Latest Q1 2018 flash estimate by URA (Urban Redevelopment Authority) shows steepest quarter-on-quarter increase since 2nd quarter of 2010, for private residential property price index.
The flash data also indicated increase of price index by 4.6% from a year ago.
At new condo launches since beginning of 2018, healthy demand despite higher priced apartments is bolstering developers’ confidence.
Private residential developments launched so far are New Futura, Park Place Residences, The Tapestry and The Verandah.
Only executive condominium in 2018, Rivercove Residences, saw 80% apartments snapped up at average of $965 psf, during its launch on 14 April 2018.
The next EC launch is estimated to happen only in 2019 at Sumang Walk EC.
Demand driving Singapore Property Prices
Law of supply and demand says when there’s demand with short supply, prices will go up.
Moderating land supply by Singapore government in recent years resulted in limited supply.
This led developers to turn to existing completed developments, commonly known as enbloc sales.
The outcome was a sudden influx of enbloc sales news, with many developments seeing home owners getting a ‘windfall’ from successful enbloc sales.
With the windfall, home owners now have to seek alternative housing, thus driving up demand for Singapore residential properties, be it HDB or private condominium.
Identify potential increase in Singapore Property Prices
From the incremental price developers are paying for each land parcel in same locality, we can safely conclude an uptrend market.
An example is Twin VEW condo at West Coast Vale. Land parcel acquired before Twin VEW was Parc Riviera, a condo that’s fully sold to-date.
Twin VEW developer CSC Land Group bided at land cost 7% above Parc Riviera.
For comparison, a low-level apartment was transacted from $550k for Parc Riviera, and indicative price for Twin VEW apartments is from $650k.
Another example is at Serangoon North Ave 1.
Oxley Holdings paid $835 psf ppr (per plot ratio) to existing home owners of Serangoon Ville.
A month later, joint developer Keppel and Wing Tai was awarded a nearby plot at $965 psf ppr.
When is good time to buy?
The best time to buy is always now. Why do I say that?
The future is always uncertain, and we can’t turn back the clock.
Looking at above example of increased land price, future new condo launches is anticipated to be priced higher than now.
You may be cynical and decide to wait for next opportunity.
If so, perhaps you would like to ponder on recent common comment “I can kick myself for not buying one last year.”
When the next opportunity arises, would you know ‘that’s it’?
Interested in New Condo Launches?
Submit form below or call developer’s appointed marketing agent at tel no. 96700937 for discussion of your housing requirements or to obtain project information of upcoming new condo launches.
For list of current available residential developments, please ‘mouse-over’ New Launches at top bar of this page.