23 to 29 May 2023
The Reserve Residences, Far East Organization, and Sino Group’s joint development project in Upper Bukit Timah has sold 520 of its 732 or 71% of its total units at an average price of $2,460 per sq ft (PSF) during its launch over the weekend. Meanwhile, two developments in Tengah – including the town’s biggest launches yet – will be launched for sale tomorrow (30 May 2023) as part of the May 2023 BTO launch.
1. The Reserve Residences sells 71% of total units at average $2,460 PSF
The Reserve Residences, Far East Organization, and Sino Group’s joint development project in Upper Bukit Timah, has sold 520 of its 732 units or 71% of its total units at an average price of $2,460 PSF during its launch over the weekend, reported The Business Times.
On the well-received performance, Dr Tan Tee Khoon, Country Manager – Singapore, PropertyGuru said: “In our current climate, one would assume that escalating interest rates combined with an uncertain external economic environment would lead to a slowing in market demand. Indeed, the PropertyGuru Singapore Property Market Report Q2 2023 confirms this shift.
Perhaps the allure lies in the tangibility of real estate. Real property is an asset class one can physically see and touch, their geographical locations offering an enticing prospect to those for whom travel is a significant pain point.
Signs that The Reserve Residences would perform well first surfaced after analysing proprietary data on our data platform. We could extrapolate that this project in the Beauty World locale will be at least 50% sold.”
The Reserve Residences’ 1-bedroom units were fully sold out, with Singaporeans and permanent residents (PRs) accounting for 99% of buyers. Three US nationals – who are subject to the same Additional Buyer’s Stamp Duty (ABSD) rate as Singaporeans – also purchased one-bedroom units.
Analysts said sales were driven by the project’s high “rentability” since it is part of an integrated transport hub.
Related article: What Do Singaporeans Think About the April 2023 Property Cooling Measures?
2. A look at why buyers continue to snap new condos despite rising prices
Despite the rising prices of private residential properties, property cooling measures and economic uncertainties, newly launched developments in Singapore continue to receive strong interest from prospective buyers, reported TODAY.
Experts attribute the positive response to new condominium launches to intangible factors like wanting new stuffs and the convenience offered by new units’ move-in ready condition.
They also attribute it to the financial advantage provided by progressive payment scheme, in which payment requirements are phased based on the project’s construction milestones.
Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group commented on this trend: “The surge in demand can be attributed to a unique blend of factors. Firstly, the shift towards hybrid living arrangements has fueled a need for more expansive spaces. Secondly, we’ve seen a significant surge in demand for homes from the ‘baby boom echo’ generation – home seekers born between the late 80s and early 90s.
Thirdly, the limited supply of new private homes continues to be outstripped by the pent-up demand, a ripple effect of the COVID-19 period. Lastly, the escalating prices in the HDB resale market have catalysed more buyers to upgrade, given that housing constitutes a substantial portion of personal wealth. Buyers are also able to afford the high home prices through an inter-generational transfer of wealth.”
On whether continuing to buy private properties amid an uncertain economic outlook and series of government announcements – Budget 2023 announcement raising Buyer’s Stamp Duty (BSD) rates in February 2023, and property cooling measures raising the ABSD rates shortly after in April 2023 – Dr Lee said: “Historically, residential properties in Singapore have proven to be robust investments over extended periods, particularly those spanning at least ten years.
However, it’s important to acknowledge that the property market is not immune to economic downturns. While current government measures have successfully mitigated severe downturns through prudent fiscal and monetary policies, prospective buyers must ensure their financial resilience to afford their homes even in challenging times.”
3. Two BTO projects in Tengah to be offered at May 2023 BTO launch
Two developments in Tengah – including the town’s largest yet – will be launched for sale tomorrow, 30 May 2023, reported CNA citing HDB.
With a waiting time of just over three years, Parc Meadow @ Tengah will offer around 1,980 BTO flats spread across 15 residential blocks of 12- to 13-storey. It will be located near the relocated Anglo-Chinese School (ACS) (Primary).
Plantation Verge within Plantation District, on the other hand, will have a waiting time of more than 3.5 years. It will feature 970-odd units across seven residential blocks of 14- to 18-storey.
HDB said both projects will offer 2-room Flexi to 5-room flats, with the latter making up around one-third of the units.
The two projects will take the number of flats released in Tengah since 2018 to over 21,000, or 70% of the 30,000 flats planned for the town.
It pointed that over 70% of Tengah projects under construction have a waiting time of four years or less. These include around 6,200 flats with a waiting time of less than three years.
Related article: May 2023 BTO Bedok Review: 10-minute Walk from Tanah Merah MRT
4. Ulu Pandan park connector to reopen in December 2023, Clementi NorthArc BTO project completed
The Ulu Pandan park connector in Clementi, which closed due to a landslide in September 2022, will reopen to the public in December 2023, while the 1,179 flats at the nearby Clementi NorthArc BTO project have been completed, reported CNA.
The BTO project was launched in February 2017 and was set for completion by mid-2022. However, it faced nine to 12 months delay due to the COVID-19 pandemic.
HDB shared that it “worked closely with the contractor to catch up on the delay, and managed to complete all six blocks between December 2022 and March 2023 despite the slope failure which occurred at the western edge of Clementi NorthArc on 2 September 2022”.
It added that more than 90% of buyers have collected the keys to their flats as of 17 May 2023, noting that almost 98% of the flats were taken up.
On the landslide repairs, HDB said it embedded long piles into the soil, with steel bars layered for further stability.
It revealed that slope strengthening works are around 50% complete and are set to be done by July 2023. Thereafter, it will commence construction work of facilities and the damaged portion of the park connector.
