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.

Singapore’s landed properties have long been considered prized treasures, offering exclusive abodes with personal land ownership. These properties are prestigious status symbols and exceptional assets for wealth preservation and growth. In land-scarce Singapore, where every square metre is highly valued, landed properties are rare and valuable commodities. The allure of these properties is further heightened by the scarcity of new landed developments from Government Land Sales (GLS), with the most recent GLS for landed properties occurring in 2017. According to recent statistics, only about 68,400 of the 1,425,100 resident households in Singapore live in landed properties, translating to just 4.8%. This highlights the exclusivity and prestige of owning a landed property in this small island nation.

Landed properties represent a unique asset class, allowing discerning investors the potential to achieve financial gains while investing in an unparalleled exclusive lifestyle. Successful real estate investment requires a deep understanding of market dynamics. The first step is to equip yourself with knowledge of overall market trends. This article explores the key trends and changes shaping Singapore’s landed property market in 2024, providing insights into demand dynamics, supply trends, and price movements.

Increasing Affluence and Scarcity of Landed Homes Drive Up Their Value in Singapore

In a macroeconomic context, real estate prices typically rise as a nation’s financial wealth increases, driven by higher demand for homes from wealthier individuals. Despite recent economic challenges like inflation, recession fears, and rising interest rates, Singapore’s household wealth continues to grow, albeit at a slower pace—8% year-on-year in the first quarter of 2024. These dynamics enhance the allure and value of landed properties in Singapore. With the economy progressing steadily and the supply of landed homes decreasing, the value and prices of these properties are expected to continue their upward trajectory.

The graph above shows that the overwhelming majority of landed home buyers are Singaporeans, with Permanent Residents and Foreign buyers making up a small fraction. Notably, this cohort of Singaporean buyers includes high-net-worth individuals who have become naturalised citizens. Despite the Additional Buyers’ Stamp Duty (ABSD) increase in April 2023, which imposes an extra 5% for Permanent Residents and a hefty 60% for Foreigners, the demand for landed properties remains strong among Singapore citizens. In 2024, out of 783 recorded sales transactions for landed properties, 99% were purchased by Singapore Citizens and only 1% by Permanent Residents, with no Foreign buyers. This data shows that the ABSD increase has not adversely affected the demand for landed properties, which continue to be a prestigious asset class for wealth preservation and growth. 

Landed Property Stock by Type & Region

Inter-Terrace homes make up the majority of the landed property supply, totaling 40,373 or 54.9% of the available inventory. Semi-Detached homes follow with 22,405 units, representing 30.5% of the inventory, while Detached homes account for 14.6% with 10,739 units. Notably, the North-East region has the highest number of Inter-Terrace homes at 13,905. For those considering an investment in landed properties, Inter-Terrace homes are an ideal starting point. They offer personal land ownership and significantly larger living spaces compared to HDB flats or condominiums, while maintaining a more affordable overall price.

Analysis of Regional Price Trends for Landed Properties

Before examining the regional price trends in Singapore, let’s analyse the price trends of Freehold versus Leasehold properties across all regions over the past five years, from Q2 2019 to Q2 2024. In Q2 2019, the average Per Square Foot (PSF) price for Freehold landed homes was $1,317, rising to $1,955 by Q2 2024, reflecting a 32.63% increase. For Leasehold landed homes, the average PSF price grew by 23.64%, from $985 to $1,290 during the same period. Although the graph shows a more significant growth for Freehold properties, this doesn’t necessarily mean they are better financial investments. Freehold homes typically come with a premium due to their tenure. The data includes various types of landed homes, from Inter-Terraces to Detached bungalows, each with different price trends and behaviours across regions. Additionally, each individual property has unique selling points that command its own price. This graph provides a general benchmark of average transaction prices for Freehold and Leasehold properties.

West Region 

Freehold landed homes in the West region experienced an average PSF price increase of 29.6%, rising from $1,210 in Q2 2019 to $1,718 in Q2 2024. During the same period, Leasehold landed homes in the West grew from $760 PSF to $1,095 PSF, marking a 30.6% increase. This higher growth rate for Leasehold homes in the West highlights how different regions exhibit distinct price trends and behaviours. Additionally, price trends can vary within each region depending on the type of landed property.

North-East Region 

In the North-East region, the average PSF price for Freehold landed homes increased by 30.5%, from $1,217 in Q2 2019 to $1,750 in Q2 2024. Leasehold landed homes grew by 25.6%, from $1,255 to $1,687 in the same period. Interestingly, there were two instances between Q2 2019 and Q2 2024 where the average PSF price of Leasehold landed homes surpassed that of Freehold homes. This challenges the notion that Freehold landed homes always perform better and are the superior investment choice.

North Region 

In the North region, Freehold landed homes saw a 37.4% increase in average PSF prices, rising from $932 in Q2 2019 to $1,488 in Q2 2024. Leasehold homes in this region experienced a 25.8% increase, with average PSF prices growing from $743 to $1,002 during the same period.

East Region

In the desirable East region, Freehold landed properties saw a 26.8% increase in average PSF prices, rising from $1,313 in Q2 2019 to $1,793 in Q2 2024. Leasehold properties in the East grew by 24.7%, from $822 PSF to $1,091 PSF during the same period. Although the price growth is relatively uniform compared to other regions, the East region has the highest average PSF prices. This is attributable to the high demand for landed homes in this sought-after area.

Central Region

In the Central region, Freehold landed homes saw an average PSF price increase of 35.9%, rising from $1,503 in Q2 2019 to $2,346 in Q2 2024. During the same period, the average PSF price for Leasehold landed homes grew by 6.4%, from $1,192 to $1,273. Although the overall increase for Leasehold homes was modest, their prices experienced sharp fluctuations, spiking to $1,611 in Q4 2022 and dropping to $1,033 in Q2 2023 before gradually rising to the latest benchmark. These volatile price trends for Leasehold homes are attributable to the abundant availability of Freehold options in the Central region and the recent ABSD increase that priced out Foreign buyers, prompting discerning Singaporean homebuyers to favour Freehold properties for their potential for long-term capital appreciation.

Regional Price Trend Analysis and Insights

Analysing the price trends of Freehold and Leasehold landed homes across the different regions, there are a couple of takeaways that you can use as rough guidelines into choosing your dream landed home. 

Robust Prices of Landed Homes Despite Latest ABSD:

The strong growth in transacted PSF prices of landed homes across all regions indicates that the exclusive landed property market remains resilient to the ABSD increase, continuing to serve as a safe haven for financial investment. 

Freehold Homes Are Not Always the Better Investment Choice:

In the North-East region, there have been three instances between Q2 2019 and Q2 2024 where the average PSF price of Leasehold landed homes exceeded that of Freehold homes. Additionally, in the West region, the average PSF price growth for Leasehold landed homes was higher than that of Freehold homes, with increases of 30.6% and 29.6%, respectively. The key takeaway is to focus on the unique features of the specific property you are considering. It is also crucial to account for the remaining lease duration and to have a sound exit strategy that aligns with your property choice.

More Affordable Options in the North Region:

For those starting their journey in the landed property market, the North region offers a prudent choice due to its more affordable PSF pricing. This helps keep the overall quantum price at a more manageable level. 

