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On January 1, ERA Singapore announced that it will no longer cover the annual Council for Estate Agencies (CEA) license renewal fees for its real estate agents. This gesture, which has been in place for the past seven years, will be discontinued in order for the company to allocate resources towards initiatives that will enhance growth and success for its market-leading salesforce and ultimately benefit consumers.

Despite the ongoing COVID-19 pandemic, ERA has been committed to covering the license renewal fees for its agents. However, this practice will now be coming to an end. In a statement released by ERA, they stated that the decision was made in order to focus on initiatives that will further the success of their agents and benefit consumers. They also mentioned that they will continue to support new agents by covering their renewal fees for the first two years, a common industry practice aimed at helping newcomers establish themselves in the industry.

ERA’s decision to discontinue the renewal fee coverage also addresses the issue of inactive agents shifting between agencies solely to take advantage of the fee coverage. This has led to a modest reduction of around 300 agents, primarily inactive or part-time salespersons with no transactions in the past year, according to the firm.

The cityscape of Singapore is characterized by impressive high-rise buildings and contemporary architecture. These opulent condominiums, strategically situated in prestigious areas, offer a harmonious fusion of sophistication and coziness that attracts both locals and expats alike. With an array of amenities such as swimming pools, fitness centers, and round-the-clock security services, these condos significantly enhance the standard of living and have become a highly coveted choice for both potential tenants and buyers. These facilities not only elevate the quality of life but also prove to be profitable investments, with the potential for high rental yields and appreciation in property value over time.

On the other hand, ERA has managed to attract around 230 new professional agents who have joined the agency on January 1, showcasing its continued appeal to active and aspiring real estate agents. This move also aligns with the CEA’s current review of implementing a minimum transaction requirement for real estate salespersons, emphasizing the importance of active participation and continuous professional development in the industry.

Marcus Chu, CEO of ERA Singapore, states that the decision to reallocate resources towards technology, training, and marketing reaffirms their commitment to empowering their core team of results-driven salespersons to excel and deliver exceptional value to clients. This move will allow them to focus on providing the necessary support and tools for their agents to succeed in the industry.…

When it comes to investing in real estate, the location is a crucial consideration, especially in Singapore. In this context, central areas or those close to important amenities such as schools, shopping centers, and public transportation hubs tend to experience a higher appreciation in value. For instance, prime locations including Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown a growth in property values over time. Moreover, the proximity to reputable schools and educational institutions makes condos in these areas even more desirable for families, thus elevating their investment potential. In addition to these, the recent launches of new condos, as seen on New Condo Launches, further add to the opportunities for investing in these prime locations.

The announcement from real estate agency SRI on Jan 1 revealed that 111 agents from KF Property Network (KFPN), including the head Evan Chung, have joined the firm. This accounts for 40.5% of KFPN’s sales force, making SRI the fifth-largest property agency in Singapore with a total of 1,501 agents at the start of 2025. This was achieved through the addition of agents from the four largest agencies – PropNex, ERA, Huttons, and OrangeTee & Tie (OTT). The expansion of their sales force to 1,501 agents is a significant milestone for SRI, which is aiming to reach 2,000 agents by the end of 2025.

SRI was co-founded in 2016 by managing partners Bruce Lye and Benson Koh as a spin-off from SRI5000. Starting with 120 agents operating from a small unit in Tiong Bahru, it has now grown to a sales force of 1,501 agents and has relocated to a larger office space at Great World in 2021. The firm’s CEO, Thomas Tan, has stated that the expansion to 2,000 agents will strengthen SRI’s existing business lines, which include residential, capital markets, industrial, auctions, and international projects. Tan also aims to position SRI as a boutique agency with a focus on the luxury residential market, with a goal to become a thought leader in the industry.

Former KFPN head Evan Chung, who is now a leader at SRI, explains his decision to move to the agency. He highlights the dedication of SRI in equipping its agents with effective tools, comprehensive support, and expert coaching, as well as the open and collaborative culture which makes agents feel supported and able to strive for excellence together. He believes SRI will be a great platform to grow the business and serve clients through various market segments.

