Singapore Property Weekly Issue 81

7/30/2019 Singapore Property Weekly Issue 81

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Issue 81Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 No Money Down Properties Legit

Scheme or Scam?

p6 Singapore Property News This Week

p14 Resale Property Transactions

(November 21 November 27)

Welcome to the 81st 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]


3/16

SINGAPORE PROPERTY WEEKLY Issue 81

Page | 2Back to Contents

By guest contributor Gerald Tay

There are many myths about doing property

deals. Most contain a grain of truth and a lot

of misinformation. Several printed

advertisements and mass emails in the past

couple of years have been claiming that onecan invest and own properties with no money

down. One advertisement even claims you

can make millions of dollars with no money

down in just 24 months!

Essentially, the advertisers would run a free

seminar to induce participants to sign up for

their property courses that come with very

hefty fees in the thousands of dollars to learn

No Money Down Properties Legit Scheme or Scam?


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their Secrets of the Experts property

strategies that any average investor could

apply with success. These advertisers would

also sell you overseas properties on a No-

Money Down scheme and claim they comewith high returns.

Legit Scheme or Scam?

The biggest question for a property investor is

always about creative financing, i.e. how can I

put a deal together with little or no moneydown? To be honest, in almost any property

transaction, a decent amount of money would

have to be put down, including stamp duties,

legal fees, renovation costs and other upfront

fees. Of course, for any property investor, the

big dream is No money Down. Although intheory it sounds very attractive and might just

be doable, the truth is most average

Singapore buyers will never see the

opportunity to do it in their lifetime.

These property gurus use the same tactics

that lottery ticket sellers use they promote

the one or two people that succeeded and

neglect telling you about the bad side of the

deal and the near certainty of you not turninga profit. Maybe thats why they should be

termed seminargurus rather than property

gurus because they are more adept in

making money from selling books, CDs,

seminars and workshops to participants,

rather than applying these theories on theirown to make money from their actual

investments.

Just because its possible doesnt make it

probable!

The term No Money Down simply means100% financed, by otherpeoples money, i.e.

the deal is financed by someone elses

money for the down payment. It requires

tremendous leverage and a very high degree


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of investor knowledge and expertise to pull it

off profitably.

My late multi-millionaire grandfather would be

laughing out loud from his grave if he knewsuch self-proclaimed propertygurus existed

to promote such a questionable investment

strategy to the average buyer in todays

highly volatile property market.

My family owned businesses and real estate

developments, both overseas and Singapore.

We owned several properties in the prime

districts as well as commercial buildings in

the central business district of Singapore. We

were also property developers ourselves and

have built terrace houses and apartments in

sub-urban areas. All these were financed with

the help of banks loans and cash from other

businesses, which were all painstakingly built

up by my late grandfather over four decades!

Never had he ever mentioned that one can

buy properties on a No Money Down

scheme, certainly NOT for the average

Singapore retail buyer.

Would you like to discoverSecrets of how to

own properties with little or no money down?

orHow to own three properties with just one

property? The gurus will have you cough

out thousands of dollars just to attendworkshops or seminars that teach

questionable investment techniques, claim

you can own properties with no money down,

pepper you with lots of crappy motivational

talk, then sell you properties at the end of the

workshop saying you must take action nowand can soon be millionaires upon

graduation.


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Would you like to know WHO is really making

the millions? Is it you or those seminar

providers who charge hefty course fees? (e.g.

$3,000 X 30 participants = $90,000 X 12

times a year, or just once a month = $1.08

million in revenue!)

In the next article, I will share some No

Money Down techniques often marketed by

self-proclaimed gurus and what risks they

pose for the average Singaporean buyer. Tillthen, always invest with your head and not

your heart!

By guest contributor Gerald Tay, CEO and

Chief Trainer atCREi Academy Group.
http://www.crei-academy.com/http://www.moneymatters.sg/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/http://www.crei-academy.com/


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Singapore Property This Week


ResidentialChanges made to restrictions on

redevelopment of en bloc sites

In response to feedback from the industry,

there have been changes made to the

regulations of the redevelopment of en bloc

sites. Currently, foreign developers buying

residential en bloc sale sites are given a five-

year project completion period (PCP) which

starts from the date of the issue of a

Qualifying Certificate (QC), which foreign

developers must obtain from the authorities tobuy private residential land in Singapore.

