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

Property prices will fall, but not crash

Following last week's URA flash estimates that private residential prices dropped 1.1 per cent in 2Q 2014, Deputy Prime Minister Tharman Shanmugaratnam stated property prices may continue to fall, but a crash is unlikely. "I don't think we'll see a crash, because we moved early enough. And we moved each step of the game, knowing full well that what we do may not be enough, but if too much we might engineer a crash," said Mr Tharman.
The high-end property market has been hit hardest by the cooling property market, highlighted by the Hiap Hoe-developed 48-unit Treasure on Balmoral, which managed to log only one sale since launching in January, which was subsequently returned. Hiap Hoe is now moving to sell the condo in a bulk sale, at S$191.4 million, or S$1,850 psf, according to its marketing agent Savills.
Mr Nicholas Mak, Executive Director of SLP International, told TODAY "for this developer, (a bulk sale) is one way for them to exit this particular investment and move on." Mr Desmond Sim, Head of Research at CBRE, agreed that if the sale gets through, Hiap Hoe can be relieved of the risks and financial burden of holding on to so many unsold units. He added that "the location of the project is not bad and S$1,850 psf is quite a bargain, so if someone has the appetite for this, it's good for the developer's cash flow." Mr Steven Ming, Managing Director at Savills, is optimistic about the prospects, noting "We believe this opportunity will attract wide-ranging investors, as many will see mid-to-long (term) value at this guide pricing."

HDB blocks built in early 1990s may be upgraded; 12,700 more BTO units to be launched 2H 2014National Development Minister Khaw Boon Wan announced in Parliament on Monday that the government is considering upgrades for HDB blocks built in the early 1990s, under the Neighbourhood Renewal Programme (NRP). Currently, NRP applies only to blocks built before 1989. If approved, the newly eligible blocks can look forward to improvements such as precinct pavilions and drop-off porches. Priority will be given to estates that have not undergone main or interim upgrading programmes, such as Pasir Ris-Punggol GRC.
Mr Khaw also announced in a parliamentary written response on Tuesday, that the remaining 12,700 flats of the 22,400 BTO flats targeted for this year will be launched in H2 2014. HDB will also carry out a second sale of balance flats exercise later this year to supplement the incoming BTO units. Mr Khaw added that the supply in 2015 is expected to be lower than this year.

Silver Housing Bonus and Enhanced Lease Buyback Scheme (LBS) beneficial for elderlyMr Khaw revealed in Parliament on Monday that 120 seniors in 80 elderly households have benefited from the Silver Housing Bonus since it was introduced in February last year, receiving up to S$20,000 in cash per household when they sold their existing flats and moved into a smaller unit. Meanwhile, the Enhanced LBS scheme has benefited 312 households since February last year. Under this scheme, seniors sold part of their flat leases to HDB and used the net proceeds to top up their CPF Retirement Accounts, resulting in more than 90 per cent of the elderly in these households meeting their CPF minimum sum thresholds.

Land Acquisition Bill to undergo potential revisionsPotential changes to the Land Acquisition Bill could result in better compensation for landowners when part of their land is acquired by the authorities for development. These include the removal of the Betterment Levy, which currently reduces the compensation received by landowners based on the potential capital appreciation of their property, once the portion of land has been acquired and developed. In addition, the government is also proposing changes in the Bill to enable Management Corporation Strata Title developments to go through acquisition processes on behalf of individual unit owners when common property is acquired by the authorities. This eliminates inconvenience to owners, as currently every owner is required to go through the process.

Chinese developers zoom in on Iskandar as China's property market weakensIskandar's special economic zone has been attracting plenty of attention from Chinese developers looking abroad for better opportunities. Mr Colin Tan, Director of Research and Consultancy at Suntec Real Estate, told TODAY that developers "have started to venture out of China because financing is being tightened. Developers usually go for 'safer' markets such as Hong Kong or Singapore, which are developed and more transparent. But Iskandar is in a unique position even though it's not a mature market. It's next to a First World country, with tremendous purchasing power for developers to tap, and land cost is low compared with developed markets." Another factor is the availability of large plots of land in Iskandar, compared to land-starved Singapore. Mr Ku Swee Yong, CEO of Century 21, noted that "payment terms for such plots are probably more favourable to developers than in Singapore."
Yet, analysts remain conservative in terms of Iskandar's potential. Mr Colin Tan considers the upcoming oversupply in Iskandar a potential challenge. "The common argument against this is that Iskandar has the backing of the government and that the high-speed rail project (will) improve connectivity, so its potential will eventually be realised. But the next question is, how long will that take? It could well be many years," said Mr Tan.
Meanwhile, two projects in Iskandar are under scrutiny by both the Singapore and Malaysia governments, as both projects involve massive reclamation activities. The projects are Forest City, a 2,000ha man-made island developed by China's Country Garden Holdings and Malaysia's Kumpulan Prasarana Rakyat Johor, and Princess Cove, a 47ha development by China's Guangzhou R&F Properties. A press release from the Ministry of Foreign Affairs notes that Singapore is very concerned about the potential trans-boundary impact from the reclamation works, and has requested Malaysia to suspend activities until an Environmental Impact Assessment, as well as other information on the reclamation works has been studied and considered by Singapore. Malaysia has responded with some preliminary general information, stating that no reclamation works are currently being carried out, and has promised to share all information.
On a separate note, the Malaysian government will be taxing developers reclaiming land from the sea in Iskandar, to provide aid for fishermen affected by reclamation works. According to Johor's Chief Minister Mohamed Khaled Nordin, developers will be taxed at RM0.30 (S$0.12) for every square foot reclaimed, and based on a total expected acreage of 3,237.48ha, RM104 million could be collected. Mr Mohamed Khaled also mentioned to Malaysian media that Johor will set up an international zone for foreigners interested in residing in Johor, enabling the state government to limit property purchases by foreigners, as well as special taxes collected and channelled towards developing other areas outside Johor Bahru.

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Paul Flowers looks into his design crystal ball and lets us in on upcoming bathroom trendsText: Janice Seow

As the Global Senior Vice President of Design at Grohe, Paul Flowers has led the German sanitary fittings company to win numerous accolades, including 15 red dot awards. Under Flowers' creative lead, Grohe products are today known not just for their technology, quality and sustainability but importantly, for giving users an enjoyable experience with water.

Here he shares with us 5 key bathroom trends:
1. The personal spa: People are taking the benefits of the spa, and bringing them into their bathrooms.

2. Going digital: Ecology is a big trend and these days, digital bathroom products help users to have a better showering experience while reducing water consumption. For example, there are features that allow you to set the temperature so you don't have to waste time (and water) each morning trying to get it perfect.

3. Colour accents: Companies are increasingly introducing neutral shades into the bathroom on elements such as showerheads and soft furnishings such as towels.
4. Three-dimensional: Patterns on tiles are coming out in relief, a trend that's also seen in furniture.
5. Big to bigger: Architects and designers are affording the bathroom more space. Consumers are demanding it as they start to realise that properties with impressive bathrooms sell better.

My bathroom at home has RGB lighting, and an iPad embedded in the wall so I can listen to spa music and watch a movie if I want to. It also has surround sound speakers above the bathtub.- Paul Flowers, describing his own bathroom.

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A homeowner's dedication to his vision of a dream home contributed to this industrial-style hdb flat by home furnishing renovation.
Project Type: 4-room HDBFloor Area: 990 SQFT
Text: Redzman RahmatPhotos: Justin Loh, Shining Head MediaArt Direction: Betty Wong

Kelvin Yeo claims that he's not a very creative person. Despite his modest confession, the homeowner of this 4-room HDB flat had a clear vision of how his dream home would look like. Kelvin, his wife Anna and their young son Lucas moved into their new home several months ago, and by picking the right interior designer, successfully brought his dream home to life.
"Kelvin was really easy to work with," says interior designer Kalyn Guo from Home Furnishing Renovation. Kalyn was responsible for collecting and organising the many ideas that the homeowners had. She incorporated creative suggestions from Kelvin and Anna, and created a practical anvd functional home. "It has a raw industrial look, with exposed materials and surfaces," she says of the design. "I also presented a lot of textures in this home."
One of Kelvin's requests was for a home that is "visually free and open". The challenge, of course, is the fact that this is a typical 990-sqft HDB home. To achieve the sense of spaciousness that Kelvin wanted, walls were torn down and rooms were combined. Kalyn even absorbed the yard area into the kitchen to create a bigger, more comfortable space.
Apart from the newly freed visual spaciousness, the homeowners also wanted a functional home. Kalyn responded by ensuring that everything in the apartment has a practical purpose. This ranges from the metallic chalkboard where the owners can leave notes for each other, to the craftstone brick wall that adds a rough texture and subtle colours to the home.
Every material and furniture choice has been thought through - even the use of grey walls that can be found throughout the home. Kalyn shares that to achieve the texture and rawness of these walls, she had to apply multiple layers of plaster. "It was one of the biggest challenges," she admits. Plaster was used to create an interesting surface with visible markings and deliberately uneven surfaces - the perfect complement to the industrial look.
The bedroom is another example of how the designer juggled form with function. The double volume bedroom - the result of merging two rooms into one - has a glass partition that separates the sleeping area from the attached bathroom. Kalyn custom built this translucent divider using a wrought iron frame and wire glass. "The homeowner was very clear with what he wanted, and that smoothened the work process," Kalyn shares. Kelvin was just as impressed, emphasising the importance of picking the right interior designer to realise his dream home.

Everything in the apartment has a practical purpose... from the metallic chalkboard to the craftstone brick wall that adds a rough texture and subtle colours to the home.

Plaster was used to create an interesting surface with visible markings and deliberately uneven surfaces - the perfect complement to the industrial look.

To achieve the sense of spaciousness that Kelvin wanted, walls were torn down and rooms were combined.

<DESIGN NOTES 1>Because of the depth of the shoe cabinet, the designers installed pull-out drawers for easy access to shoes that are deeper in the cabinet.
<DESIGN NOTES 2>By keeping dark colours on the walls, floor and the exposed plumbing, the bathroom has a cool and understated vibe.
<DESIGN NOTES 3>A full-wall closet doesn't take up as much space as a walk-in wardrobe. It also benefits from natural lighting.

The industrial look is prevalent in this home, with raw materials that infuse it with a homely vibe. The surfaces come together to create a warm and inviting vibe. Credits: Zebra cushion from The Wright Gift; pink owl cushion, clear glass bowl and vase from Ikea.

