Latest news with #NicholasMak
CNA
29-05-2025
- Business
- CNA
CNA938 Rewind - Will we see more million dollar flats as the MOP period for many new estates approaches?
CNA938 Rewind Singaporeans could expect a moderation of resale flat prices, when more new flats meet their minimum occupation period starting next year. Lance Alexander and Daniel Martin speak more with Nicholas Mak, Chief Research Officer,
CNA
29-05-2025
- Business
- CNA
CNA938 Rewind - Can Singaporeans expect moderated resale flat prices in 2026?
CNA938 Rewind Singaporeans could expect a moderation of resale flat prices, when more new flats meet their minimum occupation period starting next year. Lance Alexander and Daniel Martin speak more with Nicholas Mak, Chief Research Officer,
Business Times
18-05-2025
- Business
- Business Times
Fewer property flippers in condo sub-sale market, but deals in Q1 still ‘highly profitable'
[SINGAPORE] Sub-sale volumes in Singapore's private housing market – where buyers can 'flip' a new unit before the project is completed – are on the decline, with speculative buying dampened by cooling measures and wider economic uncertainty now exacerbated by tariff-induced volatility. Even so, the majority of such transactions remained highly profitable. Sellers earned a median gross gain of S$257,000, data from local property portal showed. According to statistics from URA Realis, there were 292 sub-sale transactions in the first quarter of 2025 – down 26 per cent from a recent peak of 393 units in Q4 2023. The past year also saw a gradual decline in sub-sale volumes since Q4 2023. Quarterly numbers are, nevertheless, well above levels seen during the pandemic years of 2019 to 2021, when the new launch pipeline dried up and sub-sales averaged just 82 units per quarter. A sub-sale is recorded when a buyer resells a property bought directly from the developer, before the project is completed. It is typically seen as a proxy for speculative buying behaviour, and is a barometer of market confidence. On an annual basis, sub-sales rose by 4 per cent year on year to 1,315 transactions in 2024. In comparison, 2023 saw a 77 per cent jump, from 713 to 1,265 units. The surge followed pandemic-related construction delays, which prolonged project completions and drove buyers to the sub-sale market. 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 However, this was still a far cry from the 5,283 transactions recorded in 2007, before cooling measures such as the Additional Buyer's Stamp Duty, Seller's Stamp Duty (SSD) and loan curbs, were introduced. These measures were rolled out between 2009 and 2013 to curb market speculation, following the global financial crisis of 2008. The number of sub-sales as a proportion of all non-landed private home sales (excluding executive condos) has also waned over time. In Q1 2025, just 4.3 per cent of all deals were sub-sales – less than half of the 13-year high in Q4 2023, at 9.8 per cent. Sub-sale levels hit an all-time high of 35.3 per cent of all sales in Q2 1995, well before the introduction of SSD. Driven by hot projects chief research officer Nicholas Mak attributed the recent easing of sub-sales to fresh cooling measures in 2023, which saw steep hikes in stamp duty rates curbing demand, and the elevated interest rate environment then. Activity in the sub-sale market is often driven by demand for hot-selling projects in popular locations. Mogul's analysis shows that between 2020 and 2025, two projects in particular – Gem Residences in Toa Payoh and Riverfront Residences in Hougang – had high sub-sale activity. The 578-unit Gem Residences had 149 sub-sale deals, 25.8 per of units in the project, while Riverfront Residences saw 379 sub-sale deals – also 25.8 per cent of its 1,472 units. While