Ready & Steady – Singapore Property Outlook 2021

Singapore is regarded as a safe haven for property investors, despite the global pandemic!

Artist’s rendering of Guocoland’s Guoco Midtown where residents can live, work, and play.

In Q2 2020, Singapore’s residential market seemed to prove its resilience even as the pandemic cast a gloomy pall and the nation’s lockdown was in force. With closure of showflats, there were 2,253 transactions of non-landed private homes (excluding Executive Condominiums (ECs) lodged in the quarter.

While transaction volumes fell 40.5% q-o-q – prices of non-landed private residential properties in the Core Central Region (CCR) declined by 0.1% q-o-q to 131.0 in Q2 2020, moderating from the 2.2% q-o-q drop in Q1 2020, there was still hunger in the new home market while circuit breaker kicked in and buyers remained cooped up at home.

Non-landed transaction volumes (excluding EC) in the CCR decreased by 60.4% q-o-q to 381 units in Q2 2020, after increasing steadily for the past two quarters. Projects in the CCR that launched for sale in the quarter were limited.

All eyes were on Kopar at Newton where 116 deals transacted at an average unit price of SGD 2,275 per square foot (approx. USD 1,672) (psf), the highest volume in Q2 2020. There were 71 transactions between 4 and 6 April alone before the mandatory closure of sale galleries. The URA Price Index for non-landed properties in the Outside of the Central Region (OCR) remained flat after decreasing by 0.4% q-o-q in Q1 2020. However, URA flash estimates pointed to a decrease of 0.6% q-o-q to 147.2 in Q2 2020 for the Property Price Index (PPI) for non-landed private residential properties, thereby bringing the decline in the first half of 2020 to 1.6%.

April 2020 witnessed new sale activity down when the circuit breaker measures first kicked-in, however, it recorded 261 sales of non-landed private homes (excluding ECs). However, sales activity in the primary market improved as the quarter progressed, increasing to 455 and 875 transactions in May and June respectively as developers’ discounts encouraged buyers. Secondary sales, however, continued to slide, with 145 in May and 218 in June as compared to 299 in April.

Core Central Region
Prices of non-landed private residential properties in the Core Central Region (CCR) declined by 0.1% q-o-q to 131.0 in Q2 2020, moderating from the 2.2% q-o-q drop in Q1 2020. Non-landed transaction volumes (excluding EC) in the CCR decreased by 60.4% q-o-q to 381 units in Q2 2020, after increasing steadily for the past two quarters. Projects in the CCR that launched for sale in the quarter were limited. These included Kopar at Newton and 15 Holland Hill.

Outside Central Region
The URA Price Index for non-landed properties in the Outside of the Central Region (OCR) remained flat after decreasing by 0.4% q-o-q in Q1 2020. While overall non-landed transaction volume (excluding EC) dipped, new sale activity sustained with 773 transactions recorded.

Discounts will continue to be offered in order to encourage the transaction momentum seen in Q2 2020. Therefore, in the second half of 2020, with the phased relaxation of restrictions and some measure of human interaction, transaction volumes should increase

– Linda Chern, Head, Prime Sales & Leasing, Project Marketing.

Truth be told, the new sales were boosted by developer discounts in projects such as Treasure at Tampines and Parc Clematis, where both projects witnessed 150 and more units transacted in Q2 2020.

Rest of the Central Region
Prices in the Rest of the Central Region (RCR) witnessed the sharpest drop this quarter, with the PPI for non-landed private homes declining by 1.9% q-o-q to 149.7. Transaction volumes for non-landed homes (excluding EC) in the RCR declined by 33.7% q-o-q to 795 units in Q2 2020, of which 77.7% were new sale transactions. While there was a dearth of new project launches, there were transactions dealt at previously launched developments, in fact, projects that were launched in 2018 contributed to just over 50% of new sales in Q2 2020.

Case in point, Meyer Mansion, which was launched in September 2019, witness the highest transaction value in the RCR this quarter, where a freehold unit sold at a nett price of almost SGD 5.2 million (approx. USD 3.8 million) or SDG 2,475 (approx. USD 1,819) psf.

Market Outlook
As regulations ease with Singapore reopening its economy in phases, experts quip that the sale of prime non-landed residential units is expected to improve in the second half of 2020, even though global travel is widely curtailed.

Without a doubt, economic uncertainties affected demand for luxury homes, attested by these figures: The sale of prime non-landed residential units in H1 2020 amounted to SGD 659.2 million (approx. USD 484.7 million), representing a 52.9% half-yearly drop from the SGD 1.4 billion (approx. USD 1.03 billion)   in H2 2019. However, there were significant deals in the prime segment such as the sale of a penthouse unit at Ardmore Park for SGD 27.7 million (approx. USD 20.37 million), while another unit on the 25th floor of The Claymore sang an SGD 170 million (approx. USD 125 million)  deal in April, right after the start of the nation’s circuit breaker on 7 April 2020.

Landed Residential
Based on URA real estate statistics, the Property Price Index (PPI) of landed private residential properties was 170.3 in Q2 2020, unchanged from the previous quarter, bringing the total decrease in the first six months of the year to 0.9%.

