Friday, Mar 02, 2012
BT, AsiaOne  
 
Indian national buys Susan Lim's Sentosa Cove home for $39 million  
 
(Above) Prime property: The bungalow has five bedrooms, a spacious living area and an entertainment room. It sits on a land area of 15,929 sq ft and has a 99-year leasehold tenure.

By Kalpana Rashiwala, with additional reporting by AsiaOne

IN the latest sign of a revival in the high-end bungalow market, a seafronting bungalow at Cove Drive has changed hands at $39 million, a record absolute price for a bungalow in the upscale waterfront residential district of Sentosa Cove.

This surpasses the previous high of $36 million for a bungalow on Paradise Island that was transacted in 2010. That worked out to $2,403 per square foot (psf) on land area of 14,983 sq ft for the waterway-facing property. 

According to The Straits Times, the home is believed to be owned by embattled surgeon Susan Lim, who was alleged to have charged a member of the Brunei royal family $24.8 million for seven months of treatments. She was also said to have made false representations in invoices. She later took the Singapore Medical Council (SMC) court to block an inquiry by a second medical disciplinary committee looking into complaints on overcharging.

In the latest deal at Cove Drive, the price works out to $2,448 psf based on the land area of 15,929 sq ft. The property is understood to have been sold by a Singaporean to a buyer from India who is said to be involved in the resources sector.

The completed bungalow includes five bedrooms, a spacious living area and an entertainment room. Newsman Realty represented the seller.

Residential properties on Sentosa Cove have 99-year leasehold tenure.

The previous record for a Sentosa Cove home was the sale of a 14,983 sq ft bungalow on Paradise Island. Located in the northern part of Sentosa Cove, the bungalow is believed to have been bought by a Singapore permanent resident from China, Mr Shen Bin. 

He is believed to be the son of Shen Wen Rong, the president of Chinese firm Sha Steel. The elder Mr Shen is listed as the 13th richest person in China in the 2011 Hurun Wealth Report.

On mainland Singapore, too, talk in the market is that another headline-grabbing price may be set in a Good Class Bungalow Area (GCBA) involving a vacant plot at Jervois Hill. The agreed price is said to be $31 million or about $2,050 psf based on the freehold site's land area of around 15,120 sq ft.

A Singaporean investor is thought to have entered a deal to sell the land to a party who is said to have paid a higher-than-normal option deposit. The deal also involves a completion period of one year - longer than the usual three months. Word on the street is that the buyer will be applying to become a Singapore citizen.
 
Purchases of landed homes on mainland Singapore by foreigners (including permanent residents) is restricted. Such buyers have to obtain permission from the Land Dealings (Approval) Unit or LDAU. Applicants have to fulfil certain criteria before permission is granted, including being a Singapore PR and making significant economic contribution to the country.

Sentosa Cove is the only place in Singapore where non-PR foreigners may buy a landed home, though still subject to LDAU approval.

A foreigner (including a PR) may own only one landed home in Singapore (including Sentosa Cove) and this must be used for own occupation. The land area for the property must not exceed 15,000 sq ft.

Property market watchers say the $2,050 psf for the Jervois plot is a new high for the area. 'That's the kind of pricing one would expect in the Nassim and Dalvey areas,' said a seasoned GCB agent.

Last week, BT reported that motoring tycoon Peter Kwee had sold a vacant plot of about 23,920 sq ft at Nassim Road for about $47.8 million or $2,000 psf.

The psf record price for a GCBA is held by 6 Chatsworth Road, which transacted at $2,081 psf in July last year. This slightly surpassed the previous record of $2,038 psf for 16 Cluny Road set in February 2011. That deal in turn broke the previous high of $1,899 psf for 32H Nassim Road in October 2007. However, the Chatsworth bungalow and 32H Nassim Road have smaller land areas than the typical minimum GCB plot size of 15,069.50 sq ft.

When GCBAs were gazetted in 1980, they included some smaller existing sites. These are still considered GCBs as they would be bound by the other GCB planning rules if they were to be redeveloped. For instance, such plots cannot be further sub-divided.

Another recent GCBA deal is at Wilby Road, where an old two-storey bungalow sold for $15.2 million or $1,093 psf. The site area is 13,906 sq ft. RealStar Premier Group represented the buyer. Other recent bungalow deals outside GCBAs are said to include a property at Jalan Arnap in the prime One Tree Hill locale, which fetched $12.5 million or about $1,710 psf based on land area of about 7,300 sq ft. On site is an over 30-year-old bungalow.

At Jalan Jambu Ayer in the Binjai Park area, an old bungalow on a rectangular plot with land area of about 7,212 sq ft and wide frontage of about 17 metres is understood to have changed hands recently for $9 million or about $1,248 psf. At Sunset View in the Clementi area, RealStar brokered the sale of a freehold bungalow for $7.5 million or $1,190 psf based on land area of 6,302 sq ft.

After an initial knee-jerk reaction to the introduction of the additional buyer's stamp duty (ABSD) that took effect on Dec 8, house hunters have started to return to the bungalow market since the Chinese New Year period.

On Sentosa Cove, Newsman Realty managing director KH Tan said foreign interest is returning, with potential buyers from places like China, Indonesia and India. 'They come from a range of backgrounds, including, industrialists (eg in the coal-mining industry) and even developers from China. Some have children studying in Singapore while others find Singapore an interesting global city. They believe there's room for substantial price appreciation in Singapore bungalow prices.

On the GCB front, Coldwell Banker Realtors managing director Alexs Chua said although transaction volumes have slipped, transacted prices are generally holding well.

'Some sellers are revising their prices now - not because prices are set to fall but rather they have realised they had overpriced right from the start. In the prime GCB locations such as Nassim, Dalvey or Tanglin, sellers would rather withdraw their properties from the market than lower their prices.

'However, in the less prime GCB estates where demand is not as strong, some sellers have adjusted their asking prices and usually these are the motivated ones. Those who don't need to sell their GCBs acknowledge that this is not exactly the best time to do so,' he added.

Under the ABSD regime, PRs pay 3 per cent ABSD on their second and subsequent residential property while Singaporeans pay the same ABSD rate on their third and subsequent residential property. Foreigners, however, must pay 10 per cent ABSD on any residential property purchased in Singapore.

Friday, Mar 02, 2012
tabla!  
 
Don't ignore the secondary market when it comes to property  
 
By Karamjit Singh

IN SINGAPORE'S residential property market, new primary market projects have been a constant draw to buyers attracted by the excitement of owning a new home that comes with the latest fixtures and fittings.

