Singapore Property Resources and Guides, HDB, Districts and Archived listings

Local Property News
Central region non-landed residential unit prices rise in July
In July 2016, non-landed residential units in the central region rose 0.7 per cent, after rising 0.9 per cent in the previous month. Condominium prices rose 0.2 per cent as a whole during July 2016, according to the National University of Singapore's (NUS) Singapore Residential Price Index (SRPI). Prices in the non-central region contracted 0.2 per cent during the same period.

Fitch: private property prices expected to dip further, but Singapore banks remain strong

According to ratings agency Fitch, banks in Singapore are capable of withstanding a downturn on the scale of the 1997-1998 Asian Financial Crisis, which saw a 45 per cent dive in prices of private homes. Fitch believes that Singapore banks will not be harshly affected by extreme dips in property prices as the banks have strong, disciplined underwriting standards, and their loan-loss reserve coverage is healthy at 113 per cent as of end-June this year. Fitch added that prices of private homes in Singapore will see a further dip as with a flood of new homes. The excess supply of private homes has led to an 11-year high vacancy rate of 10.4 per cent.

URA launches mixed development site, White site at Central Boulevard
A white site at Central Boulevard, a 1.09 hectare, 99-year leasehold plot of land designated mainly for office development integrated with residential, hotel or serviced apartments, has been launched for public tender by the Urban Redevelopment Authority (URA). Analysts expect the site, on the 2H 2016 Reserve list under the Government Land Sales Programme, to attract interest from developers even though there is a glut in office space. According to URA, the public tender has been put up after a developer submitted an application for the site with commitment of a minimum S$1,536,087,718 bid. This site has a maximum Gross Floor Area (GFA) of 141,294 sqm. A minimum of 100,000 sqm has to be dedicated to office spaces, and a maximum of 5,000 sqm can be allocated for retail, including shops and restaurants. The balance GFA can be allocated for additional office space, hotel, serviced apartments or for other residential uses. Only bids matching or higher than the minimum bid will be considered for the tender. Ms Christine Li, Director of Research at Cushman & Wakefield, expects bids for this site to range between S$1.54 billion and S$1.8 billion. The tender exercise closes at 12 noon, 8 November 2016.

MND revises Development Charges

The Ministry of National Development has amended the development charge (DC) rates for a six-month period of 1 September 2016 to 28 February 2017, following a half-yearly review conducted on the advice of the Chief Valuer. DC rates for Use Groups A (Commercial), B2 (Residential (non-landed)), and C (Hotel/ Hospital) have been raised, while there are no changes for DC rates for Use Groups B1 (Residential (landed)), D (Industry), E (Place of Worship/Civic and Community Institution, F, G and H. For Use Group A (Commercial), DC rates have risen by an average of 0.6 per cent. Out of 118 sectors, DC rates for 14 have increased between four per cent and five per cent. The remaining 104 sectors remain unchanged. For sectors one to six, as well as sector 11, which includes Rochor Road, Temasek Boulevard, Raffles Boulevard, Raffles Place and Marina Bay Financial Centre among others, the increment of DC rates was largest at five per cent.DC rates for Use Group B2 (Residential (non-landed)) increased by an average of 2.7 per cent, with the greatest increase of 12 per cent seen in sector 48, which includes River Valley Road, Martin Road, Martin Place as well as Mohamed Sultan Road among others. The revised DC will be implemented starting 1st September 2016, and will apply for cases which have been granted Provisional Permission (PP) or second and subsequent extension to the PP starting from or after 1st September.

Former HUDC Raintree Gardens put up for collective sale
Former Housing and Urban Development Company (HUDC) development Raintree Gardens, a river-fronting 175-unit housing development located in Potong Pasir, has been put up for collective sale, with a minimum asking price of S$315 million. Analysts believe this site will see strong interest by developers. Raintree Garden, with a land area of 201,405 sq ft, is a project consisting of two 12-storey mansionette blocks and one seven-storey mansionette block. The development is within close proximity of Potong Pasir MRT Station, and four stops from Dhoby Ghaut MRT Station. Mr Desmond Sim, Head of CBRE Research in Singapore and Southeast Asia told TODAY that while the purchasing process for Raintree Gardens under collective sale will be more tedious, it is a good alternate option to GLS. He added that the S$315 million quantum is not excessive, and expects to see big caps as well as joint ventures placing their bids. Mr Sim added that he believes the collective sale of Raintree gardens will be successful, following in the footsteps in the successful sale of Shunfu Ville.

Global Property News
Median US home prices rise for 48th consecutive month in July
According to data provided by Zillow, a real estate marketplace, the median price of homes across the US has increased for the 48th consecutive month. According to Zillow's July 2016 Real Estate Market Report, the median price rose to US$187,300 in July 2016, a 5.1 per cent month-on-month increase. The greatest price increases among the 35 largest metros came from Portland Oregon, up 15 per cent, followed by Dallas, Texas, up 11.9 per cent, and Denver, Colorado, up 11.3 per cent. While the price of homes has been rising since August 2012, it is still 4.7 per cent lower compared to the median peak of US$196,600 in April 2007. According to Chief Economist at Zillow, Dr Syenja Gudell, the rise in residential property prices over the past four years does not provide a clear picture of region specific trends over the past few months. Property markets in most regions were predominantly driven by a strong labour market compounded by limited supply. Other markets, such as the popular Pacific Northwest, are seeing an increase in jobs, attracting more residents, driving demand, adding to pressure on purchase and rental prices. Washington and New York have seen the slowest price growth. According to Managing Director at S&P Dow Jones Indices, David Blitzer, the housing sector as a whole is "in good shape", with the real estate industry and consumer spending aiding economic growth as business capital spending remains sluggish. According to a Reuters poll taken between 15 and 30 August, residential property prices in the US are expected to rise 5.2 per cent in 2016, more than twice the rate of inflation for the year, and expected to grow 4.6 per cent in 2017.

Post-Brexit: no sign of economic trouble for Britain; future economy remains uncertain

Residential property prices in Britain saw the highest growth in five months in August, increasing 1.1 per cent to an average of £206,145, according to Nationwide Building Society (NBS). Robert Gardner, NBS Chief Economist said to Bloomberg, the increase in property prices is a result of declining demand being matched by the market's supply-side weakness. Britain's chronic issues in residential housing supply has led to prices increasing even as demand is weak.While economists believe it is still premature to understand how Britain will deal with uncertainty arising from Brexit, more believe that the country can steer away from recession - a situation thought to be unlikely merely weeks ago. Initial figures show that Britain's economy is performing better than expected: retailers have reported that August saw their strongest sales in half a year, in part influenced by the weaker pound, which attracted more foreign buyers; gross domestic product (GDP) increased 2.2 per cent year-on-year in Q2 2016. Furthermore, approximately half of mortgage borrowers can expect to benefit from the interest rate cut by Bank of England on 4th August, and the equity markets of the country have risen. However, economists remain concerned that the current market performance might not continue in the longer-term as Britain's exit from the European Union leaves the country to deal with years of uncertainty. Chief Economist at Berenberg Bank, Holger Schmieding, told Reuters that Britain's ability to avoid a recession does not indicate much about its future. According to Charles Goodhart, Professor at the London School of Economics, there is no telling whether the future of Britain's economy will be alright.

Investors prefer offices in Australia as opposed to investment grade bonds

According to Real Capital Analytics, H1 2016 transactions of commercial property in Australia plunged 57 per cent to US$7.5 billion, compared to the same time period in 2015. This is the largest fall since H1 2008, and one of the steepest drop-outs of the top five investment markets of Asia. Australian offices are attractive to foreign investors as yields are approximately twice those in countries like Singapore and Hong Kong. London-based Senior Director of Analytics for APAC at Real Capital, said owners are reluctant to part with their high yielding assets such as Australian offices due to the current low-return environment. Australia is seen as a safe haven for investments due to the availability of many quality assets that can provide returns in a low-interest climate. According to Real Capital, overseas investors were responsible for 43 per cent of purchases in Australia during H1 2016, as compared to the 17 per cent of overseas investors in Japan and 28 per cent in China. Hong Kong and Singapore are the only countries out of the five largest markets with a higher ratio of foreign acquisitions. Priyaranjan Kumar, Regional Executive Director of Capital Markets for Asia Pacific at property consultant Cushman & Wakefield, told Bloomberg that investment in Australia's office sector is desirable as it provides long-term and stable yields by quality tenants. Furthermore, leases in Australia usually range between seven and 10 years, making it a stable long-term investment.

Singapore is Vietnam's third largest investor with FDI into Vietnam amounting nearly US$38 billion
To date, six Vietnam-Singapore Industrial Park (VSIP) projects implemented by Vietnam-Singapore Industrial Park Joint Venture Limited Company have brought in S$9 billion worth of foreign direct investment (FDI), and created 170,000 jobs. Other Singapore-based investors in Vietnam include Mapletree, which purchased the Kumho Asiana Plaza Saigon in district 1 of Ho Chi Minh City. Mapletree's assets in Vietnam are worth more than S$1 billion. Chief Executive Officer of Mapletree, Hiew Yoon Khong, said that the company will continue sourcing for completed projects of high-quality in Ho Chi Minh City, and also invest in office developments, commercial centres, as well as residential property such as apartments and serviced apartment buildings with local partners. Keppel Land also purchased a 40 per cent stake of Empire City project in district 2 for S$127.97 million. According to Singapore's President Dr Tony Tan, with cumulative Foreign Direct Investment (FDI) into Vietnam at around S$38 billion spanning more than 1,600 projects from ports to logistics, healthcare and real estate, Singapore is the third-biggest investor in Vietnam

For more District Guides, you can head over to iProperty.com Singapore.

With the establishment of the Vietnam-South Korea Free Trade Agreement last March, Korean business investors have started flocking-in Vietnamese markets while benefitting from import tariff discounts.
Leading Korean Entrepreneur and President of the finest provider of serviced offices, CEO SUITE, Ms. Mee Kim, is one of them. Just like other owners of South Korean firms, the serviced office business expert, Ms. Kim, has seen the potential of Vietnam as a business hub, by expanding the CEO SUITE network to Hanoi.
Since June 1, 2016, the CEO SUITE Hanoi Lotte Center opened its doors on the 29th floor of the East Tower of the stunning Lotte Center to Hanoi businesses - from entrepreneurs, small to medium-scale companies, to multi-national companies alike. CEO SUITE offers world-class and elegantly designed executive office suites for short or long-term lease, fully-equipped meeting rooms with breathtaking views of the city, "five-star hotel" standard reception area, VIP business lounge, service area for document printing, scanning and photocopying; business café with pantry facilities; and high bandwidth Internet WIFI access and modern telephone system.
As a one-stop office solutions provider, CEO SUITE offers customized services for businesses of every size - these include business set-up requirements, virtual offices (use of a professional business address for company registration and branding); receptionist and secretarial services; accounting and finance services; HR and recruitment services; and I.T. support services. Executive office suite rentals are also on flexible terms whether it be in terms of size, period of rental or pricing.
The CEO SUITE Hanoi Lotte Center is the first business center of CEO SUITE in Vietnam and the 18th location in its total network of 9 cities in 8 Asian countries.
The Lotte Centre is a prestigious landmark in Hanoi being the second tallest skyscraper in Vietnam and home to the international 5-star, Lotte Hotel. This iconic structure was designed by two award-winning companies: the Seattle-based Callison Architecture and London-based Benoy Architects.

To know more about CEO SUITE Hanoi Lotte Center, please visit: www.ceosuite.com or send an email to sales@vn.ceosuite.com.

For more District Guides, you can head over to iProperty.com Singapore.

