Archive for category: Misc

There has been a significant increase in private real estate investment volumes in Singapore in the second quarter of 2025, according to Michael Tay, deputy managing director of CBRE and head of capital markets Singapore. This comes after a rise in investment activity in the first six months of the year.

Tay explains that investors have been diversifying their investments by buying into a variety of asset classes such as industrial and residential developments. However, contrary to expectations, there has not been a repricing of asset classes in the first half of 2025.

He adds that this trend is also reflected in other key regional markets in the Asia Pacific region, with Japan, mainland China, South Korea, and Australia receiving the most inbound real estate investment capital.

Tay shares these insights at the Real Estate Market Outlook 2025 conference organised by the Real Estate Developers’ Association of Singapore (Redas) on July 24, where the guest of honour was Indranee Rajah, Minister in the Prime Minister’s Office, and Second Minister for National Development and Finance.

The brisk investment activity in the Asia Pacific region comes amidst global concerns over the ongoing US-China trade war, inflationary pressures, and the imposition of steep tariffs by the US. Taimur Baig, managing director and chief economist at DBS Bank, says that the tariffs are unlikely to have the desired effect of revitalizing the US’s manufacturing base, as the country’s consumption appetite for goods produced in Asia remains strong.

Baig also points out that China is emerging as a leader in cutting-edge technologies in life sciences and pharmaceuticals. He expects most technological breakthroughs in these sectors over the next 15 years to come from Chinese-based firms, undermining the idea of eroding China’s manufacturing capability through trade policies. However, the US-China trade war has had a negative impact on consumer and investment sentiment.

The unpredictability of the trade war is weighing heavily on the minds of real estate investors, with 61% of fund managers surveyed by CBRE citing it as their top concern. Investors are also concerned about a possible recession, particularly those with exposure in mainland China and Singapore.

Investors with exposure to Singapore are also worried about interest rate cuts coming slower than expected this year. However, Tay notes that investors looking to deploy capital in Singapore’s real estate market are focusing on institutional-grade modern logistics assets, centrally located Grade-A offices, and neighborhood shopping malls.

Regarding Singapore’s private residential market, prices have risen by 55% over the past eight years despite several rounds of property cooling measures, according to Leonard Tay, head of research at Knight Frank. The latest round of cooling measures, which came into effect on July 3, saw an increase in holding period for seller’s stamp duty (SSD) on residential properties to four years with increased rates.

While there were 7,261 private residential units sold in the first quarter of 2015, with about 3,375 units coming from the primary market, the second quarter of 2025 saw 5,128 units sold, with developers moving 1,212 units during the period. Knight Frank estimates that total new home sales for this year will range from 7,000 to 9,000 units sold, with home prices increasing by 3% to 5%.

Leonard Tay notes that the steadily growing affluence and relatively low levels of household debt among Singaporeans have largely supported the ongoing pace of demand for private residential properties. He adds that the price increases in city-fringe and suburban locations are primarily driven by local buying power, with compelling new launches continuing to attract homebuyers as long as the economy remains stable.

Families living at Coastal Cabana are fortunate to have access to a diverse range of schools in the area. The community is surrounded by reputable options such as Pasir Ris Primary School, Casuarina Primary School, and Elias Park Primary School, providing families with excellent choices for their children’s education. For secondary education, there are convenient commutes to Hai Sing Catholic School, Pasir Ris Crest Secondary School, and Loyang View Secondary School.

Post-secondary education options are also well within reach, with Temasek Polytechnic and institutes in the Tampines and Changi corridors located in the East. This makes it easy for students in the community to pursue their desired courses without having to travel far.

On top of that, there is a wide selection of enrichment centres in Pasir Ris Town and Downtown East, creating a seamless flow of weekdays from school to classes and then back home for families at Coastal Cabana. This means minimal back-tracking and the convenience of having all these education and enrichment opportunities at their doorstep.

On a final note, Tay mentions that the private residential market has demonstrated its resiliency despite headwinds in the global economy and ongoing uncertainties.

The Redas Real Estate Market Outlook 2025 conference, which coincides with SG60 celebrations, celebrated the public-private partnership between the government and stakeholders in the built environment sector. Minister Indranee Rajah, in her keynote address, said that the government will continue to keep the sector future-ready through initiatives like CORENET X (mandatory from Oct 1) and the $100 million Built Environment Technology and Capability (BETC) Grant.