Singapore Property Weekly Issue 239

8/20/2019 Singapore Property Weekly Issue 239

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Issue 239Copyright © 2011-2014 www.Propwise.sg . All Rights Reserved.

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CONTENTS

p2 Protect Your Home – A Guide to Mortgage

Loan Insurance

p7 Singapore Property News This Week

p11 Resale Property Transactions

(December 2 – December 8 )

Welcome to the 239 th edition of theSingapore Property Weekly .

Hope you like it!

Mr. Propwise

FROM THE

EDITOR

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SINGAPORE PROPERTY WEEKLY Issue 239

Page | 2Back to Contents

By ClearlySurely.com (guest contributor)

Nest and eggs: kept intact by insurance

At long last. All the weekend viewings, theendless paper work, the calls, thenegotiations, it’s all over. You’ve finally boughtyour property and have a house to call your

home. Which leaves only one thing left totake care of.

Unless you can afford to pay the full value ofthe house, you will have to take a mortgageloan. Today, we'll try to shed some light on theinsurance that must be bought so that youcan protect your estate and honour the loan,no matter what may transpire.

Protect Your Home – A Guide to Mortgage Loan Insurance


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Why should it matter?

After all, the mortgage loan will simply be anet loss to your estate after you have passed

on. However, at the relatively low cost of aninsurance policy, you can preserve yourestate value for your loved ones.

When it comes to protection, you are spoiltfor choice when it comes to life insurancepolicies that cover the remaining mortgage

loan quantum. It could be term, whole life,endowment or even riders. However,Mortgage Insurance (MI) is often the go-tooption due to its relative low cost and itsfeature of decreasing coverage as time goesby.

2main choices for a home owner

In the current market, you can either obtain aHome Protection Scheme (HPS) from HDB orpurchase MI from any of the insurers. Since

80% of Singapore residents live in HDB, itmakes sense for us to start off with the HPS.

Where 80% of us call home

Home Protection Scheme

When you are buying public housing andgetting a loan from the HDB, it is compulsoryfor you to purchase HPS. If you intend topledge a life insurance policy for the loan, youmay write to HDB for HPS exemption.


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HDB may require you to assign the rights ofthe life insurance to them, if exemption isgranted.

The Insured amount and payable premiumwill vary, according to your remaining loanamount. In addition, you are also onlyrequired to cover your portion of the loan ifyou are sharing the loan burden with anyoneelse.

Premiums are payable via your CPF OAaccount. When your OA account is depleted,you can pay via cheque, AXS, internetbanking and other variable of cash. Basically,out of your pocket.

You can get an estimate of your premium viaCPF’s HPS calculator but I wouldn't bother,since they have been giving out premiumrebates from time to time. Lastly, the payment

term is 90% of the insurance term, meaningthat you only have to pay for 18 years in a 20year coverage period.

Mortgage Insurance (MI)MI is offered by most insurers and banks andis payable by cash. However, there are manyvariations of MI.

Some are similar to HPS, with a reducedpremium payment period. Some offer cash-back benefits when you do not have a claimfor certain numbers of years. There are MIs inthe market that cater to joint-ownership andothers that allow you to add insurance ridersto the cover.

Ultimately it is up to you to see which featureyou require the most. Otherwise, you maywant to choose the cheapest one.

https://www.cpf.gov.sg/eSvc/Web/Schemes/HomeProtectionSchemePremium/HomeProtectionSchemePremiumLandinghttp://www.channelnewsasia.com/news/singapore/almost-950-000-cpf/2029472.htmlhttp://www.channelnewsasia.com/news/singapore/almost-950-000-cpf/2029472.htmlhttp://www.channelnewsasia.com/news/singapore/almost-950-000-cpf/2029472.htmlhttp://www.channelnewsasia.com/news/singapore/almost-950-000-cpf/2029472.htmlhttp://www.channelnewsasia.com/news/singapore/almost-950-000-cpf/2029472.htmlhttps://www.cpf.gov.sg/eSvc/Web/Schemes/HomeProtectionSchemePremium/HomeProtectionSchemePremiumLandinghttps://www.cpf.gov.sg/eSvc/Web/Schemes/HomeProtectionSchemePremium/HomeProtectionSchemePremiumLandinghttps://www.cpf.gov.sg/eSvc/Web/Schemes/HomeProtectionSchemePremium/HomeProtectionSchemePremiumLanding


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Important points to note

For both HPS and MIs, they are essentiallyreducing term insurance. Thus, they have

some common ground:- Health declaration is required.

- Suicides are not covered in the first policyyear.

