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Yahoo
30-04-2025
- Business
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Apac records US$36.3 bil in 1Q2025 commercial real estate investment: JLL
Data compiled by JLL indicates that Apac commercial real estate investments totalled US$36.3 billion ($47.7 billion) last quarter, rising 20% y-o-y (Picture: Samuel Isaac Chua/The Edge Singapore) Commercial real estate investment in Asia Pacific (Apac) has hit a new first-quarter high since the 2022 rate hike cycle, according to research by real estate consulting firm JLL. Data compiled by the company indicates that Apac commercial investments totalled US$36.3 billion ($47.7 billion) last quarter, rising 20% y-o-y. This is the sixth consecutive quarter of y-o-y growth, says JLL. 'The continued growth in Asia Pacific commercial real estate investment is a testament to the region's strong fundamentals and attractiveness to global capital," adds Stuart Crow, CEO, Asia Pacific Capital Markets, JLL. The investment volume in 1Q2025 was supported by US$8.6 billion in cross-border investments. This represents a growth of 152% y-o-y and the highest 1Q Apac cross-border volumes since 2019, according to JLL. Read also: Singapore's real estate market remains 'resilient' despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers Japan was the highest contributor to 1Q2025 investment volumes at US$13.7 billion, reflecting a spike of 20% y-o-y. South Korea came in second with US$6.8 billion in investments (up 58% y-o-y), followed by Australia at US$3.9 billion (up 30% y-o-y). Meanwhile, Singapore posted US$2.2 billion in 1Q2025 commercial investments, rising 16% y-o-y. Looking ahead, Crow views that tariff-induced market volatility may result in a temporary pause on large deal activity. However, he expects investors with a long-term horizon to continue investing in Apac commercial real estate, which remains relatively insulated from short-term fluctuations. 'We continue to be of the opinion that the Apac region will be a net beneficiary of cross-border capital flows,' he says. Still, Apac countries are expected to be detrimentally impacted by US tariffs, with US-export reliant markets such as Vietnam, Malaysia and South Korea expected to be hit the hardest. Amid lower growth expectations and recession fears, leasing and investment across all commercial real estate sectors could be affected, says JLL. Pamela Ambler, JLL's head of investor intelligence for Apac, notes that US-reliant markets in Asia may face depreciation pressures ahead due to the weakening of the US dollar brought about by a pessimistic US growth outlook. Ambler adds that such pressures could have a knock-on effect in the real estate market, making assets cheaper for regional and global investors investing with US dollars. 3% q-o-q drop in investment deals in 1Q2025: Colliers Real estate investment sales fall 31.8% in 2023 amid tepid market: Knight Frank $4 billion of investments recorded in 1Q2023; lowest quarterly volume since 4Q2020: Colliers En Bloc Calculator, Find Out If Your Condo Will Be The Next en-bloc HDB Resale Flats Up For Sale, Affordable Units Available
Yahoo
25-03-2025
- Business
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What's fuelling Singapore's private housing demand?
February saw the highest developer sales for the month in 13 years (Photo: Samuel Isaac Chua/EdgeProp Singapore) Singapore grants citizenship to about 22,000 individuals annually, said Senior Minister Lee Hsien Loong at the Teck Ghee Citizenship Ceremony on March 9. 'Immigration is essential — even existential — for Singapore's survival,' he emphasised. CHART: SINGAPORE DEPARTMENT OF STATISTICS, SKY SEAH OF NUS BUSINESS SCHOOL, DEPARTMENT OF REAL ESTATE Amid the strong housing demand witnessed since late last year, a key question arises: Are new citizens contributing to this surge? According to Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield, foreigners must first obtain Singapore permanent resident (PR) status and hold it for at least two years before becoming eligible for citizenship. Currently, Singapore PRs pay an additional buyer's stamp duty (ABSD) of 5% when purchasing their first home. 'The ABSD of 5% is relatively manageable,' says Wong. He believes that most PRs intending to buy a home would have done so upon obtaining PR status rather than waiting to secure citizenship — unless they plan to purchase a landed property, which is restricted to Singapore citizens. Read also: Sky Seah: The shift in focus to user experience and human aspects of real estate Singaporeans accounted for 92.4% of new home buyers, PRs made up 6.9%, and foreigners recorded just 11 transactions (0.7%) in February (Photo: Hong Leong Holdings) February saw the highest developer sales for the month in 13 years, notes Tricia Song, CBRE head of research for Singapore and Southeast Asia. Singaporeans accounted for 92.4% of new home buyers, PRs made up 6.9%, and foreigners recorded just 11 transactions (0.7%), according to Lee Sze Teck, senior director of data analytics at Huttons Asia. Lee also noted that the combined new home sales for the first two months of this year — totalling 2,658 units — marked the strongest start-of-the-year sales since 2013. 