In H1 2020, In H1 2020, a total of 106 landed homes totalling SGD 1 billion exchanged hands, shrinking by 23.1% from the SGD 1.3 billion (approx. USD 955.5 million)  transacted in H2 2019, constituting 125 units. Despite the reduced sales volume, there were notable deals at Sentosa, with detached homes located on Pearl Island and Cove Grove sold for SGD25 million (approx. USD 18.38 million)  in May and SGD 24 million (approx. USD 17.65 million)  in February, respectively.

During the same period, there were also six GCB (Good Class Bungalow) transactions amounting to SGD166.4 million (approx. USD 122.3 million)  in H1 2020, 45.8% lower than the SGD 306.9 million (approx. USD 225.7 million)  recorded in H2 2019. There was continued interest in the GCB market as the nature and limited supply of such homes bolstered its demand, making it impervious to the dampening global pandemic.

The Knight Frank report points to prevailing investor interest in Prime Non-Landed and Landed Homes in Q2 2020 despite lower sales. Despite the persistent pandemic looming across global markets, foreign buyers continue to regard Singapore as a safe haven for property investment, particularly residential homes.

Guoco Midtown
With its future-ready concept of living, work, and play in a singular development, Guocoland’s Guoco Midtown is bent on materialising this idea. There will be two condo projects within walking distance – Midtown Modern located at Tan Quee Lan Street comprising two 30-storey towers with more than 500 units, while the 33-storey, 219-unit Midtown Bay sits along the Beach Road stretch.

The residential components are all part of the Guoco Midtown concept where people live and work in the same vicinity. The entire project happens to be the largest project under development in the Central Business District. Complementing the two residential developments is a 30-storey office tower with 770,000 sq ft of premium Grade-A space, three retail clusters and a Network Hub – an 80,000 sq ft members-only business and social club comprising private office suites, networking lounges and meeting and conference facilities.

Guoco Midtown

Living room concept

Guoco Midtown Market

The multi-billion-dollar project is expected to be completed in stages between 2022 and 2024. This future-ready idea sits well in today’s pandemic climate as more people work from home or try to commute less to work. Many top MNCs, and forward-thinking corporations are already making work from home as part of their strategy going forward. The idea of a modern office is no longer a “zone to work”, rather, it is to report to work, collaborate, and generate new ideas. Guoco Midtown’s “core and flex” concept will serve long-term dedicated office space and shorter-term office, thereby giving companies more cost savings and flexibility. It’s paving the way for how future mixed-used developments should be conceived as our idea of a working, playing, and living concept in a singular precinct evolves with the times. www.guocomidtown.com/midtownbay/

3 Orchard-By-The-Park
If you’ve heard of Flexform furniture, then you might know the creative designer behind one of Italy’s most renowned upholstery brands – Antonio Citterio. While he has been designing furniture for decades, he’s also a trained architect and has designed many prestigious residential projects across the world. His most famous work would be the Bulgari hotel and resorts he designed in Milan and Bali.

Reputed luxury developer YTL is in awe of Citterio’s works and has commissioned him to design 3 Orchard-By-The-Park. In fact, YTL has always engaged award-winning architects for their projects; case in point the much-lauded Sandy Island villa collections in Sentosa Cove, designed by Claudio Silvestrin, which won the FIABCi Prix d’Excellence Award. The developer is focused on a good appreciation of refined designs, so it was natural to task Citterio to design 3 Orchard By-The-Park – the firm’s first luxury condominium in Singapore; in fact, it is his first project in Southeast Asia. This makes it the firm’s third prestigious residential project in Singapore after Sandy Island and Kasara, the Lake.

3 Orchard By-The-Park designed by Antonio Citterio for YTL

“We are so proud to have collaborated with the Italian maestro Antonio Citterio in crafting the immaculate design and finish of 3 Orchard By-The-Park. We want buyers to own a Citterio’s timeless masterpiece in one of Singapore’s most prestigious addresses Orchard Boulevard,” said Joseph Yeoh, Vice President YTL Land & Development and YTL Hotels.

Situated in the leafy surrounds of Orchard Boulevard is 3 Orchard By-The-Park, while within walking distance is Regent hotel. This sophisticated 77-unit development offers aesthetics and spatial coherence, which one can recognise from Citerrio’s works – dubbed “quiet luxury” – especially for furniture brands such as Maxalto, B&B Italia, and Flexform. This is a nod for timeless designs and pared-down aesthetics from the development’s structure, the façade, and the interior spaces, too.

Tan Sri (Dr) Francis Yeoh, who leads the family’s YTL Corporation, quips highly of Citterio, “For our first-ever luxury apartment project in Singapore, we wanted a true master of design who could holistically design the architecture and interior design of the entire development as one masterpiece where residents can experience his timeless signature aesthetics throughout every aspect of the living environment.”

