Month: January 2025

The Housing and Development Board (HDB) has recently released its flash estimates for the fourth quarter of 2024, showing a 2.5% increase in resale flat prices compared to the previous quarter. This marks the 19th consecutive quarter of price growth in the HDB resale segment.

According to Christine Sun, chief researcher and strategist at OrangeTee Group, the flash estimates also revealed a 9.6% increase in HDB resale prices for the whole year of 2024, which is double the growth seen in 2023. However, it is still lower than the 10.4% increase in 2022 and the 12.7% growth in 2021.

OrangeTee notes a slowdown in price growth for some flat types based on HDB caveat data downloaded from data.gov.sg on Jan 2. For instance, four-room flats recorded a 2.5% q-o-q increase in the fourth quarter, compared to 3.4% in the previous quarter. Similarly, two-room flats saw a 2% increase, while executive flats registered 1.2% growth. In contrast, prices for five-room flats grew by 3.2% in the fourth quarter, faster than the 1.2% increase in the third quarter.

Resale volume also saw a decline of 3.6% year-on-year to 6,314 units in the fourth quarter of 2024, down from 6,547 transactions in the same period last year. This was also a 22.5% drop from the previous quarter, which saw 8,142 units transacted. Sun attributes the decrease in resale transactions to the launch of over 8,500 new flats in the October Build-to-Order (BTO) exercise, which diverted demand away from the resale market.

In addition, the seasonal year-end holidays and travel restrictions may have also contributed to the slow sales during this period.

Meanwhile, Wong Siew Ying, head of research and content at PropNex, believes that the government intervention in August 2024, which reduced the loan-to-value limit for HDB loans to 75%, may have affected the resale market. As a result, the weaker sales and slower growth seen in the HDB resale price index in the fourth quarter may be due to these measures.

Despite the decline in resale volume, the total number of million-dollar flat transactions reached a record high of 1,033 units in 2024, according to OrangeTee’s Sun. Toa Payoh town led the million-dollar resale flat deals in the fourth quarter of 2024, with 58 transactions. This was followed by Alkaff Vista in Bidadari Park Drive, which had recently crossed the five-year minimum occupation period (MOP).

Eugene Lim, key executive officer of ERA Singapore, believes that the new classification of Plus and Prime BTO flats may have driven buyers to seek out resale homes in central locations. This is because these buyers are not willing to accept the resale restrictions, such as the 10-year MOP, rental restrictions, subsidy clawback, and resale income cap for future buyers.

Looking ahead, OrangeTee expects HDB resale prices to continue rising in 2025, but at a slower pace than previous years. Sun adds that the ongoing supply of BTO flats will help moderate price growth in the secondary market. However, the extent of this stabilization will depend on the number of BTO flats released by the government in the upcoming years.

In February 2025, HDB will launch its largest sale of balance flats (SBF) exercise, offering more than 5,500 units across various towns. As there is no upfront information on the BTO projects with a shorter waiting time, buyers may turn to the resale market, according to Lee Sze Teck, senior director of data analytics at Huttons Asia.

A major advantage of investing in condominiums is the opportunity to leverage the property’s value for future investments. Numerous investors utilize their condos as collateral to secure additional funding for new ventures, consequently diversifying their real estate holdings. This tactic has the potential to enhance profits, yet it also entails certain risks, making it essential to devise a solid financial plan and carefully assess potential market fluctuations. Additionally, with the constant influx of new condo launches, investors have even more opportunities to expand their real estate portfolios and capitalize on the potential for growth.

Interest rates are also expected to remain low in 2025, allowing buyers to take on a larger loan amount to purchase a new home. Huttons projects a stabilisation in the million-dollar flat market between 900 to 1,200 units in 2025. They also anticipate HDB resale flat transactions to fall between 26,000 to 28,000 units, with a 5% to 8% price growth. Overall, PropNex also expects the HDB resale market to perform well in 2025, driven by healthy housing demand and fewer MOP flats reaching their five-year mark. They project HDB resale flat prices to grow at a slower pace of 5% to 7%, with a resale volume forecast of 29,000 to 30,000 units.…

In the latest flash estimates released by HDB on Jan 2, it was announced that resale flat prices rose by 2.5% quarter-on-quarter during the fourth quarter of 2024. This growth was slightly lower compared to the 2.7% q-o-q increase recorded in the previous quarter, marking the 19th consecutive quarter of price increases in the HDB resale market.

