The 3Q2024 URA and HDB Flash Estimates highlight key trends in Singapore’s real estate market during the third quarter of 2024. The private residential property index recorded a moderation of -1.1% in 3Q2024, contrasting with a 0.9% increase in 2Q2024. For the first nine months of 2024, prices moderated by 1.1%, a stark contrast to the 3.9% growth in the same period in 2023. This moderation was influenced by several factors, including the Hungry Ghost Festival, September school holidays, and limited new launches. Additionally, fewer high-value transactions (especially those priced above $10 million) likely contributed to the slower price growth.

Despite these challenges, the new launch market remained resilient. New home sales in 3Q2024 are expected to reach 1,072 units, a 47.9% quarter-on-quarter growth. The bulk of this growth was driven by the Outside Central Region (OCR), where sales jumped by 65.0%. This strong performance reflects buyer preference for more affordable housing options in areas outside the city center. In contrast, the Core Central Region (CCR) saw a 33.3% decline in sales due to fewer launches.

As buyers anticipate interest rate cuts from the US Federal Reserve, market sentiment may improve. The reduction in borrowing costs could lead to a resurgence in demand, particularly for upcoming projects like Norwood Grand and Meyer Blue. These projects are strategically positioned to benefit from renewed market activity.

The HDB resale market continued to show robust growth. Flash estimates indicate a 2.5% rise in resale prices for 3Q2024, slightly higher than the 2.3% increase seen in the previous quarter. Over the first nine months of 2024, HDB resale prices have risen by 6.8%, compared to 3.8% during the same period in 2023. Larger flat types, particularly 4-room and 5-room units, and newer flats (with leases starting from 2013) have driven this growth. These newer flats saw price increases of 3.7% between 2Q2024 and 3Q2024, reflecting their continued popularity among buyers.

A significant rise in million-dollar HDB transactions was also noted, with approximately 331 such deals in 3Q2024, up from 236 in 2Q2024. However, the impact of the cooling measures introduced in August 2024, including the reduction of the Loan-to-Value limit for HDB loans, is not yet reflected in these figures. The full effects of these policies are expected to become evident in late 4Q2024 or beyond.

As the market approaches the final quarter of 2024, the outlook for both the private and HDB resale markets remains cautiously optimistic. While demand for larger and newer flats continues to support price growth, buyers are encouraged to exercise prudence, considering long-term affordability and the evolving market landscape

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The September 2024 GLS (Government Land Sales) commentary outlines the tender results for two key sites: Tampines Street 94 and Media Circle.

Tampines Street 94

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This site, zoned for mixed-use residential and commercial development, attracted six bids. The top bid came from a joint venture between Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd, offering $668.3 million (equivalent to $1,004 per square foot per plot ratio (psf ppr)). The second-highest bid by Sing Holdings Residential Pte. Ltd. was just 1.9% lower at $655.6 million ($985 psf ppr), highlighting competitive bidding despite a cautious market.

The keen interest in this site demonstrates continued demand for strategically located mixed-use parcels, offering both residential and commercial potential. The proximity to amenities and the Tampines West MRT station enhances its appeal. Recent mixed-use projects, like J’den, which saw over 80% of units sold at launch, indicate strong market demand. The upcoming Executive Condominium (EC) at Tampines Street 95 is expected to further increase foot traffic and commercial viability for the development, making it an attractive proposition for developers and investors alike.

The Tampines Street 94 development also benefits from its location within a residential area dense with HDB blocks, ensuring a ready customer base for its commercial offerings. Situated near educational institutions like Temasek Polytechnic, St. Hilda’s Secondary School, and others, the site is ideal for families. Given the market conditions, the expected launch price is projected to range between $2,200 to $2,300 psf, aligned with the Outside Central Region (OCR) median price of $2,107 psf as of Q2 2024. This site’s launch could be influenced by the earlier-launched Tampines Avenue 11 project, potentially setting price expectations for buyers.

Media Circle

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This site, located within the one-north Mediapolis precinct, was tendered for residential use (specifically for long-stay serviced apartments) with commercial space on the first storey. It attracted only one bid, submitted by Frasers Property in collaboration with Padawan MC Pte Ltd and Empire One North Property Pte Ltd, for $120.1 million ($461 psf ppr).

Frasers Property, known for its experience in serviced apartments, sees potential in the site's strategic location, close to media and technology job hubs within the vibrant Mediapolis area. This contrasts sharply with the lack of interest in the Upper Thomson Road (Parcel A) site, which also included a serviced apartment component. The one-north area's connectivity and appeal to expatriates and professionals looking for convenience and proximity to work explain the interest in Media Circle.

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In August 2024, developers sold a total of 208 units, excluding Executive Condominiums (ECs), marking a significant month-on-month decline of 63.6% from July's 571 units. This drop in sales aligns with the Hungry Ghost Festival, a period traditionally associated with reduced home-buying activity due to cultural beliefs. The sales volume during this month was the lowest since February 2024, when only 153 units were sold during the Chinese New Year period. Year-on-year, new home sales in August 2024 reflected a 47.2% drop from the 394 units sold in August 2023.

Despite the overall decline, the Outside Central Region (OCR) remained a bright spot, contributing 59.1% of the total sales. Projects such as Hillock Green, Lentor Hills Residences, and Hillhaven were among the key contributors. The Rest of Central Region (RCR) accounted for 31.3% of sales, while the Core Central Region (CCR) made up 9.6%. The OCR's continued strong performance highlights the demand for more affordable housing in non-central locations, attracting a mix of first-time homeowners and upgraders.

Tembusu Grand, located in the RCR, led the sales in August with 30 units sold at a median price of $2,455 per square foot (psf). Its strong performance was supported by the upcoming launch of Emerald of Katong, which boosted the neighborhood's profile. Enhanced connectivity due to new Thomson-East Coast Line stations further improved the attractiveness of the area.

The luxury property market, despite the broader market moderation, demonstrated resilience. The most notable transaction in August was a $14.7 million sale at 32 Gilstead, which was also the highest transacted freehold condominium in the first eight months of 2024. This transaction underscored the continued demand for prime properties among high-net-worth individuals, even during typically quieter periods.

Looking ahead, the market is expected to likely rebound with the conclusion of the Hungry Ghost Festival and several new project launches. Developers are strategically timing these launches to capture demand, and upcoming projects like 8@BT, Norwood Grand, and Meyer Blue are poised to drive interest. Additionally, a potential Federal Reserve rate cut could further ease global interest rates, including those in Singapore, potentially boosting buyer sentiment and market activity.

In conclusion, while August 2024 saw a slowdown in developer sales due to seasonal factors, the OCR and luxury property segments remained resilient. Upcoming launches and favourable economic conditions are expected to bolster the market in the coming months.

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The rental property market in Singapore during the second quarter of 2024 demonstrated notable trends and adjustments. The overall rental index showed a further moderation, with rental prices decreasing by 0.8% in 2Q2024, a smaller decline compared to the 1.9% drop in 1Q2024. This period also marked a stabilization in the market as rental prices in the first half of 2024 adjusted by -2.7%, a significant change from the 10.2% increase observed in the first half of 2023. The moderation can be attributed to the influx of newly completed developments entering the market, adding to the rental supply.

The number of non-landed rental contracts rose by 1.9% quarter-on-quarter, from 18,878 units in 1Q2024 to 19,558 units in 2Q2024. This increase is likely driven by the high volume of private developments completed in 2023, which have now entered the rental segment. The year-on-year growth of non-landed rental contracts in 1H2024 was 2.4%, reflecting continued demand for such properties. It is projected that the total non-landed rental volume for 2024 will fall between 78,000 and 80,000 contracts.

Newly completed developments, particularly those that obtained their Temporary Occupation Permit (TOP) recently, such as Normanton Park, Treasure at Tampines, Parc Clematis, and The M, have shown strong rental demand. Renters seem to favor newer units due to their fresh condition and minimal wear and tear.

Core Central Region (CCR) districts continued to lead in rental popularity, with District 9 securing the highest number of non-landed rental contracts in 1H2024, followed by Districts 10 and 15. These districts remain desirable among renters, underlining their prominence in the rental market.

The HDB rental market also experienced growth, with rental approvals increasing by 1.7% quarter-on-quarter from 9,398 in 1Q2024 to 9,554 in 2Q2024. A significant portion of these approvals (36.9%) were for 4-room flats, which saw the highest number of rental approvals since 3Q2023. Jurong West recorded the highest number of HDB rental transactions in 1H2024, followed by Tampines and Sengkang.

Despite the overall moderation in HDB rentals, the resale market strengthened in 1H2024, with a 6.9% increase in resale transactions compared to 1H2023. This trend indicates a shift towards resale flats among homeowners, partly due to the limited number of flats reaching their Minimum Occupation Period (MOP) in 2024.

School proximity significantly influenced rental growth in areas like Bukit Batok and Hougang, where highly sought-after schools like Princess Elizabeth Primary School and Holy Innocents' Primary School are located. The scarcity of larger flats and the high demand for school enrollment contributed to notable increases in rental prices in these areas.

Overall, the rental market in Singapore is stabilizing, supported by strategic housing initiatives from the government. These initiatives aim to alleviate rental pressures by boosting housing supply and providing targeted support for those in need, ensuring a balanced and accessible rental market for residents.

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In alignment with the National Day Rally speech, the government has introduced new cooling measures to moderate the HDB resale market and provided more detailed information on the increase in the Enhanced CPF Housing Grant (EHG) for first-time buyers of both new and resale flats. These steps reflect the government's ongoing commitment to ensuring a balanced and sustainable housing market accessible to all Singaporeans.

New LTV Limits Introduced

The Loan-to-Value (LTV) limit for HDB housing loans has been reduced from 80% to 75%, effective from 20 August 2024. This change is intended to align HDB loans with those offered by financial institutions, encouraging buyers to avoid over-leveraging in a potentially lower interest rate environment. The tightening of borrowing limits aims to manage finances more conservatively, potentially reducing the risk of market overheating.

HDB Resale Market Trends

HDB resale prices rose by 4.2% in 1H2024, compared to a 2.5% rise in the same period of 2023. The expiration of the 15-month waiting period in December 2023 allowed private property sellers to re-enter the HDB resale market, boosting demand and increasing the number of million-dollar flat transactions. Additionally, fewer Build-To-Order (BTO) exercises and reduced completion numbers in 2024 contributed to heightened competition among buyers, further driving up resale prices.

Support for First-Time Homebuyers

The government has increased the Enhanced CPF Housing Grant (EHG) to support first-time homebuyers, particularly those from lower-income groups. The maximum quantum of the EHG will be raised to $120,000 for eligible first-timer families and up to $60,000 for singles. For resale flats, first-timer families will benefit from up to $230,000 in housing grants, which include the revised EHG, a CPF Housing Grant of up to $80,000, and a Proximity Housing Grant (PHG) of up to $30,000.

