3 to 9 October 2023
Singapore saw private home prices marginally increase by 0.5% in Q3 2023, following a 0.2% decline in Q2 2023. Meanwhile, HDB resale flat prices rose 1.2% in Q3 2023, marking its 14th consecutive quarterly increase.
1. Private home prices remained “broadly flat” in Q3 2023
Singapore saw private home prices marginally increase by 0.5% in Q3 2023, following a 0.2% decline in Q2 2023, according to Urban Redevelopment Authority (URA) flash estimates.
URA noted that the hike was significantly lower compared to 2022’s average quarterly increase of 2.1%.
Moreover, sales dropped by around 15% on a quarter-on-quarter (QoQ) basis and by around 26% on a year-on-year (YoY) basis in Q3 2023.
Prices of non-landed private homes specifically climbed 2.1% during Q3 2023, reversing the 0.6% decline in Q2 2023.
URA attributed the increase to higher prices in the Outside Central Region (OCR) and the Rest of Central Region (RCR), where it rose by 5.1% and 2.3%, respectively.
Prices in the Core Central Region (CCR) dropped 2.6% in Q3 2023, continuing the 0.1% decline seen in the previous quarter.
Meanwhile, landed home prices fell 4.9% in Q3 2023, a reversal from the 1.1% increase in Q2 2023.
2. HDB resale prices climbed at a slower pace QoQ in Q3 2023
Resale prices of HDB flats rose 1.2% in Q3 2023, marking its 14th consecutive quarterly increase, as per flash estimates by HDB.
However, the hike was slower compared to the 1.5% increase registered in Q2 2023.
OrangeTee attributed the slower pace of growth to “some price resistance” setting in amid inflationary and affordability concerns.
“Home buyers’ affordability has been hit by rate hikes as interest rates have stayed higher and longer than anticipated,” it said.
In fact, the price hike was also below the 2.5% average quarterly growth seen in 2022.
OrangeTee said the HDB resale market may not experience a repeat of the rapid price growth seen during the COVID-19 pandemic, when prices rose 12.7% in 2021 and 10.4% in 2022.
“Prices may climb slower for the rest of the year, with the full-year growth at around 4% to 5.5%,” it added.
Meanwhile, HDB registered 6,592 resale transactions in Q3 2023 (up to 28 September 2023), up 2.9% from the 6,409 posted in the previous quarter.
However, it was 9.7% lower compared to the 7,298 cases recorded in Q3 2022, making it the lowest third volume over the last three years.
3. Five BTO projects delayed by Greatearth liquidation finally completed
HDB revealed that all five BTO projects delayed by the withdrawal of their previous contractors, Greatearth Construction and Greatearth Corporation, have finally been completed, reported CNA.
These projects are West Coast Parkview, Marsiling Grove, Sky Vista @ Bukit Batok, Senja Heights, and Senja Ridges.
Around 3,000 HDB flats across these BTO projects were affected by the stoppage of construction work in August 2021, with delays ranging from two to 12 months beyond their original completion dates.
Notably, the projects were already behind schedule as the construction sector was hit hard by the COVID-19 pandemic.
HDB CEO Tan Meng Dui shared that almost 75% of BTO projects that were delayed by the pandemic have now been completed. The rest are set to be completed by early 2025, said National Development Minister Desmond Lee.
4. New homes in more central locations among proposals for the Draft Master Plan 2025
Homes in more central locations and a Recreation Master Plan are some of the proposals put forward by the URA for the Draft Master Plan 2025.
URA said it will engage Singaporeans and stakeholders in the next two years as part of the Master Plan’s latest review in 2025. It will seek ideas and feedback on various plans through different platforms such as exhibitions, competitions and focus group discussions.
Key proposals include siting a mix of housing in more central locations, like the city area, the former Keppel golf course site and Turf City in Bukit Timah.
A Recreation Master Plan will also be presented, supporting both indoor and outdoor recreational opportunities such as entertainment, sports and wellness to promote healthy and active lifestyles.
URA will also share ideas that could potentially mitigate the urban heat island effect and build up Singapore’s heat resilience later this year.
There are also plans to inject more flexible and mixed-use workspaces in areas such as Jurong Lake District (JLD) as well as plans to enhance Identity Corridors, like the Rail Corridor and Thomson-Kallang Identity Corridor.
Related article: Turf Club Closing, Kranji Redeveloping: 4 Biggest Changes to the North of Singapore By 2033
5. HDB BTO Oct 2023 Verandah @ Kallang and Queenstown Tanglin Halt Cascadia launched under the PLH model
The October 2023 BTO launch included two BTO projects in Kallang and Queenstown, namely Verandah @ Kallang and Tanglin Halt Cascadia, that were launched under the Prime Location Public Housing (PLH) model.
The two BTO projects account for 2,116 out of the 6,800 flats offered for the HDB BTO October 2023 launch, reported CNA.
HDB revealed that six of the eight BTO projects in the Oct 2023 BTO sales exercise have a waiting time of four years and below.
Other projects are in mature estates such as Tenteram Vantage and Rajah Residences in Kallang/Whampoa, and non-mature estates like Rail Green I and II @ CCK in Choa Chu Kang and Plantation Edge I and II in Tengah.
Under tighter rules for non-selection of flats, applicants of BTO and Sale of Balance Flats (SBF) who secured a queue position within the flat supply cannot apply for a flat in later exercises until after their booking appointment.
“This will ensure that we do not crowd out other BTO applicants who have not secured a queue position and improve their chances of securing a flat,” said HDB.
HDB announced that a new priority category of buyers, known as the First-Timer (Parents and Married Couples) category, will also take effect from this exercise.
