[Open House] Clementi’s latest launch, ELTA, and how REITs are staging a comeback

If you’ve been following Singapore’s property market closely this year, you might have noticed two things happening at once. On the ground, new launches are still drawing solid interest despite higher price points. In the broader investment space, REITs are quietly staging a comeback after a tough couple of years.

On this week’s episode of Open House, the spotlight turned to both. First, a closer look at ELTA, a new 99-year leasehold condominium rising in Clementi. Then, a deep dive into Singapore’s REIT sector with the CEO of the REIT Association of Singapore. Hosted by CNA’s Susan Ng and 99.co’s Felicia Tan, here’s a full breakdown of the conversations that shaped the episode.

A closer look at ELTA: Clementi’s first new launch in 4 years

ELTA is a 501-unit development along Clementi Avenue 1, and notably, the first new private launch in the area since Clavon back in 2020. According to PropNex Associate Branch Director Lizzy Zhou, the response has been strong, with around 70% of units taken up during its launch phase.

Who’s buying and the key drivers

Lizzy shared that around 94% of buyers are Singaporeans, with most of them being HDB upgraders from Clementi itself. “They want to continue to stay in the same neighbourhood. They will upgrade to ELTA, because their HDB flats can be sold at close to S$1 million”.

With many million-dollar HDB flats already transacting in the town, sellers are walking away with significant proceeds, sometimes S$600,000 to S$800,000 in cash and CPF combined, which they then channel into upgrading to private property.

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Clementi’s long-standing appeal plays a huge role here. It’s not just a mature estate with malls and food options. It’s a key education hub. In Lizzy’s words, “Clementi can cover for the entire life cycle of a child”, from primary schools like Nan Hua Primary and Nanyang Primary to Nan Hua High School, NUS High School, Anglo-Chinese Junior College (ACJC), Singapore Polytechnic, and NUS. For parents planning long-term for their children, that kind of educational ecosystem is hard to ignore.

At the same time, investors are not sitting on the sidelines. The area continues to draw steady rental demand from students, academics and professionals working in nearby business parks and research hubs.

Lizzy shared that the condominiums in the district have achieved “high rental yield from 3% to 4%.” It’s a proven location where residents can enjoy good rental income, as well as strong exit profits in the resale market.

Unit mix, pricing, and what buyers are going for

In line with broader new launch trends, smaller units made up most of the early demand. ELTA offers layouts from 1-bedroom + study to 5-bedroom units, including a rare 4-bedroom dual-key option.

Here’s roughly how the pricing landscape looks:

• 1-bedroom + study units hover around the S$1.2 million mark
• 2-bedroom units range from about S$1.5 million to S$1.7 million, while larger 2-bed + study units hit around S$2 million
• 3-bedroom units sit between S$2.4 million and S$2.67 million
• 4-bedroom units start from around S$3 million, with the largest ones going up to about S$3.7 million
• 5-bedroom units, at close to 1,800 sqft, are priced around S$4.18 million

Overall, ELTA’s average price per square foot (psf) is about S$2,500, reflecting its positioning as a more premium, luxury-leaning development by MCL Land and CSC Land. “These are very comfortable price quantum for many buyers,” she added.

From smart appliances to features like water purifiers and electronic drying racks in larger units, the project leans heavily into modern, lifestyle-focused living — clearly aimed at younger buyers and multi-generational families upgrading from HDBs.

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Living with the AYE: How ELTA handles noise, dust, and views

One common concern is ELTA’s proximity to the Ayer Rajah Expressway (AYE). The developers tried to address this through design. They positioned the two residential blocks further back from the expressway and placed facilities like the swimming pool and tennis court closer to the road to act as buffers.

The site’s hilly terrain also plays a role. With a 17-metre elevation difference and a three-storey carpark podium, many residential units sit at a much higher level than the expressway. The development itself stands tall at 39 stories. This helps with both ventilation and view.

“You will get a very unblocked, panoramic view of the sea and the city in different directions.”, Lizzy explained. The South-facing units, for example, offer views of the low-rise landed homes, schools, and glimpses of the sea. The North-facing units have broad, open views as well. It’s the kind of elevated living that could appeal to buyers looking for privacy and openness, despite being in a dense urban area.