- Usually, self-inflicted injuries are not

covered in MI but for HPS, they are coveredafter the first policy year.

Other tips

HPS allows you to pay via OA account. If youare the type who thinks that CPF is not your

money , it may be better to have HPS than MI.

For some insurers, you are able to attach aWaiver of Premium rider to your policy. This isan option that you should seriously consider.Upon diagnosis of Critical Illness or Disability,

you will not be required to pay for MIpremiums anymore. It is a really good benefitwhen calamity strikes.

Lastly, HPS ceases when you re-finance yourloan or sell your house. You'll have to get MI

or a fresh new HPS. On the other hand, MIstays intact, regardless of loan re-financing orsale of property.

http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/http://mothership.sg/2015/03/nmp-chia/


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Conclusion

Having insurance coverage is important,whether you are intending the property forinvestment or residential purposes. Whetheryou are choosing HPS or MI, the informationabove should help make your decision a littleeasier.

By ClearlySurely.com , which came about to demystify Life Insurance in Singapore. It

provides users with simple, easy-to-digest information about Life Insurance that helps the decision making process. Other than learning and comparing plans, there is also a dedicated Insurance forum that facilitates discussion. Show them some love by liking

their Facebook page here .

http://www.clearlysurely.com/https://www.facebook.com/clearlysurelysghttp://propertymarketinsights.com/https://www.facebook.com/clearlysurelysghttp://www.clearlysurely.com/http://www.clearlysurely.com/http://www.clearlysurely.com/


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Singapore Property This Week


ResidentialNov private home sales up by 39% month- on-month

In November, developers sold a total of 759private residential units, up from the 548 sold

in the previous month. This translates to a39% month-on-month increase in sales and a79% year-on-year increase. Chua Yang Liangfrom JLL said that the number of units sold inNovember is the third largest this year. Chuasaid that the rise in demand may be

temporary as buying typically increases inNovember ahead of the festivities inDecember. According to Chua, the EC marketexperienced a 32% fall in sales in November,as the number of units sold by developers fell

from 275 in October to 186 units inNovember. Market experts predict that by theend of this year, 7,500 private residential unitswould have been sold. Nicholas Mak fromSLP International predicts that the annualsales volume could fall to between 6,500 and

7,000 units in the coming year.(Source: Business Times)

Private non-landed home prices fall by 3.4% since Q1

According to the Business Times, prices ofprivate non-landed homes have fallen by3.4% over the first three-quarters of the year.This drop in prices was led by the sale ofhomes in the suburban region.


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Alice Tan from Knight Frank believes thatthere could be a return of interest from bothlocal and foreign buyers. Yet, she predictsthat vacancy rates could increase up to 10%

or higher especially for non-landed homesdue to a surge in home completions next yearto 22,300 private home units. Alan Cheongfrom Savills estimates that about 7,500private non-landed homes, excludingexecutive condos will sold in the primarymarket.

(Source: Business Times)

Fresh Start Housing schemes to help public rental households

To help public rental households own theirown homes again, second-timers may receiveanother HDB concessionary loan under anew scheme that could also give them theoption of buying two-room flexi flats on

shorter leases. The Fresh Start HousingScheme may consist of a grant that aims toreduce the amount that buyers need to payfor their new flat. The Ministry of National

Development is currently gathering views onthe scheme.


Govt tapers off residential and commercial land supply in H1 2016 GLS

According to The Business Times, thegovernment will be tapering off residentialand commercial land supply in H1 2016 so asto contain the problems of an oversupply.Market experts predict that land prices willremain high as limited sites have beenreleased under the Confirmed List for the H12016 Government Land Sales (GLS)programme. According to The BusinessTimes, 4 sites have been released on the

SINGAPORE PROPERTY WEEKLY I 239


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Confirmed List while another 12 are on theReserve List. 1,560 private residential unitsand 11,000 sq m of gross floor area ofcommercial space are expected to be

developed from the Confirmed List.


Commercial

1.1 ha site at Central Boulevard released under Reserve List

A 1.1 ha white site along Central Boulevardhas been released under the Reserve List bythe Urban Redevelopment Authority (URA).The 99-year leasehold site can be built to 50storeys with a maximum gross floor area of

141,309 sq m, of which 70.77% must be putto office use. Up to 5,000 sq m of the grossfloor area may be set aside for retail use.Moray Armstrong from CBRE said that thesite is the most prime office site that has

come on the market since 2007. Ong KahSeng from R’ST Research believes the site isexpected to draw 5 to 8 bids and the top bidis expected to be between $1,100 to $1,250

psf ppr.