6 September 2016, Singapore - BS Capital Group ("BS Capital") will be celebrating the topping up ceremony for Carros Centre, the largest Freehold Automobile Mega Hub in Singapore, on Wednesday, 7 September 2016. Knight Frank Singapore is marketing the lease and sale of the strata units within levels 3 and 5 of the mega development. Scheduled for completion by the first quarter of 2017, Carros Centre is an industrial integrated development located at 60 Jalan Lam Huat, within Sungei Kadut in the north region. The freehold strata-titled industrial development boasts over 2.3 million square feet of built-up area, spanning across 8 floors (basement 1 to level 7) and comprises a total of 383 strata units.
Zoned as Business 2 (B2-General) under the 2014 URA Master Plan, BS Capital envisioned Carros Centre to be a unique and mega Automobile Mega Hub, a one-stop integrated facility housing a comprehensive diversity of automobile-related activities and services. The mega hub is thoughfully-designed to house car service centres, automobile repair service facilities, body works and servicing workshops, parts and supplies dealerships, storage for second hand car dealerships and many more automobile-related trades. Distinctively designed with a column-free layout and driveway that includes a loading/unloading area in front of each unit, strata unit sizes range from 158 square metres to more than 1,000 square metres per unit, with the flexibility to combine adjoining units. With well-engineered details boasting high, functional specifications, Carros Centre even offers ramp-up access to all units, including 40-foot container access to the loading/unloading bay at the ground floor, as well as cargo and passenger lifts.
Strategically located within the northern industrial region, Carros Centre is well-connected to the rest of Singapore, drawing current and future demand for automobile services. The development enjoys a close proximity to three expressways - Bukit Timah Expressway (BKE), Seletar Expressway (SLE) and Kranji Expressway (KJE), as well as the future MRT Downtown Line at Bukit Panjang, and Johor Bahru via the Woodlands Causeway. Future growth plans in nearby Woodlands, Yishun and Sembawang are slated to raise demand for automobile services in the area.
Tan Boon Leong, Executive Director and Head of Industrial, Knight Frank Singapore comments, "Carros Centre, the largest freehold industrial property in Sungei Kadut area, will present a new industrial use format that is highly efficient in terms of land optimisation and progressive in space utilisation for the automobile industry. It will add a unique and first-mover dimension in shaping the future industrial landscape in Sungei Kadut, hence supporting future expansion plans in the north region." Alice Tan, Director and Head of Consultancy & Research, Knight Frank Singapore adds, "Industrial freehold strata-titled units have generally seen stable price movements over the last five years to Q2 2016. This is mainly attributed to the limited supply of freehold industrial properties as the government has stopped releasing freehold or longer-tenure industrial land to the market. Strata industrial units with freehold tenure, which is hard to find in Singapore, are likely to receive keen interest from industrial end-users, especially for well-located and high-specification developments."
Artist's Impression of Carros Centre

Source: BS Capital
END

Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank, together with its US alliance partner, Newmark Grubb Knight Frank, operates from over 417 offices, in 58 countries, across six continents and has over 12,000 employees. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants.Knight Frank has a strong presence in Singapore with a head office and two subsidiaries; Knight Frank Property Asset Management and KF Property Network. For further information about the Company, please visit www.knightfrank.com.sg.

For more District Guides, you can head over to iProperty.com Singapore.

Why go for a holiday when your own home is a personal retreat to rival the best resorts? One might imagine that's how the owners of this apartment feel. Designed by interior design firm Weiken, this relaxing apartment pays homage to nature, but with a fair share of luxury thrown in. Timber textures play a pivotal role in creating the down-to-earth feel of the space while polished finishes have been thrown in as a suitable contrast.
Project Type3-bedroom CondominiumFloor Area1,600 sqft
Text: Redzman Rahmat

Nature's CharmThe home feels very modern, but also offers a clear nod to rusticity. Avoiding anything too stark and pristine, the living area and its adjacent dry kitchen is wrapped in warm tones: the walls have been painted in a comforting latte colour, laminated joinery all feature the natural textures of honey-tone timber, and a bronzy feature panel adds an element of luxe while keeping things warm and welcoming. Another notable feature is the wall lighting feature that follows the abstracted form of a tree. It adds a playful nod to the apartment's design inspiration while keeping things tasteful.

First Impressions
The entrance foyer wastes no time in setting the tone in the apartment. It is cloaked in soft, sandy tones, not least because of the woodgrain laminate that has been used over built-in cabinets. In a clever play of balance, the design team incorporated mirrored accents on the cabinet fronts to break up the expanse of timber textures. Playing along with the look, the walls have been painted in a complementary biscuit colour.

A Night Out
Just beyond the living area is a luxurious outdoor deck. In the evening, this space is perfect for convivial gatherings under the balmy night sky with friends and family. Little needed to be done to this space. The only bit of decoration comes in the form of wall lighting that casts a graphical shadow on the wall.

Play Time
The only room that departs from the nature-inspired theme is the son's room. A veritable playground of colours, the boy's room is flanked by padded panels in solid hues. Even the study desk is spruced up in a trio of colours - yellow, red and blue. The bed is pushed up against the window and framed by overhead storage and a low platform with concealed storage for toys and other knick-knacks.

The Knowledge Tree
Even the study, though associated with work, has been treated as a retreat for the senses. The timber textures that were present in the rest of the apartment are introduced here in the form of a generous work unit for two. Keeping things fun and casual, a light feature in the form of a graphical tree adorns the wall.

"The walls have been painted in a comforting latte colour and laminated joinery all feature the natural textures of honey-tone timber... keeping things warm and welcoming."

Designed by Weiken.com

Visit

for more inspiring home designs.

For more District Guides, you can head over to iProperty.com Singapore.

Local Property News
MAS tweaks mortgage refinancing rules to ease debt burdens of homeowners
On 1st September 2016, the Monetary Authority of Singapore (MAS) announced the easing of mortgage refinancing rules aimed at helping homeowners ease their debt burdens. The tweaks to the rules mean that existing mortgages will be exempted from the 60 per cent cap on their total debt-servicing ratio. However, the borrower has to follow a debt reduction plan with a financial institution, financing a minimal of three per cent of the outstanding balance within three years as well as successfully undergo the financial institution's credit assessment. The change is a response to feedback from borrowers who were unable to refinance their existing property loans due to the 60 per cent Total Debt Servicing Ratio (TDSR) cap. The Managing Director of the MAS, Ravi Menon, explained that the relaxed mortgage refinancing rules will help existing homeowners ease their debt burden without leading to greater demand for housing loans.
According to Eli Lee, Lead Analyst at OCBC, the tweaks were meticulously planned and conceptualised and will help provide existing borrowers with greater credit stability. However, the rating for Singapore's residential property market remains "neutral", with property prices expected to slide further for the Financial Year of 2016-2017. The government has repeatedly declared that it is premature for cooling measures to be relaxed, even as home prices have dipped 9.4 per cent from the 2013 peak.

Current volatile market increases vulnerability of smaller developers

A S&P Global Ratings report, titled 'Is Singapore's Real Estate Sector A Safe Haven In The Local Currency Bond Market?', states that smaller property developers, with their high debt and weaker financials, are more exposed in an uncertain market. The report states that developers have turned to debt to finance their growth due to the low interest rate environment over the past few years. According to S&P Global Ratings credit analyst Chan Kah Ling, there is a very high level of leverage among developers in Singapore, but the smaller players are more susceptible to financial suffering as they have limited operations, constrained financial flexibility and weak liquidity. She added that the ability to secure funding will be the main differentiator for such smaller developers in the current volatile market.
Real estate investment trusts (Reits), in comparison, are better placed due to their steady cash flows, lower leverage and prevalence of unencumbered assets. Furthermore Reits have healthy margins and strong interest coverage and the Singapore regulatory framework for Reits is supportive of sensible leverage policies. According to the report, almost half of the more than S$10 billion corporate bonds maturing by 2017 are accounted by the real estate sector. Some of the smaller developers that might be experiencing a liquidity tightening have almost S$1.4 billion currently outstanding in bonds. The report further states that the influence of larger property players in Singapore should be able to mitigate the downside risk in the domestic bond market as they have better and flexible finances as well as more funding options to overcome the short-term market weakness. Overall the real estate sector in Singapore should be able to stay robust in the face of market volatility.

HDB Awards recognises design and construction excellence of public housing projects

This year the Housing Development Board's (HDB) annual construction awards recognised 23 projects by architectural consultants and building contractors for their excellence within their fields of design and construction. One of the winners was a project near Margaret Drive, SkyVille @ Dawson, which had community spaces designed to resemble parks, where residents could connect with other residents. Another award-winning project is Waterway Ridges, handled by Surbana Jurong Consultant, where the site was undulated to form a terraced landscape by staggering the blocks in terms of orientation and height. This allowed more units to have a view of Punggol Waterway, as well as give the impression of "ridges". This is also the first public housing project that incorporated "water-sensitive" design on a large scale, including a network of vegetated swales that are environmentally sustainable, bio-retention basins, as well as different features that assists in treating surface run-off.

Global Property News
Housing prices in the US expected to continue rising in 2017; luxury residential units oversupplied

According to CoreLogic, a leading global property information, analytics and data-enabled solutions provider, property prices in the United States rose six per cent year-on-year in July 2016 and are expected to grow at a similar rate next year. Month-on-month values of homes rose 1.1 per cent in July across the country. CoreLogic expects a further increase of 0.4 per cent in August, and year-on-year home prices to increase 5.4 per cent by July 2017. Chief Economist at CoreLogic, Dr Frank Nothaft, expects home prices to continue rising in the year ahead if mortgage rates stay relatively low while the number of jobs continues growing.
Despite optimism in the US housing market, luxury residential property in Manhattan is facing a different situation. To encourage the sale of luxury residential units, buyers have been offered discounts of up to five per cent, and developers have been adjusting their sales plans to help their projects gain more traction. In 2016, New York will have launched 3,500 more new apartments, resulting in stiffer competition for sales. According to Corcoran Sunshine Marketing Group, the industry leader in planning, design, marketing and sale of new luxury residential developments, developers have delayed adding to the supply, as the number of units expected to enter the market this year is 38 per cent lesser compared to January estimates.

Average property prices in Auckland surges beyond NZ$1 million for the first time

The average price of a residential property in Auckland, the largest city in New Zealand, has risen above NZ$1 million for the first time in history. According to government property research agency Quotable Value, the price for a home in Auckland rose 16 per cent to NZ$1.01 million year-on-year, an 86 per cent surge compared to 2007. The property boom in Auckland is a result of record immigration, relatively low interest rates and a supply shortage. However, Jan O'Donoghue, QV General Manager, observed that while the average value of homes in Auckland rose due to increased activity in advance of the announcement of new lending restrictions which will take effect on 1 October, raising deposit requirements for residential property investors, market activity has slowed in the past few weeks.

Spire London to be officially launched in October 2016; home building sector gets boost post Brexit
Chinese developer Greenland Group will launch Spire London, Western Europe's tallest residential tower, in October 2016. Spire London, a 235.145 metres high and 67-story residential project situated in the Docklands, will be the tallest in the UK and Western Europe. The project has 861 luxury apartments comprising 765 suites, ranging from one-bedroom to three-bedroom apartments as well as three-bedroom duplex penthouses. The units, with 999-year leases and starting from £595,000, are being sold by international agents including CBRE and Jones Lang Lasalle. According to Senior Director at CBRE, Matthew Leitch, the record-setting height of the project, together with unparalleled views and dynamic architecture sets the Spire London apart from other projects in the Docklands. As a result, buyer interest is expected to stem from end-users as well as local and overseas property investors.
As Britain prepares to leave the European Union, the British government will be announcing a £3 billion house building fund, aimed to help developers by providing cheap loans to improve the home building sector. Existing schemes such as the £525 million builders fund and a £1 billion large sites infrastructure programme are expected to be incorporated in the new building fund to help developers construct new homes. The fund is believed to be target small and medium-sized developers by providing cheaper loans or financial guarantees.

For more District Guides, you can head over to iProperty.com Singapore.

