These new condos are more affordable now compared to their initial launch prices

By Felicia Tan

/ EdgeProp Singapore |

August 23, 2021 11:40 AM SGT

Hyll on Holland scale model

Photo of Hyll on Holland scale model: Samuel Isaac Chua/EdgeProp Singapore

Everyone loves a bargain, and even more so, when it comes to property in Singapore. After all, land is a valuable resource in the country and it doesn’t look to be transacting at cheaper prices anytime soon.

For instance, the successful launch of Pasir Ris 8 on July 24 saw prices for its units increase six times due to overwhelming demand as the project was three times oversubscribed ahead of its launch.

Photo of Pasir Ris 8 1-bedroom showflat: Samuel Isaac Chua/EdgeProp Singapore

The surge in prices was also due to the fact that the project is an integrated development, and there hasn’t been a new launch in the area in seven years.

Furthermore, the pricing was attractive at an average of $1,592 psf.

See also: Pasir Ris 8: Behind the price increases

The increase in psf prices for the development has spurred other developers with similar projects to adjust their prices upwards.

However, if you look hard enough, there are projects that are selling below their initial launch prices for a variety of reasons. Here, we looked at projects that were launched in 2019, 2020 and 2021.

For a like-for-like comparison, we looked at similar units — or units sold from the stack with a similar floor range — during each project’s launch period, as well as its latest sales transaction to date.

See the EdgeProp New Launches Map for 2021.

Hyll on Holland

Photo of Hyll on Holland scale model: Samuel Isaac Chua/EdgeProp Singapore

The freehold Hyll on Holland was priced from $1.5 million for its smallest suite of 570 sq ft during its preview and simultaneous soft launch in October 2020.

See also: Far East Consortium bets on project quality and space at Hyll on Holland

During its launch, a 657 sq ft, two-bedroom unit on the ninth floor sold for a quantum of $1.72 million, or $2,625 psf, according to a caveat lodged on Oct 2, 2020.

On June 27 this year, a 657 sq ft, two-bedder on the eighth floor sold for $1.59 million, or $2,420 psf, representing a decline of some 7.81% in terms of psf.

The June sale may have been attributable to the “super promotion” by joint-venture partners Far East Consortium and the Singapore-listed Koh Brothers Group on the weekend of June 26 to 27, where the smallest unit, a 570 sq ft, two-bedroom apartment, was priced from $1.33 million ($2,338 psf).

See also: Hyll on Holland slash prices, moves more than 85 units in one weekend

The discounts during the promotion ranged between 7.5% and 13.2%, and differed according to the unit type and view.

Juniper Hill

Photo of Juniper Hill scale model: Albert Chua/EdgeProp Singapore

Launched on July 13, 2019, by developer Allgreen Properties, Juniper Hill is a freehold development comprising 115 units within a 12-storey residential block at 39 Ewe Boon Road.

Allgreen Properties is part of the Kuok Group run by billionaire Robert Kuok. The group also counts the Shangri-La Hotels and Resorts chain under its belt. Robert’s nephew Kuok Khoon Hong runs global agriculture group Wilmar International.

On July 20, 2019, a 915 sq ft, three-bedroom unit on the sixth storey sold for $2.41 million or $2,637 sq ft.

On June 19 this year, a similar 915 sq ft unit on the third floor sold for $2.23 million or $2,435 psf, representing a 7.66% decline in terms of psf.

The development has a mix of two- and three-bedders ranging from 581 sq ft to 1,109 sq ft, and four- and five-bedroom units on its top floor ranging from 1,819 sq ft to 2,217 sq ft.

It has its own concierge and hotel-standard services such as laundry service and the delivery of fresh bread and pastries in the mornings in partnership with Shangri-La Hotel Singapore.

Riviere

Rendition of the entrance plaza at Riviere: Frasers Property

Riviere, located where the former Zouk nightclub is on Jiak Kim Street, is now available from $2,293 psf for selected one- to three-bedroom premium apartments from 560 to 1,711 sq ft.

See: Rivière lifestyle at compelling prices from $2,293 psf

The “special promotional prices” were rolled out from June 7 this year and represents an 11.12% discount to the development’s initial starting prices from $2,580 psf two years ago.

For instance, during its launch on May 31, 2019, an 840 sq ft, two-bedroom unit on the eighth floor sold for $2.32 million, or $2,758 psf.

Meanwhile, a unit of the same size on the 11th floor sold for $2.22 million, or $2,648 psf.

Riviere is a 99-year leasehold development by Frasers Property. All 455 of its units will have a view of the Singapore River.

What the agents say

To Dominic Lee, head of the luxury team at PropNex Realty, the reason behind the lower prices post-launch may be attributable to developers’ deadline to sell their units.

“If their sales figures have not hit their targets, developers may not have much choice but to do limited-time-only promotions to gather sales and momentum to their projects,” he says. “However, the promos were for a limited time only; the projects have since raised their price.”

Amid the heightened demand for property in Singapore in 2021, speculation is rife that the government may impose further measures to prevent property prices from spiking.

Lee is not worried just yet, however.

“The policies have been in place for a few years now, and unless more measures are put in place, I don’t see any potential downward pressure on property prices, even in these projects.”

While he was not a part of the sales team for Pasir Ris 8, Lee adds that the demand for assets like properties is “real and sustainable”, citing the total debt servicing ratio (TDSR) framework that was implemented in June 2013 ensures that buyers do not overcommit themselves when purchasing a property.

“Coupled with low interest rates, I can only guess that prices will continue to rise,” he concludes.

On the price increase for Pasir Ris 8, Zac Huang, advisory group division director at ERA Realty, explains that consumers are particularly inclined towards integrated projects — whether for their own homes or as investments.

“HDB upgraders, especially, are willing to pay a premium for a great project with a shopping centre and easy access to transportation,” he adds. “As inventory for developers’ properties is depleting, most of the projects currently are selling well; with affordable quantum prices, buyers are now snapping up units within these projects.”

For condos like Hyll on Holland and Juniper Hill, Huang opines that their developers want to encourage more buyers with their promotions, as the projects have been in the market for over two years with less than 40% sold to date.

The lower prices are also pricing strategies adopted by the respective developers. These prices may go up when more units are sold.

When it comes to property price trends, Huang believes that prices will continue to “head north” in the next six to 12 months in the current market situation.

“If nothing changes, Singapore will continue its economic recovery. By that extension, the property market will also continue to do well,” he says.

“I am sure Singaporeans will continue to invest in local real estate. Coupled with the relaxation of border restrictions, I reckon more foreign buyers will return to Singapore to buy properties, thereby driving up property prices, too,” he adds.

Ken Low, managing director at Singapore Realtors Inc (SRI), says that the Pasir Ris 8's unique position of being integrated with a mall and an MRT station is "very rare" in Singapore.

Furthermore, with inventory in the Rest of Central Region (RCR) and Outside Central Region (OCR) running "dangerously low" currently, demand of the new launch is, naturally, high.

The high demand for such a unique plot and low supply has enabled Pasir Ris 8 to command higher prices, says Low.

For units such as Hyll on Holland transacting at lower prices psf compared to that at launch, Low attributes the lower prices psf to the high supply in the Core Central Region (CCR).

"And because of the competition, some developers are feeling the heat, therefore they run promotions to take a first mover's stance to capture the demand. We are seeing a higher surge of units transacted in the CCR as a result, so this window of discounts will be small," he notes.

Moving forward, Low expects property prices to increase even further going into 2022, with the current supply running low and future supplies being unable to "replenish our current stock in time".

"This is already proven by measured aggressive bidding by developers in the recent government land sales (GLS) tenders," he says.

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