Month: March 2025

Source: Capitaland Group

CapitaLand Group and Microsoft have signed a memorandum of understanding (Mou) to utilize artificial intelligence (AI) and advanced technologies in their operations. This collaboration will enable CapitaLand to join Microsoft Singapore’s AI Pinnacle Program, giving them access to Microsoft platforms, services, and solutions to improve customer engagement and operational efficiency in their funds, investments, retail, lodging, and development businesses.

Through this partnership, CapitaLand will explore potential areas of collaboration for infrastructure development and utilize Microsoft’s Azure cloud computing platform to enhance their data center design and products for CapitaLand Investment. The integration of AI, data analytics, and machine learning will also support CapitaLand’s digital and business transformation efforts.

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Singapore has become a sought-after destination for investors looking to enter the real estate market. Its robust economy, stable political climate, and high standard of living make it a prime location for investment opportunities. For those interested in the global financial hub, Singapore condos provide an ideal investment option. In this article, we will explore the benefits of investing in a Singapore condo, important factors to keep in mind, and the necessary steps to take to secure this type of investment.

One of the main draws of Singapore condos for investors is their convenience. These properties are strategically located in prime areas, providing easy access to major business districts, transportation hubs, and popular tourist destinations. This prime location makes condos highly desirable for both renters and buyers, promising a continuous demand and potential for high rental returns.

In addition to their convenient location, condos in Singapore come with a multitude of amenities catering to modern lifestyles. These can range from swimming pools and gyms to BBQ pits and round-the-clock security. The presence of such facilities adds value to the property, making it an attractive choice for both investors and residents.

High potential returns is another major factor to consider when investing in a Singapore condo. As the city continues to develop at a rapid pace, the real estate market has seen consistent growth in property values. With a high demand for condos, they offer a secure and profitable investment opportunity.

However, before making any investment in a Singapore condo, there are a few important factors to keep in mind. Among them is the location of the property; it is crucial to conduct thorough research and ensure that it is located in a desirable and stable area. It is also essential for foreign investors to understand the regulations and taxes surrounding foreign property ownership in Singapore.

The first step in investing in a Singapore condo is to determine your budget and financial goals. This will help narrow down your options and ensure that you make a sound investment. Enlisting the help of a reputable real estate agent can also be beneficial as they can guide you through the buying process and provide valuable insights into the market.

After identifying a suitable property, the next step is to conduct a thorough inspection and due diligence. This involves examining the property for any defects, understanding the rules and regulations of the condo development, and reviewing the property’s financial records.

Lastly, once all necessary checks have been completed, it is time to make an offer and negotiate the purchase price. It is crucial to have a clear understanding of the market and the value of the property to avoid overpaying.

To sum it up, investing in a condo in Singapore offers a plethora of advantages. From convenience and amenities to high potential returns, it is no surprise that condos are a top choice for both local and foreign investors. By carefully considering important factors and taking the required steps, a Singapore condo can be a valuable addition to any investment portfolio. So, invest in a Singapore condo now and reap the benefits of this ideal investment option.

Quah Ley Hoon, Group Chief Corporate Officer of CapitaLand Investment, expressed excitement for this collaboration, stating that AI will play a crucial role in shaping their future operations and creating value for stakeholders.

Additionally, CapitaLand Investment (CLI) has also signed an MoU with the Singapore Business Federation (SBF) to develop a framework for digitalization and integration of AI in CLI’s retail ecosystem. This partnership will facilitate the adoption and proof of concept for AI, data analytics, and cybersecurity solutions to enhance business efficiency and competitiveness. It will also focus on developing AI-focused competencies and skills among retail tenants.

