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Recently the Business Times published an article suggesting a possibility that a property cooling measure may be announced soon where local Singaporeans may need to pay a 5 per cent Additional Buyers Stamp Duty (ABSD) for buying their first local residential property above S$1 million.
This possibly unthinkable scenario came after a record number of new launch property sales was seen last month in November where developers sold 2,557 private homes more than three times the volume of sales from the previous year's November sales of 784 units.
With Singapore's private home market expected to roar into the upcoming year of 2025 on the back of consecutive project launches buoyed by strong pent-up demand amidst rising consumer sentiment and optimism of the future.
Based on yesterday 16th Dec 2024 data released by the Urban Redevelopment Authority (URA), the latest sales figure, which excludes executive condominiums (ECs), is 246.5 % more than the 738 units sold in October this year.
Foreigners buying any residential property in Singapore 27 Apr 2023 will have to pay an additional buyer’s stamp duty (ABSD) of 60% after it was doubled from 30% - image from IRAS website
Since 2009, the Singapore government has implemented over 10 rounds of property cooling measures to maintain a sustainable property market and prevent speculative activities. These measures have been introduced periodically in response to market conditions, with notable rounds in 2013, 2018, 2021, 2022 with the latest round being the most drastic in terms of Additional Buyer Stamp Duty (ABSD) doubling for foreigners buying Singapore residential property from 30% to 60% over and above the price they pay for their residential property purchase. See above for the cooling measure implemented on 27 April 2023.
After last month's eye popping sales figures where more than 90% of the residential units sold are purchased by Singaporeans and Singapore Permanent Residents owning their first property, some property analysts speculate that the government may raise the Additional Buyer Stamp Duty (ABSD) for Singaporeans buying their first property priced above one million by 5% and Permanent Residents buying their first property above one million dollars may have to pay 10% Additional Buyer Stamp Duty (ABSD) as demand from locals and Singapore PRs purchasing homes for owner-occupation has been growing stronger and is expected to rise next year.
However, real estate analyst - Kiwi Lim from Propnex Realty believe that it is unlikely that Singapore government will penalize Singaporeans for owning their first home, as home ownership is a key pillar of Singapore’s housing policy and a fundamental part of the nation’s social and economic framework.
One of Singapore's proudest global achievement is in the fact that we have one of the highest home ownership rates in the world (about 89%) due to far-sighted government policies that encourage and support first-time homebuyers.
Our government policies often favor first-time homebuyers over investors or those purchasing second properties which is why the Singapore government offer helpful schemes like CPF Housing Grants and subsidies for HDB flats ensure that Singaporeans have affordable options to buy their first home.
"If you look at the past property cooling measures implemented by the Singapore government, you can see that ABSD and tighter loan restrictions are mainly targeted at multiple property owners and investors to curb speculation. First-time buyers are not the target of such policies, as the government aims to ensure Singaporeans can afford their first homes without undue pressure" said Kiwi Lim, associate group director of Propnex Realty.
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Identifying online crafty "sellers" who are out to scam requires vigilance and a keen eye for red flags. Here’s how you can spot scammer red flags and avoid them:
1. Unrealistic Deals
- "If a price seems too good to be true, it likely is. Scammers often lure victims with deals that are far below market value to entice quick decisions."
This classic warning reminds us to trust our instincts and exercise caution, especially in online marketplaces. Always research and verify the legitimacy of the offer before proceeding.
2. No Reviews or Fake Reviews
Genuine sellers often have reviews or a history of transactions. A lack of feedback or overly positive,
generic reviews can indicate a scam. When shopping online, look for sellers with:
- Positive, detailed reviews from past buyers.
- A consistent transaction history that reflects reliability.
- Active engagement, such as answering questions or addressing concerns professionally.
- If a seller lacks these signs, proceed with caution. A trustworthy track record is a key indicator of authenticity.
3. Lack of Transparency
- Sellers who avoid providing details, photos, or specifications about the product may be hiding something.
- They may refuse to meet in person or provide unclear communication.
The first new condo launch in Toa Payoh in 8 years. Register your interest today to receive ebrochure & floorplans!
4. Push for Immediate Payment
- Scammers often pressure buyers to make payments quickly, claiming urgency or exclusivity (e.g., “This deal won’t last!”).
- Beware of sellers who insist on upfront payments without guarantees.
5. Use of Untraceable Payment Methods
- Requests for payments through gift cards, cryptocurrency, or wire transfers are major red flags. These methods are hard to trace and often irrecoverable.
6. Sketchy Online Presence
- Examine their profile, website or store. Poorly designed sites, missing contact information, or inconsistencies in their business details are warning signs.
- Be wary of sellers with:
- Poorly Designed Websites: A lack of professional design or an incomplete website can be a sign of a scam.
- Missing Contact Information: Legitimate businesses typically provide clear contact details, such as a phone number, email, and physical address.
- Inconsistent Business Details: Look for inconsistencies in product listings, pricing, or business history. Scammers often lack a solid online footprint or provide conflicting information.
- No Verified Reviews or Testimonials: Genuine sellers usually have customer reviews or testimonials. If a site has no reviews or only generic, overly positive feedback, it's a red flag.
Always double-check the legitimacy of a seller by researching their online presence and cross-referencing reviews or business details. Stay cautious, and trust your instincts when something feels off. If you are intending to make a big online purchase probably in the hundreds of dollars, it is best to make sure the online seller has a physical shop presence. Some buyers will secretly drop by the seller's physical shop to see if the seller's brand or contact is listed on the shop to verify if its genuine before the buyers transfer their money over.
7. Refusal to Provide Proof
- If the seller refuses to provide photos, videos, or evidence of the item, they may not have it.
