PRIVATE RESIDENTIAL PRICE STAYED STABLE DESPITE COOLING MEASURES AND UNCERTAIN EXTERNAL ENVIRONMENT IN Q3 SINGAPORE RESEARCH RESIDENTIAL

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1 RESEARCH RESIDENTIAL Q3 218 RESIDENTIAL MARKET SNAPSHOT All Private Residential Property Price Index % increase yoy Total Transaction Volume* (Q3 218) 5,812 units 28% decrease yoy *Transaction volume is based on caveats lodged as at 19 October 218 Evening View of Orchard skyline from the Lumos TAN TEE KHOON Executive Director & Head, Residential (Project Marketing) With various opportunities available in the market, projects in the Rest of Central Region and Core Central Region will potentially appeal more to firsttime home buyers as well as owners that received their sale proceeds seeking replacement homes. Increasingly, buyers are placing more emphasis on the location attributes, design of the product, unique offerings and smart home features. PRIVATE RESIDENTIAL PRICE STAYED STABLE DESPITE COOLING MEASURES AND UNCERTAIN EXTERNAL ENVIRONMENT IN Q3 The URA private residential property price index rose.5% quarteronquarter (qoq) in Q Market Pulse Despite the cooling measures and uncertain external environment, prices for private residential properties continued to increase in Q3. The URA private residential property price index rose by.5% qoq. The prices were supported by firsttime home buyers and investors seeking Singapore properties for diversification purposes. Notwithstanding, sales in Q3 dipped as buyers sentiments were more subdued. Many buyers returned to the sidelines, adopting the wait and see approach. Sales were also slower in Q3 due to The Chinese Ghost Month in August. Based on the caveats lodged on 19 Oct 218, private residential sales including Executive Condominiums (EC) fell by 26.9% qoq, and 27.7% yearonyear (yoy). Both the Core Central Region and the Outside Central Region recorded increases in price indices in Q3 despite the cooling measures. However, the price index of nonlanded homes in eased by.8% qoq. Notwithstanding the decline in price index, the nonlanded residential property sales in rose by 9.9% qoq (Exhibits 2 and 3) due to the new launches.

2 Q3 218 RESIDENTIAL RESEARCH BULLETIN With the cooling measures in place, buyers became more pricesensitive. A case in point was Riverfront Residences, which sold a significant number of units below S$1. million in Q3. Separately, projects of good design at choice locations, such as, appealed to many buyers. There are signs that prices are staying stable, although the weaker economic outlook may exert negative pressure on prices and sales. Separately, the private residential rents showed signs of bottoming out, with the number of rental transactions trending upwards. With fewer completions in next year, we expect residential property rents to appreciate in 219, provided the global economy remained robust. Market Insights URA private residential price index increased by.5%, with sales declining by nearly 27% qoq to 5,812 units. Notwithstanding, total private residential sales was 87.1% higher than 3,17 units transacted in Q Sales volume reached the trough in 214. While there is much supply in the pipeline, the impact is likely to be cushioned. This is because the developers are likely to introduce the new launches in phases. Additionally, we expect supply to start declining from 219, subject to changes in Government policies. EXHIBIT 1 Total Supply of Private Homes, Total Sales, and URA Private Residential Property Price Index Number of Private Residential Home Units 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Q3 213 Q4 213 Q1 214 Q2 214 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215 Q4 215 Q1 216 Q2 216 Q3 216 Q4 216 Q1 217 Q2 217 Q3 217 Q4 217 Q1 218 Q2 218 Q URA Private Residential Price Index (Q1 29 = 1) TOTAL SUPPLY (LAUNCHED BUT UNSOLD & UNCOMPLETED) URA PRIVATE RESIDENTIAL PROPERTY PRICE INDEX TOTAL SALE TOTAL SUPPLY (UNLAUNCHED WITH PLANNING APPROVAL) Note: Data is obtained from URA Quarterly Statistics and Flash Estimates as at Q3 218 Nonlanded home price index for eased by.8% qoq but sales of nonlanded homes in rose by 9.9% EXHIBIT 2 URA Private Residential Price Index and Number of Units Sold by Market Number of Units sold 7, 6, 5, 4, 3, 2, 1, Q3 213 Q4 213 Q1 214 Q2 214 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215 Q4 215 Q1 216 Q2 216 Q3 216 Q4 216 Q1 217 Q2 217 Q3 217 Q4 217 Q1 218 Q2 218 Q URA Private Residential Price Index (Q1 29 = 1) NONLANDED SALES (CCR) NONLANDED SALES () NONLANDED SALES (OCR) NONLANDED PRICE INDEX (CCR) NONLANDED PRICE INDEX () NONLANDED PRICE INDEX (OCR) Note: Data is obtained from URA Quarterly Statistics and Flash Estimates as at Q3 218; Transactions include ECs.

