Saturday , August 20 2022

Like another mega condom, will there be enough demand in the real estate market in Singapore?


SINGAPORE: The new property launch has been announced as the largest Singapore-based private housing project open for review on Friday (March 15th), amid signs of a recovery in house buying activity.

Treasure in Tampines, located on the vast location of the former Tampines Court HUDC estate, will have 2,203 units. That makes it the largest condominium here, said the developer Sim Lian Group who bought the site for a total sale for $ 970 million in 2017.

The sale will begin later this month for units of one to five bedrooms, with approx. 1,280 USD per square meter (psf).

Singapore homebuiers at Treasure at Tampines  t

Mega Condominion Development, Treasure at Tampines, has 2,203 units of one to five bedrooms. (Photo by Jeremi Long)

This followed the launch of another mega project earlier this month – the Florence Residences, a lease project for 1,410 units in Hougangu with an average selling price of nearly $ 1,400 psf. Developed by Logan Properti, this occupies the location of another HUDC property of Florence Regency, which was also sold in the block in 2017.

There are a few more boring projects in the plan that offer more than 1,000 units, market observers say. These are Parc Clematis, Avenue South Residences and former Normanton Park, said Huttons Asia Head Lee Sze Teck, although Treasure at Tampines could remain the largest in terms of offered units.

Repeatingly, CBRE chief researcher for Singapore and Southeast Asia Desmond Sim said: "Mega events are not surprising because we have already seen some of these major locations that are being done in the previous sale of the block."

For the whole of 2019, some analysts expect that about 40 to 60 new launches will be published, which total as many as 17,000 private housing units.


This Swedish hundred new projects are hoping to capture the "real" buyers of homes remaining on the market despite last year's cooling measures, worrying about rising interest rates and economic insecurity, analysts say.

They cited the latest data from the Directorate for Urban Reconstruction, which showed that 455 private houses were sold by developers in February. This is an increase of 18.5% compared to the previous year, which is 4.4% more than in the previous month – a "rather encouraging" result, said Mr. Sim.

"I would not say that there was no effect. Some customers take longer to make a decision, "said Mr. Lee's Hutton, referring to asset restrictions that have increased purchasing costs and reduced their ability to take larger loans to buy private property.

Potential buyers of limited-budget homes, in particular, should rethink how they may have to grow from $ 35,000 to $ 50,000 more in new measures. "Some of these border customers facing cash shortages will have to save again before they enter the market," Mr Lee said.

READ: New income from private homes jumped 18% in February

READ: Comment: Who buys private property after last year's cooling measures?

However, there is still "real demand in the market, especially for projects that are well located and at affordable prices," Mr. Lee said.

He brought Affiniti to Serangoon and Riverfront Residences, both of whom were best-selling in February, after getting news of the upcoming Cross Island line.

"(They) have already sold, but the announcement of the Cross Island line has further increased demand. To capture this request, they have released more units. "

Even if failure to deliver supplies could increase competition, mega projects could keep their own when it comes to the success rate, said Mr. Sim.

"Mega events usually come with many more facilities that lack boutikue projects. The cost of the operation is shared by a larger number of people, so the conservation costs will be cheaper. "

Repeating this, Mr. Li noted that some mega projects launched before last year's property restrictions continued to receive interest from buyers. "Some still sell two-digit sales a month, and now they sell about 50 percent."


For now, while some developers have increased fees to encourage their agents, they have ceased to distinguish goodies for demanding customers.

However, analysts say this could change as more supplies and customers choose to take the time to choose.

"Many buyers know they are disappointed about the election so they can sit and wait," said Mr. Sim. "There are buyers, like HDB upgrades, but the question is whether they will make the decision as quickly as possible, so price and location will have to be competitive."

Mr. Stanley Lin is a customer who keeps his options open.

The 38-year-old has been looking for a new home for six months, as his apartment reached a minimum period of occupation. Treasure in Tampines was the third condominium project he visited with his family.

"We stay at Tampines and Treasure is one of the sites we often visit, especially with the market next to it. We thought we'd come and check. "

The location is at the top of the list of considerations, said Mr. Lin, while tough duties so far have not been the main obstacle. "Until it's too long, it's okay."

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Home buyers seen in the Treasure at Tampines sales gallery – a mega condominium development that was opened for inspection on March 15, 2019. (Photo by Jeremi Long)

Speaking to Channel NevsAsia at the Treasure's sales gallery on Friday, OrangeTee & Tie CEO Steven Tan said he was "very optimistic" about sales with regard to "attractive" prices for new developments and another unique sales point.

This includes a "strategic location" near the cluster of employment in the Tampines Regional Center and Changi Business Park. Its size also means a "flexible" design for unique objects, such as space for working together.

"We received feedback that our prices are in the range of availability of many potential customers, including HDB upgrades and investors … Due to this attractive price and other positive factors, we think the growth rate will be high."

Being among the first mega projects to be launched will also help to "capitalize the market," Tan said. Orange Tee and Tie is one of three marketing agencies for goods in Tampines.

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