new home sales slumped after cooling measures kicked in 2023, primary sales picked up in the later part of 2024 with the launch of several high-profile condominiums. During the last quarter of 2024, Chuan Park sold over 60 per cent of its units at an average of S$2,579 per square foot (psf) when it launched in November, while Emerald of Katong moved nearly 99 per cent of its units at S$2,621 psf that same month. New projects marketed in Q1 this year were pitched at benchmark prices – notably The Orie in Toa Payoh at S$2,704 psf and Parktown Residences in Tampines at S$2,360 psf. Both projects saw strong sales and are now about 90 per cent sold. But with new project pricing at current levels, the potential for price appreciation has flattened, Mak noted. Seller's stamp duties also erode gains – those selling new units within a year of purchase are subject to the highest SSD rate of 12 per cent. The rate tapers to 8 per cent for units held for one to two years, and 4 per cent for those held for two to three years. New condo buyers now have less of a 'profit motivation' to sell their unit as a sub-sale, said Mak. 'Instead, they may decide to wait and hold to see if prices rise any further. Some of them have only one bullet, so they want to sell (the unit) at the most optimal price.' Making a pretty penny Still, the vast majority of sub-sale transactions in the past year were profitable, Mak noted. Just around 0.5 per cent of deals were unprofitable, and even fewer at 0.2 per cent simply broke even. Sellers also saw larger gross gains by both quantum and percentage. Mogul's analysis does not include taxes, fees, stamp duties (such as the SSD), agent's commission and mortgage interest payments. From Q1 2024 to Q1 2025, the median profit for a sub-sale was S$257,000 with a median holding period of just under four years. This was nearly 30 per cent higher than that of deals done between Q3 2020 to Q4 2023, with sellers raking in a median of S$200,000 in profit with about the same holding period. The median gross profit for a sub-sale was also 20.2 per cent over the last year, with annualised profits of 4.6 per cent. This was slightly higher than the 18.6 per cent median gross profit and 4.3 per cent annualised profit of the earlier period. The higher gains in the face of dwindling sub-sale deals were mainly due to the higher value of transactions, said Mak. Though there were more transactions in the earlier 2020 to 2023 period, the median price of a sub-sale then was S$1.33 million, versus S$1.54 million in 2024. Data from also showed that there were nine 'double sub-sales' – that is, a sub-sale that is subsequently sold as another sub-sale – since Q3 2020. Of the nine deals, all but one made a profit, Mak noted. He pointed out that the tally of 'double flips' used to be significantly higher – with more than 600 of such transactions every year – before SSD was introduced in February 2010. Despite the restrictions in place, sub-sales can be fairly profitable if the property is held for more than three years so that it is not subject to SSD. Investors can 'enjoy tax-free capital gain' that way, said Mak. The median profit made from a sub-sale transaction from Q3 2020 to Q1 2025 was S$220,000, or 19.2 per cent of the property's acquisition price. But with sentiment fragile amid tariff anxiety and hiring freezes across various industries, Mak reckoned that sub-sale volumes will gradually dwindle for the rest of the year. Sub-sale activity in the short term could still be supported by a relatively tight inventory of unsold new private homes, he said. Unsold stock of uncompleted private homes stood at just 7,144 units in Q1. This could be cleared in just over a year, based on developers' sales of 6,469 units in 2024.
