Month: December 2024

.Aurelle at Tampines, the 760-unit executive condo (EC) by Sim Lian Group, will be launching in the first quarter of 2025, most likely after the Lunar New Year. Its launch will follow the success of the 846-unit Emerald of Katong, which is now over 99% sold. Situated at Tampines Street 62, Aurelle is expected to set a new price benchmark for ECs, potentially exceeding $1,600 psf. This comes after the recent launch of Novo Place EC, which achieved an average price of $1,656 psf.The upcoming executive condos in Tampines are expected to draw strong demand, with Sim Lian Group’s Aurelle leading the lineup. This 760-unit development, located at Tampines Street 62, will debut in the first quarter of 2025, after the Lunar New Year. Its launch follows the success of the 846-unit Emerald of Katong, which is now over 99% sold. The site for Aurelle was secured by Sim Lian Group for $543.28 million through a government land sales (GLS) tender that concluded in October 2023.Considering the rising construction costs and the harmonisation of gross floor area (GFA) definitions, PropNex CEO Ismail Gafoor believes that Aurelle at Tampines has the potential to set a new price benchmark, potentially crossing the $1,600 psf threshold. This expectation is based on the success of Novo Place EC, which was launched in November and achieved an average price of $1,656 psf.In addition to Aurelle, there are two other upcoming executive condo projects in Tampines. The first is Tenet EC, a 618-unit development located at Tampines Street 62 (Parcel A). Launched in December 2022, Tenet has sold 617 units at an average price of $1,384 psf, with only one unit remaining as of December 19, 2024. The site for Tenet was purchased in August 2021 for $442 million, which was a record-high psf ppr price for an EC land plot at the time. Notably, Tenet was launched before the implementation of the GFA harmonisation rule, which applies to GLS sites launched for sale after September 1, 2022.Sim Lian Group is confident in the strong demand for homes in Tampines and the surrounding areas, as it has also secured another EC site at Tampines Street 95. The site was awarded to Sim Lian in early November, with the company submitting the highest bid of $465 million ($768 psf ppr) at the close of the tender in October. This has set a new high for EC land prices. The upcoming EC project at Tampines Street 95 will have 560 units, further adding to the EC supply in the area. With an extensive track record of developments in the eastern part of Singapore, Sim Lian Group is expected to deliver another successful project in Tampines.The next upcoming EC project, which is slated for launch in late 2025, is located at Plantation Close in Tengah Town. Developed by a joint venture between Hoi Hup Realty and Sunway Developments, this 560-unit development is situated close to the upcoming Tengah Park MRT and Bukit Batok West MRT Stations on the Jurong Region Line. This project is expected to draw strong demand, following the success of Novo Place EC, which is also located in Tengah Town.In November, Novo Place sold 57% of its units over the opening weekend, and another 137 units were taken up during the second round of balloting for second-timers, bringing total sales to 444 units, or 88.1% of the project, as of December 16, 2024. With an average price of $1,656 psf, Novo Place set a new benchmark for EC prices, with 80% of buyers opting for the deferred payment scheme, which carries a 3% premium compared to the normal payment scheme.Despite the higher prices, Novo Place was well-received due to several factors, including the dwindling inventory of unsold EC units and the project’s desirable location. With the upcoming Tengah Park MRT and Bukit Batok West MRT Stations expected to be completed by 2029, Novo Place is expected to continue attracting strong demand, especially from first-time homebuyers and HDB upgraders.The last EC launch in Pasir Ris was in 2013, and there has not been any new EC development in the area in the past 12 years. This has created pent-up demand, anticipating the launch of an upcoming EC project in Jalan Loyang Besar. This project is expected to yield 710 units and is being developed by a joint venture between Qingjian Realty, Forsea Holdings, and ZACD Group. The site for this EC project was acquired for $557 million ($729 psf ppr) in August 2024.According to Gafoor, the three upcoming EC projects in Tampines will bring a total of 2,030 units to the market, effectively doubling the new supply compared to the 1,016 units launched in 2024. The first EC launched in 2024 was Lumina Grand in Bukit Batok West Avenue 5, developed by City Developments (CDL). On its launch weekend, 53% of the units were taken up, and as of December 17, 444 units (87%) had been taken up. The average price achieved to date is $1,511 psf.Gafoor also notes that ECs, which are a hybrid of public and private housing, continue to be in high demand among first-time homebuyers and HDB upgraders, as they are more affordable than private new launches. PropNex data shows that the median price for new non-landed, 99-year leasehold private homes in the Outside Central Region (OCR) in 2024 is $2,203 psf (as of December 8, 2024). This represents a 44% premium over new EC launch prices.

