Newsletter Jul 2024
By Kelvin Sin | Livefree.sg | 27 Jul 2024
1.6 Launch vs Take-up Rate
2. New Projects
3. Government Land Sales
4. Enbloc
5. HDB
1.1 Property Price Index
Prices of landed properties increased by 1,9% in 2nd Quarter 2024, a moderation from the 2.6% increase in the previous quarter. Prices of non-landed properties increased by 0.6% in 2nd Quarter 2024, compared with the 1.0% increase in the previous quarter. - Core Central Region (CCR) increased by 0.3% in 2nd Quarter 2024, following the 3.4% increase in the previous quarter. - Rest of Central Region (RCR) increased by 1.6% in 2nd Quarter 2024, compared with the 0.3% decrease in the previous quarter. - Outside Central Region (OCR) increased by 0.2% in 2nd Quarter 2024, same as the 0.2% increase in the previous quarter. HDB’s Resale Price Index (RPI) for 2nd Quarter 2024 is 187.9, representing an increase of 2.3% over the 1st Quarter of 2023. This increase is 12.9% growth from 2nd Quarter 2023.
1.2 Supply & Demand
Developers Launched 634 uncompleted private residential units for sale in 2nd Quarter 2024, compared with 1,304 units in the previous Quarter. Supply of New Homes is expected to peak by Q4 2024 and moderate in 2025. This is due to the lack of successful land sales and Enbloc sales in 1H 2024. 725 New Homes were sold by developers in the 2nd Quarter of 2024, compared with 1,164 units sold in the previous Quarter. There were 3,802 resale transactions & 388 Sub-sale transactions in 2nd Quarter 2024, compared with 2,689 resale & 377 Sub-sale units transacted in the previous quarter. Resale transactions accounted for 77.4% & Sub-sale accounted for 7.9% of all sale transactions in 2nd Quarter 2024, compared with 63.6% in the previous quarter. Demand for homes is expected to surpass 2023, with an estimated 22,000 units transacted by the end of 2024, as compared with the 19,044 units transacted in 2023.
1.3 New Home Sales
Developers Sold 725 private residential units (excluding ECs) in the 2nd Quarter 2024, compared with 1,302 units sold in the previous quarter. This is mainly due to the lack of popular New projects launched and low property sentiments - driven by Primary School Registration & school holidays. New Home Sales are expected to see a sudden spike in 2H of 2024, with projects launching in popular areas such as: Lorong Chuan, Katong, Toa Payoh, Meyer & Tampines.
1.4 Resale Volume
There were 3,802 resale & 388 sub-sale transactions in 2nd Quarter 2024, compared with 2,689 resale & 377 sub-sale transactions in the previous quarter. Resale transactions accounted for 77.4% of all sale transactions in 2nd Quarter 2024, compared with 63.6% in the previous quarter. Resale Transactions are expected to end the year with an estimated 16,000 units transacted by the end of 2024, as compared with 12,623 units transacted in 2023.
1.5 HDB Resale Volume
Resale transactions for 2nd Quarter 2024 rose by 4.0% from 7,068 cases in 1st Quarter 2023 to 7,352 cases. Resale transactions in 2nd Quarter 2024 were 12.9% higher compared to 2nd Quarter 2023.
1.6 Launch vs Take-up Rate
For 2nd Quarter 2024, developers launched 634 units and sold 725 new homes. Compared with 1,302 launched and 1,164 units sold in the previous quarter.
2.1 Developer Sales 1H 2024
In June 2024, property developers sold 228 new private residential homes, marking a 2.2% increase from May. Despite this monthly rise, the overall sales in the first half of 2024 have been lower compared to previous years. Developers moved 1,189 units in 1H2024, a 44.2% decrease from 1H2023. This period saw the lowest half-year sales volume since 2000 due to fewer launches. Looking forward, sales are expected to increase with new launches like Sora, Kassia, and The Green Collection. Sora, for instance, sold 102 units during its launch weekend in early July. Upcoming Projects: •Emerald of Katong (846 units) •Ariana East Residences (*140 units) •Meyer Blue (226 units) •Union Square Residences (366 units) •Norwood Grand (348 units) •The Chuan Park (916 units) The second half of 2024 is projected to see about 17 new launches with 8,400 units. Although the upcoming Hungry Ghost Festival might affect launches, overall sales are expected to pick up as more projects become available. Despite a slow start, the developer sales market is poised for a rebound in the coming months with several exciting new projects on the horizon. The luxury segment continues to show robust performance, and the overall market sentiment remains optimistic. With more launches planned, the latter half of 2024 promises increased activity and opportunities for buyers and investors alike.
