Rewind 2015 Off the Rail Iskandar Malaysia Who Sinks Or Swims in Impact of MRT on What’S Hot and What’S a Tumultuous Market PG3 Residential Rents PG4 Not PG6
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THE WEEK OF DECEMBER 28, 2015 709 A PULLOUT WITH Visit TheEdgeProperty.com to find properties, MAKE BETTER DECISIONS MCI (P) 046/03/2015 PPS 1519/09/2012 (022805) research market trends and read the latest news Rewind 2015 Off the rail Iskandar Malaysia Who sinks or swims in Impact of MRT on What’s hot and what’s a tumultuous market PG3 residential rents PG4 not PG6 Dear Santa Christmas wishes for a healthier property market | BY LIN ZHIQIN | Dear government, please review interest rates have not risen to levels that will in- check for total debt servicing ratio compliance. cooling measures fluence buyers’ decisions. According to the De- Alternatively, it could be made mandatory for Tis the season to be jolly, but the property “I wish the government would be more in tune partment of Statistics’ household sector balance financial service providers to provide monthly market is in the doldrums. For our Christmas to the impact that some of the measures have sheet data, the liabilities-to-assets ratio has been statements for bank financing purposes within special, The Edge Property polled stakehold- on the livelihood of those in the real estate on an uptrend in recent years, rising from 15.1% three days of a client’s request. TDSR could be ers for their wishes that will, in their opinion, and related service industries, and recalibrate in 1Q2011 to 16.7% in 3Q2015”. This respondent relaxed for people with high income or busi- help improve the health of the property mar- some of the measures to improve transaction also wished that the government would reduce ness owners to allow them greater flexibility ket. The open-ended poll invited participants volumes. The service industry has been hit the upcoming government land sales supply to in leveraging and access to funds to create em- to submit up to three wishes that are action- hard because of the measures and transaction avoid a waste of resources on building units that ployment,” he added. able and can be adopted as genuine feedback volume is as important to the market as the would remain empty, as occupancy rates are ex- Ryan Khoo, co-founder and director of Alpha by the following groups: the government, de- price component,” said Alan Cheong, head of pected to fall to a decade low. Marketing, also wished for the government to velopers, analysts, property agents and con- research and consultancy at Savills Singapore. Paul Ho, chief mortgage consultant at iCom- work with the Malaysian government to explore sumers. The participants could choose to have Amid the clamour, an industry stakeholder, pareLoan, wished for the government “to coor- out-of-the-box solutions that would address Sin- ‘their responses aggregated and kept anonymous who opted to remain anonymous, wished for the dinate a bureau where information such as car gapore’s overly high property prices with Malay- or grant permission to be quoted. The wishes cooling measures to remain and continue to rein loan and credit card statements can be shared sia’s abundant land and benefit the citizens of have been collated, with the key themes pre- in home prices, stating that “household debts in a better manner”. “Buyers currently need both countries. He noted that “affordable hous- sented below. have not come down to meaningful levels and to undergo onerous paperwork submission to CONTINUES NEXT PAGE EP2 • THEEDGE SINGAPORE | DECEMBER 28, 2015 THEEDGE PROPERTY COVER STORY EDITORIAL EDITOR | Ben Paul ‘Analysts should be more upfront about their forecast’ THE EDGE PROPERTY HEAD OF RESEARCH | Feily Sofi an ANALYSTS | Esther Hoon, Lin Zhiqin, Tan Chee Yuen FROM PREVIOUS PAGE ing is a large untapped segment in Malaysia and COPY-EDITING DESK | Elaine Lim, Evelyn Tung, Chew Ru Ju, Iskandar is close enough for Singapore developers Tan Gim Ean, Choy Wai Fong to operate in. This would be beneficial to Johor and PHOTO EDITOR | Samuel Isaac Chua Singapore in the long term, as it encourages more PHOTOJOURNALIST | Bryan Tay EDITORIAL COORDINATOR | of the Malaysian workforce to live [in Iskandar] and Rahayu Mohamad commute to Singapore for work”. DESIGN DESK | Tan Siew Ching, Adrian Seow, investment director of Savills Sin- EDGE SINGAPORE CHUA/THE SAMUEL ISAAC Christine Ong, Monica Lim, Nik Edra, Mohd Yusry, Henry Lee gapore, wished that the government would “con- sider more favourably change-of-use proposals on ADVERTISING + MARKETING select sites within strategic localities, such as the HEAD | Edward Stanislaus civic district and Tanjong Pagar, away from office GROUP SALES MANAGER | Cecilia Kay use. This will make them more diverse and vi- SENIOR MANAGER | Windy Tan MANAGERS | Mabel Wong, brant as places for work-live-play.” Danna Pusta, Elaine Tan Dear developers, please adjust prices THE EDGE PROPERTY GROUP SALES MANAGER | Cowie Tan Several