International Business Park at Jurong East will be extended southwards to increase 20% or 125,000 sq.ft. It is part of the Jurong Gateway and plans to complete in 2011 to 2012. A new road leading to AYE and Boon Lay Way will be added. More upgrading and new residential properties may also be expected along Sungei Ulu Pandan.
I've been monitoring a few condos at West Coast area. Their transacted prices had risen by 15%~20% in the first 3 quarters last year; however they seem stabilized or even slightly declined since 4Q'2007.
The dotted line in the above figure means there are too few transactions in that month to draw a reliable curve.
Botannia by CDL & Capitaland was launched in May last year and now there are still 30~40 units on sale at the developer's showflat. It fetched the median psf of $864 in Oct '07, or 27% rise from its launch price. But the sales have slowed down since then: the URA data shows that only 3 and 8 units were sold in Nov & Dec, with the median price $855 & $839 respectively.
Right next to it are Carabelle by Sim Lian, Infiniti by Frasers Centrepoint and Monterey Park by CDL. The below assembles the cluster of condos over there (not to-scale).
Clementiwood (by Frasers Centrepoint) is a low-rise development at the further east of the above condo cluster and near NUS. The 99-yrs LH project was launched in early 1Q '2007 and was the benchmark for the property boom in the westward extension of the city area.
HDB announced that some ten thousands HDB flats will be released in the next half a year, including the two BTO projects currently accepting applications -- Segar Meadows (412 units) & Compassvale Beacon (750 units), 4-rm flat priced at $180K - $233K. It will release another 6000 units if the demands keep strong.
Four privately developed DBSS (Design Build & Sell Scheme) projects for 1900 units will also be launched in the next 6 months.
There will be three EC projects in Yishun, Jurong West & SengKang next year, building 1300 units.
All together, it is expected to cool down the hot market. Resale index may be kept at the 3rd quarter level in short term but expected 3% ~ 5% down in 2 to 3 years time frame.
Based on COV (Cash-Over-Value), property agents pick out Queenstown, Marine Parade, Clementi & Bukit Merah as some towns where flats may be overpriced, many are old districts (aged 20 years or more). Good buys can be found in more low-key towns surrounded by amenities, such as Woodlands, Jurong West, Choa Chu Kang and Pasir Ris. Agents expect the climb of resale flat prices islandwise to slow over the next 12 months, after the heady rise in the 3rd quarter. The rentals of HDB flats, meanwhile, is still expected to grow over the next year, as more foreigners take up residence in Singapore and find private homes too expensive to live in. ---- abstracted from The Sunday Times Property Buying Guide.
Resale executive condominium (EC) units are among the most undervalued mass market properties. Though similar to 99-yr leasehold condos in terms of quality, resellers price in a "too generous" discount for their flats. Today's newspaper reveals the following statistic data: As the latest new EC on the market, La Casa in Woodlands achieves more than $550psf (24 sales in Oct. range from $498 to $601psf). While the resale price of nearby 7-year-old Northoaks and Woodvale only fetch some $420psf recently, though they've already climbed 35% since March. Here are the site plans for La Casa and Northoaks, for reference.
One-north zone comprises an area of about 200 hectares developed in 3 phases over the next 15-20 years. The Life Xchange (Biopolis), Central Xchange (Fusionpolis) and Vista Xchange in the first phase allow for the development of the dynamic core & platform. Two condos in the science hub at Buona Vista were launched earlier this year, both are 99-yr leasehold projects. The 368-unit UE development The Rochester was launched more recently in July, at average $1300psf. It is right next door to the up-and-coming Rochester Park and is part of a mixed development that includes another block of 250 hotel rooms & 120 serviced apartments and a retail complex with about 100,000 sq ft of space. 
One North Residence was launched in March & received excellent response, when 95% were sold out at $870-$1000psf even before public launch. Standing on an area of 170,738 s.f., the 405-unit project consist of 85 single-level & duplex SOHO-layout apartments for retail shops on the ground floor (SOHO refers to small-office, home-office). The condo will be developed by a joint venture between UOL Group, Low Keng Huat and privately-held Kheng Leong.
