Month: December 2024

As the demand for ECs remains strong, developers are continuing to bid aggressively for EC sites. Gafoor expects the take-up rate for these upcoming projects to be strong due to their attractive locations and high-quality offerings, but advises buyers to carefully consider their financial abilities and be mindful of the MSR (Mortgage Servicing Ratio) threshold of 30%, which may limit their loan quantum.

In the coming year, three new executive condos (ECs) are set to launch, with Sim Lian Group’s Aurelle of Tampines leading the pack. The 760-unit development, located at Tampines Street 62, is expected to debut in the first quarter of 2025, most likely after the Lunar New Year. This launch comes on the heels of the success of the 846-unit Emerald of Katong, which is now over 99% sold.

In October 2023, Sim Lian Group secured the site at Tampines Street 62 (Parcel B) for $543.28 million, translating to $721 per square foot per plot ratio (psf ppr) in a government land sales (GLS) tender. With rising construction costs and the harmonisation of gross floor area (GFA) definitions, PropNex CEO Ismail Gafoor believes that Aurelle at Tampines could set a new price benchmark, potentially surpassing the $1,600 psf threshold. This expectation is based on the success of Novo Place EC, launched in November, which achieved an average price of $1,656 psf.

The 760-unit Aurelle of Tampines is located at Tampines St 62 (Parcel B), which Sim Lian purchased in a government land sale for $543.28 million or $721 psf per plot ratio. (Source: EdgeProp Landlens)

Next to Aurelle is the 618-unit Tenet EC, developed through a joint venture between Qingjian Realty, Santarli Realty and Heeton Holdings. Since its launch in December 2022, Tenet has sold 617 units at an average price of $1,384 psf, with only one unit remaining as of December 19, 2024. The site for Tenet, located at Tampines Street 62 (Parcel A), was purchased in August 2021 for $442 million ($659 psf ppr). Notably, Tenet was launched before the implementation of the GFA harmonisation rule, which applies to GLS sites launched for sale after September 1, 2022.

Confident in the strong demand for homes in Tampines and surrounding areas, Sim Lian Group secured another EC site in early November at Tampines Street 95. The developer submitted the highest bid of $465 million ($768 psf ppr) in the tender that closed in October. This price has set a new high for EC land prices. The new EC project at Tampines Street 95 is expected to add 560 units to the market, further boosting the EC supply in the area. Sim Lian Group has a track record in developing projects in the eastern part of Singapore.

Investing in a condo in Singapore has gained significant traction among local and foreign investors, thanks to the city-state’s thriving economy, stable political climate, and exceptional quality of life. The real estate market in Singapore presents a plethora of opportunities, with condos standing out for their convenience, modern amenities, and potential for lucrative returns. If you are considering investing in a property in Singapore, then condos should definitely be on your radar. With top-notch projects like Singapore Projects, let’s delve into the advantages, key aspects to mull over, and steps to follow when investing in a condo in Singapore.

Sim Lian submitted the highest bid of $465 million ($768 psf ppr) for the EC site at Tampines St 95, setting a new benchmark in terms of land price per psf ppr for ECs. (Source: EdgeProp Landlens)

Apart from the Emerald of Katong and the upcoming EC projects in Tampines, the group has also completed Treasure at Tampines, Singapore’s largest private condominium with 2,203 units, in 2023. Located at Tampines Street 11, Treasure at Tampines is a redevelopment of the former privatised HUDC estate Tampines Court, which Sim Lian purchased en bloc for $970 million in 2017.

Launched in February 2019, the 2,203-unit Treasure at Tampines was fully sold within three years at an average price of $1,356 psf. As of December 19, a total of 468 sub-sale and resale transactions have been recorded. Secondary market prices now average $1,699 psf, representing a 25.3% increase over the average launch price.

Sim Lian Group’s private condo, the 2,203-unit Treasure at Tampines was fully sold and completed in phases in 2023. (Photo: Sim Lian Group website)

Another EC project set to launch in 2025 is the 560-unit development at Plantation Close in Tengah Town, developed by a joint venture between Hoi Hup Realty and Sunway Developments. They are the same developers of Novo Place EC. At its launch in mid-November, Novo Place sold 57% of its units over the opening weekend. In the second round of balloting for second-timers — buyers who had previously purchased a subsidised new or resale HDB flat — another 137 units were taken up, bringing total sales to 444 units, or 88.1% of the project as at December 16, 2024.

With an average price of $1,656 psf, Novo Place has set a new benchmark for EC prices. PropNex’s Gafoor attributes the “slightly elevated average pricing” at Novo Place to the fact that 80% of buyers opted for the deferred payment scheme, which carries a 3% premium compared to the normal payment scheme. Despite the higher benchmark price, Novo Place has performed well due to several factors, including the dwindling inventory of unsold EC units and its favourable location. Situated at Plantation Close in Tengah, Novo Place is near the upcoming 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)

The third EC project set to launch, potentially in late 2025, is located at Jalan Loyang Besar in Pasir Ris. A joint venture between Qingjian Realty, Forsea Holdings, and ZACD Group purchased the site for $557 million ($729 psf ppr) in August 2024. The project is expected to yield 710 units. The last EC launched in Pasir Ris was Sea Horizon, which debuted in September 2013 at an average price of $800 psf. By 2024, average resale prices for caveats lodged had risen to $1,290 psf, reflecting a 61.25% increase over the past decade. Given the long gap since the last EC launch in Pasir Ris, pent-up demand is expected.

