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In Singapore, the landscape of family structures is slowly evolving, reflecting broader societal changes and shifts in attitudes toward family life. Traditional notions of family are expanding to include a more diverse array of arrangements, mirroring global trends and the nation's unique cultural and demographic dynamics.
The Traditional Family Model
Historically, the traditional family model in Singapore has been the nuclear family, typically consisting of a married couple and their children. This structure has been the cornerstone of Singaporean society, supported by policies and cultural norms that emphasize family cohesion and stability. Multi-generational households, where extended family members such as grandparents live together, have also been common, reflecting Asian values of filial piety and collective responsibility.
Shifts in Family Dynamics
However, in recent years, several factors have contributed to the evolution of family structures in Singapore:
- Changing Attitudes Towards Marriage and Parenthood
- Increasingly, young Singaporeans are prioritizing personal and career development, leading to later marriages and lower birth rates. This trend is reshaping family dynamics and contributing to smaller family sizes.
- Rise of Single-Person Households
- There is a growing number of single-person households, driven by young professionals who prefer to live independently and older adults who choose to age in place. This shift is prompting new considerations in housing and social support policies.
- Diverse Family Forms
- The definition of family is broadening to include single-parent families, cohabiting couples, and blended families. These diverse family forms are becoming more visible and accepted, reflecting changing social norms and greater inclusivity.
- Increased Participation of Women in the Workforce
- As more women pursue higher education and careers, traditional gender roles within families are shifting. Dual-income households are becoming more common, and there is greater emphasis on shared responsibilities between partners.
- LGBTQ+ Families
- Although there are legal and social challenges, LGBTQ+ individuals and couples are increasingly seeking recognition and acceptance for their families. This includes same-sex couples raising children and advocating for equal rights.
Unique Challenges Faced in Estate Planning
However, amidst the celebration of diversity, there lies a complex and often overlooked issue: inheritance planning and the unique challenges faced by children from such non-traditional family units.
Legacy planning, a critical aspect of financial and emotional security, encompasses the management and distribution of assets, properties, and wealth to future generations. Yet, for families outside the conventional mold, navigating this terrain can be fraught with uncertainties and complications. Much of the legal frameworks and societal norms often lag behind the realities of diverse family structures, leaving many vulnerable to unintended consequences and disparities in inheritance, resulting in unnecessary hardships.
The Intestate Succession Act 1967 in Singapore
The Intestate Succession Act 1967 governs the distribution of a deceased person's estate in Singapore if they die without leaving a valid will. This legislation ensures that the deceased's assets are distributed in a fair and orderly manner according to predefined rules. Below are the rules for your reference.
For easy reference, the following is a reproduction of the 9 rules of Section 7 of The Intestate Succession Act 1967:
Rule 1: If an intestate dies leaving a surviving spouse, no issue and no parent, the spouse shall be entitled to the whole of the estate.
Rule 2: If an intestate dies leaving a surviving spouse and issue, the spouse shall be entitled to one-half of the estate.
Rule 3: Subject to the rights of the surviving spouse, if any, the estate (both as to the undistributed portion and the reversionary interest) of an intestate who leaves issue shall be distributed by equal portion per stripes to and amongst the children of the person dying intestate and such persons as legally represent those children, in case any of those children be then dead.
Proviso No. (1) — The persons who legally represent the children of an intestate are their descendants and not their next of kin.
Proviso No. (2) — Descendants of the intestate to the remotest degree stand in the place of their parent or other ancestor, and take according to their stocks the share which he or she would have taken.
Rule 4: If an intestate dies leaving a surviving spouse and no issue but a parent or parents, the spouse shall be entitled to one-half of the estate and the parent or parents to the other half of the estate.
Rule 5: If there are no descendants, the parent or parents of the intestate shall take the estate, in equal
portions if there be 2 parents, subject to the rights of the surviving spouse (if any) as provided in rule 4.
If there is a new launch condo selling close to surrounding resale condo price, would you be curious to know more?
Rule 6: If there are no surviving spouse, descendants or parents, the brothers and sisters and children of deceased brothers or sisters of the intestate shall share the estate in equal portions between the brothers and sisters and the children of any deceased brother or sister shall take according to their stocks the share which the deceased brother or sister would have taken.
Rule 7: If there are no surviving spouse, descendants, parents, brothers and sisters or children of such brothers and sisters but grandparents of the intestate, the grandparents shall take the whole of the estate in equal portions.
Rule 8: If there are no surviving spouse, descendants, parents, brothers and sisters or their children or
grandparents but uncles and aunts of the intestate, the uncles and aunts shall take the whole of the estate in equal portions.
Rule 9: In default of distribution under rules 1 to 8, the Government shall be entitled to the whole of the estate.
Real estate professional Kiwi Lim believe that while the Intestate Succession Act provides a structured approach to asset distribution, it may not reflect the specific wishes of the deceased. Understanding the Act’s provisions can help individuals and families navigate the complexities of estate succession with greater clarity and confidence.
"While the law works to ensure a fair distribution among close relatives, creating a will remains the best way for individuals to ensure their specific wishes are honored - how their estate should be distributed, potentially including friends, charities, or other entities not covered under intestate laws." said Kiwi.
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The second biggest economy in the world - The European Union has announced its decision to cut its lending interest rate this week, saying it had made progress in tackling inflation with The European Central Bank (ECB) cutting its main interest rate by 25 basis points from an all-time high of 4% to 3.75% on Thursday, 6 June 2024.
Canada also announced the cutting of its official lending interest rate on Wednesday.
The European Central Bank (ECB)'s move comes as voters head to the polls for EU-wide elections over the next four days, with the outcome expected to reflect people's unhappiness over cost-of-living pressures.
The president of The European Central Bank (ECB) - Christine Lagarde said the outlook for inflation had improved "markedly", paving the way for the rate cut. However, she warned that inflation was likely to remain above the bank’s 2% target “well into next year”, averaging 2.5% in 2024 and 2.2% in 2025.
