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Ardmore Park condo unit nets seller $6.8 mil profit

The ultra-luxury condo, Ardmore Park, located in the prestigious Ardmore-Draycott enclave in prime District 10, saw some of the biggest gains in resale transactions throughout 2024. According to caveats lodged with URA as of December 17, the freehold development recorded the first, second, and fourth most profitable resale deals in the year.

One of the biggest gains came from the sale of a four-bedroom unit on the 26th floor, measuring 2,885 sq ft, on February 16. It was sold for $12.9 million, translating to $4,472 psf. The unit was initially purchased from the developer in July 1996 for $5.83 million, or $2,022 psf, which means the seller made a profit of $7.07 million, or a whopping 121%, after owning the unit for about 27 and a half years.

On July 24, another four-bedroom unit on the 18th floor, with a similar floor area of 2,885 sq ft, was sold for $12 million, at $4,160 psf. The seller bought the unit in December 2000, through a sub-sale transaction, for $5.2 million, or $1,803 psf, resulting in a profit of $6.8 million, or 131%. This unit was owned for approximately 23 and a half years.

The fourth most profitable transaction was also a four-bedroom unit, measuring 2,885 sq ft, sold for $12.5 million on April 22, at $4,333 psf. The seller bought the unit in February 2007 for $6 million, at $2,080 psf, resulting in a capital gain of $6.5 million (108%) after owning it for over 17 years.

It is not just in 2024; in recent years, resale deals at Ardmore Park have consistently registered significant gains. In 2024 alone, there were seven resale deals of four-bedroom units between 2,885 and 2,885 sq ft. The smallest profit was $2.65 million, and the highest $8.16 million. Moreover, in 2023, there were four transactions at Ardmore Park, with profits ranging between $2.8 million and $8.16 million.

Among the top profitable deals recorded this year in Ardmore Park, almost all the units were the four-bedders of 2,885 sq ft. It should be noted that the four-bedders make up about 60% of all the total units in the condo development.

Besides, Ardmore Park was not alone in recording the top profitable resale transactions in District 10. Other older freehold condos in the district saw strong gains as well. They include Beverly Hill, Astrid Meadows, Regency Park, Fontana Heights, and Wing On Life Garden, all completed between the 1980s and 1990s.

However, the top 5 unprofitable transactions this year on the list were in Sentosa Cove. The highest loss was recorded at Marina Collection when a 3,789 sq ft, five-bedroom unit was sold for $6.7 million on July 22, at $1,768 psf. The seller owned the property from March 2010, when they purchased it for $9.39 million ($2,479 psf), incurring a loss of $2.69 million (29%).

Another Sentosa Cove condo, Seascape, recorded the second-highest loss. The sale of a four-bedroom unit on the sixth floor, measuring 2,680 sq ft, was sold at $4.5 million or $1,679 psf on August 14. The seller previously purchased the property from the developer in October 2010 for $7.03 million, or $2,623 psf. The seller took a loss of $2.53 million, at 36%.

In contrast, older freehold condos in Ardmore-Draycott enclave, the homes in Ardmore Park continue to be in high demand, thus staying resilient. In addition, the average prices of homes in the Ardmore-Draycott area are set to appreciate further.…

In the highly exclusive world of the ultra-rich, the Good Class Bungalows (GCBs) market has seen significant growth this year compared to 2023, reports Han Huan Mei, director of research at List Sotheby’s International Realty.

As of December 20, data from URA Realis shows 22 GCB transactions worth $612.05 million. Additionally, 13 more GCB deals, with a collective value of over $700 million, were completed without caveats being lodged, as buyers sought anonymity. This brings the estimated total for 2024 to 35 GCB transactions worth approximately $1.32 billion, according to List Sotheby’s estimates, surpassing the previous high of $1.186 billion achieved in 2022.

In comparison, 2023 saw only 18 GCB transactions, amounting to $432.5 million – the lowest number of deals recorded since URA Realis began tracking data in January 1995.

“This points to the fact that the GCB market has been more active than what official transaction data reveals,” says Han. “It also reaffirms the coveted status of GCBs as highly desirable assets among ultra-high-net-worth buyers.”

Notable GCB transactions

Leading the pack is the sale of a GCB at Tanglin Hill for a whopping $93.888 million. The property, situated on a freehold land area of 15,150 sq ft, boasts a built-up area of 29,660 sq ft. This transaction set a new record with a land rate of $6,197 psf.