Number of auction properties highest in 6 years

The number of auction properties rose to 796this year — the highest in 6 years according todata by Colliers. Despite that, only 33 unitswere sold. This translates to a success rate of4.1%, which is down from an average of 6.2%over the last 5 years. The data cited byColliers excludes deals closed in privatetreaties. According to Grace Ng from Colliers,to seal better deals, most buyers prefer tonegotiate privately with sellers. Ng added thata price gap persists between what buyers are

SINGAPORE PROPERTY WEEKLY I 239


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willing to pay and what owners are willing toaccept. Market experts predict that thenumber of auction properties will continue torise as owners continue to struggle to secure

tenants.



http://www.moneymatters.sg/


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Non-Landed Residential Resale Property Transactions for the Week of Dec 2 – Dec 8

NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore Land Authority.Typically, caveats are lodged at least 2-3 weeks after a purchasersigns an OTP, hence the lagged nature of the data.

PostalDistrict

Project NameArea(sqft)

TransactedPrice ($)

Price($ psf)

Tenure

4 THE COAST AT SENTOSA COVE 2,024 3,800,000 1,878 99

5 ONE-NORTH RESIDENCES 517 845,000 1,635 995 THE VISION 904 1,200,000 1,327 995 BLUE HORIZON 1,152 1,200,000 1,042 995 BUONA VISTA GARDENS 1,464 1,320,000 902 FH5 HUNDRED TREES 3,714 2,980,000 802 9568 CITYLIGHTS 689 1,150,000 1,669 998 CITY SQUARE RESIDENCES 840 1,330,000 1 ,584 FH9 ONE OXLEY RISE 732 1,350,000 1,844 FH

10 FOUR SEASONS PARK 3,821 10,900,000 2,852 FH10 BALMORAL HILLS 1,841 3,180,000 1,728 FH10 THE TRIZON 1,550 2,600,000 1,677 FH10 THE BALMORAL SPRING 1,227 1,918,000 1,563 FH10 PINEWOOD GARDENS 2,099 2,980,000 1,420 FH10 AVALON 1,593 2,200,000 1,381 FH10 CORONATION ARCADE 1,184 1,188,000 1,003 FH11 THE SHELFORD 1,539 2,350,000 1,527 FH11 ADAM PARK CONDOMINIUM 1,141 1,638,000 1,436 FH11 MONARCHY APARTMENTS 1,163 1,203,000 1 ,035 FH12 THE RIVERINE BY THE PARK 1,776 2,850,000 1,605 FH12 THE MARQUE @ IRRAWADDY 883 1,180,000 1,337 FH12 THE BELLEFORTE 1,023 1,268,000 1,240 FH12 SUNVILLE 947 980,000 1,035 FH12 ST FRANCIS COURT 1,270 920,000 724 9913 PLATINUM EDGE 1,055 1,280,000 1,213 FH13 CLYDESWOOD 1,152 980,000 851 FH

PostalDistrict

Project NameArea(sqft)

TransactedPrice ($)

Price($ psf)

Tenure

14 WATERBANK AT DAKOTA 1,141 1,750,000 1,534 99

14 WINDY HEIGHTS 2,476 1,700,000 687 FH14 EUNOSVILLE 1,776 1,150,000 648 10215 COTE D'AZUR 1,539 1,600,000 1,039 9915 PARK COURT 958 880,000 919 FH16 BAYSHORE PARK 3,531 2,750,000 779 9919 KOVAN RESIDENCES 1,259 1,460,000 1,159 9919 KOVAN MELODY 1,292 1,370,000 1,061 9919 THE MINTON 797 700,000 879 9919 COMPASS HEIGHTS 1,249 1,068,000 855 9920 THE GARDENS AT BISHAN 1,582 1,550,000 980 9920 BISHAN PARK CONDOMINIUM 1,324 1,100,000 831 9921 THE CASCADIA 883 1,360,000 1,541 FH21 TERRENE AT BUKIT TIMAH 915 1,280,000 1,399 99921 GARDENVISTA 861 1,050,000 1,219 9921 GRAND CHATEAU 1,141 1,068,000 936 FH21 PINE GROVE 1,755 1,515,000 863 9922 LAKEHOLMZ 1,884 1,290,000 685 9923 GLENDALE PARK 1,206 1,230,000 1,020 FH23 REGENT GROVE 1,259 900,000 715 99

27 ORCHID PARK CONDOMINIUM 1,206 840,000 697 99

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Singapore Property Weekly Issue 239