Issue 331

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 CONTENTS FROM THE

p2 The Big Singapore Market Upgrade Hype

EDITOR
Welcome to the 331st edition of the
Singapore Property Weekly.
or Reality? (Part 1)
Hope you like it!
p8 Resale Property Transactions
Mr. Propwise
(September 18 September 22)

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 SINGAPORE PROPERTY WEEKLY Issue 331

The Big Singapore Market Upgrade Hype or Reality?

(Part 1)
By Ku Swee Yong and Shannon Aw (guest
contributors)

Positive news in the real estate sector started

to stream in early in 2017. We began the year
with promising data from the manufacturing
sector. The value of imports and exports also
rose. Several new properties geared up for
launches supported by the efforts of a few
thousand agents distributing flyers, sending
emails, knocking on the doors of prospective
investors and staging road shows all over
Singapore. Developers with leftover units in a
few dozen projects around Singapore also
rode on the media and marketing hype.

Infographic 1: Summary of the key points

(Image credit: HugProperty)

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 SINGAPORE PROPERTY WEEKLY Issue 331

Adding to the extensive market outreach of increase in dollar per square foot terms every
the property agents, real estate and financial year such that by 2030, the average values of
analysts weighed in by proclaiming that private residences will double!
residential market prices have already
Market watchers, commentators, property
reached a bottom and will rise in 2017.
agents and investors discussed the report in
Are we really at the bottom? online forums and over social media. Several
opined that in order for prices to double by
Are prices going to move up? Some market
2030, Singapore would need more
watchers point out that after 15 consecutive
immigrants to hit a population of at least 7
quarters of price declines, surely the market
million, or even limit new housing supply to
has to turn up!
market. A few also wondered about the wider
Amongst the most bullish proclamations was implications of a doubling of housing prices.
a 60-page report by a leading global
We liked that the report is packed full of
institution titled Property Prices Inflecting and
justifications about how strongly the
On Track to Double by 2030. Published on
Singapore economy will grow, and how that
12 April 2017, mainstream media hungry for
will push up housing prices. However, in
positive news immediately highlighted the key
trying so hard to stretch our imaginations
points: we are at the end of a protracted
about economic growth and home price
downtrend since 2013, property prices will
growth, several justifications in the report
rise from 2018, prices will sustain a 5%

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 SINGAPORE PROPERTY WEEKLY Issue 331

seem to tread on the fringe of the debatable Key Point #1 from the report: Average
and dubious. unit sizes of private residential units sold
by developers fell from 1.3k sqft to 1.1k
We have over a dozen questions about
sqft between 1995 to 2016, while the
various areas of the report. In this piece, we
average size of five-room public housing
would like to highlight the areas where the
units has fallen from 123sqm to 110 sqm
authors arguments could be based on
since 1997. We believe home sizes will
stronger foundations.
continue to decline at a rate of 1% p.a.
The report claimed that property prices will
This argument assumes that a decrease in
double by 2030 if all major economic and
home sizes will lead to an increase in the
demographic factors are aligned. Three key
price per sqft. Due to the generous dollops of
points which contribute to the doubling of
cooling measures imposed on the residential
prices are: (1) shrinking home sizes, (2)
market since 2009, developers have
Gross Domestic Product (GDP) and income
squeezed home sizes to keep the investment
growth, and (3) the household formation rate
quantum low and to improve affordability for
of singles and high-skilled Employment Pass
investors.
holders.

