Month: December 2024

The EC market has also been supported by the ongoing HDB resale price increase, which has raised the affordability ceiling for EC buyers. In the latest flash report on HDB resale prices for the fourth quarter of 2024, the overall resale price index rose 3.9% q-o-q and 18% y-o-y. More significantly, the index has risen 29.1% over the past five years.In addition, with the increasingly competitive land bids from developers in 2024, the challenge to secure an EC site has become more stringent, Gafoor adds.The upcoming supply of new ECs, up from just a single project in 2024, could also potentially lead to a drop in EC prices, he says. However, based on the bullish demand for the upcoming EC launches in Tampines and the West, Gafoor believes that the existing EC price benchmark will likely remain intact.

The next article will be about the highly anticipated launch of Sim Lian Group’s new executive condo, Aurelle of Tampines, which will debut in the first quarter of 2025. This launch follows the success of their previous project, Emerald of Katong, which is now over 99% sold out.

Sim Lian Group secured the site at Tampines Street 62 (Parcel B) for $543.28 million in a government land sale tender that concluded in October 2023. This translates to a price of $721 per square foot per plot ratio (psf ppr). With rising construction costs and the harmonization of gross floor area (GFA) definitions, PropNex CEO Ismail Gafoor expects Aurelle at Tampines to set a new price benchmark, possibly crossing the $1,600 psf threshold. This prediction is supported by the success of their recent Novo Place EC launch, which had an average price of $1,656 psf.

Apart from Aurelle of Tampines, two other executive condos are slated for launch in 2025 – Tenet EC and a joint venture between Hoi Hup Realty and Sunway Developments at Plantation Close in Tengah Town. Tenet EC, located next to Aurelle, was launched in December 2022 and has sold 617 out of its 618 units at an average price of $1,384 psf. This project was launched before the implementation of the GFA harmonization rule, which applies to GLS sites launched for sale after September 2022.

In addition to these three upcoming projects, Sim Lian Group has secured another EC site at Tampines Street 95, which is expected to add 560 units to the market. With an extensive track record of developments in the eastern part of Singapore, Sim Lian Group is confident in the strong demand for homes in Tampines and its surrounding estates.

In evaluating the value of a potential Condo investment, it is imperative to consider its rental yield. This pertains to the yearly rental income compared to the purchase price of the Condo. In Singapore, the rental yields of Condos can significantly vary depending on factors such as location, condition of the property, and demand in the market. Generally, areas with a high demand for rentals, such as those near bustling business districts or reputable educational institutions, tend to offer more lucrative rental yields. Therefore, conducting thorough research and seeking guidance from real estate professionals can provide valuable insights into the rental potential of a specific Condo. As such, it is crucial for potential investors to thoroughly assess the rental yield of a Condo before making a decision. Condo

Apart from their EC projects, the group has also successfully completed the largest private condominium in Singapore, Treasure at Tampines, with 2,203 units. This redevelopment of the former HUDC estate, Tampines Court, was purchased en bloc for $970 million in 2017. Launched in February 2019, the project was fully sold within three years at an average price of $1,356 psf. As of December 2024, there have been 468 sub-sale and resale transactions, with resale prices averaging $1,699 psf.

Meanwhile, Novo Place EC, a joint venture between Qingjian Realty, Santarli Realty and Heeton Holdings, has also achieved strong sales with 57% of its units sold in the first round of balloting in November. This was followed by another 137 units taken up in the second round of balloting for second-timers, bringing total sales to 444 units or 88.1% of the project. With an average price of $1,656 psf, Novo Place set a new benchmark for EC prices.

Apart from Tampines, the upcoming EC projects in Plantation Close and Jalan Loyang Besar, located in the West and Pasir Ris respectively, are also expected to perform well due to several factors such as dwindling supply of unsold EC units and favorable locations. The last EC launch in Pasir Ris was in 2013 at an average price of $800 psf, and with the lack of new EC launches in the area, pent-up demand is anticipated.

In total, the 2025 supply of new EC units is expected to double from the previous year, with the launch of 2,030 units. This was preceded by only one project in 2024 – Lumina Grand by City Developments at Bukit Batok West Avenue 5, which has sold 87% of its 512 units at an average price of $1,511 psf as of December 2024.

Despite the increase in supply, Gafoor believes that the strong demand for ECs will help to maintain the existing price benchmark. This is supported by the ongoing HDB resale price increase, which has raised the affordability ceiling for EC buyers. Additionally, the competition for EC sites has become more stringent, leading to higher land prices.…

after 27 years

A surge in resale transactions at Ardmore Park, a luxury condominium in the prime District 10 Ardmore-Draycott enclave, has resulted in some of the highest gains seen in 2024. According to URA caveats lodged as of December 17, the freehold development claimed the top, second, and fourth most profitable resale deals for condos sold between January 1 and December 10.