Higher PSF Price Does Not Guarantee a Better Investment:

In the North region, despite having the lowest average PSF price for Freehold landed homes compared to other regions, the growth rate from Q2 2019 to Q2 2024 was the highest. Similarly, Leasehold landed homes in the North region experienced a higher growth rate than those in the sought-after East and North-East regions, even with the lowest average PSF price. This highlights that a lower PSF price can still lead to significant investment growth.

Other Considerations To Take Note Of

Beyond understanding the overall price trends for the type of landed property and its region, it’s crucial to consider renovation costs. When driving through landed enclaves, you’ll often see older or even dilapidated homes alongside luxurious, contemporary ones. To simplify your understanding, we’ve categorised landed homes based on their age, along with estimated renovation or rebuilding costs and timelines for completion. For a deeper understanding of these different segments and their implications, click here to read our detailed article on the topic.

Segment 1 Homes: More Than 30 Years Old

Homes in this segment are the oldest and would typically require rebuilding or reconstructing, and consequently would require the highest costs for such, on top of the purchase price of the home. It is estimated that rebuilding or reconstruction costs could range from $1.5 million to $2 million for Inter-Terrace and Semi-Detached homes, which translates to a cost of $350 to $450 PSF.

Segment 2 Homes: Within 20-30 Years Old 

Homes in this category typically require Addition and Alteration (A&A) work or major renovations, with estimated costs ranging from $800K to $1 million, according to builders. This translates to a PSF cost of $200 to $250. The completion time for these A&A or major renovation projects is estimated to be between 6 and 16 months. 

Segment 3 Homes: Less Than 15 Years Old

These homes are generally well-maintained and built to their maximum potential floor size, requiring minimal renovation for plumbing, electrical wiring, flooring, and other minor works. Renovation costs are estimated between $200K to $300K, or about $160 PSF. The total cost may vary depending on the extent of the renovations. Typically, renovation work for Segment 3 homes takes around 6 to 9 months to complete.

Segment 4 Homes: New Homes From Developers 

Segment 4 homes are brand new and move-in ready, requiring little to no renovation. This saves significantly on renovation costs, although the savings are typically reflected in the higher purchase price. Nevertheless, these new homes offer the convenience of immediate occupancy.

In Summary

The Singapore landed property market continues to demonstrate resilience and growth despite economic challenges and recent policy changes like the ABSD increase. The market’s robustness is evident in the consistent demand and rising PSF prices across all regions, underscoring the enduring allure of landed properties as prestigious assets for wealth preservation and growth.

Key takeaways include:

1. Demand Driven by Local Buyers: Singapore Citizens, including many high-net-worth individuals, dominate the market, indicating strong local demand that mitigates the impact of higher ABSD rates on Permanent Residents and Foreign buyers.

2. Regional Price Trends: Different regions exhibit unique price trends, with significant growth observed in both Freehold and Leasehold properties. For instance, the North region, despite lower average PSF prices, has shown the highest growth rates, making it a viable starting point for new investors.

3. Freehold vs. Leasehold: The assumption that Freehold properties always provide better investment returns is challenged by instances where Leasehold properties have outperformed in certain regions. Therefore, focusing on the unique features of each property, considering the remaining lease duration, and having a sound exit strategy are crucial.

4. Renovation Costs: Understanding renovation costs is essential. Homes can range from needing extensive rebuilding to being move-in ready, impacting overall investment costs and timelines.

By staying informed about these trends and considerations, potential investors can make more strategic decisions in the dynamic Singapore landed property market. For more detailed insights, join our Landed VIP Club and stay updated with the latest market trends and expert advice.

The post What’s Next for Singapore’s Landed Property Sector – 2024 Market Forecast appeared first on Insights by PropertyLimBrothers.

Just a few months ago, two separate property listings were posted with a price tag of $2M. Although they were eventually taken down by the authorities (one for the misleading ad and the other for an “unrealistic” listing price), that triggered discussions about when we might actually see a $2M resale HDB transaction.

Well, we have officially gotten much closer, courtesy of a 5-room resale HDB flat at SkyOasis @ Dawson transacting at a record $1.73M. This surpasses the previous high of $1.48M for a 5-room flat in the same development, which occurred last year. The last record-breaker, a 5-room flat at CityVue @ Henderson, which sold for $1.59M, is also located nearby. The sale has sparked discussions about the future of Singapore’s housing market and the concerning trend of million-dollar HDB flats. Let’s take a closer look at this transaction and its implications for the property landscape.

Most Expensive HDB Transaction To Date

SkyOasis @ Dawson, located in the sought-after Queenstown area, is a relatively new development completed in 2021. The project is part of HDB’s efforts to rejuvenate mature estates and offer modern living spaces with excellent amenities. Some key features of this development include:

• Strategic location in Queenstown, a mature estate with a rich history
• Proximity to multiple MRT stations (Queenstown and Redhill)
• Easy access to city centre and business districts
• Modern design with sky gardens and community spaces
• Unblocked panoramic views of the surrounding area

The flat that fetched the record price is a 1,195 sqft 5-room corner unit on the 45th floor of 39 Margaret Drive, two blocks away (and 4 storeys higher) from the flat that fetched the previous record price of $1.48M in the development. Like the previous record brokered by PLB Realty, this flat is a SERS replacement flat from those that were displaced from Tanglin Halt, which allowed the owners to fulfil the Minimum Occupation Period (MOP) with a balance lease of around 96 years.

It was originally listed at an initial asking price of $1.838M before receiving offers from two groups of buyers and eventually closing at the record price of $1,725,888. The unit had only been on the market for less than a month. 

With a similar facing, it boasts perpetual unblocked views as the GCB enclave right in front of SkyOasis @ Dawson is gazetted as a conservation area. The residential plot right beside also has a plot ratio of 2.1 translating to a maximum building height of 24 storeys, meaning that it will not obstruct the views from the 45th floor.

Is The Price Tag Justified?

Despite all the inherent attributes of the unit, is this flat really worth such a steep jump from the previous record price? Did the buyers overpay for this flat? Yes, we know – willing seller, willing buyer. But some food for thought: would HDB have taken this listing down if this had been listed on the HDB resale portal? And because of this “success story”, will more sellers be encouraged to push the envelope and list their flats at crazy prices?

If we really zoom in to the area, there are only 7 stacks across 4 developments in Queenstown that offer 5-room flats with this kind of elevation and view. And out of the 4 developments, SkyOasis @ Dawson is the closest to the MRT. Given the extremely low supply of flats with these attributes, along with the combination of factors, it did set the stage and created the perfect storm for high-value transactions in the area. So the more important question should be: 

Will This New Benchmark Pricing Ever Become The Norm? 

We think it’s unlikely, and here’s why.

Here’s a look at the top 10 most expensive HDB flats (all transacted in 2024): 

The top 10 most expensive HDB flats at the time of writing have all surpassed the $1.5M mark, but if you take a closer look, most if not all of these developments are flat models that are no longer in production or being offered by HDB. Six out of the top 10 are DBSS flats in the Bishan and Toa Payoh area. We may continue to see high-value transactions coming out of these developments, but it is rather unlikely for this to become the norm when there is a limited supply of such flats with rare and highly sought-after attributes. 