Conclusion

The cooling measures, coupled with the increased support for first-time buyers, reflect a balanced strategy aimed at ensuring a resilient and inclusive housing market. The government's approach underscores its commitment to promoting financial prudence and safeguarding the long-term stability of the public housing segment, ensuring homeownership remains accessible to all Singaporeans, even in a potentially lower interest rate environment.

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During the National Day Rally 2024, Prime Minister Lawrence Wong addressed critical issues in Singapore’s housing market, highlighting the rise in housing prices due to the disruption in the construction industry during the Covid-19 pandemic. This disruption led to a bottleneck in the supply of new residential units, driving up prices. The median price of four-room HDB resale flats relative to median annual household income currently stands at 4.8, similar to 2014 levels. While high, this ratio is still lower compared to other global cities like London, Sydney, and Hong Kong.

To address these challenges, the Government has implemented cooling measures to stabilize the market and ramped up the supply of new housing. The Ministry of National Development has committed to launching 100,000 Build-To-Order (BTO) flats between 2021 and 2025, with over 80,000 units already launched as of December 2024. Efforts are also underway to reduce waiting times for BTO projects to less than three years.

Despite rising HDB resale prices, most transactions remain within affordable levels. Million-dollar transactions represent only 3.0% of all HDB resale transactions in the first half of 2024, with 41.7% priced between $400,000 and $600,000. This reflects ongoing affordability for the majority of buyers.

Prime Minister Wong announced a new flat classification system, replacing the current mature and non-mature estate categories with Prime, Plus, and Standard classifications. Flats in desirable locations will fall under Prime and Plus categories with stricter resale conditions, while Standard flats will remain more flexible. Additional subsidies will be provided to maintain affordability.

For the elderly, the government will expand Community Care Apartments (CCA), designed with senior-friendly features and integrated care services. For singles, a policy shift in 2025 will grant them similar priority access as married couples for BTO flats near their parents, recognizing the importance of family support networks.

The government also plans to increase the Enhanced CPF Housing Grant for first-time buyers, particularly those from lower-income groups, to alleviate the financial burden of homeownership.

Urban planning in Singapore continues to focus on social integration through a balanced mix of public and private housing. The government is making prime locations more inclusive by introducing public housing options in traditionally private developments. The vision for Singapore’s future cityscape includes waterfront revitalization projects such as the Kallang Alive Masterplan, Nicoll, Kampong Bugis, Marina South, and the Greater Southern Waterfront. These projects will introduce new residential and recreational spaces, making central living more accessible.

These developments are part of long-term strategic plans to enhance the quality of life and ensure Singapore’s continued success on the global stage.

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In July 2024, the new home sales market in Singapore saw a significant recovery, with 571 units sold, excluding Executive Condominiums (ECs), marking a sharp increase from the 228 units sold in June. This growth is the highest since March 2024 when 718 units were sold. Despite this rebound, the year-on-year comparison shows a 59.6% moderation compared to July 2023, indicating a moderation in the market.

The surge in sales was primarily driven by the Outside Central Region (OCR), which accounted for 77.8% of the total units sold. The OCR's strong performance was largely due to new launches such as Kassia and Sora, which together made up 45% of the total sales. Kassia, with 154 units sold at a median price of $2,049 per square foot (psf), emerged as the best-selling project. Its freehold status and strategic location contributed to its popularity among buyers. Sora followed closely with 103 units sold at a median price of $2,152 psf, benefiting from its proximity to the rapidly developing Jurong Lake District.

In contrast, the Rest of Central Region (RCR) and Core Central Region (CCR) accounted for 18.6% and 3.7% of sales, respectively. This distribution highlights the OCR's dominance in the market, driven by its more affordable pricing and the appeal of new launches.

A notable trend in July was the increase in sales of freehold properties, with 184 units sold, the highest since May 2023. This surge was largely attributed to the launch of Kassia, reflecting buyers' strong interest in rare freehold properties.

Additionally, there was a significant rise in purchases by Singapore Permanent Residents (PRs), with 67 units sold, marking the highest level since November 2023. This increase is likely driven by the growth in the PR population and continued confidence in Singapore's economic stability.

Looking ahead, a temporary dip in sales is expected in August due to the Hungry Ghost Festival, a period traditionally associated with cautious buyer behavior. Some developers may also delay new launches during this time for auspicious reasons. However, the market is expected to regain momentum with upcoming launches such as Emerald of Katong, The Chuan Park, One Sophia, and Aurea. These developments are anticipated to attract strong interest due to their desirable locations and competitive pricing, potentially driving robust sales in the coming months.

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Surge in Property Transactions

The Sentosa property market experienced a notable surge in transactions during the first half of 2024. There were 101 recorded transactions, a 74.1% increase from the 58 transactions in the same period in 2023. This growth was significantly driven by the relaunch of The Residences At W Singapore Sentosa in April, offering attractive price points and spiking interest particularly in the Sentosa Cove area, part of the Core Central Region (CCR). This area is known for its exclusive, prestigious properties that represent a high-end lifestyle and sound investment opportunities.

Price Moderation and Market Health

The median unit prices of condominiums in Sentosa saw a slight moderation in the second quarter of 2024, adjusting from $1,999 psf in Q1 2024 to $1,801 psf in Q2 2024. This adjustment indicates a balanced market and provides potential buyers with more attractive entry points. Sentosa remains a sought-after destination due to its luxurious lifestyle and prestigious properties, making it an appealing investment opportunity even amidst price moderation.

Noteworthy Transactions

Several high-value transactions were recorded in the first half of 2024, underscoring the dynamic nature of Sentosa’s property market:

• The highest transacted property was a detached house on Ocean Drive sold for $16 million ($1,844 psf) in February, yielding a 19.6% profit gain from its purchase price in 2018.

• The Oceanfront @ Sentosa Cove, a 99-year leasehold condominium, saw a transaction at $8.1 million ($1,665 psf), generating a 26.6% profit.

• The revitalized interest in The Residences At W Singapore Sentosa Cove resulted in three separate transactions at $6.1 million each for units on the sixth floor.

These transactions highlight the potential for positive returns on investment and the ongoing demand for high-end properties in Sentosa.

Outlook

Sentosa's property market offers a compelling proposition for both investors and luxury home seekers. Properties in Sentosa are not merely homes but prestigious assets that promise significant returns. The demand for high-quality residences ensures their continued value and appeal to discerning buyers. Sentosa offers a blend of serene coastal living and urban amenities, making it an ideal location for an opulent lifestyle. The immediate occupancy options, as seen with The Residences At W Singapore Sentosa Cove, are particularly attractive to buyers wishing to enjoy their investment benefits without delay.

The Green Collection

A noteworthy addition to Sentosa Cove is The Green Collection, a prestigious residential development located near the Tanjong Golf Course. Key features include:

• Luxury amenities such as gated seclusion, individual rooftop pools, a world-class gym, and an ultra-stylish function room.

• Unobstructed views of the Tanjong Golf Course, one of Sentosa Golf Club's international championship courses.

• Unique design elements like air wells, double-volume height windows, and spacious layouts.

• Architectural excellence with designs by renowned architect Rene Tan, landscape architecture by Shunmyo Masuno, and interior design by Kelly Hoppen.

The Green Collection epitomizes refined luxury, offering a unique living experience that combines sophistication, privacy, and breathtaking natural surroundings.

Conclusion

The first half of 2024 has been a dynamic period for the Sentosa property market, marked by significant growth in transactions and stable median prices. High-profile transactions and the introduction of prestigious developments like The Green Collection affirm Sentosa's status as a premier destination for luxury real estate. 

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Margaret Drive

The top bid for the Margaret Drive land parcel was submitted by Intrepid Investments Pte. Ltd., Hong Realty (Private) Limited, and GuocoLand (Singapore) Pte. Ltd at $497.0 million, translating to $1,154 per square foot per plot ratio (psf ppr). There were only two bidders for this land parcel, which may reflect developers' cautious approach due to anticipated future land releases in the Queenstown area. Developers likely adopted a wait-and-see strategy, anticipating the impact of upcoming land releases on the market, such as Media Circle (Parcel A) and Media Circle (Parcel B) in the 2H2024 GLS programme.

Margaret Drive's location, within 300 meters of Queenstown MRT station on the East-West Line, makes it highly attractive. The site is surrounded by numerous amenities, including Dawson Place, Anchorpoint, Alexandra Central Mall, IKEA, Margaret Drive Hawker Centre, and Mei Ling Market & Food Centre. It is also near several schools like Queenstown Primary School, Queenstown Secondary School, and Crescent Girls' School, potentially increasing its marketability to families.

The parcel benefits from its proximity to the upcoming redevelopment of Tanglin Halt Estate and a new Integrated Development, which will introduce additional amenities and enhance the area's appeal. This development history, combined with successful past projects like Stirling Residences, indicates strong market demand in the Queenstown planning area.

Jalan Loyang Besar (EC)

The highest bid for the Jalan Loyang Besar EC land parcel was by CNQC Realty (Progressive) Pte. Ltd. (Qingjian Realty), Forsea Residence Pte. Ltd., and ZACD Laserblue Pte. Ltd. at $557.0 million, or $729 psf ppr. This bid was just 3.4% higher than the second-highest, showing strong competition and interest among developers.

This land parcel's attractiveness stems from its potential for a new executive condominium (EC) project, particularly since the last EC launch in Pasir Ris was Sea Horizon in 2013. The extended period without new EC developments in Pasir Ris indicates potential pent-up demand for new residential options, encouraging developers to bid.

Data from URA Realis reveals an increase in HDB upgraders purchasing new EC units, with 322 units bought by buyers with HDB addresses in the first half of 2024, a 65.1% year-on-year increase. This rise in demand highlights a growing interest in ECs among HDB upgraders.

The proximity of the parcel to Downtown East, known for its diverse retail, dining, and entertainment options, and the newly opened Pasir Ris Mall, enhances the lifestyle appeal of the future development. Nearby educational institutions like Hai Sing Catholic School, Casuarina Primary School, Pasir Ris Crest Secondary School, and Pasir Ris Primary School make the location appealing to families.

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The HDB resale market saw a steady rise in transactions during the first half of 2024, with a 6.9% year-over-year increase in the number of flats sold, totaling 14,420 units. This growth in sales was paired with a rise in resale prices, which increased by 4.2% in the first half of the year. The report outlines several potential factors contributing to the robust activity in the HDB resale market:

1. Expiration of the 15-Month Waiting Period:

This policy, which ended in December 2023, had initially required sellers of private properties to wait 15 months before purchasing non-subsidized HDB resale flats. The conclusion of this waiting period likely spurred a release of pent-up demand, particularly boosting the number of transactions involving million-dollar flats.

2. Reduction in BTO and SBF Exercises:

The lack of new Build-To-Order (BTO) and Sale of Balance Flats (SBF) options, particularly with the reduction of annual BTO exercises from four to three, redirected prospective buyers towards the resale market, further inflating demand.

3. Limited Availability of Flats Reaching MOP:

Fewer flats reached their Minimum Occupation Period (MOP) in 2024 due to a drop in completion numbers five years prior, creating increased competition among buyers for available units.

