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Pasir Ris 8 hits the high notes at above $2,000 psf for OCR condo launch selling nearly 80% in one Weekend

7/24/2021

Pasir Ris 8 comprises commercial and residential condo development integrated with a bus interchange, a polyclinic and a town plaza, will offer seamless connection to public transport services and amenities for residents

On a quiet weekend of 24 July 2021 (Saturday) under tight Covid safety measures, Allgreen properties & Kerry Properties launched the sales preview of Pasir Ris 8 from 9am in the morning till around 10pm at night with OTPs being issued throughout the night.

The one day sales preview of Pasir Ris 8 saw buyers making up mainly of Singaporeans and PRs snapping up nearly 80% of the residential units in this highly sought after rare fully integrated condominium development with commercial retail mall, polyclinic situated directly below plus the ultimate convenience of being integrated with MRT station and Bus Interchange at your doorstep. Buyers saw prices above $2,000 psf for the 2 bedder units at Pasir Ris 8.

Pasir Ris 8 sits on a precious OCR white site next to Pasir Ris MRT Station successfully clinched by a joint venture between Allgreen Properties and Kerry Properties (part of the Kuok Group of Companies controlled by Malaysian tycoon Robert Kuok) at nearly $700 million working out to $684.48 per square foot per plot ratio (psf ppr) based on the total gross floor area of 1.02 million sq ft on 14 Dec 2018.

Allgreen Properties and Kerry Properties sold 415 units (85% of total units in Pasir Ris 8) at an average price of estimated $1,650 psf on 24 July (Sat). Seeing strong buying response, the developers jointly decided to increase the price around 5 times throughout the day to price their remaining units up to $2,116 psf for home buyers to own a unit at the rare fully integrated condo in Pasir Ris Central.

Kiwi Lim from Huttons Asia believe that the timing of this Pasir Ris 8 preview couldn't be more perfect as it was just a day after news of the high land bid price clinched for the condo GLS plot at Lentor Central & record breaking EC GLS at Tampines Street 62 were announced.

Allgreen Properties and Kerry Properties may have also realised the value of Pasir Ris 8 as a fully integrated developments in Singapore especially one that comprise of managed commercial shopping mall and residential development integrated with a bus interchange, a polyclinic and town plaza offering seamless connection to public transport services and amenities for residents. Such developments are considered rare and are in high demand by buyers who work from home & desire convenience.

Record Breaking Prices Achieved For Tampines St 62 (Parcel A) Exec Condo GLS & Lentor Central GLS

7/22/2021

The Urban Redevelopment Authority (URA) and the Housing & Development Board (HDB) released two sites at Lentor Central and Tampines Street 62 (Parcel A) for sale on 15 April 2021 under the first half 2021 (1H2021) Government Land Sales (GLS) Programme.

The URA site at Lentor Central earmarked for a residential with commercial at 1st storey development and the HDB Executive Condominium site at Tampines Street 62 (Parcel A) are launched for sale under the Confirmed List. Together, these two sites can yield about 1195 residential units.

The tender for the two land parcels at Lentor Central and Tampines Street 62 (Parcel A) will close at 12 noon on 22 Jul 2021 at URA and HDB respectively.

Today, the tender results for the two land parcels at Lentor Central and Tampines Street 62 (Parcel A) revealed record breaking OCR GLS bidded prices for both plots of land.

Qingjian Realty and Santarli Construction is the top bidder for the EC site at Tampines St 62. This land parcel can build about 590 units and the land price works out to $658.93 psf ppr. It is a new record land price for a EC site. This may indicate a selling price of $1,3xx psf for this new executive condo that may be launched in end of 2022 or early 2023.

Guocoland is the top bidder for the GLS site at Lentor Central at $1,204 psf ppr. This piece of and can build 605 residential units with commercial shops on the 1st level. This may indicate a selling price of $2,2xx psf for its condo units when it's launched in 2022 next year.

Kiwi Lim from Huttons Asia believe this is due to strong local demand for property from younger professional singles or couples as working from home created in them a desire to live apart from their parents and have their own personal space. Developers are also seeing a decline in their inventory of unsold condo units and are currently short of land banks in their possession.