3 Q3 218 RESIDENTIAL RESEARCH BULLETIN Despite the pressure from slower sales, nonlanded home prices were about 81% higher from the trough in 217. EXHIBIT 3 Changes in URA Private Nonlanded Residential Price Indices Region qoq yoy Since the last trough Whole Island Core Central Region Rest of Central Region Outside Central Region. 1..8%.1% 8.8% % 9.7% 9.5% 9.3% 8.% 1.5% Note: Data is obtained from URA Quarterly Statistics and Flash Estimates as at Q3 218; Transactions include ECs. Buyers were more pricesensitive and discerning after the cooling measures. They had more options in the market, especially in the region. Separately, the prices of Executive Condominiums (EC) inched upwards. We anticipate any new launches of ECs to be wellreceived, given that the prices of EC are lower than private condominiums. EXHIBIT 4 Top 5 Projects in Q3 218 by Number of Units Sold S/n Market Total No. of Units in Project No. of Units Sold to date 1 No. of New Units Sold in Q Average Price 2 ($ psf) in Q3 218 Private NonLanded Residential Projects Riverfront Residences OCR 1, $1, $1,746 Stirling Residences 1, $1,765 1, $1, $1,549 Executive Condominiums 1 Northwave OCR $868 2 Parc Life OCR $881 3 Rivercove Residences OCR $98 4 Signature At Yishun OCR $847 5 Sol Acres OCR 1,327 1,327 5 $99 Source: URA, REALIS (based on data as at 19 October 218), Knight Frank 1 Sales data may vary arising from the status update of earlier sales records by developers after factoring dropout cases. 2 Number of units sold and average prices in the quarter are based on caveats lodged from July to August 218, lodged as at 19 Oct 218. A significant share of the units transacted in Q3 from the best 5 selling projects were of floor areas ranging from 58 sq ft. In addition, the average quantum of the units of this size was less than $1.5m. EXHIBIT 5 Transaction Volume and Average Price Quantum of the Top 5 Projects Sold in Q3 218 Riverfront Residences Stirling Residences <5 sq ft 159 (S$618,29) 113 (S$827,88) 56 (S$825,871) 12 (S$766,5) 5 sq ft 8 sq ft 398 ($815,95) 214 ($1,154,883) 221 ($1,181,868) 191 ($1,154,381) 145 ($996,9) 8 sq ft 1, sq ft 55 (S$1,165,655) 1 (S$1,562,3) 82 (S$1,55,26) 27 (S$1,511,87) 1, sq ft 1,5 sq ft 111 ($1,57,351) 67 (S$1,975,75) 65 (S$1,979,187) 98 (S$1,89,49) 34 (S$1,738,471) > 1,5 sq ft 7 ($2,97,) 5 ($2,81,2) 9 ($3,184,544) Source: URA, REALIS (based on data as at 19 October 218), Knight Frank 1. Sales data may vary arising from the status update of earlier sales records by developers after factoring dropout cases. 2. Number of units sold and average prices in the quarter are based on caveats lodged from July to August 218, lodged as at 19 Oct 218.

