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Straits Times
13-05-2025
- Business
- Straits Times
URA puts up second Chuan Grove site for sale; firm bids expected amid steady demand in the area
The 14,514.3 sq m site, which is on a 99-year lease, can accommodate 505 new condominium units. PHOTO: SCREENGRAB FROM GOOGLE MAPS URA puts up second Chuan Grove site for sale; firm bids expected amid steady demand in the area SINGAPORE – A second Chuan Grove residential site has been released for sale under the 2025 Government Land Sales (GLS) programme. The 14,514.3 sq m site, which is on a 99-year lease, can accommodate 505 new condominium units. It is expected to attract firm interest amid steady demand for housing in the area. The release of this plot follows the December 2024 tender launch for a similarly sized adjacent site in the Lorong Chuan area. That tender, expected to yield an estimated 555 units, closes on July 8. Strong sales The two Chuan Grove plots are on the market after a launch in the area recorded strong sales in November 2024. Kingsford Development moved nearly 700 of the 916 units at its Chuan Park project over the launch weekend, making for a 76 per cent take-up rate at an average price of $2,579 per sq ft. OrangeTee & Tie chief executive Justin Quek said: 'With only 168 units left as of March 2025, based on URA monthly developers' sale data, there will be limited new housing options, which may translate to higher demand for future private land sites.' Market watchers expect the latest plot to draw three to six bidders, and a top bid of between $1,000 and $1,350 per sq ft per plot ratio (psf ppr). In 2022, Kingsford acquired the old Chuan Park condo in a collective sale for $890 million, at about $1,256 psf ppr. Before the November 2024 launch of Chuan Park, the last new project in District 19 was Bartley Vue in 2019, noted ERA Singapore chief executive Marcus Chu. Taking in the two sites now being tendered by the Government, 'including Chuan Park, the estate will likely see almost 2,000 units launched in two years', he said. Still, the project would be of relatively lower risk, given the low level of unsold units in the area, said Huttons Asia chief executive Mark Yip. He pointed out that the outside central region (OCR) has 4,361 unsold units in the market as at the first quarter of 2025 – the lowest number since the fourth quarter of 2022. 'With an annual average sales of 3,019 units in the OCR in the last five years, this unsold supply can be easily absorbed by the market in slightly more than a year,' Mr Yip said. OrangeTee's Mr Quek expects demand in the Lorong Chuan area to be supported by home owners looking to upgrade from Housing Board flats or downsize from landed properties. He noted a 'large catchment' of HDB upgraders in the nearby areas of Serangoon, Bishan and Ang Mo Kio, as well as many landed homes in Serangoon Gardens and Lorong Chuan. Desirable location The location is also desirable, thanks to its proximity to educational institutions and Lorong Chuan MRT station, said chief research officer Nicholas Mak. 'The current economic outlook, which would affect property market sentiment, is murky due to the ever-changing tariff stance of the US Trump administration. But by the time this new condominium is ready to be launched in 2027, there could be more clarity on the economic front.' The tender for the Chuan Grove site closes on Sept 4. THE BUSINESS TIMES Join ST's WhatsApp Channel and get the latest news and must-reads.
Yahoo
29-01-2025
- Business
- Yahoo
Singapore's luxury condo resale market stalls in 2024 as foreign buyer demand plummets
SINGAPORE, Jan 29 — Singapore's luxury condominium resale market has slowed significantly in 2024, with property agents struggling to find buyers despite a high number of listings. A search on property portal PropertyGuru shows over 200 luxury condo listings priced above S$10 million (RM32.6 million) in the Orchard area, with multiple agents marketing the same properties, according to a report in The Straits Times today. The decline in transactions is largely attributed to the 60 per cent additional buyer's stamp duty (ABSD) imposed on foreign buyers in April 2023, along with a limited new supply of high-end condominiums. In 2024, only 21 luxury condo units in the Core Central Region (CCR) were resold at prices above S$10 million, down from 36 in 2023 and 56 in 2022. In contrast, 100 such units were resold in 2021. A record-breaking transaction in 2020 saw a penthouse unit at Wallich Residence sell for S$62 million. The most expensive luxury condo resale in 2024 was a 5,801 sq ft unit at Eden Residences Capitol, which fetched S$19.75 million, according to Urban Redevelopment Authority (URA) Realis data. This was a significant drop from 2023, when the priciest deal was a S$32 million penthouse at Goodwood Residence, reportedly purchased by a Singapore permanent resident (PR) of Chinese nationality. Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said: 'The decrease in (the number of) transactions can primarily be attributed to a decline in demand from foreign buyers, who have been significantly affected by the 60 per cent ABSD.' PRs pay 5 per cent ABSD on their first property, while Singapore citizens are subject to 20 per cent ABSD only on their second property. Sun also noted that a lack of new supply contributed to the market stagnation. 'Last year, the number of new luxury homes released to the market was significantly limited, particularly due to the scarcity of launches in the CCR,' she said. Property agents do not anticipate a market rebound in the near future. Nicole Teo, deputy branch associate director of OrangeTee & Tie, said: 'Foreign buyers had always been the main group buying luxury condominiums, followed by PRs, and then the few Singaporeans. A Singaporean with S$20 million to invest in a property would rather buy a good landed property than a condo.' Foreigners are restricted from purchasing landed homes in Singapore unless they obtain permission from the Land Dealings Approval Unit, with Sentosa Cove being the exception. Teo added: 'Foreigners can't blow that sum on a landed property (except in Sentosa), so the high-net-worth foreigner would spend it on a luxury condo instead — but that was before the hefty ABSD imposed on foreigners.' Luxury condos remain a market largely driven by investors, but arranging property viewings is challenging, according to Stefanie Wong of Singapore Realtors Inc. 'With tenants in place, arranging viewings can take weeks. Sometimes (it takes) three to six months, or even up to a year, to sell a unit,' she said. Wong is currently marketing two luxury units at The Ritz-Carlton Residences, including a penthouse listed at S$39 million and a four-bedroom unit priced below valuation at S$10.9 million. Alex Low of PropNex Realty, who specialises in Sentosa Cove homes, said sales in the enclave are now primarily driven by Singaporeans, with a smaller group of foreign buyers exempt from the 60 per cent ABSD. Buyers from the US, Iceland, Liechtenstein, Norway, and Switzerland are not required to pay ABSD on their first residential property in Singapore. In 2024, 132 condos were resold in Sentosa, with 62 per cent of transactions coming from The Residences at W Singapore Sentosa Cove. Analysts suggest this increase in activity may reflect a spillover from city fringe demand, where prices remain higher than those in Sentosa. Low noted that many luxury condo listings on the mainland, particularly those above S$10 million, have remained unsold for months. 'Owners of such high-value properties typically have strong holding power and are not in a rush to sell. However, the pool of high-net-worth investors is limited, especially since rental yields are not particularly attractive,' he said. 'Potential buyers also hesitate because these properties could be challenging to sell in the future.' Despite the slowdown, Sun highlighted some positive trends. URA Realis data showed that median rents of non-landed properties in the CCR (excluding executive condominiums) increased slightly, from S$5.50 per square foot per month (psf pm) in July-September 2024 to S$5.57 psf pm in the last three months of the year. However, rents remain below the S$5.68 psf pm recorded in late 2023. 'This slight improvement in the final quarter of 2024 could have been driven by tenants who have shifted from city fringe to prime areas, as rents in the CCR are still lower than they were a year ago,' Sun said. 'It is possible that some investors will continue to buy properties for rental investment as the rental recovery may continue this year.'
