Tag Archives: Singapore New Residential Property

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.

Seven in 10 new private condos sold in H1 at under S$1.25 m

A STUDY by CBRE has showed that 71.7 per cent of new sales of private apartments and condos in the first half of this year had price tags of below S$1.25 million each. This is higher than the 63.6 per cent share recorded for the whole of last year.

The property consultancy group observed that even with a longer-range view – looking at figures since 2007, despite rising wages and inflation – this sweet spot of consumers has stayed largely unchanged.

CBRE research head Desmond Sim said: “Our study of caveats lodged for non-landed new sales from 2007 to H1 2014 showed that 55 to 75 per cent of transactions were priced below S$1.25 million each. In particular, the most popular price band was from S$750,000 to S$1 million over this period.”

Looking at the addresses of buyers of new sale units with price tags below S$1.25 million, CBRE noted that, since 2008, 52 to 67 per cent of them have been HDB occupiers.

“They could be HDB upgraders, or singles and new couples looking for their first homes. The TDSR (total debt servicing ratio) framework has just closed the lid tighter on liquidity and made it that much harder for HDB upgraders to buy a private property, much less new couples aspiring to join the fray by bypassing the HDB route,” Mr Sim said.

Although the proportion of HDB dwellers among buyers of new non-landed private homes below S$1.25 million was at a high of 66.7 per cent in H1 2014, the absolute number of such buyers was only 1,696 in the first six months of this year; this is lower than the 1,967 figure for H2 2013 and 3,385 for H1 2013.

The number of units below S$1.25 million picked up by those with private addresses also fell markedly to 847 in H1 2014, from 1,459 in H2 2013 and 2,248 in H1 2013.

This reflects the across-the-board drop in property transaction volumes following the introduction of the TDSR framework in late June 2013.

DTZ SEA chief operating officer Ong Choon Fah said that a large portion of HDB dwellers buying private homes are likely doing so for owner occupation.

She acknowledged that some of these upgraders would be moving into smaller private housing units. “They may be downsizing, but psychologically, they feel they have arrived because they have upgraded to join the 20 per cent of households here living in private homes.

“Moving to a private condo allows you to pamper yourself with club-style facilities just a door-step away. This is especially appealing to those with kids.”

She pointed out that the design of condo projects has changed to include a higher proportion of small units. “Developers now offer more amenities and spaces for entertaining – not just at the clubhouse and poolside but sky gardens for instance – to cater to residents in small units who wish to entertain guests outside their units.”