Table of Contents

Introduction & Disclosures

Macro Events in 1H2024

Micro Trends in 1H2024

Events and Trends in 2H2024

Key Takeaways for Homeowners and Buyers

Introduction & Disclosures

In this biannual report, PLB will be covering the major events and developments that impacted Singapore’s real estate market. It will be addressing the macroeconomic and policy influences on the movements in the different segments that span across Outside Central Region (OCR), Rest of Central Region (RCR), and Core Central Region (CCR) regions across Singapore in the Condominium (Condo), HDB, and Landed market segments. This report will cover the residential property market exclusively.

Our approach to analysing real estate price and volume movements will vary from previous quarterly reports. The main source of data on micro trends are provided by RealInsight. We supplement this with macroeconomic data from the US Fed, NUS Real Estate, and other government agencies. The analysis will be guided by how macroeconomic events shape micro trends in Singapore’s real estate market, with a focus on how future macroeconomic events will impact the movements in price and volume for various market segments in the second half of 2024. 

Readers may refer to the executive summary above or the key takeaways at the end of the report for the main points. The sections on the macro and micro events and trends will cover in more detail the rationale and direction of price and volume movements across different segments of the real estate market. Whilst these trends cover the primary direction of the market movement, do note that there may be particular real estate projects that defy market trends due to special characteristics or extenuating circumstances. This biannual report will not cover such exceptions.

Most of the data used in the report will be on a monthly basis. Do note that when the volume of transactions are low, the monthly variation in prices may be inflated depending on the specific properties being transacted on the market. This effect will be more pronounced in Condominium and Landed segments in particular. Prices denominated in per square foot (PSF) basis and quantum basis are averages taken for transactions in the same month of the same category. The data is taken at the time of writing on 29 July 2024. We make no warranties on the accuracy of the data provided by third parties.

Please consult a professional real estate agent for advice prior to making an informed decision on your property transaction. You may contact us here if you have any questions regarding how developments covered by this report may affect your property decision.

For more information and valuable takeaways on Singapore’s real estate market, check out our editorial webpage.

Macro Events in 1H2024

The macroeconomic data and events that we will be covering in this biannual report are US Federal Funds Effective Rate that affect interest rates governing property loans, Singapore’s consumer sentiment for the property market, policy shifts and government land sales (GLS) in the first half of 2024.

US Federal Funds Effective Rate is an important indicator of where interest rates for home loans are likely to head towards in the future. Interest rates for home loans guide buyer sentiment as it affects their cost of borrowing and monthly mortgage payments significantly. Higher interest rates can slow down property markets by restricting buyers’ choices based on the higher monthly mortgage payments, effectively reducing the affordability of certain properties.

As shown in Figure 1 below, in a previous monetary tightening cycle of similar magnitude prior to the 2008 Global Financial Crisis, the Fed Funds Rate peaked for approximately a year around 5.25% from July 2006 to July 2007. Presently, the Fed Funds Rate peaked at 5.33% from August 2023 and would soon match the duration of the 2006-2007 monetary tightening cycle.

In the first half of 2024, heightened interest rates may have dampened buyer confidence in higher quantum properties. However, the markets may have also adjusted to the high interest rates given that it peaked in the second half of 2023. There may only have been a mild effect on the residential property market.

There is evidence to believe that the market has already adjusted to the high interest rates and is already looking forward towards potential future interest rate cuts. The NUS Real Estate Sentiment Index shows that ever since the interest rate peaked in 2H2023, real estate sentiment has been improving quarter on quarter. 

While the latest 2023Q2 data is not yet released as at the time of writing, the data from Figure 2 shows that real estate sentiment is presently neutral but is on a good upward trend. The forward looking nature of sentiment indices may point to brighter times ahead for Singapore’s real estate market. However, sentiment itself might not translate to movements in property prices as transactions are typically slower for the property market and consumers in Singapore’s market have a stronger holding power.

Note that while property sentiment has fallen from the middle of 2021 to 2023, likely influenced by the steep interest rate hikes from the US Fed, residential property prices in Singapore have not fallen at all. Instead, sentiment might be more reflective of how the volume of transactions might change in the future.

Next, the first half of 2024 saw the introduction of new property tax changes and ABSD remissions announced by the government in the Budget 2024. In summary, the property tax changes involved increasing the annual value of property in the tax brackets, essentially favouring existing homeowners and reducing the amount of property tax most homeowners would have to pay.

The ABSD remissions announced in Budget 2024 apply to singles over the age of 55, basically addressing property down-sizing for older Singaporeans. This eases the timeline of moving to a property of a lower value. For instance, the ABSD payable for buying a lower valued property as a second property will be in remission if the buyer over the age of 55 sells the first property of higher value within 6 months of the new purchase.

These policies target specific needs of the population. The new property tax changes adjust the tax payable on property inflation to ease the tax outflows for residents in middle-class properties. The ABSD remissions eases the process for property downsizing for singles above the age of 55. While it may not be significant enough of a change to move the property markets, it nonetheless signals the sensitivity of government action to the voices and needs of the public. We may expect policy action when valid concerns are raised by the public.

Recent GLS such as the ones in April and July have drawn attention to the decline in developer interest in the sites sold by the government. The number of bidders and placed bids have both decreased. In April, Zion Road and Springleaf sites drew bids that were below expectations. This was interpreted as cautious sentiment from developers due to the markers of slower demand in the first half of 2024. While the Zion Road site subsequently received higher bids in July 2024, cautious developer sentiment was still echoed in the bids for GLS sites in Canberra and De Souza Avenue.

The cooled down GLS market may signal more than just cautious developers. This might not translate to lower real estate prices in the future but might signal a potential disinflation of new launch property prices in the coming years. With developers closely watching how the current market is absorbing new condo launches and upcoming TOP resale transactions, we might see the GLS market shift as a response in the second half of 2024.

Overall, the macroeconomic data and events indicate that the real estate market in Singapore may have normalised and is now positioned to be cautiously optimistic and awaiting a bullish catalyst to push residential property volume, and potentially prices further up.

Micro Trends in 1H2024

In this section, we will analyse the price and volume trends in the Condo, HDB, and Landed property segment by region. We broadly abstract price and volume movements from January to June and discuss the implications of micro trends across the different market segments and regions.

Condominium Sub-Segments 

Resale Condo OCR prices and volume appear to be steadily increasing at a modest rate. From Figure 3, we note 635 transactions in January and 663 transactions in July, volume increased by 4.4%. The overall volume for 1H2024 for resale OCR also appears to be slightly higher than 2H2023.

The price of resale condos in the OCR has also increased by approximately 4.0% in 1H2024, from $1,372 PSF to $1,427 PSF. The price and volume trends in this sub-segment appear to be relatively stable and are unlikely to change despite some fluctuations in volume. We expect resale condos in the OCR to continue seeking gains in 2H2024.

Next we turn our attention to the New Sale condo performance in the OCR. Figure 4 below shows that transactions fluctuate as expected from the new launch market. What is of note is the relative increase in new launch condo prices in the OCR from $1,715 PSF in January to $1,908 PSF in June, marking a 11.2% increase.

It is a known fact that the present real estate market sees new launches push up prices due to cost-push inflation over the past year of launches. Rising costs push developers to price new launches more aggressively. However, Figure 5 below shows that there is a high volume of new launches from August 2021 to November 2021 that are approaching their TOP in 2H2024 and this might put resale OCR condos in a more competitive position against new launches in 2H2024 due to the pricing disparity.

From Figure 6, 1H2024 saw a decrease of 28.1% in the supply of OCR condos from 2,660 in January to 1,914 in June. This signals a strong absorption from the market and potentially higher prices due to declining supply. However, if resale OCR condo homeowners from 2H2021 purchases decide to offload their properties upon TOP, we may see an increase in the supply of OCR condos to meet the demand of the market.

Next we move on to the RCR Condo segment. Similar to the OCR Resale Condo sub-segment, the RCR Resale Condo sub-segment sees stable increase in both price and volume in Figure 7. The number of transactions increased from 272 in January to 298 in June, marking a 9.5% increase. The prices have also increased from $1,764 PSF in January to $1,809 PSF in June, a 2.5% increase.

Compared to the New Sale Condos in the OCR, the RCR sees a more stable price and volume trend in Figure 8. This may be due to the spaced out timings of various launches over the past year. While there are some price and volume fluctuations throughout the past year, trends remain surprisingly neutral in this sub-segment, signalling potential saturation and relatively higher competition in the new launch market for RCR.

We further examine the previous condo launches 3 years ago in Figure 9 and notice a similar trend with OCR condos in the RCR. A high volume of RCR condos in 2H2024 and 1H2025 will bump up attention towards the resale market as buyers in the future may have more attractive choices that meet their personal needs in the RCR.

The condo market sees better absorption of supply in the RCR. From Figure 10, we see a stronger trend of  decline in the supply of RCR units from 2,657 in January to 2,474 in June, marking a decrease of 6.9%. While this is a lower percentage number compared to the OCR market, the trend of decline appears to be more persistent. The surge of TOP RCR units over the next year may alleviate this downward trend.

Finally, we move onto the CCR Condo segment. Resale CCR Condos appear to have a slight decline in price from $2,138 PSF in January to $2,066 PSF in June, a decline of 3.4%. This, however, may be led by differences in projects transacted between months due to the variance in prices across CCR projects. The volume of transactions show no abnormal movement, April and May appear to be strong volume months for the condo market in general.

