2017 Singapore Residential Property Market Report - Your guide to the private non-landed residential market - DREA.sg
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2017 Singapore Residential
Property Market Report
Your guide to the private non-landed residential market
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Disclaimer
This document is being made available by DREA for information purposes only and is for our
clients only. The document is strictly confidential and remains the property of DREA. The
Recipient agrees that it shall only use this document for the purpose of evaluation and
considering the matter to which this document relates to. This document may not be published
or reproduced in whole or in part to any other person nor relied upon by the Recipient or any
other person without the prior written consent of DREA.
This document does not constitute nor does it form part of an offer to sell any assets described
herein or an offer or recommendation to enter into any transaction described herein. The
Recipient is responsible for making its own independent investigation and appraisal of the risks,
benefits, appropriateness and suitability of any transaction or matter contemplated by this
document and DREA is not making any recommendation (personal or otherwise) or giving any
investment advice and will have no liability with respect thereto. The decision to proceed with
any transaction or action contemplated by this document must be made by the Recipient in
the light of its own commercial assessment and DREA will not be responsible for such
assessments.
This document was prepared on the basis of information and data, obtained from publicly
available sources. The information in this document has not been independently verified by
DREA. DREA has relied on the information provided by third party or public sources as
complete, true, fair, accurate and not misleading. DREA does not make any warranty or
representation, express or implied, as to the accuracy, completeness or reasonableness of the
information (including assumptions) contained in this document whether obtained from or
based upon third party or public sources or otherwise.
This document is given as at the date hereof and is based on information available to DREA as
at the date hereof, is subject to any assumptions set out therein and is subject to change
without notice. Accordingly, this document may be based on data and information that may
no longer be current and subjective assessments. It should also be understood that DREA does
not undertake any obligation to provide any additional information or to correct any
inaccuracies which may become apparent. Any data or information regarding, or based on,
past performance is no indication of future performance. Recipients should consider whether
any advice or recommendation is suitable for their particular circumstances and if,
appropriate, seek professional advice, including tax advice.
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Summary
2016 has been an interesting year for the Singapore Residential Property Market
Cooling measures stayed in place and prices continued to soften for both sale
transactions and rental
Against a backdrop of declining prices, a 16% Year-on-year growth in transaction volume
and demand indicates that regulators' intention for a soft moderation of property prices is
playing out
As it stands today, the URA private non-landed residential price index is fast approaching
prices during the 2008 pre-crisis peak (but still 30% above the lowest price points during
the 2009 crisis)
As overall vacancy rates touched a new high in 2H’16, we saw an accelerated decline in
rental rates; Rental rates for 1- and 3- bedroom units declined ~8% YoY
Offsetting this is a 0.1 - 0.4 % points decline in mortgage rates in 2016
Refinancing has also been a key theme as homeowners made a shift away from Fixed
Rate Mortgages towards other mortgage types
Looking forward, we view 2017 as a pivotal year and see some bright spots ahead
2017 is the year of peak supply (in terms of units completing and scheduled for TOP) and
total new supply will be meaningfully reduced for 2018 onwards
While there are still ~15,700 unsold units in the market, the issue of over-supply is starting to
ease as developers push out innovative payment schemes and discounts
Developer confidence appears intact, as some of them selectively seek out new land
sales (even in areas with meaningful number of unsold homes)
The strengthening of the SGD against neighboring currencies going forward – especially
the IDR, INR and CNY – could make Singapore property assets a compelling asset class for
foreign investors and spur overall demand
We however caution that there has been an increase in the number of loss-making resale
transactions for 3 straight years by now; these include units sold within the 4-year window
which are still liable to seller stamp duty
2016 has been an interesting year where
we saw demand growth against declining
prices – a sign of cooling measures playing
out as per regulatory objectives
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Summary
Opportunities for Buyers
It is increasingly possible to find 1000-1500 sqft units at under S$ 1 mil in the city fringe
Those looking to buy in 2017 may also want to zoom in on:
i) Developer sale units for projects which are subject to QC Charges or ABSD
remission claw-back charges in 2017
ii) Untenanted resale units originally bought in 2013 for investment purposes. There
may be room to negotiate a good deal in face of a softer rental market
iii) Resale units bought in 2009, where existing owners are likely still sitting on
meaningful capital gains
Opportunities for those looking to rent
It is possible to find rental units which are within 10 mins walk to MRT, malls and other
amenities at
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2016 Market Recap
-
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Prices continued to soften in 2H 2016
URA Private non-landed residential property price index (Q4 1998 = 100)
ABSD
160 TDSR
LTV
150
140 Pre-crisis peak
130
120
110
100
90
80 ~30% above
70 crisis-low
60
50
’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16
Sources: URA, DREA
Property prices continued to dip in 2H2016 under cooling measures that have been in place since
2013. As it stands today, the URA private non-landed residential price index is still 30% pts above crisis
level but is fast approaching the 2008 pre-crisis peak. While all indicators suggest that regulator’s
policy intent for a soft moderation of property prices is playing out, a key uncertainty is whether
cooling measures will begin to be lifted once prices begin to reach the 2008 levels.
MAS revised the hard rules regarding the 60% debt limit for TDSR, allowing overleveraged borrowers
to refinance their housing loans, but insists that “the refinements... do not represent a relaxation of
property market cooling measures.“ Minister for National Development Lawrence Wong also
recently reinforced the idea that the cooling measures will not be removed anytime soon.
"If and when capital inflows come…it's very easy to cause fluctuations in our
property market, and we don't want that to happen”
Minister for National Development
Lawrence Wong
Prices continued to soften at a
controlled pace and is fast
approaching the 2008 pre-crisis peak
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Demand however continued to grow
Underlying the headline decline however, is a trend of continued demand growth. At the same
time, we observe that certain sub-segments of the non-landed residential market is beginning to
stabilize.
