November 2024 saw the launch of six new residential projects, offering a total of more than 3500 homes. Of these, approximately 2300 homes were sold on launch day, representing nearly two-thirds of the available units.
We look at why the demand is so hot this time, which are the better ones of the six new launches as well as have a think and comment about whether the demand will continue.
Why is demand hot this time?
From a macroeconomic perspective, there is improving consumer sentiment as the economy is stable. Moreover, the US Federal Reserve has commenced their rate cut cycle, making mortgages more affordable for homebuyers.
For the first three quarters of 2024, the overall private housing prices increased by 1.6%, a significant moderation from the 3.9% gain over the same period in 2023.
In the third quarter of 2024, overall private housing prices declined by 0.7%, marking the first drop since Q2 2023. Price momentum has eased across all market segments
Moreover, Singapore’s inflation is expected to average 2.5% for 2024, which means housing prices are potentially rising at a slower pace than other goods and services.
There has also been a dearth of major new launches, which may have led to pent-up demand from the first 10 months of the year. This demand was likely influenced by buyers being price sensitive after the strong price gains in 2023, coupled with economic concerns and high interest rates.
Reviewing the new launches
The six new launches are Chuan Park, Emerald of Katong, Nava Grove, Union Square Residences, Novo Place, and The Collective at One Sophia.
Looking at our scoring chart, Emerald of Katong stands out as the top project among the six. However, it is nearly fully sold, reflecting its strong market reception. In Singapore, there are very few large sites that are poorly rated, as developers would not purchase a site unless they were confident in its potential. Every project has their strengths and weaknesses, which we will elaborate on below, and the best project ultimately depends on individual perspectives and needs.
1) RCR Condos – Chuan Park, Emerald of Katong, Nava Grove
These three condos were all well received, with Emerald of Katong near fully sold.
Chuan Park
Chuan Park saw 76% of its units sold on launch date. It is the first new launch condo in the area in more than 10 years and is situated right next to Lorong Chuan MRT, with easy access to train line interchanges. It is also strategically located near mature estates such as Toa Payoh, Bishan, Ang Mo Kio and Serangoon, which ensures that there is no lack of amenities for both locals and expatriates.
The development is near the Australian International School which has more than 2000 international students, and is within 1KM of local schools like St Gabriel’s Primary School, Zhonghua Primary School, CHIJ Our Lady of Good Counsel, Zhong Hua Secondary School and Nanyang Junior College. It is also less than 2KM away from Kuo Chuan Presbyterian Primary School. Additionally, Chuan Park is close to potential upgraders in nearby estates such as Toa Payoh, Bishan, Ang Mo Kio and Serangoon.
This prime location makes it attractive to expatriates who are looking to rent as well as locals who are looking to live near reputable local schools.
The one downside is that both developers were issued a no-sale license due to poor construction quality of a previous development.
Emerald of Katong
Emerald of Katong was nearly fully sold on launch date. It is located on Jalan Tembsu, near other recent launches such as The Continuum, Tembusu Grand and Grand Dunman. It is walking distance to the Marine Parade train station.
Situated in Katong, Emerald of Katong is adjacent to the Marine Parade, Eunos and Bedok estates which will address the needs of different parts of the population.
This prime location makes it attractive to locals who are looking to live near reputable local schools. Expatriates are also attracted to the vibrant lifestyle offered by the nearby East Coast Road.
The development is within 1KM of well-known schools like Tanjong Katong Girls School, Chung Cheng High and Haig Girls.
The one downside to this property is that it is already fully sold.
Nava Grove
Nava Grove sold 65% of its units on launch date, a respectable showing. It is situated on Ulu Pandan Road which connects to Holland Road. Nava Grove is beside Pinetree Hill, which was just launched recently
The area is not within walking distance of a train station. While Singapore’s compact size means that amenities are generally not too far away, there is still considerably less amenities in this area.
Nava Grove is within 1KM of Pei Tong Primary School while other schools within the 2km radius include Henry Park Primary School, Nan Hua Primary School and Methodist Girls School (Primary).
Clementi is regarded as one of the education hub of Singapore with well-regarded secondary schools, polytechnics and universities in the vicinity. There are also several international schools in the area. This makes it attractive to families with school-going children.
2) CCR Condos – Union Square Residences and The Collective at One Sophia
Union Square Residences
Union Square Residences sold 20% of units on launch date, a somewhat weak showing, likely due to its higher price point compared to mass-market condos. It is located on the site of the former Central Square at Havelock Road in the City and is near multiple train stations. There is also no lack of amenities being centrally located and close to Chinatown.
However, there are not many school options available nearby and therefore unlike Nava Grove, Union Square will appeal to a different crowd who wants the proximity to Chinatown, the CBD as well as Singapore’s vibrant nightlife.
The Collective at One Sophia
The Collective at One Sophia was the poorest performer on this list with only 10% sold on launch date. It is situated on the site of the former Peace Centre on Selegie Road. The Collective is close to train stations on both the Downtown Line and the Circle Line and has no lack of amenities being centrally located and near Little India as well as Orchard Road.
There is a university as well as several art schools near by and this area is a cultural hub for local artists. Therefore families as well as international students would be the tenants in this catchment rental market.
3) EC – Novo Place
Novo Place sold 57% of its units on launch date. Executive Condominiums (ECs) are typically highly sought after due to their attractive price point and this result is consistent with recent EC launches. This outcome is partly due to regulations that allow only 30% of units to be sold to second-time applicants on launch date. Once this quota is filled, the remaining units on launch date can only be sold to first-time applicants.
As such, to really understand how well sought after Novo Place is, we will need to wait for a month as there would be a second balloting phase open to all applicants.
Novo Place has a Tengah address but is actually situated at the junction of Jurong East and Bukit Batok. It is uncommon for ECs to be walking distance of an MRT, but Novo Place is close to the upcoming Jurong Regional Line.
While there could be concerns of a lack of existing amenities in Tengah, Novo Place is situated close to amenities in Jurong East and Bukit Batok. Also, it is very likely that by the time Novo Place is completed, the amenities in Tengah would be sufficiently developed.
Novo Place is located within 1KM of several primary schools such as Princess Elizabeth Primary School and Jurong Primary School. It is also within 2km of ACS Primary and at least four other primary schools.
Will there be a spill over to other projects in the vicinity?
There are several reasons buyers prefer a new launch over comparable projects in the vicinity, whether these are properties under construction or existing developments.
It is likely there will be a spillover to other projects in the vicinity, provided there are comparable options available. In addition, there is improving macroeconomic sentiments coupled with a lower interest rates environment. Therefore, we expect the property market to continue to be robust in the upcoming months.
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