The last EC launched in Pasir Ris was Sea Horizon, which debuted in September 2013 at an average price of $800 psf. By 2024, average resale prices for caveats lodged had risen to $1,290 psf, reflecting a 61.25% increase over the past decade. (Photo: Google Maps)

In 2025, the supply of new ECs is set to double as the three upcoming projects — Aurelle of Tampines, the Plantation Close EC, and the Jalan Loyang Besar EC — will collectively add 2,030 units to the market, compared to the 1,016 units launched in 2024. The first EC launched in 2024 was Lumina Grand at the end of January. Located at Bukit Batok West Avenue 5, the 512-unit EC is developed by City Developments (CDL). On its launch weekend, 53% of the units were taken up. As of December 17, 444 units (87%) had been taken up. The average price achieved to date is $1,511 psf.

Launched at the end of January, the 512-unit Lumina Grand was over 87% sold at an average price of $1,511 psf as of December 17, 2024. (Picture: CDL)

ECs, a hybrid of public and private housing, remain highly sought after by first-time homebuyers and HDB upgraders as they are still more affordable than private new launches, according to Gafoor. According to PropNex, the median price for new non-landed, 99-year leasehold private homes in the Outside Central Region (OCR) in 2024 is $2,203 psf (as of December 8, 2024). Based on caveats lodged during the same period, this represents a 44% premium over new EC launch prices.…

Ten unprofitable condo resales totaling $9.24 mil losses

The popular luxury condo development Ardmore Park, located in the prestigious Ardmore-Draycott enclave in prime District 10, saw several of the highest resale transaction profits in 2024. According to caveats lodged with the Urban Redevelopment Authority (URA) as of Dec 17, the freehold development recorded the first, second and fourth most profitable condo resale deals between Jan 1 and Dec 10.

The top gain of the year was from the sale of a 2,885 sq ft, four-bedroom unit on the 26th floor of Ardmore Park on Feb 16 for $12.9 million ($4,472 psf). This unit was originally purchased from the developer for $5.83 million ($2,022 psf) in July 1996, resulting in a profit of $7.07 million, or a 121% gain after a holding period of about 27½ years.

The second-highest profit was achieved on July 24, when a four-bedder measuring 2,885 sq ft on the 18th floor sold for $12 million ($4,160 psf). The seller had originally bought the unit in December 2000 through a sub-sale transaction for $5.2 million ($1,803 psf), garnering a $6.8 million profit, or a 131% capital gain after owning the unit for around 23½ years.

The fourth-biggest resale profit of the year was also from a 2,885 sq ft, four-bedroom unit at Ardmore Park, which was sold for $12.5 million ($4,333 psf) on April 22. The seller had bought the unit in February 2007 for $6 million ($2,080 psf). This resulted in a profit of $6.5 million (or 108%) after a holding period of over 17 years.

The 330-unit freehold Ardmore Park, which was completed in 2001, has consistently recorded hefty gains in recent years. In 2024, the condo has seen three other units – all 2,885 sq ft four-bedders – change hands, with the sellers pocketing profits of $2.65 million, $3 million and $3.05 million, respectively. Last year, the condo recorded four resale transactions, with the sellers making profits between $2.8 million and $8.16 million.

Overall, the benefits of investing in Singapore condos are undeniable. These properties have a high demand in the market, which means a potentially higher return on investment. Additionally, there is a good chance for capital appreciation, allowing investors to earn even more profit in the long run. The rental yield for condos in Singapore is also attractive, making it a lucrative option for those looking for a steady stream of income.

However, it is crucial for investors to consider several factors before making a decision. These include the location of the condo, financing options, government regulations, and the current market conditions. Conducting thorough research and seeking professional advice can help investors make well-informed decisions and maximize their returns in Singapore’s dynamic real estate market.

Whether you are a local investor looking to diversify your portfolio or a foreign buyer in search of a stable and profitable investment, Singapore condos present a compelling opportunity. With its vibrant real estate market and attractive investment prospects, it is no wonder that many are drawn to the idea of owning a condo in Singapore.

Other mature, freehold condos in the highly-desirable District 10 area also feature prominently on the top gains list of 2024. Beverly Hill, a boutique condo with only 86 units on Grange Road, was completed in 1983, and saw the fifth-most profitable resale transaction this year as a four-bedder spanning 3,778 sq ft on the fifth floor sold for $9.15 million ($2,422 psf) on July 15. This resulted in a profit of $5.47 million (or 149%) on the deal.

Other freehold condos in District 10 also recorded the most profitable deals of the year. These include Astrid Meadows, a 208-unit development on Coronation Road West; Regency Park, a 292-unit condo on Nathan Road; Fontana Heights, a 52-unit condo on Mount Sinai Rise; and Wing On Life Garden, an 81-unit condo on Bukit Timah Road. These condos, all over 30 years old, were completed between 1982 and 1990.

