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The latest report by OrangeTee Research & Analytics shows that despite the prevailing high-interest rate environment, private resale home prices remained steady in 3Q2024. According to URA records, the average resale prices for both landed and non-landed private residential homes, excluding executive condos (ECs), remained unchanged at $1,713 psf from 2Q2024 to 3Q2024. However, there were some fluctuations in average resale prices within the 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 reverses the 3.6% drop in prices seen in the previous quarter. In the RCR, prices also increased, growing 1.4% from $1,837 psf to $1,863 psf. However, this was a moderation from the 3.1% growth in the previous quarter. Conversely, the OCR saw a 0.4% drop in average resale prices from $1,495 psf to $1,489 psf in 3Q2024, a turnabout from the 3.5% growth seen in the previous quarter.

When contemplating investing in a Condo, it is crucial to also evaluate its potential rental yield. Rental yield refers to the annual rental income as a percentage of the Condo’s purchase price. In Singapore, Condo rental yields can vary significantly, depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those in proximity to business districts or educational institutions, offer better rental yields. Conducting extensive market research and seeking advice from real estate agents can provide valuable insights into the rental potential of a specific Condo. For more information on Condo investments, visit homesearch-md.com.

Despite these fluctuations, demand for resale homes remained robust, with URA recording 3,860 transactions in the 3Q2024, marking a 1.5% increase from the 3,802 units sold in 2Q2024. OrangeTee notes that this accounted for 71.9% of the total 5,372 residential sales, including new sales, resale, and subsale, in the quarter. This is a drop from the record high of 77.4% market share in 2Q2024.

In the first nine months of 2024, a total of 10,351 resale homes were transacted, showing a 21.8% increase from the same period in 2023. Similarly, the market share of resale homes saw a similar increase, growing from 57.8% in the first three quarters of 2023 to 71.3% this year. According to OrangeTee, this can be attributed to the substantial increase in housing supply, with close to 30,000 private homes completed in the past two years. This has provided buyers with more options and a wider spectrum of housing choices.

The recent launches of Norwood Grand and Meyer Blue in the OCR and RCR respectively have seen strong demand, with units being sold at a premium compared to the average resale prices in those regions. This trend is likely to continue, with the interest rate cuts by the US Federal Reserve expected to spur luxury home sales due to the lower cost of borrowing. However, high-net-worth investors who are less sensitive to interest rate fluctuations may not base their property purchase decisions on mortgage rates.

OrangeTee predicts that the interest rate cuts may encourage more cautious buyers to enter the market, leading to an increase in resale prices over the next few years. This is further supported by the projected decrease in available stock, with only 5,300 private homes expected to be completed in 2025, compared to 9,100 units this year. Barring any major economic crises or unforeseen circumstances, OrangeTee forecasts positive prospects for resale homeowners.…

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On Sunday, November 10, Chinese developer Kingsford Group successfully sold 696 units out of a total of 916 units at Chuan Park, accounting for 76% of the project. According to a Kingsford spokesperson, the average selling price of the units was approximately $2,579 per square foot.

The units sold included two-bedroom, two-bedroom+study, and three-to-five-bedroom units, with Singaporeans making up 93% of the buyers. Permanent residents and foreigners made up the remaining 7%.

Of the units sold, 92% were two- and three-bedroom units, while the remaining 8% were four- and five-bedders. According to Ismail Gafoor, CEO of PropNex, the prices of the units ranged from $1.6 million for two-bedroom units to $4.3 million for a five-bedroom unit. “Overall, we believe the developer has priced the project appropriately, given the overwhelming demand from potential buyers in District 19,” he said.

Chuan Park’s sales as of November 10th (Source: Property Agents)

This makes Chuan Park the best-selling project of 2024 in terms of number of units sold, surpassing the 400 units sold (75%) at the 533-unit Lentor Mansion in March. However, in terms of percentage of units sold, Norwood Grand, which launched in October, remains the leader with 84% of units, or 292 out of 348 units, sold.

According to Marcus Chu, CEO of ERA Singapore, two- and three-bedroom units were the most popular among buyers, most of whom were in their 30s and 40s. He notes that many of the buyers were upgrading from older HDB flats or condominiums in nearby areas. “On the other hand, older buyers who are downsizing from landed properties tend to prefer the larger four- or five-bedroom units,” he adds.

Chuan Park’s sales as of November 10th (Source: Property Agents)

Chuan Park is the first private condominium to launch in the area since the 468-unit The Scala debut in August 2010. The project consists of five blocks – three 22-storeys and two 19-storeys – and two commercial units on a 99-year leasehold site spanning 400,500 square feet. The 916 units range in size from two- to five-bedrooms, ranging from 700 square feet to 1,841 square feet. Prices start from over $1.5 million for a two-bedroom unit, over $2.1 million for a 915 square foot three-bedroom, $3.1 million for a 1,335 square foot four-bedroom, and $3.7 million for a 1,550 square foot five-bedroom.

