Issue 209

Copyright 2011-2014 www.Propwise.sg. All Rights Reserved.

CONTENTS
p2

FROM THE

EDITOR

Why Developer Defects Are the Off-Plan

Property Buyers Worst Nightmare

Welcome to the 209th edition of the

Singapore Property Weekly.
Hope you like it!

p7

Singapore Property News This Week

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Resale Property Transactions

Mr. Propwise

(May 6 May 12 )

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SINGAPORE PROPERTY WEEKLY Issue 209

Why Developer Defects Are the Off-Plan Property

Buyers Worst Nightmare
By Property Soul (guest contributor)
Residents of Trivelis, an 888-unit Design,
Build and Sell Scheme (DBSS) project in
Clementi, are disappointed about the quality
of their new flats.
Owners who collected keys to their new units
since January complained about defective
stove knobs, rusty dish racks, stain-prone
kitchen countertops, poor quality laminate
flooring, shattered shower glass panels,
wardrobes without shelves, rusty lift doors
and flooding corridors.

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SINGAPORE PROPERTY WEEKLY Issue 209

This was not an individual case of one owner
suing the developer for discrepancies of the
actual unit from the sales brochure, but from
the feedback of 300 emails from the
residents.

What happened to Trivelis after TOP?

Ironically, delivery of high-quality products is
both the vision and the mission of the
developer EL Development, though the long
list of developer defects in Trivelis has proven
otherwise. The end products are also a big
contrast to choice fittings and quality floor
finishes as stated in the projects sales
brochure.
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EL Development finally agreed on May 14

that, besides arranging repairs and replacing
defective items, it would look into giving
residents a goodwill package (Straits Times,
May 15, 2015, DBSS flat owners at Trivelis
may get goodwill package following slew of
complaints)
Background of the developer

EL Development is not new in the local

property scene. The 9-year-old developer is
behind a few small residential projects in the
prime districts, including Stevens Suites, Parc
Centennial, Rhapsody on Mount Elizabeth
and Illuminaire on Devonshire.
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SINGAPORE PROPERTY WEEKLY Issue 209

For mass market condominiums, there are
Trivelis, Rosewood Suites, La Fiesta and
SkySuites
17.
Projects
of
industrial
development include Nordix, Eldix and Jurong
Food Hub.
With their higher price tags, flats built under
the DBSS scheme are supposed to be better
quality compared with Built-to Order or
normal HDB flats. For Trivelis, the most
expensive unit costs a hefty $800,000 which
is comparable to buying a unit in a mass
market condominium in the private market.
And it remains a mystery how the developer
managed to pass the inspections and checks
of the Housing Development Board to obtain
the TOP (Temporary Occupation Permit).
The bargaining power of off-plan property
buyers

If a buyer purchases a second hand property,

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to the seller, the buyer is the only purchase

party. In this case, the bargaining power of
the buyer is high. If the buyer finds any defect
during flat viewing, he/she can specify in the
offer to purchase to instruct the seller to
rectify the problem before handover. If the
seller fails to do so, the buyer has the right to
seek compensation.
On the other hand, if a buyer purchases offplan from a project under construction, to the
developer, the buyer is only one of a few
hundred purchase parties. In this case, the
bargaining power of the buyer is low. If the
buyer finds any defect after collecting the key,
he/she can report to the developer and it is at
the discretion of the latter how it wants to
rectify the problem.
Although there is a one-year liability period
after project TOP for developers to fix all the
defects, in the past there are cases where
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SINGAPORE PROPERTY WEEKLY Issue 209

the developer puts the blame on
contractors and conveniently pass
responsibility to them.

the
the

When developer defects become yours

For off-plan property buyers, they can only
pray that there is no major developer defect
when the developer hands over the new flats
to them.

