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The average size of homes decreased most significantly between 2014 and 2018, as small-format homes became popular with investors.
Condo sizes in Singapore have noticeably shrunk over the past 15 years, particularly in new launches due to multiple market and policy factors like loan curbs, several rounds of property cooling measures and changing demographic needs.
Land scarcity, inflation, higher cost of construction, foreign interest and high demand for new launches contributed significantly to rising per square foot (psf) property prices in Singapore. Therefore in order for developers to keep the absolute price quantums at levels that buyers could stomach, developers have to introduce smaller and smaller units, as private residential property prices surged 76.9 per cent cumulatively from 2010 to 2024.
Across Singapore, the median size of non-landed new condos has dropped 10.6 per cent to 904 sq ft in 2024 from 1,012 sq ft in 2010, according to Cushman & Wakefield, which collated data for The Straits Times based on the median size of new home transactions in the past 15 years. The median floor areas of new condos in the prime district outpaced that in the suburban and city fringe sub-markets. The median floor areas of new prime condos dropped 20.6 per cent to 829 sq ft in 2024 from 1,044 sq ft in 2010. In comparison, the median floor areas of new suburban condos shed 13.4 per cent to 904 sq ft from 1,044 sq ft, while new city fringe condos saw a 4.5 per cent drop in median unit sizes to 904 sq ft from 947 sq ft.
Below is a breakdown to illustrate the shift:
Developers has to explore efficient layouts in newer condo floorplans by designing interiors to maximise usable space, ensuring that even compact units feel functional, livable, and efficient. The space reductions were mostly in kitchen, living and dining areas, which are increasingly designed for interchangeable use. Even though some developments have smaller kitchens, living and dining areas, their layout is designed to overlap, allowing for flexible and interchangeable use. For instance, the kitchen space can be converted into dining space, should they require more space for hosting.
On 1 June 2023, in an effort to ensure that private home space remain liveable, the government's rules on the harmonisation of floor-area definitions took effect, thereby requiring all strata areas to be computed as gross floor area (GFA) causing developer to build smaller air-con ledges and more liveable space for home owners. Previously, elements such as private air-con ledges were excluded from the GFA computation, meaning they did not count towards the maximum allowable floor area of a condo project if they fulfilled certain requirements, and would therefore count as “free area” for developers.
For example, a 1,000 sq ft unit with oversized balconies, multiple bay windows and an oversized air-con ledge will most likely feel less spacious and functional compared with a 900 sq ft unit designed to maximise net internal area. Therefore, even though new condo units are getting smaller doesn’t mean that liveability is compromised as we need to distinguish between the strata or saleable area as shown on the plan, and liveable space, or the net internal area of the unit.
To ensure that private residential units do not get unreasonably small, the Urban Redevelopment Authority (URA) from 2012 and 2019 introduced guidelines to set a maximum number of units in a non-landed residential project to moderate the percentage of the smallest and largest units in proportion to the total number of units in a project. In 2019, the authorities reduced developers’ balcony bonus gross floor area incentives from 10 per cent to 7 per cent, and mandated that balconies could not exceed 15 per cent of the net internal area of units – a measure aimed at maximising liveable space in new units. The net internal area refers to the net living space of a unit, which excludes voids, balconies, air-conditioner ledges and other external areas.
For all new projects in the central area, URA also stipulated that from Jan 18, 2023, the developments must ensure that at least 20 per cent of dwelling units have a net internal area of at least 70 sq m. This size is considered “reasonable” for small families, taking into account the tighter space constraints of the central area.
The drop in the median floor areas for new executive condominiums is less pronounced compared with that of new condos because most exec condos are purchased by owner-occupiers and families requiring larger living spaces, rather than for investment purposes. New exec condo unit sizes fell 8.1 per cent to 980 sq ft in 2024 from 1,066 sq ft in 2010, and were down 2.2 per cent from 1,001 sq ft in 2023.
"While condo sizes have shrunk, clever design makes modern units surprisingly functional. But for those who prefer larger spaces, resale condos from the 90s or early 2000s may still be a better fit." said associate Group Director of Propnex Realty, Kiwi Lim.
Source: The Straits Times © SPH Media Limited.
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This case was so rare that experts witness for the trial confessed he had never seen such a situation before.
In Singapore’s high-priced real estate market, every square foot counts. When buyers or investors pay premium prices for properties marketed at a certain size — only to realize much of it isn’t effectively usable — it can result in overpaying for space, difficulty attracting tenants, reduced resale value as well as legal or valuation complications.
A beauty salon owner bought a commercial shop at D’Leedon condominium for nearly $1.6 million, assuming that the size of the premises was 818 square foot (sqft) based on past transaction history data on two leading property listing portals, as well as a title search, which corroborated the square footage. After buying the shop, the buyer realised the usable floor area of the unit turned out to be just 619 sqft. Imagine the shock and anger the buyer felt upon realising the size difference.