4. Increased Interest in Older Flats

: Older flats, particularly those with lease commencements prior to 1990, have become more attractive due to their affordability, comprising 39.3% of the transactions in the first half of 2024. These flats cater to different buyer segments, including older buyers looking for shorter leases that align with retirement plans.

The rise in million-dollar HDB transactions was particularly notable, doubling from 208 in the first half of 2023 to 419 in the same period in 2024. This trend is attributed to sustained interest in larger and newer flats in prime locations, which command higher prices due to their desirable attributes.

Despite the high-profile nature of million-dollar deals, they represented only a small fraction (3.0%) of the overall transactions. The majority of sales occurred in the more moderate price range, with 41.7% of the transactions between $400,000 to just under $600,000. This reflects a diverse and vibrant market accommodating a broad spectrum of financial capabilities and buyer needs.

Looking forward, the HDB resale market is expected to remain resilient. The absence of a BTO exercise in August 2024 and the reduction of SBF exercises to once a year may prompt more prospective buyers to consider the resale market, especially those in urgent need of housing. This scenario is anticipated to keep prices competitive due to a balanced demand-supply dynamic.

Overall, the HDB resale market in the first half of 2024 demonstrates a healthy mix of rising demand, robust transaction activity, and a market that caters to various buyer preferences, suggesting a positive outlook for the remainder of the year.

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The private property market in Singapore exhibited mixed dynamics in the first half of 2024, according to the latest quarterly statistics. 

New Home Sales Overview

: New home sales in Q2 2024 moderated to 725 units, the lowest since Q4 2022, due to a reduced number of project launches which totalled only 634 units. The correlation between the lack of significant launches and decreased sales figures points to a strategic delay by developers, possibly aiming to optimize market conditions by spacing out project releases.

Performance by Region

: The Outside Central Region (OCR) defied the broader slowdown, accounting for 65.5% of the total new home sales in the first half of 2024, marking a significant increase and the highest share since the first half of 2021. This surge in OCR underscores ongoing demand for properties in these locales, despite overall market moderation.

Top Selling Projects

: "The Botany At Dairy Farm" led the sales in Q2 with 86 units sold at a median price of $1,994 per square foot, followed by "Hillhaven" with 63 units. The success of these projects has not only highlighted the enduring appeal of the OCR but also stimulated sales in neighboring developments, showcasing a dynamic market where the success of one project can uplift surrounding ones.

Private Resale Market

: Contrasting with the new home segment, the resale market thrived, with a 41.4% quarter-over-quarter increase in transactions in Q2, reaching the highest level since Q2 2022. This rise is attributed to recently completed developments and relaunched projects at appealing price points, which have drawn significant buyer interest.

Notable Trends in Resale Segment

: Developments like "Treasure at Tampines" and "The Residences at W Singapore Sentosa Cove" saw heightened activity, suggesting that the market for resale properties remains vibrant and responsive to quality offerings. This trend is likely to continue, driven by the availability of units completed in the previous year and compelling pricing strategies.

Market Outlook

: Looking ahead, the anticipation of new project launches in the second half of 2024 is expected to reinvigorate the new home sales market. 

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The report on the Government Land Sales (GLS) Tender Results for Canberra Crescent, De Souza Avenue, and Zion Road (Parcel B) highlights positive developer interest and investment potential in these areas, driven by strategic location, future land scarcity, and community development.

Canberra Crescent

saw three bids, with Peak Nature Pte Ltd and Huatland Development Pte. Ltd. leading at $279.0 million, translating to $793 psf per plot ratio (ppr). This reflects a 3.3% increase from the previous bid for a neighboring site, signaling positive market confidence. Developers' interest is particularly notable given the absence of upcoming land releases in the Sembawang area, positioning Canberra Crescent as a valuable acquisition amid limited future opportunities.

The location benefits from excellent connectivity and nearby amenities. Situated close to Canberra and Sembawang MRT stations and major expressways, the area offers easy access to the city and key locations. Local developments like Canberra Plaza and Bukit Canberra enhance the locale’s appeal, providing extensive retail, dining, and recreational facilities, supporting a self-sufficient community. The previous successful launches of nearby projects like The Commodore and The Watergardens at Canberra suggest a robust demand, anticipating a strong market response for future developments, potentially fetching between $1,800 to $2,000 psf.

De Souza Avenue

attracted developers with its prime location in the Rest of Central Region (RCR), fetching a top bid of $278.9 million ($841 psf ppr) from SL Capital (8) Pte Ltd. The area's appeal is augmented by its proximity to Beauty World MRT station, abundant green spaces, and reputable schools, making it attractive for family-oriented developments. The local market shows stability with positive price trends, indicating strong future potential. The manageable size of the land parcel also makes it appealing for boutique developments.

Zion Road (Parcel B)

, with its strategic urban location, drew a highest bid of $730.1 million ($1,304 psf ppr) from Valerian Residential Pte. Ltd. (Allgreen Properties Limited). This area's value is enhanced by its connectivity, situated between Great World and Havelock MRT stations, and its proximity to key shopping and lifestyle destinations. Despite the high bid, it was 34.0% lower than the neighboring parcel, suggesting a cautious market approach amid potential future land releases. 

Overall, these areas represent significant investment opportunities with their strategic locations, comprehensive amenities, and potential for substantial returns on development. The careful calibration of bids and the projected pricing strategies reflect an optimistic yet prudent market outlook, poised for growth as new developments come to fruition.

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Modest Growth in New Home Sales

In June 2024, new home sales in Singapore showed a modest growth of 2.2% month-over-month, with 228 units sold, up from 223 in May. The majority of these sales occurred in the Outside Central Region (OCR), which accounted for 57.9% of the total sales. Notable developments contributing to this increase included The Lakegarden Residences, The Botany at Dairy Farm, Hillhaven, Lentor Hills Residences, and Hillock Green. The Rest of Central Region (RCR) and Core Central Region (CCR) followed, contributing 31.1% and 11.0% to the total sales, respectively.

Increased Interest in RCR

The RCR segment saw a significant 34.0% increase in sales from May to June, rising from 53 to 71 units. This growth was driven by developments such as Tembusu Grand, Pinetree Hill, The Continuum, The Landmark, and Grand Dunman. The limited new launches and smaller-sized developments in the first half of 2024 helped sustain interest in these properties, showcasing their lasting appeal.

Best-Selling Projects

The best-selling projects in June highlighted the competitive clustering effect, where developments launched in close proximity can boost each other's sales. The Lakegarden Residences led the sales with 23 units at a median price of $2,119 per square foot (psf). Other top performers included The Botany at Dairy Farm (21 units at $1,979 psf), Hillhaven (18 units at $2,124 psf), and Lentor Hills Residences (14 units at $2,104 psf). This phenomenon is similar to the retail strategy where stores like Watsons and Guardian are located near each other to maximize foot traffic.

Luxury Condo Sales in CCR

Luxury condominium sales in the CCR remained robust, with a notable transaction involving a 4-bedroom unit at Midtown Modern, which sold for $6.7 million ($3,698 psf). The first half of 2024 saw seven new launch condominiums surpass the $10 million mark, consistent with the same period in 2023. Developments such as Skywaters Residences, 32 Gilstead, and Watten House led these high-value transactions, reflecting sustained interest in luxury real estate driven by prime locations, exceptional design, and top-tier amenities.

Upcoming Launches

The second half of 2024 is expected to see a resurgence in market interest with several new property launches. These include Emerald of Katong, The Chuan Park, One Sophia, and Aurea. These fresh offerings are anticipated to generate significant interest due to their unique characteristics and prime locations, rejuvenating the real estate scene after a period of limited new launches.

Conclusion

June 2024's developer sales insights highlight a steady growth in new home sales, driven primarily by the OCR segment. The RCR showed significant sales growth due to sustained interest in key developments. The luxury segment in the CCR continued to attract high-value transactions, reflecting the enduring appeal of prime properties. Looking ahead, the market is poised for rejuvenation with several exciting new launches anticipated in the second half of 2024. Developers and buyers alike can leverage strategic location and timing to capitalize on market dynamics and growth opportunities.

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Resilient 1H2024 Growth in CCR Non-Landed Property Market

In the first half of 2024, the non-landed property market in the Core Central Region (CCR) showed resilient growth despite a slight moderation in the second quarter. Prices in the CCR adjusted by 0.2% in 2Q2024, following a 3.4% increase in 1Q2024. Overall, non-landed prices in the CCR rose by 3.2% during the first half of 2024, significantly outpacing the 0.8% increase seen in the first half of 2023. This growth was likely driven by an increase in transactions at the $10 million and above price point, highlighting the robustness and potential of the non-landed property sector in the CCR.

Top-Selling New Project Launches in CCR for 1H2024

The best-selling new project launches in the CCR for the first half of 2024 included:

• 19 Nassim: Sold 35 units at a median price of $3,334 per square foot (psf).

• Watten House: Sold 33 units at a median price of $3,246 psf, attributed to its location in a sought-after Good Class Bungalow neighborhood.

• Klimt Cairnhill: Sold 32 units at a median price of $3,402 psf.

• One Bernam: Sold 16 units at a median price of $2,690 psf.

• Enchanté: Sold 9 units at a median price of $2,821 psf.

The scarcity of new project launches within the CCR has fueled a healthy level of interest among buyers and investors.

Skywaters Residences Leads High-Value CCR Launches in 1H2024

High-value new launch condominiums, particularly those priced at $10 million and above, saw notable transactions in 1H2024. Key developments included:

• Skywaters Residences: Achieved a record price of $47.3 million ($6,100 psf) for a unit, setting a new benchmark for luxury living.

• 32 Gilstead: Transacted three units at prices around $14.5 million.

• Watten House: Continued strong performance with units sold around $11.8 to $12.2 million.

These transactions underscore the enduring appeal of premium properties to wealthy foreign investors, with Skywaters Residences capturing significant interest due to its exclusive residential experience and prime location.

Underlying Presence of High-Value Resale Condo Transactions in 1H2024

The resale condominium market in 1H2024 also saw significant transactions, particularly those exceeding the $10 million threshold. Notable transactions included:

• The Ritz-Carlton Residences Singapore, Cairnhill: Two units sold for $16.5 million each ($5,397 psf).

• St Regis Residences Singapore: Sold a unit for $14 million.

• Hilltops, The Marq On Paterson Hill, Ardmore Park, and 3 Orchard By-The-Park: All saw high-value transactions.

These sales highlight the continued demand for luxury resale properties in prime locations.

Modest Increase in Foreign Purchases of Non-Landed Properties in 2Q2024

Foreign purchases of non-landed properties increased modestly in 2Q2024, rising from 21 units in 1Q2024 to an estimated 45 units. This marks the highest number of units purchased by foreigners since 2Q2023. Despite higher Additional Buyer's Stamp Duty (ABSD) rates, foreign buyers continue to be significant players in the property market, reflecting the enduring appeal of the CCR segment.

