02 Jul 2024
2Q2024 URA/HDB Flash Estimates
Property Insight

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.

Click here for the full report 

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

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21 Nov 2024
Faber Walk GLS Land Bid: GuocoLand Tops Tender at $900 psf ppr

The Government Land Sale (GLS) site at Faber Walk, designated for residential (non-landed) development, was awarded to GuocoLand (Singapore) Pte. Ltd., TID Residential Pte. Ltd., and Intrepid Investments Pte. Ltd. at $349.9 million, translating to $900 per square foot per plot ratio (psf ppr). This bid exceeded the second-highest by 8.9%, reflecting the developers' competitive positioning. 

The Faber Walk site has several advantages. The planned transformation of Clementi MRT station into a Cross Island Line (CRL) interchange will enhance accessibility. The upcoming completion of the CRL is expected to improve connectivity to key areas in Singapore, boosting the site's appeal among homebuyers and investors. The lack of new residential launches in the area, as seen with the sold-out projects Clavon and Ki Residences at Brookvale, presents an opportunity to meet market demand.

Resale activity in the Clementi planning area has risen significantly, with non-landed and landed property transactions increasing by 20.6% and 14.3%, respectively, from January to October 2024 compared to the same period in 2023. This trend suggests a growing pool of upgraders who may be drawn to future developments at Faber Walk. The site's proximity to commercial hubs like the International Business Park and JTC Summit makes it attractive to expatriates and professionals in high-tech and industrial sectors.

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: 

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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.

Other notable projects included Pinetree Hill and Hillock Green, with steady sales across different price segments. The data reveals strong local demand, with Singaporeans making up 88.5% of total transactions. Purchases by Singapore Permanent Residents (PRs) and foreigners increased, with PRs accounting for 8.8% of sales and foreigners contributing 2.7%. Foreign buyers showed a slight rebound, marking their highest monthly purchases since May 2023.

November is set to be a dynamic month, with six new launches targeting diverse buyer needs, ranging from Chuan Park to Union Square Residences. This wave of launches aims to capture growing interest ahead of the year-end holiday season. Favourable interest rates, improved financing conditions, and strategic launch timings indicate a positive outlook for the final quarter.

This surge underscores the market's responsiveness to well-located and thoughtfully developed projects. Developers’ strategic timing, coupled with improved buyer confidence, reflects a vibrant property market poised for sustained momentum.

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Prepared By: 

Mohan Sandrasegeran 

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Email:

mohan@sri.com.sg


  

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07 Nov 2024
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.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

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