Market News

16 May 2019

Early sales of private homes for May indicate it could top April's full-month sales

EARLY sales of private homes for May show it is likely to surpass April's, a month where developers sold 735 private homes in the absence of major launches. April's tally was down around 30 per cent from the 1,054 units moved in March, and marginally higher than the 733 units developers sold in the corresponding month a year ago. "Early sales numbers for May indicates that it is likely to break April's level," said Huttons Asia's head of research, Lee Sze Teck. "Based on caveats lodged with the Urban Redevelopment Authority (URA), we see more than 200 new sales in the first week of May alone. If the average monthly sales for the rest of 2019 can be maintained at April's level, 2019's sales will be similar to 2018." Some 8,795 private homes were sold in 2018. Projects which have already started selling in May or are likely to launch this month include Amber Park in East Coast, Olloi Condo at Changi Road, The Woodleigh Residences in Bidadari Estate, The Gazania and The Lilium at How Sun and Parc Komo in Changi. Four hundred and forty-four private homes were launched in April, which is the lowest figure so far this year and roughly just a quarter of the units released in March. Of the 444 units, 30 were in the core central region (CCR), 294 were in the rest of the central region (RCR) and 120 were outside the central region (OCR). In comparison, 1,812 units were launched for sale in March, and 664 units were launched in April a year ago. Including ECs, developers found buyers for 744 units last month, down about 30 per cent from 1,062 units in March and 44 per cent lower from 1,329 units in April last year. After a slew of 10 launches in March - including mega projects Treasure at Tampines and The Florence Residences - there were three in April, analysts highlighted. The three mid to small-sized projects launched last month were the 171-unit Mayfair Modern, 144-unit Coastline Residences and 85-unit Wilshire Residences. However, most of the sales in April came from previously launched projects, such as The Tre Ver and Parc Botannia. Developers turned cautious in April as the mismatch between private homes launched and sold in March clearly signalled that there was insufficient demand to absorb so much supply, pointed out Ong Teck Hui, senior director of research & consultancy at JLL. "Most of the projects launched in March suffered weak take-up rates. Taking the cue from this, developers turned cautious and scaled back their launches in April to avoid poor sales progress in their projects." Still, April's sales performance has been encouraging at many existing launches, given that the cooling measures are still in place and a number of projects have been launched in recent months, said Christine Sun, head of research at OrangeTee & Tie. CBRE's head of research, Desmond Sim, also noted that mass market launches are underpinning sales; with median prices reduced at certain projects, this could have contributed towards a pickup in sales, he added. "Most buyers continued to be price sensitive and value-conscious, with the lowest priced project in OCR - Parc Botannia - and the lowest-priced in RCR - The Tre Ver - topping the charts (in April)," said Tricia Song, head of research for Singapore at Colliers International. "On the other hand, super luxurious Boulevard 88 also continued to do well, selling 20 units at a median price of S$3,655 psf, after selling 26 units in March." Another high-end project that did well was 3 Cuscaden, which sold 18 units at a median price of S$3,468 psf. "This suggests that demand for high-end projects remains healthy but only if the projects have the right location and attributes," highlighted Cushman & Wakefield senior manager (research) Wong Xian Yang. Looking ahead, Colliers estimates that overall private home prices could stabilise in the second half of this year, and edge up by one per cent for 2019 as a whole, underpinned by the halt in interest rate hikes and by en bloc beneficiaries buying replacement homes. "Developers are likely to keep prices reasonable, as they face robust competition from various project launches all across the island," reckons Eugene Lim, ERA Realty's key executive officer. "We are likely to see a few more launches in May before most developers take a break for the June holidays. Launch activity is then expected to intensify again in July." However, PropNex Realty chief Ismail Gafoor believes that developers might dangle incentives and discounts to entice these buyers and investors, given that more new launches are expected in the months ahead. Meanwhile, Dr Lee Nai Jia, head of research for Knight Frank Singapore, expects prices to stay stable and sales to maintain at its current pace going forward. He added: "However, there may be a spike either in early July or after the Hungry Ghost month period, when more units are launched." Source from The Business Times 16 May 2019