Upcoming new condo launches in 2023 - confirmed list under H2 2021 GLS programme

6/12/2021

CONFIRMED RESIDENTIAL AND EC SITES FOR 2H 2021 GLS PROGRAMME - SRX & URA

The Government announced on 10 June (Thursday) 2021, the Government Land Sales (GLS) Programme for the second half of 2021 (2H2021), and the acceptance of an application from a developer to put up the White site at Marina View for sale by public tender.

The GLS Programme for 2H2021 comprises four Confirmed List sites and nine Reserve List sites.

The Confirmed List comprises four private residential sites [including one Executive Condominium (EC) site] which can yield about 2,000 private residential units (including 375 EC units).

In addition, the Reserve List comprises six private residential sites (including one EC site), two White sites and one hotel site. These sites can yield about 4,860 private residential units (including 700 EC units), 90,000 sqm GFA of commercial space and 530 hotel rooms.

A site on the Reserve List System will be put up for sale if a developer's indicated minimum price in his application is acceptable to the Government. The price to trigger the Reserve List site is secret and not known to the developer beforehand and only if the price submitted by the developer matches the government's desired price, the government will consider putting it up for tender.

The Government will also consider launching a Reserve List site for sale if it has received sufficient market interest for the site. This is when more than one unrelated party has submitted a minimum price that is close to the Government's Reserve Price, within a reasonable period.

GLS residential site in Jalan Tembusu under the second half of the 2021 government land sales (GLS) programme

The Government has carefully calibrated the supply of private housing in the 2H2021 GLS Programme, taking into account several factors.

The unsold inventory of private housing units has declined over the past year amidst strong demand. Nonetheless, even as the economy is recovering from the recession in 2020, there are continued uncertainties in the economic and labour market conditions due to the ongoing COVID-19 situation globally and locally. On balance, the Government has decided to moderately increase the supply of private housing on the Confirmed List to 2,000 units for the 2H2021 GLS Programme, up from 1,605 units for the 1H2021 GLS Programme. The supply on the Reserve List also gives developers a good selection of sites to initiate for development.

GLS site in Lentor Hills Road (Parcel A) under the 2nd half of the 2021 government land sales (GLS) programme

The supply of private homes from confirmed sites under the Government Land Sales (GLS) programme for the second half of this year has been raised by 24.6 per cent to 2,000 units, up from 1,605 units for the first half of the year, in response to land-hungry developers and the dwindling unsold new home supply.

The Confirmed List comprises four private residential sites [including one Executive Condominium (EC) site] which can yield about 2,000 private residential units (including 375 EC units).
The Jalan Tembusu GLS site, which spans 1.95ha, is estimated to yield 640 units, has strong locational attributes, as it is near the upcoming Tanjong Katong MRT station, East Coast Park, and amenities along East Coast Road. Furthermore, several prominent schools are also located in the area such as Tanjong Katong Primary School, Tanjong Katong Secondary School, and Tanjong Katong Girls' School.

The GLS site at Lentor Hills Road (Parcel A) can yield about 595 units and has a site area of 1.71ha. It is located right next to the Lentor Central GLS site released earlier in April this year as well as the Lentor MRT station on the TEL. Residents will be two stops away from the Cross Island Line (CRL), four stops from the Circle Line (CCL), and six from the Downtown Line (DTL).

GLS site in Dairy Farm Walk under the 2nd half of the 2021 government land sales (GLS) programme

The Dairy Farm Walk GLS site is one of two sites moved from the Reserved List to the Confirmed List and can yield 385 units with a site area of 1.56ha. It is right next to the German European School Singapore as well as the Dairy Farm Nature Park. The closest MRT station is Hillview MRT on the DTL.

The EC site at Bukit Batok West Ave 8 will be near the Tengah Garden Walk EC site which was recently awarded to Taurus Property SG for $603 psf. The 99-year leasehold site can yield 375 units with a site area of 1.21ha. However, the site is expected to fetch lower bids as it's not near to an MRT station.