The second-largest GCB transaction was the purchase of a property at Bin Tong Park for $84 million by Xiang Yangyang, daughter of Chinese nickel billionaire Xiang Guangda, according to a document search. However, no caveat was lodged for the property. Based on the land area of 28,111 sq ft, the price translates to a land rate of $2,988 psf.

Based on caveats lodged, the highest-priced deal was for a GCB on Cluny Hill that changed hands for $52 million. Sitting on a freehold plot of 15,141 sq ft, this relatively new property commanded a land rate of $3,434 psf.

Another significant transaction was the sale of a 21,116 sq ft GCB plot at Astrid Hill for $49 million ($2,321 psf) in July. The property was reportedly purchased by Glenn Kuok, nephew of Kuok Khoon Hong, chairman and CEO of Wilmar International. The purchase price translates to a land rate of $2,321 psf.

Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), notes that at least 14 transactions this year were valued at $20 million or more. This highlights the strong demand for ultra-luxury properties in Singapore.

District 10 remains a key market for GCBs

Sandrasegeran also observes that GCB transactions were evenly spread throughout the year, with buying activity picking up from July. “Overall, the fact that we saw GCB deals closing throughout the year suggests strong buying interest for these top-tier properties despite external economic factors, such as inflation and high interest rates in the first eight months of the year,” he says.

According to Steve Tay, co-founder and executive director of his eponymous boutique luxury agency in Singapore, the trajectory of interest rates signaled by the US Federal Reserve (Fed) was the main driver of stronger buying sentiment in the GCB market during the second half of the year, rather than the rate cuts themselves.

The Fed implemented three rate cuts this year: 50 bp in September, 25 bp in November, and 25 bp in December 18. Anecdotally, Tay says most GCB buyers who were hesitant about making purchases became more serious about discussions from July onwards, with most deals closing in the last quarter of this year.

The GCB market slowed down last year due to buyers holding back following the widespread arrests of suspects in Singapore’s biggest money laundering case, says Han of List Sotheby’s.

“The money laundering crackdown had a dampening effect on the market, causing some genuine buyers to pull back to avoid media attention,” she adds. “Transactions also took longer to close due to heightened scrutiny and stricter checks on buyers’ identities and sources of funds.”

New, up-and-coming wealthy buyers in the market

A new generation of ultra-wealthy Singaporeans has emerged in the GCB market in recent years, with a good number of young and successful entrepreneurs who have made their fortunes in technology, finance, commodities, and F&B businesses, says Tay.

He adds that newly naturalized ultra-wealthy Singaporeans also contribute to the exclusive pool of GCB buyers who prefer sizeable plots in prime districts. However, the number of naturalized citizens purchasing GCBs remains low compared to local wealthy individuals, says Tay.

According to research from List Sotheby’s, the cost of developing a new GCB from the ground up is estimated at around $1,000 psf, and construction can take several years to complete. As a result, most buyers prefer relatively new bungalows in move-in condition to minimize renovation works, observes Han.

“The GCB market is likely to continue its positive momentum, with demand from ultra-high-net-worth individuals driving high-value transactions,” says Sandrasegeran of SRI. “The preference for privacy among GCB buyers and sellers may result in continued off-market transactions, making it more challenging to track market activity.”…

Singapore’s property market is on an upward trend, with the total value of capital market deals estimated to have reached $25.8 billion in the first 11 months of 2024. This marks a 40.2% increase from the $18.4 billion recorded in 2023, according to Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield (C&W). The firm defines capital market transactions as deals exceeding $10 million.

The surge in investment value can be attributed to a boost in investor appetite, fueled by growing confidence in the US Treasury’s potential interest rate cuts. In fact, almost 60% of the capital market deals were made in the second half of 2024. Three deals worth over $1 billion were transacted during this period.

The highest-valued transaction by absolute price was the sale of a 50% stake in ION Orchard mall for $1.85 billion to CapitaLand Integrated Commercial Trust (CICT) on September 3. The seller was CapitaLand Investment (CLI), while Hong Kong-listed property developer Sun Hung Kai Properties holds the remaining 50% stake.

ION Orchard is an eight-storey retail mall located in the heart of Singapore’s shopping belt, directly linked to the Orchard MRT Station. It boasts a net lettable area of over 623,000 square feet and is home to more than 300 international and local brands. On top of the mall is a 54-storey luxury condo tower, The Orchard Residences.

Another significant contributor to the increase in investment value is the surge of interest in industrial assets. In the first 11 months of 2024, investments in this sector reached $5.6 billion, a staggering 174% increase from the previous year. The largest deal in this sector was the $1.6 billion divestment of a portfolio of seven industrial properties in Soilbuild Business Space REIT to a joint venture platform owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group in August.

