Month: March 2025

mark Shareholders of CapitaLand Investment (CLI) can breathe a sigh of relief following the signing of major partnerships with leading institutions to adopt and integrate advanced technologies such as artificial intelligence (AI). The group revealed that it has reached a Memorandum of Understanding (MoU) with Microsoft to harness its platforms, services, and solutions to improve customer engagement and operational efficiency across its various businesses such as funds, investments, retail, lodging, and development.

As part of the arrangement, CapitaLand will become a member of Microsoft Singapore’s AI Pinnacle Program, a move that will give the real estate group access to Microsoft’s vast resources. This will also allow CapitaLand to explore potential areas for collaboration, such as infrastructure development and leveraging Microsoft’s Azure cloud computing platform to enhance its data centre design and products. Additionally, the integration of AI, data analytics, and machine learning will help strengthen CapitaLand’s digital and business transformation efforts.

Quah Ley Hoon, Group Chief Corporate Officer of CapitaLand Investment, sees this partnership with Microsoft as a significant step in the group’s digital transformation journey. She believes that AI will play a crucial role in shaping CapitaLand’s future by driving operational efficiencies and creating value for stakeholders, including shareholders.

On a related note, CapitaLand Investment (CLI) has also signed an MoU with the Singapore Business Federation (SBF) to collaborate on digitalization and integrate AI into their retail ecosystem. This partnership aims to enhance business efficiency and competitiveness by facilitating the adoption of AI, data analytics, and cybersecurity solutions. It also seeks to develop AI-focused competency and skills among retail tenants, ensuring their continued success in the rapidly evolving digital landscape.

In summary, there are many benefits to be gained from investing in a condominium in Singapore, including the high demand, potential for increase in value, and attractive rental yields. However, it is crucial to carefully evaluate certain factors such as location, financing options, government regulations, and current market conditions before making a decision. By conducting thorough research and seeking advice from professionals, investors can make informed choices and optimize their returns in Singapore’s ever-changing real estate market. Whether you are a local investor looking to expand your investment portfolio or a foreign buyer seeking a secure and profitable opportunity, the launch of new condos in Singapore is a compelling option to consider. With the added benefit of new condo launches, now is an opportune time to take advantage of the dynamic real estate market in Singapore.

These partnerships demonstrate CapitaLand’s commitment to staying at the forefront of technological advancements and utilizing them to create value for its stakeholders. With these collaborations, shareholders of CapitaLand Investment can rest assured that the group is taking proactive steps to maintain its strong financial performance and enhance its business operations.…

A group of 14 retail shops located at Peninsula Plaza, Sim Lim Square, and Far East Plaza is now up for sale through an expression of interest (EOI) exercise. These properties are being marketed by ERA Realty Network and have a total price of $26.46 million.

Among the properties for sale are two units at Peninsula Plaza, a 999-year leasehold mixed-use development on North Bridge Road. These adjoining ground-floor shops have a combined strata area of around 990 sq ft and are asking for $8 million, or $8,081 psf. Peninsula Plaza is a 30-storey commercial development that was completed in 1980 and features a six-story retail podium and a 24-storey office tower. It is conveniently connected to the City Hall MRT Interchange Station, providing easy access to both the North-South and East-West lines.

At Sim Lim Square, there are 11 strata units with a total strata area of 5,081 sq ft available for sale. These units are zoned for commercial use and are all located on the fifth floor. They have a 99-year lease that commenced in April 1983, with approximately 57 years remaining. According to ERA, most of the units are currently tenanted and face the mall’s main atrium. They also offer direct access from the escalators and lifts. These units can be purchased collectively or individually, with individual units priced at $840,000 and the entire portfolio having an asking price of $15.855 million, which ERA states is a 20% discount from its latest valuation. This translates to $3,120 psf on the strata area.

Sim Lim Square is a strata-titled commercial development on Rochor Canal Road in District 7. It was completed in 1987 and has 492 commercial units spread across six floors and two basement levels. The only remaining unit for sale is located at Far East Plaza on Scotts Road, a freehold mixed-use development completed in 1982. Situated on the second floor, this retail unit has a strata floor area of 355 sq ft and faces the escalator near the mall’s main entrance. It is priced at $2.6 million, or $7,324 psf. Far East Plaza comprises a five-storey retail mall and serviced apartments and is within walking distance of Orchard Road MRT Station.

