Singapore Property Weekly Issue 7

Issue 7 | www.Propwise.sg

SINGAPORE PROPERTY WEEKLY – Issue 7

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Contents

Singapore Property This Week Pg 2CEA Issues Guideline on Ethical Advertising by Property Agents Pg 7New Record Price for a Mass Market Project Pg 10Non‐Landed Residential Resale Property Transactions for the Week of June 18 to 24 Pg 13

From the Editor

Welcome to the seventh edition of the Singapore Property Weekly. We added property transactions in the last issue, sorted by district. We hope they help you in keeping track of the market!

Mr. Propwise



Singapore Property This Week

Residential News

Grand Tower at Novena up for sale at $88.8 million21,742 sq ft Grand Tower located in Novena is up for sale with an asking price of $88.8 million ($1,381 psf ppr). The freehold residential site, which currently houses a 33‐year‐old tower block with 28 apartments of approximately 1,873 sq ft each, can possibly be redeveloped into a luxurious lifestyle development with permissible GFA of 5,974.64 sq metres (approximately 64,310 sq ft). Savills mentioned that the site can house 74 apartments of 800 sq ft each on average. Judging from the asking price, the project breakeven cost of the site is around $1,900 to $2,000 psf, with no DC payable.

DBSS scheme under review thanks to $880,000 unit at Centrale 8The high asking price for DBSS flats came under the spotlight when the asking price for a unit at Centrale 8 reached $880,000. According to Minister Khaw, the DBSS scheme is being reviewed and upcoming DBSS land sales have been withheld. For example, HDB has withdrawn the tender for a 2.3 hectare DBSS site at Sengkang which was launched last month and expected to end on July 20. Also, HDB will not be putting the DBSS site in Bendemeer up for sale as was previously planned. However, old tenders and DBSS sites sold last year, which includes the Centrale 8 site, will still begin their sales in the upcoming months.



Tender for Laguna Park closed; Crystal Tower and Daisy Apartments up for en bloc saleThe tender for Laguna Park collective sale with an indicated price of $1.33 billion was closed as a private treaty is being negotiated. Residents can likely receive around $2.2 million each if a deal is reached. At Ewe Boon Road, Crystal Tower is up for collective sale at a stated price of $155 million. Sitting on a 60,482 sq ft freehold site with a gross plot ratio of 1.6, the breakeven cost for Crystal Tower is estimated to be around $2,200 to $2,300 psf with no DC payable. Owners are likely to receive about $5 million to $10 million each from the sale, given the $1,600 psf ppr stated price. Similarly, Daisy Apartments that sits on a 13,000 sq ft plot is up for sale and expected to fetch a price that exceeds $14.5 million.

Mandopop Singer JJ Lin purchased Twin Peaks 571 sq ft one‐bedder unitThe 99‐year leasehold Twin Peaks project, which consists of 462 units in two identical 35‐storey

towers, has again attracted a celebrity buyer. Apart from Jackie Chan and Wakin Chau, Singapore‐born singer JJ Lin also purchased a 571 sq ft one‐bedderunit in Twin Peaks. Twin Peaks units are trading at around $2,850 psf and the development is estimated to complete by 2014. Developer OUE has sold about 60 units when the project was launched last year, and the highest price fetched is $3,170 psf. When a new showflat is ready later this year, OUE will likely relaunch the project.

Average investment deal size in Q2 was 17.9% higher than Q1 with foreigners accounting for 17.6% of all deals transacted: DTZThe investment sales transacted in Q2 was around $8.3 billion, a slight increase from the $8 billion achieved in Q1. DTZ noticed that the number of foreigners responsible for all property investment deals in Q2 was 17.6%, an increase from the 10.5% in Q1. Sales of GLS sites, which made up 55% of total investment sales at a total of $4.6 billion, was the largest portion in Q2 investments;



the 16 sites awarded from GLS programme in Q2 doubled the amount in Q1. Also, the average deal size in Q2 was 17.9% higher than that of Q1.

