New Reporter
15-08-23, 14:42
Weekend launches yield sales of 53 units across three projects
August 13, 2023
https://i.imgur.com/PN6tvLN.jpg
Weekend sales on August 12-13 slipped to a new low, with just 53 units sold across three projects.
All three projects are redevelopments of en bloc sites located in different submarkets: the 78-unit Orchard Sophia in the Core Central Region (CCR); the 324-unit TMW Maxwell in the Rest of Central Region (RCR); and the 105-unit The Arden in the Outside Central Region (OCR).
"Sales have been muted compared to recent launches in terms of the number of units sold," says Ismail Gafoor, CEO of PropNex. "This is likely due to the fact that we have had nine new launches since July to date, and buyers have more options today."
Before the debut of five new projects this past fortnight in August, "July was already a hectic month" with four major projects launched, totalling more than 2,500 units, says Marcus Chu, CEO of ERA Singapore. "The July supply spilled over into August, affecting the new launches this month," he adds. "With a wide selection of projects on the market, homebuyers and investors are spoilt for choice."
'Choice paralysis'
The last time there was a deluge of new project launches was in November 2018, when eight projects with an aggregate of 1,265 units were offered for sale, says Mark Yip, CEO of Huttons Asia. "In terms of number of units launched, the highest was in 1Q2021, when 2,629 units across four projects were rolled out for sale." The bulk of the supply in 1Q2021 came from the 1,862-unit Normanton Park launched in January 2021.
The April hike in additional buyer's stamp duty (ABSD) for all except Singaporean and Permanent Residents (PRs) first-time homebuyers, combined with elevated interest rates, has made buyers more cautious, notes ERA's Chu. "For first-time buyers who do not need to pay ABSD, it's like having just one bullet left, so they want to make the best use of it."
PropNex's Gafoor reckons that beyond buyer fatigue due to the number of new projects launched in the past two months, "a bit of choice paralysis" has also set in, especially for RCR and OCR projects. Since April, six RCR or city fringe projects have been launched, with another three in the OCR or suburbs (excluding Altura, an executive condo).
"Buyers need time to analyse their options, and pricing is a major consideration," says Gafoor. "Developers are mindful that buyers are price conscious."
The Arden – 'most affordable new launch in OCR'
Qingjian Realty priced The Arden from $1,688 psf, which is "compelling", notes PropNex's Gafoor, compared to other OCR new launches, which fetched average prices ranging from $2,057 to $2,121 psf this year.
"With its attractive pricing and well-thought-out features, The Arden stands out as one of the OCR's most affordable new launch options," says ERA's Chu.
More at: https://www.edgeprop.sg/property-news/weekend-launches-yield-sales-52-units-across-three-projects
August 13, 2023
https://i.imgur.com/PN6tvLN.jpg
Weekend sales on August 12-13 slipped to a new low, with just 53 units sold across three projects.
All three projects are redevelopments of en bloc sites located in different submarkets: the 78-unit Orchard Sophia in the Core Central Region (CCR); the 324-unit TMW Maxwell in the Rest of Central Region (RCR); and the 105-unit The Arden in the Outside Central Region (OCR).
"Sales have been muted compared to recent launches in terms of the number of units sold," says Ismail Gafoor, CEO of PropNex. "This is likely due to the fact that we have had nine new launches since July to date, and buyers have more options today."
Before the debut of five new projects this past fortnight in August, "July was already a hectic month" with four major projects launched, totalling more than 2,500 units, says Marcus Chu, CEO of ERA Singapore. "The July supply spilled over into August, affecting the new launches this month," he adds. "With a wide selection of projects on the market, homebuyers and investors are spoilt for choice."
'Choice paralysis'
The last time there was a deluge of new project launches was in November 2018, when eight projects with an aggregate of 1,265 units were offered for sale, says Mark Yip, CEO of Huttons Asia. "In terms of number of units launched, the highest was in 1Q2021, when 2,629 units across four projects were rolled out for sale." The bulk of the supply in 1Q2021 came from the 1,862-unit Normanton Park launched in January 2021.
The April hike in additional buyer's stamp duty (ABSD) for all except Singaporean and Permanent Residents (PRs) first-time homebuyers, combined with elevated interest rates, has made buyers more cautious, notes ERA's Chu. "For first-time buyers who do not need to pay ABSD, it's like having just one bullet left, so they want to make the best use of it."
PropNex's Gafoor reckons that beyond buyer fatigue due to the number of new projects launched in the past two months, "a bit of choice paralysis" has also set in, especially for RCR and OCR projects. Since April, six RCR or city fringe projects have been launched, with another three in the OCR or suburbs (excluding Altura, an executive condo).
"Buyers need time to analyse their options, and pricing is a major consideration," says Gafoor. "Developers are mindful that buyers are price conscious."
The Arden – 'most affordable new launch in OCR'
Qingjian Realty priced The Arden from $1,688 psf, which is "compelling", notes PropNex's Gafoor, compared to other OCR new launches, which fetched average prices ranging from $2,057 to $2,121 psf this year.
"With its attractive pricing and well-thought-out features, The Arden stands out as one of the OCR's most affordable new launch options," says ERA's Chu.
More at: https://www.edgeprop.sg/property-news/weekend-launches-yield-sales-52-units-across-three-projects