Singapore Property: Why Queenstown & Clementi Sales Signal a Shift in Buyer Demand
Singapore’s property market is sending a clear signal: pent-up demand, coupled with favorable borrowing rates, is driving robust sales, even in areas that haven’t seen new launches for nearly a decade. The near sell-out of Skye at Holland last week was followed by impressive figures from Penrith in Queenstown (97% sold, average $2,800 psf) and Faber Residence in Clementi (86% sold, average $2,160 psf). But this isn’t just about a temporary surge; it’s a potential harbinger of changes in how and where Singaporeans are choosing to invest in property.
The HDB Upgrader Effect & The Appeal of Established Neighborhoods
The strong performance of Penrith, particularly its appeal to HDB upgraders, is a key trend to watch. Queenstown consistently ranks among the top HDB towns for million-dollar resale flats, indicating a strong desire among residents to upgrade to private property within their familiar community. ERA’s CEO Marcus Chu noted over 100 such transactions in 2025 alone. This suggests a significant pool of potential buyers actively seeking new condo options in established neighborhoods with strong amenities and convenient locations.
Expert Insight: “The desire to stay within a familiar neighborhood, close to family, schools, and existing social networks, is a powerful driver for HDB upgraders,” says seasoned property analyst, Alice Tan. “Developers who recognize and cater to this preference will be well-positioned to succeed.”
Beyond Location: Unit Mix & Family Focus
Penrith’s focus on larger unit types – two to four-bedroom apartments – and its lack of one-bedroom units further underscores this family-focused demand. This isn’t a market driven by investors seeking smaller, rental-focused units; it’s driven by families looking for space and a long-term home. Faber Residence mirrored this trend, with two- and three-bedroom units being the fastest to sell.
Did you know? The average household size in Singapore is around 3.4 persons, according to the Department of Statistics Singapore, highlighting the continued demand for family-sized homes.
The OCR Advantage: Attractive Pricing & Value Proposition
Faber Residence’s success demonstrates the power of attractive pricing, particularly in the Outside Central Region (OCR). The developers’ ability to secure the land at a 30% discount compared to nearby sites allowed them to offer units at a competitive price point – just under the OCR average of $2,275 psf. This highlights the importance of land acquisition strategies and cost management in delivering value to buyers.
Pro Tip: For prospective buyers, focusing on projects where developers have secured land at favorable rates can unlock significant savings and potentially higher returns on investment.
Government Land Sales (GLS) & Future Supply: A Potential Turning Point?
The robust sales figures are already prompting discussion about the potential need for increased land supply. Huttons Asia’s CEO, Mark Yip, suggests the government may consider increasing the 2026 GLS programme to meet the growing demand. This is a crucial point. While increased supply could moderate land prices, it also carries the risk of oversupply if not carefully calibrated to actual demand.
Increased land supply isn’t a simple solution. It requires careful consideration of infrastructure capacity, transportation networks, and the overall economic outlook. A sudden influx of new units could also put downward pressure on rental yields, impacting investors.
The Low Interest Rate Catalyst & Its Sustainability
The current low interest rate environment is undoubtedly a contributing factor to the recent sales surge. Borrowing rates haven’t been this low since 2023, making property investment more accessible and attractive. However, this is a temporary condition. As global economic conditions evolve, interest rates are likely to rise, potentially dampening demand.
Key Takeaway: The current window of opportunity for buyers, driven by low interest rates, may be closing. Those considering a purchase should act decisively and carefully assess their financial capacity for potential rate increases.
Will the Frothiness Continue? A Contrarian View
Not everyone is convinced the current momentum is sustainable. Nicholas Mak, chief research officer at Mogul.sg, expressed surprise at the strong response to Faber Residence, suggesting the market may be becoming “frothy” – driven by speculative demand rather than fundamental value. This raises a valid concern. While the underlying demand is real, the risk of overvaluation and a potential correction remains.
See our guide on Understanding Property Valuation Methods for a deeper dive into assessing property worth.
Looking Ahead: The Rise of Hyper-Local Demand & Niche Developments
The success of Penrith and Faber Residence suggests a growing trend towards “hyper-local” demand – buyers prioritizing established neighborhoods with strong community ties and convenient amenities. This trend will likely continue, driving demand for projects that cater specifically to the needs of local residents.
We can also expect to see a rise in niche developments – projects that cater to specific demographics or lifestyles. For example, developments focused on multi-generational living, co-living spaces, or eco-friendly designs could gain traction in the coming years.
Frequently Asked Questions
Q: Is now a good time to buy property in Singapore?
A: It depends on your individual circumstances and risk tolerance. While demand is strong and interest rates are low, potential buyers should carefully assess their financial capacity and consider the possibility of future rate increases.
Q: What areas of Singapore are likely to see strong property demand in the future?
A: Established neighborhoods like Queenstown, Clementi, and those with strong HDB upgrade potential are likely to remain in demand. Areas undergoing significant infrastructure improvements or with access to good schools are also worth considering.
Q: How will the government’s land sales policy impact the property market?
A: An increase in land supply could moderate land prices and potentially slow down price growth. However, it’s crucial that the supply is carefully calibrated to avoid oversupply and maintain market stability.
Q: What should I look for when choosing a new condo?
A: Consider your lifestyle needs, budget, location preferences, and the developer’s track record. Pay attention to the unit mix, amenities, and potential for future appreciation.
What are your predictions for the Singapore property market in the next 12-18 months? Share your thoughts in the comments below!
