Newsletter Oct 2023
By Kelvin Sin | Livefree.sg | 27 October 2023
1. Market
2. New Projects
3. Land Sales & Enbloc
4. HDB
3Q 2023 Property Price Index, Prices, Volume & Rentals
Private housing prices increased marginally by 0.8% in 3rd Quarter 2023, following the 0.2% decline in the preceding quarter. The average quarterly price increase of around 0.3% over the past two quarters was lower than the average quarterly increase of 2.1% in the whole of 2022. Prices of non-landed properties in Core Central Region (CCR) declined by 2.7% in 3rd Quarter 2023, following the 0.1% decrease in the previous quarter. Prices of non-landed properties in Rest of Central Region (RCR) increased by 2.1% in 3rd Quarter 2023, compared with the 2.5% decrease in the previous quarter. Prices of non-landed properties in Outside Central Region (OCR) increased by 5.5%, compared with the 1.2% increase in the previous quarter. The price increase for non-landed properties was attributed to higher prices in the Rest of Central Region (RCR) and Outside Central Region (OCR) supported by resilient demand from local owner-occupiers, though these were partially offset by price declines in the Core Central Region (CCR). Prices of landed properties decreased by 3.6% in 3rd Quarter 2023, reversing the 1.1% increase in the previous quarter. Prices of non-landed properties increased by 2.2% in 3rd Quarter 2023, compared with the 0.6% decrease in the previous quarter. Private residential property rentals rose at a slower pace of 0.8% in 3rd Quarter 2023, compared to the 2.8% increase in the previous quarter. For the fourth consecutive quarter, the increase in rental moderated, and this was the smallest quarter-on-quarter gain since 4th Quarter 2020. About 9,000 private residential units (including ECs) were completed in 3rd Quarter 2023, the highest quarterly supply completions since 2nd Quarter 2016. Cumulatively, the supply completions in the first three quarters of 2023 were more than three times that for the same period in 2022. For the whole of 2023, a total of about 20,400 private residential units are expected to be completed, the highest annual supply completion since 2017.
3Q 2023 HDB Market Trends
HDB resale prices increased by 1.2% in 3Q 2023, marking a 14th consecutive quarter of growth. This growth rate is slower than the previous quarters, with prices having increased by 1.5% in 2Q2023 and an average of 2.5% quarterly growth in 2022. Year-to-date, the growth was 3.8% for the first nine months of 2023, less than the 8% for the same period in 2022. Factors Influencing the Resale Market: Slower growth in resale flat prices is linked to inflationary concerns and elevated interest rates. Four-room flats experienced the largest price growth of 1.8% q-o-q, followed by executive flats at 1.2%. Resale prices declined in 10 towns in 3Q2023, with Geylang seeing the most significant drop of 3.6% q-o-q. On the contrary, Bukit Timah and Serangoon witnessed the largest price growths. HDB resale transaction volumes increased by 2.9% q-o-q in 3Q2023, attributed to more grants for first-timers and the delay in the BTO sales launch. However, the total resale volume is down by 9.7% y-o-y. Sales Proportions: Sales of four-room flats decreased from 45.7% to 43.8% between 2Q2023 and 3Q2023, with five-room flats also seeing a decline. The proportion of buyers choosing executive flats, two-room flats, and three-room flats increased in 3Q2023. The towns with the highest transaction volumes were Sengkang, Punggol, Woodlands, Yishun, and Jurong West. Million-Dollar Resale Flats: 128 units were sold for at least $1 million in 3Q2023, surpassing the previous record of 111 units in 3Q2022. Bukit Panjang witnessed its first million-dollar flat transaction. Only four towns – Sengkang, Choa Chu Kang, Jurong West, and Sembawang – have yet to record a million-dollar transaction. Forecast: Affordability is expected to be influenced by the interest rate environment, especially with HDB loan packages from banks being above 3%. More demand might shift to the BTO market due to an anticipated increase in flats for sale.
