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Issue 105

Copyright 2011-2013 www.Propwise.sg. All Rights Reserved.

CONTENTS
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All Property Developers are Liars? Property Renting Tip #10: Rental Income from Property

FROM THE

EDITOR

Welcome to the 105th edition of the Singapore Property Weekly.

Hope you like it!


Mr. Propwise

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Singapore Property News This Week


Resale Property Transactions (May 8 May 13)

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SINGAPORE PROPERTY WEEKLY Issue 105

All Property Developers are Liars?


By Property Soul (guest contributor)
I was reading Seth Godins book All Marketers are Liars. Although I am a veteran marketer myself, being a liar has never crossed my mind. In his book, Godin talks about the power of telling authentic stories in a low-trust world. I know not everyone who read my posts agree with what I say. But Im not a property developer, real estate marketer, property agent, conveyancing lawyer or mortgage banker. Im not selling you a get-rich-quick book, or a property investment seminar. Thats why I am free to say what I believe, without having to look at the bottom line or worrying too much about being liked.
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SINGAPORE PROPERTY WEEKLY Issue 105 Have you been brainwashed conventional property wisdom? by They may not be the truth. But they make up the average Singaporeans view on properties Marketers lie Godin said in All Marketers are Liars, Identify a population with a certain worldview, frame your story in terms of that worldview and you win. A worldview is not what you are. Its what you believe. Its your biases. A worldview is not forever. Its what the consumer believes right now. Thats why you see property ads on TV or in the local papers with images completely irrelevant to the development: - A young family running at the beach - A sexy lady swimming or resting by the pool

Of course, I understand what kind of messages can please the largest audience, drive the most traffic and sign up the most followers. You know the conventional wisdoms that you always hear from people such as: - Buy HDB first, then upgrade to a condo, before settling in a landed home - Freehold is better than leasehold - Anytime is a good time to buy - Properties prices will always go up in the long-term - The market cannot collapse because of demand from foreigners - Mickey mouse units are the trend of the future

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SINGAPORE PROPERTY WEEKLY Issue 105 - A group of yuppies sipping wine in a bar - Two well-dressed Caucasians overlooking the fantastic night view And because its a consumers fantasy, they are not obliged to tell just the boring facts, but are inclined to expand your imagination with an artists impression in an abstract wonderland. As Godin said: Successful marketers are just the providers of stories that consumers choose to believe. Property ads: then vs. now I would like to end this post with a comparison of property launch advertisements in the Singapore papers in 1985-6 versus 2012.

Fantasy vs. reality in property ads


Whereas the reality is: - The condo is most likely far from the beach, with a pool too small and frequented often by too many noisy kids. - Your unit most likely comes with a blocked view. Its size makes it unrealistic to fit in a bar counter.

- Expatriates are most likely not interested to move into an area inhabited mostly by locals.
But developers are selling you a dream, not a commodity.

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SINGAPORE PROPERTY WEEKLY Issue 105 Take a look and let me know what you think.

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SINGAPORE PROPERTY WEEKLY Issue 105

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 105

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SINGAPORE PROPERTY WEEKLY Issue 105

Property Renting Tip #10: Rental Income from Property


(Reference: www.iras.gov.sg) Rental income is taxable in Singapore.However, there are expenses that you can deduct from your rental income: Interest on mortgage loan Property tax Fire insurance Commission paid on getting a subsequent Tenant Cost of renewing a lease or getting a new Tenant and General repairs and monthly maintenance charges paid to the Management Committee Below are expenses that cannot be deducted from your rental income: Any expenses tenancy period incurred outside the

Mortgage or bank loan repayment i.e. the principal repayment Agents commission, advertising, legal costs for getting the firstTenant Depreciation of furniture and fittings and

Cost of renovation, additions alterations to the property

and

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.
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SINGAPORE PROPERTY WEEKLY Issue 105

