Somerset Puteri Harbour investors frustrated with returns

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1 PROPERTY PERSONALISED MCI (P) 047/08/2018 PPS 1519/09/2012 (022805) Visit EdgeProp.sg to nd properties, research market trends and read the latest news The week of November 19, 2018 ISSUE Conservation Shophouses 63 and 65 Club Street up for sale EP6 Gains and Losses Fifth Avenue Condo unit makes $1.22 mil gain EP10 Personality The Wan way to succeed in real estate EP14 Under the Hammer Mortgagee sale at Reflections at Keppel Bay for $4.3 mil EP16 THE EDGE SINGAPORE Somerset Puteri Harbour investors frustrated with returns With the two-year guaranteed rental returns having expired in February 2017, investors in the Iskandar Malaysia project say their returns are now close to zero. Their plight highlights some of the real risks of investing overseas, even if it is just across the Causeway. See our Cover Story on Pages 8 and 9. Puteri Harbour, a waterfront residential enclave modelled after Sentosa Cove

2 EP2 EDGEPROP NOVEMBER 19, 2018 PROPERTY BRIEFS EDITORIAL EDITOR Cecilia Chow CONTRIBUTING EDITOR Pek Tiong Gee WRITERS Timothy Tay, Bong Xin Ying, Charlene Chin DIGITAL WRITER Fiona Ho COPY-EDITING DESK Elaine Lim, Evelyn Tung, Chew Ru Ju, Shanthi Murugiah PHOTO EDITOR Samuel Isaac Chua PHOTOGRAPHER Albert Chua EDITORIAL COORDINATOR Yen Tan DESIGN DESK Tan Siew Ching, Christine Ong, Monica Lim, Tun Mohd Zafi an Mohd Za abah ADVERTISING + MARKETING ADVERTISING SALES DIRECTOR, COMMERCIAL OPERATIONS Diana Lim SENIOR ACCOUNT MANAGERS Janice Zhu, James Chua ACCOUNT MANAGER Pang Kai Xin SALES STRATEGIST Han YaoGuang CIRCULATION DIRECTOR Dominic Kevin Sim MANAGER Bryan Kek EXECUTIVES Malliga Muthusamy, Ashikin Kader CORPORATE CHIEF EXECUTIVE OFFICER Bernard Tong PUBLISHER The Edge Property Pte Ltd 150 Cecil Street #13-00 Singapore Tel: (65) Fax: (65) PRINTER KHL Printing Co Pte Ltd 57 Loyang Drive Singapore Tel: (65) Fax: (65) PERMISSION AND REPRINTS Material in The Edge Property may not be reproduced in any form without the written permission of the publisher We welcome your comments and criticism: propertyeditor.sg@ bizedge.com Pseudonyms are allowed but please state your full name, address and contact number for us to verify. Waterloo Apartments sold en bloc for $131 mil Waterloo Apartments (right), located within the Bras Basah and Bugis arts precinct, has been sold en bloc for $131.1 million to Fragrance Victory, a whollyowned subsidiary of Singapore-listed Fragrance Group. Each of the 30 apartment owners at 64 Waterloo Street will receive sales proceeds of about $4.37 million once the sale is approved by the Strata Titles Board. Fragrance Group intends to redevelop the 999-year leasehold property into a hotel. The 14,369 sq ft site is zoned for hotel use, with a plot ratio of 4.2 and a maximum gross floor area (GFA) of 60,348 sq ft. It was previously zoned for residential with first storey commercial use under URA s 2014 Master Plan. We opted to submit an [Outline Planning Permission] and wait for the approval [to build a hotel], given that the residential en bloc market was reeling from the blow of the July 6 [property cooling] measures, says Christina Sim, director of capital markets at Cushman & Wakefield, which brokered the sale. There are no development charges payable, owing to the high development baseline for the site. The collective sale of the property was launched in September at a reserve price of $115 million. It was the first collective sale site launched this year that was given permission to be redeveloped into a hotel. The site has easy access to three MRT stations: Bras Basah and Bencoolen are within a four-minute walk, and Bugis is nine minutes away. HDB launches more than 7,000 flats for sale HDB has launched 7,214 flats for sale in November. The government agency announced on Nov 13 that there were 3,802 Build-To-Order (BTO) units offered across five estates Tengah, Yishun, Sengkang and Sembawang, as well as the mature township of Tampines. Under the Sale of Balance Flats (SBF) exercise, there are 3,412 flats available across various estates. The BTO project in Tengah, called Plantation Grove, marks the first HDB estate in the new township. Located on Bukit Batok Road, it is the first of five such housing districts to be developed in Tengah. It is situated near two upcoming Jurong Region Line MRT stations. The new line will open in three stages starting HDB envisioned Tengah as a Forest Town, to be designed with green, sustainable and smart features. Plantation Grove is located in the Plantation District. Autonomous vehicles will also be piloted in the district, to provide lastmile solutions to residents, HDB says. One prominent feature of the Plantation District is the Plantation Farmway, which will feature spaces that foster community gardening and farming. In Sembawang, Sengkang and Yishun, HDB will offer BTO flats at shorter waiting times, about two to three years from the point of application. It can take up to four years in typical applications. First-time families will be given higher priority, with at least 95% of the four-room and larger units set aside for them. This is an increase from the current quota of at least 85% in non-mature estates. These flats will come with C&W floor finishes, internal doors and sanitary fittings to cut the time required for renovation works, enabling homebuyers to move in sooner. Of the 3,412 SBF flats, at least 95% of the supply for three-room and larger units are set aside for first-time families. Punggol has the largest number of flats, at 494 units, followed by Toa Payoh (491 units) and Tampines (388 units). Overall, there are 1,564 units for sale in non-mature estates, compared with 1,848 units for sale in mature estates. Applications can be submitted online on the HDB InfoWEB from Nov 13 to 19. In February 2019, HDB will offer about 3,100 flats in Jurong West, Kallang Whampoa and Sengkang. Freehold commercial property in Rochor for sale Golden Wall Centre (below), a freehold commercial property in Rochor, is up for sale at a reserve price of $260 million ($2,194 psf per plot ratio), according to Edmund Tie & Co, marketing agent for the site. The corner property occupies a land area of 24,239 sq ft on Short Street. It also enjoys high visibility from Rochor Canal Road and Albert Street, ET&Co says. The property is zoned for commercial use under Master Plan URA has advised that a hotel can be built on the land, at a gross plot ratio of 4.88, the agency highlights. The existing building has a GFA of 118,488 sq ft. Rochor MRT station is a two-minute walk from the property, and Lasalle College of the Arts, a five-minute walk. The property is also near Little India; Tekka Market can be reached by foot in seven minutes and Little India MRT station in eight minutes. The tender for the site will close on Nov 23 at 3pm. Two shophouses on Pagoda Street for sale Two three-storey conservation shophouses in Chinatown are up for sale via an expression of interest (EOI) exercise. The guide price for 31 and 76 Pagoda Street (above, right) is around $32.8 million, according to marketing agent JLL. The properties can be sold individually or collectively. The freehold 31 Pagoda Street occupies a land area of 1,310 sq ft and floor area of 3,400 sq ft; the 99-year leasehold 76 Pagoda Street, which has an attic, occupies 1,372 sq ft and 3,800 sq ft respectively. Both properties are approved for F&B use. The ground floor of No 31 is leased to Dim Sum Inc by Crystal Jade, while No 76 is fully leased to Wah! Kung Fu. Both properties are in the CBD: No 76 is located right in front of the entrance of Chinatown MRT station; No 31 is about 200m from there. Notable transactions along the street include No 39, which was sold for $12.2 million ($3,700 psf) in May 2017, as well as 205 & 207 New Bridge Road (at the corner of Pagoda Street), which were sold for $20.5 million ($3,535 psf) in September Foreigners are eligible to purchase the properties, as they sit on land zoned for commercial use. No additional buyer s stamp duty or seller s stamp duty is imposed on the purchase of the properties. The EOI exercise will close on Dec 6. JLL Hmlet raises US$6.5 mil in Series-A funding Singapore-based co-living group Hmlet has raised US$6.5 million ($8.96 million) in Series-A funding, led by venture capital firm Sequoia Capital (India). The funds will be used to scale the business model throughout Asia and expand services and experiences for its members. The funding builds on a great year for Hmlet and will enable us to continue to extend and grow our community, says Hmlet CEO and co-founder Yoan Kamalski. In July, Hmlet acquired Hong Kongbased co-living competitor, we r urban, adding more rooms and members to its portfolio. Last year, the company closed a US$1.5 million seed financing led by Aurum Investments. Property investment sales in 3Q2018 slide 30% y-o-y to $8 bil: Colliers Real estate investment sales in Singapore fell 30% y-o-y to $8 billion in 3Q2018, with residential sales down as investors flocked to the commercial sectors, says Colliers International. Residential investment sales slumped 57.9% q-o-q in 3Q2018 to $3.46 billion, the lowest volume since 1Q2017. Colliers attributes the decline to the muted collective sales market, following July s property cooling measures. For residential collective sales, value plunged in 3Q2018 to $370 million emanating from three deals, compared with $3.9 billion from more than 16 transactions in the previous quarter. Collective sales accounted for 11% of the total residential investment sales in 3Q2018, down from 47% in 2Q2018. Meanwhile, government land sales contributed to the bulk of total residential investment sales in 3Q2018, at 47% of total sales, or $1.63 billion. Colliers observes that bidding turnouts for residential sites have eased noticeably after the cooling measures, which reflects developers cautious approach towards buying land. In the commercial property sector, which includes office and retail property, investment sales hit $2.2 billion in 3Q2018, rising 47.4% q-o-q. This was driven by several big-ticket transactions, says Colliers. Notably, institutional investors and real estate investment trusts were key players in all major commercial deals in the period, says Colliers. In the longer term, commercial properties should continue to remain attractive to investors, supported by steady rental recovery in the leasing office market in the next three years and demand for steady income yields in a safe haven, says Tricia Song, head of research at Colliers International. E ET&CO

