As 2024 comes to a close, let’s reflect on the rollercoaster of events that rocked Singapore’s real estate market. From major policy shifts to record-breaking launches, this year had it all. Here are the top five stories that kept the property scene buzzing.
1. Cooling measure: Lower Loan-to-Value (LTV) Ratio for HDB buyers
With the number of million-dollar HDBs sky rocketing, the government took a clearer stance with a revised Loan-to-Value (LTV) ratio for HDB loans - from 80% to 75%.
The move was aimed at promoting financial prudence among buyers and curbing speculative demand. For some first-time buyers, the change meant recalculating their budgets or looking at more affordable options.
While it caused a bit of a stir initially, the market adapted quickly—as it always does in Singapore. Million dollar HDBs still continue to be transacted, and it will likely continue in the coming years. Still, it was a clear signal that the government is keeping a watchful eye on housing affordability in Singapore.
2. HDB Prime Plus and Standard Flats Make Waves
The introduction of the new HDB classification system—Prime, Plus, and Standard flats—was another major development amongst public housing. This new system will take over the previous Matured vs Non-Matured estate classification, which has since been outdated.While this new system was announced in the 2023 National Day Rally, it only affected BTO projects launched October 2024 and later.
Prime flats, located in central and highly sought-after areas, now come with stricter resale conditions. Plus flats located in non-central locations but close to transport hubs and amenities, will come with some restrictions. All remaining flats will be classified as Standard, with the least restrictions.
The reclassification and restrictions in terms of MOP duration and subsidy clawback will reduce the likelihood of buyers selecting BTO flats for the lottery effect. Buyers looking at Prime or Plus options will now have to weigh the trade-offs carefully. However, the true effect on the resale market will only be revealed in years to come.
More details about the new classification can be found here.
3. Emerald of Katong KO-ed 5 Projects, with 99% Sell-Out
If 2024 had a poster child for market demand, it would be the launch of Emerald of Katong.
With 847 total units, it achieved an astonishing 99% sell-out rate (835 units) on launch week - with an average of $2,612 psf. We can hardly recall the last time a new launch condo achieved such great sell out rate when launching all units at once.Located in the city-fringe Katong area and being the first GFA-harmonized project, it attracted a variety of buyers looking for own-stay and investment.
With efficient layouts, high-quality finishing, and well-thought pricing, the market showcased its appetite - with over 3600 expressing interest in the ballot.
This comes alongside the positive launch for Chuan Park, Nava Grove, and Novo Place - all of which happened in back-to-back weekends. Other launches like Union Square Residences and One Sophia, projects in the CCR, didn't attain as much interest.
How will the new launch market be in 2025? Find out in our next article!
4. Gross Floor Area (GFA) Harmonization: The New Beginning
Back in 2022, the Urban Redevelopment Authority (URA) introduced new GFA harmonization guidelines to standardize how gross floor area is calculated. This guidelines kicked in all Government Land Sale (GLS) launched for sale on or after 01 September 2022, and development applications submitted to URA on or after 01 June 2023.
Without going into technical details, it essentially revises what is calculated into the floor area of your property. The most significant impact to property buyers would be the omission of void spaces, including A/C ledges.
Lentor Mansion was the first project launched with this new GFA ruling, achieving a 74% sell-out rate on the launch weekend with a surprisingly good entry price.
As result of the new guidelines, it would also mean PSF will become a less accurate indicator of comparison in future.
5. URA Refuse Money from Developers (by rejecting land bids)
One of the more surprising stories this year was URA’s rejection of several Government Land Sale bids. The major headlines was the rejection of Guocoland-led consortium’s bid for the Marina Gardens Crescent site, adjacent to Marina South MRT.
Taking into account the current ABSD rates for foreigners, they placed the sole bid for the site, at about about 30% less than the nearby land plot won by Kingsford at Marina Gardens Lane in 2023.
Since then, URA has also rejected other GLS bids such as that in Media Circle, and the mega Jurong Lake white site.
This signals the government’s commitment to balancing market dynamics. By rejecting bids deemed ‘too low’, URA signaled its focus on long-term urban planning and price stabilisation rather than quick revenue. Developers might need to recalibrate their bidding strategies for 2025 to find a good balance between profits and bidding success.
Wrapping It Up
From policy shifts to market surprises, 2024 was nothing short of eventful for Singapore’s property market. As we head into 2025, one thing remains certain: the ever-evolving real estate landscape will keep us on our toes. Here at ThreeStoreys, we wish you a Merry Christmas and a Happy New Year!
We'll catch you again in 2025, when we drop our top 5 New Launch projects for the year!
Got a favourite story from this year? Share it with us in the comments below!
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