AsiaOne
10-05-2025
- Business
- AsiaOne
5 former schools in Bedok, Tampines and Pasir Ris set to be replaced by new homes, Singapore News
Five former schools in the east that have moved or been merged with other schools are set to be replaced by new homes. Proposed amendments to the Urban Redevelopment Authority's (URA) masterplan that were published on April 24 and May 7 showed that land occupied by the five schools have been earmarked for new homes. They are the former Bedok Town Secondary, Temasek Primary and Temasek Secondary in Bedok, Qiaonan Primary in Tampines and Siglap Secondary in Pasir Ris. The HDB is in the midst of demolishing three of the schools, and has permission from the URA to tear down the remaining two. Other proposed amendments to the URA Master Plan 2019 – a statutory document – showed that new homes are being planned in areas such as Sin Ming and Toa Payoh. One of the proposed amendments is to rezone a site near Bedok MRT station from educational to residential use. The site, at the intersection of New Upper Changi Road and Bedok South Road, was formerly occupied by Temasek Primary and Secondary schools. Both schools have moved to other sites in Bedok South and Upper East Coast. The HDB received permission from URA to demolish the two schools in February 2023, but has yet to tear them down, according to checks by The Straits Times. The site is about 31,500 sq m, and has been assigned a gross plot ratio of 2.8. Gross plot ratios determine the maximum permissible floor area of developments. Property analysts said the site can yield 1,000 to 1,100 condominium units, or 700 to 820 public flats. Mr Nicholas Mak, chief research officer at property search portal said, however, that condo developers might not be keen on a site so close to the industrial area in Bedok South Road, which potential homebuyers might not like. Temasek Primary used the site from 1980 to 2000 before moving to Bedok South Avenue 3, while Temasek Secondary was there from 1980 to 1999 before moving to 600 Upper East Coast Road. About 1km away at 232 Bedok North Street 3, the HDB is demolishing the former Bedok Town Secondary School, which merged with Ping Yi Secondary in 2016. A noticeboard at the site states that demolition works are slated for completion in the second quarter of 2025. Based on a proposed amendment to URA's masterplan, about 22,000 sq m of the school's site will be rezoned for residential use, with a plot ratio of 2.5. The remainder of the site has been earmarked for health and medical care use. Analysts said the area for residential use can yield 450 to 520 flats, or 630 to 700 condo units. Ms Christine Sun, real estate company OrangeTee Group's chief researcher and strategist, said public housing is likely to be built on the site, so that residents can have easy access to the planned medical facility next door. Mr Mak, who noted that the medical facility could be a small community hospital, hospice, or nursing home, agreed with her assessment, as 'private residential property buyers are less inclined to purchase homes near such healthcare facilities'. At 15 Tampines Street 11, the HDB recently finished demolishing Qiaonan Primary School, and is carrying out drainage and other land works at the site. Qiaonan was formed by a merger between Kiau Nam School and Pulau Tekong Primary School in 1985 – the year that it started operating in Tampines. In 2015, Qiaonan merged with Griffiths Primary School to form Angsana Primary, and the merged school took up residence at Griffiths' location in Tampines Street 22. About 14,000 sq m of the site formerly occupied by Qiaonan has been earmarked for housing, with a plot ratio of 2.0, based on a proposed masterplan amendment published by URA on May 7. The remainder of the site is set to be used for health and medical care. For reasons similar to the Bedok Town Secondary plot, Mr Mak and Ms Sun believe that this plot in Tampines will be used for public housing. Mr Mak said the site can yield 125 to 150 flats, while Ms Sun gave a higher estimate of 200 to 250 flats. Farther north, the HDB is demolishing the former Siglap Secondary School at 10 Pasir Ris Drive 10. Demolition works are slated for completion in the first quarter of 2026. Siglap Secondary School used the Pasir Ris campus from 1998 until its merger with Coral Secondary in 2017 to form Meridian Secondary at 31 Pasir Ris Street 51. A proposed amendment to the masterplan shows that Siglap Secondary's site, which is about 30,500 sq m, is slated for housing use with a plot ratio of 3.2. Analysts said that the site can yield 700 to 900 flats, or 1,000 to 1,200 condo units. Mr Mak noted that the proposed plot ratio of 3.2 is the highest among other housing plots in the vicinity. He said it indicates that the Government may be planning to build flats here, as housing sites developed by HDB are typically the most densely developed, with the highest plot ratios within residential towns. Meanwhile, analysts expect that a site in Sin Ming that is undeveloped will be used for private housing. The site, which has an area of about 4,000 sq m, is opposite Ai Tong School in Sin Ming Avenue and is around 200m from Bright Hill MRT station. A proposed amendment to URA's masterplan published on May 7 assigned the site a plot ratio of 2.8. Mr Mak said the site is too small to be developed by HDB, which will not be able to reap economies of scale, while Ms Sun noted that the site's size means ancillary facilities that typically come with public housing, such as playgrounds or childcare facilities, cannot be built. They said the site can yield 120 to 150 condo units. In Toa Payoh, the authorities are also preparing a relatively small site for housing development. The site, now an open-air carpark bounded by Lorong 4 Toa Payoh and several HDB blocks, has an area of about 7,500 sq m. In a proposed amendment published on May 7, the URA assigned it a plot ratio of 3.4, up from the current 3.0. Mr Mak said it is most probable that new flats will be built on the site, given that it is surrounded by HDB blocks – some more than five decades old. He said the site can yield 210 to 260 flats, while Ms Sun estimated that 200 to 250 flats can be built there. She said that the rezoning indicates the authorities are trying to maximise the use of land in central Toa Payoh, which is already densely populated. Besides new homes, latest proposed amendments to URA's masterplan published by the authority on May 9 showed that a new nursing home will be built in Dover, while a 'health and medical care development' is slated to be built in Eunos Avenue 5, near Paya Lebar MRT station. URA said the latter facility will serve residents in the region. It will add to other medical facilities in the area, such as Eunos Polyclinic, which opened in 2022. This article was first published in The Straits Times. Permission required for reproduction.
