23 to 29 January 2024
Lumina Grand, this year’s first executive condominium (EC) launch, saw healthy demand during its launch over the weekend, with 53% or 269 of the 512 units sold as of 12:00pm on 28 January 2023. Meanwhile, Singapore saw private home prices and HDB resale prices rise at a slower pace in 2023, at 6.8% and 4.9%, respectively.
1. Lumina Grand sells 53% of units over its launch weekend
Lumina Grand, this year’s first EC launch, saw healthy demand during its launch over the weekend, with 53% or 269 of the 512 units sold as of 12:00pm on 28 January 2023.
While all unit types were well-received, the 3-bedroom premium and 4-bedroom units emerged as the most popular among buyers, said City Developments Limited (CDL).
Units were priced from $1,338,000 for a 3-bedroom unit, $1,388,000 for a 3-bedroom premium, $1,628,000 for a 4-bedroom unit and $2,098,000 for a 5-bedroom unit.
The average launch price stood at $1,464 per sq ft (PSF), with an additional 3% applied for those sold under the deferred payment scheme.
CDL revealed that the 30% allocation for second-time buyers was reached by Lumina Grand during its initial launch. As such, second-time buyers who were unable to buy a unit can book their units a month later.
As the first and likely only EC project of the year, Dr Tan Tee Khoon, Country Manager – Singapore, PropertyGuru, had expected Lumina Grand to fare well given that prices of ECs are usually 20% lower than similar private condominiums within the area.
2. Private home prices, and rents rise at a slower pace in 2023
Singapore saw private home prices increase 2.8% in Q4 2023, an improvement from the 0.8% growth seen in the previous quarter, revealed the Urban Redevelopment Authority (URA).
Overall, private home prices rose 6.8% in 2023, slowing down from the 8.6% hike in 2022. This marks the second consecutive year of price moderation.
In Q4 2023, prices of landed properties climbed 4.6%, while non-landed properties saw prices grow 2.3%. Both the landed property and non-landed property segment saw price growth moderate to 8% and 6.6% in 2023, from the 9.6% and 8.1% increase in 2022.
Looking ahead, Dr Tan Tee Khoon expects prices to remain high yet stable in 1H 2024, amid the high interest rate environment and geopolitical uncertainties, reported The Business Times.
“Demand, while subdued, should maintain a consistent upward trajectory,” he said.
Meanwhile, rents for private homes fell 2.1% in Q4 2023, its first decline in over three years.
URA noted that rents eased across all market segments, with the Outside Central Region (OCR) posting the biggest decline at 2.8% in Q4 2023. Rents in the Core Central Region (CCR) and the Rest of Central Region (RCR) fell 1.6% and 1.2%, respectively, in Q4 2023.
For the whole of 2023, private home rents rose 8.7%, way slower compared to the 29.7% growth in 2022.
3. HDB resale prices were up 4.9% in 2023
Prices of Housing and Development Board (HDB) resale flats increased 4.9% in 2023, way smaller compared to the 10.4% hike posted in 2022. It also marks the lowest year-on-year growth since 2019 when prices rose 0.1%, reported CNA.
In Q4 2023, HDB resale prices rose 1.1%, moderating from the 1.3% increase in the previous quarter.
“The rate of increase in resale prices has continued to moderate following the Government’s implementation of a strong pipeline of housing supply, as well as cooling measures to promote a stable and sustainable property market,” said HDB.
Despite the moderation in prices, the HDB resale market saw a record 470 million-dollar flat transactions in 2023. Of these, 134 were registered in Q4 2023.
However, these flats represent a small portion of the market, making up just 2.1% of the total transactions during the quarter under review, said Dr Tan Tee Khoon.
Looking ahead, Dr Tan expects asking prices for HDB flats to remain high “given the lower supply of newer HDB resale flats and the rarity of attractive units”.
4. More young Singaporeans buying new private homes
A study by ERA Realty showed that a growing proportion of young Singaporeans are purchasing new private homes, reported TODAY.
Notably, the share of young Singaporean buyers aged between 26 and 35 jumped from 9% of the total new private home sales in 2015 to 35% in 2023.
Those under 25 represent 3% of all new private home buyers in 2023. Before 2021, such a group of home buyers was virtually non-existent.
With this, the median age of Singaporeans purchasing new private homes fell to 39 in 2023 from 45 in 2015.
“Mirroring housing markets worldwide, older Singaporeans have traditionally dominated the domestic market for new private homes, but there are now compelling signs supporting a noticeable shift in this widely held narrative,” said Wong Shanting, Head of Research and Marketing Intelligence at ERA.