Connectivity and why Clementi still holds long-term value

While ELTA isn’t within direct walking distance to Clementi MRT, accessibility isn’t a major deal-breaker for many buyers.

The developer is providing a shuttle bus service to Clementi MRT for the first 15 months. “Residents will later vote on whether they want the shuttle bus service to continue,” Lizzy explained. “Otherwise, they can simply take public bus 189, which stops just outside and brings them to Clementi MRT station in only three stops.”

More importantly, Clementi MRT will eventually become an interchange with the upcoming Cross Island Line, adding another layer of connectivity. With plans for future developments around Maju MRT station and surrounding areas, buyers are betting on longer-term transformation and uplift, not just current convenience.

According to Lizzy, nearby projects like Clavon (TOP 2024) and The Clement Canopy (TOP 2019) have seen 100% profitable transactions so far. Some 4-bedroom owners have reportedly made gains of close to S$1 million. While past performance is never a guarantee, these figures give buyers more confidence in the area’s resilience.

How REITs are finding their footing again in Singapore

While the first half of Open House stayed grounded in Clementi’s physical landscape, the second half zoomed out to Singapore’s listed real estate market, where sentiment is finally shifting after a long, uncomfortable quiet period.

According to Nupur Joshi, CEO of the REIT Association of Singapore, the current upswing isn’t just a temporary bounce. Instead, it reflects a combination of structural improvements and renewed investor confidence. As she put it, “The REIT market has regained momentum this year” on the back of several converging forces.

What’s behind the upward trend?

She highlighted four key drivers behind this changing tide: 1) the interest rate trajectory, 2) the macro environment, 3) geopolitics, and 4) MAS’s equity market development programme (EQDP).

The interest rate trajectory

First, the interest rate environment has clearly turned a corner. Nupur pointed out that the US Federal Reserve began cutting rates in September 2024, and since then, “we’ve had five rate cuts, a total of 150 basis points”. While there are mixed views about further cuts in the near term, the important thing is that the direction of travel has changed. Rates are no longer rising aggressively. They are stabilising, and in many cases, edging down.

In Singapore, this trend is even more pronounced. The overnight SORA rate, which affects how much local banks charge for loans, has fallen sharply from around 2.5% to roughly 1.4%. She explained that this drop matters for REITs because many of them borrow in Singapore dollars. Lower SORA means lower financing costs, which directly helps improve their bottom line and, over time, their Distribution Per Unit (DPU).

This is also happening alongside a steep drop in T-bill yields. Just a year ago, short-term Singapore T-bills were yielding around 3%. Today, they are closer to 1.39%. As those yields compress, yield-seeking investors start looking elsewhere. Nupur noted that investors who had previously parked money in T-bills are now reconsidering their options, since “REITs are a natural choice because they are still yielding from 5% to as high as 9%.”

The macro environment

Second, the macro environment remains stable and supportive. Singapore’s economy is not just holding up — it is doing better than expected. “Singapore’s economy is growing well… and global growth is also stable in other major markets where the REITs own their properties.” This, she said, gives investors greater confidence that rental income and property cash flows will remain resilient.

The government has raised its GDP growth forecast for 2025 to around 4%. On top of that, Singapore-listed REITs don’t only own properties locally. Many of them have portfolios across Asia, Europe, and the US. With global growth remaining relatively stable in key markets, the underlying rental income of these REITs is not under the same pressure we saw during previous downturns.

Geopolitics

Third, Singapore’s role as a safe haven in an uncertain geopolitical world is becoming increasingly important. As she put it, “In a more uncertain world, Singapore is seen as a safe and well-governed market… and as a result, global capital is flowing into Singapore.” That inflow has also supported REIT valuations and trading activity.

With global tensions and political risks still high in many regions, capital tends to flow towards stable, transparent and well-regulated markets. Singapore continues to benefit from this reputation. Nupur pointed out that this inflow of global capital is not just supporting government bonds or currencies. It is also filtering into Singapore-listed equities, including REITs.

MAS’s equity market development programme (EQDP)

The fourth driver is more policy-driven. MAS has rolled out its Equity Market Development Programme (EQDP), which involves appointing nine fund managers who will deploy around S$3.95 billion into Singapore’s equity market, with a focus on small to mid-cap stocks, including REITs.