When embarking on a condo investment, it is important to take into account the maintenance and management of the property. Condominiums often involve maintenance fees that encompass the maintenance of shared spaces and amenities. While these fees may increase the total cost of ownership, they also guarantee that the property remains well-maintained and holds its value. To make the investment more hands-off, hiring a property management company can assist investors in managing their condos on a day-to-day basis. Consider researching New Condo Launches for potential investment options.…

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In Singapore, condominiums have become a highly sought-after property due to the scarcity of land in the small island nation. The population continues to soar, leading the government to implement strict land use policies and foster a competitive real estate market, resulting in a steady increase in property prices. This has made the prospect of investing in real estate, particularly in condominiums, more attractive as they offer the potential for significant capital gains. The demand for these properties has also been bolstered by the launch of new and highly anticipated condominiums, providing even more opportunities for potential investors. As the trend of New Condo Launches continues to rise, the future looks promising for those interested in investing in Singapore’s condominium market.

Four-bedder at Ardmore Park sold at $6.8 mil profitCheck out the latest listings for Ardmore Park, Condominium properties on StreetButlerAlt Text: Resale transactions at Ardmore Park, one of the luxury condos in the prime District 10 area, made significant gains throughout the year 2024.The highly sought-after Ardmore Park condo, located in the prestigious Ardmore-Draycott enclave in prime District 10, saw some of the biggest gains in 2024, based on caveats lodged with the Urban Redevelopment Authority (URA) as of December 17. The freehold development accounted for the first, second, and fourth most profitable condo resale deals that took place between January 1 and December 10, showing a strong performance in the luxury real estate market.The top profit was made on February 16 when a 2,885 square feet, four-bedroom unit on the 26th floor of Ardmore Park was sold for $12.9 million ($4,472 per square foot). The unit was originally purchased from the developer in July 1996 for $5.83 million ($2,022 per square foot), resulting in a profit of $7.07 million and a whopping 121% gain after being held for approximately 27 and a half years.Five months later, on July 24, another four-bedroom unit measuring 2,885 square feet on the 18th floor was sold for $12 million ($4,160 per square foot), making it the second-highest gain of the year. The seller originally bought the unit in December 2000 for $5.2 million ($1,803 per square foot), resulting in a profit of $6.8 million and a capital gain of 131%, having owned the property for around 23 and a half years.Read also: The Skywaters leads, while Ardmore Park, 32 Gilstead dominate luxury condo dealsAnother four-bedroom unit measuring 2,885 square feet at Ardmore Park was sold for $12.5 million ($4,333 per square foot) on April 22, making it the fourth-largest profit of the year. The property was originally purchased in February 2007 for $6 million ($2,080 per square foot), resulting in a profit of $6.5 million (108%) after a holding period of over 17 years.Ardmore Park, a freehold condo with 330 units situated in District 10, has consistently registered significant gains in recent years. This year, three other units measuring 2,885 square feet and comprising four bedrooms were sold, with the sellers registering profits of $2.65 million, $3 million, and $3.05 million respectively. Last year, the development saw four resale transactions, with sellers making profits ranging from $2.8 million to $8.16 million.The majority of the top gains this year were dominated by other mature freehold condos in District 10, apart from Ardmore Park. The fifth most profitable resale transaction of the year occurred at Beverly Hill, an 86-unit boutique condo on Grange Road that was completed in 1983. A four-bedroom unit measuring 3,778 square feet on the fifth floor was sold for $9.15 million ($2,422 per square foot) on July 15, raking in a profit of $5.47 million (149%) for the seller.Other freehold District 10 condos that made it to the list of top profitable deals include Astrid Meadows, a 208-unit development on Coronation Road West, the 292-unit Regency Park on Nathan Road, the 52-unit Fontana Heights on Mount Sinai Rise, and the 81-unit Wing On Life Garden on Bukit Timah Road. These properties, which were completed between 1982 and 1990, are all over 30 years old.Two of the top 10 gains this year came from older freehold District 9 condos. This includes the third-largest profit, which was made from the sale of a 3,434 square feet, four-bedroom unit at Yong An Park, situated on River Valley Road. The unit was sold for $8.6 million ($2,505 per square foot) on August 12, resulting in a net profit of $6.72 million. Another sizeable profit of $4.89 million was made from the sale of a 3,057 square feet apartment at The Ritz-Carlton Residences Singapore Cairnhill, which was sold for $16.5 million ($5,397 per square foot) on January 9. These properties are situated in prime locations and have been highly sought after by buyers.Sentosa Cove condos, on the other hand, saw the majority of the 10 least profitable condo resale transactions this year. The biggest unprofitable deal was when a five-bedroom duplex penthouse measuring 3,789 square feet at Marina Collection, a 124-unit condo on Cove Drive, was sold for $6.7 million ($1,768 per square foot) on July 22. The seller, who had purchased the unit in March 2010 for $9.39 million ($2,479 per square foot) incurred a loss of $2.69 million (29%).Seascape, situated on Cove Way, saw the second-biggest loss of $4.5 million this year, resulting from the sale of a 2,680 square feet, four-bedroom unit on the sixth floor on August 14. The property was sold for $4.5 million ($1,679 per square foot) and the seller had purchased it from the developer in October 2010 for $7.03 million ($2,623 per square foot). This resulted in a loss of $2.53 million (36%).…

