Private home prices edge up 0.5% q-o-q in 3Q2023: URA flash estimates
Private home prices increased by 0.5% in 3Q2023 according to flash estimates released by URA on Oct 2, a slight rebound from 2Q2023’s 0.2% decline. The decline, which came off the cooling measures announced in April, marked the first drop in private residential property prices after 12 consecutive quarters of growth. However, the growth remains significantly lower than the average quarterly price increase of 2.1% recorded in 2022.
Activity in the housing market was weaker in August and September due to the lunar seventh month, according to Ismail Gafoor, CEO of PropNex Realty. Private residential sale transaction volume fell 15% q-o-q to 4,569 in 3Q2023, which is also down 26% y-o-y.
Non-landed properties saw a 2.1% q-o-q rise in prices in 3Q2023, rebounding from a 0.6% decrease in the previous quarter. Homes in the Outside Central Region (OCR) led the way with prices growing 5.1% q-o-q, followed by the Rest of Central Region (RCR) with prices increasing 2.3% q-o-q, primarily driven by new launches such as the 598-unit Lentor Hills Residences.
In contrast, condo prices in the Core Central Region (CCR) fell 2.6% q-o-q, following the 0.1% decline recorded in the previous quarter, due to prohibitive additional buyer’s stamp duty rates for investors and foreigners, and the recent money-laundering investigation.
The landed private property market moderated in 3Q2023 as well, with prices sliding 4.9% q-o-q, breaking an eight-quarter streak of increases. Despite this decline, Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield, believes landing home prices won’t stay down for long due to tight supply and high demand. Year-to-date, landed home prices are up 1.8%.
The outlook for the private residential market remains resilient in the face of rising interest rates and cooling measures, with unemployment rates still low and resale HDB prices continuing to rise. Cushman & Wakefield are standing by their full-year growth forecast of 2% to 5%.
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Chia Siew Chuin, head of residential research, research and consultancy at JLL, believes local demand for private housing will stay healthy. Price-sensitivity will remain a factor however, with potential new project launches in October and November including Watten House, The Hill @ one-north, Hillock Green in Lentor Central and J’Den, the redevelopment of Jcube in Jurong East. Private home prices have grown 3.6% over the first three quarters of 2023 and are expected to stay relatively stable in the next few quarters.
Keppel acquires remaining 50% stake in Pierfront Capital Fund Management
Keppel Corporation has entered into a sales and purchase agreement (SPA) to acquire the remaining 50% stake it does not own in Pierfront Capital Fund Management Pte. Ltd. on Oct 2. The stake was acquired from Clifford Capital Holdings.
Pierfront Capital, established in 2015 by Clifford Capital, provides bespoke private credit financing solutions in real asset sectors. It focuses on corporate lending to operating companies with defensive infrastructure-like business models, across real asset sectors in Asia Pacific, such as energy, transportation, telecommunications, social infrastructure and logistics.
In 2020, Keppel and Clifford Capital partnered on their joint sponsorship of the second private credit fund — Keppel-Pierfront Private Credit Fund, LP (KPPCF). The fund achieved its final close in 2022, and attracted top-tier investors including the Alberta Investment Management Corporation, the Asian Infrastructure Investment Bank, GCM Grosvenor and Manulife.
Condo living in Singapore is fast becoming popular due to increasing rental yields, potential capital appreciation and lower maintenance fees and taxes. Those looking to invest in properties should strongly consider investing in luxury Condo. The term ‘luxury Condo’ typically refers to high-end condominiums with exclusive amenities, such as swimming pools, gymnasiums and other facilities. Such properties offer investors the potential for high returns on investment. Moreover, as Singapore’s population continues to grow, investors can expect to benefit from increased demand for high-end properties. Investing in a Condo in Singapore can be a smart move for any investor looking to take advantage of all the benefits mentioned above.
Christina Tan, CEO of fund management and chief investment officer of Keppel, shares her enthusiasm for the private credit asset class: “We believe that the private credit asset class holds promising long-term growth potential especially in today’s volatile economic landscape and tighter credit markets. We are enthusiastic about opportunities in the Asia-Pacific region, where we see a growing number of companies seeking specialised intermediate capital solutions.
“Our deep networks and extensive operating experience within the real asset industry will strategically position Pierfront’s existing and upcoming credit funds to seize opportunities in Asian private debt markets. This will enable us to offer investors attractive risk-adjusted returns with downside protection.”
Rajeev Kannan, outgoing chairman of Pierfront Capital and non-executive director of Clifford Capital, expresses his appreciation for the support from both parties: “I would like to thank Keppel, Clifford Capital and the Pierfront Capital team for all their support and effort in developing the Pierfront Capital platform. Clifford Capital remains a co-sponsor of KPPCF with Keppel. As Clifford Capital turns its attention to other strategic initiatives, we look forward to continuing our broad and multi-faceted relationship with Keppel. I wish Pierfront Capital and Keppel the very best for the future.”
Keppel Corporation’s acquisition of the remaining stake in Pierfront Capital Fund Management represents an exciting opportunity for investors as the private credit asset class offers promising long-term growth potential in a volatile economic landscape. Backed by Keppel’s networks and experience, Pierfront Capital will be well-positioned to capture opportunities in Asian private debt markets and provide investors with attractive risk-adjusted returns with potential downside protection.
