Month: December 2024

The scarcity of land in Singapore has caused a surge in demand for condos, making it a highly sought-after investment. As a small island nation with a swiftly expanding population, Singapore faces a shortage of available land for development. This has resulted in rigorous land use regulations and a cutthroat real estate market where property prices continue to rise. As a result, investing in real estate, especially in the form of condos, has become an attractive prospect with the potential for significant capital appreciation. The introduction of New Condo Launches only adds to the appeal and desirability of this market.

The year 2025 is expected to be a busy one for the executive condos (ECs) market, with three new projects set to launch. Leading the lineup is Sim Lian Group’s Aurelle of Tampines, a 760-unit development located at Tampines Street 62. Its launch is expected to be in the first quarter of the year, most likely after the Lunar New Year. The success of the 846-unit Emerald of Katong, which was over 99% sold, has given Sim Lian Group the confidence to launch this latest EC project.Sim Lian Group acquired the site at Tampines Street 62 (Parcel B) for $543.28 million in a government land sales (GLS) tender that concluded in October 2023. The cost translates to $721 psf per plot ratio (psf ppr) and was considered a good deal considering the rising construction costs and the harmonisation of gross floor area (GFA) definitions. The CEO of PropNex, Ismail Gafoor, has predicted that Aurelle at Tampines could set a new price benchmark, possibly surpassing the $1,600 psf threshold. This projection is based on the success of Novo Place EC, which was launched in November and achieved an average price of $1,656 psf. You can find comprehensive data on all ECs, including the average profit at 5 and 10 years on this website.The Aurelle of Tampines comprises of 760 units and is situated at Tampines St 62 (Parcel B), which was bought by Sim Lian in a government land sale for $543.28 million or $721 psf per plot ratio (Source: EdgeProp Landlens).Located next to Aurelle of Tampines is the Tenet EC, which is a 618-unit development developed by a joint venture between Qingjian Realty, Santarli Realty, and Heeton Holdings. The project was launched in December 2022, and out of the 617 units, 617 have been sold at an average price of $1,384 psf. This is a record-breaking sale, and as of December 19th, 2024, only one unit remained unsold.The parcel of land where Tenet is located is at Tampines Street 62 (Parcel A), and it was acquired by the developers in August 2021 for $442 million, which is equivalent to $659 psf ppr. At that time, this was a record high for the cost of an Executive Condo land. It is essential to note that Tenet was launched before the implementation of the GFA harmonisation rule, which applies to GLS sites launched for sale after September 1, 2022. As of December 19th, 2024, there was only one remaining unit at Tenet EC, with 617 units sold at an average price of $1,384 psf. The 618-unit EC is situated at Tampines St 62 (Parcel A), which is right next to the upcoming 760-unit Aurelle of Tampines (Photo: Samuel Isaac Chua/EdgeProp Singapore).Confident about the high demand for housing in Tampines and the neighbouring estates, Sim Lian Group has secured another EC site. The developers were recently awarded the Tampines Street 95 GLS site, which they secured with a bid of $465 million ($768 psf ppr). This new acquisition has set a new record in terms of land price per psf ppr for ECs.Since this new project at Tampines Street 95 is expected to add 560 new units, the EC supply in this area will continue to grow. Sim Lian Group has a long track record of developing projects in the eastern part of Singapore. They are expected to deliver a top-quality project this time around, just like they did with Treasure at Tampines. This is Singapore’s largest private condominium, which sits on a parcel of land formerly occupied by the Privatised HUDC estate Tampines Court. Sim Lian acquired this piece of land for $970 million back in 2017.Launched in February 2019, Treasure at Tampines consists of 2,203 units. It was fully sold within three years at an average price of $1,356 psf. Since its completion, there have been a total of 468 resale and sub-sale transactions recorded. Today, the average price for Treasure at Tampines is $1,699 psf, representing a 25.3% increase over the average launch price. This private condo by Sim Lian Group was completed in phases in 2023 (Photo: Sim Lian Group website).The Plantation Close in Tengah is expected to launch a new EC project in 2025. This is a 560-unit development developed by a joint venture between Hoi Hup Realty and Sunway Developments. These are the same developers behind the Novo Place EC. During its first launch in mid-November, Novo Place sold 57% of its units, and the remaining 137 units were snapped up during the second round of balloting for second-timers. This brings the total number of units sold to 444, which is equivalent to 88.1% of the entire project as of December 16th, 2024.Novo Place has achieved an average price of $1,656 psf, which has set a new benchmark for EC prices. Ismail Gafoor from PropNex attributes the “slightly elevated average pricing” at Novo Place to the fact that 80% of buyers chose the deferred payment scheme. This scheme has a 3% premium when compared to the standard payment scheme. Despite the high benchmark price, Novo Place has performed well, and this can be attributed to several factors, as noted by Gafoor. These include the dwindling inventory of unsold EC units and the project’s convenient location. It is situated at Plantation Close in Tengah, a locality that benefits from close proximity to two upcoming MRT stations (Tengah Park MRT and Bukit Batok West MRT Stations on the Jurong Region Line), which are expected to be completed by 2029.Based on caveats lodged on URA Realis, some of the transactions at Novo Place executive condo have crossed the $1,700 psf threshold (Source: EdgeProp Landlens).Another EC project that is already in the pipeline is located at Jalan Loyang Besar in Pasir Ris. It is a joint venture between Forsea Holdings, ZACD Group, and Qingjian Realty, and they bought the parcel of land for $557 million ($729 psf ppr) in August 2024. This project is expected to yield 710 units. The last time an EC was launched in Pasir Ris was in 2013. Sea Horizon was launched in September of that year at an average price of $800 psf. By 2024, the average resale price for units covered by caveats had increased to $1,290 psf, which is a 61.25% increase over a decade.Given that Pasir Ris has not seen a new EC launch in nearly 12 years, pent-up demand is expected to be high. This is according to Gafoor, the CEO of PropNex, who noted that ECs are a hybrid of public and private housing and they continue to be highly sought after by first-time homebuyers and HDB upgraders. This is because they are still more affordable compared to private new launches. According to PropNex, the average price for new non-landed, 99-year leasehold private homes in the Outside Central Region (OCR) in 2024 was $2,203 psf (as of December 8th, 2024). Based on caveats lodged during the same period, this represents a 44% premium over new EC launch prices.The three upcoming EC projects (the Plantation Close EC, the Jalan Loyang Besar EC, and the Aurelle of Tampines) will add 2,030 units to the market. This is twice the number of new units that were launched in 2024 (1,016 units). The first EC project that was launched in 2024 was the Lumina Grand at the end of January. City Developments (CDL) is the developer behind this project, which is located at Bukit Batok West Avenue 5. During the launch weekend, 53% of the units were taken up. As of December 17th, 2024, a total of 444 units (equivalent to 87%) had been sold. The average price achieved to date stands at $1,511 psf (Picture: CDL).…