With these strategic collaborations, Capitaland Group aims to stay ahead of the curve in their digital transformation journey and continue creating value for their stakeholders.…

For those interested in investing in Singapore’s thriving real estate market, it is crucial to understand the regulations and limitations surrounding property ownership for foreigners. While purchasing condominiums is relatively straightforward, owning landed properties is subject to stricter guidelines. It should also be noted that foreign buyers must pay the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their initial property purchase. Despite this added expense, the stability and potential for growth in the Singapore real estate industry continue to attract foreign investors. Stay informed about the latest opportunities by keeping a look out for upcoming new condo launches at New Condo Launches.

rateNow, CapitaLand Group has teamed up with tech giant Microsoft for a partnership that will see them utilizing cutting-edge artificial intelligence (AI) and advanced technologies in their business operations. The agreement, in the form of a memorandum of understanding (MoU), will allow CapitaLand to join Microsoft Singapore’s AI Pinnacle Program, granting them access to Microsoft’s platforms, services, and solutions.This collaboration between CapitaLand and Microsoft will focus on enhancing customer engagement and streamlining operational processes across CapitaLand’s various businesses, including its funds, investments, retail, lodging, and development sectors. As part of this, the two companies will explore potential opportunities for collaboration, such as leveraging Microsoft’s Azure cloud computing platform to develop data center designs and products for CapitaLand Investment, as well as incorporating AI, data analytics, and machine learning to further CapitaLand’s digital and business transformation efforts.ADVERTISEMENTCapitaLand Investment’s Group Chief Corporate Officer, Quah Ley Hoon, highlights the importance of this partnership to CapitaLand’s digital transformation journey, stressing how AI will play a crucial role in shaping the company’s future by optimizing operational efficiency and delivering value to stakeholders. In addition to this collaboration, CapitaLand Investment has also signed an MoU with the Singapore Business Federation (SBF) to establish a framework for digitalization and AI integration across its retail ecosystem, furthering their efforts to stay at the forefront of innovation in the industry.As part of this MoU, CapitaLand Investment and SBF will work together to encourage the adoption and proof of concept for AI, data analytics, and cybersecurity solutions within CapitaLand’s retail ecosystem. They will also focus on developing AI-focused competencies and skills among retail tenants to increase their business efficiency and competitiveness. These initiatives reflect CapitaLand’s commitment to creating a truly digitalized and innovative company, continually seeking ways to improve their operations and deliver value to their stakeholders.…

A prime opportunity has arisen for potential buyers to acquire a diverse collection of 14 retail shops located at Peninsula Plaza, Sim Lim Square, and Far East Plaza. This rare offering is being marketed by ERA Realty Network, with a total asking price of $26.46 million.

A pair of units, boasting a combined strata area of approximately 990 sq ft, are situated at Peninsula Plaza – a 999-year leasehold mixed-use development on North Bridge Road. These ground-floor shops are being offered for $8 million, or $8,081 psf.

Completed in 1980, Peninsula Plaza stands tall at 30 storeys and comprises a six-storey retail podium, as well as a 24-storey office tower. Its enviable location is directly connected to the City Hall MRT Interchange Station, providing convenient access to both the North-South and East-West lines.

Meanwhile, at Sim Lim Square, 11 strata units spanning a total strata area of 5,081 sq ft are up for grabs. These units are zoned for commercial use and are all located on the fifth floor. They come with a 99-year lease that started in April 1983, with approximately 57 years remaining. Currently, most of the units are tenanted. The shops offer a direct view of the mall’s main atrium and are easily accessible via escalators and lifts.

These units are available for purchase either collectively or individually, with prices starting from $840,000 per unit. Alternatively, the entire portfolio is available for $15.855 million, which ERA has priced at a 20% discount from its latest valuation. This translates to a price of $3,120 psf on the strata area.

Located on Rochor Canal Road in District 7, Sim Lim Square is a strata-titled commercial development that was completed in 1987. It comprises 492 commercial units spread across six floors and two basement levels.

Lastly, the remaining retail unit for sale is situated on the second floor of Far East Plaza along Scotts Road. This freehold unit offers a strata floor area of 355 sq ft and is located near the escalator at the mall’s entrance. It is priced at $2.6 million, or $7,324 psf.

In order to invest successfully in Singapore, it is crucial for foreign investors to have a comprehensive understanding of the various regulations and restrictions surrounding property ownership. Unlike landed properties that have stricter ownership rules, foreigners are typically allowed to purchase condos with fewer limitations. However, foreign buyers are required to comply with the Additional Buyer’s Stamp Duty (ABSD) which stands at 20% for their first property purchase. Despite this additional cost, the stability and potential for growth in the Singapore real estate market remains a strong magnet for foreign investment. Singapore Projects are constantly drawing attention from international investors due to their attractive prospects.