Outside of District 10, two experiments in prime District 9 also feature on the top profit list for resale transactions. The third-highest profit came from the sale of a 3,434 sq ft, four-bedroom unit at Yong An Park, located on River Valley Road. The unit fetched $8.6 million ($2,505 psf) on Aug 12, resulting in a profit of $6.72 million. Additionally, the sale of a 3,057 sq ft apartment at The Ritz-Carlton Residences Singapore Cairnhill for $16.5 million ($5,397 psf) on Jan 9 made a gain of $4.89 million.

On the other end of the spectrum, Sentosa Cove condos made up almost half of the 10 least profitable condo resale transactions of the year. The biggest loss of the year came from a 3,789 sq ft penthouse at Marina Collection which sold for $6.7 million ($1,768 psf) on July 22. The seller bought the unit in March 2010 for $9.39 million ($2,479 psf), incurring a loss of $2.69 million (29%).

Another Sentosa Cove condo project that saw a substantial resale loss was Seascape, on Cove Way, which saw the second-biggest loss of the year. A 2,680 sq ft, four-bedroom unit on the sixth floor sold for $4.5 million ($1,679 psf) on Aug 14, when the seller had purchased the unit from the developer for $7.03 million ($2,623 psf) in October 2010, resulting in a loss of $2.53 million (or 36%).…

Rewritten:

In the luxury world of the ultra-wealthy, the Good Class Bungalows (GCBs) market has seen a remarkable increase in performance this year compared to 2023, reveals Han Huan Mei, director of research at List Sotheby’s International Realty.

According to URA Realis, as of Dec 20, 22 GCB transactions amounting to $612.05 million have been recorded. In addition, 13 more GCB deals, worth over $700 million, were completed this year without caveats lodged, as buyers looked for confidentiality. This brings the estimated total for 2024 to 35 GCB transactions worth approximately $1.32 billion, exceeding the previous high of $1.186 billion in 2022.

In contrast, 2023 only saw 18 GCB transactions totalling $432.5 million, making it the lowest number of deals recorded since URA Realis began tracking such data in January 1995.

“The additional deals in 2024 demonstrate the active nature of the GCB market, surpassing what official transaction data reveals,” says Han. “It also confirms the highly sought-after status of GCBs as a desirable asset among ultra-high-net-worth buyers.”

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Investing in real estate requires careful consideration of various factors, with location being a crucial one. This holds particularly true in Singapore, where the location of a condo can greatly affect its value. Condos located in central areas or in close proximity to important amenities, such as schools, shopping centers, and public transportation hubs, tend to have a higher appreciation in value. Examples of prime locations in Singapore include Orchard Road, Marina Bay, and the Central Business District (CBD), where properties have shown consistent growth in value over time. The presence of reputable schools and educational institutions in these areas also makes condos there highly sought-after by families, further boosting their investment potential. Singapore Condo is a great addition to the list of desirable locations for real estate investment.

Dominating the charts are the sale of a GCB at Tanglin Hill for $93.888 million, topping the list with a record-breaking land rate of $6,197 psf. The second-highest GCB transaction was the purchase of a property at Bin Tong Park for $84 million, reportedly bought by Xiang Yangyang, daughter of Chinese nickel billionaire Xiang Guangda. This reflects a land rate of $2,988 psf for the 28,111 sq ft land area.

The highest-priced deal based on caveats lodged was for a GCB on Cluny Hill, which sold for $52 million, boasting a freehold plot of 15,141 sq ft. This transaction sets a land rate of $3,434 psf. Another significant transaction was the purchase of a 21,116 sq ft GCB plot at Astrid Hill for $49 million ($2,321 psf) in July, reportedly bought by Glenn Kuok, nephew of Wilmar International’s chairman and CEO Kuok Khoon Hong.

Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), notes that at least 14 transactions this year were valued at $20 million or more, highlighting the demand for ultra-luxury properties in Singapore.

According to him, District 10 remains the pinnacle of the GCB market, with multiple high-value transactions reaffirming its position as the most desirable district for these prestigious properties. Out of the 35 recorded GCB transactions this year, 16 took place in prime District 10, including the highly coveted Tanglin, Bukit Timah, and Holland Road areas.

Sandrasegeran observes that GCB transactions were evenly spread throughout the year, with an increase in buying activity from July. He believes that the fact that GCB deals were closed throughout the year indicates a sustained interest in these trophy properties, despite external economic factors such as inflationary pressures and high interest rates in the first eight months of the year.

Steve Tay, co-founder and executive director of his luxury agency in Singapore, notes that the trajectory of interest rates as signaled by the US Federal Reserve (Fed) was the primary driver of stronger buying sentiment in the GCB market during the second half of the year, more so than the actual rate cuts themselves. The Fed implemented three rate cuts this year, with the most recent being a 25 basis point (bp) reduction on Dec 18, following earlier cuts of 50 bp in September and 25 bp in November.

