BUY AND SELL A SINGAPORE PROPERTY FROM THE COMFORT OF YOUR HOUSE

The Prime flats in Kallang Whampoa emerged as the most sought-after units in February’s Build-to-Order (BTO) sales exercise, with four-room flats in the area attracting over five applicants per unit. As of Monday, February 17, 5 PM, there were 12,431 applications for the 5,032 new flats available in this exercise. The application period concluded at 11:59 PM the same day. Strong Demand for Tanjong Rhu Parc Front Tanjong Rhu Parc Front, the only Prime project in this BTO exercise, received an overwhelming response. A total of 4,232 applications were submitted for the 812 two-room flexi, three-room, and four-room flats available. Among them, four-room flats were the most sought after, with 2,488 applications for just 464 units. Similarly, Stirling Horizon in Queenstown, the sole Plus project in this exercise, garnered significant interest, attracting 2,571 applications for 1,126 units. Four-room flats were again the most in-demand. Prime and Plus flats are distinguished by their attractive locations and enhanced subsidies, ensuring affordability. However, they also come with stricter conditions to mitigate speculative demand. These include a 10-year minimum occupation period (MOP) and a subsidy clawback upon resale. Strong Demand for Two-Room Flexi Flats Among Singles Two-room flexi BTO flats remained highly popular, especially among singles and seniors. More than 4,000 applicants vied for the 1,411 two-room units available. The highest demand came from singles applying for units at Tanjong Rhu Parc Front, where the 261 two-room flexi flats were over 11 times oversubscribed. This surge in demand follows a policy shift in October 2024, which allowed singles to apply for two-room flexi flats in all locations, including mature estates. Analysts note that this has created more opportunities for singles to secure homes in well-connected, amenity-rich areas. Weaker Demand for Standard Flats in Non-Mature Estates In contrast, demand was lower for flats in non-mature estates like Woodlands and Yishun. Woodlands North Verge, the first project in the Woodlands North Coast precinct, saw three-, four-, and five-room flats undersubscribed among first-time applicants. Analysts attribute this to the area's currently limited amenities. Meanwhile, the Chencharu Green and Chencharu Vines projects in Yishun had slightly higher demand. The first-timer application rate for three- and five-room flats was 1.3, while four-room flats had an application rate of one. Overall Application Rates Decline Across all projects, there were 12,400 applicants for the 5,032 flats on offer, resulting in an overall application rate of 2.47 per unit. This marks a significant drop from the October 2024 sales exercise, which saw 35,678 applicants vying for 8,573 flats, with an overall application rate of 4.16. Property analysts highlight the impact of the high demand for the SBF exercise, where over 22,000 applicants competed for 5,590 available flats. Many buyers were drawn to balance flats due to their shorter waiting times. A More Balanced Demand-Supply Situation National Development Minister Desmond Lee noted a more balanced demand-supply dynamic in the BTO market. The overall application rate for first-time families across all flat types was lower compared to previous sales launches and even pre-pandemic levels. The median application rate for three-room and larger BTO flats for first-time families stood at 1.0. First-timer singles, however, continued to show strong interest in two-room flexi flats. The median application rate for three-room and larger Sale of Balance flats (SBF) from first-timer families was 2.5, the lowest in the past three years. This February’s SBF exercise featured the largest offering to date, with 5,590 units up for sale. Resale Market Supply Outlook Minister of National Development, Desmond Lee highlighted that the supply in the resale market remains relatively tight, with fewer flats reaching their MOP due to construction delays caused by the COVID-19 pandemic in 2019 and 2020. However, the situation is expected to improve in the coming years. The number of flats completing their MOP will increase steadily, rising from 8,000 in 2025 to 19,500 in 2028. Why Is Tanjong Rhu Parc Front So Popular? JT Chia, Managing Director at Propertyforsale, attributed the strong demand for Tanjong Rhu Parc Front to its strategic location between the Tanjong Rhu and Katong Park MRT stations and its proximity to the city center. Additionally, many units in this project are likely to offer scenic river views, further boosting its appeal. The announcement of the Kallang Alive Master Plan has heightened interest in the area, he added. Stirling Horizon’s Lower-Than-Expected Demand While Queenstown’s Stirling Horizon received a decent response, its overall application rate was lower than expected. The project attracted fewer applications compared to Holland Vista, the previous BTO launch in Queenstown, which recorded a striking 9.8 applications per four-room unit. In contrast, four-room flats in Stirling Horizon had an application rate of approximately 2.5. Stirling Horizon’s relatively long waiting period of more than four years may have dampened demand. Conclusion The February BTO exercise reflected evolving buyer preferences and a more balanced market. While Prime flats in Tanjong Rhu Parc Front saw overwhelming demand due to their prime location and scenic views, Stirling Horizon’s response was more subdued, likely due to its longer waiting period and competition from previous launches. With the number of flats reaching their MOP set to increase significantly in the coming years, homebuyers can expect a wider range of options in both the BTO and resale markets.