3 EDGEPROP NOVEMBER 19, 2018 EP3 EN BLOC WATCH THE EDGE SINGAPORE Mandarin Gardens raises reserve price to $2.788 bil BY BONG XIN YING While other collective sale committees have been revising their prices downwards since the property cooling measures on July 6, Mandarin Gardens CSC has raised its reserve price from $2.478 billion to $2.788 billion. The land cost is reduced from $1,236 psf per plot ratio to $1,191 psf ppr. The increase in its asking price occurred after the CSC and marketing agent C&H Properties sent an enquiry to URA about Mandarin Gardens development baseline. Development baseline is the value of the development based on the approved use and intensity of the site. According to Vincent Teo, CSC chairman of Mandarin Gardens, the 1,006-unit project sits on a 99-year leasehold site of 1.07 million sq ft with a current plot ratio of We were able to calculate that the developer that built Mandarin Gardens 34 years ago had paid for a plot ratio of up to 2.5, says Teo. The higher plot ratio led to an increase in development baseline, hence a reduction in the differential premium, which enabled the reserve price to be increased about $310 million. After confirmation of the baseline, the differential premium payable is estimated at $380 million, down from the initial $1.28 billion. The lease top-up premium for a fresh 99-year lease is estimated at $412 million. So far, 63% of the owners at Mandarin Gardens have agreed to the collective sale. Another 17% is needed to reach the 80% consensus required to launch a collective sale. If the collective sale is successful, owners can expect to pocket between $1.78 million and $5.68 million each, depending on the size of their units. Teo reckons developers will be able to launch a new development on the site at a selling price of $2,200 psf. While a launch price of $2,200 psf may seem possible, the sheer size and total cost of Mandarin Gardens itself is a challenge, says Nicholas Mak, executive director of ZACD Group. Beyond the reserve price of the land, the developer has to pay the lease top-up and differential premium, which total $3.58 billion. The developer has to pay a 5% non-remittable additional buyer s stamp duty (ABSD), which means an additional $139.4 million. And this is before factoring in construction cost, Mak points out. Mandarin Gardens is located in the Marine Parade area, which means the developer will be subject to the new URA guidelines of units having an average size of 100 sq m, says Mak. At Mandarin Gardens, the developer will be able to build 2,790 new units. Whether the development is 200 units or 2,790 units, the developer is given the same five-year ABSD remission period to sell off all the units, says Mak. For developers, this is another risk. The ABSD for developers has been raised to 25%, from 15%. E The reserve price for Mandarin Gardens was raised to $2.788 billion, from $2.478 billion before SPOTLIGHT Keppel Land and Habitap launch AI-powered smart-home system Keppel Land, the property arm of Keppel Corp, and Habitap, developer of smart living systems, unveiled Singapore s first smart-home management system powered by artificial intelligence (AI) on Nov 13. It will be deployed at Keppel Land s upcoming residential development at Nassim Hill as well as other projects. The smart-home management system integrates three core functions of smart-home controls, community management and lifestyle services on a single platform. It was introduced in 2016 at Keppel Land s residential development, Corals at Keppel Bay, and has now been enhanced to incorporate AI with machine-learning capabilities. The previous system was also rolled out at other Keppel Land developments: Highline Residences, The Glades and The Garden Residences. Apart from its collaboration with Keppel Land, Habitap is also involved in residential projects such as The Clement Canopy, The Tre Ver, Amber 45 and Park Place Residence. The system is utilised in a total of 12 residential projects. The system, Habitap Handy, allows users to interact with and easily control devices within their homes, access services such as facilities booking and the visitor management system, and enjoy lifestyle services. All this is done through text and voice messaging on mobile messaging applications WhatsApp and WeChat. With AI enhancement, the new app will progressively anticipate users preferences and usage patterns, and automate features and settings. Residents will be able to interact with and control connected devices within their homes such as door locks, lighting and air-conditioning systems via the customised, integrated platform. Smart smoke detectors can also send alerts to residents mobile phones or the condo security guards in the event of an emergency. The app will also allow residents to make deposit payments or be notified when their packages arrive in their locker, which has a unique code for unlocking. These are features that homeowners would welcome, especially the younger and Ng (left) and Tang at the launch of Habitap Handy SAMUEL ISAAC CHUA/THE EDGE SINGAPORE sophisticated ones, says Ng Ooi Hooi, president of Keppel Land (Singapore). To us, it is necessary because, going forward, people expect more [of such] features to help them manage their lifestyle. Franklin Tang, CEO and founder of Habitap, says: We constantly seek to innovate and improve Habitap. For example, the firm is incorporating technologies such as facial recognition with AI to go beyond just facilitating entry to buildings, to integrating security, safety and people-locating features. E

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6 EP6 EDGEPROP NOVEMBER 19, 2018 CONSERVATION SHOPHOUSES 63 and 65 Club Street up for sale BY CECILIA CHOW For the past six months, Jerry Tan, founder and managing director of JTResi boutique agency, which markets luxury residential property, had been mulling over selling his shophouse at 65 Club Street. It was not an easy decision to make, and the timing has not seemed right until now. It s about pride of ownership, says Tan. We didn t even want to rent out our shophouse to anyone. Tan had purchased the shophouse at 65 Club Street in May 2006 for $2.8 million. At the launch of Kelvin Tan s book, On a Little Hill in China town: Singapore s Ann Siang Hill, hosted by JTResi on Oct 18, he related the anecdote of his purchase: I had returned from a business trip in Jakarta, and Eckardt Caius [co-founder and executive director of JTResi] had placed a newspaper ad with a picture of a beautiful shophouse on my table. The minute I saw it, I said we had to see it that afternoon. But I said I wouldn t want to spend more than $1 million. Caius said, Don t bother. It s $3 million. Still, Tan arranged to view the shophouse on Club Street that afternoon. I stood here, and it was dark and dingy then, he recounts. The shophouse had seven tenants regional lawyers on the first level who were using it as a home office, as they lived there too; a bridal studio on the second level; and other small offices. But it spoke to me, and we bought the shophouse in 10 minutes. JTResi s Tan spent another $1.2 million refurbishing it before moving in in August The shophouse was always intended to be more than just an office: It was a sales gallery and a place to entertain clients and friends as well. We deal with high-end real estate, and we wanted a place where we could come and enjoy art, music, food and drinks, he says. This office was designed on the basis of always entertaining. Of course, there is an office area where serious work is going on. Club deal Shortly after deciding on purchasing the shophouse at 65 Club Street, Tan was having drinks with one of his clients and he told her about his purchase. This was before he had exercised the option to purchase. The client immediately insisted that Tan show her the shophouse that very evening. That evening, we were standing out there on the street, and she was walking up and down in her stilettos, and studying the area, says Tan. Then she rummaged through her handbag, took out her cheque book, wrote out and handed me a cheque for $500,000. Her intention was to get Tan to assign the option for 65 Club Street to her. When he refused, she told him to hold on to the cheque, as she wanted him to acquire the neighbouring shophouse on her behalf. Thus, shortly after exercising the option to 64 Club Street was sold in August for $21.8 million, or $3,880 psf, based on an estimated built-up area of 5,618 sq ft 63 and 65 Club Street are on the market for sale by private treaty SAMUEL ISAAC CHUA/THE EDGE SINGAPORE purchase 65 Club Street for JTResi, Tan and fellow executive director and co-founder of JTResi, Jason Tan, knocked on the door of the neighbouring unit at 63 Club Street. At the time, it was owned and occupied by architectural firm Raymond Woo & Associates. Woo agreed to sell the shophouse for $3.1 million, but it came with a leaseback agreement, as he wanted to continue occupying the space for a few years. For more than a decade now, JTResi has also managed the unit at 63 Club Street on the client s behalf. Now that Tan is putting his property up for sale, his client the owner of the property at 63 Club Street has decided to follow suit. Thus, JT Resi is now the marketing agent for both 63 and 65 Club Street, which are available for sale either separately or together. The land area of 65 Club Street is 2,083 sq ft, with a 999-year lease tenure. The three-storey shophouse has a built-up area of 5,640 sq ft. Meanwhile, the neighbouring unit sits on a slightly smaller land area of 1,938 sq ft, with a built-up area of about 4,900 sq ft. While 65 Club Street has been owner-occupied by JTResi these past 12 years, the neighbouring unit has always been tenanted. After Raymond Woo & Associates moved out, lifestyle store Vanilla Home moved in to occupy the 1,600 sq ft first level three years ago. There are two other tenants on the upper floors. The gross monthly rental rate for the three tenants is said to be $24,965. Quiet end of Club Street 65 Club Street is located in a cul-de-sac. As such, it is quiet, unlike the main Club Street, which is teeming with bars and restaurants. Across the road from JTResi is 76 Club Street, a millionaires club today. It was the first club in the Ann Siang Hill precinct, and it gave Club Street its name. It was originally known as Chwee Lan Tong Club, established by Tan Quee Lan, a prominent merchant and landowner. Its name was changed to the Chinese Weekly Entertainment Club in Originally located on Ann Siang Hill, the club purchased its own premises at the current location at the end of Club Street, to which it moved in in June 1898, according to the book by Kelvin Tan. 21 Boon Tat Street was sold for $16.5 million, or a record $4,259 psf. The first level is occupied by Michelin-star restaurant Cheek by Jowl. PICTURES: JLL Adjacent