Issue 81

Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.

CONTENTS
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No Money Down Properties Legit Scheme or Scam? Singapore Property News This Week Resale Property Transactions (November 21 November 27)

FROM THE

EDITOR

Welcome to the 81st edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise

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SINGAPORE PROPERTY WEEKLY Issue 81

No Money Down Properties Legit Scheme or Scam?

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 one can 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

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SINGAPORE PROPERTY WEEKLY Issue 81 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 NoMoney Down scheme and claim they come with high returns. Legit Scheme or Scam? 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 turning a profit. Maybe thats why they should be termed seminar gurus 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 their own to make money from their actual investments. Just because its possible doesnt make it probable! The term No Money Down simply means 100% financed, by other peoples 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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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 money down? 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 in theory 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.
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SINGAPORE PROPERTY WEEKLY Issue 81 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 knew such self-proclaimed property gurus 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 discover Secrets of how to own properties with little or no money down? or How to own three properties with just one property? The gurus will have you cough out thousands of dollars just to attend workshops 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 now and can soon be millionaires upon graduation.

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SINGAPORE PROPERTY WEEKLY Issue 81 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. Till then, always invest with your head and not your heart! By guest contributor Gerald Tay, CEO and Chief Trainer at CREi Academy Group.

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SINGAPORE PROPERTY WEEKLY Issue 81

Singapore Property This Week

Residential
Changes made to restrictions redevelopment of en bloc sites on 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 2008 will be granted a one-time extension of the PCP upon application and without charge. (Source: Business Times) CityLife@Tampines units in high demand

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 fiveyear 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 to buy 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,
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The 514-unit CityLife@ Tampines with a luxury hotel- style home concept over three times subscribed at the close of its eapplications period, having received a record
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SINGAPORE PROPERTY WEEKLY Issue 81 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 the penthouses range from 1,356 to 4,370 sq ft. (Source: Business Times) 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 17storey 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
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Punggol MRT station and the town centre. (Source: Business Times)

Prices of resale non-landed private homes hit record average of $1,222 psf in Oct and Nov
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
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SINGAPORE PROPERTY WEEKLY Issue 81 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 HDB median monthly rents remained at $2,400. (Source: Business Times) Commercial Industrial rents expected to climb With more investors turning to the industrial property market after the introduction of the ABSD, 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, driving up prices as a result of higher demand. (Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 81 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 along Duku 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 and 2,100 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. (Source: Business Times) URA launches F&B site in Punggol URA has launched a commercial site zoned
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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 will have 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. (Source: Business Times) 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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SINGAPORE PROPERTY WEEKLY Issue 81 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. The interest 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 Novena MRT and the basement will likely be taken up by shops. (Source: Business Times)
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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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SINGAPORE PROPERTY WEEKLY Issue 81 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 City Centre 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 industrial complexes to house existing industrialists. While some welcome the redevelopments, others worry about the oversupply of
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industrial factory units in the area, or the potential increase in rents. (Source: Business Times) 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 mixed development 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 carpark lots in the basement while residents are entitled to separate carparking facilities on the second and third levels. (Source: Business Times)
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SINGAPORE PROPERTY WEEKLY Issue 81 The Index at Robinson Rd now SBF Center With the Singapore Business Federation (SBF) becoming a major occupier at the 99year 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 foodand-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
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suites. Despite the interest shown in its F&B space, the developer is considering not selling.

(Source: Business Times)

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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SINGAPORE PROPERTY WEEKLY Issue 81 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 in a $3.05 psf gap. (Source: Business Times) 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
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practices in the logistics industry, as well as amenities such as landscaping, alfresco dining and possibly medical and childcare facilities. (Source: Business Times)