3Q 2023 Real Estate Investments up 75%
Singapore's real estate investment surged by 74.8% q-o-q to $6.9 billion in 3Q2023, marking a 19.4% rise y-o-y. This growth breaks the trend after five straight quarters of decline since 1Q2022. Over 60% of this amount, or $4.1 billion, came from Government Land Sale (GLS) sites, including locations at Tampines Avenue 11, Marina Gardens Lane, and Jalan Tembusu. Residential deals contributed $3.3 billion, a 93.5% increase q-o-q but a 12% drop y-o-y. This decrease in private residential sales is attributed to the rise in Additional Buyer’s Stamp Duty (ABSD) rates from April. Collective sales market (enbloc) struggled due to a widening gap between owner and developer expectations, compounded by economic challenges and rising costs. A notable instance was Wing Tai's exit from the Holland Tower sale. The escalating costs of construction have led developers to favor GLS sites. Yet, their enthusiasm appears to be diminishing, as evidenced by the declining number of participants and more conservative bids in recent auctions. Simultaneously, elevated interest expenses are pushing investors to pursue greater returns by augmenting the value of their investments, including acquisitions aimed at improvement and redevelopment.
URA Proposed Amendments to the Master Plan
The Urban Redevelopment Authority (URA) proposed changes to the Master Plan, affecting zonings and plot ratios in seven locations. The overarching goal of these changes is to address housing demands, provide essential amenities, enhance recreational spaces, and ensure sustainable and beneficial land use for Singaporeans. One-north: A site currently for business park use is to be rezoned for residential and commercial use, increasing its plot ratio from 3.5 to 4.2. This aims to address housing demand and invigorate one-north as a dynamic mixed-use business park. Tengah Garden Avenue: A commercial and residential site will be rezoned to include commercial space on the first storey, increasing its plot ratio from 2.8 to 3.0. This change supports the upcoming Hong Kah station on the Jurong Region Line and will cater to housing and amenity needs. Bayshore Road: A residential plot ratio will increase from 3.5 to 4.2. This makes it one of the densest plots in the East Coast, potentially yielding over 1,000 units. Margaret Drive: A residential-zoned site will have its plot ratio increased from 3.5 to 4.2. Situated near the Queenstown MRT Station, the site might produce 300 to 350 units. Dairy Farm Walk: A residential parcel will have its plot ratio escalated from 1.4 to 2.1, possibly resulting in 400 to 500 new homes. Canberra Crescent: A residential site's plot ratio is set to rise from 1.4 to 1.6. Faber Walk: Proposed changes involve rezoning areas for residential use, parks, water bodies, and roads. The intention is to enhance the Old Jurong Line Nature Trail, increasing recreational connectivity and facilitating future residential development.
D26 Hillock Green to Preview 28 Oct to 7 Nov
Nestled in the heart of Lentor Hills Estate, the Hillock Green is poised to be a verdant oasis for its residents. With an enchanting view of the upcoming Lentor Hillock Park, this residence promises a harmonious blend of nature and modern living. The neighborhood radiates exclusivity, characterized by an abundance of landed homes and upscale condominiums. Connectivity and Transportation: Hillock Green boasts unparalleled accessibility. It's just a stone's throw away from Lentor MRT station (TE8) on the Thomson-East Coast Line, making travel around Singapore a breeze. With the TEL, residents are effortlessly connected to Circle Line, North-South Line, Downtown Line, and North-East Line. Furthermore, the upcoming North-South Corridor, Singapore's longest transit corridor, promises reduced travel times by 10-15 minutes upon its completion in 2027. Educational Institutions: Residents will be spoilt for choice with numerous primary and secondary schools in the vicinity, including Mayflower Primary School, Anderson Primary School, CHIJ St Nicholas Girls’ Primary, Ang Mo Kio Secondary, Presbyterian High, and CHIJ St Nicholas Girls’ Secondary. Culinary Delights and Leisure: A gastronomic adventure awaits just around the corner. Residents have easy access to popular food centres like 628 Ang Mo Kio Market & Food Centre, Mayflower Market & Food Centre, and Sembawang Hills Food Centre. The renowned Springleaf Prata Place is just an MRT stop away. For those with a penchant for cafes, the vibrant Upper Thomson stretch, featuring establishments like Colombus Coffee Co., Knockhouse Cafe, and One Man Coffee, is a swift 5-minute drive. Nature and Recreation: Nature enthusiasts will revel in the proximity to serene parks. Lentor Hillock Park, a neighbour to Hillock Green, promises resplendent greenery, complemented by Thomson Nature Park, Lower Peirce Reservoir Park, and Bishan-Ang Mo Kio Park. An added boon is the connectivity of Lentor Hillock Park to Lower Seletar Reservoir and the Central Catchment Reserve through cycling and walking paths, allowing residents to seamlessly immerse themselves in nature. Experience the epitome of tranquil and sophisticated living at Hillock Green. Your oasis awaits.
