New Reporter
12-01-24, 14:26
Popular Condos: A 5-year post-launch analysis
By Elizabeth Choong
January 9, 2024
Some condos were the talk of the town during their launch for various reasons, leading to outstanding new sales performance. This article examines the sale transactions in the secondary market of these developments to determine if their popularity during the launch translated to price growth and profitability thereafter.
The selected condos have many similarities
For the purpose of our analysis, we selected five condos: Avenue South Residence, The M, Normanton Park, Treasure At Tampines, and Riverfront Residences. These developments were chosen due to their stellar performance during their launch, with each selling at least 200 units over the launch weekend. All five condos also obtained their temporary occupation permit (TOP) last year.
In addition to their outstanding take-up rate during launch and TOP date, it is noteworthy that all five condos have a 99-year leasehold tenure. With the exception of The M, all developments are massive projects with over 1,000 units. Moreover, only Treasure at Tampines and Riverfront Residences are not situated in a central location.
https://i.imgur.com/H9HVerX.jpg
Most of the units sold in the secondary market for the five condos are considered sub-sales. According to URA, sales for units in projects that have obtained their TOP but not their Certificate of Statutory Completion (CSC) are considered sub-sales. Transactions will be classified as resales by URA once the project has received both TOP and CSC.
Riverfront Residences: Benefited from launching before cooling measures
Riverfront Residences benefited from being launched just before the increase in Additional Buyer’s Stamp Duty (ABSD) rates and the tightening of the Loan-to-Value (LTV) ratio in July 2018. The developer moved the launch date forward by two days to July 5, 2018, so that buyers could benefit from the transitional provision. If an Option to Purchase (OTP) was granted by sellers to potential buyers on or before July 5, 2018, and there has been no variation to the OTP on or after July 6, 2018, the buyer could enjoy the lower ABSD rates before the upward adjustment. This benefit is applicable if the OTP is exercised on or before July 26, 2018, or the OTP validity period, whichever is earlier.
The earlier launch date likely motivated many buyers to sign on the dotted line to avoid the higher ABSD rates, resulting in more than 500 sales for Riverfront Residences during its launch. Riverfront Residences is the only development among the five condos cited in this article to have been launched before the cooling measures were implemented in July 2018.
The proximity of the development to several primary schools, including the reputable CHIJ Our Lady of Nativity and Holy Innocents’ Primary School, also gave a boost to sales. Other nearby amenities include Hougang MRT Station, Hougang Central Bus Interchange, Kang Kar Mall, The Midtown, and Cheng San Public Library. Furthermore, the development overlooks Sungei Serangoon, allowing residents to enjoy excellent water views.
The average price for Riverfront Residences has increased by 28%, rising from $1,311 psf (based on 660 new sales) during its launch in 3Q2018 to $1,681 psf (based on 38 sub-sales) in 4Q2023.
There are three other condos located within a 500m radius of Riverfront Residences. Among them, Rio Vista, located along Upper Serangoon View, is the newest (TOP in 2004) and largest (716 units).
From 3Q2018 to 4Q2023, Rio Vista displayed a stronger price growth of 32% compared to Riverfront Residences (28%). The average price for Rio Vista has consistently trended below Riverfront Residences. As of 4Q2023, Rio Vista commanded an average price of $1,106 psf, which is $575 psf below Riverfront Residences ($1,681 psf). The stronger price growth and significantly lower average price for Rio Vista make it a worthwhile consideration for buyers with a modest budget who are willing to overlook its age.
As of the current writing, Riverfront Residences had 299 profitable transactions and no unprofitable ones, with profits ranging from $22,000 to $810,000. Notably, the top three profitable transactions for Riverfront Residences have significantly higher profits than those for the other four condos. This could be attributed to Riverfront Residences having the strongest price growth among the five condos.
Massive Treasure At Tampines
Treasure At Tampines made a splash when it was launched in March 2019, due to its massive size with 2,203 units. During its launch, 272 units were sold, translating to a take-up rate of 56% based on the 490 units released for sale and a take-up rate of 12% based on the total number of units in the development.
The outstanding sales performance could be attributed to the numerous facilities in the development and its proximity to various amenities in the well-established Tampines town centre. Additionally, Treasure At Tampines is within walking distance of Tampines Round Market and Food Centre, and is located within a 1km radius of five primary schools and two secondary schools. The condo is also conveniently located near the Pan Island Expressway.
As of the current writing, there have been 205 sales in the secondary market for Treasure At Tampines, comprising three sub-sales in 2021 and 22 sub-sales in 2022. Last year, Treasure At Tampines had 167 sub-sale and 13 resale transactions.
The average price for Treasure At Tampines has increased by 26%, rising from $1,336 psf in 1Q2019 (based on 270 new sales) to $1,676 psf in 4Q2023 (based on 54 transactions in the secondary market).
There are no other condos within a 500m radius of Treasure At Tampines, but there are four condos within a 1km radius. Among these, the 99-year leasehold My Manhattan is the newest development, having obtained TOP in 2014. My Manhattan features 301 units and is located along Simei Street 13.
From 1Q2019 to 4Q2023, the average price for Treasure At Tampines grew by 26% to $1,679 psf, showing significantly stronger growth than My Manhattan, whose average price grew by 15% to $1,495 psf. Furthermore, the average price of Treasure At Tampines has consistently trended above My Manhattan, which could be attributed to its age.