"It is likely the US Fed Reserve may follow suit in the 4th quarter of this year to cut interest rates by at least 25 basis points as their November elections is just around the corner. From past history, we usually see an interest rate drop before elections in America and Europe." said real estate professional Kiwi Lim who believe that The European Union is beginning to reverse a historic series of rate increases because of elections.
"The drop in Europe's interest rates may not impact Singapore's real estate market as much as a drop in the US Fed Reserve rates if it does happen in the 4th quarter of this year. If the home mortgage rates drop in Singapore, buyers may be more inclined to buy resale properties as they will save on the interest rates and that in turn will also lift up new condo launches in the market, like the upcoming mega condo project in Serangoon - The Chuan Park, which is highly anticipated", said Kiwi Lim. who has been helping his clients navigate the real estate market for more than 10 years.
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From tomorrow - 13 May 2024, HDB flat owners (or their appointed real estate agents) can decide to sell their Housing Board flats directly through HDB's Flat Portal online
From tomorrow - 13 May 2024, HDB flat owners (or their appointed real estate agents) can decide to sell their Housing Board flats directly through HDB's Flat Portal online. Buyers will be able to access the listings and begin transactions with sellers when the service is officially launched later in May. The date has yet to be announced.
HDB said it would reach out to eligible flat sellers by e-mail from the soft launch on May 13 to provide them early access to list their homes on the platform. They can also appoint property agents to do so on their behalf.
On the HDB Flat Portal, listings will be automatically filled with details such as the address, flat type, floor area and floor plan from HDB’s data. Each seller can post only one flat listing, so that there are no duplicate listings. HDB want to use this HDB Online Flat Portal to sieve out buyers and sellers who are not genuine. Transactions cannot be carried out during the soft launch period.
This latest enhancement to the Housing & Development Board (HDB)'s online portal aims to streamline the process of buying and selling a flat, with the intention to provide buyers and sellers access to secure property transactions as well as improved services by property agents.
HDB will reserve the right to remove listings which have unrealistic pricing or contain misleading information from their HDB Flat Portal and may seek further clarifications from the sellers or their property agents when a listing is deemed to be too highly priced or below market value.
The listing will be automatically filled with details such as the address, flat type and floor area. PHOTO: HDB
Sellers of Housing Board Flats
- Sellers must have an intent to sell registered with HDB in order to list and market their flat themselves. They can also appoint a property agent to manage the listing on their behalf.
- When they create a listing, it will be automatically filled with details such as the address, flat type, floor area and floor plan, which is retrieved from HDB’s data. Sellers will only need to upload photos and descriptions of their flat.
- They can also indicate their preference for extension of stay and contra, which is a process in which an owner is looking to sell his unit and buy another, and want both transactions to be executed at the same time.
- Sellers will be prompted if their listing price is at least 10 per cent above the highest transacted price of similar units nearby in the past six months.
- Once listed, sellers can create viewing appointments that interested buyers with a valid HDB Flat Eligibility (HFE) letter can book. Each seller can only post one flat listing, so that there are no duplicate listings.
- Once their flat buyer submits a request for value, which has to be done a day after being granted the option to purchase, the listing would automatically be taken down.
- HDB reserves the right to remove listings with unrealistic pricing or contain misleading information from their portal after seeking clarifications from the sellers or their property agents.
Buyers with a valid HFE letter can schedule viewing appointments with sellers on the HDB Flat Portal. PHOTO: HDB
Source: HDB
Source: HDB
Buyers of Housing Board Flats
- Any prospective flat buyer can browse the resale listings on the HDB flat portal, but only those with a valid HFE letter can obtain the sellers’ contact details and schedule viewing appointments.
- An HFE letter indicates a buyer’s eligibility to buy a flat, receive grants and take up a housing loan.
- Buyers can filter searches by location, flat type, remaining lease or by their ethnicity and citizenship under the Ethnic Integration Policy and Singapore permanent resident quotas.
- A resale flat listing will show the recent transacted prices of similar flats nearby, amenities in the area and ethnicity and citizenship quotas.
- On the portal, buyers can also view information about current and upcoming new flat launches such as Build-To-Order and Sale of Balance Flats. They can choose up to three flats to compare attributes such as remaining lease and preliminary payment plans such as the monthly loan repayment amount and cash payment.
- Buyers with an HFE letter can view personalised payment plans based on their approved housing grant and HDB loan amount, so that they can more accurately assess if the shortlisted flats are within their budget, HDB said.
- After the buyers have exercised their option to purchase, they can submit their resale application on the HDB Flat Portal.
- To make the HDB Flat Portal a “one-stop platform” for buyers, the resale flat listing service will be integrated with financial calculators, loan listing services and information on the buyer’s HFE letter. Buyers can also compare resale flat listings with new Build-To-Order flats on aspects such as price and remaining lease, so that they can consider both options and make more informed decisions on their flat purchase.
Buyers can choose up to three flats to compare attributes such as remaining lease and preliminary payment plans. PHOTO: HDB
Property agents will have a personalised dashboard on the HDB Flat Portal, which gives them an overview of their clients – both buyers and sellers. - Photo: HDB
Property Agents
- Property agents will have a personalised dashboard on the HDB Flat Portal, which gives them an overview of their clients – both buyers and sellers.
- HDB said this will help them provide “value-added services” for their clients, such as budgeting and advising them on the next steps.
- They can create listings and viewing appointments for sellers, and help buyers to search, shortlist and compare flats.
- The service will be free of charge for the time being.
- Currently, real estate agents can put up listings on major real estate property portals such as PropertyGuru and 99.co which charges yearly subscription fees before the agents can list the property on the portals for their clients and buying credits to boost listings for greater buyer visibility.
The Housing & Development Board (HDB) is Singapore's public housing authority and a statutory board under the Ministry of National Development that is committed to providing affordable and accessible housing options to Singaporeans for every budget and need. This new service on its HDB Flat Portal was developed in collaboration with the public and industry stakeholders, including real estate agencies and property portals.