Despite the unsuccessful sale of several Government Land Sales (GLS) sites this year, residential development sites sold through GLS tenders still made up 42% of total investment sales. However, four GLS sites on the Confirmed List for 2024 failed to be awarded: the 6.5-hectare master developer white site in the Jurong Lake District, the 1.73-hectare white site at Marina Gardens Crescent, the 62,046-square-foot site at Media Circle, and a 262,875-square-foot site at Upper Thomson Road (Parcel A).

The top bids for three of these sites were rejected by the Urban Redevelopment Authority (URA) as they were deemed too low. The only successful sale was a 50:50 joint venture between UOL Group and CapitaLand Development, which agreed to purchase the 255-unit Thomson View condominium for $810 million.

The retail and office sectors also showed signs of recovery, with a notable increase in investment value. On the other hand, the shophouse market saw a decline in investment value, which can be attributed to dampened investor sentiment following money laundering investigations in August 2023.

Looking forward, C&W’s Wong remains optimistic about an increase in high-value deals in 2025. He expects investors to prepare for a rebound in capital values driven by lower interest rates. CBRE also predicts a 10% growth in investment volumes from 2024 to 2025, barring any major economic shocks.…

Consumer spending in Singapore has not been as strong as expected, which is likely to impact the rental forecasts for the retail property market for the rest of the year. According to Alan Cheong, executive director of research and consultancy at Savills Singapore, the year-on-year change in the monthly retail sales index (excluding motor vehicles) and food and beverage (F&B) sales index has mostly been negative this year.

Cheong predicts that retail properties in the prime Orchard Road submarket may see a 2% increase in rents for the full year, which falls short of earlier expectations of a 3-5% increase. This is due to the weak consumer spending, which is also reflected in consumer concerns over higher-than-expected inflation. However, the research jointly published by DBS and Singapore Management University (SMU) also found that most Singaporeans expect inflation to stabilize in the coming quarters due to the global economic slowdown, high interest rates and potential easing of supply chain disruptions.

Data from the Singapore Department of Statistics shows that retail sales (excluding motor vehicles) saw a 0.3% increase year-on-year in October, reversing a 1.5% decline in September. Cheong notes that it would be more positive if consumer spending could keep up with inflation, but the current low spending poses financial challenges for businesses in the industry.

Despite a busy schedule of concerts and events in Singapore this year, retail spending and rental rates did not see significant support. CBRE’s research showed that while concerts by international stars such as Taylor Swift and Coldplay attracted over 500,000 attendees, the impact on surrounding malls was mixed. While they generated higher foot traffic for nearby malls such as Kallang Wave Mall and Leisure Park Kallang, other MICE events did not have the same effect. Additionally, while new-to-market brands and F&B concepts continue to enter the Singapore market, other factors such as new wellness concepts and the emergence of new restaurants with entertainment are expected to enhance the vibrancy of the dining scene.

Looking ahead, Savills’ Cheong expects more retailers to optimize their real estate strategies next year, including right-sizing their spaces or establishing additional kiosks. He also predicts continued momentum in the entry of new-to-market F&B brands. However, it is likely that rental adjustments will be more limited as the supply of new retail spaces becomes more limited. Going forward, it will be important for retail landlords to strategize and position their malls to remain relevant in the rapidly evolving consumption patterns of both locals and tourists.…

The past year has been a challenging one for the global luxury goods market. With macroeconomic uncertainty and continuously rising prices among brands, consumers have been cutting back on luxury retail spending.

According to a recent report by Bain & Company, 2024 global sales of personal luxury goods are set to fall by 2%, with China, a key market, experiencing a decline of 20-22%. This has been reflected in the slight earnings declines for 2024 reported by Richemont Luxury, LVMH, and Moncler Group, while Kering has shown more significant declines.

However, there have been a few outliers in this trend, with Hermes and Prada Group (which also owns Miu Miu) reporting double-digit earnings growth.

Despite these challenges, Singapore remains an important market for luxury brands, with Euromonitor reporting an 11% growth in luxury goods sales in 2023, reaching $9.1 billion.

In recent years, luxury brands like Dior, Chanel, and Louis Vuitton have embraced robust digital strategies, including e-commerce and digital marketing, to engage customers (Photo: Albert Chua/EdgeProp Singapore)

Singapore has continued to be an important market for luxury brands, with Cartier, Moncler, and Marc Jacobs opening new stores in Changi Airport this year, and Marni, Graff, and Golden Goose opening new stores in Marina Bay Sands.