I think Far East Organization went crazy for its condo sales.
Gardenvista (99-yr LH) at the NW end of Bukit Timah Rd is selling at $1300+ psf, up from $680 about half a year ago. It has gotten TOP at the end 2006 but there are still unsold units. The showflat at #07-24 costs some $1.5m for the 1173 s.f. 3+S unit. The front area (within dotted line) by Dunearn Rd is the site of their another FH project, Jardin.
I heard that FEO is selling The Lakeshore near lakeside at $750-900psf, or some $100psf higher than the speculative units in the market. It consists of 848 units on 99-yr leased land, and was launched in 2003 at average $488psf. Some like its plenty of water/pool features & interior design, but some dislike its high density & multi-storey carpark.
Indeed, you will most likely find the first 3 large (half-page) property advertisements from FEO on every recent SundayTimes: the La Casa EC at Woodlands Ave.5, Hillview Regency at Bt. Batok East Ave.5 and The LakeShore. All have either completed (Hillview Regency completed in 2005) or been almost ready for TOP. Yet FEO still has significant amount of units on sale, with the ridiculously high price-tag.
I tend to think that one needs not waste time to view any FEO projects if he is sensitive to price. But I've to admit that they have sold several their overpriced units recently...
Nearby the newly launched Park Natura, The Raintree at Hindhede Dr. is another condo for those who love to stay with nature & rainforest, actually it is just by the Bukit Timah Nature Reserve and even shares a boundary with the cyclist path to the reserve. Expected TOP in the mid 2008, the 99-yr leasehold 315-unit condo by Frasers Centrepoint has appreciated in value, from below $500 in the end 2006 to $750+ psf in the recent (oct.) subsales.
I'm only wondering whether there will be any issues with the inserts & flies, especially in the common area (e.g. pool side). Oh, I forget to mention that all units have no balconies, only planters (PES).
Park Natura across from Bukit Botok Nature park was publicly launched last weekend. The free-hold 192-unit UIC development has gone well so far: priced at an average of $1000 psf, more than 100 units have been sold at the private soft launch.
The condo is featured on the hill top located at Upper Bukit Timah overlooking two nature reserves.
It is of the last few still offering DPS -- besides the total 5%+5% upon signing the purchase agreement, the rest payment is deferred till Jan 2009. Typical 2-BR unit has slightly more than 1000 sq.ft. (i.e. quantum about $1m) and 3-BR some 1400 sq.ft.
The government last night scrapped the deferred payment scheme (DPS) that allowed homebuyers to postpone payments on new property. Buyers now have to make progressive payments (PPS) in steps with the construction process and the 20% downpayment upon signing the Sales and Purchase Agreement (SPA) becomes mandatory.
It is a response to the overheating in the market, especially the excessive speculation. As an indicator for speculative activities, subsales -- owners selling uncompleted properties -- accounted for 12.7% of total deals (21.6% in the core central region), as compared to 28% in 1996. Overall prices rose 8.3% in the 3rd quarter that brings the price growth so far this year to 22.9%. I think it's good to cool the market at some extends so that its growth is more healthier and sustainable.
PPS: it calls on buyers to pay progressively at various stages of construction. Here is the typical scheme:
DPS: introduced in Oct 1997, it offers the homebuyers to postpone payment other than the initial 20% downpayment till TOP. The downpayment was further reduced to 10% in Nov 2001. It is believed to encourage speculative activities as a flipper only needs to fork out as little as 10% of the purchase price and has typical 2-4 yrs to find a new buyer of his speculating unit.
Here collects the various costs related to a property transaction incl. solicitor's charge, agent fee and stamp duty etc.
