Archive for category: Property News

Read more: HDB prices rose 1.5% in the second quarter of 2023, marking the 13th consecutive quarterly increase

The prices for apartments and condos within The Core Central Region (CCR) are under pressure due to an array of variables. Based on sales up to August 22nd, 2023, median ticket sizes of resales of condos are down by 20% when compared to April of this year.

The average size of tickets for August was $2.55 million, a huge reduction in comparison to the $3.18 million average of April, a decrease of approximately 19.8%. The most expensive transaction of August thus far one million dollars condo located at 3 Orchard-By-The-Park is a distant second to the previous ones that cost $18 million to purchase the condo at the top of Beverly Hill in July, $13 million condo in The Marq on Paterson Hill that was sold at the end of June $18.8 million for Marina One in May in addition to $18 million paid for the condo at the Sculptura Ardmore on April. In addition to the average size of tickets shrinking however, the price at the top end is also declining, indicating the declining demand for luxury, top-end condos.

But ticket size isn’t all that’s which is declining. Per sq ft (PSF) base, prices have decreased to 11%. In the current time, the average PSF for CCR condos that are resold during August was $1,981, which is down from the $2,227 PSF during April. In a month-to-month comparison this means that the PSF rate decreased by 6% between July and August.

Methodology of analysis

Before diving into the reasons for this dramatic decrease, let’s discuss the method used. This study focuses on transactions that occur in the secondary market, and excludes any new launches that could affect price and are subject to the availability (whether there are any new launches within that time). Simple averages were used in calculation. In the month of August we examined the transactions closed up to August 21, 2023 but not the whole month. We think that the patterns observed will remain similar when we take into account the whole month.

It’s the perfect recipe to CCR

What is the reason behind this recession? Three key reasons emerge. First, the introduction of the 60% additional Buyer’s Stamp Duty (ABSD) on foreign buyers in May affected the market dramatically. Foreign buyers tend to choose the most desirable locations, such as Orchard Road, and these additional levies that were introduced in April 26 have definitely decreased their enthusiasm, leading to a drop in prices from May. In actuality the amount for foreign-owned buyers nearly doubled from 112 buyers in April to just 37 in July.

Second, the market has been affected by the recent search conducted by police from the Singapore Police Force (SPF) on 10 foreign citizensinvolved in money-laundering. The suspects were found in luxury condos located in the prime areas such as Leonie Hill Road, Paterson Hill along with Tomlinson Road. Because this is a ongoing investigation, further arrests may be made.

Finally, the double tensions of rising rates of interest and a strong Singapore dollar create a tough situation for foreign buyers which tend to be drawn to central locations.

Prices remain strong in OCR and RCR and OCR, reducing the price gap to condominiums in CCR

It is interesting to note that the decline in prices in the CCR seems to be a single issue. Price increases in the Rest of Central Region (RCR) and Outside Central Region (OCR) are not only resilient, but also have shown an increase of a significant amount. The average RCR price has increased in 7.5% since January this year, ranging from $1,725 to $1,854 by August. Similar to that, OCR prices have increased by 7.7%, from $1,374 PSF to $11,480 PSF in the same time.

A key point to take note of is the dramatic decrease in the price difference in between RCR as well as CCR condos. The gap, which hasn’t been this tiny since the beginning of 2008/early 2009. During the Lehman Financial Crisis, is at present just $266 in average. These trends present a variety of challenges and opportunities for prospective homeowners as well as investors alike. Although the CCR is currently a market for buyers however, the increasing costs for both RCR and OCR indicate that there is a greater level of competition. Understanding the interplay between factors like foreign buyer taxes local incidents, as well as broader economic indicators is essential to make informed choices in this constantly changing market.

Read related post: A four-bedroom unit at The Grange sold for a new high of $3,155 per square foot

1919, a freehold condominium situated on Sophia Road in prime District 9 was the top of on the condo list that hit an increase in the price of psf between August 8 and 15. This was achieved with the sale of a 560 sq ft, one-bedroom-plusstudy unit on the fifth floor for $1.278 million, or $2,283 psf, on Aug 11. This beat the previous record of $2,233 per square foot that was set in September 2013 when a 560 sq. ft unit was sold for $1.25 million.

Based on caveats that were lodged with URA The unit that was that was sold on August 11 was purchased through the sale of developer developer on July 12, 2012, for $1.184 million ($2,115 per square foot). That’s an income of $94,000 from the sale.