to the Chinese Weekly Entertainment Club is the Goh Loo Club, founded more than a century ago by Lim Boon Keng, a writer and businessman after whom a road and an MRT station are named, as well as businessman and philanthropist Lee Kong Chian, who is behind the Lee Foundation, Lee Rubber, OCBC Bank and Great Eastern Life Insurance as well as Sime Darby. Adjacent to the Goh Loo Club is the Tham Si Thung She (Tham Association) at 68 Club Street. The National Union of Gold and Silver Workers is located at 60 Club Street; the Singapore Sugar Traders Association is at 59 Club Street; and the Singapore General Rice Importers Association at 59B Club Street. Many of the other clan associations, clubs and guilds established in the 1920s and 1930s on Ann Siang Hill and Club Street no longer exist. Many of these shophouses have either changed hands or been converted into boutique hotels and offices, with retail and F&B on the first level. JTResi s Tan believes the shophouses at 63 and 65 Club Street are ideal for family offices. He points to the shophouse across the road at 64 Club Street, which was sold in August for $21.8 million, or $3,880 psf, based on an estimated built-up area of 5,618 sq ft. The buyer is said to be the family office of the Chan family of Hong Kong s Wincome Group. The deal was brokered by Clemence Lee, JLL associate director of capital markets. Pick-up in CBD shophouse transactions In September, a shophouse at 21 Boon Tat Street was sold for $16.5 million, according to a caveat lodged. The shophouse boasts Michelin-star restaurant Cheek by Jowl as a tenant. The property has a 999-year lease and built-up area of 3,874 sq ft, and sits on a land area of 1,759 sq ft. The price translates into $4,259 psf, a record for a shophouse. The sale was brokered by JLL s Lee. There was a pickup in the number of shophouse transactions in the CBD in October. In the Telok Ayer Conservation Area, 10 Stanley Street was sold for $12.5 million to 8M Real Estate, a private property investment and asset management group founded by its managing director Ashish Manchharam. The deal was brokered by Krystal Khor of Mondania, a specialist in marketing conservation property. Meanwhile, 22 Ann Siang Road fetched $15 million, according to a caveat lodged in early October. The price translates into $3,488 psf, based on a built-up area of 4,300 sq ft. The 999-year leasehold property sits on a land area of 1,561 sq ft. The deal was said to be brokered by Loyalle Chin, associate group director of PropNex Realty. Two adjacent shophouses at 40 and 41 Duxton Hill were sold last month for $24.8 million. The shophouses have a combined land area of 2,539 sq ft and a built-up area of 8,900 sq ft spanning four levels and an attic. Despite their 99-year lease, they achieved a transacted price of $2,787 psf. The buyer of the pair of shophouses is reportedly Alan Choe, HDB s first architect-planner and founder of URA. A stretch of four shophouses at 39 to 42 Duxton Road have also been put on the market for sale by their owners. They have a combined floor area of 8,100 sq ft and a 99-year lease. The four shophouses are located across from Six Senses Duxton, a boutique hotel owned by property developer and hotelier Satinder Garcha of Garcha Hotels. The asking price of the four shophouses at 39 to 42 Duxton Road is said to be in the $2,700-to-$2,800 psf range. They are marketed by Mondania. Given the string of transactions at lofty prices in recent months, JTResi s Tan believes it is an ideal time to roll out 63 and 65 Club Street, which are being offered for sale by private treaty. E

7 EDGEPROP NOVEMBER 19, 2018 EP7 BROUGHT TO YOU BY SINGAPORE LAND LTD PICTURES: SAMUEL ISAAC CHUA/THE EDGE SINGAPORE Mon Jervois combines luxury of space with value opportunity Luxurious penthouse at Mon Jervois designed by celebrity designer Peter Tay THE CORE CENTRAL REGION (CCR) accounted for less than 1% of total units launched in the non-landed residential market in 3Q2018. The dearth of new supply caused buyers to seek opportunities in the secondary market, which accounted for 91% of non-landed transactions during the quarter, according to JLL research. As a result, the CCR price index rose 1.3% in 3Q2018. It reflects the strong demand for choice private residential properties in prime locations as buyers become more discerning, with the cooling measures in place, says Tan Tee Khoon, executive director and head of residential project marketing at Knight Frank Singapore. PRIME ADDRESS The strong demand bodes well for luxury condo projects such as Singapore Land s (SingLand) Mon Jervois, a 109-unit boutique development in prime District 10. It is tucked in an exclusive residential enclave of low-rise condominiums in the Good Class Bungalow neighbourhood of Jervois, Bishopsgate and Chatsworth. Orchard Road, the CBD, Botanic Gardens as well as Dempsey Cluster are just an eight-minute drive away. Lifestyle hubs such as Tiong Bahru, Robertson Quay, Holland Village and Dempsey Hill are within easy access. Reputable schools in the area include River Valley Primary School, Alexandra Primary School, Gan Eng Seng Primary School and Crescent Girls School. The project has a view of Alexandra Canal Linear Park, which is linked to Tiong Bahru Park, Henderson Park, Mount Faber and Hort Park. Designed by Singapore s award-winning architectural firm, Ong & Ong, the development comprises five low-rise blocks sitting on a sizeable land area of 96,424 sq ft in the exclusive Jervois residential neighbourhood. Mon Jervois features manicured landscaped gardens including a Secret Garden, Meditation Deck, Golfer s Green, fitness gym fronting the lap pool, party pavilions and other facilities. LIMITED-EDITION PENTHOUSES The project is substantially sold. Limited-edition penthouses designed by famous designers such as Peter Tay Studio and ip:li Architects are now available for preview. The penthouses range from 1,475 sq ft, three-bedroom duplexes to luxuriously spaced 3,003 sq ft, four-bedroom duplexes with private lift and family room. With net prices hovering between $1,800 and $2,000 psf, the limited-edition penthouses come with luxury finishes such as marble flooring and full marble bathrooms, top-end Miele kitchen appliances, Hansgrohe bathroom fittings, Laufen sanitaryware and high-end wardrobe systems. Located at the top floor of the five-storey development, the duplex penthouses enjoy vantage view of the surrounding low-rise neighbourhood and beyond. Within Mon Jervois is also a block of 12 twobedroom-plus-study-loft units. Owing to popular demand, only four are still available for sale. They measure 1,539 to 1,668 sq ft, with ceiling height of up to 6.7m. ATTRACTIVE BUY Market statistics in the broad market may point to absolute prices being the key driver for sales today, says Desmond Sim, CBRE The 109-unit Mon Jervois is designed by Ong & Ong Architects head of research for Singapore and Southeast Asia. Nevertheless, there s still demand for large units, especially those of perceived value and projects located in favourable locations. At prices upwards of $1,800 psf with a prime District 10 address in a quiet GCB area, Mon Jervois is an attractive buy, especially when land prices in prime Districts 9 and 10 have already surpassed that level, adds Sim. The penthouses at Mon Jervois will appeal to high net worth individuals, who equate size with luxury in a prime district. The fact that the property is already completed is also a bonus. What you see is what you get, says Sim. You can see the views you re getting and the quality of the unit you will be moving into. Some of the en bloc beneficiaries in projects elsewhere in the prime districts recently received their sale proceeds. They include owners of Crystal Tower in Bukit Timah and Olina Lodge on Holland Hill. These en bloc millionaires will be on the lookout for replacement homes, says Bruce Lye, managing partner of marketing agency SRI. The fact that Mon Jervois is brand-new, and the penthouses as well as loft units come with high ceiling, will appeal to them, says Lye. They present attractive replacement homes and an upgrade from the older properties for these en bloc beneficiaries, especially those who intend to move into a new home immediately. For buyers looking for value in the prime districts or want to upgrade to a new property, there is no better opportunity on the market today than Mon Jervois. For enquries: Web: View of the living and dining area from the second level of a loft unit Unobstructed view of the Jervois GCB area from one of the penthouses

8 EP8 EDGEPROP NOVEMBER 19, 2018 COVER STORY PICTURES: ALPHA MARKETING Somerset Puteri Harbour investors frustrated with returns With the two-year guaranteed rental returns having expired in February 2017, investors in the Iskandar Malaysia project say their returns are now close to zero. Their plight highlights some of the real risks of investing overseas, even if it is just across the Causeway. BY CECILIA CHOW Singaporean Victor Ng remembers the first time he cast his eyes on a potential investment in Iskandar Malaysia: It was Somerset Puteri Harbour in Iskandar Puteri (formerly known as Nusajaya) at a weekend preview in early February It was not an impulse purchase, he says. Before the purchase, he had visited the site and other projects launched in the area. I felt that Puteri Harbour was an up-andcoming area, Ng tells EdgeProp Singapore in a recent interview. About 120 out of 132 units offered for sale under a sale-and-leaseback scheme were snapped up at roadshows in Singapore and Kuala Lumpur over a fortnight, according to a report by The Edge Financial Daily in Feb 24, The rest were purchased after that. A majority of the buyers (about 80%) were said to be Singaporeans. Somerset Puteri Harbour is a 204-unit serviced apartment project located on the waterfront at Puteri Harbour in Iskandar Malaysia. Units ranged from studios, and one- to three-bedroom apartments measuring 762 to 1,496 sq ft, to penthouses from 3,650 sq ft. Prices of units sold ranged from RM720,000 to RM4.5 million, or an average of RM900 psf. Upon completion, these apartments would be managed by The Ascott the serviced residence arm of Singapore-listed CapitaLand for the first 10 years. Under the leaseback agreement, investors were offered a guaranteed rental return (GRR) of 5% for the first two years after completion. Ng paid RM982,669 for a 1,178 sq ft, two-bedroom serviced apartment at Somerset Puteri Harbour, which he purchased off-plan. Another investor who purchased a unit at launch was Singaporean Peter Lim. I was attracted by the Somerset brand and the reputation of the developer, UMLand [United Malayan Land], he adds. I also liked the harbourfront locale, which is