respondents wished for developers to ad- SENIOR MANAGERS | Diana Lim, just their prices to stimulate demand and clear Cheryann Yeo the unsold inventory. According to an academic, ACCOUNT MANAGER | Ken Tan who wished to remain anonymous, this would EVENTS MARKETING also “prevent an upward price spiral and lower Seow of Savills Singapore wished the government would ‘consider more favourably change-of-use proposals on SENIOR MANAGER | Sivam Kumar EXECUTIVE | Gerald Aw homeownership costs that have grown too high, select sites within strategic localities, away from office use’ too fast”. The same respondent also wished that DIGITAL MARKETING ASSISTANT | Tim Jacobs developers would “build developments that are ter the 30-year mortgage? How much goes into be simple and easy to build a better reputation”. COORDINATOR | Nor Aisah Bte Asmain more liveable, sustainable and environmentally that and interest payment, and what will be left Goh of Ascendant Assets and CoAssets hoped CIRCULATION friendly. [This is] to show that we can have de- for long-term investment, retirement, children’s that agents would “be able to give more holis- MARKETING velopers that look at the greater good of society education and other essential spending”? The re- tic investment advice, so that consumers would MANAGER | Coleman Lim OPERATIONS while making sufficient profit”. spondent also wished for analysts to “highlight be able to make more informed property invest- MANAGER | The wish was echoed by an analyst who hoped the oversupply situation in all segments of the ment decisions”. Alpha Marketing’s Khoo wished Cesar Banzuela De Jesus, Jr EXECUTIVES | Keith Lee, that developers would “start building homes that market, as the government has not come to terms that agents would “be more like analysts, rath- Malliga Muthusamy, Sandrine Gerber are meant for staying and not just for investment, with the supply situation and developers are still er than just doing sales, as buyers will become which would help minimise a future mismatch taking risks by bidding up land prices and selling more discerning and real estate agency is one in- CORPORATE CHIEF EXECUTIVE OFFICER | Ben Paul of expectations between investors who are sell- homes at unsustainable price levels”. dustry where a significant portion can be auto- MANAGING DIRECTOR | Edward Stanislaus ing and buyers”. Separately, two respondents from academ- mated or outsourced. This would also grow the CORPORATE AFFAIRS DIRECTOR | With regard to the retail segment, the analyst ia expressed a wish for analysts to make reports skills of agents to help them value-add to clients”. Ng Say Guan hoped that the developers would spare a thought and proprietary data and information more read- Savills’ Seow submitted a wish for “property PUBLISHER for the retailers who are struggling with high rent- ily available to the masses, so that everyone can agents to be recognised for outstanding profes- The Edge Publishing Pte Ltd 150 Cecil Street #08-01 al costs, as “we do not need another boring mall have access to the same information and the mar- sionalism, so that the market would know who Singapore 069543 with the same old tenant mix that can cope with ket will become more efficient. One academic to look for for their real estate needs”. Tel: (65) 6232 8622 the high costs simply because they are big. We wished for more analyst coverage on the impact Fax: (65) 6232 8620 need to reinvent our retail malls to stay ahead of of foreign exchange on the property market, to Dear consumers, please be wiser PRINTER the competition among regional players or we are grow awareness of the global dynamics on prop- “I wish that consumers would be less suscepti- KHL Printing Co Pte Ltd going to fall behind, and this would eventually erty as an investment class. 57 Loyang Drive ble to marketing gimmicks and focus on basic in- Singapore 508968 hurt our economy”. Getty Goh, CEO of Ascendant Assets and vestment principles, and also realise that there are Tel: (65) 6543 2222 The analyst’s third wish for the developers CoAssets, hoped that analysts would “research no guaranteed investments. This will reduce the Fax: (65) 6545 3333 was for them to “take more calculated risks over- on alternate forms of real estate investments, in- chances of them getting into failed investments. seas because Singapore should never be a safe cluding real estate syndication and crowdfunding, They should also subscribe to the principle of ‘in- We welcome your comments haven where the government will always step in as more people are investing in such alternative vest a little, diversify a lot’ to help mitigate the and criticism: propertyeditor.sg@ bizedge.com to help businesses if they don’t thrive. We need instruments and there is a growing demand for risks of a total loss and enjoy more sustainable more home-grown companies to venture out and such research and analysis”. returns on investment,” said REMS Advisors’ Tan. Pseudonyms are allowed but please away from the comfort zone”.