Built in 1982, Far East Plaza is a freehold mixed-use development consisting of a five-storey retail mall and serviced apartments. Its prime location is within walking distance to Orchard Road MRT Station.

Donald Goh, director of capital markets and investment sales at ERA, believes that these properties will attract interest from both investors and business owners. He points out that despite the challenging market conditions, there were still 28 and 33 strata retail transactions recorded in the Downtown Core and Orchard Planning Area last year, respectively. Goh adds, “A ground floor unit at Lucky Plaza was recently sold for $15,242 psf, while units at Orchard Towers and The 101 were sold for $5,309 psf and $5,657 psf, respectively. This serves as a testament to the enduring appeal of strata retail shops as an attractive investment.”

The EOI exercise will close on April 17 at 3pm. For more information, interested parties can check out the latest listings for Peninsula Plaza properties.…

In a recent development, GuocoLand has successfully secured a green club facility worth $367.1 million from DBS Bank for its upcoming project in Faber Walk. This residential land parcel was awarded to the company, along with its joint venture partners TID and Hong Leong Holdings, through a Government Land Sale tender in November last year. The winning bid for the 277,659 sq ft site was $349.86 million, or $900 psf per plot ratio.

Investing in a condo in Singapore can offer numerous benefits, with capital appreciation being a major advantage. Singapore’s geographical location as a prominent business hub, combined with its robust economic foundation, creates a sustained demand for real estate. In recent years, the property market has consistently shown an upward trend, especially for condos in prime areas. By purchasing properties at the opportune moment and holding onto them for extended periods, investors can reap considerable capital gains. With the addition of Singapore Projects, the potential for capital appreciation in the condo market is further elevated.

The Faber Walk development will feature 399 residential units spread across nine low-rise blocks. It is located in the coveted landed private residential enclave of Faber Walk, adjacent to the well-established Faber Hills estate. The project boasts of a serene waterfront view, being situated right next to the Pandan River and the upcoming Old Jurong Line Nature Trail.

The $367.1 million green facility for the Faber Walk project complements GuocoLand’s commitment to sustainability across all its developments. This includes the renowned Guoco Tower on Wallich Street, Guoco Midtown on Beach Road, Midtown Modern on Tan Quee Lan Street and Lentor Mansion in Lentor Gardens.

The Faber Walk development is expected to achieve the prestigious BCA Green Mark Platinum (Super Low Energy) award, along with the Maintainability badge, upon completion. According to Dora Chng, the residential director of GuocoLand, the company aims to leverage its end-to-end value chain capabilities to create sustainable developments with biophilic designs for its residents, following the success of its previous launches like Lentor Modern and Lentor Mansion in the Lentor Hills estate.

The company’s next project is a joint development with Hong Leong Holdings, consisting of 941 residential units, on the Upper Thomson Road (Parcel B) site. This project, which was awarded in April last year, is expected to be launched in the second half of this year. With its focus on sustainability and a proven track record of successful projects, GuocoLand continues to be a leading developer in the industry.…

Investing in a condo has many advantages, one being the opportunity to use the property’s value for future investments. Numerous investors use their condos as collateral to secure extra financing for new ventures, consequently diversifying their real estate holdings. This tactic has the potential to increase profits, but it’s essential to have a solid financial plan in place and carefully consider the potential consequences of market fluctuations. Condos offer a unique opportunity for investment and growth in the real estate market.

