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CNA
04-07-2025
- Business
- CNA
Higher seller's stamp duty, longer holding period for private homes to have limited impact on market: Analysts
SINGAPORE: The increase in seller's stamp duty (SSD) and holding period for private properties is meant to curb speculative growth and is expected to have a limited impact on the property market, analysts said. On Thursday (Jul 3), the Ministry of National Development (MND) announced that the holding period for private properties will increase from three to four years. Those who sell their property within four years of the purchase will also incur higher SSD, by 4 percentage points for each tier of the holding period, up to a maximum of 16 per cent for those who sell within a year of the purchase. The changes will be in effect for all private residential properties purchased on and after midnight on Friday. INCREASE IN SUB-SALES SINCE COVID-19 In introducing the tighter rules, the ministry said that there has been a significant increase in the sub-sale of units that were not yet completed. Market analysts said that the proportion of sub-sales in the market has been increasing steadily since the COVID-19 pandemic. Using data from the Urban Redevelopment Authority (URA), senior director of data analytics at Huttons Asia Lee Sze Teck showed that the proportion of sub-sales across all private residential properties increased from a low of 0.9 per cent in 2020 to a peak of 6.8 per cent in 2023. The proportion has since tapered down to 4.4 per cent in the first quarter of this year and 4.5 per cent in Q2 2025. ERA Singapore CEO Marcus Chu noted that since 2021, there had been a "significant jump" in sellers who sold their homes after holding them for between three and four years. Focusing on non-landed private homes, Mr Chu said that URA caveats show that in 2020, only 358 sellers sold their homes after holding them for three to four years, said Mr Chu. Last year, this number surged to a peak of 2,104 sellers, he added. Mr Chu said non-landed private homes in the Outside Central Region saw the highest volume of homeowners selling within three to four years, followed by the Rest of Central region and Core Central Region. Despite the increase, Mr Chu said that the majority of homeowners continue to sell their properties after holding them for five years or more. Accounting for the increase, executive director for research and consultancy at Savills Singapore Alan Cheong said that private residential prices remained pretty flat until just after the pandemic, when relaunches came and prices "gapped up". "Naturally, those who bought into the 2018, 2019 period would have a windfall gain. And because of their profit, they will naturally flip," said Mr Cheong, adding that these were mostly Singaporean buyers who were waiting for their properties to reach completion. "And just before completion, another new project gets launched, and this time around, the prices gapped up in the market," Mr Cheong said. "And those who bought ... fortunately or fortuitously for them, they see that massive gap up, and they are holding on to a windfall profit. They will flip." NO SIGNIFICANT IMPACT ON MARKET Property analysts said that there would not be a significant impact on the market, with majority of genuine homebuyers and long-term investors unlikely to be affected. Through the new measures, the government is discouraging short-term flipping and sub-sales, which have contributed to artificial demand and price volatility recently, associate head of research Joel Lim said. "This measure reinforces the notion that housing should be viewed primarily as a home rather than a quick investment vehicle," added Mr Lim. Head of research and data analytics at Singapore Realtors Inc Mohan Sandrasegeran pointed to transaction data, which noted that average holding periods for sub-sale units remain relatively stable and in many cases, exceed the four-year threshold. "This reinforces the view that recent market activity has been driven more by owner-occupiers and long-term investors rather than speculative flippers," Mr Mohan said. The changes have minimal impact on investors and homeowners with medium- to long-term horizons, and may even contribute to greater confidence as the market is protected against speculative swings, he added. Realion Group chief researcher and strategist Christine Sun noted that although the number of sub-sale transactions was higher than before the pandemic, quarterly transactions have been on a downtrend over the past few quarters. "Furthermore, most condominiums are purchased for owner-occupation, especially after the additional buyer's stamp duty (ABSD) has been raised several times. Those who buy properties for their own use will not be affected by the increased SSD, as they are likely to stay in the property for the long term." She suggested that the policy changes were introduced as a preventive measure to limit speculative growth, since more condominiums are due to obtain their temporary occupation permit (TOP). The number of sub-sale transactions might rise in line with the anticipated increase in private residential units securing TOP, which is projected to grow from 5,920 units in 2025 to 6,838 units in 2026 and further to 10,306 units in 2027, Ms Sun said. She also noted that several new projects are expected to be launched in the coming months. Lower interest rates will make housing loans more affordable, which in turn may spur more buying activity, she added. Huttons Asia's Mr Lee said that the tighter rules will reduce the number of sub-sales in the market, with the proportion likely to go below 2 per cent starting from 2026. "The buyers who would otherwise have bought a sub-sale unit will buy from the new sale market now as the number of sub-sale listings will reduce," he said. ERA's Mr Chu said that buyers have become more cautious alongside rising economic uncertainty in recent months, and more now see property as a long-term investment. He noted that even without the revision, higher costs from elevated interest rates and property taxes have eroded profits, likely resulting in investors holding properties for more than three years. "Since most homebuyers are genuine owner-occupiers or longer-term investors, this measure is a gentle touch rather than a heavy-handed approach on the overall market. It aims to stabilise any spikes caused by short-term investors. "It is not designed to crack down on the market but to reduce the froth from investors who sell shortly after the third year."