If unfortunately, they turn out to be developer

defect victims like the Trivelis residents, they
can only cross their fingers that the developer
will take care of all the rectifying work so that
they dont have to dig into their own pocket.
For units bought for investment, owners may
choose to fix the defects themselves rather
than waiting for the developer to take actions.
Time is money the sooner they fix the
problems, the sooner they can rent out their
unit.
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If the problem is minor, they may prefer not to

talk to the media for fear of affecting the value
of their property. Who will want to rent or buy
a second-hand unit from a project like
Trivelis?
Even if the owners decide to join together to
sue the developer, at most the court will order
the developer to fix the defects after they win
the case. There wont be any other form of
compensation for the owners. It is also likely
to end up to be a long battle that wastes time
and money.
Protection for buyers of uncompleted
projects
One reason why many first-time buyers like to
purchase off-plan properties is the flexibility of
the payment scheme. After putting down a
deposit at the sales gallery, buyers only need
to pay the down payment to exercise the
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SINGAPORE PROPERTY WEEKLY Issue 209

option in 8 weeks time. After that, they can
follow a payment plan according to the
building progress of the project.
Without the pressure to fork out a big lump
sum upfront, off-plan properties sound more
flexible and affordable to home buyers.
However, the biggest problem of buying offplan properties is what you see is not what
you
get.
Misunderstandings
and
misinterpretations often arise from pictures
for artists impressions only and from the
unnoticeable fine print.
Except the 12-month defect liability period,
there is no law protecting the rights of home

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buyers when they find sub-standard fittings,

furnishings, fixtures and building materials in
their new homes. There is also no fine
imposed on developers, builders and
contractors when they have unsafe structures
or fixtures in the project that may cause harm
or accidents to residents in the development.
In that sense, the terms of buying resale units
are much more favorable compared with
buying off-plan properties.
By guest contributor Property Soul, a
successful property investor, blogger, and
author of the No B.S. Guide to Property
Investment.

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SINGAPORE PROPERTY WEEKLY Issue 209

Singapore Property This Week

Residential
Property developers may be charged up
to $90m in extension fees by end of year
From April to December this year, developers
may be charged up to $90 million in
extension fees for unsold condo units.
According to the Business Times, this
amount will be raised to $238 million in 2016
if current market conditions prevail. The large
increase in the extension charge is because
more projects received their temporary
occupation permit in 2014 as compared to
the previous year. Developers are given two
years to sell their projects. As such, more
developers may be incurring the extension
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charges in 2016 than in 2015. Christine Li

from Cushman & Wakefield said that bulk
sales or project re-launches may be useful
strategies to help developers sell their unsold
units.
(Source: Business Times)
EC site at Choa Chu Kang launched for
tender
Located at Choa Chu Kang, an executive
condominium site (EC) has been launched
for tender. The tender is expected to close on
June 30. The site is 4.9 hectares large and
has a 99-year lease. It may be developed
into 490 units according to HDB.

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SINGAPORE PROPERTY WEEKLY Issue 209

Market experts predict that the site will attract
moderate bids. They believe that the winning
bid would be between $250 and $330 psf ppr.
Nicholas Mak from SLP International believes
that the lack of retail facilities nearby and its
distance away from the MRT station may
affect developers willingness to bid highly for
the site. Not only so, Ong Teck Hui from JLL
believes that the slow sales for EC projects
may also affect bidders confidence. However
Ong Kah Seng from RST Research said that
the slow EC sales are not due to an
oversupply of ECs. Instead, Ong believes that
the slow sales is due to loan restriction curbs
such as the mortgage servicing ratio
framework that reduces buyers ability to
make big ticket purchases. Ong added that a
reduction in price for ECs may improve sales.
(Source: Business Times)

Slow sales at boutique condo at Farrer

Road
According to the Business Times, sales have
been slow at Pollen & Bleu, a boutique condo
project that is located at Farrer Road. The
condo which comprises of 106 units was
launched on May 9. Prices of between $1,900
to $2,000 psf were offered by the developer
during its soft launch. Michael Ng from United
Industrial Corp believes that the projects
close proximity to the Botanic Gardens is a
key appeal. The 99-year leasehold project
consists of one-bedders that are priced from
$1.05 million, two-bedders that cost about
$1.58 million, and three-bedders that are
priced from $2.18 million. Four-bedders and
penthouses are also available. It is located
near Orchard Road, Holland Village and
Dempsey Hill.