Sales result for units in Skyline Residences, Blossom Residences EC, Thomson Grand Condo, and a project opposite Singapore Island Country ClubIn Telok Blangah area, 80 out of 100 units of freehold Skyline Residences have been sold at $1,800 to $1,900 psf on average. The cheapest unit, which was sold at approximately $950,000, is a 484‐sq‐ft‐one‐bedder unit. Over at Bukit Panjang, around 150 units of 99‐year leasehold Blossom Residences EC have been sold at an average price of$685 psf. A two‐bedroom unit costs at least $548,000 and a four‐bedder unit costs at least $841,000. Along Upper Thomson Road, the first 50 units at Thomson Grand Condo that were set aside for first day preview have all been snapped up at an average price of $1,330 psf. Also, the 99‐year‐leasehold project opposite Singapore Island

Country Club sold 11 out of its 22 strata terraces; the highest price fetched was $4.1 million.

Punggol EC site attracted only 3 bids while 150 units were sold for Blossom Residences EC on its first day of saleA Punggol EC site attracted only three bids and the top bid of $270.08 psf ppr was below market expectations of $300 psf ppr to $350 psf ppr. CBRE estimated that the breakeven cost for a project at the site will fall between $570 psf to $600 psf. Over at Segar Road, about 150 units of the 602‐unit Blossom Residences EC were sold on its first day of sales at an average price of $690 psf. Prices for two‐bedders fall between $548,000 to $590,000, ‘compact’ three‐bedders starts from $659,000, normal three‐bedders starts from $723,000, four‐bedroom dual‐key unit starts from $931,000, and penthouses range from $1.088 million to $1.276 million.



Commercial News

Office rents increased in Q2 but growth will probably slow down when supply for office space increasedDTZ noticed that the average gross rent of offices in Raffles Place and Harbourfront increased 5.4% to $9.80 psf pm and 4.3% to $7.30 psf pm over the quarter in Q2 respectively. According to CBRE, overall rents for Grade A offices increased 2.9% over the quarter to $10.60 psf pm while prime office rents increased 2.3% to $8.80 psf pm in Q2. CBRE predicted that about 8.4 million sq ft of office space would be built from 2H 2011 to 2015; CBRE is positive that demand for office space will increase and rate of rental growth will then be moderated. Similarly, DTZ predicted that average office rent in Raffles Place will increase by 15% to 18% in 2011 while rate of growth will slow down in future with increased supply.

Strong growth for industrial leasing and sales market in Q2Prime ground‐floor factory space average monthly gross rent in Q2 increased 7.1%, more than the 3.4% hike in Q1, to $2.25 psf; prime ground‐floor warehouse space average monthly gross rent increased 6.4%, more than the 4.8% hike in Q1, to $2.34 psf. Also, the industrial sales market also looks optimistic. Developers are launching several projects such as the Oxley Bizhub in Ubi. Colliers noted that the average capital value for prime freehold ground‐floor factory space saw a 3.2% hike to $574 psf from Q1 to Q2, while prime freehold ground‐floor warehouse space increased 7.5% to $571 psf over the same period.



Office in Tanjong Pagar and Cecil Street/Robinson Road fetch high prices as office investment sales continue to riseIn Tanjong Pagar, a 12‐storey freehold office building RCL centre with existing NLA of approximately 92,500 sq ft was sold for around $175 million ($1,890 psf), higher than the $1,476 psf paid for nearby Genting Centre this February. Also, the $2,600 psf price paid for two office spaces at Samsung Hub recently is higher than the $2,125 psf paid for four floor floors in the building last August. 13‐storey freehold 135 Cecil Street with NLA of 85,431 sq ft is said to have received a $2,200 psf offer, setting a new price record in Cecil Street area. Similarly, nearby freehold FinexisBuilding has received an offer close to $2,000 psfwhile Robinson Point has attracted a price of $2,250 to $2,300 psf.

CEA Issues Guideline on Ethical Advertising by Property Agents

By Mr. Propwise

The Council for Estate Agencies (CEA) has issued a Practice Guideline to promote ethical advertising by property agents. These guidelines were developed after consultation with property agents, industry associations, government bodies such as the HDB and URA, and the Consumers Association of Singapore. These guidelines will apply to all forms of advertisements, including classifieds, pamphlets or flyers, online advertising, SMS and even social media.