While resale CCR condos experienced a mild decline in price, we see an increase in price for new sale CCR condos. Figure 12 below shows an increase in price from $3,094 PSF in January to $3,335 PSF in June, marking an increase of 7.7%. Volumes were stable barring a peak of almost 100 in March.

Similar to other condo sub-segments, the number of CCR condos that have launched 3 years ago vastly outnumber the ones in 1H2024, as shown in Figure 13. This signals that across OCR, RCR, and CCR, the resale market may be seeing more volume and buyer attention in 2H2024.

From Figure 14, the supply of CCR condos are also seen to be on the decline. Supply fell from 1,463 units in January to 724 units in June. This is the sharpest decline across all condo segments, coming in at 50.6% decrease in supply. The TOP units in the CCR may see this trend reverse in 2H2024 and beyond.

Resale HDB Sub-Segments

From Figure 15, the OCR HDB sub-segment saw a slight increase in price from $554 PSF in January to $581 PSF in June, marking a 4.8% increase. The trend in price and volume look relatively stable in Figure 15 and would seem to persist in 2H2024, with potentially higher prices. While there are some fluctuations in volume, there is no abnormal volume over the past year.

From Figure 16, the RCR HDB sub-segment shows a mild increase in prices from $720 PSF in January to $758 PSF in June, marking a 5.2% increase. Volume in the RCR HDB sub-segment seems to have increased in 1H2024. January saw 368 transactions while June had 425 transactions, an increase of 15.4%.

From Figure 17, the CCR HDB sub-segment is a very small but unique niche, with most projects having low remaining lease. Nonetheless, Figure 17 shows that both price and volume have increased. Prices increased from $712 PSF in January to $739 PSF in June, a 3.7% increase. Volume increased from 25 in January to 37 in June, a 48% increase. However, these shifts may vary significantly based on the projects being transacted.

Overall, the HDB sub-segments seem to be steadily increasing in price, with stable volume. As more resale Condos enter the market, the middle-priced strata of Jumbo and large HDB flats may find more competition with smaller sized resale condos as possible alternatives for homebuyers in 2H2024.

The RCR commands a 30.4% premium over the OCR for the resale HDB segment. This is compared to a 26.7% RCR premium for the Condo segment when comparing between the two regions. With June prices indicating a higher premium for the HDB RCR sub-segments, the market may be indicating more buyer interest in the resale HDB sub-segment as opposed to resale condos.

However, new sale condos have an even higher RCR premium over the OCR, sitting at 35.2%. This even higher premium seems to indicate that the demand for new homes in this region is still going strong.

Landed Sub-Segments

In the Landed sub-segments, we will examine the prices of OCR, RCR, and CCR Landed property all sales at the PSF and quantum level. This analysis will be conducted at an abstracted level and will not differentiate between the various types of landed properties in the same region. It is instead a between-region comparison to show how prices have changed across time for the OCR, RCR, and CCR.

From Figure 18 above, we can see that 1H2024 saw greater volume of transactions in the OCR as well as a steady increase in price. The number of transactions rose from 92 in January to 120 in June, showing a rough 30.4% increase in transaction volume. Prices increased from $1,547 PSF in January to $1,664 PSF in June, showing a 7.8% increase in prices. From Figure 19 below, we see that the average quantum increased from $4,133,513 in January to $4,251,761 in June, showing a 2.8% increase in average quantum per transaction.

From Figure 20 below, the RCR saw greater price fluctuation for Landed properties but volume in 1H2024 appears to have improved from 2H2023. Prices moved from $2,147 PSF in January to $2,031 PSF in June, showing a decline of 5.4%. The number of transactions increased from 22 in January to 28 in June, showing an increase of 27.2% in volume. As prices fluctuate more in the RCR, the price drop in 1H2024 for RCR landed properties may not be as informative as it seems. The drop in price may be contributed by a lack of new landed properties sold or transactions in landed properties in more affordable enclaves.

Figure 21 below shows the changes in the average quantum for transactions in the RCR over the past 12 months. The average price of a landed property in the RCR still increased from $5,221,409 to $5,254,626 despite the drop in PSF prices. This might be due to larger landed properties being sold in this region, potentially indicating a preference for larger landed homes over smaller properties.

The CCR sub-segment for Landed properties see greater fluctuations in both price and volume, which is expected of lower volume niches. From Figure 22, we can see that the number of transactions increased from 12 in January to 17 in June, an increase of 41.6%. Price increased from $2,313 PSF in January to $2,427 PSF in June, an increase of 4.9%. 

Figure 23 also indicates that the average quantum of transactions in the CCR fell from $10,398,333 in January to $8,572,000 in June. This is probably due to the low number of transactions making the average quantum more sensitive to Good Class Bungalow transactions in the market. The increase in PSF from January to June also corroborates with this view as lower quantum properties tend to have a higher PSF.

The Landed segment in 1H2024 seems to have grown by volume. Importantly, the OCR appears to remain a strong base for Landed properties, showing more interest and perhaps new entrants into this market sub-segment as upgraders. The data also points to more interest in larger landed properties in the OCR and RCR.

In Table 1 below, we compare the RCR and CCR premiums across the different sub-segments that we have covered in the micro trends analysis. Importantly, we notice a decline in RCR premium over the OCR from January to June across almost every segment. This shows that the disparity gap between the RCR and OCR has closed to some extent and signals a strong OCR price and volume growth in 1H2024. This trend appears to be persistent from the above analysis.

The CCR premium over the RCR has increased for new condo launches and landed properties but decreased for all other sub-segments. This indicates that the CCR interest may be concentrated around the particular niches of new launch condos and landed properties.

Events and Trends in 2H2024

The first half of 2024 has seen the market normalising to the peaking interest rates and has seen favourable signs in policy and land sales that indicate cautiously optimistic sentiment in the residential real estate market. The micro trends indicate steady price and volume growth in the OCR across all residential real estate segments, which are a trademark of a healthy market. 

Whilst the RCR premium is declining, demand and interest is still strong as consumers can look to more options from TOP projects in the RCR for condominiums. The specific sub-segments for the new launch condos and landed properties appear to have benefited the most in terms of CCR premium.

The residential real estate market appears to be stable and waiting for a catalyst for more volume to enter the market. With consumer sentiment increasing steadily, there is a good basis on both macro and micro terms to support a stronger 2H2024 performance for residential properties.

Catalysts for such movement in the market may be potential interest rate cuts coming from growing Fed confidence in achieving disinflation, and potentially mildly favourable real estate policy that may be announced around National Day or General Elections targeting specific market niches. Such catalysts may see residential real estate markets respond bullishly, and take a few quarters to reflect increases in volume and price. This would be in confluence with an increase in supply coming from TOP condominium projects across the country, feeding consumers with better choice units for their desired home.

The GLS for 2H2024 will also indicate longer term sentiment from developers in the coming years. Should the upcoming GLS in 2H2024 continue to attract lower bids, we may see disinflationary effects in the coming years for residential properties, which may improve the competitiveness of new condo launches in the future. On the contrary, competitive bidding may support higher prices for future new launches.

Key Takeaways for Homeowners and Buyers

The post 1H2024 PLB Biannual Real Estate Report appeared first on Insights by PropertyLimBrothers.

In the fast-paced landscape of fashion and real estate, an intriguing concept presents itself as a potential barometer of economic health: The Hemline Index. This theory posits that the length of women’s skirts is correlated to the current state of the economy. With the recent news of the US stock market facing downturns resulting from a jobs report that sparked fears of a recession, the market’s direction has been causing uncertainties among investors.  

While historically, there may have been a connection between the two factors, how does this seemingly superficial trend tie into Singapore’s property market? As the world grapples with unprecedented events resulting in economic downturns and shifting consumer behaviours, we can look at concepts like the hemline index and determine how it might reflect consumer sentiments, and as a result, influence property values.

In this article, we are delving into the hemline index, its historical context, and its relevance to Singapore’s real estate landscape at present. We will also examine how current global events shape the property market and their broader implications.    

What is the Hemline Index?

The hemline index refers to an economic theory that suggests a correlation between the length of women’s skirts and the state of the economy. According to the hemline index or indicator, a fashion trend of shorter hemlines indicates economic confidence and boom, whereas longer hemlines signal uncertainty and economic downturns. When stock prices are rising, skirt hemlines rise with them, and vice versa.  

The idea that financial markets rise and fall in correlation with the length of skirts stems from the belief that in times of economic growth and financial stability, consumers are more willing to spend on fashion trends – including trendier, shorter skirts or dresses. On the contrary, during economically challenging times, longer hemlines reflect modesty in terms of spending.  

A Brief History of The Hemline Index

The Hemline Index, Economic Indicators and the Property Market

The Hemline Index offers a unique perspective on the economic conditions of a market, as well as consumer behaviour throughout the different conditions. Fashion choices reflect psychological responses to economic conditions. As such, it may be particularly relevant when analysing Singapore’s property market since economic conditions can directly impact consumer sentiment towards purchasing property. 

By examining the relationship between hemline trends and various economic factors, we can gain insights into how societal attitudes impact the demand for real estate.

Spending Power and Consumer Confidence

If shorter hemlines are an indication of consumers’ confidence and a higher spending power in a healthy economy, then this may also have a positive impact on property investments. When buyers feel secure with their finances, they will be more likely to either plan on investing or invest in real estate. This could be through purchasing new homes or upgrading from public to private housing. Conversely, in a period of economic downturns where historically hemlines would get longer, buyers may take a more cautious approach when investing in real estate. They may need to create a smaller budget or move the timeline of their purchase, thus lowering demand for property.      

