Singapore Property Weekly Issue 223

8/20/2019 Singapore Property Weekly Issue 223

1/13

Issue 223Copyright © 2011-2014 www.Propwise.sg. All Rights Reserved.

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


2/13

ContributeDo you have articles and insights and articles that you’d like to share

with thousands of readers interested in the Singapore property

market? Send them to us at [email protected], and if they’re good

enough, we’ll publish them here, on our blog and even on Yahoo!

News.

AdvertiseWant to get your brand, product, service or property listing out to

thousands of Singapore property investors at a very reasonable

cost? Head over to www.propwise.sg/advertise/ to find out more.

CONTENTS

p2 What is Impact of the Renminbi’s Devaluation

on Singapore?

p8 Singapore Property News This Week

p11 Resale Property Transactions

(August 12 – August 18 )

Welcome to the 223th edition of the

Singapore Property Weekly .

Hope you like it!

Mr. Propwise

FROM THE

EDITOR

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


3/13

SINGAPORE PROPERTY WEEKLY Issue 223

Page | 2Back to Contents

By Paul Ho (guest contributor)

China is currently Singapore’s biggest export

market, accounting for 14% of our export

value. Therefore a devaluation vis-à-vis the

Singapore dollar will make Singapore’s goods

more expensive to the Chinese.

To put matters into perspective, five years

ago, 1 Singapore Dollar (SGD)traded as high

as 5.33 Chinese Renminbi (RMB). Now

1SGD trades for 4.48 RMB. The RMB hasstrengthened a lot against the Singapore

dollar.

What is Impact of the Renminbi’s Devaluation onSingapore?


4/13



The rise of the US Dollar

The recent rise of the US Dollar (USD)tracks

the United States’ gradual emergence from

the recession with its unemployment ratedropping to 5.3% (as at July 2015) and an

impending rise of Federal Funds Target Rate,

making the USD and US assets attractive.

Hence, many currencies are weakening

against the USD. Given that the US and

Japan have unilaterally devalued their currency via Quantitative Easing (also known

as printing money) while China’s RMB has

strengthened for years against the major

currencies, a slight devaluation of the RMB is

understandable. The fact that China tolerated

years of higher currency value attests to its

new determination to be seen as a

responsible world partner in global

economics.

With its current devaluation, it is still a long

way from its lowest point. China’s RMB has

been spot trading at the lower limit of the 2%

band, hence the ~2% devaluation is in line

with market forces. However what is unknown

is how the market will react when the last

day’s prices will become the midpoint of the

band for the next day for the mid to longer

term.

Capital flight from China?

There should not be too much worry of capital

flight from China. China’s massive foreign

reserves amounting to ~US$3 trillion is more

than sufficient to support the currency and the

Chinese central bank can easily sell USD

treasury bonds for RMB.


5/13



The RMB has risen from June 2010 to May

2013 by over 15% against a trade weighted

basket of some 61 currencies, according to

data from the Bank of International

Settlements. Hence, this devaluation shouldbe seen in the correct perspective. When

market forces recover, it could well

appreciate.

Chart 1: Bank of International Settlements

Impact of the RMB devaluation on

Singapore

As Singapore is an advanced economy,

exports to China may be intermediate or

advanced value-added-products which may

not be as price sensitive and hence it should

be able to withstand some price increase.

If Chinese nationals think that the devaluation

of the RMB is a trend, we may yet see some

exodus of funds from the wealthy Chinese tothe rest of the world. Tom Orik, Chief

Economist at Bloomberg, estimated that a 1%

drop in currency value leads to an exodus of

about $40 billion of funds, with a three month

lag. We may see a fraction of this $40 billion

come onto Singapore’s shores.


6/13



Chart 2: CNY per 1 SGD, XE

The RMB (or Yuan) has gradually devalued

against the Singapore dollars. But in the last

few years the Yuan has been even stronger

against the Singapore dollar.

Will China’s currency weakening cause

SIBOR to rise?

Singapore manages its exchange rate against

a trade-weighted basket of major currencies.

As China is Singapore’s major trading

partner, it is almost certain that China’s RMBis one of the component currencies that

Singapore manages against.

If China’s currency weakens, it could also

drag the Singapore Dollar lower against the

US Dollar as Singapore needs to carefully

manage its currency vis-à-vis a basket of

currencies.


7/13



When the Singapore Dollar drops against the

US Dollar, there is a chance that Sibor

interest rates will have to rise to keep pace

ith the exodus of funds.

Impact on exports and Singapore

companies

I foresee that a 2% devaluation of the RMB

ill not significantly affect Singapore’s

exporters as Singapore is an advanced

economy which exports intermediate goodsand valued added products, hence these

products should be able to withstand a 2%

impact.

In the best case scenario, exports to China

may even rise in value due to RMB

devaluation as many of the factories or

imports may be already contracted and

committed beforehand and probably

denominated in USD.