Straits Times
09-05-2025
- Business
- Straits Times
5 former schools in Bedok, Tampines and Pasir Ris set to be replaced by new homes
The former Temasek Primary School and Temasek Secondary School seen on May 8. ST PHOTO: ARIFFIN JAMAR 5 former schools in Bedok, Tampines and Pasir Ris set to be replaced by new homes SINGAPORE – Five former schools in the east that have moved or been merged with other schools are set to be replaced by new homes. Proposed amendments to the Urban Redevelopment Authority's (URA) masterplan that were published on April 24 and May 7 showed that land occupied by the five schools have been earmarked for new homes. They are the former Bedok Town Secondary, Temasek Primary and Temasek Secondary in Bedok, Qiaonan Primary in Tampines and Siglap Secondary in Pasir Ris. The HDB is in the midst of demolishing three of the schools, and has permission from the URA to tear down the remaining two. Other proposed amendments to the URA Master Plan 2019 – a statutory document – showed that new homes are being planned in areas such as Sin Ming and Toa Payoh. One of the proposed amendments is to rezone a site near Bedok MRT station from educational to residential use. The site, at the intersection of New Upper Changi Road and Bedok South Road, was formerly occupied by Temasek Primary and Secondary schools. Both schools have moved to other sites in Bedok South and Upper East Coast. The HDB received permission from URA to demolish the two schools in February 2023, but has yet to tear them down, according to checks by The Straits Times. The site is about 31,500 sq m, and has been assigned a gross plot ratio of 2.8. Gross plot ratios determine the maximum permissible floor area of developments. Property analysts said the site can yield 1,000 to 1,100 condominium units, or 700 to 820 public flats. Mr Nicholas Mak, chief research officer at property search portal said, however, that condo developers might not be keen on a site so close to the industrial area in Bedok South Road, which potential homebuyers might not like. Temasek Primary used the site from 1980 to 2000 before moving to Bedok South Avenue 3, while Temasek Secondary was there from 1980 to 1999 before moving to 600 Upper East Coast Road. About 1km away at 232 Bedok North Street 3, the HDB is demolishing the former Bedok Town Secondary School, which merged with Ping Yi Secondary in 2016. A noticeboard at the site states that demolition works are slated for completion in the second quarter of 2025. The former Bedok Town Secondary School being demolished on May 9. ST PHOTO: NG KENG GENE Based on a proposed amendment to URA's masterplan, about 22,000 sq m of the school's site will be rezoned for residential use, with a plot ratio of 2.5. The remainder of the site has been earmarked for health and medical care use. Analysts said the area for residential use can yield 450 to 520 flats, or 630 to 700 condo units. Ms Christine Sun, real estate company OrangeTee Group's chief researcher and strategist, said public housing is likely to be built on the site, so that residents can have easy access to the planned medical facility next door. Mr Mak, who noted that the medical facility could be a small community hospital, hospice, or nursing home, agreed with her assessment, as 'private residential property buyers are less inclined to purchase homes near such healthcare facilities'. At 15 Tampines Street 11, the HDB recently finished demolishing Qiaonan Primary School, and is carrying out drainage and other land works at the site. Works being done at the site formerly occupied by Qiaonan Primary School. ST PHOTO: NG KENG GENE Qiaonan was formed by a merger between Kiau Nam School and Pulau Tekong Primary School in 1985 – the year that it started operating in Tampines. In 2015, Qiaonan merged with