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The limited availability of land in Singapore is driving up the demand for condos in the country. Despite being a small island nation with a rapidly growing population, Singapore is facing scarcity in 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 a continuous rise in property prices, making investing in real estate, especially condos, a profitable venture with the potential for capital appreciation. If you’re looking to invest in a property in Singapore, Singapore Condo may be a wise and promising option to consider.

Knight Frank Singapore, the exclusive marketing agent, has put up a high-quality warehouse and factory for sale through an expression of interest at Gul Circle for $42 million. The property, which is a JTC leasehold building, is spread across five storeys and also features a mezzanine with four floors. It has a total floor space of approximately 245,955 sq ft.

Sitting on a site of 105,648 sq ft, the remaining lease period as of February 1 is 15 years and 11 months. The property falls under the Business 2 category in the 2019 URA Master Plan.

The property has been designed to cater to modern industrial needs, with its high ceilings ideal for storage and operations. It also includes features such as cold rooms and strong floor loading capabilities, making it suitable for a variety of industries. The building has nine 40-foot loading and unloading bays equipped with dock levelers, as well as four cargo and service elevators.

Its strategic location near major expressways like AYE and PIE, and Joo Koon MRT station, makes it easily accessible.

The expression of interest exercise for this property will close on March 18 at 3pm. Other recent industrial property launches by JTC include a two-storey industrial building near Tuas Second Link, priced at $8 million, and two industrial GLS sites in for the first half of 2020.…

Industrial property prices and rents in Singapore are projected to moderate this year, due to a higher supply of industrial space and weaker demand, as reported by Colliers in a February research report. The firm predicts a growth of 0% to 2% in both annual industrial rental and price rates, compared to the 3.5% growth that occurred in 2024.

According to Colliers, JTC’s 4Q2024 data indicates that the industrial property market in Singapore is “losing steam”. While the JTC All Industrial rental index showed an increase of 0.5% quarter-on-quarter (q-o-q) in 4Q2024, bringing the total growth for the year to 3.5%, this is a significant decrease from the 8.9% rental growth recorded in 2023. The price index also increased by 0.5% q-o-q in 4Q2024, which was lower than the 1.2% growth in the previous quarter. Industrial property prices saw a 2.1% increase in 2024, which is less than half of the 5.1% growth seen in the previous year.

The report highlights that there will be a surge in the supply of industrial space this year, with over 2.5 times the supply in 2024, before tapering off from 2026 onwards. This influx in supply has resulted in an imbalance between supply and demand, with some segments of the market facing slower pre-commitments for upcoming projects and lower occupancy rates for completed projects.

The increase in supply, combined with caution among occupiers due to high interest rates and rising operating expenses, is expected to continue to dampen rental growth. Additionally, the uncertainty brought about by heightened trade protectionism could also affect business confidence and investment decisions.

However, the report also notes that industrial demand is expected to remain supported by the semiconductors, logistics, and advanced manufacturing sectors. As such, the gradual ramp-up of industrial leasing activities is expected over time as policies become clearer and market sentiments improve, supported by the ongoing upturn in the chip cycle.

In the meantime, the higher supply of industrial space and the projected moderation in rental rates could present opportunities for tenants, with more options available in the market. The availability of new industrial developments with modern specifications may encourage businesses to relocate from older manufacturing spaces to newer projects.

Nicolas Menville, the executive director and head of Singapore-based industrial clients for Colliers, suggests that this could be a good year for tenants to make a move, given the increased supply and projected moderation in rental rates. He adds that businesses may be more inclined to relocate to newer projects, equipped with better specifications and facilities.

Overall, the report predicts that industrial property prices and rents in Singapore will see moderate growth this year, influenced by the higher supply and weaker demand. However, the presence of strong sectors, such as semiconductors and logistics, could provide some support for the market.