Business Times
02-07-2025
- Business
- Business Times
Loyang Valley owners make third try for en bloc sale at S$880 million
[SINGAPORE] Changi condominium Loyang Valley is being put up for collective sale for S$880 million, in its third attempt at an en-bloc deal. The 99-year leasehold property sits on a 840,648 square feet (sq ft) plot of land, which now houses 362 apartments. Subject to planning approval, developers may build around 1,249 dwelling units, assuming an average unit size of 1,076 sq ft, marketing agent Huttons Asia said on Wednesday (Jul 2). The indicative price of S$880 million works out to a land cost of S$936 per sq ft per plot ratio (psf ppr), inclusive of an estimated Land Betterment Charge of approximately S$221 million, and a lease upgrading premium of approximately S$245 million after factoring in a 7 per cent bonus balcony gross floor area. Loyang Valley's first attempt at a collective sale was made in 2018, at a reserve price of S$750 million, but it failed to garner sufficient support. In 2022, the condominium was launched for sale at S$980 million, but pulled in no bids when the tender closed later that year. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Huttons Asia's head of investment sales Terence Lian said: 'Given current market dynamics, the reduced reserve price of S$100 million below the previous level offers a compelling and achievable opportunity for developers.' Owners stand to receive between S$1.67 million and S$3.9 million for their properties, which range from 1,001 sq ft for the smallest two-bedroom unit to 3,272 sq ft for the four-bedroom unit, the development's largest. Four units in Loyang Valley were sold this year, said URA Realis. The most recent sale was in May 2025, when a 1,980 sq ft unit changed hands for S$1.9 million or S$959 psf. Huttons' Lian said: 'Loyang Valley offers a rare opportunity to develop a tranquil residential enclave in the East, blending modern living with the charm of Changi's heritage.' Built in 1985, the development has 56 years left on its 99-year lease. Under the 2019 Master Plan, the site is zoned for residential use and has a gross plot ratio of 1.6. The last new launch in the Changi East area was freehold condominium Kassia, which sold 52 per cent of its 276 residential units on its launch weekend in July 2024. The prices ranged between S$1,821 and S$2,177 psf. The development's site on Flora Drive is being developed by Hong Leong Holdings, City Developments and TID. Significant infrastructure and industrial developments are expected in the Changi East area, and these include the Loyang Viaduct and the Cross Island Line, which will put a new Loyang MRT station next to the condo's site. The Changi East area now under development expand to nearly double the footprint of the current Changi Airport; it will add 10.8 sq km of new infrastructure, including Terminal 5, a third runway, the Changi East Industrial Zone and the Changi East Urban District. Loyang Valley is also near industrial hubs such as Aviation Logistics Park, Loyang Industrial Estate and Changi Business Park. Lian said: 'With growing demand from the semiconductor and aviation sectors in Tampines North, Pasir Ris and Changi, the site offers a strong rental catchment for investors, while providing residents with convenient access to job opportunities and lifestyle offerings.' The tender for Loyang Valley, to be launched on Jul 8, closes on Sep 9.
Business Times
01-07-2025
- Business
- Business Times
HDB resale prices rise at a slower 0.9% pace in Q2: flash data
[SINGAPORE] Housing and Development Board (HDB) resale prices continued to rise in the second quarter of 2025, but at a slower pace of 0.9 per cent compared with the 1.5 per cent in the first quarter. This marks the third consecutive quarter of slowdown in price growth and is the lowest quarter on quarter growth since Q2 2020, flash data from HDB indicated on Tuesday (Jul 1). It is also the first time since Q2 2020 that resale prices increased by less than 1 per cent, said Huttons Asia's senior director of data analytics Lee Sze Teck. Transaction volumes of resale flats stood at 6,981 units as at Jun 29, down 5 per cent from the same period the previous year. The increase was due to lower supply of resale flats for sale, which capped activities, said Lee. However, resale volume was up 5.9 per cent on quarter. Lee noted that activities picked up in the HDB resale market in Q2 due to seasonal factors and the absence of Build-To-Order (BTO) or Sale of Balance Flats (SBF) exercises. HDB said: 'Singapore's GDP growth for 2025 is expected to moderate from last year. Against this backdrop of slowing economic growth and increasing headwinds arising from escalating global trade conflicts, there are also early signs of moderating labour demand.' In July, HDB will launch about 5,500 BTO flats in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands. It will also conduct a SBF exercise, offering about 3,000 flats. Together with the 5,590 SBF flats launched in February 2025, the total SBF supply this year will exceed 8,500 flats.