Griffiths Primary School to form Angsana Primary, and the merged school took up residence at Griffiths' location in Tampines Street 22. About 14,000 sq m of the site formerly occupied by Qiaonan has been earmarked for housing, with a plot ratio of 2.0, based on a proposed masterplan amendment published by URA on May 7. The remainder of the site is set to be used for health and medical care. For reasons similar to the Bedok Town Secondary plot, Mr Mak and Ms Sun believe that this plot in Tampines will be used for public housing. Mr Mak said the site can yield 125 to 150 flats, while Ms Sun gave a higher estimate of 200 to 250 flats. Farther north, the HDB is demolishing the former Siglap Secondary School at 10 Pasir Ris Drive 10. Demolition works are slated for completion in the first quarter of 2026. The HDB is currently demolishing the former Siglap Secondary School in Pasir Ris. ST PHOTO: NG KENG GENE Siglap Secondary School used the Pasir Ris campus from 1998 until its merger with Coral Secondary in 2017 to form Meridian Secondary at 31 Pasir Ris Street 51. A proposed amendment to the masterplan shows that Siglap Secondary's site, which is about 30,500 sq m, is slated for housing use with a plot ratio of 3.2. Analysts said that the site can yield 700 to 900 flats, or 1,000 to 1,200 condo units. Mr Mak noted that the proposed plot ratio of 3.2 is the highest among other housing plots in the vicinity. He said it indicates that the Government may be planning to build flats here, as housing sites developed by HDB are typically the most densely developed, with the highest plot ratios within residential towns. Meanwhile, analysts expect that a site in Sin Ming that is undeveloped will be used for private housing. The site, which has an area of about 4,000 sq m, is opposite Ai Tong School in Sin Ming Avenue and is around 200m from Bright Hill MRT station. A proposed amendment to URA's masterplan published on May 7 assigned the site a plot ratio of 2.8. Mr Mak said the site is too small to be developed by HDB, which will not be able to reap economies of scale, while Ms Sun noted that the site's size means ancillary facilities that typically come with public housing , such as playgrounds or childcare facilities, cannot be built. They said the site can yield 120 to 150 condo units. In Toa Payoh, the authorities are also preparing a relatively small site for housing development. The site, now an open-air carpark bounded by Lorong 4 Toa Payoh and several HDB blocks, has an area of about 7,500 sq m. The open-air carpark in Lorong 4 Toa Payoh that has been earmarked for new homes is surrounded by HDB blocks. ST PHOTO: NG KENG GENE In a proposed amendment published on May 7, the URA assigned it a plot ratio of 3.4, up from the current 3.0. Mr Mak said it is most probable that new flats will be built on the site, given that it is surrounded by HDB blocks – some more than five decades old. He said the site can yield 210 to 260 flats, while Ms Sun estimated that 200 to 250 flats can be built there. She said that the rezoning indicates the authorities are trying to maximise the use of land in central Toa Payoh, which is already densely populated. Besides new homes, latest proposed amendments to URA's masterplan published by the authority on May 9 showed that a new nursing home will be built in Dover, while a 'health and medical care development' is slated to be built in Eunos Avenue 5, near Paya Lebar MRT station. URA said the latter facility will serve residents in the region. It will add to other medical facilities in the area, such as Eunos Polyclinic, which opened in 2022. Ng Keng Gene is a correspondent at The Straits Times, reporting on issues relating to land use, urban planning and heritage. Join ST's WhatsApp Channel and get the latest news and must-reads.