- Australian cities to lead regionally whilst Singapore to continue to see correction: Prime Office Rental Growth Forecasts.- Asia-Pacific cities experienced highest rental growth; Hong Kong skyscrapers the world's most expensive: Skycrapers Index- Hong Kong, Tokyo & Singapore - amongst the top 5 most expensive cities to own prime office space.
15 September 2016, Singapore - Knight Frank, the independent global property consultancy, launches Global Cities: The 2017 Report, examining the market performance of 31 global cities across the world in light of three major trends shaping the times:
• Negative interest rates have reduced investors' expectations on what constitutes anacceptable return, which is drawing capital towards real estate.• Despite the volatile economic environment, the avalanche of technological innovationcontinues to drive demand for property on a global scale.• Fast-growing cities are centre stage in the digital and creative revolutions, and in many of those at the forefront, supply is not keeping pace with demand for both commercial and residential real estate.
Prime office rental forecastsOf the global cities analysed, 12 are in Asia-Pacific - a region continuing to grow in economic importance globally. The prime office rents forecast from Q4 2015 to Q4 2019 however show a huge range of future performance prospects:• Asia-Pacific markets show a huge range of growth prospects, with Sydney projected to see the strongest growth of 27.5% and Singapore the weakest with a forecast rental decline of 14.0%.• Kuala Lumpur and Beijing are also expected to experience negative growth at -1.1% and - 4.4% respectively.• Shanghai (19.2%), the only Chinese city on the top 10 chart, sits in the sixth position, a notch down from Melbourne (19.3%).
Nicholas Holt, Head of Research, Asia Pacific, Knight Frank Asia Pacific, says, "Our prime office rental forecasts stretching to the end of 2019 offer an insight into how demand drivers will interact with supply dynamics over the coming cycle."Sydney, along with Melbourne, continues to see diversified demand drivers, as the Australian economy continues to show resilience despite the slowdown in demand for commodities; while Shanghai has boomed on the back of strong growth from technology related companies. "In many ways the weakest projections come down to supply, with Kuala Lumpur, Beijing and Singapore markets all seeing a significant amount of new supply come to the market that new demand is being challenged to absorb."
With prime office rentals in Singapore seeing six consecutive quarters of decline to Q3 2016, Alice Tan, Director and Head of Consultancy & Research, Knight Frank Singapore, explains, "Singapore's office market continues to be largely impacted by economic headwinds and cautious business sentiment. The high influx of about 6 million sq ft GFA of office spaces island-wide for 2016 and 2017 are envisaged to weigh on rentals in the short term. "Beyond the near-term pressures, the medium-term prospect for the office market is expected to improve beyond 2018 as new supply tapers off substantially and demand potentially supported bySingapore's rising status as a key global financial and business hub." Between landlords and tenants, what are the strategies adopted in today's office market in Singapore?
Calvin Yeo, Executive Director and Head of Office Advisory, Knight Frank Singapore, highlights, "Existing businesses are taking advantage of the market situation to relocate to upcoming or newer buildings with some taking the opportunity to restructure their current leases as landlords compete to attract and retain tenants. Although such relocations cater for future headcount growth, they are largely without exponential expansion in size given the enhanced floor plate efficiencies of the latest buildings and fit-out configurations.
"The vacancies in buildings arising from these relocations would in turn put pressure on overall rents but offer opportunities in buildings that were previously well occupied. The increasing competitiveness in office occupancy costs would also bode well for multinational companies looking to grow or set up their footprint in Singapore."

Capital flows
Neil Brookes, Head of Capital Markets, Asia Pacific, Knight Frank Asia Pacific, comments, "The lower-for-longer interest rate environment around the world continues to accentuate the attractiveness of prime real estate in the world's leading business hubs. It is the dynamic cities attracting new sources of growth, including the wave of creative and technology industries that continue to be high on long-term investor's wish lists."

Brookes continues, "Globally, New York and London remain the largest markets for overseas capital by some way, the success of these financial giants in attracting institutional capital from around the world is down to the huge liquidity and their strong occupier fundamentals. In the UK's capital, despite near term jitters following Brexit, pricing looks to be relatively unchanged and we expect it to continue to be one of the key global markets. In Asia, Shanghai saw the largest amount of foreign capital invested in the last 12 months, and as the market continues to mature, this is offering buyers attractive growth prospects in China's financial capital."
Capital values
Three of the five costliest cities globally are in Asia-Pacific, with Hong Kong boasting the highest capital values for prime central office space, followed by Tokyo in second place and Singapore in fifth.
Ian Loh, Executive Director and Head of Investment and Capital Markets, Knight Frank Singapore, highlights, "The flurry of big-ticket transactions made by foreign investors (the sale of trophy office asset Asia Square Tower 1 and Straits Trading Building) testifies to Singapore's appeal in office asset ownership and confidence in the Singapore's long-term stability. Long-term capital preservation and appreciation would be the main selling point for Singapore's office assets." Brookes adds, "The analysis shows good value in major US cities when compared to their Asian and European counterparts. Even in the more expensive, supply constrained cities of New York and San Francisco, the differential in price per square foot versus Hong Kong and Tokyo looks attractive considering solid US economic prospects over coming years."With significant caution still prevailing around some secondary markets, investors are generally focused on liquidity, stability and security of income. For this reason, we expect the global gateway cities to remain as key investment destinations over the coming 12 months."

Skyscraper Index
The Skyscraper Index examines the rental performance of commercial buildings over 30 storeys. Looking at the performance of skyscrapers in the six months to Q2 2016:
• Asia-Pacific cities experienced the highest rental growth across the 23 global cities tracked.• Skyscrapers in Shanghai recorded the strongest rental growth in the first half of 2016, at 7.6%, followed by Sydney (6.5%), Hong Kong (5.9%) and Taipei (5.7%).• Singapore sits at the bottom of the chart with a decline of 7% attributed to significantupcoming new supply and a slowdown in the local economy.• Hong Kong remains the most expensive city to rent a prime office space, at US$278.50 per sq ft. This is significantly higher the runner-up New York (Manhattan) where rents have reached US$158 per sq ft.

Holt comments, "At the mid-point of the 2016, the global skyscraper story really has an Asia-Pacific flavour, with the top four performing cities in terms of rental growth situated in this region. "Home to the largest cluster of super tall buildings in mainland China and the tallest skyscraper in the region (Shanghai Tower) - Shanghai's skyscrapers saw the strongest rental growth rates over the first six months of the year. Tight vacancy rates in the city's Lujiazui district are likely to further encourage rental growth over the coming months. "In terms of actual rental levels, Hong Kong's skyscrapers remain the highest in the world, and with demand likely to outstrip supply for the foreseeable future in the city's central business district Central, we expect the city to retain its top position in the Index."
END
To download the report, please click: www.knightfrank.com/globalcities

For more District Guides, you can head over to iProperty.com Singapore.

Chatuchak, an area not unknown to most Singaporeans who have been to Bangkok at least once. Famous among both tourists and locals for its sprawling market, Chatuchak market covers an astounding 70 Rai (27 Acres) and is known to be one of the largest weekend markets in the world, attracting more than 400,000 visitors every week. (Source: Chatuchak.org)
However, the market is just one aspect of Chatuchak, and Chatuchak has plenty to offer not only to locals living in Bangkok, but also to investors looking for an ideal location to cash in on the demand from Bangkok properties.
Already considered a fast-emerging residential area in Bangkok, Chatuchak has also been named as one of the most liveable neighbourhoods in Bangkok by the expat website "bk.asia-city". It is a popular choice for locals and expats who wish to live in a neighbourhood that allows ample recreational activities, while affording at the same time accessible and convenient travel to the downtown area. (Source: bk.asia-city)
The area hosts an abundance of green spaces for recreational and entertainment purposes, which is always a draw in greenery-scarce Bangkok. Parks such as Chatuchak Park and Suan Rot Fai offer residents and visitors plenty of options when it comes to spending quality relaxation time, including enjoying a picnic in the park, kayaking in the river, or taking a stroll in Bangkok's only butterfly garden and insectarium in Suan Sirikit.
When it comes to food and shopping, the options are limitless as Chatuchak market itself comprises over 15,000 shops and outlets selling anything from food and ingredients, to home furnishings and antiques, all at local pricing. Aside from the market, air-conditioned malls such as the 150,000 square foot Union Mall allow locals to fulfil their shopping needs in air-conditioned comfort. Many trendy cafes and restaurants are also located around the area that will satisfy the craving of any foodie without them even having to leave the neighbourhood. (Source: Bangkok.com)
Travelling to and from the area is also convenient and hassle-free as it is serviced by both the BTS and MRT lines, interchanging at the Mo Chit / Chatuchak interchange. This vital link allows residents living in Chatuchak to travel anywhere within the city without having to change services and most importantly, allows residents to avoid the notorious jams so prevalent on the city's roads. It is also only one of the two areas which benefit from the Bus Rapid Transit (BRT) system which integrates a separate bus lane into the road system which is inaccessible to other vehicles. This allows buses to also serve as a rapid transit system to quickly transport large number of commuters to various areas.
Notably a vibrant area with endless draws, it is not difficult to see why Chatuchak has earned the title of most liveable neighbourhood in Bangkok. However, the reasons why developers are taking note of Chatuchak are not just because of what is already there. Rather, it is the potential of what future plans could hold for Chatuchak that have kept the attention of many investors on this area.Just under a kilometre away, a huge development is planned to take place that will revolutionize not just the Thai economy, but also those of other ASEAN nations like Singapore, Malaysia, and Cambodia. Driven by the development of the Trans-Asian Railway, the planned Bang Sue complex is set to utilize Thailand's central location to become the new regional hub for transport and businesses in the entire ASEAN region.

The complex will cover approximately 120 acres and will be divided up into different zones. Around 14 acres of land will be set aside for use as a complete business hub with hotels and a food plaza for tourists and business. 30 acres will transform into Bangkok's latest retail and wholesale commercial area that will service the entire ASEAN region, while another 41 acres will be developed into a sustainable town that is smart, healthy, and vibrant. The remaining areas will be allocated to building new transport infrastructures or upgrading existing ones to ensure the smooth operation of Bang Sue Complex. (Source: The Nation, Bangkok's Independent Newspaper)
Development of the area will also see the current existing station transform into the centre of railway and transportation for Bangkok and the entire country, serving not just as an interchange for the BTS and MRT lines, but also as a terminal for various high speed rail links to Chiang Mai, Hua Hin, and Nong Hai. The current Airport Rail Link (ARL) from Suvarnabhumi Airport will also be extended to Bang Sue Grand Station and eventually connect with Don Mueang airport to provide even greater accessibility between all major travel centres in Bangkok.
The entire development is estimated to be completed in 2023. However, investors recognizing an opportunity to cash in on this potential are swiftly moving in. According to a report released by Knight Frank, condominium prices near the planned complex have already grown by an average of 6.5% per year since 2011, and are look set to continue climbing especially once the Bang Sue Grand Station and railway systems are completed.
Furthermore, at least 80% of the available units in the nearby areas have already been sold. Some to investors who see keen potential of the area to experience a growth in property prices similar to other Bangkok areas such as Asoke, Phrom Phong, and Ratchadamri. (Source: Knight Frank)
As with any investment, investors who catch the opportunity early are the ones who stand to benefit. While Chatuchak may not be an iconic locale that comes to an investor's mind at present, planned developments in the area have certainly made it a location to look out for.

For more District Guides, you can head over to iProperty.com Singapore.

Local Property News
URA tweaks methodology for calculation of property price indices
The Real Estate Developers' Association of Singapore (Redas) has announced that the Urban Redevelopment Authority (URA) is changing the methodology used to calculate private-property price indices. Starting from September 2016, delicensed projects - projects that have completed construction with individual strata titles issued to property buyers - will have to submit their net prices rather than their overall transacted price. Developers of licensed projects have been regulated to provide the same information since May 2015. This change takes into account discounts and incentives provided by developers. Prior to the change delicensed projects were not expected to provide sales data, such as a breakdown of incentives provided to buyers. As a result, quarterly indices calculated by the URA might have provided inflated prices since it does not factor in benefits offered by developers. According to a URA spokesperson, the amendment is aimed at ensuring that the property price index reflects property price movements more accurately. However analysts that TODAY spoke to, including OrangeTee's Head of Research and Consultancy, Mr Wong Xian Yang and Chief Executive of Century 21 Mr Ku Swee Yong, said that the tweaks will unlikely have a big impact on the overall index. Mr Wong mentioned that in Q2 2016, delicensed private home transactions made up approximately 27 per cent of total resales (599 transactions) in the Core Central Region (CCR), representing a small percentage of the 4,550 units sold in the combined primary and secondary markets in the quarter. Mr Ku added that it is still beneficial for the public to have access to net prices in order to make better-informed decisions.

Singapore's luxury property market sees greater interest from Indonesians

Demand for Singapore's luxury residential units from wealthy Indonesians has seen a surprising increase. From the start of the year to August, Indonesian nationals purchased 30 homes priced at S$5 million or higher, an increase of almost four times the eight transactions registered in 2015. According to Cushman & Wakefield Inc, Indonesians purchased 189 properties of varying price groups in H1 2016, a 23 per cent year-on-year increase. Property agents believe the surge in purchase activity matches a recently passed law in Indonesia, providing tax amnesty for tax evaders to declare their past income. Indonesians are purchasing property in Singapore to evade the authorities, hoping that the implementation of new global tax reporting requirements by Singapore will require the country to report on assets held in banks and not other investments such as real estate.Not all Indonesians purchased residential property in Singapore to evade taxes. Some buyers see the value of investing in Singapore's prime property areas as property prices, especially for units along Orchard Road, reached a low at the end of 2015,. According to Propnex Realty, a company handling sales for OUE Twin Peaks development located along Orchard Road, the developer sold close to half the 86 units in the first batch at approximately S$4 million, with Indonesians accounting for the majority of transactions made by foreigners.