Real estate market analyst Kiwi Lim believe "The Housing & Development Board (HDB) already had plans to introduce this service online in future, but pushed forward their plans to launch it tomorrow partly due to the strong market reaction from the two recent cases where agents marketed $2 million HDB listings which HDB felt was misleading"
"I think the government wants to prevent more copycats who may also list their HDB flats at unrealistic prices to disrupt the market or fan consumer sentiment especially when Singapore's General Election is just around the corner and the new Prime Minister needs a strong mandate from the people." said Kiwi Lim who has been analysing the property market for more than 10 years.
Recently, it was reported a property agent listed two adjacent five-room flats in Sengkang that was marketed as a jumbo flat was deemed as “misleading” by HDB and HDB felt another listing by another property agent for a five-room flat in Toa Payoh had an unrealistic asking price of $2 million especially when HDB discovered the sellers may have no intention to do so as they had not done their "intent to sell" on HDB Portal before listing it.
This move by HDB is to improve HDB resale buyer and seller's experience and ensure transparency as the resale flat listing service aims to become a trusted listing marketplace for genuine buyers and sellers. Flat sellers may request for a 35 page HDB seller's guide to using the portal here.
Above are extracted and compiled from Straits Times and HDB websites on 12 May 2024
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With temperatures soaring and the sweltering heat becoming increasingly unbearable, residents across Singapore are seeking refuge indoors. As the mercury continues to rise, it's essential to take proactive measures to stay cool and comfortable while staying indoors. Here are some expert-recommended strategies to beat the heat indoors:
Here are 9 tips on how you can stay cool indoors on hot days
Tip number 1 - Ceiling Fans
Choose ceiling fans with a steeper blade pitch so that the blades can push more air, leading to better airflow within your home, e.g. a fan with a blade pitch of 15 degrees generally move more air than a 10-degree pitch to make the room feel cooler. You can also place a bowl of ice near a fan to create a DIY air conditioner at home.
When it comes to design and aesthetic look, the 3 bladed ceiling fan is more pleasing than the 5 bladed. However, the 5 blades can generate more wind because the blade to blades distance is nearer, thus the wind it produces is more consistent to cool your home.
Tip number 2 - Close Curtains and Blinds
Choose thicker fabric for your night curtains at home and keep curtains and blinds closed during the hottest parts of the day to block out direct sunlight and reduce indoor temperatures.
Tip number 3 - Use Air Conditioning
If you have air conditioning, use it with the ceiling fan to help cool the room by circulating the cool air from the aircon around the house to eliminate hot spots and effectively lower the temperature at home. Set the thermostat to a comfortable level, but try to save energy by not overcooling the room with aircon.
Tip number 4 - Stay Hydrated
Drink plenty of water to stay hydrated and cool. Avoid excessive consumption of caffeine and alcohol, as they can dehydrate you.
Tip number 5 - Take Cool Showers or Baths
Taking a cool shower or bath can help lower your body temperature and provide instant relief from the heat. You may also use cooling towels or ice packs to cool yourself down.
Tip number 6 - Wear Lightweight Clothing
Opt for lightweight, loose-fitting clothing made of breathable fabrics like cotton or linen. Avoid dark colors, as they absorb more heat.
Tip number 7 - Create Cross-Ventilation
Open windows and doors on opposite sides of your home to create cross-ventilation and allow fresh air to flow through. Position fans strategically to maximize airflow throughout your living space.
Tip number 8 - Use Dehumidifiers
The humidity levels are likely to intensify the sultry sensation in the air. With Singapore's high humidity, you may use a dehumidifier to remove excess moisture from the air. Lower humidity levels can make the air feel cooler and more comfortable.
Tip number 9 - Eat Light Meals
Opt for light and refreshing meals that are easy to digest. Avoid heavy, spicy foods that can raise your body temperature.
With the cool forested Pearl’s Hill City Park right beside The Landmark condo, residents can enjoy peaceful moments at the doorstep to the CBD and yet away from the city hustle when it TOP in 2025
As temperatures soar outside, finding ways to beat the heat indoors becomes essential for staying comfortable and safe. By following these tips, you can beat the heat and stay comfortable indoors even on the hottest days.
"We are also seeing more buyer interest for condo projects near cooler areas, e.g. The Landmark - located right beside the beautiful cool forested Pearl Hill Park in the city area or The Reef at King's Dock - situated at the edge of the sea, less than 5 mins walk to Vivo City mega shopping mall and MRT station" said real estate professional Kiwi Lim from Propnex Realty.
Imagine waking up to the spectacular views of Singapore’s southern shore while indulging in relaxingly luxurious waterfront living at The Reef At King’s Dock as it is expected to TOP around 3rd quarter of this year
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"According to the recent UBS-Credit Suisse report, household wealth rose in Singapore, defying downtrend elsewhere across the world. With more Singaporean households having greater wealth and with quite a few owning more than one property or couples who decoupled to save on ABSD property tax in their attempt to own more than one property," Kiwi Lim from the largest listed real estate agency in Singapore - Propnex Realty believe "with increased wealth, the need to make a written will is now more urgent than before in order to pay closer attention to individual specific needs and requirements after we leave this world."
Writing a will is an important task that ensures your wishes are carried out after your passing. When writing a will in Singapore, it's essential to avoid common mistakes to ensure that your wishes are accurately reflected and legally binding.
Delaying the creation of a will can lead to unintended consequences, especially if unexpected events occur. It's essential to have a will in place as soon as possible, regardless of your age or health status, to ensure that your wishes are carried out in the event of your passing.
"As a real estate guy, I helped many clients with their wealth assessment and progression and they often discuss with me about doing up a will to prevent disputes and unhappiness among their surviving family as well as to have their final wishes fully adhered to" said Kiwi Lim.
Several potential issues could arise with will writing in Singapore if not done properly. Below are 13 mistakes you may want to avoid when writing your will:
1. Invalid Will:
If the will does not meet the legal requirements outlined in the Wills Act of Singapore, it may be deemed invalid or may be contested in court. This could happen if the will is not properly signed and witnessed or if the testator (person making the will) lacks testamentary capacity at the time of signing.