1. Solicitor's charge
A conveyancing lawyer is responsible for doing all the relevant searches on the title deed to ensure that the seller does not owe any debt and to check to see if there is a road reserve on the property which may affect the value of the property. If the buyer is taking out a bank loan or CPF, the lawyer also ensures that the relevant documents are ready. The lawyer's role ends when the title deed is handed over to the buyer. For uncompleted properties, it could take up to 3 yrs. Resale transactions, however, are usually completed within 3 or 4 months.
The Law Society of Singapore recommends the following fee guidelines for the solicitors' remuneration.
For non-CPF conveyancing transactions:
For CPF conveyancing transactions (first application to CPF board for withdrawal):
The solicitor usually charges disbursements that easily accounts 4-digit:
Note the bank offering mortgage usually subsidies the legal cost at some 0.4% of the loan amount, subject to fulfilling the min. period of loan facility (e.g. 3 yrs).
2. Agent fees
Institute of Estate Agents stipulates the professional fee / commission for agents / agencies based on standard services and upon successful transaction, but it does not interfere with any private arrangements:
It is the market practice that housing agent only charges the vendor 2% commission in case of condo or landed property sales, and charges both vendor and purchaser in case of HDB resale flat but the commission rate is often negotiable within the above guidelines.
Some agencies (e.g. ERA) provide extra services such as 6 months guarantee and bridge loan if both a client both buys and sells through the same agent.
HDB has over the years simplified and streamlined its resale procedures and made resale information more readily available to the public. It is not a requirement that resale HDB flat transactions must be facilitated by agents. However, HDB encourages to engage accredited SAEA members should one decide to use the agent's service: he will get priority over others with non SAEA-member agents when selecting the first appointment date.
3. Stamp duty
Stamp duty is a tax on commercial and legal documents which record and give effect to certain transactions. Since 28/02/1998, it is payable only on documents relating to immovable property, stocks and shares. These include a sale or mortgage or lease of immovable property.
Use the following conveyance formula (w.e.f. 29/02/1996) on purchase price round-up to the next nearest hundred dollars:
or for simplicity, 3% of purchase price - $5,400 when it is more than $360K.
4. Property tax
Property tax payable per year is computed based on tax rate of the Annual Value of the property. For owner-occupied residential building, the property tax rate is 4%. For properties other than owner-occupied residential buildings, property tax rate is 10%.
Annual Value is the estimated yearly rent the property can fetch if it were rented out. The Chief Assessor will determine the AV of the property by analysing rents of comparable properties and relevant data. It is determined regardless of whether the property is let, wholly owner-occupied or vacant.
I did some research that extends an existing residential property index diagram with more recent data. It shows the current index is the second highest following the historical peak 11 years ago.
The prime minister announced the 'Punggol 21+' plan on this year's national day speech, together with a few impression pictures to promise a beautiful new town to come.
HDB will start in 2 yrs to build a 5.5Km artificial water-way linking Rangoon River & Punggol River. The water-way will be 20-50m wide and 3-9m deep expected completion in 2013. Started some 10 yrs ago, Punggol 21 won't be completed in the next 5 years, reported by NewsAsia today.
1. Get armed -- read up on the facts. Go online to HDB website & study the market statistics and find out the median resale prices and cash-over-value for flats in your targeted area. Visit the location at different times of the day to get a feel of what it's like to live there.
2. Set the rules of the game -- decide if you want to hire a housing agent to help you. If you're doing it yourself, check out the HDB website to find out the procedures involved or attend its monthly resale seminar. Most agents representing sellers charge buyers the 1% fee if they're not represented by another broker. Some agents turn down requests from independent buyers to view the flats. Whatever you decide, it's best to make it clear upfront by stating clearly when first contact with the brokers marketing the flats.
3. Act the Sherlock -- living in high-rise, densely packed public apartments has its own quirks. You never know, for example, if an owner is selling the flat because he has been harassed for repayment by loansharks at his home. If you buy this flat, you may end up being harassed yourself even if you had nothing to do with the debt. Take a walk down the staircase closest to that flat and pay attention to the flat door. If graffiti is found or the door is damaged, it could indicate that the flat is being targeted.
