High prices at new condo will test buyer demand

J Gateway, an upcoming condo in Jurong East, is expected to sell units for as much as S$1,600 psf — a price that will test buyer demand for suburban homes, according to analysts.

Developed by MCL Land, the 738-unit project is expected to sell a 474sq ft one-bedroom unit for as high as S$1,650 psf while a 1,163sq ft four- bedder could go for S$1,450 psf on average, said marketing agent Huttons.

While the S$1,650 psf selling price would be a record for Jurong East, International Property Advisor Chief Executive Ku Swee Yong said, buyers will likely be drawn to buy as J Gateway is the first condo near the Jurong East MRT station in 10 years. For instance, an agent said he has received 100 queries from interested buyers in just a matter of three weeks.

R’ST Research Director Ong Kah Seng agreed that the condo’s location is its strongest selling point. “A lot of buyers are excited about projects in new growth areas. I would suppose Jurong East is able to offer that.”

Meanwhile, Alan Cheong, Research Head at Savills Singapore, said: “If you adjust for J Gateway’s location within the new Jurong Lake District, the range of S$1,450 psf to S$1,650 psf is definitely expected.”

Cheong also noted that if J Gateway is well-received with its launching prices, it will likely create a ripple effect on the prices of other homes in the area.

“It’s like disturbing a quiet pond. With one mega launch like this, it will certainly create waves around the region,” added Choeng.

Source – PropGuru – 12 June

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