The latest data from various Singapore’s government agencies do not look good suggesting a sluggish property market ahead.

By Khalil Adis

If you are feeling the heat from the sluggish economy, you are not alone.

In fact, chances are if you are running a business, you would have noticed more businesses rolling down their shutters since the beginning of 2019.

Meanwhile, workers are worried about job security.

Coupled with the current China-US trade war, this will have a significant impact on Singapore’s export-dependent economy and the job market.

As such Singapore’s property market is expected to be in the doldrums this year.

Here are three key indicators:

#1: Non-oil domestic exports (NODX) decreased by 15.9% in May 2019 

The latest figure from Singapore’s trade agency, Enterprise Singapore, do not look good with a decline recorded in non-oil domestic exports (NODX) due to China, Taiwan and Hong Kong in May 2019.

The drop was partly due to a sharp decline in shipments to China, following the 10.0 per cent decline in April 2019.

The national trade agency said both electronic and non-electronic exports decreased.

On a month-on-month seasonally adjusted basis, NODX rose by 6.2 per cent in May 2019, after the previous month’s 0.7 per cent decrease. 

Non-electronic NODX grew while electronics declined. 

On a year-on-year basis, total trade decreased by 2.1 per cent in May 2019.

This was after the 3.2 per cent growth in the preceding month.

Meanwhile, total imports declined by 0.5 per cent in May 2019, after the 7.6 per cent rise in the previous month. 

Total exports decreased by 3.4 per cent in May 2019, following the 0.5 per cent decline in April 2019.

The largest contributors to the NODX decrease were China (-23.3 per cent), Taiwan (-34.7 per cent) and Hong Kong (-24.8 per cent).

Overall, exports to the majority of Singapore's top markets decreased in May, except to the US.

#2: More workers were retrenched in the first quarter of 2019

With trade declining, it has had a knock-off impact on the job market.

According to a report released by the Ministry of Manpower on Thursday (June 13), more workers were retrenched in the first quarter of this year compared to the previous quarter and a year ago.

The ministry’s latest report said this increase was driven by manufacturing and affected workers in production and electronics.

For example, as of the first quarter of this year, 3,230 workers were retrenched. 

This was higher than the quarter before with 2,510 workers affected and a year ago (2,320).

The top reason cited for retrenchments was business restructuring and reorganisation.

Meanwhile, the number of job vacancies declined following seven quarters of increase.

According to the ministry, it declined from 62,300 in December 2018 to 57,100 in March 2019.

#3: Government to reduce the supply of private residential units for the second half of 2019

According to the Urban Redevelopment Authority (URA), there is a large supply of around 44,000 private housing units in the pipeline. 

This comprises around 39,000 unsold units from the Government Land Sales (GLS) Programme and en-bloc sale sites with planning approval, and an additional 5,000 units from sites that are pending planning approval. 

In addition, there are around 24,000 existing private housing units that remain vacant. 

“Given these factors, the Government has decided to reduce the supply of private residential units on the Confirmed List for the GLS Programme,” the URA said in its statement.

As such, the GLS Programme for the second half of 2019 will comprise five Confirmed List sites and eight Reserve List sites. 

According to the URA, these sites can yield about 6,430 private residential units, 92,000 sq m gross floor area (GFA) of commercial space and 1,100 hotel rooms

The five Confirmed List sites are private residential sites (including one Executive Condominium site) which can yield about 1,715 private residential units (including 480 EC units).

Summary

Singapore is a very open economy and will be the first in the region to experience the shocks arising from the ongoing trade wars.
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However, this will be mitigated by government spendings in building infrastructure projects such as the upcoming Thomson East Coast Line (TEL) and the Cross Island Line (CRL).

Meanwhile, the large supply of private residential units will favour tenants and buyers as they will be spoilt for choice.

It will also mean the rental and resale private property market will likely see a price decline due to the supply in the pipeline.

Vacancy rates for private properties will also increase.

As such, landlords will likely drop their rentals as more units come on-stream.

​Located within the Urban Redevelopment Authority's (URA) planning area of Paya Lebar Central, residential property prices in Geylang Serai have performed relatively well over the past two quarters.  

By Khalil Adis

Every year, Geylang Serai will come alive with its vibrant street bazaar. 

This year is no different but with a slight twist.

Following complaints last year that the bazaar has lost its appeal due to the invasion of many hipster food vendors, the organisers have set stricter guidelines in keeping with the spirit of Hari Raya and Malay culture.