very niche, and very scarce. Ascott has a third-party management contract with UMLand to manage the operations of Somerset Puteri Harbour. For third-party management contracts, our scope is confined to managing the operations of the properties on behalf of the property developers, says an Ascott spokesperson in an response. Other than the 132 units offered for sale and leaseback, another 72 units facing the marina at Somerset Puteri Harbour were sold as condominium units without a leaseback agreement. The project was marketed by Nusajaya Consolidated, a 50:50 joint venture between UMLand and UEM Sunrise. Clear Dynamic is a ALBERT CHUA/THE EDGE SINGAPORE Ng: There were three big chunks of documents. Obviously, we didn t have time to run through the entire three sets of documentation there and then. It caught us by surprise and we didn t want to risk losing our option money. subsidiary of Nusajaya Consolidated, and was set up for the purpose of the leaseback administration. Many of the buyers of Somerset Puteri Harbour purchased their units from marketing agent Norman Sia of NS Global, which has since closed its Singapore office. Back then, many of the investors of Somerset Puteri Harbour went to NS Global s office in Singapore to sign the sale-and-purchase agreement. It was only when they did so that they were given the leaseback agreement to sign as well. There were three big chunks of documents, says Ng. Obviously, we didn t have time to run through the entire three sets of documentation there and then. It caught us by surprise and we didn t want to risk losing our option money. Puteri Harbour full of promise then In hindsight, 2012/13 was the peak of the property market in Iskandar Malaysia. Puteri Harbour was perceived to hold the most promise: Positioned as an integrated waterfront and marina development by master developer UEM Sunrise, it spans 688 acres (275ha) in the 24,000 Nusajaya precinct, which has since been renamed Iskandar Puteri. Puteri Harbour appealed to many Singaporean investors and developers then, as it was a waterfront residential enclave that has many of the attributes of Sentosa Cove, but at a fraction of the land and property prices. The properties there are freehold, unlike those in Sentosa Cove, which are 99-year leasehold. The location of Somerset Puteri Harbour is ideal, as it is just a stone s throw away from Legoland and an indoor themepark featuring popular children s cartoon characters such as Hello Kitty, Thomas and Friends, Barney and Bob the Builder. It is within a 20-minute drive of the Second Link and a 25-minute drive of Johor s Senai International Airport. Puteri Harbour was meant to be an area of intense development and strong growth, says Dennis Ng, group managing director of UMLand. We believe the Puteri Harbour area will continue to improve as more residents move in. With the availability of Grade-A office space and other facilities in Medini, which is just a 10-minute drive away, more businesses will also move there. Banking on RTS Link From 2011 to 2013, there was a lot of excitement about greater connectivity between Singapore and Malaysia. For instance, the Singapore-Johor Baru Rapid Transit System (RTS Link) was announced in 2010 and, in January this year, Singapore Prime Minister Lee Hsien Loong witnessed the signing of a legally binding bilateral agreement for the RTS Link, together with then Malaysian Prime Minister Najib Razak at the Istana. The Singapore terminus for the RTS Link is to be located at Woodlands North station on the Thomson-East Coast Line, while the Johor Baru terminus will be at Bukit Chagar near JB Sentral, connecting with the Keretapi Tanah Melayu (KTM) station. The RTS Link is expected to ease congestion at the Causeway by 15%. To me, the biggest change is the RTS Link, which will reduce congestion in the two existing areas the Causeway and Second Link, says UMLand s Ng. The dream of living in Iskandar and working in Singapore is viable again. There are a lot of residents who moved in because of the schools, but you still need businesses and supporting facilities to come in before more people move in. In 2013, the buzz was the high-speed rail (HSR) between Singapore and Kuala Lumpur, which would offer a 90-minute travelling time. The designated Singapore terminus for the HSR was in Jurong East. Another proposal to ease traffic congestion was a ferry ser-

9 EDGEPROP NOVEMBER 19, 2018 EP9 COVER STORY vice from Singapore s HarbourFront Centre to Puteri Harbour, where there are already customs checkpoints in place. However, the HSR has since been deferred and the ferry service, a moot point. Ups and downs Somerset Puteri Harbour rode the ups and downs in Iskandar Malaysia. The project was completed in November 2014, more than a year after the scheduled completion in The GRR commenced in March Typically, hotels take two to three years for their operations to stabilise. The GRR was designed to help smooth out the cash flow during the initial years, adds UMLand s Ng. During the two-year GRR period, the 5% returns were promptly paid. For a typical unit, it was RM7,552 bimonthly, or RM3,776 a month. The last payment of RM7,552 was received in January 2017 for December and January. When the GRR period ended in February 2017, the investors did not hear from Clear Dynamic or UM Land. For the first six months after the GRR, they just stopped paying us, but they didn t tell us why, says Simon Poh, one of the investors who spoke to EdgeProp Singapore. They just didn t communicate with us. We were left in the cold as to what was happening until a few of us contacted them and arranged for a meeting to find out what was going on. Poh and a business partner had made a joint purchase of a one-bedroom unit at Somerset Puteri Harbour for about RM906,000. It s been one year and nine months since the end of the GRR period, he says. A summary of bimonthly net rent paid to an owner over the 18-month period from March/ April 2017 to July/August 2018 came to a total of RM8, received. Based on the purchase price of the unit of RM982,669, the annualised return over one year is 0.57%. On months when the rents are negative, the losses accrued are deferred to the future when profits are made. Investors lead the charge Investors of Somerset Puteri Harbour who purchased units under the leaseback scheme decided to call for a meeting with representatives of UMLand, Clear Dynamic and Ascott to discuss how the returns post-grr could be improved. The first meeting was held on July 19, A second meeting was held on Oct 24, In late December 2017, the owners set up the Leaseback Owners Committee (LOC) to liaise with representatives of UMLand and Clear Dynamic. Since February this year, a bimonthly meeting has been held at Somerset Puteri Harbour with representatives of UMLand and Clear Dynamic, along with an Ascott representative. I requested for that, says one Mr Chan, an investor in Somerset Puteri Harbour. Fortunately, the managing director of UMLand, Daniel Chan, is a forthcoming and reasonable man. At these bimonthly meetings, at least there is communication. There is usually a group of four or five of us who actively participate in these meetings. According to an dated Oct 29 from Clear Dynamic to investors, Somerset Puteri Harbour had gone through a bad time in 1Q2018 and 2Q2018. As gross operating profits were low, not all the owners expenses could be covered, resulting in no distribution to investors. Cumulative losses after taking into consideration owners expenses amounted to RM603, The losses would then be deducted progressively at RM100,000 a month from October 2018 to June 2019, where the final deduction of RM103, would be made. Eco-system still being fleshed out We are trying our best, and we have gone to the extent of subsidising the returns for now to make it easier for the investors, says UMLand s Ng. Even the operating expense is advanced by us, and we won t claim it back until times are better. We know the property could be performing better if external factors improve. Puteri Harbour is a beautifully master planned area that is still in the process of being fleshed out. For instance, a Khazanah-linked company owns three blocks of retail, shopping arcade and F&B space at Somerset Puteri Harbour. It has remained hoarded up. We have been trying for years to get them to open, says Ng. Nearby, Pan Pacific Serviced Suites at the Puteri Cove mixed-use development is scheduled to open in 2Q2019. It will have 205 studios and one- and two-bedroom serviced suites in the third tower of Puteri Cove, developed jointly by Pacific Star Development and DB2. The Puteri Cove project also comprises two other 32-storey residential towers with a total of 658 units; four low-rise SOHO blocks; and a lifestyle retail centre fronting the marina. The two residential towers have already obtained Certificate of Completion and Compliance, and is about 80% sold. The retail centre at Puteri Cove is expected to open in 2Q2019, with the Pasar gourmet market as an anchor tenant. The One 15 marina operator at Sentosa Cove, SUTL Group, will be opening its sales gallery for its marina operations in Puteri Harbour: the private marina in Puteri Cove and a third marina for super yachts. Some projects in Puteri Harbour have been delayed, says Edmund Tie & Co (ET&Co) CEO Ong Choon Fah. The postponement of the HSR project has indirectly affected some of the projects located near the proposed station in Iskandar Puteri. For now, the lack of clearer policies from the new government has left uncertainties in mega developments such as Forest City. However, properties that are located in mature areas or near public transport still offer good investment in the long term. Ong adds that Puteri Harbour has a great waterfront lifestyle offering for residents, complete with hotels and indoor theme parks. It is also an ideal place for families with children. However, more needs to be done public spaces to encourage place-making to generate higher visitor traffic and more business for the precinct. Similar to the Business Improvement District in Singapore, a special body can be set up where owners, developers and other stakeholders work together to increase the vibrancy in Puteri Harbour. Competitive hospitality environment From 2015 to 2017, the number of hotel rooms in Johor Baru grew 15% to 12,300. Most of the existing hotel supply is in the mid-scale segment with 66% share, says HVS in a report on July 3. Based on data published by Tourism Malaysia, hotels in Johor had an average occupancy rate of 57% from January to March. Meanwhile, the occupancy rate for five-star hotels was 40% from April to June; 45% for fourstar hotels; and 68% for three-star hotels, according to ET&Co. Some hotels do enjoy high occupancy rates during weekends, as Singaporeans always fancy a weekend getaway across the Causeway, says Ong. The occupancy rate is also contributed by locals who visit family or friends in Singapore but prefer to stay at hotels in Johor because of the cheaper room rates. For example, Amari Johor Bahru and Suasana Suites Johor Bahru enjoy good occupancy rates because they are easily accessible via public transport and surrounded by shopping malls and F&B outlets, observes Ong. Nevertheless, with the increasing competition from Airbnb catering to large groups of family or friends, it could affect both hotel room and occupancy rates, concedes Ong. For a group of six that would like to stay in Johor Baru city centre over the weekend, Airbnb offers a list of apartments or condominiums in the range of RM200 to RM500 a night, while CONTINUES ON PAGE 15 Somerset Puteri Harbour has 204 serviced apartments Ng viewing his Puteri Harbour investment The marina at Puteri Harbour VICTOR NG VICTOR NG

