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Issue 103

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

CONTENTS
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Hidden Dangers in Mixed Development and Mature Estates Property Renting Tip #7: Lease Period

FROM THE

EDITOR

Welcome to the 103th edition of the Singapore Property Weekly.

Hope you like it!


Mr. Propwise

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Singapore Property News This Week


Resale Property Transactions (April 24 April 30)

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SINGAPORE PROPERTY WEEKLY Issue 103

Hidden Dangers in Mixed Development and Mature Estates


By Property Soul (guest contributor) Recently I got a shocking message from my sister: A strong fire broke out in our hometown in the estate where my mother stays.It was built around 15 years ago a five-block residential development and each block comes with 21 storeys. It is also a mixed development with one of the blocks housing a wet/dry market and a food court on the lowest three storeys.

The cause and consequences of the fire


The blaze first started in a dry product store in the wee hours of the morning at around three a.m. (the police are still investigating whether it was arson or an accident).
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SINGAPORE PROPERTY WEEKLY Issue 103 The fire quickly spread to all the other stores. The whole estate was soon surrounded by dense smoke. Amid the sound of a few explosions, 140 firefighters spent seven hours to put out the fire. Close to 700 residents were evacuated and eight people were admitted to the hospital to treat for smoke inhalation. My mother saw the block on fire just next to hers. She was being evacuated to an open space where she waited with others for many hours with no wallet, no phone and nothing until they were finally allowed to go home by climbing up the stairs (no one was allowed to use the lift). The dangers of staying in a mixed-use development The incident reminds me of the concerns about staying in a mixed-use development.
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Similar to my mother, people choose to stay in a mixed commercial and residential project for the daily convenience it provides. However, the residents also have to compromise in terms of tranquility, security and safety. According to the Urban Development Authority, mixed commercial and residential buildings in Singapore can use up to 40 percent of its total gross floor area for commercial activities. A common design can be an apartment block built on top of a shopping mall. Some residential developments may only have shops or shophouses on the ground floor. However, the main activities, human traffic, security concerns, fire regulations, etc. are very different between residential and commercial premises.
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SINGAPORE PROPERTY WEEKLY Issue 103 Most people are not aware of the implications behind or the hidden dangers until accidents happen. In the case of this terrible fire, the market was originally built for the convenience of residents in the estate. With affordable rent, goods in the market can be sold at lower prices. It soon became the most popular wet market in the city famous for its cheapest, freshest and biggest variety for shoppers. Although the estate was not near to any train station, people from different corners of the city still flock there to buy food and ingredients. Residents at the blocks also complained that they couldnt hear the fire alarm at all. The sound of the alarm was so weak that some residents thought it was just another lift malfunction. The management office explained that the fire alarm of the market was separate from the ones at the residential blocks. Fire alarms at the latter was not triggered by the fire in the market.

Mature estates also have concentration of the elderly

high

Another potential risk comes from the high concentration of elderly in mature estates. The estate on fire was situated in an old district with predominantly senior residents. During the fire evacuation, the firefighters found many residents unable to escape on their own due to old age or immobility. The firefighters spent a lot of time and effort carrying the elderly to safety.
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In order to keep stock overnight, many stores were locked up with iron gates after closing for security reasons. And it was the stock and the gates that accelerated the spread of fire in the market. Firefighters had to blow them open one by one to put out the fire.
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SINGAPORE PROPERTY WEEKLY Issue 103 The passers-by asked my mother whether it was the home for the aged that caught fire. Even she herself was unaware that there were so many elderly folks staying in the blocks. She could imagine that many seldom leave home on normal days. Like my mother, the elderly prefer to stay in an old district where they are close to old friends and everything they are familiar with. Even when they move to new homes, they still choose to stay in the same area. With an aging population, the concentration of old folks in mature districts can only increase over time. In Singapore, according to the Census of Population 2010, the top five planning areas with the highest number of elderly are Bedok, Bukit Merah, Ang Mo Kio, Hougang and Toa Payoh. HDBs building of 30-year-lease studio apartments are meant to cater to the housing needs of the aging population. Although singles can also apply for the studios, it is obvious that they are more popular among the seniors, especially when the interior of the studios is designed for the needs of the elderly. With the concentration of old people in studio apartments and mature estates, is there anything that can be done in planning to avoid the damage caused by fire or an act of God? By Property Soul, a successful property investor and enthusiast who shares her experiences and knowledge on her blog.

