SINGAPORE, 23 October 2024 – Housing & Development Board (HDB)’s October 2024 BTO exercise concludes today, following a substantial offering of 8,573 HDB homes and the first Plus flats being made available to the public.
Most of the 15 projects that were launched garnered strong interest across the board, with only a few pockets of undersubscription.
As of 12pm on Oct 23, publicly-available HDB data shows that there were 33,256 applicants.
The positive response is largely rooted in various compelling factors for today’s buyers, including attractive pricing, convenient locations, and shorter completion times. The sustained enthusiasm – even with stricter resale conditions on Plus and Prime flats – also suggests that buyers could be focusing on affordability and location over resale flexibility.
Top picks: Standard projects in Pasir Ris and Bukit Batok see strongest demand
As of 12pm on Oct 23, Standard projects at Pasir Ris (Coasta Rivera I and II) recorded the highest application rates amongst all BTO developments for October 2024. First-timer family application rates were 2.3 times for 3-room flats, 3.4 times for 4-room flats and 6.3 times for 5-room/3Gen flats at these projects.
Table 1: Number of Applications Received for 3-room and bigger flats as at 12pm, 23 Oct 2024
Source: HDB
Following Pasir Ris, Standard flats at Bukit Batok (West BrickVille @ Bukit Batok) were the subsequent favourites among first-timer family applicants, with application rates of 1.7, 3.0 and 3.5 times for 3-room, 4-room and 5-room/3Gen flats as follows.
Other Standard projects at Sengkang (Fernvale Oasis and Fernvale Sails) and Woodlands (Marsiling Ridge) too witnessed fairly robust responses across the board for 3-room and larger units, with first-timer family application rates ranging from 2.2 – 2.8 and 2.7 – 2.8 times respectively.
Generally, the popularity of October 2024’s Standard projects can be chalked up to shorter wait times and good locational attributes.
Pasir Ris (Coasta Rivera I and II)
In Pasir Ris, both project sites are conveniently situated near the town’s namesake MRT station, as well as two shopping malls. Moreover, as an established estate, Pasir Ris boasts a variety of existing amenities, including eateries like Pasir Ris Central Hawker Centre and green spaces such as Pasir Ris Park.
Future upgrades will connect Pasir Ris MRT station to the Cross-Island Line, providing resident access to major business hubs in the North and West, including Jurong Lake District and Punggol Digital District.
Bukit Batok (West BrickVille @ Bukit Batok)
Healthy demand from first-timer families for 4- and 5-room flats at West Brickville @ Bukit Batok may be linked to Bukit Batok’s proximity to Tengah, the first Housing Board town to be developed in 20 years since Punggol.
Moreover, West Brickville @ Bukit Batok is just a five-minute walk from Bukit Batok Neighbourhood Centre and the upcoming Tengah Park MRT station on the Jurong Regional Line – both of which will enhance convenience for future residents.
Sengkang (Fernvale Oasis and Fernvale Sails)
Although flats of all sizes at both projects in Sengkang were oversubscribed by first- and second-time families, application rates were comparably lower than those observed for Pasir Ris.
On top of attractively-priced 3- and 4-room flats, both Fernvale Oasis and Fernvale Sails also offer much-coveted 5-room units that are suited for larger households. These twin projects are also located near several LRT stations (Layar, Thanggam, and Kupang), which could be a major draw for buyers prioritising their commuting experience.
Good reception for 3- and 4-room flats in Plus and Prime projects
Plus projects that debuted in Ang Mo Kio (Central Trio @AMK), Bedok (Bayshore Vista, Bayshore Palms, and Kembangan Wave), and Kallang Whampoa (Kallang View and Towner Breeze) were warmly received too.
Among the two towns with Plus projects offering 3-room flats, Bedok saw a higher first-timer application rate of 1.6 times, slightly more than twice the 0.8 times observed at Kallang Whampoa.
On the other hand, Ang Mo Kio recorded the highest first-timer family application rate for 4-room flats at 3.9 times, followed by Bedok at 2.5 times.
Ang Mo Kio’s status as an established town with extensive retail, dining, and transport amenities likely explains the popularity of Central Trio @AMK.
Despite Bayshore Vista and Bayshore Palms being situated in newer neighbourhoods, they too offer comparable amenities. Both developments will be within a 5-minute walk of Bayshore MRT station on the Thomson-East Coast Line. Bayshore will also be a car-lite precinct where residents can comfortably access eateries, supermarkets, and a preschool by bicycle and walking paths.
Kembangan also sees its first HDB flats launched since the late-1980s. While the area currently lacks amenities, a new 5-storey integrated building will be built to inject much needed options to serve the everyday needs of residents. The building will include a Community Club, eateries, shops, a supermarket and healthcare facilities. The project is also just in front of Kembangan MRT Station, which will take residents to the CBD in around 20 minutes.
Kallang Whampoa had the sole Prime project for October 2024’s launch, namely Crawford Heights. Overall, 4-room flats for Prime and Plus BTO projects in the town (including those at Crawford Heights) saw an application rate of 2.6 for first-timer families. This figure is marginally higher than the 2.1 application rate last seen in June 2024’s BTO launch in Kallang Whampoa (Tanjong Rhu Riverfront I and II) which have fewer amenities.