Inflation and Recessions

Economic challenges such as the 2008 global financial crisis or the COVID-19 pandemic would typically indicate longer hemlines. In Singapore’s property market, this could lead to a slowdown in property transactions or perhaps create a shift towards more affordable housing options. Additionally, developers may also adjust their strategies and focus on projects that offer value and cater to consumer references during a downturn. 

Economic Growth and Employment Rates

Another factor that is impacted by economic boons and downturns is the employment rate. Strong employment rates during a period of economic growth are correlated with increasing disposable income, which is one of the various factors that play into driving up the demand for properties as well. Consumers may be more likely to invest in real estate when employment is stable, leading to increased transactions in the property market. 

Global Events and Shifts In Culture

Major global events can disrupt fashion and economic trends, impacting Singapore’s property market. For instance, during the pandemic in 2020, there was a shift towards more modest fashion as people prioritised comfort and practicality. 

While we may have not seen skirt hemlines specifically getting longer, we did see a rise in clothes that were better suited for casual wear or for wearing at home – like athleisure. This reflected broader economic conditions on a global scale which were causing uncertainties in the property market, with property prices both increasing and decreasing throughout the pandemic.        

Singapore’s Property Market Now

As of 2024, Singapore’s property market has been experiencing a mix of resilience and challenges that have been shaped by various economic factors and shifting consumer preferences. 

Price Trends

While it was a slower increase compared to the last three years, private housing prices saw an increase of 1.4% in the first quarter of 2024. By the second quarter, prices started to reflect cooling measures that were implemented last year as there was a slowdown in price increase. Moreover, the price momentum has continued to moderate in the second quarter with a 0.9% rise in prices. This can also be an indication of buyers becoming more cautious in response to rising interest rates and economic uncertainties. 

Government Policies: Cooling Measures

The government has implemented various cooling measures to manage price growth and ensure housing affordability for citizens over the years. The last cooling measures were implemented in April 2023 with the aim to stabilise the property market. These included an increase in Additional Buyer’s Stamp Duty (ABSD) for residential properties, with ABSD rates for foreigners doubling to 60%. 

The purpose of these cooling measures was to curb speculative buying and ensure housing affordability as prices increased. Prior to the measures, the property market experienced a significant surge in prices, which raised concerns about the affordability of housing for the average Singaporean – particularly for first-time homebuyers. 

Additionally, with global interest rates rising and the need for economic stability, cooling measures were implemented to moderate excessive demand and foster a more sustainable property market while protecting the interests of buyers. 

Property Price Index Vs Stock Market 

In light of the recent stock market volatility, we can understand the relationship between the recession price index and the performance of Singapore’s property market for any potential developments in the future. Fluctuations in the stock market can have a significant impact on buyer sentiment and investment decisions made in real estate. As the stock market faced declines recently, fears of an economic slowdown and uncertainties for the property market may have heightened and brought up a cautious sentiment that could potentially be reflected in slower transactions in the near future. 

Monitoring these indicators can provide valuable insights into market trends and consumer behaviour, and allow you to navigate the complexities of the property market. For instance, we can take a look at how downturns in history have impacted property price indices to better grasp how events play out during economic downturns for Singapore’s property market.  

Significant economic downturns where stock markets are also down indicate potential drawdowns in residential property prices. For instance, the Dot-Com Bubble (2000-2002), the Great financial Crisis (2007-2009), and the Covid-19 pandemic (2020) have all been periods of economic downturn that have impacted Singapore’s property market. Let’s take a look at the following charts highlighting this.

Evidently, there is a correlation between stock prices declining and property prices facing drawdowns during periods of recession. During the Dot-com Bubble and Great Financial Crisis, prices first faced drawdowns and then rebounds in Singapore and the US’s stock market. These drawdowns were also reflected in property price indices in Singapore. Whereas Singapore’s property market experienced no change from February to April 2020 during the recession resulting from Covid-19.    

Is There a Connection Between The Hemline Index and Singapore’s Property Market?

The correlation between the Hemline Index and Singapore’s property market is complex yet intriguing. The Hemline Index and its application are limited today due to various factors, especially the diversity and fluidity in both fashion and lifestyle choices. Despite its limitations, a concept like the Hemline Index may still offer valuable insights into Singapore’s property market by directly reflecting consumer confidence and spending, cultural and societal shifts, and responses to global events.   

While the connection between the Hemline Index and Singapore’s property at present may not be direct, the interplay between fashion trends and economic indicators can offer valuable insights into consumer behaviour and market dynamics.  

Get In Touch With Us 

Curious about how market trends can impact your property’s pricing and exit strategy? If you’re looking for a second opinion or guidance regarding your property decisions, feel free to reach out to our team of experienced consultants here. We are more than happy to help you at every stage of your property journey. 

Until the next one, see you. 

The post Is Fashion Predicting Property Trends? The Impact of The Hemline Index on Singapore Real Estate appeared first on Insights by PropertyLimBrothers.

In February 2024, the government announced that it will double the supply of flats available under the Parenthood Provisional Housing Scheme (PPHS) to meet increasing demand. The government also introduced a one-year PPHS voucher during the Budget 2024 speech, aiming to help eligible Singaporeans defray rental expenses in the open market. HDB later revealed that the quantum for the voucher is set at $300 per month for one year.

As a recently married Singaporean who has been unsuccessful in applying for a PPHS flat (5 times and counting), I aim to shed some light about the considerations, the process, and the challenges that current applicants are facing.

Understanding The Current PPHS Framework

The Parenthood Provisional Housing Scheme (PPHS) allows married couples waiting for the completion of their Build-To-Order (BTO) flats to rent an interim flat directly from the Housing & Development Board (HDB). The scheme aims to provide eligible households with interim housing to meet their urgent needs, with a higher priority given to expectant married couples and married couples with children under 18 years old. Eligibility conditions, such as a combined income ceiling of $7,000 at the time of the BTO application, applies. The allocation of PPHS flats follows a similar ballot system as the BTO scheme, including the $10 admin fee per application. 

Applicants who wish to co-share a 3-room or larger PPHS flat with another eligible household who has a similar waiting time for their BTO flat can contact HDB to make the request. If you are willing to co-share, you will enjoy a higher priority in the ballot, and if either households are expectant married couples or married couples with children under 18 years old, your applications will enjoy a further priority.

Application for PPHS flats opens every two months, on even months such as February, April, June, and so on. When the window opens on the first day of even months, you will be able to look at the list of rental flats available for that particular application window. Typically, around 200 of such units will be available for each application window. You will have around two weeks to submit your application on the HDB portal, with the window closing on the 14th of the month at 11:59pm. Results of the application will typically be released within the two weeks of the following month.

PPHS rental rates are significantly more affordable compared to the open market, where whole flat rental rates for a 3-room HDB flat can go up to $3,500. The exact rates depend on the flat type and location. Families can stay in the PPHS flat until the completion of their BTO flats or for a maximum of three years, whichever is earlier. Extension of stay may be granted on a case-by-case basis.

This structure provides a balance between offering temporary housing support and encouraging couples to move into their permanent homes once they are ready. The affordable rental rates also help young families manage their finances more effectively, allowing them to save for their future home while enjoying a private and comfortable living space.

The flats available for PPHS also come with a site expiry, and you are advised to apply only if there are PPHS flats offered with a site expiry that is at least 4 months after the estimated completion date of your BTO flat. Which is what you should be doing. You wouldn’t want to have the PPHS site expire before your BTO flat is ready (after renovations) and end up having to look for interim housing arrangements again.

Challenges Faced By Current Applicants

Limited Supply of Units

One of the most significant challenges faced by current applicants is the limited supply of PPHS units. The demand for these temporary housing units often exceeds the available supply, resulting in long waiting periods for many, myself included. As mentioned, only around 200 units are made available in each application window, and application rates typically range between 2 to 4 – which means that there are 2 to 4 households vying for each available unit.

In the last application window, there were 578 applications and only 180 units available, translating to an application rate of 3.21. 

With that said, HDB has been steadily increasing the supply of such flats, and application rates have fallen from over 20 times in 2021 to about 2-4 in 2024.

No Direct Allocation of Flats Under PPHS

In our parents’ era, whenever they run into difficulties that they cannot resolve on their own, they will seek help from their Member of Parliaments (MPs). In true boomer fashion, my parents asked me to approach an MP when they learnt that we had trouble securing a flat (BTO back then, PPHS interim rental flat now). 

Well, I did just that – I emailed all three MPs in my constituency, and one of them replied almost immediately. I was asked to go down to one of the “Meet the People” sessions, and I explained my situation to the MP in person. The MP typed in his laptop the whole time while listening and asking questions, and ended the session by sending an appeal letter to HDB. A few weeks later, I received a reply from HDB and it was as you’d imagine. HDB said that while they were empathetic about my circumstances, they were unable to directly allocate a PPHS flat to me without going through the ballot process. Ultimately, it boils down to the luck of the draw. 

While HDB does evaluate appeals on a case-by-case basis, the only leeways for the application of PPHS flats are typically if there are changes in your financial situation (e.g income ceiling above $7k at the time of BTO application but below $7k now) or if you’re pregnant and want to apply for a higher priority in the ballot.

Recent Enhancements to PPHS

The state of the scheme is not as gloomy as I made it out to be – many families have benefited from PPHS over the years, especially married couples with kids waiting for the completion of their BTO flats. By way of crowdsourcing, it is estimated that 70% of such families get a PPHS flat on the first try.