However, the newest and the latest often come at a price which some buyers find hard to accept, especially at current market highs. Units in new projects also tend to be smaller so those looking for bigger floor areas may not find them suitable.

Some buyers also prefer to renovate the unit according to their needs and tastes, rather than the standard offering in new developments.

Due to these reasons, a good number of buyers turn to the secondary market for, possibly, a better deal and also in meeting their needs.

With units in new projects, even 99-year leaseholds, commanding a premium, there are other options with bigger floor areas and freehold title but in older developments. The following are some examples.

In Seletar Hills, Greenwich is a new retail-cum-residential project with a 99-year leasehold tenure. The residential component is still being built and 1,227 sq ft units in the development have been selling for about $1.6 million ($1,300 psf). Further inside the estate is Nim Gardens, an older freehold condominium which had 1,830 sq ft units selling for $1.36 to $1.48 million ($740 to $800 psf). Nearby Mimosa Park is also in the price range of Nim Gardens, offering unit sizes of 1,755 sq ft upwards.

Foresque Residences, a new 99-year leasehold condominium being built in the Upper Bukit Timah area, has sold 1,270 sq ft units for $1.43 to $1.55 million ($1,130 to 1,220 psf). In nearby Cashew Heights Condominium, an older 999-year leasehold development, there have been sales of 1,647 sq ft units at between $1.4 and $1.5 million ($850 to $900 psf).

So for roughly the same price, one gets a 30 per cent larger unit in the latter. A buyer may be also find similar opportunities in Hazel Park Condominium, an adjacent 999-year development.

In the Upper Changi Road North area, Hedges Park Condominium is a new 99-year leasehold project under development. In this project, 1,345 sq ft units have been sold for about $1.1 million ($820 psf).

At about that price, a buyer will be able to consider units of 1,700 sq ft in nearby Ballota Park Condominium, an older freehold project. Units of similar floor area and price range can also be found in Carissa Park Condominium, another freehold development in the vicinity.

Thomson Grand is a new 99-year leasehold condominium being developed in the Thomson Road area. Units of 1,044 sq ft have been sold for about $1.6 million ($1,500 psf). In this price range are 1,593 sq ft units in Flame Tree Park, an older freehold development nearby.

In the Alexandra area and near Redhill MRT station, Ascentia Sky, a new 99-year leasehold condominium, is being built. Units with a floor area of 1,776 sq ft in this project have fetched $2.7 million ($1,540 psf).

For about the same price, buyers may find units of 2,100 sq ft in Clydesview at nearby Jervois Lane. Alternatively, units of 1,776 sq ft to 1,830 sq ft in the Anchorage have transacted for around $2 million ($1,100 psf), about 25 per cent cheaper than Ascentia Sky.

Both Clydesview and Anchorage are older condominiums with freehold titles but not close to an MRT station, unlike Ascentia Sky.

In general, secondary market units which are comparable to new ones on the primary market are 20 to 25 per cent cheaper but the buyer would probably have to go through the hassle of renovating the unit and fork out some money for that.

In 2011, more than half the transactions in the residential property market were in the secondary market. This shows that a large number of buyers still find their needs being met in the secondary market.

Friday, Mar 02, 2012
AsiaOne  
  
More BTO flats and exec condos allocated to second-time home buyers  
 
Those looking to purchase a home for the second time will have more options to do so in the future.

Minister for National Development Khaw Boon Wan anounced during Friday's Parliament sitting several new housing measures to provide more options for second-time home buyers.

Firstly, the allocation of Build-to-Order (BTO) flat supply in non-mature estates will be tripled from five per cent to 15 per cent to give second-timers better access to affordable new flats.

It will remain at 5 per cent for BTO flats in mature estates and Sale of Balance Flat (SBF) exercises so that first-timers continue to have priority in allocation.

The change will be implemented from the March 2012 sales exercise onwards.

Secondly, the allocation of Executive Condominiums (ECs) will be increased six-fold from five per cent to 30 per cent to help second-timers realize their upgrading aspirations

This allocation applies during the first month of public sales launch for EC projects.

The revised allocation will start with immediate effect for all EC projects, including those which are currently within their first month of public sales launch and those pending public sales launch.

Those who wish to find out more can contact the HDB sales/resale customer service line at 1800 8663 066 or email hdbsales@hdb.gov.sg.

Friday, Mar 02, 2012
AsiaOne  
 
More BTO flats for children who want to live near parents  
 
The supply of Build-To-Order (BTO) flats in mature estates will be increased to cater to children who want to live near their parents.

This was one of several new housing measures announced by Minister for National Development Khaw Boon Wan today to help promote strong family ties.

According to a statement released by the Housing Development Board (HDB), it will build more flats in mature estates so that more young families benefit from the Married Child Priority Scheme (MCPS) and live near their parents.

It targeted 30 per cent of HDB's BTO flats to be in mature estates such as Bedok, Kallang/Whampoa, and Geylang by 2012.

Other measures include the Multi-Generation Priority Scheme, where familes have more options to stay close together and the Married Child Priority Scheme, which increases the chances of families applying to live together.

Under the Multi-Generation Priority Scheme (MGPS), parents and their married child can submit a joint application to purchase a SA or 2-room flat together with another 2-room, 3-room, 4-room or 5-room flat in the same BTO project.

Applicants will have the options of choosing flats on the same floor or elsewhere in the same project, from a pool of pre-identified flats.

About 250 pairs of MGPS units will be made available for joint selection in 2012 in Bedok, Kallang / Whampoa and Punggol housing estates.

Under the Married Child Priority Scheme (MCPS), there will be higher chances for parents and married children to stay with or near each other by giving them more ballot chances.

All these new measures will take effect from the March 2012 BTO exercise.

Friday, Mar 02, 2012
AsiaOne  
 
New scheme to help elderly remain in same estate  
 
Elderly who wish to move to a studio apartment while remaining in their current town can now do so with the new Ageing-in-Place Priority Scheme (APPS).

This is so that they can "age-in-place" in a familiar environment.

Minister for National Development Khaw Boon Wan introduced in Parliament today this new scheme, where studio apartment applicants will be given more chances during balloting, if they are existing flat or private property owners living in the same estate or within 2 km from the apartments offered.

The APPS will apply alongside the Married Child Priority Scheme (MCPS), which supports parents who wish to live near their married children.

This scheme will take effect from the March 2012 BTO exercise.