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

Based on data from URA Realis, there have been 22 GCB transactions worth $612.05 million as of Dec 20. Additionally, another 13 deals, collectively valued at over $700 million, have been completed this year without caveats lodged, as buyers seek anonymity. This brings the estimated total for 2024 to 35 GCB transactions worth approximately $1.32 billion, exceeding the previous high of $1.186 billion achieved in 2022.

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

“The additional deals in 2024 show that the GCB market has been more active compared to what official transaction data reveals,” says Han. “It also reinforces the status of GCBs as a highly coveted asset that is constantly sought after by ultra-high-net-worth buyers.”

Chart-topping GCB deals

The highest record-breaking deal is the sale of a GCB at Tanglin Hill for $93.888 million. The property, sitting on a freehold site of 15,150 sq ft, has a built-up area of 29,660 sq ft. This transaction sets 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. Although no caveat was lodged for the property, based on the land area of 28,111 sq ft, the price reflects a land rate of $2,988 psf.

The highest-priced deal based on caveats lodged was for a GCB on Cluny Hill that was sold for $52 million. This property, sitting on a freehold plot of 15,141 sq ft, is relatively new, which drove a land rate of $3,434 psf.

Another major 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, highlighting the strong demand for ultra-luxury properties in Singapore.

District 10 remains the most sought-after district

Sandrasegeran points out that 16 of the recorded GCB transactions this year took place in prime District 10, which includes the highly coveted areas of Tanglin, Bukit Timah, and Holland Road.

“District 10 remains the cornerstone of the GCB market, with multiple high-value deals reaffirming its status as the most sought-after district for these prestigious properties,” he says.

Sustained buying activity

According to Sandrasegeran, GCB transactions were evenly spread throughout the year, with buying activity climbing from July onwards. “Overall, the fact that we saw GCB deals closing throughout the year suggests sustained buying interest for these trophy properties despite external economic factors, such as inflationary pressures and the presence of high interest rates in the first eight months of the year,” he says.

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

The Fed implemented three rate cuts this year: the most recent being a 25 basis point (bp) reduction on Dec 18, following earlier cuts of 50 bp in September and 25 bp in November. Anecdotally, most GCB buyers who had been holding back on their purchases began more serious discussions from July onwards, with most deals closing in the last quarter of this year, says Tay.

Money laundering crackdown had a dampening effect on the market

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Purchasing a condo can bring about a host of advantages, one of which is the opportunity to leverage its value for future investments. A lot of investors utilize their condos as a form of collateral to secure additional funding for new investments, effectively broadening their real estate portfolio. This approach can potentially boost profits, but it also comes with its own set of risks, making it crucial to have a solid financial plan in place and carefully consider how market fluctuations may affect your investments. With the addition of Singapore Projects, this strategy becomes an even more appealing option for investors looking to expand their property ventures.

