EdgeProp Singapore’s first Property Market Outlook event of 2025 draws strong crowd at Elta
By Timothy Tay and Ashley Lo
/ EdgeProp Singapore |
The Property Market Outlook event was held at the Elta sales gallery on Feb 16 (Picture: EdgeProp)
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The possibility of new property cooling measures, incoming housing supply from government land sale (GLS) sites and Build-To-Order (BTO) launches, as well as Budget 2025 announcements impacting the real estate market, were among the top discussion points at EdgeProp Singapore’s Property Market Outlook event on Sunday, Feb 16.
A panel of three industry experts comprising Alan Cheong, executive director of research and consultancy at Savills Singapore; Wong Xian Yang, head of research, Singapore and Southeast Asia at Cushman & Wakefield; and, Song Seng Wun, Singapore economic advisor at CGS International. The panel discussion was moderated by EdgeProp Singapore CEO Bernard Tong.
The EdgeProp Singapore-organised event took place at the Elta sales gallery, a new 501-unit project jointly developed by MCL Land and CSC Land Group. The sales gallery opened for public preview on Feb 7.
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In January, the government indicated that it was “not adverse” to implementing more property cooling measures and that it was not yet time to roll back on existing measures. Developers sold 1,083 new private residential units (excluding executive condos) last month, jumping 256% on a yearly basis.
If future cooling measures are implemented, it is likely that the government will select an intervention which will apply uniformly across the residential market, says Cheong. The panelists discussed the possibility that new measures could also hone in on the HDB resale market.
The HDB resale market forms the “floor” of the housing market in Singapore, and a surge in price growth there will add upward pressure on prices in the private housing segment, says Wong. He adds that the government may consider adjusting the seller’s stamp duty (SSD) and introduce tougher loan restrictions.
On the other hand, Tong pointed out that the government will inject a strong pipeline of GLS and BTO supply into the market to meet housing demand. The 1H2025 GLS programme consists of 10 sites on the Confirmed List, which could yield 5,000 new homes, and HDB plans to offer 19,600 BTO flats in 2025.
Under the new BTO classification, newly launched Prime and Plus BTO flats will take about 14 years to enter the resale market, and the impact from these developments on prices will only be felt much later on, says Cheong. Wong adds that prices in the resale market tend to follow project completions and HDB estates completing their minimum occupation period (MOP) rather than the pipeline of GLS sites up for tender each year. “In terms of prices, project completions, rather than GLS supply, are more likely to affect prices,” says Wong.
Still, all three panelists note that the recent successes in the new launch market indicate strong buyer confidence for projects hitting the market this year. Elta drew about 4,500 visitors during the first three days it was open to the public. Other new launches so far this year include The Orie and Bagnall Haus, which experienced strong selling rates of 86% and 63% at launch, respectively.
Song of CGS opines that prospective buyers of new projects are still positive they can make a profit when they eventually sell their properties. For Singaporeans, this can be attributed to a stronger job market as higher-paying jobs have increased property owners’ confidence to upgrade, he says.
The panel also discussed Budget 2025 and what, if any, measures could influence the property market this year.
Song notes Singapore has seen a relatively strong economic recovery since the Covid-19 pandemic-induced recession. With 2025 being an election year, he believes that Singaporeans can expect more handouts funded by government surpluses stemming from healthy government revenue collections in the past three years.
The panellists also took questions from the audience. Some participants questioned whether the residential property market is in a “euphoric” phase.
Cheong commented that the sense of market exuberance will likely subside as developers strategically time the launch of new projects. He adds that several launch-ready projects are in neighbourhoods that have not seen a new launch in several years. “If a specific location does not see a new launch in around five or six years, demand tends to build up over that time,” he says.
Some investors asked for the panelists’ opinion on the rental market this year, which has slowed since its peak two years ago. Market data indicates that while the total number of expatriates in Singapore has declined in the past year, 2024 saw an uptick in the volume of rental transactions, says Cheong.
He adds that falling rents likely encouraged some renters to stop flat-sharing and to find their own accommodation. However, this is offset by layoffs among technology and finance companies this year, which will likely moderate rental price growth this year, he says.
During the event, a session of EdgeProp’s Master Plan Master Class was presented by Tong, who covered upcoming transformation plans in Clementi and Jurong East.
He noted that the completion of the second phase of the Cross Island Line (CRL) will add a new MRT station (West Coast) and turn the existing Clementi station into an interchange. “Historically, MRT interchanges tend to have a positive impact on surrounding property prices,” says Tong.
Transformation plans in Clementi include the redevelopment of Clementi Stadium and the installation of more than 6.6km of cycling paths throughout the area.
Housing demand in Clementi is also expected to benefit from the progressive development of the Jurong Lake District and the new jobs created in the nearby Tuas megaport, Tuas Biomedical Park, Jurong Island, and Jurong Innovation District.
Data compiled by EdgeProp Singapore shows that the average age of existing condos in Clementi is about 17 years. Tong observes that recent new projects in Clementi have reaped strong capital gains over the years. This includes Clavon (24% uptick since launch) and The Clement Canopy (43% price growth since launch) — both projects are next to Elta.
The data comes from EdgeProp Singapore’s suite of property tools that could help owners, buyers, and sellers understand market and price trends, such as HDB resale prices, analytics of profitable transactions, and upcoming GLS sites.
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