Luxury brands have long been known for their timeless elegance and heritage, but in recent years, they have also begun to embrace digital strategies as a means of engaging customers. This has become especially crucial in a world of rapidly evolving consumer behaviors and preferences. In addition to digital strategies, luxury brands have also recognized the importance of creating offline shopping experiences to build stronger connections with their clients.

In recent years, luxury brands have been adopting the strategy of creating unique experiences for their top-tier clients, and flagship stores have become bigger and bolder. For example, Louis Vuitton (LV) opened its new 690 sq m (7,427 sq ft) “apartment concept” space at Ngee Ann City, dedicated to its “VICs” (very important clients) in 2023 (Photo: Louis Vuitton).

Burberry is another example of this, having reopened its extensively renovated stores at Marina Bay Sands and Paragon in 2024 alone. Its immersive store experience showcases the brand’s rich British legacy while blending tradition with innovation. In November, Burberry also opened a new store on Orchard Road at Wisma Atria, with a prominent double-height façade.

Flagship stores are becoming increasingly important for luxury brands, with Yves Saint Laurent (YSL) opening a new Saint Laurent duplex store in Paragon shopping mall in 2023, followed by a YSL beauty boutique in Raffles City last month.

Last month, catering to its VIP clientele, Yves Saint Laurent opened a YSL beauty boutique in Raffles City (Photo: YSL)

Other luxury brands have also been investing in bigger and bolder flagship stores. In 2023, Richard Mille opened its world’s largest standalone store, spanning 7,500 sq ft in Singapore’s affluent St Martin’s Drive. The store features a “speakeasy” concept with a sports bar and a dining room.

Despite the challenges faced by the luxury goods market in 2024, it is expected to grow in 2025 and beyond, driven by various factors such as the steady growth of high-net-worth individuals (HNWIs), buying interest from Millennials and Gen Z, the resurgence of Chinese tourists, and the continued growth of duty-free retail, particularly in Japan.

Looking towards the future of luxury brands, several trends have been observed, including personalization and customization to build deeper connections and brand loyalty with customers. Brands are also leveraging AI and digital experiences to better understand customer wants and complement offline experiences.

Some luxury brands have been at the forefront of adopting innovative AI techniques, such as Dior’s AI platform, Astra, which extracts data from multiple channels to stay attuned to customer preferences. Additionally, Balenciaga’s Paris Fashion Week show for its Winter 2024 collection went viral as the designers transformed the runway and surroundings into an immersive digital canvas, incorporating AI-driven digital distortions. Brunello Cucinelli also created a separate website powered entirely by generative AI.

Despite the difficult year for the luxury goods market, growth is on the horizon for 2025 and beyond as brands continue to expand their store count, open larger flagship stores, and create elevated experiences for their top clients. With Millennials and Gen Z comprising the majority of their customer base, luxury brands will continue to embrace advanced digital technologies and platforms while building strong omnichannel strategies that include immersive and interactive physical stores.

Sulian Tan-Wijaya is the Executive Director (Retail & Lifestyle) at Savills (Photo: Sulian Tan-Wijaya)…

The pursuit of simplicity and quality is at the forefront of V-ZUG’s approach to product design. While the world of interior design is ever-changing, this Swiss brand remains dedicated to the timeless combination of functionality and elegance.

With a history dating back to 1913, V-ZUG has long been a top choice for developers and designers of luxury residences. Today, its appliances can be found in homes all over the world, from its home base in Switzerland to cities such as Shanghai, London, and Singapore.

What sets V-ZUG apart from its competitors is its focus on sleek lines and a seamless integration into every home. By blending durability and modern aesthetics, the brand continues to shape kitchen designs with a fusion of tradition, quality, and contemporary aspirations.

At the core of V-ZUG’s success is a commitment to precision craftsmanship and quality control. Each appliance is carefully handcrafted in Switzerland and undergoes strict testing by engineers to ensure optimal performance. The brand’s team of designers also conducts thorough research before production begins, incorporating sustainable practices without compromising on quality.

In recent years, V-ZUG has also made strides towards eco-friendliness by utilizing Circle-Green recycled stainless steel by Outokumpu, which produces significantly fewer emissions than traditional stainless steel. Additionally, the brand consults with renowned chefs from Michelin-starred restaurants to ensure its kitchen appliances meet the needs of even the most discerning cooks.