1919 is a project of Aurum Land — the property development division of construction and civil engineering company Woh Hup Holdings — that was completed in the year 2015. The project consists of 75 apartments that are black and white within the Mount Sophia neighbourhood. Units start from one-bedroom-plus-study apartments of 560 sq ft, going up to three-bedders of 1,302 sq ft.

The unit that was sold on August 11 was the second resale transaction to be recorded in 1919, to this year. Before this an area of 678 sq feet unit located on the second floor was sold for $1.38 million ($2,035 per square foot) on the 17th of January.

Adana @ Thomson also hit the highest price for psf in the time period under review, by selling 560 square feet of space for $1.082 million, or $1,933 per square foot, on the 11th of August. The owner of the two-bedroom apartment situated on the fourth floor purchased the unit at the request of developer developer at the end of July for 944,200 ($1,687 per square foot) that means they gained around $138,000 from the deal. This beats the previous record for psf prices in Adana @ Thomson which was recorded in July in which a 560 square feet apartment was purchased at $1.08 million, or $1,930 per square foot.

Adana @ Thomson The Thomson a freehold condominium located located on Old Upper Thomson Road in District 20 which was completed in the year 2018. The 74-unit condo was constructed through Fortune Realty, which is also the developer of several other condos, like the 96-unit RV Suites located on River Valley Road, as along with The Mercury, which is 67 units Mercury and the 67-unit Mercury along with the RV Edge, which has 108 units. Edge located on Shanghai Road. The units located at Adana @ Thomson comprise three-, two- and four-bedders that range from 560 to 1,152 square feet.

Another project that hit an all-time high in psf prices was Flamingo Valley A freehold condo situated on Siglap Road in District 15. Three-bedroom apartments located on the fourth floor that measures 1,238 square feet was sold for $2.35 million which is equivalent to $1,898 per square foot on the 10th of August. The sale is higher than prior records of $1891 psf set in March when a 1,216 square foot unit was purchased for $2.3 million.

Flamingo Valley was developed through Frasers Property in 2014 with 393 housing units. Apartments are one- to four-bedders that range from 517 to 3,111 square feet. The development is situated at Siglap Hill, surrounded by residential neighbourhoods with landed homes, including The Opera as well as Frankel estates.

There were no new lows for the psf recorded during the period of the review.

Read more: Fernwood Towers is a three-bedroom unit for sale for $2.88 million

A stunningly designed penthouse at Marina Collection, situated on Sentosa Cove It is currently listed for sale for $8.9 million. The four-bedroom duplex covers 3,789 square feet, and the asking price translates to $2,348 per sq ft. The luxurious unit is listed by Steve Tay Real Estate (STRE) A new boutique company run by experienced realtor Steve Tay.

In addition to the opportunity to purchase a top residence situated in Sentosa Cove, homeowners are receiving more than the capital value of their penthouse. The house is equipped with a variety of furniture and fittings specifically designed to suit the distinctive design of the home and the color mix and design of the home.

The majority of the furniture that is custom-designed as well as interior designs are included within the asking price, according to Tay. In all, the owners invested around $1.5 million on renovations to the penthouse.

When the proprietor and wife purchased the penthouse around 2 years ago, the couple enlisted an interior design studio with a high-end aesthetic Elliot James Interiors. The brief for the design was focused on creating luxurious, airy and well lit living spaces as well as incorporating coastal influences from the surroundings.

The result is an incredibly unique property that is highlighted by the open layout, the curated furniture and modern design features Tay. Tay. “Coupled with a deficiency of skilled laborers, the expenses of major renovations have increased by at least two times over the last few years.” More buyers are seeking the ease of a move-in perfect, stress-free luxurious apartment, but these types of apartments are getting scarcer as the supply shrinks and Tay adds.

Amazing views of the ocean

The living area is stylishly decorated, with huge ceiling windows offering stunning perspectives of the marina as well as the ocean beyond. The penthouse also has an individual lift.

Jac Ong Senior Associate Director at STRE who is also the estate agent responsible for the sale of the penthouse states that just a few of the units in the Marina Collection enjoy unblocked views of the marina as well as the ocean. A majority of the units overlook the pool, or have views obscured by the high-rise condominiums surrounding them.