Sentosa Cove house with Gaggenau and Sub-Zero appliances for rent at $35K The launch of Aurea in the highly sought-after Core Central Region (CCR) has set a new benchmark in luxury residential developments, with an impressive 30% of its 78 units sold at an average price of $3,005 psf in just one weekend.Located in the prime Downtown Core precinct, Aurea is a joint project by renowned developers Far East Organization and Perennial Holdings. The 45-storey project was designed by DP Architects with a unique “hanging garden concept”. It is also the first new private condominium to be connected to a mixed-use development that has been sold en bloc and conserved, now known as Golden Mile Singapore.A total of 23 units were sold in the first phase of the launch, which included a mix of two- to four-bedroom apartments from levels 4 to 16. This translates to an impressive 30% sales rate based on the 78 units released for sale. Aurea boasts a total of 188 units across its 45 storeys, with units ranging from two- to six-bedrooms.The overwhelming interest in Aurea is a testament to its prime and highly sought-after location in the CCR, known for its luxurious homes and central location. The joint developers have reported that 83% of buyers are Singaporeans, with the remaining 17% being permanent residents from Malaysia. This accounts for about 12.2% of total units, which is a strong sales performance considering the current market situation.According to Mark Yip, CEO of Huttons Asia, CCR projects typically sell between 10% to 30% of their units during the launch weekend as they tend to attract fewer HDB upgraders compared to suburban projects. However, the take-up rate for Aurea can be attributed to its unique design, prime location and strong lifestyle and investment potential.Proprietary CEO Ismail Gafoor notes that Aurea’s sales are encouraging, especially in the current market where sales for CCR projects have been lacklustre since the tightening of the Additional Buyer’s Stamp Duty (ABSD) measure in April 2023. He explains that the doubling of the ABSD rate for foreigners to 60% has significantly cooled interest in CCR homes. In fact, developers had the lowest sales recorded for new CCR private homes in 2024, with only 378 units sold – a sharp decline of 74% from 1,454 units sold in 2023.Nevertheless, Gafoor believes that the take-up rate for CCR homes will progressively improve, as CCR projects tend to attract interest over a longer period of time, usually selling units steadily over many months, unlike RCR and OCR projects which tend to achieve higher sales numbers during their launch weekend. He also notes that CCR homes are targeted towards a niche market seeking luxury living and finer experiences, thereby accounting for the gradual sales momentum.The joint developers have reported that the two- and three-bedroom apartments in the Prestige Collection have been the most popular among buyers, accounting for 74% of sales. These apartments are known for their functional and well-designed spaces, while also offering strong investment potential for owners.The remaining units in the Sky Villa Collection comprise of 18 five-bedroom apartments, with sizes of up to 3,251 sq ft, as well as two six-bedroom penthouses, with sizes of up to 8,816 sq ft. These large-format homes, located in the downtown area, are highly sought-after by buyers, with units offering expansive balconies, providing views of both Marina Bay and Kallang Basin.Many experts believe that the narrowing price gap between CCR and RCR residential properties in recent years is driving an increase in interest and sales for luxury projects such as Aurea. According to Ken Low, managing partner of SRI, the price difference between CCR and RCR properties used to average around 40% in the last 10 years, but it has now narrowed to just 20%. This trend, together with the expected rise in luxury project launches this year, is expected to drive up prices for CCR homes.In conclusion, Aurea’s strong sales performance during the launch weekend is a testament to its prime location and unique design, which sets a new benchmark for luxury living in the CCR. With ongoing urban renewal efforts in Singapore, such as the Greater Southern Waterfront and Kallang Alive master plan, combined with the completion of major infrastructural projects, Aurea is primed for strong growth and return on investment for its buyers.…

Are ECs still a good buy?On March 8, developer Sim Lian Group sold 682 units (90%) of its 760-unit executive condominium (EC), Aurelle of Tampines, located at Tampines Street 62. The average price achieved for these units was $1,766 psf.

Sim Lian Group’s executive condominium project, Aurelle of Tampines, located at Tampines Street 62, saw an impressive launch on March 8 with 90% of its 760 units sold. The average price of the units sold was $1,766 psf.

According to Sim Lian Group, all the four- and five-bedroom units have been taken up, and 84% of the three-bedroom units have also been sold. The executive director of Sim Lian Group Limited, Kuik Sing Beng, noted that the strong response to the project showcases the high demand for well-designed and conveniently located homes like Aurelle of Tampines in Singapore’s most connected regional centre.

For the latest updates on available units and prices for Aurelle of Tampines, interested buyers can refer to the official website.

PropNex CEO Ismail Gafoor commented that the average price of $1,766 psf has set a new benchmark launch price in the EC market, and the 90% launch take-up rate is the highest for a new EC project since the 531-unit Hundred Palms Residences was sold out on launch day in July 2017 at an average price of $841 psf.

Sim Lian also announced that the 30% quota allocated for second-timers was reached by 3.15 pm on the launch day. This quota will be lifted a month after the launch date.