2. Unclear Language:
Ambiguous or unclear language in the will can lead to confusion or disputes among beneficiaries. It's essential to be clear and specific in outlining your wishes to prevent misunderstandings and ensure that your intentions are carried out as intended. Clearly outline your wishes in the will, including the distribution of assets, specific bequests (e.g., heirlooms, sentimental items) and any conditions or stipulations you want to include.
3. Failure to Update:
Failing to update your will after significant life changes, such as marriage, divorce, birth of children, or acquisition of new assets, can result in unintended consequences or distributions that no longer reflect your wishes.
4. Undue Influence:
If there are suspicions of coercion, fraud, or undue influence exerted on the testator during the will-writing process, the validity of the will may be challenged in court.
5. Lack of Capacity:
If the testator lacks mental capacity at the time of signing the will, it may be contested on grounds of incapacity. This could occur if the testator is suffering from dementia, Alzheimer's disease, or other cognitive impairments.
6. Omitted Assets:
Failing to include all assets in the will can result in unintended distributions or assets passing according to intestacy laws. It's essential to conduct a thorough inventory of all assets and update the will accordingly. Make a list of all your assets, including bank accounts, investments, real estate, vehicles, valuable possessions and in today's digital age, it's essential to consider digital assets as well when drafting your will such as online accounts, cryptocurrency and digital files. Failure to address these assets can result in them being overlooked or inaccessible to your beneficiaries. Understanding what you own will help you determine how you want to distribute your assets.
7. Family Disputes:
Disputes among family members or beneficiaries can arise if they feel unfairly treated or if there are disagreements over the distribution of assets. Open communication and clarity in the will can help mitigate these conflicts. If you have children who are minors, decide who you want to appoint as their guardian(s) in the event of your death. Discuss this decision with the chosen guardian(s) beforehand.
8. Executor Issues:
An executor is responsible for administering your estate according to your wishes. Choose someone you trust to carry out your instructions, and discuss your decision with them beforehand. Choosing an unsuitable executor or failing to appoint an executor can lead to delays or complications in the administration of the estate. It's important to select someone trustworthy and capable of carrying out the responsibilities of executorship.
9. Decide on Beneficiaries:
Consider who you want to inherit your assets and how you want them distributed. Be specific and include alternate beneficiaries in case your primary choices are unable to receive their inheritance.
10. Using Templates Without Understanding:
There are will templates available online, however using them without fully understanding the legal implications and requirements can lead to mistakes or omissions. Each person's situation is unique, and a one-size-fits-all template may not adequately address your specific needs and circumstances. While it's possible to create a will on your own, consulting with a legal professional can ensure that your will is legally valid and properly executed especially when you have overseas bank accounts, assets or estate where you may need to adhere to cross border laws and legalities.
11. Consider a Letter of Intent:
In addition to your will, you may want to write a letter of intent to provide additional guidance to your executor and beneficiaries. This letter can include explanations of your decisions, funeral preferences, and other personal instructions.
12. Store Safely:
Keep your original will in a safe and accessible location, such as a fireproof safe or with your law firm. Inform your executor of its location and provide copies to trusted individuals if necessary.
13. Communicate Your Wishes:
While not required, discussing your wishes with your loved ones can help prevent misunderstandings and conflicts after your passing. It can also provide them with peace of mind knowing your intentions.
Disclaimer: While every reasonable care is taken to prepare this article, no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The ideas, suggestions, general principles, examples and other information presented here are for reference and educational purposes only.
If you feel you need to speak to a certified wills and succession practitioner to discuss about writing a will that truly reflects your deepest personal wishes clearly to your loved ones to maintain harmony and avoid future contests after your passing, you may fill in your contact details below for assistance:
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Excluding executive condo (EC) residential units, developers in Singapore sold 718 units in March last month, according to Urban Redevelopment Authority (URA) data released on 15 April - Monday.
This was 4.7 times or more than quadruple of the 149 units sold in February. Of the 718 private residential condo units sold last month, 47 of these private residential condos were in the prime location or Core Central Region (CCR) while 66 private residential new condos were in the city fringe or Rest of Central Region (RCR) and the remaining 605 private residential new condo units were in the suburbs or Outside Central Region (OCR) based on data by the Urban Redevelopment Authority (URA). New private home sales, excluding executive condominium units (ECs), also hit their highest level in four months.
"If we compare last month's March figures with last year's March developer sales of 492 private residential condo units, there is a rise of 45.9 per cent - year on year, but were 13.6 per cent lower than the five-year average of 831 units for the month of March" said Kiwi Lim from the largest listed real estate agency in Singapore - Propnex Realty. "this is not surprising because home buyers are more cautious and selective now due to various factors such as economic uncertainty like job security, higher interest rates, cooling measures and higher living costs due to inflation, etc."
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Private new home sales (exclude ECs) Feb and March 2024
The number of new private residential condo units sold in March pushed first quarter of the year sales to 1,175 units. Lentor Mansion accounted for the bulk of March sales as 409 units were sold out of the total 533 units in the whole development at a median price of S$2,269 per square foot (psf) while the second top-selling project in March - Lentoria, saw buyers snapping up 60 of its new condo units at a median price of around S$2,129 psf. Two of the new launches during the month were boutique developments Ardor Residence and Koon Seng House which sold 1 and 2 units respectively.
Outside Central Region (OCR) is still the hottest
Owing to the launch of Lentoria and Lentor Mansion, along with sales at a clutch of projects in the Outside Central Region (OCR), this sub-market led developers’ sales in March, and it accounted for an overwhelming 84% or 605 units (ex. EC) of the month’s transactions – up sharply from 58 units sold in February. The other OCR projects that had helped to boost sales included The Botany at Diary Farm that shifted 33 units at a median price of $2,030 psf, Lentor Hills Residences which sold 29 units at a median price of $2,114 psf, Hillhaven which moved 16 units at a median price of $2,074 psf, The Myst which sold 13 units at a median price of $1,996 psf, and Hillock Green where 12 units were sold at a median price of $2,168 psf. Of note, Ki Residences at Brookvale sold its last three units in March, and the 660-unit project is now fully sold, based on the URA data.