Investing in a condo in Singapore offers numerous benefits, one of which is the potential for capital appreciation. As a leading business hub in the world, Singapore’s robust economy fuels the constant demand for real estate. This has led to a consistent rise in property prices, especially for condos in prime locations. Savvy investors who enter the market at the opportune moment and hold onto their properties for an extended period can enjoy considerable capital gains. To make the most out of this opportunity, it is essential to research and invest in reputable Singapore projects that have a history of strong capital appreciation.…

The Tan Boon Liat Building is currently on the market for collective sale through a public tender with a reserve price of $1.15 billion. Located at 315 Outram Road, the industrial property sits on two separate freehold land plots with a combined area of approximately 175,655 sq ft.

The site is best known for its 15-storey building which houses multiple furniture and home decor stores. It also benefits from its close proximity to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL).

According to Cushman & Wakefield, the property’s marketing agent and advisor, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on January 22, recommending that the zoning of the site be changed from “Business 1” to “Residential with Commercial at 1st storey”. The proposed plot ratio will also be increased from 3.1 to 4.9, resulting in a 50% increase in the total allowable gross floor area (GFA).

Cushman & Wakefield further adds that URA has also suggested the amalgamation of a few state land plots into the main plot. These land plots are estimated to measure approximately 20,451 sq ft, subject to final approval from relevant authorities.

With the inclusion of these state land plots and the potential bonus GFA, the estimated total GFA of the site will exceed 1.06 million sq ft. The first storey will have a commercial GFA of approximately 16,146 sq ft.

Under the residential allocation, a minimum GFA of 161,459 sq ft will be set aside for Serviced Apartments II (SA2), where a minimum three-month stay is required. The allowable building heights for the new development will range from 130m to 180m.

Including the land betterment charges on rezoning, the estimated premium payable on the remnant state land, and the 10% bonus GFA for the residential portion, the estimated land rate is $1,888 psf per plot ratio based on the reserve price.

Recent industrial sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)

Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that the site will be attractive to developers due to its coveted freehold tenure and its location on the TEL, which will appeal to homebuyers.

She also highlights that there will not be any Additional Buyer’s Stamp Duty (ABSD) imposed on the potential purchase as the original site is zoned for “Business 1”.

When it comes to real estate investment, location is a key factor to consider, and this holds especially true in Singapore. In this city-state, condos that are situated in central areas or near essential amenities such as schools, shopping malls, and public transportation hubs tend to hold more value. Take, for instance, prime locations like Orchard Road, Marina Bay, and the Central Business District (CBD) where property values have consistently shown growth over time. The added benefit of being in close proximity to reputable schools and educational institutions further adds to the appeal of condos in these areas, making them highly sought after by families and increasing their investment potential. For those looking to invest in Singapore’s real estate market, Singapore Condo offers an ideal opportunity for long-term growth and returns.

The tender for the site will close at 3pm on March 18.…

Park Nova Breaks Record for Highest Price Sale of a Condo Unit

In January, the largest penthouse at Park Nova, located at a prime location in District 10, was sold for $38.888 million, setting a new record for the development. The spacious five-bedroom unit, spanning 5,899 sq ft on the 20th floor, was purchased from the developer for $6,593 psf, according to the URA Realis database.

This transaction not only marks the highest price ever recorded for a unit at Park Nova, but also sets a new psf-price record for the development. Prior to this, the record was held by a 4,499 sq ft penthouse that was sold in May 2021 for $26.026 million ($5,784 psf).

The ever-increasing demand for condominiums in Singapore can be largely attributed to the limited supply of land. Being a small island country with a continuously growing population, Singapore is facing a constant struggle to find available land for development. This has resulted in strict regulations on land use and a highly competitive real estate market, where property prices continue to soar. As a result, investing in real estate – especially in condos – has become an attractive opportunity with the potential for significant capital appreciation. In fact, there is a vast array of Singapore projects available, making it a desirable location for real estate investment.