This is certainly good news that will keep the unique culture of Geylang Serai alive for generations to come.

Since its establishment in the 1960s, Geylang Serai has become a cultural icon that is synonymous with Malay culture and customs.

Every year, Malay families will congregate here to partake in the festivity leading up to Hari Raya Aidilfitri.

With Hari Raya Aidilfitri just around the corner, we decided to check out the vibrant street bazaar at Geylang Serai to find out what makes this place tick.

​Here are the six places that have shaped Geylang Serai to where it is today.

#1: Geylang Serai Bazaar

Stretching from Sims Avenue, Tanjong Katong Road, Geylang Road and parts of Changi Road, this year's bazaar features over 500 stalls which are significantly less than previous years.

This will allow for more open spaces for the public to enjoy when breaking their fast or just for a place for the entire family to sit down after a day of shopping.

If you are looking for delicious Malay kueh and other traditional dishes, you are in for a treat.

This year, the organisers, Wisma Sri Geylang, has put a guideline requiring 60 per cent of food vendors to sell food that will appeal to Muslim visitors while the remaining 40 per cent may offer "contemporary" or "hipster" options. 

In addition, these stalls are also required to be either Muslim-owned, certified halal by the Islamic Religious Council of Singapore (MUIS) or fulfil halal criteria set by consultants engaged by the bazaar organisers. 

From carpets to baju Melayu, the street bazaar is awash in bright neon lightings when night falls.

For the best deals, come during the eve of Hari Raya Aidilfitri where most goods are sold at a deep discount from vendors eager to clear their stocks.

#2: Wisma Geylang Serai

Wisma Geylang Serai is the latest addition to the streetscape here. Launched in January 2019, this community civic and cultural centre is located in the heart of the Geylang Serai precinct housing the Geylang Serai Community Club, the South East Community Development Council, the Geylang Serai Heritage Gallery Family Service and Child Care Centre, Senior Care Centre, and cultural arts group and social/community-related facilities. 

The building draws its inspiration from traditional Malay houses with balconies (“serambi”) as well as lemongrass (where Geylang Serai takes its name from) and ketupat. The architecture features a double-pitched roof and columns that look like stilts to give Wisma Geylang Serai its own unique character.

Aside from community care, Wisma Geylang Serai is also home to eight Malay Muslim organisations and agencies to provide one-stop service to the community. They include Association of Muslim Professionals, Creative Malay Arts and Culture, Lembaga Biasiswa Kenangan Maulud, Muhammadiyah, Pergas, Tabung Amal Aidilfitri, Berita Harian and Persatuan Persuratan Pemuda Pemudi Melayu.

#3: Tanjong Katong Complex

Home to anchor tenants like First Lady and Giant, Tanjong Katong Complex is known for its loud and colourful carpet auction shows located just outside the building that has helped to draw curious tourists and locals alike. Inside, however, there are many stores selling traditional Malay wears, home decor, gold, jewellery and other accessories. 

Over the weekend, the shopping complex is a known haunt among Indonesian maids who would often camp outside the venue. Meanwhile, locals tend to congregate outside Giant supermarket in the evening to break their fast. To avoid jostling with the crowd, it is best to come early for your Hari Raya shopping.

#4: Joo Chiat Complex

​Known for its wide variety of textiles and garments, Joo Chiat Complex is a treasure trove for those who need to hunt for ready-made traditional Malay wears for both ladies and men. Established in the 1960s, Joo Chiat Complex is still going on strong today and is one of Geylang Serai’s enduring icon.

Aside from textiles, the complex boasts a number of fabric vendors selling curtains and upholstery by the metre. There are also a number of jewellery shops that are popular among Malay ladies who are eager to show off their latest bling collections. Although the shopping complex is a little run down, it is still worth checking out due to the sheer number of shops that can be found here.

#5: Sri Geylang Serai

Sri Geylang Serai is home to the Geylang Serai wet market and hawker centre. Located just opposite Joo Chiat Complex, the wet market is a popular destination among Malay households from all over Singapore as the goods are fresh yet slightly more affordable. 

In addition, the hawker centre above houses a number of famous Muslim stalls that have made Sri Geylang Serai popular among those looking for authentic Malay food. Some of the notable hawkers here include Cendol Geylang Serai, Hajjah Mona Nasi Padang and Haji Mohd Yussof Warong Nasi Baryani. Be warned though that you would most likely need to share a seat as the hawker centre is always packed.