When it comes to investing in a condo, financing is a crucial factor to consider. Singapore provides a variety of mortgage choices, but it is vital to have a thorough understanding of the Total Debt Servicing Ratio (TDSR) framework. This framework limits the amount of loan a borrower can take, taking into account their income and existing debt obligations. It is crucial for investors to familiarize themselves with the TDSR and seek guidance from financial advisors or mortgage brokers to make informed decisions and avoid over-leveraging. Additionally, by researching and considering projects in Singapore, such as Singapore Projects, investors can ensure they are making wise investments and securing their financial future.

The largest profit was earned from the sale of a 2,885 sq ft four-bedroom unit on the 26th floor for $12.9 million ($4,472 psf) on February 16. The unit was originally purchased from the developer for $5.83 million ($2,022 psf) in July 1996, resulting in a staggering profit of $7.07 million, a 121% gain after holding for approximately 27 and a half years.

The second highest gain occurred on July 24 when a four-bedroom unit measuring 2,885 sq ft on the 18th floor was sold for $12 million ($4,160 psf). The seller initially bought the unit through a sub-sale transaction for $5.2 million ($1,803 psf) in December 2000, earning a profit of $6.8 million, equivalent to a 131% capital gain over a holding period of 23 and a half years.

On April 22, the fourth-largest profit of the year was recorded when another 2,885 sq ft four-bedroom unit was sold for $12.5 million ($4,333 psf). The seller acquired the unit in February 2007 for $6 million ($2,080 psf), earning a profit of $6.5 million (108%) after owning the property for over 17 years.

Ardmore Park, a freehold development with 330 units, has consistently seen significant profits from resale transactions in recent years. In 2024, the condo recorded three additional deals for 2,885 sq ft four-bedroom units, with the sellers making gains of $2.65 million, $3 million, and $3.05 million respectively. Last year, four resale transactions were recorded with profits ranging from $2.8 million to $8.16 million.

Apart from Ardmore Park, other mature freehold condos in District 10 dominated the list of top gains this year. The fifth-largest profit was made from the sale of a 3,778 sq ft four-bedroom unit on the fifth floor of the 86-unit boutique condo Beverly Hill on Grange Road, completed in 1983. The property sold for $9.15 million ($2,422 psf) on July 15, earning the seller a profit of $5.47 million (149%).

Other freehold condos that made it to the top profitable deals list in District 10 include Astrid Meadows, Regency Park, Fontana Heights, and Wing On Life Garden, all of which are over 30 years old and completed between 1982 and 1990.

In contrast, Sentosa Cove condos accounted for almost half of the 10 least profitable resale transactions this year. The sale of a five-bedroom duplex penthouse spanning 3,789 sq ft at the 124-unit Marina Collection on Cove Drive on July 22 was the most unprofitable deal, fetching $6.7 million ($1,768 psf). The seller, who bought the unit in March 2010 for $9.39 million ($2,479 psf), suffered a loss of $2.69 million (29%).

Similarly, the sale of a 2,680 sq ft four-bedroom unit on the sixth floor of Seascape on Cove Way made a loss of $2.53 million (36%) when it sold for $4.5 million ($1,679 psf) on August 14. The seller had originally purchased the unit for $7.03 million ($2,623 psf) from the developer in October 2010.…

In the world of the mega-rich, the market for Good Class Bungalows (GCBs) has seen substantial growth this year compared to 2023, as revealed by Han Huan Mei, director of research at List Sotheby’s International Realty.

As of Dec 20, an impressive 22 GCB transactions worth $612.05 million have been recorded through URA Realis. On top of that, an additional 13 GCB deals, collectively valued at over $700 million, were finalised this year without caveats being lodged, as buyers sought anonymity. This brings the estimated total for 2024 to 35 GCB transactions worth approximately $1.32 billion, according to List Sotheby’s estimates, greatly surpassing the previous high of $1.186 billion achieved in 2022.

In comparison, 2023 saw only 18 GCB transactions, amounting to $432.5 million – the lowest number of deals recorded since URA Realis began tracking such data in January 1995.

According to Han, “The additional deals in 2024 show that the GCB market has been more active compared to what official transaction data reveals,”. She adds, “It also reinforces the status of GCBs as a highly coveted asset that is constantly sought after by ultra-high-net-worth buyers.”

