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Why are property prices rising in Singapore despite global unrest?
As we peer into the economic landscape, clouds of uncertainty are seen hanging ominously over the horizon. The once-clear skies of economic stability have given way to a tempest of unpredictability, casting a shadow on global economic outlook. Covid, like an unseen force, continues to influence market sentiment, spending habits, investment decisions, disrupting global supply chains, labor markets and consumer behavior.
Recent global events has created an intricate web of challenges that defy predictions with uncertainty fueled by a myriad of factors. Governments today has to navigate uncharted waters through rising geopolitical tensions, fluctuating commodity prices, lingering effects of inflation and the uncertain shadow of the COVID pandemic.
"So, why are property prices rising in Singapore despite global unrest?" Real estate professional Kiwi Lim believe this may be the burning question among potential home buyers as they see property prices in Singapore continue to climb in spite of the above mentioned.
In September last year, the Urban Redevelopment Authority of Singapore (URA) announced that with effect from 01 June 2023, harmonisation of floor area will apply to all development applications by developers submitted to URA on or after 1 June 2023 and will apply to all Government Land Sale (GLS) and industrial Government Land Sale (iGLS) land parcel sites launched for sale on or after 1 September 2022.
Previously, agencies adopt different floor area measurements for various purposes. For example, URA uses gross floor area (GFA) to measure building intensity, SLA uses strata area to demarcate ownership, BCA uses statistical gross floor area (SGFA) to measure the total floor areas of a building, while SCDF uses accessible floor area (AFA) to determine fire safety requirements.
Moreover, agencies also define their various floor areas differently. For instance, URA’s GFA is measured to include the full thickness of external walls but excludes voids, whereas SLA’s strata area is only measured up to the middle of the wall and may include voids. This results in QPs expending a significant amount of time and effort calculating the various floor areas to fulfil the different agencies’ regulatory requirements.
The different floor area definitions also create confusion for property owners who wish to carry out addition and alteration works within their strata units, but encounter increase in GFA of the development even though there is no increase in strata floor area e.g. slabbing over of internal void space.
In September last year, the Urban Redevelopment Authority of Singapore (URA) announced that with effect from 01 June 2023, harmonisation of floor area will apply to all development applications by developers submitted to URA on or after 1 June 2023 and will apply to all Government Land Sale (GLS) and industrial Government Land Sale (iGLS) land parcel sites launched for sale on or after 1 September 2022.
Previously, agencies adopt different floor area measurements for various purposes. For example, URA uses gross floor area (GFA) to measure building intensity, SLA uses strata area to demarcate ownership, BCA uses statistical gross floor area (SGFA) to measure the total floor areas of a building, while SCDF uses accessible floor area (AFA) to determine fire safety requirements.
Moreover, agencies also define their various floor areas differently. For instance, URA’s GFA is measured to include the full thickness of external walls but excludes voids, whereas SLA’s strata area is only measured up to the middle of the wall and may include voids. This results in QPs expending a significant amount of time and effort calculating the various floor areas to fulfil the different agencies’ regulatory requirements.
The different floor area definitions also create confusion for property owners who wish to carry out addition and alteration works within their strata units, but encounter increase in GFA of the development even though there is no increase in strata floor area e.g. slabbing over of internal void space.
Harmonisation of Floor Area
Therefore, in consultation with industry representatives from the professional institutes, URA, SLA, BCA and SCDF have jointly reviewed the different floor area definitions to harmonise requirements across agencies, which aims to pave the way for coordinated submissions and improved productivity for the built environment profession.
Harmonisation of floor area - key changes are summarised as follows:
a. All agencies’ floor areas will be measured to the middle of the wall
b. All strata areas will be included as GFA
c. All voids will be excluded from strata area
d. BCA and SCDF will adopt an aligned definition for SGFA computation
"With all strata areas now included as GFA, developers will no longer have any 'bonus' space like balconies or aircon ledges to 'spread or off-load' their profit in order to reduce the overall per square foot (psf) prices of each unit of residence. Developers will therefore need to find new ways to enhance their offerings with efficient layouts and passing on the total GFA count as higher costs to homebuyers in the form of higher psf prices." said real estate analyst Kiwi Lim.
Construction Costs Expected To Continue Rising
The Singapore government has been working hard to increase work permit holders to ease the manpower shortages seen in the early days of the Covid-19 pandemic with contractors and developers getting their main source of foreign labor from both China and India.
However, construction costs have risen sharply and are likely to increase further as migrant worker domitory spaces are now more expensive due to acute shortages and higher costs. Prices of construction materials are affected by supply chain disruptions and higher costs of securing building materials amidst global unrest and uncertainty.
Prices of fuel and energy critical for building and construction is also expected to rise as fear of escalating unrest in the Middle East grows, adversely affecting oil supplies. Higher energy prices will raise the cost of manufacturing, operations and transportation of building materials in the construction of properties.
Demand for construction equipment will remain strong with the ongoing and upcoming condo projects, BTOs, healthcare & medical hubs, attractions, MRT construction and infrastructure, etc for the next 5 to 10 years in Singapore's masterplan.
Singapore's Economic Recovery Journey
In the aftermath of global challenges, Singapore emerges as a testament to resilience and adaptability on the economic front. The Lion City, known for its robust economic foundation, has embarked on a recovery journey marked by innovation, strategic planning, and a community-driven approach.
Navigating Challenges with Strategic Precision: Singapore's economic recovery strategy is characterized by a meticulous and data-driven approach. From the onset of the challenges, the government swiftly implemented measures to support businesses, protect jobs, and stimulate economic activity. The commitment to fiscal prudence and strategic investments has created a stable platform for recovery.
Innovation as a Catalyst: At the heart of Singapore's recovery lies a commitment to innovation. The city-state has leveraged its reputation as a hub for technology and research to drive advancements in sectors like digitalization, biotechnology, and sustainable solutions. The emphasis on a Smart Nation agenda positions Singapore at the forefront of global technological innovation.
Reskilling for the Future: Recognizing the evolving nature of industries, Singapore has placed a significant focus on reskilling and upskilling its workforce. Initiatives and partnerships between government, educational institutions, and businesses aim to equip individuals with the skills needed for the jobs of the future, fostering a resilient and adaptable workforce.
Green and Sustainable Initiatives: Environmental sustainability is a cornerstone of Singapore's recovery blueprint. The nation has embraced green initiatives, investing in renewable energy, sustainable urban planning, and eco-friendly infrastructure. These endeavors not only contribute to global environmental goals but also position Singapore as a leader in sustainable development.
International Collaboration and Trade: Singapore's recovery is intricately linked to its role as a global trade and financial hub. The nation has actively pursued international collaborations, fostering strong economic ties and trade partnerships. The establishment of travel corridors and open economic policies demonstrates a commitment to global interconnectedness.
Community-Driven Resilience: The resilience of Singapore's economy is not solely the result of government measures but is deeply rooted in the collaboration of its diverse and dynamic community. The resilience of businesses, the adaptability of individuals, and the collective spirit of the nation have played pivotal roles in navigating challenges and shaping the recovery trajectory.
As Singapore progresses on its recovery journey, the nation stands as a beacon of determination and innovation. The integration of technology, sustainability, and community engagement positions Singapore not just as a survivor of challenges but as a model for sustainable and inclusive economic growth in the post-pandemic world.
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Genting Singapore's expansion plans to develop a new waterfront complex at Resorts World Sentosa (RWS)
"The Waterfront"
Whether you're a thrill-seeker, nature enthusiast, or someone looking for a relaxing getaway, Genting Singapore's Resorts World Sentosa (RWS) offers a wide range of attractions and experiences to cater to various interests.
Genting Singapore just announced its plans on 10 November (Friday) 2023 to transform Sentosa as the number one tourism destination in Asia with S$6.8 billion pumped into its expansion plans to develop a new waterfront complex at Resorts World Sentosa (RWS) - "The Waterfront" is an iconic integrated development comprising approximately 700 hotel rooms and 228,658 square feet of retail shopping and dining space with construction expected to commence next year in 2024. "The Waterfront" will showcase to the world unique “experiential lifestyle content in a captivating blend of biophilic architecture that is designed by award winning firm Benoy” featuring an amazing waterfront sculpture.