14 May 2019

Freehold Parc Komo priced at average S$1,450 psf; public preview opens May 18

CEL Development, the property development division of Chip Eng Seng Corporation, on Monday unveiled Parc Komo, a freehold mixed development in Changi inspired by the Japanese concept komorebi which celebrates the blend between nature and order. This latest development by CEL has an average price of about S$1,450 per square foot (psf) and occupies a land area of about 202,000 square feet (sq ft). The development comprises 10 blocks of five-storey apartments, totalling 276 units with two storeys of commercial space that comprises 28 commercial units. Residential unit sizes range from 452 sq ft for a one-bedroom unit to 1,905 sq ft for the largest five-bedroom luxury penthouse. The indicative pricing starts at S$663,000 for a one-bedroom unit, S$871,000 for a two-bedroom unit and S$1,294,000 for a three-bedroom unit. The public preview of Parc Komo will be held on Saturday, May 18. Raymond Chia, group CEO of Chip Eng Seng Corporation, said: "At its highly affordable pricing, we believe that Parc Komo presents an excellent opportunity for buyers to own a piece of sanctuary and achieve a unique living experience amid metropolitan Singapore." Chip Eng Seng bought the former Changi Garden in a collective sale at S$248.8 million in 2017. This works out to a price of S$888 per sq ft per plot ratio (psf ppr). Based on the land rate, the break-even price for a new development was estimated at about S$1,350 psf to S$1,400 psf after the bid last year. Nicholas Mak, executive director at ZACD Group, said the development is reasonably priced, comparing it to three other developments in the area. Casa Al Marie, a freehold development located at 75 Jalan Loyang Besar, is priced at S$1,600 psf. Coco Palms and The Jovell, both 99-year leasehold developments in the same area, are priced at S$1,238 psf and S$1,293 psf respectively. Located in District 17, Parc Komo is situated in a region earmarked as a focal area for development and rejuvenation in the URA Draft Master Plan 2019. Mr Chia said: "The rustic charm of Changi and the exciting masterplan for the area are major draw cards for Parc Komo. Fans of the East Coast area would appreciate the casual and easy-going vibes of Changi, as well as the long-term potential of the area." As a business gateway, investors can look forward to rental opportunities given its proximity to Changi Business Park, Changi International Logispark, Changi Aviation Park and the upcoming Changi East Industrial Zone. Recreational amenities located nearby also include Changi Point and Jewel Changi Airport. Parc Komo will be accessible via the upcoming Loyang MRT Station on the Cross Island Line, expected to be completed by 2029. Chip Eng Seng is also the developer for Park Colonial at Woodleigh, which launched in July last year. Mr Chia said despite initial slowdown due to cooling measures implemented that same month, more than 30 units have been sold at Park Colonial in the past three weeks. Source from The Business Times 14 May 2019

13 May 2019

70 units at The Woodleigh Residences sold to date

THE Woodleigh Residences has sold a total of 70 units following its launch weekend, said co-developers Japan-based Kajima Development and Singapore Press Holdings (SPH) on Sunday. Many of the condominium units sold were two- and three-bedroom units, with prices starting at S$1,733 per square foot (psf). Three of the units were four-bedroom residences, which achieved a high of S$2,331 psf. "We are very pleased with the enthusiastic response received," said Kazunori Ichihashi, project director of Kajima. "The sales gallery opened to an invite-only event on the evenings of Wednesday and Thursday, an industry first, and saw many guests vying for their preferred units in the ballot held on Saturday morning." The majority of the buyers are Singaporeans, which Kajima and SPH said attested to the draw of the Bidadari Estate Master Plan in attracting astute buyers who recognised the district's potential. Many of the two-bedroom residences were bought by young couples and smaller families, and the larger units were purchased by multi-generational families. The developers did not say how many units were released for sale during the launch. In November last year, 50 units of The Woodleigh Residences were released for sale during a soft launch, of which around 30 were sold, achieving an average price of above S$2,000 psf. Part of an integrated development that leverages on Japanese design, The Woodleigh Residences is being built above a shopping mall. It is linked to Woodleigh MRT Station and an air-conditioned underground bus interchange. The 99-year leasehold, 667-unit property in District 13 comprises two-, three- and four-bedroom units, ranging in size from 570 square feet for a two-bedroom unit to 1,475 sq ft for a four-bedroom unit. The project's sales gallery is adjacent to NEX Shopping Mall (Serangoon Link) and is open from 10am to 7pm. Source from The Business Times 13 May 2019