Tay mentions that buyers who had previously been hesitant began serious discussions from July onwards, resulting in most deals being closed in the last quarter of the year.

The GCB market experienced slower activity last year as buyers held back following the island-wide arrests of suspects in Singapore’s biggest money laundering case, according to Han of List Sotheby’s.

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

Tay mentions that a new generation of ultra-wealthy Singaporeans has emerged in the GCB market in recent years, including young and successful entrepreneurs who have made their fortunes in technology, finance, commodities, and F&B businesses. He also notes that newly naturalized Singaporeans contribute to the exclusive pool of GCB buyers, with a preference for large plots in prime districts. However, the number of naturalized citizens purchasing GCBs remains low compared to local wealthy individuals.

According to research from List Sotheby’s, the cost of developing a new GCB from the ground up is estimated at about $1,000 psf, and construction can take several years to complete. Hence, most buyers are looking for relatively new bungalows in move-in condition to minimize renovation work, explains Han.

Sandrasegeran believes that the GCB market will continue its positive momentum, fueled by demand from ultra-high-net-worth individuals. He also notes that the preference for privacy among GCB buyers and sellers could lead to more off-market transactions, adding another layer of complexity in tracking market activity.…

Singapore’s capital market property deals hit a total value of $25.8 billion between January and November this year, according to Wong Xian Yang, head of research for Singapore & Southeast Asia at Cushman & Wakefield (C&W). 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 notes that almost 60% of the capital market deals were transacted in the second half of 2024, fueled 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 were transacted in the second half of the year.

The largest transaction by absolute price 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). The remaining 50% stake is held by Hong Kong-listed property developer Sun Hung Kai Properties.

ION Orchard is a prominent eight-storey retail mall in the heart of the shopping district, directly linked to the Orchard MRT Station. It boasts a net lettable area of over 623,000 sq ft and is home to more than 300 international and local brands. The mall is topped by a 54-storey, 175-unit luxury condo tower, The Orchard Residences.

(Mapletree Anson was the highest-valued office deal of the year, selling for $775 million in second quarter 2024) (Photo: EdgeProp Singapore)

Investment in industrial assets saw a significant surge this year, with transactions reaching $5.6 billion in the first 11 months of 2024, a 174% increase from last year, according to Wong. The largest deal in this sector was the $1.6 billion divestment of a portfolio of seven industrial properties in Soilbuild Business Space REIT to a joint venture (JV) platform owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group in August. The portfolio consists of 4.5 million sq ft of business parks and specialist facilities across life sciences, technology, advanced manufacturing and logistics.

(Credit: CBRE Research, Cushman & Wakefield)

Soilbuild Business Space REIT is controlled by global asset manager Blackstone and Lim Chap Huat, executive chairman of Soilbuild Group.

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Purchasing a condominium in Singapore offers numerous advantages, one of which is the potential for capital appreciation. Singapore’s position as a prominent global business hub, in combination with its robust economic foundations, creates a continuous demand for real estate. As a result, property prices in Singapore have consistently risen over the years, particularly in prime locations where condos have experienced significant appreciation. Investors who strategically enter the market at the opportune moment and retain their properties for an extended period can reap substantial capital gains. Additionally, the introduction of new condo launches, such as those offered by Homesearch, further bolsters the potential for impressive capital appreciation.

The second-largest capital market deal in 2024 was the divestment of two data centres to Singapore-listed Keppel DC REIT for $1.38 billion. The seller was a 60:40 JV between Keppel and Cuscaden Peak Investments. These data centres – Keppel DC Singapore 7 and Keppel DC Singapore 8 – cater to large-scale data processing and are fully contracted to cloud services, internet enterprises, and telecommunications providers.

(Credit: Keppel)

Wong expects transaction volumes in the sector to reach a five-year high, reflecting high liquidity and investor preference for new economy assets such as prime logistics and life science assets. However, Tricia Song, CBRE head of research for Singapore and Southeast Asia, predicts that industrial rent growth may slow down in 2025, potentially affecting yields.

Despite the unsuccessful sale of several Government Land Sales (GLS) sites this year, residential development sites auctioned via GLS tenders continued to make up the bulk (42%) of total investment sales for the year.

This year, four GLS sites on the Confirmed List for 2024 failed to be awarded: a 6.5ha master developer white site in Jurong Lake District, a 1.73ha white site at Marina Gardens Crescent, a 62,046 sq ft site at Media Circle fully zoned for long-stay serviced apartments, and a 262,875 sq ft site at Upper Thomson Road (Parcel A) that included an SA2 component.

The highest bids for three of these sites – Jurong Lake District ($640 psf per plot ratio (ppr)), Marina Gardens Crescent ($984 psf ppr), and Media Circle ($461 psf ppr) – were rejected by URA for being too low. The Upper Thomson Road site closed in June without any bids.

(Credit: EdgeProp Singapore)

Wong identifies low bid prices driven by specific site concerns and untested markets, as well as interest rate concerns and development risk as main reasons for the unawarded sites.