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 SINGAPORE PROPERTY WEEKLY Issue 331
This has resulted in brisk home sales for
studio-sized, 1- bedroom and 2-bedroom
units which are mainly purchased by
investors who think that they can
subsequently rent to low-budget tenants.
Hype in The Singapore Property Market:
Downsized Properties
Our questions: Why does the report only
consider the sizes of apartments sold by
developers and conclude that home sizes
will continue to decline at the rate of 1%
p.a.? In the event that developers only
launched and sold apartments of 800sqft in
the year 2018, would the report then infer that
average home sizes would decline at an even
faster rate of say, 5% per year? What about
resale transactions? Older properties which
are larger in size are more often purchased
by families for their own use, and these are
Back to Contents
less frequently transacted than investors
units which are, on average, smaller in size.
Fact #1 Average size of homes did not
reduce steadily from 1995 to 2016
The average size of Singapores private
homes did not reduce steadily from 1,300 sqft
in 1995 to 1,100 sqft in 2016. The report
charted data of developers new sales only.
For new sales, large sized apartments and
penthouses were the rage in 2006-2008 and
therefore average home sizes transacted in
that period climbed above 1,500 sqft in early
2007. Sizes of new homes sold do not
represent the sizes of all private homes in
Singapore. Private homes include landed
properties. However, there were few new
landed housing projects launched in the last
10 years as compared to compact
apartments in high-density developments and
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 SINGAPORE PROPERTY WEEKLY Issue 331
the latter contributed to the shrinking sizes of
new homes. Do note that new home sales
account for about 10,000 to12,000 units per
year in the past 10 years but the total stock of
private homes reached 348,000 by the end of
2016. Therefore, the smaller average sizes of
10,000 new homes every year will hardly
weigh down the average size of the entire
stock of private homes.
Fact #2 The sizes of new HDB flats have
remained constant since 1997
The sizes of new HDB flats have remained
constant since 1997. HDB made a switch to
reduce flat sizes in 1997 and since then, the
average sizes of all new 3-room, 4-room and
5-room flats have been maintained. Our
gradually shrinking household sizes caused
by a falling birth-rate has made HDB build a
larger proportion of 3-room and 4-room flats.
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To cater for the needs of retirees and singles,
HDB has also increased the number of studio
and 2-room flats in the past few years. As a
result, the proportion of 5-room flats has
become smaller. The report claimed that the
average size of five-room public housing units
has fallen from 123sqm to 110sqm since
1997. And it followed with the statement we
believe home sizes will continue to decline at
the rate of 1% p.a. Uninformed readers may
form an incorrect impression that HDB will
reduce the sizes of new flats at a rate of 1%
p.a. in future!
Certain data trends are not suitable for
extrapolation. Would it be reasonable to
extrapolate the world record times for a 100m
sprint down to 3 seconds? Would it be
reasonable to think that the average
Singaporean will live in homes that measure
600 sqft in 50 years time?
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 SINGAPORE PROPERTY WEEKLY Issue 331

Would this imply that about 50% of make informed decisions. Originally started
Singaporeans live in homes that are 200-600 by three co-founders, Mr. Winston Lam, Dr.
sqft? Andy Teoh and Mr. Jeffery Sung in July 2016,
the HugProperty team now consists of
We find it puzzling that the report concluded
industry experts such as veteran property
that Singapores average residential sizes will
agent and property analyst, Mr. Ku Swee
shrink by 1% p.a. from 2017 to 2030 simply
Yong and renowned mortgage expert, Ms.
based on the average sizes of new private
Ally Yang. Through data analysis conducted
home sales in the last 20 years and a
by the experts, HugProperty can help make
groundless suggestion that HDB will reduce
property buying and selling, an intelligent and
flat sizes in the next 14 years simply due to
hassle-free experience.
one reference data point from 1997.

This article is co-written by Ku Swee Yong,

Co-founder of HugProperty with Shannon Aw
Qian Tong, undergraduate from the
Department of Real Estate, National
University of Singapore. HugProperty is a
web-based property platform, which provides
potential buyers and sellers with expert
knowledge and insights, that are necessary to

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 SINGAPORE PROPERTY WEEKLY Issue 331

Non-Landed Residential Resale Property Transactions for the Week of Sep 18 Sep 22