Among Plus projects with 4-room flats, Geylang (Merpati Alcove) saw the weakest demand, registering a 2.0 times application rate for first-timer families. The subdued interest might be due to Merpati Alcove’s location between the older Circuit Road estate and industrial areas that lack modern amenities, making it less desirable to young families.
Pockets of undersubscription at Jurong West and Kallang Whampoa projects
Taman Jurong Skyline, located in Jurong West was by far the most undersubscribed project of the entire launch, despite having the lowest launch prices. This is consequent of its subpar location, where residents would have to endure a 20-minute bus ride to the nearest MRT station.
This attests that convenience is king, especially as Singapore receives more infrastructure upgrades and people grow used to the convenience of a nearby MRT station.
The 3-room Plus at Kallang/Whampoa received a lukewarm response compared to the 3-room Standard flats, with a first timer application rate of 0.8. We believe young couple planning to start a family may hesitant to commit to an extended MOP period in a smaller flat.
Singles out in force as 2-room Flexi application rates soar
Following the easing of HDB restrictions permitting singles to apply for 2-room Flexi flats exclusively in non-mature estates, applications for these units have jumped dramatically. As of 12pm on Oct 23, there were 10,291 applicants for 1,902 two-room Flexi units; this makes up nearly a third of all applications received for October 2024’s BTO exercise.
Table 2: Number of Applications Received for 2-room flats as at 12pm, 23 Oct 2024
Source: HDB
First-timer singles were the major driving force behind the demand for 2-room Flexi flats, with relevant application rates reaching as high as 33.4 in Bukit Batok and 27.7 in Kallang Whampoa. This show in force also puts the median application rate for single first-timers at 25.1, which is markedly higher than the 6.4 median registered during June 2024’s BTO exercise.
For the first time, singles are able to apply for 2-rooms island-wide, while in the past they could only apply to flats in non-mature estates.
Singles’ priority is to buy the best possible 2-room flat in the location of their choice. Additionally, they might choose to apply for a house in former ‘mature’ estates like AMK, Bedok or Kallang in order to live near their parents to make it easier to take care of them while having their own space. As such, they do not have any concerns about having to commit to a 10-year MOP for Prime or Plus flats.
The Central Trio @ AMK (Plus) and Towner Breeze (Plus) projects have only 40% of the total of 155 and 139 units respectively set aside for Singles. AMK is an established housing estate with comprehensive infrastructure and amenities while Kallang Whampoa is on the city fringe. Singles are understandably attracted by these locational attributes and the lifestyle conveniences that they offer.
For standard flats, Costa Riviera II (Standard) at Pasir Ris is saw very high application rates as it is located just next to the Pasir Ris town centre. As most Singles commute by train, starting journey at Pasir Ris MRT station guarantees them a seat even every time; even during rush hour.
Bukit Batok is also popular with buyers due to its shortest waiting time of less than 3 years. Buyers don’t mind the location because it will be near the upcoming Tengah Park MRT station that is slated to open in 2028.
For media enquiries, please contact:
Eugene Lim, Key Executive Officer, ERA Singapore
Email: [email protected]
SINGAPORE, 23 October 2024 – ERA Realty Network Pte Ltd (“ERA Singapore”) is pleased to announce its exclusive appointment for the sale of a rare prime industrial property located at 22 Tampines Street 92. Featuring a rare single-storey car workshop and a three-storey ancillary office, the property presents a unique opportunity for businesses looking to secure an ideal industrial location in the East.
Spanning an expansive 6,619.3 sq m (approximately 71,249 sq ft) and designed to accommodate a wide range of operational needs, the site is up for sale via an Expression of Interest exercise at the guide price of SGD$15.9 million.
Excellent Location with Significant Redevelopment Potential
Strategically located just outside the Pan-Island Expressway turnoff and minutes away from the Tampines Expressway, the site offers ample headroom for future expansion, given its Plot Ratio of 2.5 times and existing floor area of 4,854.97 sq m (approximately 52,258 sq ft) sits well below the allowable maximum. Coupled with its 30 years of remaining lease tenure from 1 August 2020, the property holds significant redevelopment potential.
Its rectangular-shaped, versatile layout is ideal for businesses across various industrial sectors that require both a functional workspace and administrative offices. Zoned under Business 2 according to URA’s 2019 Master Plan, the property could potentially be redeveloped with manufacturing, production, assembly, repair and servicing, storage or industrial training services in mind. Allowable business activities also include lighter industrial uses such as Core Media services – production services that require technical facilities comprising film studios or high-tech production software or hardware; or E-Businesses such as telecommunications, internet service providers, data farms or data centres, amongst others.
Desmond Lim, Director of Capital Markets & Investment Sales at ERA Singapore remarked, “Tampines is known for being a well-developed residential and commercial hub. The property has great potential for capital appreciation, and also represents a remarkable opportunity for businesses that are looking to secure both long-term stability and growth, given its long remaining lease tenure and ample redevelopment potential. This asset is perfectly positioned to capitalize on evolving business needs and emerging market trends – whether for immediate use or future redevelopment.”
