In this issue:
- 5 Tips for Dealing with Repairs in Rental Properties
- Singapore Property News This Week
- Resale Property Transactions (May 7 – May 12)
In this issue:
- 5 Tips for Dealing with Repairs in Rental Properties
- Singapore Property News This Week
- Resale Property Transactions (May 7 – May 12)
In this issue:
- 5 Tips for Dealing with Repairs in Rental Properties
- Singapore Property News This Week
- Resale Property Transactions (May 7 – May 12)
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Contribute Do you have articles and insights and articles that youd like to share with thousands of readers interested in the Singapore property market? Send them to us at info@propwise.sg, and if theyre good enough, well publish them here, on our blog and even on Yahoo! News. Advertise Want to get your brand, product, service or property listing out to thousands of Singapore property investors at a very reasonable cost? Head over to www.propwise.sg/advertise/ to find out more. CONTENTS p2 5 Tips for Dealing with Repairs in Rental Properties p6 Singapore Property News This Week p11 Resale Property Transactions (May 7 May 12 ) Welcome to the 157 th edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise FROM THE EDITOR SINGAPORE PROPERTY WEEKLY Issue 157 Page | 2 Back to Contents By Property Soul (guest contributor) I parked my car outside the house. A neighbor accidentally kissed it and damaged the license plate. It was replaced after a week so I drove it to an 8 a.m. meeting on Monday. Unfortunately, I was stuck on the highway for an hour. When I reached the carpark, the agitated vehicle was already complaining with strange noises. It waited till I was on the way back that it finally broke down on the left lane. Three nice guys volunteered to push the grumpy fellow to a side road. But somehow it ended up outside a Singapore Pools outlet. Patrons took the hint from the license number to buy lottery. I was totally amused by the embarrassment! 5 Tips for Dealing with Repairs in Rental Properties SINGAPORE PROPERTY WEEKLY Issue 157 Page | 3 Back to Contents Breakdowns are sometimes unavoidable in the lifespan of cars. Similarly, breakdowns are also commonplace in rental properties. What do you expect to fix? After a decade as a landlord, I have experienced countless incidents of different things not working in my tenanted units. From the date of TOP to a few years down the road, sooner or later things will start giving you problems. It can be the air-conditioners, water heaters, home appliances, fixtures and fittings, or water leaks and seepage. The developer may have installed something substandard. Or a fixture is reaching almost the end of its lifespan. Depending on your luck, defects can range from wear and tear, out of order, to damage beyond repair. If you look around, you may notice that your neighbor may be having the same fate. Talk to the neighbors or the management office. Most probably another unit has recently done similar repair work. They can share the contacts of any reliable contractor or repairman with you. Why don't things last? When you visit sales galleries of property new launches, the showflats usually showcase top-of-the-line branded fixtures and appliances. However, you will soon realize that looking good and working fine are two different things. The air-conditioners, water heaters and built- in home appliances may be from prestigious European or Japanese brands. But the developers are buying them in bulk from the manufacturers. Developers are looking for models that offer the biggest discount, not the latest models selling at a premium. SINGAPORE PROPERTY WEEKLY Issue 157 Page | 4 Back to Contents Anyway, with concealed air-conditioning, no one will check the model number of the air- conditioners. And it is rare that anyone will open the false ceiling of the bathrooms to check the models of water heaters. There is also considerable time lap between orders placed by developers, to building construction to project completion. By the time your tenant moves in, chances are those models installed at your unit have long been discontinued. How to make your life easier as a landlord? As a landlord, it is your responsibility to give your tenant a one months warranty for everything in your unit, except for damages done by the tenant. You are also responsible to keep all the home appliances you put in the unit in good and working condition. Nonetheless, there are a few tips that can make your life as a landlord much easier: 1. File the operation manuals of all the appliances and leave the file with your tenant for easy reference. Ask your tenant to check the operation manual for any machine malfunction before contacting you or your property agent. 