With effect from 1 August 2011, property agents must:

1. Refrain from using misleading headlines and claimsUse of headlines such as “King of xxx (location)”,





“Mr. xxx (location”, “Real Estate Specialist” or “Expert” are no longer allowed. Property agents,must also ensure that any claims of expertise, specialization or success rate can be substantiated by verifiable records.

2. Display their professional detailsDetails like their name, registration/license and contact numbers must be included in every advertisement.

3. Ensure accurate contents in their advertisementsAdvertisements are not allowed to be inaccurate or misleading. So claims of rates of return or rental yield must be substantiated, and credible sources quoted. In the case of pictures, only real photographs may be used, including things such as the view from the unit and the actual interior. Agents are also not allowed to suggest or abet circumventing of any laws and regulationse.g. helping owners to sell their HDB flats before

the Minimum Occupation Period.

4. Engage in responsible advertisingSMS property advertisements must provide a valid mobile phone number for consumers to opt out of future messages, and SMS advertising cannot take place between 10pm and 9am.

Property agents are also not allowed to market any property without the owner's consent. Those caught advertising other people's unit or dummy ad or in the hope to get direct buyers will be penalised as it is tantamount to unethical code of conduct. If you suspect someone else is doing that, you may report them to CEA in writing.

According to Mr. Lee Say Kee, Director (Regulatory Control) of CEA and Chairperson of CEA’s Ethical Advertising Work Group, misleading and unauthorized advertisements are among the top three categories of public complaints. He further



adds, “To date, we have issued 23 letters of advice to estate agents and salesperson on such complaints. The Guidelines will provide clarity on the do’s and don’ts of advertising, thereby raising professional and ethical standards in the industry.”

Members of the public who would like to lodge a complaint can do so at the CEA website here:http://www.cea.gov.sg/cea/content/resources_faq/faqComplaintForm.html.

Will the public finally be free of the nuisance of spam SMSes and mailboxes full of property flyers? Let’s see how effective the enforcement of these guidelines are!

New Record Price for a Mass Market ProjectBy Mr. Propwise

Thomson Grand has set a new benchmark for the mass market segment, priced at an average of $1,330 psf. Developed by Hong Kong developer Cheung Kong, it was launched late last week and reportedly sold out all 50 launch units on the first day. This represents around 20% of the 361 units. Thomson Grand is a 99‐year leasehold private residential development located in Upper Thomson.

The price for units at Thomson Grand ranges from $1,100 to $1,600 psf and the developer offered a ~5% “discount” on the first day of launch. The average ASP of $1,330 represents a 25% premium to the nearby Meadows at Pierce, a freehold project launched in mid‐2009.

For potential buyers, do understand that buying an apartment at a “discount” does not mean the same

thing as buying it cheap. Developers, like many other retailers, tend to set the list price high, and then offer buyers a “discount” to increase the perception of getting a good deal. It also gives them more flexibility in terms of pricing – if sales is good they can reduce the discount for further tranches, and thus effectively raise prices without having to do so explicitly. Reportedly the discount at Thomson Grand was reduced to 4% over the weekend after the brisk first day sales.

At Thomson Grand, the size of the units range from 900 sq ft 2‐bedroom units to 6,500 sq ft strata‐titled homes. The absence of small shoebox units is notable. Also, the landed‐strata titled sold briskly –reportedly 11 of the 22 strata units have been sold while most of the remaining have been reserved. These units appeal in particular to foreigners as it allows them to get around the buying restrictions on landed property.





Given that the apartment sizes (and thus total quantums) are fairly large, it appears that most of the buyers are potential end‐users. It was estimated that 70% of the buyers had bought the units for own‐use while 30% were investors, coming mainly from Singapore, Malaysia, China, and Indonesia.

More cooling measures on the way?Thomson Grand’s launch may have sold out, but the initial weekend’s 20% take‐up rate of units was lower than the average 30% to 35% for other recent mass market projects. This could be due to the developer controlling the rate of sales but is also likely due to buyer resistance to the high per square foot prices.

While prices have not come down, volumes seem to be slowing across most segments. Blossom Residences, an Executive Condominium at Bukit Panjang, sold around 150 of a total of 602 units (a 25% take‐up rate) at an average psf of S$685 on the

first day of launch.