Singapore is a city characterized by an impressive skyline and state-of-the-art infrastructure. A popular housing option in this bustling metropolis is the condo, strategically located in desirable areas. These modern residences offer a perfect combination of opulence and convenience, making them desirable to both locals and expatriates. With a wealth of facilities including swimming pools, fitness centers, and top-notch security services, condos provide a luxurious and comfortable lifestyle for their residents. This makes them a highly sought-after choice for potential tenants and buyers. Moreover, the presence of these amenities also benefits investors, as they can expect higher rental returns and a steady rise in property values in the long run. To capitalize on the growing demand for desirable properties, Singapore Condo is an ideal investment choice.

According to Eugene Lim, key executive officer at ERA Singapore, the take-up rate could have been even higher if there was no quota limit on second-timers. However, he added that these buyers will have another opportunity to ballot for a unit a month after the launch date.

Mark Yip, CEO of Huttons Asia, suggested that the government may want to increase the quota for second-timers buying an EC, aligning it with the recent increase in quota allocation for second-timers buying three-room and larger BTO flats.

PropNex’s Gafoor noted that about 68% of the buyers opted for the Deferred Payment Scheme (DPS) to finance their property purchases, while the remaining balance chose the Normal Payment Scheme.

Before the launch, more than 2,200 electronic applications (e-apps) were received after the project opened for preview on February 21. This is the highest e-app figure since Copen Grand, the first EC launched in Tengah, which attracted 2,300 e-apps in 2022.

Aurelle is the second EC to be launched in Tampines North, following the joint development of Qingjian Realty, Santarli Realty, and Heeton Holdings, the 618-unit Tenet. Since its launch in December 2022, Tenet has seen a take-up rate of 72% and is fully sold at an average price of $1,348 psf.

Prices at Aurelle of Tampines start from $1.417 million ($1,687 psf) for a three-bedroom unit measuring 840 sq ft; $1.689 million ($1,651 psf) for a four-bedroom unit measuring 1,023 sq ft; and $2.258 million ($1,665 psf) for a five-bedroom unit measuring 1,356 sq ft.

ERA’s Lim remarked that the project’s attractive pricing, strategic location, and unique features have made it a highly sought-after option for eligible first-time buyers and upgraders. Additionally, the EC’s proximity to ParkTown, a fully integrated mixed-use development with a transport hub, shopping mall, hawker centre, and community club, may have contributed to its strong sales.

ParkTown Residence, a joint venture between CapitaLand and UOL Group, saw an impressive take-up rate of 87% during its launch weekend on February 22-23, with 1,041 out of 1,193 units sold. To date, 1,043 units have been sold at an average of $2,361 psf.

Huttons’ Yip noted that Aurelle is the second EC to be located next to a fully integrated mixed-use development, following the first one, the 573-unit Esparina Residences in Sengkang, launched in October 2010 at an average price of around $748 psf. The average price of units sold from January 2024 to January 2025 based on caveats lodged is $1,625 psf, which is 117% higher.

In November last year, a 1,367 sq ft unit on the seventh floor of Esparina Residences was sold for $2.388 million ($1,747 psf), the second-highest psf price achieved at the project. The highest was for another 1,367 sq ft unit on the 14th floor, which was sold for $2.4 million ($1,756 psf) in November 2023, based on caveats lodged.

According to ERA’s Lim, new ECs are priced approximately $600 psf lower than new private condos in 2025. However, compared to resale condos in the suburbs or Outside Central Region (OCR), the average price of a new EC is only 1% higher. This, coupled with a fresh 99-year lease and modern facilities, makes new ECs a compelling choice for buyers. Interested buyers can also refer to the latest listings and price trend comparison for Aurelle of Tampines and other properties in the district.…