#6: City Plaza

City Plaza is the birthplace of Arnold’s which is famed for its fresh, succulent and well-marinated chicken. This fast food restaurant began its humble beginnings from a corner shop located on the second floor here and still continues to maintain its presence there for three decades. Even today, Arnold’s continue to be packed especially during breaking fast time.

Aside from that, there are a number of thrift boutique stores selling sandals, bags and fashionable clothes. City Plaza is also a popular hangout among Indonesian maids over the weekend as there are a number of remittance outlets here. 

Summary

​According to HDB’s first quarter of 2019 data, the median transacted price for 3- and 4-room HDB flats in Geylang was S$265,500 and S$518,000 respectively. In comparison, its fourth quarter of 2018 data showed that they were transacted at S$280,000 and S$480,000 respectively. This represents a price decline of 5.2 per cent for 3-room flats while 4-room flats have strengthened to 7.9 per cent. 

Meanwhile, according to the URA’s first quarter of 2019 data, the median transacted price for apartments/condominiums in the area was S$1,157.40 per sq ft. In comparison, its fourth quarter data of 2018 showed that they were transacted at S$1,137.32 per sq ft. This represents an increase of 1.8 per cent.

On the overall, the upcoming rejuvenation of Paya Lebar Central as outlined by the URA has had a positive spillover impact on residential properties here. Some of the completed projects in the area include Paya Lebar Square and Paya Lebar Quarter 1, 2 and 3 which are all connected via link bridges. Upcoming developments that are currently being constructed are Paya Lebar Quarter Mall, Paya Lebar Quarter and Park Place Residences at Paya Lebar Quarter.

​Under the Draft Master Plan 2013, Novena is currently being transformed into Singapore’s single largest healthcare complex called Health City Novena.

By Khalil Adis

Known for its iconic Novena Church, Novena falls under the prime district 11 and is home to shopping malls, healthcare institutions, offices, apartments, condominiums and landed homes.

Over the years, Novena has been transformed into a bustling healthcare hub called Health City Novena with the addition of three new MRT stations to better serve commuters.

Here are six things to watch out for:

#1: Health City Novena

The Ministry of Health has set a target completion date by 2030 for this sprawling 17-hectare modern integrated healthcare complex that now physically links Tan Tock Seng Hospital, its medical school and all public and volunteer healthcare facilities into one.

In the next 10 years, Health City Novena will see the addition of more facilities and services which will double its built-up area from 250,000 sq m to 600,000 sq m.

#2:  Novena Medical Center

Meanwhile, a  new mixed-use development comprising a hotel, medical suites and retail shops at the junction of Thomson and Irrawaddy Roads is now open.

Called Novena Medical Center, this privately run medical facility offers a wide range of quality health care services ranging from medical aesthetics to dental surgery.

It is also linked directly to Oasia Hotel Novena for the convenience of overseas private patients to recuperate.

#3: Three new MRT stations under Downtown Line 2

To offer residents enhanced connectivity to the rest of Singapore, three new MRT stations namely  Newton, Stevens and Botanic Gardens, were opened in December 2015.

Comprising 16.6 km of train line that runs from Bukit Panjang to Bukit Timah Road, residents can hop onto the North South Line at Novena before transferring to Newton MRT interchange station to get to the downtown Singapore in 14 minutes flat via Downtown MRT station.

By 2021, residents can look forward to the addition of two more MRT stations at Mount Pleasant and Stevens via the Thomson-East Coast Line.

Stevens MRT station will be upgraded to an interchange station where commuters can hop onto the Thomson-East Coast Line towards Woodlands North or Sungei Bedok.

#4: Velocity @ Novena Square

Located directly above Novena MRT station, this sports-themed mall offers shopping, dining and beauty options as among some of its offerings. 

Home to an outdoor basketball court, sports lovers can look forward to sporting events that are held here from time to time.

Some of its anchor tenants include UOB, World of Sports, Cold Storage, Starbucks and Toast Box.

#5:  Zhongshan Park Integrated Development

The Zhongshan Park Integrated Development was conceived by its architect as a unique opportunity to rejuvenate the Balestier Conservation Area which has more than 160 years of history.

Located at Balestier Road and adjacent to the Sun Yat Sen Nanyang Memorial Hall, Zhongshan Park has now been integrated as a sprawling 39,100sqm mixed-use development comprising  Zhongshan Mall, two hotels and an office tower.