The lawsuit was brought in the name of Madam Pan’s company, Crystal Beauty, of which she is the sole director and shareholder, which initially sued five parties over the discrepancy: her real estate agent Jasmine Xu, Ms Xu’s agency ERA Realty Network, vendor PLS Holdings, the vendor’s real estate agent Eric Kwek, and Mr Kwek’s agency PropNex Realty. The suit against the vendor was discontinued as the firm has since been struck off, while a confidential settlement was reached with Mr Kwek and PropNex.
The discrepancy arose because of the unique manner in which the lot area is calculated for properties with sloping walls, meaning there is a difference between ceiling and floor areas. For such properties, the lot area – as set out in the title documents and commercial listing portals – is calculated based on the larger of the two. In this case, it was the ceiling area that was 818 sqft.
On 8 May, the High Court dismissed the lawsuit. In his written judgment, Judicial Commissioner Mohamed Faizal said there was no evidence that the real estate agent Ms Xu had made any representations, whether explicit or implied, that the usable floor space was 818 sqft. He added that Ms Xu had conducted all the typical due diligence checks; she had cross-checked the numbers provided by the vendor against the EdgeProp property portal.
This case was so rare that the joint expert witness for the trial, real estate agent Tay Kah Poh, who is also an adjunct associate professor at NUS Business School, confessed he had never seen such a situation before. Prof Tay said the situation was so unusual that it would not have been covered in the conventional courses a person would have to typically undergo before becoming a licensed estate agent.
The judge said this case “reflects the reality that both property agents and buyers should remain vigilant”. He said: “Given the novelty of the situation, all the parties were caught unaware about the disparity between floor space and the strata lot size listed on the title search, and there was little a conscientious property agent could have done to have been more alive to a problem that simply was not viewed as a concerning feature in Singapore’s property market.”
Madam Pan had operated a beauty salon at D’Leedon since 2015. In September 2018, Madam Pan told Ms Xu, who was a patron of the salon, that she was interested in larger premises to expand the business. The unit directly across the corridor from her current shop was identified as a possible location.
Madam Pan contended that the discrepancy in size significantly hampered the salon’s expansion plans.
She said the salon is now forced to operate from both the existing premises and the new premises. The amount claimed comprised $203,400 in purported savings on operational costs if she did not have to maintain the older shop and a sum of $387,855.38 after accounting for the pro-rated price of a 619 sqft property.
In his judgment, the judicial commissioner noted that the written documents setting out Madam Pan’s claims of misrepresentation were “extremely vague”. The judge said text messages presented by Madam Pan, of discussions with Ms Xu from 2020 to 2022, did not support her claim that the latter had made the purported representations. The parties disagreed whether there had been a formal physical inspection of the interior of the unit at the time of the purchase in early 2020. The messages showed that both of them had been “jointly misled” by the developer’s marketing of the unit as being of 818 sq ft, said the judge.
This common understanding appeared to morph only in March 2022, when Madam Pan decided to sue Ms Xu after she was told by surveyors that there was nothing wrong with how the developer had calculated the strata lot area of the unit, he said.
Real estate consultant Kiwi Lim reminds property buyers and business tenants to always check the efficiency ratio (usable vs. total strata floor area) and do a physical inspection before buying or renting a property. Don’t just buy by the numbers on paper — but buy the space that truly works for you, your family or your business.
Source: The Straits Times © SPH Media Limited.
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On a quiet 3am Monday morning, I was looking through some videos of Singapore's GE2025 General Elections and I suddenly felt an urge to listen to 'The Sound of Silence' again, tears forming in my eyes as I listen.
Whenever I hear 'The Sound of Silence' sang by my favorite singers Simon & Garfunkel, there's an eerie, haunting quality that settles over me. It's not just the melody — it's the weight of the silence it speaks about.
Somehow, I feel that the sense of loneliness grows deeper when a society develops too fast, we seem to be living in a world full of noise but yet we seem to be more and more devoid of connection. The song somehow profoundly unsettles me. I feel its reminiscent of a society where words are empty, where listening is rare and where meaning gets lost in the noise.
On a quiet 3am Monday morning, I was looking through some videos of Singapore's GE2025 General Elections and I suddenly felt an urge to listen to 'The Sound of Silence' again, tears forming in my eyes as I listen.
Whenever I hear 'The Sound of Silence' sang by my favorite singers Simon & Garfunkel, there's an eerie, haunting quality that settles over me. It's not just the melody — it's the weight of the silence it speaks about.
Somehow, I feel that the sense of loneliness grows deeper when a society develops too fast, we seem to be living in a world full of noise but yet we seem to be more and more devoid of connection. The song somehow profoundly unsettles me. I feel its reminiscent of a society where words are empty, where listening is rare and where meaning gets lost in the noise.
"Hello darkness, my old friend..."
Darkness in my opinion symbolises loneliness, inner turmoil, or maybe even depression. Calling 'silence' an "old friend" suggests that sadness is familiar — almost comforting in its consistency. It's not just literal night — it may be emotional darkness.
"Because a vision softly creeping / Left its seeds while I was sleeping"
Usually in dreams or subconscious moments, truths or realizations reveal itself — often without the person consciously inviting them.