CBRE’s Song believes this trend may not continue in 2025, as the new sites on the Confirmed List are well distributed across Singapore and close to MRT stations and amenities, catering to a variety of demand and needs.

Wong expects developers to increase their land acquisition activities, but with caution and selectivity. In November, a 50:50 JV between UOL Group and CapitaLand Development agreed to purchase the 255-unit Thomson View condo for $810 million, translating to $1,178 psf ppr. The acquisition price included the land betterment charges and lease upgrading premium for a fresh 99 years. The developer plans to build a 1,240-unit residential project on the 5ha site.

The office segment showed signs of recovery, recording $2.37 billion in investment value, a 15.7% year-on-year increase, according to CBRE’s Song. The market also saw a narrowing price gap between buyers and sellers, supporting the recovery of office deals. Song explains that the market is seeing an increased number of investors targeting attractively priced assets.

(Credit: EdgeProp Singapore)

On the other hand, the shophouse market saw a 49.7% year-on-year decrease in investment value to $584 million. Song attributes the slump to dampened investor sentiment after money laundering investigations in August 2023.

Barring major economic shocks, CBRE Research expects investment volumes to grow by 10% from 2024’s volumes in 2025. CBRE’s Song believes that institutional investors, who had been observing from the sidelines, will return to the market next year. However, she warns that slower and lower-than-expected interest rate cuts may slow down the recovery of capital markets.…

Unexpectedly weak consumer spending is likely to have a negative impact on rental projections for Singapore’s retail real estate market by the end of this year. According to Alan Cheong, executive director of research and consultancy at Savills Singapore, consumer spending in 2024 has been lackluster, with the monthly retail sales index (excluding motor vehicles) and food and beverage (F&B) sales index showing mostly negative year-on-year changes throughout most of the year. Cheong’s forecast for retail properties in the prime Orchard Road submarket is a 2% increase in rents for the full year, which falls slightly short of expectations at the beginning of the year, when a 3% to 5% increase was predicted by Savills.

However, Cheong believes that suburban retail rents will remain steady throughout the end of the year, in line with his initial rental forecast for this segment. Recent research jointly published by DBS and Singapore Management University (SMU) suggests that consumer concerns over higher-than-expected inflation have mostly diminished in recent quarters, with Singaporean consumers’ headline inflation expectations remaining at 3.8% between June and September. The research, led by SMU’s Sim Kee Boon Institute for Financial Economics (SKBI), also found that most Singaporeans who expect inflation to stabilize in the coming quarters cite the global economic slowdown, high interest rates, and the potential easing of supply chain disruptions as the main reasons.

Meanwhile, consumer spending data released earlier this month by the Singapore Department of Statistics shows that retail sales (excluding motor vehicles) increased by 0.3% year-on-year in October, reversing the 1.5% decline in September. Cheong believes that a more positive outcome for the retail market would be a situation where consumer spending keeps pace with inflation. “However, the fact that it has been relatively low means that it could pose financial challenges to businesses in the industry.”

Despite a busy calendar of headline concerts, conferences, and exhibitions in Singapore this year, retail spending and rental rates saw limited support. According to CBRE’s research published late last month, the footfall generated by these events had a nuanced effect on surrounding malls. International concerts by renowned artists like Taylor Swift, Blackpink, Coldplay, and Westlife were a major highlight this year, with the Monetary Authority of Singapore estimating that over half a million attendees at Taylor Swift and Coldplay concerts were foreigners, contributing between $350 million and $450 million in tourism revenue. While concerts usually lead to higher foot traffic in nearby malls such as Kallang Wave Mall and Leisure Park Kallang, which are close to the National Stadium and Singapore Indoor Stadium, other MICE (meetings, incentives, conferences, and exhibitions) events have not had a comparable impact on retail activity, according to CBRE Research.

Singapore also hosted various leisure and business events, including the Formula One Grand Prix, the 25th World Congress of Dermatology, The Meetings Show Asia Pacific, NRF 2024, and ART SG. CBRE observed that people attending business events generally stay only at the event venue. Even the F1 race, one of Singapore’s most notable international events, saw reduced tourist foot traffic in nearby malls before and during the race weekend. While the race generates an average of $125 million in tourism receipts annually, it has not significantly boosted foot traffic in tourist-centric areas such as Orchard Road.

However, Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore, believes that Singapore’s premier status as a regional hub continued to attract noteworthy new-to-market brands this year. “Some notable retail stores that opened in Singapore this year include KSisters, The Pace, Brands for Less, and Hoka. The wellness sector is also evolving with new concepts like Rekoop and Hideaway,” she says. Additionally, new F&B concepts were introduced, including Sushi Samba and coffee chains like Blue Bottle, Grey Box, and Puzzle Coffee. New restaurant concepts that offer entertainment, such as Centre of the Universe, opened in the CBD area, while another new player, Rasa, will open in December, also in the CBD.

New-to-market retail brands, F&B concepts, and wellness experiences have helped bolster demand for retail spaces and rents. As a result, all prime shopping malls along Orchard Road had relatively high occupancy rates this year, as retail businesses have strong confidence in the retail market, according to Savills’ Cheong. “Singapore remains an attractive destination for new-to-market brands entering the region, spanning retail, F&B, and other lifestyle concepts,” adds Tan-Wijaya. She also notes the emergence of new wellness concepts and restaurants offering entertainment, which are expected to enhance the vibrancy of Singapore’s dining scene.