Centrale 8, a DBSS project that has been featured a lot in the news recently due to its pricing, sold only 35% of the total 708 units despite being 2x oversubscribed before the launch. It seems that potential buyers are staying away as there is the perception that upcoming policy changes could bring down the prices of HDB flats.

We are currently at a critical juncture – a standoff between sellers and buyers, represented by the gap between sellers’ asking prices and what buyers willing to bid.

As long as prices keep rising, the government is likely to introduce more measures to curb further speculation and exuberance, especially on the public housing front, and this should have a negative impact on the private residential mass market segment.





Non‐Landed Residential Resale Property Transactions for the Week of June 18 to 24Postal District

Project NameArea (sqft)

Transacted Price ($)

Unit Price ($ psf)

1 THE SAIL @ MARINA BAY 883 2,869,750 3,2511 THE CLIFT 527 1,218,888 2,3111 THE CLIFT 527 1,215,000 2,3041 THE CLIFT 527 1,209,465 2,2931 THE CLIFT 527 1,159,000 2,1971 THE CLIFT 506 1,110,000 2,1941 THE CLIFT 527 1,150,000 2,1801 PEOPLE'S PARK COMPLEX 409 530,000 1,2962 SPOTTISWOODE RESIDENCES 592 1,321,140 2,2322 ICON 581 1,050,000 1,8062 CRAIG PLACE 1,044 1,625,000 1,5563 RIVER PLACE 2,626 4,580,000 1,7443 MERAPRIME 1,313 1,750,000 1,3333 ASCENTIA SKY 1,475 1,921,200 1,3033 DOMAIN 21 1,281 1,648,000 1,2873 QUEENS 1,195 1,430,000 1,1973 THE ANCHORAGE 1,238 1,480,000 1,1964 CARIBBEAN AT KEPPEL BAY 1,668 2,680,000 1,6064 THE INTERLACE 2,142 2,443,900 1,1415 THE PEAK@BALMEG 1,507 2,080,000 1,3805 BOTANNIA 1,572 1,770,000 1,1265 THE INFINITI 915 960,000 1,0495 MONTEREY PARK CONDOMINIUM 1,625 1,631,000 1,0035 FABER CREST 1,249 995,000 7978 STUDIOS @ MARNE 517 700,000 1,355

Postal District



Unit Price ($ psf)

8 CITY SQUARE RESIDENCES 1,206 1,600,000 1,3278 CITYSCAPE @FARRER PARK 2,723 3,288,000 1,2078 KERRISDALE 1,259 1,290,000 1,0249 SCOTTS SQUARE 635 2,343,150 3,6909 HELIOS RESIDENCES 1,281 3,490,000 2,7259 RIVERGATE 1,023 2,100,000 2,0549 RIVERGATE 1,539 3,150,000 2,0469 THE TRILLIUM 2,217 4,214,200 1,9019 CAIRNHILL CREST 2,465 4,610,000 1,8709 MIRAGE TOWER 1,227 1,850,000 1,5089 OLEANAS RESIDENCE 1,238 1,750,000 1,4149 OLEANAS RESIDENCE 1,550 2,150,000 1,38710 FOUR SEASONS PARK 2,874 7,900,000 2,74910 DUCHESS RESIDENCES 1,604 3,130,000 1,95210 REGENCY PARK 3,175 5,750,000 1,81110 THE BALMORAL 2,659 4,650,000 1,74910 LOFT @ NATHAN 990 1,692,900 1,71010 SOMMERVILLE GRANDEUR 1,830 3,050,000 1,66710 AVALON 1,163 1,918,950 1,65110 ONE JERVOIS 1,292 2,088,000 1,61610 D'LEEDON 893 1,334,800 1,49410 THE TRIZON 1,894 2,800,000 1,47810 THE LEGEND 2,228 3,280,000 1,47210 THE PRINCETON 861 1,180,000 1,37010 SEVEN HOLT ROAD 1,862 2,550,000 1,369



Postal District



Unit Price ($ psf)

