Higher pricing benchmark for city fringe condos with more transactions exceeding $2,500 psf
/ EdgeProp Singapore |
Canninghill Piers is one of the new city-fringe condos that saw transactions exceeding $3,000 psf (Photo: City Developments/CapitaLand)
SINGAPORE (EDGEPROP) - Prices of new city fringe condominiums are surging, according to research compiled by OrangeTee & Tie. In its May Market Watcher Series report, the firm notes that the median price of new condominiums in the Rest of Central Region (RCR) excluding executive condominiums (ECs) rose to 8.7% to reach $1,972 psf in 2021. That upward trend has continued this year, with median prices growing to $2,086 psf between January and April.
The trend is underpinned by a spike in pricier transactions, which Christine Sun, senior vice-president of research & analytics at OrangeTee & Tie, believes may cement a new price benchmark for the RCR. In 2021, as many as 1,009 new condos in the city fringe were sold for above $2,500 psf, making up 19.1% of all units sold. In comparison, five years ago in 2017, only 0.4% or 14 units transacted within that price range. 2021 also saw a total of 165 transactions priced above $3,000 psf.
Year to date, 206 condominiums in the RCR have been sold for more than $2,500 psf between January and April, including 20 condos transacted above $3,000 psf at Rivière, Canninghill Piers and Sky Everton.
OrangeTee also observes that with the pricier transactions, a growing number of city fringe condos are now selling at prices similar to condos in the Core Central Region (CCR). Between January 2021 to April this year, 543 new condos in the RCR were sold above $2,800 psf. During that period, 963 new condos and 311 resale condos in the CCR were sold at the same price level.
“The price overlap indicates that some buyers were willing to pay top dollar for selected city fringe condos, similar to luxury condos, for their unique attributes, distinctive designs and unrivalled locations,” says Sun.
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