In a statement with its financial results for the third quarter of 2023, Genting Singapore said the approved investment would “firmly anchor RWS as the most sought-after tourism destination in Asia, propelling the group’s strong future growth”. The S$6.8 billion will be funded through internal resources and the project has already received provisional government approval.
"The Waterfront" is an iconic new waterfront complex at Resorts World Sentosa (Image - Resorts World Sentosa)
Minion Land, The Forum & Singapore Oceanarium
Genting Singapore also gave updates on the status of its three ongoing projects: the transformation of The Forum shopping area which will feature three levels of experiential retail & multi-dimensional dining set in a "lush natural environment" in RWS, the development of a new Minion Land attraction in Universal Studios Singapore, and the rebranding of SEA Aquarium to the Singapore Oceanarium (SGO) - set to be three times larger than its predecessor comprising of a multi-zone immersive exhibition and a research and learning centre. All three projects are “progressing well”, and are expected to soft-open in early 2025.
Genting Singapore is confident of Singapore's future prospects as it posted a net profit of S$216.3 million for the third quarter ended September which is up 59 per cent from S$135.8 million in the corresponding year-ago period.
The group's revenue was up 33 per cent to S$689.9 million for the quarter, from S$519.7 million a year ago. Of this, revenue from its gaming segment rose 20 per cent on the year to S$459.6 million, while non-gaming revenue jumped 68 per cent to S$230.1 million.
Genting Singapore Group expect its gaming revenue to continue improving, exceeding pre-Covid levels in 2019 for both VIP and mass gaming segments.
Screenshot from Genting Singapore's 38th AGM
Resorts World Sentosa (RWS)
Being one of Asia's popular integrated resort destination, Resorts World Sentosa (RWS) currently offers a variety of attractions and entertainment options. Below are several attractions that are highly reviewed by visitors worldwide:
- Universal Studios Singapore: RWS is home to Universal Studios Singapore, a world-renowned theme park featuring thrilling rides, live shows, and attractions based on popular movies.
- S.E.A. Aquarium: One of the largest aquariums in the world, the S.E.A. Aquarium at RWS allows visitors to explore the fascinating underwater world and witness a diverse range of marine life.
- Adventure Cove Waterpark: If you enjoy water activities, Adventure Cove Waterpark offers exciting water slides, a lazy river, snorkeling with fish, and other aquatic adventures.
- Dolphin Island: Interact with dolphins and learn about marine conservation at Dolphin Island. This attraction provides opportunities for close encounters and educational experiences.
- The Maritime Experiential Museum: Explore the maritime history of Asia at this museum, featuring interactive exhibits and immersive displays.
- Luxurious Accommodations: RWS offers a range of accommodations, including high-end hotels and resorts, providing visitors with a luxurious and comfortable stay.
- Dining and Entertainment: RWS boasts a diverse selection of dining options, from fine dining to casual eateries. Additionally, there are vibrant nightlife options, including bars and entertainment shows.
- Shopping: The resort features a shopping street with a variety of retail outlets, offering a range of products from fashion and accessories to souvenirs.
- Festive Walk: Enjoy the vibrant atmosphere at Festive Walk, a promenade filled with shops, restaurants, and street performances.
- Spa and Wellness: Relax and rejuvenate at the spa facilities available at RWS, providing a perfect retreat for those seeking wellness activities.
- Entertainment Shows: Catch world-class entertainment shows, concerts, and performances at venues like the Resorts World Ballroom.
- Cable Car Ride: Take a scenic cable car ride to Sentosa and enjoy panoramic views of the surroundings.
Property To Watch: The Reef at King's Dock
Near the gateway to Sentosa, there was once a dock that became the second largest in the world, a luxurious landmark home for those who desire to live by the sea - The Reef at King's Dock was conceived and launched nearly three years ago in January 2021 selling more than 90% on its first preview weekend. The Reef at King's Dock is designed by visionary architect and founder of Rotterdam - Zurich - Shanghai based KCAP Architects & Planners, Kees Christiaanse and developed by reputable big boys in Singapore's real estate scene - Mapletree and Keppel Land.
Inspired by resort spas and contemporary luxury hotels, all 429 exclusively private residences at The Reef at King's Dock have been conceived as the perfect scape for the well-heeled and well-travelled. Like a series of urban sculptures, The Reef at King's Dock, with its 10 residential blocks, creates an exclusive, tranquil environment within the vibrant Greater Southern Waterfront at the edge of the upcoming Sentosa - Brani district.
The Reef at King's Dock allows you to enjoy life even closer to the sea without being on a yacht as it features Singapore’s first floating deck in a private residential development, resembling the exclusive Club Med Resort feel that offers quality seaside living synonymous with luxury, relaxation, and vibrant experiences. The revolutionary 180 metre long floating deck is the only one of its kind in Singapore and features an ensemble of swimming pools and a viewing deck overlooking the underwater colony of corals and marine life thriving at King’s Dock.
"Building progress has been on schedule and the developer is expecting the TOP and key collection date sometime next year in 2024. The Reef at King's Dock is currently 97% sold with some units of 3 bedroom, 3 bedroom + study and a last unit of 3 bedroom villa available for sale to the discerning few" say real estate professional Kiwi Lim from Huttons Asia "the recent announcement by Genting Singapore is also believed to bring excitement to the residents living nearby as well ".
Meanwhile, if you have yet to visit the various attractions at Sentosa, you might consider bringing your family to have a fun time visiting Resorts World Sentosa this weekend.
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J'den's sales preview on 11 Nov 2023 saw more than 87% of the total units sold in one day
Redefining the concept of unrivalled convenience, J’den - a fully integrated condo project developed by Capitaland sets a new precedent today at their sales preview where they sold more than 87% of their total 368 private residential units available in the whole development by 5pm on 11 Nov 2023 (Saturday). Analysts believe the average price of the units sold today should be ranging between $2,450 psf to $2,500 psf for J’den.
It is evident that Singapore's home buyers desire the ultimate convenience for an integrated lifestyle - where countless conveniences extend both within and without, interweaving organically with sheltered elevated pedestrian network known as J’Walk for easy sheltered access to Jurong East MRT Station and upcoming MRT stations (4 MRT Lines - 2 upcoming and 2 existing), large shopping malls like Westgate, Jem and IMM, medical hub, library, aircon bus interchange, Grade A offices and more..
Strategically positioned near edenic lake gardens, J'den offers unrivalled lifestyle experiences with its 40 storey building towering above the skyline of Jurong Lake District which includes a sky terrace and state-of-the-art amenities, above a two-storey commercial podium.
Real estate professional Kiwi Lim believe buyers are emboldened by the potential of Singapore’s next largest business district in Jurong Gateway and their confidence in the broad prospects and golden opportunities for growth in Jurong Lake District which is likely to translate into capital gains for them.
6.5-hectare white site in Jurong Gateway for sale to Master Developer
In June this year, the government released a 6.5-hectare white site consisting of three plots of GLS land parcels in the Jurong Gateway precinct for sale to a Master Developer to kickstart the next phase of development in Jurong Lake District and to cater to demand for office, private residential and complementary spaces in the medium term.
This White site comprises three plots of land (see map above) linking the existing commercial centre at Jurong East MRT interchange station to the new precinct and the future Jurong Lake District station of the Cross Island Line. With a potential yield of at least 146,000 sqm of office space, about 1,700 dwelling units and 73,000 sqm of gross floor area for complementary uses such as shop, restaurants, entertainment, hotel, community uses or more offices, the proposed integrated development will be progressively completed over the next 10 to 15 years and provide the critical mass to propel the development of this future business district.
The intention is for the Master Developer to comprehensively master plan the entire site to integrate the various uses, coordinate implementation of the development and adopt district-level urban solutions such as a district cooling system and district pneumatic waste conveyancing system. These systems allow for more efficient delivery of urban services, in the supply of chilled water and managing waste disposal at a district level and help in the realisation of larger sustainability objectives for JLD.