In the worst case, exports may fall if

exporters are unwilling to adjust prices to

absorb the increase in prices. However do

note that a 2% devaluation against the USD

is not necessarily a 2% devaluation againstthe SGD as the SGD is also devaluing

against the USD.

Shares of Singapore exporters which have a

big component of China sales will be

impacted. China’s stock markets may seeimpact from the exodus of funds, but it is hard

to estimate the effect now.

What is the impact on the property

market?

I doubt the devaluation would impact

Singapore’s real estate market in a big way,

unless China’s wealthy start to move their

funds to Singapore by purchasing commercial

or industrial properties.

SINGAPORE PROPERTY WEEKLY I 223


8/13



Positive development from China’s

removal of a pegged mid-point

China's central bank generally sets a daily

midpoint for the yuan, around which the

currency can move up and down within 2%.

But on Tuesday 11 Aug 2015, the People's

Bank of China surprised markets by

announcing that going forward, the midpoint

ill be based on the previous day's closing

price.This moves China towards greater exchange

rate flexibility and a more freely traded

currency. With this move, China moves one

step closer towards having the RMB included

into the IMF’s basket of special drawing rights

currencies, an elite group of currencies used

to value reserve assets. One day, the RMB

may become the world’s top reserve

currency.

While China still can intervene in the currency

market, the exchange rate is now more freely

traded as the mid-point price is determined by

the previous day’s closing price. Market

forces will dictate how much the currency will

trade. China’s central banks can intervene

when the need arises.By Paul Ho, holder of an MBA from a

reputable university and editor of

www.iCompareLoan.com, Singapore’s first

Cloud-based Home Loan reporting platform

used by Property agents, financial advisors

as well as Mortgage brokers.

SINGAPORE PROPERTY WEEKLY I 223

http://www.icompareloan.com/http://www.icompareloan.com/http://www.icompareloan.com/http://www.icompareloan.com/http://www.icompareloan.com/http://www.icompareloan.com/


9/13


Singapore Property This Week


Residential

N o n - la n d e d p r i v a t e h o m e p r i c es s t a b i li s e d

a fter th r e e mo n th s o f d e c l i n e s

According to flash estimates by the National

University of Singapore, prices of completednon-landed private homes have stabilised

after three consecutive months of decline.

The overall Singapore Residential Price Index

(SRPI) fell 0.3% month-on-month in April,

0.6% month-on-month in May and 0.1%

month-on-month in June. Nicholas Mak from

SLP International said that prices may

continue to fall in the coming months as the

supply of completed private homes is

expected to increase. Mak predicts that the

full-year decline in the overall SRPI would be

around 3 to 4%. In July, the SRPI sub-index

for central region increased 0.2% month-on-

month, while the SRPI for non-central regionfell by 0.2% in the same period. Wong Xian

Yang from OrangeTee believes that the price

drop in the non-central region could be due to

landlords’ lowered rental expectation and

increased vacancy rates.

(Source: Business Times)

SINGAPORE PROPERTY WEEKLY Iss e 223


10/13



HDB an d EC in co m e c ei l in g w ill b e

i nc r eas ed

Income ceilings for both HDB flats and

executive condominiums (ECs) will be raised

from $10,000 to $12,000 and $12,000 to

$14,000 respectively. According to Prime

Minister Lee Hsien Loong, this increase in

income ceiling will allow more Singaporeans

to buy new HDB flats and ECs as incomes

have increased since 2011 when the ceilingas last raised. Not only so, couples are

marrying later and hence are more likely to

have crossed the income ceiling by the time

they settle down. Besides that, the Special

CPF Housing Grant (SHG) will be extended

to cover households with income ceilings thatare not above $8,500. The current maximum

SHG amount has also been doubled to

$40,000. To help second-timer rental

households own a two-room flat, the Fresh

Start Housing Scheme was also

implemented. These flats will have shorter

leases and stricter resale conditions thus

making them more affordable. According to

Desmond Sim from CBRE, higher incomeceilings and grants will help increase

demand.


247 un i t s s ol d at S ol A c r es

247 units out of the 1,327 units at Sol Acres

have been sold—making it the best-selling

executive condominium project thus far this

year. Located at Choa Chu Kang Grove, units

at the executive condominium have been

released for sale at an average price of $780

psf. The project which includes three

clubhouses, three swimming pools and two

tennis courts is located near two LRT

stations.



11/13



One-bedders are priced from $356,000, two

bedders cost about $452,000, three-bedders

cost at least $667,000, and four-bedders cost

about $866,000 while five-bedders are priced

from $1.028 million at Sol Acres.


