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CONTENTS
p2 Impact of the New EC Cooling Measures
p5 Singapore Property News This Week
p9 Resale Property Transactions
(November 27 – December 3)
Welcome to the 134th edition of the
Singapore Property Weekly .
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
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By Marcus Sim (guest contributor)
The Ministry of National Development have
introduced three new measures that will be
aimed to regulate the Executive
Condominium scheme. This is to ensure
greater parity to that of public housing and to
improve the viability and sustainability of the
EC market.
Details of the 3 measures
The first measure will involve fees imposed
when buyers cancel their EC purchase.
Cancellation fees have been decreased from20% to 5% of the EC purchase price. This is
to alleviate their financial strain. This will be in
effect for land sales launched on or after 9
December and will include those with tenders
Impact of the New EC Cooling Measures
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that are not closed. The current cancellation
fee for ECs matches that of private housing –
20%. The difference lies in the inability of EC
buyers to sub-sell their units during an
incomplete purchase, which brings cause for the implementation of the fee.
The second measure will affect buyers who
are directly applying for EC units from
developers for the second-time. A new resale
levy will be imposed on this group of buyers.
The new ruling will be in effect for to land
sales launched on or after 9 December and
will include those with tenders that are not
closed. From current market practice, such
applicants will gain to benefit from reduced
prices due to the initial eligibility and
ownership restrictions imposed on the
purchase of ECs. Therefore, this new ruling
will ensure greater uniformity between buyers
applying for EC and BTO flats for the second
time.
The third measure will be implemented by the
Monetary Authority of Singapore (MAS).
Buyers of EC units whose housing loans are
granted by financial institutions will be
imposed with a cap on the loan’s MortgageServicing Ratio (MSR). This will concern units
that have been directly purchased from
developers at 30% of the debtor’s gross
monthly income. The new cap imposed is in
alignment with previous measures
implemented by the Housing DevelopmentBoard and Monetary Authority of Singapore.
The objective of this new measure is that of
strengthening financial austerity of buyers of
public housing units. It will serve to deter EC
buyers from over-straining their finances as
well, which will further spur an economicaland viable EC market. If the Option to
Purchase is granted on or after 10 December
for an EC purchase, the cap will be imposed.
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Implications of the new EC measures
The introduction of new cooling measures to
regulate the Executive Condominium (EC)
scheme will encourage developers to bemore conscious of the income ceiling of its
potential buyers and their ability to afford the
EC purchase.
With the new Mortgage Servicing Ratio cap in
place, EC buyers will be affected the most.
The key question now would be their ability toafford the EC as the MSR caps at 30% of the
buyer’s gross monthly income. At the same
time, a new measure will see a resale levy
imposed on buyers who are directly applying
for EC units from developers for the second-
time.
These two measures will complement each
other and ensure greater uniformity between
the buyers of public housing and ECs. This
will encourage developers to fine-tune and
adapt more appropriate land bid prices as
well. The ensuing land bids on ECs will be
monitored closely; so as to observe and judge
the effectiveness of the newly introduced
measures in reducing the number of bids per
site and/or the size or amount of the
successful bids.
The new MSR cap for ECs is likely to cause a
significant decrease of 50% in the purchasingpower of EC buyers. Buyers who had held
earlier ambition of an EC upgrade would now
have to re-consider their decision. If the MSR
30% cap was to be imposed on current EC
units, affording the units would be practically
impossible. As a result, EC developers arelikely to construct smaller units in future, so
as to ensure affordability, even despite it
being at the expense of living space.
By Marcus Sim of SG Property Reviews.
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Singapore Property This Week
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Residential
E C s c h e m e t o b e c h a n g e d
The executive condominium (EC) scheme
has been changed by the Ministry of National
Development to bring the terms for ECs
closer to public housing terms and to supporta stable EC market. Three changes will be
made following a review of feedback from the
Our Singapore Conversation, including the
adjustment of the Mortgage Servicing Ratio
(MSR) which is for EC housing loans from
financial institutions for units bought directlyfrom developers. The MSR will now be
capped at 30 percent of gross monthly
income and will apply to purchases with the
option-to-purchase is granted from December
10, 2013 onwards. This has been seen as aneffective move to cool demand for ECs, as
the MSR did not apply to ECs previously.