With this sale, Park Nova now holds the second-highest psf-price ever registered for a condo unit in Singapore. The current record holder is a unit at The Marq on Paterson Hill, which was sold in 2011 for $20.54 million or $6,650 psf.

But the recent sale at Park Nova may not hold the record for long, as another unit at The Marq on Paterson Hill is currently on the market for sale at a whopping $95 million. This could potentially set a new record for the highest price paid for a condo unit in Singapore.

The luxurious penthouse at Park Nova was previously reported to have been sold in 2021 for $34.438 million ($5,838 psf). It is believed to be part of a collection of properties linked to a $3 billion money laundering case, which have been put up for sale.

Within just a month, the developer has sold three units at Park Nova, according to caveats lodged. On Jan 17, a four-bedroom apartment on the 19th floor, spanning 2,906 sq ft, was sold for $16.59 million ($5,708 psf). And on Dec 27, another four-bedroom unit measuring 2,896 sq ft on the 18th floor was sold for $15.99 million ($5,522 psf).

Park Nova, which has 54 units, is a freehold luxury condo located at the junction of Orchard Boulevard and Tomlinson Road in prime District 10. Developed by Hong Kong’s Shun Tak Holdings, the apartment received its temporary occupation permit in November 2021.

For those interested in purchasing a unit at Park Nova, please visit Buddy, our one-stop portal for property listings. You can also find the site plan and diagrammatic chart for Park Nova on Buddy, as well as compare price trends between condo and executive condo sales. Additionally, you can generate price trend graphs for new launch condos in District 10 and view a project summary for Park Nova.…

CapitaLand Investment (CLI) has recently acquired a freehold land parcel in Osaka with plans to develop its first data centre in Japan. This project will require an estimated investment of over US$700 million or $944.3 million and is set to secure 50 megawatts (MW) of power capacity.

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When considering investing in a Singapore Condo, it is crucial to keep in mind the impact of the government’s property cooling measures. In an effort to maintain a stable real estate market and discourage speculative buying, the Singaporean government has implemented various measures over the years. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. While these measures may affect the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a more secure investment environment.

According to CLI, this state-of-the-art data centre will not only cater to the growing demand for data storage and processing capabilities, but also incorporate advanced energy-saving solutions and adhere to industry best practices for temperature management. It will also prioritize the use of products with zero ozone depletion potential or with a GWP of less than 100 to minimize any environmental impact.

Manohar Khiatani, senior executive director of CLI, states that this acquisition aligns with the group’s investment theme of digitalization and strengthens their presence in Japan, which is a key market for them. He adds that CLI’s strong balance sheet allows them to strategically invest in quality assets like data centres for their future private funds. Khiatani highlights that Japan is a Tier 1 data centre market with immense potential for growth.

The Japanese data centre market is expected to grow at a CAGR of 10%, reaching an estimated value of US$38.7 billion in 2038. With a 1.4 gigawatt capacity, Japan is also the largest data centre market in the Asia Pacific region, excluding China. Khiatani notes that this acquisition is strategically located in Osaka, which is already home to major cloud service providers like Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle. Thus, the data centre will be well-positioned to meet the demand in this established data centre cluster.

Michelle Lee, managing director of private funds (data centre) at CLI, believes that the demand for data centres will continue to grow at a double-digit rate, outpacing new supply. She adds that there is also a strong interest from institutional investors in data centre investments, with 97% of them planning to increase their overall investment in this sector.

CLI has raised US$600 million for its data centre development funds in Asia since October 2020 and has added 23 data centres to its global portfolio this year. The CapitaLand Group has 27 data centres across Asia and Europe, with approximately 800 MW of power and around $6 billion in assets under management. CLI will continue to leverage this momentum and identify compelling investment opportunities for its private fund investors.