One of V-ZUG’s standout products is its series of wine cabinets, which includes the full-height WineCooler V6000 Supreme and the WineCooler Undercounter Swiss Luxury (UCSL). Each model offers two temperature zones, making it ideal for storing various types of wine. These cabinets are available in different sizes to fit different spaces, while maintaining the brand’s high standards.

V-ZUG’s minimalist design aesthetic and range of products ensure that there is something for every household. The brand’s wine cabinets are just one example of the versatility and quality that can be found across its entire product line.

In creating an end product that is both simple and exceptional, V-ZUG leaves no detail unconsidered. From the operation of a wine cabinet’s doors to the color of LED lights in a refrigerator, every element is carefully thought out to ensure a harmonious and practical household. Beyond the kitchen, V-ZUG also offers products such as the RefreshButler, which provides a convenient way to sanitize and deodorize garments.

In a constantly evolving industry, V-ZUG remains committed to timeless, high-quality design and exceptional living. Whether it’s through sustainable practices, consulting with top chefs, or ensuring seamless integration into every home, the brand continues to prioritize simplicity and excellence in all of its products.…

The industrial property market in Singapore has been seeing strong demand and growth potential in recent years, thanks to the country’s stable political landscape and robust economy. This has been reflected in the rising prices and rents for industrial properties, as well as an increase in new investments and developments in the sector.On December 4, VisionPower Semiconductor Manufacturing Company (VSMC) made a significant move by breaking ground on a new US$7.8 billion ($10.5 billion) wafer manufacturing facility in Tampines. This plant, which is set to begin initial production in 2027, is expected to produce 55,000 wafers per month by 2029 and create about 1,500 jobs. VSMC is a 60:40 joint venture between Taiwan’s Vanguard International Semiconductor Corporation and the Netherlands’ NXP Semiconductors.However, VSMC is not the only player expanding their operations. In March, Japan’s Toppan Holdings began construction on a factory in Jurong Lake District that will produce semiconductor packaging materials. The project is estimated to cost around $450 million.Toppan Holdings and VSMC are just two of the many chipmakers and other related businesses that have been setting up new production plants and research & development campuses in Singapore in order to boost their supply chain resilience. This trend has been observed by Leonard Tay, the head of research at Knight Frank Singapore, who believes that “Singapore remains a global production hub for semiconductors and chips, [thanks to] its stability amid ongoing geopolitical tensions in other parts of the world.”The growth in the semiconductor industry has been accompanied by an overall rebound in the global semiconductor market, following a downturn in 2023 due to softer demand and higher supply. Research by London-based consultancy Omdia shows that the industry recorded a 26% year-on-year jump in revenue for the first three quarters of 2024 – a significant reversal from the previous year, when revenue decreased by 9% year-on-year to US$544.8 billion for the entire 2023 period.This rebound has also had a positive effect on Singapore’s manufacturing sector, which saw a sluggish first half of the year with two consecutive quarters of contractions, followed by an 11% year-on-year expansion in the third quarter of 2024. This growth was mainly driven by the electronics cluster, fueled by strong demand for smartphone and PC semiconductor chips, according to data from the Ministry of Trade and Industry.However, while the industrial property market has been performing well on the whole, there have been some mixed signals. While rents have continued to rise throughout the year, the growth has slowed compared to the previous year. According to the JTC All Industrial Rental Index, rents have been increasing for 16 consecutive quarters since 3Q2020. However, unlike the 8.9% rental increase recorded in 2023, momentum has progressively slowed. On a quarter-on-quarter basis, the index grew by only 1.7%, 1%, and 0.3%, respectively, in 1Q2024, 2Q2024, and 3Q2024.The plateauing rents could be an indication of more cautious sentiment among occupiers in light of an uncertain macroeconomic environment. JTC data shows that rental transaction volumes have also fluctuated throughout the year, with year-on-year contractions of 9% and 5% recorded in 1Q204 and 2Q2024. According to Catherine He, Colliers’ head of research for Singapore, “with capex and budget constraints, occupiers have been more prudent, valuing the flexibility to adapt to the changing market dynamics.”There has also been some resistance from occupiers in the industrial market, fueled by factors such as consolidation in the third-party logistics and e-commerce space. This has been pointed out by Tricia Song, the head of research for Singapore and Southeast Asia at CBRE, who believes that this resistance from occupiers has been a contributing factor in slowing growth in the industrial property market.However, the extent to which these factors have impacted different segments of the industrial property market has varied. For example, while the multiple-user factory and warehouse segments have stayed relatively resilient throughout the year, registering rental growth across the first