- For high-value items, request additional verification, such as receipts or certifications.
8. No Secure Checkout
- Legitimate sellers use secure payment gateways. Check for a secure connection (HTTPS) and trusted payment options. When shopping online, lack of a secure checkout process can put your financial and personal information at risk. Here’s what to look for and avoid:
- A secure website will have "https://" at the start of the URL, with a padlock icon next to it. If this is missing, your data is not encrypted.
- Avoid websites that redirect you to unfamiliar or untrusted third-party payment platforms.
- Be cautious if the seller insists on payment methods like wire transfers, cryptocurrency, or gift cards, which are harder to trace and recover.
- Legitimate websites typically offer trusted payment options like credit cards, PayPal, or other reputable payment services.
- Frequent errors, broken links, or a confusing checkout interface can indicate a poorly managed or fraudulent site.
- A legitimate e-commerce site should have clear privacy and security policies explaining how your data will be protected.
9. Suspicious Shipping Practices
- Be wary of sellers who claim they will ship the product after receiving payment but provide vague shipping timelines or conditions. By being vigilant and asking the right questions, you can avoid falling victim to shipping-related scams.
10. Trust Your Instincts
- If something feels off—whether it’s their tone, evasive responses, or reluctance to answer questions—it’s better to walk away than risk falling for a scam.
Thank you for reading my blog. Online shopping can be convenient and enjoyable when done securely. By staying vigilant and following these safety guidelines, you can protect yourself from scams and make informed choices.
Meanwhile, "Your dream home should not only feel right—it should also be a smart investment for your future"
Finding a home is about more than just four walls; it’s about creating a space that matches your lifestyle, nurtures your dreams, and provides a foundation for long-term growth.
We are here to guide you through this exciting journey, ensuring that your dream home:
- Reflects your unique personality and preferences
- Offers comfort and convenience for your everyday life
- Stands as a wise financial choice, aligning with your goals
Together, we’ll ensure that your next home isn’t just a place—it’s a step toward the life you’ve always envisioned.
Are you ready to get started?
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New private home sales surged to a record high in November this year after developers launched 5 condo projects all within 2 weeks of each other in a single month in response to expected lower home loan interest rates triggering huge pent up demand from home buyers before the year ends.
Analysts saw a pickup in market activity beginning in September this year after the US Federal Reserve lowered interest rates by 50 basis points, easing monetary policy for the first time in four years due to progress on the Fed’s dual mandate causing sales of new private homes to rebound from a 16-year low in August.
Last month in October, developers sold 738 new private homes, excluding executive condominium (EC) units, according to 15 Nov 2024 data released by the Urban Redevelopment Authority (URA) or a 84% jump from the 401 units sold in September and more than 3.5 times the 204 units sold in October 2023.
November saw an unprecedented launch by different property developers for 5 new condo developments: Nava Grove, Chuan Park, Emerald of Katong, Union Square and The Collective at One Sophia all within 2 weeks of the same month.
In a flash, more than 2,500 new condo units were released within such a short period of time throwing buyers into a frenzy from the pent up demand as consumer sentiment improved with the economy gaining momentum and recent interest rate cuts that have made mortgages more affordable.
Nava Grove
Jointly developed by MCL Land and Sinarmas Land and surrounded by lush green spaces, the 99 year leasehold Nava Grove sits between the picturesque Clementi Forest and the popular Rail Corridor to the north, and the historic Dover Forest to the south.
The name “Nava” stands for nature, allure, vibrancy and aspiration – the core principles behind its design. “Grove” was chosen to reflect its location at Pine Grove in Singapore. Residents can choose from a diverse mix of 552 units from cosy two-bedroom homes to five-bedroom residences that offers a touch of exclusivity with private lift access. The upcoming Clementi Nature Trail will connect residents directly to these sprawling natural havens, bringing the first part of the property’s vision – nature – to life.
The Collective at One Sophia
Joint venture partners SingHaiyi Group and Ultra Infinity launched The Collective at One Sophia comprising 367 condominium units which forms the residential component of One Sophia, a mixed-use development along Sophia Road. The Collective at One Sophia also consists of a 13-storey commercial tower consisting of 127 strata-titled retail units within a two-storey retail podium, as well as 122 strata office units in the top 11 floors.
Besides being the best-selling project of 2024, Chuan Park is also the fastest-selling since J Gateway. Click to find out more about Chuan Park
Emerald of Katong
The 846-unit Emerald of Katong located on a 99 year leasehold land at Jalan Tembusu, off Tanjong Katong Road is a five-minute walk to Tanjong Katong MRT Station (on the Thomson East Coast Line).
Nestled in the modern Peranakan district of Katong, Emerald of Katong offers a mix of one-bedroom-plus-study to five-bedroom apartments, with sizes from 484 sq ft to 1,561 sq ft. Emerald of Katong is launched under the new gross floor area harmonisation initiative where air conditioner ledges are not included in the strata area, hence maximising usability and efficiency.
Union Square
Union Square Residences - a redevelopment of the former Central Mall by City Development Ltd (CDL) comprised of a 40-storey tower with 366 apartments and commercial units at levels 1 and 2. The 99-year leasehold condo on Havelock Road is the residential component of Union Square, a large-scale mixed-use development that includes offices, retail and F&B space, and a co-living component with a hotel licence.