Director of capital markets and investment sales at ERA, Donald Goh, believes that these properties will attract interest from both property investors and business owners. He notes that strata retail sales in the Downtown Core and Orchard Planning Area remained resilient last year, with 28 and 33 deals recorded in each area, respectively. Goh adds: “A ground floor unit at Lucky Plaza was sold for $15,242 psf while units at Orchard Towers and The 101 were sold for $5,309 psf and $5,657 psf, respectively, showing that strata retail shops are still a desirable investment.”

When exploring the possibility of investing in a Singapore Condo, it is crucial to also evaluate the potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can vary significantly depending on various factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to offer better rental yields. To gain a better understanding of a condo’s rental potential, conducting thorough market research and seeking advice from real estate agents can provide valuable insights.

The EOI for these properties will close on April 17 at 3pm. Interested parties can check out the latest listings for Peninsula Plaza properties.…

GuocoLand, together with its joint venture partners TID and Hong Leong Holdings, has successfully secured a green club facility worth $367.1 million from DBS Bank to develop the Faber Walk site. This site, measuring 277,659 sq ft, was awarded to the partners through a Government Land Sale tender in November last year. Their bid of $349.86 million, or $900 psf per plot ratio, emerged as the top bid.

The Faber Walk development will consist of 399 residential units spread across nine low-rise blocks. Situated within the Faber Walk landed private residential enclave, it is adjacent to the Faber Hills estate. With a waterfront location next to the Pandan River and the upcoming Old Jurong Line Nature Trail, this development promises a serene and nature-rich living environment.

The green club facility for the Faber Walk project serves to enhance GuocoLand’s existing sustainable initiatives seen across its other developments, such as Guoco Tower on Wallich Street, Guoco Midtown on Beach Road, Midtown Modern on Tan Quee Lan Street, and Lentor Mansion in Lentor Gardens.

In line with GuocoLand’s commitment to sustainable development, the Faber Walk project is expected to receive the BCA Green Mark Platinum (Super Low Energy) award and Maintainability badge upon completion. Dora Chng, the residential director of GuocoLand, shares her excitement over the group’s ability to leverage its end-to-end value chain capabilities in creating sustainable developments with biophilic designs, just like their previous successful launches such as Lentor Modern and Lentor Mansion in the Lentor Hills estate.

When it comes to investing in a condo, financing is a crucial element to consider. Luckily, there are various mortgage options available in Singapore. However, it is important to keep in mind the Total Debt Servicing Ratio (TDSR) framework, which restricts the amount of loan a borrower can take based on their income and current debt commitments. Familiarizing oneself with the TDSR and seeking guidance from financial advisors or mortgage brokers is key in making well-informed decisions about financing and avoiding excessive borrowing. In light of this, it is advisable for investors to also explore Singapore Projects when looking into condo investments.

GuocoLand has another upcoming project in the pipeline, a joint development with Hong Leong Holdings, which will boast 941 residential units at its Upper Thomson Road (Parcel B) site, awarded last April. Set for launch in the second half of this year, this project looks to be another successful addition to GuocoLand’s portfolio.…

The executive condominium (EC) market continues to see strong demand as evidenced by the recent launch of Aurelle of Tampines, which saw 90% of its units sold on Mar 8. Developed by Sim Lian Group, the 760-unit EC achieved an average price of $1,766 psf for the 682 units sold. All the four- and five-bedroom units have been taken up while around 84% of the three-bedroom units have also been sold according to the developer.

Commenting on the high demand for modern and well-connected homes like Aurelle of Tampines, Sim Lian Group’s executive director Kuik Sing Beng said, “This remarkable response underscores the strong demand for thoughtfully designed and well-connected modern homes like Aurelle of Tampines, in the most well-connected regional centre in Singapore.”

The average price of $1,766 psf for Aurelle of Tampines has also set a new benchmark for launch prices in the EC market, according to PropNex CEO Ismail Gafoor. He also noted that the 90% launch take-up rate is the highest for a new EC project since the 531-unit Hundred Palms Residences was sold out on launch day in July 2017 at an average price of $841 psf.

