Condo Siteismi

Source: Huttons

One major factor to consider when investing in condos in Singapore is the government’s property cooling policies. In order to maintain a stable real estate market and prevent excessive speculation, the Singaporean government has implemented various measures over the years. These include the imposition of Additional Buyer’s Stamp Duty (ABSD) which results in higher taxes for foreign buyers and those purchasing multiple properties. While these measures may have an impact on the immediate profitability of condo investments, they also contribute to the long-term stability of the market, making it a more secure environment for investment. Furthermore, with the ongoing launches of new condos, such as those found on New Condo Launches, there is a continuous supply of attractive investment opportunities for potential buyers.

The highly anticipated sales launch for Novo Place, a 504-unit executive condominium (EC) in Tengah, began on the morning of November 16, with strong take-up reported. Jointly developed by Hoi Hup Realty and Sunway Developments, the EC sold 286 units, which accounted for 57% of the development, at an average price of $1,654 per square foot (psf).

According to Mark Yip, CEO of Huttons Asia, “It is a strong take-up, reflecting robust demand from buyers seeking an affordable private residential lifestyle.” He also noted that the take-up rate could have been even higher if not for the 30% quota for second-timers, which may need to be reconsidered by the government.

The split between first- and second-timer buyers was 47% and 53%, respectively, with 151 units allocated for second-timers. However, the CEO of PropNex, Ismail Gafoor, reported that the quota was fully taken up by 1 pm on launch day, and second-timers will have another opportunity to purchase units when the quota is lifted 30 days later, starting from December 16.

Of the 287 units sold at Novo Place, 76% of buyers opted for the deferred payment scheme, which allows them to secure their preferred unit first and service the loan later, easing the financial burden for HDB upgraders. Additionally, buying a new EC grants upfront remission on the Additional Buyer’s Stamp Duty (ABSD), providing greater flexibility for HDB upgraders.

Located in Tengah’s Plantation district, the development is within walking distance to the upcoming Tengah Park MRT Station on the future Jurong Regional Line, which is expected to be completed by 2028. Novo Place comprises seven 18-storey residential blocks with three- to four-bedroom plus-study units. The three-bedroom plus-study units are 97% sold, while the four-bedroom units are fully sold, and the four-bedroom plus-study units are more than half sold.

According to Yip, these sales results are in line with the demand from HDB upgraders who are looking for a bigger space and greater flexibility in terms of space usage. He also notes that with future EC launches expected to be priced higher due to rising land and construction costs, current EC buyers are in a more advantageous position.

The only EC project launched this year, the 512-unit Lumina Grand at Bukit Batok West Avenue 5 by City Developments Ltd, was launched in January and is 84% sold to date at an average price of $1,510 psf.

Eugene Lim, key executive officer of ERA Singapore, says, “With the cost of land and construction continuing to rise, future EC launches are expected to be priced higher than current ones, making the current buyers better off in their purchase decision.”…

Singapore’s Real Estate Developers’ Association (REDAS) recently celebrated its 65th anniversary in a grand event held at the Marina Bay Sands ballroom on November 15. During his welcome speech, President of REDAS Tan Swee Yiow remarked that turning 65 may often signify receiving retirement payouts from the Central Provident Fund (CPF) for some individuals. The guest of honour at the event was President of Singapore Tharman Shanmugaratnam.

REDAS, formerly known as the Singapore Land and Housing Developers’ Association, was established in 1959 – six years before Singapore attained independence. Its founders were a group of far-sighted developers who played a crucial role in shaping the nation’s real estate landscape. One of these pioneers was the late Lee Kim Tah, founder of the Lee Kim Tah Group. The family business started off as a materials supplier to the British army in the 1920s before transitioning into a contractor and developer, responsible for numerous iconic buildings in Singapore. Another pioneer was Lee Chin Chuan, who founded Hotel Royal in 1968 and served as its executive chairman and director until his passing in 2018. The third pioneer was Tay Beng Swee, a private property developer who set up his business in 1962.