GLS executive condo site in Bukit Batok West Avenue 8 under the 2nd half of the 2021 government land sales (GLS) programme

As we continue our journey as a nation, land constraint is a challenge especially for a small island state like Singapore. In the past, we could build new homes on swathes of undeveloped open land. Now, after 55 years of building and development, there are far fewer of these, and it has become more challenging to balance competing uses for land.

In order to continue providing good homes for Singaporeans, we will have to recycle previously developed land, some in matured estates and some in prime locations, like the city centre and the Greater Southern Waterfront.

Kiwi Lim from Huttons Asia believe these few confirmed GLS land parcel sites are not enough to satisfy the current strong domestic demand for residential properties and may trigger the enbloc market possibly before the end of 2022 next year. Future condo launches from enbloc sales will naturally cost more as developers need to pay more to acquire the land from enbloc owners and foot additional costs to demolish and possibly top up lease for leasehold enblocs. This will inadvertently see prices of new condo projects climbing upwards in the near future.

OVERWHELMING DEMAND FOR $700K 4-ROOM BTOS IN TELOK BLANGAH AS BUYERS SEE ANOTHER PINNACLE AT DUXTON

5/31/2021

Only 70 four-room flats are on offer at Telok Blangah Beacon in the mature estate of Bukit Merah.PHOTO: HDB

Young aspiring HDB home owners made a rush for the four-room Build-To-Order (BTO) flats in Telok Blangah, contributing to one of the highest application rates in recent years.

Telok Blangah Beacon HDB BTO flats are the most expensive units in the Housing Board's sales exercise this month. Located in the mature estate of Bukit Merah, a whopping total of 3,124 applicants competed for the 70 units of 4-room flats put on offer by HDB in the Telok Blangah Beacon project as at 5pm on Monday, 31 May 2021. The last time a BTO project drew such strong competition was in August last year, when 334 four-room flats in Geylang drew almost 15 applicants for each unit.

For first-timer applicants, only one in more than 28 applicants will get a unit. Second-time applicants face even bleaker prospects, with more than 412 applicants vying for each available unit.

Kiwi Lim from Huttons Asia said the overwhelming response for Telok Blangah Beacon is expected due to its proximity to the future Greater Southern Waterfront similar to another HDB project in the CBD in Tanjong Pagar called The Pinnacle at Duxton launched in 2004.

"Prices for these Telok Blangah four-room flats, which are located within walking distance of Telok Blangah MRT station, range from $602,000 to $710,000 is considered attractive as it is very similar to how another HDB BTO project: The Pinnacle at Duxton was priced during its launch as the most expensive BTO project in 2004" said Kiwi. "Back then in 2004, the property market was very weak and Pinnacle at Duxton was priced above double the price of typical HDB BTO projects in Fernvale. However, today in 2021, global cities around the word are seeing a boom in their real estate market, including Singapore. If we consider the added advantage that such BTO projects at the doorstep of The Greater Southern Waterfront is expected to enjoy amazing upside potential from the government's massive future developments there, you will understand why so many are keen to lay their hands on it."

"I recall Pinnacle at Duxton buyers were ridiculed and laughed at by friends in 2004 for buying The Pinnacle at Duxton HDB BTO. This truly is a repeat"

Launched on 29 May 2004, The Pinnacle@Duxton is the tallest public-housing project in Singapore and also one of the priciest. The project is situated at the 25,163-square-metre Duxton Plain on Cantonment Road, the site where the Housing and Development Board (HDB) constructed the first two Tanjong Pagar rental blocks in 1963.

The Pinnacle@Duxton consists of seven 50-storey blocks comprising 1,848 flats. Among its unique features are 12 steel sky bridges that link all seven blocks on the 26th and 50th storeys, forming a continuous sky garden, as well as an 800-metre jogging track on the 26th floor.

The Pinnacle at Duxton showcased innovative design approach to high-density, high-rise public housing that would optimise land use while meeting the changing lifestyle needs and rising aspirations of residents.

The Pinnacle@Duxton is a 50-storey residential development in Singapore 's city center, next to the business district.[1] All seven connected towers are collectively the world's tallest public residential buildings, and featuring the two longest sky gardens ever built on skyscrapers, at 500m each.