Sunday, Mar 04, 2012
The Business Times  
 
Hotspots for completed properties  
 
By Chia Siew Chuin

THE private housing market in Singapore scaled new heights in 2010 and 2011 as prices escalated past previous peaks, while the volume of new home sales hit fresh highs.Realise your dream to fly with the 2012 Jetstar Asia Cadet Pilot Programme    

Though attention was mostly focused on the primary market, the secondary market was also active with healthy price gains.

Secondary market transactions of private residential property totalled some 16,357 units last year.

According to the National University of Singapore’s Singapore Residential Price Index Series (SRPI), prices of such properties rose by 25 per cent between end-2009 and end-2011. The SRPI tracks price changes in its basket of completed non-landed private homes.

This outperformed the 24.4 per cent rise for all private residential property types and the 19.2 per cent gain for non-landed private homes, going by the Urban Redevelopment Authority’s (URA) price indices over the same period.

These URA indices include completed and uncompleted homes.

Hotspots in Singapore

In 2011, buyers who bought from completed non-landed private residential projects at least five years old were particularly keen on five districts. Ranked in terms of transaction volume, they were 15, 23, 16, 10 and 19. Based on caveat records in the URA’s Real Estate Information System (Realis) on Jan 30 this year, these districts chalked up the highest transaction volume for secondary market non-landed homes.

Singaporeans accounted for more than 54 per cent of all such transactions in each of these hotspot locations.

Buyers from China were most active in districts 23 (covering areas such as Hillview, Diary Farm, Bukit Panjang and Choa Chu Kang) and 19 (including Serangoon Gardens, Paya Lebar, Hougang and Punggol). They accounted for a significant 31.8 and 27.7 per cent respectively of all foreign purchasers of resale non-landed residential properties in these locations last year.

Homebuyers from India favoured the eastern part of Singapore, where they formed the largest proportion of foreigners who picked up resale non-landed homes in districts 16 and 15 – at 31.7 and 26.7 per cent respectively.

Indonesians were the largest group of foreign buyers in district 10, with a 20.3 per cent share.

District 15: The three most actively transacted developments in the secondary market in district 15 were Costa Rhu, Mandarin Gardens and Water Place. In Costa Rhu, units from 990 square feet to 5,813 sq ft were sold at between $1.18 million and $5.05 million last year. Water Place commanded prices of $1.1 million to $1.94 million for units between 904 sq ft and 1,636 sq ft. At Mandarin Gardens, prices ranged from $700,000 to $1.93 million for units measuring 732 sq ft to 2,034 sq ft.

These three 99-year leasehold developments are sought after for their proximity to the city, the waterfront as well as the green lungs at the Marina Bay Golf Course and the East Coast area. They are also close to established lifestyle and food and beverage haunts in the Katong and Geylang neighbourhoods.

Buyers are also likely to be attracted to the spacious living and dining areas of Costa Rhu units. In Mandarin Gardens, residents get to enjoy an Olympic-sized swimming pool and four tennis courts. Over at Water Place, all apartment blocks are widely spaced out, providing a sense of space.

Buyers are also known to purchase units in these developments for potential capital appreciation and rental income. For instance, those who bought units in Costa Rhu and Water Place in the Tanjong Rhu area in 2010 and sold them in 2011 saw capital gains of 18-19 per cent, according to caveats lodged.

This is before taking into account the seller’s stamp duty (SSD) payable on all residential properties bought on or after Feb 20, 2010 and sold within 12 months from the date of purchase. The stamp duty rates applicable are one per cent for the first $180,000 of the sale price, 2 per cent for the next $180,000, and 3 per cent for the balance.

However, prospective investors should note that under the prevailing SSD regime effective Jan 14, 2011, aimed at dampening speculative activity, the holding period for the imposition of SSD has been extended to four years. The SSD rates have also been hiked to 16 per cent, 12 per cent, 8 per cent and 4 per cent of the sale price for residential properties bought on or after Jan 14, 2011, and sold within the first, second, third and fourth year of purchase, respectively.

In the leasing market, units at Costa Rhu and Water Place garnered net rental yields of 2.5 per cent to 4.1 per cent last year. Prices at Mandarin Gardens in Siglap appreciated by about 17 per cent last year and net rental yields ranged from 2.4-3.7 per cent during the year.

District 23: In this district, the three most sought-after developments last year were Regent Heights, Northvale and Palm Gardens. According to caveat records, units measuring 689 sq ft to 2,594 sq ft found in these 99-year leasehold developments changed hands at prices ranging from $705,000 to $1.6 million last year.

Those who bought units in these developments in 2010 and sold them last year enjoyed capital gains of between 11 per cent and 30 per cent. They also reaped rental yields ranging from 2.8-4.5 per cent.

District 16: In this district in the east, buyers in the secondary market last year were mostly keen on The Bayshore, Costa Del Sol and Bayshore Park. These 99-year leasehold developments are close to established housing estates such as Bedok and Marine Parade as well as the airport. They also boast impressive views of the nearby East Coast Park and the sea.

Buyers of apartments at Costa Del Sol are also likely to have been attracted to the large living and dining areas of the units as well as the functional and regular layout of the rooms.

In 2011, units in these developments were transacted at prices ranging from $580,000 to $3.6 million for units measuring 624 sq ft to 3,800 sq ft. Those who bought units in The Bayshore and Bayshore Park in 2010 and disposed of them in 2011 realised capital gains of about 8 per cent to 20 per cent.

Those at Costa Del Sol saw a price increase of about 17 per cent to 30 per cent. Rental yields for the three projects ranged from 3-5 per cent in 2011.

District 10: Valley Park, The Tessarina and Duchess Crest were the three most transacted developments in the coveted district 10 last year. Units measuring 753 sq ft to 1,808 sq ft in the 999-year leasehold Valley Park in River Valley Road were transacted at prices ranging from $960,000 to $2.77 million in 2011.

At the freehold Tessarina on Wilby Road, buyers bought units ranging from 969 sq ft to 1,367 sq ft, at prices ranging from $1.31 million to $2 million last year. At Duchess Crest, a 99-year leasehold condominium on Duchess Avenue, buyers bought units of 936 sq ft to 2,088 sq ft at prices ranging from $1.14 million to $2.63 million in the same year.

Valley Park is popular as it is conveniently located next to Valley Point Shopping Centre and is close to Great World City. Units in the project also have large living and dining areas as well as service yards. Similarly, units at The Tessarina have large bedrooms and good layouts.