More at: https://www.edgeprop.sg/property-news/popular-condos-5-year-post-launch-analysis
By Elizabeth Choong
January 9, 2024
Some condos were the talk of the town during their launch for various reasons, leading to outstanding new sales performance. This article examines the sale transactions in the secondary market of these developments to determine if their popularity during the launch translated to price growth and profitability thereafter.
The selected condos have many similarities
For the purpose of our analysis, we selected five condos: Avenue South Residence, The M, Normanton Park, Treasure At Tampines, and Riverfront Residences. These developments were chosen due to their stellar performance during their launch, with each selling at least 200 units over the launch weekend. All five condos also obtained their temporary occupation permit (TOP) last year.
In addition to their outstanding take-up rate during launch and TOP date, it is noteworthy that all five condos have a 99-year leasehold tenure. With the exception of The M, all developments are massive projects with over 1,000 units. Moreover, only Treasure at Tampines and Riverfront Residences are not situated in a central location.
https://i.imgur.com/H9HVerX.jpg
Most of the units sold in the secondary market for the five condos are considered sub-sales. According to URA, sales for units in projects that have obtained their TOP but not their Certificate of Statutory Completion (CSC) are considered sub-sales. Transactions will be classified as resales by URA once the project has received both TOP and CSC.
Riverfront Residences: Benefited from launching before cooling measures
Riverfront Residences benefited from being launched just before the increase in Additional Buyer’s Stamp Duty (ABSD) rates and the tightening of the Loan-to-Value (LTV) ratio in July 2018. The developer moved the launch date forward by two days to July 5, 2018, so that buyers could benefit from the transitional provision. If an Option to Purchase (OTP) was granted by sellers to potential buyers on or before July 5, 2018, and there has been no variation to the OTP on or after July 6, 2018, the buyer could enjoy the lower ABSD rates before the upward adjustment. This benefit is applicable if the OTP is exercised on or before July 26, 2018, or the OTP validity period, whichever is earlier.
The earlier launch date likely motivated many buyers to sign on the dotted line to avoid the higher ABSD rates, resulting in more than 500 sales for Riverfront Residences during its launch. Riverfront Residences is the only development among the five condos cited in this article to have been launched before the cooling measures were implemented in July 2018.
The proximity of the development to several primary schools, including the reputable CHIJ Our Lady of Nativity and Holy Innocents’ Primary School, also gave a boost to sales. Other nearby amenities include Hougang MRT Station, Hougang Central Bus Interchange, Kang Kar Mall, The Midtown, and Cheng San Public Library. Furthermore, the development overlooks Sungei Serangoon, allowing residents to enjoy excellent water views.
The average price for Riverfront Residences has increased by 28%, rising from $1,311 psf (based on 660 new sales) during its launch in 3Q2018 to $1,681 psf (based on 38 sub-sales) in 4Q2023.
There are three other condos located within a 500m radius of Riverfront Residences. Among them, Rio Vista, located along Upper Serangoon View, is the newest (TOP in 2004) and largest (716 units).
From 3Q2018 to 4Q2023, Rio Vista displayed a stronger price growth of 32% compared to Riverfront Residences (28%). The average price for Rio Vista has consistently trended below Riverfront Residences. As of 4Q2023, Rio Vista commanded an average price of $1,106 psf, which is $575 psf below Riverfront Residences ($1,681 psf). The stronger price growth and significantly lower average price for Rio Vista make it a worthwhile consideration for buyers with a modest budget who are willing to overlook its age.
As of the current writing, Riverfront Residences had 299 profitable transactions and no unprofitable ones, with profits ranging from $22,000 to $810,000. Notably, the top three profitable transactions for Riverfront Residences have significantly higher profits than those for the other four condos. This could be attributed to Riverfront Residences having the strongest price growth among the five condos.
Massive Treasure At Tampines
Treasure At Tampines made a splash when it was launched in March 2019, due to its massive size with 2,203 units. During its launch, 272 units were sold, translating to a take-up rate of 56% based on the 490 units released for sale and a take-up rate of 12% based on the total number of units in the development.
The outstanding sales performance could be attributed to the numerous facilities in the development and its proximity to various amenities in the well-established Tampines town centre. Additionally, Treasure At Tampines is within walking distance of Tampines Round Market and Food Centre, and is located within a 1km radius of five primary schools and two secondary schools. The condo is also conveniently located near the Pan Island Expressway.
As of the current writing, there have been 205 sales in the secondary market for Treasure At Tampines, comprising three sub-sales in 2021 and 22 sub-sales in 2022. Last year, Treasure At Tampines had 167 sub-sale and 13 resale transactions.
The average price for Treasure At Tampines has increased by 26%, rising from $1,336 psf in 1Q2019 (based on 270 new sales) to $1,676 psf in 4Q2023 (based on 54 transactions in the secondary market).
There are no other condos within a 500m radius of Treasure At Tampines, but there are four condos within a 1km radius. Among these, the 99-year leasehold My Manhattan is the newest development, having obtained TOP in 2014. My Manhattan features 301 units and is located along Simei Street 13.
From 1Q2019 to 4Q2023, the average price for Treasure At Tampines grew by 26% to $1,679 psf, showing significantly stronger growth than My Manhattan, whose average price grew by 15% to $1,495 psf. Furthermore, the average price of Treasure At Tampines has consistently trended above My Manhattan, which could be attributed to its age.
More at: https://www.edgeprop.sg/property-news/popular-condos-5-year-post-launch-analysis