Furthermore, the government recently announced some enhancements to the scheme.

Increasing Rental Flat Supply

Earlier this year, HDB announced that it will double the supply of PPHS flats from 2,000 units currently to 4,000 by 2025, with the bulk of these additional flats coming from the vacated SERS site at Tanglin Halt. These flats are slated to be demolished eventually, but since the blocks are not immediately needed for redevelopment, HDB has decided to let out these flats to meet the demand for PPHS flats.

Around 2,000 vacated flats across 17 blocks in Tanglin Halt will be spruced up before being progressively rented out to families, from the second half of 2025. This will likely have a significant impact, given that the supply is essentially doubled.

PPHS (Open Market) Voucher

The government also introduced a new subsidy scheme designed to help eligible families rent in the open market rather than waiting for a PPHS flat. This comes in the form of $300 monthly vouchers for a year to help defray rental expenses. While this is a step in the right direction, these vouchers may not do much for those currently applying for a PPHS flat. There are two main reasons why.

Firstly, the rental rates of 2-room PPHS flats range from $400 to $550 per month while 3-room PPHS flats go for $600 to $900 per month. In the open market, the average monthly rent balloons to $2,350 and $2,700 respectively. This means that the subsidy will cover less than 15% of the median rental cost of an HDB flat. Even with the vouchers, families are still required to bear a substantial cost – keep in mind that eligible PPHS families have a combined income of $7,000 or below (at the time of BTO application). And this cost will put a significant dent in any plans to save up for their remaining 15% BTO downpayment when the key collection comes along. An argument can be made that these families can go for room rentals instead of whole unit rentals, which could be tough for those who need more space. But even so, the vouchers will only cover less than 25% of the median room rental cost of an HDB flat.

Secondly, the scheme will only run for a year from July 2024 to June 2025. This means that only those who applied in July 2024 will fully benefit from the scheme. While the scheme may have been designed to help families tide until the Tanglin Halt rental flats are ready to be put up for application, having to relocate multiple times can be emotionally and logistically taxing.

Closing Thoughts

Over the years, the PPHS has made significant strides in supporting young couples and families in need of temporary housing while waiting for the completion of their BTO flats. Current applicants who are struggling to secure temporary housing may find some respite in knowing that more PPHS flats will be available next year, but we will have to hang tight for now until the new supply is ready. 

If you are in a similar situation and would like to explore rental options in the open market instead, do reach out to us here. Our experienced consultants will be more than happy to assist you in your search for a suitable property.

See you in the next one!

The post What You Need To Know Before Applying For HDB’s Parenthood Provisional Housing Scheme (PPHS) appeared first on Insights by PropertyLimBrothers.

As Singapore continues to evolve into a bustling metropolitan city, space constraints have been and continue to be a challenge for many residents. With increasing demand for efficient use of space, homeowners often face issues with clutter and stress. By decluttering and employing space-maximising strategies, innovative storage solutions and smart designs, you can transform a cramped space into a more inviting and organised home.

In this article, we are going to explore tips and tricks to help you declutter your home and make the most of every square foot. 

Understanding Your Space

Before starting any process to declutter and reorganise your living space, it is key to thoroughly understand your space and identify the factors contributing to any space constraints and clutter. You can start by assessing the layout of your home and taking measurements to create a foundation for the decluttering process.

Assessing Your Layout

Assess the layout of your home by taking the time to walk through the various rooms and common areas. This will help you identify how you utilise the space in the different areas of your living space. While doing so, take note of the traffic flow – observe how all of the residents of your living space move through the space, and where most personal items, furniture and decor are placed. Take note of whether walking pathways and entrances have any furniture or personal items blocking them, and ensure that these items are moved for easier navigation throughout the flat.   

Determining areas that serve specific functions like dining, working, and lounging and are used by all of the residents can further prevent clutter that may be caused by an overlap. This can especially be the case if there are any personal items or any heavy furniture that is harder to move or that takes up a large amount of space in the living area. 

Additionally, identifying underutilised areas can create opportunities for extra storage or dedicated spaces for relaxation or work. For instance, you could find an extra corner in your living space and create a reading nook, a space for getting in a few hours of productive work, or you could add a shelf for extra storage space in a common area of your home.

Measuring Your Space

Another important factor to consider when you start the decluttering process is the measurements of your space. Measuring the dimensions of each of the rooms and common areas of your living space can guide your furniture and decor choices. Moreover, you should also measure existing furniture to determine what fits your space the best – larger furniture may make a smaller room appear more cluttered, whereas smaller pieces may not fit in larger spaces, making them look out of place and messy. 

Making Smart Furniture Choices

The second tip for decluttering your living environment and optimising space is making smart furniture choices by prioritising multifunctionality, quality, and scale.

Scaling Proportions

Expanding on our point from the first tip, choosing furniture and decor that is the right size for your living space is essential. Opting for furniture that fits the scale of your rooms will ensure that your living space does not appear to be more cramped. Choosing appropriately sized pieces over larger and more bulky pieces can help you create a space that is more open, airy and easy to navigate. For smaller apartments, low-profile sofas and chairs can make common areas appear to be more spacious and inviting.

Multipurpose and Multifunctional Furniture

When space is limited and shared amongst several residents, investing in multipurpose or multifunctional furniture can be a game-changer in reducing clutter and creating additional storage space. Sofa beds are a good option that provide a comfortable seating arrangement during the day, and a sleeping space at night for guests. Other multipurpose furniture pieces include extendable dining tables that can be expanded for gatherings and remain compact for everyday use, and storage ottomans that function as footrests, extra seating or step stools.

Making Quality A Priority

While this may not directly contribute to decreasing clutter, it is good to prioritise quality when choosing furniture for your shared living space. High-quality pieces can withstand the wear and tear that comes with daily use, especially when you are sharing your space with family members, better than cheaper alternatives.

Getting Creative With Storage Solutions

Employing creative storage strategies like using vertical space, maximising space with hidden storage, and scheduling in regular sessions for decluttering can ensure you create and maintain a well-organised home.

Vertical Space

Vertical spaces are a great way to maximise space. Using furniture like wall-mounted shelves and hanging racks can keep items organised without taking up any floor space. Hooks can also be used for miscellaneous items like bags, jackets, and kitchen utensils, helping to reduce clutter and keep personal items easily accessible.

Hidden Storage Solutions

Another creative storage solution is to use hidden storage that keeps your space tidy. You can use under-bed storage pieces like bins and drawers that fit under your bed to store items such as any off-season clothing you have, shoes, and extra towels and linens. Having tables and chairs that have hidden compartments that open for storage are also ideal for storing any extra miscellaneous items without taking up too much space.  

Regular Decluttering of Space

Aside from finding storage solutions, maintaining an organised and clutter-free space will also require regular and ongoing effort. Establishing a set of rules for yourself along with a schedule to clean out your space will ensure that your home does not accumulate clutter over time. This could be done seasonally or twice a year, allowing you to assess what items you need and what you can either sell, donate, or discard. Adopting a minimalist approach or a “One In, One Out” rule when decluttering are practices that can help you control clutter and manage your space better. 

Personal Colour and Design Choices

In addition to using tips that help you maximise space, choosing the right colours and design elements for your home significantly influence how spacious your home looks and feels. 

Light Colours, Mirrors, and Natural Light

Opt for light and neutral colours for  your furniture and walls. Lighter and more neutral shades can make rooms appear larger and more open. Moreover, incorporating mirrors strategically can create the illusion of more space as they enhance natural light present in your living space and make it appear brighter.

Home Design Theme

To add to the natural and cohesive flow in your apartment after you have decluttered, it is key to stick to a theme. You can do this by sticking to a consistent colour palette across rooms. Because you may want to add personal touches to each of the bedrooms in your home, you can have a consistent theme throughout the common areas of your home. Furthermore, you can choose home decor that aligns with the overall theme – whether that is minimalist, contemporary or modern. The cohesion and consistency throughout the common areas of your home will enhance the aesthetic appeal and make the space feel intentional.

Making The Most of Space in Each Room

Each room and common area of your home can be decorated and tailored to maximise space and enhance functionality through different room-specific tips.

Kitchen and Living Room

Installing shelves, pot racks, and magnetic strips that hold your utensils, pots and pans can create a more organised setting in your kitchen. This will ensure you don’t have them on the countertops, where you need space to prepare and cook your meals. Additionally, limit keeping small appliances on countertops when they are not in use. Instead, these can be stored in cupboards either above or below kitchen counters. 

As the living room is the heart of a home, it is essential to not only maximise your space and functionality, but also enhance the aesthetic appeal of this common area. You can start by arranging furniture in either a U-shaped or L-shaped layout to foster interaction and keep pathways clear for walking. This also creates space for a table in the middle of the sitting area. Along with this, choosing a few statement decor pieces for the table can reflect your overall design theme without adding too much clutter. 

Moreover, using smaller area rugs can help separate space in the common areas of your home visually, especially for flats with an open kitchen concept that is directly connected to the living room.

Bedroom and Bathroom

Space in your bedroom can be maximised through the use of organisers, drawer dividers and small storage boxes in your closet. Using a bed frame that comes with built-in storage can also allow for less clutter in the bedroom. In order to keep your bedroom open, airy and spacious, you can also use bedside tables and dressers that are more compact and come with drawers. 

If your bathroom is a shared one, making the most out of the under-sink storage and minimalistic decor can ensure that the room stays as clean and clutter free as possible without affecting accessibility. 