Furthermore, we do expect HDB to step in at some point if prices get even more rampant and out of control. We have already seen a major shift in the public housing market with the reclassification of HDB flats, namely the shift from the mature and non-mature classification of towns to the Standard/Plus/Prime models. With this new framework, stricter resale conditions such as a $14,000 income ceiling were also put in place, which effectively creates an upper limit for future flats with highly desirable attributes. After all, when these flats hit the resale market, it is not possible for buyers to afford a $2M HDB flat with a combined income of under $14,000 – although we would not rule out possible gaps in the system such as retirees with no income downsizing from private properties to such flats. But the pool of buyers that can exploit these potential gaps are going to be very limited as well, which prevents sellers from overinflating these flats (who can the buyers eventually sell to and not make a loss if it’s not a forever home?) and allow the market to correct itself.

Which Existing Flats Could Possibly Surpass $2M?

Aside from the developments already recording high-value transactions, more townships in the Outside Central Region (OCR) have been recording million-dollar transactions. For example, Sengkang recently recorded its first million-dollar HDB flat in April 2024, with the sale of an executive maisonette at Compassvale Lane. 

However, these million-dollar HDB transactions are mostly coming from flat models that are no longer in production, especially those that surpass $1.5M. With that said, we can’t deny that the number of million-dollar HDB transactions has been on the rise. The number of million-dollar HDB transactions hit an all-time high this year, with over 200 of such transactions in May and June combined. 

Despite the number of such transactions climbing, the average transacted price of million-dollar HDB flats is still hovering around $1.1M –  and this average is unlikely to climb to $2M anytime soon, given that the government is closely monitoring the public housing market. 

While we do not have a crystal ball to predict the future, if an HDB flat were to surpass $2M in the next few years, it would likely be an existing 40+ storey 5-room flat in one of the Queenstown developments.

The Silver Lining

Looking at the bigger picture, over the past 3 years, million-dollar HDB transactions make up less than 2% of the total number of resale HDB transactions. That’s 1,644 out of 83,969 transactions. The average transacted price of resale HDB flats as a whole in the same 3-year period is at $565,648 – significantly lower than the million-dollar transactions that make the headlines every time. 

If we were to look at only 5-room or larger HDB flats, million-dollar transactions still only make up less than 4% of total transactions over the past 3 years (3.77% to be exact – 758 out of 20,096 transactions). And the average transacted price of 5-room or larger HDB flats is at $672,492, which is not as bad as the headlines make it out to be.

Closing Thoughts

Even though these million-dollar (possibly soon-to-be $2M) transactions are outlier deals that make up a very small percentage of overall market transactions, many have taken to social media to voice their concerns for the future generations. And these concerns are not completely unwarranted – if prices of public housing continue to rise at this rate, and million-dollar HDB flats inevitably become the norm, how will the next generation be able to afford a roof over their heads without relying on the great wealth transfer, or old money, so to speak?

However, with the government closely monitoring the public housing market and steadily increasing the supply of BTO flats, the increase in pricing will not see too drastic of a jump. And as we continue to propagate in our podcasts and webinars, there are still affordable options that are within reach for Singaporeans, now with even more support from the government in the form of additional grants. 

If you are on the hunt for your next home and want a second opinion, feel free to contact us here. Our experienced consultants stand ready to assist you every step of the way in your search for a dream abode. PropertyLimBrothers, always happy to show you the place.

The post 5-Room HDB Flat At SkyOasis @ Dawson Sold For Record $1.73M: Here’s What We Make Of It appeared first on Insights by PropertyLimBrothers.

Singapore is renowned as one of the world’s leading cosmopolitan cities for good reasons. The city must cater not only to its steadfast citizens but also to the constant influx of expatriates and tourists throughout the year. To ensure that everyone’s needs and welfare are adequately addressed, it is essential to maintain top-notch accessibility to amenities and necessities. Furthermore, the health and well-being of Singapore’s residents must be prioritised.

How does a city ensure these factors are effectively managed? Singapore has been at the forefront with the introduction of neighbourhoods designated as car-lite zones. The goal is to reduce road traffic congestion while prioritising ease of access to essential services and promoting the health and wellness of residents. This innovative approach demonstrates Singapore’s commitment to creating a livable and sustainable urban environment for all.

At present, the 16 areas that have been gazetted as car-lite zones are as follows:

In this article, we will explain what a ‘car-lite’ zone is and discuss how the Singapore government’s vision for a car-lite city-state will impact the value of both public and private residences in the coming years.

The Concept of Car-lite Zones and Bus-only Corridors

Car-lite zones are designated zones where the use of private cars is significantly restricted. Instead, the focus is on promoting public transport, cycling, and walking. Car-lite zones will have reduced parking spaces that make way for more greenery and will feature an extensive network of cycling and walking paths lined with lush greenery to make the cycling and walking experience a pleasant one. Bus-only corridors are dedicated lanes or streets where only buses are allowed, ensuring faster and more reliable public transport services. These initiatives are part of Singapore’s broader strategy to encourage sustainable transportation and reduce reliance on private vehicles.

Features of Car-lite Zones

Bus-only Corridors

Bus-only corridors are dedicated lanes for buses, ensuring faster and more reliable public transportation. By prioritising buses over private vehicles, these corridors aim to reduce traffic congestion and improve the efficiency of public transport.

Growing Trend Among Discerning Homebuyers

A growing trend among discerning homebuyers, particularly within the younger demographic, is the preference for lush greenery and sustainable living environments. This trend is driven by an increasing awareness of environmental issues and a desire for a healthier, more eco-friendly lifestyle. Younger homebuyers are increasingly prioritising properties that offer access to green spaces, promote sustainability, and provide a higher quality of life.

Car-lite zones align perfectly with these preferences. By prioritising green spaces, reducing pollution, and promoting active transportation, these zones offer a lifestyle that appeals to environmentally conscious homebuyers. The presence of cycling and walking paths, along with the integration of nature into the urban environment, makes these areas highly attractive to this demographic. As more young professionals and families seek homes that align with their values, the demand for properties in car-lite zones is expected to rise.

How Sustainability Practices Boost Property Values

The adoption of sustainability practices within car-lite zones further enhances their appeal. Energy-efficient buildings, green infrastructure, and sustainable urban planning contribute to creating a desirable living environment. These features not only attract environmentally conscious buyers but also contribute to long-term cost savings through reduced energy consumption and maintenance costs.

Developers and property managers who embrace these sustainability practices can expect increased demand for their properties. The emphasis on eco-friendly living and reduced carbon footprints makes car-lite zones attractive to a broad range of buyers and investors. This growing demand translates to higher property values, as these areas become sought after for their sustainable living options.

Long-term Investment Potential in Car-lite Zones

The introduction of car-lite zones in Singapore is poised to have a positive impact on property values within these areas. These zones, designed to minimise reliance on private cars, will likely transform the real estate landscape in various ways. Here’s a detailed exploration of how property values in car-lite zones are expected to be affected:

Increase in Property Values

• Enhanced Accessibility and Convenience

Car-lite zones often feature improved public transport infrastructure, such as more frequent bus services, dedicated cycling paths, and pedestrian-friendly streets. Properties within these zones will benefit from enhanced accessibility and convenience, making them more attractive to buyers and investors. The ease of commuting without the need for a private car can significantly boost the appeal of these areas.

