New suburban homes continue to lead sector sales

New non-landed homes are still hot on the list of home seekers and property investors, local and international, as April’s figures have shown. Sales have remained above the 1,000-unit mark for the second consecutive month and the 1,500 units sold in April alone was double that of the same period last year.

ArtraRedhillOne of the factors contributing to the continuing demand could be the changes in property cooling measures which took place in March this year. Consumer’s confidence have risen considerably thus leading to higher home sales including a larger appetite for units even in older launches. The number of units sold in previously-launched developments remained fairly steady across March and April, with 1,079 and 1,001 sold in the 2 months respectively. Some of the more popular projects included Parc Riviera and Commonwealth Towers.

Suburban properties fared particularly well, with 966 transactions closed in April. 558 units were sold in the city fringes and 30 in the core central region. New launches which were well-received included Seaside Residences in Siglap and Artra in Redhill. The former sold 419 units at an average price of $1,736 psf and the latter, 126 units at a median of $1,646 psf.

SeasideResidencesThere had been previous concerns about the large volume of unsold inventory  and with more new units entering, a supply glut might disturb the market slightly. As the supply and rate of new homes diminishes however, there might be a possibility for new homes to be priced higher in the near future. How will this market sector fare as we move on into the mid-year? Will the positive sentiments continue well into the second half of the year?

Outlook hopeful despite fall in private home prices

After 14 consecutive quarters of declining private home prices, slivers of light are shining through – the suburban condominium market has seen a tad more activity with prices rising slightly; and for most part, the rate of decline has slowed.

SantoriniThe fall in prices of private homes stood at 0.5 per cent last quarter, similar to that in the last quarter of 2016. Suburban non-landed property prices have in fact posted a growth of 0.1 per cent after 13 straight quarters of decline. The positive figures in the suburbs could be due to the many new projects in areas outside of the central region which launched to much success in the earlier part of the year. These included developments such as The Clement Canopy in Clementi and Grandeur Park Residences in Tanah Merah. Previously-launched projects such as Parc Riviera and The Santorini also re-marketed their units resulting in favourable response from buyers.

Property analysts also contributed some of the uptick in buying sentiment to recent changes in the property cooling measures. Though the impact may not be obvious and immediate, it has nevertheless helped to inject some optimism in the market. Though the expectation is for property prices to fall 1 to 3 per cent in H1, the second half of the year should see prices stabilising and 2017 may just end on a happier note.

New private home sales rise 17.6%

In a year-on-year comparison, new private home sales has risen a promising 17.6% since last January. With 381 units sold last month, an increase from the 324 from the same month last year and up 3.8 per cent from December’s 367 units, it’s safe to say the year for the new non-landed residential homes market segment has gotten off to a rather good start.

Suburban condominims made the biggest showing with 238 units sold last month. 110 units were sold in the city fringes followed by 33 in the core central region. Parc Riviera came out tops with 38 units sold at $1,270 psf, followed by 25 units at The Trilinq at $1,399 psf. Developers have been aggressive in their marketing and pricing strategies, offering discounts and lowering prices to make it palatable overall to increasingly savvy buyers.

parcriviera2The new property launch earlier this month, Clement Canopy, together with last weekend’s launch at Grandeur Park Residences, and upcoming launches at Park Place Residences and Seaside Residences, will be a boost to the quarter’s sales volume.

While no quick nor drastic rebound is expected for the year ahead, industry experts are nevertheless hopeful about the performance of this market sector. They expect demand to hold steady and a sales figure of about 7,000 units. Essentially, the pins holding down the pricing structure are the cooling measures though there might be a bit of give should the interest rates change.

Winning $292 million West Coast Vale land sales bid

Properties in West Coast have been garnering tons of interest lately. One of the latest offerings in the area is the Parc Riviera condominium, and nearby the Clement Canopy also recently launched last weekend.

parcriviera3Thus a winning bid of $292 million for a 99-year leasehold site in West Coast Vale probably did not come as a surprise. The bid was won by China Construction Development, with 8 other bidders vying for the same site. Second in line was MCC Land (Singapore) with a bid of $289.9 million. The affordable quantum was likely what drew the bidders as the plot was one of the last to be offered up for tender last year under the Government Land Sales Programme. The site was launched on December 7.

Considering the final bidding price of $592 psf is 7.4 per cent higher than the $551 psf paid for the neighbouring Parc Riviera project, the developers must be optimistic about the prospects of the property market. Parc Riviera is closer to the Ayer Rajah Expressway though the proximity of the Jurong Lake District and malls such as Jem will help in marketing the property to potential buyers.

parcriviera2Developers have been seen to be more aggressively bidding for land plots in recent tenders as most are hoping to replenish their land banks and preparing for better times ahead as the property market is seen to be bottoming out.

First private condominium launch in 2017 – Clement Canopy

Open for preview today is a new condominium in the west – on Clementi Avenue 1 to be exact. The 505-unit Clement Canopy is a joint venture between UOL Group and Singapore Land and the developers are hopeful about an uptick in demand, as shown by a pickup in new home sales last year.