Selecting the right location is a vital consideration for individuals looking to invest in real estate, particularly in Singapore. Condominiums situated in central regions or in close proximity to crucial amenities, such as schools, shopping centers, and public transportation hubs, tend to have higher increases in value. Prime locations in the city, like Orchard Road, Marina Bay, and the Central Business District (CBD), have demonstrated a consistent appreciation in property values. The presence of reputable schools and educational institutions in these areas also makes condominiums highly sought after by families, making them an ideal investment option. To explore the latest condominium projects in Singapore, visit Singapore Projects.

after over 27 years of ownershipTenure of Ardmore ParkCondo projects with most unprofitable transactions in District 10Total number of units in Ardmore ParkThe District 10 luxury condo, Ardmore Park, recorded the highest profits in resale transactions this year. Located in the prime Ardmore-Draycott enclave, the freehold development saw a number of units change hands with significant gains. In fact, Ardmore Park accounted for the first, second, and fourth most profitable condo resale deals in the whole of Singapore between January 1 and December 10 this year.According to data from the Urban Redevelopment Authority (URA), the biggest profit came from the sale of a four-bedroom unit on the 26th floor, measuring 2,885 square feet. The unit was sold for $12.9 million on February 16, which is equivalent to $4,472 per square foot. This unit was originally purchased from the developer in July 1996 for $5.83 million, or $2,022 per square foot. Thus, the seller earned a whopping profit of $7.07 million, which translates to an impressive 121% gain after owning the unit for about 27 and a half years.The second-highest profit was recorded five months later on July 24, when another four-bedroom unit at Ardmore Park was sold for $12 million, at a rate of $4,160 per square foot. This unit was initially bought in December 2000 through a sub-sale transaction for $5.2 million, or $1,803 per square foot. With a gain of $6.8 million, the seller enjoyed a remarkable capital gain of 131% after owning the unit for about 23 and a half years.The fourth most profitable deal at Ardmore Park this year took place on April 22, when a four-bedroom unit measuring 2,885 square feet was sold for $12.5 million, at a rate of $4,333 per square foot. The same unit was purchased back in February 2007 for $6 million ($2,080 per square foot), which means the seller made a substantial profit of $6.5 million, or 108% after owning the unit for over 17 years.Apart from these top three transactions, three other 2,885 square feet four-bedroom units at Ardmore Park were sold this year, with their sellers making profits of $2.65 million, $3 million, and $3.05 million respectively. Last year, the condo recorded four resale transactions, with profits ranging from $2.8 million to a whopping $8.16 million.That said, Ardmore Park is not the only condo in District 10 to see significant profits this year. In fact, the list of top gains was dominated by other mature freehold condos within the same district. Beverly Hill, a boutique condo with just 86 units located on Grange Road, was completed in 1983 and recorded the fifth most profitable transaction this year. On July 15, a four-bedroom unit spanning 3,778 square feet on the fifth floor was sold for $9.15 million, or $2,422 per square foot. This unit was bought by the seller at just $3.68 million ($976 per square foot) in June 2004, making the seller a profit of $5.47 million, or 149% within 17 and a half years.Older freehold condos in Districts 9 recorded two of the top 10 profits this year. The third-highest gain came from the sale of a four-bedroom unit spanning 3,434 square feet at Yong An Park, located on River Valley Road. The unit was sold for $8.6 million, equivalent to $2,505 per square foot on August 12. This same unit was bought by the seller back in January 1999 for just $1.88 million, or $547 per square foot, which means the seller made a gain of $6.72 million, equivalent to a remarkable 358% after owning the unit for over 25 and a half years.The sale of a 3,057 square feet unit at The Ritz-Carlton Residences Singapore Cairnhill made the fourth most profitable deal this year. The unit was sold on January 9 for $16.5 million, at a rate of $5,397 per square foot. The seller had purchased the unit in November 2007 for $11.61 million, or $3,798 per square foot, thus making a profit of $4.89 million, equivalent to 42% after owning the unit for nearly 13 years.In contrast to the top gains, Sentosa Cove condos made up nearly half of the top 10 least profitable resale transactions in Singapore this year. At the top of the list is the sale of a five-bedroom duplex penthouse measuring 3,789 square feet at Marina Collection, a 124-unit condo on Cove Drive. The unit changed hands on July 22 for $6.7 million, equivalent to $1,768 per square foot. The seller had purchased the unit from the developer for $9.39 million in March 2010, or $2,479 per square foot. As a result, the seller made a loss of $2.69 million, equivalent to 29%.The second biggest loss this year was recorded at Seascape, located on Cove Way. On August 14, a four-bedroom unit measuring 2,680 square feet on the sixth floor was sold for $4.5 million, equivalent to $1,679 per square foot. The unit was bought by the seller from the developer in October 2010 for $7.03 million or $2,623 per square foot. With these figures, the seller made a loss of $2.53 million after owning the unit for over 10 years.In all, it’s clear that resale transactions at Ardmore Park have yielded some of the most significant gains this year. In fact, the freehold condo has consistently seen significant gains in recent years, with three other 2,885 square feet four-bedroom units changing hands between $2.65 million and $3.05 million this year. Other freehold condos that were completed between 1982 and 1990 also made up the list of top profitable deals in District 10, including Astrid Meadows on Coronation Road West, Regency Park on Nathan Road, Fontana Heights on Mount Sinai Rise, and Wing On Life Garden on Bukit Timah Road.…