Business Times
29-06-2025
- Business
- Business Times
Orchid Country Club, Science Park sites among plots rezoned for housing
[SINGAPORE] Three sprawling golf club sites and five Buona Vista business park plots are among parcels of land that have been rezoned for housing in the new Draft Master Plan 2025 (DMP2025). Unveiled on Wednesday (Jun 25), the DMP2025 charts Singapore's development in the next 10 to 15 years, with a review done every five years. Key planning priorities outlined in the blueprint's latest iteration include carving out new residential neighbourhoods to meet demand, as well as retooling the city-state's regional hubs and industrial estates for an evolving economy. Analysts highlighted the rezoning of existing golf courses Orchid Country Club in Yishun and Warren Golf & Country Club in Choa Chu Kang, where leases end in 2030. Marina Bay Golf Course, which closed its doors in July 2024 after its lease expired, has also been earmarked for residential use. ' More than 10,000 private and public homes could be built at the Orchid Country Club location, which overlooks the Seletar Reservoir. ' — Lee Sze Teck, Huttons Asia senior director of data analytics Several plots in the research and development and technology clusters in Media Circle and Science Park, previously zoned for business parks, are also being prepped for residential development. Catherine He, head of research at Colliers Singapore, said these plans align with the government's goal to meet Singapore's housing needs and make 'the highest use of land to benefit the most number of residents, as opposed to just select groups'. 'Land scarcity means underutilised sites, like golf courses or low-density areas, are prime candidates for rezoning,' she said. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Being plum sites near work hubs such as the Central Business District (CBD), one-north, Buona Vista and the National University of Singapore, and with the potential for waterfront living, these 'would probably be in high demand by homebuyers'. Rezoning business park land is also ideal for Singapore's bifurcated market, said He. Business parks that are older and farther out have not performed as well as newer ones, and those in the city fringe have underutilised space. Huttons Asia senior director of data analytics Lee Sze Teck reckons that more than 10,000 private and public homes could be built at the Orchid Country Club location, which overlooks the Seletar Reservoir. The Marina Bay Golf Course site – sitting beside the Founders' Memorial – could yield an iconic public housing precinct similar to Pinnacle @ Duxton and another 10,000 homes in a prime area. In Buona Vista, three business park sites in the Media Circle location along Ayer Rajah Crescent have been rezoned from business park use to residential with commercial on the first floor. These are on top of the four land parcels that were rezoned from business park use to housing in May last year. One was a plot of land opposite Infinite Studios in one-north, that was proposed for residential with commercial use on the first floor, with a plot ratio of 3.7. Another two Dover area sites at Portsdown Road and Portsdown Avenue were proposed for residential with commercial use, with one subject to detailed planning and the other with a plot ratio of 4.3. A fourth parcel in the vicinity was also proposed for pure residential use. PropNex chief executive Ismail Gafoor pointed out that the provision of more commercial space in the Media Circle location in the DMP2025 will offer more amenities to future residents. Not far from Media Circle, two sites in Singapore Science Park 2 that were reserved for business parks have also been rezoned to residential use. One is a large parcel along South Buona Vista Road, opposite Kent Ridge Park. The other smaller plot is just across Zehnder Road. Gafoor said this was in line with the ongoing rejuvenation of Singapore Science Park, and follows the launch of CapitaLand Development's (CLD) 99-year leasehold LyndenWoods condominium – the area's first residential project. In an interview with The Business Times on Wednesday, CLD (Singapore) CEO Ronald Tay said LyndenWood's launch over the weekend kick-starts the second phase of Singapore Science Park's rejuvenation. The aim is to create a 50,000-strong vibrant work-live-play community, with another one or two residential projects in the pipeline. 'When the whole (estate) is fully rejuvenated, it will be around 75 per cent business park, about 20 per cent residential and the rest commercial retail,' said Tay. Previously, the area was fully zoned for business park use. He added that such residential and commercial opportunities could emerge beyond Singapore Science Park, given CapitaLand's ecosystem and CLD's expertise in building integrated developments. 'There are potential opportunities in places such as Changi as well, which is also a business park. A lot of them also need serious rejuvenation... and they are already in our land bank.' Turning underutilised business parks to residential use will help to optimise land use while making the area more lively, said Colliers' He, especially in the evenings and weekends. ' There are potential opportunities in places such as Changi as well, which is also a business park. A lot of them also need serious rejuvenation... and they are already in our land bank. ' — CapitaLand Development (Singapore) CEO Ronald Tay Alan Cheong, Savills Singapore executive director for research and consultancy, pointed out that since business parks had limited uses, only a few industries would qualify for it, posing a concentration risk for this type of real estate. 