Issue 133

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

CONTENTS
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Understanding the Johor Property Market
Singapore Property News This Week Resale Property Transactions (November 20 November 26)

FROM THE

EDITOR

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SINGAPORE PROPERTY WEEKLY Issue 133

Understanding the Johor Property Market

By Getty Goh (guest contributor) Since the Malaysia Budget 2014 was announced in October 2013, many investors have been adopting a wait-and-see approach in response to the numerous property-cooling measures. However, there are also some who are still keen to enter the Johor and Iskandar Malaysia property markets as they view the uncertain times as an opportunity to find bargains.

To help these investors better understand the Johor market, my company recently developed some online real estate research tools. In this article, I will highlight some of our findings, derived from our research tools,
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SINGAPORE PROPERTY WEEKLY Issue 133 that prospective buyers should look out for. Findings 1: Where hotspots in Johor? are the property town/city. The bigger the circle, the more transactions that took place in that specific town/city. Figure 1: Johor Landed Detached Houses Heat Map (2012Q1 to 2013Q1)

The state of Johor has different towns and cities. Apart from Johor Bahru, some of the other towns that Johor has include Batu Pahat, Kluang, Kota Tinggi, Mersing, Muar, Pontian, Seggamat, etc. If you are thinking of investing in Johor, have you ever wondered, where are some of the property hotspots within Johor?
To answer that question, we plotted out the transaction data for bungalows (see Figure 1) as well as condominiums (see Figure 2) on the Johor state map to see where the hotspots were. From the figures, each circle represents transaction volume for the respective
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Source: www.CoAssets.com/Research/

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SINGAPORE PROPERTY WEEKLY Issue 133 Figure 2: Johor Condominium Heat Map (2012Q1 to 2013Q1) transactional activity is distributed. Thus, we can see that apart from Johor Bahru, places like Segamat, Kluang, etc. also had many bungalow transactions. On the other hand, for the condominium market, we can see that Johor Bahru had the most transactions, followed by Batu Pahat and Muar. Hence, unlike bungalow investors, those who wish to invest in condominiums may want to focus on Johor Bahru, as the other towns have shown to have comparatively fewer condominium transactions. Findings 2: Which property type has the most transaction volume in Johor Barhu? At present, the Malaysian government does not reveal transaction activities for Iskandar Malaysia. Hence, to get an idea on what types of properties would potentially do well in Iskandar Malaysia, a detailed analysis of
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Source: www.CoAssets.com/Research/ Comparing Figure 1 and 2, we can see that property type has an impact on how
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SINGAPORE PROPERTY WEEKLY Issue 133 transactions in Johor Bahru is done (see Figure 3). Figure 3: Breakdown of transactions for Johor Bahru (2012Q1 to 2013Q1) Based on Figure 2, it was found that although Johor Barhu was a hotspot for condominiums, the property type that saw the highest transaction volume was terraced houses (see Figure 3). In comparison, condominiums had the third highest transaction volume (about 12.8%) while detached houses (i.e. bungalows) made up about 3.0% of all transactions that took place in Johor Bahru from 2012Q1 to 2013Q1. Despite the numerous condominium launches that took place in Johor Bahru (including Iskandar Malaysia) in the last few months, this chart tells us that terraced houses is very much in demand (presumably among the locals). Therefore, some investors may conclude that it would be more prudent to invest in terraced houses instead of condominium units.

Source: www.CoAssets.com/Research/
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SINGAPORE PROPERTY WEEKLY Issue 133 Conclusion The simple analyses above are by no means conclusive and there are many other factors investors will have to consider before making a purchase. Nonetheless, the key takeaway I would like you to have is that the overseas property markets are often not what they seem and doing some research can significantly increase your understanding of a new investment destination. It is my hope that after reading this article, those who are still keen to invest in Iskandar will have a better idea of what to look out for. As the saying goes, information is power. Who knows, these insights could be just what you need to help you find your next big deal! Getty Goh has a Masters in Real Estate and a Bachelors in Building from the National University of Singapore. He is a director at Ascendant Assets and the Co-founder of CoAssets.com. South East Asias first crowd funding and purchase website. For those who wish to know more, please email him at Admin@CoAssets.com.