2. Specify in the tenancy agreement that the tenant is responsible for any repairs not exceeding $100 or $150. This can save you the hassles of going there to do all the minor repairs, such as repairing a blown fuse or changing a light bulb. 3. For the convenience of arranging repair work, the tenancy agreement should state that your tenant has to allow you or your agents to enter the unit to inspect and do any repair at a time agreeable by both parties. SINGAPORE PROPERTY WEEKLY Issue 157 Page | 5 Back to Contents 4. Request your tenant to sign up for a maintenance contract that services the air- conditioners every quarter at the expense of the tenant. Before the handover of the unit back to you, your tenant has to service the air-conditioners again and provide a copy of the receipt that shows the last service date. 5. Avoid having any built-in home appliances such as a fridge, oven, washing machine, dryer, etc. at the unit. They only look neat and nice at the showflat. Once anything breaks down, it is difficult to repair. When it is beyond repair, you can hardly find the same model or model with exact measurements that can fit perfectly. And even if space allows, having a duplicate appliance next to the faulty one looks odd. By guest contributor Property Soul, a successful property investor, blogger, and author of the newly released No B.S. Guide to Property Investment. SINGAPORE PROPERTY WEEKLY Issue 157 Singapore Property This Week Page | 6 Back to Contents Residential 9,707 BTO flats to be released by HDB this year A total of 9,707 Build-To-Order (BTO) flats will be released by the Housing Development Board (HDB) this year. Out of the 6,454 flats that are put on sale this month, 3,383 are balance flats that are offered under the Sale of Balance Flat exercise, while the remaining flats are offered under the BTO scheme. Subsequently, another 3,071 BTO flats will be released in non-mature estates such as Bukit Batok and Woodlands. According to Nicholas Mak from SLP International, two-room flats are most popular among singles at the last BTO launch. Flats in Woodlands are expected to a hot favourite among buyers as the Woodlands Regional Centre is slated to be constructed as part of the draft Master Plan 2013. Eugene Lim from ERA Realty predicts that HDB prices will smoothen as demand for resale flats stabilises. (Source: Business Times) Sale of Coco Palms driven by price cuts Price cuts at the launch of Coco Palms helped to drive sales. According to the developer, 490 out of the 600 units available at its weekend launch have been sold for an average of $980 per square foot. SINGAPORE PROPERTY WEEKLY Issue 157 Page | 7 Back to Contents This was marked down from its initial pricing of $1,100 to $1,200 per square foot. Located at Pasir Ris Grove neighbourhood, the joint venture between City Development and Hong Realty (Pte) Ltd consisted of a total of 944 units which are between 463 square feet for a one-bedroom unit to 3,111 square feet for a penthouse. (Source: Business Times) Hougang HUDC: 15 th to be privatised Joining 14 other Housing and Urban Development Co (HUDC) estates, 336 flats at Hougang Avenue 2 have been privatised after obtaining support from at least 75 per cent of the owners. The Aljunied- Hougang- Punggol East Town Council will cease managing the estates common properties as it will be converted into a strata-titled property. While the estate is the 15 th estate to be privatised out of the 18 HUDC estates, Ong Kah Seng, RST Research Director, predicts that in the short run, developers may not be willing to offer a high price for the Hougang estate, due to the tight property market. (Source: Business Times) Buyer and investor interests in dual-key units remain undiluted According to global consultancy Knight Frank, demand in dual-key units will persist as buyer and investor interests remain undiluted. Alice Tan, director and head of consultancy and research at Knight Frank claimed that dual- key units are popular among developers as they are easier to market as compared to similar sized non-dual key units. Introduced in 1986 to promote multi-generational living, the dual-key unit comprises of 2 sub units with two separate keys and entrances. SINGAPORE PROPERTY WEEKLY Issue 157 Page | 8 Back to Contents In January and February this year, four projects were launched with dual-key units. This reflected developers continued interest in the dual-key model. Also, according to Ms Tan, dual-key units are popular among young families who want to stay near their parents. Nonetheless according to Ms Tan, demand for dual-key units has dipped from 100 per cent in 2011, to 84 per cent in 2012, and eventually to 58 per cent in 2013 following the implementation of the total debt servicing ratio framework. (Source: Business Times) Changes in ruling affected EC tender bids New rules for executive condominium (EC) buyers have affected bidding for EC land. A pair of 99-year sites at Yishun Street 51 has been tendered to different developersa first since the introduction of the system of simultaneous tender closings for adjacent residential sites in 2013. Parcel A at Yishun Street 51 has been sold to a City Developments Ltd-TID joint venture for $330.13 per square foot per plot ratio, while the neighbouring Parcel B is sold for $334.57 per square foot per plot ratio to JBE Holdings which is run by Patrick Lam from Hong Kong. Six bids were placed for Parcel A while Parcel B had two more bidders. According to Eugene Lim from ERA, Parcel B had more bidders as it was located nearer to Lower Seletar Reservoir. (Source: Business Times) Commercial MTI: Rental hikes due to inflation The Ministry of Trade