18 to 24 July 2023
The LakeGarden Residences, Wing Tai Holdings’ condominium project in Jurong, has opened for preview, with prices starting at just below $2,000 per sq ft (PSF). Meanwhile, Qingjian Realty and Santarli Realty have opened Altura Executive Condominium (EC) for preview on 22 July 2023, with sales bookings set to start on 5 August 2023.
1. The LakeGarden Residences opens for preview
The LakeGarden Residences, Wing Tai Holdings’ condominium project in Jurong, has opened for preview, with prices starting at just below $2,000 PSF, reported The Business Times.
The 99-year leasehold development comprises two 19-storey towers with 306 units of one- to five-bedroom units. Unit sizes range from 484 sq ft for 1-bedroom units, 592 sq ft for 2-bedroom units, 926 sq ft for 2-bedroom units, 1,270 sq ft for 4-bedroom units, and 1,550 sq ft for 5-bedroom units.
It also has four duplex penthouses, which come with private lift access and spans from 2,002 sq ft to 2,260 sq ft.
Dr Tan Tee Khoon, Country Manager – Singapore, PropertyGuru commented on The LakeGarden Residences’ opportune launch within the Jurong Lake District (JLD), “This project places its bet on the likely pent-up demand for that location since the last new launch was in 2016.
Given that the government has ‘high ambitions for JLD to be a demonstrative site for sustainable living’, the fact that this is Wing Tai’s inaugural sustainable development with low-energy and renewable energy features built into the development aligns it with the broader goals of the region.
It is also a huge plus for property seekers as energy-efficient appliances are provided with each unit for just below $2,000 PSF.”
The first condo launch within the area in seven years, the development will open for sales booking from 5 August 2023.
Related article: Blossoms By The Park, Tembusu Grand, and More: How Did Major New Condo Launches in Q2 2023 Perform?
2. Qingjian Realty and Santarli Realty preview Altura EC
Qingjian Realty and Santarli Realty opened Altura EC for preview on 22 July 2023, with sales bookings set to start on 5 August 2023.
Located on Bukit Batok West Avenue 8, the development features 360 units of 3-bedroom to 5-bedroom apartments.
A 980 sq ft 3-bedroom premium-plus-study unit is priced from $1.348 million or $1,376 PSF, while a 4-bedroom flexi deluxe spanning 1,206 sq ft is priced from $1.668 million or $1,383 PSF.
A 4-bedroom flexi premium unit is offered from $1.988 million or $1,388 PSF, while a 5-bedroom premium-plus-study unit is priced from $2.188 million or $1,422 PSF.
The project is the first EC to be launched in Bukit Batok area since 2001, when The Dew, a 248-unit EC project, was launched.
3. Dr Lee Nai Jia comments on the rising divergence between the public and private housing market
While public housing is considered attainable in Singapore, private housing is not, with the median private home price 13.7 times the median household income.
In particular, the median price for a newly launched condo stood at $1.95 million last year, bringing the housing affordability ratio for the past five years from 10.84 to 16.06. This means an average household needs around 16 years of income to afford a median new condominium.
Despite this, demand for new homes remains robust, with buyers including younger households with higher disposable incomes and possibly assistance from their families.
“It’s intrinsically tied to the aspiration of social mobility … Therefore, we need to rethink housing solutions that don’t just address affordability, but also foster a healthy social fabric and personal development,” said Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group as quoted by CNA.
He believes that such economic chasm “poses a threat to societal stability”.
But while the affordability of private homes remains a concern, the government has been successful in providing affordable housing compared to other cities such as Hong Kong and Seoul.
4. Co-living operator The Assembly Place commits to integrating blockchain tech with their real estate and hospitality offerings through a strategic investment in 2MR Web3 Launchpad
The Assembly Place (TAP), a co-living operator based in Singapore, recently announced their strategic investment in the 2MR Labs Web3 Launchpad.
By alliancing with 2MR Labs, Southeast Asia’s first Web3 launchpad which aims to build and integrate technologies with brands through digital assets, TAP looks forward to implementing the most up-to-date blockchain tech, among other exciting breakthroughs into its real estate and hospitality offerings.
“As TAP is approaching our 1,500 rooms target in the coming months, it is the correct time to adopt a Web3 strategy through 2MR Labs in our co-living business,” said Eugene Lim, CEO and founder of TAP.
“We believe the future of brand power lies in the power of their community, and we aspire to maximise the potential of brands, empower communities with blockchain to achieve more and build a sustainable future,” said Arthur Lin, CEO and founder of 2MR Labs.
5. New private home sales dropped 73.2% in June 2023
After five consecutive months of increase, new private home sales, excluding ECs, fell 73.2% to 278 units in June from 1,039 units in May 2023, reported CNA citing Urban Redevelopment Authority (URA) data.
On an annual basis, private home sales dropped 43% from the 488 units transacted in June 2022.
Analysts attributed the decline in sales to the lack of significant project launches, with 17-unit Lavender Residence being the sole project launched in May 2023.
In fact, the number of units launched in June 2023 plunged 98.1% month-on-month (MoM) and 92.2% year-on-year (YoY) to 31 units.
Other reasons cited are the June 2023 school holidays and the cooling measures rolled out in April 2023.
The 278 units shifted in June brings the total number of private homes sold in 1H 2023 to 3,463 units, down 18% from the 4,222 units transacted in 1H 2022.
Looking ahead, analysts expect new private home sales to pick up in 2H 2023 as more projects are slated for launch.
6. Punggol BTO units were further delayed after HDB replaces the main contractor over unsatisfactory progress
After around six to nine months of delay, the 991 buyers of Punggol Point Cove BTO flats will face further delays of up to three months due to the termination of the project’s main contractor, reported TODAY.