Chuan Park
Chinese developer Kingsford Group sold an amazing 76% or 696 out of 916 units at Chuan Park on 10 Nov 2024 at an average price of around $2,579 psf. This 916 unit mega condo project spans five blocks – three 22-storeys and two 19-storeys consisting of two- to five-bedrooms, ranging from 700 sq ft to 1,841 sq ft.– and two commercial units spread across a 99-year leasehold site of 400,500 sq ft. The transacted prices across all units sold ranged from $1.6 million for two-bedroom units to $4.3 million for a five-bedroom unit. The units that moved fast comprises of two-bedroom, two-bedroom plus study and three bedrooms. Even the larger four and five bedrooms units see good take up rates with 47 out of 60 units of 4 bedrooms sold and 8 out of 22 five bedrooms sold, indicating that there are many right sizers and upgraders in District 19, say associate Group Director Kiwi Lim from Propnex Realty.
"Chuan Park may have broken this year's record as the first mega condo of this scale with 916 units to sell an amazing 76% (696 units) of its total units in just one day with the average price of units sold around $2,579 psf but I expect Chuan Park's amazing 2024 record to be broken by tomorrow's Emerald of Katong's preview sale." said Kiwi Lim who has been analysing the real estate market for more than a decade.
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Home buyers consisting of mainly Singaporeans (about 93%) snapped up nearly 700 units of the mega condo project in District 19 of Lorong Chuan yesterday when the sales finally ended close to midnight yesterday on 10 November 2024 (Sunday). Permanent residents and foreigners accounted for the remaining 7%.
Chuan Park broke this year's record as the first mega condo of this scale with 916 units to sell an amazing 76% (696 units) of its total units in just one day with the average price of units sold around $2,579 psf.
The units that moved fast comprises of two-bedroom, two-bedroom plus study and three bedrooms. Even the larger four and five bedrooms units see good take up rates with 47 out of 60 units of 4 bedrooms sold and 8 out of 22 five bedrooms sold, indicating that there are many right sizers and upgraders in District 19, say associate Group Director Kiwi Lim from Propnex Realty.
The transacted prices across all units sold ranged from $1.6 million for two-bedroom units to $4.3 million for a five-bedroom unit.
Kingsford's mega condo Chuan Park has outdone its previous ultra mega project Normanton Park which sold 600 units in one day with Chuan Park's 696 units sold yesterday.
"As the top-selling project of 2024 in terms of number of units sold in one day, Chuan Park also surpassed the 400 units (75%) sold at the 533-unit Lentor Mansion in March and Norwood Grand, which was launched last month with 292 out of 348 units sold although Norwood Grand retains its title as the most percentage of units sold in one day at 84%. This amazing result for Chuan Park shows the power of pent-up demand in a matured estate especially in a District with the most number of upgraders in the market." says Kiwi Lim who has been analysing Singapore's real estate market for more than a decade.
Chuan Park was developed from the collective sale site with the same name by Chinese developer Kingsford Huray Development who acquired the 99-year leasehold 400,500 sqft Chuan Park site for $890 million in July 2022 signifying one of the biggest collective sale transactions in the Outside Central Region in recent years. The collective sale of Chuan Park is the largest since Tulip Garden on Farrer Road now known as the 638-unit Leedon Green, which was sold to a joint venture between MCL Land and Yanlord Land for $906.9 million in April 2018.
The site is adjacent to Lorong Chuan MRT Station and marks the first private condominium launch in the area since the 468-unit The Scala's debut in August 2010. Chuan Park consists of five blocks – three 22-storeys and two 19-storeys – and two commercial units spread across a 99-year leasehold site of 400,500 sqft. The 916 units range from two- to five-bedrooms, ranging from 700 sqft to 1,841 sqft.
Is $2,500 The New Average Condo Launch Prices
The amazing sale of Kingsford's Chuan Park condo project has home buyers asking if $2,500 psf is the new benchmark for upcoming condo project launches.
Launching for sale this Friday is Emerald of Katong - located at Jalan Tembusu, off Tanjong Katong Road in District 15 consisting of 846 units situated on a land parcel almost half the size of Chuan Park. With a short five-minute walk from Tanjong Katong MRT Station on the Thomson-East Coast Line, Emerald of Katong is expected to sell at least 60% of its total units this Friday with an average price of around $2,500 psf.
"Next year, I expect the upcoming condo project in Toa Payoh - The Orie to be launched around Jan 2025 with an average price of about $2,700 psf" said market analyst Kiwi Lim, "so the question of whether $2,500 psf is the new average psf preview launch prices for upcoming mass market new condos? Only time will tell."
If you have any views you would like to share or if you are looking for new condo projects at safe entry prices, you may email Kiwi Lim at sgpropertykiwi@gmail.com.
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Norwood Grand located in Woodlands saw almost 85% of its total number of units snapped up within hours at its preview sale today on 19 October 2024 at an average price of $2,067 psf. Norwood Grand is a beautiful condo project developed by reputable City Developments Limited (CDL) which opened for viewing two weeks ago seeking buyer interest with attractive new launch condo prices starting from S$988,000 and just under S$2,000 per square foot (psf).
Located in District 25, Norwood Grand is a 348-unit condominium located along Champions Way offering 495 sqft one-bedroom + study from S$988,000 or S$1,996 psf, 624 sqft two-bedroom units from S$1.238 million (S$1,984 psf), 883 sqft three bedroom units from S$1.698 million (S$1,923 psf) and 1,173 sqft four-bedroom units from S$2.238 million (S$1,908 psf) all spread out over four blocks in this private residential project with the added advantage of an early childhood development centre within the development.
Located on Champions Way, off Woodlands Avenue 1, Norwood Grand is the first private condo to be launched in Woodlands since Parc Rosewood's launch in 2012, Norwood Grand may be the best-selling residential condo project in 2024 after Bukit Sembawang’s 8@BT, where more than half or 83 units were sold at a median price of $2,727 per sq ft (psf), followed by UOL’s Meyer Blue which sold half of its total units at an average price of S$3,260 psf at launch with almost all buyers - Singaporean and permanent residents, only one was a foreigner from the US and Pinetree Hill which transacted at a median price of $2,501 psf.
