In the fourth quarter of 2023, more than 3,500 new homes will be built
Hillock Green and Lentoria, two of the three newly built condominiums currently available for sale, will be situated within the Lentor Hills Estate in District 26. The consortium building Hillock Green had won the location in a GLS tender for S$481 million or S$1,108 psf per month in September 2022. The 265 units of Lentoria however, are located on land purchased by Hong Leong Holdings, Mitsui Fudosan and Mitsui Fudosan in September 2022 in a GLS tender worth S$276.4 Million or S$1,130 for each sq ft ppr.
About 2,370 units are anticipated to be manufactured by five projects set to launch in Q4. The remaining properties are expected to be added to the stock that has been steadily increasing because new projects aren’t being filled up.
Although the immediate cost pressures have waned but rising costs for holding and interest rates could deter the industry from cutting prices. The higher costs will be difficult for the market to accept and this year’s increased stamp duty rates keeping buyers from foreign and domestic investors off.
In the context of a slowing market in the context of a slowing market, the most recent warnings from the Urban Redevelopment Authority (URA) Realis platform show that the median cost in the mass market segment for this year is about S$2,074/square foot. This includes new suburban private homes, which excludes executive condominiums (ECs) that are located within the Outside Central Region (OCR).
The launching of Marina View Residences is the focus in the CCR. The 748-unit development is set to be built on a site that IOI Properties won in a tender offered by the state two years ago for 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 and a joint auction held in October 2021. S$550.8 million, or S$1,786 per square foot.
According to data from Statistics Singapore, the price of steel reinforcing bar, an important building material decreased by 27,7 percent in July.
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CapitaLand’s J’Den condominium located in District 22 is expected to sell for S$2,000 – S$2,100 psf. In Jurong, the 440-unit Sora will be built by Chip Eng Seng Holdings, KSH Holdings, and SingHaiyi Group. The 99-year leasehold condominium is situated at the former Park View Mansions. It was sold for S$260m or $1,023psfppr in the month of July 2020.
More than half of the forthcoming launches scheduled for the final three months of this year will be located in the suburbs, or OCR with one of them being in District 23 (Upper Bukit Timah) and one located in District 17 (Changi) Two are located in District 22 (Jurong) as well as two in District 26 (Lentor and Upper Thomson).
CBRE predicts that developers will start 15 new residential developments in 2022, with an estimated 4,528 (excluding ECs). CBRE further estimates that developers have launched in the year to date 17 non-landed private projects that have an overall total of 6,773 units.
Another development in the pipeline is freehold condo Watten House situated at Shelford Road in the city center, or CCR located at the intersection of UOL and Singapore Land.
Both are expected to go live sometime in late September or early October, and will retail for 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.
District 23 residents can look forward to the launch of 341 units Hillhaven located at Hillview Rise by Far East Organization and Sekisui House. The land was purchased through a state tender in the month of November 2022. S$320.8 million or nearly S$1,024 per plot ratio. Analysts previously pegged launch prices at S$1,800 to S$1,900 psf.
Three mixed-use developments are in the pipeline including 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 located in the site of the former AXA Tower located at 8 Shenton Way.
In the city’s fringe or Rest of Central Region (RCR), the median price of home sales for new homes is S$2,511 psf In the main Core Central Region (CCR) the median price is S$2,903 per square foot.
More than 10 residential private projects offering over 3,500 housing units are scheduled to launch during the fourth quarter of the year. The prices are expected to remain at the current level despite indications of a decrease in demand for homes, with financing and land costs remaining high in the following market cooling measures, analysts suggest.
Most of the new launches of the year had psf rates above S$2,100. Market watchers predict that prices will be stable in the next few months.
The ABSD payable rate is 25 percent, with a non-remissible component of 5 per cent for sites purchased between July 2018 and December 2021.
Hillock Green is one of the first projects that will be available for sale in the next few weeks. It’s a 474 unit condominium that was created by Yanlord Land Group and China Communications Construction Company.
Lim has stated that the cost of RCR developments, including Sky Botania, a 172-unit project on Serangoon Road, and The Hill @ One-North with 144 units, will be between S$2,400 and S$2,600 per square foot. In the CCR, Watten House is likely to be launched with prices of S$3,300 to S$3,400 per square foot.