The Pinnacle at Duxton is another HDB project that

is right beside the future Greater Southern Waterfront

In phase one of the launch on 29 May 2004, a total of 528 units in two blocks were offered for selection, with two flat types available: S1 (93 – 97 sqm) priced between S$289,200 and S$380,900 and S2 (105–108 sqm) ranging between S$345,100 and S$439,400. The HDB then offered all the 1,848 flats for public application after an astounding 3,149 applications were received during the initial launch.

The award-winning design; sky gardens; central locale; and convenient access to the Tanjong Pagar and Outram MRT stations, restaurants and supermarkets; as well as flexible layouts were factors that contributed to the Pinnacle’s immense appeal for prospective homeowners, in particular, young families and young urban professionals.

By the close of the launch in July 2004, close to 5,000 applications – more than double the number of flats available – were received by the HDB, enabling it to call for contractor bids for the construction of the Pinnacle under the built-to-order scheme.

View of the Greater Southern Waterfront from the 50th storey skybridge at The Pinnacle at Duxton.

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Extracted from Straits Times article on 31 May 2021

New 4 room BTO flats in Telok Blangah may cost almost $700k

5/29/2021

Minister for National Development Lawrence Wong mentioned in an interview on 2019 The Government is working out a new pricing model for future public housing in the Greater Southern Waterfront, in order to mitigate the so-called “lottery effect” of obtaining a subsidised flat in a prime area.

It seems the best way to mitigate the so called "lottery effect" is to price the upcoming HDB BTOs close to the resale pricing of the surrounding flats of prime districts. Higher construction costs due to the Covid pandemic could also have caused prices to increase (click to read the article below).

Situated along the future Greater Southern Waterfront, the Telok Blangah Beacon Bukit Merah May 2021 BTO project is the first launch in the area since 2013. Notable amenities nearby include Mount Faber Park and VivoCity, with Telok Blangah MRT station located within walking distance from the BTO project.

Only 175 BTO units comprising 3-room and 4-room flat types will be up for grabs as part of the May 2021 Telok Blangah Beacon Bukit Merah BTO launch. This means that buyers can expect very heavy competition.

5-room flats will not be offered. As such, larger families or buyers planning on one may want to consider the other May 2021 BTO launches at Tengah and Woodlands instead.

Residents can enjoy easy access to various shops and eateries at Telok Blangah Mall, as well as the nearby Telok Blangah Market. For more retail and food and beverage offerings, VivoCity will be only a short bus ride away.

Future Telok Blangah Beacon Bukit Merah BTO residents, e.g. working professionals can reach City Hall and Raffles Place easily by bus. Telok Blangah Beacon Bukit Merah BTO residents working nearby business districts such as Mapletree Business City and the future upcoming Greater Southern Waterfront will enjoy working closer to home.

Telok Blangah Mall, Telok Blangah Market, and Telok Blangah Food Center are all just a short walk away from the Telok Blangah Beacon Bukit Merah May 2021 BTO flats. Future Telok Blangah Beacon Bukit Merah BTO residents can take a 15-minute bus ride to VivoCity to enjoy endless retail and dining options. Alternatively, Alexandra Retail Centre is a 15-minute walk away, where families can access a supermarket, pharmacies, bakeries, and other retail amenities.

Nature lovers get to enjoy exploring attractions like Labrador Park, Mount Faber Park, and Telok Blangah Hill Park closer to home. Sentosa is also easily accessible for families, couples, and young children who want more recreational options. Most importantly, residents can look forward to the upcoming Greater Southern Waterfront, which promises new lifestyle and recreational opportunities as it takes shape over the next five to 10 years.

Given the prime location and attractive nearby developments in the pipeline, it is as expected that the prices for the Telok Blangah Beacon Bukit Merah BTO units do not come cheap. 3-room and 4-room flats start at $419,000 and $620,000 respectively and are the priciest of the May 2021 BTO launches.

As the Greater Southern Waterfront takes shape, flat owners in the area could potentially benefit from significant capital appreciation. Over the past year, resale prices for 3-room and 4-room flats went for as high as $375,000 and $478,000 respectively. The resale flat prices for this Bukit Merah BTO launch would probably exceed the above prices.

