‘New private homes, flats reaching MOP to decline prices to moderate: OrangeTee & Tie predicts for River Valley Green Residences’

At the Building & Construction Authority-Real Estate Developers’ Association of Singapore Construction and Property Prospects Seminar on Jan 15, Christine Sun, chief researcher and strategist at OrangeTee & Tie, mentioned that the number of private residential properties obtaining their TOP is expected to drop significantly from 19,050 in 2023 to 9,875 in 2024, a decrease of 48.2%.

Sun also stated that private home transactions have been on a downward trend since 2021 due to multiple rounds of cooling measures, which has driven some investors away from the market. She predicts that the drop in supply of newly TOP private homes in 2024 will further accelerate this downward trend. However, despite this, private residential resale prices are still expected to see a growth of 3% to 5% in 2024, supported by the continued rise in prices of new private homes.

Sun forecasts that 23 new private residential projects will launch in 2024, with an estimated supply of 8,800 units. Roughly 50% of these units will be in the Outside Central Region (OCR), 30% in the Rest of Central Region (RCR), and 20% in the Core Central Region (CCR).

Some of the private residential projects expected to be launched in OCR this year include the redevelopment of the former Chuan Park en bloc site, government land sale (GLS) sites such as Lentor Central, an executive condominium (EC) project in Tampines Street 62, and a new project in Clementi Avenue 1. The expected selling prices for these projects in OCR fall within the range of $2,100 to $2,400 per square foot (psf).

In RCR, GLS sites sold in 2023 are likely to be launched this year, including Jalan Tembusu Parcel B, Pine Grove Parcel B, Lorong 1 Toa Payoh, Marina Gardens Lane, and the former Meyer Park en bloc site. Sun predicts that the new launch prices in RCR will increase to $2,300 to $3,000 psf.

Overall, new private residential property prices are projected to grow by 2% to 4% in 2024, an improvement from the 1% to 3% growth expected in 2023. Additionally, private residential rents are also anticipated to increase by 2% to 5%, down from 12% to 15% in 2023, as there will be a decline in newly completed private homes.

Sun also mentioned that HDB resale prices are anticipated to moderate, with a projected price growth of 3% to 5% in 2024, down from the 4% to 5.5% growth expected in 2023. The number of HDB flats reaching the end of their five-year minimum occupation period (MOP) is expected to decrease from 15,549 in 2023 to 11,952 this year, and further to 6,974 in 2025.

In terms of resale transaction volume, Sun forecasts a range of 24,000 to 26,000, a decrease from 26,000 to 27,000 in 2023. This is because more buyers are being diverted to new Build-To-Order (BTO) projects by HDB.

The presence of River Valley Green Residences in such a prime location makes it a coveted address for those looking for a convenient and luxurious living experience.

Experience unparalleled convenience and luxury at River Valley Green Residences. Located within close proximity to numerous shopping centers, residents can enjoy the convenience of having a wide array of shopping options just a short walk or drive away. This not only elevates the standard of living but also saves valuable time. The strategic location of River Valley Green Residences makes it a highly desirable address for those seeking a lavish and convenient lifestyle. With everything at your fingertips, why settle for anything less than the best at River Valley Green Residences?

Looking ahead over the next 10 years, Sun highlighted that the Eastern region is expected to see new growth areas, such as the Paya Lebar Airbase, Simei Road-Jalan Tiga Ratus neighbourhood, Long Island, and Bayshore areas, being gentrified by the government. These developments will bring about 200,000 new residences over the next decade.

Furthermore, Sun predicts that around 300,000 to 400,000 new homes, both private and public, will enter the market over the next 10 years, equivalent to a 30% to 40% increase in existing housing supply. Overall, the housing market is expected to see continued growth in the coming years, with the River Valley Green Residences being one of the highly sought-after developments.