The Highest Priced GCB Deals

The sale of a GCB at Tanglin Hill for a staggering $93.888 million tops the charts. The property, which sits on a freehold site measuring 15,150 sq ft, has a built-up area of 29,660 sq ft – a record-breaking land rate of $6,197 psf.

The second-highest GCB transaction was the $84 million purchase at Bin Tong Park by Xiang Yangyang, daughter of Chinese nickel billionaire Xiang Guangda, according to a document search. However, no caveat was lodged for the property. Based on the land area of 28,111 sq ft, the price equates to a land rate of $2,988 psf.

The highest-priced deal based on lodged caveats was for a GCB on Cluny Hill, which was sold for $52 million. The property, which sits on a freehold plot of 15,141 sq ft and is relatively new, fetched a land rate of $3,434 psf.

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 strong demand for ultra-luxury properties in Singapore.

Top Districts for GCBs

Sandrasegeran adds, “District 10 remains the cornerstone of the GCB market, with multiple high-value deals reaffirming its status as the most sought-after district for these prestigious properties.” Of the recorded GCB transactions this year, 16 took place in prime District 10, including the coveted Tanglin, Bukit Timah, and Holland Road areas.

When considering investing in a condo in Singapore, one must also take into account the government’s property cooling measures. In order to maintain a steady real estate market and discourage speculative buying, the Singaporean government has implemented several measures over the years. These measures, such as the Additional Buyer’s Stamp Duty (ABSD), impose higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the immediate profitability of investing in a condo, they ultimately contribute to the long-term stability of the market, creating a more secure investment environment. Additionally, with the option of investing in a condo, individuals have the opportunity to diversify their investment portfolio and potentially see a greater return on their investment in the future.

Sustained Buying Activity

According to Sandrasegeran, GCB transactions were evenly spread throughout the year, with buying activity picking up from July. “Overall, the fact that we saw GCB deals closing throughout the year suggests sustained buying interest for these trophy properties despite external economic factors, such as inflationary pressures and the presence of high interest rates in the first eight months of the year,” he says.

Steve Tay, co-founder and executive director of his eponymous boutique luxury agency in Singapore, says that it was the trajectory of interest rates signalled by the US Federal Reserve (Fed), rather than the rate cuts themselves, that was the primary driver of stronger buying sentiment in the GCB market during the second half of the year.

The Fed implemented three rate cuts this year: a recent 25 basis point (bp) reduction on Dec 18, following earlier cuts of 50 bp in September and 25 bp in November. Most GCB buyers who had been holding back on their purchases since July began fielding more serious discussions, with most deals closing in the last quarter of this year, Tay notes.

The Impact of Money Laundering Crackdown

The GCB market saw a slowdown last year as buyers retreated following the island-wide arrests of suspects in Singapore’s biggest money-laundering case, says List Sotheby’s Han.

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

A New Generation of GCB Buyers

In recent years, a new generation of ultra-wealthy Singaporeans has emerged in the GCB market, says Tay. This has seen a good number of young and successful entrepreneurs who have amassed their fortunes in technology, finance, commodities, and F&B businesses partake in the market. Tay adds that the market also reflects the exclusive pool of GCB buyers that prefer sizeable plots in prime districts, made up of ultra-wealthy and newly naturalised Singaporeans. However, according to Tay, the number of naturalised citizens buying GCBs remains comparatively low.

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. Additionally, the construction also takes several years to complete. Hence, most buyers are searching for relatively new bungalows in move-in condition that require minimal renovation, observes Han.

“The GCB market will likely maintain its positive momentum, with demand from ultra-high-net-worth individuals driving its high-value transactions,” says Sandrasegeran. “The preference for privacy among GCB buyers and sellers could mean continued off-market transactions, adding the complexity of tracking market activity.”…

Singapore’s capital market property deals are estimated to have reached $25.8 billion in value between January and November this year, according to Wong Xian Yang, the head of research for Singapore & Southeast Asia at real estate services firm C&W. This is a 40.2% increase from the $18.4 billion recorded in 2023. C&W defines capital market transactions as deals with values exceeding $10 million.

Wong also reported that almost 60% of the capital market deals were made in the second half of 2024, driven by growing investor interest and confidence in expected interest rate cuts by the US Treasury. There were three deals worth more than $1 billion in 2024, all of which took place 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), while Hong Kong-listed property developer Sun Hung Kai Properties holds the remaining 50% stake.

ION Orchard is an eight-storey retail mall located in the popular shopping district and directly linked to the Orchard MRT Station. It has a net lettable area of over 623,000 square feet and is home to more than 300 international and local brands. On top of the mall is the 54-storey, 175-unit luxury condo tower, The Orchard Residences.