D22 J'den to Preview 28 Oct to 7 Nov
Located at 2 Jurong East Central 1, J'den is a pioneering mixed-use development in Jurong Lake District (JLD), boasting unmatched height and distinction. Comprises 368 apartments ranging from 1 to 4-bedroom units. Proudly developed by CapitaLand, ensuring exceptional quality and a commitment to sustainable, modern living. Strategic Location: Centrally situated in the JLD, offering direct access to Jurong East MRT (EW/NS Line) and the upcoming Jurong East Transport Hub and JR Line. Diverse Units: Whether you're single, a couple, or a growing family, J'den offers a variety of thoughtfully designed units to suit all. Connectivity: In close proximity to the Jurong Lake District station (CRL Line), ensuring effortless commuting. Urban Lifestyle: Stroll to three major malls - JEM, Westgate, and IMM connected via J-Walk, bringing a world of premium retail, dining, and entertainment to your doorstep. Promising Future: Positioned in a precinct poised to become the 2nd CBD, with plans for 100,000 new jobs and 20,000 homes. Adjacent to the 6.5ha White Site at JLD, foresee the potential with 150,000 sqm of office space, 1,760 residential units, and 75,000 sqm GFA for diverse uses. Invest in the future with J'den. Not just a home, it's an opportunity in a district primed for exponential growth and development. Secure your place in the heart of the action today!
D11 Watten House to Preview 5 Nov to 14 Nov
Nestled in the Bukit Timah educational belt, just a mere 8-minute walk to Tan Kah Kee MRT (Downtown Line) and seamless connectivity to Circle, Thomson-East Coast, and North South Lines. Effortlessly connected to Singapore's heart through major expressways like PIE, AYE, CTE, and BKE. Within 1km of renowned institutions: Nanyang Primary and Raffles Girls’ Primary Schools, making it ideal for families. Proximity to shopping destinations like King’s Arcade, Coronation Shopping Plaza, Cluny Court, and more. Enjoy nature at your doorstep with MacRitchie Reservoir, Bukit Timah Nature Reserve, and Singapore Botanic Gardens close by. A short 10 to 15-minute drive to the iconic Orchard Road for a luxury shopping experience. Gourmet options abound from Island Club to local Food Centers. Delight in scenic views of Bukit Timah Nature Reserve, the city skyline, and surrounding greenery. Watten House offers an exclusive lifestyle with the perfect blend of convenience, luxury, and nature. Experience a class of living like no other.
