New private home units are expected to be competitively priced as developers prepare to roll out new residential projects amid challenging market conditions, according to analysts media reports.
Real estate agency PropNex Realty said past transactions indicated prices of new homes moderated by 10 to 12 percent on average over the past year.
Notably, prices of new units in the suburban areas as at end-2014 range between $1,000 psf for developments located further away from MRT station, and $1,400 psf for well-located projects, said PropNex.
The range stands between $1,400 and $1,900 for units located within the city fringe and from $1,900 to $2,400 for those in the Core Central Region (CCR).
El Development launched Symphony Suites at Yishun over the weekend.
“In order to keep units affordable, we have done away with large units, we have no balconies, no personal enclosed space, no roof terraces and no penthouses. We have tried to keep the layout of our units optimised,” said Lim Yew Soon, managing director at EL Development.
The 660-unit development saw 61 units snapped up at an average price of over $1,000 psf.
Another upcoming project is the Sims Urban Oasis at Sims Drive by GuocoLand. Market watchers expect units at this development to be priced from $1,300 to over $1,400 psf. They also expect Frasers Centrepoint’s North Park Residences in Yishun Central to have about the same price.
In recent years, sales of new homes slowed down after the government introduced a slew of property cooling measures and loan curbs.
Notably, new home sales plunged by over 50 percent year-on-year to more than 7,000 units in 2014. The drop in sales affected how new homes are being priced today.
“What the buyers can expect is this – the price will be relatively attractive because today, buyers are price sensitive, developers are also relatively anxious in many of the launches to have that momentum,” said PropNex CEO Mohamed Ismail Gafoor.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