Increasing Transaction Volume vs 2H15
15,521 15,685
10% 17% CCR RCR OCR
Number of Transactions
12,343
24%
22% 16%
+18%
30% 7,638
7,092
6,476 6,094 16%
18% 5,477 5,382 11%
66% 12% 4,453 18% 28%
61% 31% 16% 30%
32% 21% 26% 34%
54%
32%
51% 59% 57%
56% 58% 48%
47%
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16
Prices in most sub-segments are also stabilizing
S$ PSF Stable / Slight increase vs 4Q15 S$ PSF Slight decline vs 4Q15
1,800 1,600
1,600
1,400
1,400
1,200
1,200
1,000
1,000
2000ft 1500-2000ft
600 600
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16
Headline property price decline is
however underlined by demand
growth and price stabilization in
certain sub-segments
Powered by DREA *Refer to Appendices for name of districts
Change in volume
Volume of sale transactions by district (2016) (2016 vs 2015)
19 1,727 +280
9 996 +559
18 974 +554
3 865 +437
22 846 +529
10 844 +153
15 738 -2
23 708 +28
5 703 +244
20 613 -93
27 602 -126
14 556 -92
16 547 +105
12 536 +276
13 464 -35
28 391 -1114
8 339 +215
21 336 +75
11 300 +48
4 248 +92
1 104 -43
17 98 -23
25 59 +3
2 52 -4
26 48 -37
7 38 -153
2016: 13732 transactions
Sources: URA, Realis, DREA 2015: 11856 transactions
Txn Vol +16%
Year-on-Year, volume
13,732
has increased 16% 11,856
2015 2016
Powered by DREA *Refer to Appendices for name of districts
Volume of sale transactions by district (2H 2016) Change in volume
(2H 2016 vs 2H 2015)
19 1,027 +382
18 735 +519
22 710 +588
3 613 +293
10 488 +178
5 448 +230
9 430 +232
15 392 +50
23 320 -29
14 310 +31
16 274 +67
20 270 -195
27 258 +69
13 196 -208
28 192 -1228
21 185 +48
4 177 +87
11 176 +62
12 125 +21
8 102 +47
1 58 +3
17 52 -9
25 31 +3
2 30 +4
26 22 -24
7 17 -57
2H 2016: 7638 transactions
2H 2015: 6474 transactions
Sources: URA, Realis, DREA
2H’16 Demand growth Txn Vol +18%
appears to be nationwide,
7,638
with most districts 6,474
registering higher volumes 2H15 2H16
Powered by DREA *Refer to Appendices for name of districts
Demand for new sale vs. resale units
19 77% 23% New Sale
18 83% 17% Resale
22 88% 12%
3 90% 10%
10 21% 79%
5 71% 29%
9 27% 73%
15 18% 82%
23 46% 54%
14 60% 40%
16 53% 47%
20 74% 26%
27 78% 22%
13 92% 8%
28 87% 13%
21
4
11
12
8
1
17
25
2
26
7
5
Sources: URA, Realis, DREA New Sale Resale
For 2H 2016, 60% of the Resale
40%
transaction volumes 60%
New Sale
were new home sales
2H 16 Total Transaction
VolumePowered by DREA
Price change by district (2H 2016 vs 2H 2015 and 2H 2016 vs 1H 2016)
For private non-landed residential properties between 500-1000 SQFT
vs 2H 2015 vs 1H 2016
D9 Orchard / River Valley 18.6% -6.2%
D26 Mandai / Upper Thomson 13.2% +16.1%
D19 Hougang / Punggol Seng Kang 11.2% +7.7%
D1 Boat Quay / Raffles Place / Marina 10.8% +14.2%
D16 Bedok / Upper East Coast 8.4% +1.6%
D22 Boon Lay / Jurong / Tuas 8.3% +8.3%
D11 Newton / Novena 8.0% -3.0%
D28 Seletar / Yio Chu kang 4.3% -4.8%
D14 Eunos / Geylang / Paya Lebar 4.0% +0.1%
D12 Balestier / Toa Payoh 1.1% -5.9%
D5 Buona Vista / West Coast / Clementi New Town 1.0% -5.8%
D21 Clementi Park / Upper Bukit Timah 0.3% -7.1%
D27 Sembawang / Yishun 0.2% -0.7%
D3 Alexandra / Commonwealth 0.1% -2.8%
D18 Pasir Ris / Tampines 0.0% -0.8%
D23 Bukit Batok / Bukit Panjang -0.3% -0.2%
D13 Macpherson / Potong Pasir -0.4% +0.6%
D8 Farrer Park / Serangoon -1.3% +7.1%
D2 Chinatown / Tanjong Pagar -2.8% -6.4%
D20 Ang Mo Kio / Bishan / Thomson -3.0% -3.7%
D15 East Coast / Marine Parade -3.4% -3.8%
D10 Tanglin / Holland -5.7% -7.5%
D25 Admiralty / Woodlands -8.2% -10.0%
D17 Changi Airport / Changi Village -8.3% -3.0%
D4 Harbourfront / Telok Blangah -15.8% +7.7%
D7 Beach Road / Bugis / Rochor -23.7% +8.4%
Volume. of Transactions by size
(2H2016)
3,428
2,322
836 618 426
Sources: URA, Realis, DREA SQFT 2000
Demand for 500-1000 sqft units still the
highest; Median prices for such units
increased in most districts
Click here for district price trends►Powered by DREA
Vacancy rate touched a 15 year high in 2H’16
Private Property
Vacancy Rate (%)
9.5
8.9
8.3
7.7
7.1
6.4
5.8
5.2
4.6
4.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
1 Bedroom units 3 Bedroom units
Mainly for expats and young
Mainly for families
working professionals
Rental S$ PSF Rental S$ PSF
6.0
3.4
3.4
5.5 3.3
3.3
3.2
-8.9% 3.1
5.0 -8.0%
3.1
3.0
2.9
4.5 2.9
2.8
2.8
4.0 2.7
2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16
As overall vacancy rates touched a
new high in 2H’16, we saw an
acceleration in rental rate declinePowered by DREA
Rental Rates For 1 Bedroom Units in 2016
Top 10 District By Volume Monthly Rental Range Properties
(S$ /month)
Lowest
Orchard,
D9 1,950 7,000 Cairnhill Astoria
River Valley Highest
Martin No 38
Eunos, Geylang, Lowest
Paya Lebar D14 1,200 4,200 Summer View
Highest
Avant At Aljunied
Lowest
East Coast, D15 1,300 4,000 Mountbatten Lodge
Highest
Marine Parade
Sandalwood
Lowest
Tanglin, Holland D10 1,500 5,500 Loft @ Nathan
Highest
The Holland Collection
Lowest
Anson, Tanjong Spottiswoode 18
D2 2,100 8,480
Pagar Highest
Springleaf Tower
Lowest
Serangoon Garden, D19 1,500 Kensington Square
Hougang, Ponggol 3,200 Highest
The Springbloom
Lowest
Balestier, Toa Payoh, Riverbay
D12 1,500 3,500
Serangoon Highest
Domus
Lowest
Raffles Place, Cecil, D1 1,000
People’s Park Complex
Marina 6,000 Highest
Marina Bay Residences
Lowest
Little India City Loft
D8
1,500 6,000 Highest
Residences @ Somme
Lowest
Zedge
Newton, Novena D11 Highest
1,700 4,000 L’VIV
*Excludes outliers Sources: DREA, URA, Realis
Visit DREA.sg for the latest insights on rental
price trends for different districts
Click here for district rental trends ►Powered by DREA
Rental Rates For 3 Bedroom Units in 2016
Top 10 District By Volume Monthly Rental Range Properties
(S$ /month)
Lowest
D10 2,400 17,800 Charleston
Tanglin, Holland Highest
Parkview Eclat
Lowest
Orchard, D9 1,800 18,000 Hollywood Apartments
River Valley Highest
The Ritz-Carlton Residences
Lowest
East Coast, D15 1,450 8,700 The Serenno
Highest
Marine Parade
Coasta Rhu
Lowest
Hougang, Punggol, D19 1,500 7,000 Kensington Square
Sengkang Highest
Kensington Park Condominium
Lowest
Clementi Park, D21 1,900 7,300 Kismis view
Upper Bukit Timah Highest
Floridian
Lowest
Bukit Batok, D23 1,700 5,600 Century Mansions
Bukit Panjang Highest
Park Natura
Lowest
Bedok D16 2,000 5,800 Limau Park
Highest
Upper East Coast Riviera Residences
Lowest
Buona Vista, West D5 2,400 10,400 West Bay Condominium
Highest
Coast, Clementi Island View
Lowest
Harbourfront, Telok Harbour View Towers
Blangah D4 3,200 14,600 Highest
Cape Royale
Lowest
Zedge
Newton, Novena D11 2,500 15,000 Highest
Monarchy Apartments
*Excludes outliers Sources: DREA, URA, Realis
Visit DREA.sg for the latest insights on rental
price trends for different districts
Click here for district rental trends ►
14Powered by DREA
DREAMonitor
Use this tool to track the value of your
private property
Analyze
http://www.drea.com.sg/dreamonitor/Email to enquire about latest mortgage packages here at
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Mortgage demand by type
Breakdown of mortgage types taken up by consumers (2016 v 2015)
Board
SIBOR/SOR 31% 10%
4% Fixed Deposit Pegged
72% 6% Fixed Rates
15%
18% +26%
44%
2015 2016
YoY Demand
Change (%)
Board Rates
Mortgages whose rates are determined entirely by the bank. Commonly
regarded as the least transparent as banks do not typically disclose the +6%
mechanics or rationale behind how the rates are determined
Singapore Inter-Bank Offer Rate/Swap Offer Rate (SIBOR/SOR)
Mortgages whose interest rates are a variable percentage (set by the
bank) above the SIBOR or SOR as a reference rate. Widely regarded as
the most volatile because the mortgage interest rates are subject to
+9%
fluctuations of inter-bank lending rates.