Outlook

The outlook for the CCR market in the second half of 2024 remains cautiously optimistic. The positive performance in the first half, coupled with high-value transactions and gradual growth in foreign buyer interest, suggests a resilient market. Upcoming projects like One Sophia/The Collective at One Sophia are expected to attract significant interest due to their prime locations and excellent accessibility. Investors and buyers are encouraged to stay attentive to market trends and emerging opportunities, particularly in high-value segments. The CCR's premium properties, with their strategic locations and exclusive amenities, are likely to maintain their attractiveness to both local and international buyers.

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Stability & Sustained Demand

In the first half of 2024, the landed property market in Singapore experienced a stable yet moderate growth trajectory. The Landed Price Index showed a 1.8% increase in the second quarter, a slight deceleration from the 2.6% growth observed in the first quarter. Overall, landed prices rose by 4.5% in the first half of the year, a slower pace compared to the 7.0% increase during the same period in 2023. This moderation reflects a balanced market with consistent demand, primarily driven by private home upgraders and high-net-worth individuals (HNWIs).

Surge in High-Value Transactions

High-value transactions in the landed property segment saw a notable increase. The number of transactions priced at $10 million and above reached 38 units in 2Q2024, up from 33 units in 1Q2024, marking the highest quarterly total since 1Q2023. This rise indicates strong demand for exclusive and luxurious residences, fueled by limited supply, investment opportunities, and the appeal of prestigious addresses.

Leading Districts and Transaction Volume

District 19 led the landed property transactions with 152 units in 1H2024, followed by Districts 15 and 28, each with 102 units. The total number of landed transactions reached 839 in the first half of 2024, up from 755 in the same period in 2023, reflecting an 11.1% year-on-year growth. The total transaction value also increased by 4.3%, reaching $4.5 billion.

Private Home Upgraders

Private home upgraders significantly contributed to the market's dynamism. In 1H2024, 710 units were purchased by this group, compared to 635 units in 1H2023. This trend was particularly strong in 2Q2024, with 390 units bought, the highest quarterly number since 3Q2022. Factors driving this surge include the desire for larger living spaces and long-term investments.

Good Class Bungalow (GCB) Market

The GCB market continued to attract HNWIs, with at least 10 caveated transactions in 1H2024. The highest transacted GCB was at Ford Avenue, sold for $39.5 million. Despite challenges such as a major money laundering scandal and high-interest rates in 2023, GCBs remained highly coveted. The GCB market's resilience underscores the strong demand for prestigious and exclusive properties, bolstered by economic stability and favourable market conditions.

Outlook for 2024

The outlook for the landed property market in Singapore remains positive for the remainder of 2024. Steady price increases, robust transaction volumes, and strong demand from private home upgraders and HNWIs are expected to sustain market resilience. Buyers' preference for larger and more exclusive residences will continue to drive demand. The market's attractiveness to HNWIs seeking long-term investment opportunities and luxurious living spaces ensures its continued growth. Stable economic conditions are anticipated to further bolster this trend.

The landed property market in Singapore demonstrates a robust and resilient performance in 1H2024, supported by sustained demand from private home upgraders and affluent buyers. This sector's stability and moderate growth underscore its appeal as a prime investment and residential choice in Singapore's real estate landscape.

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URA Property Price Index:

The private residential index for 2Q2024 increased by 1.1%, a slight moderation from the 1.4% rise in 1Q2024. This growth is primarily driven by sustained demand for high-end properties and an increase in private resale transactions, particularly from private home upgraders.

Notable Transactions:

In 2Q2024, there were at least 11 notable non-landed private property transactions exceeding $10 million, compared to six such transactions in 1Q2024. This trend underscores sustained interest in luxury units among high-net-worth buyers. Prominent transactions included Skywaters Residences ($47.3 million), 32 Gilstead, St Regis Residences Singapore, Reflections At Keppel Bay, The Marq On Paterson Hill, 3 Orchard By-The-Park, and Ardmore Park.

The high price points reflect the premium locations and limited availability of such units. Despite the moderation in Core Central Region (CCR) prices, the overall price index remains driven by these high-value transactions.

Private Resale Transactions:

Private resale transactions from buyers with a private home address increased from 1,626 units in 4Q2023 to an estimated 1,788 units in 2Q2024. 

HDB Resale Price Index:

Flash estimates from HDB indicate a 2.1% increase in resale prices in 2Q2024, up from the 1.8% rise in 1Q2024.

Average HDB Resale Prices:

• Geylang: Increased from $531.1K in 1Q2024 to $600.6K in 2Q2024 (13.1% rise)

• Marine Parade: Increased from $541.9K in 1Q2024 to $604.0K in 2Q2024 (11.5% rise)

• Central Area: Increased from $643.9K in 1Q2024 to $703.7K in 2Q2024 (9.3% rise)

• Toa Payoh: Increased from $614.6K in 1Q2024 to $658.5K in 2Q2024 (7.1% rise)

• Pasir Ris: Increased from $677.0K in 1Q2024 to $714.0K in 2Q2024 (5.5% rise)

Million-Dollar HDB Resale Transactions:

 In 2Q2024, there were 236 HDB resale transactions exceeding the million-dollar mark, up from 183 in 1Q2024. This represents a 29.0% quarter-over-quarter growth, marking the highest number of million-dollar transactions in a single quarter. The surge can be attributed to the demand for spacious accommodations and newer flats, with 96 out of 236 transactions for 5-room flats. The Kallang/Whampoa estate had the highest number of such transactions, driven by newer flats reaching their Minimum Occupation Period (MOP).

HDB Resale Volume:

The HDB resale volume marginally increased, with 7,208 resale flats transacted in 2Q2024, compared to 7,068 in 1Q2024, representing a 2.0% quarter-on-quarter growth. Despite factors such as school holidays and the final Build-To-Order (BTO) launch before a new classification system, the resale market demonstrated resilience.

Outlook:

The second half of 2024 is anticipated to attract significant interest from buyers and investors with several new launch developments in the pipeline, such as Sora, The Chuan Park, Union Square Residences, Aurea, and Norwood Grand. These projects offer diverse living options catering to various preferences and needs, enhancing the attractiveness of the new launch segment.

With fewer flats projected to reach MOP in 2024 compared to 2023, the HDB resale market is expected to remain robust, driven by the reduced availability of newer flats. The extended gap between BTO and Sale of Balance Flats (SBF) exercises is likely to prompt potential homebuyers to explore resale market options.

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Moderation in GLS Supply

The second half of 2024 sees a moderation in the Government Land Sales (GLS) programme after seven consecutive increases since 1H2021. The number of residential units on the confirmed list has been adjusted from 5,450 units in the first half of 2024 to 5,050 units in the second half, marking a 7.3% reduction. This adjustment reflects a strategic response to current market conditions, aiming to balance supply with demand amidst three consecutive quarters of increasing uncompleted unsold private residential units, which grew from 16,929 units in Q4 2023 to 19,936 units in Q1 2024.

Strategic Adjustments

The authorities' decision to moderate the GLS supply is influenced by recent property market cooling measures and a cautious sentiment among developers. This measured approach ensures that the supply of private residential units aligns with the housing requirements of the population without oversaturating the market. Additionally, the reserve list supply has been reduced by 10.7%, from 3,460 units in 1H2024 to 3,090 units in 2H2024. The combined supply from both the confirmed and reserve lists totals 8,140 units, an 8.6% decrease.

Notable Confirmed GLS Sites

Key GLS sites on the confirmed list include:

Chencharu Close: Set in Yishun, this site will contribute to the development of 10,000 new homes by 2040, with at least 80% for public housing. It is expected to be a mixed-use integrated development, enhancing connectivity and providing a comprehensive living environment.

Media Circle (Parcels A and B): Located within the One-north precinct, known for its focus on knowledge-intensive sectors, these sites aim to support the local workforce by providing housing options close to workplaces. This aligns with the area’s role in fostering innovation and economic growth.

Bayshore Road: With the opening of the Bayshore MRT station, this site has transitioned from the reserve list to the confirmed list. It is part of a broader transformation of the Bayshore area, including new Build-To-Order (BTO) flats and enhanced amenities, making it a highly attractive location.

Reserve List Sites

A significant site on the reserve list is an Executive Condominium (EC) at Woodlands Drive 17. This marks the first EC site in Woodlands since the Northwave project in 2016, highlighting a key development for the area.

Market Outlook

The strategic moderation of the GLS supply aligns with current market dynamics, ensuring a balanced supply that meets demand. The real estate market in Singapore is closely tied to various factors, including economic conditions, market fluctuations, and regulatory changes. The authorities' measured approach aims to provide a stable and sustainable housing market, supporting economic stability and growth.

Overall, the 2H2024 GLS Programme reflects a cautious yet strategic response to evolving market conditions, ensuring that the supply of residential units aligns with demand while supporting the ongoing development of key areas in Singapore. This approach underscores the importance of adapting to market trends and maintaining a balanced real estate market.

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River Valley Green (Parcel A)

Tender Overview

The top bid for River Valley Green (Parcel A) was submitted by Winchamp Investment Pte. Ltd. (Wing Tai Holdings) at $464.0 million, translating to $1,325 per square foot per plot ratio (psf ppr). This bid was 4.3% higher than the second-highest offer by Hong Realty (Private) Limited (Hong Leong Group), indicating strong interest and confidence in the site's potential. The River Valley Green site is expected to yield approximately 380 units.

Location and Appeal

The site's prime location near the Central Business District (CBD), Clarke Quay, Robertson Quay, and the Great World MRT station on the Thomson-East Coast Line (TEL) enhances its attractiveness. It is also close to several educational institutions, including River Valley Primary School, Outram Secondary School, Zhangde Primary School, and Singapore Management University (SMU). These factors make the site a desirable residential area, appealing to developers looking to capitalize on high demand for housing in well-connected neighborhoods.

Market Projections

Based on data from URA Realis, the average unit prices for new non-landed properties in the Core Central Region (CCR) were around $3,190 psf in the first five months of 2024. Consequently, it is anticipated that the new launch prices for the development on River Valley Green (Parcel A) will range between $3,000 psf to $3,200 psf, reflecting the premium market positioning and expected demand for high-quality residential properties in this area.

Upper Thomson Road (Parcel A)

Tender Outcome:

No bids were received for Upper Thomson Road (Parcel A), indicating that it is likely to be included in the second half of the 2024 Government Land Sales (GLS) programme. The lack of bids reflects a more cautious approach by developers since the implementation of property cooling measures in April 2023.

Strategic Considerations

Developers are adopting a measured approach, thoroughly evaluating potential sites for market demand, project feasibility, and long-term investment returns. This strategy aims to ensure the success and sustainability of their projects. The need for more time to assess the viability of Upper Thomson Road (Parcel A) likely contributed to the absence of bids in this round.

Outlook

The strategic moderation in GLS supply, combined with cautious investment strategies, aligns with current market conditions. This approach ensures a balanced supply that meets demand without oversaturating the market, supporting stable and sustainable growth in Singapore's real estate sector.