#6: 35 Gilstead

In anticipation for Novena’s rejuvenation, a new condominium development will be developed at 35 Gilstead Road.

Called 35 Gilstead,  this upcoming freehold condominium development will comprise three blocks of 5-storey residential apartments with an attic and basement, swimming pool and communal facilities.

Offering 70 units ranging from one- to three-bedroom plus penthouse, 35 Gilstead will likely appeal to parents with school-going children as it is located very close to good schools such as Anglo-Chinese School Barker Road, Catholic Junior College, Singapore Chinese Girl’s Primary and Secondary School and St. Joseph’s Institution.

Just last week, it was announced in the media that Perbadanan PR1MA Malaysia, a public housing agency which was established under the Barisan Nasional government may be dissolved as it is in a “mess”. The final decision on whether PR1MA projects should be continued is pending a due diligence report, which is expected to be completed end of this month.


For years, the PR1MA initiative has received lashbacks from various stakeholders and the general public for its inefficient implementation. 


I recall researching about PR1MA when I was writing my second book.  

The 1Malaysia People’s Housing Programme or PR1MA was launched in July 2011 and incorporated under the PR1MA Act in 2012. It became operational in March 2013 and to qualify, applicants will need to have a single or combined household income of between RM2,500 to RM15,000 per month.


I couldn’t help thinking how the hoopla around an announced PR1MA initiative usually fizzles out after some time, with no proper project updates disseminated to the public. 


For instance, under Budget 2016 that the government promised that it will build 5,000 units of houses under PR1MA and 1Malaysia Civil Servants Housing Programme (PPA1M) in 10 locations in the vicinities of light rail transit and monorail stations, including in Pandan Jaya, Sentul and Titiwangsa.


However, a quick check on PR1MA’s website does not show any such projects except for one in Brickfields, Fraser Business Park and Bukit Jalil respectively. 

​In addition, my interviews with young Malaysians while taking Grab and Uber show a great mismatch in what the government is saying – where many had said they had applied for the housing scheme, but they have yet to receive any official reply from PR1MA.

Here are some circumstances that may have led to PR1MA’s failure


#1: Lack of single housing agency to manage the affordable housing market

While on paper this may sound ideal, it is not so easy in reality as land is a state matter.

As such, federal-initiated programmes like PR1MA will likely face bureaucratic red tapes and are less likely to receive priority when applying for the release of state land.​

YB Zuraida Kamaruddin, Minister of Housing and Local Government (KPKT) recently shared that it is the responsibility of the state governments to offer up their spacious lands for the development of affordable housing. However, as of end-2018, only 27 plot of lands out of the total 127 for affordable housing projects around the country, were supplied by state governments.

Let’s not forget that the state and federal governments may have different objectives which can further complicate matters.

#3: Costly to acquire land

Considering the challenge in securing land from respective state governments, the federal government would have to acquire them from private parties at a hefty cost.


As land cost takes up a significant percentage of a project’s cost, this will inevitably drive up the cost of building affordable homes.


Thus, it is hardly surprising that previous PR1MA projects were mostly built in undesirable locations, where homebuyer demand is low.

#4: Far-flung location with sub-par connectivity

With 10,000 affordable homes in the pipeline, Bandar Malaysia is both a boon and a bane for Kuala Lumpur’s sluggish property sector. We analyse how this development will impact the market.

By Khalil Adis

The recent announcement by the Malaysian government that it is reviving the shelved Bandar Malaysia project is a piece of welcome news as it gives some clarity to investors on the status of the Kuala Lumpur-Singapore High Speed Rail (HSR) project. 

Since winning the 14th general election, Prime Minister Mahathir Mohamad had reviewed several mega infrastructure projects including Bandar Malaysia and the HSR.

In the face of the country’s mounting debt, both projects were at first announced as cancelled in May 2018.

This prompted Singapore’s Ministry of Transport to issue a statement stating that it “will wait for official communication from Malaysia”.

However, the Malaysian government backtracked on this subsequently.

Instead, it announced in June 2018 that the project was “postponed”.

This created a lot of confusion on both sides of the causeway.

After many months of speculation, the market finally received some clarity in September 2018 when representatives from both governments met in Putrajaya.

