Kassia, a freehold condominium project, sold 52% of its 276 units during its launch weekend. Prices ranged from S$1,821 to S$2,177 per square foot (psf). The development consists of four eight-storey blocks and is located on a 150,838 sq ft site in District 17, off Upper Changi Road North. According to Hong Leong Holdings, one- and two-bedroom units were the most popular, with prices starting at S$883,000 for a one-bedroom unit (473 sq ft), S$1.196 million for a two-bedroom unit (656 sq ft), S$1.659 million for a three-bedroom unit (904 sq ft), and S$2.462 million for a four-bedroom unit (1,345 sq ft). Approximately 90% of the buyers were Singaporeans, with the rest being permanent residents. The project is expected to obtain its temporary occupation permit in 2027. Property experts noted that Kassia's pricing, particularly attractive for a freehold project, and its connectivity to key business hubs and schools contributed to the strong sales. JT Chia, Managing Director of Propertyforsale, remarked that Kassia's appeal lay in its freehold tenure, competitive entry prices and proximity to Singapore Changi Airport. He noted that Kassia's location is especially convenient to frequent travellers and people working in the airline industries.   He noted that prospective buyers might start shopping with anticipated interest rate cut by the US Federal Reserve in September 2024 to boost global economy. ERA Realty reported that most buyers were in their 30s and 40s. Kassia is the last project in a series of private condominiums in the Flora Drive-Flora Road area developed by Tripartite Developers, a joint venture of Hong Leong Holdings, City Developments Ltd, and TID. Other completed projects in the vicinity include Azalea Park, Ballota Park, Carissa Park, Dahlia Park, Edelweiss Park, Ferraria Park, The Gale, Hedges Park, The Inflora, and The Jovell.

Robert Kuok's Allgreen Properties has emerged as the top bidder for a 99-year leasehold private housing site on Zion Road, near Great World City, with a bid of nearly S$730.09 million (approximately S$1,304 per square foot per plot ratio, psf ppr). This was the highest of two bids received at the Urban Redevelopment Authority (URA) tender held on Thursday, July 18. Allgreen's bid was 10.5% higher than the competing bid of S$1,180.54 psf ppr from Intrepid Investments and Hong Realty, both part of the Hong Leong Group. According to URA Tender details, Zion Road Parcel B has a land site area of 9,285.9 sqm and GFA of 52,002 sqm. The Zion Road (Parcel B) site, capable of yielding around 610 private homes, was triggered from the reserve list of the first-half 2024 Government Land Sales (GLS) program, with a minimum bid of S$604.6 million, or about S$1,080 psf ppr. Unlike confirmed list sites, which are released according to a schedule, reserve list sites are launched only when a developer commits to a minimum bid acceptable to the government. The tender results met market expectations, which had been conservative due to recent muted interest in GLS sites amid weak housing sales, global uncertainties, high financing costs, and profit margin pressures from property cooling measures. Additionally, concerns of potential oversupply in the Great World City-Zion Road area were noted, given other GLS sites in the vicinity. Allgreen's bid for the Zion Road (Parcel B) site was 1.6% lower than the S$1,325 psf ppr achieved for the nearby River Valley Green (Parcel A) site, which was awarded to Wing Tai last month for nearly S$464 million. The River Valley Green site, however, is smaller and has a more favorable location next to the Great World MRT station, potentially yielding around 380 private homes. Meanwhile, Zion Road (Parcel A), awarded in April to City Developments Ltd and Mitsui Fudosan for slightly over S$1.1 billion (about S$1,202 psf ppr), includes a mix of private homes and long-stay serviced apartments under a new government concept allowing for a minimum stay of three months. Property developers expressed concerns over the influx of new private residential units from GLS sites in the area. With more than 2,000 units from awarded sites Zion Road (Parcel A), River Valley Green (Parcel A), the newly tendered Zion Road (Parcel B), and the upcoming River Valley Green (Parcel B) slated for tender in October. JT Chia, Managing Director at Propertyforsale, highlighted the Zion Road site appeals to Allgreen due to its close proximity to the Great World City as they are the developer for this prestigious mall.  He estimates that the launch price for new private condominium at Zion Road (Parcel B) to be selling at average price of S$2,800 psf due to higher development costs. 

