More than 3,500 private homes are scheduled to be built in Q4 2023
In the CCR the focus is on the upcoming launch of Marina View Residences. The 748-unit project is scheduled to be constructed on a property that IOI Properties won in a tender offered by the state in 2012 for S$1.51billion or S$1,379 per sq ft ppr. UOL Group, Singapore Land Group as well as Singapore Land Group acquired the freehold Watten House site, formerly Watten Estate Condominium in a collective sales tender in October 2021, at S$550.8 Million or S$1,786 sq ft per.
Most of the new launches this year’s calendar had psf rates that were above S$2,100. Market watchers anticipate that prices will remain stable in the next few months.
Three mixed-use launches are also in the works The massive 748-unit Marina View Residences condominium 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 as well as the 215-unit Skywaters Residences at the former AXA Tower site on 8 Shenton Way, developed by a Perennial Holdings-led consortium.
Information from the Department of Statistics Singapore showed that the cost of steel reinforcement bars – an essential material in building works decreased by 27.7 per cent year on the previous year, in July.
In the environment of a slower market in the context of a slowing market, the most recent warnings from the Urban Redevelopment Authority (URA) Realis platform indicate that the median price in the mass-market segment this year is around S$2,074 per square foot. This includes new suburban homes and private residences, but not executive condominiums (ECs) located within the Outside Central Region (OCR).
Read also: Terra Hill
While the pressure on developers to cut prices has decreased in recent years, the rising interest rates and costs for holding may discourage developers from doing this. The market may not be able to take higher prices, as the increased tax rates on stamps have already kept investors and foreigners away.
More than half of the new launches expected within the last three months of this year will be located in the suburbs, or OCR One of them is in District 23 (Upper Bukit Timah) One is located in District 17 (Changi), two located in District 22 (Jurong) and two districts in District 26 (Lentor and Upper Thomson).
In District 22, the J’Den condo is anticipated to be priced between S$2,000 and S$2,100 psf. In Jurong, the 440-unit Sora is being built by Chip Eng Seng Holdings, KSH Holdings, and SingHaiyi Group. The 99-year leasehold condominium is situated in the old Park View Mansions, which was auctioned off for S$260 million or $1,023 per person in July 2022.
In the city fringe, or Rest of Central Region (RCR) The median cost of new home sales is S$2,511 per sq ft and in the prime Core Central Region (CCR) the median price is S$2,903 per square foot.
Lim said that the costs 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. Watten House, in the CCR is expected to launch with a cost of between S$3,300 and S$3,400 per square foot.
The ABSD payable for the purchase of a site between July 2018 and December 2021 will be 25%, and a part of it is not refundable of 5%.
At the new Lentor Hills estate in District 26, Hillock Green and Lentoria will join two new condos already on the market. The consortium building Hillock Green had won the property in the GLS tender for S$481 million or S$1,108 psf per month on September 20, 2022. The 265-unit Lentoria is situated on land purchased by Hong Leong Holdings and Mitsui Fudosan through the same tender, for S$276.4 million or S$1,130 per square foot ppr.
Both are expected to go live sometime in late September or early October, and will retail for between S$2,150 and S$2,250 per sq ft for Hillock Green and S$3,300 to S$3,400 for Watten House.
More than 10 residential private projects with more than 3500 homes are expected to go on the market during the fourth quarter of the year. Prices are likely to stay at current levels despite indications of homebuyers’ waning appetite in the market, with land and financing costs remaining high in the aftermath of the market cooling measures, experts claim.
Around 2,370 units are expected to be built by five projects set to launch in Q4. The remaining properties will be added to the inventory that has been steadily increasing since new projects aren’t being taken up.
District 23 homebuyers can look forward to the launch of 341 apartments at Hillhaven at Hillview Rise by Far East Organization and Sekisui House. The property was acquired at an auction by the government in November 2022 for S$320.8m which is roughly S$1,024 per plot ratio. Analysts had predicted prices for the launch between S$1,800 and S$1,900 per square foot.
One of the first projects scheduled to be launched in the next few weeks is Hillock Green, a 474-unit condo that is being developed by Yanlord Land Group, China Communications Construction Company and Soilbuild Group Holdings.
UOL and Singapore Land are also planning to build a freehold condo at Watten House located on Shelford Road, in the City Centre CCR. CCR.
CBRE estimates that developers will start 15 new residential projects by 2022, and the number of units being 4,528 (excluding ECs). CBRE estimates that 17 private projects without land were launched by developers in the last year, totalling 6,773 residential units.