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Marina View Residences is an upcoming mixed-use development that enjoys an excellent location in the prime District 01, Singapore's Central Region. Click to find out more about this highly anticipated condo project
Core Central Region (CCR) & Rest of Central Region (RCR)
The Core Central Region (CCR) also saw higher developers’ sales from February to March, with 47 units transacted in the month – up from 34 units sold in February. Watten House was the star performer in the CCR with 12 transactions at a median price of $3,255 psf, followed by 19 Nassim which sold 11 units at a median price of $3,304 psf. Since the preview sales in November 2023, Watten House has now sold 134 (74%) out of its 180 units. Meanwhile, Pullman Residences Newton and Leedon Green are completely sold out, following units transacted in March.
Over in the Rest of Central Region (RCR), developers sold 66 new units in March, marking an 8% increase from the 61 units transacted in the previous month. Grand Dunman and The Continuum were the most popular RCR projects in March, each selling 11 units at a median price of $2,474 psf and $2,786 psf respectively. They were followed by Pinetree Hill which sold 10 units, and The Landmark where 9 units changed hands. Meanwhile, new launches Koon Seng House transacted 2 units at a median price of $2,357 psf, while Ardor Residence sold 1 unit at $2,465 psf.
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Top-Selling Private Residential Projects (Ex. EC) in March 2024
Executive Condo (EC) Market
In the EC segment, new sales jumped from 34 units in February to 114 units in March, thanks to sales at Lumina Grand EC, which sold 86 new units at a median price of $1,528 psf. The 512-unit Lumina Grand – which is expected to be the only EC project launch in 2024 – is 72% (370 units) sold as at end-March. The number of unsold ECs remains tight at 358 units, with most of the units at North Gaia and Lumina Grand. The strong take-up rate for Lumina Grand reflects the keen interest among first-time buyers and HDB upgraders for well-located and thoughtfully designed properties.
Developers placed a total of 877 new units (ex. EC) for sale in March – up markedly from the 45 units (ex. EC) released for sale in the previous month. This is the highest number of units launched for sale by developers since 970 units came on in November 2023.
Executive condominiums caters to a unique group of buyers, offering a public-private housing hybrid of HDB flats and private condominiums. These apartments are a sought-after option for the “sandwich class”- those who earn too much to qualify for HDB flats yet are priced out of private condominium markets.
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Median unit price ($PSF) of new non-landed private homes sold by Region by Month
New Condo Projects to Launch in April
Three new projects are expected to hit the market this month in April, being the 142-unit The Hill @ One-North and two boutique developments The Hillshore (59 units) and 32 Gilstead (14 units). Luxury project 32 Gilstead has been launched for sales booking on 15 April.
The Hillshore and The Hill @ One-North – both in District 5 in the RCR – will be launched for sale this coming weekend (20 April). With April’s new launches offering fewer units, we anticipate that developers’ sales could likely underperform March’s new home sales volume.
The Hill @ One-North will be the latest project to be launched in the one-north precinct, following Blossoms by the Park which sold more than 70% of its 275 units when it hit the market in April 2023. As at end-March 2024, Blossoms by the Park is about 88% (241 units) sold, according to URA’s data. Going by the positive response to Blossoms by the Park, we expect The Hill @ One-North to attract interest from home buyers.
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Just 149 units of new private homes were sold last month in February - a 65.6 per cent drop from 433 a year ago, compared with 281 new private home units transacted in January this year.
"Some buyers may be on a wait-and-see attitude in the face of ample new launch options and secretly hoping that the US Federal Reserve may cut interest rates later this year," said Kiwi Lim from the largest private real estate agency - Huttons Asia, "soft global economic conditions and war may also dampen buyer sentiments for the time being, but I feel this also indicates that developers are likely to launch their condo projects at more realistic pricings to entice buyers."
The Business Times also recently reported several projects that may see their ABSD deadline by 2024 this year or be hit with hefty stamp duty penalties for missing the deadline with Cuscaden Reserve being one of the projects that were highlighted.
The Straits Times (ST) reported that Cuscaden Reserve had secured an ABSD deadline extension to 2024. The luxury leasehold condo Cuscaden Reserve in District 10 is relaunching at a discounted offer starting from S$2,900 per square foot (psf), after an initial sales deadline to clear all unsold units in 2023 was extended to 2024. This is about 20 per cent lower than the average price of about S$3,600 psf that 12 units have sold for since the Orchard area condo was launched in September 2019.
"This is indeed a great opportunity that is not often available where investors or home buyers who desire a prestigious Cuscaden address can secure a 'paper gain' buying at a 'hugely discounted' price compared to previous buyers." said Kiwi Lim.
At yesterday's relaunch of Cuscaden Reserve on 16 March 2024, the developer saw 45 (57%) out of 79 units released were sold by private placement. More than 80 cheques were collected as expressions of interest (EOI) during the two-week preview that began on 2nd March.
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Yesterday's sales launch of Lentor Mansion - a luxury private residential condo project jointly developed by GuocoLand and Hong Leong Holdings saw a whopping 75% of its total units snapped up by eager buyers - mainly comprising owner-occupiers made up of 99% Singaporeans and PRs within the weekend preview. Approximately 400 units of mostly 2 bedrooms and 3 bedrooms were sold to buyers who loved the design of the development and its layout with average prices around $2,1xx psf - $2,4xx psf as at 17 March (Sunday).
Inspired by the black-and-white bungalows and the second project in GuocoLand’s Mansion series after Meyer Mansion which is located in District 15 along Meyer Road, Lentor Mansion evoked the elegance of the colonial era black-and-white bungalows and the natural environment surrounding such heritage homes.
Lentor Mansion’s double-storey clubhouse - with the black-and-white bungalow theme, named “The Mansion”, is the social nexus of the entire development where residents can welcome their guests at the drop-off point and host them in the various function rooms.
Lentor Mansion is also the first private residential condo project sold post-harmonisation of the strata and gross floor area by URA and other government agencies. The harmonisation of the floor area was introduced for GLS sites sold from Sept 1, 2022.
