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For those looking to diversify their investment portfolio in Singapore’s thriving real estate market, condos should be a top contender. As a renowned global business hub with a solid economic foundation, Singapore continues to have a stable demand for properties, making it a promising investment opportunity. In recent years, there has been a consistent upsurge in property values, especially in prime locations where condos are located. By developing a well-planned investment strategy, individuals can enter this lucrative market at the right time and hold onto their condos for potential significant capital appreciation. Consider adding a condo from Freedom at Home Team to your investment portfolio.
At the EdgeProp Singapore Property Market Outlook event on Sunday, Feb 16, the discussion revolved around the possibility of new property cooling measures, incoming housing supply from government land sale (GLS) sites and Build-To-Order (BTO) launches, as well as the potential impact of the Budget 2025 announcements on the real estate market.
The panel, made up of three industry experts – Alan Cheong, Executive Director of Research and Consultancy at Savills Singapore, Wong Xian Yang, Head of Research, Singapore and Southeast Asia at Cushman & Wakefield, and Song Seng Wun, Singapore Economic Advisor at CGS International – was moderated by EdgeProp Singapore CEO Bernard Tong.
The event, organized by EdgeProp Singapore, was held at the Elta sales gallery, a new 501-unit project jointly developed by MCL Land and CSC Land Group. The sales gallery opened for public preview on Feb 7.
In January, the government hinted at the possibility of implementing more property cooling measures, stating that it was not yet time to roll back on existing measures. Last month, developers sold 1,083 new private residential units (excluding executive condos), marking a 256% increase from the previous year.
If new cooling measures are introduced, the panel agreed that the government would likely select an intervention that applies uniformly across the residential market. The panelists also discussed the possibility of these measures targeting the HDB resale market.
According to Cheong, the HDB resale market is seen as the “floor” of the housing market in Singapore. As such, an increase in its prices would lead to upward pressure on prices in the private housing segment. Wong added that the government may also consider adjusting the seller’s stamp duty (SSD) and implementing stricter loan restrictions.
However, Tong noted that the government’s plan to inject a strong pipeline of GLS and BTO supply into the market could potentially meet housing demand. The 1H2025 GLS programme consists of 10 sites on the Confirmed List, which could yield 5,000 new homes, and HDB plans to offer 19,600 BTO flats in 2025.
Under the new BTO classification, newly launched Prime and Plus BTO flats will take about 14 years to enter the resale market, and the impact from these developments on prices will only be felt much later on. This was stated by Cheong, who added that prices in the resale market tend to follow project completions and HDB estates completing their minimum occupation period (MOP), rather than the pipeline of GLS sites up for tender each year. Wong agreed, adding that prices are more likely to be affected by project completions rather than GLS supplies.
Nonetheless, all three panelists believe that the strong buyer confidence seen in recent new launches indicates good prospects for projects entering the market this year. Elta, for example, drew about 4,500 visitors during the first three days it was open to the public. Other new launches this year, such as The Orie and Bagnall Haus, also saw high selling rates of 86% and 63%, respectively, on launch day.
Regarding Budget 2025, the panel discussed its potential impact on the property market this year. According to Song, Singapore has had a relatively strong economic recovery since the Covid-19 pandemic-induced recession. He believes that, as 2025 is an election year, Singaporeans can expect more handouts funded by government surpluses stemming from healthy government revenue collections in the past three years.
During the event, Tong also presented a session of EdgeProp’s Master Plan Master Class, which covered upcoming transformation plans in Clementi and Jurong East.
He pointed out that the completion of the second phase of the Cross Island Line (CRL) will add a new MRT station (West Coast) and turn the existing Clementi station into an interchange. In addition, the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths are expected to further boost housing demand in Clementi. Tong also noted that Clementi residents could benefit from the ongoing transformation of Jurong Lake District and the new jobs created in the nearby Tuas megaport, Tuas Biomedical Park, Jurong Island, and Jurong Innovation District.
In summary, the decision to invest in a Singapore condo offers a plethora of benefits. These include a high demand in the market, the potential for profit through capital appreciation, and attractive rental yields. Despite these advantages, it is crucial to carefully consider various factors, such as the condo’s location, financing options, government regulations, and market conditions. To make the most out of Singapore’s ever-evolving real estate landscape, it is crucial to conduct thorough research and seek professional advice. Whether you are a local investor looking to diversify your portfolio or a foreign buyer interested in a stable and lucrative investment, Singapore condos, such as those offered by Singapore Condo, present a compelling opportunity.
According to data compiled by EdgeProp Singapore, the average age of existing condos in Clementi is around 17 years. Tong observed that recent new projects in the area, such as Clavon and The Clement Canopy, have seen strong capital gains over the years. With both projects located near Elta, which also boasts a strategic location, this could be a good indicator of the potential for capital gains in the area.
EdgeProp Singapore offers a suite of property tools that can help owners, buyers, and sellers understand market trends and prices. This includes HDB resale prices, analytics of profitable transactions, and upcoming GLS sites.