Tampines Street 62 (Parcel B) EC
The EC site at Tampines Street 62 (Parcel B) received 7 offers for tender and was awarded to Sim Lian Land and Sim Lian Development for $543.28 million in July. This translates to $721 per square foot per plot ratio (psf ppr). The new rate surpasses the previous record-high of $703 psf ppr set by a plot at Plantation Close, which was awarded to Hoi Hup Realty and Sunway Developments. The plot area is 301,392 sq ft, estimated to yield around 700 units. It is adjacent to the Tenet EC, which was awarded for $422 million or $659 psf ppr in August 2021. The Tenet EC's successful sales have indicated strong demand in the area, boosting developers' confidence in the Parcel B site. Out of 618 units at Tenet, 616 have been sold at an average price of $1,382 psf. The Parcel B site is favorably situated near Tampines North MRT Station and a future commercial and residential project at Tampines Avenue 11. The record bid showcases Sim Lian Group's trust in the ECs in Tampines, which typically command a premium. Future EC on this site might see prices surpassing $1,500 psf, making it an attractive proposition for potential buyers. ECs remain in demand. However, the rising interest from developers can push land prices up, which may influence the affordability of ECs in the future. Prices of new ECs hit a new high with Altura in Bukit Batok West Avenue 8 registering an average price of $1,475 psf. A unit at Altura was sold for $1,585 psf last month, setting a new benchmark for new EC units.
GLS Orchard Boulevard
A site at Orchard Boulevard is released for sale as part of the 2H2023 Government Land Sales (GLS) Programme, as announced by URA on Oct 17. The site is designated "residential with commercial at first storey", covering 75,686 sq ft. The 99-year leasehold site is projected to accommodate around 280 residential units and a commercial area of about 5,382 sq ft. This launch marks the first GLS site in the Orchard area since 2018. The previous site in this vicinity, the current Cuscaden Reserve at Cuscaden Road, was awarded in 2018 for $2,377 psf ppr to a joint venture. At Irwell Bank Road, the site of today's Irwell Hill Residences was given to City Developments in January 2020 for $583.888 million ($1,515 psf ppr). The site's attractive features, including its proximity to the Orchard Boulevard MRT Station, the Orchard Road shopping district, and its location in a prestigious residential enclave near Chatsworth Park Good Class Bungalow Area. Few GLS sites are available in the Core Central Region (CCR), making this site more desirable. This launch might entice developers looking for prime locations without pursuing en bloc sales. However, cooling measures, especially the recent hike in the additional buyer's stamp duty for foreigners to 60%, might lead developers to exercise caution. The tender for the Orchard Boulevard site is scheduled to close on Feb 1, 2024. This tender will be combined with another for an executive condo site at Plantation Close, launching in November.
6,800 flats launched for October 2023 BTO Exercise
HDB has released 6,800 flats for the October 2023 BTO exercise, which is an increase from 5,495 flats in May. These flats are located in six projects across four towns: Queenstown, Kallang-Whampoa, Choa Chu Kang, and Tengah. Penalties for non-selection of flats: First-timer applicants rejecting a flat booking invitation will be demoted to a second-timer with decreased priority for a year. Second-timers with one non-selection instance will have a one-year waiting period before re-applying. New Priority Category: The "First-Timer (Parents & Married Couples)" category debuts in this BTO exercise. This provides added support for specific applicants, granting them an extra ballot chance if eligible. New BTO Category: A reclassification system will be in place from 2H2024, segmenting BTO flats into "Prime", "Plus", and "Standard" categories. Prime and Plus flats will have a longer Minimum Occupation Period (MOP), subsidy clawbacks, and stricter resale regulations. Two of the six projects in this BTO exercise are labeled as PLH. (PLH) Verandah @ Kallang in Kallang-Whampoa will have 1,143 units. Pricing starts at $193,000 for two-room Flexi, $368,000 