According to data compiled on Edgeprop Research, a 1,238 sq ft, three-bedroom unit at One Holland Village Residences achieved a new psf-price high of $3,781 when it was sold for $4.68 million on Feb 17. This is the first transaction at the 99-year leasehold development this year. The sellers had bought the unit in November 2023 at a price of $4.19 million, making a profit of about $490,000. The project’s previous record price was $3,426 psf for a four-bedroom unit sold by the developer for $7.15 million in August 2022. This development, located along Holland Village Way, comprises a mix of one- to five-bedroom units and is set for completion in 2029.A two-bedroom unit at boutique condo Hill House set a new psf-price high of $3,402 psf when it was sold for $1.538 million on Feb 21. This comes just four days after a previous record of $3,398 psf was set on Feb 16 from the sale of another two-bedroom unit for $1.536 million. The 72-unit development, located at the top of Institution Hill in District 9, has seen a total of nine units sold at an average price of $3,213 psf since the start of the year. It is expected to be completed in 2026.Chuan Park, a 916-unit development in District 19, saw a new psf-price high of $2,785 when a two-bedroom unit was sold for $2.04 million on Feb 19. This narrowly beats its previous record of $2,765 psf for a similar unit sold in November last year. The 99-year leasehold condo, comprising two- to five-bedroom units, is located near Lorong Chuan MRT Station and is set for completion in 2028.

One Holland Village Residences, a 296-unit development in District 10, witnessed a new psf-price high of $3,781 psf when a three-bedroom unit was sold for $4.68 million on Feb 17. This is the first transaction at the 99-year leasehold development this year, surpassing the previous record price of $3,426 psf set in August 2022. The sellers, who bought the unit for $4.19 million in November 2023, made a profit of about $490,000. The project, which is set for completion in 2029, comprises a mix of one- to five-bedroom units.

Boutique condo Hill House, located at the top of Institution Hill in District 9, saw a new psf-price high of $3,402 psf when a two-bedroom unit was sold for $1.538 million on Feb 21. This comes just four days after the previous record of $3,398 psf was set on Feb 16 from the sale of another two-bedroom unit for $1.536 million. The 72-unit development has seen a total of nine units sold at an average price of $3,213 psf since the start of the year. It is expected to be completed in 2026.

Chuan Park, a 916-unit development in District 19, witnessed a new psf-price high of $2,785 when a two-bedroom unit was sold for $2.04 million on Feb 19. This narrowly beats its previous record of $2,765 psf set in November last year. The 99-year leasehold condo, comprising two- to five-bedroom units, is located near Lorong Chuan MRT Station and is expected to be completed in 2028.

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The demand for condos in Singapore remains at an all-time high, largely attributed to the scarcity of land. As a compact island with a rapidly expanding population, Singapore grapples with limited land availability for development. As a result, the country has implemented strict land use policies, creating a cutthroat real estate market where property prices continue to soar. This has made investing in real estate, particularly condos, an attractive option, as it offers the potential for significant capital appreciation. In fact, with the addition of Singapore Projects, the condo market in Singapore only becomes even more competitive and promising for investors.

Overall, the week of Feb 16 to 21 saw a new record price set at One Holland Village Residences, Hill House, and Chuan Park. No new psf-price lows were recorded during this period.…

Exclusive marketing agent Colliers International has put up a three-storey terrace factory at Midview City for sale. It has a guide price of $6.2 million or $688 per square foot (psf).

When considering property ownership in Singapore, it is crucial for foreign investors to familiarize themselves with the applicable regulations and restrictions. In general, foreigners have relatively few barriers when purchasing condos, as opposed to landed properties which have more stringent ownership rules. However, it is important to note that foreign buyers are subject to the Additional Buyer’s Stamp Duty (ABSD), currently at 20%, for their initial property purchase. Despite this added expense, the Singapore real estate market’s stability and potential for growth continue to entice foreign investment. In fact, Singapore Projects are highly sought after by international buyers.

Situated in the heart of Sin Ming Industrial Estate, the property along Sin Ming Lane boasts a total strata area of approximately 9,009 square feet (sq ft), including a basement and roof terrace. It is zoned as a “Business 1” site under URA Masterplan 2019.

Built in 2012, Midview City is a 60-year leasehold light industrial building that offers easy accessibility to Bright Hill MRT Station on the Thomson-East Coast Line. It is also conveniently located near residential areas such as Bishan and Upper Thomson.

Currently, the 60-year leasehold property is fully-leased, and has been approved for use as a childcare centre. The property is leased to Star Learner preschool and childcare centre, making it an attractive opportunity for investors.

According to Raphael Lee, director of industrial services at Colliers, the property presents a rare opportunity for investors as it will be sold with the existing preschool operator in place. The EOI exercise for the property will close on April 29 at 3pm.