Sim Lian also announced that the 30% quota allocated for second-timers was filled by 3.15 pm on launch day. The quota for second-timers will be lifted a month after the launch date. According to Eugene Lim, key executive officer at ERA Singapore, the second-timers could have accounted for more of the sales if there was no quota limit. However, they will still have another opportunity to ballot for a unit after the quota is lifted.

Huttons Asia CEO Mark Yip suggests that the government may want to increase the quota for second-timers buying an EC, in line with the recent increase in the quota for second-timers buying BTO flats. About 68% of the buyers for Aurelle of Tampines opted for the Deferred Payment Scheme (DPS) while the remaining chose the Normal Payment Scheme. This is the highest percentage of DPS buyers seen for an EC project, according to PropNex’s Gafoor.

Prior to the launch, more than 2,200 electronic applications (e-apps) were received since the project opened for preview on Feb 21. This is the highest number of e-applications seen since Copen Grand, the first EC launched in Tengah, attracted 2,300 e-apps in 2022.

Aurelle of Tampines is the second EC launched in Tampines North, following the 618-unit Tenet which was launched in December 2022. Tenet saw 72% of its units sold on launch day at an average price of $1,348 psf. The project is now fully sold.

The pricing for Aurelle of Tampines starts from $1.417 million ($1,687 psf) for a three-bedroom unit of 840 sq ft, $1.689 million ($1,651 psf) for a four-bedroom of 1,023 sq ft, and $2.258 million ($1,665 psf) for a five-bedroom unit of 1,356 sq ft. According to ERA’s Lim, the attractive pricing, strategic location, and unique features of the project have made it a popular choice for eligible first-time buyers and upgraders.

Apart from the attractive pricing, the strong sales for Aurelle could also be attributed to its proximity to ParkTown, a fully integrated mixed-use development with a transport hub, shopping mall, hawker centre, and community club. ParkTown Residence, a 1,193-unit development by CapitaLand and UOL Group, saw 1,041 units sold on its launch weekend on Feb 22-23 and has since sold a total of 1,043 units at an average price of $2,361 psf.

Huttons’ Yip notes that Aurelle is the second EC to be located next to a fully integrated mixed-use development, after the 573-unit Esparina Residences in Sengkang which was launched in October 2010 at an average price of $748 psf. Based on caveats lodged, the average price of units sold from January 2024 to January 2025 was $1,625 psf, a 117% increase. In November 2023, a 1,367 sq ft unit on the seventh floor of Esparina Residences sold for $2.388 million ($1,747 psf), the second highest psf price achieved at the development. The highest was a 1,367 sq ft unit on the 14th floor that sold for $2.4 million ($1,756 psf) in November 2023.

When it comes to real estate investing, location is a crucial factor to consider. This holds particularly true in Singapore, where the right location can significantly impact property values. Condominiums that are situated in central areas or in close proximity to essential amenities, such as schools, shopping malls, and public transportation hubs, have shown to appreciate more in value. Prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently demonstrated growth in property values. With the addition of Singapore Projects, these areas have become even more desirable for potential investors. Families, in particular, are drawn to condos in these areas due to their proximity to good schools and educational institutions, making them highly sought after investments.

ERA’s Lim points out that new ECs are priced around $600 psf cheaper than new private condos in 2025, making them an appealing choice for buyers. Compared to resale condos in the suburbs, the average price for a new EC is only 1% higher. When taking into account the fresh 99-year lease and modern facilities, new ECs are a compelling option for home buyers.…

Obtaining financing is a crucial component when investing in a condominium. In Singapore, there are various mortgage choices available, but it is vital to consider the Total Debt Servicing Ratio (TDSR) framework. This framework restricts the loan amount that a borrower can take based on their income and current debt commitments. Being familiar with the TDSR and seeking guidance from financial advisors or mortgage brokers can assist investors in making sound choices regarding their financing options, preventing excessive borrowing. Singapore Projects should also be taken into consideration during this process.