Fixed Deposit Pegged Rates
A relatively new form of mortgage first introduced in 2015. Interest rates
are a variable percentage (set by the bank) above the bank’s own fixed +26%
deposit rate. An example of which is DBS’ Fixed Holding Rate Mortgage.
Fixed Rates
Mortgages whose interest rates are fixed for a period of usually 2-3 years. -41%
Offers predictability for a foreseeable period.
Source: Redbrick
Homeowners have made a major
shift away from Fixed Rate
MortgagesEmail to enquire about latest mortgage packages here at
Powered by DREA drea@redbrick.sg
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Mortgage Rate Updates
Dec-15 Dec-16
2.0 1.89 1.88
1.68 1.65
1.58
Average 3 Month Net Rate
for cheapest offerings (%)
1.47 1.48
1.5
1.27
1.0
0.5
0.0
3M SIBOR Fixed Deposit Board Rate Fixed Rate
Pegged
YoY Change in
-0.42%pts -0.41%pts -0.1%pts -0.23%pts
mortgage rate
Implied
interest savings ~20% ~25% ~5% ~15%
Despite interest rate hikes in the US, Singapore mortgage rates across all types of
mortgages have become more favourable in 2016. This is in-part due to competitive
mortgage pricing between the banks in Singapore.
Recently, both DBS and UOB have slugged out a zero-percent spread under their
fixed deposit home loan rate (FHR) packages aimed at projects under construction.
These rates are applicable till receiving the Temporary Occupation Permit (TOP)
Refinancing of mortgages has been a theme for 2016 and homeowners could well
ride on the lower rates today to reap savings on monthly mortgage interest.
Mortgage rates were 0.1 - 0.4 %
points lower in 2016. If this sustains, it
could help cushion the decline in
rental ratesPowered by DREA
Looking Ahead
-Powered by DREA
Total and Outstanding Supply
Number of Units Sold/Unsold by Vintage
Number of
Units (‘000) 3
2
(9%) (14%) Unsold Units
2 -34%
(10%) Units Sold
4
(29%)
20 19
17 (91%) (86%) 5
(90%) (42%)
10
(71%) 6 2 (53%)
(58%)
1 (47%)
TOP Year 2015 2016 2017 2018 2019 2020
Sources: URA, DREA
2017 is the year of peak total supply. What is important to note though, is the reversal of the supply trend. Unlike
the last 3 years where total supply has consistently increased, total supply will decline by 34% after 2017 and
continue to decline going forward.
Buyers may well note that there are ~4K units which have already TOP-ed but remain unsold from the 2015 and
2016 vintage. Of late, developers of these projects have been very willing to dish out discounts in order to avoid
regulatory charges. We highlight below some of these projects, where buyers may potentially find a good deal
Shortlist of Projects subject to ABSD remission claw-back Shortlist of Projects subject to QC Charges
Project Name District Project Name District
The Crest 3 OUE Twin Peaks 9
The Trilinq 5 D’Leedon 10
Alex Residences 3 The Interlace 4
The Glades 16 Leedon Residence 10
Pollen & Bleu 10 Paterson Collection 9
The Venue 13 Ardmore 3 10
Vue 8 Residence 18 3 Orchard By-The-Park 9
Cairnhill Nine 9 Twenty One Angullia Park 9
1 Developers need to complete development and sell all units within 5 years of land acquisition otherwise Additional Buyer’s Stamp Duty (levied on
the residential site) with interest becomes payable
2 Developers pay Qualifying Certificate extension charges if there are remaining unsold units after 2 years upon completion; amount payable is
prorated based on number of unsold units
2017 is the year of peak supply and
will be a pivotal year
See full list of projects subject to charges ►Powered by DREA *Refer to Appendices for name of districts
New Supply by District (2016 - 2020)
(‘000)
15
D19 – Hougang / Punggol / Seng Kang Sold units
D18 – Pasir Ris / Tampines Unsold units
D27 – Sembawang / Yishun
D23 – Bukit Batok / Bukit Panjang Significant %
D3 – Alexandra / Commonwealth and number of
10 units unsold
5
0
District 19 18 27 23 14 3 5 13 20 22 16 12 28 15 25 9 1 8 10 7 21 2 11 17 4
Total
14.7 7.2 6.2 5.2 3.5 3.4 3.4 2.7 2.5 2.5 2.4 2.4 2.2 2.1 2.0 1.9 1.6 1.3 1.3 1.2 0.8 0.7 0.5 0.5 0.4
Supply
Sold 13.5 6.5 4.1 4.3 2.4 2.0 2.2 2.4 2.3 2.3 2.3 1.7 2.1 0.8 1.6 0.9 0.8 1.1 0.6 0.9 0.7 0.3 0.2 0.4 0.2
Unsold 1.2 0.7 2.2 0.9 1.1 1.4 1.2 0.3 0.2 0.2 0.1 0.7 0.1 1.3 0.4 1.0 0.8 0.3 0.7 0.2 0.1 0.4 0.3 0.1 0.2
% Unsold 8 10 35 17 31 41 35 11 8 8 4 30 5 62 20 53 50 23 54 17 13 57 60 20 50
Sources: URA, DREA
In an attempt to move inventory and to avoid regulatory charges, some developers are also
starting to offer attractive sales commissions to agents while others have rolled out innovative
payment schemes to lower initial upfront cost for buyers.
While this has contributed to an overall increase in sales transaction for 2016, there are still
~15,700 unsold units in the new launch market. While there continues to be demand from HDB
upgraders and foreign investors, some projects are yet unable to gain traction with sales given
developer’s price expectations. In particular, the issue of over-supply remains critical for areas
such as districts 3, 5, 14, 15 and 27.
No. of -9%
Issue of over-supply is Unsold
Units
starting to ease, ~15,700 ~17,200 ~15,700
unsold units left in the
market 1H16 2H16Powered by DREA
Developers’ Confidence
Developers continue to show demand for land bank
Throughout 2016, developers continued to compete and bid in Government Land Sales
(“GLS”) programmes. Each GLS land lot drew more than 10 developers.
A residential site in Margaret Drive, located between 2 MRT stations drew aggressive bids
from developers despite the fact that there were two ongoing developments in the
vicinity. The auction saw a concluding bid of $997.85 per square foot per plot ratio, 14%
higher than the land sale price of the two other neighbouring sites.