"And the vision that was planted in my brain / Still remains / Within the sound of silence"
Even after waking up, that unsettling vision — of a disconnected, silent world — persists. "The sound of silence" becomes the haunting echo of emptiness — communication fails, people can't, don't or no longer bother to truly connect.
"In restless dreams I walked alone / Narrow streets of cobblestone"
It portrays a person who feel isolated and wandering around aimlessly in a cold and empty cityscape — alone among many others all silently wandering. Cobblestones seem to evoke a cold and probably old, perhaps broken-down world — with traditional values crumbling under modern alienation.
"People talking without speaking / People hearing without listening"
This could be a direct attack on superficial communication: like for example people "talking" and "hearing," but there's no real understanding or emotional connection. Noise without meaning could mean lots of talking, but little real conversation or understanding.
"And the people bowed and prayed / To the neon god they made"
Probably mean satisfying the ego, pursuing materialism, fame, shallow success or maybe flashy and modern consumerism that the world is promoting — and how society worships flashy influencers and wealth.
"The words of the prophets are written on the subway walls / And tenement halls"
Sometimes truth may be found in the places society overlooks.
"Whispered in the sounds of silence"
Warnings are there, but ignored by the mainstream population. There seem to be a silent cry among humanity - lamenting emotional and spiritual alienation in the modern world.
In many ways, society seem to be growing more disconnected — even though we are technically "more connected" than ever through technology.
Here’s how it looks in my point of view:
- Surface-level connection:
Social media lets us interact instantly, but much of it is curated, shallow and performative. People may have hundreds of "friends" but few deep relationships. - Deeper loneliness:
Studies show rising rates of loneliness, anxiety, and depression, especially among young people — despite being digitally "plugged in" constantly. - Polarization:
Instead of dialogue, we often see people retreating into echo chambers, only hearing views that reinforce their own. This breaks down real understanding across communities, societies and even families. - Distraction over meaning:
With endless entertainment, notifications and trends, it's easier to consume than to reflect. Hard, vulnerable conversations — the ones that build real human connection — often get avoided. - Economic pressure:
In many places, the pressure to survive financially leaves little emotional energy for building and maintaining strong relationships. People are tired, stressed and isolated.
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Acting submissive without yielding means appearing soft without surrendering strength, or being strategically agreeable while staying firmly in control of your own stance. Here’s how to walk that fine line:
1. Use Calm, Respectful Language — But Stand Your Ground
- You can say "I understand your point" without agreeing.
- Try:
“That’s a fair perspective. Here’s where I differ…”
“I hear you, and I see it a little differently.”
This shows humility without giving up your position.
2. Control Your Tone, Not Your Conviction
- Speak gently, not timidly.
- Be measured, not passive.
Think grace under pressure, not weakness.
3. Let Others Speak First — Then Speak With Precision
- Listening first creates an aura of receptiveness.
- When you speak, make it clear you’ve processed things thoughtfully.
4. Yield in Appearance, Not in Intention
- Use body language that’s open: nodding, soft eye contact, relaxed shoulders.
- Avoid crossing arms or stiff postures—but don’t shrink yourself.
5. Agree Strategically, Disagree Subtly
- “That’s one way to look at it.”
- “What if we explored another angle?”
- “Here’s something to consider…”
6. Be Respectfully Agreeable — But Hold the Line
Use phrases like:
- “I understand where you're coming from...”
- “That's a valid point — here’s our position.”
- “I see your reasoning. At the same time, this is what works for us.”
7. Ask Questions Instead of Pushing Back
Instead of saying “We won’t accept that,” try:
- “Can you help me understand how you arrived at that figure?”
- “What flexibility do you have on that condition?”
8. Stay Calm When They Get Pushy
The more composed you are, the more power you project. Let them get emotional. You stay grounded. Soft demeanor, strong stance.
9. Give the Illusion of Concession
Sometimes, it helps to “give” something small that doesn’t cost much, to protect the bigger things.
Example:
“We’re willing to be flexible on the timeline, but the price needs to reflect the market value.”
You appear cooperative, but you don’t give up what really matters.
10. Never Reveal Pressure — Even If You Feel It
Submissive doesn't mean desperate. Stay polite, professional, but never imply you’re in a rush or that you need the deal. This keeps your leverage intact.
Associate Group Director of Propnex Realty, Kiwi Lim believe that in property negotiation, it’s not the loudest voice that wins but the most strategic one. Let them underestimate you. Especially in property negotiations, acting submissive but not yielding is a high-level skill — it can lower your counterpart’s guard while you quietly hold your ground and protect your client’s interests.
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Homebuyers are often drawn to executive condos (EC) for their relatively more attractive prices when compared to surrounding condos especially when executive condos (EC) also offer a blend of private condo-style living with the affordability of an executive condo (EC). Hundred Palms Residences EC is seen as an excellent choice for families and first-time buyers due to its prime location, affordability, strong amenities and investment potential making it one of the most sought-after executive condos (EC) in Singapore.
Recently a 13th floor, 1,528 sqft unit located at Hundred Palms Residences EC on Yio Chu Kang Road at Block 266 changed hands for S$3,058,888, equivalent to S$2,001 per square foot (psf). Although the transaction is still pending completion, the Option to Purchase (OTP) has already been granted, making it a done deal in the eyes of the market.