"Harmonising the floor areas will translate to more efficient residential units and Lentor Mansion will be selling units based on liveable space - excluding the areas for the aircon ledge." said Kiwi Lim
Credit: Straits Times, Edgeprop and Business Times
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Map of Sentosa Sensoryscape's two-tier walkway linking Resorts World Sentosa in the north & Sentosa’s beaches in the south for a ridge-to-reef experience featuring the island’s lush interior & beachfronts (Photo: Sentosa)
Sentosa Sensoryscape is opening on 14 March during the one-week school break will be one of the biggest new attractions on the island since the launch of Resorts World Sentosa in 2010.
The government's strategic plan to revitalise the central north-south precinct will ensure Sentosa continues to be attractive in a highly competitive tourism climate. Connecting Resorts World Sentosa in the north to Sentosa’s beaches in the south, the new Sentosa Sensoryscape garden walkway opens to the public next week on 14th March with immersive displays and new experiences.
Covering an area of about 5½ football fields or 30,000 sqm, the two-tier new garden walkway at Sentosa Sensoryscape will link Resorts World Sentosa in the north and Sentosa’s beaches in the south for a ridge-to-reef experience that includes the island’s lush interior and its beachfronts. The immersive 350m-long pathway of Sentosa Sensoryscape will tantalise your five senses as well as your ‘sixth sense’ which is imagination through a night-time experience with digital light art projection with AR called the ImagiNite together with an assortment of majestic gardens and breathtaking displays that will delight your senses.
"Part of the Sentosa Brani URA Masterplan 2019 that is expected to be implemented in phases over the next two decades, the new Sentosa Sensoryscape garden walkway will probably be the first mile-stone project of The Greater Southern Waterfront district." said Kiwi Lim, real estate analyst who has been looking forward to the mega transformation at the Southern part of Singapore.
The Sentosa Sensoryscape will amaze and wow you as you allow your senses to be heightened while taking a slow immersive walk along some of its highlights below:
1. LOOKOUT LOOP
Surrounded by tall trees and verdant greenery, the Lookout Loop is an open plaza with a spiral walkway at its centre. Follow the path up and you’ll come face-to-face with panoramic views of the sea and surrounding foliage. There will also be pre-programmed intermittent mist effects that will cool down visitors so that they can enjoy the sights in comfort.
2. TACTILE TRELLIS
Feel a whole array of sensations at Tactile Trellis, located a short walk away from Lookout Loop. The garden comprises petal-like concrete elements and touch-responsive plants – giving you a fun, interactive experience.
3. SCENTED SPHERE
If Tactile Trellis was all about touch, then Scented Sphere is all about smell. The structure boasts scented foliage so you can take in natural, therapeutic fragrances as you admire nature.
4. SYMPHONY STREAMS
At Symphony Streams, water trickles down from various pods, creating polyphonic effects. As such, visitors can unwind to the serene sounds, coupled with the calming coastal breeze.
5. PALATE PLAYGROUND
The space is a literal adventure for your taste buds as it is home to many edible plants, from aromatic herbs to exotic spices. Some of the potential activities that can be held here include herb and spice workshops, tea tastings and meditation classes.
6. GLOW GARDEN
Glow Garden is flanked by rows of mesmerising giant flower stalks. At night, these stalks come to life as they rhythmically shift colours and illuminate the plaza situated at the southern end of Sentosa Sensoryscape.
7. IMAGINITE
Unlike the other points featured on this list, ImagiNite is not a structure but rather an experience. At night, guests at Sentosa Sensoryscape will be immersed in a nature-inspired soundscape, that’s bolstered with projection mapping and augmented reality.
Sentosa Island’s Entrance Fees (Extracted from singsaver.com.sg)
The Greater Southern Waterfront Mega Development
The Greater Southern Waterfront (GSW) is a mega redevelopment project in Singapore that aims to transform the southern coastline of the island into a vibrant waterfront district spanning an area of about 2,000 hectares and one of the largest urban transformation projects in Singapore that was announced in 2019 by Prime Minister Lee Hsien Loong during his National Day Rally.
Comprising of 30km of beautiful coastline stretching from Pasir Panjang to Gardens by the Bay East, the Greater Southern Waterfront (GSW) will be transformed into a new major gateway and location for urban living along Singapore’s southern coast that is twice the size of Punggol or six times the size of Marina Bay.
A continuous waterfront promenade will seamlessly connect various places of interest along the Greater Southern Waterfront in future. Along this corridor, the new Pasir Panjang Linear Park will connect West Coast Park to Labrador Nature Reserve, and offer park users a glimpse of Pasir Panjang’s working container port and Power District up close. Other future connections will also link up places of interest along the waterfront to the hilltops for visitors to enjoy a distinctive recreational experience.
By taking full advantage of Singapore’s southern coastline, there can be more opportunities to improve how we live, work and play. The Keppel Club site will be redeveloped into a new residential precinct. Future residents will enjoy convenient access to the waterfront, nature and two nearby MRT stations.
Remember to visit Sentosa and experience an immersive and enchanting sensory journey, where you can discover more of Sentosa and awaken your senses. Sentosa Development Corporation will also work to refresh your experience over time, with new surprises introduced along the way. See ya.
Above news from Straits Times and Channelnewsasia
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The Ministry of National Development (MND) and the Housing Development Board (HDB) in a press release today on 5 March, Tuesday announced that eligible young couples will get more help when buying a new Housing Board (HDB) flat from June this year, including a reduced initial downpayment of 2.5% of the purchase price if the BTO flat.
The reduced initial downpayment may be a “significant financial barrier” for some couples and will ease the initial cost for these couples when buying a Build-to-Order (BTO) from the Junes sales exercise this year onwards.
Currently, young couples – full-time national servicemen (NSFs), students, or those who have completed their studies or National Service within the last 12 months of applying for the HDB flat eligibility letter – can apply for a new BTO flat first and defer their income assessment for housing grants or loans to just before key collection.