On Feb 3, shares in CLI closed at $2.42, representing a 1.63% drop or a decrease of 4 cents.…

CapitaLand Ascott Trust (CLAS) recently announced its acquisition of two freehold limited-service hotels in Japan for a total cost of JPY21 billion ($178.5 million). The hotels, ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, were purchased at an 8.3% discount to independent valuation and are expected to provide a 1.6% increase in distribution per stapled security (DPS) on a FY2024 pro forma basis. The blended net operating income (NOI) yield of the acquisition is forecasted to be 4.3% in FY2024.

Investors, both local and foreign, are increasingly drawn to investing in condominiums in Singapore. The city-state’s strong economy, stable political climate, and excellent quality of life make it an attractive choice for real estate investments. With its thriving real estate market, Singapore offers a plethora of opportunities, and condos are a standout option due to their convenience, amenities, and potential for high returns. Adding Singapore Projects to your investment portfolio offers numerous benefits. In this article, we will delve into the advantages of investing in a condo in Singapore, important considerations, and steps to take when making this investment decision.

The acquisition was financed through JPY-denominated debt and proceeds from CLAS’ divestment of four properties in Japan. This approach serves as a natural hedge against currency fluctuations. The ibis Styles Tokyo Ginza is located in the bustling shopping and entertainment district of Japan’s capital city. The 224-unit hotel is situated near Ginza Six, a popular high-end retail mall, and Uniqlo’s global flagship store. The iconic Ginza Wako clock tower is also just a short walk away.

On the other hand, the 392-unit Chisun Budget Kanazawa Ekimae is located in Kanazawa, a city known for its historical attractions and traditional Japanese gardens. The hotel provides easy access to popular tourist destinations such as Kanazawa Castle, Kenrokuen Garden, and the geisha and samurai districts featuring traditional architectural designs from the Edo period.

The acquisition of these two properties adds to CLAS’ portfolio of investments, which includes the recently acquired Teriha Ocean Stage in Fukuoka and the remaining 10% stake in Standard at Columbia in the United States. In total, CLAS has completed more than $530 million of investments in the past 12 months at higher yields than the divestments. This has resulted in an increase in income distribution for CLAS’ stapled security holders.

CLAS’ divestments in 2024, which amounted to over $500 million, have also unlocked around $74 million in net gains. This portfolio reconstitution strategy is part of CLAS’ plan to enhance the quality of its portfolio and deliver stable returns to its stapled security holders. According to CEO Serena Teo, the FY2024 NOI yield of the two hotels is 230 basis points higher than the exit yield of approximately 2.0% for the four previous divestments in Japan. She also notes that by quickly reinvesting proceeds from the divestments into higher-yielding assets, CLAS has fully replaced the income from the four divested properties.

On the stock market, CapitaLand Ascott Trust closed at 90 cents per unit.…

Mapletree Investments has acquired its first logistics property in the UK, as well as 10 warehouses in Spain, for a total value of approximately EUR315.1 million ($444.5 million). These acquisitions, which span over 256,000 sqm, will serve as the seed assets for the group’s second European logistics-focused fund. The move reflects Mapletree’s strategy to strengthen its focus in the logistics sector and expand its global presence, according to the company’s Jan 27 press release. The fund will be launched “at an appropriate time after achieving sufficient scale.”“Logistics remains a highly attractive sector that has consistently enjoyed strong demand from occupiers as well as investors. E-commerce continues to thrive and companies are making efforts to secure and expand their supply chains,” says Ralph van der Beek, CEO of Mapletree’s European commercial and logistics arm. Elite Partners Capital recently bought a logistic centre in Germany, and van der Beek states that the company is looking forward to the assets delivering “stable and recurring returns over the long run.”The UK property is located in Derby Commercial Park and is easily accessible via major arterial roads such as the M1, A50, and A6. It is close to the city centre and East Midlands Airport. According to Mapletree, the tenant at the asset recently renewed its lease on a long-term basis. Meanwhile, in Spain, the 10 acquired warehouses are located in core logistics hubs across the first rings of Barcelona, Valencia, and Madrid. These assets have direct access to the city centre via various transportation modes, and are expected to benefit from third-party logistics providers and manufacturers that are highly committed to the properties due to their proximity to production facilities and investments. Following the acquisitions, the group now has a total of 80 logistics assets in eight different countries.