The living area is furnished with pieces of furniture that are branded with luxury like armchairs made by Italian designer Maxalto and a custom-designed coffee table made by American manufacturer JM Szymanski, and marble side tables from Eichholtz.

Living rooms are among the places that owners love to be in the home, particularly during the day, when the room is flooded with natural sunlight. Smart-control blinds can control the lighting in the space.

Efficient layout

The center of the house is the dining area as well as the open-concept kitchen. The kitchen was revamped to accommodate a huge L-shaped island. The staircase that was originally used to access the upper level was relocated into the center of the room, and then re-clad with glass to provide an uninterrupted view of the dining and kitchen areas and a spectacular wine room that houses over 300 wine bottles.

The design considerations of the layout’s new design is evident by the flow of air throughout the house, which improves the effectiveness of the living space, says Ong. “This is an extremely efficient way to use space in the 3,789 square feet of duplex. The dining area is large that it can comfortably house an Steinway grand piano.”

The dining table along with the screens and drinks trolley was designed by Elliot J. Interiors and manufactured in Singapore. The dining room chairs are by Italian company Gallotti & Radice, while the striking pendant came from UK lighting expert Bert Frank.

The second floor houses the owners’ private living area. A small living area that has a sofa leads to a private balcony and pool. There is also an master bedroom with an en suite and an ensuite bedroom that was converted to a gym and study.

The master bedroom was redesigned to include two doors, a wooden panelled walk-through wardrobe, as well as an elegant marble bathroom that includes bathtub and shower.

Self-sustaining neighborhood

“The attraction of exclusivity and the lifestyle offered by Sentosa Cove is garnering strong demand from local buyers and homeowners. It’s difficult to find a penthouse Singapore with a breathtaking views of the sea,” Ong says. Ong. Ong says that contrary to the old-fashioned belief of Sentosa Cove is far from facilities, the residential area has emerged as a self-sustaining and mature community with a wide range of eateries, cafes shops, and even supermarkets.

The caveats to sales of land-based transactions that have not been landed at Sentosa Cove over the past few years have revealed that locals account for 50% of buyers, while the rest are permanent residents and foreigners Tay says. Tay.

He also points out that since the beginning of 2022 there are 174 caveated transactions of condo units in Sentosa Cove, with just 16 penthouse units going under the hammer in the span of. Four penthouse transactions were registered in the beginning of the year, with the most recent was that of the purchase of 4,768 square foot penthouse in Cape Royale for $10.86 million ($2,277 per square foot) on May 29.

“In my opinion, Sentosa Cove condos are typically undervalued due to their unique waterfront lifestyle that they offer in comparison to luxurious residential properties in the mainland. This is especially apparent when compared with the prices that were recently announced for certain new projects located in RCR (Rest of Central Region) and OCR (Outside Central Region),” says Tay.

Although these property cooling measures that were implemented in April have slowed down purchasing interest from foreign buyers but they have also led to an increase in rental demand for penthouses and luxury homes that are high-end according to him.

Additionally, Tay has noted a rise in the number residents who are returning to Sentosa Cove market hunting for high-end properties for their personal use. These buyers are typically people with a desire to move out of their home or are looking for a change in way of life. “With the recent changes announced that many people who are deciding between mainland and Sentosa could begin to consider Sentosa Cove to be a good value possibility,” he says.

A four bedroom apartment in Equatorial Apartments is the highest-profit condo resalesale transaction in the week from August 1-8 in accordance with caveats that were filed with URA. The apartment, which was 2,497 square feet traded hands in the amount of $4.55 million ($1,822 per square foot) on the 3rd of August. It was bought from the vendor in late October of 2003 at $1.14 million ($456 per sq ft) and they earned $3.41 million. This is an investment gain of 300% over a time duration of more than 20 years.

J’Den facilities is ideal for young to large families. The commercial spaces on the first two floors provide residents with quick access to amenities.

It is the most profitable deal to date in Equatorial Apartments, based on the data collected through EdgeProp Singapore. This surpasses the previous record, set in the month of May 2007 when a 5,382 sq. ft. penthouse was purchased for $5.1 million ($948 per square foot) and yielded an income of $2.95 million. The penthouse was sold on Aug 3, also sets a brand new price-per-square-foot record for the development beating the previous record of $1,782 per square foot recorded in February, when the 2,497 square feet unit was purchased to a buyer for $4.45 million.

located in Meyer Road in District 15, Equatorial Apartments is a freehold boutique condo that was built in 1981. There are the totality of 61 apartments housed within a 16-story block. The typical units are four-bedroom homes with sizes ranging from 2,411 up to 2,497 sq feet. There are penthouses that range Between 2,691 to 5,565 square feet.