• Desirable Urban Environment

Car-lite zones are typically designed to create a more pleasant and livable urban environment. Wider sidewalks, green spaces, reduced traffic noise, and better air quality contribute to a higher quality of life. These factors make such zones desirable places to live, driving up demand and, consequently, property values. For example, the planned Tengah New Town is a notable car-lite development that aims to create a green, sustainable urban environment, anticipated to positively influence property values in and around the vicinity. 

• Proximity to Amenities

Car-lite zones will incorporate a mix of residential, commercial, and recreational facilities within close proximity. This mix-use development approach ensures that residents have easy access to amenities such as shops, restaurants, schools, and parks. The convenience of having essential services nearby adds to the attractiveness of these properties, leading to higher property values. The upcoming Bayshore precinct, designed with car-lite principles, is expected to see a positive impact on property values due to its integrated amenities.

Impact on Rental Demand

Rental demand is another critical aspect influenced by car-lite zones and bus-only corridors.

• Higher Demand in Well-connected Areas

Rental properties in well-connected areas are likely to see higher demand. Tenants, particularly expatriates and young professionals, often prioritise convenience and accessibility when choosing rental properties. Areas with efficient public transport and car-lite initiatives will become more desirable, potentially driving up rental demand and prices.

• Changing Preferences Among Renters

As Singapore moves towards a more sustainable transport model, renters’ preferences may shift. The growing emphasis on environmental sustainability and the convenience of public transport could lead to increased demand for properties in car-lite zones.

• Impact on Commercial Properties

The introduction of bus-only corridors can significantly impact commercial properties. Retail and office spaces in areas with high foot traffic and excellent public transport connectivity are likely to become more attractive. Businesses benefit from increased accessibility and visibility, potentially leading to higher rental demand for commercial properties in these zones.

Stability in Property Values

• Sustainable Urban Planning

Car-lite zones are part of Singapore’s broader vision for sustainable urban planning. This long-term commitment to sustainability provides stability and predictability in the property market. Investors and homeowners can have confidence that these areas will continue to receive government support and infrastructure investments, ensuring stable or appreciating property values over time.

• Resilience to Economic Fluctuations

Properties in car-lite zones may also demonstrate resilience to economic fluctuations. The fundamental demand for well-connected, sustainable living spaces can buffer these areas against broader market downturns. The consistent appeal of car-lite zones as desirable living environments will ensure a steady demand for properties in these areas, contributing to stable property values.

Final Thoughts

The introduction of car-lite zones and bus-only corridors in Singapore is set to significantly influence the property market. These initiatives promise enhanced accessibility, a desirable urban environment, and proximity to essential amenities, which are likely to boost property values. Car-lite zones, with their emphasis on public transport, cycling, and walking, will create more pleasant and sustainable living spaces, attracting both buyers and renters. As Singapore continues to innovate in urban planning, the shift towards car-lite living will contribute to a more livable, sustainable, and vibrant city, positively impacting the property market for years to come.

Looking for the perfect property in a car-lite zone? Contact our expert real estate consultants. At PropertyLimBrothers, we are dedicated to ensuring your real estate goals and aspirations are met with precision and care.

The post Are Car-lite Zones the Game-Changer for Singapore’s Property Market? appeared first on Insights by PropertyLimBrothers.

The Bayshore area will see its first Housing Development Board (HDB) Built-To-Order (BTO) flats launched in October 2024, as announced on HDB’s website on 19 June. This upcoming launch marks a significant shift from the traditional categorisation of mature and non-mature estates, which has been in place since 1992.

In this new framework, flats will be classified as Standard, Plus, or Prime. Plus flats, a new category, will be situated in desirable locations near MRT stations or town centres. They will offer higher subsidies to maintain affordability, but with stricter conditions. These include a 10-year Minimum Occupation Period (MOP), subsidy clawback once the flat is sold after the MOP, a 30-month wait-out period for private property owners, and an income ceiling of $14,000 per month for resale buyers. Only Singaporeans can purchase Plus flats in the resale market, and owners cannot rent out the entire flat even after fulfilling the MOP.

Prime flats will be located in premium city centre locations under the Prime Location Public Housing Model (PLH). They will receive the highest subsidies but also come with the strictest restrictions, including full BTO eligibility conditions for resale buyers, and other restrictions similar to those discussed for Plus flats.

Standard flats will constitute the majority of the BTO supply, offering fewer subsidies and restrictions. They have a standard 5-year MOP, no income ceiling for resale buyers, and owners can rent out the entire unit after fulfilling the MOP.

Analysts anticipate that the upcoming Bayshore BTO projects will likely fall under the Plus category due to their sought-after location. However, the final classification depends on further assessments by authorities. In this article, we explore the features and location of these upcoming projects and discuss their potential impact on nearby home prices.

Features of Bayshore BTO Projects

The two Bayshore projects will be among a total of 14 BTO projects set to be launched in October’s launch exercise. Approximately 8,500 units of flats will be offered across these 14 BTO projects, while the two Bayshore projects we will be exploring today will have a total of 1,440 units – one with 710 units, and the other with 730 units. 

The plot on Site A will house a total of 710 units, comprising 2-Room Flexi and 4-Room configurations. The one on Site B will house a total of 730 units, with 2-Room Flexi, 3-Room, and 4-Room configurations. The one closer to East Coast Park on Site B will feature an eating house, a pre-school, supermarkets, and a residents’ network centre.

The flats will feature full-height windows, offering residents panoramic views of either East Coast Park from some units or cityscapes from others facing Bedok town. The development spans two plots divided by Bayshore Drive which will include a 400-metre “transit priority corridor” with dedicated bus lanes, footpaths, cycling paths, and spacious sheltered pavements on both sides.

These projects are located approximately a 5-minute walk from Bayshore MRT station, which began operating on June 23. The upcoming Bedok South MRT station, scheduled to be fully operational in 2026, is also within a similar walking distance on the Thomson-East Coast line. Temasek Secondary and Primary Schools are within a 1km radius of both projects, making them ideal for families with school-age children. In addition, the East Coast Parkway is just a few minutes’ drive away, providing easy access to the rest of Singapore for residents with private vehicles. With a sought-after address, proximity to schools, potential sea views from some units, and various nearby amenities, these projects are well-suited for families seeking convenience and quality living.

Can Plus and Prime Flats Maintain Value Despite Restrictions?

While HDB flats are primarily intended to offer Singaporeans a home rather than being viewed as profit-oriented investments, the potential for capital appreciation in Plus and Prime flats remains a consideration for discerning homeowners. However, with stringent restrictions like the 10-year MOP and an income ceiling of $14,000 for resale buyers, there’s concern about whether these limitations will constrain the pool of potential resale buyers and, consequently, impact capital appreciation.

While it’s still early to predict the exact growth potential of Bayshore flats that will most likely come under the Plus category, it’s unlikely these units will reach exorbitant prices after completing the MOP. Restrictions on Plus and Prime flats are crucial in preventing speculative pricing, ensuring equitable access to homeownership for all Singaporeans. Without these measures, unchecked market forces could price out potential resale buyers, pushing them towards private housing with better amenities at prices that make more sense. This could inadvertently limit HDB resale options.