According to Christine Sun, chief researcher and strategist at OrangeTee Group, the flash estimates showed that resale flat prices grew by 9.6% in 2024, doubling the 4.9% growth in 2023. However, this was still slower than the 10.4% price increase in 2022 and the 12.7% growth in 2021.

OrangeTee notes that there was a slowdown in price growth for certain flat types, based on data from HDB’s caveat database on data.gov.sg as of Jan 2 at 8.15am. The median price of four-room flats saw a q-o-q increase of 2.5% in 4Q2024, slightly lower than the 3.4% growth in 3Q2024. Similarly, two-room flats rose by 2% q-o-q in 4Q2024, slower than the 3.9% growth in 3Q2024. Executive flats registered a 1.2% q-o-q price increase in 4Q2024, compared to 1.7% in the previous quarter. In contrast, prices for five-room flats grew 3.2% in 4Q2024, faster than the 1.2% increase in 3Q2024.

Resale volume declines 3.6% y-o-y in 4Q2024

Based on data from the caveat database, OrangeTee notes that resale volume declined by 3.6% y-o-y to 6,314 units in 4Q2024 from 6,547 transactions in 4Q2023. It was also down 22.5% q-o-q from 8,142 units in 3Q2024. Sun attributes this decline in HDB resale transactions to the launch of over 8,500 new Build-to-Order (BTO) flats by HDB in October 2024. Many of these units were located in prime and sought-after locations, drawing demand away from the resale market towards the BTO market.

Sales also slowed down during the year-end school holidays, with many Singaporeans travelling abroad. As a result, house viewings and sales activities typically decrease during this period.

However, Wong Siew Ying, head of research and content at PropNex, notes that the slower pace of growth in 4Q2024 could also be attributed to government intervention in August 2024. This was when the loan-to-value (LTV) limit for HDB loans was reduced by five percentage points to 75%. “Based on the weaker sales and slower growth in the HDB resale price index in 4Q2024, it appears that the August 2024 measures are taking effect,” says Wong. “In addition, the lower resale volume during the quarter likely also contributed to the slower price growth.”

Resale volume reaches 28,876 units in 2024, down from peak in 2021

The total resale volume for 2024 was 28,876 units, 8% higher than the 26,735 units recorded in 2023 and 27,896 units in 2022. However, it is still lower than the peak of 31,017 units in 2021.

Decline in million-dollar flat transactions in 4Q2024

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The decline in resale transactions in 4Q2024 also saw a decrease in million-dollar flat transactions, with only 283 such units transacted compared to 331 in 3Q2024. Despite the dip, Sun notes that the total number of million-dollar transactions reached a record high of 1,033 units in 2024, more than doubling the 469 transactions recorded in the previous year.

Toa Payoh leads million-dollar resale flat deals

According to caveats filed, Toa Payoh saw the highest number of million-dollar resale flat transactions in 4Q2024, with 58 units sold. Out of the 58 units, 20 were four- and five-room flats at Alkaff Vista in Bidadari Park Drive, which had recently crossed its five-year minimum occupation period (MOP).

Wong observes that the new Plus and Prime classification of BTO flats could be driving more homebuyers to seek out HDB resale flats in central locations. These buyers are averse to the resale restrictions such as the 10-year MOP, rental restrictions after MOP, subsidy clawback upon resale and resale income cap on future buyers.

HDB resale prices to continue rising in 2025, but at a slower pace

Looking ahead, OrangeTee expects HDB resale prices to continue rising in 2025, but at a slower pace compared to previous years. Prices have already reached new highs in many areas, creating affordability concerns for many potential buyers, says Sun.

She notes that the ongoing supply of BTO flats is expected to help moderate price growth in the secondary market. However, the extent of price stabilisation will depend on the number of BTO flats the government plans to launch in the upcoming years.

HDB’s largest sale of balance flats (SBF) exercise in February

In February 2025, HDB will launch its largest sale of balance flats (SBF) exercise, with more than 5,500 flats available across various towns, says Lee Sze Teck, senior director of data analytics at Huttons Asia. “Some prospective resale flat buyers have decided to wait to try their luck,” he adds.