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SINGAPORE PROPERTY WEEKLY Issue 103

Property Renting Tip #7: Lease Period

It is common to have a one to two year lease period in Singapore, typically two years if it is a comfortable duration for both the Landlord

another one year at a re-negotiated rate (this elaboration can be included in the Option to Renew clause in the TA). By Eileen Tan and Ui Wei Teck, property investors and authors of Enjoying Mid-Life Without Crisis. This tip and dozens more are from their book.

and Tenant.In the event you want to have a


longer lease term but are not sure if you want to keep the same rental rate, you can have a 1+1 lease term in the Tenancy Agreement (TA). The +1 lease term gives the Tenant the first right to extend the lease of the property for

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SINGAPORE PROPERTY WEEKLY Issue 103

Singapore Property This Week

Residential
Freehold Yi Mei Garden at Tampines Road site up in collective sale market

99-year The Siena at Farrer Road opens for preview The SOHO project consisting of 54 one to three-bedroom apartments units with sizes ranging from 538 to 980 sq ft has been opened for preview at prices starting from $1.28 million or $2,380 psf for a 538 sq ft unit. Features include high ceilings, unique layout and space planning concepts. It is located near schools such as the Nanyang Primary School and St Margaret's Secondary School as well as the Botanic Gardens and MRT station.

The 78,030.38 sq ft site located at Tampines Road near the Kovan MRT and Heartland Mall is asking for $132-135 million or $805810 psf ppr including a$4 million development charge. It has a 2.1 GPR and can be potentially redeveloped into two towers with a total GFA of 163,863.79 sq ft. The tender closes on June 6 at 4pm.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 103 Meanwhile, seven out of the 30 released units at the 103-year leasehold 104-unit Ferra has been sold at prices starting from $3,160 psf or $2.3 million for a 732 sq ft unit.There are 32 units of 732 sq ft in size, 70 units of 883893 sq ft in size and two penthouses of 2,013 sq ft. The most popular are units in the range of 883-893 sq ft. Buyers can customise their unit layout or choose from a selection of predesigned layouts. (Source: Business Times) 99-year leasehold Woodlands EC site draws $216m top bid The 99-year leasehold EC sitebetween Woodlands Avenue 5 and 6 which can potentially yield 590 homes attracted a total of seven bids, with the top bid of $216 million or $341.21 psf ppr from Qingjian Realty (South Pacific) Group. The high bid price and number of bidders in this tender is despite the
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cooling measures in January, indicating developers confidence in demand for ECs in the region as well as developers demand for lands to replenish or stock up their land bank. The pent-up demand from the lack of EC sites released since December 2012 as well as the location of the site (being in Woodlands which was set to be developed into a commercial hub) might also have been contributing factors. In addition, the amenities in the in the region will be enhanced by the upcoming Thomson MRT line and the planned rapid transit system between Woodlands and Johor Baruv. A breakeven price of $650- $700 psf ppr is expected. (Source: Business Times) Fall in home resale volume and prices in April There were 572 non-landed homes resale deals transacted in April, down from
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SINGAPORE PROPERTY WEEKLY Issue 103 614 deals in March 2013 and down by 53.9% from the 1,240 deals in April 2012. This is attributed to the difference in buyer and seller price expectation. The fall in sales volume is accompanied by a 0.4% fall in price from March. Specifically, prices for resale homes in the CCR and the RCR fell by 1.9% to $1,772 psf and $1,267 psf respectively while the prices of home in the OCR saw a 1.0% increase to $1,022 psf in April. The rise is largely due to the pent-up demand from firsttime buyers, the low unemployment rates and interest rates. Nevertheless, this is expected to change when the demand is being met, coupled with the cooling measures, increased supply and the buyer preference for new homes over resales. Meanwhile, the overall rents fell by 1.0% in April, with rents in the RCR and OCR falling by 4.4% and 0.9% respectively and rents in the CCR increasing by 2.1% to $4.79 psf.
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This lead to a fall in rental yields in both RCR and OCR to 3.73% and 3.68% respectively and an increase in rental yields in CCR to 3.25%. Looking ahead, rents are expected to fall further given the increase in supply. The COV for resale HDB flats also fell by $1,000 to $30,000, though the median resale prices continued rising by 1.1% to $465,000. There were 1,271 flats resold in April, compared to 1,355 in April. (Source: Business Times) Commercial 180-suite Pan Pacific Serviced Suites Beach Road launched The new property near Arab Street would cater to the corporate sector, offering a team of 24/7 personal assistants, complimentary Wifi access, a meeting room facility and shuttle services to the various business
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SINGAPORE PROPERTY WEEKLY Issue 103 districts. Sizes of the serviced apartments range from 45 sq m for a one-bedroom unit to 66 sq m for a two-bedroom suite. Unlike most other serviced apartments, the Pan Pacific Serviced Suites Beach Road offers both single-night stays (from $300/night) and extended stays (from $8,000/month). (Source: Business Times) will open on May 18. Combined, they will offer nearly 800 rooms. The 50,000-sq-ft Zhongshan Mall will feature tenants such as FairPrice Finest, Guardian, BreadTalk and Crystal Jade Steamboat Restaurant. (Source: Business Times) 30-year Loyang Way industrial site attracts $61.6m top bid

