Singapore Property Weekly Issue 261

Issue 261
Copyright 2011-2016 www.propwise.sg. All Rights Reserved.
CONTENTS
FROM THE
EDITOR
p2
4 Benefits of Opting For a Longer Loan Tenor
p6
Singapore Property News This Week
p10
Resale Property Transactions
Welcome to the 261st edition of the

Singapore Property Weekly.
Hope you like it!

Mr. Propwise
(May 9 May 13)
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SINGAPORE PROPERTY WEEKLY Issue 261
4 Benefits of Opting For a Longer Loan Tenor

By Jennifer Yeap (guest contributor)
Buying a home is probably the biggest
financial decision you will make in your life,
and one that binds you to a longterm financial commitment. You should thus
plan the loan repayment, loan tenure,
and other costs associated with owning a new
home before you commit to buying a home.
When considering home loan options, many
Singaporeans think a shorter loan tenure
allows the home owner to pay the loan off
faster and, therefore, reduce the amount of
interest payments. Many home owners do not
wish to be paying their debts till they are 65 or
even 75.
Back to Contents
Page | 2

How to Decide On Your Home Loan Tenure
Lets look at a scenario featuring a savvy
property owner. Assume a loan amount of
SGD1 million at an annual interest rate of 2%,
and the home owner can choose from a loan
tenure of 30 years, 20 years or 10 years.
Note: A savvy property owner would usually

refinance their mortgage every 2 to 3 years.
Back to Contents
Here are five ways this helps you as a

homeowner or investor:
Benefit #1: Longer loan tenures reduces
the monthly repayment
Many home buyers overlook the other
monthly costs associated with owning a new
home, like fire insurance, mortgage reducing
insurance, property taxes, utility bills, and
perhaps credit card payments (if they bought
furnishings for the new home on credit).
They decide to pay aggressively pay off the
loan on a shorter tenure and at much higher
monthly payments thinking this would cut the
loan payment short and minimize the interest
they have to pay. As a result, they may find
themselves in a tight monthly cash flow
situation.
Page | 3

Benefit #2: Lower monthly repayments
provide a cushion against future interest
rate increases
While banks offer two types of home loans
fixed rate home loan packages where fixed
rates usually apply for an initial period before
floating rates apply, and floating or variable
home loan packages where interests are tied
to a reference interest rate home buyers
should anticipate that spikes in interest rates
mean spikes in monthly repayments as well.
A longer loan tenure gives you a safety net
against interest spikes.
Benefit #3: Lower monthly repayments
gives you options when you refinance
Adjusting from a short loan tenure to a longer

one may not be easy, if at all possible. Most
banks implement a policy whereby borrowers
will only be allowed to take over the
Back to Contents
remaining loan tenure at the point of

refinancing (i.e. if your loan tenure is 20
years, in 3 years later you will only be eligible
for a 16 year loan regardless of your age). In
effect, this has forced you to lower your loan
tenure and increase your monthly payment.
Benefit #4: Property investors can use
longer loan tenures strategically
If you own multiple properties or plan to buy
multiple properties, a longer loan tenure
lowers your monthly repayment and could be
the determining factor in whether you meet
the Total Debt Servicing Ratio (TDSR)
requirement for your next purchase.
One final myth to dispel is that a shorter loan
tenure significantly reduces the interest you
need to pay. People often think the monthly
installments for home loans are computed in
the same way as a car loan or personal loan.
Page | 4

This is not the case.
Home loan monthly installments are based on
a loan amount amortized over the loan
tenure, and the interest is computed based on
diminishing balance each month. Car loans or
personal loans charge interest using the flat
add-on method.
sourcing for the best financing option catered

for their needs. They partner with major local
and international financial institutions and
deal with the banks on the consumers behalf.
The team at Redbrick has handled over 2,000
properties and over SGD$2 billion in
mortgages.
As the table above demonstrates, the

difference in interest payments over a loan
tenure of 20 years and 30 years is only
$1,458 over 3 years. Thats $486 per year!
Ultimately, decide on a home loan tenure
based on this question: What can you
afford? Learn how to maneuver the available
home loan payment options to best suit your
circumstances. All the best!
By guest contributor Jennifer Yeap, Associate
Director of Redbrick Mortgage Advisory,
which assists investors and homeowners in
Back to Contents
Page | 5
Singapore Property This Week