The entire kitchen entrance has been widened to allow light into the space. Flanking the entrance is a metal shoe cabinet that has been painted over with chalkboard paint.

Since top-mounted cabinets can make a kitchen look small, the designer used metal racks that visually lighten the space.

The different textures in the home - a combination of rough bricks, smooth tiles and uneven cement plaster - contribute to the industrial vibe.

While the main living areas have an industrial look, the kitchen has a warmer, country-inspired look brought about by the wood laminates and white brick tiles.

The bedroom features a divider made from wire glass and black steel. This statement-making partition creates a long corridor that leads into the sleeping area proper. It also separates the bed from the en suite bathroom.PHOTO: HOME FURNISHING RENOVATION

Two rooms were combined to create this enlarged master bedroom. It remains sparsely furnished, offering the owners the versatility to use it as a playroom, changing room or just a corner to unwind in.Credit: Rug from Ikea, bed linen from Aussino, square cushion from Galanga Living.

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Not only does the kitchen countertop need to look good, it should also be able to withstand heavy duty cooking.
Text: James Leong
While many of us pore over catalogues just so we can choose the right kitchen cabinet to complement our home, it's also important that the countertop gets equal attention. This is the surface that bears the brunt of any kitchen work. Here are some of the available options for kitchen surfaces.

Quartz
Quartz is the second most abundant material on earth, and is also the most commonly used mineral in the making of jewellery and hardstone carvings. According to a spokesperson at Builders Shop, engineered quartz is an exceptionally hard material. It is also very durable and highly scratch resistant. These properties make engineered quartz ideal for kitchens, and especially as a surface to prepare food. The material is naturally non-porous and is highly stain-resistant. Quartz can also make housework easier, as it does not require frequent polishing like other natural stones.
New technology now allows the mixing of quartz with coloured dyes and metallic flakes, revealing a depth and vibrancy of colours. Quartz also features a built-in anti-microbial protection, which inhibits the growth of odour-causing bacteria, mould and mildew.

Marble
Marble is typically associated with flooring for its lavish shine and finish, making it the material of choice for designers and architects the world over. Marble, which is actually a type of limestone, is known to crystallise over time, which only adds to its beauty.
In the kitchen, marble countertops present a similar sense of luxury. Its strength and durability are unquestionable. However, it does have several drawbacks. Marble is naturally porous and stains easily, and has a tendency to lose its smooth texture when exposed to extreme temperatures. This is because marble is an alkali, making it prone to chemical reactions and permanent discolouration. No matter how careful you are, marble will eventually get scratched, stained and start to show its wear and tear.
That, however, doesn't mean that marble is a bad choice for a kitchen countertop material. New technology helps to prolong its beauty, and many people actually admire the natural distress of worn-down marble.

Stainless Steel
Stainless steel is mostly seen in commercial kitchens, and is sometimes referred to as the chef's choice. This usually refers to the material's durability, practicality and professional chic. Stainless steel is actually a steel alloy, which includes 10.5 per cent chromium to make it resistant to rust and corrosion. It is a popular choice among restaurants because of its non-porous and non-staining qualities, and this makes cleaning a breeze in an environment where hygiene is a priority. Steel is also very resistant to heat, and can last for almost half a century.
With the advent of new technology, stainless steel can now be produced in a variety of finishes and textures, including brushed, mirror-polished, quilted and machine-hammered. This means that your stainless steel countertop doesn't have to be boring.
The only downside to stainless steel is how fingerprints and watermarks have to be constantly cleaned. One word of caution is how its steely exterior belies its susceptibility to scratches and dents, so always remember to use a cutting board.

Granite
Granite is incredibly long lasting. After all, it's the same stone used to build the pyramids of ancient Egypt - and they're still standing to this day! This natural stone is an igneous rock that is formed under the earth's surface and, over time, gains its own unique and distinct texture. Granite has an endless range of unique patterns, and is available in a variety of colours, depending on where the stone was formed. Expect to pay more if you've got your eye on red or yellow granite countertops. There are also different types of finishes, but the most popular has to be the polished finish, which lends the surface a mirror-like quality.
Granite also happens to be one of the strongest natural material. It is heat and scratch resistant, and is very easy to maintain.

Solid Surface
Solid-surface counters are a blend of acrylic or polyester resins, powdered fillers and pigments. The mixture is then cast into slabs and then thermoformed into different shapes and configurations.
According to a spokesperson at surfacing specialist Evershine, solid surface is popular among its customers for its richness in colours, designs and affordability. Its surface can be rejuvenated by engaging contractors to conduct surface sanding and polishing once every couple of years, and it has almost totally replaced the market share of the conventional laminated kitchen top, a very popular kitchen top in those early days before solid surface was introduced. Other plus points are its durability and non-porous qualities, making it resistant to stains, mildew and bacteria.

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Private home sales, resale prices slump in June, HDB resale prices continue falling, Unmarried Singaporeans plan to live with or near their parents, Largest residential plot along Grange Road put up for sale, Sembawang Avenue EC site attracts cautious bids; private site acquired for public housing

Private home sales, resale prices slump in June
June's private home sales plunged to 482 units from 1,488 units in May, a 68 per cent drop, according to URA data. The fall in sales is in line with this year's trend, with an average of 638 units sold monthly between January and April. May's exceptionally strong performance may be a one-off, largely attributed to two successful projects: Coco Palms and Commonwealth Towers. With June's results, the total number of new private homes sold by developers in 1H 2014 comes to 4,503 units, 56 per cent lower than the 9,841 units sold over the same period in 2013.
Ms Chia Siew Chuin, Director of Research and Advisory at Colliers International, told TODAY that "having released a handful of well-received projects in May ... developers focused on moving units in previously-launched developments and generally avoided releasing new projects amid the June school holidays and World Cup season". Only two new projects were launched in June: Trilive at Tampines Road, selling 19 of 80 units launched; and The Crest at Prince Charles Crescent, selling 35 of 132. The best performing projects were Coco Palms, selling 55 of 100 newly released units, and The Panorama at Ang Mo Kio, which sold 49 more units in June. These two projects contributed to the Outside Central Region (OCR) being the most active market in June, with 269 units sold, followed by the sale of 167 units in the Rest of Central Region (RCR) and 46 units in the Core Central Region (CCR).
Analysts also attributed the weak demand to the government's cooling measures. Mr Ong Teck Hui, National Director of Research and Consultancy at Jones Lang LaSalle (JLL), noted that "after TDSR, there is just not enough demand to continually soak up unsold units, so we are seeing sales progress slowing significantly or even stalling completely after the initial launch". Collier's Ms Chia added that "with fewer affordably-priced mass market projects in the pipeline, buying volume is not expected to improve extensively". For the rest of the year, Mr Nicholas Mak, Executive Director at SLP International, told TODAY that "there is a growing possibility that the total number of private homes sold by developers in 2014 may fall under 11,000 units. If this happens, it would be the lowest volume since the financial crisis of 2008, when developers sold only 4,264 private homes". Additionally, the Ghost Month, typically characterised as a quiet period for the market, will start on 27 July and could further contribute to a softer market.
Meanwhile, resale prices for private condos dipped by 1.4 per cent in June, reaching an 18-month low. Prices fell by 3.2 per cent in the RCR and 1.7 and 0.3 per cent in the CCR and OCR respectively. Mr Eugene Lim, Key Executive Officer at ERA, told TODAY that OCR resale prices declined relatively less because of the lower price quantum of private homes in the region. However, lower resale prices are luring buyers back into the market, as seen in a 7.9 per cent increase in transaction volume in June. Mr Alan Tan, Head of Singapore Projects at HSR, said that the resale market is moving towards equilibrium if transaction volumes continue to rise. Mr Mohd Ismail, Chief Executive of Propnex, added that property curbs will continue to keep prices in check, and "as more developments are expected to be completed in the next few years, this increase in supply will also exert downward pressure on resale prices".
Rental prices also slipped in June, as high-end condos in the CCR recorded a 2.5 per cent dip, followed by a 1.1 per cent decline in the OCR, according to flash estimates by the Singapore Real Estate Exchange (SRX). Rental prices in the RCR region increased by 1.3 per cent.
HDB resale prices continue falling
According to a flash report by SRX, HDB resale prices reached a two-year-low in June, with a 0.6 per cent drop compared to the previous month. This marks the fifth consecutive month of decline in resale prices. The report showed that prices declined for three-, four-, and five-room flats at 0.6, 0.8 and 0.3 per cent respectively, whereas Executive Condominiums (ECs) rose by 1.3 per cent. In terms of transaction volume, June's resale value remained flat at 1,315 units sold, compared to 1,320 units in May, steady on a year-on-year basis; 1,325 units were resold in June 2013. Rental volume saw a bigger drop, from 1,622 units in May to 1,590 units in June. Rental prices fell by 1.1 per cent in the same period, also reaching a new low, since January 2012. On a year-on-year basis, HDB rental prices in June 2014 were 3.4 per cent lower compared to June 2013.

Unmarried Singaporeans plan to live with or near their parents
2,000 Singaporeans, including unmarried and married adults, and elderly parents, were surveyed in a Ministry of National Development's (MND) poll, revealing that the majority of young unmarried Singaporeans plan to live with or in the same township as their parents after getting married. The survey also showed that 73 per cent of parents intend to live with their children after their children get married. Both groups cited good relationships with each other and children being able to take care of their parents as reasons for wanting to live together.
Mr Khaw Boon Wan, Minister for National Development, wrote in the MND blog that the results were "heart-warming." He added that MND will "see how best (they) can help fulfil Singaporeans' aspirations to live near their extended families for better mutual care and support". MP Lee Bee Wah, Chairman for the Government Parliamentary Committee for National Development, told CNA that one way to help parents to be closer to their married children was to provide grants for those looking to buy resale HDB flats, or to grant absolute priority for those opting for new BTO flats. As for mature estates, the Selective En bloc Redevelopment Scheme (SERS) could increase the availability of housing units to cater to families wanting to live together.

Largest residential plot along Grange Road put up for sale
Spring Grove, occupying a 263,513 sq ft residential plot along Grange Road, will be put up for en-bloc sale by Knight Frank. Owners of Spring Grove are expecting offers of more than S$1.39 billion, which includes the lease top-up premium for a new 103-year lease, rendering the land price at about S$2,512 psf ppr, based on the maximum permissible Gross Floor Area of about 553,377 sq ft. The site is "one of the few residential plots remaining in the Orchard area to be made available for redevelopment into a large-scale luxury condominium" and therefore is considered "an exceptional redevelopment opportunity for developers" according to Mr Ian Loh, Director and Head of Investment and Capital Markets at Knight Frank, in an interview with SBR. Knight Frank expects the breakeven price for developers to be $3,500 psf.