Purchased by City Developments Limited (CDL) in a government land sale (GLS) tender in September 2023 for about $294.9 million ($904 psf per plot ratio), CDL emerged at the top of six bidders to win the 99-year leasehold site. Other than the parcel of land slated for executive condo (EC) development nearby along Woodlands Drive 17 that could yield 435 units and as of the last government land sales (GLS) programme for 2H2024, no other land sites in Woodlands are available for sale.
There is however a white site at Woodlands Avenue 2 on URA’s Reserve List at Woodlands Central that is available for sale by application and it is one MRT stop away from Norwood Grand. This white site can be developed into a mixed-use development with 440 housing units and 78,000 sqm (839,592 sq ft) of commercial space but it has yet to be triggered for sale.
"With the strong take up seen at Norwood Grand today, I believe this white site may start to gather some interest among developers soon" said associate Group Director Kiwi Lim from Propnex Realty.
Upcoming mega condo launching soon - Chuan Park offers 916 units located beside Lorong Chuan MRT (Circle Line) in Serangoon. Click to view ebrochure, floorplans and book slot for viewing showflat.
The proportion of Singaporean buyers is likely to stay elevated above 85 per cent in the coming months as more foreigners are considering taking up permanent residency or citizenship before buying homes in Singapore. As the cold war between the East and West continue to build up, Singapore will seem more and more attractive for businesses to build their base as Singapore aim to be the critical 'bridge' between the East and the West.
Currently, we are seeing a few top transactions, e.g. the sale of two units at 32 Gilstead for over $14 million each with the buyers of these units being Singapore permanent residents. This kind of transactions is expected to increase next year.
"3 years ago, an integrated condo at Pasir Ris Central was launched by Allgreen Properties and Kerry Properties - Pasir Ris 8 sold 85% of its total units at its launch weekend on 24July 2021 with 415 units out of a total of 487 units snapped up as it breached the psychological benchmark of $2,000 psf for mass market condo launch day price," said associate Group Director Kiwi Lim from Propnex Realty, "Some analysts felt the $2,000 psf may be too high for mass market buyers even for fully integrated condo offering the much desired ultimate convenience to its residents."
Last year on 11 Nov 2023, a 99-year leasehold condominium on the site of the former JCube mall in Jurong East, saw 88% of its 368 units sold during its launch an average selling price of $2,451 psf by Capitaland. Many buyers loved the former JCube and its convenient location as the future J’den will be directly connected to Jurong East MRT interchange and malls such as Westgate, IMM and Jem. This condo project in Jurong was the only 99 year leasehold condo project to achieve $2,451 psf average selling price on launch day.
With current new condo average launch prices seen this year, Norwood Grand presents an attractive entry price for private residential home buyers who expect resale condo prices in Woodlands to hit $2,200 psf by 2027.
"Next year will be a watershed year for Singapore's real estate as almost all new condo projects launching in 2025 are expected to raise the psychological benchmark to $2,500 psf for mass market new condo average launch day prices, especially with foreseeable lower interest rates amidst rising demand for properties in Singapore. The question we have to ask ourselves is... 'How much is too expensive?'" said real estate analyst Kiwi Lim who has been studying the real estate market for more than 10 years.
If you have any comments or if you are looking for new condo projects at safe entry prices, you may email Kiwi Lim at sgpropertykiwi@gmail.com.
"3 years ago, an integrated condo at Pasir Ris Central was launched by Allgreen Properties and Kerry Properties - Pasir Ris 8 sold 85% of its total units at its launch weekend on 24July 2021 with 415 units out of a total of 487 units snapped up as it breached the psychological benchmark of $2,000 psf for mass market condo launch day price," said associate Group Director Kiwi Lim from Propnex Realty, "Some analysts felt the $2,000 psf may be too high for mass market buyers even for fully integrated condo offering the much desired ultimate convenience to its residents."
Last year on 11 Nov 2023, a 99-year leasehold condominium on the site of the former JCube mall in Jurong East, saw 88% of its 368 units sold during its launch an average selling price of $2,451 psf by Capitaland. Many buyers loved the former JCube and its convenient location as the future J’den will be directly connected to Jurong East MRT interchange and malls such as Westgate, IMM and Jem. This condo project in Jurong was the only 99 year leasehold condo project to achieve $2,451 psf average selling price on launch day.
With current new condo average launch prices seen this year, Norwood Grand presents an attractive entry price for private residential home buyers who expect resale condo prices in Woodlands to hit $2,200 psf by 2027.
"Next year will be a watershed year for Singapore's real estate as almost all new condo projects launching in 2025 are expected to raise the psychological benchmark to $2,500 psf for mass market new condo average launch day prices, especially with foreseeable lower interest rates amidst rising demand for properties in Singapore. The question we have to ask ourselves is... 'How much is too expensive?'" said real estate analyst Kiwi Lim who has been studying the real estate market for more than 10 years.
If you have any comments or if you are looking for new condo projects at safe entry prices, you may email Kiwi Lim at sgpropertykiwi@gmail.com.
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Last week, a three-room HDB flat located at 18B Holland Drive with a remaining lease of 87 years achieved a record-breaking $838,000 ($1,162 psf) strategically within a short 5 minutes walk to the Buona Vista MRT Interchange Station (Circle Line and East / West Line). The transaction for the 721 square foot HDB flat at Buona Vista Courts on the 31st floor was finalised last week and is the highest price ever paid for a three-room flat in the Holland Village vicinity.