for three-room, and $535,000 for four-room flats (excludes grants). (PLH) Tanglin Halt Cascadia in Queenstown: 973 units with prices starting at $364,000 for three-room flats and $537,000 for four-room flats. It's a short walk from the Commonwealth MRT Station. Rajah Residences in Kallang-Whampoa: Located between Jalan Rajah and Kim Keat Road, it has 739 units consisting of two-room Flexi and four-room flats. Prices start at $176,000 for two-room Flexi flats, $339,000 for three-room flats, and $480,000 for four-room flats, excluding grants. Tenteram Vantage in Kallang-Whampoa: Offers 1,040 units of three- and four-room flats. Prices start at $176,000 for a two-room Flexi flat, $339,000 for a three-room flat, and $480,000 for a four-room flat, excluding grants. Plantation Edge I & II in Tengah: Comprising 1,010 units, prices start from $114,000 (2-room Flexi), $232,000 (3-room), $353,000 (4-room), and $460,000 (5-room). It's situated in front of the upcoming Tengah Park MRT Station on the Jurong Region Line, set to open in 2028. This site has a waiting time of 36 to 40 months, which is shorter compared to other projects. Rail Green I & II in Choa Chu Kang: This is the largest site in this BTO exercise. It consists of 12 residential blocks with 1,895 units. Types of flats range from two-room Flexi to 3Gen flats. The starting prices are $106,000 (2-room Flexi), $216,000 (3-room), $319,000 (4-room), $463,000 (5-room), and $471,000 (3Gen). Notably, it's the first BTO project integrated with the Rail Corridor.
7,000 BTOs to be built in Bayshore, East Coast
HDB has released 6,800 flats for the October 2023 BTO exercise, which is an increase from 5,495 flats in May. These flats are located in six projects across four towns: Queenstown, Kallang-Whampoa, Choa Chu Kang, and Tengah. Penalties for non-selection of flats: First-timer applicants rejecting a flat booking invitation will be demoted to a second-timer with decreased priority for a year. Second-timers with one non-selection instance will have a one-year waiting period before re-applying. New Priority Category: The "First-Timer (Parents & Married Couples)" category debuts in this BTO exercise. This provides added support for specific applicants, granting them an extra ballot chance if eligible. New BTO Category: A reclassification system will be in place from 2H2024, segmenting BTO flats into "Prime", "Plus", and "Standard" categories. Prime and Plus flats will have a longer Minimum Occupation Period (MOP), subsidy clawbacks, and stricter resale regulations. Two of the six projects in this BTO exercise are labeled as PLH. (PLH) Verandah @ Kallang in Kallang-Whampoa will have 1,143 units. Pricing starts at $193,000 for two-room Flexi, $368,000 for three-room, and $535,000 for four-room flats (excludes grants). (PLH) Tanglin Halt Cascadia in Queenstown: 973 units with prices starting at $364,000 for three-room flats and $537,000 for four-room flats. It's a short walk from the Commonwealth MRT Station. Rajah Residences in Kallang-Whampoa: Located between Jalan Rajah and Kim Keat Road, it has 739 units consisting of two-room Flexi and four-room flats. Prices start at $176,000 for two-room Flexi flats, $339,000 for three-room flats, and $480,000 for four-room flats, excluding grants. Tenteram Vantage in Kallang-Whampoa: Offers 1,040 units of three- and four-room flats. Prices start at $176,000 for a two-room Flexi flat, $339,000 for a three-room flat, and $480,000 for a four-room flat, excluding grants. Plantation Edge I & II in Tengah: Comprising 1,010 units, prices start from $114,000 (2-room Flexi), $232,000 (3-room), $353,000 (4-room), and $460,000 (5-room). It's situated in front of the upcoming Tengah Park MRT Station on the Jurong Region Line, set to open in 2028. This site has a waiting time of 36 to 40 months, which is shorter compared to other projects. Rail Green I & II in Choa Chu Kang: This is the largest site in this BTO exercise. It consists of 12 residential blocks with 1,895 units. Types of flats range from two-room Flexi to 3Gen flats. The starting prices are $106,000 (2-room Flexi), $216,000 (3-room), $319,000 (4-room), $463,000 (5-room), and $471,000 (3Gen). Notably, it's the first BTO project integrated with the Rail Corridor.