Sembawang Avenue EC site attracts cautious bids; private site acquired for public housing
The recent tender for the Sembawang Avenue EC site attracted only four developer bids: a joint venture between FCL and KH Capital, at S$214 million, or S$320 per square foot per plot ratio (psf ppr); Verwood Holdings and TID Residential at S$211 million, or S$315 psf ppr; CEL Residential Development at S$188.9 million, or S$282 psf ppr; and Sim Lian Land at S$181 million, or S$271 psf ppr. The size of the 99-year leasehold plot is 238,848 square feet, with a plot ratio of 2.8, yielding around 620 units. Commenting on the low participation, Mr Ong Teck Hui, National Director of Research and Consultancy at Jones Lang LaSalle (JLL) told TODAY that "besides softer market conditions, the tender could also have been affected by the considerable future supply in the Sembawang and Yishun areas". In addition, Skypark Residences, located next to the site still has 200 unsold units, having launched seven months ago. Mr Eugene Lim added that "with the land bid remaining low, it helps keep the prices of EC in check. They will also remain competitive against mass market condominiums".
Meanwhile, HDB and SLA will be acquiring a 1.23-hectare plot of land at King's George Avenue for a public housing development. The land is currently vacant state land and a private industrial property. The private industrial property will be acquired in accordance with the Land Acquisition Act. Both agencies will release more information on the development once plans are ready.
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We go one-on-one with the Country Garden Regional President for Malaysia, Kayson Yuen to talk about the current development progress, debunking the rumours surrounding the Country Garden at Danga Bay project, and other developments in Malaysia for the group.
"If you look the right way, you can see that the whole world is a garden." Frances Hodgson Burnett, The Secret Garden.
Guangzhou-based Country Garden marked their entrance into Malaysia with a bang when they launched 9,000 condominium units with 70% snapped up within a short span of 3 months during their initial launch last August.
Touting the first private manmade beach stretching 400 metres in Johor, Country Garden at Danga Bay provides a safe and luxurious living experience afforded by the 5-Star lifestyle amenities and lavish facilities (high-end private clubs, massive commercial centres, featured streets and exclusive marina). It is also protected by a 24 hours security system managed by a first class property management team.
Included in the luxury lifestyle package that Country Garden provides for its residents, it is also a paradise of wondrous nature with designer landscaped gardens, coupled with cascading water features tended to by experienced gardeners specially flown in from China.

And at the helm of all things good with Country Garden's rapid rise as one of the developers to look out for in Malaysia is the Country Garden Regional President for Malaysia, Kayson Yuen. Spearheading the charge for Country Garden in the first project outside China, we sat down with the youthful looking decision maker in his tapered suit sans tie for an exclusive interview.
Not overly blessed in the height department but exuding a quiet confidence as he greeted us with a firm handshake and steely gaze, the 35 year old joined Vice President and Executive Director, Mr. Song Jun at Country Garden eleven years ago straight out of school and was specially handpicked by the Executive Chairman, Mr Yeung Kwok Keung to head the Malaysian team.
We speak to him on the rumours concerning the "one-for-one" scheme, the current progress of the Danga Bay development, and future developments.

What is the current stage of the Danga Bay development?
The progress of the development is right on track, as can be seen from the beautiful landscaped yards, sales office, man-made beach, the commercial centre and children's playground. Also, more than 20 food and beverage outlets from Singapore and Malaysia have also set up shop onsite to create a mini township right here in Danga Bay within a year. We are also still in talks with various retail and commercial partners to bring in more variety of products and services this year to boost the activity on the Fashion Street, Avenue Street and Costal Bar Street.
In terms of project development, Country Garden at Danga Bay has also adopted the unique philosophy of the Group in "fast development and sales". Pile construction has also begun according to schedule and on track for completion by 2017.

What are your comments regarding the mixed reports about the development having stalled?
As mentioned, the progress of the project is on completely on track. And as you can see from the regular status updates that we post onto the official website, I would say that it is progressing at a pretty rapid pace. Everyone involved in the project from day one would certainly know that, instead of stalling, the progress has actually accelerated from the initial phase.
And in preparation for the next phase, Country Garden at Danga Bay will unveil a new look to keep abreast of market developments and attract new buyers and investors. We would certainly not be doing this if the rumours over the stalled development were true.

And what would you say, towards the allegations of the huge discounts for buyers and 'buy one get one free' scheme for buyers from China during the launch too boost take-up rate?
That is a groundless rumour, as anyone with a basic know-how of the property market would know that it is certainly not feasible.
As the group's flagship overseas project in which we have invested heavily into, it serves as a showcase for future development in other territories. No details have been spared in putting together the entire project, from site construction to the design and management. Also, the efforts put into market research and strategy, including the hugely popular, never before seen month-long carnival in Iskandar Malaysia were the true reasons for our high take-up rate during the launch.
With so much invested into this project, there is absolutely no way that we will be giving units away as "free gifts". I highly doubt that any developer would ever do that, as it doesn't make economic sense.
In addition, there are the legislative and legal aspects that rule such schemes out for any developers. Putting aside the economic aspects, it is a potential legal nightmare for all parties involved in such "multinational" schemes.
Furthermore, the recent property measures announced by the Malaysian government imposed on all developers the need for increased transparency on all benefits and incentives, as well as approval from the authorities for all property projects. With no prior precedent for such sales promotion as well, there would be no room for such schemes in the market.
Once again, I would like to highlight that Country Garden respects and values the various measures and regulations in Malaysia, and hence, would not launch any campaign or scheme that would hinder our plans for future developments in the country.

Any idea on how these rumours came about?
During the Country Garden at Danga Bay launch, we rang in a record-breaking RM5 billion worth of sales, which was considered a huge success. Also, the recognition and accolades received from various media and award shows in China, Malaysia and Singapore have probably played a part in the culmination of these untrue statements made.
At first, we do not really see these statements as being malicious, but rather, a case of them trying to explain the unprecedented success that the project has seen since its launch. However, we are left perplexed regarding the rumours as there seems to be no end to them, even as it nears one year since the launch.
At present, we wouldn't deign to guess the source nor the motives behind the persistent rumours in the hope that it will eventually die off. However, we do want it to be known that having consulted with our legal counsel, we definitely reserve the rights to pursue the culprits behind these groundless accusations should it persist.

So, apart from Country Garden at Danga Bay, what other developments are in store for the Group in Malaysia?
With the first commercial street in Country Danga Bay in operation, the nous is now on getting the rest of the amenities in the development ready for the public. The current priority is for the following two commercial streets to be launched as we are already in talks with various tenants to bring a one stop shopping hub for the nearby residents.
Country Garden Diamond City, collaboration between Country Garden and Mayland Group, is the second development project in Malaysia and features sophisticated contemporary Spanish architecture and an exclusive 57,000 sq.ft clubhouse that also houses the largest infinity pool in Kuala Lumpur, private screening theatre, bowling alleys and a myriad of other facilities.
The Spanish style villa showrooms are all fitted with high quality hand-crafted decorations and murals that promote the luxurious lifestyle that is in line with this project. The joint vision of both Mayland Group and us, this luxurious villa city in Greater Kuala Lumpur will offer its residents a dispersed, low-density 5-star lifestyle only available in the most unique villa city in Greater Kuala Lumpur.
Last but not least will be the upcoming project Country Garden at Rawang, another joint venture with Mayland Group, with more details to be revealed at a later date.

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Spacious Planners breathed new life into this modestly sized flat and left it looking better than ever.
Project Type 3-room HDB Floor area 721 SQFT
Text: Redzman RahmatPhotos: Justin Loh, Shining Head MediaArt Direction: Betty Wong

Not only is this three-room HDB flat especially small at less than 800sqft, it was previously in a startlingly bad state. Homeowner Jenny Chua was shocked when she first saw the apartment. "The condition was horrible. Everything was old and dirty; even the flooring was falling apart!" The flat was completed in the 70s and its last owner had left it looking worse for wear.
Jenny was understandably hesitant about buying the home, so she roped in interior designer Sze Leng from Spacious Planners for her expert opinion. "Sze Leng was able to visualise the design of the home, even when it seemed dirty and unliveable," says Jenny. "I couldn't see the potential of the space but she managed to convince me that she could make it look completely different. I trust her and she has a lot of good ideas that helped me to make up my mind."

In fact, Sze Leng employed every trick in the book to visually and physically open up the interiors of this compact home. It started with a reconfigured floor plan that led to an open kitchen, an enlarged living room and a double-volume bedroom. The materials and textures used throughout the home were picked specifically for their space-enhancing properties. A white brick wall stretches across the kitchen, bringing visual interest without adding bulk; an oversized mirror hangs on the wall of the dining room to encourage the illusion of space; and even the kitchen cabinets are made from stainless steel for a clean and streamlined profile.
Jenny points out the dining table as another example of Spacious Planners' space-saving solutions. "I wanted to buy a new table, but thankfully Sze Leng stopped me! She custom-designed this all-glass table and attached it to the kitchen counter, and I think it looks amazing. It's almost like an invisible table that doesn't take up any space," Jenny laughs. This cantilevered dining table also acts as a soft boundary between the kitchen and the rest of the home, and its translucency makes the spaces feel light and airy.

The area that Jenny is most proud of has to be her newly minted bedroom. Initially, there were two bedrooms with a storeroom sandwiched between them. Sze Leng combined all three rooms into one, making space for a generous master bedroom. As per Jenny's request, Sze Leng also incorporated a walk-in wardrobe, a dressing room, and even a niche where the owner can keep bulky appliances like the vacuum cleaner, garment steamer and ironing board.
The walk-in wardrobe is one of Jenny's favourite things about the home. But that's just one of the many things that had Jenny impressed. She clarifies, "I'm just amazed at how much the home has changed since I first saw it. Not only does it look amazing, it also seems bigger and brighter than I ever thought possible. I love my new home!"

DESIGN NOTES Upon sacrificing some space from the living room, the designer accommodated a full-height shoe cabinet next to the front door.

DESIGN NOTES Nifty design tricks can visually enlarge a space. These include large mirrors, polished surfaces, clear glass and streamlined designs.
DESIGN NOTES Dress up empty corners of the room by creating functional but statement-making focal points.

Visit

for more inspiring home designs.
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Sunway, the master community builder, today announced that Sunway Iskandar's first phase, Citrine, an integrated mixed development with retail, signature designer offices and serviced apartments, has achieved a successful sell-out for its office suites in conjunction with the opening of its sales gallery.