The Concept and Price Revenue Tender approach will be adopted to evaluate the tender submissions for the site to ensure that the selected concept proposal is aligned with the vision for the JLD. Tenderers are required to submit their concept proposals and tender prices separately. The concept proposals will first be evaluated against a set of criteria specified in the tender based on evaluation criteria. The intention is to shortlist concept proposals that feature a distinctive, highly sustainable mixed-use development with well-designed people-friendly public spaces and amenities to serve the needs of the business and local communities. Only compelling concept proposals will be shortlisted to proceed to the second stage of evaluation, which will be based on price only.
The successful tenderer will be required to build at least 70,000 sqm GFA of office space and 600 private housing units as part of the first phase of the development, but will have flexibility to phase out the remaining supply according to market demand, via an option scheme drawn up by URA. The tender for this Jurong Lake District Master Developer site that is situated beside J'den will close at 12 noon on 26 March 2024.
Future Resale Prices at Jurong Gateway District
As part of URA’s decentralisation strategy, JLD will be progressively developed into Singapore’s largest business district outside the city centre to cater to varied business needs. JLD is envisioned to be a model sustainability district with a goal to achieve net-zero emissions for new developments around 2045. It will have distinctive mixed-use developments with well-curated public spaces and amenities to serve the needs of the business and local communities as well as the general public.
Today, the area around the Jurong East MRT interchange station comprises office, retail and institutional uses. By 2028, a new Jurong Region Line station and an Integrated Transport Hub comprising offices, community spaces and retail amenities will be built next to Jurong East MRT interchange station. The Government will sustain the development momentum at JLD, through the release of sites for sale, with the supply carefully paced to take into account economic and market conditions. The commercial hub will be extended progressively and seamlessly southwards into a new 120-hectare precinct via elevated pedestrian linkages and lushly planted streets. With more flexibility in zoning, the expanded JLD allows companies to experiment with new development concepts and innovative ways to integrate live, work and play in a green and car-lite precinct.
"Future resale prices at Jurong Gateway Business District may likely see resale transactions hovering around $2,800 psf in 2028 as some J'den buyers may sell in the open market expecting to cash out with at least $200 psf gain on their J'den purchase today." said Kiwi Lim who has been analysing the real estate market for more than 10 years, "developers will also be be more confident in their bid for the GLS white sites in Jurong Lake District and elsewhere after today's amazing results at J'den's preview."
The recent GLS results also indicate that condos next year in the OCR may launch from $2,4xx psf with Singapore’s economy expected to grow at an average of around 3 percent per year from now till 2030 possibly outperforming other developed economies. Click to read the article below.
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Tenders for 3 plots of Government Land Sale (GLS) for Lorong 1 Toa Payoh, Clementi Avenue 1 and Pine Grove (Parcel B) land parcel sites closed today at 12 noon on 7 November 2023 (Tuesday).
"From the bid prices submitted, developers who successfully acquired these land parcels in the OCR regions may likely be launching these upcoming condo developments from $2,4xx psf onwards due to higher construction costs and higher energy prices from turmoil in the Middle East" said real estate professional Kiwi Lim who has been advising clients through his analysis of the market for more than a decade.
The Government Land Sale (GLS) site at Clementi Avenue 1 was launched for sale under the Confirmed List in August this year and can potentially yield about 500 private residential units sitting on 144,734 sq ft (1.34ha) of land space.
The tender for Clementi Ave 1 land parcel attracted 6 bidders as Clementi is a matured estate surrounded by amenities and is home to many good schools, example Nan Hua High School, Clementi Primary School, Pei Tong Primary School, Clementi Town Secondary School, NUS High School of Mathematics and Science, Singapore Polytechnic and National University of Singapore (NUS).
"Clementi Ave 1 land parcel is also near to two recently completed projects — The Clement Canopy and Clavon, both projects by UOL Group." said real estate professional Kiwi Lim "The Clement Canopy site was acquired in December 2015 at a land rate of $615 psf per plot ratio (ppr) and the Clavon site was acquired in July 2019 at $788 psf per plot ratio (ppr). The recent acquisition of the Clementi Avenue 1 site at approximately $1,250 psf per plot ratio (ppr) shows the amount of confidence the developer has for Clementi area.
Kiwi Lim believe that if the new upcoming condo on the plot of land in Clementi Ave 1 is going to be launched from around $2,400 psf next year, then it will make J'den a very attractive option for the lucky buyers who have registered to be invited for the VIP preview of J'den this Saturday on 11 November 2023. Capitaland is expected to be launching the rare fully integrated condo J'den this Saturday to registered buyers from $2,1xx psf. J'den is located at the previous JCube which is connected to almost the whole of Jurong Gateway CBD via a level 2 elevated walkway - J Walk, which allows residents to walk to Westgate, JEM, IMM, Ng Teng Fong Medical Hub, 4 MRT Lines (2 upcoming) and grade A offices.
The Government Land Sale (GLS) site at Lorong 1 Toa Payoh was launched for sale under the Confirmed List in September 2023 and can potentially yield about 775 private residential units. Measuring 169,456 sq ft, the 99-year leasehold site’s mature location will draw developers’ interest, along with the area's limited new private home supply.
Toa Payoh estate has not seen any new private home launches for nearly 8 years, with the last new condo launch being the 578-unit Gem Residences which was acquired by the developer for $755 psf per plot ratio (ppr) in May 2016, with 50% of units taken up at an average price of $1,425 psf on the first weekend of launch.
"The recent successful bid of $1,360 psf per plot ratio (ppr) is possibly due to strong upgraders’ demand for this neighborhood and may see developer launching at an estimated average of $2,5xx psf next year" said Kiwi Lim from the largest private real estate agency in Singapore.
The Government Land Sale (GLS) site at Pine Grove (Parcel B) was launched for sale under the Confirmed List a few months ago and can potentially yield about 565 private residential units. The tenders for Pine Grove (Parcel B) attracted 3 bidders with a land site area of 25,039.2 sq m with a maximum GFA of 52,583 sq m. It is estimated to yield about 565 housing units.
The Pine Grove (Parcel B) land parcel would be the second plot to be launched for tender in the area, and sits next to the just-launched Pinetree Hill project, which was sold to a joint venture between UOL Group and Singapore Land Group in June 2022 for S$671.5 million, giving a land rate of S$1,318 psf ppr.
The developer who successfully bidded for the Government Land Sale (GLS) site at Pine Grove (Parcel B) may likely have been inspired by from the sales of the 520-unit Pinetree Hill which was launched in July this year and has sold 151 units to date at an average price of about $2,369 psf, based on latest available caveats data.
The Government Land Sale (GLS) site at Pine Grove (Parcel B) was launched for sale under the Confirmed List a few months ago and can potentially yield about 565 private residential units. The tenders for Pine Grove (Parcel B) attracted 3 bidders with a land site area of 25,039.2 sq m with a maximum GFA of 52,583 sq m. It is estimated to yield about 565 housing units.
The Pine Grove (Parcel B) land parcel would be the second plot to be launched for tender in the area, and sits next to the just-launched Pinetree Hill project, which was sold to a joint venture between UOL Group and Singapore Land Group in June 2022 for S$671.5 million, giving a land rate of S$1,318 psf ppr.
The developer who successfully bidded for the Government Land Sale (GLS) site at Pine Grove (Parcel B) may likely have been inspired by from the sales of the 520-unit Pinetree Hill which was launched in July this year and has sold 151 units to date at an average price of about $2,369 psf, based on latest available caveats data.
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Pipes of the centralised cooling system concealed by trunking in a new 4-room BTO flat in Tengah. (Photo: SP Group)
Unlike conventional air conditioning which uses refrigerants, the Centralised Cooling System (CCS) is a more energy-efficient cooling solution when compared to conventional air-conditioning systems as it removes heat by piping chilled water into homes from centralised chillers on selected housing blocks with piping running through corridors and into each unit via the front door.
The Centralised Cooling System (CCS) was a key feature in Tengah's eco-friendly push. While the concept has been used in commercial settings, it is new to public housing and is optional for home owners. Those who prefer conventional air-conditioning units can install them instead.
However, recent residents of the units with Centralised Cooling System (CCS) have written to the authorities asking for usage rates to be adjusted or for fees to be completely waived for those looking to terminate their centralised cooling system contract.