"Such higher land price and strong participation among developers indicate
that many developers are hungry for land”
SLP International Property Consultants
Nicholas Mak
Developers appear to remain
confident about the Singapore
residential property marketPowered by DREA
2016 Government Land Sales
Five parcels of land were awarded for private residential development in
2016
Date Land Developer Price Area PSF Existing Developer Recent
(2016) Parcel (S$ ‘m) (‘000 Price Supply Project
SQFT) (S$) Nearby
18/01/16 (1) Siglap FCL Topaz Pte. 624 730 860 FCL – North Park
Road Ltd., Sekisui Residences, 2020
District 16 House, Ltd. and KH
KH Capital Pte. Sekisui House –
Ltd. Watertown, 2017
Moderate
26/02/16 (2) New CEL Residential 419 550 760 Fulcrum – 2016
Upper Development High Park Residences
Changi Pte. Ltd. - 2020
Road
District 16
Moderate
13/04/16 (3) Jalan Dillenia Land 51 105 480 Seletar Park
Kandis Pte. Ltd. (Tuan Residence – 2014,
District 27 Sing Holdings) Cluny Park Residence
– 2016
High
01/07/16 (4) Martin First Bedok Land 595 480 1,240 Wallich Residence -
Place Pte Ltd 2016
District 9 (Guocoland)
High
30/09/16 (5)Fernvale Sing 287 555 520 SingHoldings:
Road Development Waterwoods – 2016
District 28 (Private) Limited
and Wee Hur Wee Hur Holdings:
Development Mega@Woodlands –
Pte. Ltd 2018
High
There continued to be demand for
new land, even in areas with
outstanding supplyPowered by DREA
2016 Government Land Sales Highlights
Land parcels that were snapped up were located in areas with outstanding
supply, in both mature and non-mature estates.
Jalan Kandis (D 27) Fernvale Road (D 28)
Sembawang Planning Area Sengkang Planning Area
Median PSF vs 2H’15: +6% Median PSF vs 2H’15: +1%
12 Nearby projects with 36 Nearby projects with unsold units
unsold units
New Upper Changi Road (D 16)
Bedok Planning Area
Median PSF vs 2H’15: -3%
Martin Place (D 9) 3 Nearby projects with unsold units
Tanglin Planning Area
Median PSF vs 2H’15: -2% Siglap Road (D 16)
48 Nearby projects with Bedok Planning Area
unsold units Median PSF vs 2H’15: -3%
3 Nearby projects with
unsold units
Source: Singstat, URA, DREA Analytics
However, these sites are in areas
where median PSF prices are
stabilizingPowered by DREA
Strength of the SGD against neighboring currencies
Bloomberg Consensus FX/SGD
0.05
0.00
-0.05
-0.10
-0.15
-0.20
AUD -10%
-0.25 MYR -10%
PHP -13%
-0.30
CNY -14%
-0.35 INR -24%
IDR -38%
-0.40
2020 2025 2030
Sources: Bloomberg
While real estate prices are largely driven by regulatory policies and local market
supply and demand, FX plays a part in foreign investor demand. Despite the various
stamp duties and taxes that have been introduced over the past few years to curb an
overheated market, demand from non-resident buyers have continued to grow.
Consensus FX views from currency analysts suggest that the Sing-dollar will continue to
appreciate against the Indonesian Rupiah, Indian Rupee and Chinese Yuan among
others. For non-resident Indonesian, Indian and Chinese buyers, the strength of the
Sing-dollar going forward could make Singapore hard-assets such as properties an
attractive asset class for capital preservation. Combined with the fact that the
Singapore residential property market is already bottoming-out and stabilizing, foreign
investors are indeed still taking an interest in Singapore properties – notwithstanding
the different taxes and stamp duties that are already in place.
Strengthening of the SGD against
neighbouring currencies could make
Singapore property a compelling asset class
for foreigner buyers despite property curbsPowered by DREA *Refer to Appendices for name of districts
Profitability of Resale Transactions
7,999 Sold at a gain (> 5%)
Sold at a loss (> 5%)
6,952
0-5% gain/loss
6,351
5,732 Holding Period >10 years
4,807 4,694
3,267
2,950
2,671 2,601
2,422
2,145 2,169
1,872
1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16
Sold at>5%
49% 50% 56% 58% 59% 60% 62% 61% 61% 56% 58% 54% 46% 42%
gain
Sold at >5%
4% 3% 3% 3% 4% 3% 4% 5% 5% 6% 9% 11% 12% 12%
loss
0-5%
5% 5% 5% 4% 5% 5% 4% 4% 6% 7% 7% 10% 13% 14%
gain/loss
Holding
42% 41% 36% 34% 32% 32% 30% 30% 28% 30% 26% 25% 29% 32%
Period >10yrs
Total resale 8037 6965 6409 4808 4697 5732 3267 2145 1872 2169 2422 2671 2601 2957
Top 10 districts with highest volume of loss-making resale transactions (2H16)
74
>50% Loss 20-30% Loss
67
40-50% Loss 10-20% Loss
56
30-40% LossPowered by DREA
Holding Period
For those transactions sold at a “Loss” in 2016
Units sold at a loss while
Even some units
bought during the
still within the window
crisis low of 2008 / that attracts seller
2009 were being stamp duty
sold at a loss
10 years + 8 - 9 years 7 - 8 years 6 - 7 years 5 - 6 years 4 - 5 Years 3 - 4 Years 2 - 3 Years 1 - 2 Years < 1 Year
Year of
Purchase < 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
For the 3rd consecutive years, we see an increase in the number of units being sold at a
loss – including units that are still within the Seller Stamp Duty Window
Comparing resale transaction prices with their original purchase price, we see a continued
increase in cases where owners were willing to sell at a loss. Most of these are units sold at
a loss of up to 20%. Districts 9, 10 and 15 came out top in terms of loss making resale
transactions for 2016.
Although most of the loss making transactions accrue to units bought in the peak years of
2011 and 2012; a truly concerning observation is that a good proportion of these loss
making resale transactions are done within the SSD window.
Of these loss-making
transactions, some are units sold
within the window that are still
liable for seller stamp dutyPowered by DREA
Did you know?
DREA shows you prices of properties immediately
around you. Simply flip out drea.sg on your mobile
with location services turned on the next time you
are in a housing estate which you likePowered by DREA
Which properties should
you look out for?
-Powered by DREA Opportunities for sub-million dollar units 1000-1500 square feet,
Powered by DREA
Resale Opportunity where there is meaningful room for negotiation
Buyers should zoom in on untenanted resale units originally bought in 2013 for investment purposes
and negotiate hard for a good deal
In 2017, we estimate that ~20K units will be approaching the end of their 4-year SSD lock up period.
More importantly, 2013 was the year where prices peaked. With vacancy rates at an all time high,
some property investors are finding themselves stuck with vacant, untenanted units. For those who
bought into the market in 2013, 2017 is the year to cut losses without attracting SSD. This presents an
attractive opportunity for buyers today to negotiate hard.
Units bought in 2013 that have yet to be resold
3000
2250
Number of Units
1500
750
0
19 18 10 13 23 16 15 20 22 9 3 17 14 5 12 21 7 4 11 27 2 28 8 1 26 25 6
District
Buyers looking for resale units may also want to zoom in on units bought in 2009, where existing
owners are likely still sitting on meaningful capital gains
On the flip side, while the general market sentiment remains soft at the moment, home owners who
bought in the crisis low of 2009 are sitting on significant capital gains. We estimate that there are
~16,000 which were bought in 2009 and have never been resold.