HDB reveals Masterplan for Tengah estate featuring Singapore's first car-free town centre
The Masterplan for the Housing Development Board's (HDB) newest 700ha Tengah estate, approximately the size of Bishan, was announced by Minister for National Development Lawrence Wong on 8th September. The Tengah estate, dubbed as the "Forest Town", will have Singapore's first car-free town centre allowing residents to get closer to nature. The first batch of HDB units is expected to be launched starting 2018, and the entire estate is slated to be completely developed in 20 years. This estate has the potential to house approximately 42,000 new homes spread over five housing districts - Plantation, Park, Garden, Brickland, and Forest Hill, with roughly 70 per cent made up of public housing. These districts will be designed according to each town's identity. The Plantation District will be the first to be developed, and will feature a community farmway that stretches across housing precincts, as well as space for community gardening and urban farming. The HDB plans to construct an East-West corridor through the town, integrating with town greenery as well as certain existing vegetation, after conducting environmental, topological and hydrological studies on the area. Roads will be constructed beneath the town centre, with vehicles running underground. Once the estate reaches critical mass, the town centre will be car-free.
Tenants opt for newer, bigger and cheaper office developments
According to a Knight Frank LLP-compiled report, rents for offices situated on higher levels of Singapore's skyscrapers dipped seven per cent in H1 2016 to S$775 per square meter. Older Grade A office buildings are feeling the pressure from newer, larger office spaces available at lower rents. Vijay Natarajan, a RHB analyst, said newer prime office projects such as Guoco Tower and Marina One have secured higher pre-commitment levels of more than 70 per cent and 35 per cent respectively.However, Natarajan noted that the positive pickup rate for new office developments is the consequence of tenants shifting to capitalise on bigger and newer office spaces at a lower price. As a result, he expects older grade A office buildings to deal with the current trend through asset enhancement initiatives or by leveraging on the strong performance of office building transactions by putting the building for sale.

Singapore is Asia's most sustainable city

The Sustainable Cities Index 2016 compiled by the UK's Centre for Economic and Business Research (CEBR) for Arcadis, a design and consultancy firm, ranked Singapore as Asia's most sustainable city and second globally, behind Zurich. The index analyses countries based on the three pillars of sustainability - social, environmental and economic. 32 indicators are categorised under the three sub-indices. According to Eugene Seah, Arcadis' City Executive Director, all sectors in Singapore are looking for ways to be more sustainable. Despite being ranked highest in the economic and environmental sub-indices, Singapore is relatively poorly ranked in terms of the social sub-index. Singapore's poor placement for the social sub-index stems from the country's long working hours and high cost of living, according to Graham Kean, Asia-Pacific head of client solutions at Arcadis.

Global Property News
Sluggish growth in UK property prices; Europe's distressed real estate assets
Residential property prices in the United Kingdom (UK) showed a small increase in August. According to Acadata and LSL Property Services Plc, the price increase is a result of sluggish recovery following the UK's tax increase as well as the Brexit outcome. Reports from Acadata and LSL Property Services PLC show that on average, residential property prices increased 0.1 per cent to £292,921, matching the pace recorded the month before. Year-on-year, prices rose 4.3 per cent, the weakest price growth in three years. In Europe, distressed real estate assets are being cleared at a slower pace. According to Evercore Partners Inc, investors delayed clearing up soured loans and troubled assets due to concerns surrounding the Brexit vote. In the year to August, 24.4 billion Euros worth of soured and troubled assets were sold, 39 per cent less compared to the same time period in 2015, according to Evercore Partners Inc. However, Managing Director of Real Estate Portfolio Solutions at Evercore in London, Federico Montero, said real estate deals including loan sales might return to the market in H2 2016.

United States the most searched destination for international property investors; Manhattan's rental market slows

The United States (US) is the most searched destination for international property buyers in August, grabbing top honours for the sixth time in eight months according to TheMoveChannel.com. The Top of the Props report by TheMoveChannel.com shows that the US attracted 8.1 per cent of all inquiries, jumping from third place in July to reclaim the top spot from Spain. Dan Johnson, Director of TheMoveChannel.com, explained that the strong demand for US property stems from the country's residential property market offering strong capital appreciation complemented with low mortgage rates as well as stable employment growth with limited housing supply. Buyer interest was further fueled by weakening of the pound and euro against the US dollar due to Brexit.
Despite greater interest in US residential property, apartments in New York saw zero rent growth in August, an indication that landlords' ability to increase rents has waned. In August median monthly rent for an apartment was US$3,399, one dollar less compared to 2015. Furthermore, data provided by appraiser Miller Samuel In. and brokers Douglas Elliman Real Estate show that the number of rental listings increased 40 per cent compared to the year before. According to the President of Miller Samuel, Jonathan Miller, demand for rented apartment is still present. However, landlords are forced to give tenants more discounts to ensure their apartments do not end up empty as competition intensifies due to newly-constructed towers adding more supply to the market. At the end of August, Manhattan's rental market had 7,478 rentals - the second-highest in a month since April 2009. A further 5,675 units will be added to Manhattan's rental inventory according to Citi Habitats, and rental prices can be expected to further decrease as a result.

Slowdown in Malaysia property price growth as buyers face financing issues

In H1 2016, Malaysian property sales grew 13 per cent, 39 per cent less than the 52 per cent growth in H1 2015. The slower growth resulted from lower demand and end-financing issues faced by buyers. According to Datuk Seri FD Iskandar, President of Real Estate and Housing Developers' Association, the number of first-time home buyers dipped 13 per cent in the first half of this year. He commented that while the property developers financing scheme aims to assist homebuyers facing financial issues, it is unlikely to be useful as the hefty interest rate ceiling of 12 per cent per annum for borrowers with collateral and 18 per cent per annum for borrowers without collateral will push away those who need help. While homebuilders have to seek financing to provide the loans, FD Iskandar suggests charging interest to only cover the cost of borrowing for homebuilders to ensure that those who require help can get it.
Transfer tax on non-Canadian buyers causes Vancouver's market to shrink

According to Sothesby's International Realty Canada, the number of property transactions in Vancouver of at least C$1 million plunged 65 per cent year-on-year in August after a 15 per cent transfer tax on property transactions by non-Canadian buyers was implemented by the city government on 2 August. On the other hand, the number of luxury residential units transacted in the suburbs of Toronto increased to 1,459 units, twice the number of transactions in the previous month. Sotheby's said international investors are now moving their capital away from Vancouver to Toronto, and added that Montreal will see greater foreign investments. The newly-implemented tax had the greatest impact on the condominium market in Vancouver. Year-on-year, August sale of units priced at minimum of C$1 million dipped 49 per cent after increasing by 29 per cent in the 12 months to July. For residential units valued at C$4 million and above, the number of transactions in August reduced to 14 units, a 46 per cent dip. Toronto saw year-to-year transactions in August increase by 69 per cent, and the brokerage expects the luxury residential property market to perform the strongest among Canada's cities.

For more District Guides, you can head over to iProperty.com Singapore.

- Traditional office space: London leads the ranking whilst Bangkok offers the greatest value- Co-working space: Asia-Pacific cities offer largest cost-savings vs. traditional space, with Brisbane leading
15 September 2016, Singapore - Knight Frank, the independent global property consultancy, launches new research as part of the Global Cities: The 2017 Report, examining the costs of leasing and fitting-out 600 sq ft of office space** in the tech and creative districts* of the world's leading cities.
Highlights of research results:
Traditional office space:• Of the 27 cities analysed including nine from Asia-Pacific, London tops the rankings as the city where tech start-ups face the highest real estate costs. This is followed by New York and San Francisco.• Hong Kong, Beijing and Singapore are the only Asian cities in the top 10 chart. For a tech startup setting up in these Asian cities, the rental costs would be over 40% less than London.
Co-working space:• For tech start-ups opting for the co-working spaces based on a four-desk collaborative open plan environment, Brisbane offers the best cost savings, offering an astounding 79.4% discounts versus traditional office space.• The top five cities offering substantial cost savings in a co-working environment after Brisbane are all from Asia-Pacific: Beijing (74.1%), Bengaluru (72.0%), Bangkok (66.2%), and Sydney (64.5%).• For Bangkok, tech start-ups face the lowest real estate costs globally, whether looking at traditional space or co-working space.
Nicholas Holt, Head of Research, Asia Pacific, Knight Frank Asia Pacific, says, "With technology and creative industries moving to the heart of office markets globally, it is perhaps unsurprising that the top three tech districts in our rankings represent the cities with the largest technology clusters. London, New York and San Francisco have all benefitted over the last decade from the huge growth in these sectors, as the brightest and the best entrepreneurs look to cluster into districts where they can benefit from the cross-pollination of ideas and mutually beneficial synergies.
"In Asia, it is the Chinese cities of Beijing and Shanghai that are seeing some of the most innovation and creativity in the technology sector, with companies like Tencent and Alibaba taking significant amounts of office space in the major Tier-1 markets.
"In all of the Global Cities, co-working spaces, in their various guises, continue to be an attractive option for tech start-ups - offering the flexibility, support and infrastructure for nascent companies. The cost savings offered by such a work environment can also be very compelling, with co-working spaces in the Asia-Pacific region offering some of the most significant cost differentials when compared to traditional office space.
"Whether internationally renowned co-working operators such as WeWork - which has now opened in this region - or more local incubators or co-sharing spaces, there is an increasing amount of options for tech and creative start-ups. The possibility of working shoulder-to-shoulder with other like minded start-ups has proved to be a significant draw that appeals to these types of industries.
"With the rate of technological change increasing and adoption rates moving at a faster pace, technology and creative industries will be at the forefront of much office demand over the coming years."
Calvin Yeo, Executive Director and Head of Office Advisory, Knight Frank Singapore, adds, "Going forward, the providers of technology and creative business park space in Singapore cannot assume that the demand for traditional leases will increase with the growth of the sector. It is conceivable that whilst start-ups led the demand for co working centres, post start-ups could evolve the demand for hybrid co-working buildings and districts offering a combination of fixed and flexible lease arrangements in a collaborative environment."

To download the report, please click: www.knightfrank.com/globalcities

For more District Guides, you can head over to iProperty.com Singapore.

Enter The Foreign Talent
On 20th May 2016, Standard Chartered became the first foreign bank to step into the arena of Deposit-pegged Mortgage Rate packages, or DPMR for short. This playing field was first pioneered by DBS with its FHR (Fixed Deposit Home Rate) packages in June 2014. A year later towards the close of 2015, OCBC strategically adopted its own version called the 36FD MR (36 Months Fixed Deposit Mortgage Rate) to capture the new growing market segment under this unique pricing structure. Finally, in April 2016, UOB, the last of our "Big 3", launched the 36 FDPR (36 months FD Property Rate).
Perhaps, in an attempt to prevent the very real possibility of a local domination, and gradual or maybe even rapidly increasing dilution of home loan market share, SCB throws in a rather heavy-looking "counter punch" with its 48M Fixed Deposit Board Rate (48M FDR for short).
The 48 months FD rate for SCB is interestingly the lowest Reference Rate among all the DMR packages, although it is also the deposit rate with the longest tenor. Coupled with other attractive package benefits including no lock-in period and legal subsidy, it seems like our foreign friends are not only trying to win the round here, but also to capture significant market share with a "knock-out" package and win the match.If the pricing competition gets any stiffer, either with the evolution of existing packages, or with the introduction of new variant packages from "new" competitors, it should generally benefit us as customers. Hence, it might be a good time for us to compare the existing DPMR packages against one and the other. Looking back on the origins and justifications for these packages, it might also be worthwhile to measure them categorically against past favorites packages such as the SIBOR, and also the evergreen Fixed and Board rate packages.