three quarters, the single-user factory segment has seen softer demand, resulting in both rents and occupancy slipping by 0.3% quarter-on-quarter in 3Q2024. This marks the first rental decline since 3Q2020. Business park rents have also dipped, falling by 0.2% quarter-on-quarter in 3Q2024, despite a marginal rise in occupancy. This decrease in rents has extended the 0.1% quarter-on-quarter fall recorded in 2Q2024.On the other hand, sales activity in the industrial property market has been more active. After a quiet start to the year, there was an upsurge in activity in the second quarter, with several significant transactions taking place, such as the sale of BHL Factories at 2C Mandai Estate for $74 million in May, the sale of Kian Ann Building at 7 Changi South Lane for $63 million in June, and the sale of a single-user factory at 47 Pandan Road for $36 million in April. This growth continued in the third quarter, with several large deals taking place, including ESR-Logos REIT’s purchase of a 51% stake in an industrial site at 20 Tuas South Avenue 14 for $428.4 million, and Ho Bee Land’s sale of a 49% stake in Elementum – a biomedical sciences development at 1 North Buona Vista Link – to a Brunei sovereign wealth fund for $272 million. This has resulted in a sevenfold jump in industrial property sales to $2.45 billion in 3Q2024, according to Alan Cheong, the executive director of research and consultancy at Savills Singapore. In a November research report, Savills attributed this leap in transactions to improved sentiment, following the US Federal Reserve’s interest rate cut in September, coupled with stronger performance in the manufacturing sector.Despite the strong performance in the last quarter, Cheong believes that these big-ticket industrial deals are likely a one-off occurrence. He expects that there may be one or two more large deals transacted in 2025, but that they would probably be significantly less than $1 billion each.In its 3Q2024 market report published in October, JTC estimated that about 0.2 million sqm of new industrial space is expected to be completed in 4Q2024. Of this supply, around 33% will consist of business park space, followed by single-use factory space (31%), warehouse space (30%), and multi-user factory space (6%). An additional 1.6 million sqm of space is targeted for completion in 2025, almost double the average annual new supply of 0.9 million sqm over the past three years. The new supply in 2025 will mainly consist of single-user factory space (0.74 million sqm) and warehouse space (0.65 million sqm).The influx of new supply, coupled with weaker demand, is expected to result in a supply-demand imbalance in the industrial property market in the short term. In light of this, Colliers is projecting that overall industrial rental growth will likely come in at between 2.5% and 3.5% this year, stabilizing from the 8.9% growth recorded last year. In a similar fashion, price growth is expected to ease from 5.1% in 2023 to between 1% and 2% this year, before dropping further to between 0% and 2% in 2025.Despite the more muted outlook, demand remains healthy for multiple-user factory space, centrally located food factories, and favored locations for logistics space, notes Savills’ Cheong. Savills forecasts rental growth of up to 3% for multiple-use factories, warehouses, and logistics rents this year, before tapering down to between 0% and 2% in 2025. Additionally, the electronics and advanced manufacturing sectors are expected to continue performing well and attracting investments. According to CBRE’s Song, “should the US Federal Reserve continue to cut lending rates in 2025, this could encourage more companies to deploy capex to pursue growth and expansion.”Knight Frank’s Tay is similarly optimistic about the semiconductor industry, which he expects to continue driving demand for industrial real estate in Singapore, supported by the growing requirements for electric vehicle and artificial intelligence projects. The latter is also expected to support data center expansion in Singapore. “Data centers will be an important pillar for the industrial sector, as Singapore plans to increase capacity by at least 300 megawatts as part of the Green Data Center Roadmap that was launched in May 2024,” says Tay.On the other hand, Colliers’ He believes that business park rents will likely continue facing pressure as companies downsize their footprint to cut costs or optimize workspace in response to flexible working arrangements. Savills also anticipates that rents could soften by 3% to 5% in the coming year. However, demand for newer facilities in central locations is expected to remain resilient, providing some support to the segment.…

The real estate market in 2024 had two distinctly different halves. The first half experienced a lackluster period with boutique developments leading the way, and the lowest number of units launched for sale since 1H1996, based on data from Huttons Data Analytics. Sales were also slow, with only 1,889 units sold – the lowest since 1996. The exception was 533-unit Lentor Mansion, which had a 75% take-up rate during its launch weekend in March. However, most other project launches in 1H2024 saw weak sales compared to the previous year.

According to Mark Yip, CEO of Huttons Asia, the market sentiment was tentative and cautious during this time. This could be attributed to the uncertainties in the job market and high interest rates. Buyers were likely waiting for highly anticipated project launches in the latter half of the year, such as Chuan Park and Emerald of Katong.