SINGAPORE PROPERTY WEEKLY Issue 81

Non-Landed Residential Resale Property Transactions for the Week of Nov 21 Nov 27
Postal District 2 3 3 3 5 5 5 5 5 8 9 9 9 9 9 10 10 10 10 10 10 11 11 11 Project Name ICON REGENCY SUITES THE ANCHORAGE LANDMARK TOWERS PARC IMPERIAL BOTANNIA BUONA LODGE WEST BAY CONDOMINIUM PALISADES CITYLIGHTS HELIOS RESIDENCES ONE OXLEY RISE LEONIE HILL RESIDENCES THE REGALIA THE REGALIA REGENCY PARK MILL POINT THE LEVELZ WATERFALL GARDENS THE ESTORIL MUTIARA CREST ZEDGE SKY@ELEVEN ROCHELLE AT NEWTON Area (sqft) 570 1,421 1,550 1,033 366 1,561 1,647 850 3,294 893 1,281 721 1,389 1,249 1,270 2,260 527 1,001 1,830 2,088 1,550 484 2,271 1,356 Transacted Price ($) 1,120,000 2,300,000 1,900,000 1,100,000 680,000 1,760,000 1,620,000 832,000 3,150,000 1,400,000 4,481,500 1,460,000 2,680,000 2,000,000 1,938,888 4,300,000 1,000,000 1,530,000 2,750,000 2,500,000 1,850,000 900,000 4,200,000 2,169,000 Price Tenure ($ psf) 1,963 99 1,619 FH 1,226 FH 1,065 99 1,858 FH 1,128 956 984 FH 978 99 956 FH 1,567 99 3,499 FH 2,024 FH 1,930 FH 1,602 FH 1,527 FH 1,902 FH 1,896 999 1,528 FH 1,503 FH 1,197 FH 1,194 FH 1,858 FH 1,849 FH 1,599 99 Postal District 11 11 14 14 14 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 Project Name THE TREVOSE HILLCREST ARCADIA DAKOTA RESIDENCES SIMS POINT ATRIUM RESIDENCES THE SEAFRONT ON MEYER THE BELVEDERE WATER PLACE THE ESTA THE ATRIA AT MEYER PEBBLE BAY MABELLE MANDARIN GARDEN CONDOMINIUM MARINE MEADOWS DAWN VILLE THE PALLADIUM COASTARINA VILLA MARINA SUNNY PARC COSTA RHU EASTWIND MANSIONS TEMBELINA THE GLACIER SHEBA LODGE Area (sqft) 1,302 1,970 1,023 1,227 1,991 1,604 1,259 904 1,561 1,615 1,894 527 1,001 1,690 1,195 2,034 1,389 1,281 2,088 1,485 1,345 1,410 2,336 1,270 Transacted Price ($) 1,800,000 2,167,000 1,515,000 975,000 1,500,000 2,618,000 2,000,000 1,330,000 2,201,010 2,230,000 2,600,000 700,000 1,180,000 1,890,000 1,300,000 2,200,000 1,420,000 1,260,000 2,008,888 1,411,700 1,200,000 1,180,000 1,722,000 920,000 Price Tenure ($ psf) 1,382 99 1,100 99 1,482 99 795 FH 753 FH 1,632 FH 1,588 FH 1,471 99 1,410 FH 1,381 FH 1,372 99 1,327 FH 1,179 99 1,118 FH 1,088 FH 1,081 FH 1,023 FH 984 99 962 FH 950 99 892 FH 837 FH 737 FH 724 FH

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SINGAPORE PROPERTY WEEKLY Issue 81

Postal District 16 16 16 16 16 16 16 16 16 16 16 17 17 19 19 19 20 20 21 21 21 21 21 23 23 23 23 Project Name COUNTRY PARK CONDOMINIUM BAYSHORE PARK THE BAYSHORE BAYSHORE PARK THE CLEARWATER EAST MEADOWS CASA MERAH THE CLEARWATER CASAFINA EASTWOOD GREEN KEW GREEN CELADON VIEW LOYANG VALLEY OASIS GARDEN LEITH GROVE RIVERVALE CREST SHUNFU VILLE SHUNFU VILLE THE CASCADIA THE CASCADIA MEADOWLODGE THE RAINTREE ASTOR GREEN HILLVIEW REGENCY MERAWOODS THE LINEAR MERAWOODS Area (sqft) 1,087 936 1,432 936 1,367 1,195 2,196 1,206 1,345 1,173 2,992 1,367 1,485 1,475 818 1,184 1,658 1,658 990 1,238 1,206 1,270 1,066 1,195 1,001 1,227 1,507 Transacted Price ($) 1,250,000 1,000,000 1,528,000 930,000 1,350,000 1,150,000 2,100,000 1,150,000 1,250,000 1,070,000 2,138,000 1,050,000 1,065,000 1,680,000 925,000 850,000 1,330,000 1,250,000 1,750,000 2,180,000 1,413,000 1,388,000 1,080,000 1,200,000 985,000 1,170,000 1,330,000 Price Tenure ($ psf) 1,150 FH 1,068 99 1,067 99 993 99 988 99 963 99 956 99 954 99 929 99 912 99 714 99 768 999 717 99 1,139 FH 1,131 FH 718 99 802 99 754 99 1,767 FH 1,761 FH 1,172 99 1,093 99 1,013 99 1,004 99 984 999 953 999 883 999
Postal District 23 23 23 23 23 26 27 27 27 28 Project Name PARKVIEW APARTMENTS THE LINEAR MERAWOODS REGENT GROVE REGENT GROVE BULLION PARK ORCHID PARK CONDOMINIUM SELETARIS ORCHID PARK CONDOMINIUM SERENITY PARK Area (sqft) 980 1,281 4,036 1,163 1,163 1,873 958 1,593 1,152 1,324 Transacted Price Tenure Price ($) ($ psf) 860,000 878 99 1,088,000 849 999 3,330,000 825 999 938,000 807 99 863,000 742 99 1,920,000 1,025 FH 785,000 819 99 1,270,000 797 FH 825,000 716 99 1,282,000 968 FH

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.

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