and Industry (MTI) revealed in the latest Economic Survey of Singapore that the recent increase in rent SINGAPORE PROPERTY WEEKLY Issue 157 Page | 9 Back to Contents prices observed is in line with inflation over retailers lease period. Not only so, for 25 per cent of retailers who renewed their leases last year, there was no increase in rents; in fact, some even renewed their leases at a lower rent. MTI refuted speculations that retail rents have been pushed up by real estate investment trusts. However, property market watchers and small and medium sized enterprises that The Business Times spoke to were unconvinced. The median cumulative increase in rental in 2013 was 5.5 per cent and 75 per cent of the leases were renewed at rental increases of 14 per cent or less. On average, rents doubled or more than doubled in one per cent of the 2,100 leases renewed each year, according to MTI. (Source: Business Times) Irving Industrial Building on sale for $220m Irving Industrial Building, a 30-years-old, six- storey property near Tai Seng MRT is on sale for $220 million. Tender for the collective sale will close on July 15. The freehold building which comprises of 65,309 square foot, is selling for $1,164 per square foot of potential gross floor area (GFA) including an estimated $46 million development charge. It is expected to be redeveloped into 228,581 square feet maximum GFA, with a 3.5 maximum gross plot ratio that is zoned for Business 1- White use. Of this, 163,272 square feet GFA have been reserved for Business 1 use while the remaining 65,309 square feet is zoned for white uses. SINGAPORE PROPERTY WEEKLY Issue 157 Page | 10 Back to Contents Christina Sim from Cushman & Wakefield claimed that the substantial white component of the project justifies the steep asking price. (Source: Business Times) Two new hotels to be run by Accor Two hotels located along Stevens Road, which were developed by Oxley Holdings, will be run by Accor, thus bringing the hotel operators portfolio to nine hotels in Singapore. The hotels which are under the Novotel and Ibis brand names are expected to open by the end of 2016. The land which was acquired last March by Oxley is about 198,000 square feet and has a gross permissible floor area of about 318,000 square feet and a 103-year leasehold tenure. The new hotel, Novotel Singapore will have 254 rooms while the Ibis Singapore hotel will have 528 rooms. (Source: Business Times) Next generation industrial facility will be launched by J TC JTC will be launching next generation industrial buildings that are designed to integrate land-based facilities with high-rise, multi-user factories at Tampines North. Such buildings, which are targeted to appeal to small and medium sized enterprises that are involved in heavier manufacturing, will feature higher ceilings and wide corridors. The JTC Space @ Tampines North will be a nine- storey complex that comprises of five land- based units between 1,200 and 1,900 square meter; and 105 high rise units from 160 to 260 square meter. The industrial space is expected to be completed by 2016 and will begin construction by the end of this year. (Source: Business Times) SINGAPORE PROPERTY WEEKLY Issue 157 Page | 11 Back to Contents Non-Landed Residential Resale Property Transactions for the Week of May 7 May 12 Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure 3 THE ANCHORAGE 1,163 1,630,000 1,402 FH 4 THE PEARL @ MOUNT FABER 1,604 1,850,000 1,153 99 4 THE PEARL @ MOUNT FABER 1,389 1,540,000 1,109 99 5 VARSITY PARK CONDOMINIUM 1,033 1,280,000 1,239 99 5 THE MAYLEA 1,249 1,500,000 1,201 FH 5 DOVER PARKVIEW 1,249 1,500,000 1,201 99 8 URBAN LOFTS 420 620,000 1,477 FH 8 KENTISH GREEN 1,324 1,309,770 989 99 9 THE PATERSON 1,313 2,650,000 2,018 FH 9 CAIRNHILL RESIDENCES 904 1,820,000 2,013 FH 9 2 RVG 893 1,638,000 1,833 FH 9 THE PIER AT ROBERTSON 743 1,320,000 1,777 FH 9 MIRAGE TOWER 1,227 2,000,000 1,630 FH 9 WILKIE 80 635 1,030,000 1,622 FH 9 HIGH POINT 2,928 4,350,000 1,486 FH 13 THE ACACIAS 1,378 1,430,000 1,038 FH 14 LA BRISA 431 628,000 1,459 FH 14 SIMSVILLE 980 928,000 947 99 14 THE ALCOVE 1,378 1,100,000 798 99 15 PEBBLE BAY 1,894 2,280,000 1,204 99 16 CASA MERAH 1,238 1,430,000 1,155 99 16 CHANGI GREEN 1,216 1,120,000 921 FH 18 NV RESIDENCES 797 913,000 1,146 99 18 CHANGI RISE CONDOMINIUM 1,281 1,200,000 937 99 Postal District Project Name Area (sqft) Transacted Price ($) Price ($ psf) Tenure 18 MELVILLE PARK 936 840,000 897 99 18 THE TROPICA 1,238 1,008,000 814 99 19 KOVAN MELODY 1,292 1,480,000 1,146 99 19 THE QUARTZ 1,130 1,180,000 1,044 99 19 RIO VISTA 1,249 1,020,000 817 99 21 SYMPHONY HEIGHTS 969 1,030,000 1,063 FH 21 PARC PALAIS 1,528 1,530,000 1,001 FH 21 SOUTHAVEN II 1,539 1,500,000 974 999 22 THE CENTRIS 1,313 1,400,000 1,066 99 22 THE LAKESHORE 1,109 1,175,888 1,061 99 22 PARC VISTA 1,076 1,008,888 937 99 22 LAKEPOINT CONDOMINIUM 1,033 870,000 842 99 23 HAZEL PARK CONDOMINIUM 1,550 1,538,000 992 999 23 HILLVIEW PARK 1,238 1,104,300 892 FH 26 SEASONS PARK 1,292 1,200,000 929 99 28 SERENITY PARK 1,324 1,348,000 1,018 FH 28 GRANDE VISTA 1,367 1,190,000 871 999 28 SELETAR SPRINGS CONDOMINIUM 1,636 1,020,000 623 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.