Now, for QCs issued on or after July 1, 2012,

the PCP will start from the date of the

collective sale order. Similarly, for the ABSD,

the start date of the five-year period to qualify

for the ABSD remission for en bloc sales will

start from the date of the collective sale order.

Separately, developers who had rented out

the units in the existing development of en

bloc sale sites instead of redeveloping them

in response to the governments call in 2008will be granted a one-time extension of the

PCP upon application and without charge.

(Source: Business Times)

CityLife@Tampines units in high demand

The 514-unit CityLife@ Tampines with a

luxury hotel- style home concept over three

times subscribed at the close of its e-

applications period, having received a record

SINGAPORE PROPERTY WEEKLY I 81


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1,800 applications. The most popular units

were the dual-key and larger-sized units. The

development features an infinity pool and

"skysuite" and penthouse units. Two-bedroom

units range from 753 to 807 sq ft while thepenthouses range from 1,356 to 4,370 sq ft.


Punggol EC site attracts $162.1m top bid

The 99-year leasehold 153,999 sq ft site

located at the junction of Punggol Field Walk

and Punggol East attracted a total of seven

bids with the top bid of $162.1 million or

$350.87 psf ppr from Sing Holdings Ltd. Sing

Holdings plans to develop six blocks of 17-

storey buildings with full condominium

facilities on the site with a 461,997 sq ft GFA

can yield 435 units. The top bid exceeded the

expectations just as the high bids were

surprising, since the site is located away from

Punggol MRT station and the town centre.


Prices of resale non-landed private homes

hit record average of $1,222 psf in Oct andNov

This was driven by the increase in resale

private home prices in all regions, with prices

in the OCR increasing by 4.5% from Q3 to

$959 psf, prices in the RCR increasing by

3.3% to $1,224 psf, and prices in the CCR

increasing by 2.8% to $1,778 psf. Resale

transaction volumes also saw a 6% increase

to 2,483 transactions in this period compared

to the first two months of Q3. With the 1% fall

of average unit monthly rents to $3.84 psf in

the first two months of Q4 from $3.88 psf in

Q3 (result of the 2.5% decline in the RCR to

$3.91 psf, since rents in other regions

remained relatively stable), the overall gross

SINGAPORE PROPERTY WEEKLY I 81


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rental yields fell to a six-year low of 3.77% in

this period.

Meanwhile, the 1,328 contracts signed for

rental of shoebox units reflects the high

demand for such units. The year-to-date

transaction volume for resale shoebox units

currently stands at 198. The average unit

monthly rental of shoebox units remained

high in Q4 at $6.65 psf, a 0.6% climb from

Q3s $6.61 psf.

The overall COV in the HDB resale market hit

$34,000 in October and November, with the

$33,000 in October increasing to $35,000 in

November, which results in a 1.1% higher

overall HDB median resale price of $455,000

compared to Q3 prices. The overall HDBmedian monthly rents remained at $2,400.


Commercial

Industrial rents expected to climb

With more investors turning to the industrial

property market after the introduction of theABSD, prices of industrial properties have

increased by 27% this year. Residential

property developers are also moving into the

industrial property market. The increasing

shop rents have also led store owners to shift

their retail operations to light industrial parks.While the increase in industrial property

prices have yet to affect the rents in such

properties, with a 6% increase this year, this

may change when leases are renegotiated.

Businesses may also choose to buy industrial

properties instead of merely renting, drivingup prices as a result of higher demand.




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Muis sells four 199-year properties

The Islamic Religious Council of Singapore

(Muis) are selling four properties on 199-year

leases by public tender. These include two

intermediate terrace houses located alongDuku Road with an approximate land area of

2,000 sq ft and inter-terrace conserved

shophouses located at Rowell Road and

Upper Weld Road. The two shophouses have

an approximate land area and an

approximate built up area of 1,100 sq ft and2,100 sq ft respectively. They are zoned for

commercial use within the Little India

conservation area. The 199-year lease

promises more investment returns for the

owner and has a potentially 15% higher value

than that of a 99-year leasehold property.


URA launches F&B site in Punggol

URA has launched a commercial site zoned

specifically for food and beverage (F&B) use

at Punggol Point for public tender. The

11,606.6 sq m site will be sold with a lease

term of 15 years. There is also a height

restriction of two storeys for the site. It willhave a maximum permissible GFA of 3,000

sq m including outdoor refreshment area. It is

likely to attract both F&B operators and

developers with a top bid of $35-40 million.


Novena white site attracts record high bid

of $492.5m

The 0.66-hectare white site located at the

junction of Thomson Road and Irrawaddy

Road which has a 301,852 sq ft GFA

attracted a top bid of $492.5 million or

$1,631.59 psf ppr, beating out eight other

bidders. It was a joint-bid from Hoi Hup

Realty Pte Ltd, Sunway Developments Pte

Ltd and Hoi Hup JV Development Pte Ltd.



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The high bid is attributed to the high selling

prices of some strata retail and office space.

The site can be put to commercial, residential

or hotel use though a minimum 30 per cent of

the GFA must be set aside for hotel use. Theinterest for the site is expected, since it is

near Novena MRT station and several

medical centres such as Tan Tock Seng

Hospital, Novena Medical Centre and Mount

Elizabeth Novena Hospital and existing

commercial developments, such as Velocity@ Novena Square. The developer plans to

build a 3.5 to 4-star hotel with the remaining

70% of the GFA for commercial facilities and

medical suites. While the commercial space

is expected to be largely medical suites, the

ground floor and a linkway between NovenaMRT and the basement will likely be taken up

by shops.


Defu Industrial Estate to be transformed

modern industrial park

This will be done over the next 15-20 years

with existing factories being replaced by

modern complexes. There will be six-storey

buildings in the new Defu Industrial Park,

which will include the Defu City Centre and

the Defu Industrial City. The Defu Industrial

City and Bedok Food City will be built to

facilitate the relocation of the existing

factories in Defu Industrial Estate, with

factories in the food industry being relocated

to Bedok Food City and factories in general

industries relocated to Defu Industrial City, a

13-hectare site next to the Kallang-Paya

Lebar Expressway. There are currently 1,046

factories in the estate, of which 219 factories

(87 land-based factories on 30-year leases

and 42 land-based factories and 90 terrace

workshops on fixed-term tenancies)



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will be involved in the first phase of the

redevelopment which will comprises three

phases. Once the Defu Industrial City is

completed in 2017, the new Defu City Centre

will be developed next to it. The Defu CityCentre will house food-and-beverage outlets,

convenience stores, medical clinics and

childcare centres.

The new industrial park will have a five-time

increase in the total amount of factory floor

space to 2.1 million sq m of industrial space.It will consist of three key zones, with the

northern and central zones for strategic

industries such as logistics, precision

engineering, infocommunications and media,

electronics, clean energy and biomedical and

the southern zone for modern industrialcomplexes to house existing industrialists.

While some welcome the redevelopments,

others worry about the oversupply of

industrial factory units in the area, or the

potential increase in rents.


RB Capital buys 16 The Quayside retail

units at $69m

The 16 ground-floor riverfronting retail units

which comprises The Quayside's retail

podium were bought at $69 million or $2,110

psf based on the 33,000 sq ft total leaseable

area. The units are part of a mixeddevelopment The Quayside located in the

Robertson Quay area which also includes 79

apartments. The fully leased units generates

an average monthly rent of about $6 psf or a

net yield of 3%, half the current signing rents

of similar units. Retail units have 80 carparklots in the basement while residents are

entitled to separate carparking facilities on the

second and third levels.