List Sotheby’s International Realty director of research Han Huan Mei reports that the market for Good Class Bungalows (GCBs) has performed exceptionally well this year compared to 2023, with 22 GCB transactions worth a total of $612.05 million recorded as of December 20. An additional 13 GCB deals, estimated to be worth over $700 million, were also completed this year without any caveats lodged due to buyers seeking anonymity. This brings the estimated total for 2024 to 35 GCB transactions worth approximately $1.32 billion, surpassing 2022’s previous high of $1.186 billion.

In contrast, 2023 saw only 18 GCB transactions amounting to $432.5 million, the lowest recorded since URA Realis began tracking such data in 1995. “The additional deals in 2024 show that the GCB market has been more active compared to what official transaction data reveals,” says Han. “It also highlights the GCB’s status as a highly sought-after asset by ultra-high-net-worth buyers.”

Leading the pack in terms of sales is a GCB at Tanglin Hill, which was bought for $93.888 million. Situated on a freehold site of 15,150 sq ft, the property boasts a built-up area of 29,660 sq ft and set a new record with a land rate of $6,197 psf. The second-largest transaction was a GCB purchase at Bin Tong Park for $84 million by Xiang Yangyang, daughter of Chinese nickel billionaire Xiang Guangda. However, no caveat was lodged for this property, and based on its land area of 28,111 sq ft, the price reflects a land rate of $2,988 psf.

The highest-priced deal based on caveats lodged was for a GCB on Cluny Hill that sold for $52 million. The property sits on a freehold plot of 15,141 sq ft and is relatively new, hence fetching a land rate of $3,434 psf. Another notable transaction was the sale of a 21,116 sq ft GCB plot at Astrid Hill for $49 million ($2,321 psf) in July, reportedly purchased by Glenn Kuok, nephew of Kuok Khoon Hong, chairman and CEO of Wilmar International.

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The demand for condominiums in Singapore remains consistently high, thanks in large part to the limited availability of land. As a small island nation experiencing rapid population growth, the shortage of land has compelled the government to implement stringent land use policies. This has led to a highly competitive real estate market, with property prices continuously increasing. As a result, investing in real estate, particularly in new condo launches, has become an attractive option, with the potential for significant capital appreciation. This is especially true for new condo launches, as they offer promising opportunities for investment and growth in the ever-evolving Singapore market.