Teresa Ville was the second-highest profit during the week of review. A 1,981 sq ft apartment was purchased at $3.15 million ($1,590 per square foot) on August 8. The three-bedroom property was purchased by the seller in June of 1998. The price was $1.005 million ($507 per sq ft). Thus, the seller earned an income that was $2.155 millions (213%) after holding the property for a little more than 25 years.

This is the second highest-profit deal recorded by Teresa Ville to date. The most profitable transaction in the development took place earlier in the year one of the three-bedroom, 1,981 square feet apartment was purchased at $3.28 million ($1,656 per square foot) on the 20th of March. The seller, who bought the property at the end of April for 960,000 ($485 per square foot) realized a profit of $2.32 million, or 242%.

Teresa Ville is the name of a freehold development that has 264 units situated along Lower Delta Road in District 4. The development was completed in 1986. development is composed of three blocks housing an assortment of three, twoand four-bedroom apartments that range between 1,356 to 3,972 square feet.

Meanwhile, the sale of a four-bedroom-plus-study apartment at Orchard Scotts was the most unprofitable transaction during the week in review. The 2,282 sq ft apartment located on the fourth floor exchanged ownership at $3.78 million ($1,656 per square foot) on August 7. The property was purchased by the seller in march 2010 for $4.61 million ($2,019 per square foot). This means that the seller suffered losses of around 826,700 which is 18% over a time that was close to thirteen and a half years.

The second unit in Orchard Scotts that has changed hands this year, on the basis of caveats filed. Before this there was a 2,099 square feet unit was purchased to a buyer for $3.85 million ($1,834 per sq ft) on the 30th of May. The seller bought the property on August 12, 2012, for $4.1 million ($1,953 per square foot). They incurred the seller a loss of $250,000 from the deal.

Orchard Scotts is a 99-year leasehold development located on Anthony Road, off Clemenceau Avenue North in the District 9. It was developed through Far East Organization, it was completed in the year 2008. The 387-unit project comprises two to five bedroom homes ranging from 936 to 4,435 square feet.

Private residential prices recorded an increase in the range of 0.2% q-o-q in 2Q2023 which was a change from previous 3.3% growth charted the prior quarter, based on figures published by URA on the 28th of July. The first decrease since 1Q2020, when prices dropped one% per month following the outbreak from the covid-19 epidemic.

J’Den sales with 1 to 5 bedrooms split across floors, is suited for young to large families.

The decline ended a 12-year streak of consecutive quarters of increase in private property prices, according to Eugene Lim, key executive office manager at ERA Realty Network. “These indicators indicate there is a possibility property price is beginning to show signs of a slowdown following three rounds of cooling measures that began in late 2021 and a high-interest rates,” the executive says.

Christine Sun, senior vice head of research and analytics of research and analytics at OrangeTee & Tie, adds that other factors contributing to the decline include a rise in private home completions which put stress on the sellers. “The inventory of residential units completed by private homeowners (excluding executive condominiums, also known as ECs) has been increased by 4,227 units in 2Q2023, compared to the growth of just 2,864 units the prior month,” she points out.

The decline in private housing prices was driven by a lower performance in both the land and non-landed segments. In 2Q2023, the prices of non-landed properties decreased by 0.6% q-o-q after charting 2.6% q-o-q growth in 1Q2023. Meanwhile, prices for land-based properties were up 1.1% q-o-q last quarter which was significantly lower than 1Q2023, which saw a 5.9% increase in 1Q2023.

RCR sees biggest fall
For non-landed properties The decline in the prices was primarily due to those in the Rest of Central Region (RCR) in which prices dropped 2.5% q-o-q in 2Q2023 after an increase of 4.4% increase in 1Q2023. “This could be due to the new projects like Riviere, Piccadilly Grand and Amber Park clearing their last units of the quarter, leading to lower median prices” states Tricia Song, director of research Southeast Asia at CBRE.

She also explains that the new RCR projects that were announced during the quarter like Tembusu Grand, The Reserve Residences and Blossoms by the Park could be competing with older inventory and reduced price expectations on second-hand markets.