Obtaining it Temporary Occupation Permit (TOP) in 2019 and meeting its Minimum Occupation Period (MOP) a few months ago, Hundred Palms Residences EC still has a healthy lease balance of about 93 years, making it an attractive option for buyers looking for long-term value.
Hundred Palms Residences EC location on Google Map
Why ECs remains a popular choice among home buyers
"Buyers often choose executive condominiums (ECs) over private condos due to several key advantages, especially in terms of affordability, investment potential and value for money." said Kiwi Lim, Associate Group Director from Propnex Realty.
Here’s why ECs remains a popular choice among home buyers:
1. Prime Location & Connectivity
- Well-Connected to Major Areas: Located in Hougang/Yio Chu Kang, Hundred Palms is near key expressways like CTE, KPE, and SLE, offering easy access to the CBD, Orchard, and Changi Airport.
- Good Public Transport: Close to Hougang MRT (future Cross Island Line) and Serangoon MRT (NEX Mall & Circle Line interchange).
- Lower Entry Price Compared to Private Condos: As an Executive Condo, it is priced lower than private condos but comes with similar facilities.
- Potential for Future Capital Appreciation: After the 5-year Minimum Occupation Period (MOP), it can be sold to Singaporeans and PRs, and after 10 years, it becomes fully privatized—increasing its resale value.
- Nearby Shopping Malls: Residents enjoy proximity to Hougang Mall, NEX, AMK Hub, and Compass One.
- Good Schools Nearby: Popular schools like Rosyth School, Xinmin Primary & Secondary, and Serangoon Junior College make it ideal for families.
- Lifestyle & Recreation: Hougang Sports Centre, Serangoon Gardens, and the Punggol Digital District are nearby, offering entertainment and leisure options.
- Luxurious Features: Despite being an EC, Hundred Palms offers full condo facilities, including a 50m lap pool, gym, clubhouse, BBQ pits, and function rooms.
- Smart Home Features: Comes with smart security systems and home automation, enhancing convenience.
- One of the Fastest-Selling ECs: Hundred Palms sold out within hours of launch, showing strong demand for well-located ECs with good pricing.
- Hundred Palms is seen as a rare EC in the Hougang-Yio Chu Kang Area: EC launches are rare in mature estates, making this a unique opportunity for homebuyers and investors.
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Many of my clients who are business owners tell me they are increasingly facing significant challenges in recruiting and retaining staff due to a combination of factors that have intensified especially in 2025.
Key issues and trends impacting the workforce landscape may be due a critical shortage of skilled workers, evolving workforce expectations, increased competition for talent, a shift towards remote and hybrid work models, financial budget constraints, etc. Today’s challenging market conditions are making it even more difficult to retain staff, improve productivity, reduce turnover and enhance innovation.
Companies that are finding it hard to recruit and retain staff may want to focus more on employee happiness and engagement. A workforce that is both happy and engaged not only enhances company culture but also drives long-term business success.
The Link Between Happiness and Productivity
Happiness and productivity are closely intertwined, forming a mutually reinforcing cycle that benefits individuals and organizations alike. Research has consistently shown that happy employees are up to 20% more productive than their unhappy counterparts and tend to be more productive, creative, and engaged in their work. This connection can be attributed to several key factors below:
1. Increased Motivation and Engagement
Happier employees are naturally more motivated to perform well in their roles. When individuals feel valued and fulfilled, they take greater initiative, exhibit higher levels of creativity, and are more willing to collaborate with colleagues. A positive mindset enhances problem-solving abilities and fosters a proactive approach to tasks.
2. Improved Health and Well-Being
Happiness has been linked to better physical and mental health, which directly impacts productivity. Employees who experience lower stress levels are less likely to take sick days and more likely to maintain high energy levels throughout the workday. A healthy work-life balance, along with access to wellness programs, can significantly contribute to an individual’s overall happiness and efficiency.
3. Enhanced Workplace Culture
A positive work environment fosters collaboration, trust, and mutual respect among employees. Organizations that prioritize employee well-being by offering flexible work arrangements, recognition programs, and professional development opportunities create a culture where productivity thrives. A supportive atmosphere reduces burnout and increases job satisfaction, leading to higher retention rates, better overall performance and profitability. Studies indicate that happy workers lead to higher employee satisfaction which directly influences customer experience and loyalty.
4. Strategies for Enhancing Happiness and Productivity
Organizations can take several steps to cultivate happiness in the workplace, including:
- Encouraging open communication and feedback
- Recognizing and rewarding achievements
- Providing opportunities for professional growth
- Supporting work-life balance with flexible scheduling
- Creating a positive and inclusive work environment
Generally, I agree that when employees feel valued and satisfied, they are more motivated to put in their best effort, leading to higher efficiency and better results. Google, for example, has invested significantly in employee well-being, offering wellness programs and flexible work options. The result? Higher innovation, lower burnout, and increased profitability. By understanding and leveraging the connection between happiness and productivity, both employees and organizations can unlock greater potential
How Companies Can Foster Happiness and Engagement
- Cultivate a Positive Work Culture – Create an environment where employees feel safe, respected, and motivated.