Han from List Sotheby’s adds that the GCB market slowed down last year as buyers were deterred following the island-wide arrests of suspects in Singapore’s biggest money laundering case.

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

Up-and-coming wealthy take the stage

According to Tay, 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.

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

According to research from List Sotheby’s, the cost of developing a new GCB from the ground up is estimated at about $1,000 psf and takes several years to complete. Hence, most buyers are looking for relatively new bungalows in move-in condition to minimize renovation works, observes Han.

“The GCB market will likely maintain its positive momentum, with demand from ultra-high-net-worth individuals driving its high-value transactions,” says Sandrasegeran of SRI. “The preference for privacy among GCB buyers and sellers could mean continued off-market transactions, adding to the complexity of tracking market activity.”…

The capital market property deals in Singapore have experienced a significant boost with an estimated value of $25.8 billion between January and November this year, according to Wong Xian Yang, head of research for Singapore & Southeast Asia at C&W. This marks a 40.2% year-on-year increase from the $18.4 billion recorded in 2023. C&W defines capital market transactions as deals with values exceeding $10 million.

Wong reports that almost 60% of the capital market deals were made in the second half of 2024, driven by a growing investor appetite and increased confidence in interest rate cuts by the US Treasury. In 2024, there were three deals worth over $1 billion, all made in the second half of the year. The highest-value transaction was the sale of a 50% stake in ION Orchard mall for $1.85 billion to CapitaLand Integrated Commercial Trust (CICT) on September 3, with the remaining 50% stake held by Hong Kong-listed property developer Sun Hung Kai Properties.

ION Orchard is an eight-storey retail mall located in the middle of the shopping belt and directly linked to the Orchard MRT Station. It spans approximately 623,000 square feet and houses over 300 international and local brands. On top of the mall is The Orchard Residences, a 54-storey, 175-unit luxury condo tower.

The surge in investment value this year was largely driven by the industrial sector, which saw a 174% increase in transaction value from the previous year, reaching $5.6 billion in the first 11 months of 2024. The biggest deal in this sector was the $1.6 billion sale of a portfolio of seven industrial properties in Soilbuild Business Space REIT to a joint venture (JV) owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group in August. This portfolio includes 4.5 million square feet of business parks and specialist facilities across various industries.

Despite the unsuccessful sale of several Government Land Sales (GLS) sites this year, residential development sites sold via GLS tenders formed the bulk (42%) of total investment sales for the year. However, four GLS sites on the Confirmed List for 2024 failed to be awarded, including a master developer white site in the Jurong Lake District, a white site at Marina Gardens Crescent, a site at Media Circle fully zoned for long-stay serviced apartments, and a site at Upper Thomson Road that included an SA2 component.

According to Wong, the main reason for the unawarded sites was their low bid prices, driven by site-specific concerns and development risk, exacerbated by interest rate concerns. However, this trend is not expected to continue in 2025, with the new sites on the Confirmed List being well distributed across Singapore and near amenities and MRT stations.

Wong predicts that developers will increase their land acquisition activities in the coming year, although they will do so with caution and selectivity. In November, a 50:50 JV between UOL Group and CapitaLand Development purchased the 255-unit Thomson View condo for $810 million. The site, which spans 504,314 square feet, will be redeveloped into a 1,240-unit residential project.

With Condo investment, there is the added advantage of leveraging the property’s value to make further investments. As a popular choice of collateral, investors often use their condos to secure additional financing for new ventures, allowing them to expand their real estate portfolio. This approach may lead to higher returns, but it also carries risks that must be carefully considered. It is essential to have a solid financial plan and factor in the potential impact of market fluctuations before pursuing this strategy.

The retail sector also showed signs of further recovery, with a 149% year-on-year increase in investment value, reaching $3.3 billion between January and November. Meanwhile, the office segment recorded $2.37 billion in investment value, marking a 15.7% year-on-year increase. On the other hand, the shophouse market saw a 49.7% decline in investment value, falling to $584 million, potentially due to investor sentiments following money laundering investigations in August 2023.