President Tan spoke of the important contributions these pioneers made towards laying the foundation for Singapore’s growth. He noted that the real estate industry played a critical role in nation-building, shaping not only the physical landscape but also driving social progress and creating job opportunities. In 2019, the industry contributed nearly $20 billion to Singapore’s GDP and employed 16% of the workforce, providing 602,000 jobs. President Tan also highlighted the industry’s significant role in shaping Singapore’s skyline, from early skyscrapers to iconic projects such as Golden Mile Complex, OCBC Centre, Raffles City, The Fullerton Hotel, and South Beach. He added that developments like Marina Bay and Jewel Changi Airport are prime examples of how the industry has helped Singapore become a global financial hub and a top destination.

In recent years, real estate has evolved beyond just physical space. President Tan mentioned that the industry has gained international recognition for landmark eco-friendly designs and world record-breaking green spaces, setting new standards and reinforcing Singapore’s commitment to responsible and forward-thinking development.

At the event, the REDAS Lifetime Achievement Award was presented to Chia Ngiang Hong, Group General Manager of City Developments Ltd (CDL). The award recognizes individuals who have made lasting contributions to the community, environment, and REDAS. During his acceptance speech, Chia, who has dedicated 45 years to CDL, humorously remarked on how he has managed to “survive” at the company. He also expressed his gratitude towards the three generations of the Kwek family – the founder, the late Kwek Hong Png; the current executive chairman, Kwek Leng Beng; and the group CEO, Sherman Kwek – for their unwavering support and inspiration throughout his career. Chia was brought into REDAS by Kwek Leng Beng, who is also a patron of the association, during the mid-1980s, amidst the Pan-El crisis. He was later invited to assist one of the subcommittees of the Property Market Consultative Committee (PMCC) formed under the Ministry of Finance. Since then, Chia has actively served on the REDAS Council for over 30 years.

When it comes to purchasing property in Singapore, it is crucial for international investors to have a firm grasp of the regulations and limitations that are in place. Unlike landed properties with stricter ownership regulations, foreigners can generally purchase condos without much restriction. However, it is important to note that foreign buyers are required to pay the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their first property purchase. Despite this extra expense, the steady and promising growth potential of the Singapore real estate market continues to attract foreign investment. Singapore Projects are also highly sought after in this lucrative market.

Chia also reflected on REDAS’s pivotal role in providing constructive feedback to the government on private sector policies and advocating for the real estate industry over the decades. He served as REDAS president for two terms – from 2019 to 2020 and 2021 to 2022 – during the challenging period of the Covid-19 pandemic. Chia recounted how the industry faced insurmountable challenges during this time, but REDAS sprang into action, proactively joining various committees alongside government agencies to guide the sector through the confusion and chaos. He found it rewarding to work closely with stakeholders and the government, and together, they were able to weather the storm and emerge stronger and more prepared, accelerating the transformation of Singapore’s built environment.

Chia expressed confidence in the next generation of leaders who would continue to uphold the values that have guided REDAS and lead Singapore’s transformation and growth with purpose, paving the way for boundless potential for the future.…

Tuan Sing Holdings, a company listed on the Singapore stock exchange, has announced its plans to redevelop its mixed-use properties located at 121-131 Collins Street and 23-25 George Parade in Melbourne.

The company’s subsidiary, Grand Hotel Group (GHG), has engaged Urbis Ltd, an urban design firm based in Hong Kong, to submit a Town Planning Application to the City of Melbourne for the proposed works.

Currently, the properties house the 550-room Grand Hyatt Hotel and various retail spaces. The reconstruction will mainly focus on modifying the façade, refurbishing extensively, and reconfiguring spaces in the property’s podium from levels 4 to 9B. This will allow the business operations for tenants and the Grand Hyatt Hotel to continue as usual.