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SINGAPORE PROPERTY WEEKLY Issue 133

Singapore Property This Week

Residential
Reserve-list plot in Geylang draws interest Two 99-year private housing sites in Geylang will be launched by the government this December. One of them, a plot along Geylang East Avenue 1 next to Aljunied MRT Station and on the governments reserve list, is expected to draw more interest from developers. The successful applicant has agreed to bid at least $95 million or $505.28 psf ppr at tender for the site. The site is 0.62 hectare in size and is expected to have 215 units. It is reported that the bite-sized investment quantum has made it more attractive to developers, compared with a
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larger site in the vicinity that will also be launched for tender by the government later this month through the confirmed list. This larger site, which fronts Sims Drive, Aljunied Road and the Pan Island Expressway, has an area of 2.4 hectares and will generate an estimated 900 private homes. (Source: Business Times) HDB construction to taper off in 2014 According to Minister for National Development Khaw Boon Wan, the massive construction of HDB flats for the past three years will taper off in a measured way to allow the market to gradually adjust from 2014, as balance is restored between
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SINGAPORE PROPERTY WEEKLY Issue 133 demand and supply in the market. This announcement follows the latest launch of 8,952 Build-to-Order (BTO) and Sale of Balance Flats (SBF) units last month drawing to a close, which is the largest single launch in the history of the HDB compared with the previous mark set in September 2011 of 8,262 units. (Source: Business Times) Tiong Seng secures $204.5m HDB deal Construction and property development group Tiong Seng Holdings has secured a $204.5 million contract win from the Housing and Development Board (HDB) for a public housing project at Woodlands Crescent and Woodlands Rise, bringing its order book currently to $1.28 billion. The company will construct 11 blocks of 14 or 16-storey residential buildings, two blocks of multiBack to Contents

storey carpark, commercial and community facilities, a precinct pavilion, and an ESS or electrical substation. The deal is through Tiong Seng Holdings subsidiary Tiong Seng Contractors. (Source: Business Times) Governments cooling measures show results

The governments cooling measures to the residential property market are reported to show significant impacts. The Monetary Authority of Singapore Financial Stability Review 2013 said that such measures have dampened momentum in the market. Transaction volumes have decreased, new home loan sales have contracted, and loanto-value (LTV) ratios have improved. However, the government is vigilant because price levels still remain high.
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SINGAPORE PROPERTY WEEKLY Issue 133 For example, despite slower sales, tender prices by developers are high - two adjacent plots at Upper Serangoon View got eight bids each in its tender last month, with foreign developers continuing to outbid local players. (Source: Business Times) MND to impose cap on HDB flats for foreigners subletting for additional income, especially the elderly. (Source: Business Times) Median COV for resale flats lowest in 4 years According to flash estimates from the Singapore Real Estate Exchange (SRX), median cash-over-valuations (COVs) for resale HDB flats have fallen to their lowest in more than four years, showing that the market for HDB resale flats continued to weaken. Median COVs decreased by 30.1 percent to $8,000 in November, compared with $11,444 the month before the first time it fell below $10,000 since July 2009. COVs have also been reported to consistently falling throughout 2013 from a peak of $35,000 in January. (Source: Business Times)
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The Ministry of National Development (MND) is reported to be imposing a cap on the number of flats that can be sublet to foreigners in each Housing and Development Board block (excluding Malaysians, due to their close cultural and historical similarities), but the appropriate cap has yet to be decided. According to Minister of National Development Khaw Boon Wan in his blog post titled Preventing Foreigner Enclaves, he said that he was mindful of the need to balance the impact on people relying on
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SINGAPORE PROPERTY WEEKLY Issue 133 Allgreen launches SkySuites@Anson Allgreen Properties has launched sales for its 99-year leasehold 72-storey SkySuites@Anson project in Tanjong Pagar, with prices starting from $968,000. The development, expected to be completed in 2015, will have 360 one to three-bedroom units of between 365 sq ft and 1,140 sq ft. Compared with asking prices of $1.3-1.8 million for new one-room homes in Tanjong Pagar and an average of between $1.2 million and $1.3 million for a similar resale unit in the area, the $968,000 price tag for a one-bedroom apartment at SkySuites@Anson is considered attractive to buyers. (Source: Business Times) Sales for Kaleido terrace houses starts on Jan 4 Sales for Kaleido, a 14-unit cluster of freehold terrace houses along Lorong K Telok Kurau, will start on Jan 4, with an average price of around $1,000 psf. Each unit has three storeys, two basement carpark lots, five bedrooms, living and dining rooms, and a lift. The units have high ceilings and rectangular layouts, with their sizes between 3,100 sq ft to 3,498 sq ft. Prices start at $3.3 million in absolute terms. The marketer for the project, Knight Frank opened the showflat for a private preview this weekend. The project is by Amerald Land, a wholly owned subsidiary of Precise Development. Amerald Land is also behind the 16-unit Shiro freehold