Singapore Property This Week


Residential
Private home deals foreigners share see a slip in that there will be more Singaporean buyers for 2Q and 3Q13. Knight Frank noted that China buyers retained their no.1 position in their share of the foreigner buyer pie (from 25% in 4Q12 to 29.6% in 1Q13). 2 housing projects ready for preview Two north-eastern properties in Singapore are set for preview this Vesak Day weekend. One is a condominium project by CDL at Jewel @ Buangkok, within walking distance to Buangkok MRT station. The development has 99-year leasehold 15-17-storey towers totaling 616 units with one bedroom (463 sq ft) to five bedrooms (1,701 sq ft), and plush penthouses (2,067-2,540 sq ft). CDL plans to market the development at an average
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Foreigners share in private home transactions slipped to 20.8% in April, following the recovery to 26.7% in March from Febs 23.3% and Jans 28%. Conversely, Singaporeans share saw the highest monthly share in a year an increase from 72.5% in March to 78.3% in Apr. On a quarterly basis, the total number of private home caveats lodged fell 34.4% (8,725 in 4Q12 to 5,721 in 1Q13). Caveats by Singaporean buyers declined 36.6% quarter on quarter to 4,153 in Q1 while those by foreigners only fell by 25.3%. It is predicted
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SINGAPORE PROPERTY WEEKLY Issue 105 of $1,250 psf. The other is a Charlton 27 a clutch of 27 landed homes (16 corner units and 11 intermediate terraces) near Kovan MRT station, developed by Surindipity Pte Ltd. The smallest unit takes up 3,900 sq ft priced at $800 psf or $3.3 mil. The largest unit, 6,000 sq ft will cost $600 sqf or $3.9 mil. Each unit consists of at least 5 bedrooms, apart from a lounge/study, a private lift and direct pool access. Both developments, with their strategic locations, are expected to attract strong attention from buyers. Measures discourage multiple properties ownership of 1Q13, 65% of the 16,208 Singaporeans and PRs granted private home mortgages did not have any outstanding home loans. On the other hand, the proportion of second and third loan cases of the same group has been dropping. Among the 1,392 non-PR foreigners granted private housing loans, 79.6% are first loan cases. Also, the 11,423 private home mortgages to Singaporeans and PRs in 1Q13 translated to a higher 16,208 individual applicants due to the possibility of married couples to be joint applicants for a single loan, according to CBS.

Theres been a rise in the proportion of private housing loan applicants without any outstanding mortgages in 1Q13, according to Credit Bureau (Singapore), thanks to the January measures that discourage multiple property ownership. CBS data shows that in
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SINGAPORE PROPERTY WEEKLY Issue 105

Non-Landed Residential Resale Property Transactions for the Week of May 8 May 13
Postal District 3 4 5 5 8 9 9 9 9 9 9 10 10 11 12 12 12 12 12 14 14 14 15 15 15 Area Transacted Price Tenure (sqft) Price ($) ($ psf) 1,033 1,520,000 1,471 99 2,605 5,200,000 1,996 99 1,195 1,470,000 1,230 99 990 1,200,000 1,212 FH 732 1,010,000 1,380 FH 1,679 3,700,000 2,203 FH 1,399 2,950,000 2,108 FH 926 1,800,000 1,944 99 5,425 10,500,000 1,935 FH 980 1,710,000 1,746 999 2,605 1,735,000 666 99 700 1,230,000 1,758 FH 3,229 4,500,000 1,394 FH 1,507 2,433,000 1,615 99 1,916 3,600,000 1,879 FH 1,916 3,600,000 1,879 FH 980 1,600,000 1,633 FH 388 618,000 1,595 FH 1,281 1,400,000 1,093 FH 1,615 1,638,000 1,014 FH 1,615 1,600,000 991 FH 1,216 950,000 781 FH 484 750,000 1,548 FH 1,152 1,625,000 1,411 FH 926 1,280,000 1,383 FH

Project Name RIVER PLACE REFLECTIONS AT KEPPEL BAY HERITAGE VIEW PASIR VIEW PARK D'CAMBRIDGE THE COSMOPOLITAN THE COSMOPOLITAN LEONIE STUDIO BELLE VUE RESIDENCES WATERFORD RESIDENCE PEACE CENTRE/MANSIONS THE MONTANA BEAVERTON COURT ROCHELLE AT NEWTON SHAN COURT SHAN COURT THE RIVERINE BY THE PARK SUITES @ TOPAZ EURO-ASIA APARTMENTS CITY PLAZA CITY PLAZA GUILIN COURT CUBIK THE MAKENA THE MAKENA

Postal District 15 15 15 15 16 16 17 19 19 20 21 23 23 23 26

Project Name COTE D'AZUR EBONY MANSIONS DE CASALLE LAGOON VIEW PARBURY HILL CONDOMINIUM CHANGI COURT BLUWATERS 2 KOVAN RESIDENCES SUNGLADE THE WINDSOR SPRINGDALE CONDOMINIUM THE JADE GUILIN VIEW THE LINEAR CASTLE GREEN

Area Transacted Price Tenure (sqft) Price ($) ($ psf) 1,313 1,605,000 1,222 99 1,302 1,320,000 1,013 FH 1,184 1,190,000 1,005 FH 1,647 1,320,000 802 99 2,196 2,650,000 1,207 FH 1,389 1,450,000 1,044 FH 872 872,000 1,000 946 947 1,400,000 1,478 99 1,238 1,438,000 1,162 99 1,647 1,700,000 1,032 FH 926 1,054,000 1,139 999 1,087 1,200,000 1,104 99 840 880,000 1,048 99 1,249 1,192,000 955 999 947 905,000 955 99

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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