The table above compares the 4 existing DPMR packages on some of the important features that are typically found in all loan packages in Singapore (e.g. lock-in periods, legal subsidies for refinancing etc). SCB has the lowest all-in rate currently. SCB and DBS packages have no lock-in periods as compared to OCBC and UOB. There is no jump in the spreads charged by SCB and DBS as well after year 3. However, both OCBC and UOB offer pretty decent legal subsidies for refinancing loans that are higher than SCB while DBS does not offer any legal subsidies.
A Declining SIBOR
By now, most of us may have come across various articles covering DPMRs and would consequentially have the following common understanding; that the need and subsequent growth of its popularity was birthed in the face and fear of raising interest rates, or rather the rising SIBOR rate. I am not here to state the obvious justifications for DMRs Vs SIBOR again, but rather offer an alternative opinion. While it is true that SIBOR did rise during the better half of 2015, even before the US Fed raised interest rates for the first time since the 2008 Global Financial Crisis in December 2015, the same SIBOR has come off from its peak as well in March 2016.
So why has the SIBOR come off? Is it because the not too long ago market expectation for the US Feds to raise rates at least 4 times this year has been watered down? Is it because the USD has weakened against the SGD since its peak in Jan 2016? It may be important for us to be updated on the current status for SIBOR, and should the direction (for its trend) and/or expectations for its behavior changes, understand the reasons behind the movements.
Why? Because if the global economy doesn't improve significantly over the foreseeable future, if US Fed decides to halt any future interest rates hikes or even go reverse with rate cuts instead, if the USD weakens further, if the SIBOR continues its current downtrend, then the SIBOR packages renders a reconsideration. Since it is also widely perceived that the SIBOR is more volatile than the FD rates, what can rise up fast can, in theory, come down as quickly too.
On the other hand, while the DPMR packages have been touted to use the relatively more "stable" (against SIBOR) and relatively more "transparent" (against other Board rates) FD rates, these are still board rate packages. What it means is that the FD rates are still ultimately determined internally by the respective banks.
Just food for thought; it is common knowledge now that the DPMRs are becoming more and more popular, which is why there are more and more players coming in to compete. Just imagine this: if there are more mortgages being captured under these schemes because of the low FD rates being used in their pricing, and these same low rates will most likely not attract more depositors to place more 18, or 36, or 48 months FDs, the motivation or incentive to increase the FD rates may get higher as the gap between potential revenue from an increase in FD rates and the cost of paying depositors in similar tenures gets bigger. A very interesting balancing act of the future if this argument is relevant. Still Different Strokes for Different Folks
If only life was simpler, and we do not have more and more 1st World problems, perhaps the musical chairs of SIBOR to DPMRs to Fixed Rates to SIBOR again and so on, could be better played. But because economic conditions are ever changing, even more so and more frequently year on year. Because we all may have differing views on what lies ahead, I would hate to state the obvious but no one size fits all. Fortunately, some of us may be able to rely on our trusted advisers to help us structure our loans and select the most suitable packages. We may also be heartened to find that there is seemingly an evolution of new packages with more competitive pricings but fewer "catches".

For more District Guides, you can head over to iProperty.com Singapore.

Local Property News
Private property prices fell in August; downward trend expected to continue

Private property sales dipped 58 per cent month-on-month compared to July, and 18 per cent lower year-on-year. August coincided with the Hungry Ghost Month, considered an inauspicious period to purchase property by some Chinese buyers. Private residential unit prices are expected to further slide in the near future, in part due to the impending supply influx of approximately 10,262 units by H2 2016 and 14,578 units by 2017. The looming deadline for Additional Buyers' Stamp Duty (ABSD) is expected to add pressure on developers to offer discounts on their unsold units. Developers are required to sell all units in their residential projects within five years of purchasing the land in order to quality for an exemption from ABSD, based on the cost of land at purchase. Developers with ABSD deadlines in 2017 include IOI Properties, United Industrial Corporation, City Developments Limited, and Wing Tai Holdings.

Volume of resale property transactions spiked 30 per cent year-on-year, strongest since 2013

According to the Singapore Property report by DBS, the volume of resale property transactions for the month of August leapt by 30 per cent year-on-year to 1,621 transactions. This is the strongest performance of Singapore's resale residential property market since 2013. Relaunch of developments such as D'Leedon, The Interlace and OUE Twin Peaks which sold 41 units, 34 units and 31 units respectively, helped contribute to the strong performance in August.

Office rents in CBD expected to dip, but demand for co-working spaces on the rise
The Global Cities 2017 report by Knight Frank showed that between the end of 2015 and the end of 2019, rent for Singapore's prime office space is expected to dip 14 per cent, placing Singapore second last amongst 31 global cities. An influx of prime office supply and slower economic growth, as well as technology companies opting to have offices outside the Central Business District (CBD) are reasons for the projected poor performance. Alice Tan, Head of Research at Knight Frank Singapore, said that the expected influx of six million sqf of gross floor area expected to come onto the market by 2017 will slow rentals in the short run, with the market recovery expected to start only from 2019. On the bright side, according to Savills, there is increasing demand for co-working spaces in the CBD.

HSBC Survey: Singapore is the best expatriate destination for second consecutive year

Singapore has been ranked the best destination for expatriates for the second consecutive year according to HSBC's ninth annual Expat Explorer survey. The survey reveals that approximately two-thirds of expatriates have seen their overall quality of life improve since relocating to Singapore. 60 per cent said that they have higher earnings and savings in Singapore compared to their country of origin. On average, expatriates in Singapore are earning S$139,000 per annum. 23 per cent of the respondents are earning more than S$200,000 per year. More than half of the respondents believe Singapore provides a conducive environment for the development of their careers - 62 per cent believe Singapore provides opportunities for career advancement and 58 per cent believe that the country provides a good environment to start a business.

Global Property News
Australia forces sale of 16 foreigner-owned properties

Since May, the Australian government has forced the sale of 16 foreigner-owned properties that were purchased without required government permission. The cumulative value of the 16 units sold amounts to A$14 million, with the majority of the funds repaid to Chinese owners who owned seven units; all the owners were also fined. In Australia foreigners need permission from the Foreign Investment Review Board (FIRB) to purchase property in the country. Since 2013, the government has forced 46 foreign-owned properties, with a total value of A$93 million and majority owned by Chinese nationals, to be sold.

JLL list of "Top 20 Cities for Direct Commercial Real Estate Investment" dominated by US cities, with New York at the top

According to a Jones Lang LaSalle report, Global Market Perspective Q3 2016, 11 US cities ranked among the Top 20 Cities for direct commercial real estate investment, with New York coming out tops. The report showed that US cities with strong growth prospects, such as Los Angeles, Washington DC, Chicago and Boston, remain attractive to investors. Although New York saw a six per cent year-on-year dip in H1 2016 compared to H1 2015, it led all cities with US$24.4 billion worth of investment. London, which saw investment volumes reduced by 39 per cent year-on-year compared to H1 2015, to US$13.2 billion, was ranked second. Los Angeles was ranked third with US$11.3 billion, a 38 per cent year-on-year increase compared to H1 2015.

Malaysian cabinet requests reassessment of recently proposed home financing policy
Malaysia's cabinet has requested Housing Minister Noh Omar to reassess and enhance the home financing policy. The home financing policy, proposed on 8th September, seeks to grant property developers permission to provide home buyers with loans at a maximum interest rate of 18 per cent. However bankers, industrialists and economists raised concerns that this might cause a sub-prime mortgage crisis in the country. Malaysia currently has one of the highest household debt burdens in Asia, at 89 per cent. According to Fitch the proposed scheme could lead to unregulated lending to households with high credit risks, resulting in rising household debt.

For more District Guides, you can head over to iProperty.com Singapore.

TWO-TIERED PERFORMANCE EXPECTED IN PRIME OFFICE MARKET, AS TENANTS' FLIGHT TO QUALITY PUTS PRESSURE ON GRADE A SPACES
Greater divergence in both rental and occupancy performance is expected in the prime office market (Grade A+ and Grade A offices), as Grade A offices are expected to see larger rental and occupancy declines than Grade A+ offices in coming quarters.
26 September 2016, Singapore - Knight Frank expects greater divergence in both rental and occupancy performance in the prime office market (Grade A+ and Grade A office), as Grade A offices are expected to see larger rental and occupancy declines than Grade A+ offices in coming quarters. Grade A office space in the Raffles Place / Marina Bay district saw the largest quarter-on-quarter (q-o-q) rental decline of 2.9% of the various locations in Q3 2016, while Grade A+ office space in the same area saw rental decline moderate slightly, falling 2.1% q-o-q. With the pursuit by upcoming and newer buildings to secure tenants having gained momentum in the past two quarters, upcoming vacancies in Grade A buildings will increase in the next two years as these tenants relocate. This will put pressure on rents as a result.
Calvin Yeo, Executive Director and Head, Office Advisory, Knight Frank Singapore comments, "While we are seeing tenants able to relocate taking the opportunity to take flight to quality, the test over the coming quarters will be for buildings which will lose their tenants to backfill the vacancies amid the on-going economic uncertainty."
Heightened uncertainty in global economy
- Expectation over a US Federal Reserve rate hike before the end of this year remains, although the US central bank once again left rates unchanged at the 21 September meeting.- The sudden fall in oil prices during the week ended 9 September 2016, caused by a significantly lower-than-expected decline in crude inventory, caused a shock to stock markets around the world.- Apprehension over the impact of Brexit, particularly on the UK and EU economies, continues to loom in the mid- to long-term horizon, although safe haven assets and locations around the world could be potential beneficiaries of capital leaving London for safety.- Rising corporate credit levels in China are another cause for concern. A spike in debt defaults could lead to a tightening of financial conditions, further restraining the growth of the Chinese economy.
Muted economic performance of Singapore economy as labour market weakens
- The labour market showed emerging signs of weaknesses, as overall unemployment rate rose to 2.1% in June 2016, compared to 1.9% in March 2016. Long-term unemployment rate, which is the percentage of residents unemployed for at least 25 weeks to the labour force, came in at 0.8%, its highest since 2010. Job vacancies fell short of job seekers for the first time since June 2012, at 93 openings per 100 job seekers.- Professional services and financial services formed 15% and 11% of redundancies in Q2 2016, even as total layoffs rose to the highest second quarter level since 2009. Further sustained weakness in these sectors, which are major occupiers of office space in the Central Business District, will likely lead to the return of more space to the market.- The 2016 GDP growth forecast was narrowed to between 1.0% and 2.0%, from between 1.0% and 3.0%, the Ministry of Trade and Industry (MTI) announced in August.- GDP growth is one of the key factors influencing office occupancy. Historically, when GDP growth last fell to around 2% in 2008, office occupancy fell over the next two years to reach an average of 87.5% in 2010.
Upcoming vacancies in buildings whose tenants took flight to quality
- Grade A office space in the Raffles Place / Marina Bay district saw the largest quarter-on-quarter (q-o-q) rental decline of 2.9% of the various locations in Q3 2016, while Grade A+ office space in the same area saw rental decline moderate slightly, falling 2.1% q-o-q (Exhibit 1).- Grade A offices in the Shenton Way / Robinson Road / Tanjong Pagar cluster fell at the lowest rate of -1.5% of the various locations, after having fallen most quickly the preceding quarter. However at $7.70 psf in Q3 2016, rents are at its lowest since Q3 2010. Whether this slowdown dissipates or becomes more acute remains to be seen, contingent on the rate of these vacancies being backfilled.- The pursuit by upcoming and newer buildings to secure tenants gained momentum in the past two quarters. Several established tenants from Grade A buildings will take flight to Grade A+ quality in the coming quarters.- Upcoming vacancies in Grade A buildings will increase in the next two years as these tenants relocate, and put pressure on rents as a result.
Competition for tenants will continue to grow in the coming quarters
- Competition for tenants will be rife, particularly among buildings vying to backfill vacancies from tenants relocating to quality over the upcoming quarters.- Buildings with significant Net Lettable Area (NLA) due for lease renewal from now till 2018 will continue to be under threat of losing tenants to quality buildings.

Market Outlook
- A two-tiered performance is expected in the prime office market. Greater divergence in rental and occupancy performance is expected in the prime office market, as Grade A offices are expected to see larger rental and occupancy declines than Grade A+ offices in the upcoming quarters.- Singapore's prime office rents for upper floors in skyscrapers, ranked eighth regionally, will stand more favourably with businesses looking to locate or increase their footprint in Singapore, as compared to major global cities in the region, Hong Kong and Tokyo, which were ranked first and third respectively, in Knight Frank's latest Global Cities Report 2017.- Knight Frank projects that average office rents will continue on its path of decline, before bottoming out in 2018.

About Knight Frank
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank, together with its US alliance partner, Newmark Grubb Knight Frank, operate from 370 offices, in 55 countries, across six continents and has over 12,000 employees. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.

For more District Guides, you can head over to iProperty.com Singapore.

Here are some interesting facts around the construction and design of Marina One's immense floor plates:

- Situated in Singapore's prestigious Marina Bay, Marina One will offer two High Density Floors on levels 28 and 29. Each floor measures 170m with no dividing walls and can accommodate up to 2000 employees.