'Robust local demand remains a key driver of Singapore's resilient housing market,' says Chia Siew Chuin, head of residential research at JLL Singapore. Chia attributes this strong demand to local buyers' preference for homeownership. 'Singapore's cultural emphasis on owning property, coupled with the widespread perception of real estate as a reliable long-term store of value, reinforces this demand — even amid global market fluctuations,' she explains. According to the Department of Statistics, Singapore's homeownership rate rose to 90.8% in 2024, up from 89.7% the previous year. Meanwhile, the proportion of HDB dwellers declined slightly from 77.8% in 2023 to 77.4% in 2024, reflecting a trend of more residents upgrading from public housing to private property. Read also: Kheng Leong's 32 Gilstead: One of just two new projects launched in the CCR in 2Q2024 CHARTS: SINGAPORE DEPARTMENT OF STATISTICS, SKY SEAH OF NUS BUSINESS SCHOOL, DEPARTMENT OF REAL ESTATE 'Household growth reflects housing demand, driven by adult population growth or rising headship rates,' says Sky Seah, a senior lecturer in the Department of Real Estate at the National University of Singapore (NUS) Business School. According to Seah, the annual growth in the number of households — also known as net household formation — serves as an indicator of overall housing demand. Between 2009 and 2024, net household formation fluctuated significantly, ranging from as low as 200 households per year to as high as 47,100. 'However, on average, the y-o-y percentage change in household formation stands at about 1.85%,' she estimates. Data from the Department of Statistics shows that the number of new citizens in Singapore was about 25,200 in 2024, a slight increase from 23,472 in the previous year. In 2022, the figure stood at 23,082. Over the past 16 years, the number of new citizens has remained relatively stable. Meanwhile, the number of new permanent residents (PRs) was about 35,000 in 2024, similar to the 34,500 recorded in both 2023 and 2022. Apart from a pandemic-related dip to 27,470 in 2020, the annual number of new PRs ranged between 29,850 and 33,435 from 2012 to contrast, Singapore's adult resident population — defined as residents aged 20 and above — has shown a greater variation, ranging from a high of 74,754 in 2009 to a low of about 30,000 in 2020. 'If we exclude the pandemic's impact in 2021, post-pandemic adult population growth has mainly come from non-residents,' says Seah. 'This is likely the key driver of rising rental demand and increased interest from property investors.'Another indicator of housing demand is the 'headship rate' — the proportion of adults who head their own households. This metric reflects the choices adults make, such as establishing their own households, living with roommates or remaining with their families. Read also: NUS real estate survey points to improving market sentiment among industry leaders Over the years, the headship rate has fluctuated between 39% and just over 43%. While the headship rate has been steadily increasing since 2012, it has plateaued since 2020, hovering at an average of 42.5%, notes Seah. When broken down by age group, the headship rate for adults under 35 and aged 35 to 49 has declined for the past three years, notes contrast, the most significant increase has been among individuals aged 65 and above, where the proportion of those heading their own households has risen to 52% — or one in every two households, according to Seah. These ageing households contributed to strong housing demand, influenced by independent living, returning grown children, and asset-rich seniors adjusting their housing needs, Seah observes. 'With high homeownership rates, older individuals may tap into real estate equity, shaping future housing trends,' she says. 'Their growing role underscores long-term housing demand shifts.'If population growth is primarily driven by an increase in the non-resident population — and given that foreigners are subject to a 60% ABSD — this would likely lead to stronger demand for rental housing, at least in the short term. Despite the recent increase in housing supply, which has softened rents, the demand for housing as an investment asset remains strong, says Seah. Over the past 20 years, household formation in Singapore has remained relatively stable. However, housing demand is also influenced by other factors such as unemployment levels, salaries, government subsidies, inflation rate, economic growth and mortgage rates. Singapore's unemployment rate has remained low, fluctuating between 2% and 3% over the past decade, Seah notes. While median household income has steadily increased, inflation and mortgage rates are projected to trend downward globally. She adds that the declining headship rates among younger households may indicate growing affordability challenges for millennials. Meanwhile, 'asset-rich older households may continue to fuel market demand and exert considerable influence', Seah adds. Homebuying demand in the CCR is now predominantly driven by affluent locals and PRs who continue to see value in owning such properties (Photo: Samuel Isaac Chua/EdgeProp Singapore) JLL's Chia highlights that the persistent rise in housing prices remains a major concern, with affordability continuing to be a pressing issue for many buyers. 