CapitaLand Integrated Commercial Trust (CICT) has successfully sold 21 Collyer Quay, an office building located in Raffles Place, for a total of $688 million. According to the filing made by CICT’s manager to the Singapore Exchange on Nov 12, the 999-year leasehold property was purchased by an unrelated third party. Based on the building’s net lettable area of approximately 213,000 square feet, the price translates to around $3,230 per square foot. The sale was made on a willing-buyer-willing-seller basis, in accordance with the independent valuation conducted by Savills.

This divestment is expected to yield a net profit of $681.7 million for CICT, calculated based on the consideration and the building’s annualised net property income for the period ending September 30, 2024. 21 Collyer Quay is a 21-storey building situated in the Central Business District. It is currently fully occupied by co-working operator WeWork, which took over the lease of the former HSBC building in 2021 after the bank relocated its headquarters to Marina Bay Financial Centre Tower 2. After undergoing a design and fit-out process, WeWork officially launched its flagship location at the building in September 2022.

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Selecting the right location is a crucial consideration when venturing into the real estate market, and this is especially true in Singapore. In this country, the value of condos is greatly affected by their location, with properties situated in central areas or near important facilities like schools, shopping centers, and public transportation hubs experiencing a higher appreciation in value. A prime example of such locations in Singapore are Orchard Road, Marina Bay, and the Central Business District (CBD), where the property market has consistently shown growth. Additionally, condos in these areas are highly sought after by families due to their close proximity to reputable schools and educational institutions, further enhancing their investment potential. With the inclusion of various Singapore Projects, the real estate market in these prime locations continues to thrive and attract potential investors.

However, after filing for bankruptcy in the US in November 2023, WeWork announced in April this year that it had reached agreements with its Singapore office landlords and plans to remain in its current properties in the city-state for the foreseeable future. CICT’s website states that WeWork Singapore holds a seven-year lease for 21 Collyer Quay until 2028.…

Investing in a condo in Singapore presents numerous advantages, with one of the most significant being the potential for capital appreciation. Thanks to its strategic location as a global business hub and robust economic fundamentals, the demand for real estate in Singapore remains constant. As a result, property prices have consistently shown an upward trend, particularly in prime locations where condos have experienced significant appreciation. For investors who enter the market at the opportune moment and retain their properties for the long haul, substantial capital gains can be expected. This is further proved by the numerous successful Singapore projects that have continued to thrive over the years.

Even with a decrease in caveated transactions, the shophouse market in Singapore continued to see strong interest in the third quarter (3Q) of 2024, according to Huttons Asia’s latest market report published on Nov 12. While there were 21 caveated shophouse deals in 2Q2024, there were only 18 in 3Q2024. The total transacted quantum for these caveated deals also saw a decline of 28.8% from $195.1 million in the previous quarter to $138.9 million in 3Q2024. Compared to the same period in the previous year, the transacted quantum in 3Q2024 was only half of what it was in 3Q2023 at $278.6 million. Additionally, for the first nine months of 2024, there were only 62 caveated shophouse transactions, a decrease of 46.1% from the same period in 2023. The total value of these transactions for the first three quarters of 2024 was also 48.5% lower at $519 million. Despite these figures, Huttons’ report notes that there were also a number of un-caveated shophouse deals during 3Q2024, indicating a strong demand for shophouses. According to Lee Sze Teck, senior director of data analytics at Huttons Asia, these deals were reported to involve shophouses located in Districts 1 and 2 on Amoy Street, Neil Road and Telok Ayer Street, with an estimated quantum exceeding $70 million. Lee believes that the interest in shophouses has recently picked up and the market segment is becoming more popular due to its scarcity and potential for strong capital gains. He also believes that the interest rate cuts in the last few months have made shophouses a more popular choice for wealth creation and preservation. As a result, he expects to see an increase in both shophouse transaction volume and quantum in the fourth quarter of 2024.…

A recent report by OrangeTee Research & Analytics revealed that private resale home prices remained stable in the third quarter of 2024, despite the prevailing high-interest rate environment. Data from the Urban Redevelopment Authority (URA) showed that the average resale prices for both landed and non-landed private residential properties, excluding executive condos (ECs), remained steady at $1,713 per square foot (psf) from 2Q2024 to 3Q2024.

However, there were slight fluctuations in average resale prices within different regions. Prices in the Core Central Region (CCR) saw a 1.6% increase from $2,145 psf in 2Q2024 to $2,181 psf in 3Q2024. This partially reversed the 3.6% price drop recorded in the previous quarter. Similarly, prices in the Rest of Central Region (RCR) also saw an increase of 1.4%, growing from $1,837 psf to $1,863 psf. However, this growth was lower compared to the 3.1% increase seen in the previous quarter. On the other hand, prices in the Outside of Central Region (OCR) dropped by 0.4%, from $1,495 psf to $1,489 psf, marking a turnaround from the 3.5% growth in resale prices seen in 2Q2024.