Reserves Residences Reserves Residences was the best-selling new development in the last quarter having sold 590 homes for an average price of $2,473 per square foot. Tembusu Grand was second with 362 units sold at an average price of $2,463 per square foot.

Within the Core Central Region (CCR) Prices fell to 0.1% q-o-q in 2Q2023 in comparison to a 0.8% increase in the prior quarter. This was a reverse of the estimates for flash that were released in July 3 that showed the possibility of a 0.3% q-o-q increase. “The CCR market, which is a bigger international buyers, was the most affected by the most recent series of cool measures” notes Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield. The CCR had a drop in its quarterly sales in sales by 8.8% to 995 units.

Within the Outside Central Region (OCR) The prices increased in the region of 1.2% q-o-q in 2Q2023 which was a slight decrease in comparison to 1.9% in 1Q2023. 1.9% rise in 1Q2023. The decrease is due to the lower volume of transactions that fell 8.2% q-o-q to 1,779 units. This is a result of a lack of new launches, with just 40 units being offered for sale by the OCR the last quarter.

For the land section, Wong notes that while prices have slowed down however, it continues to rise with the help of a stable employment market and a growing demand, particularly from owners with increasing wealth and a desire for bigger living areas.

ERA’ Lim concurs. “As the most highly regarded asset class that is known for its large-quantity transactions and exclusive status buyers are reluctant to lower prices, as buyers are cautious about excessively paying. In the end, the prices of landed homes increased however, transaction volume dropped 11.7% q-o-q, with just 286 homes being closed,” he comments.

Based on the 2Q2023 figures, the overall private property costs up by 3.1% as of 1H2023. The total number of private homes were purchased during the first quarter this year. That’s 21.8% lower than 1H2022. “Buyers are becoming more price-sensitive, and discerning with the increasing number of new launches coming into coming,” says Wong.

Rents continue to rise however, at a slower rate.
In 2Q2023, residential private rents increased for the 11th consecutive quarter, but at a slower rate. The private home rental market grew 2.8% q-o-q, significantly less that those who saw 7.2% increase in 1Q2023. “This is the smallest quarterly increase in rents since 4Q2021,” notes Huttons’ Lee.

He also noted that all areas of the residential market experienced an overall decrease in rents. Rentals on non-land properties were up 2.3% q-o-q in 2Q2023 against 6.2% growth in 1Q2023. It was the CCR, RCR and OCR experienced rent increases of 2% 2% respectively. 2.9% respectively. For land-based properties rents climbed 6.7% in 2Q2023, more than halving from 14.5% growth logged in 1Q2023.

The moderate growth in rental comes from an increase in supply. There were 4,401 residential units built in 2Q2023, 48.4% higher than 1Q2023. As completions continue outstrip demand, the vacancy rate for rental properties have increased by 6.3% in 2Q2023 from 6.0% in Q1 2023,” notes CBRE’s Song. She anticipates that rents will decrease further as we move forward, with plenty of new properties coming in the next quarters. “Expatriate demand may slow as businesses restructure their operations and reduce hiring in the face of tough economic conditions,” she adds.

The new launches will pick up in order to increase sales of new homes
In the next few months an increase in launches are expected to boost new homes sales. “July is expected to be a major month, with a minimum of 1,108 units sold already across four new launches that will be launched in the weekend between 8 and 9 and 15-16 July” Song says. Song.

ERA’s Lim anticipates that new homes sales over the course of the year to surpass the 7,099 units offered by developers in the previous year. “The amount of new sale units that have been sold in 2023 as of today (July) already accounted for 65% of the 2022’s figures,” he points out. A projected 4,625 homes will be put on the market in the 2H2023 period.

OrangeTee & Tie’s Sun believes private property prices will remain stable as more housing arrives on the market. “[Full-year rate of price increase] may be lower, ranging from 4-6% as compared the figure of 8.6% in 2022 and 10.6% in 2021,” she predicts.

Cushman and Wakefield’s Wong is in agreement, pointing out the cooling policies and moderate growth in the economy, along with higher rates of new construction, will limit price increases to two% up to% in 2023. “Unemployment rates are likely to remain low and rising rates of resale HDB rates (+1.5% q-o-q in 2Q2023 as opposed to +1.0% q-o-q in 1Q2023) will boost upgrade market demand to buy private properties,” he says.