Additionally, the site’s excellent connectivity via major expressways PIE and TPE offers seamless accessibility for business owners. Tampines MRT Station (on the East-West Line and Downtown Line) is nearby and the area is well-served by buses along Tampines Street 92, along with multiple eateries and amenities that are conveniently located nearby for both staff and visitors.
The sale of 22 Tampines Street 92 is subject to approval by JTC Corporation. ERA Singapore is the exclusive marketing agent for this Expression of Interest exercise, which closes on Thursday, 27 November 2024, at 3 pm (Singapore Time).
SINGAPORE, 22 October 2024 – The Housing & Development Board (HDB) has announced plans to develop two new housing areas at Sembawang North and Woodlands North Coast. When developed, the two housing areas will offer around 14,000 new homes, including 12,000 public housing flats.
Sembawang North to see 10,000 new homes
Sembawang North will see the addition of 8,000 Build-To-Order (BTO) flats alongside 2,000 private homes when full developed. Sembawang currently has some 30,000 HDB flats and nearly 6,000 private residences. The upcoming housing supply represents a significant 27% boost to the area’s housing stock. We believe this expansion will be accompanied by extensive township planning, catering for more amenities, schools, and healthcare facilities to meet the growing population’s needs.
First batch of BTO at Woodlands North Coast to launch in 2025
Woodlands North Coast will see the launch of 1,500 Build-To-Order (BTO) flats in the upcoming February exercise, and nearly 1,100 of them being 4-room and 5-room flats. Some of these upcoming BTO blocks will face Woodlands Waterfront Park, offering partial sea views and convenient access to the park.
Currently, at least one-third of the HDB flats in Woodlands are 30 years or older, and another 53% are between 20 to 29 years old. The new initiative is poised to rejuvenate this mature town while increasing its housing supply.
Demand for HDB flats in Woodlands has been holding up. Between Jan-Sep 2024, some 1,500 3 room and larger flats were transacted, just a shade lower than 1,618 flats sold during the same period last year. In spite of that, the median prices of HDB flats in Woodlands as at 3Q 2024, rose between 6% and 12% over the last year. In the December 2023 BTO launch, 5-room flats at Woodlands saw an application rate of 4.4 for first timer families.
Enhanced connectivity to make Sembawang and Woodlands choice housing locations for young families
Woodlands has emerged as a well-connected regional hub following the development of the Thomson-East Coast Line and the North-South Corridor. A key component in enhancing Woodlands’ transportation network, the Thomson-East Coast Line (TEL) will introduce three new MRT stations: Woodlands North, Woodlands (TEL extension), and Woodlands South. These infrastructure developments are expected to make upcoming housing projects particularly attractive to young families.
Upcoming development will support housing demand from the expanding business nodes in the North
The North Coast Innovation Corridor (NCIC), a planned commercial belt stretching from Woodlands to Punggol, will position Woodlands Regional Centre as Singapore’s primary business park cluster in the North. Upon completion, the NCIC will provide as many as 100,000 new jobs and it is expected to shore up housing demand in the vicinity.
For media enquiries, please contact:
Eugene Lim, Key Executive Officer, ERA Singapore
Email: [email protected]
SINGAPORE, 15 August, 2024 – ERA Singapore’s (“ERA”) inaugural “2024 My Dream Home Survey” – a study of the Perceptions, Preferences and Pressures of Singaporeans and their ideal home – has revealed that a significant majority of Singaporeans are ready to invest heavily in their dream homes.
• Size of property outranks neighbourhood preferences, amenities or investment potential, while affordability remains top priority
• 34% want to buy a private condo, and 32% plan to do so in the next 3 years
• Key financial pressures – affordability, high interest rates and taxes, and sufficient loan quantum – may impact Singaporeans’ dream home aspirations
• Generational insights reveal Singaporeans’ pragmatic approach to owning property across ages
One-third or 34% are looking to buy a private condo for the next home purchase, where almost three-quarters or a staggering 73% of these respondents are willing to spend S$1-3 million. 32% plan to do so in the next three years.
The survey, conducted in July 2024 with 1,737 respondents and in collaboration with Ngee Ann Polytechnic’s School of Design and Environment, showed that the top three priorities for Singaporeans’ dream homes are affordability, proximity to public transport and property size.
The preference for space is a recurring theme and outranks neighbourhood preferences or nearby amenities. Singaporeans’ wish-list for their dream homes include a large living and dining area, large bedrooms, as well as smart home solutions that provide the ability to control electronics and appliances remotely. Common facilities such as a gym, function room and kid-friendly swimming pools are also on their list of priorities.
However, challenges such as property prices, high interest rates and property tax, inability to secure a larger loan and Additional Buyers Stamp Duty (ABSD) continue to impact Singaporeans’ home ownership aspirations.
“The findings of ERA’s inaugural ‘My Dream Home Survey 2024’ underscore a remarkable trend among Singaporeans: a strong willingness to invest significantly in their dream homes,” said Marcus Chu, CEO of ERA Singapore. “Despite financial hurdles that potential buyers may face, majority are ready to spend to secure their ideal living space, highlighting the importance of home ownership as a cherished goal for many in Singapore.”
