Month: November 2024

Tags: Shophouses, Huttons Asia1. During the third quarter of 2024, the interest in shophouses remained strong despite a decrease in recorded transactions, according to the latest quarterly shophouse market report by Huttons Asia published on November 12.2. In the third quarter, 18 caveats were lodged for shophouse transactions, which is lower than the 21 caveated deals in the previous quarter.3. The total value of the caveated shophouses transacted in the third quarter was $138.9 million, which is 28.8% lower than the previous quarter’s $195.1 million. In comparison to the same period in 2023, this is only half of the $278.6 million transacted during the third quarter of that year.4. The number of caveated shophouse transactions for the first nine months of 2024 was 62, which is a 46.1% decrease compared to the same period in the previous year. The total transaction value for the first three quarters of 2024 was $519 million, which is 48.5% lower than the same period in 2023.5. Despite the reduction in the number of transactions, Huttons’ report highlights that several shophouses in popular districts were sold in the third quarter of 2024, such as Amoy Street, Neil Road, and Telok Ayer Street in Districts 1 and 2. According to market sources, these transactions were not reflected in the caveats as they were sold through private negotiations. The estimated value for these shophouses is more than $70 million.6. These deals demonstrate the continued demand for shophouses, which has seen an uptick in recent months. Lee Sze Teck, senior director of data analytics at Huttons Asia, believes that investors are drawn to this market segment due to its scarcity and the potential for strong capital gains. With the recent lowered interest rates, shophouses have become increasingly popular as a means of creating and preserving wealth. As a result, Lee expects the number of shophouse transactions and total quantum to increase in the fourth quarter of 2024.

Before investing in Singapore, it is essential for international investors to familiarize themselves with the regulations and limitations surrounding property ownership. Compared to landed properties, which have stricter rules, foreign buyers are generally allowed to purchase condos with fewer restrictions. However, they are still required to pay the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property acquisition. Despite this added expense, the steady stability and promising growth potential of the Singapore real estate market continue to attract foreign investment in the realm of condo ownership.…

According to a recent report by OrangeTee Research & Analytics, private resale home prices maintained their stability in the third quarter of 2024, despite the current high interest rate environment. URA records show that the average prices for both landed and non-landed private residential homes, excluding executive condos (ECs), remained unchanged at $1,713 psf from the second quarter to the third quarter of 2024. However, there was some fluctuation in average prices in the Core Central Region (CCR), Rest of Central Region (RCR), and Outside of Central Region (OCR).

In the CCR, average resale prices increased by 1.6% from $2,145 psf in the second quarter to $2,181 psf in the third quarter of 2024. This partially reverses the 3.6% drop in prices from the first quarter to the second quarter of 2024. Similarly, in the RCR, prices rose by 1.4% from $1,837 psf to $1,863 psf during the same period. However, this growth is lower than the 3.1% increase seen in the previous quarter. In contrast, prices in the OCR saw a decline of 0.4% from $1,495 psf to $1,489 psf in the third quarter, a reversal from the 3.5% growth in the second quarter.

Despite these fluctuations, the demand for resale homes remained robust, with a 1.5% increase in the number of units sold in the third quarter of 2024 compared to the previous quarter. This accounted for 71.9% of the total 5,372 residential sales, including new sales, resale, and subscale, in the same period. This is a slight decrease from the record high of 77.4% in the second quarter of 2024, as noted by OrangeTee.

In the first nine months of 2024, 10,351 resale homes were sold, reflecting a 21.8% increase compared to the same period in 2023. This also resulted in an increase in market share, from 57.8% in the first three quarters of 2023 to 71.3% in the same period in 2024. The report attributes this strong demand for resale homes to the significant increase in housing supply in the past two years, with close to 30,000 private homes completed. As more options become available, buyers may turn to the secondary market for more affordable private housing.

The recent interest rate cuts by the US Federal Reserve may also spur luxury home sales due to reduced borrowing costs. However, high-net-worth investors are less likely to base their property purchase decisions on mortgage rates. Nonetheless, the report suggests that buyers who have been hesitant due to high interest rates may now be more inclined to enter the market.

Investing in a condo in Singapore offers numerous benefits, one of which is the potential for capital appreciation. As a global business hub with robust economic foundations, Singapore consistently attracts a high demand for real estate. This has resulted in a steady rise in property prices over the years, especially in prime locations where condos are situated. By entering the market at the opportune moment and holding onto their property for an extended period, investors can experience significant capital gains. With the attractive location and strong market demand, a condo investment in Singapore can offer lucrative returns.

OrangeTee predicts that resale prices will continue to grow over the next few years as there is a projected decrease in available stock. Only 5,300 private homes are expected to be completed in 2025, a significant drop from the 9,100 units expected to be completed this year. Hence, barring any major economic crises or unforeseen circumstances, OrangeTee forecasts positive prospects for resale homeowners.…

The latest property development by Chinese developer Kingsford Group, Chuan Park, proved to be a huge success as it sold 696 out of the 916 units on Sunday, November 10. This translates to an impressive 76% sales rate. The average unit price was around $2,579 psf.

According to a spokesperson for Kingsford, the units sold were mostly two-bedroom, two-bedroom+study, and three-to-five-bedroom units. Majority of the buyers were Singaporeans, making up about 93% of the total, while permanent residents and foreigners accounted for the remaining 7%.

PropNex CEO, Ismail Gafoor, shared that 92% of the units transacted were two- and three-bedroom units, with the remaining 8% being four- and five-bedroom units. The sold units had a price range of $1.6 million (for two-bedroom units) to $4.3 million (for a five-bedroom unit). Gafoor added that the developer had carefully priced the project to cater to the high demand from prospective buyers in District 19.