Completed in 2012, the HDB flats in Buona Vista Courts is located in a convenient and vibrant neighborhood near the upcoming One Holland Village mixed development, The Star, Holland Village Market and Food Centre, Holland Road Shopping Centre and Ghim Moh Market cum Hawker Centre are all within a 500-metre radius of the blk 18B Holland Drive flat.
To date, at least 32 three-room HDB flats have been sold for more than $800,000 in the resale market this year, a sharp increase from only 4 three-room HDB flats transacted above $800,000 last year. Of the 32 HDB flats, three are located in Queenstown.
Chuan Park is one of the better-located OCR condos we'll see this year situated right beside Lorong Chuan MRT station in D19 of Serangoon. Click to register for the showflat preview and receive ebrochure & floorplans today
Earlier this month, a four-room 1,001 square foot flat HDB flat completed in 2019 at 590B Ang Mo Kio Street 51 was sold for a record-breaking $1.08 million ($1,079 psf), the highest transacted price for a four-room flat in Ang Mo Kio that enjoys easy convenience to AMK Hub, Cheng San Market & Cooked Food Centre, Chong Boon Market and Food Centre and Ang Mo Kio Town Garden East.
The new buyers of this HDB four-room flat located on the 28th to 30th storey in block 590B Ang Mo Kio Street 51 can now enjoy the convenience of having Ang Mo Kio MRT Station within walking distance as well as good schools like Jing Shan Primary School, Anderson Secondary School within a 500m radius.
Analysts observed some of these million dollar flats may have undergone extensive renovations, making them comparable in quality and design to private condos. Modern interiors, premium fittings, and a ready-to-move-in condition increase their appeal and value.
Another possible reason for the spike in resale HDB prices is the declining supply of family-sized units, e.g. three bedroom condo units in resale condominiums and resale executive condo units that are priced below $1.8 million near eateries, amenities and MRT.
Source: HDB
Year on year, overall prices were up more than 7 per cent with mature and non-mature estate resale prices were up 6.7 per cent and 7.3 per cent, respectively as reported by The Business Times on 8 July 2024.
It was also mentioned in the news that across Singapore, four-room flats saw the highest increase in resale prices, at 7.5 per cent, followed by five-room flats at 7.3 per cent, three-room flats at 6.5 per cent, and executive flats at 6.2 per cent. The highest transacted price for a resale flat was $1.6 million for a five-room unit in Boon Tiong Road. In non-mature estates, the most expensive flat resold was $1.1 million for a five-room flat in Hougang Street 21.
"As private residential property prices have risen significantly in recent years, some buyers who might otherwise have purchased private condos are turning to high-end HDB resale flats, driving demand and prices up for resale HDBs. Buyers may also prefer the larger space offered by HDB resale flats when compared to private residential condos at a more affordable price quantum" said associate group director Kiwi Lim from Propnex Realty.
"The rise in million-dollar HDB flats in Singapore is a result of strong demand for well-located, larger, or upgraded public housing units, scarcity of supply in mature estates and evolving buyer preferences for homes in prime locations without being burdened by the many regulations of being classified as Plus or Prime HDB flats. We may see close to 1,000 units of million dollar HDB flats transacted this year in 2024."
This new integrated condo expected to TOP in 2026 located in the east offers you the ultimate convenience of a shopping mall, supermarket and MRT at a safe entry price. Click to view, receive ebrochure & floorplans.
In an effort to make HDB flats more affordable for Singaporeans and PRs, HDB announced that from October 2024, new Build-To-Order (BTO) flats launched will be classified as Standard, Plus or Prime flats, to better reflect their locational attributes:
- Standard flats will come with the standard subsidies and restrictions that are applied to all BTO flats. They will continue to make up the largest proportion of the flat supply amongst the 3 categories in all locations.
- Plus flats will be in choicer locations across Singapore (e.g. near transport nodes, town centres).
- Prime flats are in the choicest locations (e.g. city centre and surrounding towns).
Due to their attractive locations and attributes, Plus and Prime flats would naturally command higher market values. They will be priced with additional subsidies to keep them affordable and enable a wider range of Singaporeans to purchase them.
Many buyers however may avoid Prime or Plus flats with a 10-year minimum occupation period (MOP) in addition to tighter resale and rental conditions, and such home buyers who are not keen on the longer MOP and tighter restrictions would gravitate towards the resale market, further driving up prices.
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When considering buying a landed property in Singapore, it's essential for buyers to be aware of the potential for compulsory land acquisition.
Land in Singapore is a scarce commodity that is very limited in supply making our land a very precious possession and ownership rights are sacrosanct. Notwithstanding this, there will be a need from time to time to acquire land from private landowners to achieve a wider public good, mainly for public development. In aspiring to a higher level of land development, Singapore has developed some form of expropriation laws to achieve national objectives, which is manifested in the Land Acquisition Act.
The Land Acquisition Act empowers the government to acquire land for public purposes and it outlines the rights of landowners and the process of acquisition where the government has the authority to acquire private land for public purposes or development projects, such as infrastructure, public housing, or urban redevelopment. The Land Acquisition Act ensures that landowners are compensated fairly, but the compensation may not always reflect the full market value, as it is based on statutory valuation guidelines.
"The compensatory framework in the Act is often a major point of contention, in that the landowners feel inadequately compensated for the acquisition of their land." said real estate consultant Kiwi Lim.