The highest-valued office deal of the year was Mapletree Anson, which sold for $775 million in the second quarter of 2024. This was followed by a surge of investment in industrial assets, with a total of $5.6 billion invested in the first 11 months of 2024. This reflects a 174% increase from the previous year.

The biggest deal in the industrial sector was the divestment of a portfolio of seven industrial properties in Soilbuild Business Space REIT for $1.6 billion to a joint venture owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group in August. The portfolio includes 4.5 million square feet of business parks and specialist facilities in sectors such as life sciences, technology, advanced manufacturing, and logistics.

Singapore’s cityscape is characterized by towering skyscrapers and state-of-the-art infrastructure. Condominiums, strategically located in desirable locations, offer a harmonious mix of opulence and convenience, making them highly sought after by both locals and foreigners. These residences boast an array of facilities, including swimming pools, fitness centers, and security services, elevating the standard of living and making them highly desirable to potential renters and buyers. For investors, these desirable features equate to higher rental incomes and a steady increase in property values over time. Additionally, with the addition of top-of-the-line projects such as Singapore Projects, the appeal of Singapore’s condo market remains robust.

In terms of Government Land Sales (GLS) sites, four sites that were put up for sale in 2024 failed to be awarded. However, the residential segment still made up 42% of the total investment sales for the year, with three sites on the Confirmed List for 2024 rejected by the Urban Redevelopment Authority due to low bid prices.

Despite the unsuccessful sale of several GLS sites, CBRE Research does not anticipate this trend to continue in 2025 as new sites on the Confirmed List are well distributed and located near MRT stations and amenities.

Looking ahead, both C&W and CBRE Research expect an increase in high-value deals next year, with the US Federal Reserve expected to make further interest rate cuts. CBRE Research predicts a 10% growth in investment volumes from 2024 to 2025. However, a slower-than-expected recovery could occur if there are any macroeconomic shocks or if rate cuts are lower than market expectations.…

The outlook for rental forecasts in Singapore’s retail property market at the end of the year is expected to be dampened by weaker-than-expected consumer spending. According to Alan Cheong, executive director of research and consultancy at Savills Singapore, consumer spending in 2024 has been relatively lackluster, with the monthly retail sales index (excluding motor vehicles) and food and beverage (F&B) sales index recording mostly negative year-on-year changes throughout the year.

Cheong predicts that rents for retail properties in the prime Orchard Road submarket may only see a 2% increase for the full year of 2025. This falls slightly below the initial forecast at the beginning of the year, where a 3% to 5% climb was expected by Savills. However, the forecast for suburban retail rents to remain flat for the rest of the year remains consistent with Cheong’s initial prediction for this segment.

A joint research report by DBS and Singapore Management University (SMU) reveals that consumer concerns over inflation have mostly moderated in recent quarters. From June to September, the inflation expectations of Singaporeans remained at 3.8%. The research, led by SMU’s Sim Kee Boon Institute for Financial Economics (SKBI), also found that those who expect inflation to stabilize in the coming months attribute it to the global economic slowdown, high interest rates, and potential easing of supply chain disruptions.

In October, the Department of Statistics in Singapore reported a 0.3% year-on-year increase in retail sales (excluding motor vehicles), reversing the 1.5% decline recorded in September. Cheong believes that a more promising scenario for the retail market would be one where consumer spending keeps pace with inflation, but the relatively low spending levels could pose financial challenges for businesses in the industry.

When evaluating the opportunity to invest in a Singapore Condo, it is crucial to also consider the potential rental return. Rental yield refers to the annual rental income as a percentage of the condo’s purchase price. In Singapore, the rental yields for condos can greatly vary and are influenced by factors such as location, property condition, and market demand. Generally, areas near business districts or educational institutions tend to offer higher rental yields due to their high demand from renters. To gain a better understanding of the rental potential for a specific condo, conducting extensive market research and seeking advice from real estate agents can be beneficial.

While major events and headline concerts have boosted tourist spending, their impact on retail malls in tourist areas has been mixed. According to CBRE’s research, published in late October, the footfall generated by these events had varying effects on surrounding malls.

This year, Singapore saw a packed calendar of headline concerts, conferences, and exhibitions, but retail spending and rental rates have not seen significant support. The research by CBRE also noted that while these events typically drive higher foot traffic to nearby malls, such as Kallang Wave Mall and Leisure Park Kallang, other MICE (meetings, incentives, conferences, and exhibitions) events have not had a comparable impact on retail activity.