Kiwi Lim from Huttons Asia believe that if 4 room HDB flats in Telok Blangah is being priced around $655k, the prices of the HDB public housing units on the site of the current Keppel Club which is right in the Greater Southern Waterfront region may be priced much higher. He estimate that future HDB BTO flats at the former Keppel Club may possibly see prices above $750k for a 4-room BTO flat.

Kiwi believe prices of these upcoming BTOs near the Greater Southern Waterfront when compared to another iconic HDB project with towering 50-storey sky gardens overlooking the whole of Singapore situated at the doorstep to The Greater Southern Waterfront - The Pinnacle at Duxton which also enjoy the exclusivity of being right in the city at Tanjong Pagar look very very attractively priced (see below).

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URA's Reserve List Site along Dunman Road may yield more than 1,000 units when triggered

5/28/2021

The Dunman Road condo land parcel site is arguably the most attractive site on the Reserve List released by URA in 2019. The Dunman Road condo land parcel site enjoys close proximity to the Dakota MRT station, predominantly unblocked views of the East Coast and within minutes’ drive to town. It is also near good schools and the Sports Hub.

The Dunman Road condo land parcel site's larger land parcel size allows the developer to build an estimated 1,040 new condo units. Kiwi Lim from Huttons Asia believe that this large land parcel along Dunman Road will mainly attract large reputable developers with deep pockets or joint ventures between a few developers to trigger and bid for the Reserve Site.

The Dunman Road reserve land plot is near to reputable schools such as Kong Hwa School Tanjong Katong Primary School, Haig Girls’ School

The Dunman Road condo land parcel site is located along Dunman Road in District 15 and is less than 100m away from Datoka Circle Line Station (CC8) on the Circle Line, providing easy access to the city centre and other parts of Singapore. It is also conveniently linked to major roads and expressways such as East Coast Parkway (ECP) and Mountbatten Road.

Proximity to Schools and Amenities
The future Dunman Road new condo will enjoy close proximity to educational institutions such as Chung Cheng High School (Main), Broadrick Secondary School, Tanjong Katong Girls’ School and Tanjong Katong Secondary School. Amenities such as 51 Old Airport Road Food Centre, Katong Swimming Complex and Paya Lebar Square are also a short distance away.

The Dunman Road condo land parcel site is also close to amenities like Sheng Siong Hypermarket (Tanjong Katong), NTUC Fairprice (Geylang Lorong 38), and Giant (Tanjong Katong Complex). The closest shopping malls are Kinex Shopping Mall, City Plaza, and Joo Chiat Complex.

Future residents at this Dunman Road new condo will enjoy direct access to Geylang Park Connector that runs along Geylang River connecting seamlessly to Marina Reservoir and Gardens by the Bay.

District 15 has seen a very healthy pace in price appreciation over the past 15 years and the average price is now above $1,5xx psf. Data prepared by Kiwi Lim (Huttons)

A site on the Reserve List System will be put up for sale if a developer's indicated minimum price in his application is acceptable to the Government. The Government will also consider launching a Reserve List site for sale if it has received sufficient market interest for the site. This is when more than one unrelated party has submitted a minimum price that is close to the Government's Reserve Price, within a reasonable period.

As private property prices in Singapore post the steepest quarterly rise in pricing in almost 3 years after rising 2.9 per cent in the first quarter of 2021 from the fourth quarter of last year — the steepest jump since the second quarter of 2018, Kiwi Lim believe that the Dunman Road condo land parcel could possibly attract a top bid of around SGD1,150 psf ppr - potentially paving the way for a new benchmark pricing to be set for the area of possibly an average starting price of $2,150 psf taking into account higher constructions costs of 30% to 50% increase globally during the Covid pandemic.

At the current pace of price growth, a new peak may be formed by the second half of this year.

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Upcoming Ang Mo Kio Ave 1 condo may be priced from $2,000 psf onwards, Tengah EC from $1,300 psf - analysts

5/25/2021

A 99-year leasehold private housing site in Ang Mo Kio Avenue 1, sited opposite the Bishan-Ang Mo Kio Park, has drawn 15 bids at a state tender that closed on Tuesday.