Understanding the regulations and restrictions surrounding property ownership in Singapore is crucial for foreign investors. In comparison to landed properties, which have stricter ownership rules, foreigners are generally able to purchase condos with less restriction. However, it’s important to note that foreign buyers are subject to the Additional Buyer’s Stamp Duty (ABSD) of 20% for their first property purchase. Despite this added cost, the stability and potential for growth in the Singapore real estate market remains a strong draw for foreign investment. In fact, many continue to be enticed by the allure of owning a Singapore Condo.…

The luxurious condominium, Turquoise, situated at Sentosa Cove and overlooking the waterway, currently has three duplex penthouses available for purchase at a price of $23 million. The largest of the three penthouses is a spacious five-bedroom, covering an area of 7,987 sq ft. This is also the biggest among the total of 10 penthouses in the 99-year leasehold waterfront condo.

The penthouse boasts of a wine cellar, kitchen, living area, four en suite bedrooms, two utility rooms and a balcony on the lower level. The upper level features a master bedroom suite, with its own private infinity pool, pool deck and outdoor shower. This grand penthouse is on offer for $12 million, at a rate of $1,502 psf.

The second-largest penthouse available for sale in Turquoise is a four-bedroom unit, with an area of 3,746 sq ft. It is priced at $5.99 million, which comes to approximately $1,599 psf. The upper floor of this penthouse has a spacious open-air terrace, equipped with a built-in jacuzzi and providing unobstructed views of Sandy Island and Sentosa’s scenic southern waterfront.

The final penthouse up for sale is a three-bedroom unit, spanning across 3,111 sq ft, and with a guide price of $5 million (roughly $1,607 psf). All three penthouses are located on the sixth floor and come with private lift lobbies, wet and dry kitchens, floor-to-ceiling windows, open balconies, and attached en suites for each bedroom.

The condo provides residents with a range of amenities, such as a gym, barbecue pits, a swimming pool, a steam room, and 21 private berths for residents. Developed by Ho Bee Land, Turquoise was completed in 2010. With a total of 91 units spread across three 6-storey blocks, the typical units consist of a mix of three- and four-bedroom apartments. The three-bedroom units vary in size from 2,088 sq ft to 2,573 sq ft, while the four-bedroom units range between 2,400 sq ft to 3,050 sq ft. The penthouses cover an area of 3,111 sq ft to 3,764 sq ft, while the sky villas are even more extensive, ranging from 6,900 sq ft to 7,987 sq ft.

Interestingly, the developer still owns the grandest penthouse, measuring 7,987 sq ft and comprising of five-bedrooms. It is currently being offered for sale at $12 million. According to URA caveats, the second-largest penthouse (with an area of 3,746 sq ft and four bedrooms) was purchased by a Korean national in November 2007, for a price of approximately $9.5 million ($2,545 psf).

The three-bedroom duplex penthouse, spanning across 3,111 sq ft, was bought in December 2007 by an African national for just over $8 million ($2,579 psf). All three penthouses have been put on the market for sale after holding onto them for roughly 18 years.

Cabasug, a senior associate VP at List Sotheby’s International Realty, reveals that foreign buyers bought these waterfront homes for investment and holiday homes when the project was initially launched. Interestingly, the four-bedroom penthouse unit has already been leased out before being listed for sale. In fact, the most recent tenant paid a monthly rent of $18,000 and rented the unit for two years, from August 2022 to 2024. Cabasug further notes that the current rental rate for the unit is still $18,000. Therefore, a new buyer who purchases the unit for $5.99 million stands to earn a gross rental yield of 3.6% if they choose to rent it out.