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
2 SKYSUITES@ANSON 1,012 2,423,000 2,395 99 9 LANGSTON VILLE 947 1,320,888 1,394 999
2 SKYSUITES@ANSON 667 1,496,000 2,242 99 10 GRAMERCY PARK 2,164 6,378,400 2,948 FH
2 SKYSUITES@ANSON 667 1,453,370 2,178 99 10 GRANGE RESIDENCES 2,852 7,600,000 2,664 FH
2 SKYSUITES@ANSON 700 1,455,000 2,080 99 10 GOODWOOD RESIDENCE 2,928 7,368,800 2,517 FH
2 76 SHENTON 592 1,050,000 1,774 99 10 VOLARI 1,324 3,000,000 2,266 FH
3 THE CREST 1,593 2,850,000 1,789 99 10 FOUR SEASONS PARK 2,217 4,900,000 2,210 FH
3 ALEXIS 506 825,000 1,631 FH 10 THREE BALMORAL 1,528 3,375,800 2,209 FH
3 THE REGENCY AT TIONG BAHRU 1,281 2,020,000 1,577 FH 10 VOLARI 1,324 2,580,000 1,949 FH
3 TANGLIN VIEW 1,152 1,375,000 1,194 99 10 BEVERLY HILL 3,778 6,800,000 1,800 FH
4 REFLECTIONS AT KEPPEL BAY 1,001 1,525,000 1,523 99 10 AVALON 958 1,670,000 1,743 FH
4 HARBOUR VIEW TOWERS 1,615 1,500,000 929 99 10 MILL POINT 527 890,000 1,687 999
4 THE INTERLACE 3,208 2,850,000 888 99 10 GALLOP GABLES 2,756 4,500,000 1,633 FH
4 THE INTERLACE 3,746 2,828,000 755 99 10 THE LEVELZ 1,001 1,510,000 1,508 FH
5 HORIZON RESIDENCES 936 1,438,000 1,536 FH 10 KASTURINA LODGE 753 1,080,000 1,433 FH
5 SEAHILL 527 780,000 1,479 99 10 JERVOIS LODGE 1,238 1,750,000 1,414 FH
5 THE FOLIAGE 936 1,175,000 1,255 FH 10 GLENTREES 1,991 2,650,000 1,331 999
5 THE PEAK@BALMEG 1,722 2,050,000 1,190 FH 10 ORCHARD BEL AIR 3,229 3,900,000 1,208 99
5 WEST BAY CONDOMINIUM 1,345 1,130,000 840 99 11 BUCKLEY CLASSIQUE 1,410 2,700,000 1,915 FH
8 STUDIOS @ MARNE 517 730,000 1,413 FH 11 THE SHELFORD 1,389 2,250,000 1,620 FH
8 THE MERLOT 1,098 1,320,000 1,202 FH 11 AMARYLLIS VILLE 1,690 2,380,000 1,408 99
9 MARTIN NO 38 1,335 3,100,000 2,323 FH 11 PAVILION 11 1,485 2,000,000 1,346 FH
9 VIDA 527 1,130,000 2,142 FH 11 MONTEBLEU 1,475 1,980,000 1,343 FH
9 RIVERGATE 1,744 3,700,000 2,122 FH 11 ZEDGE 915 1,173,000 1,282 FH
9 RIVERGATE 1,798 3,680,000 2,047 FH 12 EIGHT RIVERSUITES 980 1,360,000 1,388 99
9 CASA CAIRNHILL 1,539 2,480,000 1,611 FH 12 THE ARTE 1,399 1,660,000 1,186 FH

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 SINGAPORE PROPERTY WEEKLY Issue 331