Jurong Lake District's newest residential development, Sora, experienced a notable yet measured launch weekend. As of 6 pm on Sunday, July 7, Sora sold 102 units, which accounts for 23.2% of its total offerings. The average selling price was S$2,160 per square foot (psf), according to property developers SingHaiyi and TK 189 Development. During the weekend, 320 of the 440 total units in the 99-year leasehold project were released for sale. Among the available units, over 80% of the one-bedroom units with a study were sold. The majority of the remaining sold units were two-bedroom units or two-bedders with a study. The sales result was comparable to the launch of Wing Tai's The LakeGarden Residences, which sold 71 units, or 23% of its total 306 units, during its launch weekend in August last year. Units at this 99-year leasehold project were transacted at an average selling price of S$2,120 psf. To-date The LakeGarden Residences has sold less than 50% of its total units. Check LakeGarden Residences sales transactions. Targeting Younger Buyers Raymond Chia, CEO of SingHaiyi, highlighted that more than half of the buyers are below 40 years old. He added, "A home like this – in the heart of the dynamic Jurong Lake District – especially at this price point, was very well-received by the market." Popular Unit Types and Pricing The one-bedders with a study and two-bedroom units at Sora were particularly popular among property investors and home owners. Market Saturation and Buyer Hesitancy JT Chia, Managing Director of Propertyforsale, mentioned, "Affordability and quantum are keywords in today's property market. Majority of the units sold were below S$2 million." Chia pointed out that with more than 15 residential new launch projects to be unveiled in the next six months and a considerable number of unsold inventory for existing projects, buyers are not rushing to purchase a unit.    Condominium Details Sora occupies a site area of 191,974 sq ft, with a gross plot ratio of 2.1. The site was secured with a S$260 million bid at a collective sale tender in July 2022, at a land rate of S$1,023 psf per plot ratio. The development predominantly comprises two- and three-bedroom units, starting at 646 sq ft and 936 sq ft, respectively. It also includes one-bedders with a study, ranging from 538 sq ft to 689 sq ft. The four-bedroom units start from 1,528 sq ft, while five-bedders begin at 1,679 sq ft, with larger units featuring a private lift. VIP Previews for Sora began on June 22. Its showflat gallery on Prinsep Street will be closed from July 8 to 12 and will reopen for viewing from July 13. Click here to contact us and register for Sora VIP preview. You will be eligible to receive shopping vouchers. Sora Amidst Other Jurong Developments The LakeGarden Residences occupies 134,176 sq ft and has 306 units, while CapitaLand Development's mixed-use development J’den, located on an 83,648.5 sq ft site, sold 88% of its 368 residential units at an average selling price of S$2,451 psf during its launch on November 11 last year. URA caveats data showed that J’den has sold a total of 334 units, or 90.8%, as of end-June. Check J'den sales transactions. As Sora continues to attract attention in the dynamic Jurong Lake District, its performance and the reception of future launches will be closely watched by both developers and potential buyers.