During its launch between October 2007 and February 2008, the developer sold 39 units at an average price of $2,596 psf, based on registered caveats. However, due to the slump in the market after the Global Financial Crisis in 2008, the average prices have reduced over the years. Between 2008 and 2012, units at Turquoise were transacted at an average cost of $2,471 psf. It reached an all-time low in February 2021, when a 2,400 sq ft, four-bedroom unit was sold for a meager $2.8 million, translating to $1,165 psf.

In April 2021, the developer, Ho Bee, released 16 remaining units for sale, with promo discounts ranging between $500,000 to $750,000 per unit. The prices ranged between $1,290 psf and $1,536 psf, and the developer claimed that these were mainly the lower-floor units. In 2020, the average price of apartments sold at Turquoise was recorded at $1,427 psf, based on four resale transactions. Cabasug notes that both foreign owners at Turquoise are looking to sell their properties after owning them for close to 18 years, as they look for better investment opportunities.

As per data, Singaporean buyers have made the majority of purchases at Turquoise, accounting for 57.4% of transactions (39 units). This is a drastic change from the initial buyer profile when 59% of the 39 new owners were foreign nationals. Singaporeans only accounted for 25.6% of buyers, while PRs were just 12.8%. One unit was sold to a company. This shows the shift in buying trends, with more and more buyers seeking to make Sentosa their primary residence. Cabasug says that most buyers are now empty nesters, retirees, or young families looking for a slower pace of life. Additionally, the rise in remote work has only added to the appeal of living in Sentosa.

Ho Bee Land was one of the first developers to venture into Sentosa, with its other projects being The Berth by the Cove (200 units), The Coast (249 units), Seascape (151 units), and Cape Royale (302 units) – the latter two being a joint venture with Malaysian developer IOI Properties Group. Ho Bee has also constructed bungalows at Coral Island and Paradise Island, two of the four artificial islands at Sentosa Cove.

When it comes to investing in condos in Singapore, one must also take into account the property cooling measures implemented by the government. In an effort to prevent speculative buying and maintain a steady real estate market, the Singaporean government has introduced several measures over the years. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. While these measures may have an impact on the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a more secure environment for condo investment. This makes it a favourable choice for individuals looking to invest in condos in Singapore.…

In a period between Jan 3 and Jan 11, The Botanic on Lloyd, The Cape and Tembusu Grand set new price records, while Sentosa Cove condominiums saw a repeat of 2022’s most profitable sale at the exclusive address.Freehold condo The Botanic on Lloyd sold a four-bedroom unit for $5.13 million, or $2,493 psf on Jan 7, setting a new record for the highest psf-price achieved at the 66-unit development. The transaction surpassed the former record of $2,339 psf, which was established in October last year when another four-bedroom unit located on the fourth floor was sold for $3.5 million. The development located along Lloyd Road comprises 60 apartments and six townhouses and was completed in 2006.In a similar fashion, The Cape, a 76-unit freehold condo, set a new price record of $2,284 psf when a three-bedroom unit sold for $3 million on Jan 10. The previous record of $2,265 psf was achieved in November 2012 when a two-bedroom unit was sold for $3.49 million. The development located along Amber Road was completed in 2014 and consists of one- to three-bedroom units.Known for its luxurious waterfront living, Sentosa Cove saw a repeat of last year’s most profitable sale at the exclusive address. In a transaction that took place on Jan 11, a 4,284 sq ft, four-bedroom unit at The Oceanfront was sold for $7.5 million ($1,752 psf). The previous transaction saw the same unit sold for $6.5 million ($1,517 psf) in August 2022. The exclusive address is home to some of the priciest condominiums and bungalows in the country.In contrast to The Botanic on Lloyd and The Cape, upcoming 99-year leasehold development Tembusu Grand set a new price floor of $2,174 psf on Jan 11 when a three-bedroom unit of 1,399 sq ft was sold for $3.04 million. This transaction surpassed the previous record low of $2,193 psf set just two months earlier in November 2024 when another similarly sized three-bedroom unit on the same floor was sold for $3.07 million. The development located on Jalan Tembusu is expected to be completed in 2028 and has since sold 584 units at an average price of $2,444 psf since its launch in April 2023.