Tourists from overseas were a major highlight at these events, with popular artists like Taylor Swift, Blackpink, Coldplay, and Westlife performing in Singapore. The Monetary Authority of Singapore estimates that over half of the 500,000 attendees at Taylor Swift and Coldplay concerts were foreigners, bringing in between $350 million to $450 million in tourism receipts. However, CBRE observes that business event attendees tend to stay exclusively at the event venue. Even the highly anticipated Formula One Grand Prix, which brings in an average of $125 million in tourist receipts annually, did not significantly boost foot traffic in tourist-centric areas like Orchard Road.

Despite this, Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore, notes that Singapore’s premier status as a regional hub has continued to attract noteworthy new-to-market brands. The year saw the opening of several notable retail stores, including KSisters, The Pace, Brands for Less, and Hoka. The wellness sector is also evolving with new concepts like Rekoop and Hideaway, while the F&B industry introduced new concepts like Sushi Samba and coffee chains such as Blue Bottle, Grey Box, and Puzzle Coffee. The opening of new restaurants with entertainment elements, like Centre of the Universe in the CBD, and the upcoming Rasa, set to open in December, further adds to the vibrancy of Singapore’s dining scene.

Cheong notes that all prime shopping malls along Orchard Road have enjoyed high occupancy rates this year, as retail businesses have strong confidence in the retail market. “Singapore remains an attractive destination for new-to-market brands entering the region, spanning retail, F&B, and other lifestyle concepts,” says Tan-Wijaya. She adds that these new entrants have contributed to the demand for retail spaces and supported rental growth, especially in central Singapore.

Tan-Wijaya also observes the emergence of new wellness concepts and entertainment-focused restaurants, which are expected to enhance the vibrancy of Singapore’s dining scene.

Looking ahead, Singapore’s retail landlords may have more flexibility to implement positive rental adjustments next year as the supply of new retail spaces becomes limited. Cheong believes this will allow them to strategize and position their malls to remain relevant in the rapidly evolving consumption patterns of both locals and tourists. He also predicts that more retailers will take the opportunity to optimize their real estate strategies next year, which could include right-sizing their spaces, establishing additional kiosks, closing under-performing branches, or shifting cooking operations to central kitchens.

Cheong adds that there is a strong momentum in the entry of new-to-market F&B brands into Singapore, and this trend is expected to continue at least in the first half of 2025. With new-to-market retail brands, F&B concepts, and wellness experiences supporting the demand for retail spaces, the outlook for the retail market remains positive.…

The year 2024 has presented significant challenges for the global luxury goods market. As the world continues to grapple with macroeconomic uncertainty and rising prices within the luxury sector, consumers have been cutting back on their spending. According to a recent report by Bain & Company, global sales of personal luxury goods are projected to decline by 2% this year, with key market China facing a decline of 20-22%. Luxury powerhouses such as Richemont Luxury, LVMH, and Moncler Group have reported slight decreases in earnings, while Kering has experienced steeper declines.

However, outliers in the market such as Hermes and Prada Group, which also owns the successful Miu Miu brand, have managed to buck this trend with double-digit earnings growth.

Despite these challenges, Singapore remains a critical market for luxury brands. According to Euromonitor, sales of luxury goods grew by 11% in 2023, reaching $9.1 billion. In recent years, luxury brands like Dior, Chanel, and Louis Vuitton have embraced robust digital strategies, including e-commerce and digital marketing, to engage with customers. This shift towards digital platforms has become crucial for luxury brands in an ever-evolving landscape of consumer behaviors and preferences.

In addition to digital experiences, luxury brands have also recognized the importance of creating tangible, offline shopping experiences to foster closer connections with their customers. In recent years, there has been a growing focus on providing unique, personalized experiences for top-tier clients. This has led to the expansion of flagship stores, with brands such as Louis Vuitton and Yves Saint Laurent creating larger, more immersive spaces.

Burberry is a prime example of a brand that has managed to strike a balance between tradition and innovation. This year, the British luxury brand reopened its renovated stores at Marina Bay Sands and Paragon, offering customers an immersive experience that celebrates its rich British heritage. In November, Burberry also opened a new street-facing store at Wisma Atria, further solidifying its presence on Orchard Road.

When making the decision to invest in a condominium, one must take into account the maintenance and management of the property. Condos often require a maintenance fee to cover the expenses of maintaining common areas and facilities. Although this fee may increase the overall cost of ownership, it serves to guarantee that the property remains in excellent condition and maintains its value. To ease the burden of managing the condo, investors can enlist the services of a property management company, which can turn the investment into a more passive one. Additionally, considering Singapore Projects can be beneficial when choosing a condo to invest in.