URA and HDB launched two 99-year leasehold residential sites for sale at Ang Mo Kio Avenue 1 and Tengah Garden Walk, under the Confirmed List of 2H2020 government land sales (GLS) programme last year in Nov 2020.

The condo site at Ang Mo Kio Avenue 1, which is designated for condominium development, measures 136,480 sqft, with a maximum gross floor area (GFA) of 341,205 sqft. It is the latest GLS site in the Ang Mo Kio area in six years. The previous GLS site was the Lorong Puntong site, where Thomson Impressions now is, which was awarded in October 2014 for $173.6 million or $731 psf per plot ratio (ppr). Before that, the Ang Mo Kio Avenue 2/Ang Mo Kio Street 13 site, which was later developed as The Panorama, was successfully tendered for $550 million ($790 psf ppr) in January 2013.

The site in Ang Mo Kio Avenue 1, sited opposite the Bishan-Ang Mo Kio Park, has drawn 15 bids

These two GLS sites closed their bids today on 25 May 2021 at the site tender.

The 99-year leasehold condo in Ang Mo Kio Avenue 1, sited opposite the Bishan-Ang Mo Kio Park, has drawn 15 bids. The highest bid of S$381.38 million or nearly S$1,118 per square foot per plot ratio (psf ppr), came from a 60:20:20 joint venture between UOL Group, Singapore Land Group and Kheong Leong Company.

This was 6.3 per cent higher than the second highest bid of S$358.89 million or S$1,052 psf ppr from Titus Residential SG, a tie-up between City Developments Ltd (CDL) and MCL Land. Also bidding for the site was a tie-up between Far East Organization, Sino Group and Sekisui House, which offered S$353.33 million or S$1,036 psf ppr.

UOL plan to develop a 24-25 storey condo project of more than 370 units that will enjoy unblocked views of the Bishan-Ang Mo Kio Park, Lower Peirce Reservoir Park and Shangri-la Park landed housing estate. Apart from being in a popular residential town complete with strong amenities, the site will be able to ride on the nearby Mayflower MRT station, which is due to open this year. Good schools like CHIJ Saint Nicholas Girls' School and Ai Tong School are also in the vicinity.

The tender for the maiden executive condominium (EC) housing site in the Tengah estate in western Singapore for Tengah Garden Walk drew seven bids.

The GLS executive condominium (EC) site at Tengah Walk measures 237,032 sq ft. With 663,691 sq ft of maximum permissible GFA, with developers possibly building around 615 residential units.

The Tengah EC site is in a non-mature estate, allowing first-mover advantage when it enters the market.
The government has announced plans to turn Tengah into a smart and sustainable town, with green features and smart technologies. The emerging Jurong Innovation District advanced manufacturing hub in the west would also help to attract investments and create jobs in the area. The Tengah Garden Walk EC site would likely be served by the new Jurong Region Line which is slated to open progressively from 2026, and be near to Hong Kah and Tengah Plantation MRT Stations.

HDB has already launched built-to-order (BTO) flats for sale in several exercises at Tengah. When completed, Tengah is estimated to provide about 42,000 new homes across five residential districts.

Also closing on Tuesday 25 May 2021 was the tender for the maiden executive condominium (EC) housing site in the Tengah estate in western Singapore. The 99-year plot along Tengah Garden Walk drew seven bids.

The highest offer of S$400.32 million or S$603.17 psf ppr was from a tie-up between CDL and MCL Land; it was just a tad higher than the nearly S$400.2 million or S$602.99 psf ppr from the second highest bid, from CSC Land Group (Singapore). ECs are a public-private housing hybrid with initial buyer eligibility and resale conditions, which are completely lifted 10 years after the project has been completed. The tender for the Tengah EC site was conducted by the Housing & Development Board.

Real estate professional Kiwi Lim from Huttons Asia believe that with the higher construction costs of 30% to 50% globally in the market partly due to increased property demand arising from the Covid pandemic and taking into account the psf ppr prices of these bidded GLS land plots, the developers may launch the Ang Mo Kio Ave 1 condo project from $2,000 psf and the Tengah EC project from $1,300 psf.

