Over 3,500 brand new homes to be constructed in Q4 2023
Information from the Department of Statistics Singapore showed that the price of steel reinforcement bars – an essential component in construction decreased by 27.7 percent year on year in July.
More than half of the new launches anticipated in the last three months of the year will be found in the suburbs, or OCR with one of them being in District 23 (Upper Bukit Timah), one in District 17 (Changi), two located in District 22 (Jurong), and two districts in District 26 (Lentor and Upper Thomson).
Hillock Green is one of the first projects to be available for sale in the coming weeks. It’s a 474-unit condo developed by Yanlord Land Group and China Communications Construction Company.
In the CCR the focus is on the launch of Marina View Residences. The 748-unit development is set to be built on a property that IOI Properties won in a auction by the state in 2012 for S$1.51billion or S$1,379 psf per square foot. UOL Group, Singapore Land Group, as well as Singapore Land Group acquired the freehold Watten House site, formerly Watten Estate Condominium through a collective sale auction in October 2021 for S$550.8 Million or S$1,786 sq ft per.
With a backdrop of declining sales, the latest information from the Urban Redevelopment Authority’s (URA) Realis platform indicates that for the year to date, the median price for the mass-market segment is S$2,074 per square foot. The Outside Central Region (OCR) encompasses all suburban homes built in the last year (excluding executive condos).
The CapitaLand J’Den condo in District 22 is expected to be sold for between S$2,000 and S$2,100 per square foot. The Jurong area will also get the 440-unit Sora located by Chip Eng Seng, KSH Holdings and SingHaiyi Group. The 99-year leasehold condominium sits in the old Park View Mansions. It was bought for S$260m, or S$1,023 per sq ft in July 2020.
According to CBRE developers have announced 15 new private residential projects with 4,528 units (excluding ECs) for sale in 2022. CBRE also believes that developers have launched in the year so far 17 private non-landed developments with 6,773 units.
Although the immediate pressure on developers to reduce prices has decreased in recent years. However, rising interest rates and costs for holding may discourage the developers from doing so. And higher prices will be difficult for the market to stomach as this year’s more expensive stamp duty rates holding buyers from foreign and domestic investors off.
Lim stated that the prices of RCR projects, including Sky Botania, a 172-unit project along Serangoon Road, and The Hill @ One-North comprising 144 units, will be between S$2,400 and S$2,600 per square foot. In the CCR, Watten House is likely to see launch prices of S$3,300 to S$3,400 per square foot.
Read more: Lentor Hill Residences condo
The new launches of this year have typically commanded psf prices of above S$2,100. Market analysts predict that prices will remain stable in the next few months.
Hillock Green and Lentoria, two of the three new condominiums currently on the market will be located within the Lentor Hills Estate in District 26. The Hillock Green consortium won the property in an GLS tender, worth S$481m or S$1,108psfppr. It was announced in September 2022. The 265 units of Lentoria are, however are situated on land purchased by Hong Leong Holdings, Mitsui Fudosan and Mitsui Fudosan in September 2022 at a GLS tender for S$276.4 Million, or S$1,130 per sq ft ppr.
Both are expected to go live sometime in late September or early October, at prices of around S$2,150 to S$2,250 psf for Hillock Green and S$3,300 to S$3,400 psf for Watten House.
In District 23, homebuyers are likely to witness the debut of the 341-unit Hillhaven located at Hillview Rise, developed by Far East Organization and Sekisui House. The land was purchased through an auction in November 2022. S$320.8 million or nearly S$1,024 psf for each plot ratio. Analysts previously pegged launch prices as S$1,800-$1,900 psf.
In the fourth quarter of this year, more than 10 residential private projects with more than 3500 housing units are anticipated to be launched. Analysts predict that, despite indications that homebuyers are losing interest however, the prices are likely to remain at the current level. Land and financing costs and the general market temperature remain high.
In the city’s fringe or Rest of Central Region (RCR), the median price of homes sold is $2,511 per square foot In the main Core Central Region (CCR) the median price is S$2,903 per square foot.
Five projects that are planned for a Q4 launch could yield 2,370 units. This will increase the existing inventory of properties that are not completed which is growing steadily as demand for new projects slows.
The ABSD payable for sites purchased between July 2018 and December 2021 is 25%, with a portion that cannot be refunded of 5%.
Three mixed-use projects are currently in the works: the 748-unit Marina View Residences condominium on the Marina View Government Land Sale site (GLS), developed by IOI Properties, CapitaLand’s redevelopment JCube into the 368-unit J’Den Condo and the 215 units Skywaters Residences on the former AXA Tower located at 8 Shenton Way.
Another development in the pipeline is freehold condo Watten House located at Shelford Road in the city center, or CCR which is a joint venture between UOL as well as Singapore Land.