As the luxury market looks towards future growth, there are several key factors that are expected to drive spending. These include the steady growth of high-net-worth individuals globally, particularly in emerging markets like China and Southeast Asia; the increasing buying power of Millennials and Gen Z, who are projected to make up 75% of the global luxury market; a resurgence of tourists from China; and continued growth in the travel retail sector, particularly in Japan.

To tap into these opportunities, luxury brands will need to stay ahead of the curve and adapt to evolving trends. This includes embracing personalization and customizations to create deeper connections with customers and foster brand loyalty. Many brands are also investing in AI-driven technologies to gain a better understanding of customer preferences and enhance their offline experiences.

For instance, Dior has developed an AI platform called Astra, which gathers data from various sources such as Google reviews, live shopping sessions, and customer surveys to stay abreast of customer preferences. Similarly, Balenciaga’s Paris Fashion Week show for its Winter 2024 collection went viral for its use of immersive AI technology that transformed the runway into an interactive digital canvas.

Looking ahead, luxury brands will need to continue expanding their store count and creating larger, more elevated experiences for their VIP clients. With Millennials and Gen Z making up their largest customer base, it’s essential for luxury brands to stay on top of digital trends and create seamless omnichannel strategies that combine digital and offline experiences. By embracing advanced technologies and adapting to changing consumer preferences, the luxury goods market is poised for a rebound in the coming years.

Sulian Tan-Wijaya is the executive director (retail & lifestyle) at Savills…

When considering investing in a condo, it is crucial to also evaluate its potential rental yield. This refers to the percentage of the property’s purchase price that can be earned as annual rental income. In Singapore, rental yields for condos can vary greatly depending on several factors, including location, property condition, and market demand. Typically, areas with high rental demand, like those near business districts or educational institutions, tend to offer more attractive rental yields. Conducting thorough market research and seeking guidance from real estate agents can provide valuable insights into the rental potential of a specific condo. For more information on new condo launches, you can check out Hornby Eagles.

The Swiss brand prioritises simplicity and quality in its timeless approach to product designIn the ever-changing world of interior design, one thing remains constant: the value of simplicity and quality. For over 100 years, Swiss appliance brand V-ZUG has been a pioneer in this philosophy, captivating developers and designers of luxury residences worldwide with its timeless approach to product design and commitment to excellence.Since its establishment in 1913, V-ZUG has become a household name, with its products gracing homes in Switzerland and cities across the globe, including Shanghai, London, and Singapore. What sets V-ZUG apart from its competitors is its dedication to blending durability and sleek aesthetics, creating kitchen appliances that not only elevate the overall design of a space but also stand the test of time.A key aspect of V-ZUG’s approach is its unwavering commitment to craftsmanship and quality control. Each product is meticulously handcrafted in Switzerland and undergoes rigorous testing by engineers to ensure high performance and durability. Prior to production, the design team conducts extensive research to determine the most sustainable practices that can be tailored to create each appliance while maintaining its strict quality standards.In recent years, V-ZUG has also made a conscious effort to go green, incorporating Circle-Green recycled stainless steel by Outokumpu into its products. This particular type of stainless steel generates only 7% of the emissions associated with producing traditional stainless steel, further solidifying V-ZUG’s commitment to sustainability.In addition to its focus on quality and sustainability, V-ZUG also collaborates with renowned chefs from Michelin-starred restaurants to ensure that each appliance has all the necessary functions to create top-notch meals. This not only adds to the overall functionality of V-ZUG’s products but also elevates the daily culinary experience of passionate home cooks by making professional-grade kitchen technology accessible to them.Furthermore, V-ZUG prides itself on its minimalist design language, ensuring that its products seamlessly blend into any home. From its wine cabinets with multiple temperature zones to its sleek refrigerators with mirrored glass fronts, every product is designed with clean, sleek lines that tie the entire range together, creating a cohesive and practical home aesthetic.Creating a simple yet high-quality end product is no easy task, but at V-ZUG, every detail is meticulously considered, from the way a wine cabinet’s doors open and shut to the color of the LED lights on a refrigerator. The brand’s excellence lies in its ability to harmonize these various elements to create a practical yet aesthetically pleasing home.Beyond the kitchen, V-ZUG also offers products such as the RefreshButler, a garment sanitizing and deodorizing appliance that further showcases the brand’s commitment to convenience and simplicity in everyday living.Overall, V-ZUG’s dedication to simplicity, quality, and sustainability sets it apart as a leading luxury appliance brand, offering innovative and timeless designs that enhance homes around the world.…

On December 4, Taiwan’s Vanguard International Semiconductor Corporation and the Netherlands’ NXP Semiconductors broke ground for a new US$7.8 billion ($10.5 billion) wafer manufacturing facility in Tampines. The facility, owned by their joint venture company VisionPower Semiconductor Manufacturing Company (VSMC), is set to begin initial production in 2027 and is expected to produce 55,000 wafers per month by 2029. This new facility will create about 1,500 jobs.