This is significant for two reasons. First, it brings direct institutional flows back into the REIT space. Second, these fund managers will also raise additional capital from third-party investors, amplifying the impact. She added that “a number of these REIT stock prices have already started moving up in anticipation of this stronger investor interest.”

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Sentiment has changed — and the market is showing proof

Beyond just improved headlines and analyst commentary, there are now tangible signs that confidence has returned.

For one, the Singapore REIT market has seen its first REIT IPOs in three years. After a long drought, two new REITs have been listed in just the last five months. These were NTT DC REIT, a pure-play data centre REIT, and Centurion Accommodation REIT, which focuses on purpose-built accommodation such as student and worker housing.

Nupur described them as “a fantastic indication of how much investor interest is coming back to the sector”, noting that both were heavily oversubscribed.

On performance, the Singapore REIT market has also done relatively well compared to other global markets. The FTSE ST REIT Index delivered a total return of about 17.5% this year. That puts Singapore ahead of Australia, which saw around 7.5%, and the US, which managed under 4%. Only Japan’s REIT market performed better, at around 24%.

Which REIT sectors are driving the rebound?

Not all REITs are recovering equally. Some sectors are clearly pulling ahead. Data centre REITs continue to attract strong interest due to the rapid growth of AI, cloud computing and digital infrastructure. Nupur noted that “Singapore is the largest data centre REIT hub in Asia”, with three pure-play data centre REITs listed, alongside diversified trusts that also hold data centre assets.

Another emerging segment is purpose-built accommodation, including student housing and worker accommodation. Centurion Accommodation REIT’s unit price has reportedly risen around 28% since its IPO, reflecting growing interest in this alternative asset class. Industrial and logistics REITs are also seeing steady performance, supported by long-term demand for modern logistics facilities and high-spec industrial spaces.

In retail, suburban malls in Singapore remain resilient due to strong heartland spending, while prime Orchard Road assets are benefiting from the gradual tourism recovery. Retail sales in Singapore grew about 3% year-on-year in the third quarter, giving another boost to this segment.

On the office front, Nupur explained that the picture depends on geography. In Singapore, office demand remains firm due to regional HQ activity and limited new supply. Elsewhere, cities like Australia and the US are seeing gradual stabilisation as return-to-office trends play out.

Finally, the hospitality and lodging sector is evolving. It is no longer just about hotels. It now includes serviced apartments, co-living, student housing and rental accommodation. While visitor arrivals have not fully returned to pre-pandemic levels, this growing diversity of lodging assets helps spread risk and tap into different demand sources.

Across all segments, one key trend is clear: investors are showing strong interest in higher quality, well-located assets, especially those with modern specifications and strong sustainability credentials.

What happens next for REITs?

Looking ahead, further interest rate easing could bring multiple benefits. Lower borrowing costs allow REITs to refinance their existing loans at cheaper rates, directly improving distributable income. At the same time, rising REIT unit prices reduce their cost of equity, making it easier for them to raise funds for future acquisitions.

When both the cost of debt and equity come down, REITs can start making acquisitions that are accretive to DPU. This creates what Nupur described as a “virtuous cycle” — higher DPU leads to higher investor interest, which then further lowers the cost of capital. This cycle was largely broken during the sharp rate hikes between 2022 and 2023. Now, conditions are finally shifting in the other direction.

One of the more interesting parts of the discussion was around sustainability. For REITs today, ESG is no longer about ticking boxes for annual reports. It has become deeply tied to asset value and tenant demand. Nupur stressed that “ESG is really built into the way they operate”. From choosing green-certified buildings to issuing sustainability-linked loans, REIT managers now integrate these decisions into day-to-day operations.

She added that multinational tenants increasingly prioritise greener, energy-efficient buildings, and investors are also factoring ESG performance into their decisions. In short, sustainability is becoming a competitive advantage, not just a marketing line.

While sustainability upgrades require significant upfront investment, they help safeguard long-term value. Over time, more energy-efficient assets enjoy better tenant retention, stronger pricing power, and wider investor interest.

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