Communicating Effectively

Prioritising effective communication throughout and after the process of decluttering your home is crucial. By doing so, you will be able to create a supportive atmosphere with clear guidelines, regular check-ins, and collaborative efforts in maintaining an organised living space free of clutter.

When decluttering a home with family members, it’s important to discuss everyone’s vision for the living space and consider all ideas to ensure that everyone feels comfortable and respected. Setting boundaries and agreeing on personal spaces will help maintain privacy and prevent conflicts. Establishing a cleaning schedule with clear responsibilities can ensure that everyone contributes to keeping the home clutter-free. Additionally, using a family group chat to coordinate routines, share ideas, and discuss plans can help communicate needs and guidelines effectively.

Closing Thoughts

Living in a beautifully curated space can allow for comfort, style and optimal space. By applying tips such as assessing your layout and choosing the right furniture, to fine tuning your design and decor choices, you can maximise all of the space in your home and create a clutter-free living environment. Moreover, maintaining effective communication about any concerns and considerations for your living space throughout the process can further enhance your living environment and foster a harmonious home. 

Get in Touch With Us

Are you on a search for the ideal living space? Reach out to us here to explore your options in Singapore’s property market. Our team of seasoned consultants are more than happy to assist you on your property journey. 

See you on the next one!

The post Decluttering 101: Space-saving Hacks to Maximise Every Square Foot in Your Home appeared first on Insights by PropertyLimBrothers.

When you venture into Singapore’s property market, terms like leasehold and freehold can leave you puzzled – especially since these tenure types can have a significant impact on your investment strategies and long-term property journey. With a mix of leasehold and freehold tenures for all private property types in the market, potential homebuyers are presented with a set of benefits and challenges that require distinct strategies.  

In this article, we are going to break down all of the differences between a leasehold and a freehold property in Singapore. We will go over the key differences between each tenure and highlight factors like ownership duration, value appreciation, resale potential, market demand for leasehold and freehold properties, and the financing options for each tenure type.

Understanding Tenure Types

All residential properties in Singapore are available in two different tenure types: Leasehold and Freehold. Let’s go over the defining characteristics of both.

Leasehold Properties

A leasehold property is characterised by ownership that lasts for a predetermined period. In Singapore, the majority of leasehold properties have a tenure of 99 years. Buyers of leasehold properties possess the right to occupy and use the property for the duration of the lease, however, they do not own the land on which the property is built. As such, the ownership of a leasehold property reverts to the landowner, which is the Singapore Land Authority (SLA), after the lease expires unless it is extended with extra costs.Moreover, owners of leasehold properties are permitted to sell or transfer their lease but must ensure that they comply with the terms and conditions outlined in their lease agreement. They are also responsible for the upkeep and maintenance of the property and have to adhere to Singapore’s regulations around leasehold properties.   

Freehold Properties

Freehold properties are characterised by indefinite ownership of both the property and the land it occupies. Owners of freehold properties have perpetual rights with no time limitations on their ownership status. This tenure type may offer owners greater security and a higher potential for long-term investments. 

Owners of a freehold property in Singapore have full rights to sell, lease or modify their property without many of the constraints that may be found in leasehold properties. These could include subletting restrictions, loan restrictions, transfer conditions, and constraints caused by the remaining lease duration for leasehold property owners. It is essential to note that freehold property owners are still required to comply with the necessary regulations and are responsible for the maintenance and upkeep of their property in compliance with Singapore laws and regulations. 

Key Differences Between Leasehold and Freehold Properties in Singapore

Both leasehold and freehold properties have distinct differences that impact ownership experience, market dynamics and long-term investment plans. Whether you intend to own a property you can pass down through generations or want to purchase property you can put on the resale market after a decade, it is essential to understand the varying factors that will affect your property journey.

Ownership Duration

The first key factor that differentiates both tenure types is the ownership duration of each. 

For leasehold properties, the ownership period in Singapore is typically limited to 99 years. Once this lease expires, the property’s ownership status reverts to the landowner – the Singapore Land Authority (SLA). Additionally, it is essential for property owners to note that when they purchase a leasehold property, the lease reflects the remaining duration at the time of purchase rather than the full 99-year time period. For instance, if a leasehold property originally has a 99-year tenure but has been occupied for 20 years, the new buyer will only have 79 years left on the lease after purchase. 

The ownership duration for freehold properties is indefinite, allowing property owners to retain their property with no time limit on a lease. In a city like Singapore, with significant space constraints, the permanence that comes with owning a freehold property provides property owners with a higher sense of stability and security in the long run.

Value Appreciation

As the lease term decreases, potential buyers may view the property as less desirable. This can lead to a reduced demand for the property and slower price increases. Moreover, the perception of leasehold properties can vary throughout their lease duration. Older properties that are deep into their 99-year lease term may also experience a slower appreciation or even depreciation of value due to the Bala’s Curve Effect, especially in a competitive market with newer developments.

Freehold properties, on the other hand, may experience a more consistent rate of appreciation over time due to their appeal to buyers and investors. The permanent nature of freehold properties may make these properties a safer and more attractive option for long-term investments. 

In some cases, leasehold properties can appreciate more rapidly than their freehold counterparts. Factors such as new condominium developments or properties in prime locations can drive appreciation in the area. Leasehold properties situated in central or desirable areas with modern amenities may experience significant appreciation early on, potentially outperforming older freehold properties in the same locale.

Resale and Market Demand

While leasehold and freehold properties can do well in the property market for different reasons, leasehold properties can face challenges in the resale market particularly when the balance lease reduces. Properties with less than 60 to 70 years remaining on the lease may deter potential buyers due to concerns about lease decay. Aside from the remaining time of a lease, leasehold properties can do well because of other factors like affordability, rental demand, and location. 

Leasehold properties that are in specific locations popular amongst students or expats might do well in the rental market. Properties located next to schools and a wide range of amenities may be an attractive option for families with children. Additionally, leasehold properties are typically priced lower compared to their freehold counterparts, making them a good option for homebuyers.

Freehold properties may command higher prices in the resale market as they don’t experience lease decay. Buyers may perceive them as more desirable as a result, and may still find freehold properties to be an appealing choice in the long run even during economic fluctuations and challenging market conditions. However, a factor that can impact the market demand for freehold properties is the location and age of these developments. For older freehold properties, maintenance of facilities becomes a concern that may influence buying decisions. Freehold properties, just like their leasehold counterparts, may see higher demand and better performance in prime areas – especially if they are newer properties. 

Financing

Financing for leasehold properties can be more restrictive in comparison to financing freehold properties. This is especially the case for properties with shorter balance leases. In this scenario, lenders may impose stricter conditions or higher interest rates resulting from the perceived risks associated with a shorter lease. Banks are also a lot more hesitant with offering the Loan-to-Value (LTV) ratio of 75% for leasehold properties with less time remaining on the lease as they consider the depreciating value of these properties. Additionally, buyers are not able to utilise their CPF to fund their property purchase if the remaining lease is less than 30 years. 

On the other hand, there are no further restrictions on the LTV ratio or CPF usage for freehold properties since there is no lease period.

Which is a Better Option for You?

When considering whether a leasehold or freehold property in Singapore is the better choice, several factors must be taken into consideration. 

For buyers that are seeking long-term investment properties with a perpetual runway for appreciation, or legacy planning, freehold properties may be the more advantageous choice. 

Homebuyers and investors looking to enjoy the flexibility and appreciate market volatility can consider leasehold properties, given that they may not hold the property for more than a few years.

The better option between a leasehold and a freehold property depends on your individual circumstances and your long-term financial goals as both tenure types offer several benefits and challenges that must be taken into consideration when purchasing a property. 

Closing Thoughts

Both leasehold and freehold properties have distinct characteristics, benefits and challenges that set them apart from one another in Singapore’s property market. Ultimately, the better option for buyers hinges on individual preferences, needs, and financial goals. Having an understanding of the nuances of each tenure type and of their own needs can empower buyers to choose an option that best fits their unique circumstances.

Get In Touch With Us

Are you currently in the market for a property? Are you deciding between purchasing a leasehold or a freehold property? Feel free to reach out to our team of experienced real estate consultants for any questions or concerns you have on your property journey – whether you are looking to buy, sell, or rent, we are more than happy to assist you. 

Until the next one, see you!

The post Leasehold or Freehold? Decoding the Differences Between Tenure Types appeared first on Insights by PropertyLimBrothers.

For many years, technology has provided numerous benefits and opportunities, enhancing convenience and progress for humanity. In today’s world, where climate change threatens our very existence, the demand for clean and renewable energy sources for our daily activities and business operations has become increasingly urgent. This makes the reliance on technology powered by clean and renewable energy all the more critical.

The rise of Artificial Intelligence (AI) has significantly enhanced and accelerated our daily conveniences and reliance on technology. Its impact is widespread, touching various business sectors. The push for eco-friendly business methods, along with the need for quicker, more streamlined processes, has now reached the real estate industry.

PropTech, a blend of ‘Property’ and ‘Technology,’ exemplifies this trend. It has been around longer than many realise. Remember when online real estate portals first introduced features to showcase images and videos of property listings? That innovation is part of the broader PropTech landscape. In this era of rapid technological transformation, especially within the evolving real estate industry, how can further advancements in PropTech benefit consumers and real estate agencies like PropertyLimBrothers?

In this article, we will explore how advancements in PropTech are currently benefiting all stakeholders in the real estate industry. We will also discuss and highlight how PropertyLimBrothers is leading the way with our embrace of PropTech in our operations.