Crowds throng the Sunway Iskandar sales gallery for its Citrine Designer Office Launch and priority registrationLocated a mere 500 metres away from the seafront straits at The Lakeview precinct, Citrine is designed with the philosophy of world-class balanced living, through its concept of being the Nature's Capital City. Citrine is designed to be a community where residents can enjoy having every convenience of a modern city, including a high speed broadband connection for all residence, while immersing in the beauty of nature with the exquisitely landscaped gardens and Emerald Lake.Citrine at The Lakeview precinct will comprise of 167 office suites and 51 retail units spanning over 140,000 sq feet next to the 20-acre tranquil Emerald Lake garden. The office suites range between 746sq ft and 1,671sq ft with the average selling price of RM760 psf. It will also provide 328 serviced apartments ranging from 618sq ft to 1,571sq ft with a price range between RM800 and RM900 psf.
Visitors browse the Sunway Iskandar masterplan model at the newly set-up sales gallery
Sarena Cheah, Joint Managing Director of the Property Development Division of Sunway Berhad for Malaysia and Singapore said "We are very encouraged with the strong response to our first launch as our buyers liked our approach in providing a holistic range of products to create a community within The Lakeview precinct to live, learn, work, shop and play."
As a sustainable community developer, we believe that we are not here just to sell properties, but to co-invest and continue to grow with the community in line with our build, own and manage business model. To ensure livability and comfort, we are also building our purpose-built Sunway International School (SIS)."
She also added "The serviced apartments will be launched next, followed by landed homes, all anchored around the Emerald Lake within The Lakeview precinct."
"With the overwhelming response for the designer office suites, we decided to immediately open registration for the priority preview of Citrine's serviced apartments," said Sarena Cheah.

Known for building townships and nurturing communities, this year marks Sunway's 40th as a trusted developer with a credible track record; featuring Sunway Resort City (Bandar Sunway), Sunway South Quay, Sunway Geo, Sunway Velocity, Sunway City Ipoh, and many more. Sunway was also contracted to build Asia's first Legoland Theme Park, Pinewood Iskandar Malaysia Studios, the central utilities facility at the Bio-XCell biotechnology park in Johor, as well as infrastructure projects including Mass Rapid Transit, Light Rail Transit and the Malaysia's first and only Bus Rapid Transit (BRT) - Sunway Line.
Encik Hisham Hamdan, Executive Director of Investments of Khazanah National Berhad said "Sunway Iskandar's first phase 100 per cent sell-out is a remarkable achievement and encouraging news to all stakeholders of Iskandar Malaysia. Since Khazanah and Sunway teamed up as a joint-venture back in 2011, we have been collaborating to drive Medini Iskandar's progress as a catalyst development for Iskandar Malaysia. We are confident that this is just the beginning of a greater success story."
Sunway Iskandar is a vibrant community in the making. Residents and families through all stages of their lives will contribute to the overall goal of a prosperous and balanced lifestyle for all in the community. It will be the example of modern Malaysia symbolizing economic prosperity for the entire southern region.
SUNWAY ISKANDAR - NATURE'S CAPITAL CITY
Sunway Iskandar is one of the largest township project over 1,800 acres of land, offering a world-class city balanced with the beauty of nature, making it a truly Nature's Capital City in Iskandar, Johor. It is a development strategically located within Medini with the largest seafront straits. Sunway Iskandar is expected to provide excellent connectivity to the residents and business owners with a driving distance of only 5 minutes to the Second Link via the proposed Southern Access. 40 per cent of which is reserved as green space with a total 700 acres of equatorial rainforest integrating into the township with natural elements such as the emerald lake, lush green forest, Pendas River and Straits of Johor. This master plan brings luxurious city lifestyle in nature with spacious homes and more landscaping for all residents to enjoy with a plot ratio of one.
The sales gallery of Citrine is located in Sunway Iskandar, Johor. Visit www.sunwayiskandar.com or call 019 - 203 7352 for more information.

Sunway Property As the property division of Sunway Group, Sunway Property is part of a leading property-construction group that is listed on Bursa Securities, Malaysia. It has vast experience in managing and developing innovative and quality residential and non-residential properties, which include retail, leisure, healthcare, hospitality and commercial assets.
Sunway Property constantly delivers products and services of unrivalled quality and value to its customers. This helps solidify its status as a leading community master developer with a high growth property development segment and a stable base of income from high yielding property investment segment. To date it has an enviable portfolio with successful and internationally acclaimed properties in Malaysia and abroad, including China, India, Cambodia, Vietnam, and Singapore. For more information, visit www.sunwayproperty.com .

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3,841 units released in latest BTO exercise, Temporary extension of stay for resale flat owners, Expect cooling measures to remain for the long-run, City Gate successfully launched, Developers venture abroad in light of weak local market
3,841 units released in latest BTO exercise
HDB has released 3,841 new flats under this month's Build-To-Order (BTO) exercise, consisting of Studio Apartments, 2- to 5-room flats and 3Gen flats in Punggol, Sembawang, Woodlands, Yishun, and Toa Payoh. Launches for Woodland's Kampung Admiralty and Toa Payoh's Apex attracted much attention. Commenting on Kampung Admiralty's popular Studio Apartment launch, Mr Mohamed Ismail, CEO at Propnex, told CNA "such studio apartments do allow Singaporeans who are older to be able to dispose of their existing flat and yet live so comfortably near all other amenities that are provided, and cash out from the capital appreciation of the past". Meanwhile the 4-room flats in Toa Payoh's Apex were oversubscribed, with 1.3 times more applicants than units available.
85 per cent of 4- and 5-room and 70 per cent of 2- and 3-room public flats were set aside for first-time applicants. Multi-generation families are given public flat options in Matilda Court, Waterway Sunray, Park Grove @ Yishun, Sun Natura and Toa Payoh Apex under the Multi-Generation Priority Scheme. Married couples can apply for 3Gen flats in Park Grove @ Yishun. In September HDB expects to launch 4,510 BTO flats in Bukit Batok, Hougang, Jurong and Kallang/Whampoa, as well as 3,000 Sales of Balance (SBF) flats in November. Mr Mohamed added that most of the backlog for first-time applicants has been cleared in this release and that for the coming years, first-timer's subscription rates could be below two or even less than 1.5.
Temporary extension of stay for resale flat owners
HDB has announced that flat sellers can now come to an agreement with their buyers to allow the former to continue staying in their homes for up to three months after completion of the sale. According to a blog post by Minister of National Development, Mr Khaw Boon Wan, this is intended to give sellers "sufficient time" to buy their next home, as "some do not have their homes to move into as they may not yet be ready (as) renovation is in progress, (and) others may first need funds from the sale of their current flat before they can complete the purchase of their next home". With the new policy, about 2,700 households (representing 15 per cent of all resale transactions) could benefit from the extended stay. Mr Eugene Lim, Key Executive Officer at ERA, told TODAY "it is something the market has been pushing for some time, and it is certainly a relief that we now have an official policy to allow for this temporary extension of stay for the seller after the completion of the sale".
Expect cooling measures to remain for the long-run
Following URA's release of data showing continued decline in private home prices in 2Q 2014, Keppel Land CEO Ang Wee Gee said that "home prices are expected to continue to moderate" therefore "Singapore is unlikely to relax property-cooling measures in the short term." Mr Nicholas Mak, Executive Director at SLP International, told The Edge Singapore that "developers that have deep pockets may not be under tremendous pressure to cut prices". He agreed with Keppel Land's view, adding that he "(doesn't) see the government relaxing the curbs for a year".
MAS confirmed this during the release of its annual report for the 2013/14 financial year, with Managing Director Mr Ravi Menon saying that it is "too early" to ease the cooling measures currently in place. According to Mr Ravi, "property prices have risen 60 per cent over the last four years but have declined by just 3.3 per cent over the last three quarters." He added that easing cooling measures during a period of low interest rates may start a spiral of price increases, and Singaporean households still need more time to reduce their debt levels.

City Gate successfully launched
Amidst a weakening property market, World Class Land and Fragrance Group's joint venture - Bayfront Ventures - successfully launched the mixed development project City Gate at Beach Road over the weekend. 78 residential units and 62 commercial units were sold at $1,800 psf and $2,900 to $6,200 psf respectively, with the help of aggressive marketing efforts by six real estate agencies. According to RHB Bank, the take-up rate by buyers is encouraging considering the current sluggish outlook.
Developers venture abroad in light of weak local market
As the government's cooling measures take a toll on the property market, local developers are venturing abroad for better opportunities, according to a report by UOB Kay Hian. The report states that many big Singaporean developers such as OUE's joint venture with Caesars Entertainment, City Developments Limited and Ho Bee Land have expanded their operations overseas. "Developers are deep in value but lack near-term catalysts. An analysis of the peak/trough P/B multiples in past cycles suggests that developers offer an attractive upside potential of 152% vs a downside risk of 39%. However, near-term news flow from the residential segment is likely to be negative. The slowing residential demand and elevated land prices in Singapore are prompting developers to explore overseas land acquisition opportunities," says UOB Kay Hian in the report. This also explains the mild participation rate for the latest government land tenders, ranging from four to twelve bids per tender. The report anticipates however that "business park and high-tech space will benefit in the medium term as rising occupancies and rentals for office space will lend support to a recovery in the segment".

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iProperty Group welcomes new major shareholder, Private property prices drop, unsold volume grows, HDB resale volume rises as prices drop, Dakota Crescent to start redevelopment work in end of 2016, Singapore's property curbs lauded, Keppel Land launches first US venture
iProperty Group welcomes new major shareholder
REA Group, Australia's leading digital advertising business specialising in property, will now own a 17.2 per cent share in iProperty Group. Mr Georg Chmiel, CEO and Managing Director of iProperty Group, said that "this substantial investment by the REA Group is a strong validation of our unique and leading market presence in Asia. REA's strong business acumen will be a major asset in advancing the iProperty Group's development, both in maintaining its current strengths and reaching new heights in Asia." REA's interim CEO, Peter Tonagh said that the acquisition provides the REA Group with a strategic stake in one of the fastest growing real estate markets in the world and complements its existing business in Hong Kong and the recent launch of MyFun.com as well as its partnership with Soufun.com in China.