by private treatyFar East Consortium International’s managing director, Angus Henderson, points out Aurea’s location offers an appealing blend of the old and new. “We are delighted to present Aurea, which is not just primed to be the focal point of the Icon on Beach Road, but also part of the larger urban transformation happening in the vicinity. Our intention was to create a harmonious juxtaposition of the old and the new, the historical and the modern,” he says.Aurea, a luxury residential project located in Singapore’s Core Central Region (CCR), was launched for sale on March 8. This development, a joint venture between Far East Organization and Perennial Holdings, comprises a total of 188 units across 45 storeys. The joint developers released 78 units for sale in phase one, which consists of a mix of two- to four-bedroom apartments from levels 4 to 16. The first phase proved to be a success, with 23 units sold at an average price of $3,005 per square foot (psf).This translates to a sales rate of 30% based on the 78 units released in phase one. The majority of the buyers at Aurea are Singaporeans, making up 83% of the total sales, with Malaysian permanent residents (PRs) accounting for the remaining 17%. The sales percentage based on the total of 188 units sold is approximately 12.2%.According to experts in the real estate industry, the sales performance of Aurea is impressive, considering the current market conditions for luxury properties in the CCR. Since the tightening of the additional buyer’s stamp duty (ABSD) measure in April 2023, sales for luxury properties in the CCR have been lacklustre. In fact, developers only sold 378 new private homes in the CCR in 2024, which is a significant decrease of 74% from the 1,454 units sold in 2023.The success of Aurea can also be attributed to its prime location and unique design. The project, designed by DP Architects, boasts a “hanging garden concept” and is the first new private condominium connected to a mixed-use development that was sold en bloc and conserved. It is now known as Golden Mile Singapore, adding to its appeal.According to the joint venture, the two- and three-bedroom apartments in the Prestige Collection were the best sellers, accounting for 74% of the total sales. These apartments were particularly attractive to buyers due to their well-designed spaces, functionality, and potential as an investment opportunity. The four-bedroom units in the Signature Collection also garnered attention, with their expansive balconies that offer sweeping views of both the Marina Bay and Kallang Basin.The Sky Villa Collection, which consists of 18 five-bedroom apartments of up to 3,251 square feet and two exclusive six-bedroom penthouses of up to 8,816 square feet, was also in demand. According to Shaw Lay See, COO of Far East Organization’s sales & leasing group, the large-format homes in the downtown area are hard to find, making them highly attractive to potential buyers. She also notes that the project’s unique blend of heritage and modern sophistication has captured the attention of many buyers, with its magnificent views and prime location being significant selling points.Aurea’s success can also be attributed to Singapore’s ongoing urban renewal efforts, with major infrastructural and lifestyle upgrades in the surrounding precincts. The revitalisation of Beach Road and the Ophir-Road Corridor, the Kallang Alive master plan, and the completion of the North-South Corridor are set to enhance accessibility, connectivity, and vibrancy in this key city district. This transformation is expected to benefit Aurea, further adding to its appeal as a luxury residence.Angus Henderson, managing director of Far East Consortium International, points out that Aurea’s location offers a perfect blend of the old and new, making it a unique and highly desirable place to live. “We are delighted to present Aurea, which is not just primed to be the focal point of the Icon on Beach Road, but also part of the larger urban transformation happening in the vicinity,” he says. “Our intention was to create a harmonious juxtaposition of the old and the new, the historical and the modern.”Overall, Aurea’s successful launch and sales rate are indicative of the strong demand for luxury properties in the CCR and the potential for growth in this segment. With the gap between private residential properties in the CCR and the RCR narrowing in recent years and more new luxury homes expected to be launched in 2025, experts believe that CCR properties will once again become a top choice for savvy investors who seek to enjoy the “finer things in life”.…

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When looking to invest in a Singapore Condo, it is crucial to consider how the property will be maintained and managed. Unlike a traditional house, condos often have maintenance fees that cover the upkeep of common areas and amenities. While these fees may increase the overall cost of ownership, they also ensure that the property remains well-maintained and retains its value. To further ease the responsibilities of condo ownership, investors can enlist the help of a property management company to handle day-to-day tasks. This allows for a more passive investment experience.