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Overview of Singapore's Shophouse Market

Shophouses in Singapore, significant for their historical and architectural value, are a crucial part of the country's urban planning. Constructed during the 1800s and 1900s, these buildings have been renovated for modern uses while preserving their distinct architecture. Approximately 6,500 conserved shophouses exist in Singapore, mainly located in historic districts such as Balestier, Beach Road, Geylang, Boat Quay, Chinatown, Kampong Glam, and Little India. These areas offer various uses, from commercial and residential to mixed-use, making shophouses valuable assets.

Impact of Tourism on Shophouse Demand

Singapore's tourism sector showed a strong recovery in 2023, with international visitor arrivals reaching 13.6 million, about 71% of 2019 levels. The hotel industry's performance, with Average Room Rate (ARR) and Revenue per Available Room (RevPAR) surpassing 2019 levels, reflects robust tourism activity. In Q1 2024, international visitor arrivals totaled 4.35 million, a 25.6% increase from the previous quarter. Key markets driving this growth included China, Indonesia, and Malaysia.

Shophouse Transactions and Values

The demand for conservation shophouses boosted the number of transactions from 14 units in 4Q2023 to 21 units in 1Q2024. The total value of these transactions increased by 67.9%, from $107.6 million to $180.7 million. Notable transactions included the sale of a freehold shophouse at 31 Pagoda Street for $19.0 million and three adjoining shophouses in Geylang for $18.7 million.

Rental Market Dynamics

In 1Q2024, the volume of shophouse rental transactions moderated by 4.7% from the previous quarter, totaling approximately 864 transactions. However, the total leasing value increased marginally by 1.1% to $9.7 million, the highest quarterly rental value since 1Q2023. Median monthly rentals for shophouse transactions increased to $6.43 psf in 1Q2024 from $6.36 psf in 4Q2023.

Future Outlook and Strategic Shifts

The demand for shophouses is expected to remain strong, driven by positive tourism trends and the implementation of mutual 30-day visa-free travel between China and Singapore. International visitor arrivals are projected to reach 15 to 16 million in 2024, with tourism receipts estimated at $26.0 to $27.5 billion. The restoration of flight connectivity and positive travel demand trends provide a stable foundation for growth.

Additionally, property cooling measures introduced in April 2023, such as increased Additional Buyer's Stamp Duty (ABSD) rates, have made commercial properties like shophouses more attractive investments. Shophouses that are entirely commercial are not subject to ABSD, benefiting foreign investors and Singaporeans who already own property.

Conclusion

The report highlights the resilience and attractiveness of Singapore's shophouse market. Despite potential global economic headwinds, the positive economic recovery and robust tourism sector are expected to sustain demand for shophouses. Investors, including family offices, are likely to continue considering shophouses as viable investment options. The unique historical and architectural value of shophouses, combined with their limited supply, ensures their continued appeal in Singapore's real estate market.

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Overview of the Singapore Office Market

The office market in Singapore is a vital component of the national economy, functioning as a hub for business operations, professional services, and corporate headquarters. In recent years, the market has undergone significant changes driven by economic shifts, technological advancements, and evolving work patterns. Singapore's dynamic and globally connected city environment continues to attract multinational corporations and startups, fostering a vibrant business ecosystem.

Impact of the Global Pandemic

The global pandemic accelerated the adoption of flexible work arrangements, leading companies to reassess their office space requirements. This has influenced the demand and supply dynamics of office spaces. Additionally, government initiatives, such as the decentralization strategy and the enhancement of business districts, have impacted the office market.

Economic Growth and Sector Performance

In Q1 2024, Singapore's economy grew by 2.7% year-on-year and 0.1% quarter-on-quarter. The real estate sector, specifically, showed a year-on-year growth of 0.6%. Significant growth was observed in sectors such as Information & Communications (6.3%) and Finance & Insurance (6.5%), driven by increased demand and higher transaction volumes.

Office Space Prices and Transactions

Office space prices showed signs of moderation, with the URA office price index indicating a reduction in the rate of price adjustments. Key transactions in the first four months of 2024 included significant deals such as the $33.3 million sale of a 21st-floor office unit at Vision Exchange in Jurong Gateway. This building is notable for its high-quality specifications and modern amenities.

Office Rentals and Vacancy Rates

The URA office rental index showed a moderation in office rents in the Central Region, with a slight decrease in Q1 2024. However, median monthly rentals increased in the Central Area and Outside Central Region. The volume of office rental transactions grew by 9.5% quarter-on-quarter, with a significant increase in the total leasing value. The island-wide vacancy rate for office space tightened from 9.9% in 4Q2023 to 9.6% in 1Q2024.

Future Outlook and Strategic Shifts

Businesses are exploring strategies such as moving out of prime locations, repurposing buildings, or investing in tech-enabled work environments. According to the Business Expectations Survey, business outlook remains positive, with a notable improvement in hiring demand. The number of business entities grew by 4.0% in the first four months of 2024.

Flexible Work Arrangements

Starting from December 2024, all employers in Singapore must consider formal requests for flexible work arrangements (FWAs). These guidelines aim to promote work-life balance while acknowledging that not all roles are suitable for FWAs. Employers are not obligated to approve every request, and the guidelines are not intended to influence business decisions regarding hiring practices or locations.

Conclusion

The report provides valuable insights into the current state and future outlook of the Singapore office market. It highlights the importance of understanding market dynamics, economic growth, rental trends, and policy impacts for strategic decision-making in the evolving office landscape of Singapore.

This summary aims to equip stakeholders with crucial information to navigate the office market effectively, ensuring informed business planning and investment decisions.

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Economic Boost in Q1 2024

In the first quarter of 2024, Singapore's economy saw substantial growth fueled by significant events and international performances. The Singapore Airshow, held in February, along with concerts by Coldplay, Mayday, and Taylor Swift, attracted numerous visitors, contributing to economic expansion. The retail trade sector grew by 2.7% year-on-year, recovering from a 0.3% contraction in the previous quarter. This growth was driven by higher sales volumes of motor and non-motor vehicles. Similarly, the food and beverage services sector grew by 1.1% year-on-year, rebounding from a 1.5% contraction, driven by increased sales at food caterers, cafes, and food courts.

Retail Space Market Dynamics

Retail space prices increased by 1.8% in Q1 2024, up from 1.2% in Q4 2023, reflecting strong demand. Despite a reduction in the number of retail spaces from 85 units in Q4 2023 to 62 units in Q1 2024, the overall value of retail transactions also declined from $175.3 million to $107.8 million. However, the first four months of 2024 showed a positive trend, with a 23.9% year-on-year increase in retail space transactions and a 34.8% increase in total transaction value compared to the same period in 2023.

Significant Retail Transactions

Notable transactions in early 2024 included the sale of a unit at Royal Square at Novena for $11.0 million ($4,121 psf) and a ground-level unit at Lucky Plaza for $10.5 million ($15,242 psf). These transactions underscore the high value and demand for strategically located retail properties in Singapore.

Retail Rental Market

Retail rental rates saw a slight moderation of 0.4% in Q1 2024. The moderation in rental rates was influenced by evolving tenant demand, consumer behavior trends, and strategic pricing by property owners. Despite the overall moderation, the Outside Central Region (OCR) experienced a significant increase in median monthly rentals, rising by 10.6% quarter-on-quarter to $21.77 psf in Q1 2024. This growth highlights robust demand in suburban areas driven by increased consumer footfall and expanding retail activities.

Retail Space Occupancy and Vacancy Rates

The volume of retail rental transactions moderated by 21.5% quarter-on-quarter in Q1 2024, with the total leasing value also decreasing by 24.6%. The occupied retail space increased by 8,000 square meters, while the stock of retail space expanded by 19,000 square meters. Consequently, the island-wide vacancy rate of retail space rose to 6.7% from 6.5% at the end of the preceding quarter, indicating a slight increase in available retail space.

Outlook

The continued recovery in air travel and tourism is expected to support growth in tourism-related sectors, including retail trade and food & beverage services. The Singapore Tourism Board (STB) anticipates international visitor arrivals to reach between 15 to 16 million in 2024, generating $26.0 to $27.5 billion in tourism receipts. This influx of visitors is likely to drive up retail sales, particularly in key shopping districts and tourist areas. New hotel openings, enhanced experiences at integrated resorts, and a vibrant array of leisure activities will attract more visitors, increasing foot traffic and spending in retail establishments.

Overall, the anticipated growth in tourism, combined with strategic developments in the retail industry, presents a promising outlook for Singapore's retail sector in 2024.

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Overview of New Home Sales

In May 2024, new home sales, excluding Executive Condominiums (ECs), moderated to 221 units sold from 301 units in April. This decrease is attributed to fewer major new launches, with units launched

dropping from 278 in April to 248 in May, a 10.8% decline. Developers have strategically spaced out project launches to maximize impact and ensure optimal sales performance, generating anticipation among potential buyers. 

New Launch Pipeline

The outlook for new launches in the second half of 2024 remains positive, with several notable projects set to attract a wide range of buyers and investors. Key upcoming developments include Sora, Emerald of Katong, The Chuan Park, One Sophia, and Aurea, among others. These projects will offer diverse living options, catering to various preferences and needs, and are expected to inject fresh momentum into the market. Larger developments like Emerald of Katong and The Chuan Park, with over 800-900 units, are anticipated to significantly boost market activity. 

Top Selling Projects in May

• Lentor Hills Residences: Sold 25 units at a median price of $2,164 psf. 

• Hillhaven: Sold 23 units at a median price of $2,099 psf, benefiting from a spillover effect due to high demand for The Botany At Dairy

  
  

  Farm. 

High-Value Transactions

The first five months of 2024 saw at least seven new condo sales exceeding $10 million, compared to five such transactions in the same period in 2023. 

Notable transactions included:

• Watten House: Sold units at $12.2 million, $11.8 million (two units), with prices ranging from $3,457 to $3,576 psf. 

• 32 Gilstead: Sold units at $14.5 million and $14.4 million, priced at around $3,455 psf. 

• Skywaters Residences: Achieved the highest price at $47.3 million ($6,100 psf), purchased by a foreign buyer. 

Market Insights

Despite the moderation in overall foreign home purchases, there remains a strong interest from high-net-worth foreign buyers. This is exemplified by the Skywaters Residences transaction, highlighting the appeal of premium properties to affluent international purchasers. 

Conclusion

The Singapore real estate market continues to demonstrate resilience and adaptability. The strategic spacing of project launches, combined with a robust pipeline of new developments, is expected to sustain market momentum. High-value transactions and strong demand for luxury units reflect the presence of high-net-worth buyers, both local and international. The market's positive outlook for the second half of 2024 is bolstered by diverse new projects that cater to a broad spectrum of buyers and investors, ensuring continued interest and activity in Singapore's property market.  

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 The GLS commentary on the tender result for the Holland Drive land parcel provides a comprehensive analysis of the market dynamics and potential development prospects in this high-demand area of the Core Central Region (CCR). 

Key Points from the Report:

Tender Overview:

The highest bid for the Holland Drive site was $805.4

million by Holly Development Pte. Ltd., translating to $1,285 psf per plot ratio (PPR). This was followed by Intrepid Investments and Hong Realty at $765.3 million ($1,221 psf PPR), and Japura Development at $632.0 million ($1,008 psf PPR). The bids indicate cautious optimism among developers towards the CCR segment. 