Mr Pow Ying Khuan, Lecturer at School of Design & Environment, Ngee Ann Polytechnic said: “The survey reveals a high satisfaction rate of 79% across all property types, highlighting the success of public policies in providing Singaporeans with a roof over their heads. High affordability for BTO flats, with 61% of respondents agreeing or strongly agreeing on their affordability, suggests that financial assistance programs and housing policies have been effective in keeping public housing affordable.”
“Pressures such as high property prices, rising interest rates, and ABSD remain even as cooling measures have successfully helped to tame price growth in private property, evidenced by the slowing growth in URA Property Price Index. Despite this, prospective private home buyers have a healthy budget of S$1-2 million for upgrading aspirations, even if it may mean settling for smaller units or moving to less preferred areas.”
“Introducing innovative design solutions that maximize space and improving the value proposition of properties in less preferred areas through enhanced amenities and infrastructure can help distribute housing demand more evenly across regions. Addressing these affordability challenges and budget constraints will be key to ensuring that those who seek to improve their living conditions can do so, aligning with Singapore’s ongoing growth and development.”
Perceptions
• Singaporeans Aspire To Upgrade Their Current Homes
The survey indicates a healthy level of satisfaction among Singaporeans with their current housing arrangements, as 46% of those polled said they were satisfied and 33% said they were highly satisfied.
However, locals have strong aspiration to upgrade even though most are satisfied with their present housing. 34% are looking to buy a private condo next, 29% want to buy HDB resale, while the rest considered Build-To-Order (BTO), Executive Condos (EC) and Landed properties.
In particular, 35% of Millennials, 37% of Gen X and 37% of Baby Boomers and Seniors prefer to upgrade their homes to condos.
Respondents also see affordable homes across various segments. About half or 45% agree or are neutral on new and resale private properties being affordable. On public housing prices, 32% agree that resale HDB flats are affordable, while 61% feel the same about BTO flats.
• Perference
Future Aspirations: Private Condominiums in Demand
A notable 34% of respondents aspire to buy a private condominium, with 32% planning to do so within the next three years. 55% said they would buy new condos, while the other 45% were open to resale condos.
58% of respondents who want to buy a condo have an ideal budget of S$1-$2M, which is within the price range for a two-bedroom private condo in the Outside Central Region (OCR), and another 20% of respondents have a budget of S$2-3 million. This aligns with transaction data in the first six months of 2024, with 64% of transactions priced at S$2 million or less and another 26% were within S$2 – 3 million.
Survey outcomes show that locals who want to buy condos have a clear preference for City Fringe (24%) and East (22%) areas.
Another 23% of respondents who have plans to buy a next property are looking to buy an HDB resale flat, with City Fringe and the East areas being most popular amongst this group.
What Singaporeans Want: Affordable, Accessible and Right-Sized Homes
92% of respondents currently own a home, reflecting how home ownership remains a paramount goal for Singaporeans.
When considering their next property, affordability tops the priority list for majority of the respondents, while accessibility to public transport and size of property also rank top-of-mind.
“Even as home ownership remains key to Singaporeans, we see a notable shift in preferences – for larger property size and larger communal spaces such as living and dining spaces being top priorities aside from affordability,” added Mr Chu.
“These days, more Singaporeans may be spending time indoors at home as hybrid work arrangements become the norm. Larger spaces may also be more ideal as multiple family members congregate in the same space, especially with more families considering multi-generational living arrangements these days. The overall findings in terms of Preferences of Singaporeans reflect their pragmatic approach towards home ownership, balancing personal needs with long-term value.”
• Contrasting Generational Needs For Dream Homes
21 – 27 y.o.: Gen Z Look to HDB Resale and BTO Flats as First Home With Aspirations To Upgrade
85% of Gen Z respondents indicated home ownership as “important” or “very important”, further underscored by the fact that 35% of them have plans to purchase a property within the next 3 to 5 years.
With their budding careers and earning capacities, only 24% of Gen Z currently own their homes. 23% of Gen Z will buy resale HDBs while 59% of Gen Z look to a BTO flat their first property purchase.
59% of Gen Z aspire to upgrade to a new private condominium in the next 3 -5 years, and 55% have budgets of between S$1-2 million with the North-East as the most popular choice. This is likely due to affordability of homes in this region, compared to the older generations who prefer City Fringe areas or Core City areas.
Conversely, Gen Z respondents seeking an HDB flat primarily favoured the East, with approximately 24% indicating it as their top choice.
28 – 43 y.o.: Millennials Opt for City Fringe Condos, with 20% Ready to Invest S$2 – $3 Million
35% of Millennials surveyed expressed aspirations of moving into a private condo, with 42% aiming to do so within the next 3 years.
Whilst majority of Millennial condo seekers (54%) target a price range of S$1-2 million for their next property, this generation is most likely to have a high budget for a private condo with 20% ready to invest between S$2-3 million. Approximately 25% expressed a desire to reside closer to City Fringe as their preferred location for their condo.
Another 45% of millennials indicated interest in purchasing an HDB flat. 62% are willing to spend between S$500,000 to S$1 million, comprising a healthy budget for the vast majority of HDB resale flats. Based on HDB resale transactions in 1H 2024, 97% of the flats transacted are below S$1 million.