The process of obtaining funding for a condo investment is crucial in Singapore. This country has a variety of mortgage choices available, but it is crucial to familiarize oneself with the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan that can be taken out based on an individual’s income and current debt commitments. It is prudent for potential investors to have a good understanding of TDSR and seek guidance from financial advisors or mortgage brokers to make well-informed decisions and avoid overburdening themselves with excessive debt. To further aid in the decision-making process, one can also consider checking out Singapore Projects.

Next year, retail landlords may have more flexibility to implement positive rental adjustments as the supply of new retail spaces becomes more limited. “This will allow them to strategize and position their malls to remain relevant in the ever-changing consumption patterns of both locals and tourists,” says Cheong. Similarly, he expects more retailers to take the opportunity next year to optimize their real estate strategies, such as right-sizing their spaces, establishing additional kiosks, closing underperforming branches, or shifting cooking operations to central kitchens. “There is strong momentum in the entry of new-to-market F&B brands into Singapore, and this trend is expected to continue through at least the first half of 2025,” says Cheong.…

The year 2024 has proven to be a difficult one for the global luxury goods market. Due to macroeconomic uncertainty and rising prices among brands, consumers have been cutting back on luxury retail spending. A recent report by Bain & Company revealed that global sales of personal luxury goods are expected to decrease by 2% this year, with China, a key market, experiencing a decline of 20-22%. Brands such as Richemont Luxury, LVMH, and Moncler Group have reported a slight decline in earnings, while Kering has experienced more significant decreases.

Investing in a condo in Singapore offers various benefits, with one of the main advantages being the potential for capital appreciation. This is due to the country’s strategic position as a global business hub and its strong economic foundations, which contribute to a constant demand for real estate. In fact, Singapore has experienced a consistent climb in property prices over the years, particularly for condos in prime locations. By purchasing a condo in Singapore at the opportune time and holding onto it for an extended period, investors can reap significant capital gains. For more information, please visit Condo.

However, there have been some outliers in the market. Hermes and Prada Group, which also owns Miu Miu, have seen double-digit earnings growth. Despite these challenges, Singapore remains an important market for luxury brands. According to Euromonitor, sales of luxury goods in the country grew by 11% in 2023, reaching $9.1 billion.

In recent years, luxury brands like Dior, Chanel, and Louis Vuitton have adapted to the changing market by implementing strong digital strategies, including e-commerce and digital marketing, to engage with customers. This is crucial in a world where consumer behaviors, expectations, and preferences are constantly evolving. Luxury brands have also recognized the importance of creating unique physical shopping experiences to build closer connections with their customers.

Some luxury brands have also embraced the strategy of creating personalized experiences for their top-tier clients. Flagship stores are becoming larger and more extravagant. For example, Louis Vuitton opened a 690 sq m “apartment concept” space at Ngee Ann City dedicated to their “VICs” (very important clients) in 2023. Burberry has also recently reopened its extensively renovated stores at Marina Bay Sands and Paragon, showcasing their rich British heritage and blending tradition with innovation.

Other brands, such as Yves Saint Laurent (YSL), have opened new stores and boutiques in Singapore, including a YSL beauty boutique in Raffles City and a world’s largest standalone store on St Martin’s Drive. Richard Mille also opened a 7,500 sq ft store featuring a “speakeasy” concept with a sports bar and dining room.

Despite a challenging year, the luxury goods market is expected to bounce back in 2025 and beyond. This is due to steady growth in high-net-worth individuals, especially in emerging markets like China and Southeast Asia, the interest of Millennials and Gen Z, a resurgence of Chinese tourists, and the continued growth of travel retail. Some future trends for luxury brands include personalization and customization to build deeper connections with customers, and leveraging innovative AI and digital experiences to better understand customer wants and complement offline experiences. Dior’s AI platform, Astra, is one example of how luxury brands are staying attuned to customer preferences. Additionally, Balenciaga’s Paris Fashion Week show for its Winter 2024 collection went viral for its use of AI-driven digital distortions.

While 2024 has been a challenging year for the luxury goods market, there is hope for growth in the years to come as brands increase their store count, create larger flagship stores, and elevate experiences for their top clients. With Millennials and Gen Z making up a significant portion of the market, luxury brands will continue to embrace digital technology and omnichannel strategies to cater to their preferences.…

V-ZUG: Committed to Quality and Simplicity in Design

The world of interior design is constantly evolving, with new styles and trends coming and going. However, there are two elements that will always remain timeless – functionality and elegance. This is the core philosophy behind V-ZUG’s approach to product design.

For over a century, V-ZUG has been a leading brand in luxury appliances, capturing the attention of developers and designers around the world. From its home base in Switzerland to bustling cities like Shanghai, London, and Singapore, V-ZUG appliances can be found in the most prestigious residences.