.

When it comes to investing in a Singapore Condo, securing adequate financing is a crucial step. With a plethora of mortgage options available, it is vital to be well-informed about the Total Debt Servicing Ratio (TDSR) framework. This framework imposes a limit on the amount of loan that a borrower can obtain, considering their income and existing debt obligations. Seeking guidance from financial advisors or mortgage brokers can help investors gain a thorough understanding of the TDSR and make sound decisions about their financing strategy. This way, they can avoid taking on excessive debt and avoid over-leveraging themselves.

Interested in investing in properties overseas? Take a look at the various projects available for sale worldwide.

Once completed and subject to regulatory approvals, the site will have a total gross floor area of approximately 909,550 sq ft and will feature a new luxury retail and F&B precinct.

According to Tuan Sing, the CEO William Liem states that the redevelopment of the podium at 123 Collins Street will redefine connectedness and activation at one of the most prominent intersections in Melbourne’s famous Paris End. He further adds that by adopting the right approach, this transformation can serve as an architectural statement of the company’s environmental stewardship. By reimagining the existing structure rather than rebuilding, Tuan Sing is pursuing an inherently sustainable vision that supports a thriving, connected, and culturally vibrant Melbourne for generations to come.…

SRI auctioning two-storey HDB shophouse at Bukit Merah Central on Nov 27

SINGAPORE (EDGEPROP) – A well-located shophouse located along Bukit Merah Central will be available for bidding at the upcoming auction by SRI on November 27. With a spacious floor area of 1,582 sq ft, the shophouse is expected to fetch a guide price of $2.55 million or $1,612 psf.

Being up for sale for the very first time, this property is an owner’s sale, as mentioned by Eric Liew, manager of auction sales at SRI. “The owner intends to sell the property due to investment liquidation,” he says.

This shophouse comes with a 103-year lease starting from 1980, which means that there are 59 years remaining on the lease. The ground floor, which occupies 732 sq ft, is zoned for commercial use, while the upper floor of 850 sq ft is zoned for residential use.

The shophouse is fully tenanted and will be sold with its current tenancies. The ground floor is currently leased to Domino’s Pizza restaurant until 2026, while the upper floor is leased to a residential tenant until 2027.

The limited supply of land is one of the main driving forces behind the strong demand for condos in Singapore. As a small island nation with a constantly increasing population, Singapore struggles with a shortage of land for development. This has resulted in strict land use regulations and a fiercely competitive real estate market, where property values consistently soar. As a result, investing in real estate, especially in the form of condos, has become a highly profitable opportunity with the potential for significant capital growth. In fact, Singapore projects are highly sought after due to this scarcity of land.

Interested parties are advised that foreign investors are eligible to purchase this HDB shophouse as it is classified as commercial property. However, additional buyer’s stamp duty will be applicable on the residential component while the commercial component will be subject to goods and services tax.

Liew mentions that there have been several enquiries about the property from potential buyers. “The location of the shophouse in the central area of Bukit Merah has been the main attraction for investors,” he adds.

The shophouse is situated within Bukit Merah Town Centre which boasts a variety of amenities such as shops, a polyclinic, a food centre, and even a boutique convention centre named Rubikon. There is also a performing arts centre, Gateway Theatre, located within this central area.

The shophouse is conveniently located within walking distance of Bukit Merah bus interchange, Gan Eng Seng Primary School, and Bukit Merah Secondary School. This location is also a roughly 15-minute walk from Redhill MRT Station.

Based on data from EdgeProp Research, the latest commercial transaction at 161 Bukit Merah Central involved the sale of a 1,582 sq ft shophouse at $1.5 million ($948 psf) in March 2021.