After the departure of Chung and other agents, KFPN’s sales force has decreased to 145 agents, resulting in a drop from sixth to eighth largest agency in Singapore. However, Knight Frank Singapore’s CEO, Galven Tan, assures that it is business as usual at KFPN, with plans to appoint a new head to lead the agency and strategically position it for future opportunities.…

In the coming year, three executive condominiums (ECs) are set to be launched, with Sim Lian Group’s Aurelle of Tampines leading the pack. This 760-unit development at Tampines Street 62 is expected to debut in the first quarter of 2025, most likely after the Lunar New Year. Its launch follows the success of the 846-unit Emerald of Katong, which is now over 99% sold.

When it comes to investing in Singapore real estate, it is necessary for foreign investors to familiarize themselves with the regulations and restrictions. While they can easily purchase condos without much limitation, owning landed properties has stricter rules. Moreover, foreign buyers are required to pay an Additional Buyer’s Stamp Duty (ABSD) of 20% for their first property purchase. Despite these expenses, the steady and promising growth of the Singapore property market remains a strong magnet for foreign investments. Additionally, keeping an eye on New Condo Launches can help investors make informed decisions.

Sim Lian Group acquired the land at Tampines Street 62 (Parcel B) for $543.28 million in the October 2023 government land sales (GLS) tender. This translates to a price of $721 per square foot per plot ratio (psf ppr). With construction costs on the rise and the harmonization of gross floor area (GFA) definitions, it is predicted by PropNex CEO Ismail Gafoor that Aurelle of Tampines may set a new price benchmark, potentially surpassing the $1,600 psf mark. 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.

For more in-depth data on all ECs, including average profits at 5 and 10 years, explore EdgeProp’s comprehensive data.

Aurelle of Tampines, with 760 units, is located at Tampines St 62 (Parcel B), which was acquired by Sim Lian through a government land sale for $543.28 million or $721 psf ppr (Photo: EdgeProp Landlens)

Next to Aurelle of Tampines is Tenet EC, a 618-unit development by a joint venture between Qingjian Realty, Santarli Realty and Heeton Holdings. Since its launch 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, located at Tampines Street 62 (Parcel A), was acquired in August 2021 for $442 million ($659 psf ppr). This 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 harmonization rule, which only applies to GLS sites launched for sale after September 1, 2022.

As of December 19, 2024, only one unit remains unsold at Tenet, with 617 units sold at an average price of $1,384 psf. The 618-unit EC is located at Tampines St 62 (Parcel A), next to Sim Lian’s upcoming 760-unit Aurelle of Tampines (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Confident in the strong demand for homes in Tampines and the surrounding estates, Sim Lian Group acquired another EC site in early November, when it was awarded the Tampines Street 95 GLS site. With a bid of $465 million ($768 psf ppr), Sim Lian secured the site. This has set a new high for EC land prices.

The new EC project at Tampines Street 95 is expected to add 560 new units, further increasing the supply of ECs in the area. Sim Lian Group has a strong track record of developments in the eastern part of the island.

Sim Lian’s bid of $465 million ($768 psf ppr) for the EC site at Tampines St 95 set a new benchmark for land prices per psf ppr for ECs (Photo: EdgeProp Landlens)

Apart from the Emerald of Katong and the upcoming EC projects in Tampines, the group also successfully completed Treasure at Tampines, Singapore’s largest private condominium with 2,203 units, in 2023.

Located at Tampines Street 11, Treasure at Tampines is a redevelopment of the former privatised HUDC estate Tampines Court, which was acquired by Sim Lian through an en bloc purchase of $970 million in 2017.

Read also: Novo Place achieves 88.1% sales as 137 units snapped up in second balloting

Launched in February 2019, the 2,203-unit Treasure at Tampines was completely sold within three years at an average price of $1,356 psf. As of December 19, a total of 468 resales and sub-sales have been recorded. With an average price increase of 25.3% over the launch price, secondary market prices now average $1,699 psf.

Sim Lian Group’s private condominium, the 2,203-unit Treasure at Tampines, was fully sold and completed in phases in 2023 (Photo: Sim Lian Group website)

Second EC launch in Plantation Close, Tengah Town

Another EC project set to launch in 2025 is the 560-unit development in Plantation Close in Tengah Town, developed by a joint venture between Hoi Hup Realty and Sunway Developments. These are the same developers behind Novo Place EC.