4 Q3 218 RESIDENTIAL RESEARCH BULLETIN Sales in prime districts continued to move. Based on the caveats lodged in Q3, Marina One Residences sold the most. Of the 45 units from Marina One Residences sold, some 8 units were larger than 2, sq ft at $2,79 per sq ft. NonPermanent Resident buyers were particularly active in Core Central Region market segment. EXHIBIT 6 Total Sales of Top 5 by Residential Status Market Singaporean Singapore Permanent Residents (PR) Foreigner (NPR) Riverfront Residences Stirling Residences OCR 87% 88% 84% 87% 9% 11% 8% 1 11% 8% 4% 4% Source: URA, REALIS (based on data as at 19 Oct 218), Knight Frank Note: May not add up to 1% due to caveats lodged by Companies and other buyers. Chinese and Malaysians continued to account for a large share of foreign purchases of new nonlanded projects in Singapore. The Chinese were active in the Core Central Region; their home purchases forming of total new nonlanded residential sales in Q3. Notwithstanding, foreign purchases largely declined in Q3 after the announcement of cooling measures. EXHIBIT 7 New Sale Transaction Volume by Buyer Nationality 4 35 New Sale Units Sold Q3 213 Q4 213 Q1 214 Q2 214 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215 Q4 215 Q1 216 Q2 216 Q3 216 Q4 216 Q1 217 Q2 217 Q3 217 Q4 217 Q1 218 Q2 218 Q3 218 CHINESE INDIAN INDONESIAN MALAYSIAN Source: URA, REALIS (based on data as at 19 Oct 218), Knight Frank In contrast, private residential rents are showing signs of bottoming out. With prices increasing at a slower rate, we expect yields to stabilise in future. EXHIBIT 8 Total Rental Transactions and Median Rents Number of Rental Transactions 9, 8, 7, 6, 5, 4, 3, 2, 1, Median Rents (S$ psf pm) NUMBER OF RENTAL TRANSACTIONS MEDIAN RENT (PER SQFT PER MONTH) Source: REALIS, URA, Knight Frank

5 Q3 218 RESIDENTIAL RESEARCH BULLETIN While nonlanded residential property yields remained subdued, average gross yields for highend and ultraluxury residential properties improve in Q3. EXHIBIT 9 Average Yields of Private Residential Properties by s 3Quarter Moving Yield Q3 216 Q4 216 Q1 217 Q2 217 Q3 217 Q4 217 Q1 218 Q2 218 Q % 2.45% 2.39% 2.% ULTRAHIGH HIGHEND MIDTIER MASS MARKET Source: REALIS, URA, Knight Frank Market Outlook The prices of private residential properties are likely to stay flat for the last quarter of 218, as buyers sentiments likely to remain subdued. New sale volume, however, is likely to vary by project. Buyers are likely to be drawn to projects in the and CCR, as these residential properties remain relatively appealing amid the uncertain external environment. FOR RESIDENTIAL SALES ENQUIRIES, PLEASE CONTACT: Tan Tee Khoon Executive Director and Head Residential (Project Marketing) teekhoon.tan@kfpn.com.sg EXHIBIT 1 Outlook for Private Home Prices Market Islandwide NonLanded CCR NonLanded NonLanded OCR Landed Homes Actual (as at Q3 218) qoq % yoy %.5% 8.8% % 6.5%.1% 9.7% 1.7% 8.5% Projected yoy % Change by end % to 11.% 8.% to 12.% 6.% to 8.% 9.% to 11.% 6.% to 1.% FOR FURTHER INFORMATION, PLEASE CONTACT: Lee Nai Jia Senior Director and Head naijia.lee@sg.knightfrank.com Wong Shanting Manager shanting.wong@sg.knightfrank.com Lucy Zhu Analyst lucy.zhu@sg.knightfrank.com For further information about the company, please visit Knight Frank Singapore 218 This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank Pte Ltd and its subsidiaries for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank Pte Ltd and its subsidiaries in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank Pte Ltd to the form and content within which it appears. Knight Frank Pte Ltd is a private limited company which is incorporated in Singapore with company registration number Z and CEA licence number L35536J. Our registered office is at 1 Collyer Quay #81 Ocean Financial Centre Singapore