Despite concerns that stringent rules might dampen demand and slow capital growth, these regulations actually stabilise the market. They ensure that the desirable locations of Plus and Prime flats remain attractive to buyers over the long term, including the Bayshore BTO flats. This stability underscores the enduring appeal of well-located HDB properties and their ability to maintain value, providing reassurance to prospective homeowners.

Can Bayshore BTO Projects Influence Nearby Property Values?

At present, only private residences exist near the future Bayshore BTO project sites. It will not be accurate to compare how HDB flats will affect prices of private residences, as they are different categories with no direct correlations. However, homeowners of these BTO projects could potentially become part of the pool of HDB upgraders interested in nearby private residences in the future.

Just a short walk from the future Bayshore BTO HDB projects, there are several freehold boutique private developments offering luxurious and tranquil living. Options like Bleu @ East Coast, The Calypso, and Sea Pavilion Residences are within minutes of the BTO site. Slightly further but still easily accessible on foot, developments such as Uber 388, East Coast Residences, and Breeze By The East also provide freehold options nearby.

While these boutique developments may have fewer sales transactions, potentially affecting capital appreciation, the upcoming Bayshore BTO projects could attract HDB upgraders interested in these properties in the longer term, once the MOP is fulfilled.

Strengthening Market Appeal: Impact on MOAT Analysis’ Exit Audience Metric

Using Bleu @ East Coast, The Calypso, and Sea Pavillion Residences as examples in our MOAT Analysis—the closest developments to the upcoming Bayshore BTO projects—they are already achieving strong scores. Bleu @ East Coast and The Calypso scored 62%, while Sea Pavillion Residences scored 60%. Currently, these developments receive a solid 4 out of 5 for the Exit Audience metric, likely due to their proximity to landed enclaves appealing to empty nesters looking to downsize.

The upcoming BTO projects are expected to further enhance the Exit Audience metric for all nearby developments, potentially improving the overall MOAT scores. With these developments already demonstrating robust MOAT scores and the forthcoming BTO projects set to bolster these figures, it’s clear that Bayshore’s new BTOs are anticipated to uplift nearby property values.

In Summary 

The upcoming Bayshore BTO projects are set to transform the housing landscape in the vicinity. Their strategic location near amenities, schools, and efficient transport links enhances their appeal to families and discerning homeowners alike. As these projects unfold, they not only promise to enrich community living but also have the potential to significantly elevate nearby property values. With Bayshore poised for growth, these developments are expected to attract HDB upgraders and investors alike, contributing positively to the local real estate market’s dynamism and appeal.

Looking for expert guidance in your real estate journey or have pressing questions? Reach out to us here today. Our PLB Consultants are here to provide personalised consultation sessions tailored to your needs, leveraging their expertise and experience.

The post Bayshore’s Transformation: How Will The Upcoming Bayshore BTO Projects Impact Home Prices In The Area? appeared first on Insights by PropertyLimBrothers.

New Launches are the staple of the private property market. But with so many New Launches available in the market now, which project should you go for? How do you hunt for disparity in prices across all the New Launches? Well, we’ve got you covered. 

In this article we will be sharing with you an extensive list of New Launch projects that still have balance units and are priced UNDER $2,000 PSF. If you have been on the fence of which New Launch to go for, this article may drive you in the right direction. 

1. The Myst

If you are looking for maximum security, this project is located right opposite the Ministry Of Defence at Hillview Camp, along Upper Bukit Timah road. It is also a short 5 to 7-minute walk away from Cashew MRT station on the Downtown Line (DTL). For those who are familiar with this line, it has high and fast connectivity to the major areas of Singapore. The nearest point for daily amenities is one stop away at Bukit Panjang with Hillion Mall and Bukit Panjang Plaza to choose from. Nature lovers will also get to enjoy several green spaces like Bukit Timah Hill, Bukit Timah Nature Reserve and The Rail Corridor. Main connectivity for drivers is via Bukit Timah Expressway (BKE) and Pan-Island Expressway (PIE) through Dairy Farm Road. 

The Myst has sold off 60% of its 408 units available and still has remaining balance available across their 1-Bedroom + Study to 5-Bedroom units. Transacted PSF prices range between $1,886 to $2,377 PSF. Currently, the 3-Bedroom + Study, 4-Bedroom and 5-Bedroom layouts have available units under $2,000PSF starting from about $1,867 PSF. This provides a suitable entry for interested buyers looking for larger units. Unit sizes are at 1,163 sqft for 3-Bedroom + Study, 1,453 sqft for 4-Bedroom and 1,690 sqft for 5-Bedroom layouts. For more information and our review on The Myst, do check out our article here. 

2. Hillhaven 

Nestled in an exclusive private residential enclave that stretches from Hillview MRT station to the upcoming Hume MRT station, Hillhaven is the latest edition in the Hillview cluster. 

Coincidentally, it is located adjacent to Hillview Camp, similar to The Myst. Drivers who are familiar with the area would also know that the ingress road to the enclave is via Hillview Road, which can get relatively congested. Good news is that there is an additional road under construction that links directly to Dairy Farm Road for easy access to BKE, slated to be completed in 2024. 

There is much to be excited about this area as Hillhaven will unlikely be the last residential project to be constructed. With 4 more residential plots and a plot zoned for educational purposes surrounding Hillhaven, it signifies further transformation in the area. This 341 unit development also features 2 blocks with 27 & 28 storeys for views overlooking the landed enclave towards the southern direction. 

Hillhaven is currently 42% sold with 195 units remaining with all layouts from their 2-Bedroom to 4-Bedroom types available. The smaller layouts, the 2-Bedroom and 2-Bedroom + Study, are priced slightly above $2,000 PSF. However, the 3-Bedroom, 3-Bedroom + Study and 4-Bedroom layouts have available units with prices ranging from about $1,947 to $1,982 PSF. The 3-Bedroom and 3-Bedroom + Study layouts, due to their efficiently planned spaces, are also attractively priced below $2M at 947 sqft and 1,012 sqft respectively. The 4-bedroom type standing at 1,259 sqft is currently asking slightly below $2.5M. But don’t just let the pricing entice you, check out our full review here.

3. The Arden 

A unique offering in this area of District 23, where boutique developments are a rarity. Located beside its neighbouring 396-unit development, Hillsta, The Arden is nestled within a landed enclave along Phoenix Road. Although boutique developments in this area are rare, there happen to be two of such nature (the other one being Phoenix Residences which has already been sold out). The enclave is almost exclusively accessed by residents who stay within, making it a quiet and private estate. 

The nearest MRT is Bukit Panjang, which is a 10-minute walk away, but the nearest transportation option is a 5-minute walk to Phoenix LRT station which is 1 stop away from the Bukit Panjang Interchange. Multiple amenities are available in the vicinity with Junction 10, Hillion Mall and Bukit Panjang Plaza to choose from. 

The Arden is currently 59% sold with 42 balance units to select, from 2-Bedroom to 4-Bedroom + Study layouts. PSF prices range from about $1,695 for the 3-Bedroom + Study layout to about $1,902 for the 2-Bedroom layouts. 3-Bedroom options are priced below the $2M quantum mark at about $1.8M, which rivals the resale prices of the integrated development Hillion Residences. With a fresh 99-year lease, the prices are comparative with the 11-year-old integrated Hillion Residences. For the full review on The Arden, click here. 