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 209

Foreigners demand for luxury homes
increases
More foreigners are purchasing luxury homes
in Singapore that are priced more than $5
million, according to a caveats analysis.
According to DTZ, homes that cost more than
$5 million accounted for 19 percent of private
homes bought by foreigners in April this year.
This is a significant increase from a 6 percent
share in Q1 this year. According to the
Business Times, demand for luxury homes
may have increased due to a fall in property
prices. Not only so, market experts believe
that property prices in Singapore are more
attractive as compared to prices in Hong
Kong. This may have resulted in a shift in
demand for Singaporean properties. Despite
that, the absolute volume of transactions is
still low, said the Business Times. On the
other hand, George Tan from Savills
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Residential said that foreign investors are still

drawn to the transparent property market in
Singapore, despite higher stamp duties.
(Source: Business Times)
GCB at Bishopsgate sold for record $2,190
psf
A good class bungalow (GCB) that is located
at Bishopsgate has been sold for a record
price of $2,190 psf or $33 million. The GCB
has more than 15,000 sq ft of land and is
freehold. It consists of two storeys and a
basement. Built three years ago, the
bungalow is built around a Tembusu tree. The
bungalow comprises of a wine cellar,
entertainment room and gym. Also, another
GCB site at Ridout Road is believed to have
been sold for $90 million or $1,228 psf.
According to the Business Times, the site is
about 73,000 sq ft, and may be subdivided
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SINGAPORE PROPERTY WEEKLY Issue 209

into four smaller plots of about 15,000 sq ft.
According to CBRE, from the start of the year
till April, 6 GCBs had changed hands. The
sales amounted to $125.82 million in total. In
2014, 28 transactions were made in the GCB
area, and that amounted to $626.14 million.
(Source: Business Times)
New rules for show units and sales data

Under the revised Housing Developers

(Control and Licensing) Act, developers will
have to provide detailed sales data on a
weekly basis and disclose the value of any
benefits to buyers in transaction documents.
According to MND, these new rules for
developers will provide more information to
prospective buyers of private residential
properties.
Nicholas
Mak
from
SLP
International said that not all developers are
thrilled by the changes as they may have to
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redesign their show flats in order to comply

with the new regulations. Mak said that
developers may use optical tricks to make a
space look bigger. These tricks include the
use of the same tiles for the balcony and the
living room. With the new rules, developers
will have to submit a declaration. Not only so,
spot checks will be made to ensure that
developers have complied with the rules.

(Source: Business Times)

Commercial
CBRE: investors cautious of the hotel
market

Teo Junrong from CBRE Hotels said that

investors have become more cautious of the
hotel market in the first quarter of this year. In
Q1 this year, the hotel market has attracted a
substantial amount of interest. However, only
one deal was recorded.
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SINGAPORE PROPERTY WEEKLY Issue 209

According to the Business Times, investors
are more cautious as the tourism industry has
been negatively affected by the strong
Singapore dollar. Room rates and occupancy
rates have also been affected by an increase
in hotel room supply, said the Business
Times. According to the Business Times, the
average occupancy rate fell by 1 percent to
84 percent year-on-year in January and
February this year. The average room rate
also fell by 5 percent to $249. Despite the fall
in occupancy rates, market experts believe
that the occupancy rate is still considerably
high.