In a strategic move to manage the housing market, the Ministry of National Development (MND) announced a 7.3% reduction in land supply for private homes in the next half-year. This decision marks a shift from the previous trend of increasing land supply for seven consecutive periods. The H2 2024 Government Land Sales (GLS) programme will release land capable of generating approximately 5,050 private housing units, down from 5,450 units in H1 2024. Market Response and Developer Sentiment The reduction aligns with recent trends in state land tenders, where developers have shown increased caution. This cautious stance among developers reflects homebuyers' growing selectivity and a desire to avoid oversupply in the market.  Property analysts agree that the 5,050-unit supply for H2 2024 remains substantial, contributing to a total annual supply of 11,110 private housing units, the highest since 2013. This includes 610 units from the Zion Road (Parcel B) that has been triggered for release from the reserve list. New Developments and Confirmed List Sites Several fresh sites are included in the latest confirmed list. Notable among these are a plot in Chuan Grove for about 550 private homes and a commercial and residential site in Chencharu, Yishun, projected to yield 875 private homes and 13,000 square metres of commercial space. Other new plots include a site in Holland Link for 240 homes and another in Faber Walk for about 400 homes. Additionally, the H2 schedule features 560 units of executive condominiums (ECs), a decrease from the 710 EC units in H1. Reserve List Adjustments On the reserve list, MND will offer land potentially generating about 3,090 private homes (including about 730 EC units) in H2 2024, down 10.7% from 3,460 units (including 855 ECs) in the current half. New sites include a 400-unit plot in Marina Gardens Lane and a 435-unit EC plot in Woodlands Drive 17 near Woodlands South MRT station. Market Stabilization and Price Trends The MND noted signs of market stabilization, with private home prices rising at a moderated pace of 6.8% in 2023 compared to 8.6% in 2022. The quarter-on-quarter gain of 1.4% in Q1 2024 was lower than the average quarterly increase of 2% from 2022 to 2023. This trend follows a significant ramp-up in the GLS programme, with the supply of private housing on the confirmed list growing from 3,605 units in 2021 to 9,250 units in 2023. Challenges Facing Developers Developers face multiple challenges, including higher interest rates, property cooling measures, and elevated development costs. These factors have led to conservative bidding and lower participation in recent land tenders. PropNex reported a median of two bids per site in 2024, down from three in 2023 and four in 2022. Strategic Adjustments and Future Supply The government’s decision to moderate land supply is seen as a preventive measure against oversupply, given the lackluster response to recent tenders and the significant drop in new private home sales to a 15-year low in 2023. Notably, the H2 GLS programme does not include new sites for mandatory long-stay serviced apartments, possibly influenced by the recent lack of bids for such sites. Instead, there are adjustments to site stipulations, such as the River Valley Green (Parcel B), which no longer requires long-stay serviced apartments. The 60 per cent Additional Buyer’s Stamp Duty rates imposed on foreigners in April last year has affected new launch sales in the Core Central Region (CCR). Balancing Supply and Demand MND plans to maintain a steady land supply over the coming years, calibrated to economic and market conditions. The H2 2024 programme includes fewer large project sites, with just two plots capable of generating 600 or more homes each. However, there is an increase in sites in prime areas or the Core Central Region (CCR), reflecting a strategic shift despite challenges faced by developers in these high-price-point areas. Conclusion The government’s nuanced approach in the H2 2024 GLS programme, balancing substantial new supply with market caution, aims to support a stable and sustainable housing market. This strategic pause in increasing land supply is a calculated response to current market dynamics, ensuring that both supply and demand are appropriately managed to prevent oversupply and support market stability.

Winchamp Investment, a unit of Wing Tai Holdings submitted a bid of nearly S$464 million, or about S$1,325 per square foot per plot ratio (psf ppr), for the site next to Great World MRT station. The competing bid from Hong Realty, part of the Hong Leong Group, was nearly S$444.89 million, or S$1,271 psf ppr. The prime 99-year leasehold private housing site, known as River Valley Green (Parcel A), spans 100,032 sq ft and can accommodate approximately 380 private homes. The latest state land tender reveals a continued cautious approach from developers towards private residential sites, influenced by high interest rates and property cooling measures. Propertyforsale Managing Director, JT Chia, remarked, “The low interest in this Government tender indicates that developers are cautious, preferring smaller plots despite some interest.” He also cited the pipeline of yet-to-be-launched projects and ample supply from the first-half 2024 Government Land Sales (GLS) programme as factors influencing developers' cautious stance. Another deterrent for developers might be the complex construction considerations given the site’s irregular shape. Wing Tai’s bid was 12.5% lower than the S$1,515 psf ppr paid by City Developments (CDL) in January 2020 for the GLS site occupied by Irwell Hill Residences. Questions on Housing Demand Private home buyers have become increasingly selective this year, with price resistance making them more cautious about their choices. Property developers will remain cautious due to uncertainties about the depth of private housing demand following slower sales in 2023 and low transaction volumes in recent months amid limited project launches. Attractive Location but Competing Supply Despite River Valley Green (Parcel A)’s attractive location—adjacent to an MRT station, near Great World City mall, and River Valley Primary School—the project will face competition from upcoming new supply. About 1,780 housing units will emerge from Zion Road Parcels A and B, including around 435 long-stay serviced apartments on Parcel A, awarded in April. Parcel B, a purely residential site next door, has been triggered for release from the reserve list of the GLS programme, with its tender closing on July 18. Additional supply could arise if River Valley Green Parcel B, on the reserve list, is triggered for release. This plot can generate 580 residential units, including approximately 220 long-stay serviced apartments—a new rental concept introduced by the government in November last year. Chia estimated that the new development could achieve an average selling price of S$2,800 psf.