One of the main concerns included how the supposed cost savings from opting for the cooling system instead of conventional air conditioning appeared to be lower than what they were told. To date, more than 100 residents have already sent petitions to the Prime Minister’s Office (PMO), expressing their "anxiety and disappointment over the issues" with the system detailing five key concerns regarding excessive charges, misleading advertisement and information, a lack of transparency, cancellation policy issues, and poor communication.
The concept of a centralised cooling system for residential homes is new and SP Group manages the sign-ups, installation and maintenance of the system while working with air-con manufacturer Daikin to install indoor units, diagnosing and resolving reported issues.
HDB's Centralised Cooling System (CCS) regulate the temperature within Tengah's BTO flats
On 6 November 2023 (Monday), SP Group said it understands “some time may be needed” for the earlier batches of homeowners to get used to the Centralised Cooling System (CCS) and as an additional goodwill gesture, SP Group will waive all centralised cooling system usage charges for Tengah customers during this interim period from now to 31 December 2023.
SP Group currently collects an extra 35 per cent of the installation charge from customers who choose not to proceed with the system after a 30-day cooling off period when they sign an installation agreement due to costs and resources incurred to secure supply and contracts for the installation. Customers also have to pay the full installation charge if they choose not to proceed after the fan coil units, piping and cabling have been installed (see table 1 below).
As a form of goodwill, SP Group announced it will now reduce the payment to be collected by 50 per cent in the event of cancellation as a “further gesture of goodwill”. This was after taking into account feedback from the early batch of homeowners and the initial issues that cropped up.
SP Group also said it has engaged with residents from more than 2,000 households through various platforms in the last 12 months through the Tengah website and app and 18 events held for residents to provide updates on their upcoming centralised cooling system activation and address their queries in person.
Meanwhile, HDB said it will continue to “monitor feedback” and support SP Group to ensure the roll-out of the centralised cooling system in Tengah “proceeds as smoothly as possible”.
The estimated amounts that Tengah homeowners will have to pay based on the number of fan coil units installed at the prevailing prices. (Photo: SP Group)
Tengah - Singapore's First Eco Town
Singapore's dream of creating the first eco-town to instill a greater sense of place, well-being, and quality of life is finally happening in the masterplan of Tengah Town, lovingly known as “Forest Town”, which draws on a slew of sustainable planning principles to create an ecological town of unprecedented depth and scope.
Tengah is the first HDB town to have a car-free Town Centre where green commute such as walking and cycling are encouraged. The separation of pedestrian flow from vehicular flow right in the heart of town will create a safer and friendlier space.
Tengah Town includes changing the lighting system for greater energy efficiency, finding pockets of space within the towns to put in more greenery and community gardens and having infrastructure such as bike paths and electric infrastructure for vehicles built into the design of the town.
Smart solutions in Tengah Township can help create a more sustainable, liveable, and safe environment, while enabling residents to benefit from more efficient services and greater convenience. Tengah eco-Town will house five districts and will include the creation of a 100m wide and 5km long forest corridor. Walking and cycling paths will create Singapore’s first car-free town centre.
Most bus stops will be within 300 metres of residential blocks in Tengah Town. Bus services are also comprehensively planned to facilitate both intra-town connection to key amenities and inter-town connection to nearby MRT stations and workplaces. Bus priority corridors also enhance the overall bus network.
"Tengah residents can access neighboring towns, Jurong lake District, Jurong Gateway CBD or to the city via the upcoming Jurong Region Line (JRL) or dedicated bus services. Within Tengah, there are 4 upcoming Jurong Region Line (JRL) MRT stations: JS3, JS4, JE1, and JE2. Brickland District will also be served by NS3A. Most Tengah residents will live within walking distance to an MRT station, providing greater convenience for all reducing the need for residents there to own a car." say real estate professional Kiwi Lim from Huttons Asia.
HDB's Biophilic Town Framework for Tengah
HDB has taken great effort to develop the Biophilic Town Framework to create a nature-centric neighborhood in a holistic manner, so that future residents living in Tengah can better connect with nature and enjoy its intrinsic benefits.
Guided by the Biophilic Town Framework, housing developments in Tengah are designed with 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, and to offer a greater sense of place. In addition to the Centralised Cooling System to provide a more energy-efficient cooling solution than conventional air-conditioning systems, HDB also has a few more innovative eco initiatives not yet seen in other towns for Tengah Town below:
Solar Photovoltaic Panels
In addition to the horizontal solar photovoltaic (PV) panel on residential rooftops, vertical solar PV panels will also be piloted. The solar energy collected from both the horizontal and vertical PV panels would be used to power the Centralised Cooling System (CCS) in residents’ homes, as well as supplement the electric load for the Electric Vehicle (EV) charging. The vertical solar PV panel will be neatly integrated with the building façade, resulting in an aesthetical appearance while generating solar energy.
Environmental simulations
HDB uses environmental simulation tools to design a windy and shady living environment. For example, we strategically place HDB blocks so that they do not obstruct wind flow to playground and preschools.
Pneumatic Waste Conveyance System (PWCS)
The PWCS is an automated waste collection system that uses high-speed air to transport household waste, and will replace the conventional truck collection at every residential block. The waste will be transported from surrounding blocks to a central location, through an underground pipe network. The PWCS helps create a cleaner and more hygienic living environment by reducing odor and spillages associated with manual collection, and minimises pest infestation.
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Tapping on Jurong Lake District’s exciting transformation, J’den features a 38-storey residential tower with 368 apartments above a two-storey commercial podium (Image: CapitaLand Development)
CapitaLand Development (CLD) recently launched J'den for the public to visit its sales gallery from 28 Oct (Saturday) which is located offsite (away from the actual J'den location) near Kent Ridge MRT at 71 Science Park Dr.
More than 7,000 visitors visited J'den sales gallery on its first weekend of public preview last weekend, and sales bookings for J'den will commence next Saturday on 11 November.
The enthusiastic turnout for J'den is widely due to the pent-up demand in private residential launches in Jurong Gateway - the vibrant heart of Jurong Lake District, as the last condo launched there was exactly 10 years ago known as J Gateway.
J Gateway was launched ten years ago with all of its 738 units sold in a single day when the project previewed in June 2013 at an average selling price of $1,480 per square foot (psf) — a record for the area at that time. Recent transacted resale at J Gateway sold above $2,100 per square foot (psf).
Potential buyers were also confident in the developer CapitaLand's reputation and the strong interest and desire to own integrated condo as well as the exceptional locational and product attributes of J'den. Known for delivering high-quality and innovative developments, CapitaLand has a track record of creating iconic properties that align with global standards of excellence in architecture, design, and sustainability. The company is committed to sustainable development, consistently integrating eco-friendly practices and green building principles into its projects.
JCube was home to Singapore’s only Olympic-size ice-skating rink and was a training venue for national athletes from the Singapore Ice Skating Association and the Singapore Ice Hockey Association. The only other ice rink is located at Leisure Park Kallang. CapitaLand is in the process of tearing down JCube to make way for the building of J'den.
J'den will be linked directly to the Jurong East MRT interchange station, Westgate and IMM Building via J-Walk, which is a covered elevated pedestrian network in the district. Jurong East interchange station now serves the East-West and North-South lines, and will link up with the future Jurong Region Line, which will open in phases from 2027 as well as the upcoming Cross Island Line (CRL) therefore giving future residents of J'den the utimate convenience of having 4 MRT lines at its doorstep and it will also be linked to the upcoming Jurong East Integrated Transport Hub, which will include an air-conditioned bus interchange, a public library, a community club and a sports centre, among other commercial spaces.
CapitaLand has announced that J'den will launch at prices starting from S$2,100 per square foot (psf) for the 99-year leasehold fully integrated condo project which is a redevelopment of the former JCube, a leisure and edutainment mall in Jurong East.
Market analysts expect the average selling prices of J'den’s residential units to range between S$2,200 and S$2,300 psf, considering that J Gateway's recent transaction exceeded $2,100 per square foot (psf) with a land lease that is older than J'den by ten years. This is because CapitaLand topped up J'den's land lease to start from 30 Aug 2023 for the 99 year leasehold project.