At its launch in mid-November, Novo Place sold 57% of its units over the opening weekend. In the second round of balloting for second-timers – buyers who have previously purchased a subsidised new or resale HDB flat – another 137 units were taken up, bringing total sales to 444 units, or 88.1% of the project as at December 16, 2024.

In the second round of balloting for second-timers – buyers who have previously purchased a subsidised new or resale HDB flat – another 137 units were taken up, bringing total sales to 444 units, or 88.1% of the project as at Dec 16, 2024 (Photo: Samuel Isaac Chua/EdgeProp Singapore)

With an average price of $1,656 psf, Novo Place set a new benchmark for EC prices. According to Gafoor, the “slightly elevated average pricing” at Novo Place can be attributed to the fact that 80% of buyers opted for the deferred payment scheme, which carries a 3% premium compared to the normal payment scheme.

Despite the higher benchmark price, Novo Place performed well due to several factors, Gafoor notes. These include the dwindling unsold inventory of EC units and the project’s favorable location. Situated at Plantation Close in Tengah, Novo Place benefits from its proximity to the upcoming Tengah Park MRT and Bukit Batok West MRT Stations on the Jurong Region Line, expected to be completed by 2029.

Based on caveats lodged on URA Realis, some transactions at Novo Place executive condo have crossed the $1,700 psf threshold (Source: EdgeProp Landlens)

Last EC launch in Pasir Ris was in 2013

A third EC project, potentially launching in late 2025, is located at Jalan Loyang Besar in Pasir Ris. This is a joint venture between Qingjian Realty, Forsea Holdings, and ZACD Group, which purchased the site for $557 million ($729 psf ppr) in August 2024. The project is expected to yield 710 units.

Read also: Novo Place hits 88.1% sales as 137 units snapped up in second balloting

The last EC launched in Pasir Ris was Sea Horizon, which debuted in September 2013 at an average price of $800 psf. By 2024, average resale prices for caveats lodged had risen to $1,290 psf, reflecting a 61.25% increase over the past decade. Given that Pasir Ris has not seen a new EC launch in nearly 12 years, pent-up demand is anticipated.

The last EC launched in Pasir Ris was Sea Horizon, which debuted in September 2013 at an average price of $800 psf. By 2024, average resale prices for caveats lodged had risen to $1,290 psf, reflecting a 61.25% increase over the past decade (Photo: Google Maps)

New EC supply to double in 2025

Gafoor notes that the three upcoming EC projects – Aurelle of Tampines, the Plantation Close EC and the Jalan Loyang Besar EC – will collectively add 2,030 units to the market. This represents a doubling of new supply compared to the 1,016 units launched in 2024.

The first EC launched in 2024 was Lumina Grand at the end of January. Located at Bukit Batok West Avenue 5, the 512-unit EC was developed by City Developments (CDL). On its launch weekend, 53% of the units were taken up. As of December 17, 444 units (87%) had been taken up. The average price achieved to date is $1,511 psf.

Launched at the end of January, the 512-unit Lumina Grand was over 87% sold at an average price of $1,511 psf as at Dec 17, 2024 (Picture: CDL)

“ECs, a hybrid of public and private housing, remain highly sought after by first-time homebuyers and HDB upgraders, as they are still more affordable than private new launches,” says Gafoor.

According to PropNex, the median price for new non-landed, 99-year leasehold private homes in the Outside Central Region (OCR) in 202…