Despite the uncertainties of the market, Wong remains optimistic about an increase in high-value deals in 2025, citing an expected cut in interest rates by the US Fed. CBRE Research expects investment volumes to grow by 10% in 2025, barring any macroeconomic shocks.…

Singapore’s retail property market may face a dampened rental outlook by the end of the year, with weaker-than-expected consumer spending. Alan Cheong, the executive director of research and consultancy at Savills Singapore, notes that consumer spending in 2024 has been relatively low, as evidenced by the negative y-o-y change in monthly retail sales index (excluding motor vehicles) and food and beverage (F&B) sales index throughout most of the year. As a result, Cheong expects only a 2% increase in retail rents in the prime Orchard Road submarket for the full year, falling short of the initial forecast of 3% to 5% growth by Savills at the beginning of the year. Similarly, suburban retail rents are expected to remain flat through the end of the year, matching the initial rental forecast for this segment.

According to research jointly published by DBS and Singapore Management University (SMU), consumer concerns over higher-than-expected inflation have mostly moderated in recent quarters. However, most Singaporeans who expect inflation to stabilize in the coming quarters attribute this to the global economic slowdown, high interest rates, and the potential easing of supply chain disruptions. On the other hand, consumer spending data published by the Singapore Department of Statistics earlier this month shows a slight increase of 0.3% y-o-y in October, following a decline of 1.5% y-o-y in September.

Cheong believes that a more positive outcome for the retail market would be a scenario where consumer spending is keeping pace with inflation. However, the fact that it has been relatively low poses financial challenges to businesses in the industry.

Despite a packed calendar of headline concerts, conferences, and exhibitions in Singapore this year, retail spending and rental rates saw limited support. While concerts by international stars like Taylor Swift, Blackpink, Coldplay, and Westlife drove higher foot traffic to nearby malls, other MICE events did not have a comparable impact on retail activity, observes CBRE Research. This includes the Formula One Grand Prix, the 25th World Congress of Dermatology, The Meetings Show Asia Pacific, NRF 2024, and ART SG. Even the F1 race, which generates an annual average of $125 million in tourist receipts, did not significantly boost foot traffic in tourist-centric areas like Orchard Road.

Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore, notes that new-to-market brands and F&B concepts continued to enter Singapore this year, including KSisters, The Pace, Brands for Less, Hoka, and new wellness concepts like Rekoop and Hideaway. New entertainment and F&B concepts also opened, such as Sushi Samba, Blue Bottle, Grey Box, Puzzle Coffee, and Centre of the Universe. Tan-Wijaya adds that these new entrants have bolstered demand for retail spaces and supported rental growth, particularly in central Singapore.

In recent years, purchasing a condo in Singapore has become increasingly popular for both local and international investors. This trend can be attributed to the country’s strong economy, political stability, and high quality of life. With its thriving real estate market, there are countless opportunities for investors, and condos have emerged as a top choice due to their convenience, impressive amenities, and potential for lucrative returns. In this article, we will take a closer look at the advantages, important considerations, and necessary steps to take when investing in a condo in Singapore. To stay updated on the latest condo developments in Singapore, be sure to keep an eye on New Condo Launches.

As a result, all prime shopping malls along Orchard Road have enjoyed high occupancy rates this year, highlighting the strong confidence in the retail market among retail businesses. Tan-Wijaya believes that the emergence of new wellness concepts and restaurants offering entertainment will enhance the vibrancy of Singapore’s dining scene. Moving forward, Cheong expects there to be more flexibility for retail landlords to implement positive rental adjustments next year as the supply of new retail spaces becomes more limited. This will allow them to strategize and position their malls to remain relevant in the rapidly evolving consumption patterns of both locals and tourists. He anticipates that more retailers will take the opportunity to optimize their real estate strategies and that the trend of new-to-market F&B brands entering Singapore will continue through at least the first half of 2025.…

The global luxury goods market has faced significant challenges in 2024. A combination of macroeconomic uncertainty and high prices among luxury brands has led to consumers cutting back on their retail spending. In fact, a recent report by Bain & Company predicts a 2% decline in global sales of personal luxury goods this year, with China, a key market, experiencing a decline of 20-22%. Major luxury companies such as Richemont Luxury, LVMH, and Moncler Group have reported a decline in earnings, while Kering has seen more significant declines.