10 EP10 EDGEPROP NOVEMBER 19, 2018 GAINS AND LOSSES Fifth Avenue Condo unit rakes in $1.22 mil gain BY CHARLENE CHIN The seller of a unit at Fifth Avenue Condominium, off Bukit Timah Road in District 10, made the top gain of $1.22 million over the week of Oct 30 to Nov 6. The 1,615 sq ft, three-bedroom unit on the third floor was bought for $2.02 million ($1,247 psf) in April 1996, and sold for $3.23 million ($2,000 psf) on Oct 30, The seller reaped a 60% profit, or an annualised profit of 2% over 22.5 years. The highest profit of all time reaped from resales at Fifth Avenue Condominium was for a similar-sized, three-bedroom unit on the first floor. The seller raked in a 110% profit of $1.36 million, after selling the unit at $2.6 million ($1,610 psf) in March As the property was bought in April 1999 for $1.24 million ($765 psf), this translates into an annualised profit of 4% over 18 years. Fifth Avenue Condominium is a freehold development comprising 70 units. It is four minutes away by foot from Sixth Avenue MRT station, along the Downtown line. The second top gain made over the week in review an 86% profit of $1.1 million was at The Morningside, off River Valley Road in District 9. The 1,270 sq ft, three-bedroom unit on the 15th floor was purchased for $1.28 million ($1,008 psf) in February 1996, and sold for $2.38 million ($1,874 psf) on Nov 2, This means the seller made an annualised profit of 3% over 22.8 years. This transaction marks the second time the unit has changed hands, according to caveats lodged with URA. The previous owner reaped a 2% profit of $30,000, or an annualised profit of 4% over 0.7 year. The unit was bought for $1.25 million ($984 psf) in June Notably, the highest profit made for resales at The Morningside was for a 2,411 sq ft, four-bedroom unit on the 25th floor. The seller raked in a 135% profit of $2.07 million, after selling the unit at $3.6 million ($1,493 psf) in May As the property was purchased in February 1999 for $1.53 million ($635 psf), this translates into an annualised profit of 11% over 8.2 years. The Morningside, completed in 1992, is a 10-minute walk from the upcoming Great World MRT station on the Thomson-East Coast line, slated for completion in The 79-unit condo is 16 minutes by foot to Zion Riverside Food Centre. A unit sold at Kellett Court, off Dunearn Road in District 11, made the third most profitable transaction during the week in review, raking in a 137% profit of $1.08 million for the seller. The unit was bought for $790,000 ($597 psf) in September 2004, and sold for $1.87 million ($1,412 psf) on Nov 2. The seller therefore made an annualised profit of 6% over 14.1 years. Kellett Court, comprising 43 units, is a 12-minute walk from Tan Kah Kee MRT station. Completed in 1997, the development is seven minutes by foot from Adam Road Food Centre. On the other hand, the greatest loss incurred during the week in review was from the resale of a 937 sq ft unit at Topaz, on Topaz Road in District 12. Having sold the property for $850,000 (908 psf) on Nov 2, the seller sustained a 21% loss of $226,938. The unit was purchased in August 2010 for $1.08 million ($1,150 psf). Over a holding period of 8.2 years, this translates into an annualised loss of 3%. The freehold condo is a 10-minute walk from Potong Pasir MRT station. E A resale unit at Fifth Avenue Condominium made a 60% profit when it was sold on Oct 30 PICTURES: SAMUEL ISAAC CHUA/THE EDGE SINGAPORE A seller of a unit at Topaz sustained a loss of $226,938 after it was sold on Nov 2 URA, EDGEPROP Top 10 gains and losses from Oct 30 to Nov 6 Most profitable deals PROJECT DISTRICT AREA (SQ FT) SOLD ON (2018) SALE PRICE ($ PSF) BOUGHT ON PURCHASE PRICE ($ PSF) PROFIT ($) PROFIT (%) ANNUALISED PROFIT (%) HOLDING PERIOD (YEARS) 1 Fifth Avenue Condominium 10 1,615 Oct 30 2,000 April 25, ,247 1,216, The Morningside 9 1,270 Nov 2 1,874 Feb 1, ,008 1,100, Kellett Court 11 1,324 Nov 2 1,412 Sept 21, ,080, Butterworth ,313 Oct 30 1,432 March 6, , The Centris 22 1,442 Nov 2 1,130 Oct 25, , Visioncrest 9 1,195 Nov 1 2,009 Jan 15, , , The Calrose 26 1,475 Oct 30 1,382 Aug 19, , Leonie Hill Residences 9 1,141 Oct 31 2,191 April 26, , , Maple Woods 21 1,324 Nov 1 1,517 Oct 3, , Bishan ,163 Nov 1 1,239 April 7, , Non-profitable deals PROJECT DISTRICT AREA (SQ FT) SOLD ON (2018) SALE PRICE ($ PSF) BOUGHT ON PURCHASE PRICE ($ PSF) LOSS ($) LOSS (%) ANNUALISED LOSS (%) HOLDING PERIOD (YEARS) 1 Topaz Nov Aug 30, , , The Clift Nov 1 1,882 Nov 4, , , The Ladyhill 10 3,283 Oct 31 1,919 March 19, , , Caribbean At Keppel Bay 4 1,636 Nov 1 1,533 Dec 14, , , NA 14 2,142 Nov Nov 19, , Leedon Residence 10 1,044 Nov 5 2,442 Aug 6, ,533 94, The Verve Nov 2 1,416 April 17, ,541 55, Orchid Park Condominium Oct May 3, , Regentville Oct June 27, , Rosewood Suites 25 1,259 Oct July 24, , Note: Computed based on URA caveat data as at Nov 13 for private non-landed houses transacted between Oct 30 and Nov 6. The profit-and-loss computation excludes transaction costs such as stamp duties.

11 EDGEPROP NOVEMBER 19, 2018 EP11

12 EP12 EDGEPROP NOVEMBER 19, 2018 DONE DEALS 3 Cuscaden launched at average of $3,577 psf BY BONG XIN YING At the launch weekend of boutique luxury condo 3 Cuscaden on Nov 3 and 4, 15 units were sold at an average price of $3,577 psf, according to caveats lodged over that period. The 96- unit, freehold development is by a Sustained Land-led consortium. Fourteen of the 15 units sold were one- and two-bedroom units. The one-bedroom units sold ranged from 452 to 462 sq ft and were priced from $1.53 million to $1.77 million; two-bedroom units of 764 sq ft ranged from $2.6 million to $2.9 million. The sole three-bedroom unit sold at the launch weekend was a 1,281 sq ft unit that fetched $4.68 million ($3,650 psf). The response to the first weekend of launch for 3 Cuscaden is very encouraging, says Leong Boon Hoe, chief operating officer of List Sotheby s International Realty, Singapore. The fact that the pricing of 3 Cuscaden is highest among the new luxury projects launched despite being launched after cooling measures were introduced could be attributed to its relatively more prestigious address. Over at Oxley Holdings Kent Ridge Hill Residences on South Buona Vista Road, 116 units out of the 250 released were taken up during its official launch on the weekend of Nov 10 and 11. Units were sold at an average of $1,700 psf. Of the 116 units, 80% comprised a mix of one-bedroom, one-bedroom-plus-study and two-bedroom units. The remaining 20% were three-bedroom units, penthouses and strata houses. According to Oxley, 80% of the buyers were Singaporeans and the rest were permanent residents and foreigners. In the same weekend, The Woodleigh Residences sold 31 of the 50 released units, at an average price of more than $2,000 psf. The 667-unit The Woodleigh Residences in District 13 is developed by Kajima-SPH, a joint venture between Japanese developer Kajima Development and Singapore Press Holdings. The Woodleigh Residences sales gallery will close from Nov 19, in preparation for the official launch in early E 3 CUSCADEN OFFICIAL WEBSITE PROPERTY AGENT At least 116 out of 250 units released at Kent Ridge Hill Residences launch weekend were taken up 3 Cuscaden saw 15 units sold over the first weekend of launch Residential transactions with contracts dated Oct 30 to Nov 6 LOCALITIES DISTRICTS Singapore by postal district City & Southwest 1 to 8 Orchard/Tanglin/Holland 9 and 10 Newton/Bukit Timah/Clementi 11 and 21 Balestier/MacPherson/Geylang 12 to 14 East Coast 15 and 16 Changi/Pasir Ris 17 and 18 Serangoon/Thomson 19 and 20 West 22 to 24 North 25 to 28 LAND AREA/ NETT UNIT FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OF PROJECT PROPERTY TYPE TENURE SALE DATE (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE District 1 MARINA ONE RESIDENCES Apartment 99 years October 31, ,250 5,555,000-2, New Sale MARINA ONE RESIDENCES Apartment 99 years November 1, ,152 3,301,000-2, New Sale THE CLIFT Apartment 99 years November 1, ,540,000-1, Resale District 2 SPOTTISWOODE PARK Apartment 85 years October 30, ,313 1,010, Unknown Resale WALLICH RESIDENCE AT TANJONG PAGAR CENTRE Apartment 99 years November 1, ,200,000-3, New Sale WALLICH RESIDENCE AT TANJONG PAGAR CENTRE Apartment 99 years November 2, ,013,900-3, New Sale District 3 ARTRA Apartment 99 years November 3, ,227 2,151,300-1,753 Uncompleted New Sale ASCENTIA SKY Condominium 99 years October 31, ,819 2,465,000-1, Resale MARGARET VILLE Apartment 99 years November 2, ,535,500-1,678 Uncompleted New Sale QUEENS Condominium 99 years October 30, ,206,000-1, Resale QUEENS Condominium 99 years October 31, ,184 1,500,000-1, Resale STIRLING RESIDENCES Apartment 99 years October 30, ,352,000-1,769 Uncompleted New Sale LAND AREA/ NETT UNIT FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OF PROJECT PROPERTY TYPE TENURE SALE DATE (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE STIRLING RESIDENCES Apartment 99 years November 1, ,297,000-1,697 Uncompleted New Sale STIRLING RESIDENCES Apartment 99 years November 1, ,067,000-1,680 Uncompleted New Sale STIRLING RESIDENCES Apartment 99 years November 2, ,345 2,361,000-1,755 Uncompleted New Sale STIRLING RESIDENCES Apartment 99 years November 2, ,346,000-1,761 Uncompleted New Sale STIRLING RESIDENCES Apartment 99 years November 2, ,238,000-1,797 Uncompleted New Sale STIRLING RESIDENCES Apartment 99 years November 3, ,055 1,667,000-1,580 Uncompleted New Sale STIRLING RESIDENCES Apartment 99 years November 4, ,055 1,790,000-1,697 Uncompleted New Sale STIRLING RESIDENCES Apartment 99 years November 4, ,266,000-1,657 Uncompleted New Sale THE CREST Condominium 99 years October 31, ,184 2,200,000-1, Resale District 4 CARIBBEAN AT KEPPEL BAY