Private property prices drop, unsold volume grows
A report by the Urban Redevelopment Authority (URA) last Friday revealed an overall decrease in private property prices of one per cent in Q2 2014, marking the third consecutive quarter of decline. Prices in the central region decreased the most at 1.5 per cent, followed by a 0.9 per cent drop in the suburbs, and lastly a 0.4 per cent drop in the city fringe areas. The falling prices appear to have resulted in the growth of resale transactions this quarter, from the sale of 941 units in Q1 to 1,314 units in Q2. The private residential property rental index also fell this quarter by 0.6 per cent, following a 0.7 per cent decline in Q1 2014.
The report also revealed an increasing vacancy rates in Q2 at 7.1 per cent compared to 6.6 per cent in Q1, contributing to the downward pressure on prices. Currently, the net new supply in the market stands at 4,715 completed units. A staggering 76,014 uncompleted units, excluding Executive Condominiums (ECs), are in the pipeline, and yet another 13,592 units including ECs are to be added. Colliers reported that in the remaining half of 2014, "the air of caution is expected to linger, as long as the punitive cooling measures and stringent loan curbs remain in place". Alice Tan, Director of Consultancy and Research at Knight Frank, commented to Channel NewsAsia that "if we see another price fall of five per cent and beyond for the second half of the year, this would then cause some form of concern".

HDB resale volume rises as prices drop
The Housing and Development Board (HDB) released a report on Friday as well, indicating the fall in HDB resale prices by 1.4 per cent compared to the previous quarter. The decrease in prices resulted in transaction volume increasing by 16 per cent this quarter. PropNex reported that the falling resale prices may be attributed to "government's measures to cool the public housing market such as, reducing the Mortgage Servicing Ratio (MSR) cap of 30 per cent and the maximum loan term of 25 years for HDB mortgage loans, three-year wait for new PRs (Permanent Residents) before they can buy resale HDB flats, and allowing singles to buy two-room BTO flats in non-mature estates". However, Mr Mohamed Ismail, CEO at PropNex, commented that as transactions increased in Q2, the expectation would be for the "resale market to pick up in the second half as lower prices may entice more buyers to possibly upgrade to a larger flat". Currently, the HDB resale price index stands at 195.7 points - the lowest in two years.
The leasing demand for HDB flats however, registered increases in transaction volume in the first two quarters this year. In an interview with Today, Mr Chris Koh, Director of Chris International, attributed this to expatriates turning to HDB rentals because of tighter budgets. The demand for leases is also likely to rise with the government's ruling last August in which PRs have to wait three years to qualify to purchase resale HDB flats. Still, rental rates remain flat due to the increase in the supply of flats eligible for subletting. According to HDB, the number of flats approved for subletting rose by 0.8 per cent this quarter compared to the previous quarter, adding approximately 93,700 flats to the HDB rental market.

Dakota Crescent to start redevelopment work in end of 2016
HDB issued notices last Wednesday stating that 17 blocks of flats in Dakota Crescent - one of Singapore's oldest estates formed in 1958 - are to be redeveloped. The redevelopment will see an estimated 400 households located in these blocks vacate by end-2016. As a majority of the residents are renting flats in this estate, HDB will give priority to residents in rental applications in other parts of Singapore. Residents who prefer to remain in the vicinity will be able to choose from flats at Cassia Crescent, which will be completed by Q3 2016. The tenancy agreement for the new rental flats at Cassia Crescent will be for two years, starting at $26 a month for a one-room flat, and $59 for a two-room flat.
Residents intending to purchase a new flat can apply for the CPF relocation grant of $15,000 for eligible families and joint singles, or $7,500 for eligible singles. HDB also indicated that temporary rental flats will be allocated to residents who have already booked new flats that will only be ready after end-2016. A removal allowance of $1,000 will be granted for eligible tenants.
Singapore's property curbs lauded
Bloomberg released a report on Wednesday comparing housing prices between Hong Kong, London, Manhattan, Singapore and Sydney, concluding that both Singapore and Hong Kong governments have greater "control over their economies and the behaviour of their residents." This is in light of statistics showing property prices increasing over the past 12 months by 20, 18, and 15.4 per cent in London, Manhattan, and Sydney, whereas Singapore and Hong Kong managed to cool prices by 3.7 and 0.6 per cent respectively. Bloomberg attributes Singapore's success to having a government "with policy-making power over their entire geographic areas, where they are relatively free of political opposition from neighbourhood groups or borough councils that stymie directives or mitigate their effectiveness," allowing MAS to effectively implement property curbs. Meanwhile, the UK residential market is in an apprehensive state. According to Halifax's quarterly Housing Market Confidence tracker, the net balance of people who believe that the next year will be a good time to purchase a home has decreased to 5 per cent from 34 per cent in Q1 2014. In the survey, 35 per cent of respondents thought that current prices are too high, compared to 20 per cent in 2013. Concerns regarding rising interest rates were also raised by 18 per cent of the respondents, compared to 13 per cent last year. On the contrary, there is high confidence (a net balance of 25 per cent) in the market that the upcoming period is a good time to sell. According to property analyst Hometrack based in UK and Australia, signs of a rapid cool down are showing especially in London.

Keppel Land launches first US venture
Singapore's third-biggest developer, Keppel Land, announced its first investment in the US in a statement to the Singapore stock exchange. The US$70 million (S$87 million) project located on the Upper East Side in Manhattan will be developed by Macklowe Properties Inc. Mr Ang Wee Gee, CEO at Keppel Land, said in the statement that "Keppel Land will continue to invest opportunistically in key global cities with good growth potential, while remaining focused on Asia, with Singapore and China as our core markets."

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A four-room HDB flat becomes a loft-inspired studio apartment that's perfect for a sophisticated bachelor.
Project Type4-room HDBFloor Area1,000 SQFT

A typical family of five living in a four-room HDB flat may feel the tight pinch of space, but for the bachelor staying here, the apartment size is a luxury. Inspired by lofty studio apartments, the homeowner approached Chew Interior with an idea to liven up the home and give it a stylish makeover.
The main idea, reveals chief designer Crestin Tan, was to integrate the design with the owner's expectations and lifestyle. From the choice of colours to the spatial layout, the design team was always aware that the result should be sophisticated and stylish.

COLOUR PLAY"The choice of colours was a main consideration," shares Crestin. "The homeowner wanted a darker masculine base for most of the home, and we then interspersed the interior with bright accent colours." As such, the design team gave the home a palette of deep neutral colours like browns and greys running through all the rooms. This was then contrasted with bursts of lively colours, like lime green on the wardrobe and cheery yellow upholstery on the sofa. The colour combinations work well, and even factors in future trends as the homeowner can easily change the accent colours over the years.

OPEN SPACEIn keeping with the requests of the owner, Crestin's team wanted to maintain a natural flow from room to room. "The living room is the centre of the home. From there, we wanted to have a clear line of sight into the other areas of the apartment. So we took away the bedroom doors and replaced them with black metal frames and clear glass." The same treatment was given to the kitchen entrance for a consistent look.

THREE-IN-ONEBeing the only occupant in this house means that the homeowner has no need for three bedrooms. Instead, he requested for the rooms to be combined into one luxuriously large area. The newly formed room now stretches across the apartment and incorporates the en suite bathroom, a raised sleeping area, a walk-in wardrobe and a corner dedicated to the study room.
Crestin reveals that the design was really a collaborative effort with the client. "He really knows what he wants in terms of the look and feel of the home, and that really helped with the process."

"The homeowner wanted a darker masculine base for most of the home, and we then interspersed the interior with bright accent colours."

Visit

for more inspiring home designs.
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Investors who bet on interest rate to go up from last year have lost out on a good year of commercial and industrial real estate investments capital gain and rental yield.
Remembering about the same time last year, I have an investor who said he is not investing because he agreed and is very confident that interest rate will rise soon. One year has passed and interest rate is still kept low. I think he has lost out quite a bit. I spent time explaining to him that it will be in the interest of USA for rate to be kept low but he thought otherwise.

Janet Yellen had said earlier that they will raise interest rate in the second half of 2015. Indeed, her latest indication is that she may want to keep interest rate low for the whole of 2016. Also, in Europe, ECB has adopted negative interest rate. Looks like the whole world wants to keep interest rate low. I strongly agree that the interest rate will still be kept low for awhile and when it rises, it will do so slowly.
What's next? Standing on the sideline for the next 1-2 years? Investors are already restricted with residential property investments due to the cooling measures. Of course, investors will and can continue to invest in other investment vehicles like commodities, equities etc. However, missing out on the real estate investments may not be the best because there are still plenty of opportunities in the commercial and industrial segments. There are still commercial and industrial investments with rental yield above 5% and 6% respectively excluding capital gain.
However, it is essential to learn how to invest in commercial and industrial investments before plunging. Majority of investors are more familiar with the usual residential investments which are very different from commercial and industrial. Thus, getting familiar with commercial and industrial requires proper guidance and training.
In view of the commercial market, the star performer this year should be the office sector. Office rental is increasing fast. CBD Grade A offices are enjoying a record high of about 97% occupancy. With rental expected to rise further, returns will rise in tandem making it attractive for investors. Also, office investments have lower barrier to entry. An investment budget (cash and loan) of about S$1 million will find you a good small office in CBD making it easier for investors to bite.
In general, commercial and industrial investments will continue to do well for the rest of the year.

This article is contributed by: Asia Wisdom Group

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The founder of the group has trained thousands of investors and practitioners in the area of real estate investment, particularly in commercial & industrial. We cover many aspects of commercial & industrial investment training with various programs catering to investors, practitioners, agents, industry players and stakeholders.