2.2 SORA Sales
Developer SingHaiyi Group, along with its partners KSH Holdings and Ho Lee Group, achieved notable sales for their new project, Sora, over the weekend of July 5-6. They successfully sold 102 units, marking a 23% take-up rate for the 440-unit, 99-year leasehold condominium located on Yuan Ching Road in Jurong Lake District. Out of the 320 units launched, the one-bedroom-plus-study units proved most popular, with over 80% sold. The two-bedroom and two-bedroom-plus-study units also attracted significant interest from buyers. These one-bedroom-plus-study units, measuring 538 sq ft, were priced starting at $996,000, while the two-bedroom units, sized at 646 sq ft, were over $1.305 million. The average price for units sold at Sora hovered around $2,160 psf. In comparison, the adjacent Lake Garden Residences, launched a year ago, saw an average price of $2,120 psf. Since Sora’s debut, the Lake Garden Residences have sold 141 units, or 46% of their total offerings, with prices averaging $2,127 psf. The demographic profile of buyers at Sora skews younger, with more than half under 40 years old, reflecting the area’s appeal and potential for rejuvenation. The development’s attractive views, amenities, and the emerging urban hub of Jurong Lake District have drawn buyers not just from the Western region, but also from other parts of Singapore. Other developments in the Jurong Lake District, such as J’den and J Gateway, have also seen strong sales. J’den sold 88% of its 368 units during its launch weekend last November, at an average price of $2,451 psf, and now has 91% of its units sold at slightly higher prices. J Gateway, launched in 2013, now enjoys resale prices exceeding $2,000 psf, buoyed by the launch of new projects in the district.
2.3 KASSIA Sales
Tripartite Developers has announced impressive sales for their new private condo, Kassia, with 144 out of 276 units sold by Sunday, July 21. This accounts for about 52% of the total units. The selling prices ranged from $1,821 to $2,177 per square foot, with one- and two-bedroom units being the most sought after. The majority of the buyers, around 90%, were Singaporeans, while the remaining 10% were Permanent Residents. Most of the buyers were in their 30s and 40s, a mix of both owner-occupants and investors. Among the most popular units were the two-bedroom apartments, measuring 657 square feet and priced from $1.196 million, with 90.3% sold. The one-bedroom units, at 474 square feet and starting at $883,000, also saw high demand, with 71.2% sold. Additionally, the one-bedroom-plus-study units, at 549 square feet, were popular, with 67.9% sold. Kassia is the final project in the Flora Drive-Flora Road residential enclave, marking the end of over 30 years of development by Tripartite Developers. This project follows the recent launch of Sora, making it the second major project in the Outside Central Region (OCR) after the June school holidays. The market has not seen a significant new 999-year or freehold non-landed condo launch in the OCR since 2021, making Kassia’s pricing attractive in today’s market. The take-up rate at Kassia’s launch is among the highest for new projects this year, second only to Lentor Mansion.
3.1 De Souza Avenue
The government land sales (GLS) site at De Souza Avenue closed on July 18, attracting two bids. The highest bid of $278.9 million, equating to $841 per square foot per plot ratio (psf ppr), was made by SL Capital (8) Pte Ltd, known as Sustained Land Pte Ltd. Located off Jalan Jurong Kechil in District 21, this 207,156 sq ft site has a maximum gross floor area of 331,453 sq ft and can potentially house up to 355 residential units. Additionally, the development will include an early childhood development centre of at least 5,382 sq ft, as required by the Urban Redevelopment Authority (URA). The De Souza Avenue site is set to benefit from the rejuvenation plans for the Beauty World neighbourhood outlined in URA’s 2019 Master Plan. The area will see new amenities, including an integrated transport hub connecting Beauty World MRT Station with a bus interchange and a three-storey retail mall. The site’s proximity to Bukit Batok Nature Park and Bukit Timah Nature Reserve adds further appeal. The property market in the Bukit Timah area is vibrant, with a noticeable increase in private resale transactions. In the second quarter of 2024, 145 units were sold, up from 131 units in the first quarter. A significant portion of these sales were to buyers with private home addresses, indicating strong interest from those looking to upgrade. Nearby developments highlight the area’s attractiveness. The Verdale project, with 258 units, was fully sold and completed last year. Additionally, Bukit Sembawang Estates secured a site along Bukit Timah Link in November 2022 for $200 million, which will be developed into a 155-unit project. Future launch prices for the De Souza Avenue site are anticipated to be around $2,200 psf, with some estimates suggesting prices could reach $2,500 to $2,600 psf.