At the heart of V-ZUG’s design aesthetic is the emphasis on clean lines and sleek simplicity. The brand sets itself apart from others by blending durability and modern aesthetics, seamlessly integrating into any kitchen design.

Quality and craftsmanship are the foundation of V-ZUG’s approach. Each appliance is meticulously handcrafted in Switzerland and undergoes rigorous testing by engineers to ensure top-notch performance. This dedication to excellence is evident in every product, from ovens and cooktops to fabric preservation appliances.

Even before production begins, V-ZUG’s design team conducts in-depth research to determine the most sustainable practices that can be incorporated into each appliance, without compromising on quality.

In line with their commitment to sustainability, the brand has recently introduced Circle-Green recycled stainless steel by Outokumpu, which releases only 7% of the emissions associated with traditional stainless steel production.

Purchasing a condo has numerous advantages, one of which is the opportunity for leveraging the property’s value to make further investments. This method is commonly used by investors who utilize their condo as collateral to secure additional financing for new investments. This allows them to expand their real estate portfolio and potentially increase their returns. However, this strategy also carries risks, so it is essential to have a well-structured financial plan and carefully consider potential market fluctuations.

In order to ensure that their kitchen appliances meet the needs of even the most discerning home chefs, V-ZUG collaborates with Michelin-starred chefs during the design process. This ensures that each product is equipped with the necessary features to create the most high-quality dishes. V-ZUG’s designs elevate the everyday cooking experience, making professional-grade kitchen technology accessible to passionate home chefs.

In addition to functionality, V-ZUG also places great importance on aesthetics. Their minimalist approach to design ensures that their products seamlessly integrate into any home. With a wide range of appliances to choose from, there is something to suit every household.

Take, for example, their series of wine cabinets, which includes the full-height WineCooler V6000 Supreme and the WineCooler Undercounter Swiss Luxury (UCSL). These cabinets come in various sizes, but all have two temperature zones for optimal storage of different types of wine. This versatility allows for greater customization to fit the unique needs of each home, while maintaining the same level of quality that V-ZUG is known for.

Consistency is another defining factor in V-ZUG’s design. The brand prioritizes clean, sleek lines throughout their range, with features such as mirrored glass fronts that tie everything together seamlessly.

Creating a simple yet elegant end product is no easy task. At V-ZUG, every detail is taken into consideration, from the way a wine cabinet’s doors open and close to the hue of the LED lights on a refrigerator. The brand’s excellence is achieved when all these elements work together to create a harmonious and practical home.

Beyond the kitchen, V-ZUG also offers products such as the RefreshButler, which sanitizes and deodorizes garments, showcasing the brand’s commitment to quality and simplicity in every aspect of the home.

In today’s fast-paced world, where trends come and go, V-ZUG’s focus on timeless designs and impeccable quality guarantees that their products will continue to enhance homes for generations to come.…

On December 4th, VisionPower Semiconductor Manufacturing Company (VSMC) officially began construction on their new US$7.8 billion ($10.5 billion) wafer manufacturing facility in Tampines. The plant is set to open in 2027 and is estimated to produce 55,000 wafers per month by 2029, creating 1,500 job opportunities. The company is a joint venture between Taiwan’s Vanguard International Semiconductor Corporation and the Netherlands’ NXP Semiconductors.

However, VSMC is not the only player expanding their operations in Singapore. In March, Japan’s Toppan Holdings also started building a semiconductor packaging materials factory in Jurong Lake District, with an investment of around $450 million. According to Leonard Tay, head of research at Knight Frank Singapore, many chipmakers and related businesses are setting up new production plants and R&D campuses in Singapore to improve their supply chain resilience. He also notes that Singapore’s stability in the midst of ongoing geopolitical tensions in other parts of the world makes it a global hub for semiconductor production and chips.

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When purchasing a condominium, it is crucial to take into account the ongoing maintenance and management of the property. Condos typically have maintenance fees that cover the expenses of maintaining shared areas and amenities. Although these fees may increase the overall cost of owning a condo, they also guarantee that the property is well-maintained and maintains its value. Engaging a property management company can further assist investors in the day-to-day management of their condos, making it a more hands-off investment. Additionally, staying up-to-date on new condo launches can provide potential buyers with more options and opportunities for investment.

This expansion in the semiconductor industry comes after a downturn in 2023 due to lower demand and higher supply. However, the sector has bounced back, recording a 26% year-on-year increase in revenue for the first three quarters of 2024, reversing the 9% decline in 2023. This has also had a positive impact on Singapore’s manufacturing sector, which saw 11% year-on-year growth in 3Q2024, led by the electronics cluster.

While industrial rents continued to increase in the first three quarters of 2024, the rate of growth has gradually slowed compared to the previous year. This is due to a more cautious sentiment among occupiers amidst an uncertain macroeconomic environment. This can also be seen in the fluctuations in rental transaction volumes throughout the year. According to Catherine He, Colliers’ head of research for Singapore, occupiers are valuing flexibility in their leasing decisions to adapt to changing market dynamics.