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RESI Report shows declining local market sentiments; increasing overseas investments, Singapore continues to feel the impact of property cooling measures, New developments for Woodlands and Yishun, Potential effect of increased toll charges and VEP on Iskandar Malaysia project, EASE to benefit more seniors living in HDB flats

RESI Report shows declining local market sentiments; increasing overseas investments
The Real Estate Developers' Association of Singapore (REDAS) and the Department of Real Estate (DRE), National University of Singapore released the Real Estate Sentiment Index (RESI) report this Wednesday, indicating a decline in overall sentiment at 3.5 compared to 4.5 in 2013. The RESI is compiled based on a survey of Singapore developers. According to Sing Tien Foo Associate Professor at NUS, "The further weakening of the future sentiment index reflects the pessimistic outlooks of developers on the property market in the next six months. The pressure of declining residential property prices and low take up in new launches is greatly felt." More than three quarters of the respondents (77.8 per cent) felt that there would be strong investment outflows into overseas real estate markets in the next 12 months. High transaction costs and high property prices in the local market were cited as key local drivers, whereas affordable prices and high yield returns were cited as key overseas drivers, conducive to foreign investment. United Kingdom (UK), Australia and Malaysia were singled as the top 3 countries expected to attract strong interest from Singaporean investors.
Singapore continues to feel the impact of property cooling measures
The effects of Singapore's property cooling measures are evidenced through rising vacancy rates, increases in the number of bad loans and lowered revenues for some developers.
Rising VacanciesBarclays recently reported that "of the 6,120 (private condominium) units that were uncompleted, launched and unsold as of 2Q14, 49% are from the Outside Central Region (OCR), a proxy for mass market private homes". CIMB provided similar findings indicating that "(Private homes) vacancy rate increased from 6.6% in 1Q to 7.1% (in 2Q)" and "Median rents fell slightly across all regions as physical supply increased with the completion of 4,902 units during the quarter (vs 4,114 in 1Q14)".
Bad loansWhile most banks have reported positive earnings and no systemic risk in their housing loan portfolios, UOB had stated that the number of bad loans has risen, particularly for home loan in high-end investments.
Lowered revenuesCapitaLand Group reported a drop in revenue of 13.2 per cent to S$875.3 million in Q2 2014. This was attributed to lower revenue in Singapore and China. In Singapore, the developer saw a 20.9 per cent year-on-year slip to S$317.8 million. OUE Limited also reported significantly lower revenues compared to its previous year, dropping 69.9 per cent from S$14.6m in Q2 2013 to S$4.4m in Q2 2014. Similar to CapitaLand, OUE attributed the lowered revenue to the lacklustre Singapore residential property market sentiment and the absence of contribution from the China hotels which were divested in September 2013.
Despite the effects on the market, Minister for National Development Mr Khaw Boon Wan noted that the current market conditions are premature to relax cooling measures. Earlier this week, Mr Khaw mentioned in Parliament that "Such a move could lead to an upswing in demand which would increase the number of transactions and raise housing prices." Real estate firm Savills' latest report indicate a continued strong market based on a 44.8 per cent increase of private residential units sold in Q2 2014 compared to Q1 2014. According to Savills, the increase was likely due to the strong sales for Lakeville, The Sorrento and Coco Palms which all saw take-up rates of over 90 per cent. The firm also notes that sales figures in June have affected the overall figures for the quarter, due to "school holidays and the World Cup".
New developments for Woodlands and Yishun
The towns of Woodlands and Yishun look set for revitalisation. In Woodlands, a retail and food complex project by the National Environment Agency (NEA) and Housing and Development Board (HDB) is targeted for completion by 2017. In Yishun, residents can look forward to a new integrated development called Northpoint City by 2018. The development will house an air-conditioned bus interchange, the first community club located in a shopping mall, a new town plaza, a roof-top Community Garden, and 920 private residential units. A town plaza, equivalent to the size of 10 basketball courts will be located within the development for hosting events, and the mall is said to be the largest shopping centre in the northern region of Singapore.

Potential effect of increased toll charges and VEP on Iskandar Malaysia project
On 1 August 2014, Malaysia increased toll charges for all motorists, except motorcyclists, travelling from Singapore to Johor through the Causeway. It has also introduced a new Causeway toll for all vehicles travelling from Johor to Singapore. This increase was announced after Singapore said on 1 July that a hike in Vehicle Entry Permit (VEP) will take place from 1 August. The Edge has reported a potential impact on the Iskandar Malaysia project following increased toll charges, and VEP by both the Malaysia and Singapore governments. In an interview with The Edge, Singapore Permanent Resident Andrew Gibson who lives in Leisure Farm in Johor, said that he will be affected daily "if Malaysia increases (their toll charges)". In the same article, Mohd Azizuddin Mohd Sani, Senior Lecturer at Universiti Utara Malaysia stated that "The decision in this charges hike by both countries...will definitely affect the Iskandar project if people movement is restricted by this hike".
EASE to benefit more seniors living in HDB flats
HDB is now extending the EASE programme to Singapore Citizen households with elderly family members aged 65 years and above (lowered from 70 years old), or aged between 60 and 64 years old (lowered from between 65 and 69 years old) and require assistance for at least one of the Activities of Daily Living (ADL). Launched in 2012, the EASE programme provides home owners with a range of elderly-friendly fittings including slip-resistant treatment to bathroom floor tiles, grab bars and ramps. More information on the programme is available on HDB InfoWEB at http://www.hdb.gov.sg or through the EASE toll-free hotline at 1800-9332990 from 8:00 am to 5:00 pm on weekdays (excluding Public Holidays).

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Make the most of every inch of your home with savvy styling tips.
Text: Chloe Elkerton
1 Kitchen - Trolley dolly Mobile storage units are perfect for kitchens especially when they look so retro.

Raskog kitchen cart, $89, from Ikea
2 Living Room - Clear Factor Acrylic and glass furniture give the illusion of space and light, visually opening up your room and allowing you to add function while not seeming to take up too much space.

Photo: Design Intervention
3 Storage - Tall and Slim Vertical storage units make use of wall space that often gets forgotten about.

Occa modular shelves, $695, from Bo Concept
4 Furniture - Neat Folds Foldable or stackable chairs are a good dining solution that enables you to put them aside when not needed. The Real Good Chair combines cutting edge design with practicality.

Real Good Chair $251, from Grafunkt
5 Colours - Wow factor Wallpapers and curtains and upholstery are a great way to add pops of colour into small spaces.

Kyoto Koi cotton canvas, $60 per meter, from Korla.

"Decorating a small room can be a challenge, but small does not have to mean boring with these smart decorating ideas."
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We take a closer look at the second development of Country Garden in Malaysia and their charity efforts with the biggest run in Johor this August.

Like a Spanish rose in the tropics, standing out from among the sea of luxurious apartments and villas, Country Garden Diamond City is the latest mega project in Kuala Lumpur by Country Garden, one of China's top 10 developers.
With a highly successful track record of over hundred high-end projects in China and the holder of the incredible RM5 billion launch sales record last year for Country Garden Danga Bay, Country Garden's latest mission is to establish themselves as one of the premium luxurious lifestyle project developers in this region.
Living up to their motto of providing a "5-star living for you" with this latest Spanish-inspired offering, this joint venture between Country Garden and Mayland Group offers a 102ha freehold development of almost a thousand units of luxury link houses, bungalow and mansions.

Priced at between RM900,000 and RM5.8 million and located in southern Klang Valley, this project offers a luxurious low-density, high privacy and high comforts environment. Catering for senior executives or large families with a taste for the finer things in life, it even comes with a golf thematic landscaped garden with more than 300 species of plants.

During iProperty.com's tour of the development, I was left in awe at the 57,000 sq ft clubhouse that will offer residents an infinity swimming pool, badminton and squash courts, bowling alley, a private theatre, gym and activity room. Throw in a full array of retail and entertainment choices that will be part of its one-stop living promise, one would certainly loathe to leave the premises for fear of having to compromise on this all-encompassing lifestyle facilities elsewhere.

The tour of the various bungalows and mansions was also an eye-opener for the media as the vast space afforded to the future residents were in plain sight the moment you stepped through the door. With the intricate hand-crafted decorations and murals outlining the entire house, the ease with which the residents is allowed the space to roam about through the entirety of the property would certainly make for a residence that one just cannot wait to get home for.
With the units able to accommodate large, three-generation households and yet, not intruding on the privacy and personal space of every individual member, Country Garden Diamond offers buyers a multi-generation luxury space that caters to every whim.
And with that in mind, the educational facilities includes a school, reading room and library on the premises, with the University of Nottingham Malaysia Campus located directly opposite as well. And should one really feel the need to exit the premises, it is but an eight-minute drive away from the Kajang Station MRT Line 1, and only 30 minutes from Putrajaya and 45 minutes from Kuala Lumpur City centre.
Apart from the all the facts and figures readily available from the developers themselves, some of the interested buyers had some other interesting considerations that bodes well for the project sales too. Some of them commented that the security and privacy provided by the gates and guards was a one of the attractive selling points, while another was impressed by the fact that it sits in front of Broga Hill, with the lake garden situated at the entrance, providing a natural prime Feng Shui spot.

If you have read our previous interview with the Regional President of Country Garden Malaysia Mr Kayson Yuen, you would know that although Diamond City has been in the news recently, Country Garden is still focused on their maiden project in Iskandar Malaysia. As part of their continued efforts in supporting the local community through charity concerts, education funds and other charitable activities, they will be organizing the biggest race in Johor on 23rd August 2014 at Country Garden Danga Bay, Johor Bahru.
Registration free and open for all ages (18 years old and above), this charity run comprises of two different routes of 15.9km and 7km respectively, with Country Garden donating RM10 to selected charity organizations for each registration. With the closing date on 18 August 2014, head to www.runforlove.com.my and sign up for this race and do your bit for charity today.
With attractive cash prizes up for grabs, with the Champion of the 15.9km and 7km run receiving RM10,000 and RM5,000 respectively, you should definitely register for the run and make a dash for charity!

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Falling resale and rental prices of private and HDB homes lead to increase in resale volumes and rental transactions, Increased vacancy rates and cautious developers, Property experts suggest a review of older cooling measures

Falling resale and rental prices of private and HDB homes lead to increase in resale volumes and rental transactions
The Singapore Real Estate Exchange (SRX) reported a further decrease in resale prices of non-landed private homes and Housing and Development Board (HDB) flats from June to July. Prices dropped 1.3 per cent and 0.9 per cent month-on-month for private homes and HDB flats respectively, bringing prices to their lowest since 2012. The lower prices brought about a slight uptick in resale volumes, with a one per cent increase in private home transactions and a 1.9 per cent increase in HDB flat transactions, from June to July. The resale volume for HDB flat transactions however, dropped by 10 per cent "from a year-on year perspective", stated Ms Christine Li, Head of Research and Consultancy at OrangeTee to Today newspaper, also indicating that she "expects demand to stay subdued and resale prices to depreciate by around 5 per cent for the whole of this year".
Specific to non-landed private homes, prices in the Core Central Region (CCR) were most affected, falling by four per cent, followed by prices in the Rest of the Central Region (RCR) at 1.1 per cent and those in the Outside Central Region at 0.6 per cent. According to Mr Chris Koh, Director of Chris International, in a Today interview, prices in the CCR have fallen as they were considered to be on "the high side" and loans are harder to get with the Total Debt Servicing Ratio (TDSR). He also noted this could also be attributed to fewer foreigners purchasing because of the Additional Buyer's Stamp Duty (ABSD), since "foreigners are the majority of buyers in the CCR".
For the public housing market, prices of three-, four- and five-room flats declined by one, 1.8 and 0.4 per cent, respectively. Executive flat prices were however on the uptrend, by 0.1 per cent. Mr Nicholas Mak, Executive Director at SLP International, echoed Mr Koh's sentiments about the cooling measures affecting demand for HDB flats. He told Today, "Loan restriction rules...continue to dampen the demand for HDB flats as some potential buyers face limitations in their loan applications" and added that "new permanent residents (PRs) have to wait three years from the date of obtaining their PR status before they can buy HDB resale flats, thus the demand for HDB resale flats is lower, while the supply is (increasing) as more and more HDB flats complete their five-year minimum occupation period".
The downward trend of resale prices has resulted in an increase in rental demand in both the private and public property segments. For private homes, rental volume increased by 5.3 per cent in July, while rental volume for HDB flats increased by 1.7 per cent; rental prices for both segments have however dropped by 0.8 per cent and 1.5 per cent respectively. Mr Eugene Lim, Key Executive Officer at ERA and Ms Li both told Today in separate interviews that rental prices are expected to drop further due to the upcoming supply of private homes, along with efforts in reducing the foreign talent pool. A recent report by Jones Lang LaSalle (JLL) on the increase in tech companies setting up or expanding offices in Singapore, as well as Asian operations for companies such as L'Oreal, may change this trend. JLL stated that "Singapore's pleasant lifestyle has made it a draw for companies looking to attract top talent". Some of the companies noted in the report include eBay, Facebook, Google, LinkedIn and General Motors.

