9 to 15 May 2023
Far East Organization and Sino Group have opened The Reserve Residences in Bukit Timah for preview, with prices starting from $2,300 per sq ft (PSF). Meanwhile, Singapore’s real estate market continues to make headlines, with new condominium launches achieving record-high prices this year, amid concerns over rising mortgage rates, and a potential global economic slowdown.
1. The Reserve Residences opens for preview, prices start from $2,300 PSF
Far East Organization and Sino Group have opened The Reserve Residences in Bukit Timah for preview, with prices starting from $2,300 PSF, reported The Business Times.
“We know that with the recent Additional Buyer’s Stamp Duty (ABSD) hike, there is going to be some pressure on certain groups of potential buyers,” said Far East Organization’s COO of the Sales and Leasing Group Shaw Lay See.
“But we are quietly confident that this is a development that will take off, because of the location and (as) it is an integrated development.”
Dr Tan Tee Khoon, Country Manager – Singapore, PropertyGuru said: “The Beauty World locale is part of a transformation seeded in the Urban Redevelopment Authority (URA) Master Plan 2019, which includes thoughtfully-designed public spaces and pedestrian networks that are well integrated with transport and community uses. The Reserve Residences is an integral part of seeing the Master Plan 2019 come to fruition for this precinct.
Besides, this is likely to be the only mixed-development launch that is integrated with a transport hub in 2023. Being the third development to debut after the revised ABSD rates came into effect on 27 April 2023, we expect local demand to be the main driver of the take-up rate with homebuyers and investors alike. Its location attribute within 1km proximity to good schools such as Methodist Girls’ School (MGS) and Pei Hwa Primary would be a hit among parents with school-going children. At the same time, the connectivity to a transport hub enhances the rentability of the development and would be a definite draw even for investors.”
Nestled above a retail mall, the 99-year leasehold development in District 21 will offer 732 residential units spread across eight blocks.
Units range from 1-bedroom to 5-bedroom units, duplexes, and penthouses, categorised into four collections: Prices for 1-bedroom units start at around $1.11 million, $1.45 million for 2-bedroom units, $2.2 million for 3-bedroom units, and $3.5 million for 4-bedroom and larger units, including penthouses.
The District 21 development – which is expected to secure its temporary occupation permit in Q1 2028 – will book sales from 27 May 2023.
Related article: What Do Singaporeans Think About the April 2023 Property Cooling Measures?
2. Rivière at Jiak Kim Street is fully sold out
Frasers Property revealed on 12 May 2023 that all 455 units at its luxury condo Rivière have been sold out.
Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group said: “Rivière is a captivating development, its allure amplified by the initiation of the Thomson-East Coast Line. Nestled along the picturesque Singapore River, the residence offers more than just a scenic waterfront view.
Residents can also relish the charm of quaint eateries and benefit from seamless access to the Central Business District. The project’s pricing, ranging from $2,800 to over $3,000 PSF, caters to a diverse demographic, appealing to both locals and expatriates alike.”
Located at 3 Jiak Kim Street, the 99-year leasehold condo in District 3, which consists of two 36-storey residential towers, obtained its Temporary Occupation Permit (TOP) on 17 January 2023.
The mixed-use development also features a four-storey serviced apartment block and three adjoining century-old warehouses that have been converted into a 24/7 lifestyle hub.
Rivière was launched in May 2019, with 49 units sold at an average price of $2,891 PSF by year-end. Another 42 units were shifted at an average price of $2,628 PSF in 2020, despite the COVID-19 pandemic.
Thereafter, the development reportedly saw transaction volume accelerate, with 109 units sold in 2021 and 209 units sold in 2022. The last 47 units were sold from January to April 2023.
3. New condo launches achieve record-high prices in 2023
Singapore’s real estate market continues to make headlines, with new condominium launches achieving record high prices this year, amid concerns over rising mortgage rates and potential global economic slowdown, reported The Straits Times.
Units at the recently launched The Continuum, a freehold condominium project in Thiam Siew Avenue, were sold at an average price of $2,732 PSF. The figure is up 17% from the $2,340 PSF average price for new sales of freehold properties within the city fringe area over the last 16 months.
This is unprecedented since the same average price would have been enough to buy a property in District 9 or 11 within the Core Central Region (CCR) 10 years ago.
Market watchers attributed the surge in prices to a combination of factors, such as the strong demand for private homes – particularly from upgraders, pent-up demand from the pandemic, a resilient job market as well as a strong wage growth which leads to increased household income and savings.
They believe that the record high prices may also be due to higher land prices and construction costs.
4. Home rental scams rose to 979 cases in 2022
Minister of State for Home Affairs Sun Xueling revealed that the number of home rental scams facilitated on online platforms surged to 979 cases last year from 192 cases in 2021, reported TODAY.
She made the statement in response to a parliamentary question from a Member of Parliament for Pasir Ris-Punggol Group Representation Constituency Yeo Wan Ling.
The minister noted that the culprits in such scams usually impersonate property agents, listing homes for rent on online platforms and asking victims to pay a deposit to secure a viewing or rental.
Sun shared that the police had been working with online platforms to remove suspicious advertisements and accounts while the Ministry of Home Affairs (MHA) launched the e-commerce marketplace transaction safety ratings in May last year.
Sun urged the public to exercise caution by verifying the identity of property agents before dealing with them.
“We urge the public to go to formal online platforms where the main business is in property rental, such as PropertyGuru and other marketplaces, and not to go to other online platforms such as Facebook or Carousell, where the main business is not in the property rental space,” she added.