Another problem, more common in older resale flats, is leaky ceilings. This happens when shoddy renovation upstairs or age creates kinks in the water-proofing layer in your ceiling. To spare yourself the hassle of living with this or trying to fix the leak, look out for watermarks on the ceiling when viewing flats.
4. Be shameless -- don't give up if one agent turns down the price you offer for a flat. You may get lucky with another agent marketing the same flat. Some flat owners do not give exclusive marketing rights to one agent, prefer to pay a commission to whoever gets them a deal. Agents are unlikely to disclose that they are marketing a flat which they have no exclusive rights over. If agent A thinks that your offer is too low, agent B might find it a worthy offer to discuss with the owner.
5. Keep your cool -- it is common for agents to arrange viewings for an many as 10 interested parties within a half-hour slot, to heighten the sense of competition among buyers. Some agents will tell you they already have offers for the flat - when they don't - just to get you interested. If an agent tells you that someone has already offered $480K for a flat, make him an offer of, say, $460K on the spot. If he tries to negotiate with you, that $480K offer is most likely a fake.
6. Watch out for upgrades -- if a flat you are interested in is being upgraded, find out who is paying for the work. HDB fills owners for upgrading after the work is done, and the owner at the point of billing is responsible for payment. Ask for a receipt to show that he has paid the upgrading bill or check with the relevant HDB office if the seller wants to factor the upgrading cost in the price.
7. Take your time -- buyers & sellers of HDB flats must use the standard HDB Option to Purchase form. Under this arrangement, the buyer gets 14 days to consider his purchase after paying a non-refundable option fee. Don't rush to sign the option on the spot.
8. Don't' even think about it! -- don't go under the table practice, either cashback (artificially inflate the purchase price to get a bigger housing loan) or cash-down (underdeclare the full purchase price). Avoid getting entangled in such illegal arrangement; you may be fined up to %5,000 and jailed up to 6 months for giving such false information.
9. Be a busybody -- don't' be afraid to ask all the questions you have.
The Parc condo in West Coast Walk got exceptional good response and was snapped up in less than a fortnight early this month. The 659-unit FH project consists of seven 24-storey buildings and were sold at $880 psf on average, rising from about $820 initially. There are a lot of complaints and public anger for its selling out without proper public launch (heard that 70% are sold to its employees & business associates -- not sure how true it is though). I hate to admit that CES and its marketing agent (Savills) have done a great job in selling such a project at record-high price in the area, though I think they're unethical in their encouraging flippers that the developer offered the most favorable deferred payment scheme to-date (only 10% net before TOP) and agents informally guarantee for ready buyers to take over their loads.
Well, with the current uncertainty of the US subprime impacting financial markets, these flippers take very high risks this time and are real fools in my opinion. The Parc is sandwiched between express way and HDB buildings around it. Though a little closer to town area and facilities (by at most 1km), it is priced $100 to $200 psf higher than the nearly condos which are quieter and of significantly lower density. Let's see, I bet the flippers will get burnt soon.
Based on Urban Redevelopment Authority (URA)'s estimated price index of private residential property, prices rose 7.9% to 147.3 points in the 2nd Quarter 2007, compared with the 4.8% increase in the previous quarter (increased by 7.6% in Core Central Region, 7.9% in Rest of Central Region and 6.5% in Outside Central Region).
A lot of speculating activities are encouraged by the recent record high & hottest deals (such as The MarQ at $5100psf or the 3am queuing for Duchess Residences). Some people bought in early this year are excited talking about the >40% (on paper) gains...
If it continues to be crazy like this, I think it will repeat the 1996 - 1997 story again when anti-speculation & cool-down measures were applied and then the market over-corrected itself in the several years after. A progressive & sustainable increase is far better than this sharp uptrend. But the speculators deserve getting burnt.
I guess I won't continue like this --didn't mean to become a property agent :) one day. Anyway, it's the third of the 10-part series on 'The Sunday Times' for East Coast Road area. 
