In 2023’s Q4 more than 3,500 new homes will be launched
A majority of the launches this year’s fiscal year had PSF rates higher than S$2,100. Market watchers expect pricing to remain the same in the months ahead.
Over half of all new launches that have been announced in the final quarter of the year are anticipated to be located in the suburbs or OCR. One is located in District 23 Upper Bukit Timah, one in Changi District 17 Two are in Jurong District 22 and two in Upper Thomson District 26.
District 23 homebuyers will see the launch of the 341-unit Hillhaven located at Hillview Rise, developed by Far East Organization and Sekisui House. The land was purchased in a tender by the state in November 2022, for S$320.8m which is roughly S$1,024 per plot ratio. Analysts had earlier predicted prices for the launch between S$1,800 and S$1,900 for each square foot.
Another project that is in the pipeline is the freehold condominium Watten House situated at Shelford Road in the city center, or CCR, from UOL and Singapore Land.
Both are likely to be launched in the latter half of September or October, at prices of approximately S$2,150-$2,250 per square foot for Hillock Green and S$3,300 to S$3,400 per square foot for Watten House.
Lim stated that the prices of RCR developments, including Sky Botania, a 172-unit project located along Serangoon Road, and The Hill @ One-North with 144 units, will be between S$2,400 to S$2,600 per square foot. In the CCR, Watten House is likely to be launched with costs of between S$3,300 and S$3,400 psf.
In the fourth quarter, more than 10 residential private projects with over 3,500 housing units are anticipated to be completed. The prices are expected to remain at the
current level, despite signs of a decrease in demand for homes, with financing and land costs still high in following market cooling measures, analysts claim.
Although the immediate pressure on developers to cut prices has diminished in recent years, the rising interest rates and cost of holding could deter developers from doing this. The higher costs will be difficult for buyers to bear as this year’s more expensive stamp duty rates holding buyers from foreign and domestic investors from buying.
See also: Sceneca Residence
In the context of a slowing market, the latest caveats from the Urban Redevelopment Authority (URA) Realis platform indicate that the median cost in the mass-market segment for this year is approximately S$2,074 / square foot. The Outside Central Region (OCR) encompasses all suburban homes built in the last year (excluding executive condos).
Around 2,370 units are expected to be manufactured by five projects that will begin in the fourth quarter of this year. These will add to an existing inventory of properties that are not completed which is growing steadily as take-up at new projects slows.
The ABSD payable for sites purchased between July 2018 and December 2021 will be 25%, and a part of it is not refundable of five percent.
The data obtained from the Department of Statistics Singapore showed that the cost of steel reinforcement bars, which is a vital component in construction decreased by 27.7 percent year on the previous year, in July.
CapitaLand’s J’Den condominium in District 22 is anticipated to sell for S$2,000 – S$2,100 psf. In the Jurong region will get the 440-unit Sora constructed by Chip Eng Seng, KSH Holdings and SingHaiyi Group. The 99-year leasehold condo is located in the old Park View Mansions, which was auctioned off for S$260 million, or S$1,023 per month in July 2022.
The launch of Marina View Residences is the focus in the CCR. The 748-unit complex is expected to be constructed on a site that IOI Properties won in a tender offered by the state two years ago in the amount of S$1.51billion or S$1,379 per sq ft ppr. The freehold Watten House, UOL Group and Singapore Land Group had acquired the site, which was previously the Watten Estate Condominium as part of a collective auction in the month of October 2021. The price was S$550.8 million or S$1,786 per sq ft per square foot.
In the city fringe, or Rest of Central Region (RCR) The median cost of homes sold is S$2,511 per sq ft In the main Core Central Region (CCR) the median price is S$2,903 per square foot.
Hillock Green is one of the first projects that will go on sale in the next few weeks. It’s a 474-unit condo designed by Yanlord Land Group and China Communications Construction Company.
In the newly constructed Lentor Hills estate in District 26, Hillock Green and Lentoria will join two new condos already on the market. The Hillock Green consortium won the property in a GLS tender, for S$481m or S$1,108 psf per square foot. This was back in September 2022. Lentoria’s 265 units are, however are situated on land acquired by Hong Leong Holdings, Mitsui Fudosan and Mitsui Fudosan in September 2022 through a GLS auction for S$276.4 Million, or S$1,130 per sq ft ppr.
Three mixed-use launches are in the pipeline The massive 748-unit Marina View Residences condo on the Marina View Government Land Sale (GLS) site, which was developed by IOI Properties; CapitaLand’s redevelopment of JCube mall into the 368-unit J’Den condo and the 215-unit Skywaters Residences located on the former AXA Tower site on 8 Shenton Way, developed by a Perennial Holdings-led consortium.
CBRE predicts that developers will start 15 new residential projects by 2022. This will include an estimated 4,528 (excluding ECs). CBRE further believes that developers launched in the year so far 17 private non-landed developments with 6,773 units.