Despite the fluctuations in prices, there was still strong demand for resale homes. According to URA records, there were 3,860 resale homes sold in 3Q2024, which is a 1.5% increase from the 3,802 units sold in the previous quarter. Resale transactions made up 71.9% of the total 5,372 residential sales (including new sales, resale, and subsale) in 3Q2024. However, this was a decrease from the record high of 77.4% market share in the previous quarter, as reported by OrangeTee.

The first nine months of 2024 saw a total of 10,351 resale homes sold, a 21.8% increase from the 8,498 units transacted in the same period in 2023. The market share of resale homes also increased from 57.8% of residential transactions in the first three quarters of 2023 to 71.3% in the same period this year. This rise in demand can be attributed to the increase in housing supply, with almost 30,000 private homes completed in the past two years. With a wider range of options available, buyers may turn to the secondary market for more affordable private housing as new home prices remain high.

The recent launch of Norwood Grand, a new condo in the OCR, saw 293 units sold at an average price of $2,086 psf since its launch in October. This represents a 39.5% premium over the average price of $1,495 psf in the region. Similarly, Meyer Blue, a new project in the RCR, sold 122 units at an average price of $3,252 psf in the same month, which is 74.5% higher than the average resale price in the RCR.

With its strong economy, stable politics, and superior quality of life, Singapore has emerged as a top destination for real estate investors, both local and foreign. Among the various options available in the real estate market, condos in Singapore have gained popularity due to their convenience, range of amenities, and potential for attractive returns. This article will delve into the advantages, factors to take into account, and necessary steps to take when investing in a condo in Singapore.Add Condo to rewritten paragraph

With the recent interest rate cuts by the US Federal Reserve, OrangeTee predicts that there may be an increase in luxury home sales due to the lower cost of borrowing. However, high-net-worth investors who are less affected by interest rate fluctuations may still base their property purchase decisions on other factors. Nevertheless, buyers who were previously hesitant due to high interest rates may now be more inclined to enter the market.

OrangeTee also expects resale prices to continue growing in the next few years due to the projected decrease in available stock. While around 9,100 private homes are expected to be completed in 2024, this number is expected to decrease to approximately 5,300 in 2025. As such, OrangeTee foresees positive prospects for resale homeowners, barring any major economic crises or unforeseen circumstances.…

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Kingsford Group, a Chinese developer, managed to sell 696 units (76%) out of 916 units at Chuan Park on Sunday, Nov 10. The average price per square foot (psf) of units sold was approximately $2,579.

According to a Kingsford spokesperson, the units that were sold ranged from two-bedroom, two-bedroom+study, and three-to-five-bedroom units. Singaporeans made up 93% of the buyers while permanent residents and foreigners accounted for the remaining 7%.

The majority of the units sold at Chuan Park were two- and three-bedroom units, making up about 92% of the total units sold. The remaining 8% were four- and five-bedroom units, according to Ismail Gafoor, CEO of PropNex. The transacted prices ranged from $1.6 million for a two-bedroom unit to $4.3 million for a five-bedroom unit. Ismail also commented that the developer had priced the project sensibly, considering the strong demand, especially from buyers in District 19.

Emerald of Katong, another project, also saw high demand, with 10,000 visitors during the Deepavali weekend.

Commenting on the sales, Marcus Chu, CEO of ERA Singapore, noted that the two- and three-bedroom units were the most popular choices among buyers in their 30s and 40s. He also mentioned how many buyers were trading up from older HDB flats or condos in nearby areas. For older buyers looking to downsize from landed properties, they tend to choose the larger four- or five-bedroom units.

With the sale of 696 units, Chuan Park has emerged as the top-selling project of 2024 so far, beating out Lentor Mansion, which sold 400 units (75%) in March. In terms of percentage of units sold, Norwood Grand, which launched in October, has the highest at 84%, or 292 out of 348 units.

Mark Yip, CEO of Huttons Asia, pointed out that besides being the best-selling project of 2024, Chuan Park is also the fastest-selling since J Gateway, which sold all 738 units on its first day of launch in 2013.

This success marks another significant achievement for Kingsford. In January 2021, their 1,862-unit Normanton Park project sold about 600 units on the first weekend of its launch. Remarkably, all units were entirely sold within 18 months.

In July 2022, Kingsford acquired the 99-year leasehold, 400,500 sq ft Chuan Park site for $890 million. The site is adjacent to Lorong Chuan MRT Station and marks the first private condominium launch in the area since the 468-unit The Scala’s debut in August 2010.