- Encourage Work-Life Balance – Support flexible work schedules and mental wellness initiatives to prevent burnout.
- Recognize and Reward Effort – A simple ‘thank you’ or employee recognition program can significantly boost morale and retention.
- Provide Growth Opportunities – Continuous learning and career development show employees they have a future within the company, improving retention rates.
- Foster Open Communication – Employees who feel heard are more likely to be engaged and committed to their work.
Companies that invest in employee happiness and engagement don’t just create a positive work environment—they drive business success. A workforce that feels appreciated, challenged, and engaged leads to higher productivity, innovation, and profitability. In today’s competitive market, retaining top talent is essential for long-term growth. By prioritizing employee well-being, businesses set themselves up for sustainable success and a competitive edge.
After all, happy employees make happy customers—and happy customers make thriving businesses!
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Yesterday's amazing sales preview at the 1,193-unit ParkTown Residence saw more than 87% of the total units snapped up by eager buyers as buyers queued up to secure a unit at this rare mega fully integrated condo development, the first integrated development with a transport hub in Tampines.
The preview sale lasted thru midnight past 1am this morning as agents, developer and buyers stayed up thru the night into the morning to make sure buyers are able to secure their choice units at ParkTown Residence with prices starting in the S$2,100 to S$2,300 psf (per square foot) range.
Sitting on a 545,314 sq ft, 99-year leasehold site at Tampines Street 62 in Tampines North, ParkTown Residence marks the first collaboration between UOL and CapitaLand Development drawing over 10,000 visitors during the first three days of public preview.
Acquired for $1.206 billion, or $885 psf per plot ratio (ppr), through a government land tender in July 2023, ParkTown Residence will have a new air-conditioned bus interchange, a direct link to the upcoming Tampines North MRT Station, a new mall with about 120 shops and a supermarket, a hawker centre, a community hub and a community plaza when it TOP sometime in 2030.
ParkTown Residence offers a wide array of units ranging from one bedroom + study units (463 to 506 sqft), two bedroom units (592 to 764 sqft), three bedroom units (926 to 1,184 sqft), four bedroom units (1,335 to 1,496 sqft) to five bedroom units (1,679 sqft) for buyers to choose from.
ParkTown Residence preview saw its 463 sqft one bedroom + study units starting from S$1.07 million or S$2,311 psf, 592 sqft two bedroom units starting from S$1.33 million (S$2,246 psf), 926 sqft three bedroom units starting from S$2.07 million (S$2,235 psf), 1,335 sqft four bedroom units starting from S$2.85 million (S$2,134 psf) and the 1,679 five bedroom units saw prices from S$3.78 million, or S$2,251 psf.
A self-sustaining community landmark, ParkTown Residence will host a 146,390 sqft retail mall that is managed by Capitaland with up to 120 stores, including cafés, restaurants, services, enrichment centres and a supermarket. The first level of the mega-development will also house a community club, a community plaza, and a hawker centre. The new bus interchange, one of the largest in Singapore, will also be located on the first level. An underground link on basement level 2 will connect the development to the upcoming Tampines North MRT Station on the new Cross Island Line bringing together convenience, connectivity and liveability all under one roof. To add to the beauty of ParkTown Residence, a 15m wide park connector Green Boulevard will run through the site plus sheltered walkways on both sides of the Green Boulevard to connect to the retail mall, the hawker centre, and the bus interchange on the first level - a first in Singapore. This Green Boulevard will join with Tampines Eco Green Park and Sun Plaza Park to offer residences a rare piece of nature to relax tired minds and bodies and family outings by the parks during the weekends.
The last private residential launch in Tampines was Singapore’s largest condo – the 2,203-unit Treasure at Tampines, developed by Sim Lian which was launched six years ago selling only 272 units over its launch weekend at a very attractively low average price of S$1,280 psf. Resale units of Treasure at Tampines has recently saw sales exceeding S$1,800 psf.
"The last time Singapore saw a huge mega condo project (more than 1,100 units) selling beyond 80% during preview was High Park Residence in Seletar launched about 10 years ago which saw an average selling price below $1,000 psf in 2015" said associate group director of Propnex Realty, Kiwi Lim who has been analyzing the Singapore property market for more than 10 years.
Today's amazing sales result of ParkTown Residence at an estimated average of $2,300 psf at the start of 2025 signals strong continued economic recovery in Singapore, supported by improved household incomes and economic stability.
For buyers who missed ParkTown Residence in Tampines, they can look forward to another mixed-use development (residential units above with shopping mall below) sited in Tampines Street 94 where residents can cross the road to access Tampines West MRT station. This upcoming condo project will be developed by a joint venture between Hoi Hup Realty and Sunway Developments who won the plot in September 2024, beating five other parties at a higher land cost than ParkTown Residence.