Residential
HSR fined and barred for en bloc deals for
a year
The Council for Estate Agencies (CEA) has

imposed a financial penalty of S$74,000 on
real estate agency HSR International Realtors
for two counts of acting for a client without
declaring a conflict of interest. HSR is
disallowed from undertaking any collectivesale work for one year from April 20, 2016.
HSR had intended to give four owners
incentives, using the commission from the
collective sale, to sign the collective sales
payment. These incentive payments brought
about a conflict of interest, because the
agency had placed its own interest (to collect
Back to Contents
the commission) and the interests of the four

owners over the interests of other owners.
(Source: Business Times)
Freehold site in Novena up for sale

CBRE has launched an expression of interest
(EOI) for the sale of a freehold site at 2
Derbyshire Road. Located in Novena, the
6,768 sq ft site comes with an existing fourstorey building and its current gross floor area
is about 8,742 sq ft. It is estimated to be
priced at about S$26 million. Situated near
multiple transport options, it is easily
accessible to town, and is within walking
distance from Novena MRT station. CBRE
director for investment properties Sammi Lim
Page | 6

said she expects keen interest from high net
worth individuals.
Shunfu Ville sold under reserve price to
Qingjian
Shunfu Ville was sold to developer Qingjian
Realty for S$638 million on Thursday. The
sale price is lower than the reserve price of at
least S$688 million during a relaunch in
January after a failed attempt last September.
The site could potentially yield over 1,000
units with an average size of 1,000 sq ft.
While this deal would likely rekindle interest
among other enbloc sellers, many market
watchers are still ambivalent about the effects
of such a sale on reviving the enbloc market,
given the punitive measures on unsold units
for developers.
Lower launch prices for Stars of Kovan

Cheung Kong Property Holdings, which is
developing private condominium project Stars
of Kovan, has released a lower average
pricing of S$1,417 per square foot (psf) for
the first batch of units to be released for sale
this weekend. A Cheung Kong Property
spokeswoman said it is "a Cheung Kong
tradition" to offer special discounts to the first
batch of buyers as an incentive. Prices may
be raised after the launch weekend,
depending on demand. Stars of Kovan is a
mixed development near Kovan MRT station
that comprises 390 apartment units, five
strata terrace units and 46 ground-level,
British-inspired commercial shops.

Back to Contents
Page | 7

GEM Residences developers give full
price list ahead of launch
Developers of GEM Residence have released
the full price list one week ahead of launch
and are making the commitment to stick by
that price list. The 99-year leasehold project
in Toa Payoh, jointly developed by Gamuda,
Evia Real Estate and Maxdin Pte Ltd, will go
on sale at an average S$1,426 per square
foot (psf), lower than the earlier indicative
market pricing of S$1,480 psf. Vincent Ong,
managing director of Evia Real Estate, said
the developers wanted to be transparent
about the prices early on and give buyers the
time to think through their purchases properly.
Commercial
W Hotel looking at Downtown Singapore
W Hotel Worldwide sees room for a second