- These floors offer dynamic, truly collaborative spaces that nurture creativity and break down hierarchies by facilitating employee interaction across a single, gigantic floor plate. This further helps maximise operational efficiency through resource sharing and open-plan spaces.

- The trend of big office spaces in Singapore follows closely the popularity of 'superwide' office spaces in New York, where the commercial leasing market has seen strong demand from companies in the financial, advertising, technology and fashion industries. In Manhattan, established brands including Spotify and Cole Haan have already made the move to these 'superwide' floors measuring 100,000 sq ft and above.

- By offering the largest prime Grade A office floor plates in Asia, M+S and Marina One are changing the face of commercial buildings and work environments across Asia.

- Marina One is the only development in Asia offering two high density floors spanning 100,000 sq ft each. The development also has one of the largest typical office floor plates in Marina Bay, ranging from 34,000 to 40,000 sq ft.

Click here to find out more: http://www.ogilvydo.com/

For more District Guides, you can head over to iProperty.com Singapore.

Local Property News
Private condominium and apartment prices dip in August
According to the Singapore Residential Price Index (SRPI) by the National University of Singapore, private condominium prices dipped 0.6 per cent in August after 0.3 per cent growth in July. Prices dipped across non-central and small units (up to 506 square feet). Non-central private condominium prices dipped 0.9 per cent, following a 0.1 per cent drop in July, and prices for small units dipped 0.1 per cent following flat price growth in the previous month. Central units saw flat growth after a 0.6 per cent hike in July. The overall price drop in August indicates the market correction for residential property in Singapore is still under way.

Buyers' market for Good Class Bungalows
The Urban Redevelopment Authority (URA) reported that in H1 2016, 14 Good Class Bungalows (GCBs) amounting to S$298.36m were sold, compared to H2 2015 which saw 18 GCBs transacted for S$377.18m. Real estate consultant CBRE estimates that prices of GCBs slid 2.5% from S$1,352psf at the end of 2015 to the current S$1,318psf. While buyers see current prices as an opportunity to invest in GCBs, owners who bought their GCBs a few years back are tempted to sell to ensure better profits before prices slide further. CBRE estimates that a total 25 to 30 GCBs will be sold for the whole of 2016.

Slow market for luxury homes

According to Asia-based financial services group Nomura, the recent spike in the purchase of luxury homes by Indonesian buyers is not indicative of an improving market for high-end properties. Indonesians purchased 28 private homes valued at a minimum of S$5 million in H1 2016, compared to eight units in 2015. According to Nomura analyst Sai Min, the luxury property market as a whole has been relatively slow. In H1 2016, the quarterly average of units valued at S$5 million or more was 114 residential units, compared to the quarterly average of 420 units between 2010 and H1 2013.

Sing-Wee Hur Development submits top bid of S$287.1m for site at Fernvale Road A S$287.1 million joint bid submitted by Sing Development and Wee Hur Development won the highly competitive tender for a private residential site at Fernvale Road. The 17,196sqm, 99-year leasehold site has a maximum permissible gross floor area of 51,588 sqm and a maximum yield of 600 residential units. The winning bid translates to S$517.03 psf per plot ratio. This land parcel was released from the Confirmed List of H2 2016 Government Land Sales (GLS) programme. Nicholas Mak, Executive Director and Head of Research & Consultancy at SLP International Property Consultants, said that interest from developers might have stemmed from the site's proximity to Thanggam LRT Station, and the lack of mass-market condominium developments around Seng Kang. Mak added that interest, despite high land prices, is indicative of developers being hungry for land.

Demand for CBD office spaces rise with falling rents

While the URA is actively increasing office developments in areas outside of the CBD, including Tampines, Changi and One-North, companies are flocking back to the CBD area due to falling rent prices. According to a Knight Frank report, office rents for grade A and A Plus spaces declined by 11.9% between Q2 2015 to Q2 2016. Ironically, the higher vacancy rate in the CBD area that triggered the dropping of rents was a result of companies relocating to fringe or suburban areas from the CBD. There is now a flight-to-quality - companies are not only returning to the CBD area, but favouring new A-Plus developments over older (grade A) buildings.

Global Property News
iProperty Group launches CommercialAsia, a dedicated one-stop commercial property portal

On 28 September 2016, iProperty Group launched a commercial property listing portal, CommercialAsia, to meet interest in commercial property investments in the region. The portal has more than 48,000 commercial property listings in Singapore, Malaysia and Australia, ranging from shophouse offices to prime business district buildings. There are plans to expand the listings to include commercial properties from Hong Kong and Indonesia. The portal caters to both property investors and agents. CommercialAsia helps buyers make informed investment decisions, connect them with relevant local and regional agents, and provides a network for users to connect with other experienced investors. Mr Sean Tan, Singapore General Manager and Chief Business Development Officer at iProperty Group noted that transactions within Asia accounted for a third of global commercial property investments between Q3 2015 and Q2 2016.

CapitaLand buys 0.5ha prime site in Ho Chi Minh for S$70.4 million for residential development
CapitaLand bought a 0.5ha prime site in Ho Chi Minh for S$70.4 million, the company's third land purchase in Vietnam in the past 14 months. CapitaLand (Vietnam) Holdings, a fully-owned subsidiary of CapitaLand, will have full ownership of the site located in the Cau Kho ward of District 1, Ho Chi Minh City. The residential project, estimated to be worth S$143 million, will consist of two towers - a 17-storey residential tower as well as a 22-storey serviced apartment tower. The project is expected to be launched in Q4 2016 and completed in 2018. The 302-unit development, CapitaLand's ninth residential project and 19th serviced residence project in the country, will be Vietnam's first residential development offering concierge services. In H1 2016, CapitaLand sold about 460 residential units worth S$80 million, a 20% year-on-year increase in terms of sales values and volume.

Chinese Investors attracted to low-cost, high-yield property investments in Thailand

Middle-class Chinese investors are attracted to residential properties in Thailand due to their high rental yields and competitive prices that are up to five times lower than residential properties in first-tier Chinese cities. According to Cobby Leathers, Head of International Business at Sansiri PLC, Chinese middle class investors seeking good rental investments and planning for retirement are particularly interested in first hand units in Thailand. Popular Thai investment destinations for Chinese investors include Bangkok, Pattaya, Chiang Mai, Hua Hin and Phuket.

Vancouver at the highest risk of a real estate bubble
According to the Global Real Estate Bubble Index by UBS, Vancouver's property market has the highest risk of a real estate bubble in the world. Residential units in Vancouver's bubble risk zone have seen prices increase by approximately 50 per cent compared to 2011. The report mentioned that Vancouver's strong residential property price growth was influenced by high demand for residential properties from foreigners as well as the country's loose monetary policy. Recognising the growing instability of Vancouver's residential market, the British Columbia government implemented a 15 per cent tax on Vancouver homes purchased by foreigners, which took effect on 2 August this year. Government-released data shows that the additional tax succeeded in reducing foreign purchases of residential properties in Vancouver to 1.4 per cent between 2 August and 31 August, compared to 8.4 per cent between 10 June and 1 August.

Outlook for U.S. home remains positive despite lower month-on-month sales in August

According to the United States (US) Commerce Department, August sale of new residences slid 7.6 per cent to a seasonally adjusted annual rate of 609,000 units. However August sales were 20 per cent higher year-on-year, the second highest since October 2007. According to David Berson, Chief Economist at Nationwide, the long term view remains positive due to strong new home purchase demand.

For more District Guides, you can head over to iProperty.com Singapore.

First Oakwood-branded property in Singapore
SINGAPORE - Media OutReach - Oct 4, 2016 - Oakwood Studios Singapore is poised to open its doors in December 2016. Not only is Oakwood Studios Singapore the first Oakwood-branded property in the garden city, it is also the first property developed under the new Oakwood Studios product tier -- a product which adds a new dimension to urban city stays, offering urbane travelers a casual and unpretentious space to work, live and thrive.

A rendering of a living room in Oakwood Studios Singapore
Designed with the millennial mindset individuals in mind, Oakwood Studios Singapore boasts of a trendy, upscale serviced apartment that is characterised by chic urban residences designed for independent travelers who seek to seamlessly alternate between work and leisure. As part of Oakwood's expansion across Asia Pacific, this new product category is slated to be located in key cities known for a vibrant culture. An eclectic lifestyle product, Oakwood Asia Pacific's fourth product tier will offer facilities and amenities relevant to its clientele and location while maintaining Oakwood's signature service. All 98 stylish apartments of Oakwood Studios Singapore will be fully furbished and fitted with premium furnishings. Residents will have the choice between three different types of accommodation: Studio, One-Bedroom and Two-Bedroom Apartments. Functional spaces, a fully-equipped kitchen complete with kitchenware and cutlery, and full furnishings provide residents with a home-like environment, allowing them to recharge and rejuvenate in a comfortable environment. In addition, a residents' lounge, a rooftop gymnasium, barbeque pits and swimming pool provide perfect settings to wind down after a long day's work. Quirky designs and little elements of surprise await at every turn, providing a truly memorable experience at Oakwood Studios Singapore. Lush landscaping in the recreational and public areas provide pockets of calm and create an oasis of relaxation and rejuvenation in the heart of the city. Nestled just off Orchard Road, the location of the upscale service apartments has a nostalgic yet modern charm and is conveniently situated in the neighborhood of shopping malls, quality restaurants, one of Singapore's top quality medical centers, Mount Elizabeth Hospital and close to the Central Business District. Sharon Seong, general manager of Oakwood Studios Singapore commented, "We are very excited to finally unveil the latest Oakwood development to the public this coming December. We have strategically chosen to launch the brand in Singapore and the vibrant Orchard area perfectly satisfies business residents' desire to seamlessly combine business with pleasure. It is located close to the Central Business District, allowing us to offer business travelers the ease of travel between work and home, but also an immersive authentic local experience. Oakwood Studios Singapore is nothing like your traditional serviced apartment. Modern, chic and quirky, our residents can expect an unconventional and memorable space."

For more information, visit

For more District Guides, you can head over to iProperty.com Singapore.

Local Property News
Stronger interest for new projects and high-end property

Transaction volume for the residential property hit 2,100 units in Q2 2016, a 50 per cent spike from Q1 2016. New residential launches, such as Sturdee Residences, Gem Residences, Stars of Kovan, Botanique at Bartley, Kingsford Hillview Peak, Kingsford Waterbay, Sims Urban Oasis, The Glades, and Poiz Residences, contributed to the increase in the second quarter. A total of 3,500-3,600 units were sold in H1 2016, with newly-launched projects accounting for 70 per cent of the units.Similarly, luxury apartments performed well in H1 2016 with sale of 131 units valued at S$5 million or more, compared to a total of 166 units sold in the whole of 2015. CBRE noted that attractive payment packages influenced buyers to scoop up value-for-money deals. Ardmore Three accounted for the sale of 34 units in the first half of the year. A seventh floor unit in Le Nouvel Ardmore sold for S$21M (S$4,006 psf) was the most expensive luxury apartment sold during the period. As of end-June, the overall average price of luxury apartments stood at S$2,950 psf, up from S$2,700 psf at end-2015.

Q3 saw biggest quarterly drop in private home prices since 2009
Private homes prices in Q3 2016 fell 1.5 per cent quarter-on-quarter, the steepest quarterly fall since Q2 2009. Prices of private property have been declining since Q3 2013, and have dipped 10.8 per cent since then. Prices in the CCR, RCR, and OCR fell by 1.8 per cent, 1.3 per cent, and 1.2 per cent respectively. Private home prices are expected to fall by 2-4 per cent in 2016. Ms Christine Li, Director of Research at Cushman & Wakefield, believes the fall in prices is a result of a slowdown in the economy and surplus of property in 2015-2017, and noted that home owners with weaker holding power could agree to lower selling prices. The price fluctuation could also be a result of a change in the way private property price indices are calculated by the Urban Redevelopment Authority (URA). Following the change, the URA uses net prices of delicensed projects instead of just overall transacted prices. Previously, developers of delicensed projects were not required to submit information about incentives such as discounts and vouchers.

Healthy market expected for HDB homes

Prices for Housing Development Board (HDB) resale flats in Q3 2016 remained stagnant compared to Q2 2016, with a Resale Price Index (RPI) of 134.7 for the third quarter. Following the unchanged growth of the HDB RPI, buyers are expected to commit to more purchases with sellers having more realistic price expectations. HDB also announced that approximately 5,090 Build-To-Order (BTO) units across Bedok, Bidadari, Kallang, and Punggol will be up for sale in November. A further 5,000 flats will also be put up under the concurrent Sale of Balance Flats exercise.