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Click to view more information and receive ebrochure and prices for The Orie
Capitalising on Toa Payoh’s rejuvenation, pent-up demand and attractive pricing from $2,395 psf onwards, three reputable property developers - City Developments (CDL), Frasers Property and Sekisui House jointly welcomed the new year of 2025 with a bang with their Toa Payoh project - The Orie.
The 169,458 sq ft site was acquired in a state tender in November 2023 for S$968 million or S$1,360 psf per plot ratio.
With prices starting in the S$2,400 to S$2,500 per square foot (psf) range, The Orie saw more than 85% of their total units sold on the preview weekend on the 17th to 18th Jan 2025 with the average price at $2,704 psf according to City Developments Limited (CDL).
The first private residential launch in Toa Payoh since 2016, The Orie is located in the RCR region of District 12 within 4 minutes walk to Braddell MRT station and surrounded by eateries and amenities. The 99-year leasehold development will house 777 units in two blocks of 40-storey apartments.
The 1 + study are the smallest units comprising of 517 square feet (sqft) starting from S$1.28 million (or S$2,476 psf). 2 bedroom units of 592 to 700 sqft starting from S$1.48 million (S$2,500 psf) for a 592 sqft unit; while 3 bedroom units of 850 to 1,130 sqft starting from S$2.09 million (S$2,459 psf) and four bedders between 1,216 to 1,367 sqft, start from S$2.92 million (S$2,401 psf). The largest five-bedroom unit at The Orie comes with a private lift is priced from S$3.48 million (S$2,395 psf for 1,453 sqft).
About 93 per cent of the buyers were Singaporeans with the remainder comprising of permanent residents from China, Malaysia, Indonesia, Britain, Australia, Germany, Hong Kong, India and South Korea, as well as one American.
Associate Group Director of Propnex - Kiwi Lim said he was not surprised that 86% of The Orie was sold on preview weekend as more than 2,200 buyers had submitted cheques expressing their interest, showing the strength and demand of this location especially when there were no new launch in the neighborhood for the past nine years. The last condo project in the area was the 576-unit Gem Residences, which was launched in 2016.
The strong sale at The Orie comes at the back of Emerald of Katong which recorded strong sales over its launch weekend with developer Sim Lian Group selling almost 99% of its total number of 846 units - all its 2, 3 and 4 bedroom unit types sold out in two days at an average price of $2,621 psf. Emerald of Katong probably holds the record for the most number of units sold in a day, besting J'Gateway's 738 units in June 2013.
Chinese developer Kingsford Group also sold 76% out of 916 units at Chuan Park in Nov last year with the average price of units sold priced at $2,579 psf. The units sold ranged from 2 bedroom, 2 + study, and 3 to 5 bedroom units. Singaporeans comprised about 93% of the total number of homebuyers, while permanent residents and foreigners accounted for the remaining 7%.
Chuan Park is nestled within an affluent private residential enclave, surrounded by the Serangoon Gardens, Li Hwan, and Tai Hwan landed housing estates and although classified within the Outside Central Region (OCR), Chuan Park is near the boundary of the Rest of Central Region (RCR).
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After the Singapore government announced the steepest increase of Additional Buyer Stamp Duty (ABSD) among the past few property cooling measures on 26 April 2023, more Singaporeans have expressed their interest in overseas properties and Singaporeans are now considered the top buyers of property in Johor Bahru, which has seen prices of condominiums in Johor climb by up to 30% in the first half of this year.
Recently, Channelnewsasia reported about the Singaporeans who bought properties in Johor, Malaysia who discovered to their horror that they are not the legal owners of the properties they had bought. More than 100 of them are now locked in a legal dispute with a Malaysian developer, alleging that it was not upfront about the sale terms and conditions. Property lawyers representing the buyers and the developer are now urging buyers to read the fine print and to be more aware of local conditions before purchasing properties in Johor as the buyers claimed they did not realise they are actually buying the properties under Private Lease Scheme (PLS) when they signed the Sales and Purchase agreements at the law firms.
What is Private Lease Scheme (PLS)?
The Private Lease Scheme (PLS) allows land owners / developers to lease out their freehold land for development for a term of 30 – 99 years under a Certificate of Private Lease, often seen in overseas property arrangements.
Under the Private Lease Scheme (PLS) - buyers are actually “renting” for the duration of the lease period. Buyers of Private Lease Scheme (PLS) properties must be made aware that they are not buying the said property but are instead merely renting or leasing the property from the sellers for a specific number of years. At the end of the lease period, the future descendants of the buyer (lessee) must surrender the property back to the seller / developer (lessor).
Difficult to Resell
While it might be easy to buy Private Lease Scheme (PLS) properties directly from developers, re-selling them in the future might not be so easy. Typically, banks with many business dealings with developers would normally be willing to provide 90% end-financing to the first batch of buyers who buy directly from the developers. However, over time, if the homeowner decides to sell the property in the open market, the re-selling of such Private Lease Scheme (PLS) properties will become harder, as most banks will hesitate to provide full end-financing to the owner who technically doesn't own the property.
The developer may also require the homeowner to resell back to the developer at a specific price instead of allowing them to sell in the open market. Sometimes, Private Lease Scheme (PLS) property homeowners may not have legal ownership of their property, thus they won’t be able to sell, transfer or use it as collateral.
