SRI - Singapore Realtors Inc.

25 Nov 2024

What to Expect from Singapore’s Private Residential Market in 2025

Property Insight

The private property market in Singapore demonstrated contrasting dynamics in 2024, characterized by a "tale of two halves." The first half of the year experienced muted sales activity, with 1,889 units (excluding ECs) sold. This was attributed to limited new launches and a high-interest rate environment, which dampened buyer confidence. However, the second half of 2024 is estimated doubling of sales, reaching 4,000 to 4,500 units. This was driven by a significant rate cut by the US Federal Reserve, which improved financial conditions and reinvigorated buyer sentiment.

Key large-scale residential developments, such as Chuan Park and Emerald of Katong, were notable performers. These projects demonstrated the strong appeal of strategic locations, effective marketing campaigns, and well-integrated facilities. Together, they set benchmarks for sales momentum, with over 800–900 units each, showcasing developers' confidence in meeting market demand.

The outlook for 2025 appears positive, supported by steady interest rates and a robust pipeline. Anticipated launches such as The Orie, Marina View Residences, and Parktown Residence are expected to sustain buyer interest, reflecting renewed confidence in Singapore's property market. Additionally, the EC segment is poised for a strong year, with three major developments contributing an estimated 2,030 units—the highest number since 2016.

The number of private residential completions is expected to moderate in 2025, from 9,103 units in 2024 to 5,348 units—an adjustment of 41%. This tightening supply is likely to influence property prices and rental demand positively. The constrained supply, coupled with steady demand from HDB upgraders transitioning to private resale properties, is expected to sustain resale activity. Transactions in the resale market are projected to range between 11,000 and 13,000 units.

Overall, the private property market is well-positioned for growth in 2025, with new home sales forecasted at 7,000 to 8,000 units. The favourable combination of economic growth, stable employment, and adaptable buyer sentiment will continue to support the market’s recovery, ensuring robust activity in both new launches and the resale segment.

Click here for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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December 2024 Sees Year-on-Year Growth in Private Home Sales

Residual momentum from November's robust developer sales activity carried into December 2024, a typically quieter month for real estate transactions. Developers sold 203 new residential units (excluding Executive Condominiums or ECs), a significant 92.1% month-on-month moderation from November's revised figure of 2,560 units. The moderation can be attributed to seasonal factors, such as the festive period and year-end school holidays, which usually see reduced market activity.

Despite the lower monthly figures, December 2024 reflected a marked improvement year-on-year, with a 50.4% increase in units sold compared to December 2023. This represents the strongest December sales since 2021, underlining recovering buyer confidence amid stabilizing market conditions. A key contributor to this outcome was the carry-over effect from November's strong sales momentum, sustaining interest even during the traditionally subdued holiday season.

Novo Place, an EC project, led December’s sales with 158 units sold at a median price of $1,647 per square foot (psf), highlighting the sustained appeal of ECs, particularly among first-time buyers and upgraders. Hillock Green and The Myst followed with 19 and 17 units sold, respectively, demonstrating strong demand for projects in the Outside Central Region (OCR). The Myst developers strategically released units in December, capturing buyer interest during a quieter period and maintaining market focus on their project.

Developers are optimistic about early 2025, with anticipated launches like The Orie, Bagnall Haus, and The Collective at One Sophia expected to drive increased activity. These projects are strategically positioned ahead of Chinese New Year to capture market momentum, offering diverse options for first-time buyers, upgraders, and investors. As the market transitions into the new year, the alignment of supply and demand is expected to support continued recovery and buyer interest.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

Property Insight

GLS Tender Analysis: Future Residential Developments in Bukit Panjang and Tengah

The tender results for the Government Land Sales (GLS) sites at Dairy Farm Walk and Tengah Garden Avenue underscore competitive bidding and robust market interest.

Dairy Farm Walk:

The top bid for this residential site was $504.5 million, translating to $1,020 psf ppr, by a consortium including SNC2 Realty Pte. Ltd. This bid outperformed the second-highest offer by 23.1%, highlighting a strong commitment to develop in the area. Recent GLS projects, such as Dairy Farm Residences and The Botany at Dairy Farm, have shown exceptional sales performance, with nearly 100% unit sales, reflecting high demand in the Bukit Panjang planning area.

The location’s appeal stems from its access to natural spaces, proximity to Dairy Farm Mall, reputable schools, and connectivity to Hillview and Cashew MRT stations.

Tengah Garden Avenue:

The site, intended for residential use with commercial space on the first floor, received a top bid of $675 million ($821 psf ppr) from a joint venture between Intrepid Investments, CSC Land Group, and GuocoLand. The narrow margin of 0.7% above the second-highest bid underscores intense competition for this pioneering project in Tengah.

This marks Tengah’s first private condominium development, benefiting from a first-mover advantage in Singapore’s inaugural smart and sustainable town. This development is expected to appeal to buyers who value exclusivity, unlike Executive Condominiums (ECs) that face eligibility restrictions. Proximity to the Hong Kah MRT station and integration with Jurong Region Line connectivity enhances its attractiveness, alongside its strategic location near Jurong's second Central Business District.

Both sites represent promising opportunities in Singapore’s evolving residential landscape, reflecting strategic planning and strong buyer interest in suburban and emerging areas.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

Property Insight

Singapore's Shophouse Market Trends and Outlook for 2025

Freehold shophouse properties dominated the shophouse market in 2024, representing 69.4% of transactions. These properties remain highly sought after for their perpetual ownership and long-term security. Properties with 999-year leasehold tenure accounted for 18.1%, while 99-year leaseholds constituted 12.5% of transactions, highlighting varied investor interests.

District 8 led shophouse transactions with 33 deals, emphasizing its appeal due to its central location and vibrant commercial activities. Other notable districts included District 14 with eight transactions and Districts 1 and 2 with five transactions each, underscoring sustained demand in strategically located areas.

The rental market also showed strength, with total rental value rising from $34.9 million in the first 11 months of 2023 to $37.7 million during the same period in 2024, marking an 8.2% year-on-year growth. This increase reflects robust demand for shophouses as versatile commercial spaces, bolstered by their charm and strategic locations.

Tourism recovery played a pivotal role in boosting the market. International visitor arrivals surged from 12.4 million in the first 11 months of 2023 to 15.1 million in the same period in 2024, a 22.3% increase. This growth supported sectors like accommodation, retail, and F&B, further driving demand for commercial shophouse spaces.

Looking ahead to 2025, the shophouse market is poised for sustained growth. Factors such as anticipated Federal Reserve rate cuts, Singapore's strong global connectivity, and its positioning as a global business hub are expected to support investor confidence. The enduring appeal of conservation properties, coupled with the continued momentum in tourism, will likely bolster demand. These dynamics position the shophouse segment as a robust and attractive asset class within Singapore’s commercial property market.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

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