(Source: Business Times)
2 0 1 4 l i k e l y t o b e q u i e t e r y e a r f o r p r o p e r t y
ma r k e t
Compared with year 2013 which had policies
to cool the property market and a number of
firsts in public housing, 2014 may be a quieter
year. According to consultants, it is unlikely
that the government will roll out any new
policies in 2014, despite some possible
tweaking of existing measures. Chua Yang
Liang, head of research, South-east Asia, at
Jones Lang LaSalle said that any possible
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policy changes will depend on the pace of
economic growth and the response from the
property market. He predicted that the
government would be comfortable with a
healthy long-term growth rate of 1-2 percent a
quarter on the Property Price Index.
(Source: Business Times)
E u n o s v i l l e a n d J e r v o i s G a r d e n s l a u n c h e d
f o r c o l le c t iv e s a le
After its maiden collective sales attempt was
thwarted by the introduction of the total debt
servicing ratio (TDSR) framework, the 330-
unit Eunosville opposite Eunos MRT Station
is now back on the market. In addition,
Jervois Gardens would join Eunosville to be
launched for collective sale by tender. Similar
to its collective sale attempt in June,
Eunosville is being put for a minimum price of
$688 million or about $806 psf ppr on the
potential gross floor area (GFA), which
includes estimated differential premiums of
$163 million payable to top up the site's lease
from a balance term of around 74 years to 99
years and intensification of use.
(Source: Business Times)
M ar in a B ay t o b ec o m e t h e n e w f in an c ia l
a n d r e s id e n t ia l d is t r ic t
According to the recent Urban
Redevelopment Authority (URA) Draft Master
Plan 2013, Marina Bay would soon become
the new financial and residential district in the
urban city centre. The Marina Bay Financial
Centre (MBFC) with its second phase
completed earlier this year is the only
development on the new Marina Bay site as
of now. MBFC includes two residential and
three commercial buildings, and is designed
as a landmark development that artistically
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merges the older part of the business district
with future developments by Marina Bay to
create a strong profile on the Singapore
skyline.
(Source: Business Times)
Commercial
Far Eas t is t op b id der f or t hir d s it e i n
G am b a s A v e n u e
Following its acquiring of Parcel 1 and Parcel2, property giant Far East Organization has
continued to win the bid for the third plot of
land in Gambas Avenue in the
Woodlands/Sembawang area at a state
tender. The group's unit Grow-Tech
Properties' winning bid for the third plot was$102.20 psf ppr, which is lower than the
$137.90 psf ppr it paid for Parcel 1 and
$127.19 psf ppr for Parcel 2 at an Urban
Redevelopment Authority tender in October.
As Parcel 2 is beside Parcel 3, the group is
expected to do a combined project for both
plots. Far East is planning to include a range
of industrial product types - such as ramp-up,
flatted and terrace factories - for sale andlease for all three sites. Parcel 4, currently on
the reserve list, is also highly expected to be
launched.
(Source: Business Times)
A t r i u m s h o p l o t a t S im L i m S q u a r e o n s a le
The only atrium shop space of 2,756 sq ft on
the ground floor of Sim Lim Square is now
launched for sale by expression of interest by
CBRE, the sole marketing agent for the sale.
CBRE is reported to expect strong offers in
excess of $48 million or $17,417 psf for the
shop lot. Previously in March, a ground floor
shop located along the second corridor was
transacted at $10,719 psf.
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As Sim Lim Square shops are under the
commercial property zoning, both locals and
foreigners are eligible to purchase it with no
additional buyers' stamp duty imposed.