06 May 2019

Amber Park condo at East Coast sells 115 units in weekend launch

THE latest in a string of East Coast launches, freehold luxury condominium Amber Park sold 115 units at an average S$2,425 per sq ft (psf) during its launch weekend. Some 150 units were launched over the weekend, out of the development's 592 units, said City Developments Limited (CDL) and its sister company Hong Realty on Sunday. The units sold - which included a penthouse - covered all apartment types. CDL said about 85 per cent of the buyers were Singaporeans, while the remaining were foreigners mainly from China, Malaysia, Indonesia, India and others. Early-bird prices start from S$1.088 million for a one-bedroom unit with a study to S$4.98 million for a five-bedroom premium unit. Unit sizes range from 463 sq ft for a one-bedroom plus study apartment to 5,005 sq ft for the largest penthouse, which has six bedrooms plus a study. PropNex's chief executive Ismail Gafoor said that interested buyers included those who had gained from the en bloc sale of the original Amber Park, as well as investors keen on renting out the property. The agency sold 37 units. ERA, Huttons, OrangeTee & Tie and PropNex are the marketing agencies for Amber Park. "Sales for this project are off to a good start, indicating healthy demand for well-located projects that are exceptionally designed," said CDL group general manager Chia Ngiang Hong. "As a freehold project in District 15 located so close to an MRT station, Amber Park draws buyers looking for projects with good investment value." DBS Group Research analyst Rachel Tan noted that Amber Park's prices are comparable to neighbouring projects. Its peers, however, may not have fared as well. When Coastline Residences by Sustained Land launched for sale about two weeks ago, it sold only seven out of a total of 144 units at an average price of S$2,450 psf. Nyon, launched in March, sold four out of 92 units that month, at a median price of S$2,434 psf, going by government statistics. PropNex's Mr Gafoor pinned it to Amber Park's "iconic design" and "unique features", made possible by the development's large plot. He highlighted how its first level is designed as a contemporary luxury resort. Amber Park's total recreational space is the largest among new developments in the East Coast and Katong area, CDL has said. It also has a 600m sky jogging track that has been touted by the developer as the first for a condominium in Singapore. Other upcoming launches nearby include UOL's and Kheng Leong's MeyerHouse (the former Nanak Mansions) on Meyer Road, Bukit Sembawang Estates' former Katong Park Towers site, and GuocoLand's former Casa Meyfort on Meyer Road. Source from The Business Times 6 May 2019

02 May 2019

CDL, Hong Realty to launch freehold Amber Park condo at average S$2,425 psf

CITY Developments Limited (CDL) and its joint venture partner, Hong Realty (Private) Limited, will launch freehold 592-unit condominium Amber Park in the East Coast area on May 4. Early-bird prices start from S$1.088 million for a one-bedroom plus study apartment and S$1.608 million for a two-bedroom plus study, to S$3.438 million for a four-bedroom and S$4.98 million for a five-bedroom premium, CDL said in a media release on Thursday. The early-bird average price is S$2,425 per square foot. Unit sizes range from 463 sq ft for a one-bedroom plus study apartment, to 5,005 sq ft for the largest six-bedroom plus study penthouse. Amber Park has three 21-storey residential towers, which take up 35 per cent of the site. The rest of the area is used for facilities and landscaping. Its distinctive feature is a 32,507 sq ft rooftop recreational deck that is 235 ft above sea level and connects the three towers. The condominium sits on a rare freehold site of more than 213,000 sq ft, and is developed by Aquarius Properties, the joint venture between CDL and Hong Realty. It is located in the Amber Road enclave, near the upcoming Tanjong Katong MRT station which is expected to be completed in 2023. All apartments come with appliances from V-ZUG and Bosch in the kitchens, and sanitary wares and fittings from Villery & Boch, Geberit and GROHE in the bathrooms. They are also fitted with a wireless smart home system. Source from The Business Times 2 May 2019  

22 Apr 2019

Kwek Leng Beng's family buys units at Boulevard 88 condo for S$14.1m

CITY Developments (CDL) tycoon Kwek Leng Beng's family has bought two units at luxury condo Boulevard 88 for about S$14.1 million. Mr Kwek's nephew, Kwek Eik Sheng, who is group chief strategy officer at CDL, bought a ninth-storey unit for S$4.34 million. The CDL boss' spouse and son also purchased a unit on the 18th floor for S$9.8 million, according to SGX filings on Monday night.  The freehold development in prime District 10 sold 20 units at an average selling price of S$3,550 per square foot, out of the 25 units released to date, CDL had said in March.  Directly accessible through Orchard Boulevard and Cuscaden Road, the 154-unit development is within walking distance to the Orchard Road shopping and entertainment belt, Orchard MRT station and the future Orchard Boulevard Station on the Thomson-East Coast Line. Prices start from S$4.4 million for a two-bedroom unit plus study, S$6 million for a three-bedroom unit, and S$9.6 million for a four-bedroom unit. The development offers four penthouses priced at S$30 million to S$32 million. Unit sizes range from 1,313 sq ft for a two-bedroom plus study to 6,049 sq ft for the largest penthouse. Source from The Business Times 22 Apr 2019

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