Due to the optimism in price performance of high end newly developed condo in the private residential (non-landed) segment, this is ultimately another land site price reflection in sentiment among the high-net-worth developer investor community for developer site choices throughout Singapore. Based on research analysis findings done on Singapore’s newly developed condo properties, Singapore had seen consistent yearly growth over the last 7 quarters from the first quarter of 2016. This growth has since risen to 4.2% (yoy) in the first quarter in beginning of 2018.
What does this mean for higher value proposition in Singapore new condo development?
It means that the private condo housing recovery in Singapore is still going strong. Singapore’s higher-end luxury condo development like 8 Saint Thomas located at Saint Thomas Walk is still going strong and at attractively valued proposition. It was developed and built by Bukit Sembawang recently. Comparatively, the price proposition is greater than that of prime homes throughout the city and with the non-landed property market, these homes are in prime districts which makes the proposition more favourable despite the value.
The average price of a real estate asset in local condo market is around $3,000 psf for ultra-high-end project which is now significantly higher than in 2016 and 2017, respectively. Does this mean that the higher value proposition will change the way people feel about condo property? Maybe it’s still a bit too early to make a general forecast of the 2018 outcome.
Will this make property investments more attractive?
In Singapore context, private property investments are always attractive, especially when huge funds are invested in the newly developed projects. The attractiveness of Singapore property investment may be affected by various policy interventions being put into place by the government but knowing how these interventions will affect the market won’t be comprehensible unless they are in place solidly and for the longer term.
Singapore’s swift intervention of property cooling measures, from its first setting in the 3rd quarter of 2009 and over eight subsequent rounds, is now less arduous when it’s comparable to previous quarters. With the cooling measure imposed, this implement the rise in costs across the board and home buyers together with developers alike saw a total increase of about 40% on stamp duties for residential properties, which has lingered from 2017 into this year of 2018.
What does this mean for the preservation of Singapore properties going forward?
While there’re many blatant interest in Singapore’s newly developed properties, it is still very buoyant despite the government measures amid limited condo supply, property development investors, in particular development areas around the city-state, have been exploring newer innovative markets inside Singapore for diversification of the newly developed real-estate market, along with looking at the education sector and ultimately objectives to preserving the long-term wealth of Singapore.
However, elevating the newly developed condo prices in Singapore will have escalated the considerable market of limited new supply and strong demand in real estate, especially among foreign home buyers. With undoubtable room for growth, 8 Saint Thomas by Bukit Sembawang is highly anticipated in the prime homes segment throughout Singapore. Official pricing for this completed development are going to increase by another 8% within 2018 through 2019. This is making it uncertain and more questionable about the actual preservation moving forward.