12 to 18 September 2023
Altura, an executive condominium (EC), saw 95 units snapped up during its second-timer balloting event on 16 September 2023, bringing its overall take-up rate to 88%. Meanwhile, new private home sales, excluding ECs, fell 72.1% to 394 units month-on-month (MoM) in August 2023, following a “blistering month” of July 2023 when an almost two-year high of 1,412 units were shifted.
1. Altura executive condominium now 88% sold after second-timer balloting
Altura saw 95 units snapped up during its second-timer balloting event on 16 September 2023, bringing the overall take-up rate to 88%, revealed the project’s joint developers Qingjian Realty and Santarli Realty.
Featuring a total of 360 units, the development only has 45 remaining units, which are primarily four- and five-bedroom plus flexi configurations.
In fact, last month’s new private home sales were driven by Altura as 225 units were sold at its August 2023 launch, reported CNA.
The first EC to be launched in Bukit Batok since 2001, Altura also stands as the only EC launch for this year, making it highly sought-after.
On the appeal of ECs among Singaporeans, Dr Tan Tee Khoon, Country Manager – Singapore, PropertyGuru commented that they “continue to be the darling asset class in this current market climate of increased Additional Buyer’s Stamp Duty (ABSD), rising interest rates, and economic headwinds.
Besides more affordable prices compared to private properties, buyers of ECs are likely to be least affected even by ABSD as they get remission upfront and can take their time to sell their existing residential property before the EC’s completion. Also, EC buyers can use CPF Housing Grants and Staggered Downpayment Scheme which are not available to private residential home buyers.”
Specifically on Altura’s performance in spite of the Hungry Ghost Festival 2023 period (it first launched in August 2023 to first-time homebuyers), Dr Tan said, “The less superstitious home buyers will not let the hungry ghosts deter them from buying their choice EC units as the demand is strong.”
2. New private home sales plunged 72.1% in August 2023
New private home sales, excluding ECs, fell 72.1% to 394 units MoM in August 2023, following a “blistering month” of July 2023 when an almost two-year high of 1,412 units were shifted.
On an annual basis, new home sales dropped 10% from the 438 units transacted over the same period in 2022.
Analysts attributed the drop in sales to buyer fatigue given the slew of project launches in recent months and to the start of the lunar seventh month in mid-August 2023.
Meanwhile, the EC market saw sales surge by over four times to 255 units in August 2023, driven mainly by the Altura’s launch. Located at Bukit Batok, the development accounted for the bulk of EC sales, selling 225 units last month.
Looking ahead, Wong Siew Ying, Head of Research and Content at PropNex Realty, expects new private home sales to remain muted in September 2023, before picking up in October 2023 and November 2023.
3. Hoi Hup-Sunway JV bags Tengah EC site for $348.5 million
A joint venture between Hoi Hup Realty and Sunway Development has clinched the EC site located at Tengah Plantation Close for $348.5 million.
The JV won the tender “using an alternative bid that utilises a hybrid of technologies assessed by BCA to be able to yield substantial productivity improvements”, said Hoi Hup and Sunway in a release.
Launched for tender on 23 December 2022, the 99-year leasehold site has an area of 16,441.2 sq m and a maximum permissible gross floor area (GFA) of 46,036 sq m. It is expected to yield 495 housing units, said the HDB.
The tender for the site closed in June 2023 with nine bids received. “This demonstrates the confidence of developers in ECs at the time of the tender, likely bolstered by the successes of Copen Grand which sold out within a month of launch and Tenet which sold 93% in January 2023. Also, EC buyers are given upfront ABSD remission unlike private condominium purchasers and the possibility of a Deferred Payment Scheme, on top of CPF Housing Grants,” said Dr Tan Tee Khoon.
“We are very pleased to be awarded this EC site that will allow us to demonstrate our capability to build a new generation of beautiful EC that is sustainable yet practical and liveable,” said Hoi Hup Realty Chairman Wong Swee Chun.
4. Champion Way site receives six bids, Lentor Central site gets two
The tender for two private residential sites closed on 12 September 2023, with the Champions Way site receiving six bids while the Lentor Central site gets two bids, revealed Urban Redevelopment Authority (URA).
CDL submitted the top bid of $295 million for the Champions Way site, which was 8.3% higher than the second-highest bid.
Meanwhile, a joint venture between GuocoLand, Hong Leong Holdings’ Intrepid Investments and CSC Land Group submitted the top bid of $435 million for the Lentor Central site. The other bid was put forward by Frasers at $410 million.
5. Pine Grove makes another en bloc attempt, guide price at $1.95 billion
Pine Grove, a 660-unit condominium in Ulu Pandan, has once again been put up for en bloc sale with a guide price of $1.95 billion, reported CNA.
This works out to a land rate of $1,434 per sq ft per plot ratio (PSF ppr), after factoring in an estimated Land Betterment Charge (LBC) of more than $1 billion for land use intensification and lease upgrade to a fresh 99-year. It also takes into account the 10% bonus GFA area under various government incentive schemes.
ERA Realty Network said this is the development’s fourth collective sale attempt since 2008, and the third time it has achieved the requisite consensus.
Pine Grove had a reserve price of $1.86 billion and $1.7 billion during its two most recent collective sale attempts in 2019 and 2011, respectively.
Completed in 1984, the development occupies a massive 82,982.8 sq m site that is zoned for residential use with a gross plot ratio of 2.1. ERA shared that it could yield up to 2,050 new housing units, subject to the approval of authorities.
The tender for Pine Grove closes on 29 November 2023.
6. More than 3,500 new private homes to be launched in Q4 2023
Over 10 private home projects are set for launch in the Q4 2023, offering a total of more than 3,500 housing units, reported The Business Times.
Upcoming projects include 474-unit Hillock Green and freehold condo Watten House as well as mixed-use developments Marina View Residences, J’Den condo, and Skywaters Residences.
Despite declining homebuyer interest, analysts expect prices for these homes to remain stable due to high financing and land costs.
Notably, new launches for this year fetched PSF prices of above $2,100.
Eugene Lim, Key Executive Officer at ERA, anticipates prices for the Outside Central Region (OCR) projects such as Lentoria, J’Den, and Sora to range between $2,000 and $2,500 PSF.
Sing Tien Foo, provost’s chair professor of real estate at the National University of Singapore, said developers keep their launch prices high so that they would still have some room to lower prices in the future.
“With geopolitical uncertainties… costs could potentially climb, necessitating developers to account for such unpredictabilities,” said Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group.
“Given these dynamics, a significant increase in new launch prices seems unlikely. We foresee a more stable pricing landscape in the near future,” he added.
7. Singapore’s super-prime home sales down in Q2 2023
The number of super-prime homes, or those worth US$10 million ($13.6 million) above, sold in Singapore fell to only 30 units in the second quarter of 2023 from 37 units in the previous quarter, reported Singapore Business Review citing Knight Frank data.
The total sales value also dropped to US$477 million ($650 million) in Q2 2023 from US$603 million ($822 million) in Q1 2023.
Notably, average selling prices for Singapore super-prime homes dipped to US$15.9 million ($21.7 million) in Q2 2023 from US$16.3 million ($22.2 million) in Q1 2023.
According to Knight Frank, the figures indicate that Asian buyers are looking for alternatives to Singapore after the city-state rolled out higher stamp duty rates.
“Singapore’s super-prime market is experiencing a squeeze in sales volumes due to high purchase taxes, reaching up to 60% for foreign buyers in some cases,” it said.
“Although the city has been successful in attracting wealth management and family office investments, this interest has not translated into increased sales activity, as the market is adapting to rely more on domestic purchasers,” added the real estate expert.
Related article: Property Cooling Measures 2023: How are Singaporean Investors Handling the Latest ABSD Hikes?
8. Bukit Merah to get a facelift with refreshed town centre, enhanced connectivity to green nodes
Close to 130,500 residents of Bukit Merah can look forward to a revitalised town centre and community spaces as well as enhanced connectivity to green nodes like the Rail Corridor and Southern Ridges.
To be implemented in the next five to 10 years, these improvements are part of HDB’s Remaking Our Heartland (ROH) programme, which is aimed at bringing city living close to nature.
HDB shared that “a key focus of the renewal plans for Bukit Merah is to make the homes and neighbourhoods more senior-friendly”, given that over one-third of the town’s residents are aged 60 and above.
As such, the common spaces within the town centre, neighbourhood centres and housing estates will be fitted with sheltered walkways, non-slip flooring, ramps and more seating areas.
Notably, Bukit Merah comprises several estates – namely, Tiong Bahru, Redhill, Mount Faber, Telok Blangah and a portion of Tanjong Pagar.
9. New cycling paths to be built in Bukit Batok, Clementi, Queenstown, and Jurong West
New cycling paths will be built progressively from 2024 in Bukit Batok, Clementi, Queenstown and Jurong West under the Islandwide Cycling Network (ICN) programme of the Land Transport Authority (LTA), reported CNA.
“Construction of cycling paths will commence in phases, as soon as the relevant feasibility studies are completed, to allow residents to enjoy the benefits sooner,” said LTA.
Notably, it has called a tender to build the new cycling paths on 11 September 2023.
LTA noted that the new paths will improve cycling connectivity to key amenities like shopping malls, transport nodes and neighbourhood centres in areas including Nanyang, Boon Lay, West Coast, Dover and Pioneer.
10. A new 2.2km section of Pasir Panjang Park opened on 16 September 2023
A new 2.2km section of Pasir Panjang Park, which connects to Labrador Nature Park and West Coast Park, has opened on 16 September 2023, reported CNA.
Stretching from Pasir Panjang MRT station to the Jalan Pelepah housing estate, the new section allows the public to “enjoy a more pleasant 17km walking and cycling experience from Labrador Nature Park to West Coast Park through Pasir Panjang Park, all the way to Jurong Lake Gardens and Jurong Central Park”, stated the National Parks Board (NParks).
It noted that the new section pays tribute to the history of Pasir Panjang as one of the major port terminals in Singapore.
Three shipping containers, donated by PSA Singapore, have been repurposed as shelters. Of these, two feature maritime artefacts such as a ship anchor and a ship telegraph.
NParks also unveiled plans to enhance 13 parks within Singapore’s southern region and connect them up via curated theme trails.
It also plans to further enhance three of the parks – Labrador Nature Park, West Coast Park and HortPark – into destination parks.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
