At least 2,000 new private homes to come on stream from projects set for Q3 launch

Keen interest is expected in upcoming launches after dry spell, but take-up will hinge on pricing

Jul 4, 2024

Some 2,300 new private homes are expected to be marketed in the third quarter of 2024, with up to nine project launches said to be lined up between now and end-September.

Coming up this weekend is the preview of Kassia, a freehold 276-unit condominium project at Flora Drive in the Upper Changi region, with prices starting from S$883,000.

The launch of Kassia comes two weeks after SingHaiyi, CEL Development and KSH Holdings started marketing a 440-unit Jurong East project, Sora. Several other major projects – including the 366-unit Union Square Residences and a 552-unit condo at Pine Grove – have also been slated for a Q3 launch.

Prices for the Loyang area Kassia project start from S$883,000 or S$1,867 per square foot (psf) for a 473 square feet (sq ft) one-bedroom unit. For the 656 sq ft two-bedroom units, prices start from about S$1.2 million or S$1,823 psf; three-bedroom units (904 to 925 sq ft) will start from about S$1.66 million or S$1,835 psf; and four-bedders, at 1,345 sq ft, will see prices starting from about S$2.46 million or S$1,830 psf.

The project occupies a site area of 150,839 sq ft located in District 17, within the Outside Central Region (OCR). It will have 276 residential units in four eight-storey blocks with a basement car park, and is expected to receive its Temporary Occupation Permit in November 2027. Sales bookings for Kassia will start on Jul 20.

Kassia is the final development in a cluster of condos built by Hong Leong Holdings, City Developments and TID Development within the Flora Drive-Flora Road enclave. Completed projects in the vicinity include Azalea Park, Ballota Park, Carissa Park, Dahlia Park, Edelweiss Park, Ferraria Park, The Gale, Hedges Park, The Inflora and The Jovell.

Betsy Chng, Hong Leong’s head of sales and marketing, said: “Given the success of our earlier developments and familiarity with the area, Kassia comes at an opportune time to conclude our aspiration for Flora Drive to become a residential haven. The success of our developments in the enclave reflects the keen interest among first-time buyers and upgraders for a quiet locale and thoughtfully designed properties...

“We believe the new transportation infrastructure and our competitive pricing will attract buyers who value the project’s attributes,” she said.

Mark Yip, Huttons Asia’s chief executive officer, noted that new 99-year launches in the OCR in recent years have been pitched at an average selling price of S$2,100 to S$2,200 psf.

Prices for the 99-year leasehold Sora launched last month start from S$1,850 psf, and average S$2,180 psf.

“Kassia is pricing its freehold units from S$1,867 psf, a price level seen in pre-Covid times,” he said.

Recent resale transactions in the area include The Jovell, which moved three units at an average price of more than S$1,560 psf this year, while 13 units have been resold at The Inflora at an average price of around S$1,280 psf, said PropNex head of research and content Wong Siew Ying.

Caveats data showed the median price for freehold condominiums along Flora Drive over the last one year was S$1,174 psf, while those at Upper Changi reached S$1,371 psf. In the year to date, prices at freehold Flora Drive condos have ranged from S$1,081 psf to S$1,246 psf.

Huttons Asia’s Yip added that District 17 has one of the lowest supply of private residential non-landed homes in Singapore, at 7,161 units as at Q1. “Since 2021, there has been no launch of 999-year/freehold major non-landed residential projects in the OCR.”

The projects expected to be launched before the year’s end will be coming onto the market after several months of slow new sales. Supply has been limited as developers held back on launches, while buyers appeared to be resisting higher price points, market watchers have said.

Singapore’s private home prices continue to rise, but the pace of growth has slowed. In Q2, prices saw a smaller increase of 1.1 per cent, after rising 1.4 per cent in Q1 and 2.8 per cent in the last quarter of 2023.



Besides Sora and Kassia, projects that could be put on the market in coming months include Emerald of Katong, The Chuan Park, Arina East Residences, Bukit Timah Link and Meyer Blue.

“A couple of these upcoming projects could be among the largest to be launched this year – The Chuan Park in the Outside Central Region with 916 units, and Emerald of Katong in the Rest of Central Region which offers 847 units. So far, the new launch project with the largest number of units in the development this year has been Lentor Mansion with 533 units,” said PropNex’s Wong.

A total of about 7,500 units could come on stream by the end of the year, from 17 projects that may roll out in the second half of 2024, said Lee Sze Teck, Huttons Asia’s senior director of data analytics. Some could be pushed to next year if sentiment is poor.

Wong Xian Yang, Cushman & Wakefield’s head of research for Singapore and South-east Asia, pointed out that the performance of major launches – that is, projects of at least 100 units – has slowed.

“One out of six major projects (17 per cent) that was launched in the January-to-May period managed to sell more than half of its stock within the month of its launch. This compares to the same time period last year, where four out of seven major new launches (57 per cent) sold more than half of their stock within their month of launch,” Wong said.

Urban Redevelopment Authority data also showed that unsold new stock – uncompleted private homes in the supply pipeline – totalled 19,936 units (excluding executive condominiums) at the end of Q1, some 15 per cent higher than the 16,929 units at the end of Q4 2023.

While demand is expected to be “selective and measured” with the fresh supply of homes emerging, Knight Frank’s head of research Leonard Tay believes that new launch prices “will remain elevated due to land costs that were committed some 12 to 18 months ago, as well as prevailing high construction costs”.

PropNex expects keen interest in the upcoming launches after months of limited new supply, but actual take-up will hinge on pricing.

“Broadly speaking, we estimate that the launch take-up rates (for new projects) could potentially be anything from 30 to 40 per cent on average, which would be relatively positive in today’s market,” said PropNex’s Wong.

https://www.businesstimes.com.sg/pro...-set-q3-launch