11 Jul 2024
The Luxury Property Market 1H2024 Review & Outlook
Property Insight

Resilient 1H2024 Growth in CCR Non-Landed Property Market

In the first half of 2024, the non-landed property market in the Core Central Region (CCR) showed resilient growth despite a slight moderation in the second quarter. Prices in the CCR adjusted by 0.2% in 2Q2024, following a 3.4% increase in 1Q2024. Overall, non-landed prices in the CCR rose by 3.2% during the first half of 2024, significantly outpacing the 0.8% increase seen in the first half of 2023. This growth was likely driven by an increase in transactions at the $10 million and above price point, highlighting the robustness and potential of the non-landed property sector in the CCR.

Top-Selling New Project Launches in CCR for 1H2024

The best-selling new project launches in the CCR for the first half of 2024 included:

• 19 Nassim: Sold 35 units at a median price of $3,334 per square foot (psf).

• Watten House: Sold 33 units at a median price of $3,246 psf, attributed to its location in a sought-after Good Class Bungalow neighborhood.

• Klimt Cairnhill: Sold 32 units at a median price of $3,402 psf.

• One Bernam: Sold 16 units at a median price of $2,690 psf.

• Enchanté: Sold 9 units at a median price of $2,821 psf.

The scarcity of new project launches within the CCR has fueled a healthy level of interest among buyers and investors.

Skywaters Residences Leads High-Value CCR Launches in 1H2024

High-value new launch condominiums, particularly those priced at $10 million and above, saw notable transactions in 1H2024. Key developments included:

• Skywaters Residences: Achieved a record price of $47.3 million ($6,100 psf) for a unit, setting a new benchmark for luxury living.

• 32 Gilstead: Transacted three units at prices around $14.5 million.

• Watten House: Continued strong performance with units sold around $11.8 to $12.2 million.

These transactions underscore the enduring appeal of premium properties to wealthy foreign investors, with Skywaters Residences capturing significant interest due to its exclusive residential experience and prime location.

Underlying Presence of High-Value Resale Condo Transactions in 1H2024

The resale condominium market in 1H2024 also saw significant transactions, particularly those exceeding the $10 million threshold. Notable transactions included:

• The Ritz-Carlton Residences Singapore, Cairnhill: Two units sold for $16.5 million each ($5,397 psf).

• St Regis Residences Singapore: Sold a unit for $14 million.

• Hilltops, The Marq On Paterson Hill, Ardmore Park, and 3 Orchard By-The-Park: All saw high-value transactions.

These sales highlight the continued demand for luxury resale properties in prime locations.

Modest Increase in Foreign Purchases of Non-Landed Properties in 2Q2024

Foreign purchases of non-landed properties increased modestly in 2Q2024, rising from 21 units in 1Q2024 to an estimated 45 units. This marks the highest number of units purchased by foreigners since 2Q2023. Despite higher Additional Buyer's Stamp Duty (ABSD) rates, foreign buyers continue to be significant players in the property market, reflecting the enduring appeal of the CCR segment.

Outlook

The outlook for the CCR market in the second half of 2024 remains cautiously optimistic. The positive performance in the first half, coupled with high-value transactions and gradual growth in foreign buyer interest, suggests a resilient market. Upcoming projects like One Sophia/The Collective at One Sophia are expected to attract significant interest due to their prime locations and excellent accessibility. Investors and buyers are encouraged to stay attentive to market trends and emerging opportunities, particularly in high-value segments. The CCR's premium properties, with their strategic locations and exclusive amenities, are likely to maintain their attractiveness to both local and international buyers.

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.

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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.

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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