Which are the most popular new condos in 2018 (so far) and why?
By EdgeProp Singapore
/ EdgeProp |
Sentiment in the private residential market continued to be buoyant in 1Q2018. As the market picks up, which are the most popular new condos in Singapore this year?
Based on developer sales, we looked at the best-selling new projects by comparing the number of units at these developments versus the number of units that were sold so far this year.
1) Core Central Region (CCR)
The Asana in prime district 10 is one of the best-selling properties in the prime districts this year. Image source: Aurumland.
Properties within the CCR have always been sought after by well-heeled foreign investors, particularly those from Indonesia and the United States. This is seen in the high percentage of buyers who are foreigners and permanent residents (PR) among the list of the 10 most popular new projects within the prime districts.
For instance, about 70% of owners of Wallich Residence at Tanjong Pagar Centre are non-Singaporeans. Meanwhile, nearly half of buyers at Marina One Residences comprise of foreigners and PRs. On average, foreigners and PRs make up over 40% of buyers of these best-selling CCR properties.
From this list, we can deduce that proximity to an MRT station is an important consideration for investors of prime district properties. This especially pertinent for investors seeking high-yield rental properties, as our previous study found – properties yielding 4% and above tend to have three common characteristics, which included being located close to the city centre, near schools, and within 500m of the nearest MRT station.
Pricing is another factor that may have contributed to the popularity of these properties. In 2018 so far, the average median psf price for new condos and apartments within the prime districts was $2,628 psf. This makes developments like 38 Jervois, Sophia Hills, Marina One Residences and V on Shenton as among some of the most affordable new condo projects within the CCR this year.
Finally, tenure of the property could be another pull factor, considering that all top three properties on the list – 8 Hullet, The Asana and 38 Jervois – are freehold.
2) Rest of Central Region (RCR)
The 170-unit The Verandah Residences is inspired by the stately black-and-white colonial-era bungalows, and is one of the best-selling city-fringe projects in 2018.
The Verandah Residences and Harbour View Gardens were both launched in April 2018, and have already sold over 82% and 91% of their units respectively. Aside from pent-up demand among buyers, experts attribute the robust sales to location, as there have not been many new launches in the Pasir Panjang area in recent times.
Location also appears to be the primary pull factor for buyers of Park Place Residences at PLQ. Evidently, pricing was not a deterrent for buyers of the project, which is strategically located within an integrated development and boasts a sustainable design. As of May 2018, units at Park Place Residences transacted at a median price of $2,060 psf – way above the RCR average median price of $1,726 psf for new condos/apartments in 2018.
Future residents of Park Place Residences will have direct access to PLQ’s 340,000 sq ft mall, which contains anchor tenants such as an NTUC FairPrice Finest supermarket, Kopitiam food court and Shaw Theatres.
In addition, as the availability of freehold new projects diminishes, it is unsurprising that the majority of the projects on this best-selling list are freehold.
Singaporeans make up an average of 80% of buyers of these best-selling RCR properties, indicating a greater number of owner-occupiers. Given these figures, we can assume that proximity to schools is an added appeal for these properties, especially for owner-occupiers with school-going children.
Incidentally, Carpmael Thirty-Eight, is about five minutes’ drive to both Tanjong Katong Primary School and Eunos Primary School. In the Balestier area, City Suites and Neem Tree are within a 2km radius from Balestier Hill Primary School and Secondary School, and Hong Wen School.
Elsewhere, both The Verandah Residences and Harbour View Gardens are located just a few minutes’ drive from renowned tertiary institutions such as the National University of Singapore (NUS) and the National University Hospital.
3) Outside Central Region (OCR)
The Navian along Jalan Eunos is one of the best-selling projects in Outside Central Region (OCR) this year. Image source: Roxy-Pacific Holdings
Many HDB upgraders are expected to turn to mass-market condominiums. From the list, we can see that properties in the East are faring particularly well amongst condos in the OCR.
Indeed, locations in the East have gained appeal in recent years due to the revival of suburban localities, the establishment of new growth corridors and new MRT lines in the region. Newly built park connectors and the proximity to amenities like Bedok Reservoir also works in the area’s favour, making it potentially one of the hottest districts for investment in 2018.
This is reflected in the healthy take-up rates at new developments in the East region despite the higher-than-average launch prices. For instance, units at Fivenine and The Navian, two of the most popular projects in the OCR, transacted at a median price of $1,541 and $1,602 respectively. In comparison, the OCR average median psf for new condos and apartments in 2018 was $1,352 psf.
Meanwhile, units at the The Tapestry and Grandeur Park Residences – both also located in the East – were snapped up at a median price of $1,400 psf and of $1,503 psf respectively.
Much like the list of most popular RCR properties, the most popular OCR projects also showed a high percentage of Singaporean buyers. Our analysis showed that locals make up an average of 81% of buyers of mass market condos in 2018. Projects with high Singaporean ownership include The Navian (at 97%) and Seaside Residences (86%).
These figures suggest that many of these owners are owner-occupiers. For families with children, a project’s proximity to schools is an important consideration.
Unsurprisingly, The Navian, located on Jalan Eunos, sits within a 1km radius from Eunos Primary School and Telok Kurau Primary School. Meanwhile, Seaside Residences a mere is 400m from Victoria School.
Find more new homes and project launches for sale on our New Launches page!
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