Embracing PropTech: Revolutionising Real Estate in the Modern Era

Just as technology, AI, and digital innovations are integrated into various business industries, their incorporation into the real estate sector is equally diverse. PropTech streamlines every aspect of real estate transactions, from listing properties for public viewing to analysing and comparing properties, projecting investment opportunities, budgeting, and managing the details of sale and purchase processes. With ongoing advancements in technology, the future of real estate looks exciting and transformative. In this section, we will highlight just a few of the many ways PropTech is currently benefiting stakeholders and will continue to do so in the future.

1. Enhanced Property Listings

PropTech has revolutionised how properties are listed online. Advanced digital platforms now offer high-resolution images, 360-degree virtual tours, and even augmented reality experiences. These features provide potential buyers with a comprehensive view of properties from the comfort of their homes, making the decision-making process more informed and efficient.

2. Data-Driven Insights

With the integration of AI and big data analytics, PropTech enables real estate professionals to gather and analyse vast amounts of data. This allows for accurate market predictions, trend analysis, and personalised recommendations. Investors and buyers can now make more informed decisions based on reliable data.

3. Virtual Reality (VR) and Augmented Reality (AR)

Virtual and augmented reality technologies enable potential buyers to tour properties remotely, providing a lifelike experience without the need for physical visits. This prevents wasted time and effort for sellers, real estate consultants, and buyers. By offering an immersive virtual tour, these technologies help filter out uninterested buyers, ensuring that only genuinely interested parties proceed with making offers.

4. Smart Property Management

PropTech also extends to property management with the advent of smart building technologies. These include Internet of Things (IoT) devices for energy management, predictive maintenance, and enhanced security systems. Property managers can now monitor and manage properties more efficiently, leading to cost savings and improved tenant satisfaction.

5. Improved Customer Experience

Customer relationship management (CRM) systems tailored for the real estate industry have greatly improved how agents interact with clients. 

Automated follow-ups, personalised marketing campaigns, and AI-driven chatbots ensure that clients receive timely and relevant information, enhancing their overall experience.

6. Sustainable Building Practices

In line with Singapore’s goal of becoming a smart city, PropTech supports sustainability by integrating green building technologies and practices. These include smart energy systems, eco-friendly construction materials, and efficient waste management. Together, these innovations lead to more sustainable and environmentally-friendly real estate developments.

PropTech in PropertyLimBrothers

At PropertyLimBrothers, we use a variety of PropTech tools, including some proprietary ones, along with comprehensive analytical methods in our daily consultations. In this section, we will introduce you to all the PropTech tools currently in our arsenal.

AlanaChat

Available 24/7, AlanaChat is our in-house AI-powered chatbot that delivers comprehensive real-time responses to all online queries. For any real estate-related questions, AlanaChat provides precise and accurate answers.

Alana

Alana is our purpose-built Customer Relationship Management (CRM) system designed to seamlessly onboard clients into our network. It streamlines the entire workflow, from lead generation to appointment scheduling, document submission, media shoot coordination, listing launch, and finalising property transactions.

Alana enhances collaboration by allowing all stakeholders to access and update the same information. Our Real Estate Consultants can easily track leads, transactions, expenses, and client progress, leveraging support from our dedicated team. Alana embodies our commitment to delivering maximum value to our clients.

PLB Trend Research Tool

As its name suggests, the PLB Trend Research Tool is designed to uncover patterns in the local real estate market. It allows users to compare variables such as pricing trends and sales volumes of all types of residential properties, presented efficiently in graphical formats. This powerful tool offers refined analyses, filtering data by geographical locations in Singapore and providing nearly 30 years of historical data. It even accounts for notable world events and cooling measures. The PLB Trend Research Tool is accessible through our Nucleus App. 

PLB Market Updater

For anyone seeking a clearer understanding of the real estate market, the PLB Market Updater is the go-to tool. Select a property type—whether it’s an HDB flat or a landed home—to access pricing and sales volume data from the past 24 months. You can filter the data by district and rank it according to volume or average PSF pricing. If you have a specific residential project in mind, you can look that up too.

The PLB Market Updater makes it easy to see how different property types or specific estates have been performing. This gives users a solid baseline to gauge factors such as the popularity of a home type in a particular location or the reasonableness and competitiveness of its asking price. You can access this tool through our Nucleus App.

PLB Journey Maker

Purchasing your first home is just the beginning of a lifelong property ownership journey, which can feel overwhelming for new homeowners. That’s why we developed the PLB Journey Maker—to assist in financial planning and make this journey smoother.

By selecting from a range of variables, including current income and available CPF funding, the PLB Journey Maker helps map out a complete financial plan tailored to your risk appetite. While the tool provides hypothetical scenarios, it offers a solid estimate of the capital needed throughout various property ownership cycles and potential returns on investment by retirement age.

The PLB Journey Maker is most effective when used alongside a consultation with our expert advisors, who can provide a specialised analysis of your property planning journey.

PLB Home Report Tool & PLB Property Analysis

PLB Home Report Tool

The PLB Home Report Tool covers all developments in Singapore, providing comprehensive information on each one. Simply select the development you’re interested in, and the tool generates a detailed report, including past listing prices, proximity to schools, and nearby amenities.

PLB Property Analysis

Currently tailored for condominium projects, the PLB Property Analysis tool offers extensive analyses of each project. Access floor plans, detailed evaluations of estate facilities, and records of past transactions.

These tools empower consumers with the information needed to make well-informed real estate decisions.

PLB AI Renovation 

PLB AI Renovation takes the viewing experience to the next level. This innovative feature allows users to see what interiors could look like after extensive renovations, offering a glimpse of a home’s true potential. Multiple renovation concepts are available, providing a range of options to explore and consider.

PLB MOAT Analysis

The PLB MOAT Analysis makes choosing a property easier by converting key factors into easy-to-understand metrics that assess a property’s long-term value.

With the MOAT Analysis, we evaluate every condominium and apartment estate in Singapore based on location, rental demand, exit audience, and land size density. You can compare multiple projects on a single chart for a clear visual comparison. Additionally, you can filter analyses by price quantum or price per square foot (PSF) to determine if a property offers good value for money.

Disparity Effect

Developed by our expert Research team and trademarked, our real estate research vault is an invaluable resource filled with bespoke charts and graphs. These tools are essential for our events and speaking engagements, covering a wide range of property metrics, including rental yields, occupancy rates, and macro trends like global stock indices and country-specific inflation rates.

Our curated collection offers users a wealth of information, making it easy to identify relevant trends through an interactive and user-friendly medium.

Nucleus App

Appropriately named to reflect the core of our expertise, the Nucleus App incorporates most of our proprietary Proptech tools. This in-house app provides on-the-go access to 18 different types of calculators, portfolio planning tools, and market updates.

The Nucleus App is an essential companion for our realty consultants, offering a comprehensive suite of tools to answer any real estate questions clients may have and to facilitate financial planning for property transactions.

We believe the Nucleus App benefits everyone interested in the Singapore property market, not just property consultants. That’s why we’ve made it available for anyone to try. Click below to download the app and sign up for an account!

Conclusion 

The integration of PropTech into the real estate industry is not just a trend but a necessity. As technology continues to evolve, its impact on real estate becomes increasingly profound. That is why PropertyLimBrothers is at the forefront in embracing this transformation by leveraging advanced tools like AlanaChat, the PLB Trend Research Tool, the PLB Market Updater, and the PLB Journey Maker to provide insightful, data-driven guidance. Our innovative approaches, including AI Renovation and MOAT Analysis, help clients make informed decisions and maximise their investments. The Nucleus App consolidates these powerful tools into one accessible platform, making the benefits of PropTech available to everyone. 

Embrace the future of real estate with PropertyLimBrothers, where technology and expertise converge to enhance your property journey.

Have any burning questions about the market or our PropTech tools? Contact our experienced real estate consultants here. At PropertyLimBrothers, we are dedicated to helping you achieve your real estate goals with precision and care.

The post The Role of Property Technology (PropTech) in Transforming Real Estate Transactions appeared first on Insights by PropertyLimBrothers.

Real estate is an integral part of our daily lives, affecting us in various ways, from our homes to our workplaces. As a unique asset class, it has the power to impact human relationships and society. Whether you are a novice or a seasoned professional, real estate education can start at any time.

In this article, we will be exploring the avenues available to learn about the industry in Singapore. If you are looking for a list of full-time and part-time opportunities, you are at the right place. Let’s go!

Why Study About Real Estate

A common misconception is that a career in real estate is limited to being a real estate agent. While this is one potential path, there are many other routes to consider. Real estate investment, asset management, urban planning, and valuation are just a few of the diverse roles within the industry. 

Real estate should not be seen as a quick way to get rich but as a sector that supports the entire life cycle of the built environment. Like many other fields, studying real estate offers numerous opportunities and can lead to a rewarding career. Even if you are already in the industry, there is always room for further upskilling.

2024 marks the fifth year of my real estate education journey, which began with studying Real Estate Business at Ngee Ann Polytechnic and continued as a Real Estate Undergraduate at NUS. I vividly remember the moment I became intrigued by real estate during my pre-polytechnic days: a simple walk in my neighbourhood, I wondered why buildings of various heights coexisted in the same area. This curiosity led me to explore concepts like Gross Floor Area (GFA) and delve deeper into the industry.