ERA attributed the shift in trend to young Singaporean’s growing affluence, represented by their rising income, as well as to their inclination to invest.
“Private home offers opportunities for capital appreciation and passive incomes, which closely resonates with the young Singaporeans’ views on investing and building financial security at an early age,” added ERA.
5. Toa Payoh HDB flat breaks record for most expensive resale flat
A 5-room HDB flat at 139A Lorong 1 Toa Payoh emerged as the most expensive resale flat in Singapore after it was transacted for $1,568,888 in January 2024, reported The Business Times.
Spanning levels 40 to 42, the unit is situated within The Peak@Toa Payoh, a Design, Build and Sell Scheme (DBSS) development completed in 2012.
The development comprises two 42-storey blocks and three 40-storey blocks, featuring 1,203 units of 3-room to 5-room flats. Sizes of five-room units ranged between 1,184 sq ft and 1,259 sq ft.
The transaction surpassed the previous high set by a four-room jumbo HDB flat at 50 Moh Guan Terrace, sold for $1.5 million.
With the recent changes in new flat classification and the rise in million-dollar flat transactions, many homeowners are holding firm to their asking prices given that their flats do not have any resale restrictions, said Lee Sze Teck, Senior Director for Data Analytics at Huttons Asia.
A total of 470 flats were transacted for $1 million or more in 2023, up 27.4% from 2022, according to Huttons’ data.
Huttons noted that 56 million-dollar HDB flat transactions were registered as of 26 January.
Related article: Is the Natura Loft 5-room DBSS Flat Worth $1.43 Million? A Look at Expensive HDB Flats in Singapore
6. Expert urge Singaporeans to overcome NIMBY mindset
With the ‘Not in My Backyard’ (NIMBY) mindset being a significant barrier to developing essential amenities, Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions at PropertyGuru has challenged Singaporeans to look at columbariums from a different perspective.
“Instead of viewing them merely as sources of negative externalities like hygiene issues, traffic congestion, and noise pollution, we should consider their positive aspects,” said Dr Lee during a news chat with Mediacorp CAPITAL 958 City Channel.
Another expert pointed out that Singaporeans should see columbaria as amenities rather than as sources of disamenities.
The impact of columbaria on property prices is not fully understood mainly due to a lack of comprehensive studies on the matter.
Prices of properties facing such facilities are generally lower, although the overall effect varies based on how they are perceived – either as amenities or disamenities.
With this, prospective buyers and investors are advised to anticipate the “disamenity” effect of such facilities in real estate. Lee recommends strategic planning, including a review of the area’s Master Plan, even in regions where such facilities are not currently planned.
Analysing historical pricing and market trends with the help of big data tools can also help buyers make informed decisions.
7. More homeowners turn to renovation applications to save on costs
A growing number of homeowners are turning to web renovation applications to directly connect with suppliers and save on costs, which have increased around 20% in 2023, reported CNA.
Industry players noted that the rise in labour and material costs has contributed to the popularity of such apps.
Renovation app Homeez, which registered at least 200 new users every week, allows users to choose a pre-loaded floor plan, paints, and tiles, and communicate directly with suppliers or hire a project manager.
This means consumers spend less since there is no salesperson or interior designer involved, said Homeez CEO Tyson Lim.
Renovation platform Design Plus, on the other hand, monitors work progress while ensuring consistent communication between contractors and homeowners to save on costs incurred through delays as well as rectification work.
However, observers believe interior designers will remain relevant for their expertise in materials and trends as well as problem-solving.
Related article: Singapore’s HDB BTO Renovation Cost Guide (2023)
8. Newly-weds fought over HDB flat even before achieving MOP
A newly-wed couple’s dream of owning a home turned into a legal battle over their newly purchased flat, with both parties wanting a bigger share of the property, reported The Straits Times.
This comes after they decided to call it quits even before the flat achieved its five-year Minimum Occupation Period (MOP).
The couple bought the HDB resale flat for $370,000 and spent almost $80,000 on renovations.
In deciding the case, High Court Justice Choo Han Teck focused on the financial contributions of the parties.
Justice Choo noted that the parties’ direct financial contributions should not be limited to the funds used to acquire the property but also the expenses incurred to improve the matrimonial asset.
“It would not be just and equitable for the court to ignore sizeable sums of monies expended to improve matrimonial assets,” said the judge.
Since the woman contributed more money to the acquisition price and the renovation costs of the flat, the court ruled in her favour and granted her a 67% stake in the flat. The remaining 33% went to the ex-husband.
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Fariza Salleh, Content Executive at PropertyGuru, edited this story. To contact her about this story, email: farizasalleh@propertyguru.com.sg.