, despite holding period of 27 yearsTwo Four-bedroom units at Ardmore Park make biggest gains in condo resale marketArdmore Park still leading resale gains in 2024The highly coveted Ardmore Park continues to dominate the luxury condo resale market, registering some of the highest gains for sellers in 2024. Ardmore Park, a freehold condo located in the prestigious Ardmore-Draycott enclave in prime District 10, has achieved the first, second and fourth most profitable condo resale deals this year, based on caveats lodged with URA as of December 17th. This includes a 2,885 square feet four-bedroom unit on the 26th floor which was sold for $12.9 million, or $4,472 per square foot, on February 16th. The seller, who had originally bought the unit from the developer for $5.83 million or $2,022 per square foot in July 1996, made a whopping profit of $7.07 million, translating to a gain of 121% after owning the unit for 27.5 years. The second most profitable deal came from another four-bedroom unit measuring 2,885 square feet on the 18th floor which fetched a sale price of $12 million, or $4,160 per square foot, on July 24th. The seller had previously purchased the unit in December 2000 for $5.2 million, or $1,803 per square foot, through a sub-sale transaction. This resulted in a profit of $6.8 million, or a capital gain of 131% after holding onto the unit for 23.5 years.The fourth most profitable deal recorded at Ardmore Park came from the sale of yet another 2,885 square feet four-bedroom unit which changed hands for $12.5 million, or $4,333 per square foot, on April 22nd. The owner had purchased the unit in February 2007 for $6 million, or $2,080 per square foot, and thus made a profit of $6.5 million, which translates to a gain of 108% after owning the unit for over 17 years. It is evident that Ardmore Park, a 330-unit freehold condo that was completed in 2001, has consistently registered significant gains in recent years. In 2024 alone, three other units measuring 2,885 square feet were sold, with the sellers making profits of $2.65 million, $3 million and $3.05 million, respectively. Last year, the condo recorded four resale transactions, with the sellers making profits ranging from $2.8 million to $8.16 million. Not only that, Ardmore Park is just one of the many freehold condos in District 10 that have dominated the list of top profitable deals this year. Other mature freehold condos such as Beverly Hill, Astrid Meadows, Regency Park, Fontana Heights and Wing On Life Garden, all of which were completed between 1982 and 1990, made it to the top 10 list of most profitable condo resale transactions. In comparison, only two older freehold District 9 condos made it to the list, with the third most profitable deal this year coming from the sale of a 3,434 square feet four-bedroom unit at Yong An Park on River Valley Road for $8.6 million, or $2,505 per square foot, on August 12th. However, it is interesting to note that Sentosa Cove condos recorded nearly half of the 10 least profitable condo resale transactions this year, with the sale of a three-bedroom penthouse at Marina Collection making the biggest loss for its seller. The 3,789 square feet unit on the fifth floor was sold on July 22nd for $6.7 million, or $1,768 per square foot, which means that the original owner who had purchased the unit from the developer in March 2010 for $9.39 million, or $2,479 per square foot, incurred a loss of $2.69 million, or 29%. Similarly, a 2,680 square feet four-bedroom unit at Seascape condo was sold for $4.5 million, or $1,679 per square foot, on August 14th, which is $2.53 million, or 36% less than the original purchase price of $7.03 million back in October 2010. In conclusion, Ardmore Park is undoubtedly one of the most sought-after luxury condos in District 10, with consistently high resale profits over the years. Its prime location in the prestigious Ardmore-Draycott enclave and freehold status make it a highly coveted development for investors and homebuyers alike. However, it is also important to note that potential losses can still be incurred in the Sentosa Cove area, highlighting the importance of thorough research and due diligence before making any property investment decisions.

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In the world of the ultra-rich, the market for Good Class Bungalows (GCBs) has shown remarkable performance this year compared to 2023, according to Han Huan Mei, director of research at List Sotheby’s International Realty. As of December 20, URA Realis has recorded 22 GCB transactions totaling $612.05 million. In addition, 13 more GCB deals were completed this year without any caveats lodged, amounting to over $700 million as buyers sought anonymity. This brings the estimated total of GCB transactions for 2024 to 35, with a value of approximately $1.32 billion, according to List Sotheby’s estimates. This surpasses the previous high of $1.186 billion achieved in 2022. In comparison, 2023 only saw 18 GCB transactions, amounting to $432.5 million – the lowest number of deals recorded since URA Realis began tracking such data in January 1995.

“This year’s additional transactions in the GCB market indicate a higher level of activity compared to official transaction data,” says Han. “It also highlights the GCB’s status as a highly coveted asset that continues to attract ultra-high-net-worth buyers.”