Interest rates could go lower in 2025

Lim anticipates a more moderate pace of price growth for resale flats in 2025 due to a reduced supply of flats reaching MOP, which has been a key driver of price increases in recent years. He expects resale prices to grow by 3% to 6%, with an estimated 26,000 to 27,000 resale units changing hands by the end of 2025.

PropNex expects the HDB resale market to perform well in 2025, driven by healthy housing demand and a lower number of MOP flats entering the market. Wong expects resale flat prices to rise by 5% to 7% in 2025, with a projected resale volume of 29,000 to 30,000 units.

Huttons projects that HDB resale flat transactions will reach 26,000 to 28,000 units in 2025, with prices likely to grow by 5% to 8%. Lee observes that the supply of BTO flats in 2025 will be further reduced to 17,290 units, around 12% lower compared to the previous year. As there is no upfront information on BTO projects with a shorter waiting time, Lee reckons that buyers are likely to turn to the resale market. He expects the million-dollar flat market to stabilise within the range of 900 to 1,200 units in 2025.…

Roxy-Pacific Holdings, a renowned property development company, is set to showcase its latest residential project, Bagnall Haus, this Saturday, Jan 4. Located along Upper East Coast Road, this freehold development is a redevelopment of the former Bagnall Court, which was acquired by Roxy-Pacific for $115.28 million in February 2023. This translates to a land rate of $1,106 per square foot per plot ratio (psf ppr).

Bagnall Haus is a low-rise, five-storey building comprising of 113 apartments and two shop units. The units range from one-bedroom plus flexi layouts, starting at 495 square feet, to five-bedroom units at 1,528 square feet. Prices for the units start from $1.235 million (equivalent to $2,495 psf) for a one-bedroom plus flexi layout.

According to Teo Hong Lim, executive chairman of Roxy-Pacific Holding, the average indicative price for Bagnall Haus is around $2,450 psf. The official launch date will be announced after the preview this weekend.

Bagnall Haus is strategically located just a five-minute walk from the upcoming Sungei Bedok MRT Interchange Station, which will serve the Thomson-East Coast and Downtown lines when it is completed in 2028. The development is also within walking distance to the Upper East Coast Bus Terminal.

Teo also highlights that the project is situated across the road from a future mixed-use development in the upcoming Bayshore precinct. This means that residents of Bagnall Haus can look forward to enjoying the future amenities in the Bayshore precinct.

The last private condominium launched in District 16 was Eastwood Regency, a 75-unit freehold boutique apartment project by Fragrance Group, in January 2010. Next to it is Country Park Condo, a freehold development by UOL Group comprising of 160 units that was launched for sale in 1999 and completed in 2003. In addition, the neighbouring Eastwood Centre, a 99-year leasehold mixed-use development with 48 residential units, was launched in 1996 by Ho Bee Land and completed in 1998.

With regards to amenities, residents of Bagnall Haus have easy access to the upcoming Bedok Food Court and the nearby Eastwood Centre, which houses a Cold Storage supermarket, a medical clinic, a dentist, a nail and beauty spa, and a pet shop. The development also enjoys close proximity to reputable schools such as Temasek Primary and Secondary School, Bedok Green Primary School, and Anglican High School.

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For more information, interested buyers can check out the latest listings for Bagnall Haus properties and inquire about condo rental listings in District 16. They can also find out more about recently launched projects and condo sale transactions in District 16, and compare the price trend of HDB, condominium, and landed properties in the area. Bagnall Haus comprises of a total of 113 units.…

