Welcome to our weekly update, where we share with you the latest happenings in the first-hand market. As usual, the reason why we do this is simple. The better you understand demand, the greater you are in picking out properties with higher capital appreciation.
However, do take note that the weekly update is a guide for your reference only. Do not be distracted by all the condos on the list. It is far more important to understand the why before looking at all the “what”. This decision-making process will ensure that you acquire a property that fit your requirements. And never live a day regretting your selection.
Updated 2021 Week 16 sales (19th – 25th April) – 347 units:
1) WEST ZONE – 197 units
One North Eden – 140 units
Ki Residences – 6 units
Forett @ Bukit Timah – 6 units
Mont Botanik – 1 unit
Midwood – 8 units
Parc Clematis – 4 units
Normanton Park – 21 units
Dairy Farm Residences – 6 units
Whistler Grand – 1 unit
View at Kismis – 1 unit
Clavon – 4 units
Kent Ridge Hill Residences – 3 units
Verdale – 1 unit
2) CENTRAL ZONE – 46 units
Peak Residence – 1 unit
Kopar at Newton – 1 unit
The M – 1 unit
35 Gilstead – 1 unit
Avenue South Residences – 4 units
Fourth Avenue Residences – 5 units
Royalgreen – 2 units
Juniper Hill – 2 units
Fyve Derbyshire – 1 unit
Pullman Residences – 1 unit
The Woodleigh Residences – 4 units
Stirling Residences – 8 units
The Landmark – 4 units
One Pearl Bank – 9 units
3) NORTH ZONE – 27 units
4) EAST ZONE – 33 units
5) EC CLUSTER – 16 units
6) LUX CLUSTER – 28 units
Reflections – 1 unit
Irwell Hill Residences – 9 units
The Avenir – 1 unit
Riviere – 3 units
Nouvel 18 – 1 unit
Midtown Modern – 2 units
Wallich Residences – 3 units
Leedon Green – 2 units
Meyer Mansion – 2 unit
Marina One Residences – 2 units
Martin Modern – 1 unit
RV Altitude – 1 unit (Purchase of an abortive unit)
Every Week, As Usual, Something Gets Sold
Every day, the sun goes up in the morning and comes down at night. And every week, as usual, units get sold. This week, however, was a little more interesting because there were two new launches with very differing sales results. One-North Eden did exceptionally well, clearing 84% of the entire development over the weekend. While Peak Residence, on the other hand, only managed to sell one unit. So, the question is this. Why did these two developments have so much difference in their sales numbers?
One North Eden And Peak Residence Sales Data
|One-North Eden Total Units||One-North Eden Total Sales||One-North Eden Remaining Units||Peak Residence Total Units||Peak Residence Total Sales||Peak Residence Remaining Units|
|1 Bedroom + Study||24||24||0||NIL||NIL||NIL|
|2 Bedroom + Study||48||48||0||15||0||15|
|3 Bedroom + Study||NIL||NIL||NIL||20||0||20|
|4 Bedroom + Study||NIL||NIL||NIL||10||0||10|
To better understand market demand, we must first find out the attributes of these two condos. To put things into perspective, I will be comparing the sizes, prices for your reference.
One North Eden And Peak Residence Unit And Price Comparison
|One-North Eden Unit Sizes||Peak Residence Unit Sizes||One North Eden Starting Prices||Peak Residence Starting Prices|
|1 Bedroom||NIL||528 to 560 sqft||NIL||$1,342,400|
|1 Bedroom + Study||517 sqft||NIL||$995,000||NIL|
|2 Bedroom||689 sqft||775 to 808 sqft||$1,288,000||$1,998,300|
|2 Bedroom + Study||764 to 797 sqft||829 sqft||$1,518,000||$2,068,200|
|3 Bedroom||947 to 1119 sqft||1088 sqft||$1,768,000||$2,797,900|
|3 Bedroom + Study||NIL||1066 to 1088 sqft||NIL||$2,741,300|
|4 Bedroom||1259 to 1410 sqft||NIL||$2,288,000||NIL|
|4 Bedroom + Study||NIL||1389 sqft||NIL||$3,557,400|
No Preview Period For Peak Residence
The other thing to note for Peak Residence is that there was no preview period where buyers can go down to the showflat to look at the development first. The showflat opening day was the booking day. Although not a common practice, this method of sales is more predominantly done for high-end condos. The reason is simple. Some high-net-worth individual’s income for a single day is sufficient to purchase that unit. Their time is far more valuable than the property. Besides, these HNWIs makes decisions very quickly. So having a preview period for such properties may not be that relevant.
There Is A Consistent Pattern
If you have been following our weekly updates, you should see a consistent pattern in the current property market by now. If the overall quantum is affordable, units will be taken. Now, this overall quantum depends on the unit type in the market. Any investment properties near the sweet spot of what I have covered for RV Altitude will be snapped up. For own consumption in the mass market area, prices above $2.5 mil are a little challenging. However, units are still selling, albeit slowly but consistently. And course, since the HNWI population in Singapore has jumped by 10%, there is a growing interest for large format units in the core central region.
A Little Knowledge May Be A Dangerous Thing
Understanding this market demand is crucial for you to make better decisions. For example, if you were to look at the URA’s 1st Quarter 2021 report, 23,735 units remain unsold. 23,735 units seem like a fairly big number, and it will take some time for all the developers to clear this unsold inventory. So why should I rush to buy now like everyone else? Well, it all depends on which product you are looking at? Are you looking at something like One-North Eden? Or Peak Residence? There is no right answer; it all depends on which product you are looking at at the end of the day.
Navigating the real estate market of today is not as simple as before. As a result of the government’s cooling measure implementation, there is a change in the pattern of consumption of real estate. It is no longer about buying cheap when prices fall and sell them for a nice profit when they climb back up. There is a need to understand the patterns behind this consumption to determine if the real estate you purchase will be profitable in the future. To help you in your research, why not speak with someone who looks at these patterns every day? Contact us today, and we will share further insights on how we can help you achieve your objectives.
Article contributed by Jerry Wong.
Jerry Wong is a realtor with Propnex Realty. He loves coffee, cookies and condos and has been in real estate for ten years. Most importantly, he loves connecting people to properties and gets enormous satisfaction when they acquire their dream home. Or making well-informed decisions that see their assets grow. Book a video call appointment, and Jerry will share with you the following.
- How certain factors affect real estate prices. Why some condos can make a million dollars while others can lose that same million.
- Why timing is not the most important thing. Because some people can buy the same condo at the same time, but one end up making $100k to $200k while the other suffers losses of the same amount!
- Understanding your requirements and craft a solution for your real estate needs. Be it in asset progression, tax planning, financial calculations, rentals, sales, etc.
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