Location and Accessibility:

The site is advantageously located near the Holland Village

MRT station, providing excellent connectivity to the Circle Line. This proximity enhances the appeal of the site, promising convenience and accessibility to future residents. 

Demand and Development Potential:

The parcel has a maximum gross floor area of 626,723 square feet, potentially accommodating around 680 residential units. The area's appeal is boosted by nearby developments such as One Holland Village Residences, which sold out after its launch in 2019, indicating strong market demand. 

Neighborhood and Amenities:

Holland Drive is near significant business nodes like

Biopolis and Metropolis, key hubs for biotechnology and research, which could attract professionals from these sectors. The location is also surrounded by robust retail amenities like The Star Vista and Rochester Mall, enhancing

lifestyle and convenience for potential residents. 

Unique Selling Points:

The vibrant lifestyle enclave of Holland Village, known for

its lively nightlife and eclectic mix of dining and shopping options, adds a significant lifestyle appeal to the area. This aspect is particularly attractive to young professionals and families alike. 

Educational Institutions:

The vicinity is home to reputable schools such as Fairfield Methodist Primary School, Henry Park Primary School, and Anglo-Chinese School (Independent), increasing its family-friendly appeal. The planned opening of ACS (International) Elementary near Holland Village in 2026 further boosts this

attribute. 

Market Projections:

Given the historical performance of new launches in the

Holland area, such as One-North Eden and Blossoms By The Park, which have shown strong sales, the Holland Drive parcel is expected to be highly sought after.

The projected launch prices for properties on this land parcel are anticipated to range from $2,800 psf to $3,200 psf, aligning with current market conditions and ensuring competitive positioning. 

Conclusion:

The Holland Drive land parcel presents a multifaceted

opportunity for development in a well-established and highly desirable neighborhood. Its strategic location combined with the vibrant cultural and lifestyle offerings of Holland Village positions it as a potentially successful residential project that could attract a diverse range of buyers and renters.

Developers bidding on this site are likely poised to capitalize on the sustained demand and limited new unit availability in this sought-after area. 

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In the first quarter of 2024, the Housing Development Board (HDB) resale market demonstrated a robust performance with a significant uptick in activity. A total of 7,068 HDB resale flats were transacted during this period, marking an 8.0% increase from the previous quarter. This surge is the highest since the third quarter of 2022, driven largely by heightened demand for larger living spaces, particularly executive and 5-room flats, which saw sales increases of 15.3% and 14.2% respectively.

The resale market dynamics were also influenced by the significant portion of transactions involving older flats, with those having lease commencements from 1990 or earlier accounting for 38.8% of total sales. This shift is indicative of a growing buyer preference for more spacious and mature property options.

Notably, the market saw a record number of million-dollar transactions, with 185 flats selling for over a million dollars each—a 39.1% increase from the previous quarter. This rise in high-value sales coincided with the expiration of a 15-month waiting period for private property sellers transitioning to non-subsidized HDB resale flats, introducing a new pool of buyers into the market.

Despite these high-value transactions, the million-dollar transactions still represented a small fraction (2.7%) of the overall market activity, with the majority of transactions occurring in the more modest price range of $400,000 to $600,000, comprising 42.7% of the sales.

In terms of pricing, while there was a notable volume of high-value transactions, the average unit price of these deals saw a decrease, adjusting from $1,409 per square foot in the last quarter of 2023 to $1,320 in this quarter, reflecting a 6.3% quarter-over-quarter moderation. Similarly, the highest unit price also decreased from $913 to $891 per square foot, indicating a downward adjustment in prices despite the growth in transaction volume.

Looking ahead, the market is poised for interesting developments with the June Build-To-Order (BTO) exercise, which will be the last one before a new classification system is implemented in October. This system will categorize flats into Standard, Plus, and Prime, potentially influencing buyer decisions. The introduction of the new Chencharu estate in Yishun during this exercise is expected to attract prospective homeowners, especially those interested in newly developed areas.

However, with the removal of the August BTO exercise, extending the wait until October, and the Sale of Balance Flats (SBF) exercise scheduled only once a year with the next occurrence in February 2025, potential buyers in urgent need of housing might increasingly turn to the resale market. This shift could sustain or increase the demand within the resale sector, particularly among those seeking immediate housing solutions. This period of transition in the public housing landscape offers unique opportunities and challenges, likely influencing the trajectory of the HDB resale market in the upcoming quarters.

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In the first quarter of 2024, the private property market exhibited signs of stabilization and sustained growth, particularly in new home sales and private property prices. New home sales increased by 6.6% quarter-over-quarter, with the total reaching 1,164 units sold. This growth was predominantly driven by sales in the Outside Central Region (OCR), which accounted for 71% of total sales, highlighting a robust demand in this segment.

Notable new developments such as Lentor Mansion, Lumina Grand, Hillhaven, The Arcady At Boon Keng, and Lentoria played a significant role in revitalizing the market. Lentor Mansion topped the sales chart with 408 units sold at a median price of $2,269 per square foot, showcasing the positive reception to new guidelines emphasizing liveable space in property measurements. Lumina Grand also saw substantial activity, with 370 units sold, underscoring a vibrant market for new launches.

Overall, private property prices saw a modest increase of 1.4% in 1Q2024, with a notable interest in properties priced between $1.0 million and $2.0 million. This price bracket, particularly highlighted by Lentor Mansion’s sales, reflects a market trend favoring affordable luxury. The landed property segment also experienced growth, particularly in the $4.0 million to $7.0 million range, indicating a strong market for premium landed homes.

The implementation of a 60% Additional Buyer's Stamp Duty (ABSD) for foreigners, up from 30%, has significantly moderated foreign participation in the market, making room for a greater proportion of local buyers. Singaporeans now constitute 82.4% of the private property purchases, a significant increase that suggests a shift towards a more locally-driven market.

Resale transactions, although experiencing a slight decrease of 5.0% quarter-over-quarter, saw an annual increase of 2.6%. The relaunch of Cuscaden Reserve at more attractive price points contributed to this interest, attracting both investors and regular buyers. Additionally, the rental market has seen an uptick, particularly in newly completed developments such as Normanton Park and Treasure at Tampines, indicating a preference among renters for newer units.

Looking ahead, the market is expected to maintain its positive trajectory, supported by a steady demand for new property launches and the successful introduction of new developments. Factors such as potential adjustments in interest rates could further enhance the attractiveness of real estate investments, indicating a promising future for the private property sector. This ongoing resilience, coupled with strategic new developments and supportive economic conditions, suggests a controlled yet positive growth in the property market amidst ongoing regulatory measures.

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The "Monthly Developer Sales for March 2024" report provides a detailed analysis of the developer sales in Singapore, highlighting a substantial recovery in the market following a quieter period during the Chinese New Year festivities.

Key Highlights from the Report:

Overall Sales Increase:

A total of 718 new private home units (excluding Executive Condominiums, ECs) were sold in March 2024, representing a 369.3% increase from the 153 units sold in February 2024. This significant jump is largely attributed to the post-festivity return of buyers and the launch of new developments.

Regional Sales Breakdown:

The sales were robust across all regions with the Outside Central Region (OCR) witnessing the most dramatic rise, selling 605 units in March compared to 58 in February, a 943.1% month-over-month increase. The Core Central Region (CCR) and the Rest of Central Region (RCR) also saw increases in sales, though more modest.

Impact of New Launches:

New developments, particularly Lentor Mansion and Lentoria, were pivotal in driving the sales with these two accounting for 65.3% of the total units sold. Lentor Mansion was especially successful, selling 409 units at a median price of $2,269 psf.

Top Selling Projects:

Following Lentor Mansion, other notable sales included Lentoria with 60 units sold at $2,129 psf and The Botany at Dairy Farm selling 33 units at $2,030 psf. Projects in the Lentor Hills estate, such as Lentor Hills Residences and Hillock Green, also featured prominently among the top sellers.

Record Prices:

Watten House in the CCR recorded the highest transaction price for the month, with a penthouse unit selling for $11.8 million, or $3,457 psf.

Market Outlook:

The report anticipates continued positive momentum in the new home sales market, supported by upcoming projects like The Hillshore, W Residences at Sentosa, and The Hill @ One-North. Preliminary figures suggest a quarterly increase from 1,092 units in 4Q2023 to 1,175 units in 1Q2024, indicating a sustained buyer interest.

This recovery and strong performance in March reflect a resilient and dynamic property market in Singapore, with new launches playing a crucial role in attracting both investors and owner-occupiers despite ongoing property cooling measures. The strategic release of new projects and the corresponding buyer response underscore the robust demand for quality residential options in various segments of the market.

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The Monthly Developer Sales report offers insights into the performance of the property market in the month of February, particularly focusing on new home sales and the impact of seasonal variations like the Chinese New Year.

Key Highlights and Developments:

In February 2024, developers sold 149 units (excluding Executive Condominiums, ECs), representing a 47.0% month-on-month decrease from the 281 units sold in January 2024. This decline is attributed to the Chinese New Year festivities, which typically slow down property sales due to fewer major new launches.

Sales Volume:

Only 45 units were launched in February, compared to 417 in January, marking an 89.2% reduction. The limited launches included The Myst (20 Units), 19 Nassim (15 Units), and Watten House (10 Units).

Top Performers:

Lumina Grand was the top-selling development for the second consecutive month, with 16 units sold at a median price of $1,497 per square foot (psf). It also set a new record price for an EC at $1,590 psf.

The Botany at Dairy Farm emerged as the top-selling non-landed development, with 15 units sold at a median price of $2,018 psf.

Terra Hill recorded the highest transaction of the month, selling a 5-bedroom unit for $8.05 million ($2,652 psf), the second-highest price for a new launch freehold condominium in the Queenstown area.

Market Trends:

Historical data suggests a pattern where sales dip during the Chinese New Year period but recover shortly thereafter. For instance, after a sales increase in February 2023 post-January festivities, and a similar uptick in March 2022 following the February celebrations.

Outlook:

An increase in new home sales is anticipated in March, driven by the launch of new developments like Lentoria and Lentor Mansion. The planned staggered TOP dates for projects in the Lentor area aim to gradually increase population density, ensuring infrastructure and community amenities develop in sync with residential growth.

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The report on "Four HDB Estates - That Are Nearing Million-Dollar Deals" provides a comprehensive analysis of the rising trend in HDB resale transactions crossing the million-dollar mark in Singapore, particularly focusing on non-mature estates.

Market Trends and Highlights:

In 2023, Singapore witnessed a 27.4% increase in million-dollar HDB resale transactions, totalling 470 deals, up from 369 in the previous year. This trend continued into the first two months of 2024, with 124 such transactions recorded, a significant increase from the 64 recorded during the same period in 2023. Despite these high-value sales, they constitute only a small fraction (1.8%) of the overall resale market.

