Tag Archives: residential projects

More launches around the corner

With recent launches being warmly received by the market, developers are poised to unveil more residential projects in the coming months, reported The Straits Times.

Last weekend, two new developments reported healthy demand following the start of sales.

Qingjian Realty’s The Visionaire executive condominium (EC) in Canberra Link found buyers for 158 of the 632 units at an average price of $811 psf.

Sturdee Residences by Sustained Land at Jalan Besar moved 122 of the 305 units at an average price of $1,550 psf during its preview, before its official launch this Saturday (30 April). Most of the units transacted were one- to two-bedroom units, while three out of the eight penthouses were sold. Of the latter, two units measuring 1,830 sq ft each were sold for $3.2 million apiece.

“Buyers have all along been very interested in property despite the measures, but they are very selective,” said Eugene Lim, ERA Realty’s Key Executive Officer. “Project attributes and pricing are important, and developers are likely to price attractively,” he added.

Given the strong interest in these launches, more developers are following suit.

This weekend, Frasers Centrepoint Limited and Keong Hong Holdings will jointly launch Parc Life EC, which received more than 700 e-applications after the application period closed on Sunday (24 April). Situated in Sembawang Crescent, the project contains 628 units priced from $770 psf to $800 psf.

The sales gallery for Gem Residences in Toa Payoh is also set to open this weekend, with bookings commencing in end-May. Developed by Evia Real Estate, Gamuda and Maxdin, the average price of the 578-unit project is around $1,480 psf.

Moreover, Cheung Kong Property is anticipated to begin pre-sales for Stars of Kovan next month. The mixed-use project along Tampines Road features five strata terraces, 46 shops and 390 condo units, which cost around $1,550 psf to $1,600 psf.

Unsold units will take many years to clear

With more residential projects set for completion in the coming quarters, property developers will need more time to clear their inventory of unsold units in previously launched developments, reported Singapore Business Review citing a Savills report.

“Adopting the CCR’s average monthly sales for the period of January to May 2015, and assuming there will be no further Government Land Sales (GLS), it will take about 12 years to clear the inventory of unsold units in projects under development now,” said Savills.

It highlighted that the situation is even more serious for projects located away from the central region, since the GLS programme is generally focused on the OCR and RCR.

“The time to clear the stock of present and future unsold units will be more than 12 years. Therefore, even if island-wide take-up rates double, it will take well over five years to sell down the inventory,” the report stated.

While demand is expected to gather pace in the near future, this does not mean that the property market has returned to normal.

“The broad brush measures have merely made the smaller units more affordable to local buyers whereas larger units and those with a high price quantum, mainly those projects in the CCR, are not selling fast enough to clear off the unsold inventory.

“Lowering prices further would not be a panacea to increase demand because much of the unsold stock are larger units, which, because of the larger price quantum and the various cooling measures, are beyond the reach of many locals and permanent residents,” added Savills.