In Q4 of 2023, more than 3,500 homes will be built
Three new mixed-use developments are in the pipeline The massive 748-unit Marina View Residences condo located on the Marina View Government Land Sale (GLS) site, created by IOI Properties; CapitaLand’s redevelopment of JCube mall into the 368-unit J’Den condo and the 215-unit Skywaters Residences at the former AXA Tower site at 8 Shenton Way, developed by a Perennial Holdings-led consortium.
Lim has stated that the cost of RCR projects, including Sky Botania, a 172-unit project on Serangoon Road, and The Hill @ One-North comprising the 144 units will be between S$2,400 and $2,600 per square foot. Watten House, in the CCR is expected to launch at a price of S$3,300 to S$3,400 for a square foot.
Although the immediate pressure on developers to lower prices has waned in recent years, rising interest rates and costs for holding may discourage them from doing so. Markets will be unable to bear increased prices, given that this year’s higher stamp duty rates have already prevented foreign investors from investing.
In the CCR the focus is on the launch of Marina View Residences. 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 psf per square foot. UOL Group, Singapore Land Group and Singapore Land Group acquired the freehold Watten House site, formerly Watten Estate Condominium through a collective sale auction in October 2021 for S$550.8 Million, or S$1,786 per sq ft ppr.
The median price for an apartment in the Core Central Region is S$2,903 per square foot.
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More than half of the 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 in District 23 Upper Bukit Timah, one in Changi District 17 and two in Jurong District 22, and two in Upper Thomson District 26.
At the new Lentor Hills estate in District 26, Hillock Green and Lentoria will join two new condos currently on the market. The Hillock Green consortium won the property through an GLS tender, worth S$481m or S$1,108psfppr. This was back in September 2022. Lentoria’s 265 units however, are located 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 of ppr.
In District 22, CapitaLand’s J’Den condo will be priced between S$2,000 and S$2,100 per square foot. In Jurong the 440-unit Sora will be built by Chip Eng Seng Holdings, KSH Holdings, and SingHaiyi Group. The 99-year leasehold condominium sits at the former Park View Mansions. It was bought for S$260m, or $1,023psfppr in the month of July 2020.
New launches this year have generally had psf prices in excess of S$2,100. Market analysts predict that prices will remain steady over the next couple of months.
More than 10 residential private projects with more than 3500 housing units are slated to launch in the fourth quarter of this year. Analysts predict that, despite indications that homebuyers are losing their interest, prices will likely remain at their current levels. Costs for financing and land as well as the overall market temperature, have remained high.
Both are likely to be launched sometime in late September or early October, with prices of 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.
According to data from Statistics Singapore, the cost of steel reinforcing bars, an essential building material, fell by 27,7% in July.
Hillock Green is one of the first projects that will go on sale within the next few weeks. It’s a four-74 unit condominium that was developed by Yanlord Land Group and China Communications Construction Company.
UOL as well as Singapore Land are also planning to construct a freehold condominium located at Watten House located at Shelford Road, in the City Centre, or CCR.
About 2,370 units are anticipated to be produced by five projects that will start in Q4. The unfinished properties will be added to the inventory which is steadily growing because new projects aren’t being accepted.
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 5percent.
Against a background of slowing sales, the most recent information from the Urban Development Authority’s (URA) Realis platform indicates that in the year to date the median price for the mass market segment is S$2,074 for a square foot. The Outside Central Region (OCR) encompasses all suburban homes built in the last year (excluding executive condominiums).
CBRE predicts that developers will start 15 new residential projects in 2022. This will include 4,528 (excluding ECs). CBRE further estimates that developers launched this year to date 17 private non-landed projects with an overall total of 6,773 units.
In District 23, homeowners are likely to witness the launch of 341 units at Hillhaven at Hillview Rise, developed by Far East Organization and Sekisui House. The site was purchased at a tender by the state in November 2022, for S$320.8m or roughly S$1,024 for a plot ratio. Analysts previously pegged launch prices between S$1,800 and S$1,900 per square foot.