Condo Score

He notes that the rental market for shophouses is also holding up. “Demand for shophouses as office space have become more attractive since health and safety guidelines will have to be imposed on the central business district office buildings amid the Covid-19 pandemic,” Lee adds.

Singapore’s shophouse market in 3Q2024, while seeing a decline in caveated transactions, remains highly sought after according to Huttons Asia’s quarterly market report released on Nov 12. In 3Q2024, there were 18 caveats lodged for shophouse deals, lower than the previous quarter’s 21. The total transaction amount was $138.9 million, a 28.8% decrease from 2Q2024’s $195.1 million. Compared to the same period last year, the figures are also significantly lower, with only half the transacted quantum in 3Q2023 amounting to $278.6 million. However, despite the decline, there is still strong demand for shophouses as evidenced by several deals that were not caveated in areas such as Amoy Street, Neil Road and Telok Ayer Street. According to Lee Sze Teck, senior director of data analytics at Huttons Asia, these deals are estimated to be worth over $70 million. He adds that investors are attracted to shophouses due to their scarcity and potential for significant capital gains, and the recent interest rate cuts have made them even more popular as a wealth creation and preservation asset. Lee also predicts that there will be an increase in both transaction volume and quantum in 4Q2024. Additionally, the rental market for shophouses remains strong, with demand for office spaces rising due to health and safety guidelines imposed on CBD office buildings amid the ongoing Covid-19 pandemic.

To summarize, purchasing a condominium in Singapore comes with various benefits, such as high demand, potential for appreciation in value, and attractive rental returns. Nevertheless, it is crucial to carefully evaluate factors such as location, financing, government regulations, and market conditions. By conducting thorough research and consulting with experts, individuals can make well-informed decisions and maximize their profits in Singapore’s dynamic real estate industry. Whether you are a local investor seeking to expand your portfolio or a foreign buyer interested in a stable and lucrative investment, Singapore’s condominiums offer a compelling opportunity. Make sure to check out Singapore Projects for more information on available options.…

According to a recent report by OrangeTee Research & Analytics, private resale home prices remained stable in the third quarter of 2024, despite the current high-interest rate environment. Data from the Urban Redevelopment Authority (URA) showed that the average resale prices for landed and non-landed private residential homes, excluding executive condos (ECs), stayed constant at $1,713 psf in the third quarter, compared to the second quarter of the same year. However, there were some fluctuations in the average resale prices within different regions.

In the Core Central Region (CCR), average resale prices saw a 1.6% increase from $2,145 psf in the second quarter to $2,181 psf in the third quarter of 2024. This partially reversed the 3.6% price drop in the first quarter of 2024. Similarly, prices in the Rest of Central Region (RCR) also increased by 1.4% from $1,837 psf to $1,863 psf during the same period, showing a slower growth compared to the 3.1% increase in the previous quarter. On the other hand, the average price of private residential resale homes in the Outside of Central Region (OCR) decreased by 0.4% from $1,495 psf in the second quarter to $1,489 psf in the third quarter of 2024, reversing the 3.5% growth seen in the second quarter.

Despite the high interest rates, there was a robust demand for resale homes, as seen in the increase in volume of transactions. URA recorded 3,860 resale homes sold in the third quarter of 2024, a 1.5% increase from 3,802 units in the second quarter. Resale transactions made up 71.9% of the total 5,372 residential sales, including new sales, resale, and subsale, in the third quarter. However, this was a drop from the record high of 77.4% in the second quarter, according to OrangeTee.

In the first nine months of 2024, there were a total of 10,351 resale homes sold, showing a 21.8% increase compared to the same period in 2023. The market share of resale homes also saw a similar increase, growing from 57.8% in the first three quarters of 2023 to 71.3% in the same period in 2024.

According to the report, this growth in demand for resale homes can be attributed to the increase in housing supply in the past two years, with close to 30,000 private homes completed. As the available supply expands, there are more housing options for potential buyers. Moreover, with high prices of new private homes, buyers may turn to the secondary market for more affordable options.

Investing in a condo in Singapore offers numerous advantages, one of which is the potential for capital appreciation. Singapore’s advantageous position as a global business hub and its resilient economic fundamentals create a constant demand for real estate. In recent years, property prices in Singapore have consistently risen, with condos in prime locations experiencing significant appreciation. By entering the market at the right time and retaining their property for an extended period, investors can reap substantial capital gains. The addition of a condo to their investment portfolio can prove to be a wise decision in the long run.

