Singapore’s Red Hot Residential Property Market
Despite upward revisions to ABSD rates, foreign investors remain unfazed. Singapore’s residential real estate market is still booming. The facts are there. While the government has revised ABSD rates for overseas buyers and residential investors to cool the blazing domestic market, their buying appetite remains largely unchanged. Based on a market snapshot by Knight Frank Q1 2021, 6,375 units were traded; Total non-landed transactions in the Core Central Region (CCR) fell 4.2% quarter-on-quarter in the fourth quarter of 2021 as resale transactions declined. A total of 5,563 units were traded in 2021, which is 84.9% more than in 2020.
Flash estimates from the URA pointed to marked growth in private non-land residential housing prices (exclusive Executive Condominiums) where they topped double digits in 2021 at 9.9%, a new high since 2010 when prices rose 14%.
The RCR (Rest of the Center Region) outperformed the other residential segments in terms of price growth and primary sales volume. The non-landed RCR price index jumped 7.3% quarter-on-quarter in Q4 2021, contributing to a stunning 16.9% increase in 2021. All thanks to new sales in the RCR segment, these launches were successful and desired by buyers. In fact, a total of 5,292 RCR units were traded on the primary market in 2021, which is 32.1% more than in 2020. It was also nearly 10.0% more than OCR and more double the CCR.
By far, integrated developments remained highly prized and resulted in price premiums. In particular, CanningHill Piers sold 582 units at an average of S$2,937, the highest average unit price among RCR projects over the past five years. This project includes a two-storey commercial podium.
Regarding the OCR (Outside Central Region), house prices increased significantly by 5.4% in the fourth quarter of 2021, compared to a growth of 2.9% in the first three quarters of the year . Here, 947 new units of sale were traded during the quarter, down 36.8% QoQ (Quarterly).
Experts point out that the lack of inventory continues, supporting demand with 17,140 units unsold on the market in the third quarter of 2021, compared to around 24,300 at the end of 2020. ABSD revisions and will include the majority of buyers in 2022.
Additionally, property experts point out that Singapore’s safe-haven status and current absence of wealth tax will continue to entice overseas buyers to invest in properties here, even with ABSD rates going north.
Overall, private residential prices are expected to increase by around 1-3% in 2022 given cooling measures and interest rate hikes. The new sales volume could reach around 8,000 to 9,000 units with smaller launches underway.
Canning Hill Pier
Designed by renowned Bjarke Ingels Group, CanningHill Piers has a distinctive architectural narrative set in the bustling lifestyle enclave of Clarke Quay. The Danish architecture firm will feature a striking facade artistically draped in an iconic geometric lattice that pulls together the entire integrated development through this sculptural form. The 48-story residential tower will feature river views and be the tallest residential development along the Singapore River. Additionally, another 24-story residential tower will provide views of Fort Canning Hill. The two monolithic structures are connected by a panoramic sky bridge at level 24 where future owners can admire views of the city, the river and the green hills. Residents will have easy access via a direct link to Fort Canning MRT station and a short walk to Clark Quay MRT station.
Comprised of work-live-play elements, this CapitalLand and CDL joint development will deliver some incredible amenities. These include the CanningHill Club on level 24 with several pools, a yoga deck, a meditation room, two gyms, the Flexi Lounge as well as comfortable Flexi Pods. Additionally, there will be a coworking space called Flexi Lounge which is equipped with charging stations, comfortable seating and tables.
Residential units are available in a wide range of configurations ranging from 409 square feet for a one-bedroom unit, 1,313 square feet for a three-bedroom premium, to 2,788 square feet for a five-bedroom premium. All apartments are equipped with the famous Italian Ernestomeda kitchen system, as well as top-of-the-range integrated appliances from Miele and De Dietrich and top-of-the-range bathroom fittings from Gessi and Laufen.
Scheduled to be completed by 2024, CanningHill Piers will be an integrated development that includes CanningHill Square with dining and retail options, a 475-room hotel operated under the Moxy brand by Marriott International, plus a 192-room residence. units with a hotel license. operated under the Somerset brand which is managed by The Ascott Limited.
King’s Dock Reef
As Singapore’s first condominium with a floating deck, The Reef at King’s Dock will offer buyers a chance to own a pad that offers a unique waterfront lifestyle. The development is a joint venture between Mapletree and Keppel Land and will be the fourth residential land in the 32-hectare Harbourfront redevelopment.
The name King’s Dock is derived from the second largest dock in the world after Liverpool’s Gladstone Dock when it opened in 1913. With three other docks set up in the same area, Singapore experienced a boom in commercial activity. Homebuyers love the aesthetic of urban and natural elements in the theme design. All in all, it’s hard to find a vacation home with the sea and marina on your doorstep. Even better, the pontoon bridge is the first in Singapore.
But the carrot for homebuyers is the price of one-bedroom units starting at less than S$1 million. This resulted in strong sales; indeed, as of January 30, 2022, 90% of the units were sold in a single day, i.e. 280 units out of the 300 releases. Two-bedroom units are priced at S$1.5 million. Units with sea or King’s Dock views were in high demand.
The luxury condominium development offers 429 units that sit on 284,266 square feet of 99-year-old leasehold land located on Harbourfront Avenue. It is close to Singapore’s largest mall – VivoCity.
King’s Dock Reef is set to add sparkle to the Greater Southern Waterfront, part of Singapore’s latest transformation plan covering an area of 2,000 hectares. It is six times the size of Marina Bay and will stretch 30 km from the south coast.
The architect behind the project is KCAP who has completed many European waterfront projects in countries such as Denmark, Switzerland, Spain and Germany. KCAP was also the master plan designer for the 360 hectare Jurong Lake District. The reef at King’s Dock is designed to be an ‘urban village’ and will offer 10 blocks within the development. These blocks will vary in height from four to 10 stories. The interplay of heights allows the architect to maximize views from most units. Units that do not have a sea view will enjoy a view of the lush garden. Some units on the northwest side will have views of scenic Mount Faber. But the main feature of this project is the 180 m long floating terrace where there will be an Olympic length swimming pool, a paddling pool for children and a rejuvenation pool. Children will be able to enjoy and appreciate the marine life via the marine viewing hammock. These luxury homes will be equipped with many features such as smart home security, intercom system air conditioning and motorized screens, while the kitchens will be equipped with gadgets from Miele while the bathrooms will be decorated by Dornbracht. and Geberit.
Additionally, there will be energy-efficient air conditioning systems, LED lighting, rainwater harvesting and self-irrigation, to name a few. Homeowners will love the built-in aluminum mesh sunscreens on the balconies of every home. The mesh is permeable – allowing light and wind to enter but it can keep heat out.
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