However, the market saw a shift in sentiment following the Lunar Seventh Month in late July, with the launch of the 276-unit freehold Kassia on Flora Drive. It achieved a 52% take-up rate, setting the stage for strong sales momentum.

The first new project launched after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link, where 53% of its units were sold over the weekend of Sept 21-22 at an average price of $2,719 psf.

In 3Q2024, new home sales increased by 60% quarter-on-quarter, reflecting growing buyer confidence. This could be attributed to the 50-basis point interest rate cut by the US Federal Reserve in September.

In October, the market saw further evidence of increased sales momentum with the private sales launch of Meyer Blue, where over 50% of its 226 units were sold at an average price of $3,260 psf, setting a new benchmark for the prime District 15 area on the East Coast.

The 348-unit Norwood Grand in Woodlands also saw strong performance, with an 84% take-up rate over the weekend of October 19-20. The average price of units sold was $2,067 psf, marking the first time a project in Woodlands surpassed the $2,000 psf threshold.

This was followed by a tidal wave of activity in November, with six new projects launched over a 10-day period, totaling 3,551 units. The surge in activity pushed developer sales for November to 2,557 units – the highest since March 2013. This brought the total developer sales for the first 11 months of 2024 to 6,344 units, with expectations of surpassing the 6,500 units sold in 2023.

According to Chia Siew Chuin, JLL’s head of residential research, this surge in activity was prompted by the approaching year-end festive lull and improved market sentiment. However, she believes any regulatory intervention is unlikely unless there is sustained sales momentum in the first quarter of 2025 and sharp increase in property prices outpacing GDP growth.…

Huttons Asia CEO Mark Yip reveals that projects in the Rest of Central Region (RCR) and Outside Central Region (OCR) were the top-selling new launches of 2024, thanks to strong demand from upgraders and healthy HDB resale market. Among the top 10 best-selling projects, three were launched in November and enjoyed high take-up rates.Emerald of Katong took the top spot, with 99% of its units sold within two days of launch in mid-November. This 846-unit, 99-year leasehold development only has six available units as of December 17. Interested buyers can browse for more information on the latest New Launches, including transaction prices and available units. Chuan Park, a 916-unit development, came in second with 76% of its units sold in a single day on November 10. As of December 17, 79% of the project has been sold. This impressive sales figure was attributed to the lack of new private condo launches in the neighbourhood since The Scala in 2010. The third spot on the list went to Lentor Mansion, a 533-unit development that achieved a 75% sales rate during its launch weekend in March. As of December 17, the project has sold 92% of its units. Nava Grove, a 552-unit project, ranked fourth with a take-up rate of 65% during its launch weekend in mid-November. By December 17, nearly 70% of the project has been sold. Meanwhile, Norwood Grand took fifth place, with 84% of its 348 units sold since its launch in October. Sixth place went to Hillhaven, a 341-unit development that has enjoyed a sales rate of 76% since its debut in January. Coming in seventh is Kassia on Flora Drive, a 276-unit freehold project that has sold 65% of its units to date. In eighth place is Lentoria, a 267-unit development in Lentor Hills Estate that has seen its sales climb from 19% on the first weekend to 66%, with 177 units sold as of March. Up next is Sora, a 440-unit project in Jurong Lake District that has recorded 30% sales since its launch. The tenth spot goes to Meyer Blue, a freehold development that sold 58% of its 226 units through private sales. Four projects launched in 2024 have experienced significant sales momentum in the second half of the year, with each moving more than 200 units. These projects have benefited from the launch of new developments in their respective neighbourhoods, which have drawn attention back to the area. The Continuum, an 816-unit freehold development at Thiam Siew Avenue, emerged as the biggest beneficiary of Emerald of Katong’s launch. The project sold 233 units in 2024, with almost 60% of the sales taking place since November, bringing its total take-up rate to 66% since its launch in May 2023. Tembusu Grand, located across the road from Emerald of Katong, also saw a boost in sales thanks to its proximity to the development. The 638-unit project sold 53% of its units during its launch weekend in April 2024. With most units sold after July when market sentiment improved in the third quarter, Tembusu Grand is now 91% sold as of December 17. Another notable performer is Hillock Green, a 474-unit development in Lentor Hills Estate that has achieved a sales rate of 27.6% during its first weekend of sales in November 2023. In 2024, the project has sold 217 units, bringing its total sales to 359 (76%). The project also received a boost from the launches of Lentoria and Lentor Mansion in March, which renewed attention in the Lentor Hills Estate. Lastly, Pinetree Hill, 520-unit development, has seen strong sales since launching its second phase of units in September. This year, the project has sold 208 units, with cumulative sales hitting 374 (72%). It also enjoyed a boost from the nearby launch of Nava Grove in November, which helped drive interest in the District 21 residential enclave.…