W hotel in Singapore in the city centre to
complement its existing W Hotel at Sentosa.
There are 46 W Hotels worldwide, a figure
which is expected to grow to 75 by 2020. Mr.
Ingham opines that an emerging middle class
and an expanding appetite for travel from
today's consumers have helped support the
hospitality industry. The hotel industry,
however, still has to remain relevant as
consumer demands evolve. The W will be
introducing new programmes across its hotels
in the coming year, such as healthy meals,
exercise classes and beauty services.
Back to Contents
Page | 8
Non-Landed Residential Resale Property Transactions for the Week of May 9 May 13
Postal
District
2
4
4
4
4
5
5
5
5
5
8
9
9
9
9
9
9
9
9
9
9
9
10
10
Project Name
SKYSUITES@ANSON
THE INTERLACE
CARIBBEAN AT KEPPEL BAY
THE AZURE
SKYLINE RESIDENCES
VISTA PARK
FABER CREST
THE INFINITI
CARABELLE
PARC IMPERIAL
KERRISDALE
WILKIE APARTMENTS
WATERMARK ROBERTSON QUAY
NEWTON EDGE
TIARA
OUE TWIN PEAKS
OUE TWIN PEAKS
OUE TWIN PEAKS
OUE TWIN PEAKS
OUE TWIN PEAKS
OUE TWIN PEAKS
OUE TWIN PEAKS
SPANISH VILLAGE
KELLOCK LODGE
Back to Contents
Area
(sqft)
366
3,918
1,281
3,165
1,292
1,001
1,270
1,259
1,302
398
1,485
1,227
1,066
506
893
1,604
570
549
549
549
549
549
786
893
Transacted
Price ($)
818,000
3,235,300
1,755,000
4,550,000
2,380,000
840,000
1,080,000
1,240,000
1,350,000
633,000
1,700,000
1,400,000
1,733,000
908,000
1,705,000
3,700,000
1,350,000
1,300,000
1,400,000
1,412,302
1,441,125
1,469,948
930,000
1,210,000
Price
Tenure
($ psf)
2,235
99
826
99
1,370
99
1,438
99
1,843
FH
839
99
850
99
985
FH
1,037 956
1,589
FH
1,144
99
1,141
FH
1,626
FH
1,795
FH
1,908
FH
2,307
99
2,366
99
2,368
99
2,550
99
2,573
99
2,625
99
2,678
99
1,184
FH
1,354
FH
Postal
District
10
10
10
10
10
10
10
10
10
10
10
10
10
10
11
12
12
12
13
14
14
14
15
15
Project Name
THE MARBELLA
MUTIARA VIEW
PINEWOOD GARDENS
STEVENS SUITES
THE TESSARINA
RV RESIDENCES
RV RESIDENCES
ST REGIS RESIDENCES SINGAPORE
ARDMORE THREE
ARDMORE THREE
ARDMORE THREE
ARDMORE THREE
ARDMORE THREE
NASSIM PARK RESIDENCES
1 MOULMEIN RISE
REGENT RESIDENCES
TREVISTA
REGENT RESIDENCES
8@WOODLEIGH
YUEN SING MANSION
SUNFLOWER COURT
EUNOSVILLE
PARK EAST
WATER PLACE
Area
(sqft)
1,399
1,173
1,668
1,970
958
689
452
3,757
1,744
1,787
1,744
1,776
1,776
3,175
1,249
689
463
409
958
1,076
1,152
1,733
1,625
1,464
Transacted
Price ($)
1,950,000
1,680,000
2,400,000
2,890,800
1,490,000
1,465,000
997,120
8,350,000
5,315,050
5,533,925
5,428,000
6,036,530
6,077,670
11,200,000
1,750,000
910,000
750,000
725,000
1,260,000
651,888
760,000
1,200,000
1,680,000
1,585,000
Price
Tenure
($ psf)
1,394
FH
1,432
FH
1,438
FH
1,468
FH
1,555
FH
2,127
2,206
2,223
3,048
FH
3,097
FH
3,113
FH
3,399
FH
3,422
FH
3,527
FH
1,402
FH
1,321
FH
1,620
99
1,772
FH
1,315
99
606
FH
660
FH
692
102
1,034
FH
1,083
99
Page | 9