Those who bought units at Valley Park and The Tessarina in 2010 and sold them last year saw capital gains of between 10 and 20 per cent. In Duchess Crest, price gains in the same time frame were higher – between 25 and 29 per cent. Units in these three developments provided rental yields of 2.1-3.7 per cent in 2011.

District 19: Secondary market buyers in this district mostly opted for Kovan Melody, Rio Vista and Compass Heights last year. These 99-year leasehold developments are popular largely for their attractive locations.

Kovan Melody, for instance, is adjacent to the Kovan MRT station. Units measuring 872 sq ft to 1,518 sq ft in size were transacted at prices ranging from $845,000 to $1.51 million last year. Investors in such units achieved rental yields of 3.1-3.8 per cent.

Compass Heights is integrated with the Compass Point mall, the Sengkang MRT station and the Sengkang bus interchange. Such integrated developments have proven to be popular. In 2011, Compass Heights commanded prices ranging from $675,000 to $1.68 million, for units between 667 sq ft and 2,519 sq ft. Rental yields for this development were in the range of 2-3.9 per cent.

Meanwhile, those who bought units in Kovan Melody and Compass Heights in 2010 and sold them a year later reaped capital gains of 13 per cent to 33 per cent.

Rio Vista is situated adjacent to Sungei Serangoon, the Serangoon bicycle track and park connector, and is close to Punggol Park. The location offers residents a green and park-like living environment. Units in the development also offer large service yards and private enclosed spaces. In 2011, units measuring 1,055 sq ft to 2,573 sq ft were sold at prices ranging from $785,000 to $1.8 million. Prices of units at the development appreciated by about 14 per cent in 2011 and rental yields ranged from 3-3.9 per cent.

Prospective buyers, however, need to be clear about the pros and cons of buying homes in the secondary market and assess if the available options meet their needs.

Those who buy such properties will have the advantage of occupying the property immediately or getting immediate rental returns. Another draw of buying into an older project is the availability of larger units compared with what’s on offer at most new launches these days.

In addition, buying a completed unit allows one to visually assess the unit as compared to buying an uncompleted unit off the plan. The downside, particularly with older units, is dealing with potential problems with electrical fittings and plumbing and general wear and tear. There may be a need for extensive renovations in some cases.

Some buyers may be put off by the higher initial monthly repayments required for resale homes compared with progress payments for uncompleted units.

Another drawback could be the more stringent rules for financing properties whose leases are running low. For such properties, there are limitations on the withdrawal of funds from the Central Provident Fund as well as for financing loans.

Overall, options abound in the secondary market and the hotspot locations highlighted here can point potential homebuyers and investors to some attractive choices.

The writer is director, research & advisory, Colliers International Overall, options abound in the secondary market and the hotspot locations highlighted here can point potential homebuyers and investors to some attractive choices.

Monday, Mar 05, 2012
The New Paper  
  
HDB schemes help families stay close  
 
By Lediati Tan

"How I wish there would suddenly appear tens of millions of houses to house everyone, especially the poor, so that they can live in comfort and rejoice and be protected against any thunderstorm."

Mr Khaw referenced the poem in his speech on Day Two of the Committee of Supply debates on Budget 2012.

He talked about schemes which would help families stay close and for the elderly to continue living in a familiar environment after downsizing to smaller flats.

Multi-Generation Priority Scheme (MGPS)

Parents can apply jointly with their married child to purchase a studio apartment or two-room flat for themselves and another two-room, three-room, four-room or five-room flat for their married child in the same Build-To-Order (BTO) project.

A minimum of 20 units or up to 15 per cent of the supply of studio apartments or two-room flats will be set aside, together with the corresponding number of flats for each flat type (from two-room to five-room).

Successful applicants will be able to select their flats before public applicants.

They can choose flats on the same floor or elsewhere in the same project from a pool of pre-identified flats.

There will be about 250 paired units available under the scheme this year in housing estates such as Bedok, Kallang and Punggol.

Other Schemes

This year, 30 per cent of BTO flats will be in mature estates such as Bedok, Kallang, Whampoa and Geylang. Last year, 14 per cent of BTO flats were in mature estates.

For second-time flat buyers:

From the March 2012 sales exercise, allocation of BTO flat supply in non-mature estates will triple from 5 per cent to 15 per cent.

Allocation of executive condominiums (ECs) will also increase six-fold from 5 per cent to 30 per cent.

This allocation applies during the first month of public sales launch for EC projects.

It will take immediate effect on all EC projects, including those within their first month of public sales and those pending public sales launch.

For retirees:

The Silver Housing Bonus and enhanced Lease Buyback Scheme will be introduced to help meet retirement needs. More details will be announced later.

Ageing-in-Place Priority Scheme (APPS)

They will be given more balloting chances if they are existing flat owners or private property owners in the same estate or within a 2km distance from the studio apartments.

The APPS can be applied together with the Married Child Priority Scheme.

For parents who want to move near their married child

Enhanced Married Child Priority Scheme (MCPS)This scheme currently gives only a higher ballot chance to parents or their married child who apply for a BTO flat near each other.

Under the enhanced scheme, parents and their married child who apply to live in the same flat will be given an even higher ballot chance than those who apply to live near each other.

Monday, Mar 05, 2012
AsiaOne  
 
Second-time buyers snap up EC units  
 
Friday's announcement revising the quota of flats for second-timers seems to already have had some effect on the market.

From just five per cent before, now, 30 per cent of Executive Condominiums (ECs) will be set aside for second-time buyers, or those who have already received a housing subsidy from the government.

Last Saturday, reported The Straits Times, more than 600 people thronged the showroom of the Tampines Trilliant. Developer Sim Lian Group said 110 units of the EC were sold, with most of them going to second-time buyers. 168 units had been reserved for this group.

Meanwhile, all 182 units of Punggol EC Twin Waterfalls that were set aside by developer Frasers Centrepoint were sold within two hours yesterday. This is despite a one per cent hike in prices for units with a pool view.

Executive condominiums are an attractive option for those who want to have condo-like facilities at a lower price. These developments, however, come with HDB restrictions like a 5-year minimum occupation period (MOP).

For instance, the Twin Waterfalls project is going for $698 per sq ft (psf) while the Tampines Trilliant is going for $766 psf. According to the paper, comparable private condo units nearby are going for $820 to $950 psf.

Property consultant firm SLP International's head of research Nicholas Mak told the paper that higher prices may make the developments more skewed toward second-time buyers, who would be able to afford these more than the first-time buyers. The latter group may then lean toward the 'glut of affordable Build-To-Order (BTO) flats coming onstream'. BTO flats may cost just around $250 to $350 psf.