The Land Acquisition Act sets out the procedures and compensation mechanisms for landowners. Here's what you need to know:
The Acquisition Process
- Prior to acquiring a piece of land for public development, the Government and its respective agencies undergo planning to optimise land use without resorting to land acquisition. Occasionally, planning considerations may inevitably involve land acquisition, which is a last resort.
Risks to Landed Property Owners
- If you're purchasing a landed property, particularly in areas earmarked for redevelopment or new infrastructure projects, there's a risk that your property could be subject to compulsory acquisition.
- While compulsory acquisition is not common, it's a possibility in areas undergoing significant urban renewal or infrastructure expansion.
Compensation
- Landowners are entitled to compensation based on the market value of the property at the date of acquisition. However, this value is determined by government appointed valuers and may differ from private valuations.
- Additional compensation may be provided for other factors, such as loss of business or disturbance, but these are typically subject to strict criteria. The Act sets out the factors for consideration in determining the compensation, which is broadly based on the market value of the land which include but are not limited to: recent sales transactions for the property, other comparable sales transactions, adjustments for condition, size, location, tenure and time difference between transactions, which can influence the valuation.
Mitigating the Risk
- Before purchasing a landed property, especially in areas of potential development, check the Urban Redevelopment Authority’s (URA) Master Plan. This plan outlines land use zoning and possible future developments, which may indicate areas at risk of acquisition.
- Engage a real estate lawyer or consultant to assess the risk and provide advice on the potential for compulsory acquisition based on the property’s location and surrounding developments.
What to Do If Your Property Is Acquired
- If your property is subject to compulsory acquisition, you'll receive a Notice of Acquisition. You have the right to contest the compensation amount through the Appeals Board if you believe it's inadequate.
- Engage a professional valuer or legal advisor to assist with the compensation claim and appeal process, if necessary.
Compulsory acquisition of land is a power vested in the Singapore government to acquire land for a fair market value for public development. In recent years, there has been a recent spike in projects to build and strengthen Singapore’s economic and social infrastructure. Inevitably, some areas of privately-owned land may be involved in the government’s planning considerations. As a last resort, land is compulsorily acquired in the interest of the wider community.
It is noteworthy that while the Singapore government may acquire the Property or part thereof under the Land Acquisition Act (Chapter 152 of the 1985 Revised Edition) and the Land Acquisition (Amendment) Act 1995 should Land Transport Authority (LTA) decide to carry out road improvements (in which case, the compensation payable will be based on the market value as at 1st January 1995 or the market value as at the date of the acquisition, whichever is lower), however if the government acquires the land under the Street Works Act, no compensation shall be payable based on section 14 of said act.
"In 2021, the government compulsorily acquired a four-storey building along Thomson Road and the freehold 776-sqm site that it sits on were acquired under the Land Acquisition Act. The building comprised of twelve residential units and four shops which the government will acquire and demolish by the end of the same year for the construction of the North-South Corridor nearby." said Kiwi Lim from Propnex Realty.
"Therefore, if you purchase a land and / or property that is affected by lines of road reserve which is required to be set aside, you run the risk of being uncompensated for the reduction in your land / property area."
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Yesterday's news reported at least three more home owners, one sub-contractor and a former employee obtaining orders from the Small Claims Tribunals against interior design firm Formal Informal Practice over incomplete renovation projects, overdue payments and unpaid wages.
Over the years, complaints about delays, shady practices, and shoddy workmanship have been a persistent concern in the renovation industry in Singapore. Homeowners often share stories of projects running behind schedule, with costs ballooning beyond initial estimates. These delays can disrupt daily life and cause significant stress, especially when families need to vacate their homes or face extended construction periods.
The issue of shady practices has plagued the home renovation industry in Singapore especially after Covid hit us with tight manpower shortage issues. Some contractors were found engaging in unethical behaviors such as no work done, pro-longed delayed work, hidden fees, misrepresentation of services, or using substandard materials and countless reports were made and the issue raised with the government. Such practices not only undermine trust but also jeopardize the safety and quality of the final outcome. Homeowners have reported instances where contractors disappeared mid-project, leaving them with half-finished work and financial losses.
These issues highlight the importance of due diligence when choosing a contractor, as well as the need for robust consumer protection mechanisms. To safeguard against these common problems, homeowners are encouraged to research thoroughly, check references, and ensure that contracts are clear and comprehensive.
Avoiding a renovation nightmare requires careful planning, thorough research and clear communication. Kiwi Lim who has more than ten years experience in real estate offers some tips to help ensure a smooth and successful renovation project:
1. Plan Thoroughly Before Starting
- Define Your Goals: Clearly outline what you want to achieve with your renovation, including your priorities and non-negotiables.
- Create a Budget: Set a realistic budget that includes a contingency fund for unexpected expenses, typically around 10-20% of the total cost.
- Timeline: Establish a clear timeline for the project, including start and end dates, while being mindful of potential delays.
2. "If its too good to be true, it probably is"
“If you meet someone who says everything (you want) can be done at the lowest cost, very likely something is wrong” says Cat Lim - a homeowner who was 'scammed' by a smooth talking and seemingly friendly contractor- Ah Xiang from UM3 Services Pte. Ltd. (UEN: 202016030D). "Ah Xiang ghosted me after I paid the deposit, even the boss of UM3 Services Pte. Ltd. - Lau Yong Hao did not respond after I tried contacting him and emailed the deposit screenshot as proof of payment to their company. The company is still registered as operational in ACRA."
3. Detailed Contract
- Clear Scope of Work: Ensure the contract includes a detailed description of the work to be done, materials to be used, and the total cost.
- Payment Terms: Agree on payment milestones tied to the completion of specific project phases, rather than a lump sum up front.
- Warranties and Guarantees: Make sure the contract specifies any warranties on materials and workmanship.