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
12 RIO GARDENS 1,195 1,190,000 996 FH 16 BAYSHORE PARK 3,531 2,700,000 765 99
13 PLATINUM EDGE 829 1,070,000 1,291 FH 16 TANAH MERAH MANSION 1,281 951,000 742 FH
13 THE ACACIAS 1,884 2,010,000 1,067 FH 17 HEDGES PARK CONDOMINIUM 764 710,000 929 99
14 COSMO 710 900,000 1,267 FH 17 BALLOTA PARK CONDOMINIUM 1,432 930,000 650 FH
14 NESS 463 581,000 1,255 FH 18 MY MANHATTAN 872 1,150,000 1,319 99
14 EUHABITAT 1,173 1,340,000 1,142 99 18 THE PALETTE 753 828,000 1,099 99
14 EUHABITAT 1,012 1,110,000 1,097 99 18 WATERVIEW 1,130 1,130,000 1,000 99
14 EAST SHINE 1,023 1,100,000 1,076 FH 18 EASTPOINT GREEN 958 730,000 762 99
14 SIMSVILLE 1,238 1,180,000 953 99 19 KOVAN GRANDEUR 388 500,000 1,290 99
15 SILVERSEA 4,596 9,060,000 1,971 99 19 RIVERSOUND RESIDENCE 474 560,000 1,182 99
15 POSHGROVE EAST 1,238 1,700,000 1,373 FH 19 RIVERSOUND RESIDENCE 474 540,000 1,140 99
15 PEBBLE BAY 2,336 3,150,000 1,349 99 19 TANGERINE GROVE 947 1,040,000 1,098 FH
15 HAIG COURT 1,399 1,860,000 1,329 FH 19 THE SPRINGBLOOM 1,453 1,540,000 1,060 99
15 SANCTUARY GREEN 775 938,000 1,210 99 19 PARC VERA 872 868,000 996 99
15 SANCTUARY GREEN 1,356 1,520,000 1,121 99 19 FRAGRANT GARDENS 850 810,000 953 FH
15 SUITES@ KATONG 646 720,000 1,115 FH 19 CASA ESPANIA 1,658 1,500,888 905 FH
15 THE ASTERIA 24,445 27,100,000 1,109 FH 19 RIVERSAILS 2,314 1,938,000 837 99
15 SANCTUARY GREEN 1,119 1,230,000 1,099 99 19 RIO VISTA 1,238 955,000 771 99
15 BUTTERWORTH VIEW 1,238 1,360,000 1,099 FH 19 RIVERVALE CREST 1,163 810,000 697 99
15 CRESCENDO PARK 1,475 1,590,000 1,078 FH 20 FAR HORIZON GARDENS 1,152 856,000 743 99
15 MANDARIN GARDENS 732 705,000 963 99 21 FLORIDIAN 1,658 2,768,000 1,670 FH
15 ENVIO 2,131 1,650,000 774 FH 21 THE STERLING 1,862 2,900,000 1,557 FH
16 EAST COAST RESIDENCES 872 1,000,000 1,147 FH 21 CLEMENTI PARK 1,798 1,980,000 1,101 FH
16 THE BAYCOURT 1,658 1,658,000 1,000 FH 21 SPRINGDALE CONDOMINIUM 1,119 1,200,000 1,072 999
16 CHANGI COURT 1,389 1,308,000 942 FH 21 SIGNATURE PARK 1,399 1,500,000 1,072 FH
16 CHANGI COURT 1,163 1,050,000 903 FH 21 SOUTHAVEN II 1,485 1,547,000 1,041 999
16 AQUARIUS BY THE PARK 893 790,000 884 99 21 PARC PALAIS 1,485 1,470,000 990 FH

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 SINGAPORE PROPERTY WEEKLY Issue 331

Postal Area Transacted Price

Project Name Tenure
District (sqft) Price ($) ($ psf)
21 SPRINGDALE CONDOMINIUM 1,109 1,080,000 974 999
21 BEAUTY WORLD CENTRE 1,873 1,450,000 774 99
22 PARC OASIS 1,227 1,090,000 888 99
22 PARC VISTA 1,055 850,000 806 99
23 FORESQUE RESIDENCES 743 808,000 1,088 99
23 HILLVIEW HEIGHTS 1,270 1,300,000 1,023 FH
23 MERA WOODS 1,345 1,330,000 988 999
23 HILLBROOKS 1,981 1,750,000 884 FH
23 GUILIN VIEW 1,281 980,000 765 99
23 REGENT HEIGHTS 2,185 1,650,000 755 99
25 PARC ROSEWOOD 431 525,000 1,219 99
25 PARC ROSEWOOD 517 535,000 1,035 99
26 SEASONS PARK 1,044 805,000 771 99
27 THE MILTONIA RESIDENCES 517 581,000 1,125 99
27 THE MILTONIA RESIDENCES 861 790,000 917 99
27 THE NAUTICAL 990 888,688 897 99
28 MIMOSA PARK 2,153 1,870,000 869 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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