Kiwi Lim from Huttons Asia (the appointed marketing agency) said "it is interesting to note that there are no freehold condo projects in the whole of the Jurong Lake District as the government intends to transform the whole district into a model city for the world to see - a Singapore 2.0 city."
The Jurong Lake District is a major regional hub and Singapore's 2nd CBD - ideal for the next generation of businesses and talent to redesign the way we live, work, play and learn.
Integrated condo developments are usually very popular with buyers who desire ultimate convenience and appreciate the luxury of having everything at right at their doorstep. An integrated development usually offers rare convenience and connectivity to residents that is not available in almost 95% of condo projects in Singapore by combining residential units with a shopping mall and a transport hub with direct access to MRT stations and / or bus interchanges. As such, many buyers are usually very willing to pay a higher price for a residential condo as their home or investment property that forms part of an integrated development.
This is especially so when the cost of car ownership is expected to rise with COE expected to exceed $200,000 by 2030. Recent COE (Certificate of Entitlement) prices already exceeded $150,000 in exchange for a licence allowing you to own a car for only 10 years. Therefore, many feel home buyers may be willing to tradeoff car ownership for a home with easy transportation access as a more sustainable and affordable option.
Located at Bukit Timah Nature Reserve, The Reserve Residences offers vibrant living in touch with nature within an urban centre in the rejuvenated Beauty World neighbourhood. More than 90% sold, click on image to find out more
Will J'den sell more than 70% on its preview next weekend?
The market is comparing J'den with another recently launched integrated condo project located at the foothills of Bukit Timah Nature Reserve known as The Reserve Residences that offers vibrant living in touch with nature within an urban centre in the rejuvenated Beauty World neighborhood that sold more than 70 per cent of its 732 units during its launch in one weekend at an average price of $2,460 per sq ft (psf) as reported by its developer Far East Organization and venture partner Sino Group.
The Reserve Residences is a thoughtfully curated integrated development with transport hub that features a blend of 1- to 5-bedroom luxury residences, serviced residences, retail and public spaces. Situated in the Beauty World neighborhood, seamlessly connecting it to transport networks and nature attractions.
J'den located at Jurong Gateway which is touted to be the 2nd CBD in Singapore with many more upside potential developments coming up when compared to The Reserve Residences, shares a few similarities together.
Both integrated condo projects benefit from a network of connectivity provided by a transport hub seamlessly connected to transport networks, close proximity to major expressways, and multiple walkways linking you to nearby amenities. Nature is a few minutes’ walk away, with nature parks, attractions and shopping malls to explore.
An acclaimed architectural masterpiece by a highly awarded architect - WOHA has crafted an environment that harmonises people with nature at The Reserve Residences. Generous open living spaces are naturally lit and ventilated, infused with textures and lush greenery. Thoughtful residence layouts maximise spatial flexibility and connect to the outdoors, enveloping residents in the panoramic views of the neighboring forested reserves.
As the year 2023 comes to an end, real estate professional Kiwi Lim believe that J'den may set the tone for next year's property market sentiment possibly affecting how developers would bid for upcoming GLS land in 2024.
"I expect supply for upcoming new condos to be lower in 2024 and 2025 as I do not foresee many successful enbloc sales in the next two years" said Kiwi Lim "potential enbloc sellers are asking high prices and foreigners who own properties in these potential enbloc projects may be unwilling to sell due to the high 60% ABSD they need to pay if they buy a replacement private residential property. Without land from enbloc deals, developers would be hard pressed to secure much needed land parcels from GLS"
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What is the Jurong Lake District (JLD) about?
The Government has “high ambitions for the Jurong Lake District (JLD) to be a demonstrative site for sustainable living” in addition to being the largest commercial district outside Singapore’s city centre. Imagine working, living and playing in the district with convivial plazas, intimate public spaces, lush lakefront greenery and native fauna. Jurong Lake District is ideal for the next generation of businesses and talent to redesign the way we live, work, play and learn. Jurong Lake District presents an opportunity for companies to put down roots, create a brand-new campus and scale up easily.
Jurong Lake District (JLD) is a prominent and dynamic urban development in the western part of Singapore, known for its transformation into a thriving commercial, residential, and recreational hub. Nestled in the western region of Singapore, it encompasses the areas around Jurong Lake, including Jurong East and Jurong West.
As part of URA’s decentralisation strategy, Jurong Lake District (JLD) will be progressively developed into Singapore’s largest business district outside the city centre to cater to varied business needs. Jurong Lake District (JLD) is envisioned to be a model sustainability district with a goal to achieve net-zero emissions for new developments around 2045. It will have distinctive mixed-use developments with well-curated public spaces and amenities to serve the needs of the business and local communities as well as the general public.
Today, the area around the Jurong East MRT interchange station comprises office, retail and institutional uses. By 2028, a new Jurong Region Line station and an Integrated Transport Hub comprising offices, community spaces and retail amenities will be built next to Jurong East MRT interchange station. The Government will sustain the development momentum at Jurong Lake District (JLD), through the release of sites for sale, with the supply carefully paced to take into account economic and market conditions. The commercial hub will be extended progressively and seamlessly southwards into a new 120-hectare precinct via elevated pedestrian linkages and lushly planted streets. With more flexibility in zoning, the expanded Jurong Lake District (JLD) allows companies to experiment with new development concepts and innovative ways to integrate live, work and play in a green and car-lite precinct.
The Government has “high ambitions for the Jurong Lake District (JLD) to be a demonstrative site for sustainable living” in addition to being the largest commercial district outside Singapore’s city centre
The Jurong Lake District (JLD) integrates:
1. Modern Urban Hub: Jurong Lake District (JLD) represents Singapore's vision of a modern urban center, replete with skyscrapers, state-of-the-art infrastructure, and world-class amenities serving as a testament to Singapore's commitment to sustainable urban planning and development.
2. Central Business District (CBD): Often referred to as the "Second CBD" after the traditional Central Business District in the city center, Jurong Lake District (JLD) is positioned to become a major business and commercial hub in Singapore. It aims to offer a balanced work-play-live environment, reducing the need for residents to commute to the city center.
3. Iconic Architecture: The skyline of Jurong Lake District (JLD) is characterized by impressive architectural landmarks. Notable buildings include the towering office complexes, luxurious condominiums, and the futuristic-looking Jurong Regional Library.
A new recreation corridor with active public spaces will link Jurong Town Hall to the existing Science Centre building. These distinctive landmark buildings will take on new uses, continue to anchor the district and create a strong sense of place in Jurong Lake District (JLD). They could become centres for co-working, innovation, museums, art studios, theatres, event grounds and playscapes with open spaces for the community to enjoy.
A bird’s eye view of the new Singapore Science Centre
4. Green Spaces & waterbodies: Amidst the urban development, the Jurong Lake District (JLD) offers an abundance of green spaces and parks. The picturesque Jurong Lake Gardens is a centerpiece, providing a serene escape with lush gardens, waterfront promenades, and recreational facilities. It's an ideal place for outdoor activities, picnics, and enjoying nature.
Jurong Lake District (JLD) will have more than 100 hectares of park and greenery, and a 70-hectare lake with more than 10 kilometres of active waterfront. Throughout the district, streets are lined with canopy trees, forming green corridors that provide shade and act as nature ways for wildlife. A central green spine will link every development to the edge of Jurong Lake, drawing in parks and forests to cool the urban spaces. Water-sensitive urban design promotes climate resilience by channeling excess storm water from urban spaces into the surrounding Jurong Lake.
5. Residential Communities: The Jurong Lake District (JLD) features a mix of residential developments, offering a range of housing options to cater to diverse needs. These include condominiums, like JGateway and the upcoming J'den condo project by Capitaland and public housing (HDB flats).
6. Connectivity: The Jurong Lake District (JLD) is well-connected to the rest of Singapore. It is currently served by the North-South and East-West MRT lines, providing convenient access to various parts of the city. Additionally, road networks and public transportation options are robust, ensuring easy mobility. In the near future there will be two other lines serving this area: The Cross Island Line (CRL) and The Jurong Region Line (JRL).
The Cross Island Line (CRL) will run in an east–west direction from Changi to Jurong Industrial Estate via Loyang, Pasir Ris, Hougang, Ang Mo Kio, Sin Ming, Bukit Timah, Clementi and West Coast.