Recent launches in the OCR, such as Norwood Grand and Meyer Blue, have seen strong demand, with units selling at a significant premium compared to the average resale prices in the region. The recent interest rate cuts by the US Federal Reserve may also spur luxury home sales due to the lower cost of borrowing. However, high-net-worth investors who are less sensitive to interest rate fluctuations may not base their property purchase decisions on mortgage rates.

Despite the high interest rates, OrangeTee predicts that resale prices will continue to grow over the next few years due to the projected decrease in available stock. With approximately 5,300 private homes expected to be completed in 2025, there will be a significant decrease compared to the 9,100 units expected to be completed this year. Therefore, barring any major economic crises or unforeseen circumstances, OrangeTee forecasts a positive outlook for resale homeowners.…

here.On Sunday, November 10, Chinese property developer Kingsford Group sold 696 (76%) out of 916 units at Chuan Park, showcasing an overwhelming demand for the project. The average price of the units sold was around $2,579 per square foot.

When it comes to investing in a Singapore condo, securing financing is a key factor to consider. Fortunately, Singapore offers a variety of mortgage choices. However, it is crucial to be familiar with the Total Debt Servicing Ratio (TDSR) framework in place. This framework sets a limit on the amount of loan a borrower can obtain based on their income and current debt obligations. To make well-informed financing decisions and avoid being over-leveraged, investors should understand the TDSR and seek guidance from financial advisors or mortgage brokers.

According to a spokesman for Kingsford, the units sold included two-bedroom, two-bedroom+study, and three-to-five-bedroom units. Singaporeans made up about 93% of the total number of homebuyers, while permanent residents and foreigners accounted for the remaining 7%. The majority of units transacted were two- and three-bedroom units, with the remaining 8% being four- and five-bedroom units, according to Ismail Gafoor, CEO of PropNex.

The transacted prices for all units sold ranged from $1.6 million (for two-bedders) to $4.3 million (for a five-bedroom unit). Gafoor added that the developer has priced the units sensitively in light of the high demand, including from prospective buyers within District 19.

According to Marcus Chu, CEO of ERA Singapore, two- and three-bedroom units were the clear favorites among buyers, with most buyers in their 30s and 40s. He noted that many of the buyers were upgrading from older HDB flats or condominiums in nearby areas. On the other hand, older buyers who were looking to downsize from landed properties were more interested in the larger four- or five-bedroom units.

As of November 10th, Chuan Park has emerged as the top-selling project of 2024 in terms of the number of units sold. It surpassed the 400 units (75%) sold at the 533-unit Lentor Mansion in March. However, by percentage of units sold, Norwood Grand, which was launched in October, remains the highest at 84% or 292 out of 348 units.

“Besides being the best-selling project of 2024, Chuan Park is also the fastest-selling since J Gateway, which sold all 738 units on its first day of launch in 2013,” according to Mark Yip, CEO of Huttons Asia.

This success is another significant achievement for Kingsford, as their 1,862-unit Normanton Park project sold about 600 units on the first weekend of its launch in January 2021. Notably, all units were entirely sold within 18 months.

In July 2022, Kingsford acquired the 99-year leasehold, 400,500 sq ft Chuan Park site for $890 million. The site is next to Lorong Chuan MRT Station and marks the first private condominium launch in the area since the debut of the 468-unit The Scala in August 2010.

The project consists of five blocks – three 22-storeys and two 19-storeys – and two commercial units spread across a 99-year leasehold site of 400,500 sq ft. The 916 units range from two- to five-bedrooms, with sizes ranging from 700 sq ft to 1,841 sq ft.

Prices started from over $1.5 million for a two-bedroom, upwards of $2.1 million for a 915 sq ft three-bedroom, $3.1 million for a 1,335 sq ft four-bedroom, and $3.7 million for a 1,550 sq ft five-bedroom. Chuan Park’s location in an affluent private residential enclave, surrounded by the Serangoon Gardens, Li Hwan, and Tai Hwan landed housing estates, was highlighted by PropNex’s Gafoor.