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 209

Non-Landed Residential Resale Property Transactions for the Week of May 6 May 12

Postal
District
3
4
4
5
5
5
5
5
8
9
9
9
9
10
10
10
10
11
11
11
12
12

Project Name
EMERALD PARK
REFLECTIONS AT KEPPEL BAY
CARIBBEAN AT KEPPEL BAY
THE STELLAR
THE PARC CONDOMINIUM
THE FOLIAGE
VARSITY PARK CONDOMINIUM
FABER HILLS
KERRISDALE
THE TRILLIUM
WILKIE 80
RESIDENCES @ KILLINEY
CAIRNHILL PLAZA
FOUR SEASONS PARK
THE TRIZON
WATERFALL GARDENS
THE SIERRA
THE SHELFORD
NEWTON 21
NEWTON ONE
TRELLIS TOWERS
THE ARTE

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Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
947 1,020,000 1,077
99
2,616 4,500,000 1,720
99
1,227 1,845,000 1,504
99
947 1,255,000 1,325
FH
1,421 1,850,000 1,302
FH
1,690 1,488,000
881
FH
2,271 1,880,000
828
99
1,668 1,350,000
809
FH
1,259 1,200,000
953
99
2,217 4,950,000 2,232
FH
431
820,000
1,904
FH
1,625 2,880,000 1,772
FH
2,852 3,800,000 1,332
FH
3,821 10,500,000 2,748
FH
1,195 1,955,000 1,636
FH
2,196 3,388,000 1,543
FH
710
888,000
1,250 947
1,227 2,200,000 1,793
FH
1,066 1,755,000 1,647
FH
1,916 3,060,000 1,597
FH
1,485 1,890,000 1,272
FH
1,528 1,825,000 1,194
FH

Postal
District
14
14
14
14
14
15
15
15
15
15
15
16
16
16
16
16
17
17
17
19
19
19

Project Name
DAKOTA RESIDENCES
VIENTO
THE WATERINA
THE SUNNY SPRING
ASTORIA PARK
THE MAKENA
WATER PLACE
COSTA RHU
SANCTUARY GREEN
VERSAILLES
SANCTUARY GREEN
CASA MERAH
EAST MEADOWS
BAYWATER
RIVIERA RESIDENCES
TANAMERA CREST
FERRARIA PARK CONDOMINIUM
DAHLIA PARK CONDOMINIUM
ESTELLA GARDENS
SUNGLADE
CHILTERN PARK
ROSALIA PARK

Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
1,313 1,880,000 1,432
99
452
600,000
1,327
FH
1,238 1,450,000 1,171
FH
1,001 1,000,000
999
FH
1,195 1,185,000
992
99
1,152 1,520,000 1,320
FH
904 1,130,000 1,250
99
1,647 2,020,000 1,227
99
1,572 1,710,000 1,088
99
700
750,000
1,072
FH
1,572 1,680,000 1,069
99
1,249 1,350,000 1,081
99
1,378 1,280,000
929
99
1,055 950,000
901
99
2,411 2,150,000
892
FH
1,163 938,000
807
99
1,195 1,130,000
946
FH
1,098 845,000
770
FH
1,507 1,120,000
743
FH
1,830 1,800,000
984
99
1,270 1,168,000
920
99
1,475 1,270,000
861
FH

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SINGAPORE PROPERTY WEEKLY Issue 209

Postal
District
19
19
20
21
21
21
22
22
23
23
23
25
26
27
27

Project Name
EVERGREEN PARK
EVERGREEN PARK
SEASONS VIEW
SUMMERHILL
MEADOWLODGE
THE HILLSIDE
CASPIAN
LAKEHOLMZ
PARK NATURA
THE LINEAR
PARKVIEW APARTMENTS
PARC ROSEWOOD
CASTLE GREEN
CANBERRA RESIDENCES
THE SENSORIA

Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
1,173 855,000
729
99
1,173 830,000
707
99
969
920,000
950
99
1,948 2,088,800 1,072
FH
1,206 1,138,000
944
99
1,528 1,350,000
883
FH
1,238 1,300,000 1,050
99
1,249 1,150,000
921
99
2,314 2,310,000
998
FH
1,227 1,080,000
880
999
926
785,000
848
99
431
570,000
1,324
99
1,410 1,180,000
837
99
883
818,000
927
99
1,152 832,000
722
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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