Condo Rental Expected to Increase Amid Construction and Labour Market Recovery, Private Property Resale Volumes Dip Due to Interest Rate Hike, and More

15 Aug 2022

9th August to 15th August 2022

Last month, transaction volumes for condos for rent increased 5.3% month-on-month to 4,809 units in July. However, the 1.2% growth in condo resale prices, coupled with rising mortgage rates, have resulted in a 6.7% month-on-month dip in transaction volumes. Meanwhile, on the commercial side, Singapore defied a sharp region-wide decline as commercial property deals rose 74% to US$5.6 billion (S$7.72 billion) in the second quarter of 2022 – its best quarter ever.


1) En bloc market gains momentum, but faces more challenges in 2H 2022

The en bloc sales market has been gaining momentum, with 12 collective sales transactions amounting to nearly $3.5 billion as of July this year, surpassing the $2.2 billion from the 11 deals registered for the whole of 2021, reported TODAY.

But with the rising interest rate environment, analysts do not expect the uptrend to hit the levels seen in 2018 when transaction volumes exceeded $10 billion.

“The second half of this year will see more challenges for collective sales as interest rates climb to its highest in the last decade,” said PropNex Realty’s Head of Investment and Collective Sales Tracy Goh.

“Development sites are big-ticket items, so developers are showing more caution in acquiring sites and we foresee only sites that are reasonable in land prices will get the developers’ attention.”

Cushman & Wakefield’s Head of Research Wong Xian Yang noted that developers also have to deal with the risk of a recession occurring during their project’s expected launch date.


2) Golden Mile Complex obtains sale order

Golden Mile Complex crop

Edmund Tie announced that the en bloc sale of Golden Mile Complex has obtained the sale order from the Strata Titles Board on 3 August 2022.

The marketing agent noted that the legal completion is set in November 2022, while the vacant possession of the iconic development will be handed over to the developers in May next year.

In May, the Golden Mile Complex was sold to a consortium comprising Perennial Holdings, Sino Land and Far East Organization for $700 million.

Featuring 718 strata units, the development is the first “modern, large-scale strata titled development to be gazetted for conservation due to its historical and architectural significance”.

“Depending on both the property type and unit size, owners will receive gross sale proceeds ranging from approximately $119,000 to $31 million,” said Edmund Tie.


3) Former school campuses in Upper Changi, Teban Gardens to make way for homes

Three former school campuses within Upper Changi and Teban Gardens – Changkat Changi primary and secondary schools as well as Pandan Primary – will be demolished to make way for housing, reported The Straits Times.

HDB documents showed that the Housing Board is seeking tree health experts for demolition works at 7 Jalan Tiga Ratus in Upper Changi and 700 West Coast Road in Teban Gardens.

The Jalan Tiga Ratus site, where the Changkat Changi schools used to be, was zoned for educational use under the 2018 Master Plan. However, it was later identified by URA during its long-term plan review for public housing and amenities.

The Jalan Tiga Ratus plot is around 2.8ha or the size of about four football fields, while the Teban Gardens, which houses the Pandan Primary, is around 1.8ha or the size of around 2 1/2 football fields.

Nicholas Mak, Head of Research and Consultancy at ERA Realty, said both sites are ideal for mixed-use residential and commercial developments.


4) Sutton Place goes en bloc for $285mil

Sutton Place crop

Source: Knight Frank

Sutton Place, a five-storey residential development at 24, 26 and 28 Farrer Road, has been put up for collective sale with an indicative price of $285 million, revealed Colliers.

Including the $20.89 million development charge, the $285 million price works out to a land rate of $2,052 per sq ft per plot ratio (psf ppr).

The 44-unit development occupies a 93,183 sq ft site that is zoned for “Residential” use under the 2019 Draft Master Plan with an allowable gross plot ratio of 1.6. The site has a development baseline of about 130,201 sq ft or around 87% of the allowable gross floor area (GFA), providing prospective developers with a buffer for any increase in development charge rates.

“In addition, with the 7% bonus GFA under the Balcony Incentive Scheme, prospective developers could increase the gross floor area to approximately 159,531 sq ft. After adding the additional development charge payable of about $32,424,930 to intensify the overall GFA, the land price will be further reduced to $1,990 psf ppr,” said Colliers.

The tender for Sutton Place closes on 15 September 2022.


5) New SERS package may not be enough for Ang Mo Kio residents

Overall AMK SERS

Source: Google Maps

Huttons Asia urged the Housing and Development Board (HDB) to review its policy for the Selective En bloc Redevelopment Scheme (SERS), noting that the new package offered for Ang Mo Kio residents may “never be enough”, reported Singapore Business Review.

Ang Mo Kio residents were informed that 10% of Central Weave @ AMK Build-to-Order (BTO) units would be set aside for them.

Huttons pointed out that while the new package may appease residents affected by SERS, it may not be enough for them. It added that residents may question why the offering is limited to just 10% and why the BTO flats in Bukit Merah were not included in the offer.

Residents may also see the other BTO locations within non-mature estates “as worse off for them”.

Related article: Aug 2022 HDB BTO Launch Review: Ang Mo Kio, Bukit Merah, Choa Chu Kang, Jurong East, Tampines, Woodlands


6) Trendale Tower in Cairnhill up for collective sale at $178mil

Source: Google Maps

Source: Google Maps

Trendale Tower, a freehold residential site at 79 Cairnhill Road, has been put up for collective sale with a guide price of $178 million.