Keep up with the latest rental trends at Bukit Merah Central here.…

Tuan Sing Holdings, a property developer and investment firm listed in Singapore, has announced its plans to reconstruct two mixed-use properties in Melbourne. The properties, located at 121-131 Collins Street and 23-25 George Parade, will be redeveloped by Tuan Sing’s wholly-owned subsidiary, Grand Hotel Group (GHG). Urbis Ltd, an urban design firm based in Hong Kong, has been instructed to submit a Town Planning Application to the City of Melbourne for the proposed works.

Investing in a condominium in Singapore has become a well-liked option for both local and foreign investors, thanks to the country’s strong economy, stable political climate, and excellent quality of life. With a dynamic real estate market, Singapore offers a plethora of opportunities, but condos are particularly appealing for their convenience, amenities, and potential for attractive returns. In this article, we will delve into the advantages, important factors to consider, and necessary steps to take when investing in a condo in Singapore, including updates on newly launched condo developments.

Among the properties currently on the site are the 550-room Grand Hyatt Hotel and various retail spaces. In the reconstruction process, much of the existing podium structure will be retained, allowing tenants and the Grand Hyatt Hotel to continue their business operations as usual. The focus of the reconstruction will be on façade modifications, extensive refurbishment, and reconfiguration of spaces in the podium from levels 4 to 9B, as announced by Tuan Sing on Nov 14.

Upon completion and subject to regulatory approvals, the site’s total gross floor area (GFA) will reach approximately 909,550 sq ft. The project will also introduce a new luxury retail and F&B precinct. CEO of Tuan Sing, William Liem, believes that the podium redevelopment at 123 Collins Street will redefine connectedness and activation at one of Melbourne’s most prominent intersections in the storied Paris End. He adds, “With the right approach, this transformation can be an architectural statement of our environmental stewardship. By reimagining rather than rebuilding, we’re pursuing an inherently sustainable vision that supports a thriving, connected, and culturally vibrant Melbourne for generations to come.” For those interested in investing in overseas properties, Tuan Sing offers a range of projects available for sale around the world.…

Huttons Asia hires up to 40 staff from CBRE Reshaping and Recruitment unitCOMMENTARY: Plenty of life in the shophouse market “The shophouse market continues to attract interest from investors in 3Q2024 despite a dip in the number of caveated transactions,” according to the latest quarterly shophouse market report by Huttons Asia. Although only 18 shophouse transactions were officially recorded, sources claim that a number of other deals were concluded in the same period, particularly for shophouses located in Districts 1 and 2. These deals are estimated to have a combined quantum of more than $70 million, highlighting the appeal of shophouses as a tangible and potentially lucrative investment asset. Huttons’ senior director of data analytics, Lee Sze Teck, believes that the recent interest rate cuts have contributed to the growing demand for shophouses as a means of wealth creation and preservation. With this trend expected to continue, it is anticipated that both transaction volume and values will see an increase in 4Q2024.

Rewritten:
A Singapore Condo can bring many benefits to investors, including the opportunity to leverage the property’s value for additional investments. This means that investors can use their condo as collateral to secure financing for new ventures, ultimately increasing their real estate portfolio. While this can lead to higher returns, it also comes with risks. It’s important to have a solid financial plan in place and carefully consider the potential impact of market fluctuations. Overall, investing in a Singapore Condo can offer investors a valuable opportunity for growth and diversification.…

One of the top advantages of investing in Singapore Condo is the potential for a rise in property value over time. Being a major hub for business and commerce, Singapore has a strong economy that continuously drives the demand for real estate. This has resulted in a steady increase in housing prices across the country, especially in prime areas with luxurious condo developments. With a strategic approach and a long-term hold on properties, wise investors can enjoy significant returns from capital appreciation in this thriving market.

CapitaLand Development (CLD) has received an overwhelmingly positive response to two of its latest projects in Vietnam. The developer launched a preview of Orchard Hill on October 26, a 774-unit high-rise development located in Binh Duong New City, around 30km from Ho Chi Minh City. Orchard Hill is the second phase of Sycamore, a joint venture between CLD and United Overseas Australia, which offers a mix of 3,500 freehold units in low-, mid-, and high-rise developments. Within days of the preview, 694 units, or 90% of Orchard Hill, were booked, with a high demand for one- and two-bedroom units. The project is expected to be completed by the fourth quarter of 2026.