Zhongshan Park integrated development completed


The 190,000 sq ft hotel-cum-commercial development in Zhongshan Park off Balestier area has been completed. The development consists of a shopping mall, a commercial tower and two independently owned hotels the three-star Days Hotel Singapore which opened last December and thefour-star Ramada Singapore at Zhongshan Park which

The222,092 sq ft site with a 2.5 GPR and zoned for B2 development attracted a total of six bids and a top bid of $61.6 million or $111 psf ppr from OKH Global. Despite its irregular L-shape, it is attractive to bidders since it can be strata-subdivided when few other sites in the area can be, and also since there is a limited supply of flatted factory in the region.
(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 103

Non-Landed Residential Resale Property Transactions for the Week of Apr 24 Apr 30
Postal District 1 2 4 4 4 4 5 5 5 5 9 9 9 9 10 10 10 10 10 10 10 10 10 10 10 Area (sqft) 1,119 786 1,539 1,076 893 1,270 1,055 904 947 2,293 775 1,324 2,077 936 2,659 1,044 1,572 635 1,163 1,367 775 1,227 1,367 3,358 1,550 Transacted Price ($) 910,000 1,420,000 3,200,000 1,920,000 1,350,000 1,900,000 1,320,000 1,100,000 947,000 2,030,000 1,690,000 2,840,000 4,257,850 1,808,000 5,902,980 2,080,000 3,020,000 1,210,000 1,930,000 2,240,000 1,270,000 1,900,000 2,109,425 4,900,000 2,180,000 Price Tenure ($ psf) 813 99 1,807 99 2,079 99 1,784 99 1,511 FH 1,496 99 1,251 99 1,217 99 1,000 99 885 99 2,181 FH 2,145 FH 2,050 FH 1,931 FH 2,220 FH 1,992 FH 1,922 FH 1,905 FH 1,660 FH 1,639 FH 1,639 FH 1,548 FH 1,543 99 1,459 FH 1,406 999 Postal District 10 10 11 11 11 11 11 11 11 12 12 12 12 13 14 14 15 15 15 15 15 15 16 16 17 Area (sqft) 1,658 3,229 2,713 366 926 958 1,012 1,421 1,216 2,443 2,282 1,001 1,432 1,055 1,184 1,227 732 592 1,819 1,345 1,227 1,647 1,238 1,216 1,528 Transacted Price ($) 2,200,000 4,250,000 5,150,000 673,000 1,670,000 1,480,000 1,530,000 1,950,000 1,580,000 3,050,000 2,488,000 1,050,000 1,480,000 1,395,000 1,200,000 820,000 1,120,000 880,000 2,700,000 1,750,000 1,275,000 1,400,000 1,450,000 1,280,000 960,000 Price Tenure ($ psf) 1,327 FH 1,316 99 1,899 FH 1,839 FH 1,804 FH 1,545 99 1,512 FH 1,372 FH 1,299 FH 1,248 FH 1,090 FH 1,049 FH 1,034 FH 1,322 FH 1,013 FH 668 FH 1,530 99 1,486 FH 1,484 FH 1,301 FH 1,039 FH 850 99 1,171 99 1,052 99 628 99