4. Mori 

Now on to more central offerings below $2,000 PSF. If you are looking for a focus area of New Launches below $2,000, the first 3 New Launches we featured should already give you an indication of where to search. Anyway, moving on to District 14, is where you will find Mori. 

Located along Guillemard road, Mori is sandwiched between 2 MRT lines, Aljunied station on the East-West Line (EWL) and Mountbatten station on the Circle Line (CCL). Although it is a 10 to 15-minute walk away to either of the stations, there is no lack of accessibility via public buses. Coupled with the convenience of stores along the shophouse row of Geylang, there is little need to travel out of the area other than for the daily commute to work. Mori is also 1km away from Kong Hwa school which positions it well for interested parents. 

Only 2 units are left of their 3-Bedroom layouts, both priced around the $2.2M quantum for 1,173 sqft of space. This translates to roughly $1,900 PSF. For the level of convenience and accessibility, along with the Freehold tenure, this would be a notable consideration for investors. For comparison, the neighbouring Grand Dunman, which is a 99-year leasehold development right beside Dakota MRT, has transacted at a PSF range of between $2,364 – $2,904, averaging $2,564 PSF. For the full review on Mori, check out our article here. 

5. Kassia 

Located in D17 along Flora Drive, this development is the newest addition to the Flora enclave, which is a high concentration of private residential developments. A quick fun fact, the developments in this area are launched in alphabetical order. Azalea Park Condominium which starts with the letter A is the first development to sprout in the area and in today’s context, the latest development Kassia, is represented by the letter K. Access to this enclave has recently been enhanced with the addition of the DTL and Tampines East station. The nearest stations were Expo and Tampines Stations on the EWL previously. 

Kassia has yet to be officially launched at the time of writing, with preview dates starting from 6 July. Based on preliminary information released, we are expecting PSF prices to range between $1,7XX to $1,9XX. With 1-Bedroom layouts pricing below the $1M quantum mark, this could be a potential investment opportunity for buyers looking for lower quantum properties. For more information on Kassia, read our review article here.

Final Thoughts 

We have excluded Executive Condominiums (ECs) in this article for the obvious reason that these developments are priced lower than $2,000 PSF due to their subsidised nature. However, with these five developments that we have featured, there are still opportunities for investors looking for New Launch projects below the $2,000 PSF mark. 2024 is turning out to be an exciting year for New Launches with the amount of inventory developers are holding. There is no shortage of choice for own stay buyers and investors alike. 

If you need a second opinion on any of these projects mentioned or any other development, do not hesitate to connect with us here. Our PLB Consultants, with their wealth of knowledge and experience, stand ready to offer you a personalised consultation session. 

AND! Get ready for the ultimate new condo showcase: PLB x Seedly New Launch Convention 2024! View and compare more than 80+ New Launch condominiums in Singapore through this one-stop expo for investors and homebuyers. 
If you’re still on the fence and considering a new launch property, this is the best place to be! Join us this July 7th at Suntec Convention Centre, Hall 404 and gain access to PLB’s latest investment strategies and exclusive frameworks for choosing the right condo. Tickets are now available here: https://www.propertylimbrothers.com/plb-new-launch-convention-2024/

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice.

PropertyLimBrothers will endeavour to update the website as needed. However, information may change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. PropertyLimBrothers does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, PropertyLimBrothers, its employees do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. 

The post Most Attractive New Launch Condos Under $2,000 PSF With Balance Units Left  appeared first on Insights by PropertyLimBrothers.

We all love the smell of new things. The smell of that new leather wallet, the smell of a new car or the smell of that new sneaker. When we buy something preowned, that new smell is a little lacking no matter how well kept the item is. But sometimes, we just do not have the luxury of waiting for the new order to arrive. So we have to explore a preowned option. And oftentimes, buying preowned also means paying lesser than you would for that brand new item.

New Launch fans will always gravitate towards that brand new home where you’re the first to own that unit. The first to enjoy the views that your unit has and the facilities that your development offers. For the Resale hunters who are on the prowl for a good deal in the resale market, waiting for a New Launch to be constructed just isn’t your thing. BUT! If you’re on the fence deciding between a New launch or a Resale condo, then perhaps this article will be able to help you with your decision-making process. 

No New Releases?

Just because you have the means to buy a brand new home, does not mean that you will be able to. Perhaps this may not be as relatable to investors who are looking to purchase a New Launch project and sell it off after clearing their Seller Stamp Duty (SSD) period, or to rent it out after receiving the Temporary Occupation Permit (TOP). This pool of buyers are likely to be open to several locations when assessing which New Launch project would suit their objectives the best. But if you do intend to utilise the brand new home for yourself or your family, then you may be faced with location restrictions.

Take Jurong for example, there were no New Launches in the Jurong area for the last 10 years. There are several reasons why you may not be able to compromise on the locale of your property. It can be for proximity to a certain primary school, living near your parents or even just purely enjoying the neighbourhood offerings. However, if you had stayed loyal to Jurong and New Launch projects, that would mean you may not have made any property transitions in the last 10 years. There could have been several opportunities that went by during the last decade, which you may have missed out on. So holding on to wait for a New Launch may not be a viable option if you have locational requirements. Your next option would be to go for a Resale unit which you can immediately buy and stay in or look elsewhere for New Launch projects. Good news is that for Jurong fans, you have 3 new projects that have been launched recently – J’den, The LakeGarden Residences, and Sora. 

Immediate Rental Income

The next consideration between a New Launch project and a Resale unit is the immediate occupation or utilisation of the property. One method of immediate utilisation is renting out the property. The benefit of a resale property is that you can immediately start generating rental income upon completion of the purchase. However, for a New Launch project, there is a build time of around 3 years before you can physically touch your property. Of course, New Launch projects have the benefit of Progressive Payment Schemes which lowers the monthly commitment as the mortgage loan is disbursed in trenches and only reaches the full mortgage commitment once the property has achieved its Certificate of Statutory Completion (CSC). 

This could be a make or break for an investment portfolio, especially if the intention was to position the property for a rental strategy. If you had purchased a Resale unit instead of a New Launch project in 2021, you would have managed to catch the rental market while it was on an uptick. Fast forward to the current day, the rental volume and retreating prices would not be an assuring sign if you are only receiving your key today for the New Launch unit you purchased back in 2021. On the flip side, in this current environment, a New Launch project today may make more sense as you ride out the lull of the rental market during the construction period. 

Having the flexibility to put your property up for rental immediately could also be pivotal in keeping your property. Financial prudency is something that we highly advocate especially in a downturn job market. In a worst case scenario if you were to lose your job and was unable to sustain the mortgage loan, an immediate rental could help cover the monthly commitment. Whereas for New Launch projects you would have to find ways to borrow additional equity in order to sustain the monthly commitment or risk forfeiting the unit while it is under construction because you cannot put it up for rental. 