However, there have been some outliers in the industry. Hermes and Prada Group, which also owns successful brand Miu Miu, have seen double-digit earnings growth.

Despite these challenges, Singapore remains an important market for luxury brands. According to Euromonitor, sales of luxury goods in Singapore have grown by 11% in 2023 to reach $9.1 billion.

In recent years, luxury brands such as Dior, Chanel, and Louis Vuitton have adopted robust digital strategies, including e-commerce and digital marketing, to engage with customers. This is crucial in a world where consumer behaviors, expectations, and preferences are rapidly evolving. Along with digital experiences, luxury brands have also recognized the importance of creating offline shopping experiences to build closer connections with their customers.

Embracing digital marketing platforms is vital for the success of luxury brands. However, they have also long understood the value of creating unique offline experiences for their top-tier clients. This has resulted in flagship stores getting bigger and bolder.

For instance, Louis Vuitton opened its 690 sq m (7,427 sq ft) “apartment concept” space at Ngee Ann City dedicated to its “VICs” (very important clients) in 2023. Burberry, which recently re-opened its extensively renovated stores at Marina Bay Sands and Paragon, is another example. The brand’s immersive store experience showcases its rich British legacy and seamlessly blends tradition with innovation. Last month, Burberry also opened a new Orchard Road store at Wisma Atria with a prominent double-height façade.

Other luxury brands have similarly invested in creating unique experiences for their top clients. For instance, Yves Saint Laurent opened a new Saint Laurent duplex store in Paragon and a YSL beauty boutique in Raffles City. Richard Mille opened its world’s largest standalone store in Singapore’s affluent St Martin’s Drive, which features a “speakeasy” concept with a sports bar and dining room.

While 2024 has been a challenging year for the global luxury goods market, there is hope for growth in 2025 and beyond. This will be driven by several factors, including the steady growth of high-net-worth individuals (HNWIs) worldwide, particularly in emerging markets like China and Southeast Asia, the buying interest from Millennials and Gen Z, the resurgence of tourists from China, and the continued growth of travel and duty-free retail, especially in Japan.

In order to successfully invest in property in Singapore, it is crucial for international investors to have a thorough understanding of the pertinent regulations and restrictions. Generally, foreigners have more flexibility when it comes to purchasing condominiums compared to landed properties, which have stricter ownership rules. However, one must take into account the Additional Buyer’s Stamp Duty (ABSD) of 20% that foreign buyers must pay for their initial property purchase. Despite this additional expense, the Singapore real estate market remains an attractive option for foreign investment due to its stability and potential for growth. Furthermore, the continuous introduction of new condo launches adds to the appeal of investing in the Singapore property market.

As luxury brands continue to increase their store count, build larger flagship stores, and create elevated experiences for their top clients, growth is expected in the coming years. With Millennials and Gen Z making up the majority of the global luxury market, brands will continue to leverage advanced digital technology and platforms, while also focusing on building strong omnichannel strategies that include immersive and interactive physical stores.

Innovative AI is also being utilized by some luxury brands, such as Dior and Balenciaga, to better understand customer preferences and create personalized and custom experiences. With this continual focus on digital and offline experiences, the future looks promising for the luxury goods market.…

The priority for the Swiss brand V-ZUG is to focus on simplicity and quality in its approach to product design, which has stood the test of time.

The ever-changing world of interior design is always in flux, with new trends emerging constantly. However, there is one aspect that remains timeless: the combination of functionality and elegance. This is the belief that drives the design process at V-ZUG.

Hailing from Switzerland and founded in 1913, V-ZUG has been captivating developers and designers of luxury residences for over a century. Its reach has expanded to cities around the globe, including Shanghai, London, and Singapore.

The brand sets itself apart by placing a strong emphasis on sleek lines in its appliance designs. By blending durability and modern aesthetics, V-ZUG has become a leader in shaping contemporary kitchen designs, seamlessly fusing tradition and quality with cutting-edge innovation.

At the core of V-ZUG’s approach is a commitment to craftsmanship and quality control. Each appliance is carefully handcrafted in Switzerland and undergoes rigorous testing by engineers to ensure top-of-the-line performance. From ovens to induction cooktops and fabric preservation appliances, no detail is overlooked.