The HDB revealed that the termination of CKR Contract Services was due to unsatisfactory progress as well as repeated failure to meet construction targets, despite the various assistance measures extended to it.
Notably, the affected units are spread across five of the six blocks at Punggol Point Cove.
HDB said it has informed the project’s affected flat buyers of the latest expected completion dates for their blocks.
Germaine Chee, one of the affected buyers, said the news is “disappointing” as she had to push back many of her plans.
“The delay was expected as we’ve been getting rumours of the termination for quite some time now and seeing how the progress of the construction has been over the past few years,” she added.
7. More seniors monetising their HDB flats
To supplement their retirement income, more seniors have monetised their HDB flats, with around 2,860 availing of the Silver Housing Bonus Scheme and Lease Buyback Scheme in 2022, up from 2,790 in 2021, reported The Straits Times.
Overall, seniors got about $429 million, of which around $202 million were in the form of cash bonus and take-home cash while the other $227 million were used to top up their CPF Retirement Accounts.
The amount that seniors have been receiving by tapping the two HDB housing schemes has been increasing in the last few years, rising from $325 million in 2020 to $382 million in 2021.
Despite this, the take-up rate for the Lease Buyback Scheme and Silver Housing Bonus Scheme has remained low, due to uncertainties affecting seniors’ decisions to monetise their flats.
These may include their desire to bequeath their homes to their children, uncertainties about their life expectancy and medical expenses during retirement.
The hot housing market may also be deterring some seniors to tap into the HDB schemes as it could mean paying higher prices for the smaller flats that they are exchanging their larger units for.
8. Longer wait time for May 2023 BTO and SBF ballot results and HDB Flat Eligibility (HFE) letter applications due to ‘system glitches’
HDB has announced that the May 2023 BTO and Sale of Balance Flats (SBF) ballot results will be announced only during the August 2023 BTO launch, an extension from the usual approximate three-week turnaround time.
HDB said also the longer processing times that some flat buyers faced to secure their HFE letter were due to system glitches.
Required since 9 May 2023 for both new and resale flat buyers, the new HFE letter has a processing time of up to 21 working days.
However, this could take “longer during peak periods, such as in the months of and before a sales launch, in view of the higher volume of applications received”, said HDB.
CNA reported that several flat buyers complained of long wait times, which they described as unnerving and frustrating. In fact, some of them waited for more than 30 days for their applications to be approved, while some were unable to view their application on the portal.
Resale flat buyers, especially those not taking an HDB loan, also faced delays due to the HFE letter requirement. Property agents noted that approval for this group of buyers was previously almost instant once they have registered their intent to purchase with HDB.
With this, HDB assured applicants that approvals for their HFE letter, “where applicable, will be granted before their flat booking appointment, and their flat applications will not be affected”.
Meanwhile, resale flat buyers in urgent need of the HFE letter can seek HDB’s assistance.
9. Fewer foreigners purchased condominiums in Q2 2023
Private non-landed homes bought by foreigners declined 22.6% to 2015 units in the second quarter of 2023, from the previous quarter’s 265 units, reported The Straits Times citing OrangeTee and Tie.
Foreigners were apparently deterred by the increase in Additional Buyer’s Stamp Duty (ABSD) in April 2023 as part of the government’s latest round of cooling measures.
With this, the proportion of foreign acquisitions also declined from 6.9% to 4.2% over the same period.
Americans, who are subject to the same stamp-duty treatment as Singaporeans due to a free-trade agreement, emerged as the top foreign buyers in Q2 2023.
Mainland Chinese, who were the biggest group of foreign buyers in Singapore between 2017 and Q1 2023, came in second, buying 51 condo units in Q2 2023, compared to the 56 units bought by Americans.
Transactions by mainland Chinese buyers dropped 53.2% from 109 units in Q1 2023, while transactions by Americans dipped only by 11.1% from 63 units in Q1 2023.
10. Tampines Street 62 (Parcel B) attracts seven bids, Jalan Tembusu site gets two bids
The tender for the EC site at Tampines Street 62 (Parcel B) closed on 18 July 2023, with seven bids received, revealed HDB.
Of these, four bidders submitted alternative proposals on top of a base prefabricated, pre-finished volumetric construction (PPVC) bid.
Meanwhile, demand for the residential site at Jalan Tembuso was low, with only two bids received during the close of its tender, revealed the Urban Redevelopment Authority (URA).
Sim Lian Group emerged as the highest bidder at $828.8 million or $1,069 PSF per plot ratio (ppr). This is just 0.1% above City Developments Limited (CDL) and Frasers Property’s $828 million bid, noted Knight Frank.
Huttons Asia attributed the low interest for the site to its large quantum and the high interest rate environment.
Related article: Government Land Sales (GLS) Programme Guide (Updated With GLS Sites for 2H2023 Singapore)
11. A 5-room DBSS flat in Bishan sold for a record $1.43 million
A 5-room Design, Build and Sell Scheme (DBSS) flat (aka as ‘premium’ HDB flats) in Bishan has been sold for a whopping $1.43 million, making it the most expensive five-room resale flat in Singapore, reported Lianhe Zaobao.
The record was previously held by a 5-room flat at The Peak @ Toa Payoh, which was sold for $1.42 million.
Spanning 120 sq m (about 1,291 sq ft), the flat is located between the 35th and 40th floors of Blk 273B Bishan Street 24, which corresponds to Natura Loft, a DBSS project.
The unit’s realtor revealed that the sellers – a couple who are in their 30s – purchased the flat seven years ago. They sold the flat to a small and medium enterprise (SME) owner since they want to move to a private home.
Want to read more about this million-dollar HDB flat transaction? We spoke to the property agents responsible for this sale.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