On November 9, CLD also held an exclusive preview of The Senique Hanoi, a high-rise residential project located in East Hanoi with 2,150 units. The developer has reported bookings for 92% of the units, and the project is being developed in collaboration with Mitsubishi Estate and Nomura Real Estate Development. The Senique Hanoi is scheduled for completion in 2027.

This strong response for The Senique Hanoi follows the successful launch of the third and final phase of CLD’s Lumi Hanoi residential development in October. Within a day of its launch, 678 out of 697 units were sold, representing a take-up rate of 97%. The entire 3,950-unit Lumi Hanoi development is now 99% sold.…

One of the advantages of investing in a condo is the opportunity to leverage its value for other investments. In fact, numerous investors use their condos as collateral to secure additional financing for new investments, allowing them to grow their real estate portfolio. While this approach can potentially increase profits, it also carries some risks. Therefore, having a solid financial plan and carefully considering the effects of market fluctuations is essential. Considering Singapore Projects can also be a valuable addition to this strategy.

CapitaLand Integrated Commercial Trust (CICT) has successfully completed the sale of 21 Collyer Quay, an office building situated in Raffles Place, for a total amount of $688 million. In accordance with a filing to the Singapore Exchange dated November 12, the 999-year leasehold establishment had been purchased by an unrelated third party. With a net lettable area of approximately 213,000 square feet, the building was acquired at a price of $3,230 per square foot.

The sale price was determined based on a willing-buyer-willing-seller agreement, in line with the independent valuation of the property carried out by Savills. In light of the consideration paid and the building’s annualised net property income for the period ending September 30, 2024, CICT’s exit yield stands at approximately 3.5%. The sale of 21 Collyer Quay is expected to generate net proceeds of around $681.7 million.

Situated within the Central Business District, 21 Collyer Quay is a 21-storey building. WeWork, a co-working operator, currently occupies the entire space after taking over the lease from HSBC in 2021. This move was made after HSBC relocated its headquarters to Marina Bay Financial Centre Tower 2. Following a design and fit-out of the premises, WeWork officially commenced operations at the flagship location in September 2022.

In other news, CapitaLand Integrated Commercial Trust has announced a rise in revenue and net property income for the first nine months of fiscal year 2024. The company’s website reveals that WeWork Singapore holds a seven-year lease for 21 Collyer Quay until 2028. Despite filing for bankruptcy in the US in November 2023, WeWork announced in April of this year that it had reached an agreement with its Singapore office landlords and intends to maintain its presence in the city-state for the foreseeable future.…

The strong interest in Singapore’s shophouse market continues, despite a decline in the number of caveated transactions in the third quarter of 2024. According to the latest quarterly shophouse market report published by Huttons Asia on Nov 12, there were only 18 caveats lodged for shophouse transactions in 3Q2024, compared to 21 in 2Q2024. This may seem like a decrease, but the report states that the total transacted quantum of the caveated shophouses was still $138.9 million for the quarter, which is only 28.8% lower than the previous quarter. In fact, the report shows that the level of interest in shophouses is still high, with several deals being made in 3Q2024 that were not caveated.The report also highlights that the interest in shophouses is not just limited to caveated transactions. According to market sources, multiple shophouses along popular streets like Amoy Street, Neil Road, and Telok Ayer Street in districts 1 and 2 were sold in 3Q2024, despite not being caveated. These shophouses were estimated to have a total quantum of over $70 million, showcasing the continued demand for this market segment. Senior Director of Data Analytics at Huttons Asia, Lee Sze Teck, believes that investors are attracted to the shophouse market due to its scarcity and potential for strong capital gains. With the recent cuts in interest rates, shophouses are becoming increasingly popular as a wealth creation and preservation asset. Lee also predicts that the number of shophouse transactions and quantum may rise in the fourth quarter of 2024.