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The Orie, a 777-unit private condo located at Lorong 1 Toa Payoh, is set to be previewed on Friday, Jan 3, with its official launch scheduled to take place on Jan 18. Jointly developed by City Developments Limited (CDL), Frasers Property and Sekisui House, the project is poised to mark the first new launch of a private condo since the 578-unit Gem Residences was launched in 2016, with completion expected in 2020. The Orie boasts a prime location at the junction of Lorong 1 Toa Payoh and Lorong 4 Toa Payoh, with its 777 units spread across two 40-storey towers. Ranging from one-bedroom plus study apartments at 517 sq ft to five-bedroom units at 1,453 sq ft, the development offers a diverse mix of unit types. Priced from $1.28 million ($2,476 psf) for a one-bedroom plus study, $1.48 million ($2,500 psf) for a two-bedroom, $2.09 million ($2,459 psf) for a three-bedroom, $2.92 million ($2,401 psf) for a four-bedroom, and $3.48 million ($2,395 psf) for a five-bedroom with an exclusive private lift, The Orie offers a wide array of options to cater to the varied preferences and budget of potential homebuyers. The three developers jointly submitted the highest bid for a Government Land Sales (GLS) site at Lorong 1 Toa Payoh, with a price tag of $968 million, which translates to a land rate of $1,360 psf per plot ratio (ppr). The joint venture will see a 50:25:25 split between CDL, Frasers Property and Sekisui House. “The Orie marks the first private residential launch in Toa Payoh in over eight years, and we are thrilled to welcome the New Year with this exciting introduction,” says Sherman Kwek, CDL’s group CEO. “With its prime location in the vibrant and highly sought-after Toa Payoh estate, The Orie offers homebuyers the convenience of a central location and excellent connectivity.” The Orie sits within a five-minute walk to Braddell MRT Station on the North-South Line (NSL) and is in close proximity to the Toa Payoh Integrated Transport Hub, which connects Toa Payoh Bus Interchange to Toa Payoh MRT Station. The integrated development and community hub is expected to be completed in 2030, and will feature a sports centre with swimming pools, indoor sports halls and other sports facilities, a football stadium, a polyclinic, and a public library. The Orie also enjoys easy access to other amenities, such as the Toa Payoh Town Centre, HDB Hub, SAFRA Toa Payoh, Junction 8 shopping mall, and MacRitchie Reservoir. Families will find the location ideal as there are several schools within close proximity, including Pei Chun Public School, CHIJ (Toa Payoh) Primary and Secondary Schools, and First Toa Payoh Primary School. Residents at The Orie will also have access to a range of healthcare facilities, such as Toa Payoh Polyclinic, Tan Tock Seng Hospital, Mount Alvernia Hospital, Mount Elizabeth Novena Hospital, and Thomson Medical Centre. Additionally, the development’s strategic location in District 12 in the city fringe, also known as the Rest of Central Region (RCR), provides easy access to the CBD and Orchard Road shopping belt, further adding to its appeal for both homebuyers and investors alike. As such, The Orie’s prime location, paired with its various amenities, will provide future residents with a convenient and well-connected lifestyle. “With the support of our joint venture partners, Frasers Property and CDL, we are proud to introduce The Orie as part of our efforts to enhance the vibrancy and liveability of Toa Payoh,” says Soon Su Lin, CEO of Frasers Property Singapore. The super low energy development at The Orie features over 40 condominium facilities, coupled with units boasting efficient layouts, quality fittings by Hansgrohe, bathroom wares by Duravit, and premium home appliances by De Dietrich and Samsung. The project marks “a new partnership” between Sekisui House and CDL, adds Takehisa Yanagi, managing officer and head of the international development department at Sekisui House. However, he adds that the two companies have already collaborated on projects in Singapore over the past 13 years. In conclusion, The Orie presents a unique and exclusive opportunity for homebuyers and investors to secure a home amidst a scarcity of new launches in the Toa Payoh district, with prices starting from $1.28 million for a one-bedroom plus study. Homebuyers and investors are advised to act fast if they wish to secure a unit at this highly sought-after address.…

Effective January 1, ERA Singapore will no longer cover the annual Council for Estate Agencies (CEA) license renewal fees for its real estate agents, a practice that has been in place for the past seven years. This decision, which comes despite the ongoing COVID-19 pandemic, marks a change in the company’s longstanding gesture of support for its agents.

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According to a statement from ERA, this decision will allow the company to redirect resources towards initiatives that promote growth and success for its leading salesforce, while also benefiting consumers. However, ERA will continue to support new agents by covering their renewal fees for the first two years, a common industry practice that helps newcomers establish themselves in the real estate market.