In a joint-statement, both Singapore and Malaysia announced that they had signed an agreement to suspend the project until 31 May 2020

“Malaysia will bear the agreed costs in suspending the HSR Project. If by 31 May 2020, Malaysia does not proceed with the HSR Project, Malaysia will also bear the agreed costs incurred by Singapore in fulfilling the HSR Bilateral Agreement. During the suspension period, Malaysia and Singapore will continue to discuss on the best way forward for the HSR Project with the aim of reducing costs,” the statement read.

The HSR project is now expected to commence service by 1 January 2031, instead of the original commencement date of 31 December 2026.

With Bandar Malaysia now being revived, we list down the possible implications on Kuala Lumpur’s property market.

#1: Boost for the construction sector

The construction sector is currently in the doldrums due to the lacklustre property market in Malaysia.

Loan rejections from buyers and the demand-supply mismatch mean developers are faced with unsold inventory leading to cash flow problems with contractors.

In March, for instance, Bursa listed engineering and construction company, Zeland Berhad filed a statement with the Malaysian stock exchange that it was initiating arbitration proceedings against NRY Architects for RM305.4mil and other contract breaches for the construction of buildings of International Islamic University Malaysia in Kuantan.

It also announced that it is claiming RM3.34mil in outstanding payment for construction works from BBCC Development Sdn Bhd located at the former Pudu jail near Hang Tuah monorail station.

With Bandar Malaysia now back on track, contractors will be willing to bid at a much lower price to stay afloat amid the challenging market condition.

Subcontractors will also benefit.

#2: 10,000 new housing units will likely worsen overhang in Kuala Lumpur’s property market

Initially, DBKL had announced that Bandar Malaysia will house around 30,000 affordable homes.

However, a recent announcement puts the figures to 10,000 units.

Kuala Lumpur City Hall (DBKL) had previously indicated that it has set a development guideline for developers to build such homes at around 800 sq ft but priced below MYR450,000.

Meanwhile, Bank Negara’s figures showed that 80 per cent of homes, or 146,196 units priced above RM250,000, remained unsold as of end March 2018.

While Bank Negara did not break down the figures according to each state, recent data provided by the Valuation and Property Services Department (JPPH) showed that Kuala Lumpur recorded the third highest number of residential overhang at 5,114 units.

So unless the homes are priced below RM250,000, we are likely to see Kuala Lumpur’s housing glut worsen.

#3: Boon for first-time homebuyers

Bandar Malaysia has been cited by DBKL as a case study for government and private developers in building transit-oriented development (TOD).

Bandar Malaysia will house two MRT stations – Bandar Malaysia North and Bandar Malaysia South – which will form part of the alignment for the Sungai Buloh – Serdang – Putrajaya Line (SSP Line).

Bandar Malaysia will also possibly serve as the interchange to the MRT Line 3, which has now been postponed.

If indeed Bandar Malaysia will build affordable homes according to DBKL’s guidelines, then it will be a boon for first-time homebuyers as the entry price in Kuala Lumpur is easily above RM600,000.

It will also mean young Malaysians will no longer have to buy a car first after completing their education and thus improve their chances of getting their home loans approved.

Currently, many young Malaysians are trapped in the debt cycle due to various financial commitments such as their National Higher Education Fund (PTPTN), cars, personal and credit cards loans.

So while demand is strong, loan rejections remain an issue further worsening the cash flow for developers.

#4: Bane for landlords and sellers

If indeed 10,000 new housing units will be coming on stream, Bandar Malaysia’s surrounding areas such as Pudu, Brickfields, Cheras, Bandar Tun Razak, Sungai Besi and Taman Desa will be badly affected.

As such, landlord and sellers will likely see their asking prices fall even further as consumers will soon have more choices.
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Landlords will also find difficulty in doing short-term accommodations as the Malaysian government will be regulating this market segment.

Therefore, rent-seekers and buyers are the clear winners as they are in the position to haggle for the best price.

#5: Sluggish commercial and office market ahead

​The initial projection for Bandar Malaysia stated that it will have a gross development value (GDV) of RM150 billion.
Measuring around 196 hectares, Bandar Malaysia’s master plan indicates that it will be a mixed-use development with commercial and office buildings.

With so many mega malls and office buildings in Kuala Lumpur, Bandar Malaysia will add on to more floor space in Kuala Lumpur’s already weak commercial and office markets.

Despite this, Bandar Malaysia will likely attract multinational companies to set up their operations here as it is located within the Digital Free Trade Zone (DFTZ).

Located within the Eastern Gate Development Zone of Iskandar Malaysia, Bandar Seri Alam boasts a number of good schools and is dubbed the 'City of Knowledge'.