Commercial

Weak d em an d f o r i n du st r ial s ites in

T ampi nes and U bi

Two sites that have been zoned for Business

2 development at Tampines Industrial Drive

(Plot 6) and Ubi Avenue 1 have not been well-

received by developers. Both sites which

have short tenures have received low bidding

interest. The Tampines site which was 0.47ha large and a 20-year tenure received a top

bid of $4.94 million or $69.21 psf ppr. The

other site which was 0.6 ha large and has a

30-year tenure received the highest bid of

$19.86 million or $120.91 psf ppr. Nicholas

Mak from SLP International said that due to

the size of the site, the buyer may develop it

into facilities for its own use. Market experts

believe that since the implementation of cooling measures such as the seller’s stamp

duty and the total debt servicing ratio

framework, developers’ interest in industrial

sites may have fallen.



http://propertymarketinsights.com/


12/13



Non-Landed Residential Resale Property Transactions for the Week of Aug 12 – Aug 18

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 MARINA BAY RESIDENCES 1,636 4,390,000 2 ,683 99

3 MERAPRIME 840 1,185,000 1,411 99

3 ASCENTIA SKY 1,851 2,578,888 1,393 99

3 TIONG BAHRU ESTATE 1,658 1,260,000 760 9999

5 THE ROCHESTER 1,701 2,330,000 1,370 99

5 THE ROCHESTER 1,216 1,635,000 1,344 99

5 THE VISION 1,302 1,530,000 1,175 99

5 THE INFINITI 1,270 1,180,000 929 FH

5 PALM GREEN 1,292 1,200,000 929 FH

5 FABER CREST 2,088 1,625,000 778 99

8 SOHO @ FARRER 495 700,000 1,414 FH

9 THE METZ 570 1,380,000 2,419 FH

9 CENTENNIA SUITES 1,238 2,525,000 2,040 FH

9 THE IMPERIAL 2,077 4,125,000 1,986 FH

9 CAIRNHILL CREST 1,733 3,220,000 1,858 FH

9 LUMA 743 1,263,100 1,701 FH

9 CLAREMONT 1,206 1,830,000 1,518 FH

9 ASPEN HEIGHTS 1,582 2,325,000 1,469 999

10 GOODWOOD RESIDENCE 1,970 4,300,000 2,183 FH

10 ST MARTIN RESIDENCE 624 1,308,000 2,095 FH

10 G RANGE RESIDENCES 2,583 5,350,000 2,071 FH

10 THE SIXTH AVENUE RESIDENCES 1,356 2,000,000 1,475 FH

10 MONTVIEW 1,679 2,150,000 1,280 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

11 TRILIGHT 1,195 2,233,888 1,870 FH

11 NINETEEN SHELFORD ROAD 904 1,375,000 1,521 FH

11 GILSTEAD 38 980 1,430,000 1,460 FH

12 TREVISTA 1,808 2,100,000 1,161 99

14 WATERBANK AT DAKOTA 581 795,000 1,368 99

14 VACANZA @ EAST 1,023 1,215,000 1,188 FH

14 ASTOR 1,109 948,000 855 99

15 SILVERSEA 980 1,580,000 1,613 99

15 THE SEA VIEW 1,518 2,300,000 1,515 FH

15 JUPITER 18 388 585,000 1,510 FH

15 THE MAKENA 1,636 2,350,000 1,436 FH

15 CAMELODGE 840 910,000 1,084 FH

15 THE HACIENDA 2,196 2,196,000 1,000 FH

16 BAYSHORE PARK 936 960,000 1,025 99

16 THE BAYSHORE 1,023 800,000 782 99

17 DAHLIA PARK CONDOMINIUM 1,119 815,000 728 FH

18 S AVANNAH CONDOPARK 1,453 1,218,000 838 99

18 THE TROPICA 1,227 988,000 805 99

18 TAMPINES COURT 1,658 890,000 537 101

19 KOVAN RESIDENCES 1,798 2,100,000 1,168 99

19 SUNGLADE 1,044 1,117,000 1,070 99

19 KOVAN MELODY 1,227 1,250,000 1,019 99

19 REGENTVILLE 980 810,000 827 99



13/13



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.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

19 KOVAN LODGE 1,776 1,380,000 777 FH

19 RIO VISTA 1,238 950,000 767 99

19 RIO VISTA 1,249 935,000 749 99

20 BISHAN POINT 936 1,028,000 1,098 99

20 THE WINDSOR 1,927 1,835,000 952 FH

21 THE HILLSIDE 1,302 1,323,000 1,016 FH

21 GRAND REGENCY 1,119 1,100,000 983 FH

21 LE WOOD 1,259 1,080,000 858 99

21 PINE GROVE 1,324 960,000 725 99

22 CASPIAN 1,399 1,400,000 1,000 99

22 LAKEHOLMZ 1,238 1,118,000 903 99

22 PARC OASIS 1,227 1,050,000 856 99

23 THE WARREN 1,259 888,000 705 99

27 EUPHONY GARDENS 2,056 1,310,000 637 99

28 SELETAR SPRINGS CONDOMINIUM 2,067 1,300,000 629 99
http://www.moneymatters.sg/

Documents

Singapore Property Weekly Issue 223