Types of Learnings Available

1. Professional/Specialist Certificate

There are generally two types of certifications that participants can attain: professional and specialist. While both provide opportunities to upskill, specialist certifications offer more in-depth knowledge and specialised training in a chosen field. For instance, there is a specialist certification for building condition assessments.

For individuals who are not currently in the real estate profession, there are many certifications you can take to gain a better understanding of the industry. For example:

The Real Estate and Construction Academy (RECA) was incorporated in February 2010 to nurture and empower graduates to support the delivery of sustainable environments. As a private education provider, the academy offers skills upgrading & lifelong learning courses, including a certificate in Real Estate Management & Maintenance. Additionally prospective students may explore other certifications such as the Specialist Certificate In Building Condition Assessment, where there is training in standardised inspection protocols, data structures, and nomenclature.

For individuals who are already in the industry and wish to gain further knowledge in real estate investment, you may consider: 

The Professional Certificate in Real Estate Investing equips participants with a deep knowledge and understanding of the real estate market and the capital markets. Participants are recommended to have basic knowledge in real estate investment and investment finance, with proficiency in Microsoft Excel, to fully benefit from this course. To attain the Professional Certificate in Real Estate Investing, students must complete courses such as:

Aside from the above courses, did you know that the Council of Estate Agents (CEA) mandates estate agents to take up Continuous Professional Development (CPD) courses?  It is a result of collaborative efforts between CEA and the real estate agency industry to ensure agents are equipped with the appropriate skills in the ever changing landscape. While there are in-person courses, CEA recognises certain E-learning courses as well.

2. Licence

To become a licensed real estate agent, individuals must complete a RES course with CEA approved course providers which varies in costs and duration. From 3-day crash courses to month-long courses, the trainers will prepare students with materials to prepare for the notoriously difficult RES exam. Certain courses allow the use of SkillsFuture points to offset the cost, which makes this course ideal for those interested in the real estate salesperson route. 

Qualifications needed for the course include being above 21 and having 4 GCE ‘O’ Level passes or equivalent. Check out this previous article to explore whether the realtor career is for you!

Besides becoming a realtor, obtaining a licence opens doors to corporate real estate roles where a valid estate agent licence is often required. This will typically be the case in firms providing brokerage services to their clients such as JLL and CBRE.

3. Diploma

Did you know that Ngee Ann Polytechnic offers the only polytechnic diploma that specialises in real estate? As an alumni, I believe that this diploma formed a solid foundation for my real estate knowledge. Some modules included in the curriculum cover real estate financing and property management.

In recent years, the curriculum has evolved to keep up with the ever growing demand of sustainability and smart technology. In earlier years, graduating students could qualify for an exemption of the RES exam mentioned above and become an estate agent once other requirements were met.

The qualifications needed for the course vary for prospective students depending on their prior experiences. Working adults interested in the course must be Singaporean citizens or permanent residents with at least two years of relevant experience.

Serving as a progression for holders of the RECA Certificate in Real Estate Management & Maintenance, the Diplomas in Real Estate Management and Facilities Management provide up-skilling and higher level multi-disciplinary skills training to take on extended job scope and responsibilities. 

Applicants are expected to have ‘O’/’N’ Levels credits in English and Mathematics or the equivalent together with a RECA Certificate in Real Estate Management & Maintenance.

4. Undergraduate & Postgraduate

Since the launch of the Real Estate Track in 2018, Business Management Finance majors have been offered the opportunity to further specialise within their major. The Real Estate Track allows Finance majors to take six real estate classes in addition to their compulsory modules.

With a focus on real estate investment and finance, students can expect study trips and interactions with Mapletree who is partnering with SMU on this track.

Qualifications needed for the Business Management degree varies for prospective students depending on prior experiences. 

Similar to Ngee Ann Polytechnic’s Diploma in Real Estate Business, NUS provides a further comprehensive business education with a specialisation in real-estate-related fields. Covering a detailed syllabus, students can expect to learn about valuation, estate management and more from the four-year programme.

As of 2024, NUS no longer offers a Bachelor of Science in Real Estate. Instead, it is offered as a major under the restructured Business Administration curriculum.

NUS also offers a two-year postgraduate degree in either Real Estate or Urban Planning. The main difference between both is the target audience for each course. The former serves to provide formal education for real estate professionals who have a non-real estate background. The latter is targeted at those with spatial design or related disciplines.

Students pursuing a Bachelor of Science in Real Estate or a Bachelor of Arts in Architecture may opt to enrol in a Master of Urban Planning and pursue both concurrently.

5. General Real Estate Education

There is a myriad of real estate content out there online, ranging from the editorial article you’re reading right now to interviews to podcasts and webinars. 

PropertyLimBrothers started its podcast channel Nuggets on the Go (NOTG) in 2023 and have been dishing out weekly nuggets of wisdom on real estate, finance, business, entrepreneurship, and investing in Singapore. Speakers from various industries have also been coming on guest episodes to share their experiences and knowledge with our keen audience.

In 2023, PropertyLimBrothers also held 20+ online webinars and live debates designed to educate the public and help them make informed decisions throughout their property journey. These webinars are now available to stream on-demand on the brand new school of real estate, entrepreneurship and creative media, Assembly.

Closing Thoughts

At the end of the day, learning does not stop. Reading articles from editorials and catching podcasts or webinars serve as stepping stones to understanding the industry better.

PropertyLimBrothers is the leading voice in the market for all things Real Estate, backed by data and analyses from our in-house research team. We’re always eager to educate and keep our viewers updated on the latest property news, helping them make informed choices throughout their Real Estate journey.

Whether you are an experienced real estate investor or someone who is just getting started, be sure to sign up for our upcoming PLB webinars to get yourself equipped with the latest insights. 

The post Mastering the Market: Navigating Real Estate Education in Singapore appeared first on Insights by PropertyLimBrothers.

So, you have decided that you are ready to embark on your property ownership journey, and want to start looking for your dream home. Before starting your search for the right property, it is important to take several preliminary steps before you make the purchase – one of them being securing a home loan that will help you narrow down your options on the property search. 

With a variety of loans to choose from, each with its own terms, interest rates, tenures and implications, it is crucial for you to make informed decisions that align with your financial goals and long-term investments.

In this article, we are exploring the different property financing options available for homebuyers in Singapore, providing insights into what each option is and what it entails. By having a clear understanding of your finances, the different options you have available to you, and the features of each of these loans, you can confidently select a financing option that best suits your needs and preferences.

Understanding Your Financials 

Before looking into the different financing options available to buyers, it is vital to assess your personal finance first. This includes gaining a thorough understanding of your budget, your future financial and investment goals, and your credit score. By doing so, you will have a clear picture of the funds you can afford for your property purchase, and ensure you have an informed and strategic approach to securing the financing for your purchase. 

Assessing Your Budget

Assessing your budget is the first step to seeing where you are financially as you can keep clear records of all your monthly and yearly earnings and expenses. These include your income, bonuses, additional income sources, utilities, groceries, transport, and any existing debt payments. This will allow you to determine the amount you can realistically allocate each month toward a mortgage payment. 

How Do Credit Scores Influence Loans

Credit scores are an important factor to consider when looking for home loan options as they have a significant influence on the loan approval process, your interest rates and the amount of money you can get approved for. Having a higher credit score can lead to finding better loan terms overall. 

The Credit Bureau of Singapore (CBS) provides credit reports and scores based on individuals’ credit histories. These scores range from 1,000 to 2,000, with higher scores indicating better creditworthiness.

Types of Property Financing Options

There are several property financing options available in Singapore, and each of these caters to the various needs of buyers. Moreover, each financing option has its own features, advantages and drawbacks. Let’s go over some of the most common property financing options available in Singapore.  

Bank Loans Vs. HDB Loans

When buying a Housing and Development Board (HDB) unit, buyers can also choose between getting a bank loan or getting an HDB loan. Both of these financing options serve different needs. 

Bank loans are offered by financial institutions in Singapore, and are flexible loan types that are used for various properties – including private residential and investment properties. HDB loans, on the other hand, are specifically designed for purchasing HDB units. Buyers who want to take an HDB loan must meet an eligibility criteria that includes being a Singapore citizen, meet income ceiling requirements depending on the unit type, and fulfil residency requirements. 

For a better understanding of bank loan vs HDB loan, check out our previous comparison article here.

Key Loan Features 

Each of the financing options we have listed have different terms and conditions, different interest rates, tenures and repayment options.

Loan Amount

Depending on the type of loan you take, buyers can finance anywhere from 75% to 80% of a property’s purchase price or market value, whichever is lower.

For HDB loans, the maximum Loan-to-Value (LTV) ratio is 80% of the property’s value or selling price, whichever is lower. Buyers can cover the remaining 20% of the down payment using a mix of cash and funds from their CPF Ordinary Account (OA) savings. For bank loans on residential properties, the maximum Loan-to-Value (LTV) ratio is 75%. This means the remaining 25% must be paid using a combination of cash and CPF OA funds, with a minimum of 5% cash. 

Interest Rates

Interest rates vary between HDB loans and bank loans. Moreover, buyers can choose between a fixed or a floating interest rate. We previously made an article on the different types of interest rates available for buyers trying to secure a home loan. 

Interest rates for bank loans are variable as they depend on banks and market conditions. Interest rates for HDB loans are currently set at 2.6 % per annum. 

Loan Tenures

Loan tenures for residential properties range from 15 to 30 years. Having a longer loan tenure results in smaller monthly mortgage payments, but can increase the total interest paid over the life of the loan. Moreover, many loans may allow for partial or full repayment without any penalties, offering flexibility to borrowers who may experience changes in their financial situation over the duration of the loan tenure. However, this is a factor that will vary depending on your terms and conditions of a loan. 