3.2 Zion Road (Parcel B)
The tender for the 99-year leasehold site at Zion Road (Parcel B) closed on July 18 with two competitive bids. Allgreen Properties emerged as the highest bidder, offering $730.09 million for the 99,953 sq ft site, which translates to a land rate of $1,304 per square foot per plot ratio (psf ppr). Hong Leong Holdings followed closely with a bid of $660.8 million, or $1,181 psf ppr. This prime site can accommodate about 610 residential units, with a maximum gross floor area (GFA) of 559,745 sq ft. Zion Road (Parcel B) had been on the Reserve List of the Government Land Sales (GLS) program since 2018 before being triggered for sale in April by Allgreen, who had indicated a minimum bid of $604.57 million ($1,080 psf ppr). Next to this site is Zion Road (Parcel A), which was secured by a joint venture between City Developments Ltd (CDL) and Mitsui Fudosan in April with a bid of $1.107 billion ($1,202 psf ppr). Parcel A is set to become a vibrant mixed-use development featuring 740 residential units, a retail podium, and 290 rental apartments across two high-rise towers and an additional block. The location of Zion Road (Parcel B) is exceptional, situated near 2 MRT stations and poised to benefit from the retail amenities that will be developed on the adjacent Parcel A plot.
3.3 Canberra Crescent
Kheng Leong and Low Keng Huat have successfully submitted the top bid of $279 million for a residential government land sale (GLS) site at Canberra Crescent. This bid translates to a land rate of $793 per square foot per plot ratio (PPR). At the tender closing on July 18, the 219,985 sq ft site attracted a total of three bids. The second highest bid, just 1.4% lower, was $275.09 million, while the third bid was $228.77 million by GuocoLand. This 99-year leasehold site can accommodate up to 375 residential units and is situated at the junction of Canberra Street and Canberra Crescent in District 27. The site benefits from a gross plot ratio of 1.6. The top bid of $793 psf PPR is notable for being lower than recent bids for sites in the North region, reflecting a cautious approach by developers given the higher development costs and current market conditions. Despite this, the site’s excellent location near amenities like Bukit Canberra, an integrated sports and community hub, makes it an attractive option. Nearby developments have also shown strong performance. The Commodore, developed on a nearby site, was fully sold by June with an average price of about $1,400 psf. Similarly, The Watergardens at Canberra, another nearby project, was fully sold by March 2023 at an average selling price of $1,686 psf. Looking ahead, the Canberra Crescent site is expected to see high demand due to the limited number of upcoming new launches in the North region.
4.1 Elias Green Enbloc
Elias Green condo in Pasir Ris is set for a collective sale, with over 80% of homeowners approving a sale price of $928 million. This exciting development is managed by ERA’s capital markets and investment sales division. The condo, completed in 1994, sits on a spacious 516,877 sq ft site with a 99-year lease from 1991, leaving 66 years remaining. The site has a maximum gross floor area of 723,627 sq ft and a gross plot ratio of 1.4. Homeowners are planning to apply for an increase in the plot ratio to 2.0, which could raise the land rate to about $1,132 per square foot per plot ratio if approved. This potential increase offers a significant development opportunity for interested buyers. This is the second time Elias Green is attempting a collective sale. The first attempt in 2018 had a launch price of $780 million. The new asking price of $928 million is a 19% increase, reflecting the property’s rising value and market potential. In recent market activity, a 1,518 sq ft three-bedroom unit at Elias Green was sold for $1.47 million, equating to $969 psf on June 14. This sale highlights the attractive pricing and investment potential of the property. Elias Green’s collective sale presents an exciting opportunity for developers and investors, given its prime location and significant development potential.
5.1 $1.73m HDB Sold in Dawson, smashing all other HDB Record Prices
A remarkable milestone was achieved in the HDB resale market with a five-room flat at Skyoasis @ Dawson on Margaret Drive selling for $1.73 million on June 26. This 1,195 sq ft unit set a new record, with the selling price translating to $1,444 per square foot (psf). This sale surpasses the previous record of $1.588 million for a similar-sized unit at City Vue @ Henderson, which was set just last month. Another noteworthy sale in April saw a five-room flat at Tiong Bahru View sold for the same amount. The record-breaking unit at Skyoasis @ Dawson is a stunning corner flat on the 45th floor. It attracted competitive bids and sold for $1,725,888 in less than a month on the market. The flat, only 3.5 years old, has 96 years remaining on its lease. Thanks to its status as a replacement flat under the Selective En bloc Redevelopment Scheme (SERS), it was eligible for sale earlier than typical Build-to-Order (BTO) flats, which require a mandatory occupancy period of five years. Skyoasis @ Dawson, completed in 2021, is a vibrant estate in District 3 featuring 1,192 units across six residential blocks. The development offers a range of flats from two- to five-room units and boasts an excellent location within walking distance of Queenstown MRT and adjacent to Queenstown Primary School on Margaret Drive. This prime location and modern amenities make it a highly desirable place to live.