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The discussion of new property cooling measures, upcoming housing supply from government land sales (GLS) and Build-To-Order (BTO) launches, as well as announcements from Budget 2025 that may affect the real estate market, were the highlights of EdgeProp Singapore’s Property Market Outlook event held on Sunday, Feb 16.
The panel discussion, moderated by EdgeProp Singapore CEO Bernard Tong, featured three industry experts: Alan Cheong, executive director of research and consultancy at Savills Singapore; Wong Xian Yang, head of research, Singapore and Southeast Asia at Cushman & Wakefield; and Song Seng Wun, Singapore economic advisor at CGS International.
The event, organised by EdgeProp Singapore, took place at the Elta sales gallery, a new 501-unit project jointly developed by MCL Land and CSC Land Group. The sales gallery opened for public preview on Feb 7.
In January, the government hinted at the possibility of implementing additional property cooling measures and stated that it was not yet time to relax existing measures. As a result, developers sold 1,083 new private residential units (excluding executive condos) last month, an increase of 256% compared to the previous year.
According to Cheong, if new cooling measures are introduced, the government is likely to implement a measure that applies uniformly across the residential market. The panel also discussed the possibility of new measures targeting the resale market of HDB flats.
Wong noted that the HDB resale market acts as a “floor” for the housing market in Singapore, and any increase in price there will have an upward effect on prices in the private housing segment. He adds that the government may consider adjusting the seller’s stamp duty (SSD) and introducing stricter loan restrictions.
On the other hand, Tong pointed out that the government plans to boost the supply of GLS and BTO units to meet housing demand. The first half of 2025 GLS program includes 10 sites on the Confirmed List, with a potential yield of 5,000 new homes, while HDB plans to release 19,600 BTO flats in 2025.
Under the new BTO categorization, newly launched Prime and Plus BTO flats will take around 14 years to enter the resale market, and their impact on prices will only be felt much later on, according to Cheong. Wong adds that prices in the resale market tend to follow project completions and HDB estates completing their minimum occupation period (MOP), rather than the pipeline of GLS sites up for tender each year. “In terms of prices, project completions, rather than GLS supply, are more likely to influence prices,” says Wong.
Despite this, all three panelists agree that the strong success of recent new launches indicates a positive buyer sentiment for projects hitting the market this year. For example, Elta attracted approximately 4,500 visitors during its first three days of public preview. Other recent launches this year, such as The Orie and Bagnall Haus, also saw strong sales rates of 86% and 63%, respectively.
The panelists also discussed Budget 2025 and any measures that could potentially impact the property market this year.
Song believes that Singapore has seen a relatively strong economic recovery since the recession caused by the Covid-19 pandemic. As it is an election year, he predicts that Singaporeans can expect more government handouts funded by surpluses from healthy government revenue collections in the past three years.
The panelists also took questions from the audience, with some participants questioning whether the residential property market was currently in an “euphoric” phase.
Cheong commented that the current sense of market exuberance will likely subside as developers strategically time the launch of new projects. He adds that several launch-ready projects are located in neighborhoods that have not seen a new launch in several years. “If a specific location hasn’t seen a new launch in around five or six years, demand tends to build up over time,” he says.
Some attendees also inquired about the rental market this year, which has slowed down since its peak two years ago. Cheong notes that while the total number of expatriates in Singapore has decreased in the past year, 2024 saw an increase in the number of rental transactions. He explains that this may be due to falling rents, which encouraged some renters to stop flat-sharing and find their own accommodation. However, he adds that this is offset by layoffs in the technology and finance sectors this year, which may moderate rental price growth.
During the event, Tong also presented a session of EdgeProp’s Master Plan Master Class, which covered upcoming transformation plans in Clementi and Jurong East.
He noted that the completion of the second phase of the Cross Island Line (CRL) will add a new MRT station (West Coast) and turn the existing Clementi station into an interchange. “Historically, MRT interchanges tend to have a positive impact on surrounding property prices,” says Tong.
Transformation plans in Clementi include the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths in the area. The housing demand in Clementi is also expected to benefit from the progressive development of the Jurong Lake District and the new jobs created in the nearby Tuas megaport, Tuas Biomedical Park, Jurong Island, and Jurong Innovation District.
According to data compiled by EdgeProp Singapore, the average age of existing condos in Clementi is about 17 years. Tong notes that recent new projects in Clementi have seen strong increases in capital gains over the years. This includes Clavon (24% increase since launch) and The Clement Canopy (43% price growth since launch) – both projects are located near Elta.
The scarcity of land in Singapore has created a soaring demand for condos in the city. As a small and densely populated island, Singapore faces challenges in finding available land for development. This has resulted in strict land use regulations and a fiercely competitive real estate market, where property prices continue to rise. With this trend, investing in real estate, especially in Singapore Condo, has become a highly profitable option with the potential for significant capital gains.
The data is from EdgeProp Singapore’s suite of property tools designed to help owners, buyers, and sellers understand market and price trends, such as HDB resale prices, analytics of profitable transactions, and upcoming GLS sites.…