Units bought in 2009 that have yet to be resold
2250
1800
Number of Units
1350
900
450
0
9 10 15 12 16 11 19 18 5 23 22 3 20 21 17 4 14 13 26 1 8 25 7 27 2 28 6
District
Buyers should zoom in on resale
units bought in 2009 and in 2013Powered by DREA
Resale Opportunity where there is meaningful room for negotiation
District Condo Number of District Condo Number of
units bought units bought
in 2013 and in 2009 and
not yet not yet resold
resold
19 (Hougang, La Fiesta 611 9 (Orchard, Sophia 197
Punggol)
Cairnhill, River Residence
Valley)
Jewel @ 346 Martin Place 156
Buangkok Residences
18 (Tampines, D’Nest 799 10 (Bukit Parvis 87
Pasir Ris) Timah,
Holland,
Tanglin)
Q Bay 551 Cyan 81
Residences
10 (Bukit Timah, D’Leedon 696 15 (Katong, Silversea 67
Holland, Tanglin) Joo Chiat)
RV 68 One Amber 66
Residences
13 Bartley Ridge 714 12 (Balestier, Trevista 225
(Macpherson, Toa Payoh,
Braddell) Serangoon)
Sennett
Residences 284 The Arte 206
23 (Bukit Hillion 220 16 (Bedok, Optima @ 167
Panjang, Choa Residences Upper East Tanah Merah
Chu Kang) Coast Road,)
Eco 203 Waterfront
Sanctuary Waves 157
We highlight a shortlist of
properties where sellers are well
positioned to negotiate and
could offer a good dealPowered by DREA
Did you know?
DREA allows your to search for both information and
listings naturally just by asking.
Try the following:
“Find me a 1 bedroom in Novena with yield of >3%”Powered by DREA
Top 10 schools in Singapore and the price of properties within 1KM
Prices of properties (PSF) within 1km radius of Top 10 Primary Schools1 in Singapore
(1,000 – 1,500 sqft unit)
Median
Paya Lebar 597 1,011 1,770 Min – Yeley Building
Methodist Girls’ Max – Park Residences Kovan
Pei Hwa 590 1,050 1,430 Min – Kismis Court
Presbyterian Max – Jardin
Min – Bedok Court
St. Hilda Primary 680 970 1,150
Max – Riviera Residences
780 1,030 1,170 Min – Park West
Nan Hua Primary
Max – Freesia Woods
790 1,040 1,310 Min – Parc Vista
Rulang Primary
Max – The Lakefront Residences
Henry Park Primary 940 1,300 1,450 Min – Pandan Valley
Max – The Marbella
1,170 1,400 1,830 Min – Watten Estate Condominium
Nanyang Primary Max – Gallop Green
1,070 1,110 1,390 Min – Crescendo Park
Tao Nan
Max – Bedok Residences
Raffles Girls’ Primary 1,040 1,300 1,500 Min – Dover Parkview
Max – The Ford @ Holland
1,070 1,620 2,370 Min – Ferrell Residences
ACS Primary
Max – Robin Residences
For families with children, one concern regarding home location would be the schools near it. In
Singapore, enrolment in top primary schools can get really competitive. In some cases, parents sign up
to volunteer for the school a few years before their children start their primary education. However, one
key factor that determines a child’s eligibility and possibility of getting into a prestigious primary school
would be the Home-School Distance.
1. Top 10 schools determined based on extensive qualitative research across various Singapore
parenting forums
For parents, there are actually
many options for living within 1 Km
from a top 10 schoolPowered by DREA
Looking to buy: “Best value” homes near to Top 10 Schools
PSF prices of homes within 1km radius of Top 10 Primary Schools in Singapore
(1,000 – 1,500 sqft unit)
Dover Parkview 768 1,105 0.88km to Raffles Girls’
Faber Crest 832 888 0.65km to Nan Hua
1,071 1,071 0.73km to Henry Park
Pandan Valley
1.13km to Raffles Girls’
The Infiniti 928 988 0.68km to Nan Hua
956 1,100 0.91km to Nanyang
D’Chateau @ Shelford
2.77km to ACS Primary
1,003 1,003 0.33km to Nanyang
Coronation Arcade 2.28km to Raffles Girls’
Crescendo Park 1,052 1,075
0.93km to Tao Nan Sch
1,134 1,203 0.44km to Henry Park
Quinterra
0.87km to Raffles Girls’
1,216 1,258 0.63km to Henry Park
Ridgewood 0.98 to Raffles Girls’
Sources: DREA, URA, Parenting forums
For buyers, here are some of
the “best-value” properties
near top 10 primary schools in
SingaporePowered by DREA
Looking to rent: “Best value” rental homes near to Top 10 Schools
Monthly rental prices of condos within 1km radius of Top 10 Primary Schools
(1,000 – 1,500 sqft unit)
Southaven I 2,200 2,800 0.91km to Pei Hwa
0.73km to Henry Park
Pandan Valley 2,400 4,200 1.13km to Raffles Girls’
0.93km to Tao Nan Sch
Crescendo Park 2,100 2,900
0.85km to Nanyang
2.73km to ACS Primary
Kellett Court 2,500 3,100
0.81km to Nan Hua
Freesia Woods 2,500 4,200 0.90km to Pei Tong
0.83km to Henry Park
Astor Green 2,700 3,300 1.02km to Pei Tong
0.63km to Henry Park
Ridgewood 2,200 3,000 0.98 to Raffles Girls’
0.44km to Henry Park
Quinterra 3,700 4,400 0.87km to Raffles Girls’
Sources: DREA, URA, Parenting forums
For tenants, here are some of the
“best-value” rental properties
near top 10 primary schools in
SingaporePowered by DREA Looking to rent: Homes with great access and amenities nearby Rental - Value-for-money rental properties with great access and amenities (across all sizes)
Powered by DREA
Top 15 most searched properties on Google as of December 2016
Condo Name District
Gem Residences 12 – Balestier/Toa Payoh
Sims Urban Oasis 14 – Geylang/Eunos
Principal Garden 3 – Queenstown/Tiong Bahru
Kingsford Waterbay 19 – Hougang/Punggol/Sengkang
Star of Kovan 19 – Hougang/Punggol/Sengkang
D'Leedon 10 – Tanglin/Holland
Cairnhill Nine 9 – Orchard/River Valley
Lake Grande 22 – Boon Lay/Jurong/Tuas
Sol Acres 23 – Bukit Batok/Bukit Panjang
Treasure Crest 19 – Hougang/Punggol/Sengkang
Wandervale 23 – Bukit Batok/Bukit Panjang
Leedon Residence 10 – Tanglin/Holland
Twin Peaks 9 – Orchard/River Valley
High Park Residences 19 – Hougang/Punggol/Sengkang
Thomson Impressions 20 – Bishan/Ang Mo Kiao
Sources: Google Adwords,
DREA Analytics
This is a list of top 15 Singapore
private properties which are most
searched on GooglePowered by DREA
Did you know?
DREA rates individual properties and awards badges to
developments based on their unique attractivenessPowered by DREA
Special Feature:
What about Malaysian
Properties?
-Powered by DREA
Opportunities in other markets
The challenging Singapore Property Market has left many investors wondering
whether they should be considering overseas real estate investments instead.
However, investing in property overseas is often tricky and could expose
investors to significant risk if they are not careful.
For starters, here are a few things to consider when examining your prospects
Regulatory Risk – Understand regulations and restrictions
It may be enticing to park your wealth in overseas property, especially
when marketing agencies are touting high, or even guaranteed capital
gains and yield. However, foreign ownership restrictions, leverage limits for
foreign buyers, hidden stamp duties and property taxes are all critical
aspects that must not be overlooked.
Market Risk – Critically research local market conditions
Property is a local game and investors should carefully assess local market
conditions. Do note that price trends – which are the most commonly
available form of analyses out in the market – are ultimately backward
looking measures.