(Source: Business Times)
St a b le o u t lo o k f o r S- R eit s in 2 0 14
As Moody's 13 rated S-Reits are expected to
grow by 4 percent along with a larger asset
base and rent increases on existing
properties, the outlook for Singapore realestate investment trust sector is stable for
2014. Overall occupancy and rental rates are
expected to remain stable, but the
warehousing segment may have weakness
from a spike in the supply of new warehouse
space, although 40 percent has been pre-committed by end-users and thus may
mitigate the impact of the enlarged supply.
Office landlords are expected to have more
pricing power due to a limited supply of new
office space in the core central business
district (CBD).
(Source: Business Times)
In d u s tr ial s eg m e n t t h e h a r d es t h i t i n S - Reit fall
According to MayBank Kim Eng’s latest
report, the industrial segment was the hardest
hit in the recent decline of the Singapore-
listed real estate investment trust market. The
industrial segment decreased 3.4 percentover five days, while the overall S-Reit market
fell 2.7 percent. In addition, healthcare Reits
decreased 3.2 percent, both office and retail
Reits decreased 2.8 percent, and hospitality
Reits decreased 0.4 percent. The increase in
industrial property prices over the past four years to reach record levels since the global
financial crisis of 2007-2008 is probably an
unintended consequence.
(Source: Business Times)
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Non-Landed Residential Resale Property Transactions for the Week of Nov 27 – Dec 3
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 apurchaser signs an OTP, hence the lagged nature of the data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
2 INTERNATIONAL PLAZA 1,604 1,818,000 1,134 99
3 ASCENTIA SKY 1,475 2,065,000 1,400 99
4 REFLECTIONS AT KEPPEL BAY 2,508 5,000,000 1,994 99
4 REFLECTIONS AT KEPPEL BAY 1,076 1,700,000 1,579 99
5 PARC IMPERIAL 1,044 1,300,000 1,245 FH
9 THE ORCHARD RESIDENCES 2,852 12,300,000 4,312 99
9 NOMU 474 1,100,000 2,323 FH
9 THE REGALIA 1,238 1,920,000 1,551 FH
9 LEONIE GARDENS 3,617 4,750,000 1,313 99
10 NASSIM PARK RESIDENCES 3,466 13,170,800 3,800 FH
10 ZENITH 560 1,110,000 1,983 999
10 GALLOP GREEN 4,402 8,500,000 1,931 FH
10 SOMMERVILLE GRANDEUR 1,841 2 ,750,000 1,494 FH
11 SHELFORD SUITES 1,249 1,890,000 1,514 FH
12 OLEANDER TOWERS 893 1,090,000 1,220 99
12 THE ABERDEEN 1,475 1,515,000 1,027 FH
13 WOODSVILLE 28 1,195 1,400,000 1,172 99
13 BELLA VISTA 1,173 1,112,450 948 FH
15 IMPERIAL HEIGHTS 452 740,000 1,637 FH
15 MEYER RESIDENCE 1,152 1,790,000 1,554 FH
15 TIERRA VUE 2,056 2,480,000 1,206 FH
15 LAGUNA PARK 1,453 1,290,000 888 99
15 VILLA MARINA 2,024 1,660,000 820 99
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
15 FORTUNE SPRING 2,131 1,648,000 773 FH
17 FERRARIA PARK CONDOMINIUM 1,722 1,550,000 900 FH
19 AMARANDA GARDENS 1,163 1,550,000 1,333 FH
19 REGENTVILLE 980 835,000 852 99
19 RIO VISTA 1,238 1,050,000 848 99
21 THE CASCADIA 1,496 2,380,000 1,591 FH
21 SIGNATURE PARK 1,399 1,485,000 1,061 FH
22 THE LAKESHORE 1,281 1,200,000 937 99
23 THE MADEIRA 936 983,000 1,050 99
23 CHANTILLY RISE 947 905,000 955 FH
23 MI CASA 1,098 1,000,000 911 99
23 THE WARREN 1,249 1,080,000 865 99
23 PARKVIEW APARTMENTS 1,163 935,000 804 99
27 YISHUN EMERALD 1,195 918,000 768 99
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