This is because if income was assessed at the time of application, these couples may not be eligible for grants such as the Enhanced CPF Housing Grant (EHG), which requires at least one party to be continuously employed for a minimum of 12 months. By deferring income assessment to the collection of keys, they are more likely to be eligible for the grant and may even qualify for a higher loan amount.
To be eligible, these couples must be current full-time students, recent graduates or national servicemen. At least one party must be aged 30 or below, and the couple must be married or applying for a flat under the Fiance-Fiancee Scheme.
Other eligibility conditions for deferred income assessment include the requirement for at least one applicant to be 30 years old or below. The couple must be married or are applying for a flat under the Fiance-Fiancee Scheme, which has a minimum age requirement of 21 years old.
For Build-to-Order (BTO) applications from 30 September 2022, the down-payment will be 20%. This can be paid using a combination of CPF Ordinary Account (CPF OA) savings and cash. The minimum cash down-payment is 5%. For example, if the purchase price of your BTO is S$400,000, your down-payment would be S$80,000.
Under the current staggered down-payment scheme, these young couples are able to pay the minimum down-payment of 20 per cent for their flat in two instalments. The first down-payment is either 5 or 10 per cent, depending on the type of loan taken. The second instalment is due at key collection. Since they have deferred their income assessment, they will only receive their EHG closer to key collection and must rely on their own savings or support from family for initial costs of booking a flat thus the new enhanced staggered down-payment scheme will reduce the initial down-payment to 2.5 per cent.
Since 2018, more than 3,700 couples have tapped on the deferred income assessment, with support from the staggered downpayment scheme, to ease their upfront costs and start their home ownership journey early.
"This newly announced lower downpayment scheme may improve the application rate for Plus and Prime BTO flats as young couples may intend to stay longer in their flats and is more accepting of the 10 year MOP period" commented Kiwi Lim.
The Housing Development Board (HDB) is responsible for providing affordable public housing to the residents of Singapore with the majority of Singaporeans living in HDB flats, which are available for purchase or rent. HDB public housing estates are designed to promote community bonding and social cohesion through the provision of communal facilities, community programs, and events which helps to foster a sense of belonging and neighborliness among residents.
HDB plans, designs, and develops public housing estates across Singapore, including the construction of new HDB flats, upgrading of existing estates, and provision of amenities and facilities.
Real estate professional Kiwi Lim praised HDB for its efforts in consistently exploring and developing sustainable and innovative solutions for public housing, such as green building technologies, smart home features, and eco-friendly initiatives to reduce energy consumption and carbon footprint for its newer BTO estates, like in Tengah where forest and nature themes are featured strongly in the planning and design of the districts to weave nature into homes. The BTO estate of Tengah are designed with considerations in the 5 key elements of neighborhood landscapes - soil, flora and fauna, outdoor comfort, water, and people. All the districts in Tengah will incorporate biophilic designs to connect residents more closely to nature, to promote better health and well-being.
Reference: MND, Channelnewsasia & Business Times
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Recovery or Recession?
Singapore's Ministry of Trade and Industry (MTI) forecasted that Singapore's GDP will see a slower economic expansion of about 1% to 3% in 2024, noting that major global economies like the U.S. will likely slow in the first half of the year before picking up gradually in the second half of the year. The beginning of this year started well where we saw a surge in US consumer sentiment in January 2024 compared to the previous month by the most since 2005 as retreating inflation helped bolster views about the economy and household finances.
China is also showing signs of recovery from the shocks of the pandemic and slack foreign demand which caused exports to decline in 2023. Progress has been achieved in technology development and important advancements have been made in building a modern industrial system. However, challenges to China's recovery for 2024 remains with the lack of effective demand, the excess capacity in certain industries, weak social expectations plus many hidden risks including the unresolved real estate crisis as well as the local government debt problem.
Cost of living and expenses has gone up worldwide due to higher transportation costs, war and protectionism that has reduced the quantity of raw materials circulating around the world. Climate change has also caused a drop in food production with food prices soaring across the world over the past 3 years.
The past few months saw some developers bidding somewhat cautiously for GLS land parcels in the recent Government Land Sales (GLS) program. The GLS program is an initiative by the Singapore government to release land for sale to private developers through a competitive bidding process. The goal is to ensure a steady supply of land for various types of developments, such as residential, commercial, and mixed-use projects.
Developers' response and cautious bid prices seem to factor in the impact of the 60% additional buyer’s stamp duty (ABSD) on foreigner buyers and higher ABSD rates for investors as well as taking into account current market challenges and uncertainties. Developers also has to take into account potentially higher construction costs amid the current regional instability around the world and inflationary pressures.
Will fewer GLS Land Sites Be Released in 2024?
If the Urban Redevelopment Authority (URA) in Singapore perceive the recent lower bids for GLS land parcel sites as a sign that there are enough supply of new condos in the market, they may decide to reduce the number of available Government Land Sales (GLS) land sites to be released for sale in 2024.
With lesser land parcels being put out for sale by the govt, developers who need to replenish their land banks may need to look towards the older private condo developments for enbloc opportunities or bid higher for the available Government Land Sales (GLS) land sites.
The 75,686 sq ft, 99-year leasehold site at Orchard Boulevard is zoned for residential development with commercial use on the first storey (image: URA)
Orchard Boulevard GLS Land Parcel
Last Thursday on 1 Feb 2024, UOL Group and Singapore Land Group (SingLand) jointly submitted the top bid of $428.3 million for the Orchard Boulevard GLS land parcel site which can yield 280 units and about 500 sq m of commercial space. - equivalent to a land rate of $1,617 per square foot per plot ratio (psf ppr) which was below market expectations.
Mr Liam Wee Sin, group chief executive of UOL said the Orchard Boulevard GLS land parcel site is a timely addition to UOL's luxury collections in Nassim, Meyer and Watten. UOL is planning to develop “a high-rise luxury development of 36 storeys or more to capitalise on the panoramic views Orchard Boulevard GLS land parcel site.