'The government's focus on market stability and affordability could lead to the introduction of cooling measures if prices rise too rapidly, which would impact overall sales activity and price trends,' she warns. While many new project launches in early 2025 were in the Outside Central Region (OCR) and are almost sold out, sales momentum may slow in the latter half of the year, Cushman & Wakefield's Wong notes. This is because the project launch pipeline is shifting toward more developments in the Rest of Central Region (RCR) and Core Central Region (CCR), where prices tend to be higher, he observes. 'Although underlying demand for private homes remains steady, supported by low unemployment rates and healthy household balance sheets, persistent high interest rates and global economic uncertainty are likely to moderate demand,' says Wong. 'However, projects that offer strong value — whether through attractive pricing or prime locations — are expected to continue performing well.' At the same time, the CCR is facing distinct challenges following the implementation of the 60% ABSD for foreign buyers in April 2023. Prior to these measures, foreign buyers accounted for 15.8% of CCR non-landed sales transactions in 1Q2023, JLL's Chia notes. However, following the new regulations, foreign participation dropped dramatically, hovering between just 3.7% and 6.6% per quarter in 2024. 'Consequently, homebuying demand in the CCR is now predominantly driven by affluent locals and PRs who continue to see value in owning such properties,' she says. See Also: Singapore Property for Sale & Rent, Latest Property News, Advanced Analytics Tools New Launch Condo & Landed Property in Singapore (COMPLETE list & updates) Sky Seah: The shift in focus to user experience and human aspects of real estate Kheng Leong's 32 Gilstead: One of just two new projects launched in the CCR in 2Q2024 NUS real estate survey points to improving market sentiment among industry leaders En Bloc Calculator, Find Out If Your Condo Will Be The Next en-bloc HDB Resale Flats Up For Sale, Affordable Units Available
Yahoo
06-03-2025
- Business
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Developers given extension on ABSD remission timelines for large en bloc sites and complex projects
Projects where the extension would apply include en bloc redevelopments yielding at least 700 units upon completion; and if the redevelopment has at least 1.5 times the number of homes of the existing development (Photo: Samuel Isaac Chua/EdgeProp Singapore) The Ministry of National Development (MND) announced revisions to the Additional Buyer's Stamp Duty (ABSD) regime for licensed housing developers, which will take effect on March 6. Developers will be given an extension of six to 12 months on the ABSD remission timeline for large en bloc sites and complex projects. Projects where the extension would apply include en bloc redevelopments yielding at least 700 units upon completion and if the redevelopment has at least 1.5 times the number of homes of the existing development. Other projects include those with complex technical or instructional requirements, such as projects integrated with major public transport facilities. Read also: OPINION: Can the market absorb the supply from this year's GLS sites? Two other categories included are projects approved under the Strategic Development Incentive (SDI) scheme and projects aiming to achieve higher productivity targets through the adoption of new construction technologies, methodologies or practices. Projects that fall under any of the four categories are set to receive a six-month extension, while projects that meet the criteria of more than one category will be granted a one-year extension. These changes are expected to apply to all residential land acquired on or after March 6. Licensed housing developers purchasing residential redevelopment sites are currently subjected to 5% ABSD upfront, which is non-remittable, and another 35% ABSD, which is remittable when the developer completes and sells all the units in the project within the five-year timeframe. The latest revisions come on the back of changes announced in February last year, which offered a lower clawback rate for residential developments with at least 90% of units sold. "Such extensions will give developers more flexibility and may help to mitigate development risks to some extent, as they have a bit more time to sell units, particularly for mega projects," says PropNex Realty CEO Ismail Gafoor. Lee Sze Teck, senior director of data analytics at Huttons Asia, says the ABSD revisions will "give a much-needed boost to the en bloc market, in