Although classified within the Outside Central Region (OCR), Chuan Park is near the boundary of the Rest of Central Region (RCR). Ken Low, the managing partner of SRI, notes that it is near “million-dollar HDB estates,” including Serangoon, Toa Payoh, Ang Mo Kio, Bishan, and the emerging Bidadari Estate. According to ERA’s research, there were around 126,000 HDB flats and 54,000 private residential units in “the Golden Triangle of Ang Mo Kio/Bishan, Toa Payoh and Serangoon around Chuan Park.” In the first 10 months of the year, 233 HDB flats were sold for over $1 million in the nearby HDB estates of Ang Mo Kio, Bishan, Toa Payoh, and Serangoon. “These HDB owners are in a good financial position to upgrade to private residential properties if they wish to do so,” Chu adds.

Chuan Park’s launch was among the most highly anticipated this year, according to Huttons’ Yip. The preview period from Deepavali Day (October 31) to November 7 attracted over 20,000 visitors, with more than 2,800 cheques collected from interested buyers ahead of the sales launch on November 10th. Initially scheduled for November 16, Chuan Park’s launch was brought forward to November 10th. “Bringing forward Chuan Park’s launch has allowed investor and homebuyer demand to spread across various new developments,” says SRI’s Low.

On November 16, three other projects are set to launch: the 552-unit Nava Grove at Pine Grove, off Ulu Pandan Road; the 846-unit Emerald of Katong on Jalan Tembusu in the East; and the 504-unit executive condo Novo Place in Tengah in the West.

Low anticipates that the robust sales at Chuan Park will carry over to the upcoming launches next weekend, building on the existing interest in these projects. “We are also seeing buyers gravitate towards other ongoing new launches,” he adds. “This momentum provides a welcome boost to an otherwise subdued 2024 market.”

The recent interest rate cuts by the US Federal Reserve — a 50-basis point reduction on September 18th and a 25-basis point cut on November 8th, with further cuts anticipated next year — have boosted confidence and demand in the real estate market. “There will be increased affordability as banks lower their stress test rates,” notes SRI’s Low. “Additionally, homebuyers will benefit from savings on monthly mortgage payments due to the reduced interest rates.”

The improved market sentiment has encouraged even those homebuyers who were hesitant during the first nine months of the year to return, says PropNex’s Gafoor. However, he does not expect all upcoming project launches to see similarly strong sales. “In addition to the development’s specific attributes, factors such as location, proximity to MRT stations, nearby new launches, and price sensitivity play a crucial role in a project’s sales performance.” To see the latest listings for Chuan Park properties, click here.…

When investing in a Singapore Condo, it is essential to consider the upkeep and management of the property. Typically, condominiums come with maintenance fees as part of the ownership costs, which cover the maintenance of shared areas and facilities. Although these fees may increase expenses, they play a significant role in preserving the property’s condition and value. To make the investment less hands-on, individuals can opt to hire a property management company to handle daily tasks. Singapore Condo should be a top consideration when looking into purchasing a condo in this country.

Colliers International has recently made two new additions to its leadership team in the Asia Pacific (APAC) and Japan regions. These new appointments aim to strengthen the company’s capabilities and enhance its client services.

Alex Worthington has been named as the Director of Asia Pacific Capital Markets, Key Client Account Management, and Investor Intelligence. With this role, he will be responsible for leading and improving the management of key accounts for the largest institutional investors in the APAC region. According to Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets for APAC, Worthington will drive revenue growth through various services and cultivate long-term relationships with clients in the region.

Worthington will report to Pilgrim and his previous experience includes working as a Client Relations Specialist at Palo IT, a technology consulting firm. He also has eight years of experience at JLL Singapore.

In Japan, Akira Kuno will take on the role of Deputy Managing Director and Co-head of Capital Markets. Kuno has an impressive 34-year career in the real estate and financial industries in Japan. He has successfully completed transactions worth over JPY1 trillion ($8.65 billion), making him an invaluable addition to Colliers. Kuno will work closely with Yukihiro Ogasawara, Colliers’ Managing Director and Chairman of Japan, to drive the growth of the company’s capital markets business in Japan.

Ogasawara expresses confidence in Kuno’s leadership, extensive market knowledge, and enterprising spirit. He believes that Kuno’s expertise will help clients achieve their investment goals and contribute to Colliers’ growth strategy in the future. These new appointments highlight Colliers’ commitment to providing the best client services and driving growth in the APAC and Japan regions.…