Despite the large number of unsold private residential units in Singapore, property developers will continue to roll out new condominium launches in 2015, revealed a Savills report.
Around 32,970 units out of the total pipeline supply of 75,188 units have not found buyers as of end-2014, stated the report.
But some recently launched projects still achieved relatively good sales such as Marine Blue, which sold 31 units over a single preview weekend in January, at an average price of between $1,800 and $2,000 psf.
Located in Marine Parade, the freehold condo by CapitaLand comprises 124 units.
According to Savills, most of the units launched this year will be in the OCR, with the biggest project being the 1,165-unit Kingsford Waterbay at Upper Serangoon View.
Meanwhile, given the current weak market conditions, developers are expected to adjust prices of new launches, noted a report from PropertyGuru.
Instead of pricing units based on profitability, home builders will need to focus on affordability to drive sales.
Speaking to PropertyGuru, Alice Tan, Research Head at Knight Frank Singapore said: “For mid-sized mass market private homes of 800 to 1,100 sq ft in size, the sweet spot price range will typically be between $900,000 and $1.1 million. Projects beyond $1.2 million might be a stretch for most middle and upper middle income buyers.”
She added: “City fringe homes should ideally be priced between $1.2 million to $1.5 million for a two- or three-bedroom unit. Any project which surpasses the $2 million mark will be less attractive to prospective buyers because they would be unable to fulfil their TDSR (Total Debt Servicing Ratio) limitations.”
At the same time, buyers are more likely to gravitate to smaller units as it would cater to their immediate housing needs and financial situation.
“In the Outside Central Region (OCR) and Core Central Region (CCR), there has been a marked increase from 14 to 17 percent and from 53 to 57 percent for condos 800 square feet and less,” said the PropertyGuru report.
Bearing in mind these factors, here’s a list of the major launches in 2015, courtesy of Savills Research.
1. Botanique at Bartley (OCR)
Developer: UOL Development
Tenure: 99-year leasehold
Location: Upper Paya Lebar Road (D19)
Nearest MRT station: Marymount
Estimated no. of units: 797
2. Kingsford Waterbay (OCR)
Developer: Kingsford Property Development
Tenure: 99-year leasehold
Location: Upper Serangoon View (D19)
Nearest MRT station: Hougang
Estimated no. of units: 1,165
3. Marine Blue (RCR)
Developer: CapitaLand
Tenure: Freehold
Location: Marine Parade Road (D15)
Nearest MRT station: Marine Parade (future)
Estimated no. of units: 124
4. North Park Residences (OCR)
Developer: Frasers Centrepoint
Tenure: 99-year leasehold
Location: Yishun Central 1 (D27)
Nearest MRT station: Yishun
Estimated no. of units: 920
5. Parksuites (CCR)
Developer: Far East Organization
Tenure: 999-year leasehold
Location: Holland Grove Road (D10)
Nearest MRT station: Holland Village
Estimated no. of units: 119
6. Pollen & Bleu (CCR)
Developer: Singland Development
Tenure: 99-year leasehold
Location: Farrer Drive (D10)
Nearest MRT station: Farrer Road
Estimated no. of units: 106
7. Sims Urban Oasis (RCR)
Developer: GuocoLand
Tenure: 99-year leasehold
Location: Sims Drive (D14)
Nearest MRT station: Aljunied
Estimated no. of units: 1,024
8. South Beach Residences (CCR)
Developer: CDL and IOI Group
Tenure: 99-year leasehold
Location: Beach Road (D7)
Nearest MRT station: Esplanade
Estimated no. of units: 190
9. Symphony Suites (OCR)
Developer: EL Development
Tenure: 99-year leasehold
Location: Yishun Avenue 9 (D27)
Nearest MRT station: Yishun
Estimated no. of units: 660
10. Victoria Park Villas (CCR)
Developer: CapitaLand
Tenure: 99-year leasehold
Location: Coronation Road (D10)
Nearest MRT station: Tan Kah Kee (future)
Estimated no. of units: 109
Image: Artist’s impression of Sims Urban Oasis looking towards the Sports Hub. (Photo by GuocoLand)
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