By Khalil Adis

Bandar Seri Alam is one of Johor's best-kept secrets. 

Home to 16 educational institutions and located in between Pasir Gudang and Permas Jaya, the township has a growing young population of around 220,000.

We list down some of the attractive points about living in Bandar Seri Alam.

#1: Located in the growth corridor of Flagship Zone D of Iskandar Malaysia

Also known as the Eastern Gate, this is the third phase of Iskandar Malaysia's next growth.

There are a few catalytic projects currently happening here, namely Iskandar Halal Park (formerly known as Johor Halal Park) and the Pengerang RAPID Project.

First announced on 19 November 2015 by the former Chief Minister of Johor Dato' Khaled Nordin during the Johor Budget 2016, it is part of the state government's effort to promote entrepreneurship in Johor.

A 50:50 joint venture collaboration between UMLand and the Johor State Government via Johor Biotechnology & Biodiversity Corporation (J-Biotech), the private-public initiative aims to put it as an international halal park and is one of the catalyst projects in Eastern Iskandar Malaysia.

Recently, IHP scored a major coup among when US based-company, Chocolat Moderne from New York, picked JHP as the manufacturing site to set up its first business in Asia.

Meanwhile, the Pengerang RAPID Project will be the largest oil & gas hub in Malaysia that will create around 40,000 to 50,000 job creation in the construction industry, 400 jobs for engineers and 4,000 jobs for trained technical.

#2: Education is a recession-proof industry

One of the attractive factors about Bandar Seri Alam is it is home to a number of higher learning institutions such as Universiti Teknologi Mara campus, Universiti Kuala Lumpur campus, the Masterskill University College of Health Sciences campus as well as international schools.

While the Iskandar Puteri/Medini and Johor Bahru/Danga Bay areas boast a number of catalytic industries such as tourism and finance, they are not immune to economic down cycles.

Bandar Seri Alam is 100 per cent focussed on education, particularly among the local population.

This makes it even more attractive as education in an evergreen industry.

One of the oldest and biggest schools in Malaysia, Foon Yew High School is set to open its third campus in Bandar Seri Alam in 2021.

#3: Homes are still affordable with the potential for capital appreciation

​According to data from Brickz, prices of homes here were transacted at a median price of RM320 per sq ft from Jan 2018 to Dec 2018.

In comparison, homes in Iskandar Puteri/Medini and Johor Bahru/Danga Bay are priced at around RM900 per sq ft.

Being a relatively new township surrounded by various property booster will give room for capital appreciation for homes here.

This, plus the price point, make it suitable among first-time homebuyers.

#4: Master planned by a reputable developer

Bandar Seri Alam is one of United Malayan Land Bhd's signature projects developed by its subsidiary company Seri Alam Properties Sdn Bhd.

Thoughtfully developed across 3,762 acres by its subsidiary, Bandar Seri Alam has been planned as a self-contained township with a mix of freehold residential, commercial, industrial and hospitality offerings.

At the centre of this township lies a bustling commercial arena with various exciting and attractive retail features and green elements.

Some of the world's best brands can be found here including Starbucks, KFC, Burger King and Subway.

#5: Growing population

​Bandar Seri Alam is a thriving township which boasts a population of more than 220,000. 

As Iskandar Halal Park and the Pengerang RAPID project are currently being developed, we can expect the population to increase in the next 10 to 15 years as more jobs are being created.

As we speak, a new RM500 million Pasir Gudang Hospital will also be constructed as part of the government's announcement under Budget 2016.

​The Draft Master Plan 2019 which was announced last week and  is fast taking shape to take Singapore ahead into a vibrant yet liveable city. 

By Khalil Adis

​A decentralisation strategy to bring jobs closer to homes in the next 10 to 15 years, here are the five growth areas to watch out for:
​

Key highlights:

• A regional business hub, with office and retail developments conveniently close to new homes
• Opening of Thomson-East Coast Lines in 2019
• Woods Square: Integrated office development with retail, F&B and a childcare centre, and direct connectivity to Woodlands MRT station
• Woodlands Avenue 2: Future mixed-use development with residential, office and retail components seamlessly connected to upcoming Woodlands Thomson-East Coast Line MRT station

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Woodlands Regional Centre: Woodlands North Coast

Key highlights:

• A gateway district linking Woodlands to Johor Bahru
• Woodlands North to be an interchange station to RTS Link to Bukit Chagar
• Flexible industrial spaces for knowledge-intensive and service-oriented activities alongside manufacturing operations.