Millennials’ property purchasing decision are strongly influenced by their housing needs, such as affordability and size, without preference for new or resale condos. This trend can be linked to their longer careers, giving them more time to build wealth. Without the immediate need to save for retirement, millennials have more flexibility in their housing budgets.
44 – 59 y.o.: Gen X Balances Budgets with Strategic Investment
Similar to Millennials, Gen X respondents showed the most interest in purchasing private condos at 37%. 54% indicated that they had a preferred budget of S$1-2 million for their future private condo home and 18% of Gen Xers are comfortable with a budget range of S$2-3 million. Half or 52% of Gen X condo seekers plan to move in the next 5 years.
Gen Xers display an overwhelmingly strong preference for new condominiums, with a significant 64% of them prioritising newly-built properties – far surpassing other generational cohorts. This preference likely stems from the appeal of greater potential for capital appreciation, qualities that align well with the long-term financial goals of Gen Xers. City Fringe areas (29%) and the East (23%) are most sought after by Gen X when it comes to their dream condos.
As early entrants into Singapore’s property market, Gen Xers have benefitted significantly from price appreciations during past market booms. This has contributed to a strong belief that properties are sound investment vehicles.
Even so, roughly 44% of all Gen X respondents expressed interest in purchasing an HDB flat for their future residence. Notably, even though the bulk of Gen Xers (51%) belonging to this subgroup indicated that they had a budget of S$500,000 to S$1 million in mind, a substantial number of them (46%) preferred a more conservative budget of under S$500,000. The conservative budget that falls within S$500,000 could indicate their intent to move to smaller flat types. In 1H 2024, 32% of resale transactions were transacted below S$500,000 and well distributed islandwide.
60 y.o. and above: Baby Boomers, Seniors Focus on Right-Sizing and Legacy Planning
Baby Boomers and Seniors showed substantial interest in continuing their property journey, with 54% of this demographic expressing intentions to purchase another property. This is likely driven by a desire to right-size, given that 33% of the above demographic consists of two-person households, the highest percentage among all age groups.
Supporting this notion, the large majority of all Baby Boomer and Senior respondents, 70%, indicated that their future property purchase is intended for their own stay. Also, the ABSD refund for single seniors aged 55 and above, announced in April 2024, could further motivate this group of buyers to right-size.
Just slightly over half or 56% of older condo seekers indicated a preference for the S$1-2 million range, with a small but significant minority of 22% expressing comfort with a budget of S$2-3 million, possibly due to considerations of wealth preservation and legacy planning.
In contrast, 57% of older HDB flat seekers displayed an inclination towards flats under S$500,000, although 38% were open to spending between S$500,000 to S$1 million. Similarly, this too reflects a desire among these senior respondents to right-size and access retirement funds, while still having a home of their own. Most older condo seekers showed keen interest in residing in the City Fringe (25%), and 41% intend to purchase within the next three years.
• Pressures
The top three pressures that homebuyers face today are affordability, higher interest rates and property tax, as well as difficulty securing a larger loan.
Among the responses received about challenges faced in home ownership, 25% of the responses indicated private home affordability is a concern. This may indicate respondents find new home prices a challenge and could be more inclined to buy resale.
In 1H 2024, 64% of non-landed transactions fell within S$2 million and another 26% were within the S$2-3 million range. Among which, at least 26% of these deals were within the Rest of Central Region (RCR). The price gap between new and resale homes remains noticeably wide, with median prices in the RCR and OCR showing a difference of nearly 37% and 39%, respectively.
17% of respondents said interest rates have impacted affordability and 16% said this impacted loan eligibility. Another 13% of respondents agree that the ABSD is a key barrier to them buying their next property.
The survey findings are reflective of the softening of new home sales in the first six months of 2024, driven by economic challenges and elevated interest rates, reflects a more cautious buyer sentiment. This could be further compounded by pricier properties and more stringent financing conditions.
That said, potential rate cuts by the U.S. Federal Reserve could alleviate the pressure on local mortgage rates, making home loans more affordable and potentially stimulating Singapore’s property market.
“As Singaporeans navigate the evolving landscape of home ownership, their Perceptions, Preferences, and Pressures they face will continue to shape their housing decisions,” Mr Chu added. “Given that the aspiration to invest in their dream homes remains strong, Singapore’s homebuyers will require personal financial resilience and careful planning to turn these aspirations into reality.”
SINGAPORE, 23 April 2024 – APAC Realty Limited (“APAC Realty”, the “Company” or together with its subsidiaries, the “Group”), a leading real estate services provider which operates a market-leading real estate brokerage in Singapore under the ERA brand, has entered into a ERA Franchise Agreement (the “Agreement”) with Upper Room Realty (Phils.) Inc. (“Franchisee” or “Upper Room”) for Manila, Philippines.
Under the Agreement, Upper Room has the right to operate or grant memberships for the operation of ERA member broker offices in Metro Manila for an initial 15-year term with effect from 4 May 2024. The Company has the option to purchase up to 20% of the shares in the Franchisee at a price determined by an independent valuer to be agreed between both parties, within 3 years from franchise agreement date. The Franchisee has the option to be granted exclusive and extended to the rest of Philippines, subject to additional fees and the fulfilment of certain conditions as set out in the Agreement.