UOL, Singapore Land (SingLand), and CapitaLand Development are set to unveil their latest residential project, Parktown Residence, with previews commencing on Friday, February 7. The highly anticipated development, located in Tampines Avenue 11, will feature prices starting in the range of S$2,100 to S$2,300 per square foot (psf). Project Details and Unit Pricing Parktown Residence is a 99-year leasehold project encompassing 1,193 residential units across 12 blocks. The development includes: Two blocks of six or seven storeys, Eight blocks of 11 storeys, and Two blocks of 12 storeys. The project offers a variety of unit sizes and price points: One-bedroom (plus study) (463 to 506 sq ft): Priced from S$1.07 million (S$2,311 psf) Two-bedroom (592 to 764 sq ft): Starting at S$1.33 million (S$2,246 psf) Three-bedroom (926 to 1,184 sq ft): Priced from S$2.07 million (S$2,235 psf) Four-bedroom (1,335 to 1,496 sq ft): Starting at S$2.85 million (S$2,134 psf) Five-bedroom (1,679 sq ft): Priced from S$3.78 million (S$2,251 psf) The development sits on a substantial 550,000 sq ft site, acquired in a state tender in July 2023 for S$1.21 billion, equating to S$885 per square foot per plot ratio. The project is a 50-50 joint venture between UOL-SingLand and CapitaLand Development. Strategic Location and Connectivity Positioned in District 18, Parktown Residence will enjoy direct connectivity to the upcoming Tampines North MRT station on the Cross Island Line and a nearby bus interchange. The development will also be integrated with retail outlets, food and beverage spaces, a community club, and a hawker centre, ensuring convenience for residents. Anson Lim, UOL’s General Manager for Residential Marketing, emphasized the strategic timing of the launch. “The launch of Parktown Residence is timely, aligning with Singapore’s strong economic rebound in late 2024, which saw growth of 4 per cent. Launching Parktown Residence at the start of the year leverages this momentum as we anticipate continued recovery, supported by improved household incomes and economic stability.” Market Comparison and Prospects Parktown Residence enters the market as the first private residential launch in Tampines since the 2,203-unit Treasure at Tampines by Sim Lian, which debuted in March 2019. During its launch weekend, Treasure at Tampines sold 272 units at an average price of S$1,280 psf. By January 2025, resale prices ranged between S$1,600 psf and S$1,830 psf, while the median price for units sold in the Tampines planning area over the last six months stood at S$1,510 psf, according to URA caveat. With a scheduled booking date of February 22, Parktown Residence is expected to be completed by June 2030. Additionally, Tampines will see another mixed-use development in Tampines Street 94, where a Hoi Hup Realty-Sunway Developments joint venture secured a site in September 2024, outperforming five other bidders. As Tampines continues to evolve into a vibrant residential and commercial hub, Parktown Residence is poised to set a new benchmark for integrated living in Singapore’s eastern region. VVIP Preview and Showroom Location Andy Chia from ERA Realty is an official property agent of Parktown Residence for sale. Reach out to him at +6583239888 to schedule an exclusive preview at the showroom. You can get the Parktown floor plans and site plan from him.

MCL Land and CSC Land Group are set to preview their latest residential project, Elta, on Friday, February 7. Located in Clementi Avenue 1, the 99-year leasehold development comprises 501 units housed in two 39-storey towers, with prices starting from S$1.16 million for a one-bedroom unit. Unit Pricing and Size Breakdown The pricing details for the various unit types at Elta are as follows: One-bedroom units (506 square feet) start at S$1.16 million (S$2,288 per square foot or psf). Two-bedroom units (614 to 807 sq ft) start at S$1.39 million (S$2,260 psf). Three-bedroom units (926 to 1,023 sq ft) start at S$2.2 million (S$2,373 psf). Four-bedroom units (1,184 to 1,507 sq ft) start at S$2.8 million (S$2,363 psf). Five-bedroom units (1,776 sq ft) start at S$3.89 million (S$2,189 psf). Land Acquisition and Developer Partnership Elta sits on a 144,788 sq ft site that was secured through a state tender in November 2023 for approximately S$633.45 million (S$1,250 psf per plot ratio). The site attracted six bids, with MCL Land and CSC Land Group emerging as the highest bidders. This marks their first joint development, with MCL Land, a subsidiary of Hongkong Land, holding 51% ownership, and CSC Land Group, a subsidiary of China Construction (South Pacific) Development Co, holding the remaining 49%. Prime Location and Nearby Developments Elta is strategically positioned within District 5, offering convenient access to key amenities: Walking distance to Clementi Bus Interchange and Clementi MRT Station. Close proximity to reputable schools and the National University of Singapore (NUS). Adjacent to previous government land sale projects, including Clement Canopy (505 units, launched in 2017) and Clavon (640 units, launched in 2020) by the UOL Group. Both projects have since been fully sold. Market Trends and Competitive Pricing Clavon, the most recent launch in District 5, sold 442 units (approximately 70% of the project) during its weekend launch in December 2020. Units were priced between S$1,480 and S$1,850 psf according to URA caveat. Recent subsale transactions at Clavon in 2023 recorded prices ranging from S$1,800 to S$2,300 psf. Additionally, the median resale condo price in District 5 over the past six months stood at S$1,855 psf. Sales Timeline and Completion Elta will begin accepting bookings on February 22, 2025, and is projected for completion by 2028. With its convenient location, competitive pricing, and strong developer backing, Elta is expected to attract strong interest from both investors and homeowners alike. VVIP Preview and Showroom Location Andy Chia from ERA Realty is an official property agent of Elta for sale. Reach out to him at +6583239888 to schedule an exclusive preview at the Elta showroom. You can get the Elta floor plans and site plan from him.

