8 to 14 August 2023
Three Q3 2023 major new condos – TMW Maxwell, The Arden, and Orchard Sophia – launched over the weekend. Meanwhile, ahead of Prime Minister Lee Hsien Loong’s National Day Rally 2023 speech, property experts predict the announcements he could make.
1. TMW Maxwell sells seven units across its launch weekend
Buyers snapped up 9%, or seven of the 80 units released for sale during phase one of the launch of TMW Maxwell over the weekend. This reflects a 2.2% take-up rate based on the project’s total units.
These units transacted at between $1.5 million and $2.47 million, at $3,143 to $3,739 per sq ft (PSF). They comprised four studio units, two 1-bedroom units, and one 2-bedroom unit.
Dr Tan Tee Khoon, Country Manager – Singapore, PropertyGuru said that “TMW Maxwell is an avant-garde live, work, and play concept. It will naturally take time for it to gel with the palette of its targeted band of buyers who want to live in the Core Central Region (CCR).”
As for TMW Maxwell’s launch weekend performance, “Its sales so far have been likely impacted by property seekers deferring their buying decisions. They’re in a very narrow window to browse the market and finalise their purchases before the start of the Lunar Seventh Month,” Dr Tan added.
Related article: Blossoms By The Park, Tembusu Grand, and More: How Did Major New Condo Launches in Q2 2023 Perform?
2. The Arden sells 26% of its units over the weekend
Another Q3 2023 major new condo launch, The Arden, Qingjian Realty’s residential project at Phoenix Road, sold 26% or 27 out of its 105 units during its launch over the weekend.
The units were sold at an average price of $1,750 PSF. In comparison, other new project launches within the Outside Central Region (OCR) this year had average prices of between $2,057 and $2,121 PSF.
“The Arden stands out as an exceptionally competitively priced private residential project in Singapore, poised to captivate upgraders residing in the Bukit Panjang locale,” said Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group.
He added, “The recent slower-than-anticipated sales of The Arden can be attributed to a convergence of factors: prospective buyers being occupied with extended weekends, the observance of the Ghost Month Period, and a multitude of other property launches transpiring simultaneously within the same timeframe.”
3. 24% of Orchard Sophia sold, at an average price of $2,800 PSF
Orchard Sophia sold 24.4%, or 19 of its 78 units during its launch over the weekend. The units achieved an average price of $2,800 PSF.
Situated at the top of Sophia Road within prime District 9, freehold Orchard Sophia is a redevelopment of two condos (i.e. Sophia Ville and Fairhaven) which developer DB2 acquired for $62 million in 2020.
The project is located near various schools including St Margaret’s Primary School, LASALLE College of the Arts, Singapore Management University (SMU), School of the Arts (SOTA), and Nanyang Academy of Fine Arts (NAFA).
Dr Tan Tee Khoon commented, “Orchard Sophia’s appeal is in its relatively sweet spot pricing of about $2,800 PSF for new launches in prime districts and the fact that it is within 1km of St. Margaret’s Primary and the current Anglo-Chinese School (Junior).
Its exclusive location on the top of Sophia Road and proximity to Dhoby Ghaut MRT station also bodes well for well-heeled property seekers who wish to live centrally and at a healthy distance from the hustle and bustle of Orchard Road. Given that the total size of the development is 78 units and muted interest from foreign buyers, 23% sales is a commendable start!”
4. The government to adjust public housing schemes and provide extra help to older workers with inadequate CPF savings
PM Lee has highlighted the need to adjust the country’s HDB schemes to maintain their inclusivity while ensuring that public housing continues to be affordable and accessible, reported CNA.
In delivering his annual National Day message, PM Lee also acknowledged the need to provide “extra help” to older workers who lack adequate CPF savings for retirement.
He pointed out that the development of more public housing has led to fewer undeveloped sites for new HDB estates.
Existing non-mature estates are also maturing with improved amenities and transport links, resulting in a shift in housing development towards mature estates.
With these, property analysts expect the changes in the public housing policies to include a higher income ceiling and higher subsidies for first-time homebuyers, reported TODAY.
Dr Lee Nai Jia pointed out that similar to how Health District @ Queenstown was piloted in 2021, health districts in other estates across Singapore may be expected. This may be announced alongside the launch of more community care apartments, targeting the elderly community.
In tandem, Dr Lee suggested that there may be additional HDB schemes to allow the elderly to cash out a portion of their property equity and supplement their CPF funds.