Head of research and data analytics at Singapore Realtors Inc (SRI), Mohan Sandrasegeran, notes that 14 transactions this year were valued at $20 million or more, indicating a strong demand for ultra-luxury properties in Singapore. “District 10 remains the cornerstone of the GCB market, with multiple high-value deals reaffirming its status as the most sought-after district for these prestigious properties,” he adds. Sixteen of the recorded GCB transactions this year took place in prime District 10, including the coveted Tanglin, Bukit Timah and Holland Road areas.

Sandrasegeran also observes that GCB transactions were evenly spread throughout the year, with buying activity picking up from July onwards. “The fact that we saw GCB deals closing throughout the year suggests sustained buying interest for these trophy properties despite external economic factors, such as inflationary pressures and high interest rates in the first eight months of the year,” he says.

Steve Tay, co-founder and executive director of his eponymous boutique luxury agency, says that the trajectory of interest rates signalled by the US Federal Reserve (Fed) was the main driver of stronger buying sentiment in the GCB market during the second half of the year, rather than the actual rate cuts. The Fed implemented three rate cuts this year, the latest being a 25 basis points reduction on December 18, following earlier cuts of 50 basis points in September and 25 basis points in November.

According to Tay, most GCB buyers who had been holding back on purchases began serious discussions from July onwards, and most deals closed in the last quarter of the year. The GCB market slowed down last year due to buyers’ retreat following the island-wide arrests that occurred in Singapore’s biggest money-laundering case, reports Han.

She adds, “The money-laundering crackdown had a dampening effect on the market, causing some genuine buyers to pull back to avoid media attention.” Han also notes that transactions also took longer to close due to heightened scrutiny and stricter checks on buyers’ identities and sources of funds.

Tay points out that a new generation of ultra-wealthy Singaporeans has emerged in the GCB market in recent years, with many young and successful entrepreneurs who have made their fortunes in technology, finance, commodities and F&B businesses. He also highlights the growing number of ultra-wealthy and newly naturalised citizens in the GCB buyer pool, who prefer sizeable plots in prime districts, though their numbers still pale in comparison to that of local wealthy individuals.

Research from List Sotheby’s estimates the cost of constructing a new GCB from the ground-up to be around $1,000 psf, which also takes several years to complete. Hence, most buyers are looking for relatively new bungalows in move-in condition to minimize renovation works, observes Han. “The GCB market is expected to maintain its positive momentum, with demand from ultra-high-net-worth individuals driving high-value transactions,” says Sandrasegeran. “The preference for privacy among GCB buyers and sellers could also mean continued off-market transactions, adding to the complexity of tracking market activity.”…

According to Wong Xian Yang, head of research for Singapore & Southeast Asia at C&W, the total value of property deals in Singapore’s capital market is estimated to have reached $25.8 billion between January and November of this year. This marks a 40.2% year-on-year increase from the $18.4 billion recorded in 2023. C&W defines capital market transactions as deals with values exceeding $10 million.

Wong reports that almost 60% of the capital market deals were made in the second half of 2024, driven by growing investor appetite and increased confidence in interest rate cuts by the US Treasury. Three deals exceeding $1 billion were made in 2024, all of which took place in the second half of the year.

The highest-value transaction by absolute price in 2024 was the sale of a 50% stake in ION Orchard mall for $1.85 billion to CapitaLand Integrated Commercial Trust (CICT) on September 3. The seller was CapitaLand Investment (CLI). Hong Kong-listed property developer Sun Hung Kai Properties holds the remaining 50% stake.

ION Orchard is an eight-storey retail mall located in the heart of the shopping belt and directly linked to the Orchard MRT Station, serving as an interchange for the North-South and Thomson-East Coast Lines. It boasts a net lettable area of approximately 623,000 sq ft and is home to over 300 international and local brands. The mall also features a 54-storey, 175-unit luxury condominium tower, The Orchard Residences.

Investing in a Singapore Condo has numerous advantages, one of which is the opportunity to utilize the property’s value for future investments. With a condo as collateral, investors can secure additional funding for new ventures and expand their real estate portfolio. While this strategy can boost returns, it also carries certain risks. It is important to have a solid financial plan in place and carefully consider the potential impact of market fluctuations before leveraging your condo for further investments.

In the industrial sector, there was a surge of investor interest this year, with investments reaching $5.6 billion in the first 11 months of 2024, reflecting a 174% increase in transaction value from the previous year. The largest deal in this sector was the $1.6 billion divestment of a portfolio of seven industrial properties from Soilbuild Business Space REIT to a joint venture platform owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group in August. The portfolio, totaling 4.5 million sq ft, comprises business parks and specialist facilities in areas such as life sciences, technology, advanced manufacturing, and logistics.

Another significant deal in 2024 was the sale of two data centers to Singapore-listed Keppel DC REIT for $1.38 billion. The seller was a 60:40 joint venture between Keppel and Cuscaden Peak Investments. These data centers, Keppel DC Singapore 7 and Keppel DC Singapore 8, are capable of large-scale data processing and are fully contracted to cloud services, internet enterprises, and telecommunications providers.