Leading the pack in GCB deals is the sale of a property at Tanglin Hill for $93.888 million. The freehold site is 15,150 sq ft with a built-up area of 29,660 sq ft, setting a new record with a land rate of $6,197 psf. The second-largest transaction was the $84 million purchase of a property at Bin Tong Park by Xiang Yangyang, daughter of Chinese nickel billionaire Xiang Guangda. However, no caveat was lodged for this property. Based on the land area of 28,111 sq ft, the price translates to a land rate of $2,988 psf. The highest-priced deal recorded through caveats was for a GCB at Cluny Hill, which sold for $52 million. Sitting on a freehold land of 15,141 sq ft, the relatively new property fetched a land rate of $3,434 psf. Another significant transaction was the sale of a 21,116 sq ft GCB plot at Astrid Hill for $49 million ($2,321 psf) in July. The property was reportedly purchased by Glenn Kuok, nephew of Wilmar International’s chairman and CEO, Kuok Khoon Hong. This 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 top choice for GCB buyers, with several high-value deals reaffirming its position as the most sought-after district for these prestigious properties,” he says. Sixteen of the recorded GCB transactions this year took place in prime District 10, including Tanglin, Bukit Timah, and Holland Road areas.

The buying activity for GCBs was evenly spread out throughout the year, with an increase in July, according to Sandrasegeran. “Overall, the fact that GCB deals were closed throughout the year suggests a sustained interest in these trophy properties despite external economic factors, such as inflationary pressures and 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, 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 US Federal Reserve implemented three rate cuts this year, with the most recent being a 25 basis point (bp) reduction on December 18, following earlier cuts of 50 bp in September and 25 bp in November.

According to Tay, most GCB buyers who had been holding back on their purchases started more serious discussions from July onwards, with most deals closing in the last quarter of this year. The GCB market had slowed down last year as buyers pulled back following the island-wide arrests of suspects in Singapore’s largest money laundering case, says Han of List Sotheby’s.

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

A new generation of ultra-wealthy Singaporeans has emerged in the GCB market in recent years, with a significant number of young and successful entrepreneurs who have made fortunes in technology, finance, commodities, and F&B businesses, says Tay. He adds that newly naturalized Singaporeans also contribute to the exclusive pool of GCB buyers who prefer sizeable plots in prime districts. “However, the number of naturalized citizens buying GCBs still remains low compared to local wealthy individuals,” says Tay. According to research from List Sotheby’s, it costs approximately $1,000 psf to develop a new GCB from the ground up, and the construction process takes several years to complete. Therefore, most buyers are looking for relatively new bungalows in move-in condition to minimize renovation work, observes Han. “The GCB market is expected to maintain its positive momentum with demand from ultra-high-net-worth individuals driving high-value transactions,” says Sandrasegeran of SRI. “The preference for privacy among GCB buyers and sellers could result in more off-market transactions, adding complexity to track market activity.”…

According to Wong Xian Yang, head of research for Singapore & Southeast Asia at C&W, the total value of capital market property deals in Singapore is estimated to have reached $25.8 billion between January and November of this year, representing a significant increase of 40.2% from the $18.4 billion recorded in 2023. C&W defines capital market transactions as deals with values exceeding $10 million.

Wong states that nearly 60% of the capital market deals were transacted in the second half of 2024, driven by growing investor appetite and increased confidence in interest rate cuts by the US Treasury. In fact, three deals exceeding $1 billion were made in 2024, all of which were transacted in the second half of the year.

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

ION Orchard is an eight-storey retail mall in the heart of the shopping belt and is directly linked to the Orchard MRT Station, a major interchange for the North-South and Thomson-East Coast Lines. It boasts a net lettable area of approximately 623,000 sq ft and is home to over 300 international and local brands. Located on top of the mall is The Orchard Residences, a 54-storey, 175-unit luxury condo tower.

In addition to this, Mapletree Anson was the highest-valued office deal of the year, selling for $775 million in the second quarter of 2024.

Industrial sector sees surge in investment

One of the major factors contributing to the bump in investment value this year was a surge of investor interest in the industrial sector. In the first 11 months of 2024 alone, investments in this segment reached $5.6 billion, marking a 174% increase in transaction value from the previous year.

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The biggest deal in the industrial sector was the $1.6 billion divestment of a portfolio of seven industrial properties in Soilbuild Business Space REIT to a joint venture (JV) platform owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group in August. This portfolio comprised of 4.5 million sq ft of business parks and specialist facilities across various industries such as life sciences, technology, advanced manufacturing, and logistics.

The portfolio was sold by a 50:50 JV between global asset manager Blackstone and Lim Chap Huat, executive chairman of Soilbuild Group. This deal was also the second-largest capital market deal in 2024.

