SRI - Singapore Realtors Inc.

21 Feb 2024

Navigating the Property Landscape in 2024

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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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

21 Feb 2024

Entering Landed Property Arena in 2024

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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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

21 Feb 2024

Luxury Property Market Outlook 2024

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

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics