19 to 26 December 2023
The occupancy cap for bigger HDB flats and private homes will be temporarily raised from six to eight unrelated people who are not from the same family unit from 22 January 2024 to 31 December 2026. Meanwhile, PropertyGuru expects buyers to purchase houses for their use to drive private residential sales in 2024.
1. Occupancy cap for HDB flats and private homes raised to meet rental demand
The occupancy cap for bigger HDB flats and private homes will be temporarily raised from six to eight unrelated people who are not from the same family unit from 22 January 2024 to 31 December 2026, revealed HDB and Urban Redevelopment Authority (URA) in a joint release.
The temporary measure is aimed at meeting rental demand as well as supporting households that plan to rent.
The higher occupancy cap will apply to 4-room and larger HDB flats and living quarters of HDB commercial properties wherein the living quarters are similar to or bigger than a 4-room flat.
It will also apply to larger private homes spanning at least 90 sq m.
Residential property owners who presently house up to six unrelated persons need to apply to URA and HDB – for private homes and HDB flats, respectively – to include additional occupants.
Meanwhile, analysts believe the move will only offer a short-term fix to stabilise the rental market, reported CNA.
Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group, believes the impact on the rental market is “indeterminate”.
“On one hand, we may find more demand due to the increased affordability. On the other hand, the supply of listings may rise correspondingly. Asking rents for the whole unit may rise in the short term, even though each renter pays less. That said, we expect the impact to be limited to some segments of the market,” he said.
2. Owner-occupiers to drive private home market in 2024
PropertyGuru expects buyers to purchase houses for their use to drive private residential sales in 2024, reported Singapore Business Review.
In its latest Singapore Property Market Outlook 2024, PropertyGuru noted that the high interest rate environment and slew of property cooling measures in 2023 have dampened sales activity within the private home market this year, leading to slower price increases.
With this, it expects sales activity within the private home market to dip further next year, while prices remain steady amid the challenging economic landscape.
PropertyGuru sees owner-occupiers dominating the private home market, with some rich investors continuing to beef up their portfolios.
“Singapore’s real estate is traditionally viewed as a resilient investment. Given this perspective, the prevailing uncertainty could inspire more individuals to engage in the property market, provided their financial positions permit,” said Dr Tan Tee Khoon, Country Manager – Singapore, PropertyGuru.
“There is also a belief that even if property prices moderate in the short term, the pricing rebound could be much faster and higher when economic conditions improve,” he added.
PropertyGuru expects prices to remain high yet stable and demand subdued during the first six months of 2024. It pointed out that any downturn in demand and prices should be contained, barring unforeseen black swan events.
3. Government eyes to build new funeral and columbarium complex in Mandai
The government plans to build a new funeral and columbarium complex near the existing Mandai Columbarium to address the anticipated increase in demand for after-death facilities, reported CNA.
The project will be located at the intersection of Sembawang Road and Mandai Avenue.
The National Environment Agency (NEA) will conduct an environmental impact assessment and feasibility study before the development plans for the project are finalised.
“This Mandai Avenue site was selected following consultations with agencies, covering factors such as the required site area for such a multi-use facility with a columbarium and different types of funeral services, development plans for the surrounding area, traffic impact and impact on surrounding developments,” said NEA.
There are three government-operated columbaria in Singapore – in Yishun, Mandai, and Choa Chu Kang – and other private columbaria.
NEA noted that the Yishun facility is at full capacity, while the Mandai facility is nearing its capacity.
Meanwhile, residents along Sembawang Road are concerned that the proposed columbarium complex may lead to a decline in property prices as well as hamper the en bloc sale of Hong Heng Mansions, reported TODAY.
4. People’s Park Complex may be subject to conservation
People’s Park Complex, Southeast Asia’s first mixed-use development, may be considered for conservation given its high heritage significance, reported CNA citing the Urban Redevelopment Authority (URA).
With this, the collective sales effort for the 31-storey development should take into account the conservation study as well as its findings, said a spokesperson for URA.
Anna Tan, Business Development Director of Tag Realty, the sales agent, said it has been in talks with URA regarding the conservation plans.
“We firmly believe that a synergistic approach with URA not only safeguards the heritage of People’s Park Complex but also makes a positive contribution to the overarching development objectives for the central region, creating enhanced opportunities for potential buyers,” she said.
Non-profit group Docomomo Singapore lauded the move but said the plan could affect the development’s collective sales in terms of sales conditions since the building can no longer be demolished.
However, it pointed out that the successful collective sale of Golden Mile Complex – the conservation of which came with various incentives for buyers – showed that conservation and rejuvenation need not be exclusive of each other.
5. BTO projects near Pasir Ris Park may drive away wildlife
Nature lovers and photographers are concerned that an upcoming BTO project near the Pasir Ris Park will drive away wildlife, reported TODAY.
They fear construction noise and lights may disturb the wildlife and never return to the area.
The BTO project will take up Pasir Ris Park Car Park B’s present site and the forested area right beside it.
However, HDB assured that an environmental management plan will be implemented to minimise the impact on surrounding flora and fauna. Notably, a wooded corridor of up to 50m will be put up to serve as a buffer between the park and the BTO project.
A management plan will also be set in place to monitor the noise level in real-time, while suitable hoardings with lighting will be put up for security.
While some photographers feel that the situation is unfortunate, they note that developing the area is unavoidable since the people need houses.
“So, we have to do it, there is no choice, it’s a small country,” said 71-year-old Thomas Lee, who has been taking nature photos in the area for around seven years.
6. Residents at two condominiums are up in arms over the maintenance fee hike
Residents at two more condominiums are up in arms over the significantly higher maintenance fees than what was advertised, reported CNA.
It was previously reported that owners at Dairy Farm Residences complained that their maintenance fees were double what they had expected to pay. Thereafter, the developer cut the fees by around 40%.
Maintenance charges for a two-bedroom unit at Parc Komo were initially marketed at $392 per month, but residents ended up paying $646.
At the Essence condominium, the maintenance fee for a two-bedroom unit was marketed at $300 but was raised to over $500.
“For a 2-room (unit), to pay such a high maintenance is like buying a luxury condo,” said a Parc Komo resident, who declined to be named.
Residents at the Essence, on the other hand, described the higher charges as exorbitant and disproportionate to the facilities offered. They added that the fees are unsustainable.
Residents at both developments have formed groups to negotiate with developers. Parc Komo and Essence were developed by CEL Development and Chong Kuo Development, respectively.
However, the developers failed to provide a satisfactory explanation for the steep hike in charges.
7. The influx of international students fuels the housing demand
The rise in international students coming to Singapore has driven demand for housing, making it harder for such students to secure affordable accommodation, reported CNA.
Lester Jiang, Managing Partner at SagePaths Global Education, which serves as a bridge between these students and Singapore educational institutions, noted that the number of overseas students has increased by 20% to 30% from last year.
With this, landlords have been raising rental prices. Notably, renters are now paying 20% to 40% more compared to May 2023, said DS Homestay owner Dennis Nah. His company matches international students with homeowners who are renting out their units.
EVO House, which offers overseas student accommodation, has also increased its rent, resulting in a drop in client numbers. This comes as students have turned to cheaper alternatives such as HDB flats or student dormitories.
“We do feel the heat of the competition because the cost can be half of our costs because they don’t provide the common area like what we provide for our students,” said EVO House Group President Joice Yanto.
With the increased demand expected to continue for two more years, EVO House plans to acquire an entire building for a dormitory that could house 800 to 1,000 individuals, while DS Homestay targets to double its capacity.
8. Man sues condo management for denying a request to install zip blinds
A man has filed a case against the management corporation of Stevens Loft after it denied his request to install zip blinds on the balconies of his top-floor unit.
However, the district court ruled in favour of the condo management, reported CNA. The High Court also dismissed his application to appeal the district court’s decision.
Occupying the building’s fourth and fifth floors, Soo Hoo Khoon Peng wanted to install Renson Fixscreen, a brand of zip blinds.
However, his request was denied by the condo management citing uniformity issues and usage of common property.
Soo Hoo argued that while installing the blinds would amount to exclusive use of common property, he pointed out that a by-law entitles him to install a screen or any other device to prevent insects or animals from entering his lot or to prevent harm to children.
The district judge ruled that installing zip blinds at the balconies would amount to exclusive enjoyment of common property, which requires 90% resolution at a general meeting.
While District Judge Sim Mei Ling acknowledged the insect-repelling qualities of the zip blinds, she was not convinced that they would prevent children from falling over the balcony.
9. Sin Thai Hin Development acquires Sophia Road site for $33,588,000
A residential redevelopment site located at 132 Sophia Road has been sold for $33,588,000 to Sin Thai Hin Development, after the close of the tender for such site on 29 November, reported Singapore Business Review.
Including a nominal land better charge, the sale price works out to a land rate of about $1,172 per sq ft per plot ratio (PSF ppr), revealed exclusive marketing agent Knight Frank.
Zoned for “Residential” use under the 2019 Master Plan, the property spans 1,280.5 sq m or 13,783 sq ft, with a gross plot ratio of 2.1.
The buyer is a boutique developer and investment firm that has developed and invested in hospitality, healthcare, residential and commercial office properties.
10. Melrose Drive house on sale for $16.8 million
A detached house located on Melrose Drive in Serangoon has been put up for sale with a guide price of $16.8 million.
This translates to $1,185 PSF based on a land area of 14,175 sq ft, revealed marketing agent PropNex Realty.
With a 40m frontage to Melrose Drive, the freehold property is zoned for two-storey bungalows and residential use under the 2019 Master Plan.
PropNex noted that the District 13 site can be redeveloped into two detached homes, subject to the approval of relevant authorities.
“As the land area is less than 1,400 sq m, Singapore permanent residents with approval from the Land Dealings Approval Unit (LDAU) to acquire restricted residential property are eligible to purchase the said Melrose Drive property,” said Tracy Goh, Capital Markets Head at PropNex.
The tender for the detached house closes on 16 January 2024.
Related article: URA Space: Learn to Read Singapore’s URA Master Plan in 4 Easy Steps (2023)
11. Justin Quek named CEO of OrangeTee & Tie
Real estate veteran Justin Quek has been appointed as Chief Executive Officer of OrangeTee & Tie, succeeding Steven Tan, who will move on to lead the international business and remain as Key Executive Officer.
Currently serving as Deputy CEO, Quek will take on the CEO role on 1 January 2024.
As a Deputy CEO, Quek spearheaded multiple initiatives, including the Consumer Insider Series aimed at helping clients navigate the property landscape as well as the Luxe by OrangeTee to help agents become well-versed in serving the High-Net-Worth Individuals (HNWI) clientele.
“We are confident that his vibrant energy, fresh perspectives, real estate expertise and business acumen, coupled with OrangeTee’s longstanding ethos of trust and relationship-building, will bring the agency to greater heights,” said Tan.
12. Tuas set for reclamation works from 2025
JTC has revealed plans to reclaim 172ha of land in Tuas for industrial use, with the reclamation works set to start in 2025 and be completed by 2029, reported The Straits Times.
It explained that the project will meet land demand “for future industrial uses as part of ongoing plans to rejuvenate the older parts of Jurong and Tuas Industrial Estates, which were developed in the 1960s and 1970s”.
JTC said the reclamation project will also facilitate road network connections to Tuas South as well as Tuas Port, which is set to be fully completed by the 2040s.
Notably, the reclamation project will see the National Environment Agency (NEA) and JTC pilot the use of incineration bottom ash as a reclamation fill. The move is part of efforts to reduce incineration waste entering or removing such waste from Singapore’s only landfill – the Semakau Landfill.
Meanwhile, the tender for the industrial site located at 11 Tuas Avenue 18 has been awarded to Nishio Rent All Singapore, after it submitted a bid of $3.2 million, said JTC.
Zoned for Business 2 use, the site has an area of 3,999.9 sq m and a gross plot ratio of 1.4.
Related article: Government Land Sales (GLS) Programme Guide (Updated With GLS Sites for 1H2024 Singapore)
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
