Singapore’s real estate scene looks set to heat up even further with another frenzy of 40 new launches this year.
Following strong market stabilization in 2019 after the decisive property cooling measures implemented by the government in 2018, buyers’ demand has increased significantly with renewed confidence on new benchmark prices being set.
We are entering the era of new launches where most of the site acquisition was clinched during the peak of the aggressive market collective sales (en-blocs), and seeing historical highs in land cost.
Dwindling Supply In North-East Region
Shifts in the market supply will be notable, with approximately 45% of new launches being located in the Core Central Region, and little to no new condo supply in the North East region.
In the past two years, most of the new developments were concentrated in the North East region, leaving property buyers with plenty of time and choices to take their pick.
Now as more units there are being sold, the dwindling supply has gotten developers reacting to slowly increase prices, leaving upcoming buyers with a price disadvantage compared to buyers who had snapped up units much earlier at lower and more attractive prices.
New Window of Opportunities
For the upcoming new condo launch in the Core Central Region, we can expect developers to be wary against pricing their products exorbitantly amid the strong competition.
This may well work in potential buyer’s favor, as developers may strategize to offer lower prices, some even at their near break-even price, in order to move early unit sales.
Uncertain global economic conditions are also weighing down developer’s expectations, but this could change real quickly if a positive rebound sign happens.
Watch closely for suppressed prices, and you should be able to find great value buys amongst all.
Increase On Unit Size Ruling
The URA ruling passed a year ago forcing all upcoming new condo launch in Singapore to do away with compact-sized apartments may also price out buyer’s budget.
Existing development prices can be kept low and attractive because developers innovate through smaller apartment sizes to allow prices to be kept affordable.
Now with the URA 85sqm guideline together with the mandatory inclusion of home shelters within residential units, it will prove difficult for developers to keep prices at today’s range, considering each unit will have to be built larger, but their land cost remains unchanged.
Takebacks For You
Buying a new launch condo is still a better option over resale condo units, considering the near-certain promise of capital appreciation.
On the other hand, it is still vital to get your research done right.
By making full use of proper price analysis with real facts and data at https://whatcondo.sg/, you can simplify and identify the best new launch condo for yourself.