The third-largest deal of the year was the sale of two data centres to Singapore-listed Keppel DC REIT for $1.38 billion. These two data centres, known as Keppel DC Singapore 7 and Keppel DC Singapore 8, are fully equipped for large-scale data processing and are currently fully contracted to cloud services, internet enterprises, and telecommunications providers.

Investment volumes in the industrial sector are expected to hit a five-year high according to Wong, driven by high liquidity and investors’ preference for new economy assets like prime logistics and life science assets.

Unsuccessful sale of GLS sites in 2024

Despite the successful sale of several Government Land Sales (GLS) sites this year, residential development sites sold via GLS tenders continued to make up the bulk (42%) of total investment sales for the year. However, some GLS sites were not awarded in 2024, including the 6.5ha master developer white site in the Jurong Lake District (JLD), the 1.73ha white site at Marina Gardens Crescent, the 62,046 sq ft site at Media Circle, and a 262,875 sq ft site at Upper Thomson Road (Parcel A).

The top bids for three of these sites, JLD ($640 psf per plot ratio (ppr)), Marina Gardens Crescent ($984 psf ppr), and Media Circle ($461 psf ppr) were rejected by the Urban Redevelopment Authority (URA) as they were deemed too low. Meanwhile, the Upper Thomson Road site closed in June without any bids.

Wong attributes the reason for these unawarded sites to low bid prices and site-specific concerns such as large land quantum or untested markets. Interest rate concerns and development risks also played a role in the lack of bids.

Retail and office sectors show signs of recovery

Investment in Singapore’s retail sector saw notable year-on-year growth, with deals involving retail assets reaching $3.3 billion between January and November of this year, marking a 149% increase from the previous year. According to Wong, this increase can be attributed to rising investor interest in the retail sector due to steady operating fundamentals.

The office sector also showed signs of recovery, recording $2.37 billion in investment value this year, marking a 15.7% year-on-year increase. This was driven by the normalization of return-to-office trends and a narrowing price gap between buyers and sellers, which has supported the recovery of office deals.

On the other hand, the shophouse market saw a 49.7% year-on-year decrease in investment value, with only $584 million recorded this year. This could be attributed to dampened investor sentiments following money laundering investigations in August of 2023.

More capital market deals expected in 2025

Despite the challenges faced in 2024, Wong remains optimistic about an increase in high-value deals next year. He believes that with the US Federal Reserve expected to make further interest rate cuts, investment sales volumes will continue to increase in 2025.

However, Wong also points out that while borrowing costs are falling, they still remain higher compared to pre-pandemic levels. This could lead to more asset owners bringing their assets to the market in an attempt to rebalance their portfolios before facing higher financing costs in the future.

CBRE’s Song also expects institutional investors to return to the market next year, but cautions that a slower-than-expected recovery could occur if interest rate cuts are slower and lower than market expectations. However, barring any macroeconomic shocks, CBRE Research predicts a 10% increase in investment volumes from this year for 2025.…

Weak Consumer Spending to Impact Singapore’s Retail Property Market

Singapore’s retail property market is expected to be dampened by weaker-than-expected consumer spending, according to Alan Cheong, executive director of research and consultancy at Savills Singapore. He notes that consumer spending in 2024 has been relatively weak, with the monthly retail sales index (excluding motor vehicles) and food and beverage sales index showing mostly negative year-on-year changes for most of this year.

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Cheong predicts that rents for retail properties in the prime Orchard Road submarket will see a modest 2% increase for the full year, falling short of initial expectations of a 3% to 5% climb. Meanwhile, suburban retail rents are expected to remain flat, in line with forecasts.

Research jointly published by DBS and Singapore Management University (SMU) found that consumer concerns over higher-than-expected inflation have mostly moderated in recent quarters, with Singaporeans’ headline inflation expectations remaining at 3.8% between June and September. This is attributed to the global economic slowdown, high interest rates and potential easing of supply chain disruptions.

The Singapore Department of Statistics’ retail sales data for October showed a 0.3% year-on-year increase (excluding motor vehicles), reversing a 1.5% decline recorded in September. Cheong points out that for the retail market to have a more positive outlook, consumer spending would need to keep pace with inflation, but the relatively low spending could pose challenges for businesses in the industry.