particular, bigger en bloc projects." Read also: US buyers to lead foreign demand in Singapore for third straight year While the proposed policy change will likely be appreciated, Christine Sun, chief researcher and strategist at OrangeTee Group, adds: "Developers may still face challenges despite the deadline extension as there are other considerations. For example, the success rate of en bloc sales will depend on the willingness of buyers and sellers to negotiate prices." Tay Liam Hiap, managing director of capital markets and investment sales at ERA, says that it could be "an opportune time" for older projects, such as Braddell View and Pine Grove, which are projects with expansive land areas, to explore en bloc opportunities. These projects may yield some 2,000 new homes, which could take more time to sell. "In such cases, the extension of six to 12 months may not be sufficient for developers to sell out their projects," adds Tay. Meanwhile, Gafoor adds that the policy change may not "spark a revival in the en bloc market" and expects developers to continue to be cautious due to the "high cost of redevelopment, ample oncoming private housing supply, and potential policy risk". Looking ahead, the Real Estate Developers' Association of Singapore (Redas) believes another adjustment authorities can consider is a waiver of ABSD for developers who have sold at least 95% of units, instead of 100%. The remaining 5% are typically larger units that have a longer sale period, they add, due to a limited buyer pool since the introduction of 60% ABSD on foreign buyers. 'We hope that the government can continue fine-tuning measures that differentiate among the varying idiosyncratic challenges posed by developments of different scale, composition, typology and buyer profile, to ensure continued sustainable and dynamic urban redevelopment,' concludes Redas. Read also: HDB pilots new open concept 'white flats' in October BTO exercise See Also: Singapore Property for Sale & Rent, Latest Property News, Advanced Analytics Tools New Launch Condo & Landed Property in Singapore (COMPLETE list & updates) OPINION: Can the market absorb the supply from this year's GLS sites? US buyers to lead foreign demand in Singapore for third straight year HDB pilots new open concept 'white flats' in October BTO exercise En Bloc Calculator, Find Out If Your Condo Will Be The Next en-bloc HDB Resale Flats Up For Sale, Affordable Units Available
Yahoo
20-02-2025
- Business
- Yahoo
Budget 2025: Over 50,000 new HDB flats to be launched in the next three years
The flats will be launched in estates including Woodlands, Bayshore and Mount Pleasant (Picture: Samuel Isaac Chua/The Edge Singapore) More than 50,000 new HDB flats will be launched over the next three years, announced Prime Minister and Finance Minister Lawrence Wong in his Budget speech on Feb 18. The flats will be launched in housing estates islandwide, including in Woodlands, Bayshore and Mount Pleasant. The pipeline comes as part of the government's efforts to keep public housing affordable and accessible, he says. Last year, more than eight in 10 first-timer families that collected keys to their BTO flats were able to service their mortgage loans with little or zero out-of-pocket cash. 'To put it in perspective, this is a level of affordability that residents in other major cities like London, Sydney and Hong Kong do not enjoy,' Prime Minister Wong adds. Addressing concerns among homebuyers on higher prices of resale flats, Prime Minister Wong says the government's cooling and supply measures will eventually help to stabilise the resale market. Meanwhile, HDB will be launching 3,800 flats this year with a waiting time of less than three years, providing options for buyers seeking flats with shorter waiting times. Read also: Budget 2025 allocations for R&D infrastructure, enterprise growth could give a boost to industrial and office real estate demand: JLL In addition, a second Sale of Balance Flats (SBF) exercise will be held later this year, following the first one in February where 5,590 SBF units were launched for sale, making it the largest SBF exercise to date. Eugene Lim, key executive officer at ERA Singapore, notes that the announcement of the 50,000 flats, while not new, reaffirms the government's intentions to boost BTO supply to meet housing demand. HDB had already announced in January that 50,000 flats will be launched between 2025 to 2027, contributing to the planned total of 130,000 flats launched from 2021 to 2027. Nevertheless, while the higher BTO supply could help ease demand, Lim believes it will take 'some time' for HDB price growth to slow to a more sustainable price. 'While these initiatives are welcome, this ramp-up in BTO supply may not be able to meet immediate housing needs,' he says, adding that the flats are also likely to be launched in phases. Check out the latest listings for HDB properties 3 million for a 13-year old five-room flat in Toa Payoh En Bloc Calculator, Find Out If Your Condo Will Be The Next en-bloc HDB Resale Flats Up For Sale, Affordable Units Available
