Issue 235

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

CONTENTS
p2

To Buy or to Rent? That is the Question

p6

Singapore Property News This Week

p10

Resale Property Transactions

FROM THE

EDITOR

Welcome to the 235th edition of the

Singapore Property Weekly.

Hope you like it!

Mr. Propwise

(November 4 November 9 )

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SINGAPORE PROPERTY WEEKLY Issue 235

To Buy or to Rent? That is the Question

By Tam Ging Wien (guest contributor)
To buy or to rent? This has been a discussion
point that has surfaced many times during my
interaction with friends, colleagues and
relatives. There is a clear divide between
these two opposing views of property
ownership.
The renting camp will say that the property
cycle is at a high now. It would be better to
sell their current property, rent a place and
wait to buy after a correction.

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SINGAPORE PROPERTY WEEKLY Issue 235

The buying camp will say they would rather
spend the money paying to own their own
home rather than help the landlord pay for
theirs!
The influence of culture on the home
ownership decision
Depending on which region of the world you
come from, the culture, government policy
and influence of your upbringing will affect
how you think about buying versus renting.
According to Eurostats, 2012 home
ownership rates in the developed nations of
France, Austria, Germany and Switzerland
stand at 63.1%, 57.5%, 53.3% and 43.8%
respectively. In contrast, according to various
other sources, home ownership rates in
Singapore, China and India are 90.5%, 90.0%
and 86.6%.

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Asian nations clearly show

emphasis on home ownership.

stronger

So, what factors would influence a persons

decision to buy or rent? Here are some
factors to consider based on my discussions
with different groups of people:
Reasons to Rent

You do not feel prepared to make a large

financial commitment

You feel like you do not have sufficient

knowledge to make such a large decision

You view property prices as trending

downwards and prefer to buy after the
correction has run its course

You have just recently immigrated from

another country and are unfamiliar with
the local property market

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SINGAPORE PROPERTY WEEKLY Issue 235

You want to have a location convenience

(e.g.be near a school or place of work)
but are unable to afford the purchase

You want to start or raise a family

immediately as the process of buying can
be fairly long

Reasons to Buy

You view property as a vehicle of financial

security and wish to pass it on to the next
generation

You want the freedom to renovate the

house according to your own taste and
lifestyle

You wish to take advantage of low interest

rates buying makes sense as paying
the mortgage may be cheaper than
paying rental

Back to Contents

You are buying with an investment

objective in mind, expecting capital
appreciation and wishing to create an
additional source of income

You can buy and rent at the same time

My advice is that you should not look at
buying or renting as a mutually exclusive
decision. You can buy and rent at the same
time!
When I acquired my first property in 2005, far
away from the city area, I was still single and
living alone. I did not require such a large
space and maintaining the unit would require
more effort. I instead chose to rent it out for
$1,500 a month and then rented a small room
for $400 near the city fringe. The monthly
mortgage to the bank then was about $1,200.

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SINGAPORE PROPERTY WEEKLY Issue 235

The additional stream of income from my
property helped to offset my rental. Had I
stayed in my own place, I would have had to
fork out $1,200 every month to the bank,
affecting my cash flow. Instead, I now had to
pay only $100 a month, and could ride the
capital appreciation for the next nine years
while still enjoying the location convenience!
By guest contributor Tam Ging Wien, an avid
investor and blogger who spends his time
empowering the masses in financial
education.

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SINGAPORE PROPERTY WEEKLY Issue 235

Singapore Property This Week

Residential
Non-landed home sales increase by 60%
in Oct

In October, developers sold 546 non-landed

homesa 60% increase from the 341 sold in
the previous month. According to the
Business Times, the launch of Principal
Garden and Thomson Impressions made up
35.5% of the sales in October. The former
had sold 113 units at a median price of
$1,633 psf, while the latter sold 80 units at a
median price of $1,399 psf. Despite the boost
in sales, market experts explained that the
overall private residential market remained
muted due to the effects of the cooling
measures. Ong Kah Seng from RST
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Research predicts that developer sales

activity will remain sluggish for the rest of the
year due to the holiday season.
(Source: Business Times)
Sentosa Cover bungalow sold for $2,775
psf
A bungalow at Sentosa Cover was sold for
$23.8 million or $2,775 psf based on a land
area of 8,576 sq ft. According to the Business
Times, the psf price is the highest for a
bungalow transaction in Sentosa Cove in the
last two years. Nonetheless, it was priced
lower than what two nearby villas had sold for
in June and May 2013, before the total debt
servicing ratio framework came into effect.
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SINGAPORE PROPERTY WEEKLY Issue 235

The bungalow, which has three and a half
levels, has a roof terrace and four bedrooms.
The total built-up area stands at 10,000 sq ft,
according to the Business Times.
(Source: Business Times)
The Poiz Residences to be launched in
late-Nov
Half of the 731 units at The Poiz Residences
will be launched on Nov 28 at an average of
$1,380 psf. The private condo project, which
forms part of a mixed-use development,
includes a retail component and also a
residential site. Despite market concerns of a
potential oversupply, Tan Zhiyong from MCC
Land is optimistic about sales as private
housing demands have remained high. The
Poiz Residences will consist of hotel-like
suites, urban units for price-sensitive
professionals and habitat units for families.
Back to Contents