Mr Colin Tan, the research head at Chesterton Suntec International, told the paper that the demand from second-time buyers may continue as they may feel they have a better chance to get a choice unit now, with the revised quota.

Monday, Mar 05, 2012
AsiaOne  
  
New sites proposed for elderly studios  
 
Even as the Housing Board (HDB) is preparing to launch a Build-To-Order (BTO) exercise 130 units of studio apartments for the elderly later this month, it is still receiving proposals and petitions from some irked residents regarding the location of the flats.

HDB's original plan is to build the block of studio apartments on a plot of land at the junction of Toh Yi Road and Toh Yi Drive in Bukit Timah.

However, this plan did not sit too well with some residents, reported The Straits Times, as it would mean that their main recreational facility, comprising a basketball court, a jogging track and a small garden at the site will be demolished to make way for the studio apartments.

They argued that HDB's proposed site was not suitable for the elderly as it is located on a slope, which would make it difficult for older people to walk down and climb up when they need to go to the coffee shop and such.

230 people signed their petition, which they submitted to Ms Sim Ann, the MP for Holland-Bukit Timah GRC who oversees the area.

This led them to propose a new site, suggested by a resident, Mr Fong Hoo Cheong - this one on another plot of land near Block 17 that is currently occupied by a temporary carpark. They argued that this site is better for the elderly as it is near the main road and to amenities like the wet markets and clinics.

Block 17 residents however, also protested when they found out about the proposal. The paper reported that 50 of them signed a petition and submitted it to their MP. They said that they would lose the view which they paid a premium for, as well as fearing that it will exacerbate their parking woes due to the loss of the carpark. They are also reportedly upset that the residents from Toh Yi have effectively 'made it someone else's problem'.

They said that while they are not against elderly residents living with them, they feel that the site is not ideal for them as it is too near the main road, which may make it too noisy and dusty.

They suggested another plot of land between the Bukit Timah Market and Food Centre and a petrol station, which they claim will affect the least number of residents and is also close to amenities.

Ms Sim assured her residents that HDB will provide 50 extra carpark spaces near the site that will eventually be chosen to relieve parking shortage. ST also reported that she has been visiting residents to gather feedback and address their concerns.

It will launch the Build-To-Order (BTO) exercise later this month.

This is despite a flurry of protests and petitions from residents of the area. The Toh Yi residents had submitted a petition to Ms Sim Ann, Member of Parliament for Holland-Bukit Timah GRC, suggesting that the apartments be located about 20m away, near Block 17 instead.

According to The Straits Times, HDB said yesterday that the four alternative sites suggested, including the one by the 230 residents who signed a petition, were unsuitable.

Last night, the paper met with some residents who said they were told that HDB will engage them in open dialogue should there be any updates. They are now 'fed up' in finding that the plan is confirmed to go ahead, reported ST.

However, at a media briefing yesterday, the Housing Board enumerated its plans to address the concerns of the affected residents. These include building a children's playground and community garden on the second floor of the studio apartment building that is for everyone's use, a jogging path, and 50 additional carpark spaces. 16 of these spaces will be reserved for the use of the residents of the studio apartments.

Regarding the residents' argument that the site is on a slope which would pose a problem for the elderly, HDB said it will add more footpaths that will link the studio apartments to the neighbourhood.

HDB also said that the site had always been set aside for eventual development, and was only being used temporarily as a recreational facility which includes a basketball court and garden. This means that when the need arises, the site would have to be returned.

The site had been selected as more than half the households in Toh Yi had at least one elderly occupant, as well as the fact that no such block exists in the Bukit Timah estate at the moment.

According to HDB, the project will benefit these residents, who 'could consider staying in an SA while continuing to live in a familiar neighbourhood'.

Ms Sim had earlier asked the Housing Board to prioritise elderly residents living in the estate who would like to apply for the flats.

In response to this, National Development Minister Khaw Boon Wan last Friday announced the Ageing in Place Priority Scheme in Parliament, which will give flat owners living in the same estate or within 2 km of the studio apartments twice the chance of being balloted.

Tuesday, Mar 06, 2012
AsiaOne  
  
Enhanced e-lodgement of documents with land registry  
 
Stamp Duty certificates will no longer need to be presented when documents are lodged electronically with the Land Titles Registry from today.

This is after the Inland Revenue Authority of Singapore (IRAS) and Singapore Land Authority (SLA) have streamlined the electronic lodgement process.

Law firms will no longer need to present Stamp Duty certificates when documents that are subject to Stamp Duty - such as mortgages, transfers and leases - are lodged electronically with the Registry. Instead, they would just need to provide the "Stamp Duty Certificate Reference" in the relevant section of the documents which they then lodge electronically.

This joint initiative by IRAS and SLA saves law firms time and provides greater convenience as law firms are now able to complete their legal requirement of submitting documents and Stamp Duty certification with a few mouse clicks using the Registry's e-Lodgement system.

Tuesday, Mar 06, 2012
AsiaOne  
  
HDB awards tender for Upper Serangoon residential site  
 
The Housing and Development Board (HDB) has awarded the tender for the executive condominium housing site at Upper Serangoon View/Upper Serangoon Road to Ho Lee Group Pte Ltd and Evia Real Estate Management Pte Ltd.

The company submitted the highest bid of $141,480,000 for the site, which has a site area of 12,392.20 sq m.

The tender for the residential site was launched on Jan 19, 2012.

The land parcel was offered for sale on a 99-year lease term.

Tuesday, Mar 06, 2012
AsiaOne  
  
URA closes tender for Hillview Ave residential site  
 
The Urban Redevelopment Authority (URA) has closed the tender for the residential site at Hillview Avenue today.

The site was launched for public tender on Jan 19 and was offered for sale on a 99-year lease term.

Seven bids were made for the 12,648-square-metre site: Kingsford Development Pte Ltd made the highest bid of $243 million.

A decision on the award of the tender will be made after the bids have been evaluated and will be publicised at a later date.

Wednesday, Mar 07, 2012
The Business Times  
  
ECs: Easing your way into private housing  
 
By Mohamed Ismail

THE Housing and Development Board (HDB) moderated its 17-year-old income ceiling policy when Prime Minister Lee Hsien Loong announced during the 2011 National Day Rally that the monthly household income ceiling would be increased from $8,000 to $10,000 for those buying HDB's build-to-order (BTO) flats, and from $10,000 to $12,000 for executive condominiums (ECs).