One Holland Village Residences’ three-bedroom unit sets new psf-price record, topping the charts among private condos in the week of Feb 16 to 21.The 1,238 sq ft unit transacted at $4.68 million, setting a new peak of $3,781 psf on Feb 17. This marks the development’s first sale this year, with the buyers making a profit of $490,000 from its purchase from the developer in November 2023. It surpasses the previous record of $3,426 psf set in August 2022.However, Hill House was not far behind, with a two-bedroom unit on the ninth floor sold for $1.538 million, setting a new record of $3,402 psf on Feb 21. This marks the second time the boutique condo has set a new record within the review period.Chuan Park also saw a new psf-price high, with a 732 sq ft, two-bedroom unit sold for $2.04 million ($2,785 psf) on Feb 19, narrowly beating the previous record of $2,765 psf set in November last year.No new psf-price lows were recorded during the period in review.…

A three-storey terrace factory located at Midview City is currently on the market for sale with Colliers International, the exclusive marketing agent. The property has a guide price of $6.2 million, equivalent to $688 psf.

This factory features a basement and rooftop terrace and is situated along Sin Ming Lane in the popular Sin Ming Industrial Estate. It spans approximately 9,009 sq ft and falls under the “Business 1” zoning category in the URA Masterplan 2019.

According to Colliers International, the factory has been fully-leased and is currently approved for use as a childcare centre. It is leased to Star Learner preschool and childcare centre.

The demand for condos in Singapore continues to soar due to the limited supply of land. As a small country with a rapidly expanding population, Singapore is facing a scarcity of land for development. This has prompted the government to implement strict land use policies, resulting in a highly competitive real estate market where property prices are continuously on the rise. Hence, investing in real estate, particularly in condos, has become a highly profitable venture, promising significant capital appreciation. In fact, the recent launch of new condo developments has further intensified the demand for these sought-after properties.

Midview City is a 60-year leasehold light industrial building completed in 2012. It is conveniently located within walking distance to Bright Hill MRT Station on the Thomson-East Coast Line. The property is easily accessible from the Bishan and Upper Thomson residential areas, with two entrances via Sin Ming Lane and Bright Hill Drive.

Raphael Lee, director of industrial services at Colliers, has stated that this property presents a unique opportunity for investors as it will be sold with the existing preschool operator in place.

As a Business 1 light-industrial property, it is not subject to Additional Buyer’s Stamp Duty (ABSD) and can be purchased by foreigners. Interested buyers can submit their Expressions of Interest (EOI) by April 29 at 3pm.…

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Investing in a Singapore condo offers numerous advantages, and one of them is the opportunity to leverage its value for future investments. It’s a common practice among investors to use their condos as collateral to secure additional funding for new investments, which in turn, allows them to grow their real estate portfolio. While this approach can potentially amplify returns, it also carries certain risks. Therefore, having a solid financial plan in place and carefully considering the possible impact of market fluctuations is crucial.

BlackRock: Focus on Liquidity and Niche Asset Classes for Asia Pacific Real Estate

According to Hamish MacDonald, head and chief investment officer of APAC Real Estate at BlackRock, investors are showing more interest in deploying capital into Asia Pacific real estate markets that have high levels of liquidity. He predicts that the property sectors that will benefit from economic tailwinds this year are accommodation, logistics, and alternative assets. MacDonald further explains that the markets with abundant liquidity this year include Australia, Japan, Singapore, and Auckland in New Zealand, which coincidentally also represent the order of focus for BlackRock.

He observes that investor sentiment this year is likely to be more bullish compared to 2023 and 2022. As a result, institutional investors will start discussions about deploying and recycling capital in selective Asia Pacific real estate markets. In Singapore, BlackRock has been concentrating on acquiring serviced apartment properties, such as the Citadines Raffles Place, which was purchased for about $290 million in October 2021 in partnership with YTL Corp. They also teamed up with Hong Kong-based accommodation operator Weave Living to acquire Citadines Mount Sophia for $148 million in February 2024. As of this week, the Weave Living-operated property has reopened as the 175-room Weave Suites – Hillside.

MacDonald says that their recent acquisitions in Singapore reflect the belief that there is a shortage of new serviced apartment developments, yet there is a high demand for this type of accommodation. He also adds that they are not looking to build a large portfolio, but rather to target specific deals. They prefer to work with partners to refurbish and reposition existing properties and add new amenities to increase their value.