5. All homes are required to have residual current circuit breakers
In a bid to improve safety within households, all residential properties in Singapore will be required to have a residual current circuit breaker (RCCB) installed from 1 July 2023, said HDB and Energy Market Authority (EMA) in a joint release.
This electrical safety device prevents electric shocks by cutting off the supply of electricity whenever there is a current leakage due to exposed or ageing wires, faulty electrical appliances, and damaged insulation.
The Government is providing homeowners a grace period of two years to comply with the new regulations.
Since July 1985, all new buildings have been required to have an RCCB and most of the homes that have undergone renovations would have been installed with it.
“However, there remains a small percentage of residential premises built before July 1985 which may be using their original electrical circuits without an RCCB installed,” said HDB and EMA.
With this, owners of HDB flats built before 1985 will be notified and given assistance to install the device.
Private homeowners are also urged to check and install an RCCB if they do not already have one.
6. Shanmugam and Balakrishnan say bids for Ridout Road properties were above the guided rent
The Singapore Land Authority (SLA) confirmed that the colonial bungalows at 26 and 31 Ridout Road are rented to Law and Home Affairs Minister K Shanmugam as well as Foreign Affairs Minister Vivian Balakrishnan, respectively, reported CNA.
SLA said the rentals for the properties, which had been vacant for several years, were “performed in full compliance with the relevant SLA procedures”.
In fact, the bids submitted by the two ministers were above the properties’ guide rent.
Lee Sze Teck, Senior Director for Research at Huttons Asia, said that guide rent is like a minimum rent and it is “normal for bidders to place a higher bid to secure the property they want”.
SLA also noted that Shanmugam was the sole bidder for 26 Ridout Road, while Dr Balakrishnan submitted the highest bid for 31 Ridout Road.
SLA made the statement in response to online articles by Kenneth Jeyaretnam, Chief of the opposition Reform Party, where he called on SLA to shed some light on the properties’ auction process.
Jeyaretnam said it was difficult to see how the ministers “could afford to pay the market rent for such a pricey property”.
Related article: Will Rental Prices for HDB and Private Properties Come Down in 2023?
7. Property developers gear up for increased compliance work
Property developers are preparing for an increase in compliance work to meet the new rules set out by the URA to tackle money laundering and terrorism financing within real estate, reported The Business Times.
Starting 28 June 2023, developers must conduct customer due diligence checks at all transactions for uncompleted properties regulated under the Housing Developers (Control and Licensing) Act as well as the Sale of Commercial Properties Act.
Developers must consider various factors like whether the buyer is from a country which is subject to increased monitoring and must screen them against lists in the United Nations Act and the Terrorism (Suppression of Financing) Act.
“In addition, developers may choose to screen purchasers against public sources of information, such as public websites or third-party screening databases,” said URA.
With this, there have been many enquiries from developers, who are seeking training for their staff and advice from lawyers and professional services firms on how to comply with the new requirements.
URA said it will “conduct regular audit checks on developers to ensure that they comply with the anti-money laundering and terrorism financing requirements.”
Developers who fail to comply with the new requirements face fines of up to $100,000.
8. Singapore firms move to cushion the impact of rising rents
Companies in Singapore are providing financial aid to their employees to help them cope with the rising home rents, which climbed at its fastest pace in 15 years in 2022, reported Reuters.
Some are also offering remote working options and relocating staff to cheaper cities.
Most expats do not receive housing allowances, while those that do have it capped at between 30% and 40% of their monthly salary.
With the continuous increase in rents, expats consider relocating elsewhere, which could harm Singapore’s ambitions to become a technology and innovation hub as well as reduce its appeal as an alternative to Hong Kong.
Government data showed that foreigners with no permanent residency make up 28% of the city-state’s 5.6 million population. Most of them rent homes, leaving them vulnerable to rental hikes.
However, the Government said Singapore “continues to be a very liveable” city, citing education, healthcare, rule of law and connectivity and that it attracts “significant investments”.
“Higher demand for rentals can only be the result of more attractiveness to global talent and not less,” it added.
9. The cost of doing business in Singapore may increase due to the ABSD rate hike
An industry expert has warned that the Government’s move to increase the ABSD for property purchases may cause problems for Singapore, reported Singapore Business Review.
Savills Singapore Research Head Alan Cheong said a time will come when the available rentable properties for foreigners will decline due to the investment dissuasion, eventually leading to a tight rental market and raising the cost of doing business in the country.
He sees no need to impose any additional measures on the taxation of properties since the Government has already set in place the Total Debt Servicing Ratio (TDSR).
Cheong then advised foreigners to look beyond Singapore’s private residential sector, such as shophouses, strata offices, retail units, industrial properties, and hotels.
For foreigners wishing to buy Singapore property, he urged them to wait and seek legal advice on obtaining citizenship or permanent residency.
While the process may take some time, Cheong said no ABSD will be levied on them for their first property purchase if they got Singapore citizenship, or just 5% ABSD if they obtained permanent residency.
10. Foreign buyers won’t be affected by the property tax hike
Nationals from the United States, Iceland and Norway are some of the foreign buyers that will not be affected by Singapore’s recently-implemented tax hike on residential property acquisitions, reported Bloomberg.
This comes as these group of buyers enjoy the same stamp duty treatments as Singapore citizens due to free trade agreements that have been in place for around a decade.
However, these groups have been less active in Singapore’s property market compared with Malaysians and Chinese.
The new measures, implemented on 27 April 2023, impose a 60% tax on any residential purchase by foreigners and 65% on those using a trust or entity – preventing circumvention of the rules.
Despite the new measures, four units of the recently-launched Blossoms by the Park condominium were sold to Chinese buyers and another four to US buyers.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