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The Index at Robinson Rd now SBF Center

With the Singapore Business Federation

(SBF) becoming a major occupier at the 99-

year mixed development, The Index at

Robinson Road has been renamed the SBF

Center. SBF currently occupies 20,000 sq ft

of space at Keppel Towers and will likely take

up the same or more at SBF Center, which

has a 353, 000 sq ft GFA. The SBF Center,

which is expected to be launched in January,

will comprise offices, medical suites and food-

and-beverage outlets, and has space set

aside for civic and community institutional

use. There will be 197 offices for sale, with

192 smaller strata units ranging from 592 sq

ft to 1,442 sq ft, and five 10,549 sq ft floor

plate offices. In addition, there are also 48

medical suites ranging from 614 to 1,345 sq ft

up for sale. Prices start from $2,400 psf for

the offices and $3,500 psf for the medical

suites. Despite the interest shown in its F&B

space, the developer is considering not

selling.


Narrowed rental gap between Grade A and

B office islandwide to widen next year

With the predicted 13.5% fall in 2012s

average monthly rental of Grade A office

space, to $9.51 psf from$11 psf in Q4 last

year, and the expected slower rental decline

of 2.3% of Grade B office space from $7.34

psf in Q4 2011 to $7.17 psf in Q4 this year,

the rental gap had narrowed to a $2.34 psf

compared to $3.66 psf last year. The

relatively better performance in Grade B

office space is due to the expansion of

existing tenants, while the poorer

performance of Grade A office is attributed to

the increased vacancy rates caused by



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completion of major new developments.

However, this is expected to change as

Grade A rents is expected to remain flat at an

average of $9.50 psf in Q4 2013, while Grade

B rents fall by 5-10% to $6.45 psf resulting ina $3.05 psf gap.


YCH Group building Supply Chain City, a

$200m logistics hub in Jurong West

The new facility will include 1.5 million sq ft of

warehousing space and 0.5 million sq ft of

office space, allowing its customers to

integrate their front and back-end operations

to maximise efficiency. Despite being smaller

than the 7.8ha Tuas premises, the 6.5 ha

upcoming YCH premise will have 2.5 times

the capacity. It will also house YCHs

headquarters, research activities, a training

academy to promote the sharing of best

practices in the logistics industry, as well as

amenities such as landscaping, alfresco

dining and possibly medical and childcare

facilities.


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


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Non-Landed Residential Resale Property Transactions for the Week of Nov 21 Nov 27