Punggol Digital District

Key highlights:

• A new smart city by 2023
• Housing technology firms involved in key growth fields as well as the new Singapore Institute of Technology Campus
• Punggol Digital District will create around 28,000 jobs
• New Punggol Coast MRT Station 
• Enhanced connectivity via the Cross Island Line (CRL) which will link it to Jurong Lake District and Changi by around 2030

Paya Lebar Central

Key highlights:

• A bustling commercial centre, with a mix of office, retail, hotel and attractive public spaces
• 500,000 sqm of commercial floor space
• Commercial hub to cater to businesses that do not need to be located within the CBD

Jurong Lake District

Key highlights:

• Jurong Lake District is the hub for commerce, retail, healthcare and tourism industries
• Jurong East will be an interchange station to the North South MRT Line, East West MRT Line and the proposed Jurong Region MRT Line
• Future Jurong Regional Line and High Speed Rail Terminus

Greater Southern Waterfront 

Key highlights:

• Spans across the southern coastline from Pasir Panjang to Marina East
• Relocation of Tanjong Pagar Terminals and Pasir Panjang Terminals to Tuas
• 1,000 ha of land will be freed up for development
• Total area of the Greater Southern Waterfront will be about 2,000 ha linking Keppel  Club and Sentosa
• New developments at Pasir Panjang Power District and the Keppel Club site in the next 5 to 10 years

Overleveraging means to commit yourself to more debts than you can handle.

Of late, there was a social media buzz that highlights this danger that apparently led a young man to commit suicide.

The young man had apparently bought several properties at a substantial discount and had hoped to generate positive cash flow from the rental.

However, in light of the severe oversupply in residential units in Malaysia as well as the very soft market, I am afraid he may have been taken advantage of by unscrupulous developers who are desperate to offload their units.

With the current market reality in Malaysia, I doubt his rental can cover his mortgage resulting in negative cash flow.

Assuming he has to top up RM1,000 per unit, that works out to RM4,000 per month.

Also, there is a possibility that the developer had priced up the unit and then sold it off at a ‘discount’ to make the buyer feel good.

However, in the resale market, valuers will take into account the current transacted value of the area and not the selling price from the developer.

Let’s do the math.

Assuming the developer had priced it at RM1,000 per sq ft and he now wants to sell the unit, valuers will value the property accordingly.

Should recent transactions show that units in the area were sold at RM700 per sq ft, he would have to sell it at a loss of RM300 per sq ft.

For a 1,000 sq ft unit, that works out to RM300,000!

Let’s not even talk about the possible commission the expert may have earned on the side from the units sold as well as from bank referral fees.

Ultimately, the one at the losing end is you.

A word of caution

I would urge consumers to do a lot of research, check the expert’s credentials and analyse if their methods make sense.

You should also conduct your own due diligence by going down on site to study the area to check if there is demand in the rental and resale market for the project that is on offer.

Find out what is the resale value current via Brickz and then compare it to how much the developer is selling it.

This will give you an estimate on how much the developer had marked up the unit.

Also, you should plan your exit strategy should you not be able to get a tenant. Can you do an Airbnb instead? Also ask yourself, “can I afford to take up so much loan?”

I would also like to remind consumers not to be easily blinded by the show of material wealth on social media.

They are most likely curated image meant to create an illusion that you too can live that ultimate lifestyle.

Live within your means, enjoy a good night’s sleep and don’t get trapped in the debt cycle.

Remember this, if it is too good to be true, it probably is.

Despite the tepid HDB resale market, Punggol has bucked the trend with a loft unit at Punggol Sapphire recently changing hands for almost a million dollars. Here are the lowdowns about living in Punggol.

By Khalil Adis

Punggol has indeed come a long way from being an ‘ulu’ area.

Once known as a rural settlement complete with kampungs and farms, Punggol has since 1998 transformed itself from a backwater area to a vibrant, modern yet green satellite district.

Amid Punggol’s oasis of calm, you can see LRT trains whirring through the residential areas, passing by the ample lush natural landscape before taking you directly to the heart of the district, Punggol Central.

While Punggol’s rustic charms may appeal to outdoor lovers, there are certain downsides about living here.

We list them down here:

The good:
#1: It’s oh so quiet

Punggol has an estimated population of 161,570 as of 2018 with a projected 96,000 housing units once the entire "Punggol 21-plus” master plan is completed.