Mr Marcus Chu, CEO of APAC Realty Limited said, “We are thrilled by this significant agreement, especially since it closely follows the signing of Master Franchise Agreements for Laos and Queensland in 2023. It underscores our dedication to expanding our Asia Pacific network and achieving our regional growth objectives. Furthermore, it is a testament of ERA Asia Pacific’s brand and reputational leadership in the region. The addition of the Philippines marks the 13th country in ERA Asia Pacific’s portfolio and the 40th under the ERA global umbrella.”
Upper Room will establish ERA Manila and its first Philippine based office at Century Spire Tower in the heart of the central business district of Makati, Manila. ERA Manila will be overseen by Mr Wealth Bourne Larida Gillego, an experienced figure in real estate, alongside Mr Arnel Almo Dela Rosa, a seasoned lawyer and certified public accountant specializing in the property sector. Mr Gillego will assume the role of Chairman, while Mr Dela Rosa will serve as President of ERA Manila.
“We are delighted to be a part of the ERA family and to serve as the Group’s representative in the Philippines. ERA Manila will adopt the highly successful business model and systems of ERA Singapore, and focus on Metro Manila in our first three years of operation. To announce our arrival in Manila’s thriving residential market, we will provide salespersons with better commission splits, access to local and regional projects, and upskilling opportunities through ERA Singapore’s salesperson training programmes. This will allow us to differentiate ourselves in the highly fragmented agency business and recruit up to 1,000 salespersons in the first three years of operation,” said Mr Gillego, Chairman, ERA Manila.
The Philippine Economy
The Philippines’ Department of Finance (“DoF”) reported that the economy closed 2023 with a GDP growth rate of 5.6%, despite an elevated inflation rate and external challenges to outpace major economies in Asia[1]. The strength was driven by domestic demand which was underpinned by higher household consumption and investments, particularly the government’s ‘Build-Better-More’ Program which continues have a multiplier effect on the economy. The ‘Build-Better-More’ infrastructure program[2] presently includes 194 Infrastructure Flagship Projects covering essential projects such as expressways, bridges, airports, railways, ports, telecommunications, and other social infrastructure, with an aggregate value of approximately PHP 8.3 trillion (approximately US$147.8 billion[3]).
Despite ongoing domestic and external headwinds, the DoF expects the country to record faster GDP growth of 6.5% to 7.5% percent in 2024. Drivers such as decelerating inflation, a robust and young labor market, improvements in the ease of doing business, sound external conditions, and a strong financial sector are expected to realise new investment and business growth that will provide high-quality jobs and increase household consumption[4].
Metro Manila Residential Market
Of the country’s population of 115.5 million[5] people, approximately 15 million[6] reside in the Metro Manila region. Investment activity in the Metro Manila region remained resilient in 4Q2023, especially in the luxury and Upscale property sector[7]. Consequently, the region saw a notable annual price increase of 26.3% in its high-end market in 2023, surpassing Dubai’s 16% price gain, which secured the top spot in last year’s report[8].
Commenting on the market, Mr Gillego said, “We will focus on the residential market in the first instance, working closely with local developers within our established network – such as Rockwell Land, Arthaland Corporation, SM Development Corporation (SMDC), Robinsons Land Corporation and Century Properties. We will also focus on Metro Manila’s strong resale market which continues to be driven by healthy demand from local homebuyers.”
ERA Franchising Model: A Win-Win Proposition
ERA Singapore’s franchising model presents a beneficial pathway for franchisees to fast-track growth, offering a combination of strong brand recognition, proven business model, access to property technologies and innovation, on-going support and networking opportunities.
Equating the benefits of franchising to the Group’s regional growth strategy, Mr Chu said, “Franchising serves as a low-risk avenue to enter new markets effectively. Through our rigorous selection process, we carefully identify reputable country partners committed to maintaining our brand’s integrity and delivering exceptional service to clients. The option to buy a stake in the franchisee in the near future provides us with the flexibility to participate in the growth and development of the franchisee at the right time.”
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[1] https://www.dof.gov.ph/phs-full-year-2023-gdp-growth-strongest-among-major-asian-economies/
[2] https://neda.gov.ph/build-better-more-infra-program-to-further-propel-ph-economy-neda/
[3] Based on PHP1.0 : USD0.018 on 2 March 2023
[4] https://www.dof.gov.ph/phs-full-year-2023-gdp-growth-strongest-among-major-asian-economies/
[5] World Bank Data, 2022 (Latest)
[6] https://worldpopulationreview.com/world-cities/manila-population
[7] https://www.jll.com.ph/content/dam/jll-com/documents/pdf/research/apac/jll-asia-pacific-sector-reports-4q-2023.pdf
[8] https://www.mansionglobal.com/articles/philippines-capital-manila-led-the-world-in-luxury-home-price-growth-last-year-28a75839
SINGAPORE, 19 February 2024 – ERA Realty Network Pte Ltd (“ERA”) is pleased to announce the planned relaunch of Pine Grove collective sale on 6 March 2024, with the public tender closing on 5 May 2024.