13 SERAN COURT 1,862 1,250,000 67113 SERAN COURT 1,862 1,250,000 67113 SERAN COURT 1,862 1,250,000 67114 ROYCE RESIDENCES 409 484,300 1,18414 CASA AERATA 549 600,000 1,09314 VISTAYA VIEW 1,076 1,080,000 1,00314 THE SUNFLOWER 1,625 938,000 57715 THE SEAFRONT ON MEYER 1,066 1,800,000 1,68915 THE SEAFRONT ON MEYER 1,604 2,686,500 1,67515 SILVERSEA 1,066 1,674,980 1,57215 AALTO 1,442 2,250,000 1,56015 THE MAKENA 1,744 2,600,000 1,49115 PEBBLE BAY 2,626 3,676,400 1,40015 PEBBLE BAY 1,894 2,540,000 1,34115 VIBES @ EAST COAST 807 1,047,500 1,29815 WATER PLACE 1,281 1,600,000 1,24915 SANCTUARY GREEN 829 1,020,000 1,23115 PARC ELEGANCE 700 858,000 1,22615 PEBBLE BAY 1,894 2,320,000 1,22515 COTE D'AZUR 1,109 1,345,000 1,21315 FINLAND GARDENS 1,475 1,780,000 1,20715 WATER PLACE 1,356 1,635,000 1,20615 PARC ELEGANCE 721 858,000 1,19015 COSTA RHU 2,551 3,018,888 1,18315 THE MONTAGE 635 750,000 1,18115 WORTHINGTON 893 990,000 1,10815 PALM VISTA 1,055 1,100,000 1,04315 SANTA FE MANSIONS 1,076 1,050,000 97515 MANDARIN GARDEN CONDOMINIUM 2,024 1,800,000 889

Postal District



Unit Price ($ psf)

10 CHATEAU LE FAME 1,119 1,500,000 1,34010 DUCHESS CREST 1,087 1,400,000 1,28810 THE SERENADE @ HOLLAND 1,787 2,170,000 1,21410 RIDGEWOOD 1,744 1,980,000 1,13511 SOLEIL @ SINARAN 495 970,000 1,95911 VIVA 1,345 2,508,425 1,86411 PARK INFINIA AT WEE NAM 850 1,580,000 1,85811 PARK INFINIA AT WEE NAM 1,464 2,650,000 1,81011 SHELFORD 23 829 1,420,000 1,71311 SKY@ELEVEN 2,713 4,422,190 1,63011 THE LINC 1,292 1,830,000 1,41711 AMARYLLIS VILLE 958 1,350,000 1,40911 TREVOSE PARK 1,690 2,365,048 1,39911 M21 3,025 4,125,000 1,36411 HILLCREST ARCADIA 1,798 1,850,000 1,02912 CASA FORTUNA 506 775,000 1,53212 THE VERVE 441 665,000 1,50712 CASA FORTUNA 506 750,000 1,48212 THE VERVE 441 636,000 1,44112 VISTA RESIDENCES 1,313 1,800,000 1,37112 TREVISTA 861 1,040,000 1,20812 BEACON HEIGHTS 667 780,000 1,16912 THE VERVE 829 886,888 1,07012 BOON TECK TOWERS 1,658 1,473,800 88912 BALESTIER POINT 1,119 990,000 88412 BOON TECK TOWERS 1,722 1,473,800 85613 8@WOODLEIGH 398 545,000 1,36813 WOODSVILLE 28 829 995,000 1,20013 SERAN COURT 1,862 1,250,000 671



Postal District



Unit Price ($ psf)