The Jurong Region Line (JRL) will significantly improve connectivity of the region and support the development of the Jurong area, which is set to be the largest commercial hub outside the Central Business District connecting key activity nodes in Jurong, such as the Jurong Industrial Estate, Jurong Innovation District and the Nanyang Technological University (NTU).
J’den is an upcoming new integrated condo project expected to be launched from 28 Oct 2023 with an exclusive 368 units, comprising 40 storeys with 2 levels of retail space located at the former JCube at Jurong East Central
7. Educational Institutions: The district is home to several educational institutions, including the National University of Singapore (NUS) Kent Ridge campus and Nanyang Technological University (NTU). This concentration of academic institutions contributes to the district's vibrancy.
8. Retail and Entertainment: Jurong Lake District (JLD) boasts a wide array of shopping centers, entertainment venues, and dining options. Westgate, IMM, and JEM are prominent malls where residents and visitors can shop, dine, and enjoy recreational activities.
9. Culture and Arts: The Jurong Lake District (JLD) features cultural attractions like the Singapore Chinese Garden, the Science Centre Singapore, etc. These venues offer enriching experiences and educational opportunities for residents and tourists alike.
10. Future Developments: The transformation of Jurong Lake District (JLD) is an ongoing process, with plans for continued expansion and development. This includes the Jurong Innovation District (JID), which will focus on research and innovation, further solidifying Jurong's status as a hub for technology and creativity. Jurong Innovation District is home to a manufacturing ecosystem of R&D centres, technology partners, training providers and Factories of the Future. Which means you can develop your latest prototype, experiment with ideas, and even kick-start production and distribution, all in one place.
J'den is 2023's most anticipated new condo launch. Click to view J'den website and to register your viewing slot with e-brochure & floorplans
What is "Singapore 2.0"?
"Singapore 2.0" is a visionary concept that represents the island nation's ongoing efforts to evolve, adapt, and position itself for a dynamic and sustainable future. It reflects Singapore's commitment to innovation, economic transformation, and social progress.
How is "Singapore 2.0" exemplified by Jurong Lake District (JLD)?
1. Digital Transformation:
The Jurong Lake District (JLD) will harness the power of technology to become a Smart City. Initiatives include widespread adoption of digital solutions, the development of a smart Jurong Gateway city network with advanced use of data analytics to improve public services and urban planning within Jurong Lake District (JLD).
2. Sustainable Living:
Sustainability is at the core of Singapore 2.0. The Singapore government will be investing billions in green technologies, renewable energy sources and sustainable urban planning to mitigate climate change and reduce its carbon footprint in the development of Jurong Lake District (JLD). The government works together with reputable developers like Capitaland to achieve Net Zero carbon emissions for Jurong Lake District (JLD) by 2050, as part of Singapore's wider sustainability targets, which include accelerating Singapore's transition to a low-carbon townships and cities, improving water conservation and resilience, and promoting a circular economy.
3. Innovation Ecosystem:
The International Business Park (IBP) of Jurong Lake District (JLD) aims to propel Singapore to the forefront of becoming a global innovation hub, fostering entrepreneurship, supporting startups, and attracting research and development activities in sectors like biotech, fintech, and artificial intelligence.
The International Business Park (IBP) has established itself as an attractive site for corporations to set up their regional headquarters, innovation centres and other operations. It is situated next to the upcoming Jurong Lake District – widely labelled as Singapore’s second CBD – comprising a commercial hub with a vibrant mix of office, retail, residential, hotel and entertainment and a leisure precinct Lakeside. The thriving business park is also strategically located near Jurong Innovation District, known as the future advanced manufacturing hub. Key companies that call the International Business Park (IBP) home include Acer, JGC Singapore, Creative Technology, ThyssenKrupp, Evonik, Johnson Control etc.
4. Education and Skills Development:
Preparing the workforce for the future is a priority. The Devan Nair Institute for Employment and Employability (e2i) is a training institute at Jurong Gateway in Jurong Lake District (JLD) that focuses on providing education and training to enhance the employability of individuals through its various comprehensive lifelong learning initiatives to upskill and reskill workers. It is named after Devan Nair, a former President of Singapore. e2i offers a wide range of courses and programs designed to equip individuals with the skills and knowledge they need to succeed in the job market. These programs cover various industries and sectors, including healthcare, hospitality, manufacturing, and more.
In addition to training and education, e2i also provides career advisory services and job placement assistance to help individuals find suitable employment opportunities. They work closely with employers and industry partners to ensure that their training programs align with the needs of the job market. The institute plays a crucial role in Singapore's efforts to enhance the skills and employability of its workforce, contributing to the nation's economic development and growth.
5. Healthcare Advancements:
Singapore will continue to invest in healthcare infrastructure and research striving to be a leader in medical innovation through Ng Teng Fong General Hospital - a prominent healthcare facility located in Singapore's Jurong Lake District (JLD). Ng Teng Fong General Hospital is part of the National University Health System (NUHS) and is situated in the Jurong East area. The Ng Teng Fong General Hospital is known for providing a wide range of medical services and specialties to the community, including General Medicine, Surgery, Obstetrics and Gynecology, Pediatrics, Orthopedics, Cardiology, Oncology, Radiology, Neurology, Urology and more.
The Ng Teng Fong General Hospital is equipped with modern medical technology and facilities to offer comprehensive healthcare services to patients. It also has a strong focus on research and education, collaborating with the National University of Singapore (NUS) to train future healthcare professionals to integrate telemedicine, precision medicine, and advanced healthcare technologies into the healthcare system.
J’den is an upcoming integrated condo launch in Jurong Lake District's Jurong Gateway CBD. It will house 368 residential units with full facilities and 7 commercial units. Sign up for the latest prices, floor plans, e-brochure and secure a viewing slot to view show flat.
Jurong Lake District is ideal for the next generation of businesses and talent to redesign the way we live, work, play and learn where amenities, green spaces and public transport nodes will be within 10-minutes reach
6. Green Spaces:
The Jurong Lake District (JLD) is enhanced with large green spaces, parks, waterbodies and recreational areas. Singapore 2.0 envisions a city where nature and urban living co-exist harmoniously, promoting well-being and quality of life which is exemplified by Jurong Lake District (JLD) with the largest national garden in the heartlands - The 90-hectare Jurong Lake Gardens which comprises Lakeside Garden (formerly Jurong Lake Gardens West), Chinese and Japanese Gardens (formerly Jurong Lake Gardens Central), Garden Promenade (formerly Jurong Lake Gardens East), Therapeutic Garden, Heron Island, etc.
7. Urban Planning and Housing:
Housing options are diversified to meet the evolving needs of the population. Jurong and Jurong Lake District (JLD) in particular, is undergoing significant development to become a vibrant, sustainable district.
8. Cultural and Creative Arts:
Singapore is nurturing its cultural and creative industries. Investments in arts infrastructure, cultural events, and creative talent are part of the vision for a more culturally vibrant nation and will be seen in Jurong Lake District (JLD) e.g. Singapore Science Centre that integrates science and art and artistic events held at the Jurong Regional Library.
9. Global Connectivity:
Singapore's strategic location as a global trade and transportation hub is reinforced through infrastructure projects like Changi Airport's Terminal 5 and the Tuas Mega Port as well as the Jurong Lake District (JLD).
10. Social Inclusivity:
"Singapore 2.0" emphasizes social inclusivity ensuring a high quality of life for all residents. Residents staying in Jurong and Jurong Lake District (JLD) will get to enjoy unparalleled convenience with MRT stations within 10 minutes walk from their homes, car lite environment surrounded by amenities, e.g. shopping malls, hospitals, library, attractions, nature, etc
This "Singapore 2.0" vision reflects Singapore's determination to remain at the forefront of economic, technological, and social progress in an ever-changing world. "Singapore 2.0" embodies the nation's resilience and adaptability, ensuring that Singapore remains a beacon of innovation and prosperity on the global stage.