MacDonald notes that Singapore continues to attract significant capital inflows and a highly skilled workforce, which contributes to the country’s strong business growth. As such, they maintain a positive outlook on investment opportunities in Singapore. He adds that Japan will remain a target for many real estate investors this year. BlackRock’s analysis of domestic pricing power, wage growth, and corporate reform has led them to be bullish on the Japanese economy, which supports growth in real estate. Daigo Hirai, head of Japan real estate at BlackRock APAC, agrees that there has been a strong rental uplift in the Japanese residential market in recent quarters, thanks to a combination of factors such as wage increases and higher construction costs. He expects a 7% to 8% increase in residential rents across major Japanese cities like Tokyo and Osaka this year. Hirai points out that tenants prefer larger apartment units over compact studios, and as such, BlackRock is looking to acquire assets close to train stations in residential-commercial neighbourhoods like Osaka’s Namba district.

BlackRock plans to partner with an experienced accommodation operator to manage a hybrid residential investment strategy that caters to both inbound tourist accommodation needs and domestic rental demand. This will allow them to deepen their investment presence in tourist-dominated cities like Kyoto and Fukuoka. Hirai adds that smaller developments with up to 50 units near train stations in residential-commercial neighbourhoods are assets that fit this strategy. The firm will consider acquisitions in the range of JPY1 billion ($8.93 million) to JPY3 billion to accommodate its exit strategy.

According to MacDonald, their key strategy in Japan is to deploy specialist ground teams that can identify potential acquisition deals at a significant discount. BlackRock’s focus in Japan is mainly on residential assets. Meanwhile, long-term population growth estimates support positive long-term growth across most sectors in the Australian real estate market, says Ben Hickey, Head of Australia Real Estate at BlackRock. He notes that most property sectors in Australia are typically characterized by under-supply and low vacancy rates. Hickey concludes that any investment strategy in Australia should consider whether rental growth can exceed inflation, the ongoing long-term supply-demand imbalance, and a favorable exit strategy. Consequently, BlackRock is focusing on niche asset classes in Australia such as childcare properties, last-mile logistics assets, life science real estate, and self-storage properties.

Hickey explains that these four asset types will benefit from Australia’s long-term population growth and are “chronically undersupplied” compared to the broader regional markets. This allows BlackRock to generate outsized returns with limited risks, and they cannot rely on a favorable interest rate outlook to generate real estate returns.…

If you have toured a show flat in recent years, you may have noticed that the unit sizes have become smaller. This is understandable, as our perception of space is relative to what we are accustomed to. In the 1990s and 2000s, the average size of homes in Singapore, whether HDBs or condos, was larger compared to today’s standards. For instance, in 1995, the average size of a new condo was 1,272 sq ft, which increased to 1,286 sq ft in 2005. However, by 2015, the average size had dropped to 858 sq ft and further decreased to 929 sq ft in 2024.

In the past few decades, there has been a significant change in demographics. In 1995, the average household size was four, which reduced to 3.6 in 2005, 3.4 in 2015, and further shrunk to 3.1 in 2024. As a result, the average space per household member has also decreased from 318 sq ft in 1995 to 357 sq ft in 2005. However, it dropped to 252 sq ft in 2015 and then rebounded by 19% to 300 sq ft in 2024. Overall, this indicates a 5.7% decrease in average condo size per capita over the last 29 years.

This trend of shrinking unit sizes could not have been possible without the intervention of the government. In 2008, the introduction of “Mickey Mouse” units in some condo projects in the Rest of Central Region (RCR) significantly reduced the barriers to entry for property investment. These units, as small as 24 sq m (258 sq ft), were equivalent to two parking spaces and sold for as low as $375,000. The success of these projects led to the proliferation of such units in the following years, raising concerns about the living environment’s quality.

To address this issue, the Urban Redevelopment Authority (URA) issued guidelines in 2011, specifying the maximum allowable number of dwelling units (DUs) in a project. This move was followed by more stringent guidelines in 2019, which helped increase the average DU size outside the Central Area by 21.4% to 85 sq m. Additionally, several areas were required to meet a more stringent average DU size of 100 sq m, including Marine Parade, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How San, Shelford, and Loyang. As a result, the average DU size outside the Central Area increased from 787 sq ft in 2019 to 935 sq ft in 2024, marking an 18.8% increase.

However, the Central Area saw a different trend, with smaller units being built despite the URA’s goal of making it an attractive place to live, work, and play. As a result, the average DU size in the Central Area reached a low of 725 sq ft in 2020. To address this issue, the URA extended the guidelines to the Central Area in 2023, requiring 20% of DUs to have a net internal area of at least 70 sq m.