Renovation for Your Dream Home 

One point that is often overlooked when comparing between a New Launch project and a resale unit is the opportunity to renovate. New Launch projects these days are getting more and more packed with goodies that developers offer in order to add value to consumers and entice them into a New Launch project. However, this would also mean that you would unlikely be redoing the entire renovation of your new home. Light renovation is definitely still expected, but it would be unlikely that you would hack down the new kitchen cabinets or the new flooring in your new home. It is more likely that you would plan your renovations around the existing theme of the new home with the new home furnishings. Of course, some may welcome the fact that minimal renovations have to be done, which is significant money and time saved.

But if you have the vision to design a dream home based on your preferences, a resale unit would offer you the opportunity to redo the entire renovation of your home from scratch, especially if you purchase a well-used resale unit. Although renovation costs are not cheap, the opportunity to renovate and craft your dream home if you intend to stay in the unit for a longer period of time, could be an initial determining factor on choosing between a New Launch project and a Resale unit. One thing that resale units offer in this sense is also space. Often we would notice that older resale units are much larger and that would allow you to create amazing spaces with the extra floor area. 

It is likely that for the same budget, your New Launch unit will be smaller than your Resale option purely because of the existing age of the Resale unit, in the same locale. New Launch projects generally have a higher land and construction cost due to inflation over time. And in order to keep the quantum competitive for the consumers, developers have to find ways to efficiently maximise the use of the space. That is why we see newer 3-bedroom units with sizes from 900 sqft to 1100 sqft, while older Resale units have 3-bedroom units with sizes from 1100 to 1300 sqft. So if you are looking to craft out your dream home with a space that is uniquely yours, Resale units could offer you that opportunity. 

Valuation

One key difference between New Launch projects and Resale units is the price valuation of the property. Typically, the banks would offer you 75% Loan-To-Value (LTV) of the property. But some Resale units may require you to pay Cash-Over-Valuation (COV) if the banks determine that the value of the property you are purchasing to be lower than the actual price you are paying. The difference would then have to be covered by cash. This means if you are intending to pay $1.6M to the seller for a particular property and the banks only value it at $1.5M, you would need to pay the difference of $100,000 in cash. This is on top of your 5% cash requirement and 20% CPF/cash component. 

However, this is never the case with a New Launch project. This is because the developers are seen as selling the units at cost. So even if a New Launch project may be charging a premium for their units compared to the surrounding area, the banks will most often than not, match the valuation of the New Launch property. Similarly, if the developer chooses to run big discounts on some units to boost sales, the banks would match the sale price accordingly and not deem it as an under-valuation. This is one key benefit to New Launch projects as the financial institutions deem the developers to be selling at cost. 

Price Flexibility 

More often than not, New Launch projects offer a non-negotiable price. There is little flexibility in negotiating especially for highly popular projects. But despite that, we still see units in popular projects getting snapped up. Of course, this is accredited to the competitive prices and future potential that the developers have advertised. Whereas in the resale market, sometimes there is more room for negotiation. Especially if you have been keeping an eye on units that have been in the market for sometime or when the sellers have some sort of urgent requirement to offload in the shortest possible time.

The only time where you will likely see developers offer discounts or are more negotiable to their prices is when they are approaching their TOP stage with some balance units left and they are motivated to clear them off. This scenario would then give rise to the situations where your property agent drops you a text mentioning “Star Buy!!” or “Fire sale!!!!” for a particular New Launch project. And like every Singaporean hunting for a good buy, this is when you head down and take action on that New Launch project approaching TOP. 

Final Thoughts 

Between you and the next person, there is no identical route that can be adopted because every individual and every family has different requirements and objectives. However, there is a right move that will suit your requirements and objectives. Through this article, we have covered a few points of New Launch vs Resale Condo that you could use for consideration. We also have an earlier article where we covered other points for consideration on this topic. If you still need a deeper discussion and analysis on your right move, feel free to connect with us here. Our PLB Consultants, with their wealth of knowledge and experience, stand ready to offer you a personalised consultation session. 

AND! Get ready for the ultimate new condo showcase: PLB x Seedly New Launch Convention 2024! View and compare more than 80+ New Launch condominiums in Singapore through this one-stop expo for investors and homebuyers.
If you’re still on the fence and considering a new launch property, this is the best place to be! Join us this July 7th at Suntec Convention Centre, Hall 404 and gain access to PLB’s latest investment strategies and exclusive frameworks for choosing the right condo. Tickets are available here: https://www.propertylimbrothers.com/plb-new-launch-convention-2024/

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice.

PropertyLimBrothers will endeavour to update the website as needed. However, information may change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. PropertyLimBrothers does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, PropertyLimBrothers, its employees do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. 

The post New Launch vs Resale Condo: How Do You Decide? appeared first on Insights by PropertyLimBrothers.

After navigating the market for the right new launch project to purchase, there is one more shortlisting process you will need to think about. Which unit within the project should you select? 

Choosing a good unit is not only a strategy for future exit plans, but also to ensure that your time invested with the property is well spent. If you are intending to live in the unit for a couple of years then you would likely want a quieter facing with a good view. Or if you intend to rent out the unit, then perhaps you would want to lower your investment cost and not pay a premium for a higher floor unit. Depending on your objective of the new launch purchase, the factors you would consider will differ.

The last thing you would want is striking the new launch lottery of balloting queue No.1 and selecting a unit which may not reap the benefits that you thought it would. And if you are not as lucky as Mr No.1 to receive a queue number in the top percentile, perhaps these factors are more crucial for you to consider when selecting from the balance units available. Whatever your queue number is, we got you covered with these tips to select a good unit.

1. Find the Biggest Units

It is a general rule of thumb that the biggest units in any development is usually where developers place the most emphasis on. Why? Simply because they are likely the most expensive units available. Bigger square footage equals bigger price tag. And with that bigger price tag, one would expect intrinsic attributes to match that price tag. 

Take the site map of Grand Dunman for reference. At a single glance, you would immediately notice a block of units which is very much separated from the rest of the blocks. Block 2 of Grand Dunman is the developer’s “Grand” offering of stacks, while the other blocks have been named the “Luxury” series. Stacks 01 and 02 is where you will find the largest 4-Bedroom and 5-Bedroom units available in Grand Dunman.

However it seems counter-intuitive for these stacks to be the most premium stacks given that they are exposed to the dreaded west sun and have an obstructed view from the HDB blocks ahead of their balcony. But if you do get a high enough unit overlooking the HDB blocks ahead, what you will be heading home to is a sunset over our National Stadium and the Central Business District (CBD) skyline. Does this mean that you should go for the largest 4 or 5-Bedroom unit at stack 01 and 02?

Well, it is not called a tip if there is no actual benefit right? Instead of going for the largest 4-Bedroom available from the “Grand” series, you can consider 4-Bedroom units from the “Luxury” series at stacks 17, 56 and 57. Not only will you be able to dodge the direct west sun exposure from your living room, you will also be able to enjoy the internal view towards the pool or an unblocked landed facing towards East Coast Park. Furthermore, you get to enjoy the skyline view from an angle for occasions like National Day Parade or New Year’s countdown. This will allow you to save the premium on the “Grand” series and keep the quantum purchase for a lower square footage within your budget range. 

For 3-Bedroom participants, fret not, you too have an opportunity at the amazing skyline view at stack 18 for one of the most compact 3-Bedroom layouts in Grand Dunman at 958 sqft. However, this stack will also be exposed to the traffic noise along Dunman Road. 