This bid is around 30% below the 2018 record price of $2,377 per square foot per plot ratio (psf ppr) set by the nearby Cuscaden Road government land sales (GLS) land parcel site (now known as Cuscaden Reserve) which was the last residential land parcel to be released in the Orchard / Tanglin area since 2018.
"In my opinion, UOL secured a good deal for the Orchard Boulevard GLS land parcel site as Orchard Road is going through a major transformation" said Kiwi Lim from the largest private real estate agency in Singapore, "the land site is also surrounded by embassies, GCB estates, medical centre and shopping malls in the exclusive prime Orchard area."
Latest Update on 21 February 2024:
Mainboard listed property development group UOL Group and Singapore Land Group (SingLand) have just been awarded the government land sales (GLS) site at Orchard Boulevard on 21 February 2024.
The plum orchard land parcel was awarded to United Venture Development (No.7), an 80:20 joint venture company between UOL Venture Investments, a wholly owned subsidiary of UOL Group, and SingLand Residential Development, a wholly owned subsidiary of SingLand.
2nd executive condo (EC) land parcel at Plantation Close in Tengah is the dark orange shaded area (image: URA)
2nd Plantation Close Executive Condo (EC) Land Parcel in Tengah
A 2nd executive condominium (EC) land parcel at Plantation Close in Tengah that was put out for tender by The Housing and Development Board garnered fewer-than-expected bids from developers on Thursday 1 Feb 2024, with the top bid of S$423.4 million or S$701 per square foot per plot ratio (psf ppr) coming from Hoi Hup Realty and Sunway Developments.
The Housing and Development Board tender that closed attracted only four bids, when market watchers had anticipated up to eight offers to come in at around S$710 psf.
Developers may be concerned about the oversupply of executive condos (EC) in the west area with the oncoming executive condos (EC) supply at the adjacent plot, which could potentially yield 495 new units and competition from two nearby Bukit Batok West Avenue executive condo (EC) projects, Altura EC and Lumina Grand EC.
The top bid on Thursday was slightly lower than the amount for the neighboring site also in Plantation Close at another tender last year 2023 in June. Last year's adjacent Plantation Close executive condo (EC) site saw nine bidders fighting for it and was also won by the same developer Hoi Hup Realty and Sunway Developments for S$703 per square foot per plot ratio (psf ppr), or S$348.5 million.
The Marina Gardens Crescent white site is the second site for sale in the Marina Gardens area (Photo: URA)
White Site at Marina Gardens Crescent
Last month in Jan 2024, the government land sales (GLS) tender for the white site at Marina Gardens Crescent drew just one bid at $770.46 million, submitted by a consortium comprising GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Japanese developer Mitsui Fudosan). The bid price works out to $984 per square foot per plot ratio (psf ppr) for the 99-year leasehold, 1.73ha white site. Analysts believe this lower bid may be due to the higher costs and challenges that will be faced by the developer for building close to an MRT line as well as the high costs of building an underground pedestrian link to the MRT station.
The Marina Gardens Crescent white site can be developed into a mixed-use project potentially yielding about 775 residential units, with commercial, hotel, residential, sports and recreational and other compatible components or a combination of two or more of these uses with a maximum gross floor area of 782,978 sq ft based on URA’s estimation.
Last year in June, there was another GLS site 'zoned residential with commercial at 1st storey' at the adjacent plot of land along Marina Gardens Lane that was awarded to a Kingsford Group-led consortium of developers for $1.034 billion or approximately $1,402 per square foot per plot ratio (psf ppr.
Latest Update on 8 Feb 2024:
The Urban Redevelopment Authority has rejected a $770.46 million bid submitted on Jan 18 by a consortium comprising GuocoLand, Hong Leong Holdings, and TID (a joint venture between Hong Leong Holdings and Japanese developer Mitsui Fudosan) for a government land sale (GLS) site at Marina Gardens Crescent.
Will Developers Sell Low If They Buy Low?
The pricing of condo property developments by property developers is influenced by various factors, and the purchase price of the land or property is one of them. However, it's important to note that property development involves a complex set of considerations, and the selling price is determined by more than just the acquisition cost. Below are some key factors to consider:
- Development Costs:
- Property developers incur various costs beyond the purchase of land, including construction costs, financing costs, planning and approval fees, marketing expenses, and more. These costs contribute significantly to the overall pricing strategy.
- Market Conditions:
- Property developers assess current market conditions, demand, and supply dynamics before setting selling prices. Economic factors, interest rates, and trends in the real estate market also play a crucial role.
- Profit Margin:
- Developers aim to achieve a reasonable profit margin to ensure the financial viability of the project. The selling price is often set to cover all costs and provide a return on investment.
- Location and Amenities:
- The location of the property, as well as the amenities and features offered, can impact the perceived value and consequently the selling price. Properties in prime locations or with desirable amenities may command higher prices.
- Target Market:
- Developers consider their target market and the affordability of potential buyers. The pricing strategy is influenced by the segment of the market they aim to attract.
- Government Policies:
- Government policies, such as regulations on development charges, stamp duties, and zoning restrictions, can affect the overall cost structure and pricing strategy of residential property developments.
- Competition:
- The level of competition in the real estate market, including the presence of other developers and available inventory, can influence developer's pricing decisions too.
"Buyers may think that developers may tend to price their new launches at a lower price if their bid is lower for the GLS land parcels. While developers may seek to acquire land at favorable prices to enhance their profit potential, the final selling price is determined by a combination of factors as mentioned above. Condo projects like Pasir Ris 8, The Arden, Normanton Park, Canninghill Piers, etc are just some recent examples." said Kiwi Lim real estate professional who have been analysing the market for more than ten years.
"Two attention grabbing transactions early this year on 9 Jan 2024 at $5,397 psf totaling $33 million for two units at the ultra luxurious The Ritz-Carlton Residences may be indicative of a new wave of Singapore PRs who rushed to apply for Singapore PR status after the foreigner Additional Buyer Stamp Duties (ABSD) was increased to 60%. I believe we may see more such Singaporean PR buyers after the Chinese New Year celebrations this year especially in the CCR districts where there is short supply of new condo projects." said Kiwi Lim.
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