"The Singapore government will be focusing on the Jurong Lake District (JLD)'s development in the next two decades with billions of dollars pumped into the area to make the Jurong Lake District (JLD) a perfect example of a "Singapore 2.0" visionary city. The government will be planning to sell of GLS sites including white land parcel sites progressively within the district to transform the Jurong Lake District (JLD) into a very desirable city for Singaporeans to work, live and play." said real estate professional Kiwi Lim from Huttons Asia who is appointed to market the upcoming J'den integrated condo project by Capitaland at the site of JCube which will be demolished soon.
6.8 ha GLS white site will be released for sale to a master developer
This year, a 6.8 hectare white site was released for sale by URA in June 2023 for tender to a master developer comprising three plots of land linking the Jurong East MRT interchange station and the future Jurong Lake District station of the Cross Island Line. According to URA, the intention is for a single developer to comprehensively master plan the site and use district-level urban solutions (such as a district cooling system) that will be integrated within the mixed-use development, which will propel Jurong Lake District (JLD) towards the next phase of transformation and an achievement for Singapore, as it spurs new economic activities and creates more jobs.
The proposed integrated development on the white site at Jurong Lake District will be progressively developed over the next five to 10 years to cater to market demand. The successful tenderer will be required to build at least 70,000 sqm (753,480 sq ft) GFA of complementary uses such as retail, hotel or community uses and 600 private housing units as part of the first phase of the development but will have some flexibility to phase out the remaining supply according to market demand.
The government has opted for a master developer approach to developing the site which usually entails a two-envelope tender system where design and concept, in addition to the price tendered, will be used in its sale. Real estate analyst Kiwi Lim believe the developer who wins the tender will have to work closely hand-in-hand with the government's plan to adopt a broad planning approach for Jurong Lake District where flexi-use sites will be interspersed with business park uses allowing companies to locate all their activities and teams in one place. Large sites that will be offered for bidding by the government will give developers the flexibility to create scalable campuses tailored to business needs at competitive rents.
Residents in the 600 units of the first phase of the integrated development on the GLS white site will enjoy proximity to amenities from shopping malls, a regional library, Jurong East MRT interchange station and bus interchange as well as attractions such as Jurong Lake Gardens, the new Science Centre and other new tourist developments.
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Singapore's Prime Minister's Office (PMO) revealed on Friday (Sep 29) that Singapore's total population as at June 2023 is standing at 5.92 million people - an increase of 5 per cent from the year before (see below graph).
This is the highest recorded figure in Singapore's history as the figures were published in the annual Population in Brief report by the National Population and Talent Division, Prime Minister's Office.
Last year in 2022, the total population rose for the first time since the Covid-19 pandemic hit, to around 5.638 million. The publication by the National Population and Talent Division and partner agencies said: “Taking into account the decline in total population in 2020 and 2021 amid the Covid-19 pandemic, the average total population growth rate over the past five years was comparable to the preceding five-year period.”
This is the highest recorded figure in Singapore's history as the figures were published in the annual Population in Brief report by the National Population and Talent Division, Prime Minister's Office.
Last year in 2022, the total population rose for the first time since the Covid-19 pandemic hit, to around 5.638 million. The publication by the National Population and Talent Division and partner agencies said: “Taking into account the decline in total population in 2020 and 2021 amid the Covid-19 pandemic, the average total population growth rate over the past five years was comparable to the preceding five-year period.”
Total Population in Singapore, as at June 2023
Total Population by residency status in Singapore, as of June 2023
The citizen and Permanent Resident (PR) populations increased by 1.6 per cent (3.55 million to 3.61 million) and 3.7 per cent (0.52 million to 0.54 million) respectively between June 2022 and June 2023 (see above graph). With the easing of travel restrictions related to COVID-19, more citizens and PRs living overseas returned to Singapore, and this was the largest contributing factor to the increases in the citizen and PR populations.
As at June 2023, the non-resident population stood at 1.77 million, an increase of 13.1 per cent from June 2022. The increase in the non-resident population was mainly due to foreign employment growth in Singapore from June 2022 to June 2023 (see below graph). The increase was seen across all pass types, and the largest increase came from Work Permit Holders in the Construction, Marine Shipyard, and Process sectors, as contractors hired more workers to catch up on projects that were delayed by COVID-19. The remaining increases in foreign employment were spread across sectors as firms backfilled positions vacated by non-residents during the pandemic.
Foreign Employment Growth in Singapore, as at June 2023
The proportion of our citizen population aged 65 years and above is rising, and at a faster pace compared to the last decade. Large cohorts of “baby boomers” have begun entering the post-65 age range (see below graph).
Citizen population by broad age groups in Singapore, as at June 2023
Citizen population by broad age bands in Singapore, as at June*
Currently, 61.0 per cent of citizens are aged 20-64 years. This proportion has decreased from 64.9 per cent in 2013. Conversely, the proportion of citizens aged 65 and above has increased from 11.7 per cent in 2013 to 19.1 per cent in 2023. By 2030, around 1 in 4 citizens (24.1 per cent) will be aged 65 & above (see graph above).
In 2022, there were 24,767 citizen marriages, 5.7 per cent more than the 23,433 citizen marriages in 2021 (see graph below). The number of citizen marriages increased for the second consecutive year since 2020. The increase could have been contributed by couples resuming their marriage plans after disruptions caused by the COVID-19 pandemic. However, the annual average number of citizen marriages in the last five years (22,700) remained lower than that in the preceding five years (23,600).
Citizen marriages in Singapore, 2012 - 2022
Citizen births in Singapore from 2012 - 2022
There were 30,429 citizen births in 2022, 4 per cent fewer than the 31,713 citizen births in 2021 (see above graph). The annual average number of births in the last five years (31,800) was also lower than that in the preceding five years (32,700).
These figures and graphs above are extracted from the annual Population in Brief 2023 publication, which provides key updates and trends on Singapore’s population.
"This 2023 population figure exceeded analysts projection in 2022 where they projected Singapore's population to trend around 5.7 million in 2024 and 5.8 million in 2025, according to sophisticated econometric models" said real estate professional Kiwi Lim.
"Moving forward, this may put additional pressure on the housing market as the demand for residential homes may increase due to a faster population growth."
Kiwi Lim also believe that a larger population can also lead to the formation of a critical mass. Critical mass refers to a point at which a specific quantity or size of something is necessary to trigger a particular action, event, or phenomenon.
How does a larger population relate to the concept of critical mass in economics?
- Economic Activity: In the context of economics, a larger population can create a critical mass of consumers. When there are enough consumers in a market, businesses are incentivized to enter that market, leading to increased economic activity, competition, and potentially greater innovation.
- Infrastructure Development: A growing population can prompt the development of critical mass in infrastructure projects. For example, the construction of a new public transportation system may become financially viable when there's a sufficient population to support its use.
- Social Movements: In social and political contexts, a larger population can provide the critical mass needed for social movements or political revolutions. When a significant portion of the population supports a cause, it becomes more likely to effect change.
- Technological Adoption: In the tech industry, a larger user base can create a critical mass for the adoption of new technologies or platforms. For instance, social media platforms become more useful and engaging as more people join and use them.
- Cultural Impact: In cultural terms, a larger population can influence the critical mass of cultural trends or shifts. When a particular idea or trend gains enough popularity within a population, it can lead to cultural change.
- Resource Allocation: In resource management, a larger population may necessitate the allocation of resources to meet basic needs. A critical mass of people needing access to food, water, healthcare, or education can drive policies and initiatives to address these needs.
- Market Demand: In business, a larger population can lead to a critical mass of demand for specific products or services. Companies may invest in production and marketing to cater to this larger customer base.
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Image from Straits Trading website
Straits Developments, a subsidiary of conglomerate The Straits Trading Company launched two new property investment products on 10 September 2023 to allow its eligible shareholders to own shares in two high-end Singapore residential properties in its real estate portfolio under its fractionalised investment real estate platform: FIR-ST.
Eric Teng, group COO and CEO of Straits Developments Pte Ltd, says, "FIR-ST is a unique investment product that offers diversification for investors who wish to gain exposure to Singapore residential real estate in bite-sized fractions."
According to Straits Trading, their FIR-ST asset fractionalisation offer investors exposure to a condominium unit in Duchess Residences - a 999-year leasehold development located at 108 Duchess Avenue in Bukit Timah as well as a freehold good class bungalow (GCB) located at 8A Cable Road, Chatsworth Park.