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

2 ICON 570 1,120,000 1,963 99

3 REGENCY SUITES 1,421 2,300,000 1,619 FH

3 THE ANCHORAGE 1,550 1,900,000 1,226 FH

3 LANDMARK TOWERS 1,033 1,100,000 1,065 99

5 PARC IMPERIAL 366 680,000 1,858 FH

5 BOTANNIA 1,561 1,760,000 1,128 956

5 BUONA LODGE 1,647 1,620,000 984 FH

5 WEST BAY CONDOMINIUM 850 832,000 978 99

5 PALISADES 3,294 3,150,000 956 FH

8 CITYLIGHTS 893 1,400,000 1,567 99

9 HELIOS RESIDENCES 1,281 4,481,500 3,499 FH

9 ONE OXLEY RISE 721 1,460,000 2,024 FH

9 LEONIE HILL RESIDENCES 1,389 2,680,000 1,930 FH

9 THE REGALIA 1,249 2,000,000 1,602 FH

9 THE REGALIA 1,270 1,938,888 1,527 FH

10 REGENCY PARK 2,260 4,300,000 1,902 FH

10 MILL POINT 527 1,000,000 1,896 999

10 THE LEVELZ 1,001 1,530,000 1,528 FH

10 WATERFALL GARDENS 1,830 2,750,000 1,503 FH

10 THE ESTORIL 2,088 2,500,000 1,197 FH

10 MUTIARA CREST 1,550 1,850,000 1,194 FH

11 ZEDGE 484 900,000 1,858 FH

11 SKY@ELEVEN 2,271 4,200,000 1,849 FH

11 ROCHELLE AT NEWTON 1,356 2,169,000 1,599 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

11 THE TREVOSE 1,302 1,800,000 1,382 99

11 HILLCREST ARCADIA 1,970 2,167,000 1,100 99

14 DAKOTA RESIDENCES 1,023 1,515,000 1,482 99

14 SIMS POINT 1,227 975,000 795 FH

14 ATRIUM RESIDENCES 1,991 1,500,000 753 FH

15 THE SEAFRONT ON MEYER 1,604 2,618,000 1,632 FH

15 THE BELVEDERE 1,259 2,000,000 1,588 FH

15 WATER PLACE 904 1,330,000 1,471 99

15 THE ESTA 1,561 2,201,010 1,410 FH

15 THE ATRIA AT MEYER 1,615 2,230,000 1,381 FH

15 PEBBLE BAY 1,894 2,600,000 1,372 99

15 MABELLE 527 700,000 1,327 FH

15 MANDARIN GARDEN CONDOMINIUM 1,001 1,180,000 1,179 99

15 MARINE MEADOWS 1,690 1,890,000 1,118 FH

15 DAWN VILLE 1,195 1,300,000 1,088 FH

15 THE PALLADIUM 2,034 2,200,000 1,081 FH

15 COASTARINA 1,389 1,420,000 1,023 FH

15 VILLA MARINA 1,281 1,260,000 984 99

15 SUNNY PARC 2,088 2,008,888 962 FH

15 COSTA RHU 1,485 1,411,700 950 99

15 EASTWIND MANSIONS 1,345 1,200,000 892 FH

15 TEMBELINA 1,410 1,180,000 837 FH

15 THE GLACIER 2,336 1 ,722,000 737 FH

15 SHEBA LODGE 1,270 920,000 724 FH



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S G O O ssue 8


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

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

16 COUNTRY PARK CONDOMINIUM 1,087 1,250,000 1,150 FH

16 BAYSHORE PARK 936 1,000,000 1,068 99

16 THE BAYSHORE 1,432 1,528,000 1,067 99

16 BAYSHORE PARK 936 930,000 993 99

16 THE CLEARWATER 1,367 1,350,000 988 99

16 EAST MEADOWS 1,195 1,150,000 963 99

16 CASA MERAH 2,196 2,100,000 956 99

16 THE CLEARWATER 1,206 1,150,000 954 99

16 CASAFINA 1,345 1,250,000 929 99

16 EASTWOOD GREEN 1,173 1,070,000 912 99

16 KEW GREEN 2,992 2,138,000 714 99

17 CELADON VIEW 1,367 1,050,000 768 999

17 LOYANG VALLEY 1,485 1,065,000 717 99

19 OASIS GARDEN 1,475 1,680,000 1,139 FH

19 LEITH GROVE 818 925,000 1,131 FH

19 RIVERVALE CREST 1,184 850,000 718 99

20 SHUNFU VILLE 1,658 1,330,000 802 99

20 SHUNFU VILLE 1,658 1,250,000 754 99

21 THE CASCADIA 990 1,750,000 1,767 FH

21 THE CASCADIA 1,238 2,180,000 1,761 FH

21 MEADOWLODGE 1,206 1,413,000 1,172 99

21 THE RAINTREE 1,270 1,388,000 1,093 9921 ASTOR GREEN 1,066 1,080,000 1,013 99

23 HILLVIEW REGENCY 1,195 1,200,000 1,004 99

23 MERAWOODS 1,001 985,000 984 999

23 THE LINEAR 1,227 1,170,000 953 999

23 MERAWOODS 1,507 1,330,000 883 999

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

23 PARKVIEW APARTMENTS 980 860,000 878 99

23 THE LINEAR 1,281 1,088,000 849 999

23 MERAWOODS 4,036 3,330,000 825 999

23 REGENT GROVE 1,163 938,000 807 99

23 REGENT GROVE 1,163 863,000 742 99

26 BULLION PARK 1,873 1,920,000 1,025 FH

27 ORCHID PARK CONDOMINIUM 958 785,000 819 99

27 SELETARIS 1,593 1,270,000 797 FH

27 ORCHID PARK CONDOMINIUM 1,152 825,000 716 99

28 SERENITY PARK 1,324 1 ,282,000 968 FH

Documents

Singapore Property Weekly Issue 81