Despite some unsuccessful sales of Government Land Sales (GLS) sites this year, residential development sites sold through GLS tenders continued to make up the bulk (42%) of total investment sales for the year. However, four GLS sites on the Confirmed List for 2024 failed to be awarded, including a 6.5ha master developer white site in the Jurong Lake District (JLD), a 1.73ha white site at Marina Gardens Crescent, a 62,046 sq ft site at Media Circle zoned for long-stay serviced apartments (SA2), and a 262,875 sq ft site at Upper Thomson Road which included an SA2 component.

Wong explains that the main reason for the unawarded sites was low bid prices, driven by concerns about large land quantum or untested markets, as well as interest rate and development risks.

In November, a 50:50 joint venture between UOL Group and CapitaLand Development agreed to purchase the 255-unit Thomson View condominium for $810 million. The price translates to $1,178 psf per plot ratio (ppr) after factoring in the land betterment charges and lease upgrading premium for a fresh 99 years. The deal was made after the reserve price was reduced from $918 million to $808 million in October. Thomson View sits on a plot of land spanning 504,314 sq ft with a 99-year lease from April 1975 and a plot ratio of 2.1. The developers intend to build a 1,240-unit residential project on the 5ha site.

The retail sector in Singapore also showed significant year-on-year growth in investment value, with deals totaling $3.3 billion between January and November, a 149% increase from the previous year. According to Wong, investor interest in this sector has been rising due to steady operating fundamentals.

The office segment also showed signs of recovery, with CBRE reporting $2.37 billion in investment value this year, a 15.7% increase from the previous year, driven by the normalization of return-to-office trends.

On the other hand, the shophouse market saw a 49.7% year-on-year decline in investment value to $584 million. This is attributed to dampened investor sentiment following money laundering investigations in August 2023.

Wong remains optimistic about an increase in high-value deals next year, as the US Federal Reserve is expected to cut interest rates further. He also expects developers to step up their land acquisition activities, but with caution and selectivity.

CBRE’s Head of Research for Singapore and Southeast Asia, Tricia Song, notes that investors have been deploying capital to the industrial sector due to its positive carry in a high interest rate environment. However, she expects industrial rent growth to moderate in 2025, which could impact yields.

CBRE Research expects investment volumes to grow 10% in 2025, barring any macroeconomic shocks. Wong adds that, should the trend of unawarded GLS sites continue, it could be due to low bidding prices and site-specific concerns such as large land quantum or untested markets.…

The consumer spending in Singapore has been weaker than expected, which is likely to dampen rental forecasts for the retail property market by the end of the year. According to Alan Cheong, executive director of research and consultancy at Savills Singapore, the monthly retail sales index (excluding motor vehicles) and food and beverage (F&B) sales index have mostly seen negative changes this year, indicating a slow market.

Cheong predicts that rents for retail properties in the prime Orchard Road submarket may only see a 2% increase by the end of the year, falling short of initial expectations of a 3% to 5% climb. However, his rental forecast for the suburban retail market remains unchanged and is expected to remain flat.

A recent joint research by DBS and Singapore Management University (SMU) reveals that consumer concerns over high inflation have started to ease in the past few quarters. The research also found that people who expect inflation to stabilize in the coming months attribute it to the global economic slowdown, high interest rates, and potential easing of supply chain disruptions.

Though retail sales (excluding motor vehicles) saw a 0.3% year-on-year increase in October, reversing the 1.5% decline recorded in September, Cheong believes a more desirable outcome would be if consumer spending kept pace with inflation. He also states that the current low spending rate could pose financial challenges to businesses in the industry.

Singapore’s urban environment is characterized by towering skyscrapers and state-of-the-art infrastructure. The city’s prime locations are dotted with luxurious condominiums that offer a perfect combination of comfort and convenience, making them a popular choice among both local inhabitants and expatriates. These modern living spaces boast a wide range of facilities, including swimming pools, gyms, and round-the-clock security services, elevating the overall living experience and making them highly desirable to potential tenants and buyers. Moreover, for investors, these top-notch amenities result in higher rental returns and appreciation in property values over time. Keep an eye out for New Condo Launches, as they continue to elevate the standard of living in Singapore’s ever-evolving urban landscape.

Despite high-profile concerts and events taking place in Singapore this year, they have not had a significant impact on retail sales and rental rates. CBRE’s research shows that while concerts by international stars such as Taylor Swift and Coldplay attracted many attendees, other MICE (meetings, incentives, conferences, and exhibitions) events did not generate the same foot traffic to nearby malls.

Though Singapore hosted various leisure and business events, including the Formula One Grand Prix and the 25th World Congress of Dermatology, CBRE observed that most business event attendees tend to stay at the event venue. Even the F1 race, which usually generates an average of $125 million in tourist receipts, did not result in a significant boost in foot traffic in popular tourist areas like Orchard Road.

Despite this, Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore, says that Singapore’s status as a regional hub has continued to attract notable new-to-market brands. She mentions some new retail stores, such as KSisters, The Pace, and Brands for Less, and new F&B concepts like Sushi Samba and coffee chains like Blue Bottle, Grey Box, and Puzzle Coffee. She also points out the emergence of new wellness concepts and restaurants offering entertainment, which have helped boost demand for retail spaces and supported rental growth.

