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Independent Singapore
4 days ago
- Business
- Independent Singapore
Two speeds, one city: Singapore's divergent property markets
Resale flat prices in Singapore's public Housing and Development Board (HDB) market are expected to moderate, but the island's 'two-speed' private property market presents a mixed scenario. The good news comes from the government — and the less upbeat from international media. HDB resale prices are likely to ease as more flats reach their minimum occupation period (MOP) starting next year, Minister for National Development Chee Hong Tat said on Wednesday (May 28) in his first media comments since assuming his role. The five-year MOP is the minimum time new flat owners must wait before selling. This coming wave of resale flats, combined with the steady launch of Build-to-Order (BTO) flats — 19,600 planned for 2025, and 102,300 launched between 2021 and 2025 — is expected to relieve upward pressure on prices. Signs of this cooling are already apparent. HDB data for Q1 2025 showed resale prices rising just 1.6 per cent — the slowest increase since Q4 2023. Public resale transactions rose 2.6 per cent to 6,590 in Q1 2025, up from 6,424 in the previous quarter. Year-on-year, however, sales were down 6.8 per cent. According to a February report by property agency OrangeTee, the number of flats reaching MOP will fall for a third straight year — from 30,920 in 2022 to 6,974 in 2025. That's the lowest in 11 years, with only 5,301 units hitting MOP in 2014. Still, analysts believe a sharp spike in resale prices is 'unlikely', thanks to the continued supply of BTO flats. In contrast, Singapore's private housing sector is running at two speeds. While demand for mass-market suburban homes remains strong among locals, the high-end condo segment — once buoyed by foreign money — is more sluggish. A split market Bloomberg columnist Andy Mukherjee notes this divergence began two years ago, when Singapore doubled stamp duties on foreign buyers to 60%. The move cooled the once red-hot luxury segment, especially among Chinese investors. As a result, luxury condo prices rose just 19% over five years, while mass-market homes jumped 46%. Still, new private home sales fell slightly in April, dipping to 663 units from 729 in March. Much of this is due to the heavy supply of high-end city-centre units, which lack the pull of more affordable suburban offerings. Indeed, earlier in the year, launches in the east and northeast posted striking take-up rates of 90% to 95%. Fuelled by HDB gains The resilience of suburban private housing is closely tied to the thriving HDB resale market, according to Mukherjee. Prices of HDB flats have outpaced private homes since the pandemic, enabling many Singaporeans to unlock capital gains after meeting their five-year MOP. These gains are often reinvested in private property. Forecasts differ — Savills projects up to 7% growth in private home prices this year, while Bloomberg Intelligence suggests a more modest 3%. But underlying demand remains strong. Singapore's low unemployment (just over 2%) and a 20% rise in median household income since the pandemic support this trend, says Mukherjee. Buyers are now accustomed to paying over S$2,000 ($1,550) per square foot even in outlying areas, particularly where infrastructure and amenities are improving. One-bedroom units outside the central zone are in high demand — a sign of a healthy appetite for investment and rental properties. Featured image by Depositphotos (for illustration purposes only)
Straits Times
15-05-2025
- Business
- Straits Times
New private home sales fall in April as trade tensions hit Singapore's economic outlook
SINGAPORE - April's new private home sales fell short of expectations despite a surge in the number of new launched units, as home buyers turned cautious amid ongoing global trade frictions and geopolitical tensions that have dampened Singapore's economic outlook. New private home sales slipped to 663 units in April from 729 in March, also on a dearth of major mass-market new launches, but more than double the 301 units sold in April 2024. Excluding executive condominiums (ECs), 1,344 new units were launched in April, compared with just 555 units in March, and up from a mere 278 units launched in April 2024. Including ECs, new home sales plunged to 759 in April from 1,510 in March, while the number of new units launched rose to 1,344 units from 1,315 over the same period. April's three new projects – One Marina Gardens, Bloomsbury Residences in Media Circle and the ultra-luxe 21 Anderson in Tanglin – are situated in city fringe and prime locations where launch prices tend to be higher, according to OrangeTee's chief researcher and strategist Christine Sun. The median price of the 937 unit-One Marina Gardens was at $2,948 psf, while that of the 358 unit-Bloomsbury Residences was at $2,454, and 21 Anderson, which has 19 units, was at $4,811. This is well above the median price of a major suburban new launch – Lentor Central Residences at $2213 psf in March, Ms Sun noted. Ms Tricia Song, CBRE's head of research for Singapore and South-east Asia, noted that 'most new launches for the rest of 2025 will be from the prime and city fringe submarkets, which have higher price points and may not generate the same kind of volumes as that from the attractively priced and voluminous suburban projects in first quarter 2025'. The momentum in private home price growth could 'plateau in the next few quarters on a weaker economic outlook' as Singapore's 2025 GDP growth forecast was slashed to between zero and 2 per cent growth from an initial 1 per cent to 3 per cent growth as at April 14, she added. As such, going forward, developers may choose to wait out the heightened economic uncertainty and delay their launches until there is more clarity on global trade and the economic outlook, Ms Song said. 