Increased vacancy rates and cautious developers
The Urban Redevelopment Authority (URA) reported that 7.1 per cent of completed private homes remained vacant in Q2 2014. While this is the highest vacancy rate in eight years, property observers such as Mr Alan Cheong, Senior Director of Research and Consultancy at Savills Singapore, commented to Channel NewsAsia that "6 to 7 per cent is the normal or healthy vacancy level in Singapore", with the current price conditions and cooling measures in place. He cautioned however that "vacancies will increase as more projects get completed in the course of the next couple of years", even heading "towards double-digit levels like 10, 11 per cent".
URA gauges that 24,893 homes will be completed in 2015 and an additional 29,582 homes completed in 2016. Only 20,023 homes are expected to be completed in 2014 and only 14,400 were completed in 2013. Mr Nicholas Mak, Executive Director at SLP International, indicated to Channel NewsAsia that investors with units in the OCR may encounter challenges renting out their units due to the lack of amenities and accessibility. He explained that "when there is more supply of available units for lease and slowing demand in the leasing market, some of the tenants will have a flight to quality - better located ones or those located nearer to their offices". According to SLP, the vacancy rate in the OCR was at its peak in Q2 2014 at 5.6 per cent. Developers with projects that are tagged with a Qualifying Certificate are required to sell all units two years after receiving the Temporary Occupation Permit. According to the Singapore Land Authority, from January to May alone, 11 developers have applied and paid for an extension of time to complete the sale of their units.
The slowdown in demand and fall in prices appear to have resulted in more conservative bids for two Sengkang 99-year leasehold sites selling under the Government Land Sales (GLS) programme. A consortium formed by CEL Development and Unique Residence were the highest bidders for both sites, at S$438.20 per square foot per plot ratio (psf ppr) for the 178,723 sq ft Fernvale Road Parcel A and S$448.35 psf ppr for the 187,441 sq ft Fernvale Road Parcel B. The bids were below what analysts had estimated, in the range of S$450 to S$500 psf ppr. Ms Christine Li, Head of Research and Consultancy at OrangeTee, told Channel NewsAsia that "selling prices could start from about S$970 to S$990 psf" for the sites that can potentially yield about 1,100 private homes in total.

Property experts suggest a review of older cooling measures
While Minister for National Development Mr Khaw Boon Wan said in Parliament last week that relaxing cool measures now would be premature, panellists at the annual National Real Estate Congress feel otherwise. Property experts such as Mr Dennis Yeo, Managing Director of Colliers International and Mr Eugene Lim, Key Executive Officer at ERA, said that the Seller's Stamp Duty (SSD) and the Additional Buyer's Stamp Duty (ABSD) can be reviewed. Today quoted Mr Yeo as saying "I think it's time for the Government to start looking at whether some of the earlier measures have become redundant because we have a pretty effective TDSR". Mr Lim said that speculation is limited as shown by the low sub-sales number "across all types of properties" thus it "could be an opportune time to review the measures aimed at tackling speculative buying and selling, which is essentially the SSD". Sing Tien Foo Associate Professor at NUS, and Seah Seng Choon, Executive Director of the Consumers Association of Singapore, felt however that "the cooling measures continued to act to prevent the formation of a property bubble". Mr Lim noted that while the ABSD should continue to "prevent foreigners from buying and driving up prices", it should be removed for local buyers since the TDSR is keeping them in check from "over-gearing". He also emphasised that "Developers also have a lot of stock to clear".

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Buyers and developers cautious in apprehension-filled property market
In the uncertain property situation, players are as good as cautious chess masters, each awaiting the other's move before deciding their next strategy. Developers are holding back new non-landed private homes, launching only 434 units in July, slightly higher than the 418 units in June. Barclays noted in a recent report that there is a "rising risk of unsold inventory, across both high- and low-end segments". Sales figures remained stagnant month-on-month and year-on-year, with only 484 units sold in July. In each of June 2014 and July 2013, 482 units were sold. In a Today interview, property agency ERA's Key Executive Officer Eugene Lim said, "The low number of launches resulted in low sales. Developers are trying to clear their current stocks instead of launching new projects in a market where sentiment is low due to cooling measures and loan curbs that have affected buyer demand."

Specific to Sentosa, part of the Core Central Region (CCR), sales volume of non-landed homes have fallen, from 71 units in 2012, to 34 in 2013 and 10 so far in 2014. Prices lowered to under valuation have however, seen a positive take up. A penthouse unit at The Berth By The Cove was sold at a cheap price (by Sentosa Cove standards), of approximately $1,150 per sq ft (psf), while resale units at Turquoise and The Oceanfront were successfully sold at $1,500 psf and $1,600 psf respectively. Analysts commented on Channel NewsAsia that weaker property markets in District 1 and 4 are "putting a drag on the CCR". Contrary to weakening sales, Barclays reported a surge of sales of 91 per cent in District 9 and 10, as prices dropped as much as 20 per cent. Units at The Vermont in Cairnhill were fully sold when the median selling price was lowered by about nine per cent while 63 per cent of units at Hallmark Residences, off Bukit Timah Road, were sold when prices were lowered by 14 to 20 per cent.
Developments in the Rest of Central Region (RCR) continue to remain popular and accounted for 46.1 per cent of new private home transactions and most of the new launches by developers. The 311-unit City Gate was one of the top-selling projects, with 89 units sold, while Commonwealth Towers sold 78 per cent of the units released.
City Developments Limited (CDL) highlighted the potential of panic selling should sales volumes and prices continue to fall. "The general trend in a downturn cycle is that residential sales volume will start to fall and prices will dip slightly, leading to a more acute downward pressure, with spiralling effects, as panic selling or forced sales seep in. This applies across all segments of the residential property market," said Executive Chairman of CDL Kwek Leng Beng to Today.
URA continues residential site launches and tender awards amidst weakening marketEven as the property market weakens, the Urban Redevelopment Authority (URA) continues to release residential sites for sale to "provide home buyers with more choices for private housing". This week, URA announced the launch of a residential site at Lorong Puntong and an Executive Condominium site at Sembawang Road / Canberra Link, under the second half Government Land Sales (GLS) Programme. The two sites are estimated to yield about 900 residential units.
Developers continued to show interest in newly launched sites. A 99-year leasehold commercial and residential site at Meyappa Chettiar Road, released from the GLS Confirmed List, attracted 15 bids. Analysts who spoke to Today felt developers showed restraint, noting that the top bid, made by MCC Land (Singapore), was within expectations. MCC Land (Singapore) submitted a bid of $471.6 million. The site can yield an estimated 685 homes and 53,820sqf of commercial space, and is located near the Potong Pasir MRT Station. Mr Ku Swee Yong, Chief Executive of property agency Century 21 told Today that he estimates the break-even price for the project to be $1,200psf and the selling prices of homes to be $1,400psf.
Jurong to be less industrial with more greenery in storeIn his National Day Rally Speech last weekend, Prime Minister Lee Hsien Loong announced plans for the integration of the Japanese Garden and the Chinese Garden with Jurong Lake Park, creating the Jurong Lake Gardens. The Jurong Lake District has seen an increase in commercial activity in the Jurong Gateway precinct, with the openings of shopping mall Westgate and institutes such as the Devan Nair Institute for Employment and Employability and the National Continuing Education and Training campus. The new Science Centre Singapore will be located in the Gardens in 2020 and more Housing and Development Board (HDB) flats are planned for the north and south of the precinct. Residents and commuters travelling to the area will also be served by new MRT lines - the Jurong Region Line by 2025 and Cross Island Line by 2030.
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Five bedding professionals share their tips for buying the perfect mattress.

Is a more expensive mattress always better?

Although price doesn't count for everything, a higher-quality mattress is usually bought at a higher price. So try to look for the best that you can afford. Remember, this is an investment that will last for years! Additionally, your new mattress shouldn't deviate too far from your existing mattress. Your body needs time to adjust to the new firmness and feel. So if you're used to sleeping on a soft mattress, I would recommend getting a firmer mattress with a thicker pillow top. Your body can gradually get used to the changes. And when testing mattresses, try a maximum of three at any one time. Anymore will simply confuse you!

Michelle Anne Ng,

Marketing Manager of Simmons

What important factors should i keep in mind when buying a mattress?

You can assess your needs before you start shopping by asking yourself these questions: Has your lifestyle changed since buying your last mattress? Has your comfort preference changed? Does your partner have the same needs? Comfort, support and durability are the most important factors to look for first when buying a mattress. After that, take price into consideration.

Victor Lim,

Sales & Marketing Manager of Serta

What properties should I look for in a good mattress?

Choose a mattress that offers you good quality sleep, not just comfort and support. Quality sleep means you enjoy longer hours of deep sleep, and wake up feeling more refreshed. If you're subconsciously tossing and turning during sleep, then you will have bad quality of sleep. This commonly happens when there are pressure points created by objects (like springs) pressing against your body, which in turn, inhibits blood circulation.

Oey Mei Dee,

Country Manager of Tempur

How do I take care of a mattress to ensure it will last longer?