Next year, retail landlords may have more flexibility to adjust rental rates positively as the supply of new retail spaces becomes limited. Cheong suggests that this will allow them to strategize and keep their malls relevant in the ever-changing consumer patterns of both locals and tourists. He also believes that more retailers will take this opportunity to optimize their real estate strategies, which may include right-sizing their spaces, establishing additional kiosks, or closing underperforming branches.

Cheong predicts that the trend of new-to-market F&B brands entering Singapore will continue in the first half of 2025, which will further enhance the vibrancy of the dining scene. Overall, there is a strong momentum in the retail market, and with the support of new entrants and limited supply, this trend is expected to continue in the future.…

The global luxury goods market has faced significant challenges in 2024, in part due to the uncertain macroeconomic climate and the high prices of luxury brands. According to Bain & Company’s recent report, global sales of personal luxury goods are expected to decline by 2% this year, with China’s market estimated to have decreased by 20-22%. Major luxury brands such as Richemont Luxury, LVMH, and Moncler Group have reported a decrease in earnings, while Kering has seen a more significant decline.

Despite these challenges, Singapore remains a crucial market for luxury brands. Euromonitor predicts that sales of luxury goods in Singapore will reach $9.1 billion, with a growth of 11% in 2023. In recent years, luxury brands such as Dior, Chanel, and Louis Vuitton have been actively implementing e-commerce and digital marketing strategies to engage with consumers.

Despite the digital trend, luxury brands have also recognized the importance of creating offline shopping experiences to establish closer connections with customers. Many brands have been adopting the strategy of providing unique experiences for their top-tier clients, resulting in larger and more extravagant flagship stores like Louis Vuitton’s 690 square meter “apartment concept” store in Ngee Ann City.

Investing in a condo has numerous advantages, including the potential to leverage its value for further investments. It is a popular strategy among investors to use their condos as collateral to secure additional financing for new investments, allowing them to expand their real estate portfolio. However, it is important to note that this strategy also carries risks, which is why it is crucial to have a solid financial plan in place and carefully consider the potential impact of market fluctuations. With the addition of Singapore Condo, investors can take advantage of the various benefits that come with investing in a condo.

Burberry, Yves Saint Laurent (YSL) and Richard Mille are among the luxury brands that have recently opened or renovated their stores in Singapore, with a focus on creating an immersive and personalized shopping experience. This trend is expected to continue in the future, with the growth of high-net-worth individuals, especially in emerging markets, the interest of younger generations, and the resurgence of tourists from China.

Other future trends for luxury brands include personalization and customization to enhance brand loyalty, as well as the use of AI and digital experiences to better understand customers’ preferences and complement offline experiences. Some brands have already implemented these innovative strategies, such as Dior’s AI platform, Balenciaga’s use of AI for its Paris Fashion Week show, and Brunello Cucinelli’s separate AI-powered website for personalized shopping.

Although 2024 has been a challenging year for the luxury goods market, growth is anticipated for 2025 and beyond as brands continue to expand their store presence, create larger flagship stores, and offer elevated experiences for their top clients. With the growing influence of Millennials and Gen Z in the market, luxury brands will continue to embrace advanced digital technology and omnichannel strategies to cater to the changing consumer preferences in the luxury market.…

The Swiss brand’s philosophy revolves around simplicity and quality in their approach to product design. Since its establishment in 1913, V-ZUG has been a top choice among developers and designers of luxury residences. From its home base in Switzerland to cities across the globe, such as Shanghai, London, and Singapore, V-ZUG’s products can be found everywhere.The brand’s dedication to sleek lines and timeless elegance sets it apart from its competitors. V-ZUG expertly blends tradition and quality with modern aspirations, shaping the landscape of contemporary kitchen design. Its commitment to craftsmanship and quality control is evident in its handcrafted products, all of which undergo rigorous testing by engineers to ensure high performance.In addition to its emphasis on quality, V-ZUG also has a strong focus on sustainability. The brand conducts extensive research to determine the best sustainable practices for each of its products, while maintaining strict quality standards. One such example is the integration of Circle-Green recycled stainless steel, which produces significantly fewer emissions than traditional stainless steel.In terms of functionality, V-ZUG consults with renowned chefs from Michelin-starred restaurants to ensure that each of its products meets the needs of both professional and home cooks. This commitment to excellence in kitchen technology elevates the culinary experience of passionate home cooks.In addition to its focus on functionality, V-ZUG also prioritises the aesthetics of its products, ensuring seamless integration into any home. Its minimalist design language and diverse range of products cater to the needs of every household. An example of this is the brand’s selection of wine cabinets, which come in a variety of sizes and configurations to suit any space.Consistency is key in V-ZUG’s design process, with clean, sleek lines and mirrored glass fronts that tie its products together seamlessly.Every detail of V-ZUG’s products is carefully considered in order to achieve simplicity and practicality. From the way the doors of a wine cabinet open and shut to the hues of the LED lights on a refrigerator, each element works together to create a harmonious and efficient home.Beyond the kitchen, V-ZUG also offers products such as the RefreshButler, which uses advanced technology to sanitize and deodorize garments. With its dedication to simplicity, quality, and sustainability, V-ZUG is a brand that continues to make its mark in the world of luxury appliances.

