When contemplating investing in a condominium in Singapore, one must also consider the government’s property cooling measures. The Singaporean government has implemented several strategies over the years to prevent speculative purchasing and maintain a steady real estate market. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may have a short-term impact on the profitability of condo investments, they also contribute to the long-term stability of the market, creating a more secure investment environment. Additionally, for more information on new condo launches, visit anvly.com
Property market in 2024 saw an initial sluggish period followed by a surge in activity in the second half. Boutique developments were the focus of the first half, with the lowest number of units launched for sale since 1996. Sales volume mirrored this trend, with just 1,889 units sold – the lowest since 1996. Of note, the 533-unit Lentor Mansion experienced a successful launch, achieving a 75% take-up rate in March. However, most other project launches in the first half saw relatively lacklustre sales compared to the previous year. According to Mark Yip, CEO of Huttons Asia, this could be attributed to uncertainties in the job market and high interest rates, causing buyers to hold back and await more highly anticipated projects later in the year, such as Chuan Park and Emerald of Katong.However, the market sentiment shifted in the second half of the year, with increased sales momentum following the Lunar Seventh Month. The 276-unit freehold Kassia on Flora Drive was launched in late July, achieving a 52% take-up rate. This set the stage for a surge in sales in the following months. In September, a 50-basis point interest rate cut by the US Federal Reserve further boosted sales momentum. In October, the private sales for 50% of the 226 units at Meyer Blue were transacted at an average price of $3,260 psf, setting a new record for the prime District 15 enclave. Additionally, the 348-unit Norwood Grand in Woodlands achieved an 84% take-up rate, marking the first time a project in Woodlands surpassed the $2,000 psf threshold. According to Yip, this strong performance is a clear sign of growing buyer confidence and demand.The surge in activity continued into November, with a record-breaking six new projects comprising 3,551 units launched over a 10-day period. This was prompted by the approaching year-end festive lull and improved market sentiment since the third quarter of 2024. The surge in activity defied the typical seasonal slowdown, creating a dynamic market environment. While there is speculation about possible cooling measures, Chia Siew Chuin, JLL’s head of residential research, believes it is “unlikely” as long as there is sustained sales momentum and property prices do not outpace GDP growth. She notes that the high November sales figures were largely driven by a year-end rush to launch projects. As such, any regulatory intervention is expected to remain on hold unless there are clear signs of persistent market overheating. Overall, the property market in 2024 ended on a high note, with strong sales and the possibility of surpassing the 2023 figures. According to Yip, this reflects the strength and resilience of the property market, as well as the enduring appeal of property as an asset for wealth creation and preservation.