Ong Kah Seng from RST Research said that

affluent HDB upgraders may consider Potong
Pasir given its proximity to the city area.
Thus, sales is expected to be brisk within the
area.
(Source: Business Times)
Indirect discounts less prevalent due to
price-sensitive market
As buyers and sellers become more price
sensitive, indirect residential discounts such
as cash rebates and furniture vouchers are
losing their favour, said the Business Times.
Of 3,805 non-landed private home, which
were sold by developers since May 25 this
year, only 3% had indirect discounts, with an
average discount of 1.7% of the transacted
price. Tan Tee Khoon from KF Property
Network said that for projects launched after
the implementation of the total debt servicing
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SINGAPORE PROPERTY WEEKLY Issue 235

ratio framework, developers had priced their
developments to sell as they were aware of
the loan restrictions and slow market
sentiments. Mohammed Ismail from PropNex
added that direct discounts are more popular
now as a direct price cut will mean that some
buyers will have a lower additional buyers
stamp duty.

Ratings. The Monetary Authority of Singapore

(MAS) will be capping borrowings of Reits at
45% of assets from 2016. In addition,
according to DTZ, office rents are expected to
fall about 7% this year and another 8% in
2016 as demand slows. Falling values, rents
and occupancies for debt-backed properties
may slow growth further, said experts.

(Source: Business Times)

(Source: Business Times)

Commercial

Bids for CPF Building surpasses $500

million

Reits increase perpetual bonds before

new rules take effect
Singapore landlords are loading up on bonds
masked as equity to get around new rules
that curb their debts amid a property slump.
Real estate investment trusts (Reits) issued
$700 million of perpetual notes with no set
maturity date in 2015, according to Fitch

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According to the Business Times, bids placed

in a tender exercise that closed on Oct 28 for
the CPF Building have surpassed $500
million. Fewer than 10 bids were placed,
added the Business Times, and the two most
aggressive bids came from a Singapore party
and a foreign bidder.

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SINGAPORE PROPERTY WEEKLY Issue 235

Market experts predict that with a small gap
between the two top bids, the conditions
offered by the respective bidders could
determine which party was awarded the bid.
The results of the tender will have to wait as
bids are still being evaluated, said a
spokesperson from CPF.

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 235

Non-Landed Residential Resale Property Transactions for the Week of Nov 4 Nov 9
Postal
District
1
1
3
3
4
5
8
9
9
10
10
10
14
14
15
15
15
15
15
15
16
18
18
18

Project Name
EMERALD GARDEN
PEOPLE'S PARK COMPLEX
QUEENS
TANGLIN VIEW
THE INTERLACE
BLUE HORIZON
CITYLIGHTS
VISIONCREST
UE SQUARE
ROBIN REGALIA
THE LEGEND
KELLOCK LODGE
WATERBANK AT DAKOTA
EUNOSVILLE
COTE D'AZUR
ONE AMBER
WATER PLACE
TANJONG RIA CONDOMINIUM
CASUARINA COVE
THE GERANIUM
THE DAFFODIL
NV RESIDENCES
WATERVIEW
NV RESIDENCES

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Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
829 1,480,000 1,786 999
1,119 905,000
808
99
1,184 1,480,000 1,250
99
1,141 1,398,888 1,226
99
2,056 2,459,400 1,196
99
1,152 1,192,000 1,035
99
678 1,050,000 1,548
99
1,227 2,300,000 1,874
FH
1,528 2,270,000 1,485 929
861 1,360,000 1,579
FH
1,464 1,960,000 1,339
FH
893 1,010,000 1,130
FH
1,572 2,300,000 1,464
99
1,776 1,350,000
760
102
1,313 1,765,000 1,344
99
1,701 2,250,000 1,323
FH
1,227 1,545,000 1,259
99
1,281 1,383,480 1,080
99
1,593 1,650,000 1,036
99
624
640,000
1,025
FH
689
778,000
1,129
FH
743
800,000
1,077
99
1,130 1,168,000 1,033
99
1,109 1,100,000
992
99

Postal
District
18
18
18
19
19
20
21
23
23
26
26
26

Project Name
MODENA
MODENA
CHANGI RISE CONDOMINIUM
RIVERVALE CREST
RIVERVALE CREST
TRESALVEO
HUME PARK I
THE DAIRY FARM
GUILIN VIEW
MEADOWS @ PEIRCE
CASTLE GREEN
CASTLE GREEN

Area Transacted Price

Tenure
(sqft) Price ($) ($ psf)
1,399 1,270,888
908
99
969
860,000
888
99
1,130 890,000
787
99
1,195 900,000
753
99
1,216 880,000
723
99
1,550 1,868,000 1,205
FH
904
850,000
940
FH
1,658 1,680,000 1,013
FH
1,238 1,080,000
872
99
1,518 1,750,000 1,153
FH
947
840,800
888
99
1,152 1,000,000
868
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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