October 2023 Real Estate Roundup: Singapore’s Property Market Buzzing with Activity in Q4 2023

The Singapore property market has been buzzing with activity in the fourth quarter of 2023, marked by significant developments and investments. From the successful public preview of CapitaLand Development’s J’den to the Housing and Development Board’s (HDB) ambitious plans for Tanglin Halt, and insights into the real estate investment market’s trajectory, the quarter has been eventful. Additionally, a report by JLL suggests a substantial rise in investments in Asia Pacific multi-family properties by 2030. To top it off, flexible housing provider Habyt secures EUR40 million in series C funding, while Keppel acquires the remaining 50% stake in Pierfront Capital Fund Management.

1. CapitaLand Development’s J’den Draws Enthusiastic Response:

   • The public preview of J’den, the latest development in Jurong Gateway, saw an overwhelming turnout of more than 7,000 visitors during its first weekend.
   • Sales bookings for J’den are set to commence on November 11, showcasing strong pent-up interest in private residential launches in Jurong Gateway.
   • At 40 storeys and 150m in height, J’den is poised to be the tallest residential tower in Jurong Lake District, offering 368 units ranging from one-bedroom to four-bedroom premium options.
   • Industry experts attribute the success to the exceptional locational and product attributes of J’den, reflecting confidence in CapitaLand Development’s reputation.

2. HDB’s Redevelopment Plans for Tanglin Halt:

   • Tanglin Halt estate, one of Singapore’s oldest public housing estates in Queenstown, is set to undergo redevelopment into a new integrated development.
   • The project will include a hawker centre, market, polyclinic, and up to 5,500 new residential flats, contributing to the transformation of the area.
   • Lee Sze Teck from Huttons Asia highlights the potential for high-rise flats, ranging from two-room flexi to four-room units, catering to diverse buyer preferences.
   • The Tanglin Halt Cascadia BTO project, launched recently, attracted moderate interest, and industry experts predict a warmer response for the integrated development.

3. Savills’ Projection for Singapore’s Real Estate Investment Market:

   • Savills Singapore’s October research report suggests that the real estate investment market recorded $7.13 billion in deals in 3Q2023, doubling the previous quarter.
   • Despite the impressive figures, the report paints a cautious outlook for 2023 due to global uncertainties, projecting a drop in investment sales from the initial forecast.
   • Factors such as potential conflicts, supply chain challenges, and geopolitical events may contribute to a lower deal count, although a rebound is expected in 2024 with falling interest rates and improved global economic conditions.

4. JLL Forecasts Doubling of Investments in Asia Pacific Multi-Family Properties:

   • JLL’s October research report anticipates a significant rise in annual investment volume for multi-family assets in Asia Pacific, crossing $20 billion by 2030.
   • Urbanization, a high renter population, and stretched housing affordability are identified as key factors contributing to the projected growth.
   • Japan leads in multi-family investment volumes, with strong activity also noted in China and Australia, driven by housing crises and increased investor interest in the sector.

5. Knight Frank Reports Surge in Singapore Real Estate Investments:

   • Knight Frank’s October research report reveals a 74.8% q-o-q increase in Singapore’s real estate investments in 3Q2023, reaching $6.9 billion.
   • Government Land Sale (GLS) sites played a pivotal role in the surge, accounting for over 60% of the transacted value, with residential deals dominating the investment landscape.
   • Commercial property deals and the collective sale of Far East Shopping Centre and Tampines Avenue 11 contributed to the robust investment figures, while industrial transaction value witnessed a decline.

6. Singapore Emerges as Top Wealth Capital in Asia Pacific:

   • Knight Frank’s inaugural Rise of the Super Wealth Hub report designates Singapore as the leading wealth capital in Asia Pacific.
   • The report evaluates live, work, and play aspects, with Singapore scoring high in work indicators such as a robust legal framework and high enterprise excellence.
   • The city-state’s lifestyle and urban prosperity aspects contribute to its recognition as the top destination, showcasing its attractiveness for businesses, investors, and the global elite.

7. Habyt Secures EUR40 Million in Series C Funding:

   • Flexible housing provider Habyt raises EUR40 million in a series C funding round, led by new investors Korelya Capital and Deutsche Invest.
   • The funding follows a series of mergers, including the integration of Singapore-based co-living platform Hmlet and a subsequent rebranding, as well as a merger with Common, the largest co-living operator in North America.
   • Habyt, with a presence in over 50 cities across three continents, aims to expand further into new markets, enhance ESG initiatives, and develop tech-driven solutions.

8. Keppel Acquires Remaining Stake in Pierfront Capital Fund Management:

   • Keppel Corporation acquires the remaining 50% stake in Pierfront Capital Fund Management from Clifford Capital Holdings.
   • Pierfront Capital specializes in private credit financing solutions in real asset sectors across Asia Pacific, focusing on defensive infrastructure-like business models.
   • The acquisition aligns with Keppel’s strategic focus on the private credit asset class, providing opportunities in the Asia-Pacific region and positioning Pierfront’s credit funds for growth.

The fourth quarter of 2023 has witnessed a dynamic and multifaceted real estate landscape in Singapore. From the success of new residential launches such as Union Square Residences Executive Condominium and ambitious redevelopment plans to insightful market projections and substantial investments, the property market continues to be a key driver of economic activity. As Singapore cements its position as a leading wealth capital in Asia Pacific, the future holds promise for sustained growth and innovation in the real estate sector.

Article was update on 9 Jan 2024 for its accuracy.