When considering the purchase of a condo, it is crucial to carefully evaluate its potential rental yield. The term rental yield refers to the annual rental income as a percentage of the condo’s purchase price. In the bustling city of Singapore, condo rental yields can vary significantly based on several factors, including location, property condition, and market demand. Typically, areas with a high demand for rental properties, such as those near major business hubs or prestigious institutions, tend to offer higher rental yields. To gain a comprehensive understanding of a specific condo’s potential for rental income, it is advisable to conduct extensive market research and seek guidance from experienced real estate agents. Therefore, for a successful condo investment, thorough due diligence and gathering all necessary information is crucial.…

Commercial and Industrial property prices up 7.3% in 1Q2024

On December 4th, VisionPower Semiconductor Manufacturing Company (VSMC) officially started construction on a new wafer manufacturing facility in Tampines, Singapore. The facility, which will cost US$7.8 billion ($10.5 billion) to build, is expected to begin initial production in 2027 and reach a capacity of 55,000 wafers per month by 2029. This project is a joint venture between Taiwan’s Vanguard International Semiconductor Corporation and the Netherlands’ NXP Semiconductors, with the former holding a 60% stake.

But VSMC is not the only company expanding in Singapore’s semiconductor industry. In March, Japan’s Toppan Holdings announced the construction of a new factory in the Jurong Lake District, which will produce semiconductor packaging materials. The company is investing an estimated $450 million in the project.

According to Leonard Tay, head of research at Knight Frank Singapore, these expansions are part of a larger trend of chipmakers and related businesses setting up new production plants and R&D campuses in Singapore to boost supply chain resilience. “Singapore’s stability amid ongoing geopolitical tensions in other parts of the world makes it a global production hub for semiconductors and chips,” he says.

The global semiconductor industry has rebounded from a downturn in 2023 due to softer demand and higher supply. According to research from London-based consultancy Omdia, the industry saw a 26% year-over-year increase in revenue for the first three quarters of 2024. This is a stark turnaround from the previous year, when revenue fell by 9% to US$544.8 billion for the entire year.

Investing in a condominium in Singapore comes with many benefits, one of which is the potential for capital appreciation. Due to its advantageous location as a global business hub and strong economic fundamentals, Singapore has a constant demand for real estate. Throughout the years, the property prices in the country have consistently shown an upward trend, and this is especially true for condos in prime locations. For investors who enter the market at the ideal time and hold onto their properties for a significant period, the potential for substantial capital gains is promising. Consider adding Singapore Condo to your investment portfolio for the potential appreciation and long-term gains.

This recovery has had a positive impact on Singapore’s manufacturing sector. After two consecutive quarters of contraction in the first half of 2024, manufacturing output grew by 11% YoY in the third quarter. This was led by the electronics cluster, driven by strong demand for smartphone and PC semiconductor chips.

Meanwhile, the industrial property market in Singapore has continued its upward trend in 2024, with rental growth in the first three quarters of the year. As of the third quarter, the JTC All Industrial Rental Index has risen for 16 consecutive quarters since the third quarter of 2020. However, the pace of rental growth has slowed compared to the 8.9% increase recorded in 2023. On a quarterly basis, the index grew by 1.7%, 1%, and 0.3% in the first, second, and third quarters, respectively.

According to experts, this leveling out of rental growth reflects a more cautious sentiment among tenants in light of an uncertain macroeconomic environment. However, Catherine He, Colliers’ head of research for Singapore, notes that the multiple-user factory and warehouse segments have remained relatively resilient, with rental growth across the first three quarters supported by stable occupancy rates.

On the other hand, the industrial sales market has been more active this year. After a slow start, activity picked up in the second quarter, with several large transactions taking place. These include the sales of BHL Factories, Kian Ann Building, and a single-user factory at 47 Pandan Road, which sold for $74 million, $63 million, and $36 million respectively.

In the third quarter, the market received a further boost when Warburg Pincus and Lendlease Group acquired a $1.6 billion portfolio of seven industrial assets from Soilbuild Business Space REIT. Other notable transactions included ESR-Logos REIT’s purchase of a 51% stake in an industrial site at 20 Tuas South Avenue 14 for $428.4 million and Ho Bee Land’s sale of a 49% stake in Elementum, a biomedical sciences development, to a Brunei sovereign wealth fund for $272 million.

Overall, these deals resulted in a seven-fold increase in industrial property sales to $2.45 billion in the third quarter, according to Alan Cheong, executive director of research and consultancy at Savills Singapore. However, Cheong believes that such large transactions are likely to be a one-off occurrence, with fewer billion-dollar deals expected in 2025. This is reflected in Savills’ forecast of slower rental and price growth in the near term.