Often, investors over-emphasize backward-looking research materials
which are the most available or the most common, but do not spend
sufficient time on elements that matter a lot more. Upcoming supply,
vacancy, financial health of developers (especially for uncompleted
projects) and potential changes in property market regulations are all
highly critical but often overlooked.
Currency Risk – Understand macro and get independent advice
Even savvy property investors fall prey to currency risk. Some neglect FX
risk and overlook the importance of matching assets and liabilities. At the
same time, there are also investors who do not fully appreciate the
implications of interest rate parity and hedge when they really shouldn’t.
When evaluating currency risk, investors should note that consensus views
are simply consensus and are no better than an informed and educated
There are opportunities outside of
guess. One should also be mindful about whether to take advice on FX risk
from agents and brokers who are economically incentivized to close a
Singapore and DREA’s future reports will
property deal or a currency hedge.
give in-depth
We shall analysis
examine the three of factors
aforementioned theusing
markets in
the Malaysian
our neighboring
property countries
market as an example.
40Powered by DREA
Regulation
Like most other South-East Asian markets, Malaysia has property regulations that are
specific to foreign investors. However, property regulations in Malaysia are generally
pro-foreign investor. The recent rollout of the "Malaysia My Second Home" (MM2H)
programme has been much emphasized as a tool for incentivizing foreign buyers to
invest in Malaysian property.
Singapore Malaysia Indonesia
Eligibility of purchase
Local Buyer Landed and non-landed No restrictions for No restrictions
residential Bumiputras
Certain restricted
properties for other citizens
Foreign Buyer Non-landed residential only Minimum price dependent Minimum price dependent
on specific state; generally on specific state. In Jakarta,
Purchase of landed- minimum value of MYR 1 minimum price of at least
residential property million 10 billion rupiah
subjected to special
approval Only one leasehold, non-
No limits on maximum landed residential property
number of properties of up to 80 years for
although certain property expatriates for qualified
types are restricted for foreigners with a KITAS
foreigners such as those working visa.
allocated to Bumiputra
Selling Criteria Non-landed Residential – No restrictions Any qualified foreigner or
Foreigners and any local
Locals Landed Residential –
Locals only
Taxes and stamp duties
Buyer’s Stamp Duty: BSD:
Local Buyer (1st Property) 1% on first 180K
2% on next 180K
3% on remainder
Buyer’s Stamp Duty: BSD: 1% on the first MYR 100K 5% (transfer tax)
Foreign Buyer (1st Property) 1% on first 180K 2% on the next MYR 400K 1% (Tax on purchase of
2% on next 180K 3% on remainder land deed)
3% on remainder 1% (Legal Fees)
+ 15% ABSD 0.2% (Registration Fee)
Malaysia’s property market
regulation appears to be “Pro-
foreign” at the moment
41Powered by DREA
Market Dynamics
Demand for property purchase in Malaysia has softened since 2012. Not
withstanding efforts to spur demand from foreign investors, volume of
transactions in the >1m category has been on a decline.
Txn Vol (‘000) RM: > 1M 250K - 1M < 250K
85.7 87.4 87.7 88.4
3.1 3.5 3.5 4.2 77.9 74.5 76.1
69.7 71.7 71.1 68.2
5.1 5.1 5.7
60.5 2.9 4.1 4.7 4.7
2.3 53.8
3.9
1H10 1H11 1H12 1H13 1H14 1H15 1H16
Average price per unit for foreign-eligible property (>1M)
Average Price
Avg prices have been flat in nominal terms,
(in millions RM) meaning that properties have declined in
value in real terms (i.e. inflation adjusted)
2.5
2.0 In RM
1.5
1.0
In SGD
0.5
0.0
1H10 1H11 1H12 1H13 1H14 1H15 1H16
Avg. price of Malaysian properties
have not appreciated in value
since 2010 – both in Real Terms
42
and on a SGD basisPowered by DREA
Opportunities in Malaysia
Percentages of sold and unsold units in different States Total Units
Launched
Johor 31% 69% 1,675
Perak 19% 81% 1,589
Selangor 16% 84% 1,349
Pahang 53% 47% 1,264
Kedah 12% 88% 1,129
W.P. Kuala Lumpur 13% 87% 1,068
Melaka 42% 58% 787
Sarawak 11% 89% 632
Kelantan 22% 78% 390
Terengganu 19% 81% 334
Negeri Sembilan 30% 70% 269
Pulau Pinang 46% 54% 120 Sold
W.P. Putrajaya 94% 6% 49 Unsold
14,000
Units Launched and Sold
12,000 Completed but Unsold
Under Construction Unsold
10,000 Not Constructed Unsold
8,000
6,000
4,000
2,000
0
Pahang
W.P. Putrajaya
Sarawak
Melaka
Pulau Pinang
Kedah
Perlis
Selangor
Kelantan
Johor
Terengganu
Perak
Sabah
Negeri Sembilan
W.P. Kuala Lumpur
There continues to be a risk of
over-supply and many properties
are still pending construction
43Powered by DREA
APPENDICES
-Powered by DREA
A Guide on the
Buying Process
-Powered by DREA
Resale private property buying process
Steps Things to look out for Cash flow
• Give banks a whole set of documents so you don’t
get surprises when you raise an actual loan request
Obtain AIP (“Approval In
T-90 1 Principal”) from a bank • Understand cash flow requirements, deadlines, None
Valid for 30-90 days mode of payment of different fees (e.g. ABSD has to
be paid in cash first) and the different policies that
may restrict you from getting a loan (e.g. TDSR, LTV)
• Do your research however note that some intangible
factors may not be quantifiable
T-90 2 • DREA.sg provides various information in one place so None
Research on condos as to make it easier to research on homes
• Confirm with your bank beforehand that they will be
able to issue a bank loan letter of offer within 14 days
of exercise of option
• Be careful not to download an Offer to Purchase
Decide on a condo and make from unverified sources – not all documents are valid
Offer to Purchase In Singapore, and not all terms and clauses are in
1% Option
3 line with market norms in Singapore
T fee in
Pay Option fee (1% of property• Specify which fixtures are included and whether you
Cash
price) are buying with tenancy in the Offer to Purchase
• If buying with tenancy, it is advisable to review the
Option to Purchase issued by rental contract and look out for tenant escape
Seller and is valid for 14 days clauses
• Hire an experienced lawyer 4%
Exercise Option to Purchase • Lawyers will do title search for the buyer
and pay 4% Exercise fee Exercise
4 • Check for major external environment changes fee in
T+14
before paying exercise fee Cash
• Buyers have the right to cancel Option to purchase
under specific circumstances
First 180,000: 1%
Pay Stamp Duty and/or • Stamp duty has to be paid in cash first Next 180,000: 2%
T+28 5 Additional Buyer’s Stamp Duty Remainder: 3%
15% down-
Pay Remaining down
T+84 payment in
6 payment
- Cash and/ or
T+ 108 CPF
When buying a resale property in
Singapore, do take time to plan and take
note of the above
46Powered by DREA
New launch sale buying process
Things to look out for Cash flow
• Give banks a whole set of documents so you don’t
Obtain AIP (Approval In get surprises when you raise an actual loan request
T-90 1 Principal) from a bank (valid for Understand cash flow requirements, deadlines,
•
None
30-90 days) mode of payment of different fees (e.g. ABSD has to
be paid in cash first) and the different policies that
may restrict you from getting a loan (e.g. TDSR, LTV)
• Do your research however note that some intangible
factors may not be quantifiable
T-90 2 Research on condos • Confirm with your bank beforehand that they will be None
able to issue a bank loan letter of offer within 14 days
of exercise of option
• Many buyers have already paid the option fee
Decide on a new launch before realizing that they are unable to get a bank 5-10%
T 3 loan due to TDSR, LTV or other loan restrictions Option
Sign Option to Purchase • AIP is very important, buyers are recommended to fill fee in
out the actual application form and provide the full Cash
set of documents
T+14 • Option to purchase is valid for 3 weeks from delivery
4 Sale & Purchase Agreement
to of S&P -
(S&P) to be delivered to buyer
T+21
Sign S&P Agreement and return• If buyers decide to not exercise the option, they can
Before 5 to developer
T+35 be refunded up to 75% of the option fee paid -
(market norm)
Pay Remaining down
payment (Some developers
may allow payment to be • Different developers require down payment to be 10-15% down
made within 8 weeks of paid at different times – buyers should check with the payment in Cash
signing of OTP) developer of the condo and/or CPF
Pay Stamp Duty and/or First 180,000: 1%
6 Additional Buyer’s Stamp Duty • Stamp duty has to be paid in cash first Next 180,000: 2%
T+49
Remainder: 3%
COMPLETION
When buying a newly launched property in
Singapore, do take time to plan and take
note of the abovePowered by DREA
For buyers - Tips and things to look out for
AIP and Mortgage Loans – Confirm loan eligibility before paying option fees
For buyers, it is recommended to fill out the actual AIP application and provide
the bank a complete set of documents. AIP can be conducted in written
format or verbally, and is only based on the information the buyer provides the
bank. The loan amount stated in the AIP is not a guaranteed amount offered
to the buyer. Banks may end up making very different assessments on a
borrower’s eligibility if the original AIP is based on incomplete information.
