25 Jun 2024
Monthly Developer Sales for May 2024
Property Insight

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

  

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:

  

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.  

 Click here for the full report  

 

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

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Property Insight
02 Sep 2024
1H2024 Singapore Rental Market Insights: School Proximity and Pricing Trends

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.

Click

here

for the full report  

  

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

Property Insight
20 Aug 2024
Singapore's HDB Resale Market: Essential Info on New LTV Limits and First-Time Buyer Grants

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.

 Click

here

for the full report  

  

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

Property Insight
19 Aug 2024
National Day Rally 2024 Commentary: Top Takeaways and Analysis

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.

Click

here

for the full report

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

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