Condominium 99 years November 1, ,636 2,508,000-1, Resale CORALS AT KEPPEL BAY Condominium 99 years October 30, ,238 2,510,000-2, Resale District 5 SEAHILL Terrace 99 years October 30, ,649 3,776,000-1, Resale THE PARC CONDOMINIUM Condominium Freehold October 31, ,196 2,100, Resale THE SORRENTO Condominium Freehold October 31, ,000-1, Resale VARSITY PARK CONDOMINIUM Condominium 99 years November 1, ,313 1,410,000-1, Resale WHISTLER GRAND* Apartment 99 years November 2, ,400-1,425 Uncompleted New Sale WHISTLER GRAND Apartment 99 years November 2, ,281 1,598,400-1,248 Uncompleted New Sale WHISTLER GRAND Apartment 99 years November 2, ,010,400-1,322 Uncompleted New Sale WHISTLER GRAND Apartment 99 years November 2, ,078,400-1,411 Uncompleted New Sale WHISTLER GRAND Apartment 99 years November 2, ,281 1,603,200-1,252 Uncompleted New Sale WHISTLER GRAND Apartment 99 years November 2, ,000-1,378 Uncompleted New Sale WHISTLER GRAND Apartment 99 years November 2, ,400-1,383 Uncompleted New Sale District 8 70@TRURO Apartment Freehold October 31, ,438,000-1, New Sale VOGX Apartment Freehold October 30, ,550 1,850,000-1, Resale District 9 LEONIE HILL RESIDENCES Apartment Freehold October 31, ,141 2,500,000-2, Resale LEONIE HILL RESIDENCES Apartment Freehold October 31, ,389 2,900,000-2, Resale MARTIN MODERN Condominium 99 years October 31, ,798 4,944,000-2,750 Uncompleted New Sale MARTIN MODERN Condominium 99 years November 3, ,016,000-2,638 Uncompleted New Sale THE MORNINGSIDE Apartment Freehold November 2, ,270 2,380,000-1, Resale TWENTYONE ANGULLIA PARK Condominium Freehold October 31, ,154 10,000,000-3, Resale VISIONCREST Apartment Freehold November 1, ,195 2,400,000-2, Resale District 10 3 CUSCADEN Apartment Freehold November 1, ,657,000-3,477 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 2, ,580,000-3,495 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,710,000-3,782 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,527,000-3,378 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,638,000-3,539 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,281 4,675,000-3,650 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,572,000-3,396 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,728,000-3,733 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,773,000-3,831 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,902,000-3,797 Uncompleted New Sale

13 EDGEPROP NOVEMBER 19, 2018 EP13 DONE DEALS Residential transactions with contracts dated Oct 30 to Nov 6 LAND AREA/ NETT UNIT FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OF PROJECT PROPERTY TYPE TENURE SALE DATE (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE 3 CUSCADEN Apartment Freehold November 3, ,657,000-3,477 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,697,000-3,529 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,597,000-3,398 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 3, ,737,000-3,581 Uncompleted New Sale 3 CUSCADEN Apartment Freehold November 4, ,625,000-3,594 Uncompleted New Sale BAN GUAN PARK Semi-Detached Freehold November 4, ,305 5,350,000-1, Resale CORONATION SHOPPING PLAZA Apartment Freehold November 1, ,098 1,400,000-1, Resale DARBY PARK Apartment 99 years November 1, ,307 92,714,566-2, Resale D LEEDON Condominium 99 years November 2, ,216 1,938,000-1, Resale FIFTH AVENUE CONDOMINIUM Condominium Freehold October 30, ,615 3,230,000-2, Resale LEEDON RESIDENCE Condominium Freehold November 5, ,044 2,550,000-2, Resale LUTHERAN TOWERS Apartment 103 years November 5, ,916 1,930,000-1,007 Unknown Resale MARGOLIOUTH ROAD Detached Freehold November 2, ,017 11,000,000-1,828 Unknown Resale PARVIS Condominium Freehold October 30, ,701 3,250,000-1, Resale STUDIO 3 Apartment Freehold October 30, ,600,000-1, Resale THE LADYHILL Condominium Freehold October 31, ,283 6,300,000-1, Resale THE MONTANA Apartment Freehold November 2, ,300,000-1, Resale District 11 CUBE 8 Condominium Freehold November 1, ,000-1, Resale DUNEARN ESTATE Semi-Detached Freehold November 5, ,520 5,400,000-1,534 Unknown Resale DYSON RITZ Semi-Detached Freehold October 31, ,153 5,000,000-2, Resale ENG AUN PARK Terrace Freehold November 1, ,625 3,850,000-2,370 Unknown Resale KELLETT COURT Condominium Freehold November 2, ,324 1,870,000-1, Resale NEWTON ONE Condominium Freehold October 30, ,216 2,500,000-2, Resale SINARAN Condominium 99 years November 2, ,453 2,800,000-1, Resale District 12 GEM RESIDENCES Condominium 99 years October 31, ,313 1,989,000-1,515 Uncompleted New Sale GEM RESIDENCES Condominium 99 years October 31, ,313 1,924,560-1,466 Uncompleted New Sale GEM RESIDENCES Condominium 99 years October 31, ,249 2,067,120-1,656 Uncompleted New Sale KIM KEAT GARDENS Apartment 99 years October 31, ,324 1,180, Resale REGENT RESIDENCES Apartment Freehold November 1, ,000-1, Resale TOPAZ Apartment Freehold November 2, , Resale THE VERVE Apartment Freehold November 2, ,000-1, Resale VISTA RESIDENCES Condominium Freehold November 1, ,195 1,768,000-1, Resale District 13 PARK COLONIAL Condominium 99 years October 31, ,367 2,299,000-1,682 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 1, ,103,000-1,737 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 1, ,000-1,865 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 3, ,152 1,680,000-1,459 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 4, ,195 1,705,000-1,427 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 4, ,350,000-1,650 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 4, ,098,000-1,822 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 4, ,066,000-1,768 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 4, ,000-1,808 Uncompleted New Sale PARK COLONIAL Condominium 99 years November 4, ,232,000-1,846 Uncompleted New Sale THE ACACIAS Apartment Freehold November 1, ,001 1,095,000-1, Resale THE TRE VER Condominium 99 years October 30, ,000-1,537 Uncompleted New Sale THE TRE VER Condominium 99 years November 3, ,038,000-1,634 Uncompleted New Sale THE TRE VER Condominium 99 years November 4, ,000-1,524 Uncompleted New Sale THE TRE VER Condominium 99 years November 4, ,000-1,553 Uncompleted New Sale THE TRE VER Condominium 99 years November 4, ,000-1,581 Uncompleted New Sale THE TRE VER Condominium 99 years November 4, ,131,000-1,616 Uncompleted New Sale District RESIDENCES Apartment Freehold November 1, ,126,000-1,609 Uncompleted New Sale ARENA RESIDENCES* Apartment Freehold November 2, ,081,000-1,793 Uncompleted New Sale ARENA RESIDENCES Apartment Freehold November 2, ,094,000-1,815 Uncompleted New Sale ARENA RESIDENCES Apartment Freehold November 2, ,472,000-1,823 Uncompleted New Sale ARENA RESIDENCES Apartment Freehold November 2, ,482,000-1,836 Uncompleted New Sale ARENA RESIDENCES Apartment Freehold November 2, ,498,000-1,856 Uncompleted New Sale ARENA RESIDENCES Apartment Freehold November 2, ,450,000-1,796 Uncompleted New Sale CHANGI ROAD Apartment Freehold November 1, ,142 1,700, Resale GUILLEMARD CRESCENT Terrace Freehold November 2, ,658 2,800,000-1, Resale PARK 1 SUITES Apartment Freehold October 30, ,098 1,416,400-1, New Sale SIMS URBAN OASIS Condominium 99 years October 30, ,733 2,510,000-1, New Sale SIMS URBAN OASIS Condominium 99 years October 31, ,249 1,918,000-1, New Sale SIMS URBAN OASIS Condominium 99 years October 31, ,034 2,848,000-1, New Sale SIMS URBAN OASIS Condominium 99 years October 31, ,733 2,548,000-1, New Sale SIMS URBAN OASIS Condominium 99 years November 1, ,733 2,528,000-1, New Sale District 15 BUTTERWORTH 8 Condominium Freehold October 30, ,313 1,880,000-1, Resale HOMEY GARDENS Apartment Freehold November 5, ,755 1,750, Resale MOUNTBATTEN ROAD Detached Freehold October 30, ,994 7,300,000-1, Resale SILVERSEA Condominium 99 years October 31, ,518 2,450,000-1, Resale District 16 BAYSHORE PARK Condominium 99 years October 31, ,173 1,180,000-1, Resale BEDOK RESIDENCES Apartment 99 years October 31, ,318,000-1, Resale BEDOKVILLE Semi-Detached Freehold November 5, ,466 3,600,000-1,038 Unknown Resale CHANGI COURT Condominium Freehold November 1, ,000-1, Resale CHANGI GREEN Condominium Freehold November 2, ,001 1,000, Resale EASTWOOD ROAD Terrace 99 years November 5, ,240 2,438, Resale SUNBIRD PARK Terrace Freehold November 2, ,615 2,220,000-1, Resale District 17 CASA AL MARE Apartment Freehold November 1, ,000-1,629 Uncompleted New Sale THE GALE Condominium Freehold October 30, ,012 1,075,000-1, Resale THE GALE Condominium Freehold October 31, ,464 1,403, Resale THE JOVELL Condominium 99 years November 1, ,000-1,380 Uncompleted New Sale THE JOVELL Condominium 99 years November 2, ,000-1,373 Uncompleted New Sale District 18 DOUBLE BAY RESIDENCES Condominium 99 years November 1, ,313 1,380,000-1, Resale DOUBLE BAY RESIDENCES Condominium 99 years November 2, ,270 1,330,000-1, Resale ELIAS Condominium 99 years November 2, , , Resale SEA ESTA Condominium 99 years November 2, ,000-1, Resale THE PALETTE Condominium 99 years November 5, ,163 1,170,000-1, Resale THE TAPESTRY Condominium 99 years October 30, ,820-1,508 Uncompleted New Sale THE TAPESTRY Condominium 99 years October 31, ,231,200-1,243 Uncompleted New Sale THE TAPESTRY Condominium 99 years November 1, ,200-1,448 Uncompleted New Sale THE TAPESTRY Condominium 99 years November 1, ,130 1,411,200-1,249 Uncompleted New Sale THE TAPESTRY Condominium 99 years November 1, ,660-1,459 Uncompleted New Sale THE TAPESTRY Condominium 99 years November 2, ,210,400-1,308 Uncompleted New Sale WATERVIEW Condominium 99 years November 1, ,572 1,420, Resale District 19 3@PHILLIPS Apartment 999 years October 31, , Resale A TREASURE TROVE Condominium 99 years October 30, ,000-1, Resale A TREASURE TROVE Condominium 99 years October 30, ,206 1,300,000-1, Resale AFFINITY AT SERANGOON* Apartment 99 years October 30, ,000-1,508 Uncompleted New Sale AFFINITY AT SERANGOON Apartment 99 years October 30, ,500-1,535 Uncompleted New Sale AFFINITY AT SERANGOON Apartment 99 years October 30, ,010,000-1,618 Uncompleted New Sale AFFINITY AT SERANGOON Apartment 99 years October 30, ,000-1,550 Uncompleted New Sale AFFINITY AT SERANGOON Apartment 99 years October 30, ,000-1,514 Uncompleted New Sale AFFINITY AT SERANGOON Apartment 99 years October 31, ,000-1,520 Uncompleted New Sale ESPARINA RESIDENCES EC 99 years November 2, ,001 1,058,000-1, Resale FOREST WOODS Condominium 99 years November 4, ,238 1,924,000-1,554 Uncompleted New Sale GILLENIA Apartment 999 years November 2, ,475 1,380, Resale KINGSFORD WATERBAY Apartment 99 years November 5, ,150,000-1,303 Uncompleted Sub Sale PARC CENTROS Condominium 99 years November 1, ,345 1,470,000-1, Resale PRIVE EC 99 years October 30, ,000-1, Resale LAND AREA/ NETT UNIT FLOOR AREA TRANSACTED PRICE PRICE COMPLETION TYPE OF PROJECT PROPERTY TYPE TENURE