2. Find the Gaps  

Speaking of compact layouts, that brings us to our next tip – selecting the right layout. Choosing the right layout for your objective is paramount in your new launch purchase. Not just for investment purposes, but also for your own well-being if you are living in the unit after the project is completed. 

Referencing this 1-Bedroom + Study unit in Sora, at a glance, it may just seem like you are getting a 1-Bedroom with a large-sized master bedroom. But it has the potential of creating an additional bedroom by partitioning up the living area. Of course, by doing so, you will be left with a minimal living and dining space, but the upside is that you have just turned your 1 Bed 1 Bath rental investment into a 2 Bed 1 Bath unit. This allows you to potentially fetch a higher rental from tenants who prioritise the extra bedroom or possibly giving you the option for two separate tenants.

Buying smaller for larger incentives may not always be the right choice for everyone. These are the compact 3-Bedroom layouts available in The LakeGarden Residences. On the left you have an efficient dumbbell layout at 926 sqft and on the right you have a 1,012 sqft unit with a more conventional layout. 

At first glance, choosing the 926 sqft dumbbell layout seems to be a no-brainer. But upon further consideration, you would notice that the main door for the 926 sqft unit opens up directly to the living and dining area where it is in full view. On the 1,012 sqft unit, you have an angled entrance to maintain the privacy of your unit when leaving the door open for ventilation. 

One other consideration for these two layouts will also be the bathrooms. On the 926 sqft unit, the master bathroom does not come with a ventilation window while the common bathroom does. Both bathrooms in the 1,012 sqft unit have ventilation windows provisioned. In our hot and humid country, we all know the importance of a ventilation window. Of course, these are not detrimental considerations for the 926 sqft unit and nothing a ventilation fan system cannot solve (unless it’s a deal breaker for you). 

The 926 sqft unit will also allow you to have a cost savings of close to $200,000 based on the same Price Per Square Foot (PSF), assuming $2,000 PSF for the 86 sqft difference. For future exit strategies and potential, even with the smaller price tag for the 926 sqft unit, some buyers may still prioritse the larger 1,012 sqft unit for the enhanced privacy and ventilation window. All these considered, which 3-Bedroom layout will you choose? 

3. Consider the Surroundings (URA Master Plan) 

Sometimes we dive so deeply within a project, we overlook considering the surroundings. If you recognise the Master Plan map above, yes, it is none other than J’den, one of the best-performing new launch projects of 2024 with over 90% of its units sold. 

As it currently stands, the north facing units of J’den are towards the MRT track which may not be as preferred due to noise concerns. But with the buffer distance from the track and considering that the trains entering Jurong East MRT Interchange are slow-approaching due to the multiple tracks, the noise concern may not be substantiated. On the other side, south facing units will likely be exposed to future construction noise. There is a large span of white sites being slated for development towards the southern direction of J’den with some plots being released for tender. 

Southern facing units would potentially enjoy unblocked views towards Pandan reservoir and overlooking the sea on the horizon for units on the higher floor. But with the new plots released and the plot ratio of these land lots being bigger than the plot J’den sits on, there may potentially be taller structures obstructing the views towards the south. Nothing is confirmed at the moment with proposals being considered for the cohesive use of 6.5 hectares of land, but this could be a potential downside for the south facing units. 

In reference to warnings from your overly concerned parents when you were younger to always be careful of your surroundings, in this context, it pays to be careful of your surroundings. 

4. Hunting for Good Buys between Floor Levels

The balloting process can be a very nerve-wracking period. You have your choice of stacks selected, and it will give you a beautiful unblocked view, but how high should you go before you pay an overly big premium?

Developers usually price units with a differential for each level as you go higher. Although the cost of the materials to build each unit should hypothetically be the same, the price differential seems to get larger as you move up the stack. For the obvious reason that the higher you go, the better the view. 

For the units at stack 23 in Lentor Hills Residences, the price differential starts at $10,000 per level between the first 7 levels. But the price differential starts to see a larger jump at $20,500 per level between levels 7 and 9. Subsequently, it reduces back to $11,000 per level between levels 11 and 12. 

If you are in the position of choosing a mid level unit, you will now be faced with the dilemma of going for the level 7 unit to avoid the larger price differential jump. Or go for a higher unit on level 13 because you have already crossed the $20,500 price differential barrier and you want to make the most out of paying that bigger premium.

If you are prioritising going for a higher floor unit to get better views, then there is little to consider, go forth (or in this context, go up) and get the best you can afford. But if you are hunting for a sweet spot, the unit on level 7 would unlikely have vastly different views from level 9 and you could potentially sell it off in the future for the same price tag as your 9th floor companion, reaping slightly more appreciation out of your purchase. 

5. Hunting for Good Buys Between Unit Types  

Hunting for price differentials does not pertain to only floor levels, but also within layout types. 

Buyers who are interested in Hillock Green are faced with a dilemma of either going for the 1,066 sqft 3 Bedroom + Study unit or the 1,184 sqft 4-Bedroom unit. A 3 + Study layout essentially serves the same functions of a 4-Bedroom layout depending on how you utilise the additional rooms. If you have a budget of about $2.6M, you will have 2 options in Hillock Green. A super high 23rd floor 3-bedroom + Study unit or still relatively high 16th floor 4-bedroom unit. For buyers at Hillock Green, a budget of $2.4M would be a tougher position at deciding between a 16th floor 3 + study or 2nd floor 4-bedroom. 

Technically, you would be getting more square footage for the same buy in price which means a lower PSF cost for you. But you will not be enjoying the same views between the 2nd floor and 16th floor. 

Final Thoughts

Congratulations Mr Queue No.1, these are the 5 tips on selecting a good unit at a new launch project. You are now ready to make full extensive use of your luck to get first dibs on a brand new development. 

As our present to you, here is an additional BONUS TIP to you. If you are visiting the showflat during the preview period of any new launch, you don’t have to go on the preview weekend. Visit after you have read the reviews of the new launch project you are deciding on. With all the content being generated by real estate agents and other real estate market enthusiasts, you will likely find all the information you would need for your consideration. 

If you don’t see any content released online for a project, fret not. Just stay tuned to our PLB New Launch Studio review and we’ll be sure to get you covered before balloting day. Alternatively, if you still can’t wait, then you can also connect with us here. Our PLB Consultants, with their wealth of knowledge and experience, stand ready to offer you a personalised consultation session. 

AND! Get ready for the ultimate new condo showcase: PLB x Seedly New Launch Convention 2024! View and compare more than 80+ New Launch condominiums in Singapore through this one-stop expo for investors and homebuyers.
If you’re still on the fence and considering a new launch property, this is the best place to be! Join us this July 7th at Suntec Convention Centre, Hall 404 and gain access to PLB’s latest investment strategies and exclusive frameworks for choosing the right condo. Early bird tickets are now available here: https://www.propertylimbrothers.com/plb-new-launch-convention-2024/

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice.

PropertyLimBrothers will endeavour to update the website as needed. However, information may change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. PropertyLimBrothers does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, PropertyLimBrothers, its employees do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. 

The post Buying A New Launch Condo? Here Are 5 Tips On How To Select A Good Unit appeared first on Insights by PropertyLimBrothers.