Case Studies of Non-Mature Estates:

The report focuses on four non-mature estates: Choa Chu Kang, Jurong West, Sembawang, and Sengkang, providing insights into their individual market dynamics and development prospects.

Sengkang: Sengkang has seen a consistent increase in maximum resale prices, reaching approximately $963.0k in early 2024. The development of amenities such as Compass One mall and Sengkang General Hospital has significantly enhanced the area's residential appeal.

Sembawang: The average maximum resale price in Sembawang was around $782.8k in 2023. Developments like the Canberra MRT station and the upcoming North-South Corridor are expected to boost property values through enhanced accessibility and connectivity.

Jurong West: With an average maximum resale price of around $900.8k in 2023, Jurong West is poised for substantial transformation, including the development of Jurong Lake District and Jurong Innovation District, which are expected to establish it as a major economic and innovation hub.

Choa Chu Kang: This area has an upward trajectory in property values, with average maximum resale prices reaching $885.9k in early 2024. Upcoming developments, such as a new integrated hospital in nearby Tengah, are likely to impact property values positively.

Future Outlook:

The analysis suggests a strong potential for the first million-dollar transactions in these estates due to continuous improvements in amenities, connectivity, and the intrinsic appeal of newer, spacious housing units like Executive Maisonettes. The expected completion of significant infrastructural projects will further enhance the liveability and desirability of these areas, potentially pushing resale values to surpass the million-dollar threshold.

This research underscores the dynamic nature of Singapore's HDB resale market and highlights the growing attractiveness of non-mature estates as residential choices due to ongoing and planned developments.

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The report on the tender results for Zion Road (Parcel A) and Upper Thomson Road (Parcel B) highlights significant insights into their respective real estate markets and development prospects within the Government Land Sales (GLS) programme.

Zion Road (Parcel A) Overview:

Zion Road (Parcel A) received a sole bid from CDL & Mitsui Fudosan at $1.11 billion, translating to $1,202 per square foot per plot ratio (psf ppr). This parcel is strategically placed within the Bukit Merah planning area and is part of a pilot program introducing a new category of serviced apartments with a minimum three-month stay requirement. This initiative aims to address the rental market's demand, particularly for those seeking longer-term accommodations.

The parcel's proximity to the 455-unit Rivière condominium, which was fully sold out, underscores the high market demand in the area. The lack of new project launches nearby further makes Zion Road (Parcel A) an attractive development opportunity. Positioned between Great World and Havelock MRT stations, its location ensures excellent connectivity, enhancing its appeal to developers.

Market trends in the Rest of Central Region (RCR), where this parcel is located, show signs of recovery with a modest increase in property prices. Given this backdrop, the expected launch prices for new properties on Zion Road (Parcel A) are projected between $3,000 and $3,300 psf.

Upper Thomson Road (Parcel B) Overview:

Upper Thomson Road (Parcel B) saw a bid of $779.56 million from GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Holdings Limited), amounting to $905 psf ppr. Like Parcel A, Parcel B forms part of the GLS program in the emerging Springleaf Precinct and offers a first-mover advantage to its developer. Its strategic location near the Springleaf MRT station on the Thomson-East Coast Line (TEL) is pivotal, especially given the area's primary characteristic of landed housing.

The last non-landed GLS site awarded in the vicinity was at Chong Kuo Road in 2018, indicating a potential pent-up demand in the area. The success of recent developments in nearby Lentor also hints at a strong market appetite for new projects in emerging locales such as Springleaf Precinct. Expected launch prices for properties on Upper Thomson Road (Parcel B) are anticipated to be around $2,000 to $2,200 psf.

Both parcels present significant development opportunities, each with unique strategic advantages that cater to specific market needs. Zion Road (Parcel A) is poised to cater to the high demand for serviced apartments, while Upper Thomson Road (Parcel B) is set to capitalize on the scarcity of new launches in its area, offering a diversification in housing types. Developers are likely to find these parcels especially lucrative given their strategic locations, anticipated market demand, and the overall positive shifts in regional property market trends.

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In the first quarter of 2024, the private residential index in Singapore moderated to a 1.5% increase compared to the 2.8% rise in the final quarter of 2023. This period, typically marked by seasonal slowdowns due to Chinese New Year and school holidays, saw a reduced number of major new project launches, leading to decreased sales transactions. Despite this, new developments like Lumina Grand, Hillhaven, The Arcady at Boon Keng, Lentoria, and Lentor Mansion drew significant attention, reflecting their unique appeal and strategic locations in the competitive market.

Transaction volumes in the private sector moderated to 3,482 units in the first quarter from 4,334 units in the previous quarter, partially due to the timing of data collection which only covered up to mid-March, not fully capturing the impact of launches like Lentor Mansion. Final data, expected by April 26, will provide a more complete picture of the market dynamics during this period.

Landed property markets remained stable, with a slight decrease in price growth from 4.6% to 3.4%. The high-value segment, particularly properties over $10 million, maintained consistent transaction numbers, hinting at a steady demand in this luxury category. The upcoming residential projects and enhancements in public transportation, such as the Thomson-East Coast Line extension, are anticipated to sustain interest and activity in both new launches and the private resale market, potentially benefiting areas like Tanjong Rhu and Marine Parade.

The public housing sector, represented by HDB resale markets, also experienced subtle growth. Prices in the HDB resale market saw a marginal increase of 1.7% in the first quarter, with a notable rise in transactions from 6,567 in the previous quarter to 6,928. This uptick is partly attributed to the expiration of a 15-month waiting period for private property sellers, enabling a new influx of buyers into the HDB resale market. Additionally, the number of million-dollar HDB transactions surged to 185 in the first quarter, marking a significant increase from both the previous quarter and year-over-year, reflecting a growing demand for larger living spaces. Notably, areas like Sengkang are approaching the million-dollar threshold, exemplifying the rising property values across Singapore.

In summary, while the private residential market saw a slight dip in sales and price growth due to seasonal factors and a lack of new launches, the market remains robust, buoyed by strategic new developments and stable interest in high-value properties. The HDB resale market, conversely, demonstrated resilience and growing appeal, particularly in the premium segment, indicating a broad-based demand for housing across different sectors in Singapore's real estate landscape.

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As Singapore transitions into 2024, the real estate landscape is poised for evolution, marked by the introduction of new BTO classifications and the completion of major infrastructure projects like theThomson-East Coast Line (TEL) expansion. These developments are expected to significantly influence property market dynamics, enhancing accessibility and potentially increasing the attractiveness of properties in the eastern region.

The government's implementation of property cooling measures in 2023, including heightened Additional Buyer's Stamp Duty (ABSD) rates for foreigners and adjustments to the Loan-to-Value (LTV) limits, aimed to temper the private property market's fervor. Despite These interventions, the private property price index exhibited modest growth, with an anticipated overall price increase of 2.5% to 3.5% for 2024. This growth reflects a stabilizing market adjusting to the regulatory changes and macroeconomic environment.

The year 2023 saw approximately 6,319 new home units transacted, a testament to the enduring appeal of Singapore's real estate amidst cooling measures and economic challenges. Leading the sales were projects like The Reserve Residences, Grand Dunman,and Lentor Hills Residences, highlighting the market's responsiveness to well-conceptualized developments. The upcoming year promises a fresh wave of property launches, anticipated to invigorate the market with a diverse array of options catering to varied buyer preferences.

An interesting trend is the gradual increase in property purchases by foreigners, despite stringent cooling measures. This uptick suggests a cautious yet persistent interest from international buyers, driven by Singapore's stable market environment. Additionally, the government's plans to release more private residential units under the Government LandSales (GLS) program indicate a proactive approach to managing supply in response to demand dynamics.

The resale market, particularly for HDB flats, has remained vibrant, with significant transactions and a slight increase in resale price index, pointing towards a healthy demand for public housing. This sector is buoyed by factors like the introduction of stricter eligibility criteria for BTO applications and enhancements to housing grants, steering some buyers towards the resale market.

Moreover, the rental sector is undergoing adjustments with the introduction of policies aimed at moderating demand, including the launch of serviced apartments for those in need of interim housing solutions. These initiatives, along with the increase in the occupancy limit for larger flats, are designed to alleviate rental market pressures, providing more housing options and facilitating smoother transitions for tenants awaiting the completion of their permanent homes.

Looking ahead, Singapore's property market is expected to continue its trajectory of steady growth and adaptation. The completion of new residential units, both public and private,over the next few years will likely have a balancing effect on the rental market, accommodating the housing needs of a growing population and maintaining the city-state's appeal as a prime location for living and investment.

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In 2024, Singapore's landed property market is poised to experience continued interest and growth, buoyed by its appeal as a symbol of prestige and the unique architectural diversity it offers. The market witnessed a 4.5% increase in the landed property price index in the last quarter of 2023.This uptrend underscores the robust demand for luxury and exclusivity inherent to landed properties, despite the broader economic challenges.

The year 2023 saw remarkable transactions, including a record sale at Chancery Lane and noteworthy acquisition by Sustained Land at Dyson Road,signaling vibrant markets characterized by high-profile deals and a keen interest in redevelopment opportunities.

Despite the introduction of cooling measures aimed at moderating the property market,landed property sales have shown resilience. Historical patterns suggest that sales volumes typically rebound 1 to 2 years following the implementation of such measures, driven by a combination of cautious optimism among buyers and the enduring allure of landed homes.

In 2023, the segment recorded 1,452 transactions, reflecting sustained interest despite higher Additional Buyer's Stamp Duty (ABSD) rates potentially impacting foreign investment.The stability and perceived security of Singapore's property market continue to attract the ultra-rich, with a particular focus on high-net-worth individuals (HNWIs) and new citizens who value the exclusivity and investment potential of landed properties.

Geographically, District 19 emerged as a hotspot with the highest number of transactions in2023, illustrating the diverse appeal of landed properties across Singapore's different districts. The trend of HDB upgraders moving into the landed property segment further exemplifies the aspiration for upscale living, spurred by the increasing number of million-dollar HDB resale transactions.

Good Class Bungalows (GCBs) remain the epitome of luxury living in Singapore, representing the pinnacle of the landed property market. Although transactions within this highly exclusive category saw a decrease in 2023, the market for GCBs is believed to be much more active than reported, given the privacy preferences of buyers and sellers in this elite segment. The ongoing demand for GCBs from HNWIs and new citizens underscores their status as not just luxury homes but as coveted investment opportunities, promising stability and potential appreciation in value.

Looking ahead to 2024, the landed property market is expected to maintain its momentum,with sales volumes projected to range between 1,400 to 1,500 units. This outlook is buoyed by the intrinsic appeal of landed homes as lifestyle investments that offer not only a place of residence but a statement of prosperity and a legacy asset. As Singapore continues to attract global wealth and aspires to maintain its status as a safe haven for property investments, the landed property sector is set to remain a vibrant and integral component of the nation's real estate landscape, offering both challenges and opportunities for buyers, sellers, and investors alike.