According to PropNex’s Gafoor, Chuan Park is located in an affluent private residential area, surrounded by the Serangoon Gardens, Li Hwan, and Tai Hwan landed housing estates. Although it is classified as being in the Outside Central Region (OCR), it is close to the boundary of the Rest of Central Region (RCR). Ken Low, managing partner of SRI, points out that it is close to “million-dollar HDB estates”, including Serangoon, Toa Payoh, Ang Mo Kio, Bishan, and the upcoming Bidadari Estate.

ERA’s Chu estimates that there are around 126,000 HDB flats and 54,000 private residential units in “the Golden Triangle of Ang Mo Kio/Bishan, Toa Payoh and Serangoon around Chuan Park”. Based on ERA’s research, 233 HDB flats were sold for over $1 million in the first 10 months of the year in the nearby HDB estates of Ang Mo Kio, Bishan, Toa Payoh, and Serangoon. “These HDB owners are in a good financial position to upgrade to private residential properties should they wish to,” adds Chu.

Chuan Park is next to the Lorong Chuan MRT Station and is surrounded by the landed housing estates of Serangoon Gardens, Tai Hwan, and Li Hwan (Source: EdgeProp Landlens)

According to Huttons’ Yip, Chuan Park’s launch was among the most highly anticipated this year. The preview period from Deepavali Day (October 31) to November 7 attracted over 20,000 visitors, with more than 2,800 checks collected from interested buyers ahead of the sales launch on November 10. Originally scheduled for November 16, the launch was brought forward to November 10. “By bringing forward the launch of Chuan Park, we were able to spread the demand from investors and homebuyers across various newly launched developments,” says SRI’s Low.

Three other projects are scheduled to launch on November 16: the 552-unit Nava Grove at Pine Grove, off Ulu Pandan Road; the 846-unit Emerald of Katong on Jalan Tembusu in the East; and the 504-unit executive condo Novo Place in Tengah in the West. Low anticipates that the robust sales at Chuan Park will carry over to the upcoming launches next weekend, building on the existing interest in these projects. “We are also seeing buyers gravitate towards other ongoing new launches,” he adds. “This momentum provides a welcome boost to an otherwise subdued 2024 market.”

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

To summarize, the decision to invest in a condo in Singapore provides various benefits, such as high demand, potential for increased value, and attractive rental returns. Nevertheless, it is crucial to carefully evaluate elements like location, financing options, government regulations, and market trends. By conducting thorough research and seeking expert guidance, investors can make well-informed choices and maximize their profits in Singapore’s dynamic real estate industry. Whether you are a local investor seeking to diversify your portfolio or a foreign buyer looking for a stable and lucrative investment, Singapore’s condos offer a compelling opportunity.

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

Colliers recently announced the addition of two new leaders to their team in Asia Pacific (Apac) and Japan. Alex Worthington has been appointed as Director of Capital Markets, Key Client Account Management, and Investor Intelligence for Apac. Akira Kuno will join as Deputy Managing Director and Co-Head of Capital Markets in Japan.

Reporting to Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets for Apac, Worthington will be responsible for managing and enhancing key accounts for the region’s largest institutional investors. As Pilgrim explains, his role will drive growth in multi-service revenue and contribute to the development of long-term relationships across Apac.

With a background as a Client Relations Specialist at Palo IT, Worthington brings a wealth of experience to his new position. He also previously served for eight years at JLL Singapore.

Meanwhile, Kuno brings 34 years of experience in Japan’s real estate and financial industries to his new role. He has successfully completed real estate transactions totaling over JPY1 trillion ($8.65 billion), according to Colliers. He will work closely with Yukihiro Ogasawara, Colliers’ Managing Director and Chairman of Japan, to drive the company’s capital markets business in Japan.

Ogasawara comments that Kuno’s impressive leadership skills, extensive market knowledge, and enterprising spirit will provide crucial support to clients in achieving their investment goals. His expertise will also play a vital role in the growth strategy of Colliers in the coming years.

The recent appointments highlight Colliers’ commitment to strengthening their team and providing top-notch services to their clients. With these new leaders on board, the company is well-positioned for continued success and growth in the Asia Pacific region and Japan.

The limited land availability in Singapore is a major factor driving the high demand for condos in the country. Being a small island with a continually increasing population, Singapore is facing a shortage of land for development. As a result, the government has implemented strict land use policies, leading to a highly competitive real estate market. This has caused property prices, especially for condos, to continuously rise, making investing in this sector a highly profitable opportunity for capital appreciation. With the added advantage of condo living, the demand for these properties continues to soar in Singapore.…