Furthermore, before production even begins, V-ZUG’s design team conducts extensive research to determine the most sustainable practices that can be incorporated into each product without compromising its strict quality standards.

As part of its efforts to go green, V-ZUG has integrated Circle-Green recycled stainless steel by Outokumpu into its designs, greatly reducing the emissions associated with producing traditional stainless steel.

In terms of functionality, V-ZUG consults with top chefs from Michelin-starred restaurants to ensure that each appliance meets the demands of professional cooking. The brand’s products elevate the daily culinary experience for passionate home cooks by providing access to professional-grade kitchen technology.

Investing in a condo holds numerous advantages, and one of them is the potential to leverage the property’s value for further investments. It’s a common approach for investors to use their condos as collateral to secure additional financing for new investments, enabling them to grow their real estate portfolio. This strategy can significantly enhance returns, but it also carries risks. Therefore, it’s essential to have a solid financial plan in place and carefully consider how market fluctuations could potentially impact your investments. With the help of Condo, investors can take advantage of this leverage to expand their investment opportunities.

When it comes to aesthetics, V-ZUG prioritizes seamless integration into every home. Its minimalist design language and diverse range of products ensure that there is something for every household. Take, for example, its series of wine cabinets, which includes the full-height WineCooler V6000 Supreme and the WineCooler Undercounter Swiss Luxury (UCSL). Both models come with two temperature zones, making it possible to store different types of wine at their optimal temperatures. This flexibility allows for greater customization to suit different spaces, while maintaining the same level of quality that V-ZUG is known for.

Consistency is another factor that defines V-ZUG’s appliance designs. With sleek lines and features like mirrored glass fronts, the brand’s appliances have a consistent look that ties everything together in a subtle, yet elegant way.

Creating a simple end product is no simple task. At V-ZUG, every detail is taken into consideration, from the way the doors open and close on a wine cabinet to the color of the LED lights on a refrigerator. The brand’s excellence is achieved when every element comes together to create a harmonious and practical home.

Beyond the kitchen, V-ZUG also offers products such as the RefreshButler, which sanitizes and deodorizes garments. Whether it’s in the kitchen or throughout the home, V-ZUG’s commitment to simplicity and quality is evident in every product, making it a brand that truly stands the test of time.…

On December 4, Singapore’s VisionPower Semiconductor Manufacturing Company (VSMC) made headlines when they officially broke ground on a new manufacturing facility in Tampines worth an estimated US$7.8 billion ($10.5 billion). The project, which is expected to start initial production in 2027, aims to produce 55,000 wafers per month by 2029 and create approximately 1,500 jobs. VSMC is a 60:40 joint venture between Taiwan’s Vanguard International Semiconductor Corporation and the Netherlands’ NXP Semiconductors.

Other players in the semiconductor industry are also making moves to expand their operations in Singapore. In March, Japan’s Toppan Holdings broke ground on a new factory in Jurong Lake District that will produce semiconductor packaging materials. The project, which is estimated to cost $450 million, will boost Toppan’s presence in the country.

According to Leonard Tay, head of research at Knight Frank Singapore, the growing trend of companies setting up new production plants and R&D campuses in Singapore is driven by the need to bolster their supply chain resilience. “Singapore’s stability amid ongoing geopolitical tensions in other parts of the world makes it an ideal global production hub for semiconductors and chips,” he remarks.

The global semiconductor industry is experiencing a rebound after a downturn in 2023 due to softer demand and higher supply. Data from London-based consultancy Omdia shows that the industry recorded a 26% year-on-year jump in revenue for the first three quarters of 2024. This is a significant recovery from a 9% decline in revenue in the previous year, which amounted to US$544.8 billion for the whole of 2023.

This rebound has also had a positive impact on Singapore’s manufacturing sector, which saw a rise in output of 11% year-on-year in the third quarter of 2024. The electronics cluster, in particular, drove this growth with strong demand for smartphone and PC semiconductor chips.