Pine Grove was originally launched for sale at SGD1.95 billion on 14 September 2023, and the tender closed on 29 November 2023 with muted response from developers. An Extraordinary General Meeting was held on 21 January 2024 and owners commenced signing a Supplemental Agreement at a lower reserve price of SGD1.78 billion, reflecting a land rate of approximately SGD1,335 psf per plot ratio after factoring in the additional 10% bonus gross floor area under the various incentive schemes and inclusive of an estimated Land Betterment Charge (LBC) of SGD975 million for intensification and lease upgrade for a fresh 99-year lease. More than 60% of owners have signed the Supplemental Agreement to date.
The above estimated LBC is based on September 2023 rates, and may be subject to revision on 1 March 2024.
“The revised reserve price of $1.78 billion reflects an 8.7% reduction from the previous reserve price of $1.95 billion, presenting a compelling opportunity for developers and investors looking to acquire a sizeable development site facing the Dover Forest and near to the Dover MRT Station,” says Mr Marcus Chu, CEO of ERA.
“The recently revised Additional Buyer’s Stamp Duty (ABSD) remission clawback for residential projects offers respite to developers who are unable to fully sell the new units within five years, a positive development for large collective sale sites like Pine Grove,” adds Chu.
SINGAPORE, 22 January 2024– ERA Realty Network Pte Ltd (“ERA”) is pleased to announce its exclusive appointment to launch for sale via Expression of Interest, a unique opportunity to acquire two floors of prime retail space in CT Hub for a guide price of SGD85 million (or SGD1,666 psf on strata area).
Strategically located along the junction of Kallang Avenue and Kallang Bahru, the retail podium spans across two floors within CT Hub, an 11-storey multiple-user light industrial building. It comprises 49 strata units offering a combined strata area of 4,741 sq m (or approximately 51,028 sq ft).
The property boasts exceptional accessibility, with Bendemeer and Lavender MRT Stations just 3 minutes and 12 minutes’ walk away, respectively. It is also easily accessible via major roads and expressways, including Lavender Street, Kallang Bahru, Serangoon Road, Bendemeer Road, Balestier Road, Central Expressway (CTE), and Kallang Paya Lebar Expressway (KPE).
Being in the city fringe, the property benefits from its proximity to numerous lifestyle and entertainment destinations such as Singapore Sports Hub, Singapore National Stadium, Lavender, Clarke Quay and Chinatown. It is also less than 14 minutes’ drive away from Singapore’s Central Business District. The retail podium enjoys a ready catchment pool from the nearby industrial buildings, as well as residential enclaves of Boon Keng and Kallang, and numerous boutique hotels opposite CT Hub.
The retail podium has recently undergone a repositioning effort, transforming into a dynamic sports and lifestyle destination. Boasting a diverse range of Food & Beverage options, sports and entertainment facilities, including a rock-climbing feature on the ground floor of the podium, which is a huge draw of patrons during weekday nights and weekends. The property currently maintains high occupancy rates, offering potential investors immediate rental income and the possibility of rental upside upon renewal.
Mr Steven Tan, Managing Director of Capital Markets & Investment Sales at ERA, said “The retail scene in Singapore is expected to remain robust in 2024, buoyed by resilient consumer spending and the continuous recovery of inbound tourism. This presents an excellent investment opportunity for investors seeking for retail assets in city fringe locality, with the potential for a gross yield of about 5%, given its current high occupancy and potential for upward rental reversion by the end of 2024”.
“We believe that the retail podium’s strategic location, only minutes away from the MRT stations by foot, offer utmost convenience for both tenants and patrons to the mall. With its latest repositioning to include a rock-climbing tenant, it is a significant draw for rock-climbing enthusiasts during weekday nights and weekends, contributing to the overall appeal and character of the mall, potentially increasing foot traffic and engagement,” he added.
The Expression of Interest exercise for the prime retail space in CT Hub closes on Tuesday, 5 March 2024 at 3pm.
SINGAPORE, 15 December 2023 – ERA Realty Network Pte Ltd (“ERA”) is proud to secure another new transaction record at Toa Payoh Apex, marking a milestone for the newest 5-year-old estate that recently obtained its MOP.The property, a spacious 4-room flat located at 263 Toa Payoh East, boasts an impressive 1,001 sqft (93 sqm) and is located above the 30th floor. The transaction price reached an unprecedented $1,050,000, positioning it as a landmark achievement within the Toa Payoh Apex project.
Strategically situated less than 900m from Toa Payoh MRT and Toa Payoh town central, the flat offers unparalleled convenience with its proximity to markets, food centres, 24-hour supermarkets, and is right across from SAFRA Toa Payoh. Moreover, the property is just a 5-minute walk to the future new Sports Centre which will offer residents easy access to a polyclinic, library, as well as a town park which is expected to be ready by 2030. Additionally, it falls within the 1-km radius of three primary schools, including Pei Chun Public School.
Ms Amelia Tham, who brokered the sale of this unit, shared that it was introduced to the market in November and successfully sold in approximately one month. She noted that this transaction stands out as potentially the first to cross the $1 million-dollar mark for Toa Payoh Apex, with about four transactions published on the official HDB website to date.
“In the current housing landscape, buyers considering future purchases will encounter more restrictions, including an extended MOP of 10 years under the PLUS and PRIME categories, making this current unit an attractive option,” said Amelia. “With lower subsidy recovery rates for PLUS-category flats upon resale, demand for units with similar attributes is increasing. All in all, this flat offers exceptional value, striking a balance between size, cost, and desirable features.”