Other countries like England also faced such controversial Private Lease Scheme (PLS) issues surrounding the leasehold system which has gathered a huge momentum in recent years that prompted the authorities in England to clamp down on such PLS schemes.
Most, if not all buyers who purchase directly from developers (whether in England or in Malaysia) generally will use developer-appointed lawyers as some are packaged as free legal fees. What is important to note is, the lawyer is acting for the developer and not the buyer and thus the developer is not obliged to inform house buyers of the pitfalls of buying Private Lease Scheme (PLS) properties.
Usually Private Lease Scheme (PLS) leasehold homeowners were unaware of the escalating ground rent that can be charged by the land owner, especially when the landlord changed hands and a new landlord owns the land. In the example in England, the house buyers were only vaguely informed about the need to pay annual maintenance charges and were subsequently surprised to discover that these charges can increase exponentially over the lease period. However, by then, it would be very difficult to challenge the validity of such maintenance charges and most buyers have no choice but to pay.
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Interestingly, Singapore's Housing Development Board (HDB) flats also used a form of Private Lease Scheme (PLS) as a policy that allows HDB flat owners in Singapore to rent out or sell their flat in the open market subject to HDB's approval under specific conditions, while retaining the right to live in the flat for a pre-agreed lease period if the buyer does not sell the HDB flat.
Kiwi Lim, Associate Group Director of Propnex Realty said "the Private Lease Scheme (PLS) by HDB is generally different from overseas properties in two areas: firstly HDB allows flat owners (lessee) to enjoy the flexibility of taking a bank loan to finance / refinance their HDB flats unlike some overseas properties that were bought under the Private Lease Scheme (PLS)."
"Secondly, Singaporeans generally trust the Housing Development Board (HDB) which is protected by the Singapore government and that it will not go bust unlike some private property developers overseas. Thus HDB homeowners do not expect HDB to go bankrupt and having to lose their HDB flats in the process."
Kiwi Lim warned that when buyers buy their overseas properties under the Private Lease Scheme (PLS) scheme, it should be noted that homebuyers may not have any proprietary rights on leases but that these rights essentially may still belong to the developer / seller. These homebuyers may find their properties being confiscated from them but still legally obligated to pay off the housing loans when the developer goes bust or face financial burdens and the properties taken away from the homebuyers without compensation as part of the developer's debt liability obligations to their creditors.
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In Chinese culture, the Snake symbolizes wisdom, intuition and adaptability. Some believe that the year of the Snake could bring subtle, calculated changes which could influence markets to move more cautiously rather than drastically.
Predicting property prices based on zodiac years, like the Year of the Snake is more a matter of cultural symbolism and speculation rather than an economic analysis. While Singapore's property market has shown remarkable resilience, several factors could lead to a potential drop in property prices.
Some factors that may shape 2025's real estate property market in Singapore:
1. Economic Downturn
- A global or domestic recession could result in job losses, reduced household incomes, and lower purchasing power. Reduced demand for property as buyers adopt a wait-and-see approach, leading to downward price adjustments.
- Singapore's economic outlook for 2025 appears moderately positive, with several indicators suggesting continued growth, albeit at a slightly tempered pace compared to 2024.
- The Ministry of Trade and Industry (MTI) forecasts a GDP growth range of 1% to 3% for 2025 and the Monetary Authority of Singapore (MAS) expects GDP growth to be at the upper end of the 2% to 3% range for both 2024 and 2025.
- While the projected GDP growth for 2025 indicates a slight deceleration compared to 2024, the overall economic outlook remains positive, with expectations of continued expansion across various sectors. Prudent fiscal and monetary policies, coupled with Singapore's resilient economic fundamentals are poised to support this sustained growth trajectory into 2025.
2. Interest Rates and Inflation Rates
- The Federal Reserve is expected to lower interest rates further in 2025 which will then reduce the cost of borrowing, making home loans more affordable for buyers. Buyers may likely decide to take this opportunity to purchase or upgrade their property homes, increasing demand and prompting sellers to raise prices in the resale market.
- Inflation rates are anticipated to moderate gradually, with core inflation expected to remain elevated. The MAS is likely to maintain its current monetary policy stance through 2025, focusing on supporting GDP growth while managing inflationary pressures.
3. Supply and Demand in the Real Estate Market
- A large number of new property launches or an increase in completed developments can lead to supply exceeding demand. Developers may offer discounts to clear unsold inventory, leading to a general price decline.
- As of late 2024, Singapore's property market is experiencing a notable increase in housing supply, which has implications for both property prices and rental rates. However, despite the surge in supply, private home prices have continued to rise, with a 2.8% increase observed in Q4 2023. This suggests that demand remains robust, potentially offsetting the effects of increased supply.
- While there is a significant increase in housing supply in Singapore's property market, it has not yet led to an oversupply situation across the board. The continued rise in property prices indicates sustained demand. However, the decline in rental rates and the concentration of new developments in specific areas warrant close monitoring to prevent potential oversupply issues in the future.