This translates to $2,386 per plot ratio (ppr) after factoring in the 7% bonus gross floor area (GFA) for balconies, said exclusive marketing agent Savills Singapore. It noted that the development charge payable for the 7% bonus space is around $6.4 million.

Featuring 18 apartment units, the 20-storey development is nestled on a 21,708 sq ft site zoned for “Residential” use under the 2019 Master Plan with an allowable gross plot ratio of 2.8 and a height control of up to 36 storeys.

Savills revealed that Trendale Tower has a verified GFA of around 72,691 sq ft or a plot ratio of 3.348.

“A pre-application feasibility study is also not required by the Land Transport Authority for the site redevelopment of up to 103 apartments,” it added.

The tender for Trendale Tower closes on 13 September 2022.


7) Condo rental demand to increase amid recovery in the construction sector, labour market

Corals at Keppel Bay-crop

Property analysts expect the recovery in the construction sector and the labour market to boost demand in rents for condominiums, reported Singapore Business Review.

“Rents for condo and HDB are expected to rise albeit at a moderate pace for the rest of 2022,” said Mark Yip, Chief Executive Officer of Huttons.

Singapore saw transaction volume for condo rents increase 5.3% month-on-month to 4,809 units in July. Yip attributed the hike to enquiries from expats as companies hire more foreign employees.

Related article: Top 10 Condos for Rent in Q2 2022: Why Are These Properties So Popular in Singapore?

Experts from One Global Group see the condo rental market remaining firm, on the back of an increase in completed projects.

OrangeTee analysts noted that more tenants are accepting rental hikes due to the limited supply of housing stock.

“Foreigners and PRs who have just returned from overseas have to accept the higher rental costs as they do not have other housing options,” it said.

These align with the PropertyGuru Singapore Property Market Report Q3 2022, which saw rental prices hit a 16-quarter high. For non-landed private properties, there was a preference for Rest of Central Region (RCR) and Central Region (CCR) properties.


8) Condo resale volume declines amid hike in interest rates

The hike in interest rates as well as the 1.2% growth in resale prices have pushed buyers out of the resale market. Resale volume declined 6.7% month-on-month in July.

Huttons pointed out that the three-month SORA rose 0.5% in July, while the interest rate for fixed-rate loan exceeded 3%, reported Singapore Business Review.

Although sales volumes dipped, resale prices rose 1.2% in July.

Buyers also took well to new projects launched in the past quarter, namely Piccadilly Grand and Liv@MB.

OrangeTee noted that there is also a mismatch in price expectations between sellers and buyers.

“As overall prices have already risen for 24 consecutive months, which is quite a long time, and there are rising uncertainties surrounding the global economies and increasing interest rates, some buyers may not be willing to match some sellers’ asking prices. On the other hand, sellers have no pressure to cut prices,” it said.

One Global Group expects the resale volumes to move slower in August amid the Hungry Ghost festivities.

“We can expect buyers to likely gravitate towards more affordable options in the resale market to broaden their selection of homes due to the new benchmark prices established by new launch properties in the suburban region and the choppy state of interest rates,” said the expert.

That said, do not be surprised if activities continue throughout the Hungry Ghost festival period – our data shows that the property market has bucked the trend in the past few years.


9) Singapore commercial property deals rose 74%, defying the regional slump

Fico Group's commercial buildings

Singapore defied a sharp region-wide decline as commercial property deals rose 74% to US$5.6 billion (S$7.72 billion) in the second quarter of 2022 – or its best quarter ever, reported The Straits Times citing MSCI Real Assets.

Commercial real estate investment across the region declined 24% to US$45.1 billion over the same period last year.

“Singapore was the star in Asia-Pacific’s gloomy second quarter,” said MSCI, noting that global investors have been the driving force behind the city-state’s stellar performance.

Demand for property in Singapore was broad-based, with Central Business District (CBD) offices receiving the most investment, while hotels and shopping centres performed well also.

“Commercial real estate investment in Singapore went quiet during each of the previous two downturns, but 2022 has proven to be third time lucky with a record level of activity so far,” said MSCI’s Head of Asia Real Assets Research Benjamin Chow.

“While the broader regional slowdown has largely been attributable to fall-off in smaller deals, Singapore’s institutionally dominated market has shrugged off the macroeconomic headwinds.”


10) Siakson Building on sale for $30mil

siakson building

Source: Google Maps

Siakson Building, a five-storey commercial development at 3 Miller Street, has been put up for sale via expression of interest (EOI) with a guide price of $30 million.

Exclusive marketing agent CBRE noted that the price works out to about $3,971 per sq ft (psf) based on the maximum gross floor area of about 7,554 sq ft.

Located at the junction of Miller Street and Victoria Street within the City Hall submarket, the development has a total floor area of about 5,000 sq ft and a land area of about 1,798 sq ft. With a 999-year land tenure that commenced in 1827, the site is zoned for “Commercial” use under the 2019 Master Plan with a plot ratio of 4.2.

Related article: Guide to Buying Commercial Property in Singapore

“We are confident that the property will garner strong interest from both astute investors and owner-occupiers,” said Joshua Giam, Associate Director of Capital Markets, Singapore at CBRE.

The EOI exercise for Siakson Building closes on 8 September 2022.


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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:


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