New Condo Launch Singapore
New Condo Launch – This first quarter of 2016 proved to be rather interesting where new property launches are concerned. There were concerns that with the gloomy economy, new condo launch will be passive and weak in terms of units sold.
However, in March, after the government announced that they will not ease the cooling measures, there was a strong sale of new property launches. It was seen as a significant pent-up demand. Many buyers was waiting in line for the prices to fall drastically and looking forward for the cooling measure to be either removed or relaxed, both of which did not happened. (continue…)
Click Above to view All Launches at City Fringe Singapore
District 03 – Queenstown / Tiong Bahru
District 04 – Sentosa / Telok Blangah
District 05 – Pasir Pangjang / West Coast / Clementi Town
District 06 – High Street / North Bridge Road
District 07 – Rochor / Bugis / Beach Road
District 08 – Little India
District 10 – Bukit Timah / Holland Road / Tanglin District 11 – Newton / Novena
District 12 – Balestier / Toa Payoh / Serangoon / Boon Keng
District 13 – MacPherson / Braddell / Potong Pasir
District 14 – Geylang / Eunos / Paya Lebar
Click Above to view All Launches at East Singapore
District 15 – Katong / Joo Chiat / East Coast <br>
District 16 – Bedok / Upper East Coast<br>
District 17 – Changi / Loyang<br>
District 18 – Tampines / Pasir Ris<br>
(Continued from the top…)
There were great opportunities in Cairnhill and Yishun and many buyers were drawn to these projects. A number of previously launched developments also saw an improvement in their sales in March. Pricing was at the right market price and resulted in the first quarter results to a sale of 1.470 units. The conclusion was there is underlying demand for the residential market.
It was also reported that developers would rather pay the Additional Buyer Stamp Duty (ABSD) than to lower their prices in the prime markets. Take the case of Mon Jervois which had a balance of 59 units unsold. ABSD to be paid in February 2017 would be around $250,000 per unit. The developer did not want to make price adjustments but instead to tap on their financial muscle or possibly a business strategy to pay the ABSD instead.
At the ultra-luxury residential segment, it seems that high-net worth investors are back in their radar. There was a few transactions in the Core Central Region (CCR) and provided a little light at the end of the tunnel. After a prolonged period of 2 years in the decline, better prices seem to be on the cards.
This showed the confidence of Singapore real estate on the long term basis. However, it is still a question mark whether the recovery can be sustained till the end of the year.
Some experts reckon that it may signal the start of a market recovery. The rise or fall in prices in CCR is used as an indicative of the prices in Singapore’s outer regions. Some experts reckon that it is too early to be looking forward to a full recovery.
Developers have been keeping prices relatively low to attract buyers. Take the example of Cairnhill Nine which is located at the heart of Orchard Road. The starting price was an attractive $1.35m for a one-bedroom apartment and the average indicative prices is about $2,500 per square foot.
In a recent NUS-Redas Real Estate Sentiments Index, the current sentiment index rose to 3.9 in Q1 2016 as compared to 3.6 in Q4 2015. The future sentiment also rose to 3.6 from 3.4. Overall, the index edged to 3.8 from 3.5 previously.
The rate of increase is encouraging but the majority of the developers are not happy and are concerned about the continual impact of ABSD and Total Debt Servicing Ratio (TDSR). As such, developers are very likely to maintain or lower prices moderately to sell their units.