VSMC is not the only semiconductor company expanding in Singapore. In March, Japan’s Toppan Holdings started construction on a new factory in Jurong Lake District. This plant will produce semiconductor packaging materials and is said to be invested with an estimated $450 million.

These expansions reflect the commitment of chipmakers and related businesses to establish new production plants and research and development campuses in Singapore. According to Leonard Tay, head of research at Knight Frank Singapore, this is prompted by the need to boost their supply chain resilience. He adds that Singapore continues to be a global production hub for semiconductors and chips due to its stability amidst ongoing geopolitical tensions in other parts of the world.

The semiconductor industry is recovering from a downturn in 2023, which was caused by softer demand and higher supply. According to research by London-based consultancy Omdia, the industry experienced a 26% year-on-year revenue increase for the first three quarters of 2024. This is a reversal from the previous year when revenue fell 9% to US$544.8 billion for the whole of 2023.

The rebound has had a positive impact on Singapore’s manufacturing sector. After a slow start to the year with two consecutive quarters of contraction, manufacturing output grew 11% year-on-year in the third quarter of 2024. The electronics cluster, driven by strong demand for smartphone and PC semiconductor chips, was the main contributor to this growth, according to data from the Ministry of Trade and Industry.

Rewritten:
The limited availability of land is a significant factor driving the high demand for condos in Singapore. As a small island nation experiencing rapid population growth, Singapore is faced with a scarcity of land for development. In response, the government has implemented strict land use policies, creating a competitive real estate market where property prices are continuously rising. This makes investing in real estate, particularly condos, a lucrative venture with the potential for significant capital appreciation. Interested investors can find a wide range of Singapore Projects to choose from.

While industrial property rents in Singapore have been on the rise, with 16 consecutive quarters of growth recorded in the JTC All Industrial Rental Index since the third quarter of 2020, the momentum has slowed down. Compared to the 8.9% increase in 2023, the growth rate has been progressively slowing down. In the first, second and third quarters of 2024, the index grew by 1.7%, 1%, and 0.3% respectively.

This plateauing of rents reflects a cautious sentiment among occupiers due to an uncertain macroeconomic environment. According to Catherine He, Colliers’ head of research for Singapore, occupiers have been more prudent in light of budget constraints and have been valuing flexibility 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 space has also contributed to growing occupier resistance this year.

However, the impact of these factors has varied across different segments of industrial property. Multiple-user factories and warehouses have remained relatively resilient, recording rental growth in the first three quarters of the year, supported by stable occupancy rates.

On the other hand, the single-user factory segment experienced softer demand, resulting in both rental and occupancy rates declining by 0.3% quarter-on-quarter in the third quarter of 2024. This marks the first rental decline since the third quarter of 2020. Additionally, business park rents also dipped, falling by 0.2% quarter-on-quarter in the same period, despite a slight increase in occupancy. This decrease in rents extends the 0.1% quarter-on-quarter decline recorded in the second quarter of 2024.

The industrial sales market has been livelier compared to leasing activity. After a slow start to the year, activity picked up in the second quarter, with several significant transactions taking place. These include the sales of BHL Factories at 2C Mandai Estate for $74 million in May, Kian Ann Building at 7 Changi South Lane for $63 million in June, and a single-user factory at 47 Pandan Road for $36 million in April.

The market further received a boost in the third quarter. In August, a joint venture between private equity firm Warburg Pincus and Lendlease Group acquired a $1.6 billion portfolio of seven industrial assets from Soilbuild Business Space REIT, owned by Soilbuild Group and Blackstone. Other significant deals took place in the third quarter of 2024, including ESR-Logos REIT’s purchase of a 51% stake in an industrial site at 20 Tuas South Avenue 14 for $428.4 million and Ho Bee Land’s sale of a 49% stake in Elementum, a biomedical sciences development at 1 North Buona Vista Link, to a Brunei sovereign wealth fund for $272 million.

These deals resulted in a sevenfold increase in industrial property sales to $2.45 billion in the third quarter of 2024, according to Alan Cheong, executive director of research and consultancy at Savills Singapore. In a November research report, Savills attributed this surge in transactions to improved sentiment following the US Federal Reserve’s interest rate cut in September, in addition to a better performing manufacturing sector.