4. Weakening Sentiment in the Market
- Negative perceptions about the property market, often fueled by media or analyst reports, can deter buyers. Widespread caution may result in lower transaction volumes and price dips.
- The potential impact of Donald Trump on Asia's economies after 2025 depends on his policy priorities and strategies. Historically, Trump’s administration focused on trade imbalances, renegotiating trade agreements, and prioritizing U.S. interests, which significantly influenced Asia’s economies. Trump might revisit tariffs or trade restrictions on key Asian exporters, particularly China. Southeast Asian economies could see increased trade opportunities if companies continue diversifying supply chains to reduce reliance on China.
- Globally, we may see more countries engaging in protectionist policies that could hinder exports from emerging Asian economies, reducing growth prospects. Currency fluctuations driven by U.S. monetary policy or geopolitical tensions could increase volatility in Asian markets.
5. Foreign Investment in Singapore
- Geopolitical instability, stricter regulations, or unfavorable currency exchange rates could deter foreign buyers. Properties targeting expatriates or foreign investors may see price drops due to decreased demand.
- With Trump regaining power next year, an emphasis on "America First" could lead to reduced U.S. involvement in multilateral trade initiatives, encouraging Asia to deepen intra-regional cooperation.
- Increased rivalry among countries could exacerbate economic tensions, potentially impacting the global supply chain and regional economic stability.
- Policies aimed at decoupling from China may drive further investments in alternative markets like Vietnam, Indonesia, and India.
6. Rental Yields
- Rental yield is the annual rental income expressed as a percentage of the property’s purchase price. There are two types:
- Gross Yield: (Annual Rent ÷ Property Price) × 100
- Net Yield: (Annual Rent - Expenses) ÷ Property Price × 100
- High rental yields signal better returns on investment, making properties more attractive to investors. Increased demand from investors often drives property prices up, particularly in areas with consistently high yields.
- If rental demand weakens, especially during economic slowdowns or if expatriate numbers fall, property investors may struggle to cover their mortgage payments. Investors may sell off properties at lower prices, increasing supply and pressuring overall market prices. Reduced investor interest can slow price appreciation or even lead to price stagnation or decline.
7. Demographic Shifts
- Demographic changes significantly impact property markets by influencing demand, supply, pricing, and the type of properties people seek. Here's how different demographic trends shape the property landscape:
- An aging population with fewer new household formations can reduce demand for housing. This may slow market activity, particularly in certain areas, leading to price corrections.
- A growing population from immigration can boost demand for housing, driving up prices and stimulating new developments.
- Rising numbers of single-person households may drive demand for smaller, compact living spaces, such as one-bedroom apartments or studios.
- As household / individual income rises, home buyers may prefer larger space creating demand for larger properties that allows them to create flexible layouts.
8. External Shocks
- Events like pandemics, natural disasters, or financial crises can lead to market uncertainty and causing buyers to delay purchases, leading to price stagnation or decline in the short term.
- Based on current global trends and potential risks, the following areas could pose challenges or shocks to global markets in 2025:
- Rising Conflicts: Escalations in regions like Ukraine, Taiwan, or the Middle East could disrupt supply chains and global trade.
- Sanctions or Trade Wars: New trade restrictions, particularly between major powers like the US and China, may lead to market volatility. Rising nationalism and protectionist policies could stifle global trade growth.
- Debt Crises: Emerging markets with high external debts could face crises if global liquidity tightens or the US dollar strengthens.
- Oil Price Shocks: Geopolitical instability in oil-producing regions or unexpected cuts in production could drive up energy costs.
- Rare Earth and Semiconductor Dependencies: Supply disruptions in critical materials could create bottlenecks, especially in tech-driven industries.
- Global Warming & Natural Disasters: Increased frequency and intensity of extreme weather events could impact agriculture, insurance, and supply chains.
- New Outbreaks: Another significant health crisis or pandemic could strain global health systems and disrupt economic activity.
9. Government Cooling Measures
- Policies like stricter loan-to-value (LTV) limits, higher Additional Buyer’s Stamp Duty (ABSD), or tightened eligibility criteria for loans can reduce speculative and investment-driven purchases. Reduced demand from investors and foreign buyers may depress prices, particularly in the luxury segment.
- Over the years, the Singapore government has implemented a series of property cooling measures aimed at ensuring a sustainable real estate market and preventing speculative activities.
"Recently there are speculations that the government may possibly announce a property cooling measure soon after last month's record number of new launch condo units sold in November where developers sold 2,557 private homes, which is more than three times the sales volume from previous year's November sales of 784 units" said Kiwi Lim - Associate Group Director of Propnex Realty.
Kiwi Lim believe the government may be closely watching the upcoming condo launch in Toa Payoh -The Orie - a harmonised mega condo project in the highly sought after Toa Payoh district expected to attract huge interest among home buyers with analysts expecting the estimated average price to be hovering around $2,700 psf. If we see more than 80% sold for The Orie in January next year and subsequent new launches in Clementi and Tampines in the 1st quarter of 2025, the government likely may announce another property cooling measure - which could affect first time buyers who are looking to purchase a property."
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