Tricia Song, head of research for Singapore and Southeast Asia at CBRE, adds that consolidation in the third-party logistics and e-commerce industries has also contributed to growing occupier resistance. However, different industrial segments have been affected differently, with multiple-user factories and warehouses remaining relatively resilient and registering rental growth throughout the year. On the other hand, the single-user factory and business park segments saw a decline in rents in 3Q2024.

Despite this, the industrial sales market saw more activity with several large transactions taking place in 2Q2024, followed by a further boost in the third quarter. This includes the sale of a portfolio of seven industrial assets from Soilbuild Business Space REIT to a joint venture between Warburg Pincus and Lendlease Group for $1.6 billion. However, Alan Cheong, executive director of research and consultancy at Savills Singapore, believes that these big-ticket deals are likely a one-off and the market may see one or two large transactions in 2025, but significantly below $1 billion.

Looking ahead, JTC estimates 0.2 million sqm of new industrial space to be completed in 4Q2024 and a further 1.6 million sqm in 2025, almost double the average annual new supply in the past three years. This, coupled with weaker demand, may result in a supply-demand imbalance and slower rental and price growth in the near future. However, demand for multiple-user factory space, centrally located food factories, and logistics space is expected to remain healthy, with the electronics and advanced manufacturing sectors also attracting investments. On the other hand, business park rents may continue to face pressure as companies downsize in response to flexible working arrangements.…

Kassia – the only new launch project in the East outside the city fringe – to preview July 18Read the latest Property Zone articlesRevisit past Property Zone articles

When contemplating an investment in a condo, it is crucial to also evaluate its potential rental yield. This refers to the annual rental income as a percentage of the property’s cost. In Singapore, rental yields for condos can greatly differ based on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those close to business districts or educational institutions, offer better rental yields. Thorough market research and seeking guidance from real estate agents can offer valuable insights into the rental potential of a specific condo. For more information on potential investment opportunities, check out Singapore Projects.

The real estate market in 2024 was marked by two distinct halves. The first half was slow, with a focus on boutique developments and the lowest number of units launched for sale since 1H1996, according to data from Huttons Analytics. This trend was reflected in sales volume as well, with only 1,889 units sold – the lowest figure since 1996.

One exception to this trend was the launch of Lentor Mansion in March, which saw a 75% take-up rate. However, most other project launches in the first half of 2024 saw lackluster sales compared to the previous year. According to Mark Yip, CEO of Huttons Asia, this could be due to uncertainties in the job market and high interest rates, leading buyers to hold back and wait for more highly anticipated projects later in the year, such as Chuan Park and Emerald of Katong.

Being on the lookout for new launches is a good idea, to keep track of prices and unit availability.

The launch of Kassia in late July, a freehold development with 276 units, marked a turning point in the market. It achieved a 52% take-up rate and set the stage for a surge in sales after the Lunar Seventh Month. This was followed by the launch of 8@BT at Bukit Timah Link in September, where 53% of units were sold at an average price of $2,719 psf.

In the third quarter of 2024, new home sales increased by 60% compared to the previous quarter, as reported by Huttons. This shift in sentiment was attributed by some to the 50-basis point interest rate cut by the US Federal Reserve in September.

Further evidence of the growing sales momentum came in October, when over 50% of units at Meyer Blue were sold in private sales at an average price of $3,260 psf, setting a new benchmark for the prime District 15 area on the East Coast. Another notable project was Norwood Grand in Woodlands, with 84% of its units sold over its launch weekend in October. This marked the first time a Woodlands development surpassed the $2,000 psf mark, with units transacted at an average price of $2,067 psf.

The launch of Norwood Grand, the first in Woodlands in 12 years, was a strong indication of growing buyer confidence and demand, according to Yip. This momentum continued into November, with a record-breaking six projects launched over 10 days, comprising a total of 3,551 units.

The rush of activity began with the launch of The Collective at One Sophia, followed by Union Square Residences at Havelock Road, Chuan Park, Emerald of Katong, Nava Grove, and Novo Place executive condo (EC). By the end of November, developer sales had reached 2,557 units – the highest figure since March 2013.

This strong performance in November pushed total developer sales for the year up to 6,344 units. It is expected that the year-end figures will surpass 6,500 units, exceeding the 6,421 units sold in 2023. This demonstrates the resilience and strength of the property market, highlighting its role as an asset for wealth creation and preservation.

While the sluggish market performance in the first three quarters of 2024 led to an atypical year-end, with a surge in activity and sales in November, experts do not anticipate any regulatory intervention at this time. According to Chia Siew Chuin, JLL’s head of residential research, any intervention would only occur if sales momentum continues into the first quarter of 2025 and property prices increase sharply, outpacing GDP growth. However, she believes that despite close monitoring by authorities, new measures are unlikely to be implemented unless there are clear signs of persistent market overheating.

In conclusion, the property market in 2024 saw a slow start, but strong sales momentum in the latter half of the year. Despite uncertainties and caution in the first half of the year, the market picked up in the second half, with developers launching projects in a year-end rush. With the year-end figures expected to surpass the previous year, the property market has proven its resilience and enduring appeal as an asset for wealth creation and preservation.…