The influx of new supply, coupled with weaker demand, is expected to lead to a supply-demand imbalance and slower growth in rents and prices in the industrial property market. According to Collier’s He, this is especially true for business park and single-user factory spaces, with the former facing pressure as companies downsize their footprint to cut costs or optimize workspace in response to flexible working arrangements.

Despite this, demand remains strong for multiple-user factory space, centrally located food factories, and preferred locations for logistics space. Additionally, the electronics and advanced manufacturing sectors are expected to drive growth in the industry, with semiconductors, electric vehicles, and artificial intelligence leading the way. Data centers will also play a vital role, with Singapore planning to increase capacity by at least 300 megawatts as part of the Green Data Centre Roadmap launched in May 2024.

Overall, while the uncertain macroeconomic environment may temper industrial property rental and price growth in the near term, Singapore’s stable and resilient market is still an attractive location for businesses looking to invest in the semiconductor industry and related sectors.…

Huttons Asia’s Mark Yip on the impact of demographics & economy on property prices – See more at:

The property market in 2024 saw a stark contrast between the first and second half of the year. According to Huttons Data Analytics, the first half was slow, with boutique developments being the main focus and the lowest number of units launched for sale since the first half of 1996. Sales volume also reflected this trend, with only 1,889 units sold – the lowest since 1996. The exception was Lentor Mansion, a 533-unit development that achieved a 75% take-up rate during its launch weekend in March. However, most other project launches in the first half of 2024 saw lackluster sales compared to the previous year.

Huttons Asia CEO Mark Yip notes that the market sentiment was tentative and cautious, possibly due to uncertainties in the job market and high interest rates. Buyers were likely holding back, waiting for highly anticipated project launches later in the year, like Chuan Park and Emerald of Katong. To find out the latest new launches, one can search for them and check out the transaction prices and available units.

However, the launch of the 276-unit freehold Kassia at Flora Drive in late July, which achieved a 52% take-up rate, set the stage for strong sales momentum following the Lunar Seventh Month. This was followed by the launch of the 158-unit 8@BT at Bukit Timah Link in September, with 53% of its units snapped up over the weekend at an average price of $2,719 psf.

In the third quarter of 2024, new home sales saw a 60% increase compared to the previous quarter, according to Huttons. This shift in sentiment is attributed to the 50-basis point interest rate cut by the US Federal Reserve in September. This was further supported by the sale of more than 50% of units at Meyer Blue in October, at an average price of $3,260 psf, setting a new benchmark for the prime District 15 enclave on the East Coast.

Norwood Grand, a 348-unit project in Woodlands, also achieved multiple milestones. Over the weekend of October 19-20, it saw a take-up rate of 84%, making it the best-selling project in terms of percentage of sales as of October. The average price of units sold was $2,067 psf, marking the first time a project in Woodlands surpassed the $2,000 psf threshold.

Norwood Grand’s strong performance was a clear signal of growing buyer confidence and demand, according to Huttons’ Yip. This triggered a tidal wave of activity in November, with a record-breaking six new projects comprising 3,551 units unleashed over 10 days. It began with the launch of The Collective at One Sophia on November 6, followed by Union Square Residences at Havelock Road on November 9, Chuan Park on November 10, and three projects launched in concert over the weekend of November 15-16: Emerald of Katong, Nava Grove, and Novo Place executive condo (EC).

As a result, November sales figures soared to 2,557 units, the highest since March 2013. This strong performance pushed total developer sales for the first 11 months of 2024 to 6,344 units. It is expected that year-end figures will surpass 6,500 units, exceeding the 6,421 units sold in 2023. According to Huttons’ Yip, this reflects the strength and resilience of the property market and the enduring appeal of property as an asset for wealth creation and preservation.

JLL’s Head of Residential Research, Chia Siew Chuin, notes that the sluggish performance of the private residential market in the first three quarters of 2024 created an atypical year-end scenario. Developers, who had repeatedly postponed launches due to economic uncertainties and hopes for improved conditions, finally rolled out projects in November. This shift from caution to action was prompted by the approaching year-end festive lull and improved market sentiment since the third quarter of 2024.

The speculation is that there might be further property cooling measures due to the unusually high sales in November. However, Chia feels that this is unlikely, unless there is sustained sales momentum into the first quarter of 2025 and a sharp increase in property prices surpassing GDP growth. “Despite close monitoring by authorities, new measures are likely to remain on hold unless clear signs of persistent market overheating emerge,” she added.

Investing in a condo in Singapore comes with many advantages, one of which is its potential for capital appreciation. With its strategic position as a global business hub and strong economic foundation, Singapore consistently attracts high demand for real estate. This has resulted in a gradual increase in property prices over the years, particularly for condos in prime locations. For investors who choose the right time to enter the market and hold onto their properties for a longer period, substantial capital gains can be expected.…