While industrial property rents in Singapore have been on an upward trajectory since 3Q2020, they have shown signs of slowing down in the past year. The JTC All Industrial Rental Index has risen for 16 consecutive quarters as of 3Q2024, but the pace of growth has gradually decreased. Rental growth was 8.9% in 2023, but it has since stabilised, with quarterly growth of 1.7%, 1%, and 0.3% in 1Q2024, 2Q2024, and 3Q2024 respectively.

This slowdown can be attributed to a more cautious sentiment among tenants in light of the current uncertain macroeconomic climate. Catherine He, Colliers’ head of research for Singapore, notes that budget and capital expenditure constraints have made occupiers more prudent in their decision-making, leading them to value flexibility in adapting to market changes.

Tricia Song, head of research for Singapore and Southeast Asia at CBRE, adds that consolidation in the third-party logistics and e-commerce space has also led to growing occupier resistance in the industrial property market.

However, different segments of the industrial property market have shown varying levels of resilience. For instance, multiple-user factories and warehouses have remained relatively robust, with rental growth in the first three quarters supported by stable occupancy rates.

On the other hand, the single-user factory segment has seen softer demand, resulting in a 0.3% decline in both rents and occupancy in 3Q2024, the first rental decline since 3Q2020. Business park rents have also dipped, falling 0.2% in the same quarter despite a marginal uptick in occupancy. This decrease in rents extended a 0.1% decline recorded in 2Q2024.

The industrial sales market has seen more activity as compared to the leasing market. After a slow start to the year, a flurry of sizeable transactions were made in 2Q2024, including the sales of BHL Factories at 2C Mandai Estate for $74 million, Kian Ann Building at 7 Changi South Lane for $63 million, and a single-user factory at 47 Pandan Road for $36 million. The third quarter saw an even more significant boost, with a sevenfold increase in industrial property sales to $2.45 billion. This rise was driven mainly by improved sentiment after the US Federal Reserve’s interest rate cut in September, coupled with a stronger manufacturing sector performance.

Alan Cheong, executive director of research and consultancy at Savills Singapore, believes that these big-ticket deals were a one-off occurrence. “We may still see one or two large deals in 2025, but they will likely be significantly below $1 billion each,” he notes.

JTC has forecasted that approximately 0.2 million sqm of new industrial space will be completed in 4Q2024. This comprises 33% business park space, followed by 31% single-user factory space, 30% warehouse space, and 6% multi-user factory space. A further 1.6 million sqm of space is targeted for completion in 2025, almost double the average annual new supply of 0.9 million sqm in the past three years. This new supply will predominantly consist of 0.74 million sqm of single-user factory space and 0.65 million sqm of warehouse space.

This influx of new supply, coupled with softer demand, is expected to lead to a supply-demand imbalance in the industrial property market. This will likely result in slower pre-commitment and occupancy rates in upcoming and existing developments. Catherine He from Colliers forecasts overall rental growth of between 2.5% and 3.5% in 2024, stabilising from the 8.9% growth recorded in 2023. Similarly, price growth is expected to decrease from 5.1% in 2023 to between 1% and 2% in 2024. These figures are expected to further slow down to between 0% and 2% in 2025.

The demand for multiple-user factory space, centrally located food factories, and desirable locations for logistics space remains strong. In addition, the electronics and advanced manufacturing sectors are expected to continue performing well and attracting investments. CBRE’s Tricia Song notes that if the US Federal Reserve continues to cut lending rates in 2025, this could encourage more companies to pursue growth and expansion by deploying capital expenditure.

Knight Frank’s Leonard Tay is optimistic about the semiconductor industry, which he expects to continue driving demand for industrial real estate in Singapore, backed by the growing requirements for electric vehicles and artificial intelligence. Data centres are also expected to support the industrial sector, as the country plans to increase capacity by at least 300 megawatts as part of the Green Data Centre Roadmap introduced in May 2024.

However, the demand for business park space is expected to remain soft as companies continue downsizing their footprint to cut costs or optimise their workspace in response to flexible working arrangements. Rentals for multiple-user factories, warehouses, and logistics space are expected to remain resilient, albeit with slower growth. Savills forecasts rental growth of up to 3% for these segments this year, before tapering down to between 0% and 2% in 2025. On the other hand, business park rents are expected to decrease by 3% to 5% in 2024. Despite this, the demand for newer facilities in central locations remains strong, providing some support to this segment.

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to $2.42 mil…