SALE DATE (SQ FT) PRICE ($) ($) ($ PSF) DATE SALE PRIVE EC 99 years October 30, ,130 1,203,000-1, Resale PRIVE EC 99 years October 31, ,055 1,047, Resale PRIVE EC 99 years November 1, ,055 1,110,000-1, Resale PRIVE EC 99 years November 1, , Resale REGENTVILLE Apartment 99 years October 31, , Resale RIVERCOVE RESIDENCES EC 99 years October 30, ,200-1,023 Uncompleted New Sale RIVERCOVE RESIDENCES EC 99 years October 30, ,900-1,010 Uncompleted New Sale RIVERCOVE RESIDENCES EC 99 years October 30, ,163 1,120, Uncompleted New Sale RIVERCOVE RESIDENCES EC 99 years October 30, ,216 1,160, Uncompleted New Sale RIVERCOVE RESIDENCES EC 99 years October 30, ,184 1,170, Uncompleted New Sale RIVERCOVE RESIDENCES EC 99 years October 30, ,076 1,053, Uncompleted New Sale RIVERCOVE RESIDENCES EC 99 years October 30, ,007,600-1,052 Uncompleted New Sale RIVERCOVE RESIDENCES EC 99 years October 30, ,007,600-1,052 Uncompleted New Sale RIVERFRONT RESIDENCES Apartment 99 years October 31, ,000-1,339 Uncompleted New Sale RIVERFRONT RESIDENCES Apartment 99 years November 1, ,000-1,297 Uncompleted New Sale RIVERFRONT RESIDENCES Apartment 99 years November 1, ,000-1,273 Uncompleted New Sale RIVERFRONT RESIDENCES Apartment 99 years November 2, ,000-1,262 Uncompleted New Sale RIVERFRONT RESIDENCES Apartment 99 years November 2, ,000-1,275 Uncompleted New Sale RIVERFRONT RESIDENCES Apartment 99 years November 3, ,000-1,480 Uncompleted New Sale RIVERFRONT RESIDENCES Apartment 99 years November 3, ,000-1,266 Uncompleted New Sale RIVERSOUND RESIDENCE Condominium 99 years November 1, ,163 1,217,000-1, Resale 813 Apartment Freehold October 30, ,000,000-1, Resale SERANGOON GARDEN ESTATE Terrace 999 years November 5, ,841 2,350,000-1,277 Unknown Resale SERANGOON GARDEN ESTATE Terrace 999 years November 5, ,035 3,200,000-1,054 Unknown Resale SUMMER PLACE Terrace Freehold November 1, ,647 2,300,000-1, Resale THE MINTON Condominium 99 years November 1, ,000-1, Resale THE WATERLINE Condominium Freehold November 1, ,000-1, Resale WATERTOWN Apartment 99 years October 30, ,180,000-1, Sub Sale District 20 BISHAN 8 Condominium 99 years November 1, ,163 1,440,000-1, Resale FABER GARDEN CONDOMINIUM Condominium Freehold November 5, ,679 2,200,000-1, Resale HORIZON GARDENS Terrace 99 years November 1, ,982 2,048, Resale JADESCAPE Condominium 99 years October 31, ,647 2,887,100-1,753 Uncompleted New Sale JADESCAPE Condominium 99 years November 2, ,372,000-1,795 Uncompleted New Sale JADESCAPE Condominium 99 years November 2, ,141,300-1,767 Uncompleted New Sale JADESCAPE Condominium 99 years November 2, ,277,200-1,671 Uncompleted New Sale JADESCAPE Condominium 99 years November 2, ,259 2,079,600-1,651 Uncompleted New Sale JADESCAPE Condominium 99 years November 4, ,349,300-1,766 Uncompleted New Sale JALAN LEMBAH THOMSON Terrace Freehold October 31, ,120 3,650,000-1, Resale SKY HABITAT Condominium 99 years October 31, ,734 4,300,000-1, Resale THOMSON HILLS ESTATE Apartment Freehold November 5, ,636 1,300, Resale THOMSON VIEW CONDOMINIUM Condominium 99 years November 2, ,843 2,100, Resale District 21 DAINTREE RESIDENCE Condominium 99 years October 31, ,320,500-1,778 Uncompleted New Sale FLORIDIAN Condominium Freehold October 30, ,520,000-1, Resale HUME PARK I Condominium Freehold November 1, ,356 1,370,000-1, Resale MAPLE WOODS Condominium Freehold October 30, ,350,000-1, Resale MAPLE WOODS Condominium Freehold November 1, ,324 2,008,000-1, Resale MAYFAIR GARDENS Condominium 99 years October 31, ,178,000-1,990 Uncompleted New Sale THE CASCADIA Condominium Freehold November 2, ,496 2,700,000-1, Resale THE HILLFORD Apartment 60 years November 1, ,000-1, Resale District 22 SUMMERDALE EC 99 years October 31, , , Resale THE CENTRIS Apartment 99 years November 1, ,324 1,500,000-1, Resale THE CENTRIS Apartment 99 years November 2, ,442 1,630,000-1, Resale YUNNAN GARDENS Terrace Freehold November 5, ,551 2,360, Resale District 23 CASHEW GREEN Terrace 999 years November 3, ,916 3,920,490-2,046 Uncompleted New Sale CASHEW GREEN Terrace 999 years November 3, ,916 4,003,910 3,873,910 2,022 Uncompleted New Sale GUILIN VIEW Condominium 99 years October 30, , Resale LE QUEST Apartment 99 years October 30, ,060,000-1,492 Uncompleted New Sale LE QUEST Apartment 99 years November 2, ,399,000-1,428 Uncompleted New Sale MI CASA Condominium 99 years October 31, ,259 1,110, Resale THE MADEIRA Condominium 99 years November 2, , Resale YEW MEI GREEN EC 99 years October 31, , , Resale District 25 LA CASA EC 99 years October 30, , , Resale NORTHOAKS EC 99 years October 31, , , Resale PARC ROSEWOOD Condominium 99 years November 2, ,000-1, Resale ROSEWOOD SUITES Condominium 99 years October 30, ,259 1,025, Resale ROSEWOOD SUITES Condominium 99 years November 2, ,518 1,270, Resale District 26 CASTLE GREEN Condominium 99 years October 30, , , Resale SPRINGLEAF GARDEN Semi-Detached Freehold October 31, ,090 3,700, Resale THE CALROSE Condominium Freehold October 30, ,475 2,038,000-1, Resale District 27 ORCHID PARK CONDOMINIUM Condominium 99 years October 30, , Resale District 28 BELGRAVIA GREEN Terrace Freehold November 3, ,132 2,674, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,466 3,061, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,187, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,531 3,035, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,132 2,674, Uncompleted New Sale BELGRAVIA GREEN Semi-Detached Freehold November 3, ,004 3,731, Uncompleted New Sale BELGRAVIA GREEN Semi-Detached Freehold November 3, ,004 3,780, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,098, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,466 3,042, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,055, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,294 2,803, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,294 2,783, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,595 3,041, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,595 3,061, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,086, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,129, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,595 3,097, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,124, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,466 2,994, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,134, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,115, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,100, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,120, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,148, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,466 3,042, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 3, ,638 3,146, Uncompleted New Sale BELGRAVIA GREEN Terrace Freehold November 4, ,455 3,061, Uncompleted New Sale PARC BOTANNIA Condominium 99 years November 1, ,000-1,364 Uncompleted New Sale PARC BOTANNIA Condominium 99 years November 1, ,900-1,389 Uncompleted New Sale PARC BOTANNIA Condominium 99 years November 1, ,234,810-1,261 Uncompleted New Sale PARC BOTANNIA Condominium 99 years November 2, ,270,000-1,311 Uncompleted New Sale SELETAR HILLS ESTATE Semi-Detached Freehold November 1, ,574 3,200, Resale STRATTON GREEN Terrace Freehold October 31, ,905 2,638,000-1, Resale DISCLAIMER: Source: URA Realis. Updated Nov 13, The Edge Publishing Pte Ltd shall not be responsible for any loss or liability arising directly or indirectly from the use of, or reliance on, the information provided therein. EC stands for executive condominium *Not all caveats are shown due to overwhelming number of transactions

14 EP14 EDGEPROP NOVEMBER 19, 2018 PERSONALITY AARON WAN PropNex real estate agents from Ken Ng Division, under Wan s direct boss, at their mid-year retreat at Owl Bar in September The Wan way to succeed in real estate After he joined PropNex Realty in October last year, Aaron Wan quickly grew his team to 70 real estate agents. On Nov 14 this year, the group division director snagged two titles at PropNex s third Quarterly Convention He clinched first place as Top Associate Group Division Director, after his team achieved more than $1 million in sales commission in August and September; and second place as Top Individual Producer, recognising Wan s own contribution of more than $400,000 in sales commission from July to September. Wan, 31, believes that to achieve robust sales, one must adopt a personal approach in picking suitable properties for clients. He typically meets his clients first to understand their requirements before recommending properties tailored to their taste. When you serve buyers, it s very challenging because you have only the weekends, he says. Each day, you probably can serve only two buyers, as most buyers prefer to view properties later in the morning. And the nights are a no-go for viewing, as there is no natural light. Wan attributes his team s sales achievements to the healthy culture at PropNex. With more than 7,600 sales agents, it is the largest real estate agency in Singapore. One factor that has contributed to the strong culture is the firm s no internal crossing policy, he says. This regulation prevents a team leader from poaching top-performing agents from another team to achieve his team s sales target. Property agents from one team are banned from joining another unless they leave the company and come back after a year. Serving a wide range of buyers Wan serves buyers from a wide range of backgrounds, and 60% to 70% of his clientele are locals. He works with two large groups: bankers and migration consultants. The latter bring in China nationals to work in Singapore, and some of them invest in properties in the hope of becoming a permanent resident in the country, Wan explains. Chinese people, they like to buy, not to rent. Wan attributes the majority of his leads to referrals, and describes himself as a very aggressive referral hunter. Local and foreign clients with whom he has worked before would recommend their friends to him. Wan also approaches people whom he crosses path with, such as vendors, contractors, lawyers and bankers, and asks them whether they know of people who want to buy property. If you refer me, we could work out something, he would tell them. It is totally legal to give a referral fee in such instances, he explains. He also believes that sincerity is key when serving buyers. The same customer can be Wan s team achieved over $1 million in two-month sales commission, bagging him the title of Top Asso ciate Group Division Director at PropNex s quarterly awards spoken to by three different agents, yet he chooses only one to deal with, Wan says. It boils down to our character, [tone of voice,] mannerism, figures of speech, how I sit when I speak to you. Growth as a leader