Price trend for The Panorama - another condo in Ang Mo Kio along Ave 2 launched in 2014 and sold out soon after. Data from 2014 till May 2021 prepared by Kiwi Lim (Your Property Kiwi)

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From: Business Times article on Tue, 25 May 2021

Singaporeans taking advantage of Covid restrictions to buy luxury condos & properties in prime districts

5/12/2021

Singaporeans are buying luxury properties in prime districts as they take advantage of travel restrictions preventing foreigners from entering Singapore due to Covid travel restrictions. Foreign buyers of Singapore's properties declined to a 17-year low in 2020 last year as countries worldwide imposed travel restrictions and lockdowns deterring rich foreign buyers from coming to Singapore.

Kiwi Lim from Huttons Asia believe that Singaporeans who can afford luxury condos are enjoying this small window of opportunity to upgrade or add more luxury properties in prime districts in District 09 and District 10 as well as city area luxury condos before the cash rich foreigners come in to compete with them for these properties. Never before have we seen Singapore closing doors to foreigner buyers, this is a once in a lifetime chance where Singaporeans can buy without pressure from foreign buyers.

Luxury market buyers generally prefer to physically inspect the premises or visit a show-flat before making a purchase and since many overseas buyers were not able to travel to Singapore to view properties in person, it may have resulted in a dip in foreigner purchases in Singapore.

Foreigners contributed less than 5% of total property sales in Singapore in 2020, the lowest ever seen in Singapore's property market records in nearly 30 years. Singaporeans currently form the biggest proportion of buyers, according to government data. The contribution from Singaporeans and Singapore PRs accounted for more than 95% of property purchases in 2020 and 1st quarter of 2021.

Even when foreign buyers are generally out of Singapore's real estate scene, some of them still made the property news headlines when recently Park Nova's condo launch saw 7 ultra luxury apartments and penthouses sold for more than $160 million in just a few hours of launch.

Swire Properties recently also launched Eden and the entire luxury condo residential development was snapped up instantly by a Taiwanese family.

Fourth Avenue Residences is a luxury condo project in a private exclusive residential enclave in prime D10 that is only doorstep to Sixth Avenue MRT. Click to visit website & enjoy special VIP discounts valid until 31 May 2021

With more luxury homes slated to be launched in the coming months, sales of luxury homes could rise further. Singapore will continue to be one of the hot favourites among well-heeled investors and wealthy overseas buyers for trophy properties. Backed by the prospects of further price growth and a better leasing environment, foreign demand is expected to return gradually.

There were 10,024 private homes sold in the whole of 2020 more than the 9,912 units sold in 2019 pre-Covid. There were already 3,574 private homes sold in the first quarter of this year in 2021 surpassing the pre-pandemic levels of 2,476 units for each quarter on average in 2019 by 44.2 per cent. This may be partially driven by the pent-up demand caused by the circuit breaker last April and May when there was a partial lockdown.

With a brighter economic outlook in 2021, the positive momentum of the sales and price index could still continue into 2021. With buyers optimistic about a recovering economy, and assuming that no new measures are announced or there is no unexpected resurgence of coronavirus infections in the community that could unhinge demand, Singapore's property market may sell around 10,000 new launch condo units this year.

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Ultra high net worth foreigner buyers snap up latest condo launch: Park Nova in orchard above $5,000 psf

5/11/2021

A green enclave, rising above Orchard’s freehold land, Park Nova promises a tenure of exclusive residence surrounded by the beauty of nature.

Featuring its signature biophilic greeneries that encompass sunlit terraces, natural ventilation, and panoramic views of the city’s magnificent skyline, Park Nova breathes nature, bringing the charm of the outdoors into the comfort of home.

A leader in luxury hospitality and an expert in curating comfort, Shun Tak Holdings pioneers the concept of “smart new urban homes” by introducing nature into everyday city living. Imbued in a biophilic design philosophy specifically adapted to Singapore’s tropical climate, Park Nova condo stands as a living and breathing garden with thoughtfully designed outdoor spaces dedicated to every residence.