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Singapore's luxury property market enters 2024 as a beacon of resilience and exclusivity,continuing to draw high-net-worth individuals with its offer of exceptional quality and prestige despite economic shifts and property cooling measures. The Core Central Region(CCR), in particular, has been a hub of activity with an estimated 3,491 units transacted in2023, including 1,448 new home sales and 2,043 resale transactions. This robust activity underlines the segment's allure amid broader macroeconomic challenges and restrictive property measures.

Looking forward, 2024 promises an exciting phase for the CCR with several high-profile launches anticipated, including The Cairnhill, Marina View Residences, Skywater Residences, Newport Residences, and One Leonie Residences. The scarcity of recent launches in the CCR has led to pent-up demand, poised to drive healthy interest from both buyers and investors. Projections for private home transactions are optimistic, with estimates ranging between 3,500 to 4,000 units, reflecting a positive outlook for the luxury property market.

Leedon Green emerged as the best-selling new project launched in the CCR over the first 11 months, moving 131 units at a median price of $2,942 per square foot, signaling sustained interest in premium residences. The luxury market also saw significant transactions, with at least 36 resale condos exceeding the $10 million mark, including a notable sale atGoodwood Residence for $32.0 million. Such transactions underscore the enduring appeal of ultra-luxury condos, tailored to a niche clientele with distinctive tastes and the financial means to pursue such investments.

2024 also heralds the arrival of Skywater Residences, set to become Singapore's tallest building and home to its highest residence. This development is expected to captivate those seeking an unparalleled residential experience, offering luxurious living at new heights with breathtaking views across the Central Business District (CBD). Skywater Residences Epitomizes the trend towards iconic, luxury living spaces that define the city's skyline,blending opulence with a unique residential experience.

Singapore's luxury property market thus stands on the cusp of a transformative year, with demand for high-end residential spaces expected to remain strong. The market's resilience,driven by a combination of local appeal and international interest, positions it for sustained growth and dynamism. As developers ready themselves for a year of significant launches,the luxury property segment is poised to offer new opportunities for discerning buyers and investors, reinforcing Singapore's status as a premier destination for luxury real estate

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The final quarter of 2023 experienced a downturn in Singapore's private property market, with new home sales declining by 43.9% quarter-over-quarter to 1,092 units, contrasting with 1,946 units in the previous quarter. The resale segment also saw a slight decrease, with 2,831 units sold compared to 2,900 in 3Q2023, reflecting a 2.4% decline.

This period's market dynamics were influenced by a limited number of major new launches, with only three primary projects introduced: Hillock Green, J'den, and WattenHouse. This scarcity,coupled with a strategic pullback by developers and the traditional year-end sales slowdown, led to significant reduction in new home sales volume.The best-selling new launch of the quarter wasJ’Den, with 326 units sold, Hillock Green with 124 units sold and Watten House transacting 115 units.These sales figures underline the market's response to new projects despite overall lower activity levels.

An encouraging aspect of the quarter was the decrease in inventory levels of unsold units, especially in the Core Central Region (CCR) and Outside Central Region (OCR), indicating a positive absorption rate and a healthier balance between supply and demand. The inventory of uncompleted unsold units in the CCR dropped from 6,143 to 5,932 units, and in the OCR from 6,134 to 5,928 units,showcasing a robust uptake of properties, likely spurred by high-profile developments.

The Rest of Central Region (RCR) notably outperformed with a 10.9% year-over-year increase in new home sales, totaling 3,031 units in 2023, thanks to several mid-sized and larger projects that resonated well with buyers. This trend highlights the RCR's continued appeal, driven by developments with strategic locations and attractive features.

The overall rental index showed a moderation in growth, easing to 8.7% in 2023 from a significant 29.7% increase in 2022. This change is attributed to the large completion volume of private developments in 2023, with a record-setting 19,968 units (excluding ECs), which helped balance the market dynamics between housing supply and rental demand.

Looking ahead, total new home sales in 2023 reached 6,421 units, a modest decline from 2022, amid property cooling measures, challenging macroeconomic conditions, and high interest rates. The Market Is expected to stabilize in 2024, with sales activities picking up post-Chinese New Year and a series of new project launches anticipated to boost the market. The upcoming completion of private home units and the opening of Stage 4 of the Thomson-East Coast Line are likely to further enhance the property market's appeal and stability in the year ahead.

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In Q4 2023, the HDB resale market observed a slight downturn, with transaction numbers decreasing by 2.2% from 6,695 flats in Q3 to 6,547 flats. This contributed to a 4.2% year-on-year decline in resale transactions for the entire year, totaling 26,735 flats, compared to 27,896 in 2022. The report also notes a moderation in resale prices by 4.9% for 2023, a stark contrast to the 10.4% increase seen in 2022. This moderation is attributed to a combination of the holiday season's usual slowdown and the strategic timing of Build-To-Order (BTO) flat launches in October and December, which diverted potential buyers towards new housing options.

The rental segment of the HDB market experienced growth, with an 8.2% increase in approved applications for renting out HDB flats, rising from 36,166 in 2022 to 39,138 in2023. This uptick suggests a robust demand for rental housing, likely fueled by homeowners opting to rent out their flats amidst the changing market landscape.

A notable trend in 2023 was the significant presence of million-dollar HDB resale transactions, underscoring the enduring appeal of select HDB flats in certain locations. The Year saw 470 transactions exceeding the million-dollar mark, with the vast majority occurring in mature estates. This phenomenon highlights the high value placed on well-located, well-appointed public housing units, suggesting a market segment resilient to broader market shifts.

The report delves into the dynamics of flats becoming eligible for resale after meeting theirMinimum Occupation Period (MOP). A comparative analysis between 2022 and 2023 revealed a marked increase in the proportion of freshly MOP-eligible flats being sold,indicating a growing willingness among homeowners to sell their flats upon meeting theMOP requirements.

Looking forward,we anticipate a crucial role for first-time home buyers in sustaining demand within the HDB resale market. It also outlines the implications of reduced BTOlaunches and the introduction of stricter BTO application regulations, which are expected to influence buyer behavior and potentially redirect some demand towards the resale market.The changes in BTO launch frequency and the application process aim to ensure that available flats are allocated to genuinely interested buyers, thereby maintaining a balanced demand-supply dynamic in the face of decreased new flat availability.

In conclusion, while the HDB resale market in Q4 2023 saw a slight pullback in transactions and price growth, underlying trends such as the increase in rental demand and the persistence of million-dollar transactions indicate a complex interplay of factors shaping the market. The strategic adjustments in BTO launches and policy shifts are poised to influence future market dynamics, potentially steering more prospective homeowners towards the resale market as they navigate the evolving landscape of Singapore's public housing sector.

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In January 2024, the Singaporean real estate market experienced a significant resurgence in new home sales, with developers successfully selling a total of 281 units, excluding ExecutiveCondominiums (ECs), marking a substantial month-on-month increase of 108.1% from the 135 units sold in December 2023. This uptick in sales volume is particularly noteworthy as it signals a robust start to the year, reflecting a heightened interest from buyers and investors in the market.

The inclusion of EC sales further amplifies this growth, with total sales soaring to 588 units inJanuary, a sharp rise from the 152 units (including ECs) sold in the previous month. This surge in sales volume can be attributed primarily to the launch of new residential projects, namely Lumina Grand,Hillhaven, and The Arcady at Boon Keng. These projects, capturing 65.0% of the total sales (includingECs) in January, have significantly contributed to the renewed vigor in the market.

A closer look at the sales distribution across different regions reveals that the Rest of Central Region(RCR) witnessed a remarkable year-on-year increase in new home sales, with a 133.3% rise. The sales in this segment grew from 48 units in January 2023 to 112 units in January 2024. This surge is largely due to the appeal of new launches in the RCR, including The Arcady at Boon Keng, The Landmark,Pinetree Hill, The Continuum, The Reserve Residences, and Grand Dunman, which have drawn considerable attention from the buying and investing public.

Among the new launches, Lumina Grand stood out, selling 271 units and leading the pack. This,together with the performance of other developments such as Hillhaven and The Arcady at BoonKeng, signals a robust demand for new residential spaces. Hillhaven topped the charts in the non-landed development category with 64 units sold at a median price of $2,065 per square foot, whileThe Arcady at Boon Keng saw 47 units sold at $2,574 per square foot. Additionally, the luxury market showed its strength with a penthouse at WattenHouse fetching $12.2 million, or $3,576 per square foot.

Looking ahead, a temporary slowdown in sales is anticipated in February, attributed to the ChineseNew Year festivities. However, the market is expected to regain its momentum with the launch of upcoming projects like Lentoria, The Hillshore, Lentor Mansion, and Marina View Residences. Thisprojection underscores the dynamic nature of the real estate market and its resilience in the face of seasonal adjustments.

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The Government Land Sales (GLS) commentary sheds light on the highly anticipated tender outcomes for Orchard Boulevard and Plantation Close (EC), highlighting the buoyant sentiment and strategic investments in Singapore's property market. Orchard Boulevard, nestled in the prestigiousCore Central Region (CCR), attracted a winning bid of $428.3 million by United Venture Development,a testament to the location's desirability and scarcity of such prime development opportunities. Thisbid underscores the competitive nature of the tender, narrowly surpassing the second-highest bid by2.5%, reflecting developers' eagerness to secure a foothold in this elite enclave.

The Orchard Boulevard site is characterized by its exceptional connectivity, offering easy access to the vibrant Orchard Road shopping district and seamless commuting options via the OrchardBoulevard MRT station on the Thomson-East Coast Line (TEL). The strategic location, coupled with the rarity of new launches in the area, enhances the site's appeal, making it an attractive development prospect poised to cater to the nuanced demands of affluent buyers and investors looking for luxury and convenience.

On the other hand, Plantation Close in the emerging Tengah area garnered attention with a top bid of$423.4 million from Hoi Hup Realty and Sunway Developments. This reflects developers' confidence in the region's growth potential, marking it as a focal point for substantial residential development.The bid for Plantation Close (EC) signifies a strategic move by developers to establish a significant presence in this new residential hub, underpinned by the successful acquisition of adjacent sites and the area's transformative development plans.

The commentary underscores the Plantation Close site's potential to foster vibrant residential communities, leveraging its strategic location and the unique position of Executive Condominiums(ECs) in the housing market. ECs, bridging the gap between public and private housing, offer a blend of premium lifestyle amenities and future privatization prospects, making them a desirable investment for both developers and buyers. The regulated launch timeline for ECs ensures a balanced release of units, aligning with market demand and minimizing competition.

Both Orchard Boulevard and Plantation Close tenders reflect a strategic pursuit of opportunities within Singapore's diverse property landscape, from the high-end luxury market in the CCR to the growing demand for quality housing in new residential areas like Tengah. The successful bids highlight the developers' vision and commitment to contributing to Singapore's urban development,catering to the evolving preferences of residents and investors alike.

In essence, the GLS commentary on Orchard Boulevard and Plantation Close(EC) provides a comprehensive overview of the current state and potential of Singapore's property market. It showcases the strategic considerations and competitive dynamics that drive development and investment decisions in the city-state's real estate sector, illustrating the ongoing demand for both luxury living in central locales and innovative housing solutions in emerging residential communities.

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