3 Orchard-By-The-Park lounge and library area

3 Orchard-By-The-Park’s alfresco and pool deck

Citterio was also mindful of the project’s tree-lined precinct of Orchard Boulevard, especially how our Singapore government builds on its reputation as a “Garden City”. What’s in store for future homeowners? Well, the development is a short stroll away from the UNESCO World Heritage Site Singapore Botanic Gardens, while Orchard Road beckons with F&B and retail options.

Interestingly, the development will accommodate an Orchid Corner where Vanda YTL and Vanda Bocelli orchids grow and bloom; both of these orchids were specially dedicated for YTL by the National Orchid Gardens at Singapore Botanic Gardens in 2010 during the company’s Concert of Celebration by Andrea Bocelli.

3 Orchard By-The-Park will offer two-, three- and four-bedroom apartments with two five-bedroom penthouses in three distinct towers named “Wood”, “Wilderness” and “Water”. The development’s breakdown is as such: 30 apartments of Wood Tower and 23 apartments of Wilderness Tower will be released for sale, comprising a mix of 14 two-bedroom, 22 three-bedroom, 15 four-bedroom, one double-storey garden suite with four bedrooms, and one five-bedroom penthouse on the top floor. Some of these units will be embellished tastefully by renowned Italian brand Armani Casa furniture designed by fashion legend Giorgio Armani, further putting a strong “moving-in” incentive for well-heeled home buyers.

To truly appreciate Citterio’s unmistakable signature touch, everything has to be experienced first-hand. Just step into a unit and you’ll discover how mindful he is about details and aesthetics, everything from kitchen equipment, outdoor furniture, loose furniture, materials, surfaces, lighting, and cabinetry has been carefully appointed. His kitchen systems – Arclinea – in which he is also the creative director, ensure their functionality and aesthetics go like hand in glove in their respective environments. Step into the gym and you’ll notice the Technogym brand of equipment – which Citterio also has a design imprint – is bent on making working out purposeful and engaging.

Future residents can enjoy personalised and exceptional Concierge services by YTL Hotels, the award-winning hospitality arm of the YTL Group with 29 luxury resort and hotels across Asia, Europe and Australia. YTL Hotels is well known for its exceptional services to deliver experiences for “Treasured Places, Treasured Moments”.

If you become a future homeowner of one of these units, you will become part of YTL’s commitment to sustainability and protecting the green environment, as the prestigious project has been accorded Building & Construction Authority’s Green Mark Gold Plus Award for its sustainable design, construction and conservation of matured trees in its lush landscapes.
Read about the project here.

South Beach Residences
Driving along Beach Road, it would be hard to ignore the striking South Beach Residences situated beside the five-star hotel JW Marriott Singapore South Beach. Designed by Pritzker Prize-winner Foster + Partners, this luxury residential property looks out to enviable views of Marina Bay area, the Singapore Flyer, Marina Bay Sands and the iconic Esplanade. In fact, if one peers further, you can catch views of the tail-end stretch of Orchard Road.

Unique to the property is the eye-catching microclimatic canopy that complements the distinguished architecture. Undoubtedly, South Beach Residences has become one of Singapore’s swankiest and most luxurious property developments situated in the historical precinct of Beach Road.

South Beach Residences

The future homeowners of these residences – apartments and penthouse – can access services of the hotel with their “Resident Card”. The massive project offers 510,000 sq ft of Grade-A office space, which are part of an integrated development of chic F&B establishments and retail options.

The project offers 190 prestigious units kitted up with high-quality materials and fixtures and a host of integrated household appliances from well-known international brands such as Miele, Duravit, and Bulthaup. In each unit, details have been meticulously planned and designed to create cosy, welcoming spaces for cooking, relaxing, sleeping, playing, working and more.

All units afford full-height windows where panoramic views can be appreciated. Residences will begin from level 22 to 45, offering enviable views of the Singapore Skyline, CBD area and Marina Bay. At its best, celebrations for National Day and the year-end countdown will be the best time for future owners to enjoy these spectacular events in the comfort of their homes where fireworks, pomp, and fanfare play out in front of their windows.

Dining room concept

Spacious loft-like penthouse

Living room to dining room

Transport wise, homeowners can opt for MRT travel if they wish to ditch the car during the weekends. The nearby Esplanade and City Hall MRT stations can get the anywhere across the island. But for those who wish to park their cars, there are ample season lots. In fact, if one were to explore the vicinity on foot, there’s a whole raft of retail options at Suntec City, Raffles City, Marina Square, to name a few. For investors and would-be homeowners, South Beach Residences is definitely poised to become a much-desired project to own in the lively and vibrant district of Beach Road.

In terms of accessibility and transport, all future residents will have direct access to Esplanade MRT station and City Hall MRT interchange to get around Singapore. Homeowners who have cars will be able to find ample season lots. South Beach Residences has plenty of amenities and retail outlets nearby to make living and working here very convenient and pleasurable, perhaps, even enviable for some. Homeowners can enjoy the convenience of retail, relaxation, and shopping at Raffles City, Suntec City and Marina Square which are within walking distance. For investors and future homeowners, South Beach Residences is a much-desired property to own as the Beach Road stretch is all set to be lively and vibrant.
www.southbeachresidences-sb.com

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