The-Clement-Canopy-1Photo credit: http://clementcanopy.info

Situated in the Jurong Lake District – which is earmarked to be developed into the second Central Business District (CBD)– and with a number of schools such as the NUS High School of Mathematics and Science and the Yale-NUS College, this new condominium project will benefit from high rental demand. The 99-year leasehold development will consist of two 40-storey blocks holding a range of 2- to 4-room units. 194 out of the 505 units are 2-bedders sized between 635 to 732 sq ft and priced between $85,000 to $1 million. These smaller units are more palatable in terms of the total quantum price and also more in demand in the rental market.

The TrilinqOther bigger units include 3-bedders starting at $1.28 million and 4-bedders priced from $1.62 million. Selling prices are pegged between $1,340 to $1,360 psf. As a comparison, the neighbouring private residential condominiums, The Trilinq, is going for $1,400 psf but it is a tad nearer the Clementi MRT station; and Parc Riviera on West Coast Vale is selling at around $1,200 psf . There are no one-bedroom apartments at Clement Canopy and developers are hoping this will help differentiate their product from the rest of the market. Swimming pools and smart home features will be included in the project.

This year, the  would probably be all about timing. Launched at the right time, when demand is high and supply slow in stirring consumer interest, a new development could do very well indeed.

New private home sales figures on track for H4

Though there was a 31.4% fall from October’s record sales of 1,253 units, the year is nevertheless set to end on a cheerful note, as spirits in the new private home market are buoyed by a 13.3% year-on-year spike last month with developers selling 860 units in November alone (excluding the 250 new executive condominium units sold). The fourth quarter has clocked a 2,500-unit sales figure thus far and property analysts say the projected market figures are are on track as the year-end is usually a quieter time for the property sector.

parcriviera2Even before numbers for December are consolidated, the number of new homes sold this year have already crossed 7,769, which is already more than the total of 7,440 homes sold last year. The lowered private property prices have attracted a considerable market audience, with most going for units with lower quantum prices. Most buyers are hoping to score a good deal before prices bounce back up, and have shown interest in smaller one- and two-bedders. The demand for larger units are slightly lacking in comparison.

queenspeak2Units at the newly launched Queens Peak condominium development in Queenstown and Parc Riviera in West Coast Vale were the month’s best sellers. Most of the units sold were priced under $1 million with 185 such units sold at Queens Peak and 110 of the sme at Parc Riviera. A positive outlook on the private home market next year seems likely with a projected 8,000 number of new homes sold by end of 2016.

Parc Riviera – One price fits all

Developers have been dishing out various incentive schemes to draw buyers into the new private home fold, and now an upcoming property launch will do the same. EL Development will be offering a flat-price within the same type of units between the second and fifteenth floor of their Parc Riveria condominium. And the offer only stands when the deal is sealed at their launch this Saturday.

parcriviera2Photo Credit: www.parcrivieracondo.sg

With this new incentive scheme, units on the more popular higher floors will likely be the first to fly off the shelves as they traditionally command higher prices for the view they promise. As a price guide, the 2-bedroom units are going for $725,000. Other units available in the project’s two 36-storey blocks include 463 sq ft one- and 1,711 sq ft four-bedders though more than half are made up of one- to two-bedroom apartment units.

parcriviera1Units in the floors above the 15th-storey will also be available for purchase, though prices will be higher. Traditionally, units in the higher floors are about 15% more expensive than those in the lower floors. EL Development came up with the first-in-market scheme as a way to provide buyers with a transparent pricing system and a way to draw attention to specific units. Some of their other properties currently in the market include Skysuites 17, Stevens Suites, La Fiesta and Trivelis. Parc Riviera has already received positive interest and with this creative new strategy in place, it looks like the Parc Riviera sales office might see a flurry of activity this weekend.

 

 

New private homes with strong attributes still a draw

Amidst speculations of a bottoming-out real estate market, the 3 major project previews over the weekend might be good indicators of market fluctuations in the months ahead.

38-jervoisPhoto credit: Prominent Land

Judging from the strength of public response from recent launches, new private non-landed developments with strong attributes such as good locations, usually those near MRT stations and shopping malls, and affordable quantum prices will take market headlines for now. Buyers are not entirely shrinking away from making purchases, but they may be pickier as the choices available outweigh the current demand.

City Development’s (CDL) latest private residential offering of the Forest Woods condominium clocked an encouragingly positive level of sales in its recent launch, perhaps leading the way for the next few launches coming up – Queens Peak on Dundee Road in Queenstown, Parc Riviera in West Coast Vale and 38 Jervois in Jervois Road.

forestwoodsThe last of these projects is a rather exclusive boutique offering of 27 units developed by Prominent Land. At 38 Jervios, units range from 474 sq ft one-bedders to 1,098 sq ft two-bedders plus penthouse study with prices averaging $2,100 psf and up. Buyers can expect to fork out $1.08 million for a one-bedroom unit to $1,81 million for a 3-bedroom unit. 6 of the 27 units will be penthouses.

Although these new private homes may push sales figures past the 1,000 a month mark, property analysts do not yet expect a sudden market uptick as prospects of the economy remain lacklustre.