This announcement brought relief to the middle-income group, also known as the "sandwich class", whose monthly household incomes are in the range of $8,000 to $12,000.

Couples in such households now have a wider option of homes - new BTO flats or EC units - where they used to be limited to the option of purchasing HDB resale flats or mass market private condos.

For the past five years, from Q4 2006 to Q4 2011, HDB's resale flat price index has risen 83.8 per cent.

However, with the release of about 28,000 new flats under the BTO system and Sale of Balance Flats exercise in 2011 plus another 25,000 BTO units in 2012, we are expecting prices to stabilise and have a cooling effect on the resale market as more young couples turn from resale HDB flats with high cash over valuation (COV) premiums to a wider choice of new BTO flats with a lower price tag or executive condominiums (ECs).

ECs are favoured by many homebuyers with the recent increased income ceiling as they cater to Singaporeans aspiring to own a private property.

The government's ramping up of supply of new EC units through the Government Land Sales Programme is definitely of great help for higher-income Singaporeans to own private condominium units in an affordable way.

Let's take a look at how ECs came about in the earlier days.

In the mid-1990s, the spike in private property prices was so fast that much of the young generation found their dream house out of reach. To meet the hopes of these younger people, ECs were introduced, targeting young graduates and professionals who wanted more than a HDB flat but could not afford a private property.

ECs are a hybrid of public and private housing with initial buyer eligibility and resale conditions similar to HDB homes for the first five years.

These restrictions are completely lifted 10 years after the completion of an EC project. Similar to private condominiums in terms of facilities and designs, ECs are developed and sold by private developers on 99-year leasehold sites under the Government Land Sales Programme.

When ECs were first introduced, they were very popular.

However, from 2005 to 2009, no EC project was launched in Singapore as demand for private property dropped significantly after the Sars epidemic in 2003 and the economic crisis in 2008. The demand for ECs was depressed as 99-year leasehold suburban private condo prices were affordable.

Homebuyers were opting for mass market private condominiums as these do not have buyer eligibility and resale restrictions.

Thus, the government left it to the works of the market and did not see a need to make EC sites available during that period of time.

Making a comeback

EC projects made a comeback in 2010, mainly due to the fact that many first-timers have higher combined incomes exceeding the $8,000 monthly household income ceiling for HDB's BTO flats. At the same time, however, prices of 99-year mass market private condos recovered sharply after the global financial crisis, once again slipping out of the reach of many first-time buyers.

Many young couples are getting married at a later age, which puts them into the middle-management pay group and these are the "sandwich class" who may have little choice but to consider getting either the highly-priced HDB resale flats or shoebox units in mass market private condo projects.

Many in this segment of homebuyers were priced out of the EC market due to the $10,000 monthly income ceiling policy at the time.

In the 2011 General Elections, affordable housing was a key concern for many Singaporeans and many dreams will be shattered if Singaporeans' aspiration of owning a private property becomes unattainable. Thus, with the escalating private home prices, the government had decided to increase the income ceiling and augment the supply of ECs to cater to the needs of the "sandwich class".

The total stock of completed EC units was 10,430 at end-Q4 2011. In addition, there are 6,058 EC units in the pipeline. Another 2,900 units could be generated from EC sites that will be released for sale via the first half 2012 Government Land Sales Programme.

It is an unprecedented move to increase the supply of so many ECs within a year, compared to approximately 15,000 ECs introduced in the last 15 years. Let's look further at the attractiveness of ECs.

ECs are relatively more affordable compared with private properties because of the restrictive criteria in qualifying for ownership and the minimum occupation period. Couples earning $12,000 (combined monthly income) or above do not qualify to buy a new EC unit from a developer.

In line with HDB's plan to increase the supply of ECs, prices of ECs are expected to moderate from the current range of $750 per square foot to $700 psf in the coming months. This is definitely lower than current mass market condominium prices averaging at about $900 psf.

Currently, more than 20 EC projects have passed the five-year period and about half of them have fulfilled the 10-year requirement, which means foreigners can buy into such projects.

Thus, the capital appreciation from owning an EC unit is rather positive, especially after it is privatised, allowing it to be sold in the open market.

Based on statistics in Table A, ECs that were completed in the 1990s have seen their prices almost double compared with the prices when the first owners bought them, especially after they were fully privatised. Capital appreciation is 100 per cent in projects such as Eastvale, Westmere, Simei Green, Windermere and Chestervale.

ECs are definitely a good option for many to consider especially for HDB upgraders, due to the limited supply and their value after 10 years.

Some ECs that are in the five to 10-year completion period (Table B) are already seeing their prices escalating to as high as $919 psf such as Bishan Loft, based on the last transaction in December 2011.

In conclusion, Singaporeans are looking forward to the opportunity of owning a private property at more affordable prices and the alternative of upgrading to an EC will definitely be fulfilling many Singaporeans' dreams. HDB flats have reached their peak and are likely to undergo a correction - or at least see muted price growth - in the next few years.

Wednesday, Mar 07, 2012
AsiaOne  
 
Tender for Serangoon EC site goes for $141.48 million  
 
The Housing & Development Board (HDB) awarded the tender for an Executive Condominium (EC) housing site at Upper Serangoon View / Upper Serangoon Road to Ho Lee Group Pte Ltd & Evia Real Estate Management Pte Ltd.

They submitted the winning bid of $141.48 million for the 12,392.20 sq m site.

It has a 99-year lease and a maximum gross floor area of 43,372.70 sq m. It can potentially yield up to 435 housing units.

The tender closed on Tuesday.

Wednesday, Mar 07, 2012
AsiaOne  
 
Little-known firm wins tender for Hillview condo site  
 
It is not too well-known, but Kingsford Development - owned by three Chinese nationals - has won the tender for a high-rise condominium site in Hillview Avenue.

It submitted the winning bid of $243.2 million for the 12,648.5 sqm site site. This translates to $6,867 per sqm per gross floor area (GFA) for the site, which has a GFA of 35,416 sqm.

Its bid for the 99-year leasehold site is 16 per cent higher than the second-highest bidder, Flamegold, a unit of UOL Group, which submitted a bid of $204 million.

Friday, Mar 09, 2012
The Business Times  
  
Mass-market segment still going strong  
 
By Han Huan Mei

2011 was a record year for mass market home sales. Urban Redevelopment Authority (URA) numbers indicate that 10,374 units or 65 per cent of the total number of new private homes sold were in the Outside Central Region (OCR). The figures exclude executive condominiums (ECs).