Chuan Park has five blocks, three with 22 storeys and two with 19 storeys, and two commercial units spread across a 99-year leasehold site of 400,500 sq ft. The 916 units range from two- to five-bedrooms, ranging from 700 sq ft to 1,841 sq ft.

Prices started from over $1.5 million for a two-bedroom unit, upwards of $2.1 million for a 915 sq ft three-bedroom unit, $3.1 million for a 1,335 sq ft four-bedroom unit, and $3.7 million for a 1,550 sq ft five-bedroom unit.

Chuan Park is located within an affluent private residential enclave, surrounded by the Serangoon Gardens, Li Hwan, and Tai Hwan landed housing estates, as noted by PropNex’s Gafoor.

Even though Chuan Park is classified within the Outside Central Region (OCR), it is near the boundary of the Rest of Central Region (RCR). Ken Low, the managing partner of SRI, pointed out that it is near “million-dollar HDB estates,” including Serangoon, Toa Payoh, Ang Mo Kio, Bishan, and the emerging Bidadari Estate. ERA’s Chu estimated that there are around 126,000 HDB flats and 54,000 private residential units in “the Golden Triangle of Ang Mo Kio/Bishan, Toa Payoh, and Serangoon around Chuan Park.” Based on ERA’s research, there were 233 HDB flats sold for over $1 million in the first 10 months of 2024 in the nearby HDB estates of Ang Mo Kio, Bishan, Toa Payoh, and Serangoon. Chu also mentioned that these HDB owners are in a good financial position to upgrade to private residential properties if they wish to.

Chuan Park is located next to Lorong Chuan MRT Station and is surrounded by the landed housing estates of Serangoon Gardens, Tai Hwan, and Li Hwan. The launch of Chuan Park was highly anticipated this year, according to Huttons’ Yip. During the preview period from Deepavali Day (Oct 31) to Nov 7, over 20,000 visitors came, with more than 2,800 cheques collected from interested buyers ahead of the sales launch on Nov 10.

Originally scheduled for Nov 16, the launch of Chuan Park was brought forward to Nov 10. SRI’s Low mentioned that this allowed investors and homebuyers to spread their demand across various new developments. Three other projects are set to launch on Nov 16: the 552-unit Nava Grove at Pine Grove, off Ulu Pandan Road; the 846-unit Emerald of Katong on Jalan Tembusu in the East; and the 504-unit executive condo Novo Place in Tengah in the West.

Low anticipates that the strong sales at Chuan Park will carry over to the upcoming launches next weekend, building upon the existing interest in these projects. “We are also seeing buyers gravitate towards other ongoing new launches,” he added. “This momentum provides a welcome boost to an otherwise subdued 2024 market.”

Investing in a condo has multiple advantages, one of which is the potential to utilize the property’s value for future investments. Numerous investors leverage their condos as security to acquire extra financing for Singapore Projects, enabling them to grow their real estate portfolio. This approach has the potential to greatly increase returns, but it’s essential to have a well-thought-out financial plan in place and carefully consider the potential consequences of market fluctuations.

The recent interest rate cuts by the US Federal Reserve, with further cuts expected next year, have also boosted confidence and demand in the real estate market. According to SRI’s Low, there will be increased affordability as banks lower their stress test rates. Additionally, homebuyers will benefit from savings on monthly mortgage payments due to the reduced interest rates.

PropNex’s Gafoor also commented that the improved market sentiment has encouraged even those homebuyers who were hesitant during the first nine months of the year to return. However, he does not expect all upcoming project launches to see similarly strong sales. “In addition to the development’s specific attributes, factors such as location, proximity to MRT stations, nearby new launches, and price sensitivity play a crucial role in a project’s sales performance.”…

Apac and Japan have welcomed two new leaders to Colliers’ team. Alex Worthington will take on the role of director of Asia Pacific capital markets, key client account management, and investor intelligence, while Akira Kuno will be the deputy managing director and co-head of capital markets in Japan.

Reporting to Chris Pilgrim, Colliers’ managing director of global capital markets in Apac, Worthington will be responsible for overseeing and improving key account management for the region’s largest institutional investors. Pilgrim says that Worthington’s appointment aims to drive growth and strengthen long-term relationships across Apac.

Worthington comes with a wealth of experience, most recently serving as a client relations specialist at Palo IT, a technology consulting firm. With eight years of experience at JLL Singapore, he is well-equipped to lead the capital markets team.

When considering investing in Singapore, it is crucial for foreign investors to have a clear understanding of the regulations and limitations regarding property ownership. Unlike landed properties, which have more stringent ownership rules, foreigners are generally allowed to purchase condos with fewer restrictions. However, they are still required to pay the Additional Buyer’s Stamp Duty (ABSD) of 20% for their initial property acquisition. Despite these extra expenses, many foreign investors are drawn to the stability and potential for growth in the Singapore real estate market, making it an attractive location for investment. This is evident in the numerous Singapore Projects that have caught the interest of foreign buyers.