Investors more confident in local real estate investments
Property investments in 2016 are expected to hit a three-year high. Real estate investment management firm Jones Lang LaSalle (JLL) estimates that the first nine months of 2016 saw total sales of S$15.41 billion compared to S$14.49 billion within the same time frame in 2015. Head of Research at JLL Singapore, Ms Tay Huey Ying, said that fierce competition in bids submitted for various sites during recent Government Land Sales (GLS) reflects investors' confidence in the real estate market. The GLS tenders for Anchorvale Lane Executive Condominium and Fernvale Road closed in August and September respectively. Ms Tay forecasts 2016 to end on a high, with the Central Boulevard GLS expected to attract bids over S$2 billion. The sale of Capital Square and 77 Robinson Road are also expected to attract high bids.

Overseas buyers find Singapore luxury properties attractive

Luxury property in Singapore dropped about 25 per cent in 2016 compared to last year, making it more affordable compared to similar properties in London, Hong Kong, and New York. Luxury properties in these cities are up to 165 per cent higher than in Singapore. According to global Swiss private bank Julius Baer, sales volumes for luxury property in Singapore rose in H1 2016 as a result of incentives and discounts offered by developers, as well as due to the country's top reputation in healthcare and as a livable business city. However, the Additional Buyer's Stamp Duty (ABSD), which levies an additional 15 per cent tax on the purchase price for foreign buyers, might be a push factor.Brandon Lee, a property analyst at JP Morgan Singapore, noted that Americans were the second highest foreign property buyers in Q2 2016. He observed that this is unusual as foreign luxury property buyers in Singapore are usually Malaysians, Indonesians, and Chinese.

Global Property News
London Mayor plans to conduct an inquiry to understand role of overseas funds on city's property market

According to the Guardian, a British newspaper, London mayor Sadiq Khan plans to launch an inquiry to investigate foreign-owned properties in London. The inquiry is meant to analyse the scale and impact of different types of overseas investments in the city, and how other cities handle the impact of real estate investments by foreigners. Foreign ownership of residential property in London has resulted in higher housing costs. Through the inquiry, the authorities also want to assess how they can support Londoners looking for homes. Official data reveals that London property prices increased more than 12 per cent in the 12 months leading to July 2016. In mid-2014, annual price growth reached 20 per cent.

Vancouver's property market cools on back of decreasing demand from foreigners

Home sales in Vancouver fell to 2,253 transactions in September, a 33 per cent year-on-year decrease and the largest decline since 2010. This decline is a result of the British Columbia government implementing a 15 per cent tax for foreign purchase of residential property in Vancouver in August. Authorities are now also implementing policies to help ease price gains in the property market. Prices for detached property in Vancouver hit C$931,900 in September, a 29 per cent year-on-year increase, but a 0.1 per cent decrease from August. According to UBS Group AG, Vancouver's residential property market is most at risk of a housing bubble globally.

Record low interest rates boosts overall prices of residential properties in Australia
According to property consultant CoreLogic, prices of Australian homes increased 7.1 per cent in September following a 7 per cent rise in August as a result of bank borrowing costs being cut to a record low of 1.5 per cent by the Reserve Bank of Australia (RBA). However, these figures remain lower than the 11 per cent peak recorded in 2015. Demand for residential property in Melbourne and Sydney remained strong in Q3 2016 due to the record-low mortgage rates, with home values up by 5 per cent and 3.5 per cent respectively. While Canberra and Adelaide both had positive third quarters, Brisbane, Perth, and Darwin saw a fall in residential property prices. The RBA will hold its policy meeting on 11 October, and is expected to leave interest rates unchanged in order to study the impact of previous interest rate adjustments.

Q3 2016 sees US apartment vacancy rate stagnate and slower growth in rental prices
Data from real estate research firm Reis Inc. reveals that quarter-on-quarter apartment vacancy rates in the US remained stagnant at 4.4 per cent in Q3 2016. Growth in rent also slowed in Q3, despite this period typically recording the highest increase. For the third straight quarter, year-on-year rent experienced slower growth, with asking and effective rents both growing 0.9 per cent in Q3 compared to 1.1 per cent in Q2. According to Barbara Denham at an Economist at Reis, developers benefitted from healthy growth in rental prices and pre-leasing a couple of years back, but have since been overbuilding in certain markets where demand has softened. Reis Inc. data shows that effective rents in New York continue to be the highest at US$3,441 per unit per month, with San Francisco behind at US$2,481 per unit per month.

For more District Guides, you can head over to iProperty.com Singapore.

CONCEPT INNOVATION AND GOOD CUSTOMER SERVICE WILL DIFFERENTIATE AND ENTICE SHOPPERS' LOYALTY AMID THE HIGHLY COMPETITIVE RETAIL SCENE
Against the softer global and local economic conditions and persistently weak retail spending, competition for the spending dollar has intensified.As retailers continue to consolidate outlets in order to streamline costs, demand for space has continued to soften and weighed down on retail rents in Q3 2016.

Overall retail scene remained muted in Q3 2016
- Singapore's consumer confidence entered the pessimistic range. According to the Mastercard Index of Consumer Confidence, Singapore saw a significant decline of 10.7 points in H1 2016 from H2 2015. The degree of decline lagged behind only Indonesia (-14.7 points) and Hong Kong (-12.4 points), of the 17 countries within the Asia Pacific region tracked by Mastercard.- The overall Retail Sales Index (excluding motor vehicles)(seasonally adjusted, at constant prices) improved by 3.5% m-o-m in July 2016compared to the preceding month. All retail trades saw improvement with the exception of Food & Beverages, which declined by 1.5% monthon-month (m-o-m) over the same period. However on a year-on-year (yo-y) basis, the overall retail sales (at constant prices) declined by 3.7% in July 2016, with Computer & Telecommunication Equipment (-18.7% y-oy), Watches & Jewellery (-16.6% y-o-y) and Food & Beverages (-9.7% yo-y) trades seeing the steepest falls.- Employment in the wholesale and retail trade declined by 1.8% in H1 2016 compared to H2 2015. This could be attributed to the weaker retail sales and greater caution in manpower deployment by retailers. - Total visitor arrivals for the period of January to July 2016 increased by 11.5%, compared to the same period last year, to reach 9.8 million. While visitors from China and Indonesia rose by 49.2% y-o-y and 6.8% y-o-y respectively in the first seven months of 2016 compared to the same period in 2015, visitors from Malaysia dropped by 1.6% y-o-y.
Average island-wide prime retail rents moderated in Q3 2016
- Average Orchard Road prime rents fell for the first time since Q2 2015 on the back of the tougher retail climate.- Suburban prime rents improved marginally, largely supported by the stable demand from the surrounding residential catchment.- Prime rents within Marina Centre, City Hall, Bugis, and City Fringe areas held steady compared to the previous quarter. - On a y-o-y basis, prime rents across all locations declined. This was largely weighed down by the weaker retail spending amid the softened global and local economic performance, which resulted in more tenants working towards downsizing and consolidation of their businesses.

Similar positioning and retail-mix calls for cutting-edge innovations for retail malls
- It is important that landlords perform a critical review of their mall positioning and tenant mixes, in face of rising competition from the ecommerce market, and pressure from more discerning shoppers.- Landlords have to be willing to think out-of-the-box and break through traditional norms. The similar positioning and retail-mix among shopping malls today mandates for new and refreshing concepts to drive excitement among consumers. Landlords should look at incorporating multi-concepts. For example, a single retail unit could have more than one trade mix, while F&B operators could consider having one concept which operates up to lunch or dinner and introduce another concept thereafter.- Retail malls have to offer a differentiated and experiential shopping experience in order to attract shoppers. Examples of such efforts needed include the exploration of innovative advertising and promotional (A&P) initiatives, and in-store concepts, to enhance engagement with shoppers.
Growing emphasis on customer service to earn shoppers' loyalty
- There is growing emphasis on the quality of customer service to engage and maintain customer loyalty amid the competitive business climate.- To achieve service excellence, a strong and committed culture has to be established, and echoed with pride in the services delivered by the salespersons standing at the frontline, that goes beyond adherence to the mottos and polices, The effort of fostering and propagating service excellence ought to be closely implemented by the management team of retailers, and supported by both business associations and government agencies- The unrivalled services of Hai Di Lao Hot Pot, the crowd-drawing restaurant chain, stood out in the highly competitive F&B industry. Since its entry into Singapore in 2012, the well-aligned business and operation model provides superior dining experience to its customers where they are willing to queue for hours.- Amore Pacific, a South Korea's cosmetic company that manages popular brands such as Laneige, Etude House and Innisfree, runs on consumer-centered principles. It acquired 'Consumer Centered Management Certificate' from Fair Trade Commission in 2012, and strategised to bridge the interaction between consumers and the brands by educating staff on ways to engage and manage their customers, such as to treat their dissatisfaction and complaints seriously
Market Outlook
Challenging retail landscape to moderate rents further
- Average rents in the Central Region are envisaged to fall by 6.0% to 8.0% y-o-y by Q4 2016, while the more resilient prime rents to moderate downwards by up to 3.0% y-o-y in the same period.- The expected fall in rents takes into account not only the projected weakened demand from retailers, but also the likelihood of landlords readjusting the rental structures to help their tenants tide over down cycles of the market in order to maintain healthy occupancy status.- An estimated 1,072,000 sq ft of net lettable major retail space is slated for completion in the whole of 2016. Out of this, 38.2% (409,000 sq ft) was ready in the first half of 2016, with the remaining 663,000 sq ft to be completed in H2 2016. In addition to this is the cautious stance taken by retailers towards business expansion, and island-wide occupancy is likely to fall from 92.8% in Q4 2015 to between 90.0% and 92.0% in Q4 2016.

About Knight Frank
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 13,000 people operating from over 400 offices across 58 countries. These figures include Newmark Grubb Knight Frank in the Americas, and Douglas Elliman Fine Homes in the USA. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. Knight Frank has a strong presence in Singapore with a head office and three subsidiaries; Knight Frank Estate Management, Knight Frank Asset Management and KF Property Network. For further informationabout the Company, please visit www.knightfrank.com.sg.
© Knight Frank Singapore 2016
This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank Pte Ltd and its subsidiaries for any loss or damage resultant from any use of, reliance on or reference to the contents of this document.As a general report, this material does not necessarily represent the view of Knight Frank Pte Ltd and its subsidiaries in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank Pte Ltd to the form and content within which it appears. Knight Frank Pte Ltd is a private limited company which is incorporated in Singapore with company registration number 198205243Z and CEA licence number L3005536J. Our registered office is at 16 Raffles Quay #30-01 Hong Leong Building Singapore 048581.

For more District Guides, you can head over to iProperty.com Singapore.

SINGAPORE - 7 October, 2016 - OUE Limited signed a management agreement with Oakwood Asia Pacific Ltd ("Oakwood") today, for Oakwood to manage the new Oakwood Premier OUE Singapore at OUE Downtown, strategically located at the heart of the city's vibrant commercial district. The management agreement will see Oakwood, which operates an award-winning portfolio of the finest serviced apartments in the world, running the new serviced residences at the upcoming OUE Downtown.

(From left to right) Mr. Dean Schreiber, Managing Director, Oakwood Asia Pacific, and Mr. Thio Gim Hock, CEO and Group Managing Director, OUE Limited, signing the management agreement papers which marked the start of a strategic partnership between OUE Limited and Oakwood Asia Pacific for the upcoming Oakwood Premier OUE Singapore.

(From left to right) Mr. Paul Stocker, Vice President, Sales, Marketing & Revenue Management, Oakwood Asia Pacific; Mr. Dean Schreiber, Managing Director, Oakwood Asia Pacific, Mr. Thio Gim Hock, CEO and Group Managing Director, OUE Limited, and Mr. Bernard Lim, Senior Vice President, Finance, OUE Limited speaking at the official signing ceremony for Oakwood Premier OUE Singapore.

