Prices of new condominium units unlikely to fall: analysts
SINGAPORE: It is expected that there will be more property market activity in the next few months due to the launch of several new condominium projects. Analysts say that a huge bulk of the purchases will come from first time buyers. Prices of these new units are not likely to fall even after the 7th cooling measure introduced early this year. This is one of the most comprehensive cooling measure so far that cover the most segments.
Some of the new upcoming new launches are:
- Sennett Residence at Potong Pasir (300+ units) – about $1450 per square foot
- Sant Ritz (200+ units)
- Bartley Ridge
- 36-storey Trilinq Condominium at Clementi
- Dnest Condominium at Pasir Ris
- Urban Vista Condominium at Tanah Merah MRT
Nicholas Mak, executive director of SLP International Property Consultants, said: “Some developers will be ramping up their marketing efforts. A popular move is to get their marketing consultants or agents to do pre-launch promotion. They are also offering attractive incentives to marketing consultants and agents who may swing their buyers across to the developer’s project if there is more commission to be earn.”
Interest in these new projects is expected to remain strong, especially among the first time buyers who are not affected by the cooling measures. Investment demand, however, could slow as a result of the additional levy that investors have to pay. To still attract this group of investors, developers are offering discounts of at least 5 to 7 percent or more during the initial phase of the launch. However, don’t expect a major price cut.
Donald Han, HSR special advisor, said: “If not for the ABSD (Additional Buyer’s Stamp Duty), prices would have actually escalated by at least 2 to 5 percent. But because of the ABSD, price-point pretty much remained the same as what it was.”
For this year, there will be a total of 7 ECs expected to be launched, including Twin Fountains in Woodlands. E-application for Twin Fountains start in mid-March. EC developer Global Property Strategic Alliance says the cooling measures do not affect Twin Fountains and it expects good demand for units there. Twin Fountains and Forestville had already obtained Provisional Permission from the Urban Redevelopment Authority (URA) before the policy changes. As such, they are not subject to the new measures, having had their final designs finalised. 2013 will still be a good year for ECs.”