Price discrepancy between old and new apts/condos in D12

Seeking some views here. I have been looking at the D12 area recently. We all know that The Arte and Vista are selling at above 1000 psf, with the new release of Vista units touching 1300 psf already.

However, right beside Vista is Citrine, which according to recent URA transactions, is selling at only 700+ psf. I am aware that Citrine doesn't have all the bells and whistles, and is strictly speaking not a full facilities condo. But that to me doesn't justify a 600 psf markup for Vista. Unless Citrine is undervalued.

If you look around D12, there are still many older developments going for 700-800 psf, including several on the Thomson end (rather than the Serangoon side, which most people will agree is a little more dodgy). On the other hand, the Tier, on the wrong end of Balestier, is launching at above 1000 psf. I find the price discrepancy between old and new apartments/condos in D12 rather inexplicable, and was hoping people can shed some light on the issue.

Unless it boils down purely to the premium buyers tend to place on a completely new unit.

you're stating the obvious as we all know that singaporeans are taken in by hype, pretty showflats and colorful pictures in brochures. this coupled with unscrupulous developers that throw in keywords like 'close to orchard/ir/fireworks view' etc.

but the scary thing is if enough people buy into the con, the con becomes reality. that is why balestier has become novena, and bendemeer has become 'city center'. case in point look at citysq. what was a potential bangla infestation has now become a no-ahneh locality which expats love

you may also want to compare the land and construction costs between the new and old projects. Developers averagely make between $300-400psf per unit after deducting for construction and land cost.

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Originally Posted by propertyguru

Seeking some views here. I have been looking at the D12 area recently. We all know that The Arte and Vista are selling at above 1000 psf, with the new release of Vista units touching 1300 psf already.

However, right beside Vista is Citrine, which according to recent URA transactions, is selling at only 700+ psf. I am aware that Citrine doesn't have all the bells and whistles, and is strictly speaking not a full facilities condo. But that to me doesn't justify a 600 psf markup for Vista. Unless Citrine is undervalued.

If you look around D12, there are still many older developments going for 700-800 psf, including several on the Thomson end (rather than the Serangoon side, which most people will agree is a little more dodgy). On the other hand, the Tier, on the wrong end of Balestier, is launching at above 1000 psf. I find the price discrepancy between old and new apartments/condos in D12 rather inexplicable, and was hoping people can shed some light on the issue.

Unless it boils down purely to the premium buyers tend to place on a completely new unit.

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Originally Posted by Regulators

you may also want to compare the land and construction costs between the new and old projects. Developers averagely make between $300-400psf per unit after deducting for construction and land cost.

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In that case, buyers are merely paying to line the pockets of developers. Far better to give the seller a 100-200 psf profit and save yourself a bundle at the same time.

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Originally Posted by gfoo

you're stating the obvious as we all know that singaporeans are taken in by hype, pretty showflats and colorful pictures in brochures. this coupled with unscrupulous developers that throw in keywords like 'close to orchard/ir/fireworks view' etc.

but the scary thing is if enough people buy into the con, the con becomes reality. that is why balestier has become novena, and bendemeer has become 'city center'. case in point look at citysq. what was a potential bangla infestation has now become a no-ahneh locality which expats love

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Felling in a showroom with others pulling out cheques from their pockets in front of you are different with meeting an agent in starbucks.

agents are trained in showroom tactics getting hordes of buyers to pressure one another. Some buyers get killed by their kiasuism

Also do consider that most new developments in D12 are from en-bloc, so the land cost, tear down and build up costs are much higher than the older apartments. :2cents:

I don't think using Citrine is a fair comparison, it is a 'ultra-slim' apartment block without real facilities, as compared to Vista or the Arte. Of course there is a premium in buying a new condo...

Interestingly enough, we are seeing price increases in some of the older D12 condos like The Bellaforte - which recently transacted at $845psf. If you were an early bird in buying the Arte, you would have bought a similar condo at the same price.

In addition, many of the D11/D12 new launchess are mickey mouse units, or 1-2 bedders. The small units ensure absolute amounts are low even with high PSF=> the high PSF is misleading. The older units are larger in size - therefore lower PSF as most buyers of the area does not have deep pockets.