5. Woman’s post about ‘HDB people’ gets major backlash
A LinkedIn post by Satwant Kaur – a self-proclaimed “nationalist” – pointing to the difference between “HDB people” and “private residence people” drew the ire of netizens, reported Mothership.
In her post, Kaur complained on how the government allows HDB people to take jobs in private residential areas, noting that their extended presence could lead to the loss of her unique identity.
She added that private residence people build according to values and mindset, while HDB people sit and wait on what the government can give them.
University undergraduate Nadine Lee was quick to call out Kaur, explaining that 80% of Singapore’s population live in HDB flats and that HDB people’s unique culture is called “homeownership”.
She also underscored that while most Singaporeans are trying to disavow elitist tendencies by trying to treat each other well, it appears that Kaur is “excitedly trying to go in the other direction”.
Lee’s response resonated with other people, who also shared their disappointment over Kaur’s post, which was eventually deleted including her profile.
6. Residential sites at Champions Way, Lorong 1 Toa Payoh released for sale
Two residential sites at Champions Way in Woodlands and Lorong 1 Toa Payoh have been launched for sale, with the two sites expected to yield around 1,125 residential units, said the Urban Redevelopment Authority (URA).
Analysts expect pent-up demand to drive interest for the Champions Way site since it has been more than 10 years when a Government Land Sales (GLS) Programme site was sold within the Woodlands area.
OrangeTee expects the site to be popular among families due to its proximity to various schools as well as investors since it is near Woodlands South MRT Station and the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) via the Thomson-East Coast Line (TEL).
With this, the site will likely receive keen interest from developers, getting around five to eight bids of between $950 to $1,050 PSF per plot ratio (ppr).
Meanwhile, Huttons Asia believes the reserve site at Lorong 1 Toa Payoh has a high chance of being triggered for sale, with the top bid fetching more than $1,200 PSF ppr.
“With 5-room flats at The Peak @ Toa Payoh exceeding $1 million and quite a number of recently MOP-ed flats exceeding $800,000, there is a sizeable pool of potential HDB upgraders,” said Huttons.
Related article: HDB MOP (Minimum Occupation Period): A Guide for HDB Flat Owners in Singapore (2023)
7. Condo developers, builders to be assessed under new banding system
Condo developers and builders’ workmanship will now be assessed under a new banding system to help homebuyers make informed decision.
Based on the Construction Quality Assessment System (CONQUAS), the banding will rank developers and builders based on their track record over the last six years, reported CNA.
“Many a time when a buyer buys a new unit, the project is under construction, that means that they can’t inspect the actual quality of the unit. So we hope that CONQUAS banding will help the homebuyer to make an informed decision,” said Building and Construction Authority’s (BCA) Deputy CEO of Industry Development Neo Choon Keong.
He shared that the new banding offers homebuyers a more intuitive way to make comparisons, with the scores now aggregated across projects such that developers and builders will fall under one of six bands.
Neo revealed that 95% of residential units are within the system, while 20 developers and 15 builders are currently in Band 1, which is the best ranking.
No projects, developers or builders were listed in Band 6 – which is the worst, while 20 developers were in Band 5.
8. Senior Minister Teo Chee Hean to conduct a review of Ridout Road properties
Prime Minister Lee Hsien Loong has asked SM Teo to carry out a review on the rental of two state properties along Ridout Road to ministers Vivian Balakrishnan and K Shanmugam, reported CNA.
This is to establish whether proper processes were followed, and no wrongdoing was committed, he said.
“This must be done to ensure that this government maintains the highest standards of integrity.”
He has also ordered for the review to be done expeditiously, “to make the findings public in time for the parliamentary sitting”.
He revealed that Home Affairs and Law Minister Shanmugam and Foreign Affairs Minister Dr Balakrishnan had requested a review that is independent of the agencies and ministries they supervise.
In a separate CNA report, Shanmugam said he has nothing to hide regarding his tenancy on the Ridout Road bungalow.
“I have nothing to hide. We should set out the facts, lay them before parliament and the people. That’s the only way to retain trust,” he said.
The issue is set to be heard during the next parliament session in July 2023.
9. New eco-pedestrian bridge in Upper Bukit Timah Road to be built by 2026
The National Parks Board (NParks) has revealed plans to build an eco-pedestrian bridge across Upper Bukit Timah Road to link the Bukit Batok Nature Park and Bukit Timah Nature Reserve through the Rail Corridor, reported TODAY.
Slated for completion by 2026, the bridge is aimed at facilitating the safer movement of animals as they traverse between the two green spaces, reducing the risk of them being struck by vehicles.
“The new bridge is designed for dual pedestrian-wildlife use and will provide the public with seamless connectivity between the two green spaces,” said NParks.
The new bridge builds on the success of the Eco-Link@BKE, where around 100 wildlife species have been observed.
NParks said planning for the new bridge remains underway, hence, there is still no exact location for it.
10. Architects shed light on how HDB estates are designed
Questions on how BTO projects are designed became a hot topic after photos of Tampines GreenVines’ red tiles and walls went viral.
In a CNA article, architects of Eastlink and Northshore StraitsView HDB estates explained how they thought of ways to connect the spaces around the developments and how people would navigate the space.
“(Designing HDB flats) involves listening to people. It involves understanding the social fabric, creating moments that will be able to generate continuous as well as organised activities,” said Michael Leong, Deputy CEO of SAA Architects.
As such he sees, the paths, bridges and community spaces within the estate as connecting not only the places but also people.
Meanwhile, HDB said it provide architecture teams with building requirements and guidelines for every project.
They then conduct regular meetings with the teams to refine the design until completion and seek feedback from residents and town councils.
“I think we must always listen to the end users or the stakeholders of the project … architects must always have a listening ear,” said Leong.
“It’s something that we advocate very much – really understanding the real needs of the people. So that when you design something, it is relevant to what they need,” he added.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