Despite its high density, Punggol is surprisingly very quiet at night save for the traffic whizzing by the Tampines Expressway (TPE).

This is definitely good news for those wanting some peace and quiet but bad news if you want the buzz of city life.

If you still want to move to Punggol, fret not as Waterway Point has all the modern conveniences and amenities for your city living.

#2: Well landscaped parks and gardens 

Nature and outdoor lovers will revel in the many landscaped parks and gardens that Punggol has to offer, including the award-winning My Waterway@Punggol.

From the Matilda District, you can enjoy a stroll or jog by the Punggol River before reaching Punggol Dam and Punggol Point. 

This is part of the comprehensive Park Connector Network (PCN) linking the entire island.

The view is awe-inspiring and enough to make even the laziest couch potato get up and explore nature

#3: Properties here are in demand.

Being a relatively new township development with a young demographic, Punggol has proven to be popular among homebuyers as a few HDB housing projects are now eligible to be sold in the resale market.

According to the fourth quarter of 2018 data from the HDB, the Resale Price Index (RPI) fell by 0.2 per cent, from 131.6 points in the third quarter to 131.4 points in the fourth quarter in 2018. 

For the whole year, the RPI declined by 0.9 per cent in 2018.

Despite the lacklustre market, a five-room, loft unit in Punggol Sapphire was sold for S$910,888 in January 2019.

This was considered a record for an HDB flat in northeastern Singapore.

Additionally, OrangeTee & Tie's research showed that in the third quarter of 2018, Punggol was the fourth most popular area for HDB resale flats with 469 units transacted followed by Jurong West (505 units), Woodland (516 units) and Sengkang (528 units).

On the overall, resale statistics from the HDB showed that the median prices of three, four and five-room flats were transacted at S$343,000, S$455,000 and S$445,000 respectively in the fourth quarter of 2018.

#4: Comprehensive public transport network

Commuting in and around Punggol is very convenient as there is a comprehensive transport network comprising MRT, LRT and buses.

In fact, the township has been planned such that each housing estate is located within 300 m away from any LRT station.

An exception, however, is the new housing area at the Matilda district.

#5: Punggol Digital District

​Come 2023, a new smart city is set to rise in Punggol called the Punggol Digital District. Housing technology firms involved in key growth fields as well as the new Singapore Institute of Technology Campus, Punggol Digital District will create around 28,000 jobs while providing residents with more lifestyle and dining options.

In the pipeline includes the new Punggol Coast MRT Station which will be an extension of the North-East Line.

Punggol Digital District will also enjoy enhanced connectivity via the Cross Island Line (CRL) which will link it to Jurong Lake District and Changi by around 2030.

Collectively, they will act as property boosters for Punggol.
​
The bad:
#6: Lack of good hawker food

Food. That’s our favourite national past time that defines if we love or hate or neighbourhood.

Having lived in Taman Jurong, I must say I was spoilt for choice with various options of mouth-watering hawker fares such as the famous Boon Lay Power Nasi Lemak.

However, the choices have become extremely limited in Punggol unless you are into fast food.

While there are coffee shops serving local cuisines, they pale in comparison to the well-established hawker fares that you can find elsewhere.

You are better off cooking your own meals. 

#7: Dust

If you hate spring cleaning, be prepared for a rude shock.

With many construction works going on, you will find yourself dusting up every single day.

Windows, top of shelves, cupboards and other surfaces collect dust easily.

This certainly isn’t good news if you are asthmatic or are prone to allergies.

If so, you might want to invest in a good ioniser to keep your indoor air free of particles and other irritants.

The ugly:
#8: Get ready to jostle with the early morning crowd

If you think Singaporeans are a kiasu lot, be prepared to see that word taken to new heights when you commute to work in the morning.

In fact, many would play ‘musical chairs’ as they hustle for seats at on the MRT.

Meanwhile, getting a Grab or taxi would be almost impossible.

To get around this, I would leave home by 6 am and get to the office by 7 am.

#9: That acrid smell in the air

​While Punggol may be planned as a green township development, be prepared for a strong burning smell that would emanate from time to time.

Located just opposite the industrial area of Pasir Gudang, Johor, the smell has become increasingly acrid over the past few days that it will linger from night till dawn.

In fact, it can get so bad that you might have to get up in the middle of the night to close the windows.

This is something perhaps developers and HDB will not tell you.