The latest guideline change, harmonizing the strata area and gross floor area (GFA) definition in 2023, has caused the average DU size to decrease by an average of 6%. This is because developers have started omitting the air-conditioning ledges from the saleable area to avoid counting them as part of the strata area. As a result, the average DU size has increased in RCR (19.5%) and OCR (5.8%) but decreased in CCR (11.7%) since 2015.

The scarcity of land is one of the main driving forces behind the increasing demand for condos in Singapore. As a small island nation experiencing rapid population growth, Singapore is faced with limited land for development. In response, stringent land use policies have been implemented, resulting in a competitive real estate market where property prices continue to rise. For this reason, investing in real estate, particularly in condos, has become an attractive opportunity for potential buyers, with the potential for significant capital appreciation. Moreover, with Singapore Projects constantly on the rise, the demand for condos is expected to continue its upward trend.

Looking ahead, the average DU size is likely to continue decreasing with the harmonization of the GFA definition. However, at the same time, buyers are getting better value for their purchases, as units now come with smart home features and high-end appliances. With these changes, the average DU size has increased to 929 sq ft in 2024, an 8.3% increase from 2015’s 858 sq ft.…

The recent Committee of Supply debate has seen the Ministry of National Development (MND) announce several enhancements to existing housing schemes, particularly the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start).

These changes are aimed at further supporting senior citizens and lower-income households in managing their housing needs, such as right-sizing and accessing affordable public housing.

When purchasing a condominium, it is crucial to take into account the maintenance and management of the unit. Condominiums often have maintenance fees that encompass the maintenance of shared areas and amenities. While these fees may increase the overall cost of ownership, they play a vital role in preserving the property’s value and condition. Utilizing the services of a property management company can assist investors in effectively and easily managing their condos, transforming it into a more hands-off investment. In addition, keeping an eye on new condo launches can also be beneficial in discovering potential investment opportunities.

Under the SHB, senior citizens aged 55 and above with a monthly income of $14,000 or less can receive a cash bonus of up to $30,000 by reallocating the value of their residential assets into their CPF Retirement Account (RA). Previously, applicants were required to top-up their RA with up to $60,000 to receive the bonus, but with effect from 1 December 2019, the bonus will be given if the right-sizing exercise has resulted in a net increase in the RA balance, including from CPF housing refunds. This means that seniors with outstanding loans on their properties can now qualify for the SHB without making a cash top-up.

Additionally, the eligibility criteria for the SHB has been expanded to allow seniors who own properties with an Annual Value (AV) of more than $21,000 (but not exceeding $13,000) to qualify. This will benefit an estimated 15,000 more seniors, who will receive a cash bonus of up to $10,000 based on the increase in their RA, pro-rated at $1 for every $6 increase. On top of this, they will also receive an additional $10,000 cash bonus if they right-size to a two-room or smaller HDB flat.

Seniors can apply for the SHB within one year of their second property transaction, and those who complete their right-sizing after 1 December 2024 can apply for the enhanced SHB on 1 December 2025.

Moving on to the Fresh Start Housing Scheme, which was launched in 2016 to help Second Timer (ST) families attain homeownership, the scheme has also been enhanced to provide more financial support and expand eligibility to First Timer (FT) families.

Under the Fresh Start scheme, eligible families can purchase two-room flexi or three-room standard BTO flats with shorter leases of 45-65 years, subject to an extended minimum occupation period of 20 years. The scheme previously offered a Fresh Start Housing Grant of $50,000, but this has been increased to $75,000. The grant will be disbursed in two parts – $60,000 credited to the CPF Ordinary Account (OA) before key collection, and the remaining $15,000 disbursed over the next five years to support mortgage payments.

The eligibility criteria for the scheme has also been expanded to allow FT families to apply, although they are not eligible for the Fresh Start Housing Grant as they can access the larger Enhanced CPF Housing Grant (up to $120,000). However, they can still benefit from the reduced cost of shorter-lease BTO flats and social support provided under the scheme. Eligible FT families can apply from April 2025, while the revised grant amount will take effect from the July 2025 BTO exercise.

All these changes aim to further assist senior citizens and lower-income households in managing their housing needs, and provide more options and support for them to achieve homeownership and financial stability.…