5. Woodlands jumbo HDB flat sold for $1.15 million, the most expensive flat in the estate
A jumbo HDB resale flat in Woodlands has been sold for $1.15 million, making it the most expensive HDB flat to be sold within the non-mature estate in July 2023. Spanning 1,905 sq ft, the unit is located at Block 816 Woodlands St 82.
Shin Min Daily News reported that a similar-sized flat three floors down was sold for $930,000 also in July, which translates to a whopping difference of around $220,000.
Analysts attributed the wide price gap to the flat’s interior decoration as well as to the fact that the flat was well maintained.
They explained that an appreciative buyer would be more than willing to pay a good price for flats that are better decorated to save on renovation costs. Moreover, good-quality electrical appliances and furniture may have also pushed up the selling price.
Overall, Woodlands has recorded 17 million-dollar HDB flats, with the first being sold in May 2022. A common feature among these flats is that they were all jumbo units measuring between 1,894 and 2,067 sq ft.
6. Choa Chu Kang HDB flat breaks record with $6,600 monthly rent
An HDB flat in Choa Chu Kang set a new record when it was rented for $6,600 per month in May 2023, surpassing the previous high set by an Ang Mo Kio flat which was rented for $6,500 per month in February 2023.
The $6,600 monthly rent was $2,000 to $4,000 higher than the rents achieved for similar flats this year.
HDB data showed that the flat is located at Block 641 Choa Chu Kang Street 64. The 2,314 sq ft executive flat has a remaining lease of 74 years since Block 641 was completed in 1998.
Analysts attributed the unit’s record rental price to the flat’s rarity, reported Shin Min Daily News. Notably, it is an executive maisonette unit, which means it is two-storey home that typically comes with four bedrooms, a balcony, and three toilets.
7. Upcoming completion of the Singapore Rail Linkway boosts demand for Johor Bahru properties
With the Johor Bahru-Singapore rapid transit system (RTS) expected to be completed by end-2026, Johor Bahru has been witnessing a rise in property transactions.
The 4km cross-border service is expected to move up to 10,000 commuters in both directions per hour.
In Q1 2023, Johor saw 7,497 residential property transactions with a total value of RM3.2 billion (S$947 million) – marking the second-highest transaction volume just behind Selangor.
The Business Times reported that the figure was 12% higher than the same period in 2020 before the COVID-19 pandemic struck.
Of the 7,497 transactions, almost 60% (4,307) were for residential properties in Johor Bahru.
Chia Zi Jin, Principal of CRA Valuers and Realty Consultants, pointed to the RTS as the biggest catalyst now.
“Property developers are tapping into the positive news of the RTS and are rolling out new projects,” said Chia, adding that the selling price at several new launches within Johor Bahru city centre is now pegged at above RM1,000 (S$294) PSF.
Singapore’s higher rents and sale prices also helped drive demand for residential properties across the Causeway, said Jonathan Lee, Group Chief Executive of Keller Williams in Malaysia.
8. Agent-free property platforms are on the rise
Several online property dealing platforms are emerging, touting themselves as direct connectors between buyers and sellers, eliminating real estate agents from the picture.
One such platform is Kucing, which uses a peer-to-peer model to facilitate residential property sales, reported The Business Times.
The platform boasts features such as interactive augmented heat maps, market trends, and tools to track sales and negotiate deals.
However, there are benefits to engaging agents. Dr Tan Tee Khoon shares that agents have the requisite and relevant knowledge to help clients transact their properties at the best possible price at the right time.
“Commissions with the agents are negotiable and can also be performance-based, so that the sale, lease or purchase can be a win-win,” he explains.
9. PropertyGuru Singapore Property Market Report Q3 2023
The HDB resale market may have reached its peak in Q2 2023, amid a slowdown in price growth and decreasing demand, according to the Singapore Property Market Report Q2 2023, as reported by CNA.
The report, based on over 600,000 listings on PropertyGuru’s website, indicates a decelerating residential property market.
The Singapore property sale demand index for HDB resale flats, for instance, fell 6.4% quarter-on-quarter (QoQ) in Q2 2023, signalling a peak in buyer interest.
At the same time, HDB resale flats’ asking prices grew 0.6% in Q2 2023, down from the 1.6% increase seen in the Q1 2023.
While the gap between buyers’ and sellers’ expectations persists, the increased options due to the completion of more BTO flats and flats reaching Minimum Occupation Period (MOP) may ease the pressure on buyers to meet high prices.
Over at the non-landed private home market, the median asking price growth slowed to 0.3% in Q2 2023 from 0.9% in Q1 2023.
PropertyGuru’s data also show that the non-landed private home’s sale demand index fell 2.3%, suggesting that the market may be reaching its peak and that prices may stabilise in the next quarters.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