In comparison, home sales in the OCR numbered 7,357 units (45 per cent share) in 2010 and 6,060 units (41 per cent) in 2009. It is our view that this segment of the residential market, particularly projects with good location and product attributes, will continue to be fairly resilient in the coming months.

URA defines Core Central Region (CCR) as districts 9, 10, 11, Downtown Core and Sentosa while the Rest of Central Region (RCR) comprises the Central Region excluding districts 9, 10 and 11, Downtown Core and Sentosa.

OCR comprises the rest of the island outside the Central Region. Most of the HDB new towns and private mass-market housing are located in the OCR.

The strong take-up of new mass-market homes in 2010-2011 could be attributed to both population growth and supply, under a climate of healthy economic fundamentals and low interest rates.

According to the Department of Statistics, Singapore’s total population grew from five million in 2009 to 5.08 million and 5.18 million in 2010 and 2011 respectively.

The proportion of households living in private apartments/ condominiums grew from 10.4 per cent in 2009 to 11.2 per cent in 2010. The proportion in 2011, although not available, ought to be higher. Moreover, Singapore’s open economy continued to attract foreigners to our shores.

URA’s figures show that the number of foreigners and permanent residents who bought new private homes increased from 2,911 in 2009 to 3,887 in 2010 and to 4,337 in 2011.

On the supply side, developers launched a total of 17,710 new homes in 2011, 6.8 per cent more than the 16,575 units launched in 2010. Of this number, 11,248 units (64 per cent) were located in OCR, 4,419 units (25 per cent) in RCR and 2,043 units (11 per cent) in the CCR.

In 2010, developers launched 7,866 units (47 per cent) in OCR, 4,731 units (29 per cent) in the RCR and 3,978 units (24 per cent) in the CCR.

Developers were able to put on the market the large volume of homes in these past two years as they built up sizeable land banks through the Government Land Sales (GLS) Programme and private collective sales when the market recovered in H2 2009.

Between H2 2009 and 2011, developers bought a total of 43 GLS sites in the OCR (excluding executive condominiums). These sites can potentially yield over 18,300 new homes.

From the pool of private sites, developers bought at least 52 sites in the OCR which can be developed into 2,600 homes or more. To date, developers have launched about 60 per cent of the total supply on GLS and private sites.

Based on caveats lodged for mass-market homes sold in 2009 to 2011, the median price of new non-landed homes rose by 35 per cent from $688 psf in 2009 to $927 psf in 2010. And in 2011, the rate increased 4 per cent to $966 psf.

2009 saw the highest proportion of buyers, or 76 per cent, forking out less than $1 million for their new homes. The proportion was 56 per cent in 2010 and 62 per cent in 2011.

Interestingly, since 2009, the median size of OCR homes has been shrinking from 115 sq m to 97 sq m in 2010 and 85 sq m in 2011. Clearly, developers have been careful to manage the rise in prices by building smaller units.

Innovative approaches used by developers in recent years have proven to be popular with homebuyers.

Firstly, the provision of a higher percentage of studios, one- and two-bedrooms have found a ready pool of buyers – singles, young professionals, retirees who are downgraders and/or empty-nesters and investors looking for rental income. Then there is the introduction of Soho-style units to facilitate a live-work-play lifestyle.

Thirdly, large-scale residential-and-mall developments which are linked to an MRT station are able to attract homebuyers even in a more cautious market. The success of Bedok Residences and Watertown testify to the popularity of this lifestyle concept.

A fourth innovative strategy by developers has been the provision of strata houses within condominium projects. Prices of these houses range from $2.5 million to $4 million each and these properties have proved especially popular among foreigners, who may buy strata landed homes that are within approved condominium developments without seeking government approval.

In 2012, we expect to see more innovations in the mass-market projects to continue to attract a steady stream of buyers. Developers face more challenging market conditions in the new year.

Under the new additional buyer’s stamp duty (ABSD) tax regime, developers participating in the H1 2012 GLS Programme will have to assess the risks involved.

Developers buying any residential sites from Dec 8, 2011, will have to pay a 10 per cent ABSD.

However, upfront remission of this can be granted to licensed housing developers provided they undertake to complete developing projects on such sites and selling all the units in these projects within five years from the date of contract or agreement to purchase the site, among other conditions.

For sites with strong attributes for example near an MRT station, developers may not need to factor in ABSD as they will be more confident of selling the entire project within five years.

However, they will be cautious in their bids so that they can manage costs. Since land costs are fixed once committed, developers will be as creative as possible to manage construction and marketing costs to sell units.

Homebuyers will remain price sensitive, especially to projects with poorer location and product attributes. Moreover, some of the demand could be satisfied by executive condominiums.

Friday, Mar 09, 2012
AsiaOne  
  
Seletar Garden sold for $96.2 million  
 
Seletar Garden, a freehold mixed-use development, has been successfully sold in a collective sale exercise for $96.188 million.

This is higher than the expected sale price of between $80 to $85 million for the site, which has an area of 73,098 square feet.

Once all the owners have reached an agreement to sell the property, the sale and purchase of the property will be completed.

The balance of the purchase price will need to be paid within three months of the receipt of the letter of acceptance.

According to media reports, apartment owners can receive between $2 million to $2.3 million while shop owners can net between $5 million to $5.4 million. There are 20 apartments and 10 shop units in the development.

More than 80 per cent of the owners had signed the agreement to sell the property.

The property received five bids in the tender, which closed on March 7.

According to The Business Times, Oxley will enter into a consortium with Unique Consortium Pte Ltd and Goldprime Investment Pte Ltd for the redevelopment of the property. It will hold a 55 per cent stake, while the other two will own 35 per cent and 10 per cent respectively.

Monday, Mar 12, 2012
The Business Times  
  
Exploring different sectors  
 
By Jason Lee and Chua Yang Liang

CAPITAL has been shifting from residential to industrial properties in the past few years, with investors increasingly viewing non-residential strata properties as an alternative to strata residential properties.

This conclusion is borne out by Jones Lang LaSalle's study of strata caveats lodged for all sectors between 2007 and 2011.

Over the past five years, strata residential transactions have dominated the number of caveats lodged, especially during the first half of 2009, when the economy began recovering from the global financial crisis.

In an effort to stem the flow of capital into the residential sector, the government introduced the first of five cooling measures in the third quarter of 2009.

Strata residential units' share of total caveats subsequently fell 6.6 percentage points from a peak of 96.6 per cent in Q2 2009 to 90 per cent in Q4 2011.