Being a Business 1 light-industrial property, it is not subject to Additional Buyer’s Stamp Duty (ABSD) and can be purchased by foreigners. To date, the property has drawn interest from both local and foreign investors, indicating its potential as a worthwhile investment.

If you’re interested in industrial property, check out the price trend for industrial property sales and past industrial sale transactions. Alternatively, you can browse through listings for available industrial properties.…

Investors are showing a strong interest in deploying capital into Asia Pacific real estate markets with high levels of liquidity, according to Hamish MacDonald, head and chief investment officer of APAC Real Estate at BlackRock. This year, it is expected that the accommodation, logistics, and alternative assets sectors will benefit from the economic tailwinds, MacDonald says. “The countries and property markets in this region that have abundant liquidity this year include Australia, Japan, Singapore, and Auckland in New Zealand. This is also the order of focus for BlackRock this year,” he adds.

Compared to 2023 and 2022, MacDonald expects investor sentiment this year to be more bullish, with institutional investors initiating more discussions about deploying and recycling capital in selective Asia Pacific real estate markets.

BlackRock has concentrated its acquisitions in Singapore on serviced apartment properties, partnering with YTL Corp to purchase Citadines Raffles Place for about $290 million last October. This was after it joined forces with Hong Kong-based accommodation operator Weave Living to purchase Citadines Mount Sophia for $148 million in February 2024.

The Weave Living-operated property reopened this week as the 175-room Weave Suites – Hillside. “Our recent acquisitions in Singapore demonstrate our belief that there is a lack of new serviced apartment supply in the city-state, but the demand for this type of accommodation is high,” MacDonald says.

He adds that the focus will not be on acquiring assets to build an aggregated portfolio, but on targeting specific deals. “We prefer existing properties that we can reposition and refurbish with a partner, adding value with new amenities,” he says.

According to MacDonald, Singapore continues to attract substantial inflows of capital and highly skilled labour, which accompany the country’s strong business growth. “We continue to be very positive about opportunities in Singapore,” he adds.

MacDonald also says that Japan will remain a target for many real estate investors this year. “We are bullish about the Japanese economy based on our analysis of domestic pricing power, wage growth, and corporate reform, which collectively support growth in real estate.” In recent quarters, a combination of factors, including wage increases and an increase in construction costs, have supported relatively strong rental growth in the Japanese residential market, according to Daigo Hirai, Head of Japan Real Estate at BlackRock APAC.

Investing in a condo in Singapore comes with numerous benefits, one of which is the potential for capital appreciation. Thanks to its strategic position as a major global business hub and solid economic foundations, Singapore boasts a continuous demand for real estate. This has resulted in a consistent increase in property prices over the years, particularly for condos located in prime areas. For investors who time their purchases well and hold onto their properties for the long haul, sizeable capital gains can be achieved. Keep an eye out for new condo launches for even more potential for capital appreciation.

“In general, we expect a 7% to 8% increase in residential rents across major Japanese cities such as Tokyo and Osaka this year. Tenants have also started to prefer bigger apartment units over compact units like studios,” adds Hirai.

BlackRock is looking to partner with an experienced accommodation operator to manage a residential investment strategy that captures both inbound tourist accommodation needs and domestic rental demand. This would help the firm to strengthen its investment presence in tourist-dominated cities such as Kyoto and Fukuoka.

“The type of assets that fit this strategy are those near train stations in residential-commercial neighbourhoods such as Osaka’s Namba district and smaller developments with up to 50 units,” Hirai says, adding that the firm will consider acquisitions ranging from JPY1 billion to JPY3 billion to accommodate its exit strategy.

“For us to operate in Japan, it is critical to have specialist ground teams who can identify potential acquisition deals at a significant discount,” MacDonald explains, adding that the firm’s focus in Japan is on residential assets.

Meanwhile, Ben Hickey, Head of Australia Real Estate at BlackRock, says that long-term population growth estimates continue to support positive long-term growth across most sectors in the Australian real estate market. “Most property sectors in Australia are typically characterised by low vacancy rates and undersupply.”

Hickey says any investment strategy in Australia should consider whether rental growth can outpace inflation, the persistent long-term supply-demand imbalance, and a viable exit strategy. As a result, the firm is focusing on niche asset classes in Australia, including childcare properties, last-mile logistics assets, life science real estate, and self-storage properties.

