17 May 2024
Four HDB Estates - That Are Nearing Million-Dollar Deals
Property Insight

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.

Click here for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

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Additionally, Faber Walk benefits from its location near reputable schools, notably Nan Hua Primary School, which has seen high demand in recent years. Families prioritizing proximity to such institutions may find this site appealing, further driving demand for its residential units.

The Jurong Lake District's transformation into a vibrant commercial and residential hub is likely to further increase interest in western Singapore. Improved infrastructure and business developments in the region will enhance convenience and connectivity, appealing to residents seeking work-life balance near major employment centers.

The site is projected to launch at competitive prices of $2,100 to $2,300 psf. Although future competition may arise from developments like The Elta at Clementi Avenue 1, the staggered launch timelines are expected to reduce direct competition.

The Faber Walk site is well-positioned to cater to a diverse demographic, including young families, professionals, and upgraders, offering a balance of exclusivity and value. Its strategic location, combined with improving infrastructure and market demand, presents an opportunity for developers to deliver a compelling residential development.

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Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

  

  

Email:

mohan@sri.com.sg


  

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18 Nov 2024
Norwood Grand and Meyer Blue Lead October 2024 Property Market Surge

Norwood Grand and Meyer Blue Lead October 2024 Property Market Surge

In October 2024, developer sales experienced a robust increase, with 738 units (excluding ECs) sold, an 84% surge from September’s 401 units. This growth was largely attributed to the launches of Norwood Grand and Meyer Blue, which accounted for over half of the sales at 56.4%. Norwood Grand emerged as the top seller with 292 units transacted at a median price of $2,081 psf, benefiting from its strategic location near Woodlands South MRT and proximity to schools and amenities. Meyer Blue followed with 124 units sold at a median price of $3,240 psf, appealing to buyers with its prime location in the Rest of Central Region (RCR) and freehold status.

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Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

  

  

Email:

mohan@sri.com.sg


  

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EC Market Trends 2024: Price Growth and Investment Insights

Executive Condominiums (ECs) represent a unique segment in Singapore's housing market, appealing to both first-time buyers and upgraders due to their blend of public and private housing features and relative affordability. These hybrid developments have shown steady price growth, driven primarily by limited supply and strategic regulatory frameworks. For example, EC developers are only allowed to begin sales 15 months after securing a site or once foundation works are completed, whichever is sooner. This strategy helps prevent oversupply and supports price stability, ensuring ECs remain a resilient asset class.

Over the past few years, the pricing landscape for ECs has transformed. In 2022, the average price for new ECs stood at $1,329 per square foot (psf). This rose to $1,406 psf in 2023, marking a year-on-year increase of 5.8%. In the first nine months of 2024, the average price reached $1,460 psf, reflecting a more moderate 3.8% rise. These upward trends underscore the high demand for ECs, particularly among young families and upgraders seeking a bridge between public and private housing with long-term value potential.

Demand for ECs remains robust, as evidenced by impressive take-up rates in recent launches. For instance, Altura, introduced in the third quarter of 2023, reached a 95.8% sales rate. Similarly, Lumina Grand, launched in the first quarter of 2024, achieved 83.2% sales. This strong buyer interest reflects a willingness to invest at higher price points, particularly in developments that boast strategic locations and lifestyle amenities. In 2024, half of the EC units sold ranged between $1,500 and $1,600 psf, highlighting buyers' confidence in the value of these projects.

The resale EC market has also gained momentum, particularly for older ECs that have attained privatized status. Units that are over ten years old saw significant price increases, with the average price rising by 15.5% year-on-year to $1,171 psf in 2024. In comparison, newer resale ECs saw a more moderate price increase of 5.7%. Some projects, like The Dew, recorded an impressive 20.2% increase, which may be attributed to nearby new launches and proximity to popular schools. This trend emphasizes the appeal of matured ECs, especially as they become available to a broader pool of potential buyers.

In recent quarters, the price gap between new and resale ECs has narrowed, reflecting a difference of only 6.9% by the third quarter of 2024. Contributing factors include the limited supply of new ECs and the five-year Minimum Occupation Period (MOP) requirement before resale. This narrowing gap presents ECs as a structured, appealing investment, with the potential for value appreciation as they transition to full privatization.

New developments, like Novo Place at Tengah New Town, continue to attract buyer interest. Positioned near the upcoming Jurong Region Line MRT station, Novo Place benefits from enhanced connectivity and strategic location. Given the limited EC supply and successful launches in nearby areas, this development is likely to generate significant interest among potential buyers.

Overall, ECs have maintained their position as a desirable housing choice within Singapore’s real estate market. Their unique status, regulatory-backed supply alignment, and consistent demand from both new and resale markets ensure ECs remain attractive to buyers. Combining affordability, strategic location, and capital appreciation potential, ECs present an enduring appeal for many Singaporeans.

Click

here

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

  

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