Project Name PEOPLE'S PARK COMPLEX ICON REFLECTIONS AT KEPPEL BAY REFLECTIONS AT KEPPEL BAY HARBOURLIGHTS CARIBBEAN AT KEPPEL BAY VARSITY PARK CONDOMINIUM BLUE HORIZON VISTA PARK VARSITY PARK CONDOMINIUM THE OXLEY THE COSMOPOLITAN RIVERGATE THE INSPIRA LATITUDE NATHAN PLACE SUI GENERIS SIGNATURE AT LEWIS GALLOP GABLES THE TESSARINA SPANISH VILLAGE CASA JERVOIS THE MERASAGA BALMORAL POINT VALLEY PARK

Project Name HOLLAND HILL PARK ORCHARD BEL AIR SKY@ELEVEN SUITES @ SHREWSBURY NEWTON 18 AMARYLLIS VILLE THE SPRINGS SHELFORD 23 MANDALE HEIGHTS SCENIC HEIGHTS NADIA MANSIONS BALESTIER PLAZA KIM KEAT HOUSE PLATINUM EDGE CASA SARINA WING FONG MANSIONS WATER PLACE MELROSE VILLE PARKWAY MANSION 11 AMBER ROAD CHELSEA LODGE LAGOON VIEW COSTA DEL SOL EAST MEADOWS LOYANG VALLEY

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SINGAPORE PROPERTY WEEKLY Issue 103


Postal District 18 19 19 19 19 20 20 21 21 21 21 21 21 22 22 22 23 23 23 23 25 27 28 Project Name SAVANNAH CONDOPARK 8 EDEN GROVE THE QUARTZ TREASURE MANSIONS RIO VISTA GOLDENHILL PARK CONDOMINIUM FAR HORIZON GARDENS THE CASCADIA MAPLEWOODS GRAND REGENCY SPRINGDALE CONDOMINIUM PARC PALAIS HIGHGATE THE CENTRIS CASPIAN CASPIAN PARK NATURA MAYSPRINGS CENTURY MANSIONS REGENT HEIGHTS CASABLANCA ORCHID PARK CONDOMINIUM GRANDE VISTA Area (sqft) 1,227 990 1,066 990 1,378 1,561 1,152 1,216 1,787 1,119 1,119 1,550 1,378 936 1,195 1,001 1,023 915 915 1,023 1,119 872 1,647 Transacted Price ($) 1,200,000 1,170,000 1,220,000 1,050,000 1,280,000 2,200,000 898,000 2,133,000 2,670,000 1,378,888 1,268,888 1,680,000 1,360,000 1,050,000 1,325,000 1,100,000 1,330,000 870,000 800,000 890,000 1,030,000 770,000 1,520,000 Price Tenure ($ psf) 978 99 1,181 FH 1,145 99 1,060 FH 929 99 1,410 FH 780 99 1,754 FH 1,494 FH 1,232 FH 1,133 999 1,084 FH 987 FH 1,121 99 1,109 99 1,099 99 1,301 FH 951 99 874 FH 870 99 920 99 883 99 923 999

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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