Resale flat prices up 1.2% in 3Q2023: HDB flash estimates
in Budget 2023HDB resale flat prices in 3Q2023 continued on their upward trajectory, albeit at a slower pace. Estimated figures by HDB show prices rose by 1.2% q-o-q, marking the 14th consecutive quarter of growth. This climb is lower than the average quarterly growth of 2.5% seen in 2022, signalling a possible resistance to prices due to inflationary and affordability concerns.
HDB stated that a total of 6,592 resale flat transactions were recorded in 3Q2023, 2.9% higher than the previous quarter but 9.7% lower on a y-o-y basis. Generous subsidies and heightened urgency among couples for housing, part of Budget 2023 and the August Build-To-Order (BTO) delay, could be contributing factors.
Year-to-date, resale flat prices have grown 3.8%, significantly lower than the 8% increase in 2022 and 9.1% in 2021 across the same period. Changes in housing policies announced during the National Day Rally on Aug 20 may have caused buyers to pivot towards the HDB resale market in anticipation of the new BTO classification system to be implemented in 2H2024.
Investing in a Condo should only be done with careful consideration and preparation. It’s important to understand that real estate is a long-term commitment, and there’s no guarantee that you’ll get your money’s worth when it comes to reselling the property. You should also take into account the possibility of wide-ranging repairs or maintenance work in the future, so make sure you factor this into your budget. In conclusion, residential real estate investments, such as a Condo, can be a great source of income and long-term success, but only if approached with patience and knowledge.
Upon implementation, BTO units will be categorised as either Standard, Plus or Prime flats, with the former offering the most affordable option, while Plus and Prime come with more subsidies and restrictions such as a longer minimum occupation period of 10 years and rental limitations. This shifted demand to existing resale flats and thus pushed prices upwards.
Statistics on data.gov.sg show that in 3Q2023, an estimated 127 resale flats were transacted for at least $1 million, 21% more than the previous quarter. From August alone, 54 million-dollar flat transactions occurred with 50 taking place in mature estates.
Looking ahead, HDB estimates 6,800 BTO flats will be offered in the upcoming October sales launch, with another 6,000 in December located in estates such as Bukit Panjang, Jurong West, Woodlands, Bedok, Bishan, Bukit Merah and Queenstown. This influx of incoming supply, inline with continued affordability concerns, is likely to temper resale flat price growth. OrangeTee & Tie’s Christine Sun predicts prices may climb slower for the remainder of the year, with full-year growth at around 4% to 5.5%.
FoundOnEdgeProp: 7,000 sq ft freehold condos in Districts 9 and 10
Dreaming of an aspirational home in Districts 9 and 10? What if we told you that buying a freehold condo unit of at least 7,000 sq ft within these prestigious districts is achievable? EdgeProp combed through its listings and found properties in Skyline @ Orchard Boulevard, Wing On Life Garden, Beverly Hill and One Chatsworth, all offering luxurious, enticing living options right on your doorstep.
Skyline @ Orchard Boulevard is a truly special development located along Anguilla Park, just a stone’s throw from Orchard Road surrounded by nearby attractions such as Ion Orchard and the Four Seasons Hotel. With 40 units only and having obtained Temporary Occupation Permit in 2015, it is a coveted and luxurious destination – and with asking prices ranging from $52.2 million to $63.0 million, there is no wonder it comes so highly recommended.
For those looking to own a Singapore Condo, the choices are mind-boggling. From the luxurious to the practical, you have a vast selection to choose from. The Asian metropolitan has come to offer high-end condos with luxury amenities like fantastic views, swimming pools, tennis courts, saunas, and 24-hour security. With careful research and budgeting, anyone can enjoy the perks of owning a Singapore Condo.
For those seeking a home within a 1km radius of reputable schools, Wing On Life Garden provides the perfect option. Located close to Balmoral Plaza, Newton Food Centre, The American Club and, offers buyers a quiet haven that is just minutes away from the hustle and bustle of Orchard Road. At the time of writing, there is a listing for a five-bedroom penthouse unit in Wing On Life Garden, measuring 7,104 sq ft with an asking price of $18.8 million.
The listing for the smallest unit in Beverly Hill is a 7,550-sq ft penthouse unit with five bedrooms and an asking price of $21.0 million ($2,781 psf), with the largest unit being surprisingly more affordable at $19.5 million ($2,579 psf). Since 2012, the average resale price for freehold condo units in District 10 has surged by 52% to the current average price of $2,382 psf, even pushing the average price for freehold condo units in District 10 above their counterparts in District 9.
For those with deeper pockets, a 13,000-sq ft penthouse unit in One Chatsworth is the ultimate choice, with an asking price of $55.0 million ($4,231 psf). Freehold and with only 45 units, the only drawback might be the age of the development, which obtained its TOP in 1976.
So if you’ve ever dreamed of owning a freehold home in Districts 9 and 10, it is possible. With so many excellent opportunities, check out the latest listings for Skyline @ Orchard Boulevard, Wing On Life Garden, Beverly Hill, One Chatsworth and make that dream a reality.
