MCL Land, CSC Land Group to launch 501-unit Elta on Feb 20
Despite the potential for new property cooling measures, the influx of government land sale (GLS) sites and upcoming Build-To-Order (BTO) launches, as well as the possible impact of Budget 2025, experts predict a bright year ahead for the real estate market. These were some of the key discussion points at EdgeProp Singapore’s Property Market Outlook event on Sunday, Feb 16, which featured a panel of three industry experts.
The panel, comprising 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.
Held at the sales gallery of Elta, a new 501-unit project jointly developed by MCL Land and CSC Land Group, the EdgeProp Singapore-organised event saw a turnout of over 4,500 visitors during the first three days since its public preview on Feb 7.
Last month, the government hinted at the possibility of implementing more property cooling measures, stating that it was “not adverse” to the idea and that it was not yet time to ease up on existing measures. This has caused a surge in the sale of new private residential units, which reached 1,083 units (excluding executive condominiums) in January – representing a 256% jump from the same period a year ago.
According to Cheong, if new cooling measures are implemented, the government is likely to take a uniform approach that applies across the entire residential market. However, the panelists also discussed the possibility of measures focusing specifically on the HDB resale market.
Wong pointed out that the HDB resale market acts as the “floor” of the housing market in Singapore. As such, any sharp price growth in this segment will inevitably drive up prices in the private housing market. In this context, the government may consider tweaking the seller’s stamp duty (SSD) or implementing stricter loan restrictions.
At the same time, Tong pointed out that the government is looking to inject a high volume of GLS and BTO supply to meet the high demand for housing. In the first half of 2025, the GLS programme will offer 10 sites on the Confirmed List – with the potential to yield more than 5,000 new homes. The Housing and Development Board (HDB) will also be launching 19,600 BTO flats in 2025.
Under the new classification system, new BTO flats under the Prime and Plus categories will take around 14 years to enter the resale market. As such, the impact on prices will only be felt much later. As Cheong notes, prices in the resale market tend to follow project completions and HDB estates completing their minimum occupation period (MOP) as opposed to the number of GLS sites put up for tender every year. “In terms of prices, the main factor is project completions rather than GLS supply,” adds Wong.
Nonetheless, all three panelists noted that the strong demand for new launches in the launch market this year indicates robust buyer confidence. Projects such as Elta, The Orie and Bagnall Haus – which witnessed strong take-up rates of 86% and 63% at launch respectively – are a testament to this.
Going forward, Song believes that prospective buyers of new projects are still positive they can make a profit on their investments. For Singaporeans in particular, a stronger job market and an increase in high-paying jobs has boosted confidence for property owners looking to upgrade their homes.
During the discussion, the panelists also touched on Budget 2025 and its potential impact on the property market this year.
According to Song, Singapore has recorded a strong economic recovery since the Covid-19 pandemic-induced recession. With 2025 being an election year, he believes that Singaporeans can expect to see more government handouts funded by the surpluses generated by the government in the past three years.
The panelists also fielded questions from the audience. Some participants expressed concerns about whether the residential property market is currently in a “euphoric” phase.
Cheong was of the opinion that the sense of market exuberance is likely to dissipate as developers strategically time the launch of new projects. He added that several projects that are ready for launch in certain neighbourhoods have not seen new launches in years. “If there has not been a new launch in a specific neighbourhood in around five or six years, the demand tends to build up during that time,” he explains.
Among other concerns, several investors also queried the panelists about the rental market, which has seen a slowdown since its peak two years ago. Although the total number of expatriates in Singapore has declined in the past year, there has been an increase in the number of rental transactions in 2024, notes Cheong.
The falling rental rates have encouraged some renters to stop flat-sharing and find their own accommodation. However, this has been offset by recent layoffs in technology and finance companies, which will likely moderate rental prices this year, says Cheong.
Additionally, EdgeProp’s CEO Tong also gave a presentation on the upcoming transformation plans in Clementi and Jurong East for EdgeProp Singapore’s Master Plan Master Class. Tong noted that the completion of the second phase of the Cross Island Line (CRL), which will add a new MRT station (West Coast) and turn the existing Clementi station into an interchange, has a proven track record of boosting property prices in the past.
Clementi is also slated for a series of transformation plans that include the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths. This, coupled with the progressive development of the Jurong Lake District, is expected to propel property demand in Clementi, particularly for homes located near the upcoming MRT stations.
Data compiled by EdgeProp Singapore indicates that the average age of existing condominiums in Clementi is around 17 years. According to Tong, recent projects in the area have seen strong capital appreciation over the years, including Clavon (24% increase in prices since launch) and The Clement Canopy (43% price growth since launch).
When contemplating an investment in a Condo, the most critical aspect to consider is financing. In Singapore, there are various mortgage options available, but having a thorough understanding of the Total Debt Servicing Ratio (TDSR) framework is crucial. This framework establishes a cap on the amount of loan an individual can obtain, taking into account their income and current debts. To make well-informed decisions and avoid getting overwhelmed with debt, it is highly recommended to consult with financial advisors or mortgage brokers who are well-versed in the TDSR. They can assist investors in navigating their financing options carefully and ensure they do not overextend themselves. Therefore, if you are thinking of investing in a Condo, remember to keep the TDSR framework in mind and seek professional guidance when seeking financing.
EdgeProp Singapore also offers a range of property tools for buyers, sellers, and owners, including data on resale prices for HDBs, analytics to identify profitable investment opportunities, and a comprehensive list of upcoming GLS sites. Visit the EdgeProp Singapore site to find out more.