'Despite One Marina Gardens' relatively attractive price point compared to existing launches in the Downtown Core and high-floor units offering views of Gardens by the Bay, the project was met with a lukewarm response,' she said. About 41 per cent or 384 units were moved in April, compared with earlier major launches in the first quarter in 2025 , which recorded an average sell-through rate of 68 per cent over their launch weekends, she added. Although the take-up rates for April's new launches paled in comparison with some projects in the first quarter, Ms Wong Siew Ying, PropNex head of research and content, said One Marina Gardens' sales have been commendable, in light of trade war tensions and as the project is not near schools or HDB estates, where there are a ready pool of HDB upgraders. ERA Singapore chief executive Marcus Chu noted that One Marina Gardens and Bloomsbury Residences are situated in precincts that attract more investor interest rather than owner-occupiers, while 21 Anderson catered to high-net-worth individuals seeking freehold, large-format units. In April, the priciest new homes sold were all at 21 Anderson, PropNex noted. 'Three units were transacted at around $21 million to $23 million each, making them one of the highest-valued new condo deals in 2025 – just after a unit at Park Nova that fetched nearly $38.9 million ($6,593 psf) in January. Of the three units sold, two were purchased by Singapore PRs and one by a Singaporean buyer,' Ms Wong noted. Mr Lee Sze Teck, senior director of data analytics at Huttons Asia, pointed out that one unit at 21 Anderson 'achieved a selling price of $5,127 psf, reflecting the confidence that ultra high-net-worth individuals have in Singapore's status as a safe haven in times of instability.' Also supporting the private housing market are strong household balance sheets and still-low unsold inventory, which stood at 18,125 units, excluding ECs, in the first quarter. This compared with 29,149 unsold, uncompleted units in first quarter 2020 when the Covid-19 pandemic struck, and at around 43,000 units in 2008 amid the global financial crisis. Join ST's WhatsApp Channel and get the latest news and must-reads.
Independent Singapore
07-05-2025
- Business
- Independent Singapore
Singapore's HDB resale flat price growth continues to slow at 1.6% in Q1 2025
SINGAPORE: HDB resale flat prices in Singapore rose by 1.6% in the first quarter of 2025 (Q1 2025), slowing for the second straight quarter from the 2.6% growth in Q4 2024 and below the 1.8% quarterly increase recorded in Q4 2023, Singapore Business Review reported, citing the latest report by OrangeTee & Tie. The report showed that while prices continued to climb for the 20th quarter in a row, the pace of growth has slowed down. Analysts pointed to a growing price resistance among buyers, especially among those mid-tier and lower-end segments. The price growth was particularly slower for 4-room and 5-room flats, which recorded quarter-on-quarter increases of 1.9% and 2.1%, respectively, both below previous levels. Two-room flats also saw a dip, with a 1.5% rise, down from 2.3% in the previous quarter. Meanwhile, 3-room flats saw a slight increase of 2.2%, while executive flats experienced a modest rise of 1.4%, up from 0.1% in the previous quarter. Across the island, fewer towns posted price increases. Only 19 towns saw price growth, down from 20 previously, while the number of towns with falling prices went up to seven. The Central Area led the declines, with a sharp 18.5% drop, followed by Geylang at 7%. In terms of transactions, 6,590 resale flats were sold in the first three months of 2025. This was a 2.6% rise from Q4 2024, but year-on-year, sales fell by 6.8%—the lowest first-quarter performance since the pandemic hit in Q1 2020. The report attributed softer demand partly to heightened competition from newly launched Build-To-Order (BTO) and Sale of Balance Flats (SBF). Over 10,000 new flats were released under these exercises in February alone. Still, demand for premium resale unit flats remains strong, with a record 348 million-dollar flats sold in Q1 2025, up from just 285 in Q4 2024. The most expensive flat sold was a DBSS unit in Toa Payoh Lorong 1A that went for S$1.6 million. The number of flats sold for S$800,000 or more also increased to 1,183 units, with Tampines, Toa Payoh, Bukit Merah, Kallang/Whampoa, and Queenstown being the top areas for high-value transactions, which analysts said are likely driven by cash-rich private property owners looking to downgrade. Looking ahead, OrangeTee forecasts resale price growth of 4% to 6% and sales volume between 25,000 and 27,000 units for the year, a decline from 2024's total of 28,986 transactions. /TISG Read also: First Mount Pleasant BTO project to go on sale in October as part of 19,600 new flats Featured image by Depositphotos (for illustration purposes only)
