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21-02-22, 11:04
OPINION: Purchasing almost completed condominiums may be a wise choice
By Elizabeth Choong
EdgeProp Singapore
February 21, 2022
https://i.imgur.com/spSQNv8.jpg
Tight supply lends support to buoyant rental market
Construction delays due to manpower shortages and disrupted global supply chains are just some of the woes faced by the construction sector due to the recent pandemic. This has led to a tight supply situation with many turning to the rental market for interim housing. Working-from-home arrangements have also pushed many singles out of their family home and into the rental market in search of more space and privacy.
While current average rental prices for condominiums are still below the peak of $3.94 psf per month in 2013, it is definitely on an upward trend. Rental transaction volume has also grown from 80,666 in pre-pandemic 2018 to 90,204 in 2021.
https://i.imgur.com/6fz64LK.jpg
What can buyers do?
Owner-occupiers can consider purchasing a property that will be completed soon or TOP (Temporary Occupation Permit), thus removing the need to rent and the inconvenience of moving multiple times. Investors would be able to capitalise on the current red-hot rental market and secure a tenant fairly quickly.
In addition, potential buyers can visit the actual site and check out the quality of some fixtures and fittings that are already installed. Buyers can also visualise the orientation of each unit and the layout of the entire site based on the constructed buildings.
Popular developments that are almost fully sold
A few projects that are nearing their expected TOP date are almost sold out. The majority of these projects are in Rest of Central Region (RCR) or Outside Central Region (OCR) which is not surprising as these regions tend to attract more local buyers and owner-occupiers.
Potential buyers should take a closer look at the projects in Table 1 below. They may be able to secure a deal as some developers may be more willing to negotiate and sell off the remaining few units to close their books for the project. However, the remaining units are unlikely to be choice units.
https://i.imgur.com/qN5z6bK.jpg
Daintree Residence is a family-friendly development located near a primary school, two playgrounds and Beauty World Centre. The leasehold project sold for an average of $1,706 psf but interested buyers would have to turn to the resale market as the development is fully sold. Buyers who love the area could look at nearby completed projects such as The Creek @ Bukit; a freehold development with a lower average price of $1,683 psf which could be due to its age. The Creek @ Bukit received TOP in 2017.
Homebuyers could also consider Nyon which is a freehold boutique development with Peranakan influences; making it the perfect home for buyers who appreciate smaller design-centric developments. It is also a short walk to Amber MRT station. As Nyon is not fully sold at the time of writing, interested buyers can still snag a unit for an average price of $2,316 psf; lower than two other uncompleted freehold projects in the neighbourhood. Coastline Residences and Amber Park are fetching an average of $2,501 psf and $2,455 psf respectively.
Projects worth a second look
If buyers prefer to have more units to choose from, they can look at the projects in Table 2 below. There are also more projects in the Core Central Region (CCR) that would be more attractive to buyers looking for properties in a prime district.
https://i.imgur.com/CqROfne.jpg
Investors can consider Sloane Residences because it has a lower average price of $2,956 psf compared to nearby The Hyde ($2,993 psf). Both projects are expected to receive TOP this year. The lower price level of Sloane Residences offers investors an affordable opportunity to purchase an asset in the exclusive Balmoral enclave.
Read more at: https://www.edgeprop.sg/property-news/opinion-purchasing-almost-completed-condominiums-may-be-wise-choice
By Elizabeth Choong
EdgeProp Singapore
February 21, 2022
https://i.imgur.com/spSQNv8.jpg
Tight supply lends support to buoyant rental market
Construction delays due to manpower shortages and disrupted global supply chains are just some of the woes faced by the construction sector due to the recent pandemic. This has led to a tight supply situation with many turning to the rental market for interim housing. Working-from-home arrangements have also pushed many singles out of their family home and into the rental market in search of more space and privacy.
While current average rental prices for condominiums are still below the peak of $3.94 psf per month in 2013, it is definitely on an upward trend. Rental transaction volume has also grown from 80,666 in pre-pandemic 2018 to 90,204 in 2021.
https://i.imgur.com/6fz64LK.jpg
What can buyers do?
Owner-occupiers can consider purchasing a property that will be completed soon or TOP (Temporary Occupation Permit), thus removing the need to rent and the inconvenience of moving multiple times. Investors would be able to capitalise on the current red-hot rental market and secure a tenant fairly quickly.
In addition, potential buyers can visit the actual site and check out the quality of some fixtures and fittings that are already installed. Buyers can also visualise the orientation of each unit and the layout of the entire site based on the constructed buildings.
Popular developments that are almost fully sold
A few projects that are nearing their expected TOP date are almost sold out. The majority of these projects are in Rest of Central Region (RCR) or Outside Central Region (OCR) which is not surprising as these regions tend to attract more local buyers and owner-occupiers.
Potential buyers should take a closer look at the projects in Table 1 below. They may be able to secure a deal as some developers may be more willing to negotiate and sell off the remaining few units to close their books for the project. However, the remaining units are unlikely to be choice units.
https://i.imgur.com/qN5z6bK.jpg
Daintree Residence is a family-friendly development located near a primary school, two playgrounds and Beauty World Centre. The leasehold project sold for an average of $1,706 psf but interested buyers would have to turn to the resale market as the development is fully sold. Buyers who love the area could look at nearby completed projects such as The Creek @ Bukit; a freehold development with a lower average price of $1,683 psf which could be due to its age. The Creek @ Bukit received TOP in 2017.
Homebuyers could also consider Nyon which is a freehold boutique development with Peranakan influences; making it the perfect home for buyers who appreciate smaller design-centric developments. It is also a short walk to Amber MRT station. As Nyon is not fully sold at the time of writing, interested buyers can still snag a unit for an average price of $2,316 psf; lower than two other uncompleted freehold projects in the neighbourhood. Coastline Residences and Amber Park are fetching an average of $2,501 psf and $2,455 psf respectively.
Projects worth a second look
If buyers prefer to have more units to choose from, they can look at the projects in Table 2 below. There are also more projects in the Core Central Region (CCR) that would be more attractive to buyers looking for properties in a prime district.
https://i.imgur.com/CqROfne.jpg
Investors can consider Sloane Residences because it has a lower average price of $2,956 psf compared to nearby The Hyde ($2,993 psf). Both projects are expected to receive TOP this year. The lower price level of Sloane Residences offers investors an affordable opportunity to purchase an asset in the exclusive Balmoral enclave.
Read more at: https://www.edgeprop.sg/property-news/opinion-purchasing-almost-completed-condominiums-may-be-wise-choice