Before Wan made the move to PropNex in 2017, he was determined to learn the skills of managing people. I wanted to step up to the next level, because in real estate sales, we believe that one day, sales figures will go down, he says. Even if he is no longer an agent one day, these skills can still be applied elsewhere, he adds. Wan faces challenges in managing agents, such as when he has to lead a group of agents who are largely older than he. But he is thankful that he is able to exercise leadership because the agents see me as someone who is very far-sighted, he says. They trust me because I am able to point out things they don t see. Wan used to doubt himself when he started out, but he reminds himself constantly to always do what I think is right for [my agents]. In turn, he looks for two traits in them: They need to be passionate about the job and good at time management. Real estate agents have to deal with many clients, Wan says, and they should be able to prioritise and give a definite timeline for each case, lest they lose out on more lucrative deals. For property agents who are starting out, Wan believes two things are key a portal to advertise property listings; and a research tool to analyse property trends. Agents should also have a six-month cushion to cover living costs. The industry is for hard workers, and requires agents to sell properties through roadshows, telemarketing and approaching potential customers by going door to door. You must invest a lot of time to be on the ground meeting people, he says. This was how Wan himself started out. A different background Wan reckons that some of his strengths and experiences have helped him in his career in real estate. For instance, he came from an accounting and financial background, which enables him to give sound financial advice to his clients. He worked at PricewaterhouseCoopers in Singapore as a tax consultant for three years and, prior to that, as a banker at Credit Suisse. Before joining PropNex, he was with ERA Singapore. Wan describes himself as an opportunist, a trait that helps him scout for good property deals. In his younger days, he used to dabble in a variety of activities, including buying Fred Perry apparel overseas and reselling it in Singapore at a higher price. Those days, the apparel brand had no official store in Singapore. As a teenager, he had also made a low five-figure sum within a month, dealing with virtual currencies. As proof that he is a savvy investor, Wan points out that his own properties have appreciated in value by about $500,000 each since he bought them. For his matrimonial home, he purchased a two-bedroom unit in District 9, at Robertson Quay for $1.5 million, and it is now worth $2 million. Last year, he bought another property a three-bedroom unit at The Sea View on Amber Road in District 15 for $2.3 million. The asset is now priced at more than $2.8 million, Wan shares. He says he has learnt much from his direct boss, Ken Ng, who is senior group district director. He often puts himself in Ng s shoes when a tricky situation arises. Would he have answered [clients] the way I answered? he says. Looking ahead, Wan wants to focus on nurturing leaders in his team. For Aaron Wan to repeat this success again, to [lead] another 60 people is not difficult because I ve done it, he says. However, if I were to pick out five or six people to individually lead 10 or 20 agents each, that would be more amazing. E

15 EDGEPROP NOVEMBER 19, 2018 EP15 COVER STORY Competition from condos offered for short-term stays FROM PAGE 9 a serviced apartment by an operator can be priced at more than RM700 a night. On weekdays, however, hotel occupancy rates in Puteri Harbour are a little more challenging. The hotels and serviced apartments in Puteri Harbour also face competition from condominium owners who put their homes up for short-term stays on Airbnb and other similar platforms, says Chee Hok Yean, regional president of HVS Asia Pacific. For long-term stays, there s competition from houses near the area. Reasonable returns GRR schemes are offered to attract investors from Singapore and other countries to help increase the take-up rate in these projects. Few projects offering GRR have been very successful, though, says ET&Co s Ong (see table). Generally, the schemes are applicable for investment properties for recurring income such as hotel or resort properties, serviced apartments, SOHO and student accommodation. Cautious steps have to be taken by buyers, especially in the signing of the agreements. The sale and purchase agreement is covered by the Housing Development (Control & Licensing) Act, but the GRR schemes are not governed by the Act. There are some cases where buyers sued the developers for not giving their promised rental return. Peter Lim, an investor of Somerset Puteri Harbour, is well aware that such leaseback schemes have lower rental returns after the GRR period. Projects that offer sale and leaseback schemes PROJECT DEVELOPER OVERALL PROFILE ANNUAL GRR TAKE-UP OF BUYERS RATE (%) Shama Medini & UMLand NA NA 6% for five years Citadines Medini (Shama Medini) 5% for two to three years (Citadines Medini*) Meridin Hotel Suites Mah Sing NA NA 5% for three years Puteri Cove Pacific Star 70 40% local 12% for two years Residences Group 40% Singaporeans 20% other countries The WaterEdge Walker Corp 70 75% local 13% for two years Apartments, 20% Singaporeans Senibong Cove 5% o ther countries *To be finalised But I am only expecting reasonable returns, for instance, 2.5% to 3% after the initial twoyear GRR period, he says. This is less than the 4.7% mortgage interest I m currently servicing. He estimates his returns to be 0.5%, a far cry from the 5% during the GRR period. Other investors are also frustrated by the returns. As such, they have grouped together to engage law firm Shearn Delamore & Co in Malaysia to issue a letter of demand to Clear Dynamic on Oct 8. According to the letter of demand, the rental returns after the guarantee period were unreasonably and inconceivably negligible. The owners wanted Clear Dynamic to get Ascott to promote and market the ET&CO RESEARCH serviced residences and deliver reasonable returns. They have also requested for a net return of at least 2.8% a year on their investment, stipulating that it be made within three months. Clear Dynamic, through its lawyer Soh Hayati & Co, replied on Nov 1 that they strongly deny the allegations made. They also point out that the investors had agreed to accept the conditions of the S&P agreement and those spelt out in the leaseback agreement on a willing buyer, willing seller basis. Through its lawyer, Clear Dynamic also added that the minimum net return of 2.8% is without any justification, and that it is not obliged to deliver those returns within the stipulated timeframe. The investors lawyer responded on Nov 12 with another letter, in which it stated that, given the returns, Clear Dynamic was expected to review the management agreement and take necessary steps to remedy the situation, and explore the possibility of a replacement service provider if necessary. Beyond a brand Many of the investors at Somerset Puteri Harbour say a major factor in their decision to purchase was the brand. While Somerset is a trusted and established brand, investors need to look at factors beyond that, says ET&Co s Ong. These are some of the risks that investors have to consider; there s no guarantee of profits and returns. When buying overseas, one has to consider currency risks as well, adds Ong. If you buy in a foreign country, you will be treated differently. When investing, you have to think of the exit strategy. UMLand s Ng believes things are starting to look more positive in Iskandar Malaysia. A new attraction, Sea Life Aquarium, will open at Legoland Malaysia in Medini, which should boost tourism, he adds. Although there was a lull after the shooting of two seasons of Marco Polo, the Netflix television series, more movies and television series will be shot at Pinewood Iskandar Malaysia Studios in the coming year. This will be positive for hotel rooms in the Puteri Harbour area, but the returns will be visible only further down the road. E

16 EP16 EDGEPROP NOVEMBER 19, 2018 UNDER THE HAMMER Mortgagee sale at Reflections at Keppel Bay for $4.3 mil BY BONG XIN YING A 2,110 sq ft unit at Reflections at Keppel Bay will be put up for its first auction by Edmund Tie & Co. The auction will take place on Nov 21, at an opening price of $4.3 million ($2,038 psf). This is also the first mortgagee sale at the development for ET&Co, according to Joy Tan, its head of auction and sales. Reflections at Keppel Bay, a 99-year leasehold development by Keppel Land, the property arm of Keppel Corp, was completed in It is located on Keppel Bay View, off Telok Blangah Road, in District 4. Designed by acclaimed Polish-American architect Daniel Libeskind, the 1,129-unit development includes six glass towers of between 24 and 41 storeys. There are also 11 villa apartment blocks that are six to eight floors high. The development won the Gold award at the FIA- BCI Prix d Excellence Awards in The four-bedroom unit on the 35th floor will be sold with vacant possession on an as is where is basis. It was first purchased from the developer in June 2010 for $6.07 million ($2,876 psf). The unit s master and junior master bedrooms come with en suite bathrooms. It has a closed-concept kitchen and utility room as well. The highlight, however, is the view. This corner unit offers 180-degree, unblocked views of the marina and the sea, as well as of greenery at Mount Faber Park. Tan describes the unit as bright and spacious, with a large living and dining space. There have been 53 resale transactions at Reflections at Keppel Bay this year. Accord- The 99-year leasehold Reflections at Keppel Bay was completed in 2011 ing to caveats lodged, the most recent transaction was in October, when a 1,076 sq ft, two-bedroom unit on the sixth floor changed hands for $1.7 million ($1,579 psf). On the unit that will be auctioned, Tan notes: It s rather popular, and we have received a number of indications of interest from investors. The investors will be attending the auction, she adds. E THE EDGE SINGAPORE Recent rental contracts for 2,100 to 2,200 sq ft units at Reflections at Keppel Bay Recent transactions at Reflections at Keppel Bay The corner unit to be auctioned offers 180-degree, unblocked views of the marina and the sea LEASE DATE MONTHLY RENT ($) September ,000 June ,000 May ,300 CONTRACT DATE AREA (SQ FT) PRICE ($) PRICE ($ PSF) Oct 5, ,076 1,699,800 1,579 Sept 28, ,508 3,755,000 1,497 Sept 13, ,259 1,768,888 1,405 Sept 7, ,418,000 1,568 Aug 31, ,991 3,600,000 1,808 ET&CO TABLES: URA, EDGEPROP