.

Singapore’s cosmopolitan cityscape is recognizably defined by towering skyscrapers and state-of-the-art infrastructure. In this city-state, Condos are widely scattered throughout prime locations, offering a harmonious blend of opulence and convenience that appeals to both locals and foreigners. These condominiums boast an extensive range of facilities, including luxurious swimming pools, well-equipped gyms, and top-notch security services, all of which contribute to a highly desirable and comfortable living experience. This makes them an attractive choice for both potential tenants and buyers. Moreover, these modern amenities also mean higher rental yields and increasing property values over time, making them a lucrative investment option for property investors. With the constant influx of New Condo Launches, the condo landscape of Singapore continues to evolve, catering to the demands of a diverse and discerning population.…

According to a recent report by OrangeTee Research & Analytics, private resale home prices in 3Q2024 remained stable despite the high-interest rate environment. URA records showed that the average resale prices for both landed and non-landed private residential homes, excluding executive condos (ECs), stayed unchanged at $1,713 psf from the previous quarter.

When evaluating an investment in a condo, it is crucial to also examine its potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yield for condos can vary greatly depending on factors like location, property condition, and market demand. Generally, areas with a high demand for rentals, such as those near business districts or educational institutions, offer higher rental yields. It is important to conduct thorough market research and seek guidance from real estate agents to gain insights into the rental potential of a specific condo. Condo should be carefully considered before making any investment decisions.

However, there was some fluctuation in average resale prices across the three regions – Core Central Region (CCR), Rest of Central Region (RCR), and Outside of Central Region (OCR). In the CCR, there was a 1.6% increase from $2,145 psf in 2Q2024 to $2,181 psf in 3Q2024. This partially reversed the 3.6% decrease seen in the previous quarter. The RCR also saw an increase in average resale prices, growing by 1.4% from $1,837 psf to $1,863 psf. This was a moderation from the 3.1% growth in the previous quarter. On the other hand, the average resale prices in the OCR dropped by 0.4% from $1,495 psf to $1,489 psf, a turnaround from the 3.5% increase seen in the previous quarter.

Despite these fluctuations, there was still a robust demand for resale homes as seen in the volume of transactions. URA recorded 3,860 resale homes sold in 3Q2024, a 1.5% increase from the previous quarter. This accounted for 71.9% of a total of 5,372 residential sales (including new sales, resale, and subsale) in the same quarter. However, this is a decrease from the market share of 77.4% recorded in 2Q2024, which was the highest on record. OrangeTee attributes this robust demand to the substantial increase in housing supply, with close to 30,000 private homes completed in the past two years. This widened the range of housing options for potential buyers, leading to an increase in resale transactions.

The report also notes that buyers may be turning to the secondary market for lower-cost private housing as new private home prices remain high. This is evident in the recent launches of Norwood Grand and Meyer Blue, with average prices of $2,086 psf and $3,252 psf, respectively, representing significant premiums above the average prices of resale units in their respective regions.

Furthermore, the recent interest rate cuts by the US Federal Reserve may also spur luxury home sales as it reduces the cost of borrowing. However, high-net-worth investors may not be as sensitive to interest rate fluctuations and are less likely to base their property purchase decisions on mortgage rates. Nonetheless, with interest rates lowered, buyers who were previously cautious may now be more inclined to enter the market.

Looking ahead, OrangeTee predicts that resale prices will continue to grow in the next few years as the available stock is projected to decrease. With approximately 5,300 private homes expected to be completed in 2025, there will be a significant increase from the 9,100 units expected to be completed this year. Barring any major economic crises or unforeseen circumstances, OrangeTee expects positive prospects for resale homeowners.…