18 WATERVIEW 1,130 986,000 87218 LIVIA 1,539 1,330,000 86418 NV RESIDENCES 1,184 1,008,600 85218 SAVANNAH CONDOPARK 1,453 1,238,000 85218 NV RESIDENCES 1,270 1,067,640 84118 SAVANNAH CONDOPARK 1,227 995,000 81118 CHANGI RISE CONDOMINIUM 1,281 1,000,000 78118 CHANGI RISE CONDOMINIUM 1,259 975,000 77418 THE TROPICA 1,722 1,330,000 77219 THE WATERLINE 1,238 1,273,360 1,02919 THE MINTON 560 568,000 1,01519 TERRASSE 893 885,200 99119 THE FLORENTINE 958 938,000 97919 THE MINTON 700 665,000 95019 FONTAINE PARRY 1,485 1,400,000 94219 THE SPRINGBLOOM 1,119 1,015,000 90719 COMPASS HEIGHTS 1,324 1,180,000 89119 COMPASS HEIGHTS 1,324 1,160,000 87619 THE SPRINGBLOOM 1,130 975,800 86319 COMPASS HEIGHTS 1,959 1,250,000 63820 CENTRO RESIDENCES 1,001 1,370,000 1,36920 RAFFLESIA CONDOMINIUM 915 1,010,000 1,10421 JARDIN 1,776 3,605,225 2,03021 CLEMENTI PARK 1,076 1,038,000 96421 SIGNATURE PARK 1,367 1,300,000 95121 SYMPHONY HEIGHTS 1,539 1,340,000 87121 GRAND CHATEAU 1,141 930,000 81521 BUKIT REGENCY 1,528 1,220,000 79822 THE LAKESHORE 1,163 1,200,000 1,032

Postal District



Unit Price ($ psf)

15 VILLA MARINA 1,130 930,000 82315 THE ESPIRA 1,765 1,450,000 82115 SUNNY PALMS 1,345 1,090,000 81015 NEPTUNE COURT 1,270 970,000 76416 THE DAFFODIL 743 765,000 1,03016 PARBURY HILL CONDOMINIUM 840 850,000 1,01216 BREEZE BY THE EAST 1,776 1,776,000 1,00016 THE BAYSHORE 980 938,000 95816 CHANGI COURT 1,098 1,000,000 91116 WATERFRONT GOLD 1,292 1,145,700 88716 BAYSHORE PARK 1,076 950,000 88316 THE DAFFODIL 753 645,000 85616 THE BAYSHORE 1,259 1,027,600 81616 EASTWOOD GREEN 1,012 790,000 78116 TANAMERA CREST 1,195 913,000 76416 TROPICANA CONDOMINIUM 1,765 1,085,000 61516 BEDOK COURT 2,271 1,351,000 59517 FERRARIA PARK CONDOMINIUM 1,066 1,160,000 1,08917 FERRARIA PARK CONDOMINIUM 958 948,000 99017 FERRARIA PARK CONDOMINIUM 1,023 975,000 95317 BLUWATERS 2 872 788,000 90417 AVILA GARDENS 893 740,000 82817 DAHLIA PARK CONDOMINIUM 1,249 966,000 77417 CHANGI GARDEN 1,399 960,000 68617 LOYANG VALLEY 1,507 900,000 59717 LOYANG VALLEY 1,528 810,000 53018 LIVIA 915 930,000 1,01618 RIS GRANDEUR 1,367 1,223,888 89518 NV RESIDENCES 1,227 1,078,560 879



Postal District



Unit Price ($ psf)

22 THE LAKEFRONT RESIDENCES 1,216 1,230,000 1,01122 PARC OASIS 1,507 1,200,000 79623 FORESQUE RESIDENCES 1,432 1,578,800 1,10323 THE PETALS 1,765 1,650,000 93523 HILLBROOKS 1,173 938,666 80023 PALM GARDENS 1,206 880,000 73023 CHESTNUT VILLE 2,077 1,500,000 72223 PALM GARDENS 1,216 870,000 71523 REGENT GROVE 1,195 820,000 68623 REGENT GROVE 1,163 790,000 68023 PALM GARDENS 1,206 811,000 67325 CASABLANCA 893 765,888 85725 ROSEWOOD 1,173 848,000 72325 ROSEWOOD 2,153 1,270,000 59026 BULLION PARK 1,259 1,050,000 83426 SEASONS PARK 1,066 830,000 77927 EIGHT COURTYARDS 969 810,480 83727 SELETARIS 1,324 1,000,000 75527 YISHUN EMERALD 1,001 750,000 74927 YISHUN SAPPHIRE 1,206 845,000 70127 EUPHONY GARDENS 1,195 820,000 68627 YISHUN SAPPHIRE 1,399 880,000 62928 SELETAR SPRINGS CONDOMINIUM 1,335 1,020,000 76428 SELETAR SPRINGS CONDOMINIUM 1,335 898,000 673

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

Documents

Singapore Property Weekly Issue 7