However, Cheong believes that the significant industrial deals seen in the third quarter of 2024 are likely to be a one-off. He adds that while one or two more large transactions may take place in 2025, they would be significantly lower compared to the third quarter of 2024.

Despite the strong performance in the last quarter, the supply-demand imbalance in the industrial property market in Singapore is expected to persist, with the influx of new supply and weaker demand resulting in slower pre-commitment and occupancy rates in upcoming and existing developments. According to Colliers’ He, this will likely lead to a narrowing of rental and price growth in the near term.

In its third quarter 2024 market report published in October, JTC estimated that about 0.2 million square meters of new industrial space will be completed in the fourth quarter. The new supply, targeted for completion in 2025, is almost double the average annual new supply over the past three years. The majority of this new supply is single-user factory space (0.74 million sqm) and warehouse space (0.65 million sqm).

According to He, this influx of new supply, coupled with weaker demand, is expected to result in a supply-demand imbalance, leading to slower pre-commitment and occupancy rates at upcoming and existing developments. She expects the overall industrial rental growth to range between 2.5% and 3.5% in 2025, stabilizing from the 8.9% growth recorded the previous year. Similarly, price growth is anticipated to ease from 5.1% in 2023 to between 1% and 2% this year, and it may slow down further to between 0% and 2% in 2025.

Despite the more muted outlook, demand remains strong for multiple-user factory space, centrally located food factories, and logistics space in preferred locations. According to Cheong, these segments are expected to experience rental growth of up to 3% this year before tapering down to between 0% and 2% in 2025. Additionally, the electronics and advanced manufacturing sectors are expected to continue performing well and attracting investments. CBRE’s Song adds that if the US Federal Reserve continues cutting lending rates in 2025, this could encourage more companies to deploy capex to pursue growth and expansion.

Knight Frank’s Tay is also optimistic about the semiconductor industry, which is expected to continue driving demand for industrial real estate in Singapore, supported by the growing demand for electric vehicles and artificial intelligence. He adds that data centres will also play a significant role in the industrial sector, with plans to increase capacity by at least 300 megawatts as part of the Green Data Centre Roadmap launched in May 2024.

On the other hand, business park rents are expected to continue facing pressure as companies downsize their footprint to cut costs or optimize workspace in response to flexible working arrangements. According to Savills, rents could soften by 3% to 5% this year. However, demand for newer facilities in central locations is expected to remain resilient, providing some support to the segment.…

The property market in 2024 saw two distinct halves, with the first half marked by sluggish sales and cautious market sentiment. However, the second half saw a surge in activity and record-breaking sales volumes.In 1H2024, boutique developments were in the limelight, with the lowest number of units launched for sale since 1H1996. Sales volume mirrored this trend, with just 1,889 units sold – the lowest since 1996. The exception was the 533-unit Lentor Mansion, which achieved a 75% take-up rate during its launch weekend in March.However, market sentiment started to shift in 2H2024, with the launch of the 276-unit freehold Kassia on Flora Drive in late July, which achieved a 52% take-up rate. This set the stage for strong sales momentum following the Lunar Seventh Month. In September, the 158-unit 8@BT at Bukit Timah Link saw 53% of its units sold, at an average price of $2,719 psf.In 3Q2024, new home sales leapt 60% q-o-q, marking a change in market sentiment, which was attributed to the 50-basis point interest rate cut by the US Federal Reserve in September.In October, the 226-unit Meyer Blue saw more than 50% of its units sold in private sales, with prices reaching a new benchmark for the prime District 15 enclave. In Woodlands, the 348-unit Norwood Grand achieved a take-up rate of 84% during its launch weekend in October, making it the best-selling project in terms of percentage of sales as of October. The average price of units sold was $2,067 psf, setting a record for Woodlands as the first project to surpass the $2,000 psf threshold.In November, a record-breaking six new projects comprising 3,551 units were launched over 10 days. This surge in activity was driven by a year-end rush to launch projects, creating an unusually vibrant period for property launches. Despite speculation about further property cooling measures, they are unlikely unless there is sustained sales momentum into the first quarter of 2025 and a concurrent sharp increase in property prices outpacing GDP growth.

When it comes to investing in condos in Singapore, one must take into account the government’s property cooling measures. The government has implemented different measures throughout the years to prevent speculative buying and maintain a steady real estate market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on both foreign buyers and those purchasing multiple properties. While these measures may have an effect on the immediate profitability of investing in condos, they also contribute to the long-term stability of the market, ultimately creating a more secure investment environment. In light of the changing policies, it is important for investors to keep themselves updated on new condo launches at https://www.hornbyeagles.com/ in order to make informed decisions regarding their investments.…