At the same time, strata industrial units' share of total caveats rose 4.6 percentage points from 2.9 per cent to 7.5 per cent.

The proportion of caveats lodged for office and retail properties also rose in tandem with the industrial sector, up 0.6 and 0.9 percentage points respectively over the period.

Property sector trends

Even before the government imposed cooling measures in 2009, the negative relationship has been strongest between the industrial and residential sectors as seen by caveats lodged from 2007 to 2011. The inverse relationship is less pronounced between residential and the retail and office sectors due to their smaller market size.

Despite this, it appears that retail and office transactions lead the way. When the proportion of retail and office property transactions rise, the proportion of industrial transactions frequently follows shortly after.

While the relationship has been strong historically, intervention by the government in the industrial sector from this year onwards might cause the association to weaken. Investors should expect some form of mean reversion, with strata office and retail properties taking up a greater proportion of transactions.

The proportion of residential transactions should remain stable if not dip given the highly uncertain outlook after the introduction of the additional buyer's stamp duty (ABSD).

For investors looking for a yield play in this environment, industrial properties offer the highest yield at a net 5.5 per cent, compared with retail at 5.3 per cent, offices at 3.8 per cent and residential properties at 3 per cent.

Industrial properties might seem an attractive asset class to invest in right now given their high yields against other investment instruments such as savings rates, but capital values are at their highest since 2008.

Investors buying in at this time might be paying a premium given the higher level of speculation in the market. Similarly, residential prices are at a peak with recent cooling measures likely to further compress prices in the high-end segment, and to a lesser extent, the mass market.

Investment market performance in 2012

Looking ahead, the industrial sector still offers the highest yield. There is a growing substitution effect between traditional office space and industrial properties for back-office operations.

However, given the impact of economic headwinds on consumption and production, prices of industrial assets could drop by around 20 per cent in 2012. But with economic recovery expected in 2013, this sector should also rebound.

The residential market, despite the policy risks, will continue to offer long term price appreciation given land scarcity and population growth, albeit at a slower rate. We expect prices of high-end residential property to soften around 15 per cent this year, before recovering by a similar magnitude in 2013.

Investing in the office sector is more challenging given the limited strata units available within the central business district (CBD).

Nonetheless, on the back of weakening global demand and lower GDP growth, capital values for office space could see some downside before recovering next year.

The retail sector has offered stable yields of between 5 and 6 per cent even through the sub-prime crisis, but it behoves lay investors to educate themselves on the market risks specific to that sector. Price movements are smaller compared with other sectors but a slight drop is expected this year, while prices may remain flat in 2013.

The eurozone crisis continues to dampen market sentiment in the region and could weigh on the domestic economy. Signs of a slowdown have emerged especially in the electronics sector. Most investors are waiting on the sidelines for greater clarity in global market conditions which are expected to stabilise by the second half of the year. Buying opportunities should reappear by then.

With government measures in place in several sectors potentially keeping a lid on prices, such market conditions should prove attractive for retail investors in the medium term.

Basic guide for investing in strata properties

Monday, Mar 12, 2012
my paper   
 
You can have this bungalow for $68m  
 
By Reico Wong

The record $39-million sale of a Sentosa Cove seafront bungalow to a buyer from India, which made headlines earlier this month, may have raised many eyebrows.

But it is far from being the most expensive prestige landed home on the Singapore property market - in terms of absolute price - at the moment.

Sources told my paper that one of the priciest residential landed properties up for grabs is a five-bedroom good-class bungalow (GCB) in Ridout Road, off Holland Road.

Its owner is asking for $68 million, or about $1,670 psf, for the property, which occupies about 40,000 sq ft of land. The large plot of land, on which two GCBs can be built, is sited on a slope and comes with its own swimming pool and tennis court.

It looks set to eclipse last year's top transaction, a 69,546 sq ft bungalow at 23 Yarwood Avenue which was sold for $59.5 million, or $856 psf.

The asking price for the Ridout property also rivals the psf price of most of the 57 GCBs sold last year, hovering slightly higher than that of the top-five highest transactions.

There are only about 2,400 GCBs in 39 gazetted areas islandwide. GCBs, by definition, span at least 15,000 sq ft of land and have to fall within designated zones to be so classified.

Also on the market now is a six-bedroom modern-contemporary-design GCB in Belmont Road - also off Holland Road - which comprises an 11,000 sq ft house and an additional 26,400 sq ft of land. It could go for about $50 million, property agent Savills said.

Still, it is areas such as Nassim Road, Chatsworth Park and Cluny Hill which remain the favoured residential addresses of the ultra-rich and famous here.

The record psf price for a GCB in mainland Singapore is held by 6 Chatsworth Road, which went for $2,081 psf in July last year.

When it comes to such high-end luxury properties, it is the sheer exclusivity of the neighbourhood and the size of the land which the property sits on that draw the high-profile and high-net-worth buyers.

Property experts specialising in such prestige homes shared that the built-up area of the house itself usually has limited influence on buyers' decision.

This is because the majority of such buyers have almost infinite cash to spare and have no qualms about re-building the house from scratch.

The value of the house itself is typically only about 25 to 30 per cent of that of the entire property, with the land being the key price determinant, said Mr Douglas Wong, director of luxury homes at property firm CBRE, who specialises in GCBs.

Savills' director of prestige homes, Mr Samuel Eyo, said: "GCBs, as a property type, are in a class by themselves. It's something which tells immediately of the owners' status, and most buyers purchase such properties for their own use."

The profile of GCB buyers tends to be highly mixed, even as most of them belong to the top 5 to 10 per cent income brackets in Singapore society.

Mr Eyo added that individuals keen on buying a high-end GCB, such as the ones in Ridout Road and Belmont Road, would probably need to have a net worth of at least $500 million.

At least nine out of 10 mainland GCB buyers are Singaporeans, since buyers of landed residential properties must be locals or at least permanent residents.

On the outlook of this particular housing segment, Mr Wong said GCB prices may ease by between 3 and 5 per cent this year.

He added that the number of GCB transactions is likely to slip by 20 to 30 per cent from the 57 deals struck last year. The value of transactions is also likely to fall from last year's $1.16 billion to between $800 million and $900 million this year.

Mr Ong Kah Seng, director of R'ST Research, said that the longer-term market outlook remains positive, given that land in Singapore is scarce and GCBs are an exclusive type of housing.

"Prices have the potential to rebound from 2013... high-end landed property prices are expected to see at least a 5 per cent rise by 2014," he said.