Singapore Condo Sales Surge

Prime Districts Lead Weekend Bumper Property Uptake

Singapore’s residential property market showed robust momentum over the weekend, with new condominium launches attracting strong buyer interest. More than 900 units were snapped up, highlighting sustained confidence in the sector’s mid- to long-term prospects.

River Valley Dominates with Blockbuster Sales

The River Valley precinct emerged as a major hotspot, with River Green leading the charge. The development sold a remarkable 88% of its 524 units, achieving an average price of S$3,130 per square foot (psf).

Promenade Peak, also situated in River Valley, recorded a 54% take-up rate, with prices reaching up to S$3,521 psf. These strong performances in prime locations underscore a significant appetite for high-end homes.

Kelvin Fong, chief executive of PropNex, commented on the overall market trend. “Taken together, the three new projects sold more than 62% of their combined inventory of 1,496 units,” he noted.

“To collectively sell more than 700 units on launch weekend is an impressive result. This speaks volumes of the demand in the market and their acceptance of these two projects.”

—Mark Yip, CEO of Huttons Asia

The vigorous weekend activity pushes new home sales in the Core Central Region (CCR) to their highest level in over 16 quarters. This signals a notable market recovery, especially after the hikes in additional buyer’s stamp duty rates in April 2023.

Fong elaborated on the value proposition for buyers. “Many buyers are seeing the strong value proposition of CCR projects in view of the narrowing price gap between CCR new launches and that of the Rest of Central Region, of late.”

This strong showing follows a period of firm bidding in recent state land tenders. For instance, a Holland Link site last week drew five bids, with the top offer at S$1,432 psf, and a Dunearn Road site in June attracted nine bids, reaching a high of S$1,410 psf.

River Green: A Resounding Success

River Green, a 99-year leasehold development, proved to be the star performer, selling 460 units as of Sunday, August 3rd. Its success is attributed, in part, to compact unit sizes making them more accessible and appealing to a wider buyer base.

Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), highlighted the project’s impact. “This marks the best-selling CCR project in recent memory,” he stated, noting its performance exceeded that of Upperhouse at Orchard Boulevard, which sold 54% of its units upon launch.

Nicholas Mak, chief research officer at Mogul.sg, observed that the average unit size at River Green was 668 sq ft. He suggested that developers may be “democratizing the high-end housing market in Singapore or at least creating an illusion of doing so” by offering more affordable options.

Promenade Peak: City Fringe Appeal

In the city fringe, Promenade Peak, another 99-year leasehold project, sold 320 of its 596 units. Buyers showed strong interest in both the Promenade Collection and the more premium Promenade Suites, reflecting confidence in the project’s location and offerings.

Singaporeans constituted 90% of the buyers, followed by permanent residents at 9%. Kelvin Fong of PropNex noted that two- and three-bedroom units were particularly popular, suggesting many buyers are end-users purchasing for owner-occupation.

SRI’s Sandrasegeran believes the simultaneous launch of River Green and Promenade Peak may have created a sense of urgency, drawing buyers and boosting overall demand in the area.

Canberra Crescent Residences: Steady Suburban Sales

Further north, Canberra Crescent Residences saw steady sales, with approximately 150 units, or 40% of its 376 units, sold by Sunday. The development marks the first condo launch in the Canberra area in four years.

Marcus Chu, CEO of ERA, attributed the project’s attractive pricing, close to Executive Condominium (EC) land rates, to a strategic land purchase during a market slowdown and a “priced-to-sell” approach. This strategy offers buyers built-in value and potential for future appreciation.

The project’s success could set a positive precedent for upcoming developments in the area, contributing to the overall positive sentiment in Singapore’s property market. In fact, Singapore’s private property price index rose 2.9% in the first quarter of 2024, indicating broad market strength (URA, Q1 2024).