Both properties are offered to Strait Trading Shareholders’ Club registrants only. Shareholders who hold at least 100 shares of Straits Trading can register with the Shareholders’ Club. Registration is free and voluntary for all shareholders. SDPL believes FIR-ST offers advantages over other property-based asset classes because it improves accessibility to high value properties that have high barriers to entry. Moreover, FIR-ST provides exposure to property investment without the hassles associated with property ownership as a Straits Trading unit will be responsible for the administrative work and maintenance of the properties.
What is Asset Fractionalisation?
Asset Fractionalisation process involves dividing the properties into fractions, allowing investors to buy and own a portion of each property at a fraction of their value. Each investor will get a share - or a fraction of the rental income from the underlying property and enjoy any dividends generated by that property, giving them exposure to exclusive GCB and high-quality condominium located in District 10 allowing them a share in the potential appreciation of underlying property.
The innovative investment products offer its Shareholders’ Club registrants, preference shareholder investors exposure to high-quality and exclusive Singapore residential properties at a fraction of its value through preference shares to receive dividends, which will be paid on a semi-annual basis. During the investment period, the underlying properties continue to be owned by the existing owners while investors enjoy a share of the economic returns. At the end of the expected investment period of 5 years, the preference shareholders may enjoy returns which reflect a share in the potential appreciation in value of the underlying property via a special payout. The dividends and special payout are non-guaranteed and subject to the performance.
What properties can investors choose under FIR-ST?
FIR-ST is a unique investment product that offers diversification for investors who wish to gain exposure to Singapore residential real estate in bite-sized fractions.
The first underlying property is a 999 year leasehold condo unit at Duchess Residences located near prestigious schools, like Nanyang Primary School and Hwa Chong Institution. Developed by Duchess Development Pte Ltd, a subsidiary of City Developments Limited (CDL), Duchess Residences is situated in the prestigious District 10 of Singapore, specifically at 81 Duchess Avenue enjoying a prime location in the Bukit Timah area, known for its upscale living and proximity to various amenities. The minimum investment amount for investors to own a share of Duchess Residences under FIR-ST is S$200,000.
The second underlying property is a freehold Good Class Bungalow (GCB) located at 8A Cable Road, Chatsworth Park. With limited supply of approximately 2,800 plots, GCBs are a niche segment of Singapore’s residential property and only accessible by ultra-high-net-worth investors, but through FIR-ST, investors may gain economic exposure to this asset class at a fraction of the property value. The minimum investment amount is S$500,000.
Real estate professional Kiwi Lim felt this may present itself as an innovative solution to enable property investors to enjoy ownership of high-quality properties without having to fork out hefty Additional Buyer's Stamp Duties (ABSD) while allowing them a share in the potential appreciation of underlying properties where dividends are paid on semi-annual basis over the investment period.
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At this year’s 2023 National Day Rally (NDR), Singapore's Prime Minister Lee Hsien Loong assured Singaporeans that the government will try its best to cushion its people in an environment where rising geo-political tensions and economic uncertainty is threatening Singapore. The United States-China rivalry, the war in Europe, a fraying global economic order and elevated inflation leading to rising living costs are just some issues troubling many countries across the globe and a small country like Singapore will need great political skills to navigate safely through a tumultuous environment.
The Prime Minister also focused on reaffirming the government’s commitment to Singaporeans towards affordable, accessible public housing, the government is consistently studying and updating Singapore's housing framework to better meet the needs of Singaporeans.
Prime Minister Lee Hsien Loong announced at the National Day Rally (NDR) speech that the government will remove the distinction between mature and non-mature Housing and Development Board (HDB) estates from the 2nd half of 2024 next year, replacing it with a new framework of “Prime”, “Plus” and “Standard” flats allowing for greater differentiation in the pricing and resale conditions depending on flat location and demand, with the threefold aim of maintaining affordability, achieving a good social mix and upholding fairness.
The Prime Minister also focused on reaffirming the government’s commitment to Singaporeans towards affordable, accessible public housing, the government is consistently studying and updating Singapore's housing framework to better meet the needs of Singaporeans.
Prime Minister Lee Hsien Loong announced at the National Day Rally (NDR) speech that the government will remove the distinction between mature and non-mature Housing and Development Board (HDB) estates from the 2nd half of 2024 next year, replacing it with a new framework of “Prime”, “Plus” and “Standard” flats allowing for greater differentiation in the pricing and resale conditions depending on flat location and demand, with the threefold aim of maintaining affordability, achieving a good social mix and upholding fairness.
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In Singapore, both singles and unwed single parents have housing options provided by the Housing and Development Board (HDB), but there are some differences in eligibility and the specific schemes available to them:
- Singles: Singles who are at least 35 years old can apply for HDB flats under the Single Singapore Citizen Scheme or the Joint Singles Scheme. Under the Single Singapore Citizen Scheme, eligible singles can purchase a new or resale HDB flat. Under the Joint Singles Scheme, two singles who are at least 35 years old and are listed as co-applicants can jointly apply for a new or resale flat.
- Unwed Single Parents: Unwed single parents are also eligible for HDB flats, but they have a separate scheme called the Public Scheme for Singles (with dependents). Under this scheme, unwed single parents with at least one child who are Singapore Citizens can apply for a new or resale HDB flat. Eligible unwed single parents can apply for a 2-room Flexi flat or a 3-room flat.
Over the decades, the rules for singles purchasing HDB flats have changed progressively with the government raising housing grants and increasing access to more flat types for singles. Initially, singles were not allowed to buy public flats when HDB's home ownership scheme was introduced in the 1960s. This has changed over the years where eligible unmarried Singaporeans are able to buy a resale flat under the Single Singapore Citizen Scheme that was introduced in 1991 allowing singles aged 35 and above to buy from a limited pool of smaller flats from the resale market.
At the National Day Rally 2023 on Sunday, Prime Minister Lee Hsien Loong announced changes to housing policies that will allow singles to have more housing choices.
Singles will be able to buy new two-room flats across all three housing types
From 2nd half of next year, eligible singles will be able to apply for a two-room Flexi flat in all locations across “Prime”, “Plus” and “Standard” flats instead of the current restriction which means they can purchase only from non-mature estates.
Singles will also be able to buy resale flats across all three categories, though their choice of prime units will again be restricted to two-room flats. They will also be able to buy a Standard or Plus flat of any size, or buy a two-room Prime flat from the resale market.
Unwed single parents can apply for BTO flats in matured estates
Unwed single parents over the age of 21 who previously can only buy a 3-room BTO flat in non-mature estates can now also expect to apply for BTO flats in matured estates with the abolishment of the classification between mature and non-mature estates.
"I believe this is great news for unwed single parents who desire to apply for 3-room BTO flats in matured estates to live near their parents so that their parents can conveniently visit to help take care of their children" said real estate professional Kiwi Lim
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Factors contributing to Singapore's property market
Singapore's property market is always known around the world for its resilience and stability, with the city-state often exhibiting robust performance on a land-scarce island. Kiwi Lim believe several factors contributed to this phenomenon:
- Limited Supply of Land: Singapore's small land area and strict land-use planning policies have limited the availability of new land for development. This scarcity of land inadvertently create a sustained demand for property.
- Strong Economic Fundamentals: Singapore has a strong and diversified economy with a stable political environment attracting both local and foreign investors, as well as high quality expatriates from MNCs, driving demand for residential and commercial properties.
- Government Policies: The Singaporean government has implemented various housing policies to manage and cool down the property market, with more than ten cooling measures already implemented to prevent property bubbles from forming while managing the nation's strong desire of home ownership.
- Foreign Investment: Singapore is an attractive destination for foreign investors due to its status as a global financial hub. Foreign investment in property, especially luxury real estate, has played a role in sustaining the market.
- Rental Market: The rental market in Singapore, driven by expatriate demand often remains strong which appeal to property investors looking for good rental income.
- Infrastructure Development: Ongoing infrastructure projects, such as transportation improvements and urban redevelopment consistently contribute to the overall attractiveness of different regions within Singapore.
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