Mattresses today are quite durable. The biggest tip I can offer is to be sure that you buy a quality mattress pad to put over your mattress. This pad not only provides insulation from body fluids, but it also prevents body impressions in your new mattress. The number one cause of body impressions isn't weight, inexpensive foam, or a non-supportive coil system. What causes mattresses to break down is body heat and perspiration. Using a good quality mattress pad will assist in keeping body impressions to a minimum.

Michael J. Malkiewicz,

Asia Pacific Sales Director of Restonic

What's the best way to test a mattress?

Before shopping for a mattress, make sure you dress comfortably and wear shoes that you can easily remove. Lay down on the mattress in the position that you most frequently sleep in. Then, starting from the centre of the mattress, roll to the sides to test the springs and support. If your spine doesn't have the right support it needs, your muscles will be working throughout the night trying to maintain your spine's natural curved position. Finally, take your time in the selection.

Yovi Lee,

Marketing Manager of Castilla

Visit

for more inspiring home designs.
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Cooling market: bane or boon? Thomson-East Coast line to boost property prices: UOB Kay Hian, Concerns continue over Lease Buyback Scheme despite revisions, Cluster housing developments to enjoy more communal space and greenery

Cooling market: bane or boon?
In light of the cooling market, sentiment is rising among investors, while uncertainties plague sellers of older properties and developers. A recent survey by Manulife recorded an increase in the Manulife Investor Sentiment Index to 15 points, the highest since the launch of the survey in Q1 2013. Manulife reported that the "proportion of respondents who think it is a good time to invest in their own home rose to 40 per cent in the second quarter (from 31 per cent in the second quarter)", citing "low interest rates, market stability and, importantly, the view that property prices have corrected to an attractive entry level for investment".
At the same time, the vacancy rate of private homes has risen from 6.6 per cent in Q1 2014 to 7.1 per cent in Q2 2014, bringing the total number of vacant private residential units to 21,268 island-wide. According to Savills the vacancy rate is rising "despite the strong leasing demand in Q2 2014". The real estate services provider also notes that most of the projects that have added to the rising vacancies are "in the suburban areas, such as The Lakefront Residences on Lakeside Drive (629 units), Foresque Residences on Petir Road (496 units), Waterfront Gold on Bedok Reservoir Road (361 units) and The Greenwich on Seletar Road (319 units)".
Contributing to the negative sentiments among developers are sellers who have put their properties up for collective sales, or en-bloc. Real estate services firm Colliers International noted that "not a single attempt at a collective sale succeeded between January and July this year" and that this will not change unless "sellers lower their price expectations and stop aiming for huge windfalls". However, the collective sales route is still considered to be "relevant and can still be meaningful for owners of older properties". Colliers said, "Sellers must accept that making a sudden windfall from chance is a thing best filed in the annals of history... The way forward for collective sales should be that of a practical method of disposal for an ageing asset that is past its functional prime".

Thomson-East Coast line to boost property prices: UOB Kay Hian
UOB Kay Hian said in a recent report that the upcoming Thomson-East Coast line (TEL) will "likely see 5-15 per cent capital gains" for residential developments in the East Coast area, increased shopper traffic for retail malls and tenant demand for offices and industrial properties. TEL station locations include Tanjong Rhu, Katong Park, Amber, Marine Parade, Marine Terrace, Siglap, Bayshore, Bedok South and Sungei Bedok and will be walking distance from an estimated 160,000 households. The report noted that "travel times will be reduced by 15-30 mins and almost by half for a resident travelling from East Coast to Orchard".

Concerns continue over Lease Buyback Scheme despite revisions
An extension of the Lease Buyback Scheme (LBS) to include 4-room flat owners was announced last week by Prime Minister Lee Hsien Loong at the National Day Rally. The LBS is an additional monetisation option to help low-income elderly households to unlock part of their housing equity while they continue living in their homes, and receive a lifelong income stream to supplement their retirement income. Under the scheme, participants sell a part of their flat lease to the Housing & Development Board, retaining a 30-year lease. Their proceeds from selling part of the flat lease will be used to top up their CPF Retirement Accounts for annuity payouts. Concerns of outliving the 30-year lease and wanting to retain shorter leases are some reasons cited for the slow take up of the scheme. Speaker of Parliament Halimah Yacob, who chairs the Pioneer Generation Joint Committee, said that the committee will look into addressing these concerns.

Cluster housing developments to enjoy more communal space and greenery
The Urban Redevelopment Authority (URA) has announced revised guidelines for strata landed housing developments, to reduce the likelihood of additional traffic and parking problems and a congested living environment - concerns raised by residents in landed housing estates regarding such developments. Key changes to the guidelines took place from 23 August 2014 and include:
- A new set of formulae to determine the maximum number of houses allowed in various types of strata landed housing developments generally resulting in fewer strata landed units compared to the previous formulae.- A requirement for developers to set aside at least 45 per cent of the land area for communal open space, up from the current 30 per cent.- A minimum of 25 per cent out of the communal area to be set aside for on-ground greenery.- A maximum of 20 per cent to be used for communal facilities like swimming pools and playgrounds.
According to a Today report, property analysts believe that the impact of the new rules on pricing and buyer demand "should be limited, although interest from developers could wane". In the interview with Today, Mr Alan Cheong, Senior Director for Research at Savills said "Under the new guidelines, developers may have to build at a loss of revenue because the social value of having more communal space cannot translate directly into monetary value. But prices are still largely dependent on market conditions...Considering these factors, cluster housing developments may become less appealing to developers. But I don't see this causing any substantial change to the private property sector — the cluster housing segment is only a very small part of the more than 800,000 landed units in Singapore".

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Mixed views on falling prices and transactionsThe Singapore Residential Price Index (SRPI) flash estimates released last week by National University of Singapore's Institute of Real Estate Studies, showed a decline in resale prices of completed non-landed private homes in July. The overall price fell 0.3 per cent from June to July. Homes in the non-central region saw prices increase marginally, by 0.1 per cent, while central region home prices fell by 0.7 per cent; prices of small units (floor area of 506 sq. ft. and below) in the central region decreased by 0.8 per cent.
CIMB noted in a 31 August report "Prices and volume are likely to remain weak in the short- to mid-term, caused by 1) short term supply pressure, 2) reduction of investment demand and 3) policy restrictions". The bank expects private home prices to "retrace by five per cent this year, with a through-the-cycle correction of 15 per cent over the next 3 years". The report also noted that from January to June, private home transactions declined by 57 per cent on a year-on-year basis.
Despite the slowdown in the property market, Chairman of Wing Tai Holdings, Mr Cheng Wai Keung, advised against slashing prices in the luxury home segment. He explained in a Today interview that, "There is no point in lowering the price ... it's almost like retail — you don't see the high-end, luxury products on a fire sale. If LVMH does that, it is destroying its brand. In the high-end (segment), you're selling a brand image; not for utility. If it's for utility, you can never sell at that kind of price." Wing Tai Holdings has kept the prices of its properties, including freehold Ardmork Park and Le Nouvel Ardmore, intact despite having sold only three of the 43 units on offer. The company has until mid-2016 to sell all the units under the Qualifying Certificate and Mr Cheng intends to "hold...prices (for now) and wait until that time to make a decision".
Other developers have gone ahead to lower prices of their projects to increase take-up of units. MCL Land, for example, reduced prices of Hallmark Residences located in the Core Central Region (CCR) by about 10 per cent in early 2014.

Singapore homes getting smaller however considered affordableThe common saying "the bigger, the better" rings true in many cases, but not when it comes to homes in Singapore. CIMB noted in its 31 August report that with the median size of homes falling from an average 1,200 sq. ft. to the current 800 sq. ft., most buyers chose smaller units to keep the investment more affordable. With the population-per-housing stock increasing to a historically high level of 4.4, CIMB suggested that there are now more people crammed under a single roof than before, implying pent-up demand. Based on CIMB estimates however, housing is still relatively affordable. The bank noted that Singapore now has a lower median home price to income ratio for both private and public housing, compared to the mid-1990s, 2007 and 2010. The report also stated that "Mortgage instalments as a percentage of monthly wages is at a low, due to the still low interest rate environment. Even after taking into account a higher mortgage rate of 3.5 per cent, used to assess homebuyers affordability under the Total Debt Servicing Ratio limit, housing still remains relatively affordable".
Sentosa SlowsCommercial real estate services firm CBRE reported that only one Sentosa transaction took place in H1 2014 - a bungalow on Treasure Island that sold for S$17 million (S$1,506 psf) - compared with 18 bungalows sold in H1 2013. The same property was sold in 1H 2010 for S$17.8 million. CBRE attributed the stagnant state to the additional buyer's stamp duty (ABSD) of 15 per cent imposed on foreign buyers, as well as uncertainty in obtaining the LDAU (Land Dealings (Approval) Unit) approval to buy. The firm nevertheless expects sales activity to pick up in H2 2014, with an increase in efforts by the developer of Pearl Island to its remaining bungalows, as well as Sentosa Cove's exclusive resort-like waterfront living, attractive to high net worth individuals (HNWI).
Non-landed residential site development charges to fall in slowing property marketFor the next six months, the development charges (DC) for approximately half of the geographical sectors in the non-land residential segments will be reduced. This reduction (the first since March 2012) is the result of efforts by the government to curb rising prices.
The Urban Redevelopment Authority (URA) yesterday said that the non-landed residential sites' DC charges will decrease between 2.8 and five per cent for 55 of 118 sectors during September to February, in comparison with the previous six months. Calculations from property consultant Colliers International displayed a 1.6 per cent average reduction across the segment. All the sectors' DC rates remained the same, except for two sectors that witnessed a decline of five per cent. These two sectors cover Prince Charles Crescent, Alexandra Road, Tanglin Road and Telok Blangah Heights. Mr Ku Swee Yong, Chief Executive Officer of Century 21 commented to Today that the fall in DC is not surprising, given the downward trend in URA price index, particularly for the Core Central Region. He added that "several new launches in those areas, where the chief valuer has lowered DC rates, also did not do so well". Similar sentiments were shared by Ms Chia Siew Chuin, Director of Research and Advisory at Colliers International. She said in a Today interview that developers are more conservative in their bids for Government Land and that residential collective sales were unsuccessful this year. On the other hand, land for commercial use will see DC rates rise. Of 118 sectors, 26 will see an increase by five to 11 per cent. The remaining 92 sectors will see rates remain unchanged. The average increase for the DC charges will be two per cent.
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