Irwell Hill Residences will be previewing this weekend, followed by Grange 1866, a boutique 60-unit condominium (redevelopment of iliv@Grange) the following weekend. Prices are anticipated to begin at $2,700 per square foot.
Irwell Hill Residences and other future launches, according to Mark Yip, CEO of Huttons Asia, will “ride on the strong sales momentum” witnessed at Midtown Modern. Irwell Hill Residences is the district’s only new development in 15 months, he adds.
Additionally, there are 351-unit One Bernam and 165-unit One-north Eden. “They each have their own distinct selling features that appeal to distinct target groups,” Yip explains.
For example, One Bernam, situated inside the CBD’s Tanjong Pagar neighborhood, will attract investors, while One-north Eden will be able to capitalize on “pent-up demand” in the one-north region, which has not seen a new launch in 14 years, he says.
Upcoming Development in the Heartland
Another planned development is Provence Residences at Canberra Link, a 413-unit executive condominium (EC). Since January last year, when Parc Canberra was launched, there has been no new EC launch in Sembawang, according to Nicholas Mak, head of research at ERA Realty.
“The very strong first response to Midtown Modern will bolster developer and house buyer confidence for future projects,” he adds.
Other developments anticipated to come online in the Core Central Region (CCR) over the next three months include the 90-unit Peak Residence on Thomson Road, the 230-unit Perfect Ten in Bukit Timah, and the 138-unit Klimt Cairnhill, according to Lee Sze Teck, director of research at Huttons Asia.
“The market has been on a tear since the circuit breaker, with many new releases doing very well on their first day of sales,” Lee continues. “With Midtown Modern generating outstanding first-day sales, it has undoubtedly increased market confidence, particularly given the backlog of new openings in the CCR.”
Increased Demand since Circuit breaker
Demand for housing has increased significantly since the circuit breaker was removed in 2H2020, according to Leonard Tay, Knight Frank’s director of research. “It was just that there were no noteworthy releases in February 2021,” he continues.
“As a result, developer sales in the private home sector slowed to 645 deals throughout the month (excluding ECs). When compared to January, this was a 60.5 percent reduction or almost 1,000-unit decline.”
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According to Han Huan Mei, director of research at List Sotheby’s International Realty, Midtown Modern is the third new residential development to reach a three-digit sales number in its first weekend — after Normanton Park and The Reef at King’s Dock.
“This is unquestionably an indication of a healthy market mood, as well as the readiness of real house buyers to join the market,” she adds. “They may include both end users and investors. Some of them may have a specific project in mind, while others may be opportunistic purchasers who focused on projects with excellent characteristics at an appealing price.”
Chia Ngiang Hong, group general manager of City Developments Ltd, believes the prognosis for 2021 “remains reasonably optimistic and robust” (CDL). The factors that underpin the private housing sector remain intact, including pro-business legislation and a stable political climate.
“With the introduction of vaccinations, indications of progress in pandemic containment, and macroeconomic recovery, home demand and buyer mood may strengthen further in the coming months,” he says.
CDL has sold about 260 units in its existing launches in the first three months of 2021. This increases the developer’s overall inventory to somewhere in the neighborhood of 1,400 units (including those with joint venture partners).
Best Seller Condo in Singapore
Amber Park and MORI condo at Geylang were among the best-sellers in February, with 20 units sold at a median price of $2,447 per square foot due to its VVIP sales
“Indeed, developers aim to sell as many units as possible in order to reduce their inventory and minimize any regulatory risk,” ERA’s Mak observes.
“I believe the government should expand the amount of land available for sale under the 2H2021 plan. When it comes to absorption, the government should be less cautious. If they do not boost land availability this year, all land tenders will result in ever-increasing prices.”
And this brings us back to the recurring issue of whether another wave of property cooling measures is imminent. “The impact of having too many cooling measures is what economists refer to as ‘adaptive expectations’ – people anticipate them,” Alan Cheong, executive director of research at Savills Singapore, explains.
“I believe there will be more cooling measures, but I do not believe they will be enshrined in hard-coded laws and regulations. I believe policymakers will take care to consider them thoroughly before adopting them.”