,440,000 1,325 FH

16 BAYSHORE PARK 936 905,000 966 9916 TANAMERA CREST 1,206 1,148,000 952 9916 CHANGI GREEN 872 808,000 927 FH18 OASIS @ ELIAS 1,410 1,439,000 1,021 9919 KOVAN RESIDENCES 883 1,150,000 1,303 9919 SUNGLADE 1,044 1,100,000 1,054 9919 PALM HAVEN 1,636 1,501,000 917 99920 CLOVER BY THE PARK 1,744 2,340,000 1,342 9920 FABER GARDEN CONDOMINIUM 1,873 2,250,000 1,201 FH

20 THE GARDENS AT BISHAN 883 950,000 1,076 9920 THE GARDENS AT BISHAN 1,206 1,210,000 1,004 9921 LE WOOD 1,270 1,150,000 905 9921 PINE GROVE 1,755 1,500,000 855 9921 HUME PARK I 1,582 1,280,000 809 FH23 THE DAIRY FARM 1,249 1,200,000 961 FH23 HILLVIEW REGENCY 1,130 955,000 845 9923 PARKVIEW APARTMENTS 1,130 930,000 823 99

Documents

Singapore Property Weekly Issue 169