Despite a busy calendar of headline concerts, conferences and exhibitions in Singapore this year, retail spending and rental rates have not seen significant support. CBRE’s research, published late last month, notes that while concerts by international stars like Taylor Swift, Blackpink, Coldplay and Westlife attracted over 500,000 attendees, generating between $350 million and $450 million in tourism receipts, other MICE events did not have a comparable impact on retail activity.

Singapore also hosted leisure and business events such as the Formula One Grand Prix, the 25th World Congress of Dermatology, The Meetings Show Asia Pacific, NRF 2024, and ART SG. However, CBRE observed that business event attendees tend to stay at the event venue, and the F1 race did not significantly increase foot traffic in tourist-centric areas like Orchard Road.

Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore, notes that despite the limited support from events, Singapore’s premier status as a regional hub continues to attract noteworthy new-to-market brands. Some notable retail stores that opened this year include KSisters, The Pace, Brands for Less and Hoka, as well as new F&B concepts like Sushi Samba and coffee chains Blue Bottle, Grey Box and Puzzle Coffee. The emergence of new wellness concepts and restaurants offering entertainment is also enhancing the vibrancy of Singapore’s dining scene.

As a result, all prime shopping malls along Orchard Road maintained high occupancy rates this year, indicating strong confidence in the retail market. Tan-Wijaya notes that new retail brands, F&B concepts, and wellness experiences have supported demand for retail spaces and rental growth in central Singapore.

Looking ahead, retail landlords may have more flexibility to adjust rents as the supply of new retail spaces becomes limited. Cheong predicts that more retailers will optimize their real estate strategies, such as right-sizing spaces, establishing additional kiosks, or shifting operations to central kitchens. He also expects the entry of new-to-market F&B brands to continue in the first half of 2025, contributing to the growth of the retail market.…

The past year has been a challenging one for the global luxury goods market, with consumers cutting back on luxury retail spending due to macroeconomic uncertainty and continued price increases among brands. According to a recent report by Bain & Company, global sales of personal luxury goods are expected to decline by 2% in 2024, with China, a key market, seeing a decline of 20-22%. Major luxury brands such as Richemont Luxury, LVMH, and Moncler Group have reported slight earnings declines, while Kering has seen more significant declines. However, outliers like Hermes and Prada Group (which also owns Miu Miu) have seen double-digit earnings growth.

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

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

Moreover, luxury brands have also been embracing the strategy of creating unique experiences for their top-tier clients. Flagship stores are getting bigger and bolder, such as Louis Vuitton’s new 690 sq m “apartment concept” space at Ngee Ann City dedicated to its “VICs” (very important clients). Burberry has also reopened its extensively renovated stores at Marina Bay Sands and Paragon this year, showcasing its rich British legacy and blending tradition with innovation. Other luxury brands like Yves Saint Laurent, Richard Mille, and Balenciaga have also opened new stores in Singapore, featuring unique and innovative concepts.

Spending on luxury goods is expected to grow in 2025 and beyond, driven by factors such as the steady growth of high-net-worth individuals (HNWIs), the growing interest of Millennials and Gen Z, the resurgence of Chinese tourists, and the continued growth of travel retail. To cater to these changing trends and capture new markets, luxury brands are focusing on personalization and customization, leveraging AI and digital experiences, and exploring emerging markets.

Some brands are already leading the way in utilizing innovative AI, such as Dior’s Astra platform, which extracts data from various channels to understand customer preferences. Balenciaga’s Paris Fashion Week show for its Winter 2024 collection also went viral for its immersive and digitally enhanced set. Furthermore, brands like Brunello Cucinelli have created a separate website powered entirely by generative AI.

While 2024 has been a challenging year for the luxury goods market, growth is expected in 2025 and beyond as luxury brands continue to expand their store count, build larger flagship stores, and create elevated experiences for their top clients. With Millennials and Gen Z being the largest customer group, luxury brands will also continue to embrace digital technology and omnichannel strategies to attract and engage these younger consumers.