Toa Payoh Apex comprises four 36-storey residential blocks and stands out as a distinctive development, offering panoramic views of Toa Payoh. The architectural design, inspired by the famous dragon playground, features mosaic patterns, warm colors, and a rooftop lattice symbolizing the dragon’s ascent into the sky.
SINGAPORE, Friday, 31 November 2023 – ERA Realty Network Pte Ltd (“ERA”) contributed $280,000 to ComLink @ Jurong West’s “Gift-A-Family” (GAF) initiative.
The GAF initiative is a social innovation under ComLink @ Jurong West, developed by the Social Service Office @ Boon Lay together with Boon Lay Grassroots Organisations and Boon Lay Constituency Office. Through individual and corporate donations, it gives the ComLink families with children below 21 years old and staying in rental flats the opportunities and resources to meet their aspirations, or resolve challenges that Government schemes / services may not address. By partnering with grassroot leaders and the Social Service Office @ Boon Lay, ERA’s ESG (Environmental, Social, Governance) division is taking tangible steps to provide essential education and skills training, which will not only offer stability and self-reliance but also open doors to social mobility.
Minister Desmond Lee remarks, “The ‘Gift-A-Family’ initiative exemplifies the spirit of community support and opportunity for those in need. ERA and its partners are taking commendable steps to offer sponsorship for tuition, skills and enrichment classes for lower-income families that will help them achieve self-reliance and social mobility. This is a testament to the power of collective efforts in making a meaningful impact.”
Wendell Wong, Chairman of GAF Committee @ Boon Lay adds, “GAF is about caring for fellow Singaporeans with the joy of gifting. We are committed to these families in Boon Lay beyond financial contributions and strive to make a genuine and lasting impact on their lives. It’s about nurturing aspirations and providing opportunities and hope for a better tomorrow.”
ERA’s involvement in the Gift a Family initiative has been substantial. Among the current five beneficiaries supported, Jason (not his real name) is one such recipient. Commencing art lessons just 9 months ago, Jason demonstrates a natural gift and passion for art. Impressively, despite his relatively brief engagement, he achieved the remarkable distinction of being the 5th Runner-up among over 300 participants in the recent art competition.
CEO Marcus Chu shares, “At ERA, we believe in the power of transformation through education and support. Our involvement with Gift-a-Family reflects our commitment to making a real difference in the lives of those we touch. Jason’s achievements within a short span of time exemplify the potential within each of our beneficiaries. It’s not just about financial assistance; it’s about nurturing talent and helping dreams take flight. We are honoured to play a part in their journey towards a better tomorrow.”
ERA is extending an invite to all members of the public to join hands with them in this noble endeavour. All contributions can help deserving families achieve their aspirations and bring hope to those who need it the most. To make a kind donation, please visit: bitly.ws/PSjZ
SINGAPORE, 27 November 2023 – ERA Realty Network Pte Ltd (“ERA”) is pleased to be appointed as the marketing consultant to launch for the sale, via Expression of Interest, a landed development site located at Nos. 113 and 113A Shrewsbury Road, Singapore.The freehold site comprises 2 plots with a combined land area of about 909.1 sqm or 9,785 sqft. Under the 2019 Master Plan, the site is zoned for residential use with a gross plot ratio of 1.4. As the site area is below 1,000sqm, it is not capable of redevelopment into an independent block of apartments under current URA guidelines. However, the site has a wide frontage of about 36m onto Shrewsbury Road and is able to accommodate various landed housing schemes, subject to approval from the relevant authorities. The guide price for the site is SGD22 million or a rate of SGD2,248 per square foot over the land area.
“The excellent location of the site close to amenities and renowned schools, coupled with its freehold tenure, offers a compelling opportunity not only for developers but also buyers looking to build multi-generational homes for their families,” says Mr Tay Liam Hiap (郑廉协), Managing Director of Investment Sales at ERA. “Furthermore, the regular site configuration and wide road frontage facilitates land subdivision, and the site also has a high development baseline with no expected Land Betterment Charge (LBC) to be payable,” adds Tay.
The subject site is located off Moulmein Road and within a prime District 11 residential enclave. Malls such as Velocity @ Novena Square, Square 2 and United Square, which provide a wide array of shopping and dining options, are all just a short walk away. The 17-hectare HealthCity Novena which consists of a cluster of modern world-class medical services and facilities, as well as KK Women’s and Children’s Hospital, can be found within close proximity to the property. There are also several hotels in the locality namely Courtyard by Marriott Singapore Novena, Oasia Hotel Novena and Hotel Royal.
The site is within 1-km of reputable schools like St. Joseph’s Institution Junior and Hong Wen School, and within 2-km of CHIJ Primary Toa Payoh, Anglo-Chinese School (Primary), Anglo-Chinese School (Junior) and St Margaret’s School (Primary). Accessibility to other parts of the island is excellent, with Novena MRT station only a short walk away. The convenience is augmented by the comprehensive road network which comprises of the Central Expressway (CTE), Pan-Island Expressway (PIE), Thomson Road and Newton Road, amongst others.
The Expression of Interest exercise will close at 3 pm on 19 December 2023.