Singapore’s built environment is heading towards a significant transformation as we approach 2025. The facilities management (FM) sector is facing mounting pressure to adapt to the changing regulatory landscape, cost constraints, and technological advancements. These three factors will play a crucial role in shaping the future of FM and driving its sustainability: the mandatory energy improvement regime, the impact of rising temperatures on energy costs, and the growing trend towards adaptive reuse in construction.

The Mandatory Energy Improvement regime, which will take effect in the third quarter of 2025, will require energy-intensive buildings to undergo energy audits and implement energy-efficiency improvement measures. This mandate applies to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area of over 5,000 sq m. These buildings are expected to reduce their energy usage intensity by 10% from pre-energy audit levels, a target that can be achieved by implementing the right strategies.

To comply with this mandate, asset owners will need to take a long-term view on capital expenditures for energy-efficient systems. The energy audits will provide valuable data on energy consumption patterns, performance gaps, and strategies for prolonging the lifespan of assets, reducing operating costs in the long run, and contributing to a more sustainable built environment. Building owners can also leverage grants to cover the costs of energy efficiency upgrades.

One example of a smart and sustainable facility management model is Temasek Polytechnic, which embarked on a digital transformation of its operations in 2021. By digitizing campus operations and implementing a suite of solutions that integrate facility booking, maintenance work orders, crowd management, and temperature control measures, Temasek Polytechnic has achieved efficiency and sustainability in its operations. This approach can serve as a model for other buildings and facilities to follow. With the help of digitalization, data analytics, and sustainable practices, the FM sector can drive sustainability, reduce costs, and ensure long-term operational success.

The push towards sustainability is also being driven by climate disclosure obligations, which will affect all listed and large non-listed companies with revenues of at least $1 billion and total assets of at least $500 million by 2027. This will lead to increased investments in predictive technology to mitigate the impact of rising temperatures on energy costs. Air conditioning and mechanical ventilation systems are already a significant contributor to operational costs, accounting for around 60% of total energy expenses in many buildings. By optimizing energy systems through energy-efficient solutions such as energy recovery systems or thermal energy storage, building owners can mitigate rising energy costs. City planners and building owners can also utilize web-based geospatial IT to identify flood-prone areas and areas of extreme heat to develop a comprehensive operational plan that considers predicting extreme weather events to mitigate the risk of equipment failure and downtime, optimize chiller plant operations, and reduce operational carbon levels.

The increasing construction costs are also prompting a shift towards adaptive reuse, with the rate of redevelopment in Singapore accelerating over the past five years. This trend is driving the adoption of smart design and engineering practices, including the use of collaborative common data environments to benchmark construction and operational costs. Platforms such as Podium, a proptech platform, are helping to connect developers, designers, and the supply chain to deliver high construction productivity and promote sustainable building practices. By consolidating data from multiple sources, stakeholders can access valuable information on design, engineering plans, construction materials, and components throughout the building cycle. This data can help inform decisions on whether to redevelop or reuse structural elements, thus minimizing embodied carbon levels. Post-construction, Podium can also integrate with other operational platforms to track building performance metrics such as energy, waste, water, indoor air quality, and occupancy trends to drive operational carbon reduction goals.

Smart buildings can mitigate further cost pressures by maximizing the lifespan of capital-intensive equipment, such as ACMVs, lifts, and air handling units. By implementing a data-driven, long-term life cycle approach that prioritizes energy savings, building owners can offset the energy tariffs from the capital expenditure on these assets. Sensors can be deployed to analyze vibrations and detect wear or impending failure of equipment. AI-powered smart monitoring systems can also track the performance of various components in the building’s M&E system and provide granular data to help asset owners make informed decisions on replacements or retrofits. This data-driven approach can help building owners reduce downtime, improve equipment efficiency, and comply with regulations and sustainable financing requirements.

In conclusion, as Singapore’s built environment undergoes transformation, the FM sector must embrace sustainability, digitalization, and data analytics to stay competitive and meet the evolving demands of the industry. With the right strategies and technology, the sector can drive efficiency, reduce costs, and ensure long-term success in the ever-changing landscape.…