Purchasing a Singapore Condo provides numerous advantages, one of which is the potential for increased property value over time. This is due to the country’s strategic location as a global business hub and its strong economic foundation, resulting in a constant demand for real estate. As a result, property prices in Singapore have consistently shown an upward trend, especially in prime locations where condos have seen significant appreciation. Smart investors who enter the market at the right time and hold onto their Singapore Condo for a long period of time can expect substantial capital gains.…

One crucial factor to consider when investing in condos in Singapore is the government’s property cooling measures. Over the years, the Singaporean government has implemented various strategies to regulate speculative buying and maintain a steady real estate market. These measures comprise the Additional Buyer’s Stamp Duty (ABSD), which levies higher taxes on foreign purchasers and those buying multiple properties. Although these measures may affect the immediate profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a secure investment environment. Furthermore, with the availability of reputable developers and a variety of Singapore projects to choose from, the condo investment market remains a promising option for potential investors.

The Simplistic Elegance of V-ZUG: A Timeless Approach to Product DesignThe world of interior design is constantly changing, with new trends and styles constantly emerging. Yet, amidst this ever-evolving landscape, there are certain principles that will always remain timeless – functionality and elegance. These two elements are at the forefront of V-ZUG’s design process, making it a brand that stands apart in the competitive world of luxury appliances.Founded in 1913, V-ZUG has long been a favorite among developers and designers of high-end homes. Its products can now be found all over the world, from its home base in Switzerland to cities like Shanghai, London, and Singapore. The brand’s aesthetic is characterized by clean lines and a focus on simplicity, giving its appliances a timeless quality that will never go out of style.An emphasis on sleek lines ties V-ZUG’s appliances togetherIn its commitment to blending durability with sleek aesthetics, V-ZUG has become known for setting itself apart from the competition. By combining traditional craftsmanship and quality with contemporary aspirations, the brand has managed to shape modern kitchen designs that are both practical and visually stunning. Its attention to detail and dedication to quality control are evident in every aspect of its products, from ovens and induction cooktops to fabric preservation appliances.Each V-ZUG product is handcrafted in Switzerland and undergoes rigorous testing by engineers to ensure top performance. The brand’s design team conducts extensive research before production begins, carefully selecting the most sustainable materials and processes to create each appliance without compromising on its strict standards for quality and durability.V-ZUG’s products can be found in luxury homes around the worldAs part of its efforts to be environmentally conscious, V-ZUG has recently introduced Circle-Green recycled stainless steel by Outokumpu, which produces only 7% of the emissions associated with traditional stainless steel production. This is just one of the many ways in which the brand strives to be both eco-friendly and innovative.For its kitchen appliances, V-ZUG collaborates with renowned chefs from Michelin-starred restaurants, ensuring that each product is designed to meet the highest standards of cooking. By incorporating advanced technology and professional-grade features, the brand has succeeded in making restaurant-quality equipment accessible to home cooks who are passionate about cooking and entertaining.V-ZUG’s products are not only known for their superior performance, but also for their seamless integration into any home. With a minimalist design language and a wide range of products, there is something to suit every household. Its series of wine cabinets, for example, come in various configurations to fit different spaces, from the full-height WineCooler V6000 Supreme to the compact WineCooler Undercounter Swiss Luxury (UCSL). Despite the varying sizes, all V-ZUG wine cabinets feature two temperature zones, ensuring the perfect storage conditions for different types of wine.Consistency is another key factor that is evident in V-ZUG’s appliance designs. The brand’s commitment to simple, clean lines is reflected in every product, from mirrored glass fronts to other subtle details that tie everything together. It is this attention to detail that sets V-ZUG apart and makes its appliances a must-have for any modern, high-end home.Achieving simplicity in a final product is no easy feat, but this is a challenge that V-ZUG has mastered. Every aspect of their appliances, from how the doors open and close to the colors of the LED lights, is carefully considered to create a perfectly functional and aesthetically pleasing product. It is this excellence in every element that allows V-ZUG to create appliances that not only enhance the look of a home, but also make day-to-day tasks more practical and efficient.Finally, V-ZUG goes beyond the kitchen with its range of products like the RefreshButler, a garment sanitizing and deodorizing appliance. This is just one example of the brand’s commitment to providing high-quality, timeless products that seamlessly fit into the lifestyles of discerning consumers. With its focus on simplicity, functionality, and sustainability, V-ZUG is a brand that embodies the best of Swiss design and craftsmanship.…