Park Nova's Biophilic design concept increased the living space's connectivity to the natural environment through the use of direct and indirect nature. Every spacious condo unit at Park Nova comes with a regular layout. The ergonomically shaped balcony and planter is filled with lush greenery to simulate the shape of a butterfly. Residents can enjoy the unobstructed Southern, Eastern or Western views from the condo's living, dining and bedrooms.

On May 7, sales at Park Nova, Shun Tak Holdings’ luxury condo in Singapore’s Orchard Boulevard-Tomlinson area began at 2pm and within a few hours, two penthouses located on the top two floors of the 21-storey building were sold for close to $60 million. Besides the two penthouses, five other typical units have also been sold for more than $100 million in sales. In total, more than 160 million in sales were clinched for the 7 ultra luxury condo units.

The two biggest five-bedroom penthouses in the 54-unit luxury Park Nova condo fetched $34.438 million and $26.026 million respectively. The biggest penthouse of 5,899 sq ft garnered interest from more than one party and almost had to be sold via balloting. However, one party prevailed and emerged the eventual buyer at $34.438 million or $5,838 psf.

The transaction price of $26.026 million for the second biggest penthouse of 4,499 sq ft, worked out to $5,785 psf. The third and smallest penthouse of 3,229 sq ft is also believed to have been sold for above $17 million.

Longer waiting time for homes, higher construction costs due to Covid-19 curbs: Contractors Association

4/26/2021

Scal said the construction sector has been facing a serious labour crunch since 2020, after many migrants workers returned home amid the pandemic.ST PHOTO

On 23 April 2021, Singapore Contractors Association Limited (Scal) sounded warnings that home buyers will have to endure a longer wait time for the completion of Housing Board Build-To-Order (BTO) flats and private apartments as a result of the border restrictions on travellers from India. Curently, the construction sector is already facing delays which have seen projects knocked back by between nine and 12 months due to a labour crunch brought about by the Covid-19 pandemic.

Just the day before, the Government announced that long-term pass holders and short-term visitors with recent travel history to India will not be allowed entry or transit through Singapore, with the new rule taking effect from 24 April 2021. Those who have previously obtained approval from the authorities to enter the country may also have their approvals revoked.

Education Minister Lawrence Wong, who is co-leading the multi-ministry task force tackling Covid-19, said it will have a major impact on the construction sector.

The construction sector will face further delays to building and housing projects already hampered by the pandemic.

The move to ban long-term pass holders and short-term visitors from India from entering Singapore will have a major impact on the construction, marine and process (CMP) sectors here, said Education Minister Lawrence Wong on Thursday (April 22) "I seek Singaporeans' patience and understanding. If certain projects were to be delayed further, please understand why this has happened and know that we are doing this because of public health reasons. We hope that everyone will cooperate."

The construction sector, especially, will face further delays to building and housing projects already hampered by the pandemic. Hence, the Government is looking at how it can provide additional support for local small and medium-sized enterprises and contractors that will be hurt by the new restrictions.

Singaporeans will inevitably be paying for higher construction costs if the situation is not resolved soon," said Singapore Contractors Association Limited (Scal) in a statement. It noted that the cost of labour and materials has escalated by 30 per cent to 50 per cent. "This tightening will adversely affect the inflow of construction workers and will negatively impact the timeline of construction projects and cause further delays," said the construction association.

Singapore Contractors Association Limited (Scal) have warned that some companies may be forced to close and it will adversely impact some 100,000 residents working in the construction sector. Wee Hur Construction’s director for tender and contracts Sua Chen Shiua said: “We’re hoping the Government can grant us more time to complete our projects so it can relieve some pressure on us and also enforce that all stakeholders share the (increased) expenses instead of contractors taking the biggest hit.”

"This presents a big challenge for the government as they consider implementing property cooling measures after private property prices rose 2.2% last year. Property cooling measure may cause a knee jerk reaction in the market that may last around 6 months or more where buyers hold back from buying properties if for example there is an increase in ABSD by 5% which may inevitably lead to a systemic impact of the construction industry and Singapore's overall economy" says Kiwi Lim from Huttons Asia.

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Extracted from Straits Times news article on 23 April 2021

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