"When it opens in 2017, OUE Downtown will be well-positioned to create a new work-play-live destination in the heart of Singapore's Downtown offering a range of serviced residences, retail and office amenities in the Central Business District," said Dr Stephen Riady, Executive Chairman, OUE Limited. "We are pleased to partner with Oakwood to manage the serviced residences at OUE Downtown and bring to life our vision for this exciting new development."
Designed with a very 21st century aesthetic, Oakwood Premier OUE Singapore blends urban style with nature-inspired elements to create an intimate oasis for international travellers.
A contemporary interpretation of the concept of "a home away from home" is carried through the interiors of the 268 serviced residences, featuring defined lines and volumes that resemble the city along with a sophisticated colour palette.
The serviced residences are curated with a collection of the best in luxury living, style and design to cater to the needs of international travellers. Residents will discover an intimate sanctuary amidst the bustling business district, complete with a range of luxury facilities and services including private dining, a swimming pool, a fitness centre, daily housekeeping, a concierge and more, all managed by Oakwood. Within the complex are retail options for groceries and shopping amongst others, all adding to the lifestyle and experience.
"We are delighted to be opening an Oakwood Premier property in our home location of Singapore, and look forward to establishing this as a flagship product in our portfolio of award-winning serviced apartments," said Dean Schreiber, managing director of Oakwood Asia Pacific Ltd. "The opening of Oakwood Premier OUE Singapore will be our second property in this great city. This has been an amazing year for Oakwood Asia Pacific. Our accelerated pace of development saw us adding 26 percent to the existing portfolio of Oakwood Asia Pacific in 2016 alone, and we expect to continue on this blistering pace over the next few years."
Oakwood Premier OUE Singapore is located at OUE Downtown, an integrated mixed-use development that is expected to inject vibrancy to the financial corridor between Raffles Place and Tanjong Pagar, comprising of serviced residences, retail and premium office spaces. OUE Downtown is slated to open in 2017.
JLL Hotels & Hospitality Group acted as an exclusive advisor to OUE in the Operator Selection.

Oakwood Premier OUE Singapore
Location: Oakwood Premier OUE Singapore is located in the heart of Singapore's vibrant Commercial District, between Raffles Place and Tanjong Pagar. An integrated mixed-use development set to debut in 2017, OUE Downtown promises to create a new centre of gravity in Singapore with its fusion of residential, retail and leisure experiences designed for the 21st century.
Accommodation
With a total of 268 units, Oakwood Premier OUE Singapore will consist of 82 studio apartments, 139 1- and 47 2-bedroom apartments. All units will be furnished with a fully equipped kitchen. The 1- and 2-bedroom units will be fitted out with a washer and dryer.
Accommodation Categories and Size:- Studio Apartment: 28 - 32 sq meter- 1-Bedroom Apartment: 30 - 58 sq meter- 2-Bedroom Apartment: 70 - 98 sq meter
Facilities includes fitness centre, swimming pool, residents lounge, lobby bar, restaurant, outdoor barbecue, executive lounge, executive board room and carpark.
Services such as 24-hour front desk, Wi-Fi, daily housekeeping service, complimentary self-service launderette, airport transfers and concierge are available.

OUE Downtown Exterior

Lobby & Reception

Bedroom

Pool, Executive Lounge& Gym

-- End --

About OUE Limited
OUE Limited (SGX-ST: OUE) is a diversified real estate owner, developer and operator with a real estate portfolio located in prime locations in Asia and United States. OUE consistently grows its business by leveraging its brands and proven expertise in developing and managing landmark assets across the commercial, hospitality, retail and residential sectors, primarily in Singapore. With its core strategy of investing in and enhancing a stable of distinctive properties, OUE is committed to developing a portfolio that has a strong recurrent income base, balanced with development profits, to enhance long-term shareholder value. OUE is the sponsor of OUE Hospitality Trust and OUE Commercial Real Estate Investment Trust.
For the latest news from OUE, visit www.oue.com.sg
About Oakwood Asia Pacific Ltd
Oakwood Asia Pacific Ltd operates an award-winning portfolio of 28 Oakwood branded properties in 15 cities across eight countries and territories in Asia, with ongoing developments in strategic locations across the region. The Oakwood brand in Asia offers five product tiers: Oakwood Premier, Oakwood Apartments, Oakwood Residence, Oakwood Studios, and Oakwood Suites, each designed for a different lifestyle. Oakwood Premier caters to travellers who seek luxury and style, combining impressive apartments with amenities and services of a luxury hotel. Oakwood Apartments provides functional accommodation with modern essentials ocated in the heart of the city for independent travellers whilst Oakwood Residence offers spacious and elegant apartments that capture all the comforts of home for relocating families. Catering to global nomads, Oakwood Studios adds a new dimension to urban city stays, offering curated spaces for creators. For jetsetters and senior executives seeking respite, Oakwood Suites offers comfort in a private and exclusive environment, allowing guests to rejuvenate with their every need attended to.
For more information about Oakwood Asia Pacific Ltd and its award-winning properties and locations, please visit OakwoodAsia.com.
About OUE Downtown
Asset enhancement work is well underway to transform OUE Downtown to a mixed-use development. comprising office, serviced residences and a new stunning shopping mall with a 262-metre frontage. OUE Downtown is a landmark development at 6 Shenton Way comprising two tower blocks - OUE Downtown 1 and OUE Downtown 2 -a podium and multi-storey car park. OUE Downtown 1 is a 50-storey building comprising three vertical zones, while OUE Downtown 2 is a 37-storey building. This major transformation to become a mixed-use development is expected to inject vibrancy into the financial corridor between Raffles Place and Tanjong Pagar and bring a new sense of belonging to an established urban community. As part of OUE's efforts to maximise the property's strategic location and to leverage on URA's long-term plans to develop Tanjong Pagar into an enviable work-play-live environment, the low to mid-zones of OUE Downtown 1 is being converted into serviced residences with fullfledged facilities. These will include indoor and outdoor dining areas, a swimming pool, a fitness centre and other recreational facilities. The existing podium is currently being converted into a retail mall named Downtown Gallery, while the high zone of OUE Downtown 1 and the entire OUE Downtown 2 will remain as premium office space. Asset enhancement and conversion works are expected to complete in late 2016.

For more District Guides, you can head over to iProperty.com Singapore.

Local Property News

DBSS resale flats in Ang Mo Kio sold for record sum of S$980,000

A 1,291 sqf five-room Design, Build and Sell Scheme (DBSS) resale flat was sold at a record sum of S$980,000 in September 2016. This flat is located at Ang Mo Kio Street 52, just 500m from Ang Mo Kio MRT. Two other DBSS units at Ang Mo Kio were sold in September; a 1,302 sqf apartment at Ang Mo Kio Avenue 1 sold at S$910,000 and another 1,205 sqf apartment at Ang Mo Kio Street 52 sold at S$905,000. Previously the costliest DBSS resale flat was sold at S$910,000 in September 2015, and was a 1,302 sq ft, five-room flat at 310B Ang Mo Kio Avenue 1.

Increase in en-bloc sales in 2016

UOL Venture Investments and Singland Homes, a subsidiary of United Industrial Corporation (UIC), have purchased Raintree Gardens, a privatised Housing and Urban Development Company (HUDC) estate in Potong Pasir for S$334.2 million. With this transaction, the total amount of en-bloc sales this year has exceeded S$1 billion, the highest since 2012 when 19 deals amounting to S$1.2 billion were transacted.

The en-bloc of Raintree Gardens is the third this year. The other two en-bloc sales were Shunfu Ville sold to Qingjian Realty in May for S$638 million, and Habour View Gardens sold to Roxy-Pacific Holdings in August for S$33.25 million.

UOL's increase in assets set to bolster profits

The last 12 months have proven to be profitable for United Overseas Land (UOL) with the acquisition of S$710 million worth of assets. According to CIMB, this could result in UOL's Q2 2016 asset base increasing 3.3% to S$12 billion. Recent acquisitions by UOL include the S$334.2 million Raintree Garden residential site and Holborn Island, a S$387.8 million office/retail building in London. Both these acquisitions were through joint venture with United Industrial Corporation (UIC). According to CIMB, the purchase of Raintree Gardens is an indication of UOL's intension to develop its residential portfolio. On-going residential UOL projects include Botanique at Bartley, Riverbank @ Fernvale, and Principal Garden, which have 97%, 92%, and 45% of units sold respectively. UOL is also preparing to sell its 505-unit project at Clementi in Q1 2017.

Commercial development and retail woes in central region

Guoco Tower, the main feature of the Tanjong Pagar Centre, has received the temporary occupation permit (TOP) for its office and retail components. Wallich Residence, Sofitel hotel, and Urban Park are also part of the Tanjong Pagar Centre development. Guoco Tower, an 890,000 sqf Grade A office building, has achieved 80% tenant commitment, with tenants including Agoda, Danone, and Straits Trading. Cheng Hsing Yao, Managing Director of GuocoLand Singapore, stated that this development focuses on being a "liveable, vertical city" where lifestyle amenities are integrated into the workplace. It is also the tallest building in Singapore that is well-connected to an MRT station. Construction for the Tanjong Pagar centre is expected to be completed by 2017.

Average prime rents in Orchard Road dip as more retailers reduce physical outlets

Amid a sluggish retail market, average prime rents in Orchard Road dipped 0.5% quarter-on-quarter and 0.1% year-on-year, according to Knight Frank. The residential and commercial property consultancy said more retailers were reducing their physical outlets to cut costs, and this weakened demand for retail space has led to falling rents. Throughout Singapore, prime retail rents fell 2.2% from Q2-Q3 2016.

Global Property News

Ontario remains open to foreign property investments

While federal cooling measures such as tighter mortgage eligibility have been introduced to stabilise the heated housing markets in Toronto and Vancouver, Ontario has said it has no plans to introduce additional measures. Officials in Vancouver believe that the city's proximity to Asia has in part led to an increase in foreigners investing in residential properties, which has in turn resulted in growth in the market. However, Ontario wants to conduct more analysis to determine if foreign buyers are the cause of growth in Toronto's housing market as well. Charles Sousa, Canada's Finance Minister, said that Canada is proud to be a top destination for foreign direct investment and that he believes increased interest in investing in Ontario is beneficial to job creation as well as economic growth and development.

More choose to rent rather than buy luxury homes in central London

Buyers and sellers of luxury homes in London have adopted a wait-and-see approach due to the uncertainty regarding residential property prices. The uncertainty is caused by Brexit and the tax surcharge on investment properties implemented earlier this year. More homeowners are instead choosing to put up their homes for rent, and there is an increase in people looking to rent residential property. The rental market has become more active as a result, with rental prices increasing. Tom Bill, Head of Residential Research for Knight Frank, said the number of new rental properties in the market increased 44% between August 2015 and August 2016, and rental agreements increased 34% in September 2016 compared to the same period last year. According to RICS Chief Economist Simon Rubinsohn, buyers seem to be slowly returning to the housing market. Brexit has weakened the sterling pound, and this has led to greater demand for prime London property among foreign buyers. According to residential data provider LonRes, buyers whose currencies are pegged to the US dollar, such as Hong Kong and Singapore, will find property in central London the most affordable since 2012 due to favourable exchange rates.

Chinese authorities impose restrictions to control housing market bubble

Chinese property shares experienced their biggest slide in five weeks after restrictions were implemented in approximately 20 Chinese cities to curb further property price inflation. Home prices in China started increasing after the government eased restrictions on property purchases in 2015. In a bid to mitigate a price bubble, authorities in China's tier one and two cities, such as Nanjing, Shenzhen, and Fuzhou have introduced measures including mortgage restrictions and down-payment policies. According to Shanghai Uwin Real Estate Information Services Co, month-on-month sale of new homes in Shanghai slid 44.5 per cent in September even though home prices climbed 5.1 per cent during the same time period. Jingyi Pan, strategist at IG Asia Pte Ltd, suggested that the objective of Chinese authorities is to control price surges, and not to cause prices to plunge. As such, property prices might still increase, but at a slower rate.

Opportunities for US property investors

U.S. investors, mostly from more expensive coastal cities, are increasingly investing in out-of-state residential properties in suburban areas. Increase in rental prices coupled with lower cost of purchasing suburban residential properties in states such as Georgia, Tennessee, and Ohio make them an attractive source of income for investors. Out-of-state properties are far more affordable to purchase compared to housing in the home cities of investors. Anne Callahan, a property agent in Cleveland, Ohio, said that in the last 12 months she saw more cash buyers from California targeting non-coastal cities than in her 25-year career. According to data provider CoreLogic, the average landlord collecting rent from a single-family home in suburban Atlanta recovers 25.8% of the home price annually as compared to 3.4% in the San Francisco Bay Area where the median home price was US$675,000 in August 2016.

For more District Guides, you can head over to iProperty.com Singapore.

Latest Images