ERA’s decision to discontinue the renewal fee coverage also addresses the issue of inactive agents moving between agencies in order to take advantage of the fee coverage. This has led to a modest reduction in the agency’s agent count, with around 300 inactive or part-time salespersons who have not had any transactions in the past year being affected.

On the other hand, ERA has attracted approximately 230 new professional agents who joined the agency on January 1, highlighting its continued appeal to active and aspiring real estate agents.

Marcus Chu, CEO of ERA Singapore, stated that the CEA is currently reviewing the implementation of a minimum transaction requirement for real estate salespersons. This emphasizes the importance of active participation and continuous professional development in the industry.

Chu added that by reallocating resources towards technology, training, and marketing, ERA is reaffirming its commitment to empowering its core team of results-driven salespersons to excel and deliver exceptional value to clients.…

Purchasing a condominium offers numerous benefits, including the potential for leveraging its value to fuel future investments. This involves using the condo as collateral to secure financing for additional ventures, allowing the investor to expand their real estate portfolio and potentially increase their returns. While this method can be advantageous, it also carries potential risks that must be carefully considered. It is crucial to have a solid financial plan in place and closely monitor market fluctuations. Furthermore, with the availability of new condo launches, investors now have even more opportunities to diversify their real estate investments and potentially gain higher profits. However, it is essential to thoroughly evaluate each option and make informed decisions based on individual financial goals and risk tolerance. With proper planning and research, investing in a condo can be a valuable addition to any investment portfolio. To explore the latest opportunities, check out New Condo Launches.

SRI, a leading real estate agency, made a major announcement on Jan 1, revealing that it has welcomed 111 agents from Knight Frank Singapore’s agency business, KF Property Network (KFPN), to join its team. The group of agents, including KFPN’s head, Evan Chung, represents 40.5% of KFPN’s sales force of 274 as of Jan 1, 2024, when the agency was ranked as the sixth-largest in the industry by the Council for Estate Agencies (CEA). This move has increased SRI’s sales force to 1,501 agents, making it the fifth-largest property agency at the start of 2025.Read also: Four freehold retail units in Farrer Park for sale at $19.2 milAdvertisementAdvertisementCo-founded by managing partners Bruce Lye and Benson Koh in 2016, SRI started as a spin-off from SRI5000, which the duo had established as a division of SLP Realty six years prior. With its beginnings of 120 agents operating out of a 2,000 sq ft shop unit in Tiong Bahru, SRI has achieved a significant milestone by reaching 1,501 real estate agents as of Jan 1, 2025. The firm aims to expand its team to 2,000 by the end of 2025, as shared by CEO Thomas Tan.Real estate agent vacancies left by the departures have decreased KFPN’s sales force to 145, causing the agency’s ranking to drop from sixth to eighth largest according to CEA public register figures as of Jan 1.However, Galven Tan, CEO of Knight Frank Singapore, has reassured that it’s business as usual for the agency. He states, “We are in the process of appointing a new head to lead KFPN, ensuring strong leadership to drive its growth and success. We will also be evaluating the team’s strengths and expertise to strategically position KFPN for future opportunities.”The addition of 111 agents from KFPN, along with recruits from the four largest agencies — PropNex, ERA, Huttons, and OrangeTee & Tie (OTT) — has also expanded SRI’s business lines, which include residential, capital markets, industrial, auctions, and international projects. According to Tan, many of the new teammates from KFPN are involved in big-ticket deals, which will complement SRI’s existing luxury property segments such as Good Class Bungalows (GCBs).Despite its growth, SRI continues to position itself as a boutique agency with a strong focus on the luxury residential market. Tan’s vision for the agency is to become “a thought leader in the industry, known for its high standards, niche expertise, and client-centric approach”.Evan Chung, the former head of KFPN, now joining SRI as a leader, shares that his decision to move was driven by the agency’s commitment to equipping its agents with effective tools, comprehensive support, and expert coaching. He adds, “The open and collaborative culture here makes us feel supported as professionals and as a team striving for excellence together. Hence, we believe this will be a great platform to grow our business and serve our valued clients through the offerings across the residential, commercial, and industrial market segments, auctions, and international properties.”Read also: Smaller deals lead strata retail sales value to drop 32.1% in 1H2024: Knight Frank…