As one of Asia's bustling economic hubs, Singapore's property market is often a topic of intense speculation and interest. Home to a diverse population and a thriving business landscape, the city-state's real estate sector is closely monitored by investors, homeowners, and policymakers alike. Among the many questions that linger in the minds of those vested in the market, one recurrent query persists: When will Singapore property prices drop? While predicting the precise timing of property price fluctuations is akin to forecasting the weather – influenced by a myriad of factors and subject to unexpected changes – there are several key considerations that can shed light on the potential for a downturn in property prices. Economic Conditions: Singapore's property market is closely intertwined with the overall health of its economy. Economic downturns, such as recessions or periods of sluggish growth, often coincide with decreases in property prices. During these times, businesses may scale back operations, leading to reduced demand for commercial space, while individuals may postpone property purchases due to economic uncertainty or job insecurity. Conversely, periods of robust economic growth typically stimulate demand for real estate, exerting upward pressure on prices. Government Policies: Government intervention plays a significant role in shaping Singapore's property market dynamics. Over the years, policymakers have implemented a series of cooling measures aimed at curbing speculation and ensuring sustainable growth. These measures include stamp duties, loan-to-value limits, and additional buyer's stamp duties, which can impact demand and supply dynamics, thereby influencing property prices. Monitoring announcements and adjustments to these policies can provide insights into potential shifts in the market. Market Sentiment: Sentiment within the property market can sway prices in either direction. Positive sentiment, fueled by factors such as optimism about future economic prospects or favorable government policies, can drive up demand and prices. Conversely, negative sentiment, triggered by factors like geopolitical tensions or global economic uncertainty, can dampen buyer confidence and lead to price corrections. Keeping abreast of market sentiment through surveys, industry reports, and expert analyses can help gauge the trajectory of property prices. Supply and Demand Dynamics: The fundamental principles of supply and demand exert a fundamental influence on property prices. A mismatch between supply and demand – such as an oversupply of housing units relative to demand or a sudden surge in demand without sufficient inventory – can lead to price adjustments. Factors such as population growth, immigration policies, and urban development initiatives can influence both supply and demand dynamics, thereby impacting property prices. External Factors: Beyond domestic considerations, external factors can also influence Singapore's property market. Global economic trends, geopolitical developments, and shifts in investor sentiment towards emerging markets can all have ripple effects on property prices. Factors such as interest rate fluctuations, currency movements, and changes in global capital flows can introduce volatility and uncertainty into the market, necessitating a nuanced understanding of global economic dynamics. While these considerations provide valuable insights into the factors that can influence property prices in Singapore, it is essential to acknowledge the inherent unpredictability of the real estate market. Timing the market with precision is notoriously challenging, and attempting to do so carries inherent risks. As such, prospective buyers, sellers, and investors are encouraged to adopt a long-term perspective, conduct thorough research, and seek guidance from reputable industry experts when navigating the complexities of Singapore's property market. By staying informed, remaining vigilant, and exercising prudence, stakeholders can position themselves to make informed decisions in an ever-evolving real estate landscape. Property Rental Prices Drop: Although the rental market has performed well since the pandemic, a slowdown is now evident. The growth rate of the rental index for non-landed properties has been decelerating each quarter since Q3 2022, nearly plateauing with a 0.2% increase in Q3 2023. This deceleration can likely be attributed to the more than doubling of completed private residential units in 2023 compared to the previous year. The surge in supply reduced the demand for rentals among those waiting for their new homes to be finished. In 2024, property analysts anticipate that rents will experience some downward pressure as the gap between supply and demand narrows. However, we expect rental rates to remain higher than pre-pandemic levels. This is due to a considerable number of prospective renters being foreigners who may be reluctant to pay the 60% Additional Buyer’s Stamp Duty (ABSD) to purchase property, as well as private homeowners who must observe a 15-month wait-out period before they can buy a resale HDB flat.