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SINGAPORE PROPERTY WEEKLY Issue 133 development in Lorong H Telok Kurau. (Source: Business Times) Commercial Sungei Kadut property to be sold for $8.65m Listed outdoor furnishings specialist Sitra Holdings has obtained JTC approval to sell its Sungei Kadut property to World Furnishing Hub Pte Ltd (WFHPL) for $8.65 million. A sale and purchase agreement has been entered on Dec 2. WFHPL is a special-purpose vehicle jointly owned by tile specialist Hafary Holdings, two of its substantial shareholders and Sitra itself. WFHPL plans to redevelop the site into a property with a market value of about $55 million, and a gross floor area of about 300,000 sq ft, of which 250,000 sq ft for industrial use and the balance for commercial purposes. (Source: Business Times) New surveys shows conflicting views towards Singapore property market According to the latest real estate forecast jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP (PwC), Singapore has fallen four spots to seventh place in terms of investment appeal, and dropping six spots to ninth position in terms of the development prospects front. This is the first time Singapore has fallen out of the top five spots since the report started in 2007. However, the Emerging Trends in Real Estate Asia Pacific 2014, a property forecast survey of over 250 real estate professionals, showed that Singapore is still a favoured market in Asia of considerable investment and development appeal,
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SINGAPORE PROPERTY WEEKLY Issue 133 due to its vibrant economic growth and strong emphasis on community livability. According to PwC Singapore, investing in Singapore real estate is more expensive now due to expected higher interest rates, compressed cap rates and tighter regulations, yet there may still be room for better return with low vacancy rates and more potential for higher rentals. such amendments taking effect on Nov 5, JTC aims to safeguard Singapore's scarce industrial land resources for optimal use by genuine industrialists and reduce property speculation. JTC also aims to ensure the lessees allocated for its limited industrial land in the lease contract based on their proposed business plans remain committed to the land for a sustained and reasonable period of time.

(Source: Business Times)

JTC amends industrial property rules JTC has now required industrialists and thirdparty facility providers such as property funds/developers who own industrial properties on JTC-leased sites to hold these properties for a longer period before they may sell them. In addition, JTC has extended the minimum occupation period for anchor tenants of third-party facility providers. With
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(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 133

Non-Landed Residential Resale Property Transactions for the Week of Nov 20 Nov 26
Postal District 2 4 5 5 5 5 9 9 9 9 10 10 10 10 10 10 10 11 11 11 12 14 15 15 Area (sqft) 850 1,356 1,335 1,206 1,313 2,271 807 721 549 398 1,744 614 1,141 1,206 1,442 1,367 1,259 936 1,464 1,658 1,647 463 1,453 1,141 Transacted Price ($) 800,000 2,320,000 1,820,000 1,400,000 1,350,000 2,150,000 2,345,000 1,600,000 1,090,000 740,000 3,700,000 1,297,010 2,149,300 2,208,840 1,975,000 1,785,000 1,585,000 1,830,000 2,650,000 2,000,000 2,058,000 700,000 2,000,000 1,350,000 Price Tenure ($ psf) 941 99 1,711 99 1,364 99 1,161 99 1,028 FH 947 99 2,905 FH 2,219 FH 1,986 FH 1,858 999 2,122 FH 2,114 FH 1,884 FH 1,832 FH 1,369 999 1,306 99 1,259 99 1,954 99 1,810 FH 1,207 999 1,250 FH 1,512 FH 1,376 FH 1,183 99

Project Name SPOTTISWOODE PARK CARIBBEAN AT KEPPEL BAY ONE-NORTH RESIDENCES HERITAGE VIEW KENTVIEW PARK VARSITY PARK CONDOMINIUM HILLTOPS ILLUMINAIRE ON DEVONSHIRE MOUNT SOPHIA SUITES ROBERTSON EDGE THE GRANGE THE MONTANA THE MONTANA THE MONTANA GLENTREES DUCHESS CREST TANGLIN REGENCY SOLEIL @ SINARAN PARK INFINIA AT WEE NAM LA SUISSE TRELLIS TOWERS CASA AERATA HAIG COURT COTE D'AZUR

Postal District 15 16 16 17 17 18 18 18 18 19 20 21 21 22 23 23 23 23 26 27 27

Project Name LAGUNA PARK SUNHAVEN EASTWOOD GREEN AVILA GARDENS WATERCREST NV RESIDENCES RIS GRANDEUR MELVILLE PARK ELIAS GREEN REGENTVILLE GRANDEUR 8 THE BLOSSOMVALE PINE GROVE LAKEPOINT CONDOMINIUM HILLVIEW REGENCY MERALODGE HILLVIEW REGENCY REGENT HEIGHTS THE CALROSE YISHUN EMERALD YISHUN EMERALD

Area (sqft) 1,453 1,259 1,163 1,281 1,302 904 1,356 990 1,518 1,152 1,410 1,572 1,755 1,884 1,195 1,819 1,130 1,173 1,475 958 958

Transacted Price ($) 1,238,888 1,400,000 1,058,500 1,200,000 1,023,888 924,777 1,320,000 820,000 900,000 910,000 1,560,000 1,825,000 1,588,000 1,188,000 1,155,000 1,728,050 1,040,000 1,000,000 1,880,000 830,000 819,000

Price Tenure ($ psf) 853 99 1,112 FH 911 99 937 FH 786 999 1,023 99 973 FH 828 99 593 99 790 99 1,106 99 1,161 999 905 99 631 99 967 99 950 FH 920 99 852 99 1,275 FH 866 99 855 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. Page | 13

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