Providing a complete set of documents allows for a more accurate estimate
of the amount that the bank is willing to lend.
There have been instances where buyers obtain an AIP based on verbal or
incomplete information that they provide. After paying the option fee, they
realize that they are eligible for a much lower loan amount than what was
stated in the AIP. These buyers may have to forfeit the option fee that they
have paid if they are not able to fully finance the house. Hence, buyers should
always ensure that they are truly qualified to secure a loan before paying for
the option fee – and to avoid any unpleasant surprises.
Cash flow requirements and housing policies – Plan your finances and budget
Buyers are also advised to work out all the cash flow requirements, deadlines,
modes of payment, and their ability to pay the relevant charges and loans. For
example, some buyers may not be aware that Stamp Duty has to be paid in
cash first, before getting a refund from their CPF (for Singapore Citizens and
Permanent Residents). In such cases, when cash needs cannot be met, the
buying process becomes problematic. Buyers should therefore read up on
housing policies, cash flow requirements and carefully plan their finances and
budget before committing to a home purchase
Research – It is not just about prices and some things cannot be quantified
When researching on a property, there are many things to look out for. While
some information such as prices and distance to MRT stations can be
expressed in numbers, many other factors such as furnishing, facing, and
surroundings cannot be quantified. However, these factors are equally
important in determining whether a unit is a good deal. DREA’s property pages
summarize everything you need to know, from prices to on the ground reviews.
Remember to do your research on
cash flow requirements and
policies before committing to a
purchasePowered by DREA
For buyers - Tips and things to look out for
Ownership Check – Do so before paying the Option Fee
Before paying the 1% Option Fee, buyers should do an ownership check on the
property to ensure that the seller actually owns the property. While cases like
these aren’t very common in Singapore, it’s always better to be safe than
sorry. Ownership checks can be easily done through SLA’s web portal.
Offer to purchase – Be specific with what is required and get help if possible
We typically recommend getting a property agent to assist you with all the
paperwork however it is possible to do it on your own. For Buyers purchasing a
unit without an agent’s help, do a thorough read and review of your Offer to
Purchase letter. Some Offer to Purchase templates found online may not be
valid in Singapore. Even if these templates are valid, some clauses in the
templates may not be the norm for the Singapore property market, and buyers
may end up losing out.
The Offer to Purchase letter is also important because it specifies the “wants”
of the buyer. In the Offer to Purchase, buyers should state all the fixtures and
requirements that they want and expect to have. For example, the in-build
oven in the kitchen. It also sets the basis for negotiation.
Purchase of units with tenancy – Always fact check the tenancy agreement
When purchasing a unit with tenancy, buyers are always advised to review the
tenancy agreement and look out for clauses that might potentially be a
problem. For instance, buyers should look out for any escape clauses which
would allow an existing tenant to terminate the contract at any time. In
addition, it is advisable to fact check the rental rate to see if it is inline with
market prices.
Pictures – They can be helpful for resolving disputes
One tip for buyers when purchasing a resale property, is to take detailed
pictures of the unit before paying the option fee. This is useful in the event that
problems such as faulty power outlets or cracks in the wall are found after
moving in. With pictures as evidence, many arguments can be avoided.
Read through your Offer to
Purchase letter and review the
rental contact (if buying a unit
with tenancy)Powered by DREA
Cooling Measures
Introduced Sellers Stamp Duty (“SSD”) for private residential property
Feb’10 Lowered Loan-to-Valuation (“LTV”) from 90% to 80% for private property
Further increased holding period of SSD from 1 to 3 years with graduated
stamp duty
Aug’10 Increased minimum cash payment to 10% for buyers with >1 loan
Decreased LTV for multiple mortgage holders from 80% to 70%
Increased SSD period from 3 to 4 years and increased rates (1st yr – 16%
(from 3%), 2nd yr – 12% (from 2%), 3rd yr – 8% (from 1%) and 4th yr – 4% (from
Jan’11 0%)
Lower LTV for non-individual purchasers (50%) as well as individuals (60%)
Introduction of Additional Buyers Stamp Duty (“ABSD”)
10% for foreigners and non-individual buyers
Dec’11 3% for PRs buying ≥ 2 properties and Singaporeans buying ≥ 3
properties
Sep’12 Issuance of new guidelines for shoebox units
Further LTV restrictions:
Loan tenure capped at 35yrs for individual and non-individual buyers
LTV for non-individual buyers lowered to 40%
Oct’12
For 2nd mortgage loan borrowers and above, LTV lowered to 40% for
loans >30 years or extend beyond 65
LTV of 60% for first time borrowers beyond 65
Increased ABSD for Singaporean buyers (1st home – 0%, 2nd home – 0% to
7%, 3rd home – 3% to 10%)
Increased ABSD for Singapore PRs (1st home – 0% to 5%, ≥ 2nd home – 3%
to 10%)
Jan’13 Increased ABSD for Foreigners (≥ 1st home: 10% to 15%)
1st loan LTV – 80%, 2nd – 50%, ≥ 3rd – 40%; LTV will be even lower for loan
tenure of more than 30 years or where borrower is >65 years
Increased cash downpayment for 1st property to 5% - 10% and 2nd to 10%