In Singapore, investing in condominiums is a popular option, but it’s important to also consider the government’s property cooling measures. The Singaporean government has implemented various measures over the years to control speculative buying and maintain a steady real estate market. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may impact the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, making it a secure environment for investing in condos. Considering the government’s efforts to regulate the housing market, condo investments in Singapore offer a more reliable and stable investment opportunity.…

HDB resale property prices continued its steady climb in the last quarter of 2024, rising by 2.6% compared to the third quarter. This marks the 19th consecutive quarter of price growth in the resale market, according to the latest data published by HDB on Jan 24. The cumulative price increase for the whole of 2024 has now reached 9.7%. This is nearly double the 4.9% increase seen in 2023.

The uptick in prices can largely be attributed to the limited supply of flats reaching their Minimum Occupation Period (MOP) in 2024, according to Mohan Sandrasegeran, head of research & data analytics at SRI. This has created some upward pressure on prices, especially for newer and larger flat types, such as five-room and executive units.

The average resale price of five-room flats saw the highest increase of 2.2% q-o-q to $754,097, while four-room flats rose by 2.2% q-o-q to $652,544 in the fourth quarter of 2024. The highest increase in prices was seen in the Central Area, which grew by 25.6% q-o-q, followed by Toa Payoh (12.1%), Tampines (6.9%), Bishan (6.7%), and Bedok (6.1%), according to Christine Sun, chief researcher & strategist at OrangeTee Group.

About 285 HDB resale flats were sold for $1 million or more in the last three months of 2024, bringing the total number of million-dollar HDB resale transactions for the year to 1,035. These transactions were mostly seen in mature estates, with Kallang/Whampoa, Toa Payoh, and Bukit Merah being the top three estates for such transactions.

Transaction volume dips in fourth quarter

As an outsider looking to invest in Singapore, it is crucial to be well-informed about the regulations and limitations surrounding property ownership. While purchasing condos is generally more feasible for foreigners, the same cannot be said for landed properties, which have stringent ownership requirements. Furthermore, foreign buyers must take into account the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their first property purchase. However, despite this additional cost, the stability and potential for growth in the Singapore real estate market continue to pique the interest of foreign investors. In fact, the recent new condo launches have only added to the allure of the market.

Despite the continuous growth in prices, resale transactions fell by 21.1% q-o-q in the last quarter of 2024, from 8,142 units sold in the third quarter to 6,424 units in the fourth quarter. This is due to seasonal factors such as the year-end holiday and festive season, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. The lower interest rate environment may have also encouraged some buyers to move to the private residential market or the Executive Condominium (EC) market, he added. Moreover, some buyers may have opted to ballot for a flat in the latest Build-to-Order (BTO) sales exercise held in October.

Newly MOP flats expected to decrease in 2025

Looking ahead, only 6,976 flats are expected to reach the end of their Minimum Occupation Period (MOP) this year. This is a 41.6% decrease in new housing supply entering the secondary public housing market compared to 2024, which saw 11,952 flats. According to Sandrasegeran, this is due to relatively fewer BTO flats being completed in 2020 during the Covid-19 pandemic. HDB has announced plans to launch over 25,000 new flats across three BTO sales exercises in 2025, with 19,600 BTO flats and more than 5,500 flats under the Sale of Balance Flats (SBF) exercise.

The next SBF exercise will take place concurrently with the upcoming BTO sales exercise in February, featuring 5,000 BTO flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun. Approximately 40% of the 5,500 SBF flats are completed, while 3,800 units of the 19,600 BTO flats will be designated as Shorter Waiting Time (SWT) flats with wait times of less than three years.

Looking at the year ahead, Sandrasegeran forecasts resale prices to increase by 3.5% to 5.5%, while Huttons’ Lee projects a more optimistic increase of between 5% to 8%.…