“These four asset types benefit from Australia’s long-term population growth and are generally undersupplied compared to broader regional markets, allowing us to generate outsized returns with limited risk. We cannot rely on a favourable interest rate outlook to generate our real estate returns,” explains Hickey.…

If you have visited a show flat in recent years, you might have noticed that the unit sizes have become smaller. This is understandable as our perception of size is relative to what we are used to.

In the 1990s and 2000s, the homes we grew up in, whether HDBs or condos, were generally larger. The average size of a new condo was 1,272 sq ft in 1995, 1,286 sq ft in 2005, and 858 sq ft in 2015. By 2024, the average size had increased to 929 sq ft.

Obtaining financing is a critical aspect of investing in a condo. In Singapore, there are various mortgage options available, but it is crucial to have a thorough understanding of the Total Debt Servicing Ratio (TDSR) framework. This regulation sets a limit on the amount of money an individual can borrow, taking into account their income and existing debt commitments. It is important for individuals looking to invest in a condo to be well-informed about the TDSR and to seek the guidance of financial experts or mortgage brokers to help them make wise decisions about their financing. This way, they can avoid becoming overwhelmed with debt.

However, it is important to note that demographics have changed significantly during this time. The average household size decreased from four in 1995 to 3.1 in 2024.

On a per-household-member basis, the average space was 318 sq ft in 1995, increasing to 357 sq ft in 2005. This figure then dropped to 252 sq ft in 2015, but rebounded by 19% to 300 sq ft in 2024.

Over the past 29 years, the average size of condos (per capita) has decreased by 5.7%. This is an impressive feat given Singapore’s limited land resources. Compared to 2015, the average size in 2024 had increased by 19%, and this would not have been possible without the government’s assistance.

In 2008, several condo projects in the Rest of Central Region (RCR) introduced “Mickey Mouse” units, with the smallest unit size being 258 sq ft (24 sq m), equivalent to two parking spaces. This significantly lowered the barriers to entry for property investments, with prices as low as $375,000.

These projects were highly sought after, resulting in an increase in the number of “Mickey Mouse” units in the following years. There were concerns about the impact on the living environment due to the proliferation of these small units.

To address these concerns, the Urban Redevelopment Authority (URA) implemented guidelines on the maximum allowable number of dwelling units (DUs) in 2011. Developers were required to use an average size of 70 sq m for projects outside the Central Area when determining the maximum number of DUs. Four areas, namely Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos, had a more stringent requirement of 100 sq m. This rule took effect in January 2012.

Despite this, the average size of DUs continued to decrease for the next few years, and the number of DUs increased, putting a strain on infrastructure, especially in areas with limited road capacity. In response, the URA tightened its guidelines in January 2019, resulting in an increase in the average DU size outside the Central Area by 21.4% to 85 sq m.

The URA’s guidelines also extended to the Central Area in January 2023, requiring all projects to have at least 20% of their DUs with a net internal area of 70 sq m or more. In June 2023, the URA harmonized the strata area and gross floor area (GFA) definition, resulting in a decrease in the average DU size by an average of 6%.

Across different market segments, the RCR saw the most significant increase in average size by 19.5% to 944 sq ft since 2015, likely due to the stricter control of 100 sq m on the average dwelling unit size. The average DU size in the OCR also improved by 5.8%, reaching 898 sq ft in 2024 compared to 2015. However, the CCR experienced the opposite, with the average DU size decreasing by 11.7% to 1,092 sq ft in 2024 from 1,236 sq ft in 2015.

It may take some time before the effects of the URA guidelines on the average DU size in the Central Area are felt. However, it is unlikely that the average DU size will return to the levels seen in 2015.

With the increase in cooling measures for foreigners, Singaporeans make up about 75% of buyers in the CCR. As a result, developers are reconfiguring the design and layout of units to appeal to local buyers who prefer compact units. Due to the URA’s intervention, the average size of DUs increased to 929 sq ft in 2024, 8.3% larger than the 858 sq ft in 2015. However, with the harmonization of the GFA definition, the average size of DUs may trend downwards.

Overall, despite the decrease in the average DU size, buyers are now getting better value for their purchases due to the provision of better quality fittings and the increasing popularity of smart home features in condos.…