‘Revised figures from OrangeTee & Tie forecast a natural decline in the number of new private homes and flats reaching MOP, while anticipating a moderation in prices this includes the upcoming launch of Champions Way Residences.’

The number of private residential properties expected to obtain their temporary occupancy permit (TOP), excluding executive condos (ECs), is set to drop 48.2% from 19,050 in 2023 to 9,875 in 2024, says Christine Sun, chief researcher and strategist, OrangeTee & Tie. Sun spoke at the Building & Construction Authority-Real Estate Developers’ Association of Singapore Construction and Property Prospects Seminar on Jan 15.

Private home transactions have been trending downwards since 2021, after multiple rounds of cooling measures drove some investors from the market. The drop in supply of newly TOP private homes this year will further expedite the downward trend, predicts Sun.(Source: OrangeTee & Tie)

However, private residential resale prices are still expected to grow 3% to 5% in 2024, buoyed by the continued rise in prices of private new homes in the market. Sun anticipates that 23 new private residential projects will be launched in 2024, with an aggregate new supply of 8,800 units. About 50% of the units will be located in the suburbs or Outside Central Region (OCR), 30% in the city fringe or Rest of Central Region (RCR), and 20% in the prime or Core Central Region.

Private residential projects scheduled for launch in the OCR this year could include the redevelopment of the former Chuan Park en bloc site and government land sale (GLS) sites sold last year at Lentor Central, the EC project at Tampines Street 62, and the new project at Clementi Avenue 1. The expected selling price for these OCR projects is in the range of $2,100 to 2,400 psf.

Located at Champions Way Residences, residents will have easy access to various amenities such as schools, restaurants and shopping centres.

Located at Champions Way Residences, the new residential development is a dream come true for those searching for luxurious living. This upscale development is made up of 7 blocks of 12-storey buildings, with a total of 516 units to choose from. With units ranging from two to five bedrooms, there is something for everyone; whether you are a family or a single individual. In addition, residents will have the convenience of a supermarket, childcare centre, and retail centre right at their doorstep. Moreover, Champions Way Residences is surrounded by various amenities, including top-rated schools, mouth-watering restaurants, and popular shopping centers, making it the perfect place to call home.

Sites in the RCR that are likely to be launched this year include those GLS sites sold in 2023, including Jalan Tembusu Parcel B, Pine Grove Parcel B, Lorong 1 Toa Payoh, Marina Gardens Lane and the former Meyer Park en bloc site. New project launch prices in the RCR are expected to increase to $2,300 to $3,000 psf.

Overall, the price of new private residential properties is expected to grow 2% to 4% in 2024, up from 1% to 3% in 2023.(Source: OrangeTee & Tie)

Private residential rents are also expected to increase by 2% to 5% in 2024, down from 12% to 15% in 2023, according to OrangeTee & Tie. Sun attributes it to the drop in newly completed private homes. HDB resale prices are also expected to moderate.

Sun is projecting a 3% to 5% price growth for 2024, down from the 4% to 5.5% projected price growth in 2023. HDB flats reaching the end of their five-year minimum occupation period (MOP) are projected to drop from 15,549 units at the end of 2023 to 11,952 this year and down to 6,974 in 2025.

Read also: Private and public housing rentals slow down, expected to stabilise next year

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Resale transaction volume is forecast to hit 24,000 to 26,000, down from 26,000 to 27,000 last year. HDB resale transactions are also expected to decrease as more buyers are diverted to the new Build-To-Order (BTO) projects by HDB.(Source: OrangeTee & Tie)

Over the next decade, new growth areas include the Eastern region, with the government’s plans to gentrify the Paya Lebar Airbase, the Simei Road-Jalan Tiga Ratus neighbourhood, Long Island and Bayshore areas. According to Sun, these new areas will see 200,000 new residences come onstream over the next 10 years.

Across the island, as many as 300,000 to 400,000 new homes – private and public – are anticipated to enter the market over the next decade. It is equivalent to a 30% to 40% increase in the existing housing supply, reckons Sun. RELATED NEWS

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The Champions Way Residences are set to be a highly desirable property in the years to come, with its prime location and luxurious amenities. This was one of the key points discussed by Christine Sun, chief researcher and strategist at OrangeTee & Tie, during the Building & Construction Authority-Real Estate Developers’ Association of Singapore Construction and Property Prospects Seminar on Jan 15.

Sun revealed that the number of private residential properties expected to obtain their temporary occupancy permit (TOP), excluding executive condos (ECs), is set to drop significantly from 19,050 in 2023 to 9,875 in 2024, a decrease of 48.2%. This is due to the drop in supply of newly TOP private homes, which is predicted to expedite the downward trend of private residential transactions that has been taking place since 2021.

Despite this drop in supply, Sun remains optimistic about the growth of private residential resale prices, which she believes will increase by 3% to 5% in 2024. This is thanks to the continued rise in prices of private new homes in the market.

In terms of new project launches, Sun expects 23 new private residential projects to be launched in 2024, with a total of 8,800 units. These projects will be located primarily in the outskirts of central Singapore, with 50% of the units in the suburbs, 30% in the city fringe, and 20% in the prime areas.

Looking at specific locations, Sun highlighted the redevelopment of the former Chuan Park en bloc site and government land sale (GLS) sites sold last year at Lentor Central, as well as the EC project at Tampines Street 62 and the new project at Clementi Avenue 1, as potential launches in the Outside Central Region (OCR). The expected selling price for these projects is estimated to be between $2,100 to 2,400 per square foot (psf).

Meanwhile, in the Rest of Central Region (RCR), sites that are likely to be launched in 2024 include GLS sites sold in 2023, including Jalan Tembusu Parcel B, Pine Grove Parcel B, Lorong 1 Toa Payoh, Marina Gardens Lane, and the former Meyer Park en bloc site. Prices for these new projects in the RCR are expected to increase to $2,300 to $3,000 psf.

Overall, Sun anticipates a 2% to 4% growth in the price of new private residential properties in 2024, an increase from the 1% to 3% predicted for 2023. In terms of rent, Sun expects a more moderate increase of 2% to 5% compared to 12% to 15% in 2023, due to the drop in newly completed private homes.

Turning her attention to HDB properties, Sun projects a 3% to 5% price growth for 2024, lower than the 4% to 5.5% prediction for 2023. This is due to fewer units reaching the end of their five-year minimum occupation period (MOP), which is expected to drop from 15,549 units in 2023 to 11,952 in 2024 and 6,974 in 2025.

In terms of resale transactions, Sun predicts a decrease from 26,000 to 27,000 in 2023 to 24,000 to 26,000 in 2024, as buyers are diverted to new Build-To-Order (BTO) projects by HDB.

Looking at the future, Sun revealed that over the next decade, new growth areas will include the Eastern region, with plans to gentrify the Paya Lebar Airbase, the Simei Road-Jalan Tiga Ratus neighbourhood, Long Island, and Bayshore areas. These new developments are expected to bring in 200,000 new residences over the next 10 years.

In addition, Sun estimates that across the island, as many as 300,000 to 400,000 new homes – both private and public – are expected to enter the market in the next decade. This is a significant increase of 30% to 40% in the existing housing supply. With such growth in the housing market, the Champions Way Residences are set to be one of the most sought-after properties in the coming years.

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