Chuan Park is now the top-selling project of 2024, with 696 units sold, surpassing the 400 units (75%) sold at the 533-unit Lentor Mansion in March. However, in terms of percentage of units sold, Norwood Grand, launched in October, still holds the record at 84% or 292 out of 348 units sold.

CEO of ERA Singapore, Marcus Chu, shared that two- and three-bedroom units were the most popular among buyers in their 30s and 40s. He also noted that many of the buyers were upgrading from older HDB flats or nearby condominiums. On the other hand, older buyers who were downsizing from landed properties preferred the larger four- or five-bedroom units.

The success of Chuan Park can be attributed to its strategic location in an affluent private residential area, surrounded by landed housing estates like Serangoon Gardens, Li Hwan, and Tai Hwan. Even though it falls under the Outside Central Region (OCR), it is situated near the boundary of the Rest of Central Region (RCR). Ken Low, managing partner of SRI, highlighted that it is also near million-dollar HDB estates such as Serangoon, Toa Payoh, Ang Mo Kio, Bishan, and the upcoming Bidadari Estate.

Chuan Park is Kingsford’s second successful project this year, following the sale of 600 units at their 1,862-unit Normanton Park project on the first weekend of its launch in January. The developer acquired the 400,500 sq ft Chuan Park site for $890 million in July 2022, and the project is expected to be completed by 2027.

For international investors, it is crucial to have a thorough understanding of the regulations and limitations surrounding property ownership in Singapore. In general, foreigners have easier access to purchasing condominiums compared to landed properties, which have more stringent ownership regulations. However, it is important to note that foreign buyers are subject to the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their first property acquisition. Despite this additional cost, the promising stability and growth potential of the Singapore real estate market continues to attract foreign investments. Keeping this in mind, it is worth considering the latest New Condo Launches for potential investment opportunities in Singapore.

The development consists of five blocks, three 22-storeys and two 19-storeys, with two commercial units. It offers a range of 916 units from two- to five-bedrooms, with sizes ranging from 700 sq ft to 1,841 sq ft. Prices start from over $1.5 million for a two-bedroom unit, upwards of $2.1 million for a three-bedroom unit, $3.1 million for a four-bedroom unit, and $3.7 million for a five-bedroom unit.

The launch of Chuan Park was one of the highly anticipated events this year, and the preview period from November 1 to November 7 saw over 20,000 visitors, with more than 2,800 cheques collected from interested buyers. Initially set to launch on November 16, the launch was brought forward to November 10, allowing investors and buyers to spread their interest among various new developments.

Three other projects, Nava Grove at Pine Grove, Emerald of Katong, and Novo Place, are set to launch on November 16, and the strong sales at Chuan Park are expected to carry over to these upcoming launches. This surge in interest is a positive boost for the otherwise quiet property market in 2024.

According to SRI’s Ken Low, the recent interest rate cuts by the US Federal Reserve have increased buyers’ confidence and demand in the real estate market. The lowered interest rates have also made properties more affordable, and buyers can expect savings on their monthly mortgage payments.

PropNex CEO, Ismail Gafoor, also shared that this improved market sentiment has encouraged buyers who were hesitant in the first nine months of the year to return. However, Gafoor added that the success of a project also depends on factors such as location, proximity to MRT stations, nearby new launches, and price sensitivity.…

Colliers International has recently made two important appointments to its leadership team in Asia Pacific (APAC) and Japan. The company has named Alex Worthington as Director of Asia Pacific Capital Markets, Key Client Account Management, and Investor Intelligence, while Akira Kuno will assume the role of Deputy Managing Director and Co-Head of Capital Markets in Japan.

Worthington will report to Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, APAC. In his new position, he will be responsible for overseeing and improving key account management for the largest institutional investors in the APAC region. Pilgrim emphasizes that Worthington’s main focus will be on driving revenue growth, as well as strengthening and nurturing long-term relationships across APAC.

According to Worthington’s LinkedIn profile, he previously worked as a Client Relations Specialist at technology consulting firm Palo IT. He also brings eight years of experience from his time at JLL Singapore.

When purchasing a condominium, it is crucial to take into account the maintenance and management aspects of the property. Condos usually come with maintenance fees that cover the maintenance of shared spaces and amenities. While these fees may increase the overall cost of ownership, they also play a vital role in ensuring that the property maintains its value and remains in good condition. To make the investment more hands-off, investors can enlist the services of a property management company to handle the day-to-day management of their condos. Additionally, staying updated on new condo launches can also provide valuable insight for potential investments.

Meanwhile, Kuno brings with him 34 years of experience in both Japan’s real estate and financial industries. He has a proven track record of successfully managing real estate investment transactions amounting to over JPY1 trillion ($8.65 billion), as stated by Colliers.

In his new role, Kuno will closely collaborate with Yukihiro Ogasawara, Colliers’ Managing Director and Chairman of Japan. Together, they will drive the continued growth and expansion of the company’s capital markets business in Japan.

Ogasawara expresses his confidence in Kuno’s leadership skills, extensive market knowledge, and entrepreneurial mindset in helping clients achieve their investment objectives. He also believes that Kuno’s contributions will be crucial in driving Colliers’ growth strategy in the coming years.

These recent appointments highlight Colliers’ commitment to strengthening its leadership team in APAC and Japan. The company aims to provide even better services and support to clients in the region, as well as continue its growth trajectory.…