'A sudden blowout in the funding for certain tech sectors, the contraction in technology cycles and/or the rapid emergence of foreign competition for certain uses (could lead) to greater demand volatility than, say, office or residential uses,' said Cheong. This can already be seen in business parks throughout the island, with many having heightened vacancies. 'The insertion of residential and white sites into such (business park) zones would reduce that risk,' he said. Cheong noted that some companies may relocate to the area if more high-quality offices are developed there, with rents being significantly lower than those in the CBD. 'The provision of more residential developments would enhance the attractiveness of locating there for multinational tenants, who have a sizable workforce on Employment Passes.' Catering to demand In the south, a massive site in Bukit Merah has been rezoned to residential use, from being a reserve site with undetermined use. The parcel, bounded by Telok Blangah Road and Alexandra Road, includes the art enclave Gillman Barracks and the Academy of Singapore Teachers campus. In March 2024, then minister for national development Desmond Lee had said at his ministry's Committee of Supply debate that the Gillman Barracks area may be turned into a residential neighbourhood after 2030. Industry experts predicted that demand for homes will likely be robust. The last Build-To-Order sales exercise in the Telok Blangah area was in May 2021, and saw an application rate of 23.3. Further south, part of Keppel Distripark has been rezoned for residential use. It was previously a reserve site. The plot, which sits next to the upcoming Keppel MRT station, is likely part of the government's Greater Southern Waterfront initiative, said PropNex's Gafoor. In his 2019 National Day Rally, then prime minister Lee Hsien Loong said the mega waterfront development would be double the size of Punggol town, with private and public housing. With Keppel Distripark closing by 2027 and Keppel MRT station opening in 2026, Lee from Huttons Asia predicts that the first plot to be released for redevelopment will be as early as 2028. More than 20,000 new homes may be built on the site, he added.
Yahoo
24-06-2025
- Business
- Yahoo
URA launches residential sites for sale in Dorset Road, Upper Thomson Road, Telok Blangah Road
SINGAPORE – The Urban Redevelopment Authority (URA) on June 24 released three residential sites in Dorset Road, Upper Thomson Road (Parcel A) and Telok Blangah Road for sale under the H1 2025 Government Land Sales (GLS) programme. The three sites together can yield around 1,765 private homes. The site location area at Dorset Road is 10,399 sq m, with a maximum gross floor area (GFA) of 36,397 sq m and can yield around 425 residential units. As for the Upper Thomson Road (Parcel A) site, its size is 24,421.9 sq m and has a maximum GFA of 53,729 sq m. It can yield around 595 residential units. The Telok Blangah Road site's location area size is 13,688.9 sq m with a maximum GFA of 64,338 sq m, and can yield around 745 residential units. All three sites have a lease period of 99 years, and form part of the 5,030 residential units to be released via the confirmed list of the GLS programme for the first half of 2025. Mr Mark Yip, chief executive officer of Huttons Asia, said the Dorset Road site may see around three bidders and a top bid of $950 to $1,050 per square foot per plot ratio (psf ppr), thanks to its city fringe location within walking distance of Farrer Park MRT station. 'This area usually sees more boutique projects and there is strong demand for bigger projects. The last major project in the area, Piccadilly Grand sold 77 per cent of its units on launch weekend, reflecting strong interest from residential property buyers for both bigger projects and the area,' he added. He also said that the Upper Thomson Road (Parcel A) site may attract up to three bidders and a top bid between $900 and $950 psf ppr. As for the site in Telok Blangah Road, it could attract a top bid of $1,200 to $1,300 psf ppr, from four to six bidders, according to OrangeTee CEO Justin Quek. It is the first site to be launched for sale in the Greater Southern Waterfront, a transformation project for Singapore, that is part of the 120km southern coastline announced during the 2024 National Day Rally. Additionally, it is the first GLS site in Telok Blangah in 35 years. 'The project will form around 25 per cent of the private housing supply to be built in this area, resulting in limited remaining upcoming private developments at the former Keppel Golf Course site,' explained Mr Quek. The tender for the Dorset Road site will close at noon on Oct 9. As for the Upper Thomson Road (Parcel A) and Telok Blangah Road sites, their tenders will close at the same time on Oct 23 and Nov 4, respectively. URA said on June 24 that 4,725 private residential units will be launched via the second half of 2025 confirmed list, bringing the total confirmed list supply for 2025 to close to 10,000 units. THE BUSINESS TIMES Source: The Straits Times © SPH Media Limited. Permission required for reproduction Discover how to enjoy other premium articles here