Postal
District
15
15
15
15
15
15
15
15
15
16
16
16
16
17
18
18
19
19
19
19
19
20
20
21
Project Name
FERNWOOD TOWERS
ST PATRICK'S RESIDENCES
COSTA RHU
HAIG COURT
SEA AVENUE MANSIONS
ONE AMBER
THE ESTA
THE MEYERISE
THE MEYERISE
STRATFORD COURT
CASA MERAH
CHANGI COURT
THE BAYSHORE
JLB RESIDENCES
MELVILLE PARK
SAVANNAH CONDOPARK
CHUAN PARK
THE MINTON
KOVAN MELODY
EVANIA
BARTLEY RESIDENCES
MARYMOUNT VIEW
BISHAN 8
SELANTING GREEN
Back to Contents
Area
(sqft)
1,195
2,562
990
1,464
657
1,701
1,399
872
872
1,152
1,959
969
980
958
958
1,453
1,173
980
1,302
1,076
463
893
1,163
1,389
Transacted
Price ($)
1,300,000
2,818,688
1,100,000
1,780,000
880,000
2,300,000
1,950,000
1,778,000
1,851,000
945,000
1,630,000
910,000
930,000
830,000
700,000
1,128,000
925,000
995,000
1,350,000
1,130,000
710,000
950,000
1,340,000
1,280,000
Price
Tenure
($ psf)
1,088
FH
1,100
FH
1,111
99
1,216
FH
1,340
FH
1,352
FH
1,394
FH
2,039
FH
2,123
FH
820
99
832
99
939
FH
949
99
866
946
731
99
776
99
788
99
1,016
99
1,037
99
1,050
FH
1,534
99
1,063
FH
1,153
99
922
FH
Postal
District
21
21
21
21
22
22
23
23
23
23
25
Project Name
HIGHGATE
SIGNATURE PARK
SIGNATURE PARK
SYMPHONY HEIGHTS
PARC OASIS
THE CENTRIS
NICON GARDENS
MI CASA
HILLBROOKS
MERA WOODS
THE WOODGROVE
Area
(sqft)
1,270
1,410
1,023
969
1,227
1,259
2,013
1,367
1,076
1,001
829
Transacted
Price ($)
1,200,000
1,390,000
1,055,000
1,000,000
1,040,000
1,310,000
1,207,000
1,272,000
1,038,000
971,000
670,000
Price
Tenure
($ psf)
945
FH
986
FH
1,032
FH
1,032
FH
848
99
1,040
99
600
99
930
99
964
FH
970
808
99
NOTE: This data only covers non-landed residential resale property

transactions with caveats lodged with the Singapore Land Authority.
Typically, caveats are lodged at least 2-3 weeks after a purchaser
signs an OTP, hence the lagged nature of the data.
Page | 10

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Issue 261

Copyright 2011-2016 www.propwise.sg. All Rights Reserved.

4 Benefits of Opting For a Longer Loan Tenor

Singapore Property News This Week

Resale Property Transactions

Welcome to the 261st edition of the

Hope you like it!

(May 9 May 13)

Want to get your brand, product, service or property listing out to

SINGAPORE PROPERTY WEEKLY Issue 261

4 Benefits of Opting For a Longer Loan Tenor

SINGAPORE PROPERTY WEEKLY Issue 261

Note: A savvy property owner would usually

Here are five ways this helps you as a

SINGAPORE PROPERTY WEEKLY Issue 261

Adjusting from a short loan tenure to a longer

remaining loan tenure at the point of

SINGAPORE PROPERTY WEEKLY Issue 261

sourcing for the best financing option catered

As the table above demonstrates, the

SINGAPORE PROPERTY WEEKLY Issue 261

Singapore Property This Week

The Council for Estate Agencies (CEA) has

the commission) and the interests of the four

Freehold site in Novena up for sale

SINGAPORE PROPERTY WEEKLY Issue 261

Lower launch prices for Stars of Kovan

(Source: Business Times)

SINGAPORE PROPERTY WEEKLY Issue 261

W Hotel Worldwide sees room for a second

SINGAPORE PROPERTY WEEKLY Issue 261

SINGAPORE PROPERTY WEEKLY Issue 261

NOTE: This data only covers non-landed residential resale property

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