- 25%
New total debt servicing ratio (“TDSR”)
Maximum total debt limit of 60% taking into account monthly
Jun’13 repayment for property loan and other debt obligations
Apply a haircut of 30% to all variable rental income and amortise
value of eligible financial assets when computing TDSR
The Singapore government has
introduced several cooling
measures over a period of 3 yearsPowered by DREA
Districts in Singapore
D1 Boat Quay / Raffles Place / Marina D15 East Coast / Marine Parade
D2 Chinatown / Tanjong Pagar D16 Bedok / Upper East Coast
D3 Alexandra / Commonwealth D17 Changi Airport / Changi Village
D4 Harbourfront / Telok Blangah D18 Pasir Ris / Tampines
D5 Buona Vista / West Coast / Clementi New Town D19 Hougang / Punggol Seng Kang
D6 Cityhall / Clarke Quay D20 Ang Mo Kio / Bishan / Thomson
D7 Beach Road / Bugis / Rochor D21 Clementi Park / Upper Bukit Timah
D8 Farrer Park / Serangoon D22 Boon Lay / Jurong / Tuas
D9 Orchard / River Valley D23 Bukit Batok / Bukit Panjang
D10 Tanglin / Holland D25 Admiralty / Woodlands
D11 Newton / Novena D26 Mandai / Upper Thomson
D12 Balestier / Toa Payoh D27 Sembawang / Yishun
D13 Macpherson / Potong Pasir D28 Seletar / Yio Chu kang
D14 Eunos / Geylang / Paya LebarPowered by DREA
Median PSF Price change by district (2H 2016 vs 2H 2015)
For private non-landed residential properties betweenPowered by DREA
Median PSF Price change by district (2H 2016 vs 2H 2015)
For private non-landed residential properties between 500-1000 SQFT
vs 2H 2015
D9 Orchard / River Valley 18.6%
D26 Mandai / Upper Thomson 13.2%
D19 Hougang / Punggol Seng Kang 11.2%
D1 Boat Quay / Raffles Place / Marina 10.8%
D16 Bedok / Upper East Coast 8.4%
D22 Boon Lay / Jurong / Tuas 8.3%
D11 Newton / Novena 8.0%
D28 Seletar / Yio Chu kang 4.3%
D14 Eunos / Geylang / Paya Lebar 4.0%
D12 Balestier / Toa Payoh 1.1%
D5 Buona Vista / West Coast / Clementi New Town 1.0%
D21 Clementi Park / Upper Bukit Timah 0.3%
D27 Sembawang / Yishun 0.2%
D3 Alexandra / Commonwealth 0.1%
D18 Pasir Ris / Tampines 0.0%
D23 Bukit Batok / Bukit Panjang -0.3%
D13 Macpherson / Potong Pasir -0.4%
D8 Farrer Park / Serangoon -1.3%
D2 Chinatown / Tanjong Pagar -2.8%
D20 Ang Mo Kio / Bishan / Thomson -3.0%
D15 East Coast / Marine Parade -3.4%
D10 Tanglin / Holland -5.7%
D25 Admiralty / Woodlands -8.2%
D17 Changi Airport / Changi Village -8.3%
D4 Harbourfront / Telok Blangah -15.8%
D7 Beach Road / Bugis / Rochor -23.7%
Sources: URA, Realis, DREAPowered by DREA
Median PSF Price change by district (2H 2016 vs 2H 2015)
For private non-landed residential properties between 1000-1500 SQFT
vs 2H 2015
D2 Chinatown / Tanjong Pagar 21.9%
D8 Farrer Park / Serangoon 17.8%
D9 Orchard / River Valley 17.8%
D28 Seletar / Yio Chu kang 10.5%
D14 Eunos / Geylang / Paya Lebar 6.9%
D12 Balestier / Toa Payoh 4.9%
D18 Pasir Ris / Tampines 4.7%
D27 Sembawang / Yishun 4.7%
D1 Boat Quay / Raffles Place / Marina 4.5%
D4 Harbourfront / Telok Blangah 4.0%
D7 Beach Road / Bugis / Rochor 3.9%
D13 Macpherson / Potong Pasir 2.2%
D25 Admiralty / Woodlands 2.2%
D21 Clementi Park / Upper Bukit Timah 0.1%
D15 East Coast / Marine Parade 0.1%
D11 Newton / Novena -0.1%
D22 Boon Lay / Jurong / Tuas -0.5%
D19 Hougang / Punggol Seng Kang -1.8%
D5 Buona Vista / West Coast / Clementi New Town -1.9%
D16 Bedok / Upper East Coast -2.1%
D10 Tanglin / Holland -2.3%
D20 Ang Mo Kio / Bishan / Thomson -4.2%
D3 Alexandra / Commonwealth -4.6%
D26 Mandai / Upper Thomson -5.2%
D17 Changi Airport / Changi Village -7.2%
D23 Bukit Batok / Bukit Panjang -13.8%
Sources: URA, Realis, DREAPowered by DREA
Median PSF Price change by district (2H 2016 vs 2H 2015)
For private non-landed residential properties between 1500-2000 SQFT
vs 2H 2015
D12 Balestier / Toa Payoh 27.7%
D16 Bedok / Upper East Coast 12.7%
D9 Orchard / River Valley 9.9%
D22 Boon Lay / Jurong / Tuas 5.2%
D23 Bukit Batok / Bukit Panjang 5.0%
D11 Newton / Novena 3.7%
D5 Buona Vista / West Coast / Clementi New Town 3.5%
D21 Clementi Park / Upper Bukit Timah 3.1%
D28 Seletar / Yio Chu kang 1.4%
D27 Sembawang / Yishun 1.2%
D1 Boat Quay / Raffles Place / Marina 1.1%
D4 Harbourfront / Telok Blangah 0.8%
D10 Tanglin / Holland -0.4%
D18 Pasir Ris / Tampines -0.9%
D3 Alexandra / Commonwealth -1.8%
D13 Macpherson / Potong Pasir -5.7%
D15 East Coast / Marine Parade -6.3%
D25 Admiralty / Woodlands -11.0%
D2 Chinatown / Tanjong Pagar -14.2%
D14 Eunos / Geylang / Paya Lebar -14.9%
D19 Hougang / Punggol Seng Kang -15.4%
D8 Farrer Park / Serangoon -15.7%
D7 Beach Road / Bugis / Rochor -15.8%
D17 Changi Airport / Changi Village -17.4%
D26 Mandai / Upper Thomson -18.3%
D20 Ang Mo Kio / Bishan / Thomson -23.7%
Sources: URA, Realis, DREAPowered by DREA
Median PSF Price change by district (2H 2016 vs 2H 2015)
For private non-landed residential properties between >2000 QFT
vs 2H 2015
D22 Boon Lay / Jurong / Tuas 29.6%
D18 Pasir Ris / Tampines 23.1%
D27 Sembawang / Yishun 21.3%
D11 Newton / Novena 5.9%
D28 Seletar / Yio Chu kang 3.9%
D23 Bukit Batok / Bukit Panjang -1.4%
D19 Hougang / Punggol Seng Kang -1.5%
D16 Bedok / Upper East Coast -4.6%
D14 Eunos / Geylang / Paya Lebar -6.6%
D9 Orchard / River Valley -6.9%
D5 Buona Vista / West Coast / Clementi New Town -7.3%
D21 Clementi Park / Upper Bukit Timah -7.9%
D15 East Coast / Marine Parade -8.6%
D13 Macpherson / Potong Pasir -9.1%
D10 Tanglin / Holland -12.1%
D4 Harbourfront / Telok Blangah -12.5%
D17 Changi Airport / Changi Village -13.1%
D20 Ang Mo Kio / Bishan / Thomson -14.9%
D3 Alexandra / Commonwealth -15.3%
D26 Mandai / Upper Thomson -22.2%
D12 Balestier / Toa Payoh -33.1%
D1 Boat Quay / Raffles Place / Marina -75.6%
Sources: URA, Realis, DREAYou can also read