6. HDB to launch first BTO Sin Ming flats in 35 years in the upcoming HDB BTO Dec 2023 launch
HDB will offer eight BTO projects, comprising about 6,010 BTO flats, in December 2023 – the final sales exercise of the year, reported CNA.
One of these projects will be situated in Bishan’s Sing Ming Road, marking the first HDB flats to be built within the area in 35 years.
The last of the BTO three projects in the eastern half of Ulu Pandan will also be included in the upcoming Dec 2023 BTO launch.
The other projects are in Woodlands, Bukit Merah, Bukit Panjang, Bedok, and Jurong West.
The development in Sing Ming Road will feature about 730 units of 3-room and 4-room BTO flats, while the project in Queenstown will offer about 890 3-room and 4-room BTO flats.
There will be two Dec 2023 BTO projects in Woodlands, which will feature a total of about 1,220 units, while the BTO project in Bukit Merah will have about 900 units.
The BTO project in Bedok, which will come with community care apartments, will offer about 1,230 flats, while the BTO projects in Jurong West and Bukit Panjang will offer about 710 and 330 flats, respectively.
7. About 69% of applications for HDB HFE letters took over 21 days to process
About 31% of applications for the HDB Flat Eligibility (HFE) letter until 25 September 2023 were processed within the 21-day service standard, according to Senior Minister of State for National Development Sim Ann.
She revealed that the process was expedited for the remaining 69% of applications, which took over 21 days to process, reported CNA.
Ms Sim added that applicants who wanted to participate in the May 2023 BTO launch did not miss out even if they received their eligibility outcomes after 21 days.
She was replying to a parliamentary query by Leader of the Opposition Pritam Singh, who asked how many applicants were affected by technical glitches related to the timely issuance of the HFE letters.
Ms Sim replied that it was hard to define the exact number of affected applicants.
However, she explained that HDB has made certain accommodations to ensure that applicants did not miss out on the May 2023 BTO launch even as they received their HFE eligibility outcomes after the 21-day service standard.
8. URA calls tender for longest elevated cycling bridge in Singapore
The URA has called a tender to build a 682m-long cycling bridge across the Pan-Island Expressway (PIE), making it the longest of its kind in Singapore, reported The Straits Times.
To be built by 2027, the bridge will form part of a 1.2km link that would allow cyclists and pedestrians to seamlessly travel between the park connector right next to St Andrew’s Junior College and the Jalan Taman neighbourhood park.
Street-level paths will also be built, along with a 40m underpass near Mar Thoma Road within Bendemeer as well as a 275m path from Mar Thoma Road to Jalan Taman, which will hang over the Kallang River.
The works are the final touch to URA’s bigger project to transform the Kallang Park Connector into a 10km commuting route, slashing cycling time from Bishan to the Central Business District (CBD) to just about 30 to 45 minutes, from around one to 1.5 hours.
9. Works for the first phase of the Bishan-to-City links project completed
The first phase of the Bishan-to-City Links project, aimed at establishing a seamless cycling and pedestrian route from Bishan to the city, has been completed and opened.
First presented in 2017, the project is part of plans to rejuvenate the areas along the Kallang River, reported CNA.
Under the first phase of the project, the existing underpass located at Central Expressway was enhanced to improve the safety and comfort of users, particularly cyclists. This involved increasing the headroom to 2.4m from 1.9m and widening the pathway.
Terrazo and timber seats were also introduced for users to seek shelter from rain, take a break, and rest. New lights were also installed to brighten the space and enhance safety, while the flooring was designed with copper inlays of fish found within the Kallang River.
The underpass also features a 110m mural depicting scenes along the Kallang River, adding colour and vibrancy to the space.
Enhanced signalised crossing and new underpasses, featuring 3D murals that were lit with LED lights, were also introduced at Upper Boon Keng and Kallang Bahru.
Other areas with improved signalised crossings include Bendemeer Road, Serangoon Road, Geylang Road, and Sims Avenue.
10. LTA awards construction contracts for Cross Island Line (CRL) Clementi and King Albert Park MRT stations
The Land Transport Authority (LTA) has awarded the contracts to design and build the CRL interchange stations at Clementi and King Albert Park, with the construction works for the stations expected to begin in the first quarter of 2024.
The $541 million contract for the Clementi station was awarded to a joint venture between China Communications Construction Company (Singapore branch) and Sinohydro Corporation (Singapore branch), reported CNA.
Meanwhile, the contract for the construction of the King Albert Park station, which is valued at about $447 million, was awarded to China Communications Construction Company.
The Clementi station is located adjacent to the junction of Clementi Avenue 4 and Commonwealth Avenue West, while the King Albert station is situated along Blackmore Drive.
LTA said traffic and utilities diversions will be implemented in phases to facilitate construction works and to mitigate the impact on residents, motorists and students.
11. Stamp duty for property-related investments depends on the structure of the product and transaction
Deputy Prime Minister and Minister of Finance Mr Lawrence Wong explained that stamp duty for property-related investments will depend on the specific structure of the product and transaction, reported Singapore Business Review.
According to DPM Wong, an investor will not be liable to pay stamp duty if no beneficial interest or ownership of the actual property was received, such as when the investor was only entitled to a portion of the income generated by the property.
“Investors should consider both tax and non-tax consequences when making their investment decisions,” said Wong.
In Singapore, persons directly purchasing residential properties are subject to up to 6% Buyer’s Stamp Duty (BSD) and up to 65% in Additional Buyer’s Stamp Duty (ABSD) for entities (companies or associations) buying any property and trustees of any residential property.
Those buying shares in a Property Holding Entity (PHE), on the other hand, are subject to Share Duty as well as Additional Conveyance Duties (ACD) if they meet the relevant thresholds.
He noted that ACD for acquisitions includes up to 6% in BSD and a flat rate ABSD of 65%.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