4. Choose the Right Contractor
- Research and Recommendations: Seek recommendations from friends, family, or online reviews. Verify the contractor’s credentials, licenses, and insurance.
- Check Past Work: Ask to see examples of previous projects, and if possible, visit completed sites or speak to past clients.
- Get A Few Quotes As Reference: Obtain detailed quotes from several contractors and compare them to ensure you’re getting a fair deal.
5. Communication
- Establish a Point of Contact: Designate a single point of contact for both the homeowner and the contractor to avoid miscommunication.
- Regular Updates: Schedule regular check-ins with the contractor to discuss progress and address any issues promptly.
6. Permits and Regulations
- Understand Local Regulations: Ensure that all necessary permits are obtained before work begins. Non-compliance can lead to fines and project delays.
- Building Codes: Ensure that the renovation adheres to local building codes and safety standards.
7. Quality Control
- Specify Materials: Clearly specify the brands, types, and quality of materials to be used in the project.
- Inspections: Consider hiring an independent inspector to check the quality of work at key stages of the renovation.
8. Prepare for the Unexpected
- Contingency Plan: Have a backup plan in case of unexpected issues, such as supply delays or unforeseen structural / manpower issues.
- Flexibility: Be prepared to make decisions if changes to the plan are necessary, while keeping an eye on the budget.
9. Document Everything
- Keep Records: Maintain a file of all documents, including contracts, receipts, warranties, and correspondence.
- Progress Photos: Take regular photos of the project’s progress for your records.
10. Stick To The Plan
- Stick to the Plan: Avoid making significant changes to the project once it’s underway, as this can lead to increased costs and delays.
11. Trust Your Instincts
- Red Flags: If something feels off or too good to be true, investigate further. Don’t ignore potential warning signs, such as a contractor being vague or pressuring you for immediate payment.
Real estate consultant Kiwi Lim reminds homeowners to practice due diligence, avoid paying large sums upfront and request for renovation instalments to be pegged to deliverables. Doing these could save a lot of heartaches as bringing and enforcing the renovation contractor in the Small Claims Tribunal would require homeowners to spend more time and money on legal fees."
Homeowners have repeatedly appealed to the government to enforce stricter regulations in the renovation industry, as well as implement more effective safeguards and recourse for consumers and sub-contractors that are owed money, e.g., renovation firms could be required to set up escrow accounts for customers’ monies – a practice already in place in industries such as banking and finance.
It's crucial for Singapore's renovation industry to uphold higher standards of professionalism and accountability to ensure that every project meet the expectations and needs of the homeowner / client.
"As Singapore's home renovation industry continues to grow, addressing these challenges is essential to maintaining consumer confidence and ensuring that the dream of home improvement does not turn into a nightmare for Singaporeans." said Kiwi Lim.
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After the government's April 2023 property cooling measure announcement which increased the Additional Buyers’ Stamp Duty (“ABSD”) for ownership of second and subsequent residential properties, we see more joint property owners, especially spouses enquiring about “decoupling” as a solution to reduce their stamp duty taxes arising from the purchase of a second and subsequent residential property.
In the context of Singapore real estate, "decoupling" refers to a strategy where registered owners / proprietors of a property, e.g. a married couple decide to restructure the ownership of their property by removing one of their names from the title to reduce the burden of Additional Buyer’s Stamp Duty (ABSD) when purchasing a second property.
In legal language, this is more accurately termed as a part sale and purchase of shares in the property. Below is a more detailed explanation:
In the case of a married couple, “Decoupling” essentially makes one owner the sole owner of the property allowing the outgoing owner (e.g. the spouse) to purchase another residential property without paying ABSD or saving the higher ABSD rates payable to IRAS applied to second and subsequent property purchases.
Through the years, we have noticed an increasing trend for proprietors to “decouple”, there are a number of issues that such proprietors need to take note on before undertaking such an exercise.
For private properties, decoupling would be subject to MAS’ and banks’ financing rules and requirements (e.g. ability of remaining owner to refund the outgoing owner’s CPF monies and finance the mortgage solely.) This would mean that in the event there is a CPF charge on the property and / or an outstanding mortgage loan, the purchaser of the part share may then have to consider taking up a fresh loan or to restructure the loan to finance the part purchase and also to re-finance his or her existing share in the event full cash payment is not an option.
For HDB flats, on top of MAS’ and banks’ financing rules, HDB only allows transfer of ownership of HDB flats under the following six scenarios: -
Divorce
Marriage
Medial Reasons
Death of an Owner
Financial Hardship
Renunciation of Singapore Citizenship
Loan Issue When Decoupling
In the event the purchasing proprietor would be taking up a fresh loan or restructuring the existing loan, the lending bank would usually be arranging for a valuation report to determine the market value of the property. In this instance, it would then be possible to peg the purchase price of the part share to the market value at the time of the contract.
In the absence of a valuation report however, proprietors must understand that they run the risk of a transaction which was entered into at an undervalue or that the contract may be insufficiently stamped. In relation to the latter and for the purposes of this article, it is imperative to note that stamp duty is computed based on the purchase price or market value of the property, whichever is higher. An undervalue transaction undermines the principle on which the stamp duty is based – To be concise, this means that the contract for a sale and purchase of a property may have been insufficiently stamped and the resulting ramification is that the purchaser of the property may be liable to pay a penalty of up to four (4) times the amount imposed by IRAS.