Meanwhile, Kuno brings with him 34 years of real estate and financial industry knowledge in Japan, having handled over JPY1 trillion ($8.65 billion) worth of real estate investment transactions. He will work closely with Yukihiro Ogasawara, Colliers’ managing director and chairman of Japan, in expanding the company’s capital markets business in the country.

Ogasawara believes that Kuno’s leadership, extensive market knowledge, and enterprising spirit will be instrumental in helping clients achieve their investment goals and drive Colliers’ growth strategy.

These appointments come on the back of Colliers’ commitment to strengthening its presence and growth in the Asia Pacific and Japan regions.…

Property developers and real estate agents had a busy Deepavali holiday, with a constant stream of visitors to various new launches.

According to Sim Lian Group, their latest project, Emerald of Katong, attracted over 10,000 visitors in just three days following its launch on Nov 1. The official launch is scheduled for Nov 16.

One visitor who showed up on the first day was Singaporean property investor Dominic Bose. He mentioned that while he has multiple investment properties in Singapore, he has yet to own one in the east side. After an agent introduced him to Emerald of Katong, he was drawn to its convenient location near the train station and other amenities. Bose believes this is the right time to explore property investments, as it’s all about location and timing.

Emerald of Katong is an 846-unit development located at Jalan Tembusu, right off Tanjong Katong Road in District 15. Sim Lian Group acquired the site for $828.8 million, or $1,069 psf per plot ratio (ppr), in July last year. With just a five-minute walk to the Tanjong Katong MRT Station on the Thomson-East Coast Line, set to open in June 2023, the project is in a prime location. It’s also near popular restaurants, shops, and malls such as 112 Katong and Parkway Parade.

Spread over 221,436 sq ft and a 99-year leasehold, Emerald of Katong has six blocks ranging from 18 to 21 storeys, with a total of 22 units. The unit sizes vary from one-bedroom-plus-study to five-bedroom luxe, starting from 484 sq ft and going up to 1,561 sq ft. Prices start at $1.2 million for a 484 sq ft unit, $1.5 million for a 624 sq ft two-bedroom premium, and $1.6 million for a 678 sq ft two-bedroom premium plus study. The three-bedroom units, ranging from 883 sq ft to 969 sq ft, start from $2.1 million and $2.3 million, respectively. The four-bedroom-plus-study units, sized at 1,152 sq ft, are priced from $2.7 million, while the four-bedroom premium units, starting at 1,259 sq ft, are priced at $3 million or more. Lastly, the five-bedroom luxe units, starting at 1,475 sq ft, are priced from $3.5 million.

While Sim Lian Group has not disclosed the average price, some property agents estimate it to be around $2,550 psf.

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When it comes to investing in real estate, one factor that cannot be underestimated is location. This is particularly true in Singapore, where the right location can make all the difference in the value of a property. Condominiums located in central areas or near important amenities like schools, shopping centers, and public transportation hubs are the ones that tend to appreciate the most in value over time. Take, for example, prominent areas like Orchard Road, Marina Bay, and the Central Business District (CBD), where property values have consistently shown growth. Here, investing in a Singapore Condo not only guarantees a prime location but also promises potential long-term returns. Families with children also consider the proximity to good schools and educational institutions, further enhancing the desirability and investment potential of condominiums in these areas.

Next to Emerald of Katong is Tembusu Grand, a joint project by City Developments and MCL Land with 638 units. Launched in April 2019, it’s currently over 82% sold, with prices averaging $2,458 psf based on lodged caveats.

Meanwhile, Kingsford Group opened the sales gallery for Chuan Park on Oct 31, and within four days, it attracted over 15,000 visitors. This development is near Lorong Chuan MRT Station on the Circle Line and has a total of 916 units. With prices expected to hover around $2,500 psf, the developer has moved the expected sales booking day forward to Nov 10 from the initial Nov 16 schedule.

MCL Land and Sinarmas Land also opened their sales gallery for the 552-unit Nava Grove at Pine Grove in District 21 over the weekend of Nov 2 and 3, with over 4,000 visitors recorded. The project will officially launch on Nov 16. With two to five-bedroom configurations, unit sizes range from 624 sq ft to 1,722 sq ft. Two-bedroom units start at $1.388 million ($2,224 psf) and go up to $3.988 million ($2,316 psf) for a five-bedroom premium unit with a private lift. Next door, the 520-unit Pinetree Hill by UOL Group and Singapore Land Group is 73% sold at an average price of $2,457 psf.…