New project launches in the Core Central Region (CCR) stood out for their stellar performance this year. Investors snapped up units in projects in the CCR such as Irwell Hill Residences, Midtown Modern and Jervois Mansion, which ranked among the Top 10 launches according to percentage sales.
“Ultra-luxury projects such as Park Nova and Les Maisons Nassim sold units at benchmark prices,” says Lee Sze Teck, Huttons Asia head of research.
The 54-unit Park Nova sold 32 units (59%) at a median price of $4,844 psf while Les Maisons Nassim sold three units at a median price of $5,930 psf, one of which was the super penthouse which fetched a new record of $75 million or $6,210 psf, says Tricia Song, CBRE head of research for Southeast Asia. On the other hand, Jervois Mansion, which sold all 101 out of 130 units released, was well-received due to its attractive price point (average price of $2,578 psf).
“Ultra-high-net-worth individuals (UHNWIs) are finding value in Singapore’s luxury market which may be seen as a steal compared to other international financial centres,” according to Huttons’ Lee. “The business-friendly environment coupled with high quality of life and vaccination rate continued to attract wealth to the city state. The relatively low taxes are another plus point.”
A standout project in the city area was Canninghill Piers, which was launched in November and has sold 579 units (83%) at an average price of $2,992 psf to date. Its super penthouse went for $48 million ($5,360 psf), which was the second highest penthouse deal this year. “Its rare prime location in Clarke Quay and its distinctive features proved to be a hit among locals and foreigners,” notes Ismail Gafoor, CEO of PropNex.
In the city fringe or Rest of Central Region (RCR), Normanton Park, led the way as the first new launch of 2021, and best-selling project of the year. As at Dec 17, a total of 1,452 out of a total of 1,862 units (78%) have been taken up at an average of $1,779 psf, according to caveats lodged.
In the Outside Central Region (OCR), the 487-unit Pasir Ris 8 was one of the key projects that sparked a buying frenzy for homes in the suburbs, notes PropNex. About 428 units (88%) have been sold at an average of $1,598 psf, with four units sold at prices above $2,000 psf. “HDB upgraders drove demand for new homes in the OCR and RCR in 2021,” notes Gafoor.
Demand for homes this year stemmed from the need for bigger space due to work from home and home-based learning, adds Huttons’ Lee. “Flush with liquidity from their profits in the financial market, buyers switched their focus to a physical asset like properties for stable returns,” he notes.
New home sales in November totalled 1,547 units — a 70% m-o-m increase. It was the strongest new home sales for the month of November in 10 years, since 1,702 units were transacted in November 2011. On a year-on-year basis, developers’ sales last month doubled from the 774 units sold in November 2020, notes PropNex’s Gafoor.
“It is unlikely that the sales figure in December will top last month’s number,” notes Gafoor. On the first weekend of December, the 137-unit Mori saw 45% of units sold. The last two launches of the year are the 34-unit boutique development Zyanya at Lorong 25A Geylang by local construction firm Boldtek Holdings which had announced that its official launch will be on Dec 18; and the 230-unit, high-end condominium Perfect Ten in Bukit Timah in prime District 10 by Hong Kong property group CK Asset Holdings, targeted for launch on Dec 19.
With dwindling stock and new property cooling measures in place, Gafoor expects new home sales to moderate to about 9,000 to 10,000 units next year, and private home prices to rise by about 3% to 5%, in line with Singapore GDP forecast for 2022.