By Way Of Gift - Out of Love and Affection
Apart from the method of part sale and purchase of share in the property, another method could be when the share in the property is transferred out of love and affection (i.e. by way of gift). However, Section 16 of the Stamp Duties Act provides that “any conveyance or transfer operating as a voluntary disposition inter vivos shall be chargeable with the like stamp duty as if it were a conveyance or transfer on sale”. As such, stamp duties shall also be payable and be charged based on the market value of the share in property transferred. Should stamp duty be insufficiently paid, this would result in the same ramification as discussed in the preceding paragraph.
Stamp Duty
In relation to the purchase or transferring of the part share, Buyer Stamp Duty (BSD) and possibly Additional Buyer Stamp Duty (ABSD) will be applicable, depending on the profile of the purchaser.
Buyer's Stamp Duty (BSD) payable to IRAS on or after 15 Feb 2023
Seller’s Stamp Duty (SSD)
On the other hand, consideration must also be placed on the vendor or transferor of the part share as Seller’s Stamp Duty (SSD) may also be applicable, depending on the date of acquisition of the property. If the Property was purchased by on or after 11 March 2017 and sold within 3 years from the date of acquisition, SSD on the sale price will also be payable and computed as shown below:-
Steps Involved in Decoupling:
- Valuation of Property: Obtain a current market valuation of the property to determine the value of the share being transferred.
- Legal Process: Engage a lawyer to handle the transfer of ownership. This includes preparing the necessary legal documents and ensuring compliance with regulations.
- Stamp Duty: Pay the stamp duty on the transfer. While the transferring spouse may avoid ABSD, the receiving spouse will still need to pay Buyer’s Stamp Duty (BSD) based on the market value of the transferred share.
- Mortgage Considerations: If there is an outstanding mortgage, get approval from the bank for the transfer and refinance if necessary.
- Registration: Register the transfer with the Singapore Land Authority (SLA).
Decoupling can be an effective strategy for married couples in Singapore looking to expand their property portfolio while minimizing ABSD. While decoupling is a convenient solution to save on ABSD taxes, property owners should bear in mind some implications which may arise from decoupling. These issues should be discussed carefully so that all parties concerns are addressed in respect of the legal and beneficial ownership of their properties.
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China's property market saw green shoots sprouting towards the end of 2023, putting full-year nationwide sales at around 950 million sqm indicating that the pace of sales decline moderated by approximately 50% in 2023 from the year earlier.
On 17th May 2024, the Chinese government announced sweeping measures to shore up the beleaguered property market by removing the floor on mortgage rates and encouraging local governments to acquire homes to convert them into affordable housing. The People’s Bank of China effectively scrapped the nationwide minimum mortgage interest rate, while cutting the minimum down-payment ratio for first time buyers to 15 per cent and 25 per cent for second homes from previous 20 per cent and 30 per cent respectively.
Policymakers are bringing a sense of urgency to the matter as the Vice Premier urged local authorities to buy back or retract land parcels that have been sold but remain idle, as a means to ease developers’ cash flow strains emphasising the need to push forward the so-called “three big projects” that involve affordable housing, urban renovation and public infrastructure.
These drastic measures saw the property sector in mainland China slowly stabilising while external demand improves which helped to lift growth in the ASEAN region - according to the Asean+3 Macroeconomic Research Office (Amro). Domestic demand in China is likely to remain resilient, underpinned by recovering investment and firm consumer spending. Amro forecasts growth across the Asean nations, plus China, Japan and South Korea to remain strong.
Will Singapore Continue To Be Attractive in 2025?
With the globalization of wealth, high net worth individuals (“HNWI”) often look beyond their home countries for investment and residency options. Singapore has established itself as a prime destination for HNWI from across Asia and around the world, ranking third place after the UAE and Australia on the highest inflow of HNWI according to the Henley Private Wealth Migration Report 2023. The city’s appeal can be attributed to an array of factors: high quality of life, political and economic viability, and diversity in population.
Consistently rated as among the best countries to live in, Singapore offers excellent healthcare facilities, world-class education options and modern infrastructure. The city has long been a popular medical destination for complex treatments, with 5 of its hospitals ranking within the top 150 hospitals in the world. Its world-class public education system is supplemented with established international schools – allowing students clear pathways to higher education opportunities in the United States, United Kingdom, and Australia. The city itself is renowned for its cleanliness and low crime rates.
Serving as a gateway to Asia, Singapore's Changi Airport is one of the world’s busiest airports and has held the title of World’s Best Airport in Skytrax’s ranking for eight consecutive years with more than 100 airlines operating from the airport with direct flights to countries worldwide. The ease of travel establishes Singapore as a base for travel and allows Singapore residents to easily fly to any destination of their choice without hassle with the Singapore Passport - the most powerful in the world, allowing visa-free entry to 193 countries.
Singapore appeals to many with its unparalleled bilateral relationship with all regions and strong track record as a pro-business and politically stable country. It ranks first in the world in political and operational stability, ranked the fourth most competitive economy in the world and is the third largest recipient of Foreign Direct Investment in the world and we are favored by businesses as a springboard for the ASEAN region and between the east and the west, hosting the highest number of completed regional headquarters for the past 10 years in Asia Pacific.
Our Singapore government’s robust policy direction can be seen across all segments of the economy – it has developed a strong domestic regulatory framework to protect intellectual property rights, is heavily invested in digital transformation and has established itself as a leading private banking and wealth management centre globally.
Concern remains regarding trade ties between the two powerhouses - the United States and China. Both of the world’s two largest economies have seen their trade reduced amid high tariffs, protectionism and tit-for-tat trade actions.
“I believe China will continue to be a powerhouse in the region and the main driver of growth for the world. The real estate sector weakness will take a bit of time to overcome, but it will happen, and I expect China's property market to recover by the end of 2025”. said real estate professional Kiwi Lim.