HDB loans have a maximum tenure of 25 years, and the LTVs for these loans are reduced to 55% if the tenure exceeds 25 years. Bank loans for HDB flats have a 30-year maximum loan tenure. Additionally, bank loans for private properties have a maximum tenure of 35 years. 

Repayment Options

The most common repayment option for home loans in Singapore is monthly instalments. This is a payment method where borrowers pay a fixed amount every month that includes both the principal amount and interest. This gives homeowners a way to gradually reduce their loan over time with a predictable cash flow they can keep in their records for budgeting purposes. 

Other options include making interest-only payments for a specific period of time, typically the first few years, and then doing monthly payments of the principal and interest. This option allows buyers to improve their cash flow by paying a smaller amount at the start, especially if their property is still under construction, and work their way up later on.  

Making the Final Decision

Choosing the right loan is a pivotal stage in the process of financing your property purchase. There are some key things to consider after you have evaluated your finances and explored the various loan options available in Singapore. 

Seeking Professional Advice

Consulting a mortgage broker or financial advisor throughout the process of securing your home loan can help you gain valuable insights catered specifically to your circumstances. Moreover, working with these professionals can help you better grasp the nuances within the property market, especially with different loans, identifying the best options available and the step-by-step of the home buying process.

Mistakes to Avoid

It is also good to be mindful of common mistakes to avoid throughout your loan selection process. Let’s go over a few of them.

Ignoring the Fine Print: A common mistake many can make is ignoring the minute details of the type of loan they select. It is essential to ensure you have carefully read the terms and conditions of each loan and received feedback from a qualified professional before making any decisions and signing agreements to avoid surprises later down the line. This also leads us to the next mistake that is commonly made, which is overlooking certain expenses. 

Overlooking Hidden Expenses: As the process of receiving a loan involves several steps, documents, meetings and decisions, it can be easy to overlook smaller costs and fees that may not be immediately apparent. These include costs such as processing fees, insurance costs, and valuation fees.     

Rushing Your Decision: Another common mistake you should avoid when looking for loan options for your property is making rushed decisions. Making any quick decisions without thorough consideration and research may lead to regret, especially for a long-term investment like a home loan. Take your time to compare all of the options in front of you and seek advice before making your choice. 

Closing Thoughts 

Ultimately, selecting the right home loan is a key stage in kickstarting your homeownership journey in Singapore. By first understanding your current financial situation, clarifying your long-term investment goals, and exploring the financing options available to you, you can make informed decisions when securing a home loan. 

Taking the time to research, compare, and consult professionals to find the right loan can put you on the path towards financial stability and growth alongside property ownership on your journey. 

Get In Touch With Us

Are you currently seeking financing options to secure your dream home? We have a team of experienced consultants who are more than happy to assist you every step of the way and answer any questions you may have on your property journey. Feel free to reach out to us here, we look forward to working with you. 

The post Are You Choosing The Right Loan? A Guide To Property Financing Options in Singapore appeared first on Insights by PropertyLimBrothers.

The issue of short-term rentals has been a contentious topic in Singapore’s real estate landscape. Recently, an article highlighted the government’s intensified efforts to clamp down on illegal short-term rentals, revealing significant statistics and regulatory actions. 

This article aims to educate readers on the detrimental impacts of short-term rentals and underscore the need for stringent enforcement to preserve the sanctity of residential communities.

Context and Overview

Since 2019, the Housing and Development Board (HDB) and Urban Redevelopment Authority (URA) have actively investigated and penalised those offering illegal short-term accommodations. To date, 64 offenders have been fined, and 15 prosecuted for such violations in private residential properties. In public housing, seven offenders faced fines. Current regulations stipulate a minimum stay of three consecutive months for private properties and six months for public housing flats, reflecting the government’s commitment to maintaining stable and secure residential environments.

Illegal short-term rentals have found their way onto various online platforms, despite the clear legal framework. Platforms such as Airbnb, Facebook Marketplace, and Carousell have seen listings for short-term stays, prompting these companies to take corrective measures when violations are reported. The HDB and URA have emphasised the critical role these platforms play in ensuring compliance with local laws and have taken a stern approach to enforcement, including severe penalties for repeat offenders.

Impact of Short-Term Rentals

Negative Effects on Residential Communities

Short-term rentals significantly disrupt the residential character of neighbourhoods. Frequent turnover of short-term occupants often leads to increased noise levels, security concerns, and a general sense of instability among long-term residents. These rentals can undermine the sense of community, making it challenging for residents to form lasting relationships and trust within their neighbourhoods. The constant influx of short-term tenants can also strain communal facilities and resources, exacerbating tensions among residents.

Economic and Social Implications

The proliferation of short-term rentals can lead to housing shortages and inflated rental prices. Property owners, enticed by the higher returns from short-term leases, may withdraw their units from the long-term rental market. This reduces the availability of affordable housing options for local residents and exacerbates the housing affordability crisis. Additionally, the focus on catering to short-term tenants can shift investment priorities, diverting resources away from essential long-term community developments and amenities.

Regulatory Challenges

Enforcing regulations on short-term rentals presents significant challenges. The sheer volume of listings and the dynamic nature of online platforms make it difficult for authorities to monitor and regulate these activities effectively. Despite the government’s efforts, illegal listings continue to appear, often disguised or misrepresented to evade detection. This ongoing cat-and-mouse game between regulators and violators underscores the need for more robust and innovative enforcement strategies.

Government Actions and Policies

Current Measures

The HDB and URA have implemented several measures to curb illegal short-term rentals. These include strict enforcement of minimum stay requirements, heavy fines for offenders, and proactive monitoring of online platforms. First-time offenders face fines of up to $5,000, while repeat offenders or those involved in large-scale operations can be fined up to $200,000 per charge. In severe cases involving HDB flats, penalties can include written warnings, fines up to $50,000, or even compulsory acquisition of the property.

Proposed Solutions

To strengthen enforcement, the government could consider additional measures such as enhancing collaboration with online platforms to identify and remove illegal listings more effectively. Implementing a more sophisticated system for tracking and verifying rental activities, possibly leveraging artificial intelligence and data analytics, could also improve regulatory oversight. Furthermore, increasing public awareness and encouraging community reporting of suspicious activities can play a crucial role in deterring illegal short-term rentals.

Case Studies and Examples

Several high-profile cases illustrate the severe consequences of illegal short-term rentals. For instance, a Singaporean woman was fined over $175,000 for renting out three units on Airbnb for nearly three years, earning about $162,000. Another significant case involved a man fined $1.4 million for operating an illegal short-term rental business across 19 properties, utilising former maids to help manage the operations​​. These cases highlight the substantial financial penalties and legal actions taken against violators, serving as a deterrent to others considering similar activities.

What More Can Online Portals Do?

Online platforms have a significant responsibility in ensuring compliance with local rental regulations. While some measures have been taken, there is room for improvement. Here are several steps that online portals can implement to help eradicate illegal short-term rental listings:

1. Enhanced Verification Processes

Online portals can introduce more rigorous verification processes for property listings, ensuring that only those that comply with local laws are allowed to be advertised. This could involve requiring proof of long-term rental permits or authorisation from relevant authorities before a listing is approved.

2. Regular Audits and Monitoring

Platforms can conduct regular audits and monitoring of listings to detect any illegal short-term rentals. Automated systems can flag suspicious listings based on certain criteria, such as frequent availability for short stays or unusual pricing patterns, for further investigation.

3. Collaboration with Authorities

Strengthening collaboration with local authorities can enhance the efficacy of regulatory enforcement. Online portals can establish direct communication channels with government agencies to share data on suspicious listings and receive guidance on compliance requirements.

4. User Education and Reporting Mechanisms

Educating users about local rental laws and the consequences of non-compliance is crucial. Online platforms can provide clear information on legal requirements and encourage users to report any illegal listings they come across. Implementing an easy-to-use reporting mechanism can facilitate swift action against violators.

5. Transparent Listing Policies

Establishing and enforcing transparent listing policies that align with local regulations can deter property owners from attempting to circumvent the law. Clear guidelines on what constitutes a legal rental and the penalties for non-compliance should be prominently displayed on the platform.

6. Technology-Driven Solutions

Leveraging advanced technologies such as machine learning and AI can help in identifying and removing illegal listings. These technologies can analyse large volumes of data to detect patterns indicative of short-term rentals and flag them for further  scrutiny.

In Conclusion

The issue of illegal short-term rentals in Singapore is a pressing concern that demands urgent action. The negative impacts on residential communities, economic stability, and regulatory challenges underscore the need for stringent enforcement and innovative solutions. Government agencies have taken significant steps, but more can be done, especially with the cooperation of online platforms.

By implementing enhanced verification processes, conducting regular audits, collaborating with authorities, educating users, enforcing transparent policies, and leveraging technology, online portals can play a pivotal role in eradicating illegal short-term rentals. This collective effort will help preserve the integrity of Singapore’s residential communities and ensure a stable and secure housing market for all.

Thank you for reading. Stay tuned for more insights into Singapore’s dynamic real estate market. Have any burning questions about the market? Contact our experienced real estate consultants here. At PropertyLimBrothers, we are dedicated to helping you achieve your real estate goals with precision and care.

The post Why Illegal Short-Term Rentals are Wreaking Havoc on Singapore’s Housing Market appeared first on Insights by PropertyLimBrothers.