Prime Minister Lawrence Wong reaffirmed the government's commitment to keeping public housing affordable for Singaporeans during a dialogue session on January 21. He assured that new Build-to-Order (BTO) flats will continue to be priced in relation to income levels rather than the resale market, ensuring accessibility for the majority of citizens. Addressing concerns over housing affordability, Mr. Wong noted that while reports of million-dollar HDB flats might cause anxiety, these prices must be viewed in the context of rising incomes. He pointed out that more than 80 per cent of first-time homebuyers today can finance their flats with Central Provident Fund (CPF) contributions, requiring little to no cash payments. This contrasts with earlier generations who, despite facing lower housing prices, had to allocate a significant portion of their take-home pay toward mortgages. To address rising property prices, the government has been ramping up the supply of both public and private housing. These measures are expected to help stabilize the property market over time, although the effects will take some time to materialize. Mr. Wong emphasized that the government remains vigilant in ensuring that BTO flats remain affordable for Singaporeans. HDB has various housing grants to benefit buyers in their flat purchases.  Enhanced CPF Housing Grant (EHG): Up to $120,000 for eligible first-time buyers. Step-Up CPF Housing Grant: $15,000 to help families upgrade from smaller flats to larger ones. Proximity Housing Grant (PHG)

As property resale prices continue their upward trajectory, Singapore’s Minister for National Development, Desmond Lee, has signaled that the government is open to implementing further cooling measures if necessary. However, he emphasized that existing policies must be given time to take effect before new measures are introduced. Current Measures and Their Impact Since December 2021, Singapore has introduced four rounds of cooling measures to curb property price inflation. The most recent measure, implemented in August 2024, reduced the loan-to-value (LTV) limit for Housing Board (HDB) flats from 80% to 75%. This move was aimed at tempering demand in the higher-end resale market, affecting roughly 10% of buyers. Another significant regulation, the 15-month wait-out period for private property owners before purchasing non-subsidized HDB flats, was introduced on September 30, 2022. This policy successfully curtailed demand from wealthier buyers, as the proportion of private home owners purchasing million-dollar HDB flats dropped from 34% in early 2022 to about 12% by the end of 2024. Despite calls from industry players to lift the wait-out period, Mr. Lee confirmed that it will remain in place until market conditions stabilize. In parallel, the government continues to increase housing supply to ease market pressures, with 100,000 Build-to-Order (BTO) flats set to be delivered between 2021 and 2025. Private housing supply is also being expanded, with 8,505 private homes to be released under the Government Land Sales programme in the first half of 2025. Addressing Market Psychology and Affordability Concerns Despite these interventions, HDB resale prices surged by 9.6% in 2024, nearly doubling the previous year's growth rate of 4.9%. Mr. Lee attributed this spike to temporary supply constraints, the appeal of centrally located properties, and a "sentiment-driven psychology" in the market. Reports of record-breaking million-dollar transactions have fueled expectations among both buyers and sellers, potentially exacerbating speculative behavior. To counter affordability concerns, the government has introduced greater transparency through recent transaction data on the HDB portal and the HDB Flat Eligibility (HFE) letter, which helps buyers assess their financial capacity before purchasing a flat. Additionally, financial assistance for first-time and lower-income buyers has been strengthened. The Enhanced CPF Housing Grant, increased in August 2024, now provides up to S$120,000 for families and S$60,000 for singles purchasing their first HDB flat. Striking a Delicate Balance Mr. Lee acknowledged that while demand-side cooling measures are crucial, they must be balanced against broader economic conditions. High interest rates, trade uncertainties, and geopolitical challenges necessitate a cautious approach to avoid overcorrecting and triggering a sharp downturn in the property market. "We are not averse to putting in new measures if necessary, because we need to ultimately make sure there's no property bubble, whether it's on the private side or the public housing side," he emphasized. With Singapore's property market at a crossroads, the government remains vigilant in its efforts to balance housing affordability with economic stability, ensuring that homeownership remains accessible for future generations.